While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on ...

Financial Data and Key Metrics Changes - Fee revenue in Q3 was $669 million, a 2% year-over-year increase at constant currency [17] - Adjusted EBITDA increased 13% year-over-year to $114 million, with an adjusted EBITDA margin of 17.1%, up 190 basis points year-over-year [18] - Adjusted EPS increased 11% year-over-year to $1.19 [18] - Total company new business grew 13% year-over-year at constant currency, including $210 million of RPO new business, with 65% generated from new clients [18] Business Line Data and Key Metrics Changes - Consulting new business was $159 million, up 3% at constant currency, with larger engagements (over $500,000) representing 41% of new business [23] - Digital fee revenue was $91 million, up 3% at constant currency, with an adjusted EBITDA margin of 31.3%, up 100 basis points year-over-year [24] - Executive Search fee revenue grew 4% at constant currency to $205 million, with consultant productivity increasing 7% year-over-year [25] - RPO fee revenue grew 6% to $85 million, with an adjusted EBITDA margin of 15%, up 360 basis points year-over-year [26] Market Data and Key Metrics Changes - New business in EMEA showed particular strength, contributing to overall growth [19] - Fee revenue under contract accelerated to $752 million, with about 42% expected to be recognized in the next four quarters [27] Company Strategy and Development Direction - The company is focusing on larger addressable markets and aligning capabilities to drive sustainable, large-scale client engagements [11][12] - The diversification of services is evident, with marquee and diamond accounts representing 39% of total consolidated fee revenue [19] - The company is committed to becoming a leader in powering organizational performance for talent [14] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment for consulting services has been challenging, but the company's strategy is proving effective [9] - Management expects fee revenue in Q4 to range from $680 million to $700 million, with adjusted EBITDA margins around 16.8% to 17% [28] - There is a significant supply-demand imbalance in the labor market, presenting opportunities for the company [41] Other Important Information - The company is increasing its quarterly dividend by 30%, marking the sixth increase in the last five years [10][22] - The company has invested approximately $45 million in the Trilogy acquisition and repurchased over 1 million shares year-to-date [22] Q&A Session Summary Question: What areas have seen the most success in driving productivity? - Management noted that there is still room for productivity improvement, with rates per hour increasing significantly in both Consulting and Interim solutions [34][35] Question: What drove the growth in RPO new business? - The growth was attributed to a combination of new logos, marquee accounts, and sectors like healthcare and life sciences [40] Question: What caused the decline in digital new business? - The decline was due to tough comparisons from significant deals in the previous year, particularly in licensing the compensation database [46] Question: What are the expectations for hiring activity amid economic uncertainty? - Management does not expect hiring activity to pull back significantly, citing demographic trends and the need for companies to reskill their workforce [50][52] Question: Can you elaborate on recent large engagements? - The company is focusing on high-impact engagements that involve organizational design and leadership development, with a consulting backlog at an all-time high [62] Question: What would indicate a need for contingency planning? - Management indicated that a significant worsening of the cost of living crisis would be a key factor to monitor [87] Question: How should we think about margin expansion in '26? - The company targets margins of 16% to 18%, balancing earnings growth with investments in the business [107]

Safe Harbor Statement FORWARD-LOOKING STATEMENTS Statements in this presentation that relate to goals, strategies, future plans and expectations are based on Korn Ferry's current expectations. You are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties. For a detailed description of many of those risks and uncertainties, please refer to Korn Ferry's earnings release and i ...

