Korn Ferry Announces Fourth Quarter and Full Year FY’23 Results of Operations
Los Angeles, CA, June 27, 2023 – Korn Ferry, a global organizational consulting firm, announced fourth quarter and annual fee revenue of $730.9 million and $2,835.4 million, respectively. In addition, fourth quarter diluted earnings per share was $0.91 and adjusted diluted earnings per share was $1.01.
“During fiscal year 2023 our fee revenue reached an all-time high of $2.84 billion, up 8% at actual, 12% constant currency. The story of this period though is really about the success of our diversification strategy, set forth over the past few years, which has created new revenue streams and offerings, as clearly evidenced by our clients and in our results,” said Gary D. Burnison, CEO, Korn Ferry.
“In FY’23 we added a completely new capability – an interim and transition management business with more than $400 million of annual revenue on a run rate basis,” added Burnison. “Additionally, the Consulting and Digital businesses have never been more relevant as our clients increasingly seek transformation, growth and profitability.
“With a world immersed in Generative AI, Korn Ferry will continue to invest not only in these technologies, but also in advancing our proprietary data, assessment instruments and knowledge as these will be the ultimate differentiators.”
Highlights:
Korn Ferry reports Q4 FY’23 fee revenue of $730.9 million, an increase of 1% (up 3% on a constant currency basis) compared to Q4 FY’22 and full year FY’23 fee revenue of $2,835.4 million, an increase of 8% (up 12% on a constant currency basis) compared to FY’22.
Net income attributable to Korn Ferry for the fourth quarter and full year of FY’23 was $47.5 million and $209.5 million, respectively, while diluted and adjusted diluted earnings per share were $0.91 and $1.01 in Q4 FY’23, and were $3.95 and $4.94 for the full year, respectively.
Operating income and Adjusted EBITDA were $72.6 million (operating margin of 9.9%) and $97.9 million (Adjusted EBITDA margin of 13.4%), respectively, in Q4 FY’23, while full year amounts were $316.3 million (operating margin of 11.2%) and $457.3 million (Adjusted EBITDA margin of 16.1%), respectively.
The Company repurchased 255,000 shares of stock during the quarter for $13.4 million and paid dividends of $8.0 million.
On June 26, 2023, the Company increased its regular quarterly cash dividend by 20% to $0.18 per share, which is payable on July 31, 2023 to stockholders of record on July 7, 2023.
For the full year the Company continued to maintain its balanced approach to capital allocation by investing $254.8 million in acquisitions, investing $61.0 million in cap-ex primarily related to the Digital business and corporate infrastructure, spending $18.5 million on debt service costs, and returning $93.9 million and $33.0 million to shareholders in the form of share repurchases and dividends, respectively.
About Korn Ferry
Korn Ferry is a global organizational consulting firm. It works with its clients to design optimal organization structures, roles, and responsibilities. It helps 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.
SOURCE Korn Ferry
