Perficient (PRFT) 30 Apr 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Q1 2021 Perficient Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker for today, Jeff Davis, Chairman and CEO.

begin. may You

President thank This and call for time your Hogan, your Paul thank want Thank again you Jeff you, Davis. morning. for our Tom and is our the COO. With this I Martin, to you time. CFO; everyone, and me is, on

XX As open for call up about minutes prepared to typical, is got material, of the questions. XX we've after we'll which

read please Before we safe would proceed, the harbor? you Paul

Jeff, good everyone. Thanks, and morning,

call could cause results Actual things different concerning to today's At EBITDA. forward-looking contemplated those the Some adjusted materially statements be the we discussion. those in encourage forward-looking will meaning in today's information and differ these than adjusted and refer to company will during will be you our refer additional we future of that statements, of discuss performance the this SEC EPS results call, from the within times, in we in securities to discussed laws. to factors contained filings concerning may

earnings reconciliation at the including on with GAAP, website non-GAAP posted accepted measure financial accounting certain a in generally prepared is of release, directly comparable to principles, most our measures or financial www.proficient.com. Our press accordance

which includes Relations. Jeff? guidance have also posted financial website our Investor reconciliation accordance our under a slide the with of certain in We non-GAAP most prepared a deck, to measures comparable directly GAAP on

excited to for and you XXXX. once And, quarter the everyone with good joining. morning be Paul. of again, We're morning thanks remainder Thanks, outlook our to and this updated an first discuss for

it Since and regarding only ever revenue our forecast been now. we growth full grown. and intensity has as accelerating of that right has the as for two Perficient's then than ago, velocity months year more a strong is optimism business the Just and future our increasing profitability. momentum called issued

can see been leader. XX%. As growth offshore a from we're revenue to on quarter outlook, Organic from you transform the during and digital And true primarily consulting global you results years, for Perficient the to revised several US-based as know, well working way. we've a firm our our was

repeat Let quarter the offshore revenue and year-over-year. growth XX% in me was growth that. was total first Organic XXX% offshore revenue

which and more Perficient. our domestic interest New and differentiated same presence, robust enterprises model, the with customers high-touch aggressively a building and said global capabilities and strong are the colleague embracing and delivery has required services for for candidate careers Demand couples been never near-shore existing at can be delivery our in today.

us. growth. that acquisition our identify with core along talent and -- continually so for team Our we've while tools improved another substantially on-board that support we our recent capacity, in increased differentiator a capabilities and built remains function to enhancing processes, key And out in and we're competency and through talent our can years,

is we've a have to actually Places We're Best and full regards. markets that deals. shortly. win and to abating. awards continue as What's We in talent our this details extraordinary assessing large and an an closed year already choice right exciting will deals shows two Work wins dozen now. of the share emerged employer most pace of few But sign seven-figure little pipeline Tom eight-figure at several many in hiring regarding

unprecedented we more And large as appear. again really these quickly As close deals it's demand.

that with and Some now economy consumer realizing the to decisions also very of alongside But and investment the along course, some Perficient. to of confidence, that, improves of unique we're as advantages made success attribute client can specific right we've general is the are a we result optimism. rates vaccination

continue scale We organization. our to sales

our the continue fresh of full true refer as the partner to of appreciate Our a strategic benefit and capabilities. brand is a each relevant of us growing breadth depth and our more day and They and clients air. stronger pragmatism breadth to and our

proven As customers talent. delivery added an collaborative we anticipated. The XXXX gravitating are capabilities changer near-shore our have bigger than I and we be earlier, blend in domestic compelling mentioned global and to approach to even of game

a many, Across legacy business. industries, dozen many channel And Perficient key an there more fact, the In our our are solution and pipeline. have factor we to in and collaborate accounts more introduced platforms we remain partners disciplines, important continue technology relationships routinely we've in with than succeeding. and strong

