Q4 2024 Korn Ferry Earnings Call

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Operator: Your conference will begin momentarily. Please continue to hold. Ladies and gentlemen, thank you for standing by and welcome to the Korn Ferry fourth quarter and fiscal year-end April 30, 2024 conference call. At this time, all participants are in a listen-only mode.

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Operator: Ladies and gentlemen, thank you for standing by and welcome to the Korn Ferry 4th quarter in fiscal year end, April 30th, 2024, conference call. At this time, all participants are in a listen-only mode. Following the prepared remarks, we will 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 website at cornferry.com, a copy of the financial presentation that we will be reviewing with you today.

Operator: Following the prepared remarks, we will 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 website at KornFerry.com a copy of the financial presentations that we will be reviewing with you today. Before we turn the call over to your host, Mr. Gary Burnison, I will first read a cautionary statement to investigate.

Gary D. Burnison: Ladies and gentlemen, thank you for standing by and welcome to the Korn Ferry fourth quarter and fiscal year end April 30th 2024 conference call. At this time all participants are in a listen only mode. Following the prepared remarks, we will conduct a question and answer session.

Speaker Change: 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 Korn Ferry Dot com a copy of the financial presentation that we will be reviewing with you today before we turn the call over to your host Mr. Gary Burner thing, let me first read a cautionary statement to.

Operator: Before we turn the call over to your host, Mr. Gary Burnison, let me first read a cautionary statement to investors. Certain statements made in the call today, such as those relating to future performance, plans and goals, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, investors are cautioned not to place undue reliance on such statements. Actual results in future periods made differently from those currently expected or desired because of a number of risks and uncertainties which are beyond the company's control.

Operator: Certain statements made in the call today, such as those relating to future performance, plans, and goals, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions... Investors are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties which are beyond the company's control.

Speaker Change: Investors.

Operator: Additional information, Such risks and uncertainties can be found in the release relating to this presentation and in the periodic and other reports filed by the company with the FEC, including the company's soon-to-be-filed annual report for fiscal year 2024. Also, some of the comments today may reference non-GAAP financial measures, such as constant currency amounts, EBITDA, and adjusted EBITDA. Additional information concerning these measures, including reconciliations to the most directly comparable GAAP financial measure, is contained in the financial presentation and earnings release relating to this call, both of which are posted in the Investor Relations section of the company's website at www.kornferry.com. With that, I'll turn the call over to Gary Burnison. Please go ahead, Gary.

Speaker Change: Certain statements made in the call today, such as those relating to future performance plans and goals constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, although the company believes the expectations reflected in such forward looking statements are based on reasonable assumptions.

Speaker Change: Investors are cautioned not to place undue reliance on such statements actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, which are beyond the company's control additional information concerning such risks and uncertainties.

Operator: Additional information concerning such risks and uncertainties can be found in the release relating to this presentation and in the periodic and other reports filed by the company with the SEC, including the company's soon-to-be-filed annual report for fiscal year 2024.

Speaker Change: Can be found in the release relating to this presentation and in the periodic and other reports filed by the company with the SEC, including the company's is soon to be filed annual report for fiscal year 2024.

Operator: Also, some of the comments today may reference non-GAAP financial measures, such as content currency amounts, EBITDA, and adjusted EBITDA. Additional information concerning these measures, including reconciliation to the most directly comparable gap financial measure, is contained in the financial presentation and earnings release relating to this call, both of which are posted in the investor-relation section of the company's website at www.cornferry.com.

Speaker Change: Also some of the comments today may reference non-GAAP financial measures such as constant currency amounts EBITDA and adjusted EBITDA additional information concerning these measures, including reconciliations to the most directly comparable GAAP financial measure is contained in the financial presentation and earnings release.

Speaker Change: Relating to this call both of which are posted in the Investor Relations section of the company's website at Www Dot Korn ferry dot com with that I'll turn the call over to Gary Bernstein. Please go ahead Gary.

Operator: With that, I'll turn the call over to Gary Bernison. Please go ahead, Gary.

Gary D. Burnison: Thanks, Leah. Good morning, good afternoon, everybody. Our team, I'm joined by Bob, Tiffany, and Gregg. They'll get into the results in more detail. But earnings and profitability were really strong in the fourth quarter. They increased year over year and sequentially. We came in with an adjusted EBITDA margin of over 16%, which is our fourth consecutive quarter of profitability improvement. In fact, when you adjust for the mixed change of us getting into a brand new business line that has a huge market opportunity for us in the interim, our adjusted EBITDA margin is about 300 basis points higher than pre-pandemic levels.

Gary Burnison: Thanks, Lee.

Gary D. Burnison: Thanks, Leah good good morning, good afternoon, everybody.

Gary Burnison: Good morning, good afternoon, everybody. Our team, I'm joined by Bob and Tiffany Greg. I don't get into the results in more detail, but the earnings and profitability were really strong in the fourth quarter. They increased year over year and sequentially. We came in with an adjusted EBITDA margin of over 16%, which is our fourth consecutive quarter of profitability improvement. In fact, when you adjust for the mid-chain, the next change of us getting into a brand new business line that has a huge market opportunity for us interim, our adjusted EBITDA margins about 300 basis points higher than pre-pandemic levels, and the revenues way higher compared to four years ago, probably 35%, 40% higher for sure.

Gary: I'm joined by Bob and Tiffany Greg.

Speaker Change: Get into the results in more detail, but the earnings and profitability were really strong in the fourth quarter.

Speaker Change: They increased year over year and sequentially. We came in with an adjusted EBITDA margin of over 16%, which is our fourth consecutive quarter of profitability improvement and in fact, when you adjust for the mix change mix change about getting into a brand new business line that has a huge market opportunity for <unk>.

Speaker Change: This interim our adjusted EBITDA margin is about 300 basis points higher.

Speaker Change: Than pre pandemic levels in the revenues way hired compared to four years ago, probably 35% to 40% higher.

Gary D. Burnison: And the revenue is way higher compared to four years ago, probably 35%, 40% higher for sure. Much has changed over the last four years, not only in how we live but also in how we relate to others and how we work. The one thing that hasn't changed, though, is our purpose. [inaudible] Perform and Transform, a company by Korn Ferry that sits at the intersection of... [inaudible] throughout the year. It all begins, though, with data.

For sure much has changed over the last four years not only in how we live.

Gary Burnison: Much has changed over the last four years, not only in how we live, but also in how we relate to others and how we work. The one thing that hasn't changed, though, is our purpose to enable people and organizations to be more of that, and is the premier organizational consulting firm in the world. We're a company that impacts the lives in terms of tens of thousands of people across thousands of organizations, a company that continues to innovate and align our business to help our clients. Perform and Transform, a company, Korn Ferry that sits at the intersection of a client's business strategy, their talent, ultimately drives superior performance.

Speaker Change: But also in how we relate to others and how we work the one thing that hasn't changed though is our purpose to enable people and organizations to be more of that and is the premier organizational consulting firm in the world. We're a company that impacts the lives and claims of tens of thousands of people.

Speaker Change: Ross thousands of organizations a company that continues to innovate and align our business to help our clients perform and transform our company.

Speaker Change: For dairy that sits at the intersection of a cup of our clients' business strategy their talent.

Speaker Change: And then we drive superior performance, it's clear that our strategy is working the.

Gary Burnison: It's clear that our strategy is working; the sickly sensitive talent acquisition offerings are being built. Although that's complemented by digital, they've both generated very, very solid performance during the year. It all begins with data. 109 million assessments we've done, 6 million professionals develop, a million people put to work, more than 10,000 success profiles, compensation information on 30 million professionals covering 30,000 organizations around the world, and more importantly, our incredible colleagues who transformed that data into unique and scalable insights and compelling solutions for our clients. And nowhere is that more pronounced than in our marquee and regional account program, which represents 37% of our portfolio for the fiscal year.

Speaker Change: The cyclically sensitive talent acquisition offerings are being buoyed by growth and stability from our diversified offerings, particularly consulting.

Speaker Change: Although that's complemented by digital are they both generated very very solid performance during the year.

Speaker Change: It all begins with data <unk>.

Gary D. Burnison: 109 million assessments we've done, six million professionals developed, a million people put to work, more than 10,000 success profiles, compensation information on 30 million professionals covering 30,000 organizations around the world, and more importantly, our incredible colleagues, who transformed that data into unique and scalable insights and compelling solutions. For more information, please visit www.fema.gov, to the expertise of our colleagues.

Speaker Change: <unk> 109 million assessments, we've done.

Speaker Change: 6 million professionals develop a million people put to work more than 10000 success profiles compensation information on 30 million professionals, covering 30000 organizations around the world and more importantly, our incredible colleagues.

Speaker Change: To transform that data in the unique and scalable insights.

Speaker Change: And compelling solutions.

Speaker Change: For our clients and nowhere is that more pronounced than in our marquee and regional account program, which represents 37% of our portfolio.

Speaker Change: For the fiscal year and these accounts benefit from the breadth and depth of all things core for Korn ferry from our IPA or a full suite of offerings to.

Gary Burnison: And these accounts benefit from the breadth and depth of all things Korn Ferry, from our IPA to our full suite of offerings, to the expertise of our colleagues, and to put that into perspective, today the growth from these accounts is our pace and the rest of the company. And almost all of our marquee clients use at least three of our business lines, which is a key contributor to our success in cross line of business referrals. And we exit the year at about 26% of total free revenue in cross business referrals. And everything we do, we are really striving hard to work more independently, more horizontally, less vertically, scaling our data, insights, and offerings.

Speaker Change: The expertise of our colleagues and to put that into perspective today. The growth from these accounts is outpacing the rest of the company.

Gary D. Burnison: And to put that into perspective, today the growth from these accounts is outpacing the rest of the company. And almost all of our marquee clients use at least three of our business lines, which is a key contributor to our success in cross-line business referrals, and we exit the year at about 26% of total fee revenue from cross-business referrals. In everything we do, we are really striving hard to work more interdependently, more horizontally, less vertically, scalability of our data, insights, and offerings, purpose, our vision, and strategy, I think really puts us at the threshold of even greater opportunity regardless of the environment from one cycle to the next. So with that very high-level overview, I will now turn it over to Bob. Great. Thanks, Gary, and good afternoon or good morning.

Speaker Change: And almost all of our marquee clients use at least three of our business lines.

Speaker Change: As a key contributor to our success in cross line of business referrals, and we exited the year at about 26%.

Speaker Change: Total fee revenue.

Speaker Change: And cross business referrals and everything we do we are really striving hard to work more interdependent way.

Speaker Change: More horizontally and vertically.

Speaker Change: Scaling our dad.

Speaker Change: Insights and offerings, our purpose, our vision and strategy I think really put us at the threshold of even greater opportunity regardless of the environment from one cycle to the next so with that very high level overview I will now turn it over to Bob.

Gary Burnison: Our purpose, our vision, strategy. I think really put us at the threshold of even greater opportunity. Regardless of the environment from one cycle to the next.

Gary Burnison: So, with that, very high-level overview, I will now turn it over to Bob.

Bob Rozek: Great. Thanks, Gary, and good afternoon or good morning. We ended fiscal year 24 on a high note, generating $691 million of fee revenue in the fourth quarter. And that was at the upper end of our guidance. And more importantly, we delivered really strong earnings and profitability. Adjusted EBITDA over $112 million at a 16.3% margin. And that margins up nearly 300 basis points year over year. Additionally, our adjusted fully diluted earnings per share were $1.26. And get fully diluted earnings per share were $1.24. As Gary indicated, the fourth quarter marked a full year of quarter-sequential margin expansion.

Great. Thanks, Gary and good afternoon or good morning.

Bob: We ended fiscal year 24 on a high note, generating $691 million of fee revenue in the fourth quarter. And that was at the upper end of our guidance, and more importantly, we delivered really strong earnings and profitability. Adjusted EBITDA was over $112 million at a 16.3% margin, and that margin is up nearly 300 basis points year over year. Additionally, our adjusted fully diluted earnings per share were $1.26.

Robert P. Rozek: We ended fiscal year 'twenty four on a high note generating $691 million of fee revenue in the fourth quarter and that was at the upper end of our guidance and more importantly, we delivered.

Robert P. Rozek: Really strong earnings and profitability adjusted EBITDA over $112 million.

Robert P. Rozek: At a 16, 3% margin.

Robert P. Rozek: That margin is up nearly 300 basis points year over year.

Robert P. Rozek: Additionally, our adjusted fully diluted earnings per share were $1 26.

Robert P. Rozek: GAAP fully diluted earnings per share were $1 24.

