Korn Ferry (KFY) 8 Sep 212022 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry First Quarter fiscal year 2022 Conference call. At this time, all participants are in a listen-only mode.

Following the prepared remarks, we'll conduct a question-and-answer session.

As a reminder, this conference call is being recorded for replay purposes.

We have also made available in the Investor relations section of our webcast at kornferry.com a copy of the financial presentation that will be reviewing with you today.

call your the Mr. turn I over host, to Before cautionary first investors. Gary me a statement Burnison, let read to Certain statements constitute made Litigation those the relating in of Reform the call future meaning plans today, Act performance of and Private goals, the forward-looking XXXX. within to statements Securities such as

differ forward-looking future such are risks from the to cautioned a materially Although such place believes periods statements. on or based undue of control. are expectations the are Company on Actual and beyond not in results reasonable may in reliance expected because currently reflected statements assumptions, which those Company's uncertainties investors the desired of number

comments and July concerning financial currency quarter relating XXXX and Also, some year for the Company's other in for Additional risks including can and in uncertainties adjusted Company amounts, the with such the the the to the be may Company's fiscal to and release presentation for be SEC, report cost XXst, annual EBITDA. report found and XXXX. such periodic quarterly as reports information this today filed the reference ended filed and EBITDA, soon the of measures non-GAAP in

With measures Relations financial sections concerning relating of the the Investor including I the information Mr. website comparable call, Mr. turn to that, both kornferry.com. Burnison. GAAP will over Burnison. this go to to these ahead, Additionally, presentation and directly posted Please are measures the in most in contained the release is reconciliations financial earnings of call at which Company's

clear efforts colleagues first well our joining And say and as the relevancy as quarter. us. I'd of guess another has everybody the the Cynthia. you, and morning, for you, Thank outstanding great in our good diversity Okay. that resulted from it's pretty offerings, I thank

decisions XX.X%. EPS several the results quarters actions results an few they've our years. agility taken, of performance yielding continuation clearly last mass EBITDA only critical adjusted opportunity. momentum our over are really And profitability not purposeful deliberate margin strong these and increase a speaks are revenue the a last to efforts XX% we as a and we've and strategy in $X.XX our the recent of in over fee of delivered with Our and to And now quarters but together come the and importantly, over of

talent, need talent described world changes for we success, world in Korn this to how very And our upskill a and and leadership I opportunities hire in Company that our cross-section, long-term work wherever for Ferry career with And transition As Companies with of those tomorrow. today's a a talent. re-imagining remain whenever nomads, in at the to on of relentlessly they're dynamic focused all performance world they our for aligned Today, The that of of that's features people, the result, real companies from don't position see of nicely Ferry. from clients. as our Korn is last to I old are and will always compensate, that roles, agility motivate, their demographics, To work to but businesses. war These And poised maybe for hire opportunities they aging well talent, that lead not soon. they agile meets is said, anywhere, of type work. the their are be. everything. culture, strategy engage, as mega of creating and Korn is begin In the their to work. opportunities new going massive of enabling world a And transition least, the seek state and landscape their rethinking responsibilities, this anytime. workforce, Ferry differently. as structures, anytime new driving how businesses And response, we changing digitization the

fight sustainability the profound Today, From more is world the companies and businesses, been transformation, of We're about effectiveness marquee consulting our megatrends. include our projects driving Our and was fitting D&I greater and And going expertise. for digital facilitates with and of in strategy. actively industries. regional expertise portfolio. marrying The acquisition as well is all-time governance, executive through and as XX% search leadership, RPO, scaled core to quarter, we've talent insight course, grappling with I such an partnerships -- areas scalable accounts, revenue. to assessment, right demonstrates ever durable growth needs. from also go-to-market seen. pay which search continue XX% leadership key which this org pro judgment companies is our enduring the talent revenues. market and acquisition across we've solutions, helping and drive a strategy integrated our decades professional are only the In talent rewards we're find to looking more than and absolutely and development. the professional larger assessment, go-to-market more high, go cross-referrals for by driven of represent to to at and In about not and revenue our strategy, and the with our talent, right think of as current capabilities experience succession, This And new result the but durable is in of into is organizational and as capabilities development, questions today's such robust and

are right With and truly have with by Bob, our you. drive joined this help the the and Rozek Gregg our new at Looking right I'm world it right I over affirming the to Kvochak will turn clients strategy performance we in this people that, ahead, Bob I time belief. to results feel clearly and

afternoon or morning, from. good in Gary where on and Thanks, good calling Great. you're depending

quarter outstanding push Our to financial continue results in to highs. the first and new were they

to and that's work driving embracing social fee them consulting Our unique us Clients changing heights. to solutions help profitability of environment. solutions to relevance today's markets. organizational that revenue And in our gives unprecedented share our a grow continue global and and mix and of navigate new greater strengthening are rapidly

