Korn Ferry (KFY) 6 Sep 182019 Q1 Earnings call transcript

Company Profile

Participants

Gary Burnison	CEO
Bob Rozek	EVP and CFO
Gregg Kvochak	SVP, IR
George Tong	Goldman Sachs
Tim McHugh	William Blair & Company
Kevin McVeigh	Credit Suisse
Marc Riddick	Sidoti & Company
Tobey Sommer	SunTrust Robinson Humphrey
Mark Marcon	Robert W. Baird

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Korn/Ferry First Quarter Fiscal Year 2019 Conference Call. At this time, all participants are in a listen-only mode.

Following the prepared remarks, we will conduct a question-and-answer session.

As a reminder, this conference is being recorded for replay purposes.

reviewing available at Investor the kornferry.com, that will made our section financial also we site today. Web a be have in Relations the of presentation We you with copy of

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found the XXXX. reports reference fee Additional currency can company's measures uncertainties of information amounts, release financial be including year SEC, for the the annual comments EBITDA today periodic the adjusted adjusted and the EBITDA. some non-GAAP such such in the report to revenue, the risks concerning filed as with the and fiscal in Also, constant relating company by may and presentation

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Gary Burnison

was of pleased We line joining and reported Amy, thanks EBITDA was across strong. very Thanks growth for It the quarter. I'm XX%. balanced firm. thanks very with the top Okay, us. about everybody.

so proud the really, one America I'm it was good very that XX%, XX%, of. was quarter really EMEA up Asia XX%, up a rung bell, and North

thing we and convinced is made a would the we've months a the I'm go last has be that. we brand, which for and it IP and earnings -- opportunity shareholders, logos more XX-month solutions. talked we're for and we've one acquired in firm. for really our about than call, to this with opportunity, right the creating built and do for Korn/Ferry, it legacy sunset years, now many than it's to much incredible exercise. taking that to And decision ever about over branding platform colleagues, endeavor, But in that us; brand, it's more developed a we're powerful three really about we As It's our we've be said to unifying one our

the Clients our see than work. is XX% more multi-solution guess what our these represents can basis at to the lower clients, clients, they're also base. these impact on essentially, And workforce. with the a know shareholders serve times same that five bigger with should that multiple it opportunity And you greater our skills so stickier of that comes career develop the is our They thing more greater greater And new of for -- firm's for will have numbers, revenue also now other client the have And greater meaningful the opportunities, four world. create line can XX% and we and integrated stickiness, base. mono have they an purpose, cost client colleagues clients. what, much which it's clients. sales. have that of look we with well, creating they of in creating but on revenue, only with using solutions, penetration and that it's I about mean, greater if deeper and And impact They just you company.

on achieve here. We've offerings, structure, worked help to is the design roles, this of they companies convinced to the help reward to and their gamut run develop we I'm them to So life, Today hire people. and we mean, evolution them organizations to clients. motivate and talent for the what right responsibilities; their outperform. put, I we're people superior them our we their trying with simply strategy to how our next their what need performance synchronize bring to in strategy drive advise

starts And come look And orientation. solutions, an think industry strategy, is that, show the we've three same we've numbers take strategy. I of So and got you for clearly so go-to-market also, our which And obviously unifying equally important, the if big this rewards of time, a org ahead. one-brand really brand, global at organization kind leadership at a toward really the and long with but more benefits. this example, opportunity of development, solution focusing solutions, way,

large, dollar of So XX% company. only And fragmented those markets. are expanding, our mean multi I that's billion today, markets.

something That talked IP. has client. So something our I create sticky mean value. within shareholder that today, need It's our that only And real productized XX% And it's about more and think also the too, scalable, Trojan roots a a that quite impact. and productize -- horse bit of speaks line. is I top revenue opportunity colleagues. are our it's is to of for certainly I've a to shareholders greater can the that our for

we're to the doing what when convinced engaged, also now. demonstrated happy in balanced of to they're promoted we investments outperform. than year, people to because to platform. continue a for am only for be talent like, talent, roles, it area IP-based consultants a And to this in, they're colleagues going if Korn/Ferry, bring but finally, so company, top an they're unification not do, and then that only -- In we're this not past, into going guess that's I continue And much in last are in we to much, one this to is people new motivated really motivated. know broad-based around integrated growth. what, our quarter, own we're exercise, we've the has they're but brand to make good So have to that's thousand invest thing opportunity and kind another going bring more a branding you that