Bob: And GAAP fully diluted earnings per share were $1.24. As Gary indicated, the fourth quarter marked a full year of quarter-sequential margin expansion. And it really highlights our strong cost management and improvement in our consultant and execution staff productivity. Overall, Fiscal 24 was another example of the success of our long-term diversification strategy and really a clear demonstration of the relevancy of our solutions. Additionally, our growing earnings power in today's environment, which is pretty challenging, also demonstrates the resilience of our business model and the diligent execution of our strategy by all of our colleagues.

As Gary indicated the fourth quarter marked a full year of quarter sequential margin expansion and it really highlights our strong cost management and improvements in our consultant and execution staff productivity.

Bob Rozek: And it really highlights our strong cost management and improvement in our consultant and execution staff productivity. Overall, fiscal 24 was another example of the success of our long-term diversification strategy and really a clear demonstration of the relevancy of our solutions. Additionally, our growing earnings power in today's environment, which is pretty challenging, also demonstrates the resilience of our business model and the diligent execution of our strategy by all of our colleagues.

Robert P. Rozek: Overall fiscal 'twenty four it was another example of the success of our long term diversification strategy and really a clear demonstration of the relevancy of our solutions. Additionally.

Robert P. Rozek: Additionally, our growing earnings power in today's environment, which is pretty challenging also demonstrates the resilience of our business model and the diligent execution of our strategy by all of our colleagues.

Bob: Now, let's take a step back and look at the pieces that really helped shape the year. One of our key growth drivers, marketing and regional accounts, which represent over a billion dollars, or 37% of our FY24 total fee revenue, grew 3%, even though our overall business was down 3% for the full year, year-over-year. These accounts include many of our largest clients, with several accounts exceeding $10 million in annual fee revenue.

Bob Rozek: Now, let's take a step back and look at the pieces that really help shape the year. One of our key growth drivers, Markey and regional accounts represents over a billion dollars or 37 percent of our FY24 total fee revenue, through 3 percent, even though our overall business was down 3 percent for the full year, year over year. These accounts include many of our largest clients, with several accounts exceeding 10 million dollars in annual fee revenue, and those of the accounts or clients that are consuming multiple lines of our business, to our less technical segments, consulting and digital, both reached all-time highs in fee revenue for all of fiscal 24, underscoring both relevance and durability of their solution sets.

Speaker Change: Now, let's take a step back and look at the pieces that really help shape. The year one of our key growth drivers marquee and regional accounts, which represents over $1 billion or 37% of our FY 'twenty four total fee revenue grew 3%, even though our overall business was down 3% for the full year.

Speaker Change: Year over year.

Speaker Change: These accounts include many of our largest clients with several accounts exceeding $10 million in annual fee revenue and those are the accounts are clients that are consuming multiple lines of our business.

Bob: And those are the accounts or clients that are consuming multiple lines of our business. Two of our less typical segments, consulting, and digital, both reached all-time highs in fee revenue for all of fiscal 24, underscoring both the relevance and durability of their solution sets. Additionally, our full-year average bill rate for consulting increased 11% year-over-year, and we exited the year at $437 per hour.

Speaker Change: Two of our less cyclical segments consulting and digital both reached all time highs in fee revenue for all of fiscal 'twenty four underscoring both relevance and durability of their solution sets. Additionally, our full year average bill rate for consulting increased 11% year over year.

Bob Rozek: Additionally, our full year average bill rate for consulting increased 11 percent year over year, and we visited the year at $437 per hour. Now, across the business consultant and execution staff, productivity continued to improve our productivity in the fourth quarter, measured by fee revenue per head count, was up 31 percent versus the third quarter of FY20, which is a quarter of right before the pandemic hit. And finally, fee revenue generated by cross lines of business referrals was about 25 percent of total fee revenue in FY24, and it grew so clenchily in both Q3 and Q4, and as Gary mentioned, we exited the year at about 26 percent.

Speaker Change: <unk>.

Speaker Change: And we exited the year at $437 per hour now.

Speaker Change: Now across the business consultant and execution staff productivity continued to improve.

Bob: Our productivity in the fourth quarter measured by fee revenue per headcount was up 31% versus the third quarter of FY20, which is a quarter right before the pandemic hit. And finally, fee revenue generated by cross-line business referrals was about 25% of total fee revenue in FY24, and it grew sequentially in both Q3 and Q4. And, as Gary mentioned, we exited the year at about 26%. All of these are important factors that help drive stability in our fee revenue despite the cyclical moderation in the talent acquisition market.

Speaker Change: Our productivity in the fourth quarter measured by fee revenue per head count was up 31% versus the third quarter of FY, 'twenty, which is a quarter right before the pandemic hit.

Speaker Change: And finally fee revenue generated by cross line of business referrals.

Speaker Change: Was about 25, 25% of total fee revenue in FY 'twenty four and it grew sequentially in both Q3 and Q4.

Speaker Change: And as Gary mentioned, we exited the year at about 26%.

Bob Rozek: All of these are important factors that help drive stability in our fee revenue despite the cyclical moderation in the talent acquisition market, and they were also key factors in driving the improvement in our earnings and profitability throughout fiscal year 24.

Gary: All of these are important factors that helped drive stability in our fee revenue. Despite the cyclical moderation in a talent acquisition market and they were also key factors in driving the improvement of our earnings and profitability throughout fiscal year 'twenty four.

Bob: And they're also key factors in driving the improvement in our earnings and profitability throughout fiscal year 24. Last, I'd like to provide an update on our capital deployment. Return of capital to shareholders has been a priority for Korn Ferry, and in fiscal 24, we returned $107 million to shareholders through dividends and share repurchases. In the fourth quarter, we repurchased approximately $23 million worth of stock, about 365,000 shares, bringing our total share repurchases for FY 24 to about 930,000 shares.

Bob Rozek: Last, I'd like to provide an update on our capital deployment. Return of capital shareholders has been a priority for Korn Ferry, and in fiscal 24, we return to $17 million to shareholders through dividends and share repurchases. In the fourth quarter, we repurchase approximately $23 million worth of stock, about 365,000 shares, brought our total share repurchases for FY24 to about 930,000 shares. In addition to the 83 percent increase in our dividend earlier this year, our board has just approved another increase in our dividend of four cents per share; it's about 12 percent increase, and that brings our quarterly dividend to 37 cents per share, which is actually double what it was at the beginning of the year.

Gary: Last I'd like to provide an update on our capital deployment return of capital to shareholders has been a priority for Korn ferry and in fiscal 'twenty, four we returned $107 million to shareholders through dividends and share repurchases in the fourth quarter, we repurchased approximately $23 million.

Speaker Change: With the stock that's about 365000 shares.

Speaker Change: But our total share repurchases for FY 'twenty four to about 930000 shares.

Bob: In addition to the 83% increase in our dividend earlier this year, our board has just approved another increase in our dividend of $0.04 per share. It's about a 12% increase. And that brings our quarterly dividend to $0.37 per share, which is actually double what it was at the beginning of the year. All of our capital allocation initiatives really speak to the confidence we have in the outlook for our business and our future earnings power. Now, I'm going to turn it over to Gregg, who will take you through some overall company financial highlights. All right.

Speaker Change: In addition to the 83% increase in our dividend earlier. This year. Our board has just approved another increase in our dividend of <unk> <unk> per share. It's about a 12% increase net brings our quarterly dividend to <unk> 37 per share, which is actually double what it was at the beginning.

Speaker Change: Of the year.

Bob Rozek: All of our capital allocation initiatives really speak to the confidence we have in the outlook for our business and our future earnings power.

Speaker Change: All of our capital allocation initiatives really speak to the confidence we have in the outlook for our business and our future earnings power.

Gregg Kvochak: Now I'm going to turn it over to Greg, who will take you through some overall company financial highlights. Okay, thanks, Bob. Fee revenue in the fourth quarter grew to $691 million, with a seasonally strong and stable demand for consulting and digital, complementing seasonally strong and stabilizing revenue for our permanent placement, talent acquisition solution.

Greg: Now I'm going to turn it over to Greg who will take you through some overall company financial highlight okay. Thanks, Bob.

Gregg: Thanks, Bob. Fee revenue in the fourth quarter grew to $691 million with seasonally strong and stable demand for consulting and digital, complementing seasonally strong and stabilizing revenue for our permanent placement talent acquisition solutions. By line of business, consulting fee revenue grew 4% year over year, digital was flat, and fee revenue for our talent acquisition solutions of executive search, professional search, and Interim and RPO combined were down 10% year over year, but up 1% sequentially. Within Talent Acquisition, Executive Search was down 6% year-over-year and flat sequentially. The Permanent Placement portion of PSI was down 10% year-over-year and up 7% sequentially.

Greg: Fee revenue in the fourth quarter grew to $691 million with the seasonally strong and stable demand for consulting and digital complementing seasonally strong and stabilizing revenue for our permanent placement talent acquisition solutions.

Gregg Kvochak: Americans. By line of business, consulting fee revenue grew 4% year-over-year, digital was flat, and fee revenue for our talent acquisition solutions of executive search, professional search, and interim, and RPO combined were down 10% year-over-year, but up 1% sequentially. Within talent acquisition, executive search was down 6% year-over-year and flat sequentially. The permanent placement portion of PSI was down 10% year-over-year, and up 7% sequentially. RPO was down 10% year-over-year, and up 10% sequentially, while the interim portion of PSI was down 18% year-over-year, but down only 8% sequentially. Consolidated new business in the fourth quarter excluding RPO was down 2% year-over-year at constant currency.

Greg: By line of business consulting fee revenue grew 4% year over year digital was flat and fee revenue for our talent acquisition solutions of executive search professional search.

Speaker Change: An interim and <unk> combined were down 10% year over year, but up 1% sequentially.

Speaker Change: Within talent acquisition executive search was down 6% year over year and flat sequentially. The permanent placement portion of P. F.

Speaker Change: It was down 10% year over year and up 7% sequentially.

Gregg: RPO was down 10% year-over-year and up 10% sequentially, while the Interim portion of PSI was down 18% year-over-year but down only 8% sequentially. Consolidated new business in the fourth quarter, excluding RPO, was down 2% year-over-year at constant currency. Like fee revenue, stable new business growth in consulting, digital, and executive search was offset by slower demand for professional search and interim solutions. Consulting new business was flat year over year, digital was up 4%, executive search was up 1%, and professional search in interim was down 12%, with permanent placement stable and essentially flat year over year, and interim off 14%.

Speaker Change: <unk> was down 10% year over year and up 10% sequentially.

Speaker Change: While the interim portion of P. S I was down 18% year over year, but down only 8% sequentially.

Speaker Change: Consolidated new business in the fourth quarter, excluding <unk> was down 2% year over year at constant currency.

Gregg Kvochak: Like fee revenue, stable new business growth in consulting, digital, and executive search was offset by slower demand for professional search and interim solutions. At constant currency, consulting new business was flat year-over-year; digital was up 4%; executive search was up 1%; and professional search and interim was down 12%, with permanent placement stable and essentially flat year-over-year, and interim off 14. For RPO, new business in the fourth quarter was strong at 128 million dollars, which includes 61 million dollars over renewals and extensions, and $67 million of new logo wins. As Bob said, earnings and profitability were higher in the fourth quarter, driven by strong cost control and greater consultant and execution staff productivity across all lines of business.

Speaker Change: Like fee revenue stable, new business growth in consulting digital and executive search was offset by slower demand for professional surgeon interim solutions.

Speaker Change: At constant currency.

Speaker Change: Consulting new business was flat year over year digital was up 4% executive search was up 1% and professional search and interim was down 12% with permanent placement stable and essentially flat year over year and interim off 14%.

Gregg: For RPO, new business in the fourth quarter was strong at $128 million, which included $61 million of renewals and extensions and $67 million of new logo wins. As Bob said, earnings and profitability were higher in the fourth quarter, driven by strong cost control and greater consultant and execution staff productivity across all lines of business. Adjusted EBITDA for the fourth quarter grew $14 million or 15% year-over-year and was up $111 million or 10% sequentially to over $112 million.

Robert P. Rozek: For RP O new business in the fourth quarter was strong at $128 million, which includes $61 million of renewals and extensions and $67 million of new logo wins.

Robert P. Rozek: As Bob said earnings and profitability.

Bob: Higher in the fourth quarter, driven by strong cost control and greater consultant and execution stack staff productivity across all lines of business.

