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 ...

Core Viewpoint - Korn/Ferry reported quarterly earnings of $1.21 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.97 per share a year ago [1]. Group 1: Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2]. - Korn/Ferry's revenues for the quarter ended October 2024 were $674.37 million, exceeding the Zacks Consensus Estimate by 0.50%, but down from $704 million year-over-year [2]. - The current consensus EPS estimate for the upcoming quarter is $1.16, with expected revenues of $670.5 million, and for the current fiscal year, the estimate is $4.84 on $2.72 billion in revenues [8]. Group 2: Stock Performance - Korn/Ferry shares have increased approximately 32.5% since the beginning of the year, outperforming the S&P 500's gain of 27.6% [4]. - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [7]. Group 3: Industry Outlook - The Staffing Firms industry is currently ranked in the bottom 47% of over 250 Zacks industries, suggesting potential challenges for stock performance [9]. - Resources Connection, another company in the same industry, is expected to report a break-even quarterly EPS, reflecting a year-over-year change of -100% [10].

Financial Performance - Q2 FY'25 fee revenue was $674.4 million, a year-over-year decrease of 4%[4] - Operating income increased to $87.5 million with an operating margin of 13.0%, up 980bps year-over-year[3] - Net income attributable to Korn Ferry was $60.8 million, compared to a net loss of $1.7 million in Q2 FY'24[6] - Adjusted EBITDA for Q2 FY'25 was $117.0 million, with an adjusted EBITDA margin of 17.4%, an increase of 340bps year-over-year[6] - Total revenue for the three months ended October 31, 2024, was $681.96 million, a decrease of 4.3% compared to $712.45 million for the same period in 2023[35] - Fee revenue for the six months ended October 31, 2024, was $1.35 billion, down 3.8% from $1.40 billion in the same period last year[37] - Adjusted net income attributable to Korn Ferry for the three months ended October 31, 2024, was $60.80 million, compared to a net loss of $1.71 million in the same period last year[35] - Basic earnings per share for the three months ended October 31, 2024, was $1.16, compared to a loss of $0.04 per share in the same period last year[35] - For the six months ended October 31, 2024, total revenue was $1.36 billion, a decrease of 2.7% from $1.42 billion in the same period of 2023[41] Segment Performance - Consulting fee revenue was $166.8 million in Q2 FY'25, a decrease of 6% year-over-year[8] - Fee revenue for Executive Search in Q2 FY'25 was $206.0 million, an increase of $3.0 million or 1% compared to the year-ago quarter[14] - Fee revenue for Professional Search & Interim in Q2 FY'25 was $121.1 million, a decrease of $17.3 million or 13% year-over-year[16] - Fee revenue for Recruitment Process Outsourcing (RPO) in Q2 FY'25 was $87.6 million, essentially flat compared to the year-ago quarter[19] - The Professional Search & Interim segment reported a fee revenue decline of 12.5% for the three months ended October 31, 2024, compared to the same period in 2023[37] - The company reported a fee revenue of $340.15 million for consulting in the six months ended October 31, 2024, down from $351.75 million in the same period of 2023[41] Adjusted Metrics - Adjusted EBITDA for Consulting was $29.1 million, with an adjusted EBITDA margin of 17.5%, up 120bps year-over-year[8] - Adjusted EBITDA for Q2 FY'25 was $29.2 million, with an adjusted EBITDA margin of 31.4%, an increase of 150bps year-over-year[11] - Adjusted EBITDA for Executive Search was $51.4 million in Q2 FY'25, with an adjusted EBITDA margin of 24.9%, up 530bps year-over-year[14] - Adjusted EBITDA for Professional Search & Interim was $27.2 million in Q2 FY'25, with an adjusted EBITDA margin of 22.5%, an increase of 400bps year-over-year[16] - Adjusted EBITDA for RPO was $12.9 million in Q2 FY'25, with an adjusted EBITDA margin of 14.7%, an increase of 460bps year-over-year[19] - Adjusted EBITDA for the six months ended October 31, 2024, was $228,236 thousand, up from $194,200 thousand in the prior year, reflecting a growth of approximately 17.5%[40] - Adjusted EBITDA for Q4 2024 was $117.03 million, representing an adjusted EBITDA margin of 17.4%, down from 14.0% in Q4 2023[41] - Adjusted EBITDA for the six months ended October 31, 2024, was $228.24 million, with an adjusted EBITDA margin of 16.9%[41] Shareholder Returns - The company repurchased 456,250 shares for $32.6 million during the quarter[3] - A quarterly dividend of $0.37 per share was declared, payable on January 15, 2025[3] Future Outlook - Q3 FY'25 fee revenue is expected to be in the range of $635 million to $665 million[21] - Q3 FY'25 diluted earnings per share is expected to range between $1.02 to $1.16[21] - The company expects continued challenges due to inflationary pressures and geopolitical uncertainties affecting future performance[28] Balance Sheet Highlights - Total current assets decreased to $1,482,447 thousand from $1,674,160 thousand, a decline of approximately 11.5%[39] - Total liabilities decreased to $1,743,788 thousand from $1,941,544 thousand, a reduction of about 10.2%[39] - Total stockholders' equity increased to $1,782,865 thousand from $1,737,325 thousand, reflecting a growth of approximately 2.6%[39] - Cash and cash equivalents decreased to $694,850 thousand from $941,005 thousand, a decline of approximately 26.2%[39] Restructuring and Expenses - The company incurred restructuring charges of $576,000 for the three months ended October 31, 2024, compared to $63.53 million in the same period last year[35] - Korn Ferry's total operating expenses for the three months ended October 31, 2024, were $594.48 million, down from $689.63 million in the same period last year[35]