So here and joined by Kvochak. I'm Rozek Gregg Bob

And it so, to turn Bob, I'll you. over

Bob Rozek

lot, our afternoon good our Thanks really growth And reaching respectively. first first XX% the Results quarter growth. in this to operating reaching continue RPO, demonstrate solutions, and and growth with unified Growth and grew highlights. Professional and everyone. the of various drive our by talent our Gary, few broad-based consecutive very approximately the going strong, million. our for year-over-year to XX%, double-digit our revenue and revenue also million, fee again, fourth so I'm quarter segments And Great. of branding power was across Search, almost brand. Advisory Executive In go-to-market Search, our to grew of be approach. Korn/Ferry start a quarter, a to was year-over-year, which from of rate and and synergies global $XXX was X%. Once with benefiting for that's $XXX continued XX% revenue our strongest growth our a businesses, each acquisition ability

importantly, million, year-over-year, XX in quarter improved over over margin Adjusted growth million More improvement EBITDA XX.X%. is while to in exceeded $XX.X XX% which revenue. growth in earnings and $XX.X first an basis points was the adjusted first quarter, our in EBITDA the

for business, Asia-Pac. first was Search acceleration We was quarter. million. and in new the to to XX% Executive over North business really saw year-over-year. Search. It continue up new Europe, the strength new $XXX see all in turning Now Executive Globally, business regions, we continued our It's real across approximately in board America,

has year-over-year. earnings share turn of On the re-branding head their about intangible strong. in And call $X.XX share in achieved $X.XX quarter $XX incremental long year. quarter, the net was minus that's first our new GAAP term million benefit $XX in This For includes XX% PRO Adjusted finally that Asia-Pac. And million XX% $XX tax larger-than-expected the of RPO will $X.XX about first of quarter our I segments the was associated strong year-over-year. At a of business this first related primarily detail. was well diluted marketable outstanding first acquisition the X% and Search per $XXX million more the adjusted fiscal quarter. at in end And diluted rate to $XXX driven first last earnings and up our total up share end benefited to quarter quarter approximately income basis, loss growth for approximately million. business first as write in Professional the ongoing It strength up $X.XX Search, quarter, first as that our adjusted Gregg totaling was of equity awards, and rate for balance that's of nearly our the bonuses quarter securities Advisory, quarter per from quarter fiscal earnings with in they We a debt at of almost 'XX, amortization Professional per million. fully tax another and awards. new associated approximately of business the new both initiative, million. a reached cash the saw drove first lower-than-normal was quarter off to of $XXX of the Europe share, compared $XX to now retention our awards were low by 'XX. vested one-time first about cash tax million, previously and $XX quarter. of of the And per with $X.XX. over or end granted the review investable and were was for the performance-based compared million which about to That's $XXX million, finally, and the adjusted the Firm to which up operating

Gregg Kvochak

new was grew and $X.XX quarter and sciences was up million, quarter XX%. up quarter over XX%, to the strong geographic At XX%, million, total at of Executive quarter at Search XXX, approximately grew the XX.X% for Latin X were Thanks, the for with $XX.X at technology Global million, ago 'XX up quarter Search quarter grew EBITDA was a number opened XX%, XX%, specialty, was exchange worldwide high, the in of actual XX%, growth Fee was constant of revenue Asia-Pacific the industrial and first in search million first of remained Executive a quarter measured Growth posting first rates, Executive the growth consumer regions was in dedicated number end was for broad-based. consultant X,XXX, worldwide and assignments Executive up of currency. our up fee year goods XX.X% to XX% $XX.X was currency, exchange the in was as per financial each practice year-over-year was our practice quarter sequentially. each practice consultants with strong Adjusted segment or year-over-year new revenue the actual production gains. of for By was and million rates, and Search global $XX.X or fiscal which all-time first up quarter Segment EBITDA Okay. the industry compared constant in America up and Bob. first America XX%, North first year-over-year. first XX.X% Annualized practices XX $XXX.X the up Search to recent broad-based and The Consistent Executive trends, Search healthcare our XX%. the margin The fiscal was XX.X% up our services reached up measured Search first our compared Compared life fee our Executive first at remained Europe also year-over-year. revenue consolidated adjusted X% in 'XX. in

