Third-quarter revenue fell 2% in constant currency at Korn Ferry (NYSE: KFY), with the declines in the firm’s executive search and RPO businesses. The two lines were impacted by the challenging economic environment. However, revenue rose across the firm’s other segments, including consulting and digital.

“I am pleased with our third quarter results, as we generated $669 million in fee revenue, down 2% year over year, with our non-search offerings providing a substantial buffer against the more cyclically sensitive recruiting offering,” CEO Gary Burnison said.

And while revenue slipped, net income jumped. Korn Ferry’s third quarter of this year had restructuring charges of $4.6 million, down from $41.2 million in the third quarter of 2023.

The Los Angeles-based firm’s fiscal third quarter ended Jan. 31.

Revenue by business line

Consulting revenue rose 3.0%. Growth in Korn Ferry’s organizational strategy offering help boost revenue, the company said.

Digital revenue rose 6.2% with the increase primarily driven by leadership and professional development and assessment and succession solutions.

Executive search revenue fell 6.0% with the decrease resulting from the “uncertain and challenging” global environment.

Professional search and interim revenue rose 10.9%. This segment received a boost from the Salo acquisition, which took effect Feb. 1, 2023.

RPO revenue fell 21.6% amid a decreased demand for placements from existing clients and the challenging global economic environment. Korn Ferry also cited “labor hoarding” by firms as having an impact.

Click to enlarge.

Guidance

Korn Ferry forecast fiscal fourth-quarter fee revenue to be between $675 million and $695 million, a year-over-year increase of between 4.9% and 7.6%.

Share price

Shares in Korn Ferry were up 0.58% to $64.43 as of 1:37 p.m. Eastern time today. They reached a new 52-week high during today’s trading session when they reached $69.69.