Gregg Kvochak: Adjusted EBITDA on the fourth quarter grew $14 million or 15% year-over-year, and was up $111 million or 10% sequentially to over $112 million. Adjusted EBITDA margin grew to 16.3% in the fourth quarter and has now improved sequentially for four consecutive quarters. Adjusted fully diluted earnings per share in the fourth quarter will $1.26, up 25 cents or 25% year-over-year and up 18% sequentially. Fully diluted earnings per share measured by GAAP were $1.24 in the fourth quarter. The fourth quarter was positively impacted by a lower tax rate of 24.6%, which benefited both adjusted and GAAP fully diluted earnings per share by approximately 4 to 5 cents.

Speaker Change: Adjusted EBITDA in the fourth quarter grew $14 million or 15% year over year, and was up $111 million or 10% sequentially to over $112 million.

Gregg: Adjusted EBITDA margin grew to 16.3% in the fourth quarter and has now improved sequentially for four consecutive quarters. Adjusted fully diluted earnings per share in the fourth quarter were $1.26, up 25 cents or 25% year over year and up 18% sequentially. Fully diluted earnings per share measured by GAAP were $1.24 in the fourth quarter.

Speaker Change: Adjusted EBITDA margin grew to 16, 3% in the fourth quarter.

And has now improves sequentially for four consecutive quarters.

Speaker Change: Adjusted fully diluted earnings per share in the fourth quarter were $1 26.

Speaker Change: Up 25 cents or 25% year over year and up 18% sequentially.

Speaker Change: Fully diluted earnings per share measured by GAAP were $1 24 in the fourth quarter.

Tiffany: The fourth quarter was positively impacted by a lower tax rate of 24.6%, which benefited both adjusted and GAAP fully diluted earnings per share by approximately $0.04 to $0.05. Our investable cash position at the end of the fourth quarter grew $110 million sequentially to $606 million. Our capital allocation continues to be balanced. For all of Fiscal 24, we deployed $172 million of cash, investing $47 million in capital expenditures, using $19 million for debt service, and returning $107 million to shareholders in combined dividends and share repurchase. I'll turn the call over to Tiffany to review our operating segments in more detail. Thanks, Gregg.

Speaker Change: Fourth quarter was positively impacted by a lower tax rate of 24, 6%, which benefited both adjusted and GAAP fully diluted earnings per share by approximately 4% to five.

Gregg Kvochak: Our investable cash position at the end of the fourth quarter grew $110 million sequentially to $606 million. Our capital allocation continues to be balanced. For all Episcopal 24, we deployed $172 million of cash, investing $47 million in capital expenditures, using $19 million for debt service, and returning $107 million to shareholders in combined dividends and share reports.

Speaker Change: Our investable cash position at the end of the fourth quarter grew $110 million sequentially to $606 million.

Speaker Change: Our capital allocation continues to be balanced.

Speaker Change: For all of fiscal 'twenty, four we deployed $172 million of cash investing $47 million and capital expenditures using $19 million for debt service and returning $107 million to shareholders in combined dividends and share repurchases.

Operator: Justice.

Tiffany Louder: That will turn the call over to Tiffany to review your offer and segments in more detail. The overall pipeline for digital remains strong as we head into the next fiscal year. For consulting, be revenue in the 4th quarter with 182 million, which was up approximately 4% year over year at actual rates, and up 5% at constant current. Be revenue growth was strongest in assessment and succession, which increased 10% year over year. Consulting's average hourly bill remained in line with the previous quarter and is up $47 an hour, or 12% from one year ago. Adjusted EBITDA margins continued to improve, increasing 110 basis points sequentially and by 380 basis points year over year, driven by a mix of higher billing rates and increased utilization rates.

Speaker Change: That I will turn the call over to Tiffany to review, our operating segments in more detail.

Gregg Kvochak: Thanks, Greg.

Tiffany: Starting with KF Digital, global fee revenue in the fourth quarter was $91 million, which was flat year-over-year at actual rates and up 1% at constant currency. Digital Subscription and License Fee Revenue in the fourth quarter was $33 million, which was approximately 36% of fee revenue for the quarter and up 3% year-over-year. Global New Business for KF Digital was $104 million, with $39 million, or 37% of the total, tied to subscription and license sales.

Tiffany Louder: Starting with KF digital global fee revenue in the fourth quarter with $91 million, which was flat year over year at actual rates and up 1% at constant currency.

Tiffany: Digital subscription and license fee revenue in the fourth quarter with $33 million, which was approximately 36% of fee revenue for the quarter and up three.

Speaker Change: <unk>, 3% year over year.

Speaker Change: Global New business for KF digital was $104 million with $39 million or 37% of the total tied to subscription and license sales.

Tiffany: The overall pipeline for digital remains strong as we head into the next fiscal year. For consulting, fee revenue in the fourth quarter was $182 million, which was up approximately 4% year-over-year at actual rates and up 5% at constant currency, and an all-time high for the sector. Fee revenue growth was strongest in assessment and succession, which increased 10% year-over-year. Consulting's Average Hourly Bill remained in line with the previous quarter and is up.

Speaker Change: The overall pipeline for digital remained strong as we head into the next fiscal year.

Four consulting fee revenue in the fourth quarter with $182 million, which was up approximately 4% year over year at actual rates and up 5% at constant currency and an all time high for the segment.

Speaker Change: Fee revenue growth was strongest in assessment and succession.

Speaker Change: Which increased 10% year over year.

Consulting the average hourly bill.

Speaker Change: <unk> remained in line with the previous quarter and is up.

Tiffany: $47 an hour, or 12% from one year ago. Adjusted EBITDA margins continue to improve, increasing 110 basis points sequentially and by 380 basis points year over year, driven by a mix of higher billing rates and increased utilization. Additionally, global new business for consulting in the fourth quarter was essentially flat year over year and strongest in North America with 5%. Total fee revenue in professional search and interim in the fourth quarter was $129 million, down $23 million, or 15% year-over-year.

Speaker Change: $47, an hour or 12% from one year ago.

Speaker Change: Adjusted EBITDA margins continued to improve increasing 110 basis points sequentially and by 380 basis points year over year, driven by a mix of higher billing rates and increased utilization rates. Additionally, global new business for consulting in the fourth quarter was essentially flat year over year.

Tiffany Louder: Additionally, global new business for consulting in the 4th quarter was essentially flat year over year and strongest in North America with 5% growth.

Speaker Change: <unk> and strongest in North America with 5% growth.

Tiffany Louder: Total fee revenue and professional search in interim in the 4th quarter was 129 million, down 23 million or 15% year over year. Breaking down the quarter, year over year softness, and fee revenue was driven by an industry-wide flowdown in the interim business. Interim fee revenue was 73 million for the quarter, which was down 15 and a half million, or 18%, year over year, and down 11% when excluding a one-time client engagement wind down. Despite the flowdown in demand, Interim's average hourly bill rate has increased to a $129 per hour, which is up $5 an hour, or 4% from one year ago.

Speaker Change: Total fee revenue in professional search an interim in the fourth quarter was $129 million down $23 million or 15% year over year, breaking down the quarter year over year softness.

Tiffany: Breaking down the quarter, year-over-year stop... The revenue was driven by an industry-wide slowdown in the interim. Interim fee revenue was $73 million for the quarter, which was down $16.5 million, or 18% year-over-year, and down 11% when excluding a one-time client engagement.

Speaker Change: Fee revenue was driven by an industry wide slowdown in the interim business.

Speaker Change: Interim fee revenue was $73 million for the quarter, which was down $16 5 million or 18% year over year.

Speaker Change: And down 11% when excluding a one time client engagements wind down.

Tiffany: Despite the slowdown in demand, Interim's average hourly bill rate has increased to $129 per hour, which is up $5 an hour, or 4% from one year ago, reflective of the added value of being part of the broader Korn Ferry economy. Professional Search and Permanent Placement fee revenue of $56 million was down $7 million, or 11% year-over-year, but was up $4 million, or about 8% sequentially. Also, professional search consultant productivity is up both year over year and sequentially to approximately 670,000.

Speaker Change: Despite the slowdown in demand interim average hourly bill rate has increased $129 per hour, which is up $5 an hour or 4% from one year ago reflective of the added value of being part of the broader Korn ferry ecosystem.

Tiffany Louder: It is also reflective of the added value of being part of the broader Cornberry ecosystem. Professional search and permanent placement fee revenue of 56 million was down 7 million, or 11% year over year, but was up 4 million for about 8% sequentially. Also, professional search consultant productivity is up both year over year and sequentially to approximately 670,000 annualized.

Speaker Change: Personal search.

Speaker Change: Permanent placement fee revenue of $56 million was down $7 million or 11% year over year, but was up $4 million for about 8% sequentially also professional search consultant productivity is up both year over year and sequentially to approximately 670000 annualized.

Yes.

Tiffany Louder: New business for the combined segment during the quarter was down 12% year over year, but essentially flat sequentially. Moving on to recruitment process outsourcing. New business for the 4th quarter was 128 million, comprised of 67 million of new logos. and 61 million of renewals and extensions. The revenue in the fourth quarter totalled 89 million, which was down 111 or 10% year-over-year at actual rates and at constant currency, but up 8 million or 10% sequentially. The revenue was impacted by a moderation and hiring volume within the existing base of contracts, as well as recruiter labor hoarding conditions, which have continued in the market.

Tiffany: New business for the combined segment during the quarter was down 12% year-over-year but essentially flat. Moving on to Recruitment Process Outcomes, new business for the fourth quarter was 128 million, comprised of 67 million new logos.

New business for the combined segment during the quarter was down 12% year over year, but essentially flat sequentially.

Speaker Change: Moving onto recruitment process outsourcing.

Speaker Change: New business for the fourth quarter was $128 million.

Speaker Change: Comprised of $67 million of new logos.

Speaker Change: $61 million of renewals and extensions.

Tiffany: The revenue in the fourth quarter totaled $89 million, which was down 111 million, or 10% year-over-year at actual rates and. But up 8 million, or 10%, the revenue was impacted by a moderation in hiring volume within the existing base of contracts, as well as recruiter labor hoarding conditions, which I've continued in. Although the timing of new business can be lumpy, we believe RPO is well positioned to benefit when client hiring returns are more normalized.

Speaker Change: Revenue in the fourth quarter totaled $89 million.

Speaker Change: Which was down 111, or 10% year over year at actual rates and at constant currency.

Speaker Change: <unk> up $8 million or 10% sequentially.

Speaker Change: Fee revenue was impacted by a moderation in hiring volume within the existing base of contracts as well as recruiter vapor hoarding conditions, which have continued in the market.

Tiffany Louder: Although the timing of new business can be lumpy, we believe RPO is well positioned to benefit with client hiring returns more normalized levels. The pipeline remains strong as RPO continues to renew existing clients and win new business with a differentiated service offering in the marketplace.

Speaker Change: Although the timing of new business can be lumpy, we believe <unk> is well positioned to benefit when client hiring returns to more normalized levels.

Tiffany: The pipeline remains strong as RPO continues to renew existing clients and win new business with a differentiated service offering in the market. Finally, global fee revenue for executive search in the fourth quarter was $199 million, down 7% at actual and 6% at constant.

Speaker Change: Our pipeline remained strong at RPM continue to renew existing clients and win new business with a differentiated service offering in the marketplace.

Tiffany Louder: Finally, global fee revenue for executive search in the fourth quarter was $199 million, down 7% at actual and 6% at constant currency. Global demand for executive search has been stable, with east of the last four quarters of fee revenue near 200 million. Additionally, consulting productivity continues to improve, contributing to higher EBITDA, almost 46 million, and an adjusted EBITDA margin of 22.9%.

Finally global fee revenue for executive search in the fourth quarter was $199 million down 7% at actual.

Speaker Change: And 6% at constant currency.

Bob: Global demand for Executive Search has been stable, with each of the last four quarters of fee revenue near $200 million. Additionally, Consulting productivity continues to improve, contributing to higher EBITDA, almost 46 million in an adjusted EBITDA margin of 22.9. I will now turn the call back over to Bob to discuss our outlook for the first quarter of Fiscal 25. That's great. Thanks, Tiffany.

Mobile demand for executive search had been stable with each of the last four quarters of fee revenue near $200 million.

Speaker Change: Additionally, <unk>.

Consulting productivity continues to improve contributing to higher EBITDA, almost 46 million and an adjusted EBITDA margin.

Tiffany: 92, 9% I will now turn the call back over to Bob to discuss our outlook for the first quarter of fiscal 'twenty five it's great. Thanks, Tiffany in recent months new business growth trends have continued to be a little bit choppy in the fourth quarter, new business improved each consecutive month starting in February.

