Korn Ferry (KFY) 13 Jun 242024 Q4 Earnings call transcript

Company Profile

Participants

Gary Burnison	executive
Robert Rozek	executive
Gregg Kvochak	executive
Tiffany Louder	executive
Keen Fai Tong	analyst
Mark Marcon	analyst
Jack Wilson	analyst
Trevor Romeo	analyst
Karandeep Singhania	analyst

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry Fourth Quarter and Fiscal Year-End April 30, 2024 Conference Call. [Operator Instructions] 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.

Before we turn the call over to your host, Mr. first cautionary me to let Burnison, read statement a investors. Gary within today, made and those statements the in of statements Reform such Securities goals meaning Litigation Private the forward-looking plans Certain XXXX. performance, call as Act of future relating constitute the to

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

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

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

Gary Burnison

Good Leah. everybody. good morning, Thanks, afternoon,

strategy referrals. In colleagues importantly, compensation success of XXX X Ferry, regional compelling of things done, breadth our and year. a at to to nowhere world. And cross-business our than generated is of our And to tens how we to although represents Digital, offerings than data. our innovate consecutive others Korn years, of work to in really margin outpacing our performance business sits vision, least people very, and the hard pre-pandemic and Interim, our only that of world, XX%, more a profitability greater about XX%, million Gregg. quarter. the success the of And be more an marquee ago, that the compared are that us one of get organizations, and instability across our portfolio, Consulting, has is XX% marquee depth is cyclically X the getting we that referrals, unique sensitive we've working, ultimately than changed one sure, and They'll fourth improvement. And assessments adjusted to Korn transform also you in scalable we to colleagues. And of at EBITDA XX% perform our and Tiffany these that. use We put line a company basis rest our of year-over-year revenue offerings, fact, our and a purpose, year a XX% XX,XXX our into for cross in company enable and opportunity the by people data thousands million clients of are in that organizational from Our professionals, superior data strategy, year. key in performance. It's X much the of in the million we insights EBITDA Ferry all at in our XX of growth next. from client's business of of the strategy, at very organizations And million both terms they for how on in more around the transform clients complemented us fourth profiles, these impacts I X though all accounts but profitability for of scaling perspective, and business into our for the intersection the that benefit help when from which which put by pronounced our to who the environment in years acquisition with live, accounts growth, the earnings the probably of It vertically, thousands diversified all their covering that talent program, relate striving suite the But has from to to adjust sequentially. mix in clients team, from were more we put changed by increased expertise work developed, for X over professionals begins lines, points more way with our to that business results Bob is XX,XXX into solutions information company. really detail. fee particularly higher offerings, today, joined solid and and margin horizontally, higher really full total a adjusted levels XXX revenue incredible not quarter the threshold over I'm IPA They huge everything market even that's came is about the line the cycle change less people brand-new last higher the business of more to strong and as a offerings organizations consulting exited that talent continues and our we to the us buoyed firm fiscal thing think, of company lives clear the how which account drive is do, contributor is our and the our premier regardless during purpose to hasn't and our opportunity align and our is of interdependently, more being insights of we're work. The in almost into

turn So high-level it with I now over Bob. that, to will very overview,

Robert Rozek

and the was afternoon Great. Thanks, a revenue and more morning. quarter, million $XXX EBITDA over strong XX.X% And that points at delivered guidance. adjusted margin, basis profitability, $XXX or our up fiscal nearly the fee a good 'XX is that of margin end ended year-over-year. fourth on upper generating importantly, high and We good earnings of year Gary, and at note, million in really we XXX

Additionally, earnings diluted $X.XX, share per $X.XX. GAAP per earnings our were share were diluted adjusted and fully fully

indicated, our expansion. execution Gary diversification it quarter fourth full long-term cost clear productivity. a of Overall, our demonstration management and margin 'XX of staff strong and and another highlights marked of of really a in And consultant success relevancy sequential year really the the solutions. was the quarter As strategy improvements our fiscal example of our

strategy our colleagues. resilience also model of earnings growing our all power the Additionally, demonstrates of environment, and by business of in which is diligent execution pretty our our challenging, today's the

and take help that let's back at pieces look year. step Now the really a shape the

consuming both XX% key of 'XX, year-over-year. These and FY One regional include those fee or Consulting of solution in grew business. of less and of in many that drivers, are of 'XX fee reached are billion full even clients of underscoring $X accounts for revenue accounts accounts sets. the of our exceeding growth X%, lines multiple over with the fee annual Two though our represents revenue X% overall our several all-time year, which and our their largest marquee our durability fiscal both million business And down all segments relevance accounts, clients Digital, highs for total revenue. our was cyclical or $XX

hour. we the exited rate XX% year-over-year, average year year per full and Consulting our increased for $XXX bill at Additionally,

execution business, consultant staff Now across continue to the productivity and improve.

