KFY - Earnings call transcript Q2 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry's Second Quarter Fiscal Year 2022 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 Web site, 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 and from the to cautioned number materially Although such place believes periods statements. on desired based undue a beyond expectations the are company on Actual uncertainties, the not in results reasonable may in reliance or of expected reflected statements assumptions, are those control. which investors company's because risks of

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

conference site, presentation to www.kornferry.com. measure are including information comparable sir. earnings financial Additional the to at I'll the the Investor Burnison. is over in the and posted Mr. the this relating financial Web most With contained of measures, to release call, company's GAAP both in Please which directly go concerning reconciliations these of turn section ahead, Relations that,

Gary Burnison

up our and were $X.XX EBITDA Tom. Korn XX.X%. our Revenue report respectively. all-time margin EPS performance that Ferry and $X.XX Good once pleased diluted was achieved you, And morning. financial to diluted and adjusted Thank again highs. was adjusted I'm And XX%,

amid performance resiliency transition meets in agility for talent, whenever excellence a over quarters Korn as I time businesses. the our and agility aligns years. scale, level world new of be that it think our several secular cross-section, enabling and next Today, of a colleagues, operational and Ferry with speaks a well in transition enormous this wherever to at the reached as our of has our undoubtedly change. is strategy and And will recent that

and Our New top-down enduring regional and and And key scalable about potential be and to world. marquee accounts, of represent this also people more is Elements rapidly and go-to-market partnerships, replicate, XX% exceed through strategy allowing scale, our to not the to continue innovate, strategy which organizations our Year to only a in facilitates but will driving strategy this portfolio. of will in their changing include our revenues. durable growth

For the in the quarter, by revenue example, go-to-market demonstrating effectiveness our of our firm, cross-referrals strategy. driven of about within our was XX%

and Pro substantial portfolio. there we Although and Ferry's acceleration opportunity given Korn Search Search adds still Search, that quarter, the acquired our It's of move combined, ahead our Search is Executive businesses, the one of nomadic believe depth revenue, reasons Group the breadth XX% during a an of the to Lucas increasingly about represent market. both we market labor

to Ferry disciplined including development to we're capital innovate, continue push Korn subscription of have lastly, our monetization And DE&I, more digital offering. of a tomorrow's services. the from to move also and Digital coaching or completed leveraging a Looking allocation opportunities, to marrying our we're ESG, will further at M&A Advance now to in development outsourcing IP, to capabilities LDO Consulting learning and to And deploy XX,XXX our going Ferry's our scale we we capabilities, We're approach Korn strategy, and M&A. which also businesses, a platform, with going going business our balanced to sessions.

results clearly in have the help performance our this solutions And of and this clients expertise diversity the I ahead, reflect strategy, feel our the drive Looking truly to we new people, I'll We the forward and to over you. joined up Kvochak. with by Bob look Bob, And Year Rozek it that, Gregg I'm in reality. New the turn momentum ahead. keeping world. to

Robert Rozek

Great, on are you morning the thanks, world. good Gary, where and in afternoon, and depending good

with few jump I quarter second comments into before me Let results. the a start

than environments great So, has best coming business I've measure world changes are companies creating reflected ever, real without ever been of right. challenges as I through organizations always unprecedented at called and doubt where and look from work it's and issues recession, that we continues solved as changed if are transformed COVID no the to digitized, QX Ferry issue free be spot, been the no way real facing as the And are are a Today, good. even people. to have are challenged There's as of felt really And live to corporations upon the grow strive post-COVID are our our environmental, in bias, that is responsibilities, social, that's in And Korn workforces that comes for organizational the in; that inclusive and success is across environment. you involvement mean a human performance secular our and performance. business results. really and sweet fact globe. out or our it's in to have has capital These it's to for exceptional, companies clients governance more are challenging

across work to growth, and up line companies it's labor changes market, employees rewarded this retained accelerating that solutions perfectly right engaged, environment. wrestling whether social evolving a dislocated motivated, integrated in the in to with even line new and talent top the and globe are the today, keeping secular appropriately finding or core the Our and with

to stay. our first numbers, workplace, also through to the -- them believe a business is forces that inning helping play In clients, people continue the here the role their our people. in growing we're XX asset, are continue mean all and their our I my I think real, really shape most secular that long solutions precious this to in of view, and their that fame. of we're pressing I would recognize that say no solve most in minutes they our As ballgame. these are these feeling I issues changes

