Korn Ferry revenue up 26% in fiscal Q4 amid recovery from Covid

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Fee revenue at executive search and consulting provider Korn Ferry (NYSE: KFY) rose 26.0% year over year in its fiscal fourth quarter ended April 30 as recovery from the Covid-19 pandemic helped fuel growth. The increase was 22% in constant currency.

“During the fiscal fourth quarter we generated $555 million in fee revenue, an all-time record, up 26% year-over-year,” CEO Gary Burnison said.

(US$ thousands) Q4 2021 Q4 2020 % change
Fee revenue $555,151 $440,469 26.0%
Reimbursed expenses $2,243 $8,507 -73.6%
Total revenue $557,394 $448,976 24.1%
Net income/loss $66,751 -$621 nm

The 2020 fourth quarter included restructuring charges of $40.5 million.

Fee revenue by segment

(US$ thousands) Q4 2021 Q4 2020 % change
Consulting $153,573 $120,992 26.9%
Digital $80,499 $69,269 16.2%
Total executive search $200,728 $167,855 19.6%
RPO and professional search $120,351 $82,353 46.1%

Executive search fee revenue rose 19.6%, or 16% on a constant currency basis. Korn Ferry reported higher fee revenue in North America where demand for its products and services has exceeded pre-pandemic levels. The worldwide economic recovery also boosted growth in executive search revenue.

Korn Ferry noted that recruitment process outsourcing fee revenue rose 58%; the increase was 51% in constant currency. Professional search revenue rose 28%, or 23% in constant currency.

Fee revenue by geography

(US$ thousands) Q4 2021 Q4 2020 % change
North America $130,790 $102,196 28.0%
Europe, the Middle East and Africa $41,253 $39,662 4.0%
Asia Pacific $23,604 $19,737 19.6%
Latin America $5,081 $6,260 -18.8%

Full-year results

(US$ thousands) FY 2021 FY 2020 % change
Fee revenue $1,810,047 $1,932,732 -6.3%
Reimbursed expenses $9,899 $44,598 -77.8%
Total revenue $1,819,946 $1,977,330 -8.0%
Net income $115,562 $107,017 8.0%

Guidance

Korn Ferry forecast first-quarter fee revenue of between $535 million and $555 million, representing a year-over-year increase of between 55% and 61%.

Share price and market cap

Shares in Korn Ferry were up 4.73% to $68.20 as of 12:39 p.m. Eastern time; they were 1.67% below their 52-week high, according to FT.com. The company had a market cap of $3.52 billion.