Executive search firm Korn Ferry (NYSE: KFY) reported fee revenue fell 9% year over year in constant currency in its fiscal third quarter ended Jan. 31. The decline was 7.8% on a reported basis.

Both executive search and “digital” revenue declined year over year but continued on the path to recovery while RPO and professional search revenue rose year over year, according to the company. Korn Ferry’s digital segment includes post-hire assessment tools, employee engagement programs, compensation data tools, AI-enabled talent acquisition tools and pre-hire assessment tools.

“Our performance for the fiscal third quarter demonstrates the resilience of our business and continued extension of our brand, with strong sequential fee revenue growth of 9% and our earnings and profitability reaching record highs,” Korn Ferry CEO Gary Burnison said.

Korn Ferry had $838,000 in restructuring charges in the third quarter compared to $18.1 million in restructuring charges in the third quarter of the previous fiscal year.

Fee revenue by segment

Consulting fee revenue fell 4% in constant currency with a decline of 3.0% on a reported basis. Covid-19 had an impact, but the company noted fee revenue has been increasing over the past two quarters.

Digital revenue was down 25% on a constant currency basis and down 23.7% on a reported basis.

RPO and professional search revenue rose 1% in constant currency and was up 3.6% on a reported basis.

Executive search revenue was down 10% on a constant currency basis and down 8.4% on a reported basis. Fee revenue fell in all regions except North America, which was essentially flat.

Fee revenue by geography

Guidance

Korn Ferry forecast that fee revenue for its fiscal fourth quarter will be up between 8% and 14% year over year.

Share price and market cap

Shares in Korn Ferry were up 7.61% to $60.90 as of 12:15 p.m. Eastern time, setting a new 52-week high, according to FT.com. The company had a market cap of $3.05 billion.