Korn Ferry Announces First Quarter Fiscal 2025 Results of Operations
Earnings Press Release Q1-FY'25
Los Angeles, CA, September 5, 2024 – Korn Ferry (NYSE: KFY), a global organizational consulting firm, today announced first quarter fee revenue of $674.9 million. In addition, first quarter diluted earnings per share was $1.17 and adjusted diluted earnings per share was $1.18.
“I am pleased with our first quarter results, as we generated $675 million in fee revenue,” said Gary D. Burnison. “Earnings and profitability increased year over year as we delivered $111 million of Adjusted EBITDA, at a 16.5% margin, which is our fifth consecutive quarter of profitability improvement."
“Our sustained success stems from a balanced approach – from our colleagues and IP to our diversified strategy and broad offerings. As a result, our topline is more than 30 percent higher than before the pandemic, with even greater profitability. During the quarter, Consulting and Digital maintained their positive momentum, with improved growth in Executive Search and stable trends across Professional Search permanent placement and RPO. We are also confident about the future, as evidenced by our capital allocation, which not only included share buybacks but also more than a twofold increase in our quarterly dividend year over year. Moving forward, we will continue to transform the business to enable our clients to Be More Than.”
Highlights:
- Korn Ferry reports Q1 FY'25 fee revenue of $674.9 million, a year-over-year decrease of 3% (down 2% on a constant currency basis). o Executive Search fee revenue grew 2% year-over-year (up 3% at constant currency). o Fee revenue for Consulting and Digital was flat year-over-year (up 1% and 2%, respectively, at constant currency), continuing to demonstrate stability in a challenging market.
- Net income attributable to Korn Ferry was $62.6 million, while diluted and adjusted diluted earnings per share were $1.17 and $1.18 in Q1 FY'25, respectively.
- Operating income was $76.1 million and Adjusted EBITDA was $111.2 million.
- Operating margin increased 320bps year-over-year to 11.3%. Adjusted EBITDA margin was 16.5%, a 280bps increase compared to the year-ago quarter, and our fifth consecutive quarter of sequential improvement.
- The Company repurchased 351,250 shares of stock during the quarter for $23.5 million.
- Declared a quarterly dividend of $0.37 per share on September 4, 2024, which is payable on October 15, 2024 to stockholders of record on September 19, 2024.
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We work with our clients to design optimal organization structures, roles, and responsibilities. We help them hire the right people and advise them on how to reward and motivate their workforce while developing professionals as they navigate and advance their careers.