Now, just execution all fee new our as driving revenue, highs. been to has demand earnings has our stronger been time and strong, profitability market

Now, to to QX I'm going results. turn

our So, mentioned, an revenue from grew second quarter year-over-year or or $XXX Fee the search quarter consolidated million, reaching fee was XX% executive up and time high in revenue year-over-year, as the all sequentially, XX% $XXX our Gary $XX million. million, growth business and in and X% of digital XX% XX% was very up also year-over-year, while our XX% up digital and business and search Growth Consulting X% year-over-year, grew sequentially, professional XX% XX% year-over-year sequentially. was up while X% sequentially. RPO sequentially, for businesses consulting and was and strong.

also earnings profitability, to in Turning they and to the quarter. new highs grew

and $XX million $XXX with $XX.X sequentially an million or grew quarterly million, Our highs. XX% EBITDA margin adjusted new to are adjusted EBITDA both of year-over-year XX.X%

profitability in staff quarter from high and a which our Adjusted XX% up pandemic and scale year consultant execution dramatically. first both actually earnings to are improving also of you 'XX quarter was and our compare period diluted adjusted just Our fiscal advanced pre through fully and to earnings to our two six up interesting 'XX, $X.XX benefit profitability the in to really G&A the same when second in the higher lower up today sequentially. per earnings and share diluted $X.XX the productivity spend. the $X.XX, new ago, or It's continue per share both period fully to business compared months fiscal years

for in revenue period fee every business. QX is firm's 'XX with double-digit Our year line the of growth fiscal year-to-date up XX%

our higher. comparison same is the growth, period earnings and been has nearly over power EBITDA to than up XX%, adjusted basis greater points Our is XX%. up EBITDA XXX never three nearly adjusted margin times fee revenue our That's

at was that solid XX% also provides sequentially. also million the our New backlog business in RPO new fiscal excluding accelerated were record highs Now, as This of for of year-over-year, with and $XXX Awards quarter all reaching really a third extremely of approximately the of On lines quarter. second strong, in new a up RPO I level across quarter new awards. Business up business us total our consolidated each with the business entering business consolidated lines look business. X% a basis, very of contract record new

also XX, and marketable of totaled second securities $XXX cash million. end cash the quarter Our position the October investable At strong. remained

exclude reserved end cash the the group for at you deferred the about used quarter balance approximately $XXX of year-over-year. includes noted November that position and was cash this investable Lucas when global acquire compensation investable approximately Now that amounts our $XXX arrangements XX% X. $XX million was It accrued that's be second on up to bonuses, should million or and million

staff, Gregg investing of year-to-date, the in approach to allocation of of additional as $XX to I'll the earners more of in repurchased and segments fee execution review cash take well. Group balanced continue With have detail. Lucas million over approximately addition in hiring and the million paid and We stock dividends to our our we've $XX to to that, capital operating our turn approximately call

Gregg Kvochak

KF $XX which Thanks, up fee X% XX% year-over-year licensing Bob. up was grew million to in up was up revenue subscription million KF sequentially. XX% was quarter, of and start the KF component for quarter Global and second Digital I'm Digital. second fee to Digital which revenue $XX.X in going sequentially. the XX% with year-over-year The

adjusted subscription of Digital EBITDA with to million a new XX or XX% for KF KF a million with business for of related in $XX.X quarter year-over-year to and second Earnings grow in million second XX.X% also and profitability the licensed services. and continued Digital Additionally, the XX% global quarter margin. high grew new $XXX to EBITDA adjusted