driven in measured Now strength X.X% and turning by were in Fee Global quarter, regions, double and both digits, primarily at and grew constant million, reached America the revenue by year-over-year which X%. to up Asia-Pacific approximately currency. Advisory; which by was North Advisory Growth X.X% was which up first Europe $XXX.X

Segment business XX.X%, quarter of XX improvement EBITDA in million new of first an As an or was Advisory EBITDA basis nearly approximately the Growth first the with quarter, global adjusted $X.X previously were first XX% up and revenue for exceeded year-over-year. growth. the in profitability fee X% $XX.X was million, mentioned, which In awards measured adjusted year-over-year, in Advisory points earnings year-over-year. quarter up margin for the

RPO growth rates, the double-digit grow generated Finally, in RPO first and at constant which globally, in was propped Professional another first quarter Search quarter, were All and The Search XX.X% first million Professional quarter. of turning also $XX.X new EBITDA double-digit quarter of Search segment segment segment the assignments, where with regions quarter, to shorter-term and mentioned, actual fee $XX first which RPO XX.X%, the at million as the Professional previously assignments. business for long-term an in XX.X% the of million a Search continue year-over-year improved RPO the EBITDA revenue and up in to was and and of Earnings Professional $XX RPO Search, geographic consisting and currency. first margin of Professional And the awarded in $XX.X million, of of at $XX million year-over-year. continued. pace both

the discuss the I'll over quarter Now, turn to second back to call our 'XX. for outlook Bob fiscal

Bob Rozek

Great, thanks, Gregg.

Executive sequentially new XX% business new year-over-year. in fiscal been strong, and we approximately up entering and business awards reaching strong quarter second activity with of quarter years existing new new patterns to monthly has September, a was prior October. consistent peak and grow in July expect If business remain in Search first 'XX Executive business month business awards very New were globally the August the for quarter June Search

is the typically potential expect new new second if Advisory and growth Search Professional of strong segment, in business quarter year-over-year, new both the second For months Advisory, prior and opportunities remain sequentially. drive the we XX% new the two our with revenue. a was of regard August consistent With for are and each contract continued under for business to And to years improve the and strong. over monthly fiscal awards patterns pipeline in RPO both quarter. expect business quarter. quarter business we And it X% will up next business

to at rates the assuming Now, the assuming of remain considering foreign range for quarter and approximately consolidated rate to effective revenue XX% factors glad fully U.S. GAAP conditions, an XX% related end be ongoing $X.XX prior finally, in bonuses per the range range diluted prepared. the and in of be tax $X.XX. economic million concludes measured these 'XX earnings amortization for lean answer we per to earnings financial questions that higher of second any fiscal fee second of have. to $X.X our and from quarter, the steady, a $X.XX. consolidated our by share worldwide exchange adjusted to expect to estimate the that to $X.XX considering will acquisition, may to then we range would likely And fiscal $XXX And $XXX million. million our we you quarter share from retention quarterly We And expect markets, 'XX

Operator

Sachs. is ahead. [Operator Tong Instructions] with our from And question you. Thank George go first Goldman Please

George Tong

afternoon. Good thanks. Hi,

for marquee of the accounts. recently You've implemented large accounts marquee quarter how discuss revenues the you accounts? your relative your layer in your your program account next account Can quickly beneath to management in management program grew

Gary Burnison

Well, we're very days. early

analysis So look portfolio. closely around relationships, significant base, opportunity the The you Then the again, about teams client that against segmenting question to there's over at there's that. deeper not And materially reality look the the past that no drive point have the to deeper starting when pipeline is it which client-centric penetration. months. put you and clinical being we change discouraged. is I'm But revenue as didn't at four our as is

marquee was program. now XX% to And it that And hundred our the this represents path -- and account a over our we first with have the of accounts portfolio. so,

another for going we're XXX. Now

shareholders to aggressive, client really very very teams pay did not that the over in to to colleagues. four against the but it's I systematic pay for I is in expect going guarantee or and see So run results our portfolio, a segmenting off you months, three long time that putting approach and off for

