Korn Ferry (KFY) 5 Sep 192020 Q1 Earnings call transcript

Company Profile

Participants

Gary Burnison	CEO
Bob Rozek	CFO, EVP & Chief Corporate Officer
Gregg Kvochak	SVP, IR
Kevin McVeigh	Credit Suisse
George Tong	Goldman Sachs
Tobey Sommer	SunTrust
Mark Marcon	Baird
Marc Riddick	Sidoti

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Korn Ferry First Quarter Fiscal Year 2020 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 call is being recorded for replay purposes.

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

call your the Mr. turn I over host, to Before cautionary first investors. Gary me a statement Burnison, let read to

Certain statements constitute made Litigation those the relating in of Reform the call future meaning plans today, Act performance, of and Private goals the forward-looking XXXX. within to statements Securities such as

differ forward-looking future such are risks from the to cautioned a materially Although such place believes periods statements. on or based undue of control. are expectations the are company on Actual and beyond not in results reasonable may in reliance expected because currently reflected statements assumptions, which those company's uncertainties, investors the desired of number

reports concerning relating company with filed in Additional risks company's can uncertainties the the SEC, such including to be report XXXX. and release presentation year the for fiscal found periodic by information this annual the and the in

may the constant and amounts of EBITDA comments some Also non-GAAP today as such financial currency EBITDA. measures adjusted reference

comparable the www.kornferry.com. these concerning earnings to information Additional of at financial this section presentation in Investor of call, website in which release Relations direct measures, measure company's the and related the both reconciliations to is contained posted the are most GAAP including financial

Burnison. With Please the to call Mr. Burnison. that, I'll over go turn Mr. ahead,

Gary Burnison

RPO $XXX clearly constant good Search X% and currency, driven good We had of which the at quarter growth and our quarter. thanks XXst X% afternoon, was a Greg, Thanks, grew that's our XX% Search business. about for growth is And million. and which Okay. for Fee Professional double-digit and currency, very that growth with We by RPO Professional and constant offering everybody, consecutive joining was revenue at us. came actual. in

again growth in revenue saw geographies, constant We currency. all

capital were about date X very bought EBITDA allocate up $XX America XX%, we South share remained shares about was America and X%, to repurchases. using up million and continued back was $XX to strong. almost X%. to and We Earnings was million, North EMEA million. Asia up

only and driving Our durability the all this clients' our organizations, that's people and an efficiency whether potential, organizational enabling they I demonstrate integration, business quarter, leaders, teams, for on results to and their think really our M&A is the potential. firm delivering financial model, what of company our and exceed organizations Korn but as helps about that's individuals their Ferry not importantly, exceed indeed or

I in In journey, November all five-decade in haven't for to here XXth, our XX going a ever than certainly out here -- today for of a I've think positioned and I'm journey, probably mark that of before. couple XXth and it's I'm months been out of and we XX, here but probably about been business, strategy year five-decade or years, our XX confident this good where are more

platform our vast rich insights, of for part that a will opportunities durable a see provides in provide business which I streams. more regular, IP, our digital revenue

We entire today business advisory what the a is that twice of have ago. firm an was decade size the

to represent about our accounts. got headroom XX% in the this quarter, we portfolio. marquee in regional first And I XXX about marquees think The clients. we've of expanded and the regional

to building is for that a gymnasium in coaching I professionals, also very who think a benefiting started, we're are business the entails asking Advance, time, professionals career world's people sessions. could to their exercise we've fitness. offering look very, XX,XXX I to to-date we do it KF And short just to this with XX,XXX and from career at which career full-fledged about we've but opportunities advice of offering like a gone basically kind

on data XX professionals, entities, data Inside companies benchmark and years XX,XXX people, most ago, into Mr. has I over almost XX And and X this organizational mean, arguably so million Baseball. million with that and single billion that started world's data people on transformed we've organizational Korn the points Lester great firm assessments got and clearly databases. rewards Rolodex on Richard XX,XXX taken comprehensive Ferry that's been many

