Korn Ferry · NYSE:KFY
Korn Ferry — Q4 FY2021 Earnings Presentation
23 slides from Korn Ferry's earnings presentation, Jun 22, 2021
Slide 1: FY’21 Q4 Earnings Call
FY’21 Q4 Earnings Call June 22, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement FORWARD-LOOKING STATEMENTS Statements in this presentation that relate to our outlook, projections, goals, strategy, future plans and expectations, and other statements of future results, events or conditions are based on Korn Ferry’s current expectations. You are cautioned not
Slide 3: Advancing our Strategy to Become the Preeminent Global Organizational Consultancy
Advancing our Strategy to Become the Preeminent Global Organizational Consultancy Diversifying offerings into fully Advancing Korn Ferry as a premier integrated, scalable and sustainable career destination: client engagements: Attracting and retaining top talent through continued Intentional shift t
Slide 4: FY’21 Q4 Financial Results Sharply Improved Both Sequentially & YoY With Record Highs In Revenue & Earnings
FY’21 Q4 Financial Results Sharply Improved Both Sequentially & YoY With Record Highs In Revenue & Earnings $555M 20.3% +$115M +26% YoY +450 bps YoY Adj. EBITDA Margin % Fee Revenue (Non-GAAP) $113M $1.21 +$43M +62% YoY +$0.61 +102% YoY Adj. EBITDA Adj. Diluted EPS (Non-GAAP) (Non-GAAP) See detailed
Slide 5: Business Continues to be Highly Diversified Across Lines of Business, Geography and Industry
Business Continues to be Highly Diversified Across Lines of Business, Geography and Industry For the fourth quarter of FY’21 Fee Revenue by Business Line Fee Revenue by Geography Fee Revenue by Industry 3% 7% 13% 22% 16% 16% 36% 18% 52% 14% 20% 29% 26% 28% Executive Search Digital NAM APAC Consumer
Slide 6: Diversified Mix of Revenue & Operating Efficiencies Are Driving Significantly Improved & More Balanced Earnings ($M)
Diversified Mix of Revenue & Operating Efficiencies Are Driving Significantly Improved & More Balanced Earnings ($M) FY’20 QTR. 4 FY’21 QTR. 3 FY’21 QTR. 4 $441 $88(4) $475 $116(4) $555 $135(4) 100% 100% 100% $69 $76 90% $81 90% $17 90% $27 $28 80% 80% 80% $82 $13 $95 $120 70% 70% 70% $30 $20 60% $1
Slide 7: Quarterly New Business - Improving YoY Growth Trend
Quarterly New Business* - Improving YoY Growth Trend (Excluding RPO) FY’21 QTR. 1 to FY’21 QTR. 4 48% (1%) (7%) (20%) QTR. 1 FY'21 QTR. 2 FY'21 QTR. 3 FY'21 QTR. 4 FY'21 * Confirmations plus upticks and additional placements 7
Slide 8: Quarterly New Business - YoY Growth By Line of Business
Quarterly New Business* - YoY Growth By Line of Business (Excluding RPO) FY’21 QTR. 1 to FY’21 QTR. 4 KF Total* Executive Search* 48% 45% (1%) (1%) (7%) (16%) (20%) (35%) QTR. 1 FY'21 QTR. 2 FY'21 QTR. 3 FY'21 QTR. 4 FY'21 QTR. 1 FY'21 QTR. 2 FY'21 QTR. 3 FY'21 QTR. 4 FY'21 Digital and Consulting Pr
Slide 9: Consulting
Consulting 9 28% of Fee Revenue and 20% of Adjusted EBITDA in FY’21 QTR. 4 Adj. EBITDA ($M) & Adj. EBITDA(2) Consultant + Execution Fee Revenue Fee Revenue ($M) Margin (%) (Non-GAAP) Staff Productivity 27% YoY 372K 428K $367 20.2% $359 Hours Worked $154 17.7% 415K Av g. Bill Rate $136 $27.5 $27.2 $2
Slide 10: Digital
Digital 14% of Fee Revenue and 21% of Adjusted EBITDA in FY’21 QTR. 4 Adj. EBITDA ($M) & Adj. EBITDA(1) Subscription & License Fee Fee Revenue ($M) Fee Revenue Margin (%) (Non-GAAP) Revenue(5) ($M) 35.8% 34.7% 16% YoY $69 $76 $81 24.5% $27.1 $27.9 $21 $23 $24 (+6% Sequentially) New Business - $108
Slide 11: Executive Search
Executive Search 36% of Fee Revenue and 37% of Adjusted EBITDA in FY’21 QTR. 4 Adj. EBITDA ($M) & Adj. EBITDA(8) Global Fee Fee Revenue ($M) Margin (%) (Non-GAAP) Consultant Productivity Revenue $201 28.3% 24.8% 24.8% $1.54 $5 $24 $1.30 20% YoY $168 $20 $6 $168 $22 $4 $41 $47.5 $3.8 $2.2 $41.7 $49.8
Slide 12: RPO & Professional Search