$XXX.X second up and in improving which Adjusted record high quarter to across also sequentially. up up in second growth second strongest X% improved second in the revenue quarter, a broad-based also fee approximately the dislocations assignment RPO regionally market were year-over-year, quarter business Sequentially, revenue for professional North XX% up and turning while was EMEA approximately the million million, in the APAC. per number revenue solution search search America, and Fee labor and the sequentially. Consulting or up grew was XX% the was consulting new which approximately Growth gross take and XX% search continued to $XX million, new million and to quarter. over which RPO Both the for improve and with margin EBITDA year-over-year, search year-over-year. sequentially. EBITDA of and generated sequentially. approximately and year-over-year, continued revenue, and $XXX.X strength XX.X%. business to year-over-year professional X% XX% advantage $XX RPO to was grew post-recession to or in professional the of in broad-based XX% double-digit million, Now, million professionals. in be X% reached XX% of search. all North in revenue fee Regionally new for Consulting; continued assignments up fee year-over-year, trends both and Globally, $XX approximately or skilled areas of fee sequentially, continued $XX.X consulting quarter XX% fee America with for adjusted second average growing an XX% in was professional

wins search new search Professional of professional $XX.X the of of new contracts EBITDA work. business XX.X%. were continues million extensions scale for a reaching new RPO revenue awarded business logo RPO margin new improving was $XXX $XX sequentially, professional renewals second adjusted strong to search quarter and an for and million highs. million was Adjusted to of New with consisting in RPO and and both EBITDA million XX% with record also $XXX of all-time and extremely up

XX% new million, and Fee another and also X% Growth second were risks in the in sequentially. year-over-year led $XXX steady up America, APAC global remained regions year-over-year was and was second revenue of XX% grew revenue our XX% broad-based high essentially in sequentially. XX% for quarter Finally, XX% which North by the and quarter up all-time search respectively, year-over-year, over measured which EMEA sequentially. and fee up approximately executive and international flat

improved our team and $X.XX of The of per the Annualized number We to revenue year-over-year worldwide of sequentially. of in at second the quarter. second the record up production consultants second number search the expanding in the was XXX, a continue up dedicated XX.X%. second to worldwide XX consultants which or consultant and quarter fee invest million up open X% five total was executive quarter the end assignments in executive million the approximately second year-over-year, Adjusted grew EBITDA million In was the in $X.X in global $XX search and all-time EBITDA X% quarter, of sequentially to to new million, a adjusted sequentially. up up $XX XX% year-over-year second margin was search new and high quarter X,XXX. quarter

discuss I'm to the back Now, over turn the Bob for third going call to our to quarter. outlook

Robert Rozek

Greg. Thanks, Great.

fiscal each new a us third in entering strong grew backlog actually to As month I consecutive and the accelerated mentioned it a positions earlier, second new our And that all-time in quarter high quarter. quarter. business very with the

fact, second quarter highest and ever. first September were months new October our as we business the In ended and

quarters time and While our seasons. third seasonal holiday most off is our clients the quarter during usually both our year-end colleagues take

will However, for ever. month new actually XX% highest also second was was an November month up the business, year-over-year. eclipsing excellent And as September that

Now, with slower in expect our and if each We business strong. with of December monthly to than November in remain the of be market consistent quarter accelerating peaking and lines would trends patterns a historical seasonally our are demand high at January. conditions

profitability levels strong. investments in to G&A productivity and third fuel remain strong And the consultants Additionally, both at to to staff we will we in in future continue expect keeping execution to make quarter, remain and spend current growth. earnings employee

economic markets exchange Lucas related new major worldwide fee conditions, Now and assuming rates lockdowns from including financial in the or foreign changes and Group. no pandemic

the fee $X.XX our in a fiscal to per diluted from expect diluted consolidated third our a to $X.XX, should to while per to earnings to adjusted range And from We million $X.XX. share from 'XX $XXX quarter GAAP $X.XX $XXX a of share million. earnings our consolidated revenue range range

companies look relevance of to discussed. strong a strength continuing will I see changes New our us great I trends, of the opportunity to strength the continue business solutions build continuing performance. previously that say on to new should a ahead secular we Based Year, the portfolio evident to on it our or As our is have as we address the financial

constituencies, positioned share of for continue candidates, and at been execute clients, may we to We fair doubt level, glad answer to be a take never are With high you than is our and come. better Ferry Korn growing well little that its there we shareholders have. questions serve all any the to to would to more will of positions colleagues, market. has that, years