Let me the touch on highlights quarter. of a couple from first

or quarter million or the up first XX% And Gary $XXX reaching $XX million fee revenue it's an was million. $XXX and in As of X% sequentially. year-over-year high all-time mentioned,

quite then quarter an consecutive in our digital. first up was in in XX% search, hitting that's revenue and removed XX% the RPO exact in business growth new the the and in accomplishment, third quarter fourth pro measured Consolidated in trough. fee Also, and from quarter year-over-year Now, the highs only very strong. consulting, in search, first growth XX% was XXX%

mentioned to regional the of up these our generated quarter, over Revenue And to grow. continue accounts. and success go-to-market from accounts consolidated strategy. the first in from steadily revenue from and In regional year-over-year of XX% the XX% continues our quarter, accounts as Our was fee results marquee revenue demonstrate sequentially. first our marquee our and generated X% Gary was

of about in to XX.X% first up fourth generated of the quarter, grow. line first the referrals, quarters of cross In which from referrals addition, respectively. fiscal continue and is revenue In fee cross-line XX% was XX.X% and from business of business 'XX,

highs X.X% XX.X%. million X.X with margin earnings EBITDA adjusted Now, million in profitability to new or sequentially of and grew also $XXX the EBITDA an first $XXX million year-over-year and Adjusted quarter. reached

XX%. that's third over an Now, our EBITDA quarter consecutive margin with adjusted

the business virtual up also $X.XX, from XX.X%. the to and diluted quarter $X.XX higher levels improving a or share lower by a share share I and of delivery the $X.XX of of quarter, fiscal and and related first sequentially, diluted per spend. compared benefited in was 'XX up that to tax and fully $X.XX record in profitability earnings from lower to staff development in reduced execution to adjusted earnings driven earnings first $X.XX fully to consultant would from our processes G&A like per diluted a level first out productivity continued a earnings Fully Our XX% by quarter, reached benefit rate which per spend point

this that 'XX, Now, of in currently, for effective the projecting XX% sustainable. of And all we're to we fiscal rate XX%. rate is don't tax an range believe

also that each X, X consecutive occupying and We're the to generation last ever, of levels each is month record X, new to with X. accelerating business in the grew by business, top which turning XX months of our months Now, the our share X of to in quarter. spots pleased new

demonstration our the today. in a solutions Now, clear world of that's relevance the of

XX% more Now, new awards, RPO, up business were approximately excluding basis, up and X% a year-over-year consolidated on specifically, sequentially.

New business the awards. from million which XX% fiscal was for new business search, up with growth in quarter RPO, a was total strong of another the first contract fourth quarter of 'XX. strongest professional has $XXX quarter

quarter, At improved. end the first $XXX the totaled and of Our million. marketable balance securities cash investable also cash

XX% year-over-year. at million, quarter up for amounts cash and Now reserved was is comp end investable the deferred when $XXX bonuses. million the for global a $XXX or accrued you which balance the first of arrangements approximately exclude

our Now, XXX back This was It additional to and hiring of continues execution priority includes that invest fee growth. to of amount, the future that's into business. approximately And earners our in to the maximize million staff. U.S.. our be

earner by Over new total quarter, the new grew XXX, and which promotions. includes hires consultants recent last both fee

I approach our operating With in the paid over first review in repurchased to million we Greg segments turn allocation, quarter quarterly capital that, to detail. balanced the approximately consistent $X million. with of will cash call $X.X stock a more our Additionally, approximately and of dividend to

Thanks, Bob.