Bob Rozek: I will now turn the call back over to Bob to discuss our outlook for the first quarter of fiscal 25. That's great. Thanks, Tiffany. In recent months, new business growth trends have continued to be a little bit choppy. In the fourth quarter, new business improved each consecutive month starting in February and concluding with April, up 4% year over year, which kind of brought the full quarter essentially in line with our expectations. Starting fiscal year 25, main new business was also essentially in line with our expectations. Assuming normal historical seasonal patterns, we fully expect new business in June to grow sequentially and for July to be essentially flat to slightly down with June.

Bob: In recent months, new business growth trends have continued to be a little bit choppy. In the fourth quarter, new business improved each consecutive month, starting in February and concluding with April, up 4% year over year, which kind of brought the full quarter essentially in line with our expectations. Starting fiscal year 25, May new business was also essentially in line with our expectations, assuming normal historical seasonal patterns.

Speaker Change: Arie.

And concluding with April up 4% year over year, which kind of brought the full quarter essentially in line with our expectations.

Speaker Change: Starting fiscal year 'twenty five main new business was also essentially in line with our expectations.

Speaker Change: Assuming normal historical seasonal patterns.

Bob: We fully expect new business in June to grow sequentially and for July to be essentially flat to slightly down with June. Additionally, in line with normal seasonality, we're expecting both consulting and digital growth for Q1 to be down sequentially but to remain stable, measured year over year. And for our talent acquisition services, we expect the normal Q4 to Q1 seasonality, given what we're seeing in the current market conditions today. Now, assuming no further changes in worldwide geopolitical conditions, economic conditions, financial markets, and foreign exchange rates, we expect fee revenue in the first quarter of fiscal 25 to range from $655 million to $675 million. Our adjusted EBITDA margin is expected to remain approximately 15.8% to 16.2%, and our consolidated adjusted diluted earnings per share is expected to range from $1.07 to $1.17.

Speaker Change: We fully expect new business in June to grow sequentially.

Speaker Change: And for July to be essentially flat to slightly down with June. Additionally, in line with normal seasonality, we're expecting both consulting and digital.

Bob Rozek: Additionally, in line with normal seasonality, we're expecting both consulting and digital. The growth for Q1 to be down sequentially, but to be remains stable, measured year over year, and for our tail and acquisition services, we expect the normal Q4 to Q1 seasonality, given what we're seeing in the current market conditions today. Now assuming no further changes in worldwide geopolitical conditions, economic conditions, financial markets for and exchange rates, we expect fee revenue in the first quarter of fiscal 25 to range from $655 million to $675 million. Our adjusted EBITDA margin to remain approximately 15.8% to 16.2%, and our consolidated adjusted diluted earnings per share to range from $1.7 to $1.17, and finally our gap diluted earnings per share to range from $1.5 to $1.15.

Speaker Change: The growth for Q1 to be down sequentially, but to be remained stable measured year over year and for our talent acquisition services. We expect a normal Q4 to Q1 seasonality given what we're seeing in the current market conditions today.

Speaker Change: Now assuming no further changes in worldwide geopolitical conditions economic conditions financial markets Foreign exchange rates, we expect fee revenue in the first quarter of fiscal 'twenty five to range from 655 million to $675 million or adjusted EBITDA.

Speaker Change: Margin to remain approximately 15, 8% to 16, 2%.

Speaker Change: And our consolidated adjusted diluted earnings per share to range from $1 7 billion to $1 17, and finally, our GAAP diluted earnings per share to range from $1 five to $1 15.

Bob: And finally, our GAAP diluted earnings per share are expected to range from $1.05 to $1.15. Now, in closing, we continue to focus on the execution of our strategy, which is obviously becoming the preeminent organizational consulting firm. We have a tremendous opportunity ahead and are going to continue to drive initiatives that will generate growth. First, continuing to focus our go-to-market and our marquee in regional accounts, really looking to attract more clients at scale. Continuing to drive top-line synergies with our cross-line of business referrals, we recently enhanced and expanded the incentives.

Bob Rozek: Now, in closing, we continue to focus on the execution of our strategy, which obviously is becoming the preeminent organizational consulting firm. We have a tremendous opportunity ahead, and I agree, going to continue to derive initiatives that will generate growth. First, you know, continuing to focus our go-to-market and our marquee in regional accounts, really looking to drive more clients at scale. Continuing to drive top-line synergies with our cross-line of business referrals, we recently enhanced and expanded the incentives. We're going to continue to capitalize on both our core and integrated solution, how relevant they are in today's world.

Now in closing we continue to focus on the execution of our strategy.

Speaker Change: Which obviously is becoming the preeminent organizational consulting firm, we have a tremendous opportunity ahead and agree going to continue to drive initiatives that will generate growth.

Speaker Change: First continuing to focus our go to market and our marquee and regional accounts really looking to drive more clients at scale.

Speaker Change: <unk> to drive top line synergies with our cross lending business referrals, we recently enhanced and expanded the incentives.

Bob: We're going to continue to capitalize on both our core and integrated solutions, how relevant they are in today's world, and continue to execute on initiatives to drive growth for digital, including the creation of one delivery platform to improve client consumption and consultant execution efficiency, and with a continued focus on large subscription and licensed deals. As Gary mentioned, we want to maximize unique, client-specific insights that we're able to draw from our rich repository of data.

Speaker Change: We're going to continue to capitalize on both our core and integrated solution.

Speaker Change: Relevant they are in today's world continue to execute on initiatives to drive growth for digital including the creation of one delivery platform to improve client consumption and consultant execution efficiency and with the continued focus on large subscription and license deals.

Bob Rozek: Continue to execute on initiatives to drive growth for digital, including the creation of one delivery platform to improve client consumption and consultant execution efficiency, and with a continued focus on large subscription and licensed deals. As Gary mentioned, we want to maximize unique client-specific insights that were able to draw from our rich repository of data. In last, developing what we call the next level of one core and ferry consultants. These are fear owners who are skilled at bringing all of our firm's resources to help our clients solve their most pressing human capital needs. You know, the world that we live in today is full of contradicting uncertainties and challenges.

Speaker Change: As Gary mentioned, we want to maximize unique client specific insights they were able to draw from a rich repository of data.

Bob: And last, developing what we call the next level of Korn Ferry consultants. These are fee earners who are skilled at bringing all of our firm's resources to help our clients solve their most pressing human capital needs.

Speaker Change: And last developing what we call. The next level of one Korn ferry consultants. These are fee earners, who are skilled at.

Speaker Change: All of our firm's resources to help our clients solve their most pressing human capital needs.

Operator: You know, the world that we live in today is full of contradicting uncertainties and challenges. As a management team, we are relentlessly focused on influencing what we can control, including balancing the maintenance of our cost base and productivity to maintain our profitability while making appropriately timed investments to position the firm for long-term growth. You know, as I always say, we're at the beginning of what's going to be a very long game, and I truly believe our best is yet to come.

Speaker Change: World that we live in today's full of contradicting uncertainties and challenges.

Bob Rozek: As a management team, we are relentlessly focused on influencing what we can control, including balancing the maintenance of our cost-based and productivity to maintain our profitability while making appropriately timed investments to position the firm for long-term growth.

Speaker Change: As a management team we are relentlessly focused on influencing what we can control, including balancing the maintenance of our cost base and productivity to maintain our profitability, while making appropriately timed investments to position the firm for long term growth.

Bob Rozek: You know, as I always say, we're at the beginning of what's going to be a very long ballgame, and I truly believe our best is yet to come.

Speaker Change: I always say, we're at the beginning of what's going to be a very long ball game and I truly believe our best is yet to come with that we would be glad to answer any questions. You may have.

Operator: With that said, we would be glad to answer any questions you may have. Ladies and gentlemen, if you would like to ask a question, you may press 1 then 0 on your telephone keypad. You will hear an indication that your line has been placed in queue. If your question has been answered before we get to you, you may remove yourself from the queue by pressing 1-0 once again.

Operator: With that, we would be glad to answer any questions you may have.

Operator: Ladies and gentlemen, if you would like to ask a question, you may press one, then zero on your telephone keypad. You will hear indication that your line has been placed in queue. If your question has been answered before we get to you, you may remove yourself from queue by pressing one zero once again. Once again, to queue up for a question, it is one then zero on your telephone keypad. One moment, please.

Speaker Change: Ladies.

Speaker Change: And gentlemen, if you would like to ask a question you May press. One then zero on your telephone keypad, you will hear indication that your line has been placed in Q. If your question has been answered before we get to you you may remove yourself from queue by pressing one year I'll once again.

George Tong: Once again, to queue up for a question, it is 1, then 0 on your telephone keypad. One moment, please. We go to the line for George Tong with Goldman Sachs. Please go ahead. All right, thanks. Good morning.

Speaker Change: Once again to queue up for a question. It is one and then zero on your telephone keypad one moment. Please.

George Tong: We go to the line of George Tongue with Goldman Sachs. Please go ahead.

We go to the line of George Tong with Goldman Sachs. Please go ahead.

George Tong: All right, thanks. Good morning. You talked about cyclical moderation in the talent acquisition market.

Gary D. Burnison: You talked about cyclical moderation in the talent acquisition market. Can you elaborate on trends that you're seeing in your cyclically sensitive businesses? I would say that it's been, you know, good news, and what we shared in the last quarterly call was that we would expect that RPO would see some improvement, which it did. And, as you know, depending on what part of employment services you're talking about, comparables could be down anywhere from 8 or 9 percent to 28 percent.

George Tong: Alright. Thanks, Good morning, you talked about.

George Tong: It could go moderation in the talent acquisition market can you elaborate on trends that youre seeing in your cyclically sensitive businesses.

Gary Burnison: Can you elaborate on trends that you're seeing in your cyclically sensitive businesses? I would say that it's been, you know, the good news in what we shared in the last quarterly call was that we would expect that RPO would see some improvement, which it did. And as you know, depending on what part of employment services you're talking about, you know, comparables could be down anywhere from eight or nine percent to 28 percent. Clearly, what we've seen over the last several months is definitely stabilization. Some improvement in RPO. And also, as we talked about last quarter, we thought we would see some improvement in perm in professional recruiting.

Speaker Change: I would say that it's been you know the good news and what we shared in the last quarterly call.

Speaker Change: Was that we would expect that <unk> would see some improvement.

Speaker Change: Which it did.

Speaker Change: And as you know depending on what part of employment services, you're talking about you know comparable could be down anywhere from eight or 9% to 28%.

Gary D. Burnison: Clearly, what we've seen over the last several months is definitely stabilization. Some improvement in RPO, and also, as we talked about last quarter, we thought we would see some improvement in PERM, in professional recruiting. So what you've seen is our professional search business up sequentially. Executive search is essentially flat, you know, the last several months.

Speaker Change: Clearly what we've seen.

Speaker Change: Over the last several months is definitely stabilization.

Speaker Change: Some improvement in RP O <unk>.

Speaker Change: And also as we talked about last quarter, we thought we would see some improvement in perm and professional recruiting so.

Gary Burnison: So what you've seen is our professional search business up sequentially. Executive search is essentially flat. You know, the last several months. RPO, although down year over year, it was, it's definitely improved. And new business has been flat sequentially. And the other thing we talked about with the RPO businesses, we thought we would see a shift more towards new logos. And that actually materialized in the quarter.

Speaker Change: What you've seen is our professional search business up sequentially.

Speaker Change: Executive search is essentially flat the last several months.

Gary D. Burnison: RPO, although down year over year, it's definitely improved, and new business has been flat sequentially. And the other thing we talked about with the RPO business is that we thought we would see a shift more towards new logos, and that actually materialized in the quarter. That's helpful context.

Speaker Change: Although down year over year.

Speaker Change: It was a it's definitely improved.

Speaker Change: And new business has been flat sequentially and the other thing we talked about with the RPM businesses, we thought we would see a shift.

Speaker Change: More towards new logos and that actually materialize in the <unk>.

Yeah.

George Tong: Hi, that's helpful context. And then, with respect to profitability, you delivered over 16% EBITDA margins in the quarter, which meaningfully outperformed your guidance.

Bob: And then with respect to profitability, you delivered over 16% EBITDA margins in the quarter, which meaningfully outperformed your guidance. Can you talk about what drove the outperformance versus your initial expectations and how sustainable these margins are? Well, how sustainable depends on the economic environment that we're handed.

Speaker Change: Alright, that's helpful context, and then with respect to profitability delivered over 16% EBITDA margins in the quarter, which meaningfully outperformed your guidance can you talk about what drove the outperformance versus your initial expectations and how sustainable these margins are.

Bob Rozek: Can you talk about what drove the outperformance versus your initial expectations and how sustainable these margins are? Well, how sustainable depends on the economic environment that we're handling. We've guided for this next quarter at the midpoint. We think revenue; we're guiding down 5%, 6% year over year midpoint of the guide, and we're guiding to a 16% EBITDA margin at that revenue level.