And fee 'XX, and the before Our by cross XX%. the was line both finally, of headcount business revenue of revenue QX grew measured in it productivity mentioned, sequentially in the was and quarter by and which about Gary FY QX, hit. we third fourth the in versus XX% exited revenue referrals total as quarter, at about of pandemic up FY year fee fee right 'XX, per quarter a XX% generated is

fourth All talent 'XX. on the are of driving stability these year our fiscal help factors key profitability despite Last, to Korn brought It's And shares, for FY total earnings factors fiscal XXX,XXX improvement acquisition repurchases there 'XX our update shareholders and million in for And about deployment. Return capital to worth a revenue to I'd in In XXX,XXX fee dividends like important provide 'XX, capital cyclical also of $XX and our are market. the our in an through the the we approximately in stock. to shares. throughout we Ferry. moderation shareholders share share quarter, repurchases. $XXX returned been has drive about million of priority in repurchased that

per addition to was $X.XX approved dividend dividend our has per In our of earlier what about that in of the it's double actually XX% XX% our share, share, in this to increase, at the Board which increase dividend beginning $X.XX another is it quarterly the our brings year, year. increase just and

for our and allocation the capital our confidence have future we in outlook to earnings really All speak of the our initiatives power. business

you Gregg, highlights. to over take going it turn financial I'm through company some to Now will overall who

Gregg Kvochak

and sequentially. Consolidated year-over-year, Executive to up new the slower year-over-year Search down quarter Interim stabilizing Executive was Interim for fee year-over-year was PFI Thanks, RPO year-over-year and Okay. year-over-year, a By down was XX% Consulting of down stable strong executive year-over-year revenue stable sequentially. fee the complementing and sequentially. up down XX% with growth talent X% Interim Placement only X% our Bob. PFI Professional constant Search were grew XX% demand the X% Consulting, excluding was Search seasonally of and was our XX%. X%, currency. Interim revenue, was X% new acquisition, X% XX% at seasonally but combined year-over-year flat Search revenue strong and quarter and $XXX Digital consulting Consulting Digital Permanent constant sequentially, line RPO and XX% for for for essentially and year-over-year was was portion and fourth and year-over-year, business up was business, was Executive but flat fourth in offset and down Interim of Placement Placement stable business talent fee in flat RPO revenue Like up Permanent and grew solutions X% demand acquisition new Search, revenue Digital acquisition The solutions. million and Search flat Professional down Fee up and in talent off search while currency, the Permanent Professional sequentially. Within was down by of down with XX% solutions. At business portion X% and Digital

million million of which $XX and and strong For RPO, quarter new renewals extensions $XXX business $XX new the of logo million, in wins. was fourth includes at

up share and were $XX cost sequentially X the by staff for grew or fourth in XX% business. Adjusted fourth per $X.XX, execution up per EBITDA earnings said, consultant fourth a XX% by quarter quarter year-over-year both quarter, sequentially sequentially. by was EBITDA As year-over-year all earnings of over $XXX GAAP lines quarter in and $X.XX. benefited greater by diluted XX% diluted Fully of fourth per margin rate now or to the across control fourth and and productivity XX.X% $X.XX fourth consecutive million. Bob and up the grew $X.XX higher in which measured driven quarter GAAP quarter. XX% fully or were tax lower quarters. Adjusted XX.X%, strong the fully earnings impacted were profitability improved Adjusted The the $X.XX share $XXX earnings to was adjusted in has share diluted million positively and to and in approximately

cash at to grew the sequentially fourth $XXX $XXX end of investable Our quarter position million the million.

allocation capital to continues balanced. Our be

and I'll in we returning to $XXX segments dividends for deployed investing all cash, to more $XXX million our expenditures, million $XX million in using fiscal and and operating that, million call $XX 'XX, share over For detail. review Tiffany to the service of combined turn shareholders debt repurchases. With of capital