Core Viewpoint - Korn/Ferry (KFY) is expected to report quarterly earnings of $1.21 per share, reflecting a 24.7% increase year-over-year, while revenues are forecasted to decline by 4.7% to $671 million [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1] - Analysts predict 'Fee Revenue- Total executive search' to reach $202.31 million, a decrease of 0.3% from the previous year [4] - The overall 'Fee revenue' is estimated at $671 million, showing a decline of 4.7% year-over-year [4] - 'Fee Revenue- Digital' is forecasted to be $91.19 million, down 6.1% from the year-ago quarter [4] - 'Fee Revenue- Consulting' is expected to reach $170.12 million, indicating a year-over-year change of -4.3% [5] Group 2: Market Performance - Korn/Ferry shares have increased by 10.9% over the past month, outperforming the Zacks S&P 500 composite, which rose by 3.5% [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [6]

Since my previous Hold rating on Korn Ferry (NYSE: KFY ), the global organizational consulting firm, its stock has gained 17.5%. However, I do consider the majority of these gains to be largely speculative and leadingOliver Rodzianko is an investment analyst specializing in the technology sector, grounded in timeless value principles. His expertise spans AI, semiconductors, software, and renewable energy, with a focus on companies that demonstrate resilient management and lasting competitive advantages. A t ...

Korn Ferry (KFY) FY 2024 Annual General Meeting September 25, 2024 11:00 AM ET Speaker0Good morning, and welcome to the twenty twenty four Annual Meeting of Stockholders. I'm Jerry Lehman, chair of the board of directors. It is 8AM, and I now call a meeting to order. I will act as chair of today's meeting, and Jonathan Quai, our general counsel and corporate secretary, will act as secretary. Also with us are members of our board of directors, our CEO and fellow board member, Gary Burnison Russ Hagee, a nomi ...

Korn/Ferry (KFY) reported $674.95 million in revenue for the quarter ended July 2024, representing a yearover-year decline of 3.5%. EPS of $1.18 for the same period compares to $0.99 a year ago. The reported revenue represents a surprise of +1.69% over the Zacks Consensus Estimate of $663.76 million. With the consensus EPS estimate being $1.12, the EPS surprise was +5.36%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Korn Ferry KFY is set to release earnings results for its first quarter, before the opening bell on Thursday, Sept. 5. Analysts expect the Los Angeles, California-based company to report quarterly earnings at $1.12 per share, up from 99 cents per share in the year-ago period. Korn Ferry projects to report quarterly revenue of $663.94 million for the quarter, according to data from Benzinga Pro. On June 13, Korn Ferry said fourth-quarter revenue fell 5.2% Y/Y to $699.9 million, beating the consensus of $689. ...

Wall Street analysts forecast that Korn/Ferry (KFY) will report quarterly earnings of $1.12 per share in its upcoming release, pointing to a year-over-year increase of 13.1%. It is anticipated that revenues will amount to $663.76 million, exhibiting a decline of 5.1% compared to the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Bef ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that ...