Financial Results
published on Dec 09, 2015
Report Overview:
Report Outline:
KornFerry has announced results for fiscal Q2 2016, the quarter ended October 31, 2015.
- Total Revenues were $291.4m, up 10.1% y/y
- Fee Revenues were $280.6m, up 9.7% y/y (16.2% on a constant currency basis)
- Operating income was $34.4m, a margin of 13.5%, up 380 bps from a margin of 9.7% achieved in fiscal Q2 2014.
Q2 FY 2016 revenue by service line (with estimates of y/y growth) was:
- Executive Recruitment $161.5m (+4.6%)
- Leadership & Talent Consulting $76.0m (+10.9%)
- Futurestep $53.9m (+28.9%).
Executive Recruitment revenue growth was driven by 3.2% increase in number of engagements billed and 1.6% increase in the weighted-average fees billed per engagement.
Leadership & Talent Consulting revenue growth was primarily driven higher consulting fee revenue of $7.3m including $6.5m of fee revenue from Pivot Leadership acquired on March 1, 2015.
Futurestep revenue growth was driven by an increase in professional search of $5.6m due to a 25.6% increase in engagements billed and a 5.4% increase in the weighted average fees billed per search engagements. Additionally, RPO fee revenue was $4.5m higher y/y.
Guidance for Q3 2016 fee revenue is $268m to $278m. With respect to Hay Group, Q3 2016 adjusted combined fee revenue guidance is $336m to $352m.