Korn Ferry (NYSE: KFY) stock fell 0.21% (As on Dec 9, 11:32:21 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the second quarter of FY 22. The adjusted EBITDA grew $69 million year-over-year and $13.5 million or 11% sequentially to $135 million. Operating margin was 16.2% in Q2 FY’22 compared to 11.1% in the year-ago quarter. Adjusted EBITDA margin was 21.1%, compared to Adjusted EBITDA margin of 15.2% in the year-ago quarter. Net income attributable to Korn Ferry was $75.8 million in Q2 FY’22 compared to net income attributable to Korn Ferry of $27.8 million in Q2 FY’21. The year-over-year improvement in operating margin was due to the increase in fee revenue, as well as cost savings realized from work being conducted virtually. Fee revenue growth in the quarter for our consolidated Executive Search business was up 59% year-over-year and up 9% sequentially while our RPO and Professional Search business was up 76% year-over-year and 8% sequentially. Growth for our Consulting and Digital businesses was also very strong. Consulting grew 30% year-over-year and 11% sequentially, while Digital was up 18% year-over-year and 10% sequentially. On a consolidated basis, new business awards, excluding RPO, were up 40% year-over-year and up approximately 8% sequentially. RPO new business was also extremely strong with a record $136 million of total contract awards. The global investable cash balance at the end of the second quarter was approximately $591 million and that’s up about $133 million or 29% year-over-year. In addition, the Company incurred higher marketing and business development expenses which contributed to record fee revenue and new business in the quarter, as well as increased legal professional fees.

KFY in the second quarter of FY 22 has reported the adjusted earnings per share of $1.53, beating the analysts’ estimates for the adjusted earnings per share of $1.37. The company had reported the adjusted revenue growth of 47 percent to $643.4 million in the second quarter of FY 22, beating the analysts’ estimates for revenue of $604.66 million.

The company has declared a quarterly dividend of $0.12 per share on December 7, 2021, payable on January 14, 2022, to stockholders of record on December 21, 2021.

For the third quarter, Korn Ferry expects fee revenue to be in the range of $640 million – $660 million and expects an adjusted EPS of $1.42 – $1.58 versus the consensus of $1.10.