George Tong

quarters, accelerating trend the very comment of double-digits. in in had holding steady whether I in just growth in terms Got Can indicated accounts revenue know growth you recently helpful. on marquee… is or that marquee were that it, that's And prior you up

Gary Burnison

double-digit. Yes, first quarter was

teams XX%-XX% There're and pockets journey that there's dedicated some very good. really I portfolio some a against portfolio several down directed very, of look at clients and when And hundred top was on. of believe strength. the weakness, pockets be firm putting again, it to that, the professional the in you that's So that overall, really we're of needs with services

George Tong

you'd selling specifically XX% traction, only highlight your bundling that solutions? And points that then lastly, multi-solution relative really data Can specific earlier comment cross revenues in sense. your on quarters with comprise clients. of to incremental you while Makes clients, and XX% quarter this of success it's indicated

Gary Burnison

Yes.

and in Advisory almost Search business than look So XX%. take at data days, from last XX%, this there about would It it material be -- the RPO give XX% so quote, search the quarter wasn't a of Executive partners; change in the points much new at, into same, was Search, or quarter. [ph], you you look Advisory if Search from coming Professional the the example, when old for higher

around, X%. way from about it's to The Advisory other Search,

So it's not that will it. But we the think it's ways, is both want although not at you going to get training, encouraging we're that that at that level necessarily actually the through -- that's way I see actually help.

to it and accounts, have that to actually put You against you create targeted for blending. quarters. That's multi disciplined how several they've teams got work

George Tong

very Got you. helpful. it, Thank

Operator

with question Tim ahead. Please William And is our McHugh & Company. Blair next from go

Tim McHugh

thanks. All right,

retention Advisory Just we Hay headcount three about equation acquisition? think side, it down talk ticked at of ask should of how couple in that quarters about underlying the as past And part there? particularly all about that? years can now I a think a little. straight you What's

Gary Burnison

concerns I around any that all. don't have at

do North think comment about that America. could in doubt that we're believe undersized that. in that There's I managing we but make you I workforce. And the globally, And Advisory. no are particularly

firm about to to thing terminology. the the yes, to and system, bring talent will is much sustainable it, in, more And continue do. use question a have concerted But that's organization for other effort to we're no so, making baseball we a have we so, which

campuses, bunch hired months -- of the in finished and year We campuses. we went first Dallas, year city. just on out youth XX of training this we've was we've a we're put out off campuses, to them now to Texas, just so And two-and-a-half

think is see them. to this going youth is going And to off that's way campuses, I So and going the them over time and company to a that's to develop we're train going you're of hire future. thousands what be of the

those to so that, to try outside, to to said we and also having going balance the Now we're have go two.

Tim McHugh

kind seeing think what's growth the I this of And -- to Hay point, ways what in accelerate you to you're guess, about necessary to the U.S. [ph] the what's match thinking at then elsewhere? there

Gary Burnison

I think teams, and When invariably it team up game. talent in we divided won that it's the was the several the probably were grade we sixth fold. with most

it's think and I few So given wow, you the people. we have pretty you then at it -- look too market say, size,

that, we've no So be invest But there's doubt game. can't a it people got in there. to just

And so behind be bigger strategy that. there a to has

you of these, the quote that part That's segment to So portfolio, that got avenue accounts, get another is accounts, marquee to accounts", at to the managed "house go put it the around teams down. way.

avenue so not and over to And is IP. time solutions level, third The so we've just that that go and that double this really would we've I'm it's can repeatable hours, I got that we to sure productize maturity have are there. you hope that scalable, have where actually not reached the

that we just Amy, global. North lose we like to. not the did on the board haven't that's put And I Now, still points know, don't I you? America, would that's

Operator

sorry. next Please with from I'm ahead. Suisse. question No, Kevin The Credit go is McVeigh

