Korn Ferry Reports 5% Decrease in Q4 Fee Revenue

Korn Ferry, a global organizational consulting firm, has announced its fourth quarter and full-year fiscal year 2024 results. The company reported fee revenue of $690.8 million for the fourth quarter, reflecting a 5% year-over-year decrease in both actual and constant currency. For the full year, fee revenue amounted to $2,762.7 million, also showing a 3% year-over-year decrease in both actual and constant currency.

The full year fiscal year 2024 marquee and regional account fee revenue generated slightly more than 37% of the consolidated fee revenue and grew 3% year-over-year at actual and 2% at constant currency.

Net income attributable to Korn Ferry for the fourth quarter and full year of fiscal year 2024 was reported at $65.2 million and $169.2 million, respectively. Diluted and adjusted diluted earnings per share were $1.24 and $1.26 in Q4 FY'24, and $3.23 and $4.28 for the full year, respectively.

Operating income for the fourth quarter was $83.5 million with an operating margin of 12.1%, while full-year operating income was $212.9 million with an operating margin of 7.7%.

Additionally, the company reported fourth consecutive quarter of improved adjusted EBITDA margin, with fourth quarter adjusted EBITDA at $112.3 million and an adjusted EBITDA margin of 16.3%. Full year adjusted EBITDA was $408.2 million with an adjusted EBITDA margin of 14.8%.

Consulting and digital both posted full year record high fee revenue at $695.0 million and $366.7 million, respectively. Subscription and license full year fee revenue increased 9% to $131 million. Consulting's full year average hourly bill rate increased 11% to $420, with an average bill rate of $437 in the fourth quarter.

The company also repurchased 365,000 shares of stock during the quarter for $22.9 million, bringing full year repurchases to 930,000 shares for $52.5 million.

Today the company's shares have moved 8.2% to a price of $68.64. For more information, read the company's full 8-K submission here.

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