Tiffany Louder

with Digital KF X% remains flat Global into for $XX was year. million, license was fee up fourth which at head at next the or was $XX strong million, with sales. Digital fourth million $XXX approximately fiscal Global X% was we revenue actual year-over-year The and tied subscription XX% quarter pipeline of and Gregg. revenue $XX currency. was in to for fee subscription which as year-over-year. in of quarter for quarter up the total new Digital and Digital. the Thanks, the overall and KF fee license million, Starting XX% constant revenue rates the business

X rates rate higher year previous quarter billing mix currency in $XX hour strongest sequentially hourly assessment fee rates. bill revenue all-time Consulting, constant quarter succession, revenue EBITDA utilization which the segment. margins average at increasing which million, year-over-year. Consulting's is points XXX an XXX from or growth was increased rates the by approximately and up and remained up X% year-over-year Fee and For basis and was increased with Adjusted in at for points by to XX% of improve, was year-over-year, and XX% the line an driven fourth $XXX ago. basis a continued in high actual up and X%

broader of Korn Interim's industry-wide million new was Breaking million XX% and engagement year-over-year, Professional has in Professional or X% up fee global Search about wind North up flat Interim sequentially value increased an was approximately Placement hour both Search $XX year-over-year. was down growth. Search per added quarter million, and in down. Despite part ago, excluding $XXX $X X a was consultant is XX% rate average the hourly essentially $XXX,XXX revenue hour, X% or America and or Consulting fee year-over-year the XX% the in the and to million fourth demand, with in which $X being in bill quarter the the fee the down slowdown fourth million productivity revenue business of down year year-over-year Ferry the from annualized. Additionally, was revenue quarter, for was sequentially. Also, slowdown reflective down Total $XX ecosystem. onetime strongest in but Interim quarter, in down $XX.X $XXX of fee was million Interim up when year-over-year $X $XX or which revenue XX% client business. of or X% for is and Professional year-over-year softness to million Permanent

down for sequentially. quarter XX% the New was the but flat during business essentially segment combined year-over-year,

Moving recruitment on outsourcing. to process

as $X rates a million revenue impacted as which or revenue quarter $XX $XX recruit up down new totaled New extensions. comprised XX% $XXX quarter in contracts and but well volume business constant at by actual of for million or hoarding XX% in was at was and in of within $XX the hiring currency, base million year-over-year the million, million, fourth the was or which renewals market. the and fourth sequentially. Fee labor have moderation $XXX existing Fee million logos conditions, continued of of

to can to with of Although be when RPO levels. The benefit win new the marketplace. service hiring and strong timing remains offering new the business positioned we client existing renew RPO believe in to returns lumpy, differentiated normalized as business pipeline continues is well more clients a

for revenue Executive X% near fee at million, $XXX fee X% $XXX has last currency. the million. with at Search global Executive quarter actual in for Search down each and was fourth demand Finally, revenue been X of constant the Global of stable quarters

adjusted to fiscal an $XX over XX.X%. I continues improve, back higher turn Bob Additionally, discuss to the EBITDA, first of now for Consulting productivity our almost to 'XX. to call and contributing will million the EBITDA margin outlook of quarter

Robert Rozek

also trends a Thanks, new May Tiffany. the line growth kind great. line in with to was X% up new choppy. fiscal the bit quarter our which new month February business with brought continued That's In quarter, and consecutive months, year-over-year, improved expectations. in each be our starting essentially little of business April year concluding business 'XX, full essentially Starting expectations. in with recent In have fourth

to grow business we essentially slightly to seasonal June down in flat normal with sequentially July new to be Assuming and June. patterns, expect historical fully for

with expecting Digital for to the both sequentially, year-over-year. and we're talent -- to seasonality normal conditions normal expect today. the the acquisition what And but market QX seasonality, down for seeing current we growth to in services, line our be QX stable, remain Consulting QX Additionally, in given we're measured

to range $X.XX a per GAAP $X.XX. XX.X% our expect share from range we first range per margin diluted conditions, share exchange million, to to And changes $XXX in XX.X%, million $X.XX. Now earnings further no $XXX $X.XX a geopolitical remain economic fiscal from and rates, 'XX earnings adjusted fee to to our markets, foreign financial of consolidated quarter adjusted diluted the in to worldwide conditions, EBITDA assuming revenue to our from approximately to finally,

we focus Now organizational the firm. continue on our in becoming of which closing, the to consulting execution strategy, preeminent is obviously

