Fee revenue at executive search and consulting provider Korn Ferry (NYSE: KFY) rose 26.0% year over year in its fiscal fourth quarter ended April 30 as recovery from the Covid-19 pandemic helped fuel growth. The increase was 22% in constant currency.
“During the fiscal fourth quarter we generated $555 million in fee revenue, an all-time record, up 26% year-over-year,” CEO Gary Burnison said.
| (US$ thousands) | Q4 2021 | Q4 2020 | % change |
| Fee revenue | $555,151 | $440,469 | 26.0% |
| Reimbursed expenses | $2,243 | $8,507 | -73.6% |
| Total revenue | $557,394 | $448,976 | 24.1% |
| Net income/loss | $66,751 | -$621 | nm |
The 2020 fourth quarter included restructuring charges of $40.5 million.
Fee revenue by segment
| (US$ thousands) | Q4 2021 | Q4 2020 | % change |
| Consulting | $153,573 | $120,992 | 26.9% |
| Digital | $80,499 | $69,269 | 16.2% |
| Total executive search | $200,728 | $167,855 | 19.6% |
| RPO and professional search | $120,351 | $82,353 | 46.1% |
Executive search fee revenue rose 19.6%, or 16% on a constant currency basis. Korn Ferry reported higher fee revenue in North America where demand for its products and services has exceeded pre-pandemic levels. The worldwide economic recovery also boosted growth in executive search revenue.
Korn Ferry noted that recruitment process outsourcing fee revenue rose 58%; the increase was 51% in constant currency. Professional search revenue rose 28%, or 23% in constant currency.
Fee revenue by geography
| (US$ thousands) | Q4 2021 | Q4 2020 | % change |
| North America | $130,790 | $102,196 | 28.0% |
| Europe, the Middle East and Africa | $41,253 | $39,662 | 4.0% |
| Asia Pacific | $23,604 | $19,737 | 19.6% |
| Latin America | $5,081 | $6,260 | -18.8% |
Full-year results
| (US$ thousands) | FY 2021 | FY 2020 | % change |
| Fee revenue | $1,810,047 | $1,932,732 | -6.3% |
| Reimbursed expenses | $9,899 | $44,598 | -77.8% |
| Total revenue | $1,819,946 | $1,977,330 | -8.0% |
| Net income | $115,562 | $107,017 | 8.0% |
Guidance
Korn Ferry forecast first-quarter fee revenue of between $535 million and $555 million, representing a year-over-year increase of between 55% and 61%.
Share price and market cap
Shares in Korn Ferry were up 4.73% to $68.20 as of 12:39 p.m. Eastern time; they were 1.67% below their 52-week high, according to FT.com. The company had a market cap of $3.52 billion.