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View All NewsWorld – Korn Ferry Q4 revenue up 8% in constant currency, RPO and Professional Search boost growth
Revenue rose 8% in constant currency at Korn Ferry in its fiscal fourth quarter ended 30 April 2019. The increase in fee revenue was mainly due to organic growth in RPO and Professional Search.
| (US$ thousands) | Q4 2019 | Q4 2018 | % change | % change (constant currency) |
| Fee revenue | $490,756 | $475,364 | 3.2% | 8.0% |
| Net income attributable to Korn Ferry | $50,264 | $41,160 | 22.1% | N/A |
| Net income | $50,264 | $41,160 | 22.1% | N/A |
| Operating Income | $62,275 | $64,197 | -2.9% | N/A |
Korn Ferry said the increase in net income attributable to Korn Ferry resulted from an increase in fee revenue partially offset by an increase in compensation and benefits primarily due to an increase in average headcount and an increase in general and administrative expenses.
The decrease in operating income resulted from an increase in compensation and benefits and general and administrative expenses, partially offset by higher fee revenue.
Fee revenue by segment
| (US$ thousands) | Q4 2019 | Q4 2018 | % change | % change (constant currency) |
| Total executive search | $190,888 | $190,669 | 0.1% | 3.0% |
| Advisory | $207,082 | $207,551 | -0.2% | 5.0% |
| RPO and professional search | $92,786 | $77,144 | 20.2% | 20.0% |
Executive search fee revenue by geography
| (US$ thousands) | Q4 2019 | Q4 2018 | % change |
| Executive search | |||
| North America | $113,651 | $112,005 | 1.5% |
| Europe, the Middle East and Africa | $45,307 | $45,476 | -0.4% |
| Asia Pacific | $24,373 | $24,612 | -1.0% |
| Latin America | $7,557 | $8,576 | -11.9% |
The company also published full year results.
| (US$ thousands) | FY 2019 | FY 2017 | % growth |
| Fee revenue | $ 1,926,033 | $ 1,767,217 | 8.9% |
| Net income attributable to Korn Ferry | $102,651 | $133,779 | -23.2% |
Outlook
Assuming worldwide economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis Q1 FY 2020 fee revenue is expected to be in the range of $466 million and $486 million.
Market Cap
In trading yesterday, shares closed at $48.52, up 2.15% on the day and 29.80% above the 52 week low of $37.38 set on 26 December 2018. Based on its current share price the company has a market value of 2.66 billion.