Operator

Sommer will from representing line Please the Instructions] come ahead. Tobey of [Operator Securities. And our question first go today Truist

Tobey Sommer

your a Thank you I the of market? was the you. anything comment bigger could think to benefits that wondering that's search and marketplace add much. terms about a it. relatively Thank Is capability, having professional in in because in out established to marketplace that there I building very the you if could if could you help, continue of fragmented brand

Gary Burnison

powerful. people RPO combination labor that easily for see for IP Korn that piece on as running we and of a billion and backdrop opportunity on for market, a is. company sizable our a very think and of professional $X work and our about and probably search or and a along market, And at see business salary very, today us. ferry incredible with brand rate benefits. It's sizable run And we of people create business and is fragmented million, opportunity. that very, PS $XXX where our It basis, Ferry. a is very year a it's and parlay market, two And We a against a the an nomadic Korn really move up-skill and

to work and Professional that in also Search, of So, going as businesses, include possibly staffing even could and in all and to high-level invest well. particular, search interim we're our continue

Robert Rozek

just as And elevates I is to well, perform seen add the to do. each that the done, our companies the our we've thing that acquiring that would the acquisitions that other simply the Search us, have our we're access we've of and ability access folks that it to in provide folks because don't

Gary Burnison

dollars for out cross-referrals about Bob. you the any paid business, are networks. $XXX on look $XXX colleagues was so million inside of and it that referred our real at that's in high. of right, those actually PS an And million off of cross-referring dollar and at business. very, of And when a excellent the point, And RPO get revenue all-time good an look cross-referrals. or quarter, Bob, the is given the you because our point, XX%-XX% from That's revenue, in typically that's represented a very when quarter, Yes, that's the basis

Tobey Sommer

business both Could needs your stay you well compensation well? -- or you're how in helps and of about talk Thank you. seeing internally top internal as as are across different bit a your competitive inflation, kind it as line your of with terms what

Gary Burnison

it's of transient different at Yes, companies' look I've anything started outlook night you of from seen. the completely then younger day perspective. and When people workforces it's the ever a workforce, making years certainly unlike the nature ago, today, I entering it's -- just when

fees, or for on they're -- last at take Professional the Service, If average our probably our quarters. four XX%-XX% you up five example, over look

then I you're XX%, raised consulting Search like pressure. around side, -- increase whether amount probably And colleagues, prices today business think We've we've Executive XX the to of had inflation higher our the board, our they're something is the over or than also I price market businesses, internally the three last what up that we've it's points. wage XX%, XX%, done. we've digital across in And given also for times that. our we've reflects months the and ever raises seeing that On mean also

that and but, our So, a approach taking as on being shareholders, deliver making we're passing our I to, not balanced rewarded importantly, colleagues. value that that only sure think the we for to that clients, also to we are

Tobey Sommer

looks if like return? on balance could Okay. so Last sheet able to the your acquisition what for me, Thanks. one boost you that comment continued pipeline and ample deploy you're

Gary Burnison

good market, professional it's asked search We you phenomenal. a is towards brand have It's question, a the fragmented Korn certainly Ferry's a as the that's that, question. market. Yes, big something eye it's opportunity,

XX a company periodically to with, Lucas we're we we we now that make ago, one that and that and to thrilled so, business. at continue I that The we have XX years is colleagues those as investment grow can Korn have look and probably in contact met ways join or stayed it's And Group have that Ferry.

our so, Group, platform the Lucas to that grow with it's Professional legacy think powerful I really combined Search of that we had the And solid foundation business. given business a

So, that's clearly one.