Speaker Change: Well, how sustainable it depends on the economic environment that we're hand, we've guided for this next quarter at the midpoint, we think revenue, we're guiding down five 6% year over year midpoint of the guide and we're guiding to a 16% EBITDA margin at that revenue level.

Bob: We've guided for this next quarter at the midpoint. We think revenue is going down 5-6% year over year, at the midpoint of the guide, and we're guiding to a 16% EBITDA margin at that revenue level. One of the things we're really proud of is the fact that revenue is up 35-40% since the pandemic. That was an all-time high, by the way; pre-pandemic revenue levels were an all-time high for Korn Ferry at that point.

Gary Burnison: One of the things we're really proud of is the fact that the revenue is up 35%, 40% since the pandemic. That was in all time high, by the way, pre-pandemic revenue levels was in all time high for Korn-Ferry at that point. And our revenue now is 35%, 40% higher. And our profitability, once you adjust for the mix change, getting into a bigger market of interim, is a 300 basis point. So, at this level of revenue, it's certainly sustainable. And at the same time, we're investing and returning cash to shareholders.

Speaker Change: You know one of the things we're really proud of is the fact that the revenue was up 35, 40% since the pandemic that was an all time high by the way pre pandemic revenue levels.

Mark Steven Marcon: And our revenue now is 35-40% higher, and our profitability, once you adjust for the mixed change, getting into a bigger market of interim, is up 300 basis points. So at this level of revenue, it's certainly sustainable, and at the same time, we're investing and returning cash to shareholders. As Bob said, we've doubled the dividend now over the last year, and we continue to systematically repurchase stock. And it's very helpful. Thank you. Next, we go to the line with Mark Marcon and Baird. Please go ahead. Hey Gary, Bob, Gregg, and Tiffany.

Speaker Change: It was an all time high for Korn ferry at that point and our revenue now is 35% to 40% higher.

Speaker Change: And our profitability once you adjust for the mix change getting into a bigger market of interim is up 300 basis point. So at this level of.

Revenue, it's certainly sustainable and at the same time, we're investing and returning cash to shareholders as Bob said, we doubled we've doubled the dividend now.

George Tong: Bob said, "We've doubled the dividend now over the last year, and we continue to systematically repurchase stuff." Got it.

Bob: Over the last year, and we continue to systematically repurchase stock.

Bob: Got it very helpful. Thank you.

George Tong: Very helpful. Thank you.

Mark Conn: Next, we go to the line of Mark Conn with Baird. Please go ahead.

Bob: Next we go to the line of Mark Marcon with Baird. Please go ahead.

Mark Conn: Hey, Gary. Bob, Greg, Tiffany, hey, congrats on a really nice margin performance and sustaining the profitability. One, I'm going to take George's question, but flip it around a little bit. So you're able to do these margins while revenue is still kind of choppy; the outlook is still kind of choppy.

Gary D. Burnison: Hey, congrats on a really nice margin performance and sustaining profitability. One, I'm going to take George's question, but flip it around a little bit. So you're able to achieve these margins while, you know, revenue is still kind of choppy, and the outlook is still kind of choppy. How should we think about the margins, you know, when things eventually end up being a little bit more stable? Well, stable is a relative term.

Speaker Change: Hey, Gary.

Speaker Change: Stephanie.

Speaker Change: Hey, congrats on a really nice margin performance in sustaining the profitability.

Speaker Change: I'm going to take George's question, but flip it around a little bit so youre able to do these margins while.

Speaker Change: Revenue is still kind of choppy the outlook is still kind of choppy how should we think about the margins you know when things eventually end up.

Gary Burnison: How should we think about the margins when things eventually end up being a little bit more stable? Well, stables are a relative term. I think if there are economic tailwinds, you're going to see a couple hundred basis points of margin improvement for sure. And that's kind of what that's been our long-term guide. We think in this kind of environment where most economies are still producing jobs that we can comfortably operate the firm at 15 and a half, 16% of the margins, and we're guiding towards the higher end of that for this next quarter month. Right.

Speaker Change: Being a little bit more stable.

Gary D. Burnison: I mean, I think if there are economic tailwinds, you're gonna see a couple hundred basis points of margin improvement for sure. And that's kind of what; that's been our kind of long-term guide. We think in this kind of environment, where, you know, most economies are still producing jobs, we can comfortably operate the firm at, you know, 15 and a half or 16% EBITDA margins. And we're guiding towards the higher end of that for this next quarter month. Great

Speaker Change: Well stable is a relative term I mean, I think if there are economic tailwind.

Speaker Change: See you know a couple of hundred basis points of margin improvement for sure.

And that's kind of what that's been our kind of long term guide.

Speaker Change: We think in this kind of environment, where you know most economies are still producing jobs that that.

Speaker Change: We can comfortably operate the firm at <unk>.

Speaker Change: $15, 516% EBITDA margins.

And we're guiding towards the higher end of that for this next quarter months.

Gary D. Burnison: And then you've had a lot of success with regard to changing the incentives. And it's, you know, it's been something, Gary, that you've worked a long time on in terms of getting the cross-selling motion going. When you think about where we are today relative to aspirations for, you know, two to five years from now in terms of that cross-selling motion, you know, what inning are we in? How much better can we become, do you think? I think we're in the second inning.

Speaker Change: Great and then you've had a lot of success with regards to changing the incentives.

Gary Burnison: And then you've had a lot of success with regards to changing the incentives. And it's been something, Gary, that you worked a long time on in terms of getting to cross-sell and motion up. When you think about where we are today relative to aspirations for two to five years from now, in terms of that cross selling motion, what ending are we in? How much better can we become, do you think? I think we're like in the second inning. We're not crawling anymore, but we're not running. We've just started to walk. I think we can do a lot more.

Speaker Change: Then something Gary that you worked a long time on.

Gary: In terms of getting the cross selling motion.

Speaker Change: When you think about where we are today relative to your aspirations for you now.

Gary: Two to five years from now in terms of that cross selling motion.

Gary: Inning are we in how much better can we become do you think I think we're like in the second inning I mean, we're not we're not crawling anymore, but we're not running.

Gary D. Burnison: I mean, we're not crawling anymore, but we're not running. We've just started to walk. I think we could do a lot, lot more. We have to think much more horizontally. You know, the interesting thing is, you know, when we first met Mark, and at that point, when we got into this leadership business, we were doing engagement sizes of $5,000 or $6,000. I mean, the interesting thing now is the pivot toward transformational consulting engagements.

Speaker Change: We've just started to work I think we can do a lot lot more.

Gary Burnison: We have to think much more horizontally. The interesting thing is when we first met Mark, at that point, when we got into this leadership business, we were doing engagement sizes of $5,000 or $6,000. The interesting thing now is the pivot towards transformational consulting engagements. Probably 40% of new business this year are a million-dollar engagements. What comes with that is definitely more stability, the ability to deploy leverage, having real impact on clients. But I'll tell you, we're at the beginning. We have to move from cross referrals to more integrated solutions. I look at some of the work we're doing, and it's definitely the beginning.

Speaker Change: We have to think much more horizontally you know the interesting thing is when.

Speaker Change: When when we first met Mark and and at that point when we got into this leadership business. We were doing engagement sizes of five or $6000. I mean, the interesting thing now is the pivot towards transformational consulting engagements I mean, you know probably 40%.

Gary D. Burnison: I mean, you know, probably 40% of our new business this year is million-dollar engagements. You know, so what comes with that is definitely more stability, the ability to leverage. But I just think, you know, I look at some of the work we're doing, and it's definitely just the beginning. I mean, you know, the consulting and digital businesses have clearly been a huge, huge differentiator for Korn Ferry. So, yeah, I think we can do more.

<unk> of our new business this year.

Mark Steven Marcon: Our million dollar engagements.

Mark Steven Marcon: And so what comes with that is definitely more stability the ability to leverage.

Mark Steven Marcon: To deploy leverage.

Having real impact on clients, but I'll tell you we were at the beginning and we have to move from cross referrals to more integrated solutions.

Speaker Change: But I I think I look at some of the work we're doing and it's definitely the beginning I mean, you know the consulting and digital businesses have clearly been a huge huge differentiator for Korn ferry. So yeah, I think I think we can do more.

Bob Rozek: I mean, the consulting and digital businesses have clearly been a huge, huge differentiator for Korn-Ferry. So, yeah, I think we can do more. That quote cross referral percentage, could that be 35 percent? Yeah, it could be 35 percent for sure, but we have to continue to innovate in terms of the solution sets and continue to modify how we reward our colleagues.

Gary D. Burnison: That quote cross referral percentage, you know, could that be 35%? Yeah, it could be 35% for sure. But we have to, you know, we have to continue to innovate in terms of the solution sets and continue to modify how we reward our colleagues. Hey, Marcus, Bob, just maybe a little bit more context than that.

Speaker Change: That quote cross referral percentage.

Speaker Change: You know could that be 35%, yeah, it could be 35% for sure.

Speaker Change: But we have to we have to continue to.

Speaker Change: To innovate in terms of the solution sets in and continue to modify how we how we reward our colleagues.

Bob Rozek: Hey, Mark, it's Bob. Just maybe a little bit more context in that. So, if you look at the consulting new business in FY24 for the full year versus FY23, engagements that are kind of close through or above a million dollars, they were up 36 percent year over year. So, you can see the strategy clearly working in terms of the push towards no more point solutions but really selling integrated solutions that health-solve clients, human capital needs.

Bob: Hey, Mark as Bob just said, maybe a little bit more context than that so if you look at the consulting new business in FY 'twenty four for the full year versus FY2023.

Bob: So if you look at the consulting new business in FY24 for the full year versus FY23, engagements that are kind of close to or above a million dollars, those were up 36 percent year over year. So you can see the strategy clearly working in terms of the push towards no more point solutions but really selling integrated solutions that help solve clients' human capital needs.

Speaker Change: Engagements that are kind of close to or above $1 million.

Speaker Change: <unk> were up 36% year over year.

Speaker Change: So you can see the strategy clearly working in terms of the push towards no more point solutions, but really selling integrated solutions that help solve climbing clients human capital needs.

Gary D. Burnison: And then, on professional search and interim, and then I'll jump back in the queue, but on professional search and interim, you know, for everybody who follows the space, it is a, you know, it's been a tough market, and, you know, particularly on the interim side, we've been seeing declines across the board. I'm wondering, do you think on the interim side that things are stabilizing, and how would you, you know, characterize the differences between your various interim businesses? And so what they're seeing from a top-line perspective... But yet, you're able to maintain, you know, and improve the margins, which is. It's pretty amazing.

Speaker Change: Great and then unprofessional searching interim and then I'll jump back into queue, but unprofessional searching you're interim.

Mark Conn: And then, on professional search and interim, and then I'll jump back in the queue. But on professional search and interim, for everybody who follows the space, it's been a tough market, and particularly on the interim side, we've been seeing declines across the board. I'm wondering, do you think on the interim side that things are stabilizing, and how would you characterize the differences between your various interim businesses? And so, what they're seeing from a top-line perspective, but yet, you're able to maintain and improve the margins, which is pretty amazing. What are you doing to get the margins up while the revenue is declining as much as it is, and it's doing the same thing for everybody?

Speaker Change: For everybody who follows the space it is a.

Speaker Change #100: Been a tough market and particularly on the interim side.

Speaker Change #101: We've been seeing declines across the board I'm wondering do you think on the interim side that things are stabilizing and how how would you.

Speaker Change #102: Characterize the differences between your various interim businesses.

Speaker Change #102: And so what what they're seeing from a topline perspective.

Speaker Change #102: But yet you were able to maintain.

And improve the margins which is.

Gary D. Burnison: What are you doing to get the margins up while the revenue is declining as much as it is? And it's doing the same thing for everybody. And then, as a follow-up to that, how does the current economic environment impact your desire in the short term to make investments in the interim or for the long term? We would continue to make investments in the interim. We made a conscious decision about almost a year ago that we were going to modify where we were putting emphasis on our professional search business.

Speaker Change #103: Pretty amazing what what are you doing to get the margins up while the revenues declining as much as it is and it's doing the same thing for everybody and then as a follow up to that.

Gary Burnison: And then, as a follow-up to that, how, given the current economic environment, does that impact your desire and the short-term to make investments in interim or permanent? We would continue to make investments in interim. We made a conscious decision about almost a year ago that we were going to modify where we were replacing emphasis on our professional search business. So, if you were to look at the data on the number of consultants we have in that business, you would find that it's down significantly. And we made portfolio switches, and we said, okay, let's go to this industry versus that industry.

