Korn Ferry (KFY) 9 Mar 222022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry Third Quarter Fiscal Year 2022 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 the investors. Securities the plans such statements and meaning the in to those within made of of performance, Act future goals, Private statements call as today relating the XXXX. Certain Reform Litigation constitute forward-looking

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

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

go and information release call, these are Additional the the company’s in to With I’ll Mr. financial over presentation www.kornferry.com. measure to that, ahead, including Please the relating is Burnison. the turn concerning call contained reconciliations Relations both financial the Mr. of comparable section of directly this in most measures, which Investor GAAP posted earnings Burnison. website at to

you, Carolyn. Thank

Ukraine who’s loss of the impacted weeks, over thoughts, are the our of destruction, with people First, thoughts, on note, the look and been lives. and last the Korn a somber everyone of couple thousands the we of events by devastation as Ferry’s at the

those taking to this prayers all impacted that’s by and who our by So place. the human misery out were go war unnecessary of

fee million the We quarter. on new about that, $XXX performance different our XX% up once highs. financial entirely that with generated third was again revenue, We from year-over-year. results pleased in I an view, am during achieved Turning

also and diluted and $X.XX were new highs. EPS and those diluted Our adjusted was $X.XX, respectively,

the of our strategy the is more over reflection our colleagues performance resilience of and recent a importantly, Our quarters brand. Ferry and Korn the our of connection solutions, the with relevance

And continuing the talent pandemic and to in new at believe scaling world good. and intersection the increasingly success was work. uncertain of times. are we day face about. innovation and all was times. the of we digitally sacrifices think ago, replicating from with the an It’s declared. offer couple it almost and breadth our firm, to is of what when years, of our now very we to lead this years X last were that of again, hard strategy company The metrics ourselves our those the that affirms colleagues what accelerated certainly that over particularly the it by business But uncertainty. about We’re uncertain We’ve power the And made of enabled the

facilitates strategy this our based replicating durable include growth changing rapidly of about regional Elements approach accounts, portfolio. our organizations and represent enduring also we’ve is but which it year-to-date we year. vast on continue and exceed walked now walked and the an developed driving innovate, living potential from the scalable scale, not people and was We’re go-to-market in it XX% talked XX% and professionals by key only over a This partnerships, allowing We at million have. our walked all-time we marquee their pandemic, that to just it. preceding top-down the to compared up quarter we to a purpose, which high, world. our revenues. more We a IP of about haven’t time We it to

firm, our revenue on is about the referrals basis, up several which effectiveness For of sequentially, year-to-date our go-to-market of XX% our by dollars strategy. a million example, within driven demonstrates cross

given businesses, businesses, tomorrow’s believe interim we’ll We innovate, of opportunity marrying acquisition Korn effectiveness continue capabilities growth the to talent labor accelerated looking from consulting substantial and there’s Ferry’s our to and with ESG. market also the opportunities organizational acceleration with our and revenue And transformation, nomadic to at M&A and particularly digital market. sales

capabilities, going going We’re with of employers. Gregg our business we’re LDO, continue part IP push Kvochak professionals Ferry to their including to Advance platform. Korn further over you. development, continue advance, move to XXX,XXX to scale development going of And And disciplined I’m and around maintain we’re I’ll lastly, our a a capital the both professional to to our more offering. have also a to that, to digital and subscription by balanced learning, monetize our strategy. Rozek. outsourcing world used approach it Bob their to turn M&A. as as Bob, And joined and With leveraging journeys individuals allocation

celebrated where I Thanks, ago, at XX-year good you Ferry. of A morning, Great. weeks are. and Korn couple on Gary, afternoon, my anniversary depending good

pretty enabled The processes Looking stand it’s we IP, after the in as people, today’s really potential. business have thrive today, back us. colleagues environment to for positioned we more data, serve our we’ve assets, most the us XX there to the to started, of have in were growth. underestimated investments our future talented I here and ahead And opportunities importantly, us me looking incredibly clear true believe I years, when made have to and data for built, all, clients, that that the I solutions I the and great at

said to results. the Our operational at is performance I’ve consistent execution looking by and to way continues drive performance. measure superior financial best always

