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Segments
 12 Months Ended
Apr. 30, 2023
Segment Reporting [Abstract]  
Segments Segments
In the past two years, the Company has allocated capital to build out its Professional Search and Interim operations through the acquisition of Lucas Group, Patina Solutions Group ("Patina"), Infinity Consulting Solutions ("ICS") and Salo LLC ("Salo"). These acquisitions provided the Company with the opportunity to reassess how it manages its RPO & Professional Search segment. Given the Company’s strategy and development of separate financial and operational metrics for the Professional Search & Interim and RPO operations, the Company’s chief operating decision maker began to regularly make separate resource allocation decisions between Professional Search & Interim and RPO. Therefore, on May 1, 2022, the Company changed the composition of its global segments and under the new reporting format, the RPO & Professional Search segment has been separated into two segments: Professional Search & Interim and RPO. Revenues are directly attributed to a segment and expenses not directly associated with a specific segment are allocated based on the most relevant measures applicable, including revenues, headcount and other factors. Due to this change, the Company completed a quantitative assessment for potential goodwill impairment both prior and subsequent to the aforementioned change and determined there was no goodwill impairment. The presentation of operating results prior to May 1, 2022 has been revised to conform to the new segment reporting.
The Company now has eight reportable segments: Consulting, Digital, Executive Search North America, Executive Search EMEA, Executive Search Asia Pacific, Executive Search Latin America, Professional Search & Interim and RPO.
The Company’s eight reportable segments operate through the following five lines of business:
1.Consulting aligns organizational structure, culture, performance and people to drive sustainable growth by addressing four fundamental needs: Organizational Strategy, Assessment and Succession, Leadership and Professional Development and Total Rewards. This work is enabled by a set of Digital Performance Management Tools, based on some of the world’s leading lP and data. The Consulting teams employ an integrated approach across our core capabilities and integrated solutions, each one intended to strengthen the work and thinking in the next, to help clients execute their strategy in a digitally enabled world.
2.Digital develops technology-enabled Performance Management Tools that empower our clients. The digital products give clients direct access to Korn Ferry proprietary data, client data and analytics to deliver clear insights with the training and tools needed to align organizational structure with business strategy.
3.Executive Search helps organizations recruit board level, chief executive and other senior executive and general management talent to deliver lasting impact. The Company’s approach to placing talent is bringing together research-based IP, proprietary assessments and behavioral interviewing with practical experience to determine the ideal organizational fit. Salary benchmarking then helps the Company build appropriate frameworks for compensation and retention. This business is managed and reported on a geographic basis and represents four of the Company’s reportable segments (Executive Search North America, Executive Search EMEA, Executive Search Asia Pacific, and Executive Search Latin America).
4.Professional Search & Interim delivers enterprise talent acquisition solutions for professional level middle and upper management. The Company helps clients source high-quality candidates at speed and scale globally, covering single-hire to multi-hire permanent placements and interim contractors.
5.RPO offers scalable recruitment outsourcing solutions leveraging customized technology and talent insights. The Company's scalable solutions, built on science and powered by best-in-class technology and consulting expertise, enables the Company to act as a strategic partner in clients’ quest for superior recruitment outcomes and better candidate fit.
Executive Search is managed by geographic regional leaders. Worldwide operations for Consulting, Digital, Professional Search & Interim and RPO are managed by their Chief Executive Officers. The Executive Search geographic regional leaders and the Chief Executive Officers of Consulting, Digital, Professional Search & Interim and RPO report directly to the Chief Executive Officer of the Company. The Company also operates Corporate to record global expenses.
The Company evaluates performance and allocates resources based on the Company’s CODM review of (1) fee revenue and (2) adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). To the extent that such costs or charges occur, Adjusted EBITDA excludes restructuring charges, integration/acquisition costs, certain separation costs and certain non-cash charges (goodwill, intangible asset and other impairment charges). The CODM is not provided asset information by reportable segment.