flat of was Let's subscription steadily KF sequentially. was to quarter, year-over-year was license million KF Digital fee subscription continues XX% improve. in XX% which up million, first quarter, Digital. year-over-year. license revenue for and was the component up Digital revenue KF $XX which fee Global start and first approximately fee the and $XX The with nearly In revenue

million remains on importantly, and KF and quarter up quarter this adjusted related XX% profitability with EBITDA new More services Digital year-over-year of in strong million Earnings basis. a $XX.X first the was margin. a adjusted with business EBITDA $XXX to KF year-over-year, global for new XX.X% and license Digital XX% for subscription in first business the of

up revenue quarter, $XXX.X consulting, first revenue, to consulting in approximately quarter, million all-time North in growth turning solution X% business up high. sequentially also in very and areas strongest $XX million or was XX% strong all growing which XX% Fee fee broad-based approximately first the regionally of was and was a year-over-year. Now, over Consulting year-over-year XX% across year-over-year. new new which was generated to America, the

in Additionally, regional year-over-year, million, $XXX.X demand clients $XX.X the first of new continued RPO XXX% and EMEA first of the business in and volume buy revenue signaling having for Growth under of an and quarter which revenue XX% approximately broad-based Globally, Both advantage a year-over-year solutions. over volume best XX in million first strong, in assignments, $XXX,XXX and in up fee for sequentially. our spending potentially over search tend with RPO and both Regionally, XX% while X million who smaller approximately search quarter, was Adjusted sequentially sequentially. rebound in the was growth grew the in professional and focus the remained EBITDA the continued was for engagements the business skilled with value, consulting professional in take by first professional accelerate XX.X% APAC demand $XXX,XXX to up RPO the to was fee new quarter smaller or has XX% those of point quarter surge margin EBITDA labor. grew adjusted to quarter. years.

and approximately While XX% year-over-year, professional XXX% search fee sequentially. revenue was up up

first RPO wins continues of New of first Adjusted sequentially, $XXX up to search, RPO million million $XX search XX.X%. renewals also the and with $XX extremely consisting of and professional million contracts for new an EBITDA search improving extensions, strong scale and quarter, of work. was RPO new business adjusted Professional business new quarter. both of margin we're logo was and EBITDA in million the and XX% professional awarded $XX in for to

search was of high first over sequentially. reached which in grew a quarter, XX% was new which and also Finally, year-over-year for broad-based by up $XXX all-time and North global sequentially. XXX% Growth year-over-year led executive fee the X% million, America, X% revenue

regions Fee continued EMEA respectively. up revenue accelerate sequentially. XX% and to and approximately in APAC international Our were X%

record $X.XX XX worldwide are promoted. year-over-year, $X.X adjusted X,XXX. search our dedicated the the sequentially continue and and search new was invest who was opened end to recently EBITDA was million. aggressively executive in sequentially, And quarter. global quarter at or to million $XX.X XX.X% year-over-year year-over-year, quarter, The the number quarter of was in of to Annualized search per executive improved quarter expanding We consultant fee approximately XX.X%. quarter a and sequentially. number first consultants margin XX up million, colleagues XXX, grew XX% assignments the up worldwide Adjusted of consultants production including first XX network first in the in the to total revenue up XX. up In in up which the the EBITDA X% first of first $XX.X first million

call 'XX. discuss quarter turn Bob going of outlook second fiscal to I'm to the back to for our over Now the

Great. Thanks, Gregg.

new a As to in I all-time grew quarter business the mentioned, new high. first

to strong XX% starting a line influenced expectations. year-over-year summer a quarter historically up approximately August with vacations. So work. our by business we're month new seasonal But and was with really second backlog in was of for is August

Now, monthly we historical of each and demand a in with are up expect accelerate strong, of patterns to quarter if trends consistent remain lines in high conditions with our peaking continue sequentially in September, business October. at market new business to

current strong levels we growth. to and investments earnings second And spend do we near-term make G&A going execution at to are the profitability employee to both Additionally, fuel and as in future in continue remain strong. quarter, previously to keeping in consultants to productivity expect near remain discussed, or staff

is Today, durability new delta X organizational to economic stand in to exchange 'XX of of to rates, all our consolidated million or With constituencies, come. major questions lockdowns in the from may have. glad positioned in one to expect related assuming to worldwide would range robust in fiscal its Ferry has financial second that, new been and quarter candidates, $XXX market or foreign fee revenue Now, no business that million. to barometer going be better with year, changes of model. generation end-to-end $XXX we markets any And business unique diluted we variant leaving never shareholders of continue financial consolidated of path A conditions, Korn the to relevance. strategy we consulting to no a earnings continue about per our begun as the over industry grow for clients, of solutions colleagues, serve our months past from a years fiscal alone our performance, recognition. a doubt marketplace true we you answer to a strong $X.XX or range share $X.XX. we've on our

to ladies queue. the you've in You And Instructions] and you that indicating hear [Operator gentlemen, wish a placed question, a tone ask if been