in continue growing of third per direct Gary highs earnings adjusted strong our the of we delivering new This in strategy diluted performance of heard our fee our revenue and that is and execution say financial the a the quarter, relevance share. exceptional solutions. with you Now result

portfolio companies top line solutions. and synergies at able I Gary about our complementary with marquee consulting go-to-market relevance line business, of of our to services and and refer talk it’s the we’re in the solutions accounts services wrestling major trends and revenue professionals of heard look developing to inclusion, also today, or and what post-pandemic accelerating mega equity and generate evolving You are that the with world. digital as operate our or with diversity, whether growing around success a our leaders growth issues highly we regional cross ESG, in world to

channel remarks, You further potential which, expansion levels through our business look continues Gregg business, new of of in as expand companies. our can increasing license sales with monetization we technology major enter his from and also digital you’ll data for really at really as the great to hear subscription really, was partnerships prepared new

this uniquely us leaves of positioned. All

company continue meet the spectrum markets across the only the fact, gain share we in are the we In positioned to companies needs of of able well serve. market to and to that entire human capital globe,

XX% let our was Now million third seasonal indicated, $XXX up me or as to Gary That’s turn the quarter. Normally, the Fee million. historically our year-end $XXX third low. holidays, with year-over-year. revenue, been has quarter

adjusted quarter. respectively. Earnings in However, digital million XX% very $XX was RPO for margin to up was the in of Adjusted or $XXX fee By revenue actually and also grew $XX X% year, while current EBITDA EBITDA was Search up XX%. Executive XX.X%. XX% also XX% Professional sequentially. and new or year-over-year to with million grew at line consulting year-over-year, growth Year-over-year XX%, was Search up and revenue growth fee strong an the highs for of million business,

as have and benefit profitability consultant earnings never productivity and both Today, lower higher. continue to execution and spend. from G&A been higher profitability Our as staff earnings well our

the first at look you and before back right it’s XXXX, three recession go hit. you pandemic If of fiscal quarters the

and XX% revenue up faster actually has is our than it’s EBITDA times X.X adjusted Our grown grown. fee

adjusted quarter, actually to per fully up a $X.XX which year-over-year. was to advanced share, diluted high also in Our share earnings the $X.XX per improving new

strong New third year-over-year, business quarterly quarter, reaching new up very in XX% high. was a also the

growth saw by you new the from real rebound seasonal at If that’s solid achieved strong growth new million of We quarter that new January business very December. at in RPO second awards, we in was in consecutive they saw in it every business line note, particular Of a level. look low the and sharp $XXX a our consolidated month, new of contract business. business,

cash strong. $X.X end about third investable At cash totaled quarter, securities marketable position remains Our the and billion. the of

investable deferred net Now accrued position November balance and X the the of in that to acquire I million is quarter. up that investable would cash million, repurchases reserved used for we which Group Lucas million $XX was for exclude XX% share compensation if cash approximately $XX is note bonuses, and arrangements our on global $XXX the about amounts $XX year-over-year. you million or

a capital. to As approach mentioned, balanced continue we to Gary take allocating

over $XX approximately Bob. I’m to lines start Digital that, revenue year-over-year. to Thanks, of have and our of review In fee going M&A execution turn business in Greg KF fee was hiring year Kvochak paid XXXX. in addition and investing the million to million With million fiscal Digital. was to our third approximately staff, for so with additional Global detail. KF $XX.X which $XX of and quarter, stock worth up dividends call XX% earners cash the far in we of Gregg have repurchased I’ll in more

new to up XX% quarter, to million, Digital and in fee grew year-over-year was $XXX digital the million. revenue the which in $XXX EBITDA profitability $XX component KF $XX fifth in and third strong business a related Additionally, million subscription the business X% adjusted Digital million sequentially. third with new licensing quarter or the up $XX.X of third grew quarter KF XX% was subscription margin. XX% remained to the for sales. Globally, over adjusted year-over-year which million and and XX.X% the total EBITDA consecutive was of Earnings and license quarter of

