Korn Ferry (KFY) Goldman Sachs Communacopia + Technology Conference summary

Business strategy and diversification

• Diversified offerings across consulting, digital, interim, and talent acquisition create top-line synergies and macro resilience.

• Integrated solution areas enable cross-selling and a one-stop approach for clients.

• Talent acquisition businesses are most cyclical, while consulting and digital are less so, with digital's subscription model reducing cyclicality.

• Current client activity remains high, but decision cycles are lengthening, partly due to external factors like the U.S. election.

Digital business strategy and growth

• Digital segment generates $360–$370 million, with 40% from subscriptions; aims to double business and increase subscription mix to 60–65%.

• Four growth levers: cross-business synergies, sales productivity, product innovation, and partner ecosystem expansion.

• Integration of point solutions into a unified cloud platform is a key focus to drive adoption and ARR growth.

• Partnerships with platforms like Salesforce and HCM providers are expected to accelerate growth.

• Over 400 engineers are working on platform and data integration to enhance user experience and leverage proprietary data.

Revenue trends and business line performance

• Executive search saw a slight positive inflection, growing 2–3% in constant currency; pro search and interim remain flat or declining.

• Europe outperformed expectations in executive search, attributed to strong management and integrated go-to-market approach.

• RPO business is flat but poised for recovery as client hiring volumes normalize; renewals are increasing as contracts mature.

• Interim business is concentrated in the U.S., with pressure in finance/accounting; expansion opportunities exist in Europe and Asia.