Quarterly report pursuant to Section 13 or 15(d)

Fee Revenue

v3.22.2.2
Fee Revenue
3 Months Ended
Jul. 31, 2022
Revenue From Contract With Customer [Abstract]  
Fee Revenue

7. Fee Revenue

Contract Balances

A contract asset (unbilled receivables) is recorded when the Company transfers control of products or services before there is an unconditional right to payment. A contract liability (deferred revenue) is recorded when cash is received in advance of performance of the obligation. Deferred revenue represents the future performance obligations to transfer control of products or services for which we have already received consideration. Deferred revenue is presented in other accrued liabilities on the consolidated balance sheets.

The following table outlines the Company’s contract asset and liability balances as of July 31, 2022 and April 30, 2022:

 

 

 

July 31, 2022

 

 

April 30, 2022

 

 

 

(in thousands)

 

Contract assets-unbilled receivables

 

$

119,850

 

 

$

100,652

 

Contract liabilities-deferred revenue

 

$

243,510

 

 

$

244,149

 

 

During the three months ended July 31, 2022, we recognized revenue of $84.6 million that was included in the contract liabilities balance at the beginning of the period.

Performance Obligations

The Company has elected to apply the practical expedient to exclude the value of unsatisfied performance obligations for contracts with a duration of one year or less, which applies to all executive search, professional search and to most of the fee revenue from the interim business. As of July 31, 2022, the aggregate transaction price allocated to the performance obligations that are unsatisfied for contracts with an expected duration of greater than one year at inception was $1,075.5 million. Of the $1,075.5 million of remaining performance obligations, the Company expects to recognize approximately $466.3 million in the remainder of fiscal 2023, $371.4 million in fiscal 2024, $148.5 million in fiscal 2025 and the remaining $89.3 million in fiscal 2026 and thereafter. However, this amount should not be considered an indication of the Company’s future revenue as contracts with an initial term of one year or less are not included. Further, our contract terms and conditions allow for clients to increase or decrease the scope of services and such changes do not increase or decrease a performance obligation until the Company has an enforceable right to payment.

Disaggregation of Revenue

The Company disaggregates its revenue by line of business and further by region for Executive Search. This information is presented in Note 10—Segments.

The following table provides further disaggregation of fee revenue by industry:

 

 

 

Three Months Ended July 31,

 

 

 

2022

 

 

2021

 

 

 

Dollars

 

 

%

 

 

Dollars

 

 

%

 

 

 

(dollars in thousands)

 

Industrial

 

$

195,909

 

 

 

28.2

%

 

$

149,356

 

 

 

25.5

%

Life Sciences/Healthcare

 

 

133,204

 

 

 

19.1

 

 

 

115,190

 

 

 

19.7

 

Technology

 

 

122,652

 

 

 

17.6

 

 

 

94,934

 

 

 

16.2

 

Financial Services

 

 

118,799

 

 

 

17.1

 

 

 

105,649

 

 

 

18.0

 

Consumer Goods

 

 

95,948

 

 

 

13.8

 

 

 

81,564

 

 

 

13.9

 

Education/Non–Profit/General

 

 

29,391

 

 

 

4.2

 

 

 

38,702

 

 

 

6.7

 

Fee Revenue

 

$

695,903

 

 

 

100.0

%

 

$

585,395

 

 

 

100.0

%