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EY Narrowly Missed Hitting $50 Billion in Revenue for the First Time

Ernst and Young sign on modern building facade in Italy

As we all know, EY had a tough year. Mostly due to their own choices, choices that led to the professional services equivalent of a wet fart. Despite the proposed audit and consulting split falling apart and leaving a $500 million dollar hole in the firm’s pocket, they still had “one of the most successful years in the history of the organization with record global revenues and continued significant growth.” EY has announced combined global revenues of $49.4 billion for the financial year ending June 2023 (FY23), an increase of 14.2% in local currency (9.3% in US dollars). They may not have crossed $50 billion — the press release even sports the headline “EY reports record global revenue results of just under US$50b” — but they did beat last year’s take of $45.4 billion and 13.7% growth.

As you can see from their snazzy graphic below, revenue by service line breaks down to:

  • Assurance: $15.1 billion, 11% growth (2022: $14.4 billion)
  • Consulting: $16.1 billion, 21.6% growth (2022: $13.9 billion)
  • Strategy and Transactions: $6.1 billion, 8.4% growth ($5.9 billion)
  • Tax: $12.1 billion, 12.2% growth (2022: $11.3 billion)

EY 2023 revenue by service line

“I am very proud of EY growth this year,” said Carmine Di Sibio, EY Global Chairman and CEO. “Guided by a commitment to create long-term value for all stakeholders, the organization is seeing the result of investment in pivotal alliances, cutting-edge technologies, and, most profoundly, the continuous upskilling of EY people.”

Of those many billions of dollars, EY has been putting some of it back into the important stuff:

There has been EY investment of US$3.6b in FY23 across audit quality, innovation, technology and people, as part of a US$10b three-year commitment announced in FY21 of which US$1.4b has been specifically focused on AI and the launch of unifying platform EY.ai.

EY.ai combines EY capabilities, AI and curated ecosystems. EY has also announced a rollout of a large language model – EY.ai EYQ – the EY.ai Confidence Index and specialized AI training for all EY people. This follows the launch of numerous AI tools including the EY Tax Co-Pilot, augmenting the capabilities of EY tax professionals.

And:

In FY23 there were record EY investments of US$385m in training which delivered an all-time-high of 24m training hours, amounting to an average of 61 hours per employee.

The EY organization offers 227 learning accreditations – known as EY Badges – across a range of disciplines including AI, supply chain planning, Diversity, Equity and Inclusiveness (DE&I) and sustainability, in addition to technical training in accounting and tax. More than 430 Badges are earned by EY people each day and to date more than 410,000 have been earned since the program’s inception in 2017.

In his introductory letter in the firm’s Value Realized Report, also released yesterday, Carmine says that while Everest did not come to fruition, it “unlocked innovation, identified strengths, and opened new and important conversations with EY clients and regulators.” The report also says 86% of EY people are proud to work at EY. The image below is supposed to be one of them, I guess.

screenshot from EY Value Realized Report

Their graphic designers really like images of people climbing rocks don’t they.

It wouldn’t be an EY press release without the obligatory tagline: EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets.

PwC’s global revenue should be out soon followed by KPMG later in the year. Deloitte reported a record $64.9 billion in global revenue a week ago which means EY is sitting in second place for now.

EY reports record global revenue results of just under US$50b [EY]