What were the key takeaways from Korn Ferry's earnings call?

What were the key takeaways from Korn Ferry’s earnings call?

What is Korn Ferry's latest dividend and current dividend yield?

What is the market's earnings forecast for Korn Ferry next quarter?

Did Korn Ferry beat or miss consensus estimates last quarter?

What factors drove the changes in Korn Ferry's revenue and profit?

What is Korn Ferry's gross profit margin?

What guidance did Korn Ferry's management provide for the next earnings period?

- **Revenue Growth & Strategy Success**: Q2 fee revenue +7% YoY ($722M), driven by 10% Executive Search growth and 27.6% business referrals. 'We Are Korn Ferry' strategy boosts cross-solution sales, with RPO renewals at 84%.
- **Digital Transformation**: Talent Suite launch integrates 30M+ pay data points, enabling pay transparency analytics. Consulting bill rates rise 10% YoY to $460/hour, reflecting premium pricing for transformational engagements.
- **AI-Driven Efficiency**: RPO uses AI for candidate identification, while interim consulting (24% YoY growth) benefits from U.K. expansion. Q3 guidance reflects cautious optimism amid macro uncertainty.

**【Management Opening Remarks】**
- CEO Gary Burnison highlighted Q2 performance as 'outstanding,' emphasizing the 'We Are Korn Ferry' strategy of integrating 5 solutions into 1 holistic talent business. Key examples included partnerships with a major tech company (AI data centers), a new hospital (physician recruitment), and a global consumer company (AI transformation leadership development). Business referrals reached 27.6% of fee revenue, up 250bps YoY, signaling cross-solution success.

**【CEO Commentary】**
- Executive Search fee revenue grew 10% YoY for the 6th consecutive quarter, driven by leadership demand amid Baby Boomer retirements and work-life balance shifts. Interim consulting bill rates rose 24% YoY (including Trilogy acquisition), with EMEA leading growth. CEO cited 'green shoots' in Pro Search and Interim Solutions, despite macro uncertainty. Consulting new business >$500k grew to 40% (from 37% last quarter), reflecting larger, transformational engagements.

**【CFO Financial Commentary】**
- Consolidated fee revenue: $722M (+7% YoY). Adjusted EBITDA: $125M (+7% YoY), margin 17.3%. Adjusted EPS: $1.33 (+10% YoY). RPO delivered $253M new business (16% new logos, 84% renewals). Estimated remaining fees: $1.84B (+20% YoY). Q3 guidance: Fee revenue $680-694M, EBITDA margin 17.2-17.4%, EPS $1.19-1.25.

**【Q&A Highlights】**
- **AI & Technology Impact**: CFO noted Talent Suite launch harmonized data across 30M+ pay data points, 15K success profiles, and org strategy tools. CEO highlighted RPO's AI-driven renewals and consulting's org strategy growth. Bill rates in consulting ($460/hour) and interim ($142/hour) reflect premium pricing for high-impact work.
- **Digital Business Challenges**: CEO explained 35% reduction in digital sellers to pivot to enterprise sales, causing short-term declines but positioning for licensing growth. Q2 saw delayed multimillion-dollar deals but 43% of Digital new business via subscriptions/licenses.
- **RPO Strength**: 84% renewals in Q2, with wins in healthcare and industrial sectors. CFO noted 50% of RPO revenue from cross-solution referrals, underscoring '1 business' strategy success.


Korn Ferry(KFY)-20251209-2026 Q2 Earnings call transcript

- **Revenue Growth**: 15% YoY driven by North American recovery and digital expansion; EMEA/APAC up 19%/12%.
- **Talent Suite Launch**: November 2025, targeting 60%+ digital revenue; 1,800 consultants trained for rollout.
- **Profitability**: 8% YoY EBITDA growth to $120M; 17% margin, up 50bps.
- **AI Integration**: 40-person AI team enhancing workflows; clients prioritizing AI readiness.
- **Q2 Guidance**: Fee revenue $690-710M, EPS $1.23-1.33, reflecting cautious outlook.
- **Client Engagement**: 40% revenue from Marquee/Diamond accounts; 25% cross-solution referrals.