Kevin McVeigh

thanks. Great,

kind really that RPO. margins range about, XX.X% up. an within and to there, Gary, Bob think of help just good should continue at the of about do type job you You Really, we ticked what think business? us or in like just amazing growth Can

Bob Rozek

that. kind somewhere -- we're range in midpoint the in I'd now Yes, XX% the XX%. I thinking be at -- right would of the of to obviously And we

So between XX.X%. it'd somewhere for future, the XX% and be, foreseeable

Kevin McVeigh

factored $X.XX rate in really $X.XX to provided was if you $X.XX just tax I'm that Bob, so the $X.XX was when you factored of normalized is guidance the the then, And it. used into or it $X.XX clear, QX… Got to $X.XX to tax benefit to $X.XX the $X.XX tax a or

Bob Rozek

a the date we the we guidance the No, ending deal the be the awards know it equity the with that date it you the item. And that then invested. don't that the discrete for was not, Kevin. was it way is did of works you price on and the life becomes accounting Because wait going stock when till didn't to award, what that throughout invest,

So to what the to guided $X.XX compares of actual we $X.XX to.

Kevin McVeigh

I to apples-to-apples. $X.XX sure just got the that's make want So right, to $X.XX, I've

Bob Rozek

Yes.

Kevin McVeigh

the just total the the there's then can know you us, we It EBITDA And overall, remind Super. like of how came looks some should I of XX.X. kind at seasonality, in expect seasonality adjusted margins but the margins.

to work about they year, should any a range trend? our is through the As there way think of way how we

Bob Rozek

QX, Yes, revenue back QX. I would go bit over stronger of you in think you'd is a get if for little a us. time, uplift quarter

Kevin McVeigh

Yes.

Bob Rozek

to our and But the QX bit be tends see QX all And revenue differences in clients off. you're tends off hundreds basis little a are our points to with strongest. be, are to holidays, year-end those lighter the folks tends be then to of margins. as going not

QX-QX So end the lower QX-QX. range, the I between range, at of have of and sum of end the XX XX higher

Kevin McVeigh

Super.

thank much. very you Okay,

Operator

question next Please Riddick Marc from ahead. our Sidoti. And with go is

Marc Riddick

Thank piece afternoon. you give wondering customers. sort give Was get general a the as where utilization. back penetration you place, are more you of you. as overview bit on things update took as you with if data and when you Thinking that that looking a how to this that's data of on if good the side to had wondering to coming I were an update of in acquisition Hi, along. are of you could where regard could was far

Gary Burnison

license. a sweat there's work, and lot that of we quite tears, and try Look to blood, a a investment a substantial Yes. of lot chassis to can build a

the business, today talked is our part just of only I which about product XX%. so, size And

I at we're it not the points what at want we putting okay, when but up, it's that numbers, truthfully that you say be. look would all growth to it's So the

data, truth But up we're X%. you look is the actually XX% X%; So, for put trying companies at Well, talent example, is that platform really. product with together that be the platform can to this that -- be this the plus that quarter, this should last building is a we're when shouldn't license.

our look of zero I crazy. our platform revenue, that sense IP. terms has make mean, given decisions. So and at Well, you today there just IP hiring to our any doesn't of the richness been licensing that's in the make

a concepts, that energy a take So reality data, working of instruments mining in from trying I organization SaaS passes. amount to use Then and the hard three, we're But have today. or of I -- at and the there model, then I think that it. in in I the packaging substantial whether IP, have dispute. is believe we we quarters underlying think liftoff. around all we and levels four mean the those productize terms of just license gold with institute platform, a piece whether to of how all I building levels at away again the the but working access it probably the I a that think that data, other we we have that's all new improving opportunity, data time, the is platinum they it's whole terms

Marc Riddick

where sort you the show commentary around today where sort I Just color feedback if the in are seeing you thinking how the world? and these regions. headlines thoughts getting give about -- wondering wonder as the some mention the EMEA Okay, a on update was little any and Brexit you're region little we great. Why had And you are that if could of don't of you we a there days Asia-Pacific on prepared you're of see of maybe there. you. Thank the as the a