And in month, so now organization’s develop and superior of long job that boutique working to all that firm somebody to a with talent synchronize shifted today our the clients. individuals Every we global minutes. three over every XXX,XXX business for past it's and we've what solutions firm line performance with about. of dramatically strategy a an puts drive That's

enables So outcomes. people than more to the simply optimize exceed helping organizational their potential. and organizations, talent their to than be growth development, Korn more more or compensation acquisition, advisory, than, driving put, and is Korn strategy of than to more leadership them workforce instrumental organizations Today's business Ferry Ferry meaningful

to go-forward our revenue scale, of Two, enterprise them XX%, really disciplined M&A, example like to our a house of clients gotten go-to-market a destination approach XX% strategy to pillars. is comprise finally, create Four, we've which creating of And for monetizing subscription-based stream to An and with repurchases, products see an dividends. IP. be five was continuing Three, portfolio. We'd going be our more now. Ferry the developing So capital, portfolio Korn insights that XX%, approach our career offering colleagues. our and called innovating accounts. formerly would business, our including digital share a a business. One, Advance from

and with Kvochak. So Rozek our Gregg CFO, Bob here I'm joined

to Bob, you. I'll it over So turn

Bob Rozek

clients. Gary's for as in comments Great, had and demonstrate the we echo to would The strong quarter. driving on do model I have our this results durability relevance the our that of business Gary, and afternoon, strong remain thanks, well continue as the business in we financial good solutions everybody. our outcomes results meaningful

quarter as Exec measured our first and revenue currency. constant Search at and up and is XX%; actual our in currency. X% Pro indicated Gary $XXX year-over-year again, which all business Each measured Advisory at Fee almost over up RPO first dollars, just-completed in grew X%, of up grew Search million, the nearly up X%, X% segments constant in to quarter.

which up million 'XX, about or million, approximately compared EBITDA $XX X.X%. at to EBITDA quarter fiscal first Our the earnings adjusted $X remained was in strong of with

improved of profitability EBITDA reaching also last the an to margin adjusted XX.X% margin compared EBITDA XX.X%. with first year in Our quarter

was trends. at new new business year-over-year, Globally currency. business business to advisory Now, new essentially up while constant in search turning X% was flat

For geographies the in in quarter weakness advisory, new partially year-over-year was internationally. certain was up offset XX% by America, North first business in but

for outsourcing of and $XX Search RPO longer-term awards and Pro new Search Demand business Pro total services in million strong quarter remained with consisting first of of assignments $XX million recruitment contracts. new million, the of $XX

$XX the logos new Now million, making up of $XX $XX extensions renewals with and difference. approximately are or million the clients million the of new approximately

and turmoil. geopolitical strong about note, marketable the UK, indicator were the outsourcing and last and first the that's up the particular total of securities first markets quarter, of RPO end we million economic cash $XXX $XX which by challenged of a compared secular strong in is in year. to Also million, first At wins for of the quarter the recruitment demand had in quarter, even

Excluding quarter and million at approximately amounts for balance the and was $XXX the also investable of reserved that's up million, deferred for comp year-over-year. first our $XX end accrued bonuses, cash about

$XXX at quarter We of had about million. debt the of the end first outstanding

million And $XX spending did The our as Board indicated, stay allocation. X shares, of Gary balanced $X.XX. a just repurchased capital to about we of dividend Gary declared with shy approach mentioned, million. we path on As

That's the or rate year, in for first have repurchases. primarily compared share versus currently $X.XX the earnings our fiscal first in first per year's we was the share quarter. last to And $X.XX. quarter is And our And $XXX number rate rate This finally, on in quarter same effective decrease down the tax the first about authorization year. million last fully-diluted last a X% year the And higher was by driven year, in XX.X% quarter. this was XX.X%. remaining

in detail. to the operating review segments turn Gregg more I'll to now call over

Gregg Kvochak

at currency Bob. region Thanks, up our quarter first currency, America Executive constant was the actual which but was fee was at the specialty measured flat, year-over-year and quarter up Asia-Pacific practice growth flat, Search 'XX practice was financial at Search Global Executive Okay. up compared services By practice and X%. was Europe by North rates, X% fiscal Latin X%, at was led By X%, of at industrial $XXX.X X%. was was in our in million, first revenue up X%. constant America

essentially goods the Annualized and of sequentially. year-over-year fee was flat The search quarter consultant revenue four dedicated down Our production executive worldwide to search total of up modestly. new in was consumer year-over-year. in end and the up were of number at the worldwide flat life the first XX was technology the XXX, which per million X,XXX, practices opened and healthcare, first first consultants number sciences, quarter was assignments quarter $X.XX

'XX fiscal quarter margin EBITDA XX.X% Search quarter 'XX. year-over-year. $X.X up fiscal was Search The the in first of the first quarter Executive in million, in the million to X.X% compared over or EBITDA first $XX.X Executive for consolidated for XX.X% of was

million, turning X% grew first at Advisory. Advisory quarter, which year-over-year the $XXX.X global measured to constant Now In currency. revenue fee was

