Korn Ferry (NYSE:KFY) Q1 2021 Earnings Conference Call - Final Transcript

Sep 03, 2020 • 12:00 pm ET


Korn Ferry (NYSE:KFY) Q1 2021 Earnings Conference Call - Final Transcript


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Gary D. Burnison

from a monoline firm to an organizational consultancy. And then the world temporarily paused. Certainly that pause temporarily impacted our business. During the first quarter of our fiscal year, we generated about $344 million in fee revenue, which was down about 28% in constant currency. But I think the key word is temporary. As we alluded on our last call, we're continuing to see green shoots, with July new business better than June, June better than May, and May better than April.

Trailing new business for the three months ended August was down about 13% year-over-year combined, which is obviously more positive than we saw in our first quarter in what we saw when the world stopped in April. In fact, August new business was only down about 6% year-over-year. So really good news. July new business was up 34% over June. So again, green shoots that we're seeing. And I think I'm -- more than anything I'm proud, proud of our organization and motivated by how we've positioned ourselves for the opportunity ahead, and we face this crisis from a position of strength, not only when you consider the breadth and depth of our solutions, but when you consider our balance sheet.

And the foundation of the firm has been to ground it in [Phonetic] IT [Phonetic] and data. And that continues to be the backbone of Korn Ferry. We've got rewards data on over 20 million people, 25,000 companies, we've done almost 70 million assessments, we have thousands of organizational benchmark data, we've got thousands of success profiles, every year we train and develop 1 million professionals a year, and certainly last but not least is we place a candidate at each business hour, every three minutes. And so we're using this time of change not only to have an impact with our clients, but also to reimagine our own business.

And that includes moving from analog to digital including in our assessment and learning business, which today it's almost 25% of the company and we're certainly shifting that business. We've done more virtual sessions in the last couple of months than we've done in the last many, many months. The pipeline is good. We pivoted very quickly. I can't be prouder of our team. And when you look at the uptick here month over month in both our Consulting and Digital new business, you can see that something is working. And on the recruiting side, that's another place where we are reimagining that business as well through AI technology and a lot of the platform that we use in RPO. We've taken this IP. We've taken it out to the marketplace. I'm very proud in terms of the stance we have taken. I think our biggest opportunity as a company is to recast the Korn Ferry brand.

We recently launched Leadership U, a curriculum that helps leaders taking on today's challenges. And more importantly, amid all the calls for change, we're amplifying our voice, not only on