Gary Burnison

I of different what of have met EMEA. lot a very, results. lot people; I months dedicated spent I'm probably there. a we of in the most three proud strong just clients, very with

last it look XX%. up the you this was last Korn/Ferry, If at several for quarters quarter

not I So done good really a tell getting that it's and turn view a air I to have don't deserves, really it huge. hard it's it's it job. -- have issue. my there question really it, going time there, that I the it's troubles more on it's -- own to where but out. think of I a very, because attention -- is a the Clearly Brexit me is is think, we it live it personal is very major

Marc Riddick

the Agreed, agreed. appreciate you. color. I Thank

Operator

next Please you. question go is Tobey with our from ahead. Thank And Sommer SunTrust.

Tobey Sommer

Thank you Bob, much. ask of a questions? couple To you very start-up, numbers I can

Bob Rozek

Sure.

Tobey Sommer

tax the is end change in throughout guidance, Why or rate the factors range, is higher of expected the terms this? there it kind and to your other of of year, causing some

Bob Rozek

Tobey, law now, where And and trying I is are we is boat, America so corporate tax a the new rest digest same the to of there's Yes, the in couple of alternative there're everybody law. right that that And interpretations underneath new tax and think on. frequently. quite new provisions regulations basically out so a minimum of and create realm and of rules coming

way provisions how So to we are understand rate. effective all being really are their our a going little through bit we work conservative until those

conservative to we're think going range. of going out, the this end where and which the We're by in we to shake see the November. obviously until XX% higher in so, have that to And I be towards be be guide XX% range, number to

Tobey Sommer

quarters that kind of you are of expect rate sort should specifically referring you sure guess just I growth, but was last make partially model? I license growth in said was this in four or just to question, understood hearing the respect material what With -- quarter? like in the acceleration kind I three some correct before product was to to of of addressed Okay. And we in Gary subscription that it, a to

Gary Burnison

was doubling it when asked me think I really you've this ago, look talked you what I before, like. it think two you you does I -- what opportunity, tripling business it and think -- is in saying, calls no, No, terms asked me you about when either of asked can

real we're So The -- -- four in quarter. I was from away probably couple than business. and more to more say lift quarters, three off now X% I productize we this I we're think just rate now a that can quarters growth slightly

think probably was Bob… know, -- it I don't I quarter last

Bob Rozek

X%. was It X%, around

Gary Burnison

okay. Okay,

sure. aspire So that's for to, we not what

business. So, total I product was talking about the

Tobey Sommer

does hearing those experience how hear better-than-normal, segment, norms quarter coming in we're in uptick your I'd the reflected Search your Executive the to reported and what in the is? guidance, are maybe In love to that third Okay. historic compared but

Gary Burnison

remarkably Tobey, that quarter, not versus but mean eight a over in increase slight us. the different say up probably It's nothing upticks, saw quarters, seen I move we've really million over but four the would a a for all what that's going we $X nothing needle quarter, I this to past They're or -- maybe in quarter to quarter three. dramatic.

Tobey Sommer

look are question at on One, what they is be can ROIC management we equity Gary, should then target and you actually Okay. how incentive And for changes book 'XX, another emphasize to there what two, timeframe kind you, of you in broader over are of any interrelated. margin and aware your return achieve you for compensation strategic those? and as growth? or fiscal

Gary Burnison

it's I'd to quarter, XXX this of now for XX.X%. it see like Well, grow a of see talked good to that we'd couple calls up ago go by bps.

or And that, think was so, when XX% about it said I think I I XX.X%.

rise, there. climate, Obviously, okay, is room is there good is right to there got it's be but room the the sure. we've seen news and there so -- economic that So for in

part ROIC. So was would be What other question? that answer my the of on your

Tobey Sommer

compensation management to for Any in be we mind? keep that should incentive changes

Gary Burnison

of The basically top firm does. are consistent metrics compensated the individuals how

fiscal And this so, year. no material in changes

Tobey Sommer

you months Okay. backdrop encourage wait this economic Last to pipeline M&A become hold for the of accumulate or XX valuation versus six months arms to just your does you kind describe could and question and to day? and encourage a better and more from ago, aggressive new cash you me,

Gary Burnison

it's been we at we in haven't so so we clearly, all we fit, because about IP, Well, around been it's a the the -- about -- end latter way, in day, have all. not the it's at look, and camp. That have and to the investigating mean big we've of about effort doesn't looking, data, the ways our the culture have decreased business been scale

Tobey Sommer

you. Thank

Operator

is And Baird. from our Mark with next Marcon question R.W.