metrics, as Application results the past this we've XX% Success the four we Just American the above which named Year, as particularly American we speak the Partner or Paul Hat were North our the at financial to shortly, of utilization, Year. will but of Platform goal And Talent with quarters. performance sustained North key month, of Red the the were U.S. pleased Partner again well for

the moment, prevents see becoming details call I history, we'll the the collaborating year second leaders to the accounts has who spectrum financial Paul, opportunities. are over guidance, the reflects. us Perficient's to business share far. the accelerating business down pool and managing increased XXXX the I'll at And proactively for cylinders discuss Our slowed from the profitability. talent across Nothing and turn our firing right quarter anything will as on which constantly key entire now. quarter. all in first can't shortly, results in is quickly that strongest The a our Paul? That's With that, so of really input

an XXX and SG&A of compared XXXX. quarter the prior million, expenses reimbursed quarter, the period. revenues XX the increased SG&A million, XXXX $XX.X first million Adjusted to million XXXX. period basis first excluding were for first expense the of year quarter ended of to March of was revenue $XX.X margins quarter the XX.X% or $XX.X compared the comparable first was of in $XXX.X decreased revenues, XX.X% EBITDA in XX.X% expense XX.X% revenue prior from for XX.X% of quarter or in to Services the to percentage as the million increase a over XX.X% prior period. in $XX Gross to Jeff. points Thanks, compared comparable year

$X.X from prior $X.X offering. year the million the comparable comparable million compared as of increase XXXX amortization million Net period. First interest XXXX year expense is XXXX. quarter the $X.X acquisitions increased August completed convertible The the of XXXX the associated included primarily with debt $X.X expense of for in result a period, primarily first of million, to in to quarter prior in

per XXXX for rate quarter the tax to due the in was effective XXXX. effective of decrease The the rate in relative XXXX the as first share per Our EBITDA. $X.XX of increased first the to quarter first from XX% Diluted GAAP for of in quarter first the was primarily share compared increase the for improved reconciliation XXXX to from GAAP quarter XX.X% XXXX. $X.XX earnings Adjusted press tax three a the increased a $X.XX compensation primarily $XX.X a XX% ended of to related quarter first March quarter for the first of in XX, the deductions increased $X million to million of XXXX, Net quarter for benefits during first in earnings. earnings XXXX. recognized quarter months the of the $X.XX to from first full income to share-based See the in release a of share share XXXX XXXX. result of

XXX was was XXst, XXX. at billable ending X,XXX and consultants Our X,XXX headcount Ending headcount subcontractors. including XXXX SG&A March billable

deferred issuance million. debt outstanding discount $XXX.X cost as XX, debt XXXX unamortized Our was net and of March of

our me XX capacity credit million $XXX.X -- million of also facility. and on and excuse cash We XXXX as equivalents unused cash in of borrowing XX $XX.X have March

leave well-positioned execute plan. our balance Our continues to very sheet against to strategic us

XXXX. sales commentary now the days little XX receivable Finally, metrics. at of I'll more first end the days accounts of compared over quarter these outstanding end first behind turn Tom Tom? XX to decreased quarter to of the a days XXXX on the of call to the at for

away. Bookings greater the you, and quarter compared Thank than for year volume $XXX,XXX Those during booked gotten XXXX far first that's of good a the but Paul an in ago XXXX period of during deals in record start off XX a morning large fourth terms incredible to really quarter and XXXX. We XX wins XX quarter. It's XX the everybody. of to booked. deals in

market mentioned before than work QX. during delivery executing quarters a single and and that's not be about is traction are now to anywhere, resources global I now deals type now. And true we large in that talent yet firm. won embedded every a Jeff success talked deliver. we're ever meet the well and our how transforming we More working about really offshore. of on-site win of cannot underscores global right travel still customers prospects really couple have deal and the our our us have -- the We As our to large in more we're of XX% virtually we into than

customer broad solution partnered out full engagement modernization. example website mobile all of health scope As expertise. several legacy overhaul provider a its require services insurance non-profit an and portal and beat to We due customer for of experience competitors to a which we recently our with experience

