Korn Ferry · NYSE:KFY

Korn Ferry — Q3 FY2025 Earnings Presentation

25 slides from Korn Ferry's earnings presentation, Mar 11, 2025

  1. Slide 1: FY'25 Q3 Earnings Call Presentation

    FY’25 Q3 Earnings Call Presentation MARCH 11, 2025 | © 2025 Korn Ferry

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement FORWARD-LOOKING STATEMENTS Statements in this presentation that relate to goals, strategies, future plans and expectations are based on Korn Ferry’s current expectations. You are cautioned not to place undue reliance on such statements. Actual results in future periods may diff

  3. Slide 3: Advancing our Strategy to Become the Preeminent Global Organizational Consultancy

    Advancing our Strategy to Become the Preeminent Global Organizational Consultancy, Powering Organizational Performance Through Talent Diversifying offerings into fully integrated, Advancing Korn Ferry as the #1 career scalable and sustainable client engagements: destination of choice: Attracting and

  4. Slide 4: A Compelling Investment Opportunity, at a Critical Moment, in a Critical Sector

    A Compelling Investment Opportunity, at a Critical Moment, in a Critical Sector STRONG, DURABLE RELEVANT SOLUTIONS ALIGNED POISED FOR FOUNDATION WITH MACRO TRENDS SUSTAINABLE GROWTH  Recognized industry leader with ~ 9,200  Rapid emergence of remote work and  Focus on durable, scalable Fee Revenu

  5. Slide 5: Q3 Fee Revenue Up 2% CC YoY with Strong Adj. EBITDA and Adj. Diluted EPS

    Q3 Fee Revenue was Up 2% CC YoY with Strong Adj. EBITDA and Adj. Diluted EPS Which Grew 13% and 11% Respectively YoY Executive Search and RPO Inflected to Growth YoY and Professional Search and Interim were Essentially Flat YoY Driven in Part by the Acquisition of Trilogy  Total Company New Busines

  6. Slide 6: Business Continues to be Highly Diversified

    Business Continues to be Highly Diversified For the third quarter of FY’25 Fee Revenue by Solution Fee Revenue by Geography Fee Revenue by Industry 4% 6% 12% 19% 12% 15% 31% 19% 13% 54% 18% 30% 13% 24% 30% Executive Search Digital NAM APAC Consumer Industrial Consulting RPO EMEA LATM Financial Servi

  7. Slide 7: Diversified Mix of Revenue & Earnings ($M)

    Diversified Mix of Revenue & Earnings ($M) (3) Consolidated Adj. EBITDA Up YoY FY’24 QTR. 3 FY’25 QTR. 2 FY’25 QTR. 3 $669 $132(3) $674 $150(3) $669 $147(3) 100% 100% 100% $90 $93 $91 90% $27 90% $29 90% $28 80% 80% 80% $131 $121 $130 70% $24 70% $27 70% $27 60% $81 60% $88 60% $85 $9 $13 $13 50% 50

  8. Slide 8: Quarterly New Business Growth Trend

    Quarterly New Business* Growth Trend (7) +13% YoY CC Including RPO and +1% YoY CC Excluding RPO RPO Q3 New Business was $210M, with 64% Coming From New Logos 1% 0% (1%) (1%) (2%) (3%) QTR. 1 FY'25 QTR. 2 FY'25 QTR. 3 FY'25 Constant Currency Actual F/X Rates * Confirmations plus Upticks and Additiona

  9. Slide 9: Quarterly New Business - YoY Growth By Solution

    Quarterly New Business* - YoY Growth By Solution (7) Constant Currency Actual F/X Rates Consulting Digital 10% 11% 2% 7% 5% 0% (2%) (3%) (3%) (8%) (4%) (10%) QTR. 1 FY'25 QTR. 2 FY'25 QTR. 3 FY'25 QTR. 1 FY'25 QTR. 2 FY'25 QTR. 3 FY'25 Executive Search* Professional Search & Interim* 6% 5% 4% 0% 0%

  10. Slide 10: Consulting

    Consulting 24% of Fee Revenue and 19% of Adj. EBITDA in FY’25 QTR. 3 (1) Q3 Fee Revenue Adj. EBITDA ($M) & Adj. EBITDA(1) Consultant + Execution (3%) YoY CC Fee Revenue ($M) Margin (%) (Non-GAAP) Staff Productivity ((5%) YoY) Hours Worked 381K 344K 17.7% Avg. Bill Rate 16.7% 17.5% 398K $461 $167 $16

  11. Slide 11: Digital

    Digital 13% of Fee Revenue and 19% of Adj. EBITDA in FY’25 QTR. 3 (1) Q3 Fee Revenue Adj. EBITDA ($M) & Adj. EBITDA(1) Subscription & License Fee +3% YoY CC Fee Revenue ($M) Margin (%) (Non-GAAP) Revenue(4)($M) (+1% YoY) 30.3% 31.4% 31.3% Total Subscription & License New $90 $93 $91 $35 $35 Business

  12. Slide 12: Executive Search

    Executive Search 31% of Fee Revenue and 35% of Adj. EBITDA(1) in FY’25 QTR. 3 Q3 Global Fee Revenue Adj. EBITDA ($M) & Adj. EBITDA(1) +4% YoY CC Fee Revenue ($M) Margin (%) (Non-GAAP) Consultant Productivity 24.9% 25.0% (+3% YoY) 21.8% $1.48 $1.47 $206 $205 $51.4 $51.2 $1.39 $199 $1.7 Global New Bus

  13. Slide 13: Professional Search & Interim

    Professional Search & Interim 19% of Fee Revenue and 18% of Adj. EBITDA(1) in FY’25 QTR. 3 Q3 Fee Revenue Adj. EBITDA ($M) & Consultant Flat YoY CC Adj. EBITDA(1) Margin (%) Productivity Interim Fee Revenue ($M) (Non-GAAP) (Professional Search) Productivity ((1%) YoY) 22.5% 21.0% $131 $130 18.2% $0.