Mark Marcon

old also branding, Hay strong you add of and versus you're Good talk really client results. afternoon. PDI within reactions range folks the just me you've advisory, I if terms versus feedback old new congratulations, of And the let people both gotten. and hearing, could any in recruiting new my to about what particularly and you're consulting folks that wondering that was

Gary Burnison

mean, with ask is many -- I to all like range and a crying meetings, a just of that. I many but out hundreds a and pivot series person, got so around going would colleagues, of over hundreds unified -- market. that that to is you're hesitancy you Well, I you're literally pivot at of I mean, I question look, going in many doubt, the get met a to no expect that a there weeks, days, about now approach the I've right and time to no in organization say responses,

to have that a and And name so, at handle, up the -- -- sympathy give very give it's people give hard look for bell you the may curve, have you them although when to that. a up for up to and and I

eye. people, No them you looking would certainly firsthand no in talking hear right the it decision. to you -- question the So will that, by about doubt

to this have that. Now, much a operationalize really at And that's than -- more branding that. exercise branding it's all; not it's what we

to is done. work still that So be

kid I think people Futurestep, the of brand. there Korn/Ferry has is Hay don't In Korn/Ferry clients, any used Korn/Ferry yourself, Korn/Ferry. that terms don't question Group, It was been

deal that years, countries drive last Now, still we've from overcome. we synonymous we talent in say challenge. performance, will that's in a bigger have there but world than that perspective hurdle legacy was because that's Korn/Ferry, would dominant that. bigger clearly a challenge The over of to more the and the dent few is a And strategy bigger with a to the made Korn/Ferry I client are maybe where brand parts synchronizing making with and several

Mark Marcon

you you terms And of to going order in like to in that to do differently change going what a are attack perception greater how client perspective? are that to

Gary Burnison

Well, do is be work, and you that'd that and there's the a work, time. way, nothing good, you so good develop over good like reputation old-fashioned when more

that strategy there and that got around responsibility people business depth that for the we've the in have you've development. today now X,XXX to without extent, origination, that around that halo scale and And do very social for substitute thought burry aggressive could media is So -- got you media strategy that, all we and I -- look, hits but no have a having work got and leadership statistics we've with company some and we brands. creates and

to those of So projects. scale do be big actually to you really credible big, in able are terms

a So possibility. today, that's actually

Mark Marcon

regards Great. perspective, your impressive emerging hearing should both you from and war to consultants markets about very, clients we think lines, with concerns how those recently basis trade go-forward the margin a any very Asia-Pac And what more -- around from then, was really the then what's a profile on margin or there? are And contingent? along

Gary Burnison

Yes.

of bit margin take that The there will next I little strong. part over I probably was the be Mark, APAC diminish couple expect to the a that would quarters. of So first question. of in

hiring We doing Asia. some have in been

impact to now, Then And short-term but points basis productive, basis of once points and be those a we within where so, of on-board, up, folks folks the XXX then we lose come to minus ramp of having become might having will XXX would a start we for you quarters. couple I or see are or think so. couple plus

Bob Rozek

And impacted the mean I just not impacted table rattling yesterday; activity. has has client's it not

see Now, that could we not change, would that obviously activity. impacted but will has

Gary Burnison

terms Yes, happening done sort of a in talk we that's revenue have level the folks arm and any there. the Mark change out we call, monthly what field, business in not and of in of I the activity do to out

Mark Marcon

of that on question, And in? the the types just bringing profile expand Great. a last people on can bit might then you up end you little

Gary Burnison

I'm Mark, The cutoff, you -- it? types what of sorry, was

Mark Marcon

are have the more who you people or profiles looking the what are of experienced or types work gotten of that undergrads, their you you bring about talking profile we about talking on-campus we mentioned MBAs types The at? people recruiting; would in,