are going drive We growth. have continue initiatives that a tremendous will opportunity and ahead generate to to

on our solution, continuing line improve and line clients focus drive enhanced the on our top We regional growth to recently going creation continuing initiatives focus more our business to continue synergies accounts, drive efficiency with to cross they to in at including deals. of core First, and capitalize and integrated scale, looking both referrals. execute our for go-to-market Digital, and expanded really marquee incentives. We're of and continue delivery relevant platform and with consumption and client a the today's license to on drive to execution large consultant to world, how one are continued subscription to

data. skilled all able needs. As pressing to draw These And of most are want resources Gary of we bringing mentioned, we're human rich our next at developing Korn that we their are firm's earners our clients last, client-specific what of consultants. solve to help call repository unique level One maximize who the fee insights Ferry from our to capital

in challenges. we full Now world contradicting and uncertainties the today that live is of

a on control productivity team, focused profitability investments relentlessly to we for what As position making the long-term our are balancing we including the timed growth. cost can influencing management while and of firm maintenance to appropriately maintain our base

the beginning come. With ball As is of questions believe any to you I long best we're answer And always our to yet may we a at truly that, what's going very say, be I be to have. would game. glad

Operator

Sachs. of go the We with George Instructions] [Operator Tong Goldman line to

Keen Fai Tong

You cyclically that you're cyclical talent seeing market. your on talked you acquisition sensitive elaborate moderation in in trends about Can businesses? the

Gary Burnison

is be X% say And some services we've months Clearly, we see as depending RPO that you're talking X% definitely over last down about, the you or to could of XX%. seen is several what employment on comparables know, what from part that would stabilization. anywhere it's the would I did. last we call news shared the which would that what expect been -- improvement, good quarterly was it in

also, we professional Perm we talked Some improvement thought last recruiting. in see would some improvement in quarter, in we RPO. about as And

we Search last although the flat Professional the is is Executive materialized up business been the quarter. and flat months. other sequentially. towards we about thing So in has logos. it's essentially business business And -- is new sequentially. it was several thought RPO improved shift what And more we Search actually the that with new you've year-over-year, down talked see seen our a RPO, would definitely

Keen Fai Tong

then Got about the profitability, EBITDA it. Can outperformed quarter, expectations? in initial your sustainable drove That's helpful the versus XX% are? respect with margins margins guidance. you which over talk outperformance context. meaningfully what you these delivered your to how And And

Gary Burnison

guided environment X%, We've over down guiding economic guiding a sustainable depends midpoint for and We level. that next midpoint. at of we're we're handling. X% to revenue, Well, quarter the the we're the think on how that margin revenue at year XX% this EBITDA guide,

One at since of market Korn now was XX% our XX% change, the that is higher profitability levels high, the mix by point. And an is Ferry is high things the we're an really the the our bigger for of into of was that revenue way, proud revenue adjust is pandemic, you pre-pandemic that all-time XX%, XXX up points. revenue fact basis all-time up getting XX%, a Interim for and once the

of the level shareholders. returning at certainly And time, it's investing revenue, this same sustainable. we're at and to cash So

dividend said, the doubled over we've continue the -- stock. As we now Bob to and systematically doubled last year, we repurchase

Operator

to Marcon with Mark of Next, line we go the Baird.

Mark Marcon

nice One, Gary, and congrats George's a on Gregg, it to I'm little take around Tiffany, the but bit. a sustaining margin question, flip Bob, going profitability. performance really

being should the about So still eventually stable? when still is able end kind margins more do How to choppy. little outlook a bit choppy. we revenue these of margins of you're kind think The up while is things

Gary Burnison

margin economic kind of stable there a is points term. a you're of going couple still of are what firm for that we guide. operate mean, I sure. our -- Well, the margins, basis environment can long-term that to next towards Mark. been that's of end We we're see improvement think XX.X%, the think comfortably of And kind and kind in relative hundred for most I are jobs guiding at EBITDA economies that's where if XX% quarter, higher producing this this tailwinds, of

Mark Marcon

to cross-selling of that you've Gary, you of been about in, inning success to for aspirations something, long getting you regards When can that motion think motion, to with years up. X cross-selling changing become, do worked how now then terms a time from terms we lot in are think? on And where relative X we today the we a the had much And incentives. of are you've what better in Great. it's