Growth North Pacific spread regions up across all and approximately approximately was X%, all Asia Europe currency. up up X%, at America measured approximately constant with X%,

new business global Advisory by X% international currency, In year-over-year. measured EBITDA $XX.X quarter awards were first first flat was in margin, the at double-digit in weaker the with new year-over-year America As Advisory offset previously North business growth markets. being approximately with million for mentioned, both for XX.X% constant up in quarter,

up revenue, Professional 'XX. pace in XX%. first a All generated Search first In XX%, North continued measured high Europe record-high of million grew RPO which year-over-year, up fee growth constant Asia and was double-digit Professional Finally, Pacific XX%, America in over quarter and of up Search for currency, geographic XX%. quarter up at and with RPO a fiscal regions first the $XX.X quarter, the and at the up XX%

consisting EBITDA for up first to quarter, contracts to nearly XX% $XX As recruitment Professional global with and million RPO XX.X%. $XX and Professional another grew previously mentioned, million of million Earnings million, and to in of longer-term year-over-year in of grow revenue awarded Search Search $XX first outsourcing shorter $X.X EBITDA Professional or year-over-year, continued million Search new and was margin $XX.X assignments. business, quarter. improved the profitability and RPO of the

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

Bob Rozek

Professional Across service all up Thanks, lines, and growth RPO Okay. August and new combined, constant was July global Search. business in at led currency, by Gregg. X%

Executive sequentially new Search August of expect new For a hit down and repeat, X% the to July in quarter-peak we trends business and awards to were year-over-year. in historic If in new October. Executive monthly grow about September business business combined month Search,

our business measured the by is new For second and July typically flat August Advisory in strong seasonally at was year-over-year quarter Advisory, constant currency. led digital insights. combined Globally, new in business

Search, constant and up X%. approximately measured For business combined new was August in year-over-year currency at July Professional

For the continue and growth in business opportunities remain RPO, new second pipeline both of potential business and expect under to quarter. the strong contract we

conditions, financial rates $XXX remain revenue and to consolidated economic in worldwide from Now million fee range to we considering assuming markets foreign per to second diluted these expect expect our 'XX and factors quarter and the from steady, $X.XX. $X.XX to earnings our we consolidated exchange fiscal of range million, share $XXX

to have. may That would concludes we any remarks, our be you answer prepared and questions glad

Operator

first the Our question with ahead, Kevin Suisse. open. your Credit Instructions] from line [Operator comes go Please of line McVeigh is

Kevin McVeigh

gating Great, anywhere is Hey, QX the seasonally of just of uptick. just or of from all. EPS lower QX, I thank typically $XX anything kind Bob, of of higher, little kind quarters. million the And an is like, on guide, stronger at uptick, is? relative thanks of that's Hey imply million that? you looks the there where revenue the factors back, to you so would guess Number looking tax and what's it sense in I have kind I range the rate end the and flat, guess, one. typically of else to much. looked -- one the $XX Any the QX what's a then impacting bit

Bob Rozek

Yeah.

across say the going where have different recession end have what's when would factors that's that the in in Brexit, I geographies, China, wars trade gating who up, Germany. knows to with you look you you So, technical happening a

factors bit QX of on that a some weighing little our the guide. are those are So,

to expect experiencing the or geographies would where were in We that. countries see the softness you

EPS is no than really it's previously. The the guidance, we rate what In rate. about tax terms really of the tax not had different talked

it's think going generally. to XX% I to in be XX% that range

very approach to capital is our execute be We business. to priority in deeply first strategy, balanced business. to which continue our and into the we're back continuing we believe on our just to invest on But allocation, bullish

we in base regional we expand introduced account And so, as are our accounts, as point. areas expand earners, program those marquee fee at we're where this of investing the to back

those are mature they X% Gary if our program, constant revenue back Kevin, accounts look a of And more of step our indicated you in QX at about it's currency. marquee in grew and XX% accounts, where

investments. the we're rest to growth making rate where company and that's continues that our of the So outpace

Kevin McVeigh

It Got looked guess that looked just bit those that that like that lines was from was just a I it. quarter-to-quarter, it there? And the or? head up along -- XXX Advisory was picked thing count, -- it was I is XXX, to Anything are regions the weaker, -- went maybe certain that just, to only if it -- little down anything right. like

Bob Rozek

headcount, Advisory up The Do number -- I Gregg, have actually you have there? quarter-to-quarter, you think do went Kevin. the

Gregg Kvochak

Yeah.

quarter, to, X,XXX. So, that it in counting in we our And But Kevin. consultants I'm it the slides quarter and quarter, was not posted execution website, staff in prior referring we sequential the sure what -- you're and was X,XXX. the so on now

So it's up. actually

Bob Rozek

look through work, drives at we've from what And in hand the calling the have have what to but out we've Search revenue We’ve done you Executive -- that to what lines, earners of really business space. and Yeah, not just the or more Kevin, it's a the execute fee staff sell consultants who the essentially on the the shifted really taken we away up, individuals the work. is advisory just Kevin. call is

we've number, So gone what we're of now. if a will, you terms to different communicating defined in

Kevin McVeigh

The was And it from I'm and slide to I sorry, -- went like I I looked it consultants staff. of number wrong professional XX, it. had the XXX was Got at looking maybe -- where number XXX.