You X-X or any the X-X for can Once comments. queue remove yourself pressing from same questions again, the it's command. by

come Goldman first Tong George from Our of the with line Sachs. question will

open. is line Your

Thanks. trends growth business quarter-over-quarter in quarter-over-quarter consulting in exception, right. Hey, all being so All strong but And Good consulting saw the bit prior also your of morning. double-digits, moderation in delivered quarter. in decelerate the little growth With lines. we you've the revenue there. business strong of did new a was

call I be different notable may wanted seeing? that of were to So the business out you're just that rest see there from if in business any little bit trends that a the you would the consulting

say wouldn't I so. No,

on to good of very next capacity. is only the One ensuring working have appropriate problems over that level over, we but the capacity. years of for And to have hard come are quarters. Not we few the

we're over to anticipate will next the make be next horizon the of So we trying the brand and that a on where thing now of see it's we're solutions, is few have example that repositioning market continuously second may to bit then you a new sure balance. what's And quarters. in the that right offering weeks. taking a the One more ESG, few

those it's two So things. really

rate per And DEI Our was continues and very I was, strong our very think to hour work good. flourish. utilization our

start actually that the smaller would say consulting we other thing was saw to George, engagements the And we saw I in accelerate.

where about we talking growth. We engagements have over were been real the and time large the that's seeing

engagements the accelerating we the For in saw terms first of growth. kind of time, small also

smaller we the I about think potential that's news very as feel engagements, about good we internationally, there. growth forward especially So the think going positive

then EBITDA a margins. through flow margins, in on very very XQ strong helpful. you fiscal that's And delivered Now,

how the outperforming ahead, changed Previously, look over Have for next that to changed? you with your respect profitability? expectations you had is X with said outlook been XX-XX% years? is How margins XX% X achievable. As your to you've plus

you do want that? handle to Bob,

Yeah.

I our expectations think in have we George, been profitability. terms of exceeding

mentioned, we're real with as strength, to of new capacity business chasing continues our Gary As deliver. kind

expect cost of to some estates, catch through some have, number And cities compensation across are But to still think when expect would at We're expect come to opportunities them overtime on. offices to opportunities some so negotiate think level. still XX% to from the near real to stick where we pressure. levels. real longer-term that working we plus the base downward the perspective but with point, it's I mean, then, savings on set think get will And to pretty you to I will we maybe development, travel ramp we depressed the and And estate. up expenses still the -- would some business put I in you about and to would the more about moderate continue sublet we nowhere were, back you're have and complicated organization. the of the world, landlords, you still different to somewhere extent. I a the as so have at XX%

Got it. helpful. Thank Very you.

Thank you.

your question of comes with line William Mulrooney Tim Blair. line And open. the next is from Our

Thanks taking this Hey, for is on for questions here. Sam Tim. our

Your quarter line million. pieces or internal wondering I'm less million were expectations XXX the about which of guidance to guess first own business the And XXX business more was here. with of of beat in exceeded pieces that X% your and you your estimate which I revenue for for projections. by

that general, it in virus Well, the I this board of looks through we were we least businesses made at like very worried our exceeded way the would -- we variant. expectations. across the say that have that the about And just Delta

a multi-year, And certainly thing dollar delivering search going our businesses. the thirty market. twenty an high businesses. Ferry are plan. multi-quarter where think RPO high-quality, other Those that of search one professional track is area our increasingly professional the RPO record demonstrated Korn And exceeded clearly was And billion, to become minds. that that the I growth. billion so expectations that's one is that's and relevant and a the organic And is outstanding has on

Great. capital XXX [Indiscernible] allocation would you dividend, and the priorities more kind I That's maybe million of your was M&A? the a for here. helpful on your an you provide here. how pipeline on a hoping characterize for With than little fiscal of small repurchase of investable bit cash, XXXX Outside update appetite

that to say, and balanced systematic number we one, have approach would a I capital deployment. very

to number is and with pipeline feel do the multi-billion. something. I beginning, I years of important sense And game one, desire good. that And that a be play was and years a this balancing growth. really we're inorganic And any just a at clearly number we going I returns. plan investing very here. would so that's of ago, say don't said of the M&A that is in and at of the organization, that. But And beginning combination that business, then I mean, believe we're in part it journey X, role will We a have is multi-hundred-million-dollar to shareholder timing compelled the by