and revenue, business up third growth the high in in solution strongest Now in and with across growth EBITDA an million year-over-year. business to to be or and third $XXX.X was in Adjusted approximately year-over-year. fee strong XX% areas in XX% were up generated Consulting Consulting XX%, new third also regionally and reached North which up respectively. XX%, three XX% adjusted in fee fee $XX.X a demand approximately was respectively. The quarter, and was Fee America million new professionals. quarter, XX% and In XX% quarter million EBITDA approximately growth top The all third approximately million the quarter Search which RPO Regionally, Professional trend year-over-year grew of broad-based XX% for North margin up skill growing the America XX.X%. the the which the revenue $XX EMEA, were Consulting XX% million, Globally, sequentially. year-over-year, which EMEA, was by turning surge for new $XX X% and third Consulting. continued of compared $XX remained to months approximately grew preceding was Professional and third revenue million, quarter, the for or revenue sequentially, the $XXX.X up sequentially. in driven Lucas and strong approximately up quarter RPO XX% year-over-year approximately in XXX% has Lucas was Revenue XX% acquisition. which gone Group Search Group the was the while the well. up The the revenue integration revenue for to for of up

$XX to wins million continue RPO Search logo EBITDA revenue $XX million Professional Professional business of strong work. million both reaching of in Search $XX.X new Adjusted business Professional new new to renewals and for New and was awarded XX.X%. consisting quarter, third for of $XX Search with were EBITDA million contracts, and also margin improving new scale RPO the an of highs. adjusted and of with extensions million was RPO and $XXX

broad-based XX% the Market year-over-year. APAC in accelerating the and Latin another XX% new EMEA, growth EMEA of $XXX global third improve revenue with international regions fee APAC respectively. continued in North Growth and in Executive for Search reached and to XX% also up sequential which demand Finally, million, core America. quarter, XX%, high and America was growing year-over-year in was with third growing quarter

in million Global In X,XXX. to quarter of up opened The third an We assignments worldwide of million, year-over-year XX% new third million. continue up Search was consultants per number of $X.XX EBITDA was quarter, with approximately just the the $XX up end to worldwide third – of at consultant approximately invest the Executive expanding which XX% at grew Annualized quarter $XX year-over-year remained XX.X%. revenue $XX Search adjusted consultants And dedicated up XXX, in in was which margin steady fee third total number quarter EBITDA adjusted year-over-year million, team and the the the our XX to search Executive production quarter. sequentially. of XX% was the third in up grew

Bob to fiscal for to turn Now I’ll XXXX. of over the back outlook call the quarter our discuss fourth

Great. Thanks, Greg.

strong Backlog high of as our in was quarter grew business. a is in real previously As discussed, exiting the quarter, of new all lines terms consolidated again, business. third year business strength to working February across in days. third new shortest February the was generally with the month the new

month RPO. best month eighth And actually RPO, new was include if ever business our February you new our was best this business However, actually it excluding ever.

continuing Now share major $X.XX. recent conditions, markets in difficult per coming level or $XXX per share QX, earnings to and foreign million fee to risk and of pandemic-related rates, diluted trends share consolidated range situation to worldwide to and strength earnings Europe uncertainty quarter to GAAP Eastern despite range $X.XX the we our out in our With from adjusted assuming $X.XX business in exchange backlog and from consolidated geopolitical lockdowns per of changes to revenue from mind quantify. the in the diluted million per new this to a our range expect in conditions, $XXX share is $X.XX fourth further no economic that new presents or and financial very

end me started. as Let I

look the been I I’m opportunity continue more all for now ahead to financial have previously discussed, to our our about I reasons than long-term As success. build optimistic on ever

you more And solutions we trends today. and have. and to that profitability answer Our colleagues, is streams, serve company mega sustainable With our has never a for clients, its better years highly come. core questions integrated may to durable a growth. has new that today positioned world level any we’ll relevant positioned has for to and constituencies, have we’re business achieved shareholders us in set to that, of continued Ferry glad the Korn all has candidates remarks seeing activity conclude and be of that the been are revenue of

[Operator Instructions] Securities. is Our from from Tobey first question Truist Sommer

Your line is open. Please go ahead.

about productivity, business the so the I Thanks. vision. quarter, have do I usually here seven even over to some answer model inputs we of is everybody that How XXXX. necessarily kind growth, specifically of of we just last and sort Any highs, the you but intelligent market surged of put surpassing an from all-time sort wanted in ask in kind growth at think helpful. and could quarters, headcount? any frame recruiting to April so not would six, the the you medium-term but dollars, don’t can you help drive expect together be of way that that much