Bob Rozek

take we Yeah. We don't why offline? Kevin, that -- can

Kevin McVeigh

that. Sorry I up picked Maybe wrong. it about

Okay, thank guys. you

Operator

with our from Tong question Sachs. the Please Goldman go comes And of George line ahead. next

George Tong

you you afternoon. to have initiatives on business growth bit good thanks, re-accelerate Can low-single-digit towards discuss Advisory term XX% the to of XX%? longer The to Hi, target moderated a growth currency growth the that your constant basis.

Gary Burnison

at you business that long we of business, point. when sit a have over today would look look that you you When XX% was built several we the which million. last million that outside factors. ago, which investment think great at that one, was the the it I $X is Group, in Hay particularly and business States, was Well, that would there Number made United not at substantial $XXX

thing Where you've scale is we first are today is do got the to business. to the of the US increase

the with see consulting in something that's on working commented that Bob So new impressive. saw and very business will we're that very, very, we hard, very digit, in on America double you North

one. be would that So

is, clients you of two scale professional to services for you firm, Number have with services have colleagues. multiple to any you're of house have accounts, have loyal hundreds delivering big, where

So that two. would be

around The lift IP digitize third is revenue. create and we've our to more that continue scalable to got IP, in that and

avenues the down. primary we’re going those really So, three are M&A excluding that

George Tong

you're driven much that executing helpful. internally currency, Can being by an we segment gears that new constant and product is Very market dissect RPO initiatives and at XX% If business, grew look un-penetrated very switch the strong. sales how this you versus growth of upon?

Gary Burnison

think IT, on say and made And the after is going the skills. billion. both. And that to business I'm pretty about Search least the can billion, there. purposeful the excited to market technical Bob to interesting do RPO go I'm about I'll is Professional maybe that thing what going decision -- side say $XX we do Search we we're let at we Professional numbers. $XX

interesting has in coupled that not results back that's firm our we've been killer. the think just of very the with staffing, it's very, we into That's recruiting, there. get combination -- RPO in not just we But the And staffing. good technology have, business, an IP to I that had

know put you if So any... want Bob, don't to I

Bob Rozek

Yeah.

Gary's I George, think it's both. I So right. think

their that IP emphasis think they individuals the all at Search, on and continue we by the differentiate the listen, center I Pro to about the our offering their paying is sales talk investments IP the -- indicated, Gary of professional side, paying leveraging on company IT, sort you those off. product he use continue into And heard are offering. that they As on RPO have service to RPO -- of

generate And descriptions, line but questions, with with can with looks generate can that organizations. lot like job them people We then in can a role responsibilities. we interview what can -- up other we provide resumes resumes, of folks good provide

And offer. the our in so offering others beyond what marketplace much goes service

Gary Burnison

this And if that it sell, interesting XX%. cross deeper the word cross the was at new terms don't you the the of other use single business, In but to is would consulting look say thing last so in I that's clients, say I'll sell. about the offerings sell so to like into our the I cross just quarter, multi-line

revenue of came search. the not words, new primarily but consulting all, XX% in from primarily business other So --

If it business, was RPO the at you XX%. look

business, If was you you was Professional only the Search look business lines X%. it look then when it at of search, at into the XX%. other And

But one actually not there just I is clearly is So think a opportunity reality. that that there. firm strategy story, -- it's it's

numbers say, opportunity. working, You'd look is at well, and have you those something and more

Bob Rozek

point I and George, the wins again. at interesting found we that both understand Last thing it's started and as would in played we to very August looking out, RPO had then in good Germany. add, China were we I the results new August for and and in quarter Bob business July the it is

you period to the at RPO you headwinds some expect but with about. which be there and talking those the look to we've been of we there, whole marketplaces, kind some So that actually again, strength, countercyclical saw runs

George Tong

Got it. Very helpful, thank you.

