Q2 2025 Korn Ferry Earnings Call Transcript
Key Points
- Korn Ferry (KFY) reported a sixth consecutive quarter of increased EBITDA margin, reaching over 17%.
- The company has made significant investments in productizing its intellectual property and proprietary data assets, enhancing client offerings.
- Korn Ferry (KFY) launched a new HR integrated software platform, the Korn Ferry Talent Suite, reflecting its commitment to expanding differentiated IP and products.
- The acquisition of Trilogy International expands Korn Ferry (KFY)'s interim professional offerings in EMEA and North America, targeting a large addressable market.
- Korn Ferry (KFY) has maintained strong bill rates and improved employee productivity, with fee revenue per employee now 35% higher than pre-pandemic levels.
- Consolidated fee revenue in the second quarter was down 4% year-over-year, indicating challenges in maintaining growth.
- Interim fee revenue decreased by approximately 17% year-over-year, reflecting broader industry trends and market challenges.
- Consulting fee revenue was down 6% year-over-year, with slower delivery of backlog assignments impacting results.
- The digital segment saw a 4% year-over-year decline in fee revenue, despite strong new business growth.
- The company anticipates a seasonal decline in the third quarter due to fewer working days, impacting revenue expectations.
Ladies and gentlemen, thank you for standing by and welcome to the Korn Ferry second quarter, fiscal year 2025 conference call. (Operator Instructions) 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 I turn the call over to your host, Mr. Gary Burnison, let me first read a cautionary statement to investors.
Certain statements made in the call today such as those relating to future performances, plans and goals constitute forward-looking statements within the meaning of the private Securities Litigation Reform Act of 1995. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, investors are cautioned not to place undue reliance on such statements.
Actual results in future periods may differ materially from those currently expected or desired because of the number of risks and uncertainties which are
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