Fri, Sep 6, 5:58 PM (105 days ago)
For the quarter ended July 31, 2024, Korn Ferry reported a 3% decline in fee revenue to $674.9 million, with notable decreases in Professional Search & Interim and Recruitment Process Outsourcing (RPO) segments due to economic headwinds. Net income attributable to Korn Ferry rose 34% to $62.6 million, driven by a reduction in compensation and benefits expenses, which fell by 6% to $451.8 million, reflecting a 14% reduction in average headcount. Operating income improved to $76.1 million, with an operating margin of 11.3%, up 320 basis points year-over-year. Adjusted EBITDA increased by 16% to $111.2 million, indicating effective cost management despite lower revenues. Cash and cash equivalents decreased to $633.4 million, influenced by higher dividend payments and stock repurchases totaling $23.5 million during the quarter. The company maintains a strong liquidity position, with $645.4 million available under its revolving credit facility. The effective tax rate dropped to 25.8%, aided by favorable windfalls from stock-based awards. Overall, Korn Ferry appears well-positioned for continued growth, although it faces uncertainties from the macroeconomic environment.