Financial Performance - Q3 FY'25 fee revenue was $668.7 million, flat year over year [106] - Net income attributable to Korn Ferry was $58.4 million, with a net income margin of 8.7%, a 10bps decrease compared to the year-ago quarter [106] - Adjusted EBITDA for Q3 FY'25 was $114.5 million, with an Adjusted EBITDA margin of 17.1%, a 190bps increase compared to the year-ago quarter [106] - Diluted earnings per share for Q3 FY'25 was $1.10 [106] - Total fee revenue for the three months ended January 31, 2025, was $668.729 million, a slight increase from $668.679 million in the same period of 2024 [109] - Net income attributable to Korn Ferry for the three months ended January 31, 2025, was $58.414 million, representing a net income margin of 8.7%, compared to $59.071 million and 8.8% in the prior year [109] - Adjusted EBITDA for the three months ended January 31, 2025, was $114.489 million, with an adjusted EBITDA margin of 17.1%, up from $101.704 million and 15.2% in the same period of 2024 [110] - Consolidated net income for the nine months ended January 31, 2025, was $181.8 million, representing a margin of 9.0%, compared to $104.0 million and a margin of 5.0% for the same period in 2024 [1] - Net income attributable to Korn Ferry increased by $77.8 million, or 75%, to $181.8 million in the nine months ended January 31, 2025 [186] Revenue Breakdown - RPO fee revenue increased by 4% year over year, with new business in Q3 FY'25 totaling $210 million, of which 64% was from new client wins and 36% from renewals/extensions [106] - Consulting fee revenue for the three months ended January 31, 2025, was $158.704 million, accounting for 23.7% of total fee revenue, down from $166.947 million and 25.0% in the same period of 2024 [109] - Digital fee revenue for the three months ended January 31, 2025, was $90.823 million, representing 13.6% of total fee revenue, compared to $90.317 million and 13.5% in the prior year [109] - Executive Search revenue for North America increased to $128.264 million, representing 19.2% of total fee revenue for the three months ended January 31, 2025, compared to $121.449 million and 18.2% in the same period of 2024 [109] - Professional Search & Interim reported fee revenue of $372.8 million, a decrease of $38.7 million, or 9%, in the nine months ended January 31, 2025 compared to $411.5 million in the year-ago period [161] - RPO reported fee revenue of $260.8 million, a decrease of $3.9 million, or 1%, in the nine months ended January 31, 2025 compared to $264.7 million in the year-ago period [162] - Digital reported fee revenue of $271.9 million, a decrease of $3.5 million, or 1%, in the nine months ended January 31, 2025 compared to $275.4 million in the year-ago period [156] Expenses and Costs - Compensation and benefits expense decreased by $30.9 million, or 7%, to $425.3 million in the three months ended January 31, 2025, primarily due to a decrease in deferred compensation expense [7] - General and administrative expenses increased by $2.6 million, or 4%, to $65.3 million in the three months ended January 31, 2025, primarily due to impairment charges associated with the reduction of the company's real estate footprint [8] - Cost of services expense increased by $2.2 million, or 3%, to $78.0 million in the three months ended January 31, 2025 compared to $75.8 million in the year-ago quarter, with Professional Search & Interim accounting for $2.5 million of the increase [137] - General and administrative expenses decreased by $4.4 million, or 2%, to $189.9 million in the nine months ended January 31, 2025 [173] - Depreciation and amortization expenses increased by $1.7 million, or 3%, to $59.8 million in the nine months ended January 31, 2025 [184] Acquisitions and Strategic Initiatives - The acquisition of Trilogy was completed on November 1, 2024, for $44.4 million, expected to enhance Korn Ferry's Professional Search & Interim business [103] - The company completed the acquisition of Trilogy for $44.4 million on November 1, 2024, enhancing its Interim business segment [201] - Korn Ferry's integrated go-to-market strategy focuses on approximately 350 marquee and regional accounts, driving top-line synergies and double-digit fee revenue growth rates over the past twenty years [100] Market and Technology Outlook - Korn Ferry anticipates that advancements in technologies like generative AI will create opportunities for growth and relevance in the market [99] - The company is leveraging unique data sets and intellectual property to differentiate its service offerings from competitors [98] Cash and Investments - Cash and cash equivalents and marketable securities totaled $1,061.0 million as of January 31, 2025, down from $1,195.4 million as of April 30, 2024 [207] - Cash used in investing activities increased to $112.7 million for the nine months ended January 31, 2025, primarily due to the acquisition of Trilogy [210] - Cash used in financing activities was $146.4 million for the nine months