**【CEO Summary Section】**
- Highlighted 15% year-over-year revenue growth, driven by North American recovery and diversification strategy.
- Announced multiyear client engagements in pharma, retail, and HR software sectors, showcasing integrated solutions.
- Introduced Talent Suite, a digital SaaS platform, to enhance client talent management capabilities.
- Emphasized long-term growth with a 10-year revenue CAGR of 10% and 25% cross-solution referrals.
- Optimistic about future, citing strong client relationships and AI-driven innovation.

**【CFO Financial Commentary】**
- Consolidated fee revenue grew 5% YoY to $709 million, with EMEA and APAC up 19% and 12% respectively.
- Adjusted EBITDA increased 8% YoY to $120 million, with margin expanding 50 basis points to 17%.
- Digital subscription/license new business grew 10% YoY, contributing 39% of total digital revenue.
- Backlog of $1.67 billion, with 58% expected to be recognized within a year.
- Q2 guidance: Fee revenue $690-710 million, EBITDA margin 17-17.5%, EPS $1.23-1.33.
- Capital allocation focused on Talent Suite and productivity tools.

**【Q&A Highlights】**
- **Talent Suite Launch**: November 2025, targeting 60%+ digital revenue within solutions; training 1,800 consultants for go-to-market.
- **Digital Growth**: Subscription/license new business up 10% YoY; long-term target >60% digital mix.
- **Consulting Performance**: 8% YoY growth, with 42% of backlog in engagements >$1M.
- **AI Impact**: Integrating AI into workflows to enhance efficiency; 40-person AI team driving human+AI strategy.
- **Labor Market**: Clients focusing on AI readiness and workforce transformation amid labor recession.
- **Regional Trends**: EMEA and APAC outperforming Americas, driven by multi-solution engagements.
- **Shareholder Returns**: $36M returned via buybacks and dividends, balanced with growth investments.


Korn Ferry (KFY) Q1 2026 Earnings Call Transcript

- **Revenue Growth**: Q4 fee revenue up 4% YoY, driven by cross-solution referrals (26% of revenue) and marquee accounts (39%).
- **Profitability**: Adjusted EBITDA margin expanded 70bps to 17%, with $1.32 EPS beating expectations.
- **Digital Expansion**: Digital new business 40% subscription/licensed, talent suite integration poised to boost CRM partnerships.
- **Executive Search Strength**: 15% YoY growth, supported by demographic trends and leadership transformation demand.
- **Future Visibility**: $1.7B remaining fees under contracts, 57% to be recognized in next year, signaling durable growth.

**【CEO Summary Section】**
- Fee revenue grew 4% YoY (constant currency), driven by strong performance across solutions.
- New business increased 3% YoY, with 77% of clients using 2+ solutions and 50% using 3+.
- Marquee and diamond accounts represent 39% of fee revenue, showcasing client retention strength.
- Talent suite product releases expanded data analytics capabilities, with 38 million talent profiles and 7 million survey respondents.
- Emphasis on AI and technology to drive organizational performance, with 25 new senior client partner hires.

**【CFO Financial Commentary】**
- Q4 fee revenue: $712M (4% YoY growth, constant currency).
- Adjusted EBITDA: $121M (+8% YoY), margin 17% (+70bps).
- Adjusted EPS: $1.32 (+5% YoY).
- New business: $119M in RPO (77% new logos), digital new business 40% subscription/licensed.
- Estimated remaining fees under contracts: $1.7B (+12% YoY), 57% to be recognized in next year.
- Q1 '26 guidance: Fee revenue $675-695M, EBITDA margin 16.8-17.2%, EPS $1.18-1.26.
- Capital allocation: $173M returned to shareholders, $44M in M&A, $62M in tech investments.

