Korn Ferry (NYSE: KFY) stock fell over 4.1% on 8th March 2019 (Source: Google finance) after the company in the third quarter of FY 19 has reported the 6% rise in the fee revenue to $474.5 million driven by organic growth in all segments. Adjusted EBITDA in the third quarter is approximately $78 million, which is an improvement of $6.3 million or 9% measured year-over-year. Adjusted EBITDA in the third quarter is approximately $78 million, which is an improvement of $6.3 million or 9% measured year-over-year. in the third quarter, Executive Search new business totaled approximately $191 million, that’s up 6% year-over-year driven by strength in North America and EMEA. For Advisory, global new business in the third quarter was $221 million and that’s up 5% year-over-year and we saw growth in North America, Europe and Asia-Pacific. And finally, in the third quarter RPO and Professional Search secured $104 million of total new business, that’s the best quarter of new business so far in fiscal 2019. Total new business consists of $78 million of long-term RPO awards and $26 million of Professional Search. The $78 million of RPO awards consist of approximately $59 million of contract expansions and renewals with existing clients and approximately $19 million of new client contracts.
At the end of the third quarter, total cash and marketable securities were $623 million, that’s up approximately $94 million compared to the third quarter of fiscal ’18.
Growth for the Executive Search segment remained broad-based. At constant currency, North America was up 12%, Europe was up 3%, Asia-Pacific was up 10% and Latin America was up 34%. By specialty market growth was mixed in the third quarter, compared to the third quarter a year ago at actual exchange rates, the financial services and technology practices were each up 25%. The industrial practice was up 7% while the life sciences and healthcare and consumer goods practices were down 13% and 3% respectively.
Meanwhile, KFY and Qualtrics, the leader in experience management, have announced a partnership to build a global delivery and advisory service to improve employee experiences for organizations worldwide. By joining the exclusive Qualtrics Partner Network (QPN), Korn Ferry will go-to-market by pairing its world-renowned organizational methodologies and expertise with Qualtrics’ industry-leading Experience Management (XM) Platform to provide organizations with the expertise and technology they need to drive breakthrough results at every stage of the employee journey