Korn Ferry Reports 14% Growth in Contracted Fees Amidst Acquisition of AMS
Korn Ferry (NYSE:KFY) reported fiscal first-quarter fee revenue of $756.5 million, a 7% increase year over year, with total revenue reaching $764.6 million. The company's estimated remaining fees under existing contracts rose to $1.915 billion, up 14%. This growth occurred before the acquisition of Auxey Holdco Limited (AMS), completed on September 1. Adjusted EBITDA increased to $128.2 million from $120.4 million with a stable margin at 17% of fee revenue. Fee revenue grew across all regions, particularly in Search and Workforce Solutions segments by 10% and 11%, respectively. GAAP operating income also rose by approximately 12%. AMS is expected to add around $650 million annually in fee revenue. The acquisition involved a total transaction of about $1.2 billion, including cash and shares, with integration costs rising significantly. Korn Ferry expects second-quarter fee revenue between $860 million and $878 million but faces challenges related to margin expansion and client contract adjustments.
Tickers: $KFY
Topics: acquisition integration contracted fees EBITDA margin revenue growth