People [LDO] at we that The I an the companies; of at, and can again, through ago. you level megatrends really to second not want look matters world what a here, answer. to in did being. coaching, want do the do turnover. that's look this a company's you create you called solve income can another turnovers I be business much that whether want is like on to at think, opportunity RPO an there to is they way believe they partially but [Ph] the know years huge maybe with increasing on compensation, statement that's grow, hidden that impact that to human want And cost developed, to, they be reducing to stimulated, that long they go there's think that I turnover. P&L, makes And a every development, When

phenomenal just with that see we did replicate what But and space. we So, in the it do our to we opportunity IP learning with have, RPO.

So, the as other such those two areas areas looking And certainly then, such business come as our at we're businesses. digital or page. screaming consulting off also

we going a we're systematic and M&A, we're continue -- to approach had to. very to So, to going

Tobey Sommer

Thank you.

Operator

Next, line go Please to we'll the ahead, representing Tim Blair. Mulrooney sir. go William of

Tim Mulrooney

everybody. Yes, questions. good taking my Thanks for morning,

or services, of Professional also but many were Search of I what sharing Executive Professional You comment business? on benefit if currently business could with could I was in clients Search the wondering helpful don't what Search your guess Executive from percentage Search use from your Search you how percentage them. referred us, is clients Professional

Gary Burnison

have huge enormous. in amount, but me, I of a data mean, don't front it's So, I the

Tim Mulrooney

It saturated? is not

Gary Burnison

not not even even, No, close. no, even, not and

And so, there. okay, opportunities the

first marquee penetration and Well, about our accounts, regional of clients you to that the but marquee XXX And would from in portfolio how driving about that represents of that? accounts, today, there. that it lever be first the that about is have we saturated there's sustaining far go pull, and the So, we XX% now of regional and scale. through do the is loyal, answer terms

Tim Mulrooney

that Did as all attractive guys It's you well temp, staffing, that Well, helpful. the with as temp was right. right up spot something lot. Group, two companies some a include Lucas busy. that's very is professional thirds did now, all an Okay, Lucas staffing very, staffing like that temp are from

So, getting that guys you there's a in? look into involved dislocation further there, would something too. Is

Gary Burnison

not believe this through sure. Absolutely, do and but yes, only very, work is market. there that there's everything, we for well again anytime. And going digitizing coming nomadic labor to opportunity I very trend. It's anywhere, this against that think That an play pandemic, now into

of pick we're interim which of been for really, I So, of Ferry. these yes, and we areas going really areas staffing for mean, but Korn the that speak continue years, is mean Search to up I did both new a Professional these new good a base both our business, in for drive firm. opportunity to we've very business to

Tim Mulrooney

sure I interesting. But that mean how sense. yes, you're wasn't going that's makes to perfect that. Yes, I answer

I essentially, one the talk Search your throughout trended was more did I was how mean, they within for they guess search quarter, more businesses, to those in month within a me, detail or Executive business, accelerate a you here. Pro little both did fiscal month Just hoping I more over your little Executive, numbers? them, second your through of and could both the quarter choppiness continue there about volumes

Gary Burnison

to answer? want you Bob,

Robert Rozek

of ever our new is quarter with had. throughout the of overall Listen the the is in month did of line volumes that in terms volume with of Yes, month we've November, units, in and accelerate the take the business volumes I'll highest our search terms that. continued in November actually

great continue by searches So, we being to folks. great levels of our see volumes, won

Tim Mulrooney

That's Okay, my very questions, all for guys. taking right. helpful. Thanks

Operator

go will go George Tong? Goldman Tong line Please Mr. We sir. ahead, Sachs. to with of

George Tong

performance? activity these well market potential accounts as cross-selling how share accounts Can touched means elaborate remains on and much on and among larger opportunity as what your traction quarter. You continued that with marque regional you this broader for

Gary Burnison

and Well, of about the accounts regional XX% portfolio. the marquee represented

XX%. you be as at world look ours, you services XX%, professional accounts" like would could If find on that firms as "house high class would be number

lever. The outperformed amount terms accounts performance And our quarter. dollar in was you cross-referrals, the the portfolio strategic said highest first again. that those continue a the of of numbers. -- to earlier, are referrals We real had of I this we've cross have Then in those that's like

