Demo
KFY NYSE· Korn Ferry
FundamentalsNews digest Peer analysis
Login
KFY NYSE· Korn Ferry
Earnings report Q4 2023

Korn Ferry Reports Decrease in Revenue in Latest Quarter

Segments of revenue

  • Executive Search reported fee revenue of $177.8 million, a decrease of $11.9 million, or 6%, compared to the year-ago quarter. This decline was primarily due to a decrease in fee revenue in North America, Europe, and Asia Pacific, partially offset by an increase in fee revenue in Ireland and Denmark.
  • Consulting reported fee revenue of $177.8 million, an increase of $4.7 million, or 3%, compared to the year-ago quarter. The growth in Consulting fee revenue was driven by the expansion of organizational strategy and assessment and succession solutions. Exchange rates also had a favorable impact on fee revenue.
  • Digital reported fee revenue of $97.1 million, an increase of $2.8 million, or 3%, compared to the year-ago quarter. The increase in fee revenue was driven by overall growth in digital services.

Strengths

  • Despite the overall decrease in revenue, Consulting and Digital segments showed growth, indicating the company's ability to adapt to changing market demands and offer valuable services in these areas.
  • Exchange rates had a favorable impact on fee revenue in both Consulting and Digital segments, contributing to their positive performance.
  • Management comments suggest that the decrease in revenue was partially due to the global economic slowdown and other external factors, indicating that the company's performance may improve as economic conditions stabilize.

Challenges

  • Executive Search segment experienced a significant decline in fee revenue, primarily driven by decreases in North America, Europe, and Asia Pacific. This indicates potential challenges in these regions and the need for strategic adjustments to regain growth.
  • The overall decrease in revenue resulted in a net loss for the company, primarily due to restructuring charges and an increase in cost of services expense. This highlights the need for cost management and efficiency improvements.

Noteworthy

  • Net loss attributable to Korn Ferry in the latest quarter was $1.7 million, compared to net income of $73.5 million in the year-ago quarter. The decrease in net income was primarily driven by restructuring charges and the decrease in fee revenue.
  • Adjusted EBITDA decreased by $32.6 million, or 25%, in the latest quarter compared to the year-ago quarter. This decrease was primarily due to a decrease in fee revenue and increases in cost of services expense and other loss, net.

Summary

Korn Ferry reported a decrease in revenue in the latest quarter, primarily driven by a significant decline in fee revenue in the Executive Search segment. However, the Consulting and Digital segments showed growth, indicating the company's ability to adapt to market demands. The net loss and decrease in Adjusted EBITDA highlight the impact of restructuring charges and cost of services expense. Overall, the company faces challenges in certain regions and the global economic slowdown, but management comments suggest potential for improvement as economic conditions stabilize.

Source documents

Form 10-Q  filed on Dec 08, 2023
102 pages scanned

Reference data

Company financials Q4 revenue 669M
Analyst estimates Q4 EPS beat by 12.10%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.