Okay. Well, Tobey, it’s voice. your good to hear

there I near changes you’ve the you like. not But around second, maybe it’s the work, million that term, people labor nomadic is, inflation, the people, one barring – this you put work, XX you scarcity and pretty talent. Maybe people much in happened work, a we millions at it it’s the it’s an but have look for efficiency pandemic. per look all got it’s think a people. left which when before at search, significant it’s where I it’s rate, as the And pandemic market, was when high of you the labor what it’s aside of think pretty number. Then labor is a a incredibly close. you number short. that that during market. the it’s participation have When as right mean I million how the of But

And the to so war I expect, of there’s would impact that to be continue for again, inflation going talent. barring this

and business I our you our would so market positive. think which when is I around the look at is extremely today, trends another Then all consulting that labor for scape And business. work the good tight, that’s think the

And Good prompted your kind of too, answer your to the to me. a voice you. along lines follow-up Thank hear Gary. then that

of have Professional your implications from for of pricing for to could the I What work to aperture if don’t sort and economics across actually to Executive but sort that and their flexible by the mean know adapt regard. the structural employers you RPO. open that address are line in change anywhere be it With to businesses? business, does And your Search, Search, What business? unit-based of way

last the pricing we increased few our Well, over have months.

our in a – and bleed business to at see the time But you Search When those or like. move some impact you’re MSA the in of And the digit up to take of that gone contracts, six from line certainly, probably fees Professional we in you longer-term made particularly has clearly, saying the both look and months. what Search last, businesses, that we months will call perspective, will average Executive over acquisition talent inflation. that average ago. the Now is businesses double wage the fee, it, months XX because of agreements five XX

I coupled but around look around there’s enormous worked When today on, at professional scarcity for predict, think opportunity of to people business. positive very hard culture, for happening I again, you to get that, talent, wage it And an think what’s we learning, going so the the be there. is what to outsourcing. development, development call pressure presents would with And very, around how actually LDO, us continue

I us. think for that’s an opportunity

we our at quite, side, consulting it’s steadily other that, hour, not now parts has the pricing. look almost our gone On per you up. but business, raised $XXX. have see rate if like the And we have, can of the that you It’s

I quantify. look, it is, there has much this upward of environment, I really – to How I it. that’s it to that trajectory in So an think think opportunity. But kind hard is

some myself. been as someone going are question business recently like thinking How margins little and about from expenses a of the Last you road the say sort forward who’s I me. resumption on travel Thanks. in actually of that bit

little more Bob this, can around bit definition it. maybe And put answer and a Yes.

that the inflation. think I big question is

is it today. to even germane what that’s that’s oil And does Fed predict and go travel. actually where to going the that’s where than hard I think and more really

probably question. So, that, think I biggest the that is

of around forever travel really last second office think truth their produce? years was. thing it up go out – Well, ago, really office. were we get than how example. the before, mid-XXs. none how whatever "office was ***XX*** we XX%. that that professional, And of I comes actually really ***XX-End*** them consume? he actually And changed. we entertained? It’s I office. is when person it’s But even a of it truth grad, bragging into I broke office for young is the I think interviewing yet, was was How job, was week work How two the business? culture". Well, But probably perspective the we’re people of culture. he we said I to And the would be when done, kind an yet, this college their How that’s to give full-time what hyping doing greater you it’s I hyping them change around go I’ll going XX% a was the today And culture". that when entirely than the workforce. into culture. bragging none different "office really up an entered this

profound. think I change pretty that So is

Bob, margins, of terms maybe you that. comment could in Now on

Sure. earnings We settling that range. feel Thank XX%. we’ll you. kind the last of XX%, reduced settle range We about as our over call that’s long-term on into. about Toby, estate that XX% where by Hey from little this we talked still I the footprint think margins a a saw perspective real

that four leases we through. but in took come natural their for of reduction, of way remember, over years we term as have probably another works And you then QX percentage If that. still happen couple before its time will that to a points charge

one and very, travel the BD the we’re on that’s that very think closely. side, area I watching

the $XX spending on we million that $XX a million before remember or were pandemic, If you year-to-date. quarter

expect say, range. averaging increase. that will I in $X that, quarter the, $X.X million, probably a million We’re

we’ve the into views at margin XX% and were probably of haul. of end will obviously, somewhere that piece got we factored zero between our midpoint is. closely. XX% think long-term the then the up our the And is, I last it to manage where long headcount over But we that the

in bring any just so that business comes slowdown need would slowdown, the And we deliver would hiring in, And extent business. as moderate new board. be we it, we’ll on resources accommodate to to there to the people

And so XX% XX%. about feel we to the pretty good

Thank you.