provider's global enhance we our Our be for in the continue That's engagement this eight-figure experience, recognized expertise. is digital healthcare where the across advantage. engaged continued in team of many platforms, their technology just processes to will examples competitive increase to the and our of one success that a leader industry customer improve

consulting week last just ranked Healthcare us the fact, largest healthcare fourth In announced firm. IT we that Modern

as where this significant shine. experience. and Financial delivery in we is healthcare is to our another work the and continue momentum to improve industry we enhance space services with patient Our clients

company's banking that need. with services phase information to initiative location they We from holding As change by entered they and strategic the interact organization the supported of an stakeholders an to company. treat next example use allows previously centralized we a the creating recently data across project with investment how a

team During offshore data onshore the project, solutions. experts, include delivery more subject initial matter second and to of on XXX expertise providing development core will phase expand platforms the our than and

to things and So, to of momentum what us. I'll discuss XXXX second over And again, a remainder lot the great back year. be and fantastic quarter with a that, of turn quarter appears of ahead to a just Jeff

Thanks Tom.

the of Perficient revenue $XXX XXXX to to $XXX So, quarter second million our million. be in range expects

per raising adjusted XXXX open raising Perficient share of earnings range $XXX share full is $X.XX guidance to year a range earnings questions. million quarter raising $X.XX be per be of earnings per quarter of to second the is $XXX up that, earnings of to and expected $X.XX a $X.XX. can is operator, to range guidance share $X.XX GAAP for share call to $X.XX GAAP we a its adjusted to XXXX Second per to to in to range XXXX in million expected to $X.XX the range the and $X.XX. With of guidance

first Mayank Needham Instructions] line Thank question you. comes of Our & from Company. [Operator the Tandon with

And strong you. how additional you are Thank to thinking for Jeff. XXXX. you past. Congrats wanted to is the versus growth room for recruiting we the the leverage? I on as headcount the at look the there growth main the in at first then you about and about know or talked you be fiscal morning year? should year, ask guidance start look pricing ABR increases the expansion catalyst of utilization Good revenue expansion, I still remainder pricing to leverage from this of

the of a think part a running at might or I rate for utilization pushing but great sustainable last see through year. we Yes, going I above be the Obviously, call a think XX%, lot think mentioned a on I bit primarily two, as goal. the or I bit that quarter sustainable We is level. up hiring. we're I as ABR long-term it's that's creep a can not to we this mentioned let little the increase. think We're little most for which for

to to XX% of is now. actually that margin up primarily to is goal revenue expansion Our which our shift gain mix offshore through

think nearly double about year a ago roughly I were X%. we that's where

wanted And I just I wanted turn for follow-up -- it. to then is. to how Got demand given the strong supply to side. my

war headwinds much the the given some a is So, fulfill you attrition people that one see climate to could for there the if rates if is you And the on pressures also demand? maybe in may then margins wage potentially are finding crimp strong how demand speak could a to and case. talent, as such of that

be perspective on that any would So, helpful.

of a there even the in throughout Sure annualized quite surprising. XX% at point to which goal. But it start the right our in COVID at I'll Attrition middle low is XX% XX% not XX% your regarding attrition. quarter absolutely. was comment about the -- last was

at what maybe in we Tom? accomplish on quarter I'm going terms to him let comment is but preferred from And Tom the Tom quite comment. the Certainly going hiring able in So, reports to let market I'm were attrition of on acquisition to we a and or to are little favorable talent is leads our market perspective tightening, first to him. why relative large. a the employer. commentary

Jeff, the solution. really -- we have a differentiated

added far of United will North mentioned Columbia North as in alone. the I as for results. in in That's where demand Jeff top adding America showing high we're India States, we've a hundreds XXX-plus we As have quite is on individuals, hundreds as we're as say American differentiated we added well our in approach. as

awards getting talents. with We are into bidding not

have acquisition location well. to of We and want join demand employer a talent people Perficient and choice. in to We've the that a driving added which an we're way becoming as

