Korn Ferry, a global organizational consulting firm, has reported its fourth quarter and annual fee revenue for fiscal year 2023. The company experienced growth in various segments and achieved record-high fee revenue. In light of its successful performance, Korn Ferry has also announced an increase in its regular quarterly cash dividend.

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Q4 FY'23 Financial Performance

Korn Ferry's fee revenue for the fourth quarter of fiscal year 2023 reached $730.9 million, representing a 1% increase compared to the same period in the previous year. On a constant currency basis, the increase stood at 3%. The growth in fee revenue was primarily driven by the Interim portion of Professional Search & Interim, resulting from strategic acquisitions. However, there were decreases in Executive Search, Permanent Placement, and RPO due to a decline in demand influenced by global economic factors.

The company's operating margin for Q4 FY'23 was 9.9%, down from 19.2% in the year-ago quarter. Similarly, the Adjusted EBITDA margin decreased to 13.4% from 20.0% in Q4 FY'22. Net income attributable to Korn Ferry was $47.5 million, compared to $91.7 million in the fourth quarter of the previous fiscal year. Adjusted EBITDA for Q4 FY'23 amounted to $97.9 million, a decrease from $144.4 million in Q4 FY'22.

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FY'23 Full Year Financial Performance

Korn Ferry achieved a strong financial performance in fiscal year 2023, with fee revenue totaling $2,835.4 million, an 8% increase compared to FY'22. On a constant currency basis, the increase was 12%. Fee revenue grew across all lines of business, except for Executive Search, which experienced a decline of approximately 6% due to global economic factors. The acquisitions made within the Professional Search & Interim segment significantly contributed to the overall increase in fee revenue.

The company's operating margin for FY'23 was 11.2%, down from 17.9% in the previous fiscal year. Similarly, the Adjusted EBITDA margin decreased to 16.1% from 20.5% in FY'22. Net income attributable to Korn Ferry was $209.5 million, compared to $326.4 million in FY'22. Adjusted EBITDA for FY'23 amounted to $457.3 million, a decrease from $538.9 million in FY'22.

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Dividend Announcement

In a move to reward shareholders, Korn Ferry announced a 20% increase in its regular quarterly cash dividend. The new dividend amount will be $0.18 per share, payable on July 31, 2023, to stockholders of record on July 7, 2023. This decision reflects the company's commitment to providing returns to its shareholders and signifies confidence in its financial outlook.