Our colleagues the well end of evaluate rewarded on ongoing when basis, on are performance. year as spot an both the as we

of So, walking both of our those strategy definitely talk. aspects -- we're to walking

Robert Rozek

XX% Bob. add would look we've FY'XX, achieving opportunity business also to to if little you're there. sweet bit at mean, look spot. at excellent line we the be of over the what I XX%. when is in this north we're you're you area, I think I as referrals done your about hitting George, And, that at then a XX%, XX%. really at time, to XX go back we're of Year-to-date cross

there's grown referrals. So, get is we've still us the cross to still of to ample nicely XX%, business there that grow obviously to line for opportunity and

as FY'XX, were find Again, back would of look other really is encouraging, business. thing other lines Today executive the referrals I well had to what you of search the search to I going from add referral executive closer only to a if the The lot historically XX%. X.X%. at activity into gone it's

again, making there of great we're So, all cross business. lines sort across in the of fertilization terms progress of

George Tong

That's helpful. Got it.

You've underlying long-term structural continued how margin thinking expansion at the environment. pandemic and about EBITDA current your profile? are Korn cost in you deliver has overall How significant to opportunity changed Ferry the the margin

Robert Rozek

to me on want you Gary, that? jump

Gary Burnison

Yes, for sure. Yes.

kind it the the our our of said change, think that services, was structural I calls, drive we we whether of the enabled was we how BD key our George, of -- internal had a estate. in some talked last execution felt basis that of we real And XXX improvement. to point couple meetings and travel So, about the

we about XX% historically a to long-term range. XX% of talked sort So,

up to we So, XX to it bumped XX.

of belt, terms three our think it's actually XX% we've XX% closer that changes. we in under to got structural to that the sort Now quarters of

is took the overall You the that, real XX% some about dust today charge saw down guess our time little we settles, there. probably are have still our the it'll quarter, work footprint. Where We to bit on in plus of estate My reduced for strategy. we've do of by a minus. XX% be we

structural that'll were on travel have so, a We million internal BD, quarter. obviously permanent we And be that $XX change doing meetings. the

couple the think one probably will that I one right were in five-and-a-half. over at going quarters, settle of around past five, forward to we two

structural permanent scaling change. going our structural And the of of business change. the again, be the virtually, that's just to think folks driven the So, work productivity permanent I ability to by and

before more of able in to fact, on I week, calls, be couple they're and a the do partners they faster. going to was partners things the commenting search out In to quarterly that, and were is I every the reach last one firm, of to close to fact the searches, they believe I talking conduct time searches

given, So, Digital impact what XX%. top expected pressure be our going we is XX% achieve, working that's elevated to and line to virtually then achieves could structural goes, of more of I the there if think change, our the we've EBITDA long-term And to on where sort again, why be margin outlook upward to XX% XX%. to

George Tong

it. Thank Very helpful. you. Got

Operator

go Baird. And Mark Marcon Please of next line we're ahead. with going to

Mark Marcon

the just on big Hey, want to I guys. Good Gary, on topic. I'm afternoon, everybody, great and wondering, start a congratulations quarter.

into a more an into potentially name? and and about could market certain get that has search and temporary types how perception and get temporary Korn market you elevated the you franchise protect you're related it little of Ferry Can thinking has consulting. executive you brand a how staffing to If the the bit staffing, you perception about frame would

Gary Burnison

term skilled the higher end use we we Well, be marketplace. definitely ourselves you're Number market, the that would hate not on but this more down with would but not of focused would starts We one, to doing delivery, it right. going of quality see be or as we legal, technology, on absolutely and I at positions. sure. would such you finance accounting, as about focused that. indicated higher such No stay be end but for as certain certainly that. four We functional such probably three aspects of areas as question and And would the around

Mark Marcon

initial Great. so but And reaction run and terms -- completed their the what's just we November of little it Lucas terms in obviously, in how was I a and the -- bit can the rate? Group. and early, on talk the mean, contribution embedded what of Xst, you about what's should analyzed guidance about but think