ended January 31, 2025, compared to $75.3 million in the prior year, driven by higher stock repurchases and dividends paid [211] Tax and Interest - Income tax provision was $22.8 million in the three months ended January 31, 2025, with an effective tax rate of 27.8% compared to $9.0 million and an effective rate of 13.1% in the year-ago quarter [152] - The provision for income tax was $70.0 million with an effective tax rate of 27.4% for the nine months ended January 31, 2025, compared to $29.8 million and 21.8% in the prior year [198] - Interest expense, net decreased to $15.0 million for the nine months ended January 31, 2025, from $16.3 million in the prior year, due to increased interest income [197] Foreign Exchange and Risk Management - During the nine months ended January 31, 2025, foreign currency losses amounted to $1.9 million, a decrease from $2.2 million in the same period of 2024, showing an improvement of approximately 13.6% [218] - A 10% fluctuation in the value of major global currencies could result in a foreign exchange gain or loss of $15.9 million based on the ten largest exposure balances as of January 31, 2025 [219] - As of January 31, 2025, there were no amounts outstanding under the Credit Facilities, indicating effective management of credit risk [220] - The interest rate applicable to loans under the Amended Credit Agreement may fluctuate between Term SOFR plus 1.125% to 2.00% per annum, depending on the consolidated net leverage ratio [220] - The company has sought to minimize interest rate risk by adjusting the borrowed funds crediting rate, which increases the cash surrender value on COLI contracts [221] Accounting and Reporting - There have been no material changes in critical accounting policies since the end of fiscal 2024, ensuring consistency in financial reporting [215] - The company has no off-balance sheet arrangements or material changes in contractual obligations as of January 31, 2025, maintaining a stable financial position [214]

Financial Performance - Q3 FY'25 fee revenue was $668.7 million, flat year over year, with a 2% increase on a constant currency basis[4] - Net income attributable to Korn Ferry was $58.4 million, with a margin of 8.7%, a decrease of 10bps compared to the previous year[8] - Adjusted EBITDA for Q3 FY'25 was $114.5 million, with an adjusted EBITDA margin of 17.1%, an increase of 190bps year over year[4] - Korn Ferry reported total revenue of $676.5 million for the three months ended January 31, 2025, a slight decrease of 0.05% compared to $676.9 million for the same period in 2024[43] - The company's net income attributable to Korn Ferry for the three months ended January 31, 2025, was $58.4 million, compared to $59.1 million in the same period last year, reflecting a decrease of 1.2%[43] - Adjusted EBITDA for the nine months ended January 31, 2025, increased to $342.725 million, compared to $295.904 million for the same period in 2024, reflecting a growth of 15.8%[49] - Consolidated net income for the three months ended January 31, 2025, was $58,414, representing a margin of 8.7%, compared to $59,071 and a margin of 8.8% for the same period in 2024[57] - Korn Ferry's net income attributable for the nine months ended January 31, 2025, was $181,818, with a margin of 9.0%, compared to $103,965 and a margin of 5.0% in 2024[57] Segment Performance - Fee revenue in the Consulting segment decreased by 5% year over year to $158.7 million, primarily due to a decline in organizational strategy and total rewards offerings[12] - Digital segment fee revenue was $90.8 million, essentially flat year over year, with a 3% increase at constant currency[16] - Executive Search segment fee revenue increased to $204.6 million, up 2.7% from the previous year[19] - In the Professional Search & Interim segment, fee revenue was $130.0 million in Q3 FY'25, essentially flat compared to $130.9 million in Q3 FY'24[23] - RPO fee revenue increased to $84.7 million in Q3 FY'25, a 4% increase from $81.2 million in Q3 FY'24, attributed to new client wins and increased demand[27] - Consulting revenue for the three months ended January 31, 2025, was $158,704, with an EBITDA margin of 17.7%, compared to $161,382 and a margin of 16.7% in 2024[57] - Digital revenue for the nine months ended January 31, 2025, was $271,896, with an EBITDA margin of 31.0%, compared to $275,395 and a margin of 29.3% in 2024[57] - North America executive search revenue for the three months ended January 31, 2025, was $128,264, with a margin of 29.0%, compared to $129,889 and a margin of 24.2% in 2024[57] - Total executive search revenue for the nine months ended January 31, 2025, was $619,205, with an EBITDA margin of 24.5%, compared to $607,540 and a margin of 20.7% in 2024[57] - Professional search and interim revenue for the three months ended January 31, 2025, was $129,957, with a margin of 21.0%, compared to $130,854 and a margin of 18.2% in 2024[57] - RPO revenue for the nine months ended January 31, 2025, was $260,789, with an EBITDA margin of 14.6%, compared to $264,653 and a margin of 10.8% in 2024[57] Shareholder Returns and Capital Management - The company repurchased 237,000 shares for $17.9 million during the quarter[4] - Cash and cash equivalents decreased to $779.3 million as of January 31, 2025, down from $941.0 million at April 30, 2024[47] - Total assets as of January 31, 2025, were $3.650 billion, a slight decrease from $3.679 billion at April 30, 2024[47] - Korn Ferry's weighted-average diluted shares outstanding increased to 52.4 million for the three months ended January 31, 2025, compared to 51.3 million in the same period last year[43] Future Outlook - The company anticipates opportunities arising from a labor supply/demand imbalance, requiring organizations to reimagine their workforce strategies[3] - For Q4 FY'25, consolidated fee revenue is expected to be in the range of $680 million to $700 million[34] - Q4 FY'25 adjusted diluted earnings per share is projected to be between $1.22 and $1.30[31] - The company anticipates continued growth driven by disciplined cost management and increased consultant productivity[21] - The acquisition of Trilogy, effective November 1, 2024, is expected to positively impact future fee revenue despite current industry-wide demand slowdowns[24] Adjusted Metrics - Adjusted diluted earnings per share for Q3 FY'25 were $1.19, compared to $1.07 in the previous year[5] - The adjusted net income attributable to Korn Ferry for the three months ended January 31, 2025, was $63.263 million, up from $55.776 million in the same period of 2024, representing a 13.4% increase[49] - The adjusted diluted earnings per share for the nine months ended January 31, 2025, were $3.57, compared to $3.03 for the same period in 2024, indicating a 17.8% increase[52] - Total fee revenue for the nine months ended January 31, 2025, was $2,018,040, with an adjusted EBITDA margin of 17.0%, compared to $2,071,871 and a margin of 14.3% for the same period in 2024[57] Restructuring and Charges - The company reported a restructuring charge of $1.3 million for the three months ended January 31, 2025, compared to $4.6 million in the same period last year[43] - Integration/acquisition costs for the three months ended January 31, 2025, were $2.127 million, down from $3.899 million in the same period of 2024[49] - Restructuring charges for the three months ended January 31, 2025, were $1.316 million, significantly lower than $4.612 million in the same period of 2024[49] - The company incurred $2.452 million in impairment of right-of-use assets during the three months ended January 31, 2025, compared to no impairment in the same period of 2024[49] Non-GAAP Measures - Adjusted EBITDA for Q3 FY'25 was $51.2 million, up from $43.4 million in the same quarter last year, with an Adjusted EBITDA margin increase of 320bps to 25.0%[21] - Adjusted EBITDA for the quarter was not explicitly stated, but management emphasized the importance of non-GAAP measures for evaluating ongoing operations[40]

Core Insights - Korn/Ferry (KFY) is expected to report quarterly earnings of $1.13 per share, reflecting a year-over-year increase of 5.6% [1] - Revenue is anticipated to be $648.47 million, which represents a 3% decline from the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Revenue Estimates - The consensus estimate for 'Fee Revenue - Total executive search' is projected to be $197.74 million, indicating a year-over-year decrease of 0.8% [4] - The overall 'Fee revenue' is expected to reach $648.52 million, reflecting a 3% decline year-over-year [4] - 'Fee Revenue - Digital' is estimated at $88.61 million, showing a year-over-year change of -1.9% [4] - 'Fee Revenue - Consulting' is projected to be $151.80 million, indicating a significant year-over-year decrease of 9.1% [5] Stock Performance - Korn/Ferry shares have decreased by 6.8% over the past month, compared to a 4.1% decline in the Zacks S&P 500 composite [6] - The company holds a Zacks Rank of 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [6]

Group 1 - Korn Ferry (NYSE: KFY) is currently operating in a different environment compared to the end of the hiring frenzy during COVID-19 [2] - The Value Lab offers members a portfolio with real-time updates, 24/7 chat support, global market news reports, feedback on stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions [2] - The Valkyrie Trading Society consists of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns [3]

