Revenue rose 7% in constant currency at Korn Ferry in its fiscal first quarter ended 31 July 2019. The increase in fee revenue was mainly due to growth in the group’s RPO and Professional Search offering.

Net income was $43.0 million in Q1 2020 as compared to a loss of $38.6 million in Q1 2019. The increase in net income resulted from a decrease in general and administrative expenses mainly due to the $106.6 million tradename write-offs in Q1 2019, partially offset by an increase in income tax provision in Q1 2020.

Operating margin was 12.5% in Q1 2020 compared to 11.8% in the year-ago quarter. The increase in operating margin was primarily due to the decrease in general and administrative expenses as described above and an increase in fee revenue, partially offset by an increase in compensation and benefits.

Adjusted EBITDA margin was 15.5%, compared to 15.2% in the year-ago quarter.

Fee revenue by segment

Executive search fee revenue by geography

Gary D. Burnison, CEO, Korn Ferry commented, “Our financial results for the first quarter demonstrate the durability of our business model. We are substantially different today than we were even a few years ago. We’ve evolved from a mono-line business to a global organisational consulting firm – synchronizing a client’s strategy and talent to drive superior performance. More than organisational strategy or compensation advisory, more than talent acquisition and more than leadership development – Korn Ferry enables people and organizations to be more than: simply put, to exceed their potential.”

In trading yesterday Korn Ferry shares closed at USD 39.36, up 1.57% on the day and 7.31% above its 52-week low of USD 36.68, set on 5 August 2019. Based on its current share price the company has a market value of USD 2.21 billion.