Financial highlights are as follow:
Year Ended April 30,
202320222021
Consolidated
(in thousands)
Fee revenue$2,835,408 $2,626,718 $1,810,047 
Total revenue$2,863,836 $2,643,455 $1,819,946 
Net income attributable to Korn Ferry$209,529 $326,360 $114,454 
Net income attributable to noncontrolling interest3,525 4,485 1,108 
Other (income) loss, net(5,261)11,880 (37,194)
Interest expense, net25,864 25,293 29,278 
Income tax provision82,683 102,056 48,138 
Operating income316,340 470,074 155,784 
Depreciation and amortization68,335 63,521 61,845 
Other income (loss), net5,261 (11,880)37,194 
Integration/acquisition costs14,922 7,906 737 
Impairment of fixed assets4,375 1,915 — 
Impairment of right of use assets5,471 7,392 — 
Restructuring charges, net42,573 — 30,732 
Adjusted EBITDA(1)
$457,277 $538,928 $286,292 
_______________________________
(1)Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets, and restructuring charges, net.
Financial highlights by reportable segments are as follows:
Year Ended April 30, 2023
Fee revenueTotal revenue
Adjusted EBITDA(1)
(in thousands)
Consulting$677,001 $686,979 $108,502 
Digital354,651 354,967 97,458 
Executive Search:
North America562,139 568,212 140,850 
EMEA187,014 188,114 31,380 
Asia Pacific95,598 95,956 24,222 
Latin America31,047 31,054 9,370 
Professional Search & Interim503,395 507,058 110,879 
RPO424,563 431,496 52,588 
Corporate— — (117,972)
Consolidated$2,835,408 $2,863,836 $457,277 
_______________________________
(1)Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets, and restructuring charges, net.
Year Ended April 30, 2022
Fee revenueTotal revenue
Adjusted EBITDA(1)
(in thousands)
Consulting$650,204 $654,199 $116,108 
Digital349,025 349,437 110,050 
Executive Search:
North America605,704 609,258 181,615 
EMEA182,192 182,866 31,804 
Asia Pacific118,596 118,705 35,105 
Latin America29,069 29,079 9,089 
Professional Search & Interim297,096 297,974 106,015 
RPO394,832 401,937 59,126 
Corporate— — (109,984)
Consolidated$2,626,718 $2,643,455 $538,928 
______________________________
(1)Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs, impairment of fixed assets and impairment of right-of-use assets.
Year Ended April 30, 2021
Fee revenueTotal revenue
Adjusted EBITDA(1)
(in thousands)
Consulting$515,844 $517,046 $81,522 
Digital287,306 287,780 86,095 
Executive Search:
North America397,275 399,104 98,099 
EMEA138,954 139,213 11,742 
Asia Pacific83,306 83,463 16,676 
Latin America17,500 17,500 1,289 
Professional Search & Interim130,831 131,080 36,934 
RPO239,031 244,760 32,477 
Corporate— — (78,542)
Consolidated$1,810,047 $1,819,946 $286,292 
_______________________________
(1)Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes, integration/acquisition costs and restructuring charges, net.
Fee revenue attributed to an individual customer or country, other than the U.S. in fiscal year 2023 and 2022, and the U.S and United Kingdom in fiscal year 2021, did not account for more than 10% of the total fee revenue in those fiscal years. Fee revenue classified by country in which the Company derives revenues are as follows:
Year Ended April 30,
202320222021
(in thousands)
U.S.$1,568,119 $1,348,377 $837,682 
United Kingdom255,797 247,617 189,893 
Other countries1,011,492 1,030,724 782,472 
Total fee revenue$2,835,408 $2,626,718 $1,810,047 
Other than the U.S. in fiscal 2023 and 2022, and the U.S. and United Kingdom in fiscal 2021, no single country had over 10% of the total long-lived assets, excluding financial instruments and tax assets. Long-lived assets, excluding financial instruments and tax assets, classified by location of the controlling statutory country are as follows:
Year Ended April 30,
202320222021
(in thousands)
U.S.(1)
$186,220 $185,228 $182,218 
United Kingdom22,893 26,711 34,081 
Other countries95,453 93,967 89,600 
Total long-lived assets$304,566 $305,906 $305,899 
_______________________________
(1)Includes Corporate long-lived assets