Financial Performance - Total revenue for the three months ended October 31, 2024, was $681,960, a decrease of 4.5% from $712,447 in the same period of 2023[7] - Fee revenue for the six months ended October 31, 2024, was $1,349,311, down 3.8% from $1,403,192 in the prior year[7] - Operating income for the three months ended October 31, 2024, increased significantly to $87,476 compared to $22,816 in the same period of 2023[7] - Net income attributable to Korn Ferry for the three months ended October 31, 2024, was $60,800, a recovery from a loss of $1,711 in the same period of 2023[7] - Basic earnings per share for the three months ended October 31, 2024, was $1.16, compared to a loss of $0.04 in the same period of 2023[7] - Net income for the six months ended October 31, 2024, was $126,599 thousand, compared to $47,229 thousand for the same period in 2023, representing a significant increase[14] - Comprehensive income attributable to Korn Ferry for the three months ended October 31, 2024, was $65,159, compared to a loss of $27,113 in the same period of 2023[10] - Adjusted EBITDA for the three months ended October 31, 2024, was $117,027, an increase of 18.7% from $98,542 for the same period in 2023[64] - Adjusted EBITDA for Q2 FY'25 was $117.0 million, with an Adjusted EBITDA margin of 17.4%, a 340bps increase compared to the year-ago quarter[82] Assets and Liabilities - Total current assets decreased to $1,482,447 as of October 31, 2024, from $1,674,160 as of April 30, 2024[5] - Total assets decreased to $3,526,653 as of October 31, 2024, from $3,678,869 as of April 30, 2024[5] - Total liabilities decreased to $1,743,788 as of October 31, 2024, from $1,941,544 as of April 30, 2024[5] - Cash and cash equivalents decreased to $694,850 as of October 31, 2024, from $941,005 as of April 30, 2024[5] - Total stockholders' equity as of October 31, 2024, was $1,782,865 thousand, up from $1,660,500 thousand as of October 31, 2023[12] - Cash and cash equivalents at the end of the period were $694,850 thousand, compared to $620,836 thousand at the end of the same period in 2023[14] Stock and Dividends - The company paid dividends of $39,262 thousand to shareholders during the six months ended October 31, 2024, an increase from $19,289 thousand in the same period of 2023[14] - A cash dividend of $0.37 per share was declared on December 4, 2024, with a payment date of January 15, 2025[73] - The quarterly dividend was increased by 83% to $0.33 per share as of December 5, 2023, following a 20% increase to $0.18 per share on June 26, 2023[136] Stock Repurchase - The company repurchased common stock totaling $56,153 thousand during the six months ended October 31, 2024, compared to $9,527 thousand in the same period of 2023[14] - The company repurchased approximately $32.6 million of its common stock under the share repurchase program during the second quarter of fiscal 2025[152] - A total of 461,141 shares were repurchased during the quarter ended October 31, 2024, at an average price of $71.44 per share[152] - The approximate dollar value of shares that may yet be purchased under the repurchase program is $149.7 million as of August 31, 2024[152] Operational Efficiency - The company reported integration/acquisition costs of $3,896 for the three months ended October 31, 2024, down from $5,030 for the same period in 2023[64] - The company reported restructuring charges of $0.576 million for the three months ended October 31, 2024, significantly lower than $63.53 million in the same period of 2023[91] - Total compensation and benefits expense decreased by $16.5 million, or 4%, to $437.4 million in the three months ended October 31, 2024, from $453.9 million in the year-ago quarter[97] - General and administrative expenses decreased by $1.2 million, or 2%, to $64.5 million in the three months ended October 31, 2024, compared to $65.7 million in the year-ago quarter[100] Revenue Breakdown - Korn Ferry's core solutions include Organizational Strategy, Assessment and Succession, Leadership and Professional Development, Total Rewards, and Talent Acquisition, addressing nearly every aspect of employer-employee engagement[16] - Revenue is primarily derived from talent and organizational consulting services, with consulting fee revenue recognized as services are rendered, measured by total hours incurred[19] - Digital fee revenue is generated from IP-based software products, recognized as services are delivered, with revenue from product subscriptions recognized over the contract term[21] - The company’s fee revenue from the Industrial sector was $208.0 million for the three months ended October 31, 2024, accounting for 30.9% of total fee revenue[58] - The digital segment contributed $92.89 million in fee revenue for the three months ended October 31, 2024, consistent with $97.09 million in the same period of 2023[88] Tax and Interest - The provision for income tax was $24.9 million for the three months ended October 31, 2024, with an effective tax rate of 28.5%, compared to $2.3 million and an effective tax rate of 98.2% for the same period in 2023[61] - Interest expense, net decreased to $5.6 million in the three months ended October 31, 2024, compared to $6.6 million in the year-ago quarter[110] Market and Economic Conditions - The company has evolved from a mono-line to a diversified business model, enhancing opportunities for consultants to engage with clients[16] - The company is focused on leveraging its integrated go-to-market