Operator

comes Please of the go ahead. from Tobey line next SunTrust. with our question Sommer And

Tobey Sommer

you talked quarter capital if Thank equates I in winter, I appetite you call, feeling? up acquisitions, about the correctly, the winter, you Gary, if acting on constant your are how and currency was you. X% don't deployment share to wondering in but and recall I know, on repurchase, for could focused last comment in

Gary Burnison

our active repurchasing be I in going we're to think stock. very

value out, of platform today substantially business is more I above comps plain our X. I the Just that's the durable. multiple profit that comes with and think a that from their we think look it you amount have trading, enterprise about product the think at I and -- I of see When

that. So as multiples at I not comps, -- look look that at the that I that at look is on cyclical, on I business, business consulting

Then I aggressive be stock. and run business and go going to more we're to the in back buying multiples RPO

we acquisitions, not three that of yeah, the or to four terms had and last decided the close we very we In This four very, to go forward. active. three or very we're months, were

to do is have the I that, continue. we investing yes. Clearly of orientation to into it's there going So and -- are to I'm don't going we're in believe going not malaise I if fall. know going But fall. it's say that's economic to winter,

Tobey Sommer

recent you. about are XX% base to update us of drive I the in account thank levers your have had growth mix? I the going, future years, but of Okay, marquee know what on guess plans, I efforts some kind and how elaborate you -- on in pull? Could could you hoping the talk some above you was strategies to I you've those

Gary Burnison

a it's think -- I couple Yeah, of things. it's

got picking of you've right the of you right make then you're to process, need have kind right kind people. the of to got You've to the to governance, sure have the got accounts, you've have kind right and

sole -- several XXX we it's where now we over three two, invested So or into close. four to of have their don't accounts. them, but have now I responsibility account think And is we've heavily leaders quarters

And effort there. made we've so a purposeful

skill. will and of So it's I think kind

we've think side, that The leadership we There RPO to there to market deliver job do grow training to offering marquee those about working, development, that it a I for to big have platforms can do anywhere. big, On sold the we've can to area of no got scale. doubt -- is be we capability and creating accounts. learn is better the down the and a individuals got

development Now that's leadership you dollars actually may want to outsourcing, big a call scaled engagement. that but and

very used to and technology things but obviously leadership that Advance the the development. of can one the platform small, about which is today be this based we're So actually KF deliver business, using very, that's broad interesting

some gives have kind to I but tactical practical of I it's you So you it of think a the element things believe yeah, think of that's, -- very in.

Tobey Sommer

slower international you Great. cited, Can of but mentioned question reasons spots clients. think in fine from growth, some what a for it and as Bob business about Last kind me. overall couple for new you're has of basis, talk US, in on hearing than sour of in revenue been Because the then the an August. you being I

So what are conversations like? are you What hearing? those

Gary Burnison

absolute economic say, in would XXX market, is moves the the crazy -- And market a is to I one environment, once somebody's an and points comment It's we word, confused. malaise move there confusion. preposterous. it's

XX undo over can't that EU the you relationship with and So years. done Britain the we've

in months. you be it's don't in can it been You three done that. And to not -- hasn't undo look years, three going done

the when make can argument You get around the solved. those same issues, trade

would say, Productivity confused. they're people mortgages, have okay, lower, that'll they'll is very strong. money. United more very, is help be States, So I in consumer, The to ultimately seems it that going able the to be are spend rates

I no haven't like that. no is -- things So there -- real is talk downsizing around or seen there

Over taken take longer? months, have decisions several definitely to the have clients sign things. make longer They and Yes. last

And word be the so confused answer. would one

Tobey Sommer

If the your different revenue I How headcount in could growth planning businesses? Okay, you on you. handling generating own one more are internal sneak in. thank

Gary Burnison

And it, we're much revenue enterprise-wide. on Yeah, then producers after side we're going more the of leverage cautious.

Tobey Sommer

you. Thank

Operator

line comes with Marcon question from the Baird. Mark Please ahead. go next Your of

Mark Marcon

here have and Good obviously early could August quarter out, how my talk in talked afternoon. it the trends you progressed. July already, when shook about saw asked pace seems the I little bit just July wondering of like but and August, news a been we about changed A September, -- flow of lot the questions and just was as and you the

and and see in flow relationship that July and -- more tweets, in the that just linear granular of of terms fashion, sort Did how -- of and you a business any confusion, lumped August news together?