  14. Slide 14: Recruitment Process Outsourcing

    Recruitment Process Outsourcing 13% of Fee Revenue and 9% of Adj. EBITDA(1) in FY’25 QTR. 3 Q3 Fee Revenue +6% YoY CC Fee Revenue Adj. EBITDA ($M) & Adj. EBITDA(1) Margin (%) New Business(7) ($M) Under Contract(6) ($M) Fee Revenue ($M) (Non-GAAP) (+4% YoY) $210 $752 15.0% $696 14.7% RPO New Business

  15. Slide 15: Maintaining a Balanced Approach to Capital Allocation

    Maintaining a Balanced Approach to Capital Allocation Deployed $236M of Cash YTD FY’25 Investing $44M in M&A, $40M in *CAPEX, $19M in Debt Service and Returned $133M to Shareholders in Combined Dividends and Share Repurchases Cash & Marketable Securities ($M) FY’25 YTD Capital Allocation ($M) Strong

  16. Slide 16: Footnotes

    Footnotes (1) Earnings Before Interest, Taxes, Depreciation & Amortization Adjusted to Exclude Restructuring Charges, Acquisition / Integration Costs, Impairment of Fixed Assets and the Impairment of Right-of-Use Assets, when applicable. (2) Adj. Diluted Earnings per Share Adjusted to Exclude Restru

  17. Slide 17: Appendix: Reconciliations of Non-GAAP Financial Measures

    APPENDIX Reconciliations of Non-GAAP Financial Measures to U.S. GAAP Financial Measures Earnings Conference Call March 11, 2025 17 | © 2025 Korn Ferry

  18. Slide 18: Reconciliation of Consolidated Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)

    Reconciliation of Consolidated Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) ($M) FY’24 Q3; FY’25 Q2; FY’25 Q3 YoY Sequential FY'24 FY'25 FY'25 Incr. / (Decr.) Incr. / (Decr.) Qtr. 3 Qtr. 2 Qtr. 3 $/% % $/% % Net Income Attributable to Korn Ferry $59.1 $60.8 $58.4 ($0.7) (1%) ($2.4) (4%) Net Incom

  19. Slide 19: Reconciliation of Net Income & Diluted EPS to Adjusted Net Income & Adjusted Diluted EPS

    Reconciliation of Consolidated Net Income & Diluted EPS (GAAP) to Adjusted Net Income & Adjusted Diluted EPS (Non-GAAP) ($M) FY’24 Q3; FY’25 Q2; FY’25 Q3 YoY Sequential FY'24 FY'25 FY'25 Incr. / (Decr.) Incr. / (Decr.) Qtr. 3 Qtr. 2 Qtr. 3 $ % $ % Net Income Attributable to Korn Ferry $59.1 $60.8 $5

  20. Slide 20: Reconciliation to Adjusted EBITDA FY'24 Q3

    Reconciliation of Consolidated Net Income & Consolidated Operating Income (GAAP) to Adjusted EBITDA (Non-GAAP) ($M) FY’24 Q3 FY'24 Q3 Executive Search North Asia Latin Total Exec. Prof. Sch. Consulting Digital America EMEA Pacific America Search RPO & Interim Corp. KF Fee Revenue $166.9 $90.3 $121.4

  21. Slide 21: Reconciliation to Adjusted EBITDA FY'25 Q2

    Reconciliation of Consolidated Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) ($M) FY’25 Q2 FY'25 Q2 Executive Search North Asia Latin Total Exec. Prof. Sch. Consulting Digital America EMEA Pacific America Search RPO & Interim Corp. KF Fee Revenue $166.8 $92.9 $129.9 $46.8 $21.5 $7.9 $206.0 $87.6 $

  22. Slide 22: Reconciliation to Adjusted EBITDA FY'25 Q3

    Reconciliation of Consolidated Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) ($M) FY’25 Q3 FY'25 Q3 Executive Search North Asia Latin Total Exec. Prof. Sch. Consulting Digital America EMEA Pacific America Search RPO & Interim Corp. KF Fee Revenue $158.7 $90.8 $128.3 $47.8 $21.7 $6.8 $204.6 $84.7 $

  23. Slide 23: Reconciliation of Cash & Marketable Securities to Investable Cash

    Reconciliation of Cash & Marketable Securities to Investable Cash ($M) FY’24 Q3; FY’25 Q2; FY’25 Q3 YoY Sequential FY'24 FY'25 FY'25 Incr. / (Decr.) Incr. / (Decr.) Qtr. 3 Qtr. 2 Qtr. 3 $ % $ % Cash $736.8 $694.9 $779.3 $42.5 6% $84.4 12% Marketable Securities 250.1 272.6 281.7 31.6 13% 9.1 3% Cash

  24. Slide 24: Fee Revenue Growth by Segment and Region – Reported vs. Constant Currency

    Fee Revenue Growth by Segment and Region – Actual Reported vs. Constant Currency ($M) FY'25 Q3 vs. FY'24 Q3 Reported Const. Curr. $M % Grth. % Grth. Executive Search North America $128.3 6% 6% Europe 47.8 (2%) (1%) Asia / Pacific 21.7 2% 4% Latin America 6.8 (9%) 5% Total Exec. Search $204.6 3% 4% C

  25. Slide 25: Thank You

    THANK YOU Korn Ferry is a global organizational consulting firm. We work with our clients to design optimal organizational structures, roles, and responsibilities. We help them hire the right people and advise them on how to reward and motivate their workforce while developing professionals as they

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