Korn Ferry (NYSE: KFY) reported fee revenue rose 4% on a constant currency basis in its fiscal third quarter ended Jan. 31 to $680.8 million. Fee revenue decreased in executive search and professional search due to a decline in demand for products and services driven by global economic factors.

The Los Angeles-based firm noted the decline in fee revenue was fully offset by increases in RPO and interim fee revenue resulting from the acquisitions of Patina and Infinity Consulting Solutions.

“Korn Ferry is incredibly well-positioned as clients continue to navigate an economy in transition,” said Gary Burnison, CEO of Korn Ferry. “We will continue to prioritize faster-growing, larger addressable, less cyclical markets that set up our firm and our clients for success. As an example, the recent addition of Salo now brings our interim services to be more than 10% of our firm’s revenue on a pro forma basis.”

Executive search revenue fell 9% on a constant currency basis, driven by a 6% decrease in the number of engagements billed and a 3% decrease in the weighted-average fee billed per engagement. Executive search fee revenue decreased in North America and Asia and was partially offset by higher fee revenue in EMEA.

However, RPO fee revenue rose 9% on a constant currency basis, driven by the wider adoption of RPO services in the market.

Guidance

Korn Ferry forecast fourth-quarter revenue to range between $690 million and $710 million.

Share price and market cap

Shares in Korn Ferry were up 6.20% to $58.54 as of 12:26 p.m. Eastern time today; they were 15.18% below their 52-week high of 69.02, set last March, according to FT.com. The company had a market cap of $2.91 billion.