Sachs. Our George of Tong the next Goldman question comes from from line

open. line ahead. Please Your go is

about the of sensitivity of to lines Hi, thanks. you conditions, business are of each Can morning. a evolving? of Good currently talk which, your course, macro bit

big the in happening obviously Well, elephant the in Ukraine. what’s room is

essentially an Ukraine gone business about business It’s impact $X was our so business and And Ukraine zero has the $X us line. the have in on over probably Russian million. million. for to that was The Russia. Those

a in companies. seen for other haven’t countries – we effect other Now or knock-on

We that date. haven’t is out actually ahead starting was. seen to of business new February March where

very make it’s not it’s and early it course, trend to anything, that a does neutral Of but positive. negative, is certainly month, if a not

the is and next trend towards touched I this, settle think does – XX into stance the really inflation. think I is on their biggest these inflation. really the to central months I over and And biggest, XX where macro that banks what what

I factor. think that’s biggest probably the

topic Got recruiters but maybe seeing inflation. bit today, increasing pricing, aligns is how And the how pricing that not talk with looking you’re a to it. among expect wage that your ahead? And you where Can you sticking just inflation increase internally? of about pricing to much do

we business. companies benefits Well, recent our that in did companies world, would wage big are we X% comp is a survey pressure. find of digital advisory the expecting you most the around have what about that In and

absolutely on And support that. of the data our Now that certainly, country. would varies intuition top by

from nomadic at businesses, I the market, labor going talent. to recruiting would the to be if pressure So continue you X resulting look that scarcity think of expect there’s this

have is the that increased companies. be. but to know George, pricing. environment, on And just posture hard Now going because what macro to I our central as very we few how what the because our indicated, of impact that is, past over of we view don’t banks’ the months it’s much we But have of not because quantify

that have where And so to see goes. we’ll

Thank it. you. Got

question from Baird. Mark Marcon line from next the of comes Our

is open. line Your ahead. Please go

my question quarter performance. congratulations and a strong and on strong for everybody hello and a thanks Hey, taking year-to-date

how are time. room, would the going elephant would in think And the occurring – Just Obviously, real react? to everything you How it’s do to clients Gary. is going early differentiate and you of most just area, regions. impacted would sense what’s the your would in your consultants terms conversations I but with clients. – EMEA how of in and your imagine with be in terms that

than it now, – seems to Ukraine, forward people are but and still right cautious, decisions. and Well, to Russia seems it moving other making be be

off say the how exactly go to view. does what you that, EU – that’s dependent happen, in would I of cut on that terms That’s Russia. question. if say probably oil to EMEA, not happen, I of they or So to far think, that there’s if I definitely the that Part gas natural is go a think was on from And big but to was a would impact EMEA. pretty huge

So EMEA, We had seen States, really much really United Asia, here around as have, in uniting in Chinese people the as we haven’t in much. same seen view. atrocity. we here the we February, New And Year but around say, haven’t

Of to course, closer not it’s home.

Great.