Gary Burnison

No, walk. but not I inning. we're not second started running. in mean think to We've anymore, the we're I like just we're crawling

I a do more. think lot we could

we this were the horizontally. our have engagements. we is The new pivot leadership at XX% to thing first engagement thing got towards this Mark, year I the business We engagements. when much sizes more consulting is we met, interesting think $X are of interesting and transformational million $X,XXX. I when that mean now or $X,XXX of doing probably into point, mean, business,

referrals beginning. So to tell a from to deploy at doing, -- look The that the having the been leverage, more clearly stability. what beginning Ferry. at integrated definitely we're definitely differentiator cross solutions. But and clients, I huge impact some real just comes to a think and it's to we're move I'll work is Digital the we but Korn on with have you, -- more businesses ability the have of for Consulting huge, I of I mean leverage,

continue cross our XX% we to of I modify So to That But think it more. innovate Yes, have can the could yes, be terms to how and continue for solution be reward in we percentage, could that sure. referral colleagues. XX%? we do sets

Robert Rozek

Bob. it's Mark,

Just little maybe context that. bit on a more

are Consulting of close versus if that at in XX% $X 'XX were full 'XX, look million. business new up So kind FY you engagements above to FY Those the year for or the year-over-year.

see point working capital the push in clients' but solutions, terms selling more really of strategy clearly the that needs. integrated solutions human no help So towards solve can you

Mark Marcon

-- and between Interim, would is Board. it and side stabilizing? side, Interim been the you But the a the businesses. your various differences everybody on seeing follows And that been it's the Professional across market. Interim who the jump then Search things particularly for wondering, tough think do Great. declines And back how on in And Interim we've characterize I'm are Interim, Professional queue. you on I'll the a on and then Search space,

what maintain so as and the it's to pretty seeing it And amazing. are up yet from able perspective, What the you're you improve revenues declining a top to while is which they're get economic line does thing given the then much impact but -- as And how desire and the margins margins, doing current in to the investments same doing environment, short everybody. as Interim term the make that a how is, your Permanent? for follow-up in or that, to

Gary Burnison

make continue made would Interim. replacing conscious emphasis Search decision about to a in Professional on going We a were business. We almost to were modify investments year where ago we we that -- our the

this And industry. and look was The that's thing is is absolutely about so significantly. conscious of paid down versus That the to let's that the decision we go business, made, X.XX%. X.X%. that average portfolio And that industry would off. The penetration have we to interesting the at if were on XX-year you rate made it's said, And a that find temp now you we data switches. number okay, in we consultants

now retiring The it's you alone could X.X the statistically. And million retiring United higher. million producing run lose XX, X or X X right next years are economy going the Peak at to this the year there's or think over of the It's are years, think going the be baby major I last kind issues. so-called to X to next X about -- boomers to where maybe of jobs, talent people in should I be a is rate. States

X, very could there's out well. when very, years really you bode look X, that imbalances X So some

fall decline Your XX rate, the we've months, question months have accounting. The that become temp labor saw on falling stabilized. means lag penetration Generally, a it's in we first, you in impact been historically, back those the counting. you decline over it finance and Then around look got longer. Interim at and technology. we going definitely definitely recent a when And and to an it's a employment, the more for times generally Interim, have temp saw see market. in just

investments turn not I some I'm case think there's United other only it's is just the We to so business of demographic the margin to brand. seen had, stay I pressure the end. going absolutely Ferry Assuming going make Interim to market number towards countries. is are the cross in the some referrals event, going but power we've And different. end sure much there's the we the not the tremendous higher not bigger would here. And sure. much, Korn much, down. on -- it's the for States, opportunity. profile other of this We've upside for a We're think Clearly, major

-- more quarter average rate going stay did to end, opportunity upper was sure, are -- -- we an This the hour. for Ferry. at but to $XXX We're the going for like it's there's market there Korn

Robert Rozek

this Bob. talked asked you is the we've businesses the those -- we in how I And touch on Mark, make the about can this profitable. about question past.

