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View All NewsWorld – Korn Ferry revenue up 20% in fiscal Q2; all business lines see increase except executive search
Korn Ferry reported fee revenue rose 20% in constant currency in its fiscal second quarter ended 31 October. Fee revenue increased in all lines of business except executive search, which was down 4% year over year in constant currency.
| (USD thousands) | Q2 2023 | Q2 2023 | % change | % constant currency |
| Fee revenue | 727,849 | 639,443 | 13.8% | 20% |
| Reimbursed expenses | 7,870 | 3,955 | 99.0% | |
| Total revenue | 735,719 | 643,398 | 14.3% | |
| Net income | 74,615 | 76,332 | -2.2% |
The Los Angeles-based provider of executive search, RPO and other services cited the acquisitions of Lucas Group, Patina Solutions Group Inc. and Infinity Consulting Solutions as significant factors in the increase in fee revenue compared to the year-ago quarter.
Fee revenue by segment
| (USD thousands) | Q2 2023 | Q2 2023 | % change | % constant currency |
| Consulting | 173,092 | 164,893 | 5.0% | 12% |
| Digital | 94,329 | 88,639 | 6.4% | 15% |
| Total executive search | 218,359 | 235,459 | -7.3% | -4% |
| RPO | 107,326 | 95,893 | 11.9% | 19% |
Korn Ferry CEO Gary Burnison also said it is clear that the global economy has been in transition for several months.
“We are seeing change on every front — from over a decade of high liquidity and historically low interest rates to changes in central bank policies, significant shifts in global trade lanes and persistent inflationary pressures,” Burnison said. “In response, companies and our clients will undoubtedly have to continue adjusting their organizational and workforce strategies to tomorrow, which is opportunity for Korn Ferry.”
Executive search revenue by geography
| (USD thousands) | Q2 2023 | Q2 2023 | % change |
| North America | 142,485 | 158,197 | -9.9% |
| Europe, the Middle East and Africa | 44,645 | 42,434 | 5.2% |
| Asia Pacific | 23,408 | 28,257 | -17.2% |
| Latin America | 7,821 | 6,571 | 19.0% |
Guidance
Korn Ferry is developing a plan to reduce its operating costs by USD 45 million to USD 55 million with the plan to be put in place in the company’s fiscal third quarter.
The company forecast third-quarter fee revenue of between USD 660 million and USD 690 million.
Share and market cap
Shares in Korn Ferry closed down 5.43% to USD 51.02 in New York on Thursday; shares were 9.79% above their 52-week low. The company had a market cap of USD 2.88 billion.