Q4 2024 Korn Ferry Earnings Call Transcript
Key Points
- Korn Ferry (KFY) reported strong earnings and profitability in the fourth quarter, with an adjusted EBITDA margin of over 16%, marking the fourth consecutive quarter of profitability improvement.
- Fee revenue for the fourth quarter was $691 million, at the upper end of guidance, demonstrating strong performance in consulting and digital segments.
- The company achieved a 16.3% adjusted EBITDA margin, up nearly 300 basis points year over year, highlighting effective cost management and improved productivity.
- Korn Ferry (KFY) returned $107 million to shareholders through dividends and share repurchases in fiscal 2024, reflecting confidence in future earnings power.
- The company saw significant growth in marquee and regional accounts, which represent 37% of total fee revenue and grew 3% year over year, despite overall business being down 3%.
- Talent acquisition solutions, including executive search and professional search, saw a year-over-year decline in fee revenue, with executive search down 6% and professional search down 10%.
- Interim solutions experienced a significant decline, with fee revenue down 18% year over year, indicating challenges in this segment.
- Despite strong overall performance, the digital segment's fee revenue was flat year over year, suggesting limited growth in this area.
- The company faces a challenging economic environment, with cyclical moderation in the talent acquisition market impacting overall business performance.
- Korn Ferry (KFY) anticipates a sequential decline in consulting and digital growth for Q1 fiscal 2025, reflecting ongoing market uncertainties.
Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry fourth quarter and fiscal year end April 30, 2024 conference call. (Operator instructions) As a reminder, this conference call is being recorded for replay purposes. We have also made available in the Investor Relations section of our website at kornferry.com. A copy of the financial presentation that we will be reviewing with you today. Before we turn the call over to your host, Mr. Gary Burnison.
Let me first read a cautionary statement to investors Certain statements made in the call today, such as those relating to future performance plans and goals constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, investors are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties which are beyond
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