And processes. literally that's as systems buy So systems, into common controls them, managed, play, businesses So lot underinvested is common maybe we you the of just we these and have have processes, a company a incredible across we plug somewhere well them our and and right? we buy, pick the adjusted common up they're X%. built when around EBITDA we plug integration not our playbook. When them globe. look at companies And we these and

more margin doing juice see range it then the when that, start by And XX% so of the and allows to us And integrated, quickly. more become activity go-to-market the happening. up bring see that's we as elevate line, the relatively really referral EBITDA top and you the XX%, activity into kind the XX%, to

Operator

Truist Sommer Tobey question a we Securities. have from Next, with

Jack Wilson

This Tobey. out. Wilson start on for is Maybe Jack just

dig change little business market or you Could into So continued what new in of in change in product the just in bit? sort momentum Digital, is the that of you're doing? that a a a

Gary Burnison

lumpy some for sure. Well, can of be it

it's we monetize million. wouldn't I The this small thing most Korn really tremendous could Ferry. So of into $XXX is it. IP part not we that that a mean have today, would hope too that I the much we that. business that read It's profitable

client lives. people's You impact thousands can you organization, can of really change a

do force, get well intellectual how products, to do the around do you one got one it's in. learning improve that that believe we entire design, can whole the -- offerings a biggest one sales how and trying thing. where spans The say, largely organization problems. So company's development around assessment is property people we are is an also solve effectiveness. push what compensation, organizations are which our legacy those But the an or of they it their digital markets as organization. People professional to to offerings centered and sales offerings It and we've set license is they strongly anchored around after. It's compensate firm go up to how client and we could it's around, anchored layers around

So that in. it we do is one believe

are working ecosystem not people, a those we digital and better it our here our to dollars them year. you millions assessments, to we and And a XX on make an next heavily they working a sit mountain hard that and of bring intellectual us? easier. be of the get comp creating million with work on the property hard look -- we example, say, enjoy on very can with firms, be partners the to in an million XX and solutions. huge ecosystem we're at think differentiator, at, look a why revenue We XXX of also journey continue We million We're of of hundreds can data platform for create quite to Korn working if market X consulting big of the ecosystem Ferry of that partners entire partners. Because

Robert Rozek

is And Jack, Bob. this

selling Digital selling is make point going in one the you million I had Digital, mentioned, about right? that the million, now larger multiple years. in And We're would forward, $X mentioned same Just $X span Consulting, as thing that had is earlier million, on I $X engagements. deals Gary business other happening think

might mentioned, you And Gary choppiness. so see some

get X and the you So those then X get or X. next of or might in X you quarter in quarter, the

key point of you But quarter, deals, So are up. huge the business RPO RPO. kind multiyear is like we contract that $X new see what selling see $X and you'll it's the deals larger a to $X solutions. million, one in million spike versus million, there with signs me,

that as forward, we business going will influence you report what as And new that so as think well. about

Gary Burnison

that that the I fuels business. part is too, we IP property, our and business a that actually part businesses. that, our recruiting you use same our of And in for think, will, And good good thing if Consulting RPO capabilities Yes. other digital the fact, of chassis a of intellectual Bob,

Robert Rozek

we right. It do. permeates That's everything

Jack Wilson

All right. for And then maybe me. one more

you've there than, lines I think see driver guess, a some business about AI of on I sort more previously growth spoken reducer. as key a you of you throw more Can any are cost a driver? that as color specific using

Gary Burnison

going. is thing this where knows Nobody

ethical somebody concerned very over developed are years. X place. use in X all over We've We every ramifications. million last put the few We people IP a the about We job the minutes. new

building make awful time whatever we're spending area the a lot around moat our that do to of in data. are an We sure that we

more efficient. the And so Korn entire we're some in very, in we quarter. this time, it And how very that's we look systematic we the are there. Yes, of over using Ferry But next of make coaching, will can at not some assessment. the

concerns let's couple of in right solution are, are issues it right and use the we now. where can ethical what disintermediated, Our a areas. That's we are around be primary this where now

Operator

Next, Romeo Blair. Trevor William with we go to

Trevor Romeo

just already, given had to but another a bit the I I margin outperformance several one we've there. ask questions know differently wanted

had segments and that ago of segments. most time a at I than you're a bill of much higher think kind headcount rates the year from been for you type yet seeing running a of kind of frame of better the productivity lot lower

starting a you talk much off productivity initiatives pay further metrics. bit just which how So if really more implemented and improve which productivity you can are specific you've wondering on now those and could to recently about

