Korn Ferry (KFY) FY Conference Summary Company Overview - **Company**: Korn Ferry - **Industry**: Staffing and Human Capital Services - **Event Date**: June 04, 2025 - **Key Speakers**: Bob Rozek (CFO), Tiffany Louders (VP of Investor Relations) Core Points and Arguments Business Transformation - Korn Ferry has evolved from primarily an executive search firm (80-85% of revenue) to a diversified organizational consulting firm, with executive search now representing only 29% of the business [5][8] - The company has developed capabilities in organizational strategy, talent acquisition, leadership development, and total rewards [7][8] Financial Performance - FY 2024 fee revenue was $2.76 billion, with a trailing 12-month revenue of $2.71 billion, reflecting a slight decline of 1% year-over-year [11] - Adjusted EBITDA increased by nearly $50 million, with a margin improvement of 200 basis points [11] - Digital business revenue, including subscriptions and licenses, grew by 200 basis points [11] Client Base and Market Position - Korn Ferry works with 97% of the S&P 500 and 75% of the best companies identified by Fortune magazine [12] - The addressable market for Korn Ferry's services is estimated at $450 billion, driven by demographic changes [17] Strategic Focus - The company emphasizes integrated client engagements, aiming to present itself as a unified entity rather than a collection of services [25][46] - Korn Ferry's growth strategy includes a balanced approach to capital allocation, focusing on reinvestment in the business, M&A, dividends, and share buybacks [36][39] M&A and Growth Strategy - M&A has contributed approximately 40% of Korn Ferry's growth, with significant acquisitions like PDI and Hay Group enhancing its capabilities [27] - The company aims to pursue transformational opportunities at the intersection of talent and strategy [27] Talent and Retention - Korn Ferry has a strong retention rate of over 99% for senior client personnel, highlighting its focus on talent management [29] - The company is developing a "talent suite" to integrate various solutions and improve client engagement [30] Margin Improvement - Korn Ferry has seen margin increases despite challenging market conditions, with a current margin of 17% and a target range of 16-18% [54][58] - Cost management strategies include reducing real estate expenses and proactively managing underperforming staff [56][58] Additional Important Insights - The executive search business has shown positive growth due to factors like workforce turnover and changing work preferences [50][53] - Korn Ferry's integrated approach aims to eliminate silos within the organization, enhancing collaboration and client service [46][48] - The company has a disciplined approach to M&A, focusing on strategic alignment, financial viability, and cultural fit [39][40] This summary encapsulates the key points discussed during the Korn Ferry FY Conference, highlighting the company's strategic direction, financial performance, and market positioning.