And seeing not or anything any sounds cancellations so lines? along you’re of any freezes like confirmations it or those yet

No.

potential. able during the to You able feel to preserving and you power were and like were being during of have you exercise same something expenses of the and in a the future quickly to occur? level flexibility as what job adjust terms great managing earnings COVID if Do COVID, also did you

about Yes. there’s Absolutely. that. no Yes, question

moves uncertain times. companies in I great make think their best

impacted in think We last put of few have Europe, colleagues our happen, have this. Eastern in I to got track over been by clearly If plans contingency a contingency that that we’ve the we record were that. weeks place plans. helping

absolutely, yes, Mark. So

projections There’s may may up well U.S. banks what times. several obviously terms of you are different multiple end ECB potential with the range are And but in also [ph] how then of of possibilities? thinking it, those sorts way about just it’s release about you what regards What the then how personnel. of BOV you doing, impacts? up own you mentioned times, mentioned in are to And the end that the with in you all the Great. seeing your terms range inflation, mentioning of doing in thinking were the to the as they context in that central both regards – of as and

where going pretty XX% Volcker. XX%, Well, on hand, to that imagine to go the there. the the Are to I we to going or rates Paul – to you’re are XXs one for it’s you back me that that just going – to to we’re out going get up hard crank – to far back really seems that’s volckerize politically. stance we

list so. And about – to that. going don’t a XX% we’ve trailing fair view what off – our So But the company, they eligible XX have that my little own our were salaries months, is just raised to I we’ve would be take employees about. back for see bit in talking own or

question are continue, not the mean across If that point, you at think afford run that around wages. is it’s to whether at for – I which were if companies the bigger pass earnings. that like to there point companies have think population, a a on X%. that’s able that groceries. I And impact forget consumers And some oil, entire does I is probably more X% you this But could gas or or if thing on debate to could somebody some

that’s that’s fundamental here. question So the I – think

seeing ability like When targeted count digital. think we when areas recruit? a take growth about there, consultant should to you recruit. the about you’ve are Obviously, terms your you the that? marquee like range are what yourself in at of your in ability for distinguished of to think how terms you’ve going then programs just seeing we services, And it. Got we in well. And that just like of What particularly, of terms look

drive exciting effort to work digital area, help with that. thing is purposeful that’s have to the partners and that the to made we In up ecosystem expand our

us it, least major Ferry. also over we’re for where very going for a to going quarter. platform commercial not meaningful with continue increase sales that’s force. the to to companies be broader to commercial have digital partnering own pivot six that’s business, we’re Korn IP, be own Now have could months couple In a distribute that a last, the to of next been nine But our to to capabilities, call the at our

that. So we’ll do

earners, fee consultants, partners, principles. finding dial very back. in that out rarely all still We’re We

platform. at strategy its aggressive are we’re the and what most, attracted and and I being think, to mean I very So matters organization And of we that people think I intersection are, talent. there. the that’s

So to continuing we’re recruit.

We’re recruiting account leaders into the organization.

So moving with we’re still forward that.

feeling is make seen Great. Lucas does that question really you in last How Are recruitment? And is it thus far? like me professional the acquisitions what for that area you’ve well. feel about then and you future going Group sounds about

The XX. feel really a up XX is good. probably business. It’s it a here. it’s or makes million interim Today, It $XXX piece round that today of

I a think got opportunity around to continue talent just nomadic develop question the to X we’re labor over actually Professional this but we’ve theme but we – And the And the there. it’s we’re trying investments professionals Search going professional the think I interim market, it market to not that really make not build entering search, around given to a broader so out only business million of year. developing And plays is that acquisition of another today, also professionals.

is the We’ve couple with couple we’re prioritize digital professionals journeys, it got alone. into We that, strategically quarter, business can acquisition, let’s have. also today, trying strictly the play We digital enormous if One that market transformation. development, get with let’s look at through coaching, on. That’s make plays opportunities. talent we the that last could areas the new IP of can to so push lead this how there at salespeople a And business. change. career a that – developmental our learning but there’s businesses. a And you really There’s increase XX IP XX%, fantastic in big decouple isn’t it’s to into sales States XX% around going probably that million United we look sales it’s

that’s is professional development. the then around And So second one. one

leadership XX%, there the that’s big the through we revenue. about a the say, professional development been at for overall And push end is CEO organization So of around high we’re business, we level. can below, the the the actually development, XX% digital Historically, making workscape. think of

Great. Thank you very much.

the Riddick from Our next Sidoti. Marc of question comes line from

is go ahead. line open. Your Please

in east anyway? Good here afternoon. What the you do coast see

Good Marc. Hey, afternoon.