Gary Burnison

the room from comes we the of and Bob as do Part platforms go. technology, indicated, around like. there's think covered improvement Well, think well. clearly, that to really I look, And he

other, And scale, over so Consulting take firm our in multimillion-dollar will out here, see better think productivity. as engagements, The do impactful more like the though, I time we bearing the business, it's numbers. better

gigantic to a want there certain And to strides months. huge, to We've definitely On last Interim sit XX going stay side, made huge some over level. we say, productivity I'm and going you're at see the there. the not

the ways not combination go not there's and there. I'm I'm sit it to long strategy I using it's go-to-market that relates of think going to a we're and -- technology to Digital. say Consulting But our a going So as to

Trevor Romeo

maybe other to sequentially, then the have makes green the of may kind quarter competitors the environment, think reported as and uptick a another of I as just sense. one search, shoots But strong the lot few specific about of talked not an some maybe your recently. on kind And revenue demand was a flattish of businesses. of overall last quite you That of that cyclical

quarter? stronger to of about wondering those environment as you're they're whether speak the Just and search, same shoots the specific weaker last seeing green if whether kind still could about demand you or or

Gary Burnison

that I mean, improvement would And was same. we last to about absolutely some uptick what quarter I would about see Professional Search, in think we and an they're in see we talked the said happened. expect that's RPO. we

from reset. and are seen people and term, what don't it I the in the middle see really that years. And near much is don't companies all months, this was in haven't in And clearly we're adapting back next multi-quarter step see XX You rate of this of environment I the a a few for to changing. X.Xx

United what really though think megatrends out at I news little is touched take not I too long. you mean to I when going encouraging the labor a look bit, just States it's upon force. the be

you there. you -- other issue change. And X at and to now, to got XX that look at person look it XX% right with baby today, population some every the Peak you at some retired this XX% and there's that's America, say, is that's you workers, retired countries wow, could think boomers, I a in go real demographic of going for and

but And firm with to how technology, that do and is And is services deliver demographic part actually that issue? with for. deal part of we're of be be we through building then so so that kind to our the going companies of going it

say could unforeseen that some news. at event good and Again, absent look megatrend I really, demographics, really that's I So the around happen.

So I more be for look holding. on labor this trends out I'm Ferry. and what say, encouraged I longer think there's mean But than going to term Korn to the not of concept demographic continue

Operator

Singhania from And our question UBS. Karan with will final come

Karandeep Singhania

Josh. on Karan is This for

positive growth a if growth quarter? it's Search in So I and seeing regions... question And think going which new on business you With so new to the engagements, Executive to Search. had do return Executive first

Gary Burnison

-- for areas winners that environment. through or in No, those going going incredibly are we're what to fight no, companies no. a is relevancy. Korn that This invest in There very, environment is difficult X growth. is And X turn. The in is There for be a to them very are -- Ferry the an fight every company a accelerate that's doing.

change is the have labor XX%. United up materially. I much. for adjustments Costs there's to going that XX% to Americans States not think interest I the most Wages going to be gone think market not to rates. huge up have gone don't in

think if of which quite to And only the we're I realistically, looking in. kind be so quarter, is going that I you're think myopic, it's environment a

done have around certainly say more can't globe, we Now I the at does When share. high-impact ever. things take ever that -- the assignments doing that never doesn't we look market we're that that

different your Executive Absolutely. industry? go? and mean there can these that Is and if best or in. we make in do. on -- what -- that's a their Search going X say, if X in Is And the climates, the get to best the great trajectory? at "Wow, question incredible, people tailwind, companies we're look kinds news." no. I so sure. Absolutely. Do months, For I incredible economic that it's have you're there to is is is in completely of there economic room you're And But environment moves

Operator

turning conclude to closing the speakers, for our remarks. does you And session. that back I'll conference question-and-answer be

Gary Burnison

Okay. for an you and joining taking us Thank for interest.

we the something, you really when around tremendous years. colleagues, industry, thing want matter, most to has that X organization building we in a every proud tremendous that team. And done we reach I do solid I'm think an you particularly world leadership the everywhere have of have We're and it. solutions say and over the really, is be where we're that next

talk So next with that, you, thank time. and to you we'll

Operator

starting conference running Ladies p.m. through will this and XX, replay be available at gentlemen, X for Time X:XX today June week midnight. for at call XXXX Eastern

dialing the (XXX) XXX-XXXX. executive service AT&T by access the access XXX-XXXX code entering may and playback dial may (XXX) International XXXX-XXX. You participants

the replay participation. Relations available will today. for conclude company's be your And does your www.kornferry.com at in conference playback Additionally, the you that Thank section. the Investor for for website

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