RPO & Professional Search 22% of Fee Revenue and 22% of Adjusted EBITDA in FY’21 QTR. 4 Fee Revenue New Business ($M) Fee Revenue ($M) Adj. EBITDA ($M) & Adj. EBITDA(2) Margin (%) (Non-GAAP) $161 $120 46% YoY 24.9% $138 20.6% $30.0 $46 $95 (+26% Sequentially) $42 $29 $82 RPO New Business - $92M 15
Slide 13: Cash & Marketable Securities
Cash & Marketable Securities Strong Liquidity with $642M of Investable Cash(6) Investable Cash(6) Cash & Marketable Securities ($M) $110M $1,097 21% YoY $863 $897 $455 Repurchased $331 $363 973K shares ($30M) FY’21 Total Year $642 $532 $534 Dividend Payments $23M FY’21 Total Year FY'20 Q4 FY'21 Q3 F
Slide 14: Footnotes
Footnotes (1) Earnings Before Interest, Taxes, Depreciation & Amortization Adjusted to Exclude Acquisition/Integration Costs and Restructuring Charges. (2) Earnings Before Interest, Taxes, Depreciation & Amortization Adjusted to Exclude Restructuring Charges. (3) Diluted Earnings per Share Adjusted
Slide 15: Appendix
Appendix Reconciliations of Non-GAAP Financial Measures to U.S. GAAP Financial Measures Earnings Conferenc e Call June 22, 2021
Slide 16: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) ($M)
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) ($M) FY’20 Q4; FY’21 Q3; FY’21 Q4 YoY Sequential FY'20 FY'21 FY'21 Incr. / (Decr.) Incr. / (Decr.) Qtr. 4 Qtr. 3 Qtr. 4 $/% % $/% % Net Income Attributable to Korn / Ferry ($0.8) $51.3 $66.2 $67.0 - $14.9 29% Net Income Attributable t
Slide 17: Reconciliation of Net Income & EPS (GAAP) to Adjusted Net Income & Adjusted EPS
Reconciliation of Net Income & EPS (GAAP) to Adjusted Net Income & Adjusted EPS (Non-GAAP) ($M) FY’20 Q4; FY’21 Q3; FY’21 Q4 YoY Sequential FY'20 FY'21 FY'21 Incr. / (Decr.) Incr. / (Decr.) Qtr. 4 Qtr. 3 Qtr. 4 $ % $ % Net Income Attributable to Korn / Ferry ($0.8) $51.3 $66.2 $67.0 - $14.9 29% (1)
Slide 18: Reconciliation of Consolidated Net Income & Operating Income to Adjusted EBITDA (FY’21 Q4)
Reconciliation of Consolidated Net Income & Consolidated Operating Income (GAAP) to Adjusted EBITDA (Non-GAAP) ($M) FY’21 Q4 FY'21 Q4 Executive Search North Asia Latin Total Exec. RPO & Consulting Digital America EMEA Pacific America Search Prof. Search Corp. KF Fee Revenue $153.6 $80.5 $130.8 $41.2
Slide 19: Reconciliation of Consolidated Net Income & Operating Income to Adjusted EBITDA (FY’21 Q3)
Reconciliation of Consolidated Net Income & Consolidated Operating Income (GAAP) to Adjusted EBITDA (Non-GAAP) ($M) FY’21 Q3 FY'21 Q3 Executive Search North Asia Latin Total Exec. RPO & Consulting Digital America EMEA Pacific America Search Prof. Search Corp. KF Fee Revenue $136.3 $75.8 $106.0 $36.0
Slide 20: Reconciliation of Consolidated Net Income & Operating Income to Adjusted EBITDA (FY’20 Q4)
Reconciliation of Consolidated Net Income & Consolidated Operating Income (GAAP) to Adjusted EBITDA (Non-GAAP) ($M) FY’20 Q4 FY'20 Q4 Executive Search North Asia Latin Total Exec. RPO & Consulting Digital America EMEA Pacific America Search Prof. Search Corp. KF Fee Revenue $121.0 $69.3 $102.2 $39.7
Slide 21: Reconciliation of Cash & Marketable Securities to Investable Cash ($M)
Reconciliation of Cash & Marketable Securities to Investable Cash ($M) FY’20 Q4; FY’21 Q3; FY’21 Q4 YoY Sequential FY'20 FY'21 FY'21 Incr. / (Decr.) Incr. / (Decr.) Qtr. 4 Qtr. 3 Qtr. 4 $ % $ % Cash $689.2 $694.1 $850.8 $161.5 23% $156.7 23% Marketable Securities 174.1 203.0 246.4 72.3 42% 43.4 21%
Slide 22: Fee Revenue Growth by Segment and Region – Actual Reported vs. Constant Currency
Fee Revenue Growth by Segment and Region – Actual Reported vs. Constant Currency FY'21 Q4 vs. FY'20 Q4 Reported Const. Curr. $M % Grth. % Grth. Executive Search North America $130.8 28.0% 27.1% Europe 41.3 4.0% (3.8%) Asia / Pacific 23.6 19.6% 11.9% Latin America 5.1 (18.8%) (15.3%) Total Exec. Sear
Slide 23: Thank You
Thank You «7 KORN FERRY