strategy with over 340 marquee and regional accounts[79] - Korn Ferry's vision is to become the premier organizational consulting firm, capitalizing on the demand for upskilling and reskilling in a rapidly changing world[79] Miscellaneous - The company recognized no credit losses for available-for-sale debt securities during the three and six months ended October 31, 2024 and 2023[26] - Goodwill is tested for impairment annually, with the most recent test indicating no impairment as of February 1, 2024[30] - The company maintains cash and cash equivalents primarily in money market funds, with no losses experienced in such accounts[23] - The company has no off-balance sheet arrangements and no material changes in contractual obligations as of October 31, 2024[140]

Financial Data and Key Metrics Changes - The company reported consolidated fee revenue of approximately $674 million for Q2 FY 2025, which is down 4% year-over-year but flat sequentially [18] - Adjusted EBITDA margin improved for the sixth consecutive quarter to 17.4%, up 340 basis points year-over-year [14][23] - Adjusted fully diluted earnings per share increased to $1.21, up 25% year-over-year [23] Business Line Data and Key Metrics Changes - Consulting fee revenue decreased by 6% year-over-year and remained flat sequentially at $167 million [26] - Digital fee revenue was $93 million, down 4% year-over-year but up 5% sequentially, with digital subscription and license fee revenue growing by 7% year-over-year [25] - Executive search fee revenue grew by 1% year-over-year to $206 million, while interim fee revenue decreased by approximately 17% year-over-year [19][30] Market Data and Key Metrics Changes - The interim market demand remained challenging, with interim fee revenue down approximately 17% year-over-year [21] - New business growth for Executive search and digital was strong, up 4% and 11% year-over-year respectively [15][22] - Recruitment process outsourcing (RPO) saw $101 million in new business, including $41 million from renewals and extensions [23] Company Strategy and Development Direction - The company is focusing on diversifying its business and investing in proprietary data assets, including the launch of the Korn Ferry Talent Suite [9] - The acquisition of Trilogy International aims to expand interim professional offerings in EMEA and North America [10] - The company is committed to maintaining profitability while investing in consultant additions and capital investments for future growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining current profitability levels despite uncertainties in the operating environment [13] - The company anticipates fee revenue for Q3 FY 2025 to range from $635 million to $665 million, with adjusted EBITDA margin expected to remain between 16.5% and 17.3% [34] - Management noted that the current labor market is unusual, with expectations of continued challenges in the interim market [76][84] Other Important Information - The company repurchased $33 million of stock and paid a quarterly dividend of $0.37 per share during the second quarter [16] - The investable cash position at the end of Q2 was $537 million, up 16% year-over-year [24] Q&A Session Summary Question: Expectations for revenue trends by segment in Q3 - Management indicated a seasonal decline in Q3 revenue, estimating a potential impact of $30 million to $40 million due to fewer working days [40][41] Question: Confidence in the Trilogy acquisition and interim business opportunities - Management expressed optimism about the Trilogy acquisition, highlighting its potential to tap into the large interim market in EMEA [46] Question: Stability of demand and revenue guidance - Management acknowledged stable demand but noted the impact of fewer working days on revenue expectations [51][53] Question: Trends in the digital business and year-over-year decline - Management attributed the decline in digital revenue to a shift towards subscription agreements, with confidence in future growth [61][62] Question: Impact of larger contracts on consulting revenue - Management noted that larger contracts are leading to longer implementation times, affecting revenue trends [66][70] Question: Labor turnover and its impact on services - Management indicated that the current labor market dynamics are unusual, with optimism for future demand despite challenges [76][78] Question: Sources of margin improvement amid revenue declines - Management highlighted cost management, strategic decisions made over a year ago, and a focus on profitable work as key drivers of margin improvement [89][91]

FY'25 Q2 Earnings Call © 2024 Korn Ferry | DECEMBER 5, 2024 SAFE HARBOR STATEMENT FORWARD-LOOKING STATEMENTS Statements in this presentation that relate to goals, strategies, future plans and expectations are based on Korn Ferry's current expectations. You are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties. For a detailed description of many of those risks and uncert ...