Fee revenue increased in all lines of business at Korn Ferry (NYSE: KFY) in its fiscal second quarter ended Oct. 31 with total revenue up 46% in constant currency.
The provider of executive search, RPO and other services cited record levels of business driven by workforce transformation; increased interest in diversity, equity and inclusion; and other secular changes. In addition, Covid-19 had an adverse effect on the year-ago quarter.
| (US$ thousands) | Q2 2022 | Q2 2021 | % change | % constant currency |
| Fee revenue | $639,443 | $435,439 | 46.9% | 46% |
| Reimbursed expenses | $3,955 | $2,350 | 68.3% | |
| Total revenue | $643,398 | $437,789 | 47.0% | |
| Net income | $75,772 | $27,778 | 172.8% |
Second-quarter RPO and professional search revenue at Korn Ferry rose 74% year over year in constant currency. RPO revenue alone rose 67% in constant currency while professional search revenue increased 86% in constant currency. Korn Ferry reported wider adoption by the market of RPO services and said professional search was bolstered by more engagements and a higher weighted-average fee billed per engagement.
Digital revenue rose 17% in constant currency with increased levels of workplace attrition helping fuel growth. Consulting revenue was up 29% in constant currency amid workforce transformation initiatives at clients.
Fee revenue by segment
| (US$ thousands) | Q2 2022 | Q2 2021 | % change | % constant currency |
| Consulting | $164,893 | $126,685 | 30.2% | 29% |
| Digital | $88,639 | $75,043 | 18.1% | 17% |
| Total executive search | $235,459 | $148,060 | 59.0% | 58% |
| RPO and professional search | $150,452 | $85,651 | 75.7% | 74% |
Executive search revenue rose 58% in constant currency with increases in the number of searches and average fee revenue. The largest increases were in North America.
Fee revenue by geography
| (US$ thousands) | Q2 2022 | Q2 2021 | % change |
| North America | $158,197 | $91,168 | 73.5% |
| Europe, the Middle East and Africa | $42,434 | $31,629 | 34.2% |
| Asia Pacific | $28,257 | $20,807 | 35.8% |
| Latin America | $6,571 | $4,456 | 47.5% |
Guidance
Korn Ferry forecast third-quarter fee revenue to rise by a range of 35% and 39% to between $640 million and $660 million.
Share price and market cap
Shares in Korn Ferry were up 0.90% to $75.95 as of 11:49 a.m. Eastern time; they were 10.31% below their 52-week high, according to FT.com. The company had a market cap of $4.10 billion.