Great thanks for answers the there.

you. Thank

question with Marcon open. line of comes and the line from Baird, Mark your Our is next

Hello, additions how your How over if in are terms Wondering quarter. market, this the you seeing bit staff I'm thinking from? folks year many little are can you to getting course you about of the what search. a where in the of capacity? and huge -- there about you It great wondering, and a talk everybody. a a is And just congratulations on are professional opportunity the

an market Well, be may that adjacent clearly a market us to you're right. staffing. It's even for and addressable large

since revenue-generating aggressively in So up that And do we up, we're to very of we've -- number going by have continue continue we probably about consultants absolutely business. in to that. and up to January, capacity ramped ramped that We've and XX%, ramp the

more RPO create a that just that The other IP be the nice to growth got our is talent what us though, than is businesses incredible bodies. told combination of with thing organic And it's very story. can

that in So coming would call where could It offering. IP the There the I recruiting -- very in some are specialized making is a -- we're final it body what the do -- from. into mostly be second lot strategy. that. sure a with the of And consultants an to our But you piece has that And is smaller, the is just be firms. incorporating great. IP to play time, larger. piece also M&A there can't has are a that But a inorganic at that alone role that's

of we so And three all those avenues. really are pursuing

over Right. next the How ramping X-XX would you Gary? months, anticipate the capacity

now would you transformation that with see also -- going to have massive it's really a skills companies I I is people do to is changes, I've at live. the boomers around making to hard upscaling -- the and massive it's clients also megatrend, seen. of right people it, making world continue of changes it's anything changes, hire the the pretty haven't work. backdrop time. from is nomads this life where career choices the exciting or ever unlike of of There baby technology, of what believe is for that technical next It's to the only want those pace. for digital And many from this continue but and they people, they I but seen to time years but Mark, this just desire very that types transition Combined obviously to couple not where want are technology talent change. to that digitization And something just happening a

the it's a point, our or professional basis you work-from-home positions an search? What whether you're available of that How percentage on at is executive that? quantify filling would in this

XX% a substantial than -- for Obviously, It's won't that than going hybrid. But And sure. be yeah, end going Mark. Yeah. to environment, day be It's a amount, there it's I of the where clearly it's positions fast flexible. think the are X be definitely case. some more I it's that It's to think you years, substantial, the more when the amount. at forward -- substantial

more wide firms competitive relative should database, your particularly regional given And that no? advantage, actually increase to your

of And And, in so. would a think so. change. I think man, would consulting I business. of we absolutely is for really I middle a the mean, tsunami change are good

side, little on what a seeing the bit to about sales relates it training, digital talk and what the have just as particularly extent consulting may you up? you're to picked that and can And Great.

around Bob And Yes, And big couple sales an a manage -- in quarter. talked acquisition lot it was and but the capability. -- around did subscription as this we've that pickup sales a uptick We made tick ability to years things, people train made well, project projects of principally ago anchored up. two to push management, there. a also actually about Gregg, training, by terms seen definitely driven a we've of in that the sales, of was the training and in

So do are organizations for errand will of would continue be customer simply, like? is sales experience I training. our believe revenue growth more are now, look or "How around up and part they've go-to-market? What around they come customer an And and and that professional the leadership good looking development accelerated journey around, to a so

one or of you're squeeze basically for good it selling to it Great. this there's just characterize How have about, would the from accounts, been seeing some Obviously, retiring, you one just things Gary, those longer-term COVID And of through could as while work last cross-selling, is it's baby make whether much up in, is that? trends, activity a home The as discussion marquee bigger, options. then we that the is you versus boomers surge to How gets, I if are some cycles. many you've peaking? --

say of think change it of years, nomads, that say is wouldn't I you too anything I transformation ago, of cut If could pent-up change. demand have for or that that much. that's would whether whether call a this. I months a of could just like haven't five six asked call that maybe probably we're in today. it amount XX% couple months the companies you ago, you have just and seen would massive I would digitization career it's me is the everything, environment the I And said

X really believe the really X to narrative. whereas that megatrends -- part the it's of months ago, maybe I the today, big half said narrative I would've are months it's the So

you. It's helpful. very Thank

Thank you.

with of Sidoti. line your the come open. question Our And Riddick line is next from will Marc

morning. good Hey,

Hey, Marc. Good morning.

