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Segments
 6 Months Ended
Oct. 31, 2022
Segment Reporting [Abstract]  
Segments SegmentsIn the past year, the Company has allocated capital to build out its Professional Search and Interim operations through the acquisition of Lucas Group, Patina and Infinity Consulting Solutions ("ICS"). 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 has begun 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 organization 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 supported by a comprehensive range of 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 our work and thinking in the next, to help clients execute their strategy in a digitally enabled world.
2.Digital delivers scalable tech-enabled solutions designed to identify the best structures, roles, capabilities and behaviors to drive businesses forward. Our digital products give clients direct access to our 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 that brings together research-based IP, proprietary assessments, behavioral interviewing with practical experience to determine the ideal organizational fit. Salary benchmarking then builds 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 at 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. Our scalable solutions, built on science and powered by best-in-class technology and consulting expertise, enable us 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 chief operating decision maker (“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 follows:
Three Months Ended October 31,Six Months Ended October 31,
2022202120222021
Consolidated
(in thousands)
Fee revenue$727,849 $639,443 $1,423,752 $1,224,838 
Total revenue$735,719 $643,398 $1,438,867 $1,231,496 
  
Net income attributable to Korn Ferry$73,541 $75,772 $150,788 $150,595 
Net income attributable to noncontrolling interest1,074 560 2,363 2,134 
Other loss (income), net9,048 (5,066)8,273 (9,513)
Interest expense, net7,098 6,365 14,710 11,791 
Income tax provision28,886 26,145 55,112 50,024 
Operating income119,647 103,776 231,246 205,031 
Depreciation and amortization17,093 15,633 33,322 31,277 
Other (loss) income, net(9,048)5,066 (8,273)9,513 
Integration/acquisition costs3,411 1,084 7,016 1,084 
Impairment of fixed assets— 1,915 — 1,915 
Impairment of right of use assets— 7,392 — 7,392 
Adjusted EBITDA(1)$131,103 $134,866 $263,311 $256,212 
___________________
(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.
Financial highlights by reportable segments are as follows:
Three Months Ended October 31,
20222021
Fee revenueTotal revenueAdjusted EBITDA Fee revenueTotal revenueAdjusted EBITDA
(in thousands)
Consulting$173,092 $175,845 $31,089 $164,893 $165,732 $30,061 
Digital94,329 94,577 27,524 88,639 88,712 28,556 
Executive Search:      
North America142,485 144,147 37,969 158,197 159,082 48,907 
EMEA44,645 44,919 8,081 42,434 42,571 7,663 
Asia Pacific23,408 23,523 5,834 28,257 28,267 8,201 
Latin America7,821 7,822 2,607 6,571 6,572 1,366 
Professional Search & Interim134,743 135,762 32,457 54,559 54,702 21,825 
RPO107,326 109,124 16,004 95,893 97,760 14,433 
Corporate— — (30,462)— — (26,146)
Consolidated$727,849 $735,719 $131,103 $639,443 $643,398 $134,866 
Six Months Ended October 31,
20222021
Fee revenueTotal revenueAdjusted EBITDAFee revenueTotal revenueAdjusted EBITDA
(in thousands)
Consulting$339,576 $344,580 $60,639 $313,371 $314,739 $56,902 
Digital178,090 178,392 51,702 169,310 169,393 54,188 
Executive Search:
North America294,029 297,031 81,718 296,875 298,382 92,237 
EMEA91,701 92,248 16,596 85,181 85,414 15,248 
Asia Pacific49,789 49,975 13,185 56,960 56,999 16,521 
Latin America15,629 15,631 5,224 13,347 13,351 3,720 
Professional Search & Interim233,690 235,814 61,618 106,396 106,634 41,264 
RPO221,248 225,196 33,713 183,398 186,584 28,961 
Corporate— — (61,084)— — (52,829)
Consolidated$1,423,752 $1,438,867 $263,311 $1,224,838 $1,231,496 $256,212