And so when we talked about the 18% to 19% long-term margin target, when we were coming out of COVID, we did not have the shift in business mix that we’ve seen today. And that shift in business mix between RPO and Interim, it could be as much as 150 basis points or so. So, when we — so when you model out the future, that’s one thing that you have to take into account is that shift in mix. And in terms of returning to this last quarter, we did 18%. That’s really hard to say right now, George. I mean the word uncertainty is such an overused word. There’s uncertainty and like every single day. But uncertainty creates opportunity and we have to continue to be very nimble and make sure that we are shifting our account strategy to where there’s opportunity.
George Tong: Got it. And then lastly, on the Consulting business, you’ve seen actually some pretty resilient and positive trends lately. Historically, how cyclical has the Consulting business been? And how would you compare the macro sensitivity of the Consulting business relative to the Exec Search business?
Gary Burnison: Well, we haven’t had it for that long. I mean, we’ve got today — when I started with the company, it was 0 but today, it’s about $700 million. I mean the truth is that we do not have enough resources. We are completely undersized given the market opportunity. So we that’s an area for us that over the 3 to 5 years has to be a large part of Korn Ferry’s future. I am really proud of the team that we have and looking at what we did even in new business in the quarter or even November and the kinds of things that we’re doing is inspiring to me. I would say that without substantial amount of data because we don’t have a long track record with it. But I would say that compared to Executive Search, it’s probably half is cyclical.
I mean, all consulting services are cyclical. But I would — my instincts would be half. And actually, when we went through the COVID recession, that’s kind of what we saw was that the — what you would intuitively think the more cyclical parts of our business, the Executive Search and Perm Recruiting, those were hit harder. And the Consulting, the Digital, even the RPO was substantially less cyclical than the Search business. And now with the Interim capabilities we have, I think that even makes that story more compelling. You just have to recognize that the margins in that business are different. And they are not as strong as, say, the Executive Search or Consulting margins. But with the Interim business, we are definitely going to stay at the high end.
There’s no question about that. We’re not going to go into general staff and anything like that. We’re going to stay very specialized.
Bob Rozek: George, just to maybe pile on a little bit. The — if you go back to the pandemic, it was a firm overall. Peak to trough quarter, we were down about 30%. Consulting was in the 20% to 25% range down. And then if you look at the whole year period that we’re going through the recovery, our RPO business actually grew 7% year-over-year.
Operator: Our next question comes from Tim Mulrooney with William Blair.
Tim Mulrooney: That was helpful color on the cyclicality, how you’re thinking about the business. Just on the guide, real quick, for the third quarter. Your guidance assumes revenues down, I don’t know, $50 million at the midpoint from the second quarter to the third quarter. But EBITDA is expected to be down like $35 million from second quarter to the third quarter at the midpoint. I would have thought the decremental margin would be, I don’t know, somewhat less than that. So can you just talk about the primary factors that led to that guidance range? Are there large investments happening here? Are there near-term fixed cost that just don’t come down as fast as revenue?
