Gary Burnison: Well, I would expect some moderation. I mean, there’s no — look, we’re not going to be immune. But again, it is a large market, a huge market. You’ve got people that are changing the way that you work. We saw this in — we really — in April, May, June of 2020, this was our conscious decision that we’re going to get into this market in a big way, particularly around finance and accounting, technology, HR, supply chain that we were going to go big into it and in a very, very short amount of time. I think we’ve developed a very, very high-end business with an average hourly rate of $124. So I’m not going to sit here and pretend that we’re immune. I do think one of the things that is helping us is the amount of cross referrals.
And so, I look over essentially an 18 month period, and what we see is almost $50 million coming from cross referrals, cross sales, whatever words you want to use, with nearly 700 deals. And so, I think that when you look at maybe some other firms that are strictly in that business, they don’t have the wider platform of Korn Ferry, and we’ll see if that’s going to continue to be a differentiator. I personally think it will be, but I’m not going to sit here and say that we’re going to be immune from what we’re seeing and what others are seeing when it comes to interim services.
George Tong: Thank you.
Operator: Thank you. Our next question will come from the line of Tobey Sommer from Truist Securities. Please go ahead.
Jasper Bibb: Hey, good morning. This is Jasper Bibb on for Tobey. I just wanted to ask how you’re thinking about the long-term EBITDA margin targets, just given, as you know, we’ve seen the mix of lower margin interim and RPO come up as well as the company has been able to continue to take fixed cost out of the business. So do you think that 18% to 19% range is still feasible, or would it potentially be lower than that now? Thank you.
Gary Burnison: Well, let me — Bob will answer that question directly, but I would just provide contacts when you look at this firm, and I’ve seen it go from sub-$300 million to $3 billion, that what you would say is peak-to-peak, cycle-to-cycle, trough-to-trough, we’ve continually gone up and to the right. That is absolute fact, and you can look at it in the data. The other thing I would point out is that we did make a conscious decision to address a large market that we think is going to be quite lucrative for shareholders and our colleagues over the next several years, and that’s interim services. So with that and an increasing focus on RPO, when you look back in the past, clearly, there is about a 200 basis point difference.
And so, I think you really have to factor that in to the modeling. Before the pandemic, if I remember right, and Bob can you correct me, we were probably running 15%, 14.5%, 15.5% EBITDA margins, then we saw a huge upswing a year ago. And I would just say that whatever those models and those boundaries, I do think you have to adjust it by a couple of 100 basis points for the changing mix of business as we look forward. But Bob, what would you say on the specific operating boundaries for the firm?