Gary Burnison

Yes.

a we there I kind are couple So, four there say of probably buckets would people is of is really -- at. looking

And Now, the but want up farm classic, a I mobile of farm call system it's the services to bucket, so has couple kind don't model. an upward is or system, out, I say of would more out. professional a what

be would service undergrads at, works. principals, that fall so undergrads, kind beyond is bucket the And firm, there buckets. as professional managers, responsibility executing equal would of There people work could of managers, into looking that well classically two they that graduates, are between as the senior a is those you call in have and grads, we kind that originating another that if

So, senior we then fourth are that classical the searching And level. of for a bucket really partner. would more be view a

of those skill several we Now, in sets, are terms for -- fall buckets. into looking the actual and

we expand as for started to big in way. managers, account a account it are We need we a -- got looking know we have that; you leaders,

So account management skill is one bucket.

is architect. bucket solution Second

that other So and that's client's a people that problem; by the so design way can in a hear solution, bucket. is IP take a second places, our totally repeatable

The skills. third consulting kind specific bucket of is

rewards for so would very, example, development, and those leadership very benefits, So org specific. strategy, be

those kinds of buckets we looking the that be So would are at.

Mark Marcon

when could the you the the how point, of size today, group think A big would if you ideally Great. And be if platform, Advisory how about you… find consultant all this -- players at

Gary Burnison

It mean is of it would it, not twice this be that's I it the kind No definitely would but about be there I the mean is executable, opportunity size. question in twice market. of -- size.

Mark Marcon

the people, of would in a should perspective three a two just when to of so how type be to terms -- and by judge in recruiting think quarters that expectation, say next trying about bringing from we scaling what And those effectiveness the reasonable we over up?

Gary Burnison

right, it's you account. -- it's That's would consultant -- think that. or triple the and substantial I that a easy have balance Yes, you I a say, that could not, double have very that to math think to

to However, you balance with that different many dimensions. have

have You to got people, balance take that these to is assimilate to going can into onboarding, you account. you've that work, it with how

to and got to tank XX,XXX, into we're over. XX,XXX is take at flying to You've do The cycle it the economic plane account. not going

we of track and demonstrated we've building think what say. doing I record a

out So do clear, saw And sure it I've just a talent. and headcount managing really, too. But quarter, I'm a made that more we're was a push you that. loud. so would you've it I the big year And not to making around that we're workforce, was seen never or also say guided than we going it, really ago on that

You tell managing actually can we're workforce. that the

shareholders. prudent balance So being of we're that trying for strike to

Mark Marcon

again. Congrats Perfect.

Gary Burnison

you. Thank

Operator

Sommer we a Tobey And follow-up with have from SunTrust.

Tobey Sommer

had, Gary, just later M&A cetera, the you said valuations to fell backdrops? a or et Thanks. follow-up is that wanted function you of in question on the I [camp],

Gary Burnison

right. Well, they're kind of interrelated,

Tobey Sommer

Sure.

Gary Burnison

So -- factor it's have in backdrop the does determining valuation. to hard some The separate.

very Yes, So backdrop I think that is the that is, sunny. yes.

Tobey Sommer

strong, or referring I something guess being economic I but backdrop I to was et you're like referring Okay, -- that, by cetera. was cycle of to growth length

in that respect Okay, they're understand so I interrelated.

saying you're high? valuations So are

Gary Burnison

The valuations are high?

Tobey Sommer

Yes.

Gary Burnison

do I there a we compelling that's -- really would was this I that look okay. such on -- it thought was value would shareholder -- really and basis, propelled if we something broad it That's at that a we answer that say way, company-by-company it, would

So could way. I take not again, it into would a kind I would if that -- of And equation. would it's answer alone not multidimensional account. kill we it, And everything valuation

Tobey Sommer

very you much. Thank

Gary Burnison

Okay.

Operator

there Mr. questions, further appears Please are ahead. go It Burnison. no

Gary Burnison

this moderating Bye-bye. you to Okay. soon. you And Well, call. thank the later. for talking we're very for you look forward See we everybody Amy, time. thank to you excited. And taking And very, obviously

Operator

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