Gary Burnison

or not I the tend business, read into month. -- anything was The No. year-over-year at to means. one what of in was Look, that lower. things in really comparable terms I look just I and better. comparable two slightly August new three year-over-year July to months try gather cannot obviously

So, -- July nothing no changed that between conclusion of kind to or a the you tone, conversations, August would that materially different and like direction. point the

Bob Rozek

is I with Gary. Mark, agree would Bob. this

down. July think just do month I we and we at result August, haven't differently -- they're up, changes, And It's haven't decided was as points. look internally. data anything was one month of one we to those a

Mark Marcon

Great. just how the unified working Gary, you And then Korn brands of things basis with at would Is initiatives control, of the the the some and the now, all to business can the in completely describe Ferry and regards just you that that brand? terms everybody brand it as integration together Advisory firm? local the and changing -- positioning under business of

Gary Burnison

we on way I gone way that. half Yeah, think, past have

out, in that think of terms months firm XX strategy XX we it was ago, that rolled one I about that months ago.

into account look better RPO, you while marquee portfolio, growth the be something from than is consulting, working, to think, seems Professional would the Search, your at is suggest cross it Search working. I the and data sells that

changed brand people that and the because lot people. coaching did think the XX brand what don't has of for the too, company months today a they we I the what years several ago, last do recognize of over for we recognize image X,XXX the

that did we're now with branding whole about And the that initiative that PGA so is the that the I tour, Korn all the is sponsoring believe Ferry we I tour purpose development. -- around the actually, of

potential a do you Ferry potential. well given opportunity. capabilities your exceed And what sometimes well, imagery all Korn where of about that's by about. Well brand your you is ahead the exceed well, is. It's And our are fundamentally today how

persona marketing on make quite that side, behind. of And marketing to, are truly we it's actually we think the firm to continue that today. the think the I where So image have the sure still reflects I in

Mark Marcon

seems like handing on a out lot Card. of assets progress multiple Tour you've made It including

talk to you're that? that bit monetize a So terms you of in just had little going Can be about Advance KF fun. to how

Gary Burnison

was, and be nomad. in the -- college career got you so you're out thesis to start going we've Well, a

we of company really going You're going for the and took to lot job taking eye, was like is of you. different your and work of a care it. companies first we where felt care of Versus our take to nobody kind

So able need thought grow. to be and to exercise is people

they job So need they be career and advice, they placement. need need assessed, to advice, coaching, maybe development, need need they they

we've can BXC actually think And make kind community. a into inroads think so of we we that -- we

said -- when that, there is routes. that we're so after Having really One BXBXC. two two there or going is is go-to-market

So to thousands to associations that businesses services. career have our and we're offering going members of

So that's one go-to-market.

direct The is to consumer. second

I Right where RPO million now $XX think big offering market, Tobey, there's but scale, less I thing platform that use mean market. although than not like one for we annually sure, it can it's the is revenue, a was only it's I'm business look I -- that interesting think in actually the think our I that's and XXX% leadership development because that's

and where a leadership also training have engagement. While really you is market training, the could scaled big big development

could quarter long I outsourcing. of going But this we're to but by series that do again -- over That'll it be isn't ways looking a -- at platform a we're have you development we're and leadership a think to look, next be the now So away way vision. as quarters, any from happen that, stretch. that -- would

Mark Marcon

of the terms in then what of just you business? the little in China of markets in What's decline And the where obviously -- vision. scale bit a you're business, challenging. are Advisory business of seeing it's seeing headlines or with what the Advisory just to the more terms Germany Good the whether some up regards ended and the just on

Bob Rozek

Mark, it's Bob.

just percentage to QX QX down It's seeing overall this kind like UK big UK, lot countries we've focus of I'll was yeah, of talked Advisory growth. year again low actually single-digit -- the in business RPO a low, about. points. last Advisory the On we're year. the looking that Germany, of at by the up, in couple but driven a that's is QX

France area down us of XX%. being negative, in year-over-year was for was terms a like large

down single China Looking digits. was low at China, year-over-year

we but like erosion we're So feeling those the it's significant markets, are we're in feeling seeing not of the headwinds. -- any

Mark Marcon

on Executive with practices. the And just Okay. regards to then Search

opposite You curious were were and the everybody in the is -- the obviously mentioned industrial of What financial some -- up. services the scale what's of impacts. there the about terms macro the headwinds and side of

Gary Burnison

in seen we've and carry-on America. impact to some supply for North industrial on effect in the chains the Well, China time

So been seven on months. now six for that's or going

than and So was you and in investment look and look when guess, good. estate. you was real was When banking but private significantly, obviously, banking financial more that, you offset equity that would industry down by the at as services commercial

Technology not was flat, quarter, going don't and very when has enterprise-wide It's been that. a last a I so. it's really at Consumer don't sciences that -- I life few been down underlying not sustainable. mixed healthcare look bag it. or be But probably percentage points. good. I'm -- to think was This

Mark Marcon

just the and regards now One, on you may. to And with then you -- that? IT how Professional I more how two for that Search, can big questions is if expand quickly

