Korn Ferry Announces Third Quarter Fiscal 2023 Results of Operations

Earnings Press Release Q3-FY'23

Los Angeles, CA, March 8, 2023 – Korn Ferry (NYSE: KFY), a global organizational consulting firm, today announced third quarter fee revenue of $680.8 million. In addition, third quarter diluted earnings per share was $0.21 and adjusted diluted earnings per share was $1.01. Adjusted diluted earnings per share for the third quarter excludes $41.8 million, net of tax or $0.80 per share, of restructuring charges, net, due to the realignment of our workforce, impairment of certain real estate assets and integration/acquisition costs.

“During the fiscal third quarter we generated $681 million in fee revenue, flat year-over-year and up 4% at constant currency. Our fully diluted earnings per share and Adjusted fully diluted earnings per share were $0.21 and $1.01, respectively, and our Adjusted EBITDA was $96 million, a 14.1% margin,” said Gary D. Burnison, CEO, Korn Ferry.

“Korn Ferry is incredibly well-positioned as clients continue to navigate an economy in transition. We will continue to prioritize faster growing, larger addressable, less cyclical markets that set up our firm and our clients for success. As an example, the recent addition of Salo now brings our interim services to be more than 10% of our firm’s revenue on a pro forma basis.”

Highlights

• Korn Ferry reports fee revenue of $680.8 million in Q3 FY’23, essentially flat (increase of 4% at constant currency) from Q3 FY’22.
• Net income and adjusted net income attributable to Korn Ferry were $11.2 million and $53.0 million in Q3 FY’23, while diluted and adjusted diluted earnings per share were $0.21 and $1.01 in Q3 FY’23, respectively.
• Operating income and Adjusted EBITDA were $12.5 million (operating margin of 1.8%) and $96.1 million (Adjusted EBITDA margin of 14.1%), respectively, in Q3 FY’23.
• The Company repurchased 462,500 shares of stock during the quarter for $25.0 million.
• Declared a quarterly dividend of $0.15 per share on March 7, 2023, which is payable on April 14, 2023 to stockholders of record on March 28, 2023.
• On February 1, 2023, Korn Ferry completed the acquisition of Salo, a leading provider of finance, accounting and HR interim talent, which will be included in the Professional Search & Interim segment in Q4 FY'23.

Contacts:

• Investor Relations: Gregg Kvochak, (310) 556-8550
• Media: Dan Gugler, (310) 226-2645