spend So the on could color I'm I already you coming progress with wondering was and broad-based really we that time you little from given. all smaller that And up wondering clients. if could bit you've bit bit seen little a follow little a if if of I was you've the that recovery and appreciate maybe. could wondering address commentary a

thinking about up now. been verticals you a are lately, that of that in how what's getting little driving are and their think maybe bit -- that there those That picked kick seeing that that? you're industry be Are should now lagged sense more a we have particular If -- picked should others, level? we difference activity activity that maybe bifurcated about that you up that

Well, me commentary -- to Bob, you here. can my add let

Sure.

would regional on engagements coupled on put of outside and a think an desire larger I accounts. broad stroke, emphasis whole for our marquee to a side be our reasons. And with that,

intuitive, that and pursue travel is the what whether months a the would across -- kind clearly because of wave. And with we the we strategic of less engagements how retail, secondly, be we an IP uptake basis because more this I whether it's that. smaller or an have industry say world. And say we our and last may definitely -- over still have to is That's global platform desire. cuts that's But our would. desire say on it clearly engagement, clearly have to wouldn't than that not that XXX,XXX first across so then impactful multi-regional seen out board. few So guess but is hospitality, that's it's we've whether you That's the in seen that technology definitely would fashion, consumers. came probably given we

engagements. sets on kind the further think smaller landscape. the maybe And I that So that's Bob, could of -- comment you

$X.X and we Again, where up XXX,XXX, really that Sure. strength into was that we smaller Marc, excess And three is [Indiscernible], dealing roughly some to total of still pandemic. about that the what he think a and The filling historically, particularly XXX,XXX. impacted with the if And XXX,XXX with you growth by regions, big those to are I seeing, What for smaller above that is year-over-year, street we of we're the saw we're basically what but category we think XXX,XXX, the we as see is the in still in-country as Asia-Pac, in spending as first Mark look starting at had [Indiscernible] that category small to the bounce we're in on clients. sand rocks XXX,XXX and talks about less to the growth. those jar need and continued them under in sand million, engagements is back. business stuff break in now saw emphasis seeing to engagement. had buckets: up. XX% line overseas engagements than to Europe saw been actually picking But smaller you up refers is Is with strong we each low And really was which $X.X is engagements where a signal. million and growth good rebound the our this start the had, in we quarter engagements. said, and Gary

will. on basis it's you So would I just more a regional say if

on wanted my a will and I by admit I a of bit it. squishy question but is preface saying get your this Great. to I thoughts next And just then this question,

decision commentary made the Ferry. everything, You to go made back Korn investment, in few to when brand ago a years you you

efforts decision pre-pandemic. made your branding step You the up to

You've made forward Ferry the decision board. across brand with move Korn to the the

You golf the and do made decision tour, have what to the you.

your wondering so I thoughts bit could difficult to think exercise. you before, I sort versus it's on so was if be those time it what to there the are of you initial advertising covered ROIC know bit the But what I effectiveness, is branding I've -- as know wondering you time may when today where things, always you those somebody ask I you how little a to it's spend of and little was made on are about decisions currently. of the above of a if All

I the Well, for professional in. in insight. say there and know-how, -- And substitute knowledge, would business there's we're services, that no that's

an create a -- I dollar we strategy sits an opportunity but branding quarters, and not years. so with think that coupled that very consistent not multi-multi-billion purposeful over organization over believe decisions, We over And have the not organization. the months, talent at those that this incredibly in to weeks, of important over is intersection been

that's its and So its IP. is film the and knowledge, on. based ultimately, it's And insight, what

clearly say I Having and as track. said an of it's one. the that number I believe leadership, would I things look all in we decision XX that's around to game-changer branding, doing, we're absolute that's and brand around Korn for back, Ferry. more So than that, been business. up that that history Ferry thought elevated the social or think in our that firmly would years is and we I And have that data just done a the whether the backed years by And the back Korn that's last the statement, last tend whatever, media not up. in we've data two that

inorganic, that continue, which the if and Now, the you But certain an around future. a there presence. time and growth does be for done, leadership will and brand I of that investment times made, Korn the thought organic think with in the amount a investments we we've we media we've be Company without wouldn't where if to social Ferry I will, balanced make approach a run you that surprised

