Korn Ferry (NYSE:KFY) stock fell 1.95% (As on September 8, 11:27:03 AM UTC-4, Source: Google Finance) after the company’s first quarter earnings that beat analysts’ forecasts and revenue that topped expectations. Global fee revenue for KF Digital was $83.8 million, which was up approximately 4% year over year and 10% at constant currency. The subscription and license component of digital’s fee revenue continued to grow, reaching $30 million, which is up approximately 21% year over year and was approximately 35% of revenue for the quarter. Global new business for KF Digital was approximately $93 million, with $31 million of the total coming from subscription and license sales. Earnings and profitability were slightly impacted in the quarter by investments in both commercial sales representatives and product development initiatives. In the first quarter, digital generated adjusted EBITDA of $24.2 million, with a 29% adjusted EBITDA margin. Now turning to consulting. Fee revenue grew to $166.5 million, which was up approximately 12% year over year and 18% at constant currency. Fee revenue growth continued to be broad-based across all solution areas and strongest regionally in EMEA and North America, which were up 18% and 20%, respectively, at constant currency. Consulting new business was up 1% year over year and 7% at constant currency. In the first quarter, adjusted EBITDA for consulting grew $2.7 million or 10% to $29.6 million, with an adjusted EBITDA margin of 17.7%. Growth in professional search and interim was also strong in the first quarter, supported by steady market demand for skilled professionals and aided by new and enhanced capabilities recently acquired from both Lucas Group and Patina. Fee revenue for permanent placement was $74 million, which was up approximately $22 million or 42% year over year. In the first quarter, global executive search adjusted EBITDA grew to approximately $62.2 million, which was up 1% year over year, with an adjusted EBITDA margin of 26.7%.

KFY in the first quarter of FY 23 has reported the adjusted earnings per share of $1.5, beating the analysts’ estimates for the adjusted earnings per share of $1.39. The company had reported the adjusted revenue growth of 18.9 percent to $703.1 million in the first quarter of FY 23, beating the analysts’ estimates for revenue of $655.27 million. In the first quarter, the company repurchased about 370,000 shares of the stock using about $22 million, paid a cash dividend of approximately $7 million and the company funded about $17 million of capital expenditures, most of which was directed toward development initiatives for the digital business.

Korn Ferry forecast second-quarter fee revenue to range between $678 million and $708 million.