kfy-20230731

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☑						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2023


o						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to ___________

Commission File Number 001-14505

KORN FERRY

(Exact Name of Registrant as Specified in its Charter)


Delaware						95-2623879
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

1900 Avenue of the Stars, Suite 1500, Los Angeles, California 90067

(Address of principal executive offices) (Zip Code)

(310) 552-1834

(Registrant’s telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	KFY	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


			Large Accelerated Filer ☑			Accelerated filer o

			Non-accelerated filer o			Smaller reporting company o
						Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The number of shares outstanding of our common stock as of September 5, 2023 was 52,704,629 shares.

KORN FERRY

Table of Contents


Item #	Description	Page

	Part I. Financial Information

Item 1.	Consolidated Financial Statements

	Consolidated Balance Sheets as of July 31, 2023 (unaudited) and April 30, 2023	1

	Consolidated Statements of Income (unaudited) for the three months ended July 31, 2023 and 2022	2

	Consolidated Statements of Comprehensive Income (unaudited) for the three months ended July 31, 2023 and 2022	3

	Consolidated Statements of Stockholders’ Equity (unaudited) for three months ended July 31, 2023 and 2022	4

	Consolidated Statements of Cash Flows (unaudited) for the three months ended July 31, 2023 and 2022	5

	Notes to Consolidated Unaudited Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40

Item 4.	Controls and Procedures	41

	Part II. Other Information

Item 1.	Legal Proceedings	42

Item 1A.	Risk Factors	42

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42

Item 5.	Other Information	42

Item 6.	Exhibits	43

	Signatures	44

Item 1. Consolidated Financial Statements

KORN FERRY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	July 31, 2023		April 30, 2023
	(unaudited)
	(in thousands, except per share data)
ASSETS
Cash and cash equivalents	$	562,209	$	844,024
Marketable securities	29,486		44,837
Receivables due from clients, net of allowance for doubtful accounts of $47,418 and $44,377 at July 31, 2023 and April 30, 2023, respectively	592,333		569,601
Income taxes and other receivables	58,443		67,512
Unearned compensation	66,878		63,476
Prepaid expenses and other assets	57,258		49,219
Total current assets	1,366,607		1,638,669

Marketable securities, non-current	189,359		179,040
Property and equipment, net	166,283		161,876
Operating lease right-of-use assets, net	132,638		142,690
Cash surrender value of company-owned life insurance policies, net of loans	200,103		197,998
Deferred income taxes	94,293		102,057
Goodwill	910,211		909,491
Intangible assets, net	107,979		114,426
Unearned compensation, non-current	121,918		103,607
Investments and other assets	24,077		24,590
Total assets	$	3,313,468	$	3,574,444
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	50,731	$	53,386
Income taxes payable	22,868		19,969
Compensation and benefits payable	240,956		532,934
Operating lease liability, current	43,800		45,821
Other accrued liabilities	297,436		324,150
Total current liabilities	655,791		976,260

Deferred compensation and other retirement plans	425,215		396,534
Operating lease liability, non-current	110,823		119,220
Long-term debt	396,379		396,194
Deferred tax liabilities	6,170		5,352
Other liabilities	26,560		27,879
Total liabilities

SEC Form 10-Q filed by Korn Ferry