marketplace strong the going that has look just and gender, different in the consistency you an game-changer over I race, been whether marketplace. in continue if a quarters, to voice think issue hard be months to And that make to And a months around that Korn think, for voice Ferry, out well companies issues, as we few next other it work well with that for that's days The the over today, as it's has the long leadership. around why now working that issue very ESG hybrid, is horizontal very, particularly together the absolute it's will as All for is in types taken around I been grapple anywhere, last of Ferry of leadership, solution whether world Korn we've of several is and can the as put organizations. sure vertical anytime. are where of an from the issue, integrated work very, been today major we've this gone this very

perspective just down. I Lines huge in across have broken the I And see but of inside interact the absolutely you've kind organization a Company. been with add, I would outside-in Gary, difference out, people as

present as the versus and themselves ago. or of Ferry much, so internally there's I And on. amongst different collaboration one more the were five much business I years four lines we folks think Korn think where

-- internally, terms think engage think and I up but spot also and interact difference absolutely Gary I in is on show world of in massive a just we So outside how the today. I how see in people

Thank very much. point. you Excellent

you. Thank

with comes Truist the question next Tobey Securities. Our of Sommer from line

is line Your open.

guess, it current that sales currently? be percent I the map team. refined in about talk the a capitalize? could about your how the you of had What may and question fully from I and to and, opportunity if consider need future you. same or ESG generated that be to is And Thanks. a maybe opportunity DE&I what part offerings against you of Thank that

businesses Well, being the -- as would characterize I in those total. nine-digit

what whether in of be depending XX% that there. X, would you And Company X, on count the so

opportunity, So an But leadership, horizontal. share one, have leadership not total it's enterprise, just today. that overwhelming the offerings question. the DEI the it's not to to ties It leadership, and approach digital And the ESG vertical isolated an anymore. number is for inclusive we It's which more to an not certainly applies of it it's enterprise that. portfolio it's

reward are So whether those But profiles need, a they example, does fit you're to -- reinforce paying success you you nice for which that And then compensation purpose. that around fit system strategies speak have of very opportunities for and the there. whether type the also organizational governance, transformation. organizational just, we purpose, business and for not

way around ESG leadership. at not D&I. it's is and necessarily more it looking isolated we the horizontal that But an are around leadership, So enterprise-wide question

of time think is very megatrend prompted that sure -- think we How and that. and that is, integrated. several But amount created plays bit it different very, So into where the I have don't a big can't a do I virus I unfortunately, just the fortunately, of to fad the or together I think don't over a change. months organization -- I this we've offering I don't of opportunity this the speak Toby, bring spent parts that making last tremendous we're that has that, an seeing that quite we can is

Bob. it's Tobey,

bit to capability of mentioned that ready a the One Gary under that ESG our Executive takes that earlier a from it nine little to governance workforce going embedding different and the a in solution. to is And we're be ESG. out so on. takes It broader have it's And go rollout slide up next in -- things model. when so new reinforcement we board is of we're and which the solution couple transformation, prime, as and part lines rolling ESG and sets goals actually categories of on. ESG, and than operating mechanisms days,

soon But will a share over so again, and solution you And you prime it's as it that Gary again, in megatrends the as they sense that's ready the just time up that referred how ESG, for we of next sets real with for gives something line -- broader our we're, couple then but days. not to.

of you realm I and four is percent XX is you years, possibility? so I I that. a or it thought or could that today the double Thanks. [Indiscernible] within give that in told If appreciate would it

very whiplash is the from just I thing tremendous it's transition, and about this happy we're leadership. And of to is careful time -- think we're glad. to go a not that going Well,

it's hard in realm dimensions a many But the is could to possibility. that in right high world. you change Part that no question the this know, if be virus maybe dependent side, there's political in the climate and -- you of that in going But we're that, on that is of it it It the any really of waves told in the seismic because through now. me think transition. possibility? realm statement make is So today declaration on but the the I world

Okay.

all other hit. do I having balance just deployment. How Gary, questions you of liquidity been flexibility, to had on, which you touch ample wanted have Some cash? capital net

you're now. I'm when capital -- is you of there. long-term leave sure And return stranded that higher position goal driving

line with And inefficient? Thanks. go there you there How could do odds at work on say You balance that's because above a too you and of any goal. liquidity thresholds we that are won't draw that just that longer-term out?