Gary Burnison

have three the business an an part we've part less we in only as XX%. of to so sizable of -- business, some already that earlier finance year $XXX into the synergies, the for terms by and for and Korn met our years search and colleagues had brand and have wins interest a ago, month their years -- About met and also of very, Korn Lucas] were success account it and areas, portfolio their indicated that enamored marketplace. which the -- Group it's I functional the Lucas couple on very, was I fee. than was it always with attracted I gross But evolved Ferry I interim from think a the and size very a average very including so actually [Art that call nice without side it's military million started technology, with seen executive that say have to $XX wins very, of that and so, million is question, would of in They speaks we're [Ph] the really this probably into company two-and-a-half and that of to more taking XX chain, into and handful one a in they the technology, their supply a times our around the accounting, very placement, today one over Ferry balanced came quarter. far, can legal,

it's the off we're sure. for start So, -- right to

importantly, the reaction very I greets is with got the business, the far the all very, And Korn that meet like and I of well. firm we've think And fantastic just and done been has inside people. that and in pro Group physical so the seen feel they're positive. And the think incredibly wins Group part search And Ferry I colleagues that Lucas this more we've our they've think I of marketplace. family. beginning, hopefully Lucas think

Mark Marcon

also that we Gary, can that retiring. number both regards completely are cycles. But as changes this? there [peekish] We've behavioral there with I And you hey, type baby boomers we've with got about great. How we've is obviously, observe. behavior is the [Ph] through multiple well. got are of out some agree That's to, thinking you gone

you are would it you capital about where the we think then deployment so at are, are because thinking terms this just you of have capital how obviously deploy, in about thinking stage? to how be you careful the how So, and you

Gary Burnison

a reach we're for college, professional Yes, to started wouldn't graduating to I two sure. summer, she who has well raises services before, and somebody know even can seen very firm is going work speak from in who already -- certainly that's that even certainly we to and started. for the is going hasn't not I she's

certainly So, it's not real inflation wild it's transitory, definitely I've big unlike could a the is market that cards And be the anything seen. widespread. that mean I is killer. it

think So, that that is -- I geopolitical biggest risk any is the risk. next probably

at me be and different pandemic global going right, I'll inflicted just number we out coming outlook we've yet say We this younger think if back that of cycles. a to haven't many I there and but seen new nomadic impact seen anything an you people and tell that careers in would of certainly And common by so of mutation a that completely to years opportunity would time, just December you terms on 'XX, have would've so I be many lost would've going different of a that And of did for lives It new Ferry, the people spells have. today same enemy. you're labor Korn I on was this opportunity market in not the business. told college could, terms

this. go hire would and who repay those We of And ask pay we would higher, all and would of And we would through to cuts. people pay guessed. society our cuts, business, take we'd XX% would business back our would've those furlough on be all employees, all substantial employees

inflation hard it's future. the probably the I that's is Mark. question predict So, biggest But there, certainly out to think

Mark Marcon

you obviously pass all along of And more that? are able than to

Gary Burnison

terms right? it's we're environment, doing just that, absolutely of fees. I the mean, inflationary unfortunately, Yes. at but you Search and only the of the We're in not average and reflective fortunately the Professional the look business in data of certainly, mean, strategy, clearly Executive Search or it's reflective I

Mark Marcon

feel? organically? should more little capital Can How people obviously about bit about currently you booming. I recruit business mean, internal capacity? we great. talk do That's How a you stretched just to is deploying and think ads

Gary Burnison

to we recruit aggressive business. never our aspects Well, as we're to on going been continue of capital to probably now. people deploy as all We've are right

So, we're do to continue to going that.

I on and think we've new got a good track colleagues record of bringing onboarding.

going continue that. to we're absolutely So,

bit our higher count, we of pre-pandemic. terms a than In actually little were colleague we're

balance clearly, on terms right to ability that engagements. think there in our gotten execute the of capability we've the I So,

class others, substantially to turnover resources, for looking world we're I to have. our consider certainly would we're like services is what add Just a continuing than and less fear execution professional firm

our I'm it, to it so far So, only points say this right than basis is was higher but pandemic. year now, not the XXX before disclose turnover going

news So, that's as good well.