**【Q&A Key Highlights】**
- **New Business Trends**: May stronger than April, with consulting engagements 25% over $1M. Digital new business growth consistent at 4% YoY.
- **Sales Cycles**: Longer for large consulting projects (3-5 years), impacting short-term revenue recognition.
- **Digital Growth**: Talent suite integration with CRM expected by end-2025, driving subscription stability.
- **Macro Impact**: Cost of living crisis and low birth rates creating labor shortages, increasing demand for AI-driven solutions.
- **Executive Search**: 15% YoY growth, driven by demographic shifts and leadership transformation needs.
- **Productivity**: Average consultant fee revenue $1.6M, reflecting efficiency in high-margin solutions.


Korn Ferry (KFY)-18 Jun 25-2025 Q4 Earnings call transcript

- **Revenue Growth**: 13% new business growth, 65% RPO from new clients, and 41% of consulting deals >$500K highlight strategic shift to high-impact, durable engagements.
- **Profitability**: 17.1% EBITDA margin (+190bps YoY), $1.19 EPS, and 31.3% Digital margin reflect operational excellence.
- **Shareholder Returns**: 30% dividend increase (sixth in five years) and $133M returned YTD signal financial strength.
- **AI-Driven Productivity**: 7% consultant productivity growth to $1.5M annualized, with AI/GenAI poised to amplify gains.
- **Long-Term Tailwinds**: Peak 65 retirements, labor shortages, and workforce transformation demand position Korn Ferry for sustained growth.


**【CEO Summary Section】**
- **Revenue Growth and Strategic Shifts**: Fee revenue of $669 million (+2% YoY at constant currency) driven by 13% new business growth, with 65% of RPO new business from new clients. Key wins include a global energy company (60,000+ employees) and leadership programs at top insurers.
- **Profitability and Shareholder Returns**: Adjusted EBITDA margin expanded 190bps to 17.1%, with $1.19 EPS (+11% YoY). Dividend increased 30% for the sixth time in five years.
- **Market Positioning**: 39% of fee revenue from marquee/diamond accounts, 25% from cross-solution referrals, and 1,100+ cross-referrals from interim acquisitions.
- **Long-Term Outlook**: Emphasizes workforce transformation demand due to Peak 65 retirements, labor shortages, and AI-driven productivity gains.

**【CFO Financial Commentary】**
- **Segment Performance**: 
  - **Consulting**: $159M new business (+3% YoY), 41% of new deals >$500K, 7% consultant productivity growth to $1.5M annualized.
  - **Digital**: $91M fee revenue (+3% YoY), 39% from subscriptions/licenses, 31.3% EBITDA margin.
  - **Executive Search**: $205M fee revenue (+4% YoY), 7% consultant productivity growth to $1.5M annualized.
  - **RPO**: $85M fee revenue (+6% YoY), $752M under contract with 42% expected in next four quarters.
- **Capital Allocation**: $45M spent on Trilogy acquisition, $18M share buybacks, $19M dividends (total $133M returned YTD).
- **Q4 Outlook**: Fee revenue $680-700M, EBITDA margin 16.8-17%, EPS $1.22-1.30.

**【Q&A Highlights】**
- **Productivity Drivers**: AI/GenAI adoption, higher bill rates ($461/hour Consulting, $129/hour Interim), and 35-40% revenue growth per consultant vs. pre-pandemic levels.
- **RPO Growth**: Driven by new clients (65%), healthcare/life sciences expansion, and labor supply-demand imbalance.
- **Digital Volatility**: Q3 decline due to tough comp from prior year licensing deals, but stable long-term in challenging macro.
- **Macro Resilience**: 40% consulting backlog in >$500K deals provides visibility, while smaller discretionary work lags.
- **PS&I Strategy**: Focused on high-end interim roles ($129/hour) and avoiding contingent placement businesses.
- **Peak 65 Impact**: 4-5M executives retiring annually, driving demand for leadership development and succession planning.


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