Gary Burnison

$XX million. think very, billion always question. way but market. It's $XXX that's less less our sizing we we that could it's -- less think certainly be that than market in good And things, It's than -- very a -- these

that. process. pretty because But And get could to there, technology, in so No. of to can not lot make mind got headwind You six -- the a over four the some seized seized is It's we've around easy we've your that real that quarters? could got be quarter? be there a

Mark Marcon

sounds is then assessment? every Yeah. you we from Is -- to with share. said have, business I that a you're point regards fair just gaining data mean, RPO like not -- everything to And market It ramp. continuing quickly. clearly it's growing as the that the

Gary Burnison

right. I think that's

Bob Rozek

we Mark, share, Not of -- gaining renewal. quote when for we at the only count hand leader that -- the business, a when come can -- to up look we but times renewals, lost when it's on are number it's one we've of you

in being we I sticky. job, once we think very So a do very, good get of

Mark Marcon

do then What's like when meeting? And It lastly, buyback. that. going and the is you're Excellent. the clearly sounds now board to next authorization

Gary Burnison

$XXX We've couple was left. million authorization [ph]. of a got Last hundred

date. in I we first $XX think almost spent then million quarter, the to

left. hundred couple million a got we So of

Mark Marcon

the count shrink material share in actually Gary, way? would a the intent be to

Gary Burnison

Yes.

Mark Marcon

things Because grants offset it's in by the past option that of and kind been nature? of

Gary Burnison

got, company this absolutely. what is yes, I think and we will today where we've

at again, looking also we're Now acquisition.

this continue balanced orientation towards So a September have of repurchases we've mindset at more to Xth, is going today, look acquisitions. have but share September Xth, got we're and to an here, to

Mark Marcon

sense. thank Great, you. Makes

Operator

next comes Marc go question from Please of the Sidoti. line Our Riddick with ahead.

Marc Riddick

good Hi, a of little being on I sort bit. afternoon. wanted to that continue

you're potential parameters potential looked wondering acquisitions Just just seeing and a context what scope sense of sort there? Group as give you're you scale and of since of that in as wanted the things you've and far that at, to of acquisition thoughts around level the Hay out some it's I been of targets? some the years to maybe few Certainly size as comfortable with or a get can comfort

Gary Burnison

would by looked think things I I grown line X%. kind And of talk at by top looked would grow it's always top at that about that. we've have we've things say dangerous that also to would our that XX%. our line

to So in And we've culturally, sense needs of you just our of fit wide years. want has something it, strategy. overall to to and as the to had screen make But context it do pretty in said, it you do don't X.X it terms needs a size.

Marc Riddick

lot I were because answered. That makes just sense. great. And other to then my Okay, want then, follow, of questions a

regionals, guess a touch expansion receptivity of of, and XXX accounts regional marquee it to bit a the into the the wanted was Thank on part its How just mix any we I I particular that initial of the the that you. of they thoughts should then accounts we particular little sense if thinking there the on thinking how and sort way. wanted in be weighted to Also region. if maybe be was about were going? those, that So and heavily about get any should

Gary Burnison

I would on first of the we're the say, accounts. out even not regional inning

we that it screen as college improve it by and you So, I got that it us to Ferry that right, took Korn we the really can get regional region today. and those, it a account, mean, then not The endeavor to of top-down did four-year put the we really obviously of the a on this geographic thee, two, we really have kind think marquee reflective I right, is bottom-up at I a took but look degree. four we on on did it, and think it, dispersion years us to continue accounts. of way kind

in So China XX% some sure. early in like, of or And the and those Europe. so in of days because We that XX% overweight did it's companies the find the of to are but going Asia. and States Asia you're United for then we purposefully overweighted size just

proactive, of approach firm, on real of think at be professional and where hundreds But services world-class accounts I you if anchor strategy have can the scaled you loyal have clients impact deliver working that people would a having you go-to-market on those real clients. where that around any look repeatable impact can an

Marc Riddick

great. how bit feel at you particular that one And missing branding on approach I are for as are mention when this, things branding any you -- and want would any with there a as me. the the Okay, so marketing but to global Thanks. wondering, touch did of see that like along the the the -- I and currently was far that efforts the still that you you far then of last to you there are tour. effort was look pieces that sense go-to-marketing And that little you you're remainder I wondering, have? on in don't or including global the

Gary Burnison

different digital a a you a marketing market, way One cadence and the that strategy. insights things. of is our that know is You business couple there has different

going and a got that so we're You we've digital, SEO, have lot there. have whole a of to be path to you down do way more

of people capabilities I secondly, have completely what think that think most us outstrip for. we today

think of doesn't data, assessments, the So and organizational and data have that. and numbers doing data we're about that rewards know of when you market those kind $XX kind what in million the having we benchmark at general look you XX,XXX XX counting million

continue piece clearly big is Korn a So the Ferry that Tour message I purposefully. think have And to top-down we to of that.