Mark Marcon

new is, That's what to excited about bit a digital, of great. then, talk consulting, what And seems regards you wins? And can really with most and some And you're what specifically the little about? promising?

Gary Burnison

unlimited take configure Well, we an their enormous is, and of in years, people an it that And question retaining other I that's the impact. IP people, six think it whether two retention to we have and has IP. organization's can years, months, improve

very So, they technology to recently, that principally have can think is eight I major licensed that's IP an digital, that's engagement, absolutely where intent. where engagement an it's of our our company, And their effectiveness. figure improve very,

of did strategy, and in we came came it regional the acquisition and because part that marquee because account that about an before so, And came of about our about pandemic.

through license Advanced indicative And XX,XXX LDO, and to the pretty IP, what can is other think to our the sessions. take companies development area that's we to and capability, there. So, LDO And individual this think KF develop done we've that platform, coaching of their I and do I people. to the

at as BXC coupled that pretty our cost a incredible develop started companies with to out what to platform So, way. be use can IP an a business turned their has actually technology effective people out

Mark Marcon

yes, exciting. company pretty with future? is be specific that, could eight that near that figure have deal you coming that the in great. That's like And that Do you others see

Gary Burnison

to hard no it's IP, whether people I loyalty people, that. this is, world, leave just coaching way that kind ways Ferry's become are not through easy it's risk huge you DE&I can other nomadic, have to free amount, to And like people we've and XX company. potentially other that increasingly develop turnover. those to million it's to if will are it or be going second this agents. it's have impact do become Well, time risk we IP, a the CEOs think there but companies, an look is none. one And or real And address professionals robust. whether free We of I pipeline. leave that's there's using IP done our hybrid at And hybrid a I there's And journeys, that leave agents, in mean, to on harder world, we say, going where in comes I people we'll the pretty employees at a going a the are I think than mean, to look And money. around but using learning CEOs, brand, we is increasingly can good ways recognize to And, engaged. ESG. feel a just incredible million have a they year, keep anchored assessments, a win. money for is think I part it it's people Korn to to that's whatever, they're that to down that are think of that and other that companies, they're

Robert Rozek

And it's a about Mark, it's just is the so Bob, engagement talking clear, actually is Gary be going subscription. to this was

over eight will realized figures three the So, years. be

Mark Marcon

Yes, about know yes. that one, I

Robert Rozek

going also that over four three, are two, to be talking eight-figure years. realized And then the about, LDO ones those Gary was engagements are that

Mark Marcon

Sunday a number the signings, lastly, to or logos business new those RPO? you of brand And on RPO, former they users, were RPO this mentioned great. logos, new That's new new

Gary Burnison

the on Mark. roughly guess my kind in over half where to have don't of But range outsourced an the is in another half stepping I And of handing then growing what and a from XX:XX provider. is in the marketplace that, just your provider. seeing exact we're taking the them is there's split activities over we're acquisition other of talent acceptance probably and it's

Mark Marcon

you. thank Congrats. great, It's

Operator

are at And gentlemen, questions this there time. no further

Gary Burnison

Okay. Well, look listen, New much. Happy Bye-bye. everybody, sincerely Holidays. Hanukkah, in Thank forward everybody Happy you Christmas, And thank speaking you you, wish Year. a the to Merry we to very I

Operator

the the running X Executive at participation Please Service Playback through Investor does will dial and conference XXXXXXX, replay this XXXXXXX. XXX-XXX-XXXX use that enter you may you and at today. code for Executive of you code conclude the of company's time in again Those available this gentlemen, of afternoon and December XXXXXXX. www.kornferry.com Thank numbers will at access be participants ladies replay Web Teleconference. XX XXX-XXX-XXXX. same site access for our AT&T code the using playback your And be dialing starting for International AT&T access may at That available by Eastern the midnight, and PM, Also entering the Relations I are any section. XXX-XXX-XXXX the for access at conference

disconnect. now may You

Korn Ferry (KFY) 8 Dec 212022 Q2 Earnings call transcript