Jeff the think part and a a part winning to that's team. of mentioned of at part and to Perficient team. want approach bidding comes want great to of be People want really I growing Work. places where really They be awards transformation They digital a of play. to working. getting wars. talent holistic to Best looking versus a And acquisition We're that's into technology

don't for a for which to advantage us. I mean competing we're and quite for overpay successfully big it So, we have talent is

it. XQ expectations organic one in and organic housekeeping sorry growth the the you. growth your item. for XQ year? was and Thank then just What Got And for in full

Yes, it in quarter. XX% first was the about

you a year total organic. about midpoint right around we're sorry second of year-over-year I'm of XX%. is the want at and XX%, XX%, to say up roughly the growth If XX% And XX% quarter, XX% look -- I for the midpoint the

Thanks.

Thank you.

line Nolan with Blair. Our comes the next Maggie of from question William

line Your open. is

balance the more previously a the Congrats moving that onshore and results. was delivered is from delivered versus on offshore morning. delivery being being offshore from wanted Good that little the work into existing start? of to offshore engagements offshore. I What talk the bit mix kind new about of

a the predominantly its It's business. new blend but of two,

work So, that by budget maximize same. the want we're offshore. some we're not helping their by cases -- in be And some clear clients I to transitioning budget to remains potential the

work and for and is us. same margins the the they win-win done get better the a more both client budget. So, outcome for We get

much where very relationships I we're of on So I'm completely existing or and see or estimating the primarily in we as XX% but business shifting into say is where weren't -- mix But offshore we're be might driving introducing pretty here, we're business accounts what every model. pursuing the offshore. that's I new weren't would changing say would new you deal offshore propose. That's can rapidly considered we new

differently moving than in offshore at kind work Okay, of some great. offshore near-term key the past Thanks. And given you for about think geographies plan of XXXX then you were the to just be are when the you looking more like resurgence maybe and in India? nearshore kind of COVID

a sort from impacted negatively several well perspective. India, we've I only far extremely But so a by that other human countries. faring really know challenge what's not happening in We're a business of that. it's or but been not tragedy

or cases mapped So, we our are requirements and offshore on pretty what requests that customers' decisions often pretty are are own various the control what exclusively needs nearshore. exclusively decisions based is the that. locations on their in like In versus we're and feel best what needs. some much have to much But and assess skill sets their where our based make of we in again they capacity

Okay. Thank you.

you. Thank

you. Thank

from next the of Jain JPMorgan. line Our Puneet question with comes

open. line Your is

thanks taking performance in quarter. question my Hey, good for and the

with you emerge pandemic, with you seeing As competitors digital than you set are now robust or more competing changing? competing more names the plays how more is new from your offshore mix, low-cost Like with are competitive a before? obviously, pure

out a are I many, any still digital. and we've have day It's pretty digital and their capabilities -- years -- of that a standpoint And as in competition. we're have been seeing evidence But the would we say the on for I'm much wouldn't some many improving stalwart offshore curve. from as shows compete convinced that interesting. now new of say I was we're with our we big the surge we've because that built we offshore. day ahead still and digital emerging focused

not don't of that true capable. any digital We see competitors guess claim our them. our I compete actually probably who with interestingly we competitors. don't all is offshore of it's Those So, of enough.

them and I'm ahead we'll we're we're competing stay primarily of majors that confident there. the with again So, and

Got as you talk in XQ hire obviously in in COVID load increased XQ? you. might to cases case quarter, the and that significantly ramp-up and this pricing India have in And how impact your could about location potentially ability

a good Yes, question. it's

of growing some than greater it April I'll two I the that success last phenomenal seen And to the obviously speak of for guess but XX% headcount. we as remains literally even be had in tell of in terms you quarters at we've month

and COVID earlier as he the apply maybe resources mentioned out, as we in India Tom to of not India had we've India pointed even India, the the in differentiators adding so for I in people just not exciting. apply more And think Again, US, interesting environment. Perficient comments have of they they're the the coming we're because frankly success to well lot even all Colombia out in our the pointed that US. don't Tom as alternatives So, as great both in work as And to are winning. locations very interested as a

So, The And we part driving hire we've had seem are for where the frankly demographic threshold people be great on of success. the sort is targets. to reluctance to that below of mostly little a susceptible any the doesn't pandemic COVID.

as benefit I So, think well. a that's

you. Got you. Thank

you. Thank

Thank you.