fourth The going a former events requires also begets good work bit it's BXC in digital more insights work. business market our good to strategy, or But ultimately the BXBXC that look business. little or different business, is like KF a products our the

deliver quality than that business, rate top the be to we and insights rate high the we business there do what to digital work the top work. has it be RPO that's of succession so nothing doing has and better from nothing, to to quality And CEO is no,

Marc Riddick

Okay, thank much. you great, very

Operator

We the ahead. Credit have McVeigh a Please from Suisse. go line of with Kevin follow-up

Kevin McVeigh

Gary. Hey thanks. Great,

kind Just re-accelerate of of Germanys kind kind to any starting the US any -- and of you to Frances of help to you of expect type thoughts China. the shift and Are out away world, would demand could the Are are capacity areas of China it given starting plan where of there into feels like China. some starting of early signs to any see companies incremental be other lot a from obviously to that? you see

again planning the are any that business, just, kind you it then with of from how or And along, perspective? re-acceleration that about kind US of helps stabilize thinking moving a

Gary Burnison

to who And I has win. that's don't very know think it's I to months. XX to Self-interest that interest, the going current be XX China. hard is call. national And or or going versus stance president

And it's or a than to -- for been now a there I'm really have place decoupling like for while. lot months, done, chain the just union easier been for it's is after some that's to in XX going And people for be six years. supply going a So trying XX said to nine that malaise sure. it's thinking unwind

but to difficult. very all talk want, You becomes actually do, can it trying then very, you

is more become I US banks drives news -- as hopefully probably that said, the good So accommodative be that consumer central economy. will we've for this good think the

sudden right don't that's cliff a seeing in are sociopolitical hour necessarily we not XX-mile a in seeing realistic tailwind. now. an I it's nor a So just think environment we're

Kevin McVeigh

that but not much in size lines those And the deals, just would to they on it more little or thoughts core again, bit and thinking so any perspective be then success relates of from given a Or you expect to business? would would maybe similar the something strategic diversify the along RPO, business Hay? a around helpful. as you're what the how the That's

Gary Burnison

management certainly is add whether for term. question to it that a longer call question Well, probably company. that I strategic a consulting that's is more term, But I not a shorter in the you executable more around capabilities. that general think think capabilities I a the question is could it's there would kind that But question. be of want

spend. is share leadership a I think the training and term, -- the in shorter development there development is market -- is the big of

assessment could probably that today, much. think very you really that succession. you do there We be I bolster in something don't good in a need would if think thing. have so to And I what

tremendous IP figuring make more out it gamify, how got we've to think just it's I us to and a way interesting.

interesting think terms in leadership get interesting. development then current is could organizational of into strategy, capabilities, I tends general So to our which be consulting and

Kevin McVeigh

Thank you.

Operator

line the Please And ahead. we have a Tobey from follow-up Sommer SunTrust. go with of

Tobey Sommer

or they company? didn't -- the Thanks. can consummated And Gary, line? transacted from finish transactions multiples I in you're not few Any opportunities kind you anything Are change like there have terms understand that of factors you from market? or the still commented and that pursuing that a reasons. they out unifying that the for the of in across kept going be about those away transact various having that

Gary Burnison

never was it is, for One sale.

market. in So it's still the

much the valuation away this today. unifying is -- transacted a where company. I would from it's it in was one culture, that, Another price, -- always say case, And our always but it's price. given culture. look very particularly And factor is We

Tobey Sommer

Thank color. you for the very much

Operator

It appears questions, further Mr. there no are Burnison.

Gary Burnison

different. firm, Angeles, actually are in Well, the it's XX Korn and XX. Ferry like look, Okay. quite going And the on in Los Lester Richard said, years California, respects, I that started but same many be to November company

bye do. We're support. we're And So for we what we'll our bye. you, in can thank about you strategy you confident See and your time. talk excited we next to

Operator

week will today PM X:XX conference call ending at gentlemen, XX, the for day, this running Ladies starting one Time, September and available for at be Eastern midnight. replay to

International Playback You participants Executive Service by may entering the X-XXX-XXX-XXXX. access XXXX-XXX-XXXX code the dial and access dialing AT&T may XXXXXX.

AT&T Executive Additionally, does using conference playback your for our Investor the replay be Teleconference company's www.kornferry.com you will conclude for participation, at and the Service. in website section. for the Thank today. for available That Relations

You now may disconnect.

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.