Speaker Change #103: How you know given the current economic environment, how does that impact your desire in the short term to make investments in an interim or permanent.

Speaker Change #104: We would continue to make investments in interim we made a conscious decision.

About.

Speaker Change #105: Almost a year ago that we were going to.

Speaker Change #105: Modify.

Speaker Change #105: The.

Speaker Change #106: We were replacing emphasis on our professional search business and so if you were to look at the data on the number of consultants we have in that business you would find that it's down.

Gary D. Burnison: And so, if you were to look at the data on the number of consultants we have in that business, you would find that it's down significantly. And we made portfolio switches, and we said, okay, let's go to this industry versus that industry. That was absolutely a conscious decision that we made, and that's paid off. The interesting thing about the temp penetration rate now is 1.7 percent. The 25-year average is 1.86 percent.

Speaker Change #106: <unk>.

Speaker Change #107: And we made portfolio switches and we said okay. Let's go to this industry versus that industry that was absolutely a conscious decision.

Gary Burnison: That was absolutely a conscious decision that we made, and that's paid off.

Speaker Change #108: That we made in that and that's paid off the.

Gary Burnison: The interesting thing about the attempt penetration right now is 1.7%; the 25-year average is 1.86%. I think the next three to five years are going to, I think there's going to be major... Talent issues. It's so called P-65, where over the next four to five years, the last of the baby boomers are retiring or should be retiring statistically. You could lose 4 million people a year in the United States alone, or maybe it's higher. The economy right now is producing about a million eight jobs at this run rate. So there's really some imbalances when you look out three, four, or five years that could bow very, very well.

Speaker Change #109: The interesting thing about.

Speaker Change #110: The temp penetration rate now is one 7% the 25 year average is 186%.

Speaker Change #109:

Gary D. Burnison: I think the next three to five years are going to, I think there's going to be major changes, when you look out three, four, five years, that could bode very, very well. Your question around the interim, we saw at first a decline in technology innovation, that's definitely stabilized. Then over the more recent months, we saw a decline in finance and accounting. You know, the temperature penetration rate, you know, it's been falling for 27 months and counting.

Speaker Change #111: I think the next three to five years.

Speaker Change #111: Are going to I think theres going to be major.

Speaker Change #111: Uh huh.

Speaker Change #112: Talent issues.

Speaker Change #112: It's so called peak 65, where over the next four to five years.

Speaker Change #113: The last of the baby boomers are retiring or or should be retiring statistically.

Speaker Change #113: And you know you could lose 4 million.

Speaker Change #114: People a year in the United States alone or maybe it's higher.

Speaker Change #115: The economy right now is producing about 1 million eight jobs at.

Speaker Change #116: This run rate. So there is there's really some imbalances when you look out 345 years.

Speaker Change #116: That could bode very very well your question around the interim we saw it first.

Gary Burnison: Your question around the interim, we saw at first a decline in technology interim; we've got to definitely stabilize. Then, over the more recent months, we saw the decline in finance and accounting. The temp penetration rate, it's been falling for 27 months and accounting. Generally, when you see a fall in temp employment, it generally means that it's having an impact on the labor market. You just look back historically, and those lag times have definitely become longer. Assuming there's not some major event, I'm not so sure this is going to turn upside down. I just think there's tremendous demographic pressure on the other end here.

Speaker Change #117: Klein and technology.

Speaker Change #117: Interim we've that's definitely stabilized then over the more recent months, we saw a decline in finance and accounting.

Speaker Change #118: You know the.

Speaker Change #118: <unk>.

Speaker Change #119: The temp penetration rate.

Speaker Change #120: It's been falling for 27 months and counting.

Gary D. Burnison: You know, generally, when you see a fall in temporary employment, it generally means that it's gonna have an impact on the labor market. You know, and you just look back historically, and those lag times have definitely become longer. Assuming there's not some major event, I'm not so sure this is going to turn upside down. I just think there's tremendous demographic pressure on the other end here. And I think that's the case for not only the United States but some other countries as well.

Speaker Change #121: Generally when you see a fall in in Tampa employment. It generally means that it's going to have an impact on on the labor market.

Speaker Change #121: You know and you just look back historically and those lag times have definitely become longer.

Speaker Change #121: <unk>.

Speaker Change #122: Assuming there's not some major of that I'm not so sure.

Speaker Change #123: This is going to turn upside down.

Speaker Change #124: I just think there is tremendous demographic pressure.

Speaker Change #124: On the other end here and I think it's the case for not only the United States with some other countries.

Gary Burnison: And I think it's the case for not only the United States, but some other countries. We would absolutely; we are going to make investments in the interim business for sure. We've seen the power of the Corn Fairy brand and the number of cross referrals we've had. It's a much, much, much bigger market opportunity. Clearly, the margin profile is different. We're going to stay towards the higher end; this quarter we did, the average rate was like $129 an hour. We're going to, for sure, going to stay at the upper end. But there's more market opportunity there for Corn Fairy.

Gary D. Burnison: We would absolutely, we are gonna make investments in the interim business for sure. We've seen the power of the Korn Ferry brand and the number of cross-referrals we've had. It's a much, much, much bigger market opportunity, although clearly, the margin profile is different.

Speaker Change #125: We would absolutely we are going to make investments in the interim business.

Speaker Change #126: For sure we've seen the power of the Korn Ferry brand.

Speaker Change #127: And the number of cross referrals, we've had it's a much much much bigger market opportunity.

Speaker Change #127: Clearly the margin profile is different we're going to stay towards the higher end. This quarter. We did the average rate was like $129 an hour.

Gary D. Burnison: We're gonna stay towards the higher end. This quarter we did, the average rate was like $129 an hour. We're gonna, we're for sure gonna stay at the upper end. But it's, you know, there's more market opportunity there for Korn Ferry. Hey, Mark and Bob, I can touch on the you asked a question about how you and we make those businesses profitable. And we've talked about this in the past. So we have an incredible integration playbook, right?

We're going to work for sure going to stay at the upper end.

Speaker Change #128: But it's you know there is more market opportunity there for Korn ferry.

Bob: And any Americans, Bob I can touch on the you asked the question about how we make those businesses profitable and.

Gary Burnison: I can touch on the question about how we make those businesses profitable, and we talked about this in the past. So we have an incredible integration playbook. When you look at these companies, when we buy them, just that EBITDA is somewhere around 8%. And we built a company that's plug-and-play. So we have common systems, common processes, common controls across the globe. And a lot of these businesses, we buy, they're under-invested, maybe not as well-managed. And we just literally pick them up and plug them into our systems and our processes. And so, by doing that, it allows us to bring the EBITDA margin up into the kind of 12, 13, 14% range, relatively quickly.

Speaker Change #129: We've talked about this in the past so we have a incredible integration playbook right. When you look at these companies when we buy them Theyre adjusted EBITDA somewhere around 8%.

Gary D. Burnison: When you look at these companies, when we buy them, they're, you know, adjusted EBITDA somewhere around 8%. And we built a company that's plug and play, right? So we have common systems, common processes, common controls across the globe. And a lot of these businesses we buy, you know, they're underinvested, you know, maybe not as well managed.

Speaker Change #130: And we built a company that's.

Bob: Plug and play so we have common systems common processes and controls across the globe in a lot of these businesses, we buy they're underinvested, maybe not as well managed and we just literally pick them up and plug them into our systems and our processes.

Bob: And we just literally pick them up and plug them into our systems and our processes. And so by doing that, it allows us to bring the EBITDA margin up into the kind of 12, 13, 14% range relatively quickly. And then as the go-to-market activity becomes more and more integrated, and we start to see the referral activity elevate the top line, that's when you, you know, that's when you really see the juice happening. That's great. Thank you very much.

Bob: And so by doing that.

How's us to bring the EBITDA margin up into the kind of 12 to 13, 14% range relatively quickly and then as the go to market activity to become more and more integrated.

Gary Burnison: And then as the go-to-market activity becomes more and more integrated. And we start to see the referral activity elevate the top line. That's when you really see the juice happening.

Speaker Change #131: And we start to see the referral activity elevate the topline thats when you really.

Speaker Change #132: We really see the juice happening.

Mark Conn: That's great. Thank you very much. Appreciate it.

Speaker Change #133: That's great. Thank you very much I appreciate it.

Speaker Change #133: Yeah.

Jack Wilson: Next, we have a question from Tobey Sommer with Truist Securities. Please go ahead.

Mark Steven Marcon: Appreciate it. Next, we have a question from Tobey Sommer with Truist Securities; please go ahead. Yeah, good morning. This is Jack Wilson on behalf of Tobey.

Speaker Change #133: Next we have a question from Tobey Sommer with Truest Securities. Please go ahead.

Jack Wilson: Yeah, good morning. This is Jack Wilson on for Tobey. I'm here to start out so that that can continue momentum in new business and digital.

Jack Wilson: Um, let's just start out. So, that continued momentum in new business and digital, is that a product of sort of a change in the market or a change in what you're doing? Could we just dig into that a little bit? Well, some of it can be lumpy, you know, for sure.

Speaker Change #134: Yeah. Good morning. This is Jack Wilson on for Tobey I'll, maybe just to start out so.

Jack Wilson: That that continued momentum in new business in digital is that a product of sort of a change in the market or a change in what you're doing could you just dig into that a little bit.

Gary Burnison: Is that a product of sort of a change in the market or a change in what you're doing? Could we just dig into that a little bit? Well, some of it can be lumpy, for sure. I wouldn't read too much into that. The thing that we would hope is that this tremendous IP that we could really monetize it. I mean, it's not a small business today. $360 million. It's the most profitable part of Korn-Ferry. You can really impact a client organization. You can change thousands of people's lives. So it is one that we strongly believe in.

Speaker Change #136: Well some of it can be lumpy.

Speaker Change #136: You know for sure so.

Speaker Change #136: Hum.

Gary D. Burnison: I wouldn't read too much into that. The thing that we would hope is that this tremendous IP that we have, we could really monetize it. I mean, it's not a small business today, $360 million. It's the most profitable part of Korn Ferry. You can really impact a client organization; you can change thousands of people's lives. So it is one that we strongly believe in. It is one where we are trying to get the entire firm to push those offerings to solve client problems.

Speaker Change #137: I wouldn't read too much into that.

Speaker Change #138: The thing that that we would hope.

Speaker Change #139: Is that this tremendous IP that we have.

Speaker Change #138:

Speaker Change #140: That we could you know really monetize it I mean, it's not a small business today $360 million.

Speaker Change #141: The most profitable part of Korn ferry.

Speaker Change #142: You can really impact the client organization you can change thousands of People's lives.

Speaker Change #143: So it is one that we strongly believe in it is one where we are trying to get the entire firm.

Gary Burnison: It is one where we are trying to get the entire firm to push those offerings to solve client problems. The offerings are largely centered around an organization's what they do around professional development and learning, which is one of the biggest markets that we could go after. It's anchored around a company's sales force. How do they improve their sales effectiveness? But it's also we've got legacy products, digital offerings as well around, say, assessment or design how you set up an organization. People can license our intellectual property to do spans and layers and the whole thing. So it is one that we do believe in.

Speaker Change #143: Two to push those offerings to solve client problems.

Gary D. Burnison: The offerings are largely centered around an organization, what they do around professional development and learning, which is one of the biggest markets that we could go after. It's anchored around compensation, how organizations compensate people, and it's anchored around a company's sales force, how do they improve their sales effectiveness. But it's also, we've got legacy products, digital offerings as well, around, say, assessment, org design, how you set up an organization. People can license our intellectual property to do spans and layers and the whole thing. So it is one that we do believe in.

Speaker Change #144: The offerings are largely centered around.

Speaker Change #144: And organizations, what they do around <unk>.

Speaker Change #145: Professional development and learning, which is one of the biggest markets that we could go after it's anchored around compensation how organizations compensate people.

Speaker Change #146: And it's anchored around our company's sales force how do they improve.

Speaker Change #146: Their sales effectiveness.

Speaker Change #147: But it's also.

Speaker Change #148: We've got legacy products.

Digital offerings as well around say assessment.

Speaker Change #148: Org design, how you set up an organization people can license our intellectual property.

Speaker Change #148: To do spans and layers and then the whole thing. So it is one that we do believe in.

Bob Rozek: We are working very hard to get the entire Korn-Ferry to be in the market with those digital solutions. We're working quite heavily on a platform, and we're also working to create a better ecosystem of partners. Because if you look at, for example, the big four consulting firms, they enjoy an ecosystem of partners that bring them hundreds of millions of dollars of revenue a year. And we sit here and look at our intellectual property of 109 million assessments, 30 million, you know, cop that on 30 million people. And we say, why not us? We think it can be a huge differentiator, and we continue to work hard on creating an ecosystem with partners that can make our journey up the next mountain easier.