Our next question Jefferies. from Surinder the with line of comes Thind

ability deal terms a the strongest additional tap the to Jeff. commit you've lot willingness how in this clients' still Tom any Obviously, of the is future at to large color should go-forward wins question like And business we basis? as Obviously, I'd one you there a just a is that's win opening they left pipeline bookings seasonally to but Hi Are just the number. numbers with point? in that biggest point? spigots? of think Can that on the of at this on start provide XQ simply mentioned kind the to XX up about seen.

Yes, Good absolutely. question.

So, that typically well. But sure record or year-over-year disclose pipeline year-to-date year-to-date I organic our when which -- of deals normalized that bookings. our multiple look our but XX% -- organic in and that are those year-over-year Along specifics. particular at comment at fact in weighted up that substantially We're I'm for pretty don't historically know probably don't better. is they XX% a with close we I'll year-over-year. our bookings we are are. a double-digits as

year-to-date as as So very the results have outlook very, the been well strong.

Got And that of you're terms terms it. historical to That's of helpful. actual mix any then versus the clients? in the the wins existing at in relative new logo color wins seeing, --

that really lot. we're of year was quarter. And our the existing I didn't given seeing And the said our And the of wasn't the that given And customers. in sales that any lot terms and the it's question. sort seeing in of the commented the who processes, contract of not because more shifting new. for numbers a in pointing alluded but adding good of Fortune backdrop geared the is structure, their of has investments bad accounts, towards Yeah, didn't is don't We combination management just XXXX drop a existing that new part being wasn't accounts sliced more logos earlier strength made versus -- a prescriptive we terrible say to towards That a strength customers increased. And I I a recall of certainly between two, legacy year clients logos. we're us. Much have compensation think both. last in are but stalwart we've it's spending capacity. new And out of worth that lot in structure

The little. increased what say. is seeing there is increased share spend up spend I a should So or we're

of the got we're at expect, But we've double-digits perhaps. relationships. percentage As we've now single-digits more $X I just -- mid bookings for more in we lot significant as define new of you shot we good got million whoever annually enjoying think our more is that believe at making we're a would again, has and to out many Gartner's where and we're single-digits seeing new upper existing we relationships. those digital as it accounts identified And logo accounts right low or or than logos getting enterprise those a beginning can which of cases that

set I well think very the stage XXXX XXXX going is So beyond for and future into the beyond.

one then the And Good number. I to related to hear. bookings guess

about the was wins? seeing respect bookings of of the with In change obviously consulting terms color believe revenue Healthcare the terms the earlier the you're business, more within Any last of to your than any strength the bit maybe over segment. a practice the quarter on that there? I commentary healthcare mix mix in

consulting up say Yeah. to a up is about is practice. want No. Healthcare bookings very year-over-year. dramatically. But financial We XX% services the robust substantially. are I improving had management

back in very management a clients consulting XXXs with issues there last driving et that an we have earlier, a kind end traction pretty business bill taking dollars year of or technology two off. where comment Finserv lot more high prescriptive on hour. high the of I've cetera getting stuff to But practice focused we've regulatory that's the We really in robust and work or and made rates in on XXXs

year-over-year. two between half was the about revenue two. And XX% that up So represent those of verticals that are our our about top probably

back get I'll additional queue for questions. the in it. Got

you. Thank

Thank you.