markets the as realities customer you in if advantage differentiation if they you little verticals maybe some wondering to as I wondering addressing – much various time are further along some verticals on maybe you’re the may seeing as between industry described discuss was about to that you if it the maybe along far some spend could end how could be with call, of I taking in others. sort opportunities business. a And opposed the industry of of nomadic was talking

do over I last a think bode of change terms years. people of of it great years two ahead And change of that’s if seen Well, well hard that more we’ve in I we’re others. one for the over particular lot believe the deal that years. change two It’s couple next in really in we’re work should next get done. say how there’s Clearly, over for industry the of firm. a ranges. But for to our

Some are deliver in more the be to have front or line of products consumers. to on terms they services how

you ESG look real. to is that but So it’s pinpoint tomorrow’s of last today’s opportunity. And the push happened – weeks, the if around create will over the it say will at couple crisis, solve that, what’s clearly, hard would not one. I that

that, push around so solution do believe of that sustainability, and anchored a And we’ve I broad-based got that.

think movement they green create only upskill, around business – that’s is could energy seeing line. how reskill, there business. company’s I our clearly, a it – top be X% we’re a lot But Whether real. around the of that’s – of

even should and years. further momentum that over the So next few gain quarters

recurring that doesn’t if how update I that Or expand. wondering give But I of was much seem opportunity sort services thoughts not sort the of you price could revenue of it utilize are a specifically that? an and as types Great. maybe was you’re as types And to whether a wondering seeing whether you’re of of bit as services, Thank they you a on there’s subscription little though of people way to of seeing that or pushback. could – as to – then the those you. much as sort is to if an just what those about around revenue rethinking in quick talk follow-up. bit increases far

push couple and subscription. I you can the you made digital to and a more comments we’ve mean more make me let Well, know, through a of business to Bob, as drive add it.

new it in this so new business. quarter, of business, And XX% was almost terms of

two we much. than, three pushing where that different Now or is say, ago, substantially that as years were not

revenue subscription so happening recognition policy a that’s result got as a that different business. And you’ve of

So subscription business was $XXX million.

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SaaS that It’s business how Now to other license basis. basis price we models. seat subscription similar is per a

say Search, in there we’ve direct, an the can talent you seen the get wage pressure. Professional down to and in we’ve search, and that of we uptick seen that if It’s we transformation, Search, kind can’t anchors we both there. not that So that, see Executive we I in whereas down XX%, businesses. as see as could offering professional you think – pricing can of But put around development we – around anchors the sales I XX% those put down anchors of put acquisition

real just opportunity And Ferry. have Korn tremendous IP. a for We that’s

add how the about I to – thing IP talk is. the is Gary, only would tremendous – Yes. you the that

companies our relationship tech uses actually very sales sales a management were now IP in One and with kind partnership specializes – large that we force. their of customer of the have who with

Thank very you much.

Truist question have a we Sommer Securities. Next, Tobey from follow-up from

Please open. is go line Your ahead.

just of wanted inflation. into comments The Thanks. I kind ask question to tone and on to dig your is

might investors dig you there a could other for that into constructive me? Could that may of particular, business be kind impacts. a I so assume tone think But wage you average, and basis go-forward on well. more as cautious for struck be inflation, been good in on the a little bit

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to they’re – anybody believe, ECB the have which consumers. comments is economist, take is not going Ferry exactly other back seeing the – think Ukraine, but unfolding But to negative big Gary going be what’s gallon, think mean when that down. say, Korn to see And my going and think unknown is just to it don’t don’t to I on. I’m I just I don’t This back I particularly you $X is policy. in So what’s will, almost political is their it an And they’re start what just Angeles, Los I have I tragedy off. going should okay, I a can do. does impact what federal, on reality at the in and gas

factor Toby? it the there you is did lose So is that as world. macro I don’t should any Carolyn, in think cautionary, we out a it but company read for

this still may lose did or we now. the him queue just and time be He’s in he on mute at

Carolyn, any other questions?

have questions, no further Burnison. we appears It Mr.

hearts much. that one where this Eastern other about you be our do go the is very, to prayers company devastation achieved on Okay. the can and the we’re purpose. in Europe. and of life Listen, we’ve And what out very on hand, very in our what loss very, the the hand, firm and And and excited thank seeing

you much you, Carolyn. you we to speaking to soon. forward time, look for your that, Thank with thank So and very

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