Revenue for the third-quarter period ending 31 January 2024 fell 2% in constant currency at Korn Ferry (NYSE: KFY), with declines in both 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.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.

Fee revenue by segment

Executive search fee revenue by geography

Looking ahead 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%.

Korn Ferry set a new 52-week high during Wednesday's trading session when it reached $69.69. Over this period, the share price is up 14.65%. Shares closed at $64.87, up 1.26% on the day. The company has a market cap of $3.41 billion.