comes Barrington Research. from question line Colicchio next the Our with Vincent of

is open. line Your

curious, quarter? about business. the Yeah. strength you part of in Is Jeff, deal nearshore you? is new that excited that helping the sound the of I'm signings

our clients and And It pricing Again, see but America little improved embrace in We've time mountain good. are our messaging. offshore just India. than time value But our Perficient is is the zone, the and for time the that. clients obviously higher place Latin I now. valuable The helps. is English like improved it. is hot we've in a Customers So strategy example And the perfect. a collective, it. think Skills is really strong right? zone's zone right absolutely nearshore

minute mentioned existing ago. relationships certainly helping win expand deals of I those new a and that it's absolutely some So

of it on that sales give a in update force? expanding seeing looking And productivity been You've the broadening years. Are you're could recent you for? an you us

improvement think made. What's us attribute the We are. coming relative really mentioned -- some of of I as earlier, we've I our Absolutely. the own has to into to I But lot certainly is think a with exciting those do climate. to we can it investments

me years. the What had this they newer heard under mean stride that dry that second, increases probably before Many of have become their about a powder. their now those salespeople of I quite belt. we of productivity couple really that talk You is kind seasoned hitting by going is aren't yet It's back -- substantially. more year and as an exponential get curve that third

we're seeing hiring that to So of some really. and we're continuing and expand

to to Our continue ahead hire growth. help that and organic goal of fuel is growth

Thank quarter. you. Nice

Vincent. Thanks,

Thank you.

next Group. Maxim of comes Our Vander of line from Jack the Aarde question

is open. Your line

guide. you. guys, and on the solid Good morning Thank strong Great. congrats quarter

Thank you.

returning just solved guess a of business a to the start with been the back couple questions. question terms I of in growth. I'll Clearly, growth for of has Jeff. organic

want on business. just I maybe the So touch of to front acquisition the

half the details, can term without that? during any thoughts acquisitions And any just more know I expect acquisitions, acquisitive strategy. much too near of Wondering the three just given in XXXX. closed providing You don't but your we on first any if wondering

say nothing pipeline. Sure. number program question. would in and very active of I of still in we're good things impending. the have Yeah, sort Yeah the a

to hoping quarter. Could this maybe we're be get more something done So QX.

you three selective. reason half, out, a can great first as really the closed year, Last quite lot As you and our I that's And as the in ebbs we we're and see. -- success we've but mentioned I very, before pointed really very had flows think we program. with acquisition it

near very few it done the we get And we'll works And find. a we again year, three what something get still could got optimistic I'm deals or in see this here can a the in things will couple we've hopefully, So attractive. future. done but

-- That's or that. a that's if XX% you've Is think before not overall kind the think between obviously. still of it? your follow-up from there I historically into maybe -- sure is certain guidance targeted about level just of a but and revenue acquisitions. rough somewhere you I'm helpful. a is not some revenue Maybe ballpark, But which to X% previously that baked how

Yes.

see a our been last great to year our love -- we'd think was as for I goal even or To more. move And up repeat -- stated year revenue. million around run your we to that rate XX. and acquired we're did about last think of growing, goal $XX I'd has year I point, always add like

So, the really a we in rate. child deal including revenue did kind plus was ways with plus many the PSL million size, poster $XX the -- run of

we've same the technology, of dynamic that. At time, got now always. lot an appetite really So, as emerging for a very right industry and

I in now than recent years. more think maybe

hot make may right of So, they've and as sense we're them skills, new pivoting some smaller well to these be if acquisitions got that equation.

