Earnings Press Release Q2-FY'21

Korn Ferry (NYSE: KFY), a global organizational consulting firm, today announced second quarter fee revenue of $435.4 million.  Second quarter diluted earnings per share was $0.51 and adjusted diluted earnings per share was $0.54.  Adjusted diluted earnings per share for the second quarter excludes an aggregate of $1.7 million, net of tax or $0.03 per share, of restructuring charges, net, due to the coronavirus pandemic (“COVID-19”).

“During the recently completed second quarter, I’m pleased that Korn Ferry’s revenue was up 27% sequentially to $435 million.  We had a sharp improvement in earnings and profitability with net income attributable to Korn Ferry of $28 million with an operating margin of 11.1% and $66 million of adjusted EBITDA and a 15.2% adjusted EBITDA margin,” said Gary D. Burnison, CEO, Korn Ferry.  “I’m not only encouraged by the financial results, but extremely proud of all that has been accomplished by our Korn Ferry colleagues to help our business rebound so dramatically.  The actions, strategy, solutions and messages we’ve taken to the marketplace have resonated.  Our clients have responded, and our colleagues have been resilient through a year that none of us have experienced in our lifetimes.

“As we look to the calendar year ahead, almost every company on the planet is and will have to re-imagine their business.  So forget the new normal, this is normal,” Burnison added.  “Companies are rethinking their organizational structure, roles and responsibilities.  How they compensate, engage and develop their workforce, along with the type of agile talent they hire and how they hire talent in a virtual world.  That’s real, tangible opportunity for Korn Ferry.”

FY’21 Second Quarter Performance

• Korn Ferry reports fee revenue of $435.4 million in Q2 FY’21, a decrease of 12% (decrease of 12% on a constant currency basis) from Q2 FY’20.  On a quarter sequential basis, Q2 FY’21 fee revenue increased 27% from Q1 FY’21.
• Net income attributable to Korn Ferry was $27.8 million in Q2 FY’21. 
• Operating income was $48.2 million in Q2 FY’21 with an operating margin of 11.1%.  Adjusted EBITDA was $66.2 million with an Adjusted EBITDA margin of 15.2%. 
• Q2 FY’21 diluted earnings per share and adjusted diluted earnings per share was $0.51 and $0.54, respectively.