Gary D. Burnison: We are working very hard to get the entire Korn Ferry business into the market with those digital solutions. We're working quite heavily on a platform, and we're also working to create a better ecosystem of partners. Because if you look at, for example, the big four consulting firms, they enjoy an ecosystem of partners that brings them hundreds of millions of dollars of revenue a year.

Speaker Change #149: We are working very hard to get the entire.

Gary D. Burnison: Korn ferry to be in the market with those digital solutions.

Gary D. Burnison: We're working.

Gary D. Burnison: Quite heavily on our platform.

Speaker Change #150: And we're also working to create a better ecosystem of partners.

Speaker Change #151: Because if you look at for example, the big four consulting firms they enjoy an ecosystem of partners that bring us hundreds of millions of dollars of revenue a year and we sit here and look at our intellectual property of 109 million assessments 30 million.

Bob: And we sit here and look at our intellectual property of 109 million assessments, 30 million, you know, police data on 30 million people, and we say, why not us? We think it can be a huge differentiator, and we continue to work hard on creating an ecosystem with partners that can make our journey up the next mountain easier. And Jack, this is Bob. Just one other point I would make on that is, as you think about the digital business going forward, you know, Gary and I are, Gary had mentioned, I had mentioned earlier in consulting, selling larger engagements, and the same thing is happening in digital, right?

Speaker Change #151: Topped out on 30 million people and we say why not us we think it can be a huge differentiator.

Speaker Change #151: And we continue to work hard on trading and ecosystem with partners that can make our journey the next mountain easier.

Bob Rozek: And, Jack, this is Bob; just one other point I would make on that. If you think about the digital business going forward, Gary had mentioned I had mentioned earlier in consulting, selling larger engagements. And the same thing is happening in digital. We're now selling three, four, five million dollar deals that span multiple years. And so Gary mentioned you might see some choppiness because you could get three or four of those in a quarter. And then in the next quarter, you might get five or six. So it's kind of like what you see with our PO.

Bob: We're now selling, you know, three, four, $5 million deals that span multiple years. And so, you know, Gary mentioned, you might see some choppiness because you could get three or four of those in a quarter, and then the next quarter, you might get five or six. So it's kind of like what you see with RPO, right?

Speaker Change #151: And Jack this is Bob just one other point I would make on that is if you as you think about the digital business going forward.

Gary You had mentioned I had mentioned earlier in consulting selling larger engagements and the same thing is happening in digital but we're now selling three four or $5 million deals that span multiple years and so Gary mentioned you might see some choppiness because you could do three or four of those in a quarter and then the next quarter you might get five or six.

Gary: So it's kind of like what you see with <unk> is a huge contract in one quarter and you will see the new business Spike up.

Bob: RPO signs a huge contract in one quarter, and you'll see the new business spike. But to me, the key there is that we are selling larger multi-year deals, three, four, $5 million deals versus point solutions. And so as you think about that going forward, that will influence what we report as new business as well. Yeah, and I think, Bob, too, the other thing is that intellectual property, that chastity, if you will, of our digital capabilities actually fuels a good part of our RPO business and a good part of our consulting business, and in fact, we use that same IP for the recruiting business. That's right. It permeates everything we do. Alright, and then maybe one more for me.

Gary Burnison: Our PO signs a huge contract in one quarter, and you'll see the new business spike up. But to me, the key there is that we are selling larger multi-year deals, three, four, five million dollar deals versus point solutions. And so, as you think about that going forward, that will influence what we report as new business as well.

Gary: To me the key there is that we are selling larger multi year deals.

Speaker Change #152: $345 million versus point solutions.

Speaker Change #152: And so as you think about that going forward that that will influence what we report as new business as well.

Gary Burnison: Yeah, and I think Bob, too. The other thing is that intellectual property, that chassis, if you will, of our digital capabilities actually fuels a good part of our RPO business and a good part of our consulting business, and in fact, we use that same IP for the recruiting business. That's right; it permeates everything we do.

Speaker Change #152: Yeah, No I think I think Bob too the other thing is that.

Speaker Change #153: That that intellectual property that chassis.

Bob: If you will.

Speaker Change #154: Of our of our digital capabilities actually fuels.

Speaker Change #155: A good part of our <unk> business and a good part of our consulting business and in fact, we use that same I T.

For for the recruiting businesses.

Speaker Change #155: Yes right.

Speaker Change #156: Permeates everything we do.

Jack Wilson: Yeah, and then one more for me.

Speaker Change #156: Yeah.

Speaker Change #156: Yes.

Jack Wilson: I think you've previously spoken about using AI as more of a growth driver than, I guess, a cost reducer. Can you offer some more color on sort of any specific business lines you see that as a key driver? Nobody knows where this thing's going.

Alright, and then maybe one more from me I think you've previously spoken about using AI as more of a growth driver than I guess, a cost reducer and tiara. Some more color on sort of are there any specific business line do you see that as a key driver.

Jack Wilson: I think you've previously spoken about using AI as more of a growth driver than, I guess, a cost-reducer. You offer some more color on sort of any specific business lines. You see that as a key driver.

Gary Burnison: Nobody knows where this thing's going.

Speaker Change #157: Nobody knows where this thing is going we are very concerned about the ethical ramifications. We've developed 6 million people over the last few years.

Gary Burnison: We are very concerned about the ethical ramifications. You know, we've developed six million people over the last few years. We put somebody in a new job every three minutes. We use IP all over the place. We are spending an awful lot of time to make sure that whatever we do in the area that we're building a moat around our data. And so we're very, very systematic there. Yes, we are using it in some of the coaching, some of the assessment.

Gary D. Burnison: We are very concerned about the ethical ramifications. You know, we've developed 6 million people over the last few years. We put somebody in a new job every three months, every three minutes. We use IP all over the place.

Speaker Change #158: We put somebody in a new job every three months every three minutes, we use IP all over the place where we are spending an awful lot of time to.

Gary D. Burnison: We are spending an awful lot of time to make sure that whatever we do in the area, we're building a moat around our data. And so we're very, very systematic there. Yes, we are using it in some of the coaching, and some of the assessment.

Speaker Change #159: To make sure that whatever we do in the area that we're building a moat around our data and so where we are.

Speaker Change #160: We're very very systematic there, yes, we are using it.

Speaker Change #161: And some of the some of the coaching somebody assessment.

Gary Burnison: And over time, we will look at how we can make the entire Korn-Ferry more efficient, but that's not in this next quarter.

Speaker Change #161: And over time, we will look at.

Speaker Change #161: How we can make the entire Korn ferry more efficient, but that's not that's not in this next quarter our primary concerns right now.

Gary Burnison: Our primary concerns right now are, where can we be disintermediated? What are the ethical issues around this? And let's use it in a couple solution areas. That's where we are right now.

Gary D. Burnison: And over time, we will look at how we can make the entire Korn Ferry more efficient, but that's not in this next quarter. Our primary concerns right now are where can we be disintermediated, what are the ethical issues around this, and let's use it in a couple of solution areas. That's where we are right now. Okay, thank you very much. I'll turn it over to you. Next, we go to Trevor Romeo with William Blair. Please go ahead.

Speaker Change #162: Where can we be disintermediation.

Speaker Change #163: What are the ethical issues around this.

Speaker Change #163: And let's use it in a couple solution areas.

Speaker Change #163: That's where we are right now.

Jack Wilson: Okay, thank you very much. I'll turn it over.

Speaker Change #164: Okay. Thank you very much I'll turn it over.

Trevor Romeo: Next, we go to Trevor Romeo with William Blair. Please go ahead.

Speaker Change #164: Next we go to Trevor Romeo with William Blair. Please go ahead.

Trevor Romeo: All right.

John Trevor Romeo: All right. Good morning, team. Thanks so much for taking the questions.

Gary Burnison: Good morning, team. Thanks so much for taking the questions. I know we've had several margin questions already, but just wanted to ask another one a bit differently, given the outperformance there. I think for most of the segments you're running at a lower head count than you had been kind of a year ago, that type of time frame, yet seeing kind of much better productivity and higher bill rates for a lot of the segments.

John Trevor Romeo: Alright, good morning team. Thanks, so much for taking the questions.

Gary D. Burnison: I know we've had, you know, several margin questions already, but I just wanted to ask another one a bit differently given the outperformance there. I think for most of the segments, you're running at a lower headcount than you were kind of a year ago, that type of time frame, yet seeing kind of much better productivity and higher bill rates for a lot of the segments. So just wondering if you could talk a bit more about which specific productivity initiatives you've implemented recently and, you know, which are starting to really pay off now and how much further you can improve on those productivity metrics. Well, look, we can.

John Trevor Romeo: I know we've had several margin questions already but just wanted to ask another one a bit differently given the.

John Trevor Romeo: Outperformance there I think for most of the segments, you're running at a lower head count than you had been kind of a year ago that type of time frame, yet seeing kind of much better productivity and higher bill rates for a lot of the segments. So just wondering if you could talk a bit more about which specific productivity initiatives implemented recently and which.

Gary Burnison: So just wondering if you could talk a bit more about which specific productivity initiatives you've implemented recently and which are starting to really pay off now, and how much further you can improve on those productivity metrics. Well, look, we do think there's room to go. Part of the improvement comes from clearly technology, as Bob indicated, around platforms and the like. And I think he covered that really well.

John Trevor Romeo: We're starting to really pay off now and how much further you can improve on those productivity.

John Trevor Romeo: Productivity metrics.

Gary D. Burnison: We do think there's room to go. Part of the part of the improvement, you know, comes from clearly technology, as Bob indicated, around platforms and the like. And I think he covered that really well.

John Trevor Romeo: Well look we do so we do think there is there there's room to go.

John Trevor Romeo: Part of part of the improvement comes from.

John Trevor Romeo: Clearly technology as Bob indicated Ah.

Bob: Around platforms and the like and I think he covered that.

Bob: Well the other though over time here like take our consulting business. So as we do more impactful.

Gary Burnison: The other thought over time here, like take our consulting business. So, as we do more impactful multi-million dollar engagements, the firm will see better scale, better productivity. And I think it's bearing out in the numbers.

Gary D. Burnison: The other though, over time here, like take our consulting. As we do more impactful, multi-million dollar engagements, the firm will see better scale, and better productivity, and I think it's bearing out in the numbers. On the interim side, we definitely want to stay at a certain level, and I'm not going to sit there and say you're going to see, you know, gigantic productivity there. We've made some huge, huge strides over the last, you know, 15 months.

Speaker Change #166: Multimillion dollar engagements.

Speaker Change #167: Firm, we'll see.

Speaker Change #168: Better scale better productivity.

Speaker Change #168: And I think its bearing out.

Speaker Change #169: And the numbers on the interim side, we definitely want to stay at a certain level.

Gary Burnison: On the interim side, we definitely want to stay at a certain level. And I'm not going to sit there and say you're going to see gigantic productivity there. We've made some huge, huge strides over the last, you know, 15 months. I'm not going to say there's a long ways to go there, but I think it's a combination of our technology that we're using and the go-to-market strategy as it relates to consulting and digital. Thanks, Gary, that makes a lot of sense.

Speaker Change #170: And I'm not going to sit there and say you're going to see you know gigantic productivity. There. We've made some huge huge strides over the last 15 months.

Gary D. Burnison: So I'm not going to say there's a long way to go there, but I think it's a combination of our technology that we're using and the go-to-market strategy as it relates to consulting and digital. Okay, thanks, Gary. That makes a lot of sense.

Speaker Change #170: So I'm not going to sit you know I'm not going to say that there's a long ways to go there but.

Speaker Change #170: It's a combination of our technology that we're using and the go to market strategy.

Speaker Change #170: As it relates to consulting and digital.

Okay. Thanks, Gary that that makes a lot of sense and then just another one kind of on the.

Trevor Romeo: And then just another one kind of on the overall demand environment, some of the green shoots that you talked about last quarter in the cyclical businesses, but maybe specific to search. I think your revenue was kind of flat or sequentially, maybe not quite as strong of an uptick as a few of the other competitors may have reported recently. Just kind of wondering if you could speak about the demand environment specific to search, whether you're still seeing those green shoots and whether they're stronger or weaker or about the same as last quarter.

Gary D. Burnison: And then just another one kind of on the overall demand environment, some of the green shoots that you talked about last quarter in the cyclical businesses, but maybe specific to search. You know, I think your revenue was kind of flattish sequentially, maybe not quite as strong of an uptick as a few of the other competitors may have reported recently. Just kind of wondering if you could speak about the demand environment specific to search, whether you're still seeing those green shoots and whether they're, you know, stronger, weaker, or about the same as last quarter. I think they're about the same.