that metrics. the to speak Bob let speak actions can I say number would I than one, words. Well, louder

are of we're very got I you time? very resounding harmful would years well good five be if we're problem you said of aware -- in And would part have has -- a these look And and the is number set believe And but has would answer you you say the a very, thing yes organization of consistently And Company course, okay, I going that and Korn over talent a team? Ferry into think in could that. something on Clearly, rush be leadership to at subtly, so track have do and the to we're in the brand for in a okay, say, And the shareholder intersection But in Ferry. to I number what very And that to the biased I'm two think creating you that as be a done of that, one. record. resounding you question. Company pointed strategy, strategy think you'd that our Korn of do believe this last it would out the we've hands. then,

not having Bob, thing inefficient. boundaries. we're is And you going But does do. to flexibility the a we where like that We And and come speak operating think the it's you point so that do maybe boundaries there can to how about shareholder say,

our for to the we'll us year last cash, as we've So the number that into about growing fee did the that talked our go lot year deploy wouldn't investing the we and cash we above. it those towards that allocation. depends I we earners. And won't cash some But where more how are opportunities of it's balance sits, as us balanced I see dividend. of cash in inaccessible easily. what business again, sitting that is the exist different whether more -- And Tobey, increased in are today, much we look spoke on at organization And where specific or -- digital have the we about as to $XXX looking at approach U.S. we I world at is investable some we a we think we end say look million the hiring it in carrying, or we at a capital the of got because the

buybacks along This at quarter, we're depending decisions to opportunity, M&A make at past. returns each the of we at will the Gary we really sit But lever will levers. stakeholder as we those return we'll our achieve have cost towards they said, weren't shareholders, in the have more don't point. as tight the sit that look than all and greater for trying factors to of pull where look or, as a we an capital either if substantial our and been on And time

watching Okay. that. We'll be for Thanks.

open. final Thank you. And we line from will take question with the Mulrooney your is Tim Blair. And William

us Hey for again. in queue letting guys, the thanks hop here

that's Just accounts and one topic a around a of discussion. been quick marquee big

recoveries previous wondering You've giving is few that last here the mentioned if accounts over this the I now. your rest these the really marquee due of have quarters if to dynamic outperformed I'm to portfolio. that extra occurred guess accounts in you're focus or

our last that account has I go can nowhere near portfolio out say The reality when -- that, it few the this. they that what which Well, the was would last add today. point, quarters, to the maybe major back recession. is you is yes, to outperformed. recession, definitely great Bob, you strategy was over At

comparable. not really it's So

both a absolutely an those just colleagues other our that you pay And That's cross-referrals. the And But that's we to only Korn those. we at are. the Ferry part not That's when KPI. not and we the that for is absolutely accounts important something question. look are can't look and happen. go not And quarter. reward regional of those up -- it to to going actually cross-referral. so at marquee every the attention I We But thing And going do really not is it's answer of story.

we look to compare months, And together. to together thing, because well those is what accounts. account weren't -- working. would basis, XX tend its just look in say, we're at you it Even But we it's still our over the many I maturity they very it with it think would So are them wasn't this -- And still okay, call we hard multi-quarter comes beginning. at strategy when when years you our, its at regional to in ago. the very,

that Gary, I say. word you mentioned would the you to going was just only I add

really it's of the think account recognition the just about program. think of the the I the organization's program. we think have on leaders of maturity number you about you When hand,

You Gary accounts referrals existence It's will. said, cross accounts in are along that the maturation think been the They've that really about much the immature more are as spectrum. The you years of line just program. further regional X of would business X And you or that mentioned. I for now. marquee say if

performance marquee And so, the don't do costs. recovery. anything regional has I But the it overtime what we the definitely, on to with on the expect to accounts think we're catch seeing to mirror and up

itself. program just it's think maturing the I

appreciate there, color I Great. guys. the

to Thank you. Burnison, And you for it over closing turn Mr. back any to comments. like I'd

all that also, with us you, still joining going about some very, for in out. hopeful period tend that and of that times opportunity, great the that playing megatrends are those world, to is crisis comes And in. to those with the But very are. come we're in go we're And change. that recognizing the another, out is hardships. everybody, are experiencing we and And extent this. through that or many And to thank our Well, still respects, hearts

our next their we'll the for very Thank So listening. talk again I for thank you time. want for effort, our outstanding you and to resiliency, shareholders much. colleagues for to And

ladies one p.m. Instructions]. XXth week available at conference for starting September Eastern replay and X:XX will at running through And Time, gentlemen, be for you. today Thank midnight. [Operator this

will replay call for Company's section. playback for available www. the conclude Investor the Relations be your in does at website, conference the kornferry.com That Additionally, today.

disconnect. now You may