of it's this exceptionally touched maybe just for deals large kind but XX That's quarter, on -- obviously, helpful color. more strong. this, Tom. And then, one everyone's question, Tom, maybe just it's

of that you expect kind is -- as what is a delta like is scale? Just to quarter wondering forward of and level that is last wondering being the about sort delta. the Perficient recognized relative every outlier Just or history, of the year year an here, more basically of that delta in global clearly going last on that

grow of far of year-over-year growth I'll is volume Yes. as love don't the indicative pipeline. outlier. that's continues be tell as but I'll I'd far a incremental as an size deal increased tell up don't is think even size see think say, it's the deal quite know or as size the to I The sequentially, you you you, also they'll The significant. as outlier. large basis we're I deal up, but But from don't I'd what well, pipeline always get The to strong. as or if promised and after. of I a pipeline is strong an volume going to is going it's forward. have deal that

good don't direction. velocity I mean in can't but every think I definitely of single really So, it's we quarter, an going right that it's be year-over-year I outlier. to have high say, trending compare that now. it's

strong Great. and Well, to again guys. congrats the that’s encouraging Thanks. on hear very quarter,

you. Thank

[Operator from Thank Our open. The APG. of Instructions] Brian question Kinstlinger line next comes is the with you. line

the question. talk your guys. knocked consultants delivery to year repeat be Hi, a of of The the expectations And you, XX months? don't over dig XX-XX XX into Yes. or mix. offshore I want got nearshore. outsources minutes. hopefully are Indian traditionally I long-term offshore Nice and your either your to think do I to where mix in But or or you on-site say two. goal? sorry, you'll XX in What's targeted off next XX% for

a Yes, good question. it's

We expect additional XX in the the into pace to think fact actually acquisitions the growth end America. to of perhaps that to to next this year. by certainly continue We're are. that's I given have quickly But we we of pace going XX, move that year, drive alone, from Latin organically in exploring

In is of set basis, in project terms don't ratio a to don't where really high on folks ratios. think We the that peers the engagement. I some I are lends depends more high terms digital you, And of itself are folks course, to And But a high-touch. digital to that Frankly, level implementation to that of pursue. of those our think that mix of blend. use tenure a onshore. competitors experience it really, going and offshore skill really are tell I'll it's our on hybrid we're the get approach,

to to understanding that It's of demand business. are in said in be understanding United relevant understanding really management. general, what I factors. off us the for clients, future. happens business, don't know about so it's in It's a States the And any a lot about like culture on I business about So, customer the on depending to all their in XX-XX the the industry it's these time near going it, their change

think we It's advantage I to that's a So, we're an that have. protect. differentiator that going

between Great. I versus ask more the significant? you I'll one have it that, differences talk close? follow-up it Is offshore? and gross Can question. one on the then of nearshore margin Is about just

Yes, basically XXs. in Yes. close. the it's It's It's same. the

Yes.

the bill similar and So, given nearshore higher obviously is rate better margin?

Yes.

Yes.

Okay.

financial CPG. and and were about well some what sectors? Thank are granted touch of sequential in services. wanted should And I in smaller the to healthcare these as sectors? posted We you maybe they two sectors. of much put if auto a we They kind growth you. Lastly, to ramp talk breakout But, to context any continue than into revenue, in two retail uptick commonalities on these driving as can don't expect

is that Yes, outpaced more sectors just I unique. many And account, actually going -- those quite to well each being in They're expect without to handful only a we've names, work for services. of we've supplier, automotive which yield a to There's that's had relationship in going that's nicely. those and really in particularly and accounts in got some We've XX us just bit with respectively I healthcare think the do across globally. and the moved a we've so. but are happening And grow board. that one XX and pretty Tier many, years, naming significant got very a that where X sectors, financial

growing as on relative still growing quite they're So, fast, a but maybe basis, they're absolutely. not

Thanks so Great. much.

Brian. Thanks,

you. turn call I'm the back to showing the questions comments. Davis no Mr. to I in now would queue. like Jeff for over Thank further closing

your thank Well, for Great. all you today. time

As rest reflected reflects. what business really QX where at, year the the rest you is for about excited of the and the QX and guidance we're can of the what see, year the

forward again, another is time, and the more to Thank in you And to obviously, XXXX. we'll more and stage days. your be think for look the you you. set year in talking thank as year progresses. that about XX for speaking I I about But,

concludes Thank Ladies and gentlemen, for call. your participation. conference you today's this

now may disconnect. You