Speaker Change #171: The overall demand environment some of the green shoots that you talked about last quarter in the cyclical businesses.

Speaker Change #171: But maybe specific to search.

Gary: I think your revenue was kind of flattish sequentially, maybe not quite as strong of an uptick as a few of the other competitors may have reported recently just kind of wondering if you could speak about the demand environment specific to search whether you're still seeing those green shoots and whether they're stronger weaker or about the same as last quarter. Thanks.

Gary Burnison: Thanks. I think they're about the same. I mean, what we talked about last quarter was that we would expect to see some uptick in professional search, and we said we would see an improvement in RPO. And that's absolutely happened. You know, you step back from all of this, and we're clearly in the middle of a multi-quarter reset, and companies are adapting to a rate environment that is two and a half times what it was, and people haven't seen this for 25 years. And I don't see, in the near term, in the next few months, I don't really see much changing.

Speaker Change #172: I think there are about the same I mean, what we talked about last quarter was that we would expect to see some uptick.

Gary D. Burnison: I mean, what we talked about last quarter was that we would expect to see some uptick in professional search. And we said we would see, you know, an improvement in RPO. And that absolutely happened.

Speaker Change #172: In professional search and we said we would see.

Speaker Change #172: An improvement in Rps and that's absolutely happened you know you stepped back.

Gary D. Burnison: You know, you step back from all of this, and we're clearly in the middle of a multi-quarter resale, and companies are adapting to a rate environment that is two and a half times what it was, and people haven't seen this for 25 years. And I don't see, in the near term, in the next few months, I don't really see much changing. I think the really encouraging news, though, when you look out at megatrends, like I touched upon a little bit, just take the United States labor force. It's not going to be too long. I think right now, 19% of the population is retired in America. That could go up to 20%.

Speaker Change #173: From all of this and we're clearly in the middle of a multi quarter reside.

Speaker Change #173: And companies are adapting to a rate environment that is two five times what it was.

Speaker Change #174: And people haven't seen this for 25 years.

Speaker Change #175: And I don't see in the near term in the next few months I I don't really see much changing I think the really encouraging news, though when you look out at Mega trends is what I touched upon a little bit.

Gary Burnison: I think the really encouraging news, though, when you look out at Megatrend, is what I touched upon a little bit, just taking the United States labor force. I mean it's not going to be too long. I think right now, 19% of the population is retired in America. You know, that could go to 20%. For every person that's retired today, you got two workers. That's going to change. And with this peak 65 and baby boomers, you look at it and you look at some other countries and you say, wow, there's a real demographic issue there. And so how do companies deal with that demographic issue?

Speaker Change #176: Just take the United States Labor Force I mean, its not going to be too long I think right now 19%. The population is retire in America that could go to 20% at some point you know for every <unk>.

Gary D. Burnison: For every person that's retired today, you've got two workers. That's going to change. And with this peak 65 and baby boomers, you look at it and you look at some other countries, and you say, wow, there's a real demographic issue there. And so how do companies deal with that demographic issue?

Speaker Change #176: For every person. That's retired today you got to workers, that's going to change and with this peak 65 and baby boomers.

Speaker Change #177: You look at it and you look at some other countries and you say Wow, there's a real demographic issue there.

Speaker Change #177: And so how do companies deal with that demographic issue.

Gary D. Burnison: And so part of that is going to be through technology, but part of it is going to be with the kind of services that we actually deliver and that we're building our firm for. So I look at the megatrend around demographics, and I say that's really, really good news. Again, absent some, you know, unforeseen event that could happen.

Gary Burnison: And so part of that is going to be through technology, but part of it is going to be with the kind of services that we actually deliver. And then we're building our firm for. So I look at the mega trend around demographics. And I say that's really, really good news. Again, absence some, you know, unforeseen event that could happen. So I, you know, I look out and say, you know, I think there's going to continue to be this concept of labor hoarding. But I'm more encouraged than not longer term on what the demographic trends mean for Corn Fairy.

Speaker Change #178: And so part of that is going to be through technology, but part of it is going to be with the kind of services that we actually deliver and that we're building our firm floor. So I look at the mega trends around demographics.

Speaker Change #179: And I say, that's really really good news again absent some.

Unforeseen event that that could happen. So I you know.

Gary D. Burnison: So I, you know, I look out and say, you know, I think there's going to continue to be this concept of labor hoarding, but I'm more encouraged and not longer term on what the demographic trends mean for Korn Ferry. Okay Gary, appreciate the perspective. And our final question will come from Karan Singhania with UBS. Please go ahead. Hi, good morning. This is Karan Singhania on behalf of Josh.

Speaker Change #179: I look out and say.

Speaker Change #180: I think there is going to continue to be this this concept of labor hoarding.

Speaker Change #181: But I'm more encouraged than not longer term on what the demographic trends mean for Korn ferry.

Trevor Romeo: Okay, Gary. Appreciate the perspective. Thanks.

Speaker Change #182: Okay, Great I appreciate the perspective thanks.

Karan Sanjanya: And our final question will come from Karan, Sanjanya with UBS. Please go ahead.

Speaker Change #183: And our final question will come from Karen <unk> with UBS. Please go ahead.

Karan Sanjanya: All right. Good morning. This is Korn on for George. So thanks for taking my question. So I had a question on executive so it's with executive so it's seeing positive new business growth and new engagements. Do you think it's going to return to growth in the fourth quarter? And if so, what regions? No, no, no, no, no.

Karan Singhania: So, thanks for taking my question. So, I had a question on executive search. With executive search seeing positive new business growth and new engagements, do you think it can return to growth in the fourth quarter? And if so, which regions?

Speaker Change #184: Hi, Good morning. This is current on for Josh So thanks for taking my question.

So I had a question on executive assurance.

Karen <unk>: Executive so it seems positive new business growth and new engagements do you think thats going to retire.

Speaker Change #186: Growth in the fourth quarter and if so no regions no no no no no. No. This is this environment. We're in a very very you know every company is in an incredibly difficult environment. There is a fight for growth there is a fight for relevancy.

Gary D. Burnison: No, no, no, no, no, no, no, no, no, no. This environment, we're in a very, very, every company is in an incredibly difficult environment. There is a fight for growth. There is a fight for relevancy.

Gary Burnison: This environment, we're in a very, very, you know, every company is in an incredibly difficult environment. There is a fight for growth; there is a fight for relevancy. The winners are going to be those companies that invest in two or three areas that are going to accelerate them through the turn, and that's what Korn Ferry is doing. I think the labor market in the United States is not going to change materially. I don't think there's going to be huge adjustments to interest rates. You know, costs for most Americans have gone up 35 to 40 percent.

Gary D. Burnison: The winners are going to be those companies that invest in two or three areas that are going to accelerate them through the turn, and that's what Korn Ferry is doing. I think the labor market in the United States is not going to change materially. I don't think there's going to be huge adjustments to interest rates. Costs for most Americans have gone up 35% to 40%.

Gary D. Burnison: The winners are going to be those companies that invest in two or three areas that are going to accelerate them through the turn and that's what Korn ferry is doing.

I think the labor market in the United States. It is not going to change materially I don't think there's going to be huge adjustments to interest rates.

Speaker Change #187: You know cost for most Americans have gone up 35% to 40% wages have not gone up that much.

Gary D. Burnison: Wages have not gone up that much. I think realistically, if you're only looking a quarter, which is quite myopic, I think it's going to be kind of the environment that we're in. Now, that certainly doesn't say that we can't take market share. When I look at the things that we're doing around the globe, we have never, ever, ever, ever done more high-impact assignments ever. And so I look at that and say, wow, that is incredible, incredible news. Is there – if there is economic tailwind, can executive search get on a completely different trajectory?

Gary Burnison: Wages have not gone up that much.

Gary Burnison: And so I, you know, I think realistically, if you're only looking a quarter, which is quite myopic, I think it's going to be kind of the environment that we're in. Now, does that certainly doesn't say that we can't take market share? When I look at the things that we're doing around the globe, we have never, ever done more high-impact assignments, ever. And so I look at that and say, wow, that is incredible, incredible news. Is there, if there is economic tailwind, can executive search get on a completely different trajectory? Absolutely. Do we have the best people in the industry?

Speaker Change #188: And so I you know I think realistically if youre only looking a corridor, which is quite my opex.

Speaker Change #189: I think it's going to be kind of the environment that we're in now does that that certainly doesn't say that we can't take market share.

Speaker Change #190: When I look at the things that we're doing around the globe, we have never ever done more high impact assignments ever and so I look at that and say Wow that is incredible incredible news is there if there is economic take.

Speaker Change #190: When.

Speaker Change #191: Can executive search get on a completely different trajectory.

Gary D. Burnison: Absolutely. Do we have the best people in the industry? Absolutely. But is there room to go?

Speaker Change #191: Absolutely do we have the best people in the industry absolutely is there room to go for sure but if your question is two or three months.

Gary Burnison: Absolutely. Is there room to go? For sure.

Gary D. Burnison: For sure. Your question is about two or three months. No.

Gary Burnison: But if your question is two or three months, no. I mean, it's what you're in the environment. You're in.

Speaker Change #191: No.

Gary D. Burnison: I mean, you're in the environment you're in, and you know great companies make their best moves in these kinds of economic climates, and that's what we're going to do. Okay, that's all. Thank you.

Speaker Change #191: I mean, it's you're in the environment you're in.

Gary Burnison: And, you know, great companies make their best moves in these kinds of economic climates. And that's what we're going to do. Okay.

Speaker Change #192: And you know great companies make their best moves in these kinds of economic climates, and that's what we're going to do.

Speaker Change #192: Okay. That's helpful. Thank you.

Gary Burnison: Let's have fun. Thank you.

Speaker Change #192: Okay.

Operator: And speakers, that does conclude our question-and-answer session. I'll be turning the conference back to you for closing remarks.

Karan Singhania: And speakers, that does conclude our question and answer session. I'll be turning the conference back to you for closing remarks. Okay.

Speaker Change #193: And speakers that does conclude our question and answer session I'll be turning the conference back to you for closing remarks.

Gary Burnison: Okay. Thank you for joining us and for taking an interest. You know, I think we have done the thing I'm most proud of is that when we say something, we do it.

Gary D. Burnison: Thank you for joining us and for taking an interest. You know, I think we have done the thing I'm most proud of is that when we say something, we do it. And you have an organization that has tremendous colleagues, tremendous reach around the world, and a really, really solid leadership team. We're everywhere you want to be in every industry, and we're building solutions that matter, particularly over the next five years.

Speaker Change #194: Okay. Thank you for joining us and for taking an interest.

Speaker Change #195: You know I think we have done the thing I'm. Most proud of is that when we say something we do it.

Gary Burnison: And you have an organization that has tremendous colleagues, tremendous reach around the world and a really, really solid leadership team where everywhere where you want to be and every industry, and we're building solutions that matter particularly over the next five years. So, with that, thank you.

Speaker Change #195: And do you have an organization that has tremendous colleagues a tremendous reach around the world.

Speaker Change #196: And a really really solid leadership team, we're everywhere, where you want to be in every industry and we're building solutions that matter, particularly over the next five years. So with that thank you and we'll talk to you next time.

Operator: So with that, thank you, and we'll talk to you next. Ladies and gentlemen, this conference call will be available for replay for one week starting today at 2 p.m. Eastern Time and running through June 21, 2024 at midnight. You may access the AT&T Executive Playback Service by dialing 866-207-1041 and entering the access code 5486987. International participants may dial 402-970-0847. Additionally, the replay will be available for playback at the company's website, www.kornferry.com, in the even best case.

Operator: And we'll talk to you next time.

Operator: Ladies and gentlemen, this conference call will be available for replay for one week starting today at 2 p.m. Eastern Time running through June 21st, 2024, at midnight. You may access the AT&T Executive Playback Service by dialing 866-207-1041 and entering the access code 5486987. International participants may dial 402-970-0847.

Speaker Change #197: Ladies and gentlemen, this conference call will be available for replay for one week starting today at two P. M. Eastern time running through June 21, 2024 at Midnight you may access the AT&T executive playback service by dialing 8662071041.

Speaker Change #199: And entering the access code 5486987 International participants may dial four zero to 9700847. Additionally, the replay will be available for playback at the company's website Www Dot Korn ferry dot.

Operator: Additionally, the replay will be available for playback at the company's website, www.cornferry.com, in the investments.

Speaker Change #198: Com in the Investor.