Korn Ferry has recently released its 10-Q report for the third quarter of fiscal year 2024, providing detailed insights into its financial performance and operations. The global organizational consulting firm operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company offers a range of services, including organizational strategy, leadership development, and talent acquisition, catering to public and private companies, government, and non-profit organizations.
In the third quarter of fiscal year 2024, Korn Ferry reported fee revenue of $668.7 million, representing a 2% decrease compared to the same period last year. Despite the challenging macroeconomic environment characterized by inflationary pressures and global economic uncertainty, the company achieved a net income of $59.1 million, with a margin of 8.8%, marking a 710 basis points increase year-over-year. The Adjusted EBITDA for the quarter was $101.7 million, with a margin of 15.2%, reflecting a 110 basis points increase compared to the previous year.
The Consulting segment exhibited resilience, with fee revenue growing by 3% year-over-year. Similarly, the Digital segment reported a 6% increase in fee revenue, with a noteworthy 11% growth in Subscription & License fee revenue, amounting to approximately $33.0 million for the quarter.
In response to the challenging business environment, Korn Ferry initiated a workforce realignment plan on October 23, 2023, aimed at aligning its workforce with current business realities. This plan resulted in restructuring charges, net of $4.6 million and $68.6 million during the three and nine months ended January 31, 2023, respectively.
Korn Ferry emphasized its integrated go-to-market strategy, particularly focusing on its Marquee and Regional account program comprising approximately 350 top clients, which generated around 38% of the company's consolidated fee revenue year-to-date. The company believes that despite near-term headwinds, it is well-positioned for continued growth, capitalizing on the relevance of its core and integrated solutions.
Today the company's shares have moved 0.6% to a price of $65.44. For more information, read the company's full 10-Q submission here.
