Perficient (PRFT) 5 Aug 222022 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to Perficient Q2 2022 Earnings conference call. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question-and-answer session. [Operator Instructions]. to Jeff conference Davis like speaker to now today for Chairman would hand over the your I and CEO.

begin. may You

Thank our President your Appreciate COO. call Martin welcome me and CFO and our Hogan the Paul today time. Tom and on is you With everybody.

which XX have after minutes up the comments per of We open prepared call XX usual to we'll for Q&A.

would you statement? CFO's please the Paul read proceed we Before

Jeff Thanks everyone. and morning, good

today's forward-looking those company statements we certain we is measures things discuss different today's cause performance adjusted and accepted or a most generally will to comparable measure the will during It our during our At information our results future laws. we at discussion. accounting purely to principles be directly refer www.perficient.com. forward-looking be than adjusted reconciliation the the Some results of the times contemplated financial could including contained website refer will with those release to and FCC EPS in posted this securities within call in you accordance in of discussed the meaning may GAAP. of concerning concerning earning to filings press EBITDA, to statements that on additional encourage Action non-GAAP prepared differ call, these from factors financial

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

was North of with optimism XX% your continued remainder bill rates period the and an revenue as discuss second and double all-time our remained we in the average Paul. growth, per high Adjust the offshore of Thanks earnings during we And our as quarter again time XX%. rates share year. by increased this as American appreciate digits. up morning once well performance for

are delays in project isolated an to events confident with While each of of cancellations there than not we These we offshore any quarter, broader do them the quarter. and indicative these evaluating in impacted normal the trends. incidents believe number and be shift modestly there in more revenue always they accelerated were are to a combined are

bookings fact, robust than with the prior more versus XX% quarter pipeline period. the up our year In remain and

bookings me versus XX% repeat for Representing bookings. Let start, that. QX period. QX all-time up is prior incredible at an year a July also high to organically QX an off were bookings. the also was for great month

nearly million at of continue Just XX% single last we week $XX deals we plus offshore Organic client opportunities overall. well in number day a and than to XX% more XXX pursue a of offshore and grew bookings revenue eight grew a revenue figure single closed at quarter figures. into the of

local reached colleagues. fully in combination and double-digit value our delivered revenue ADR continues with all-time non-US percentage Our to who of of clients global delivery high Offshore range the added I by as an reach. integrated resonate global our model and mentioned before the

I we're revenue some again had So, quarter. in more the alluded impact top as to revenue which and delivering offshore more on the line earlier

expertise. facility offices and to us and both space and satellite for and continue office America in opened analysts office increased Latin nearly adding in Argentina recognize India. in base and adding both Chennai a in our scale our territory Hyderabad We India to to Pune, in continue and We new into core. Bangalore our XX% partners recently net expanding and Industry by new capabilities

partner week our in In And enterprise just a fact recently Sitecore provider performer strong with application Forrester modern named their sales this award. us awarded service development excellence Perficient wave. the

to on Paul things turn Paul? continued for that So and a solid details to more quarter with of numbers. going growth the over I'm

of XX.X of to revenue for XX.X prior SG&A million the year. compared second for quarter the was the the of growth XXXX for XX% million a was to reimburse XX.X% in organic Thanks XXXX. revenues Services of revenue services second Adjusted the quarter margin or XX.X% to a XX.X is percentage count from SG&A the year. compared XX increase XX.X%. expenses prior XXX.X million were over was quarter was XX.X% compared quarter reimbursable Services for the quarter of XX.X% quarter the second of for of in gross XXXX. stock second Jeff. or XX.X revenue to quarter over decreased expenses second second million, year excluded the excluded expense million in EBITDA expense XX% XXXX. XXXX revenues at Year of

quarter quarter the billion XXXX, new of billion result accounting X.X for second standard as the to million year of for from period. year decreased acquisitions debt prior second amortization X.X million for X.X to is intangibles becoming of certain fully included in a a six in of adopting interest the amortization Net quarter of due in The first XXXX. decrease in prior primarily to expense amortized. compared The XXXX the primarily convertible

quarter. a of second earning the XX% Our share tax for was XXXX of XX.X million from of quarter the second XXth share increased XXXX. XXXX. of of XX% of second effective XXXX the as quarter of for quarter comparable three in Diluted XXXX percentage $X.XX a share months income in primarily for XX.X% earnings GAAP cents to the $X.XX increases the higher quarter Net second the prior-year XXXX increased of for of to XX.X second to end compared the revenues June second rate quarter from in a $X.X quarter as XXXX, SG&A in $X.XX Adjusted and lower million per result revenue. per the for

months XXth reconciliation period. for see expense XXth You reimbursable prior increase $XX.X to from turn comparable XXXX. comparable was convertible excluding revenues June six prior million $X.X Year million, ended to XXXX XXXX I'll release ended period. to million Adjusted XXXX, year-to-date for in months XXXX, over compared Services GAAP XXth results. of million XX.X%. decreased June for June June prior year in period. months six full revenues included million period. in over result revenues was $XX.X the end percent SG&A year the XX.X% XX.X% prior for the revenue the quarter expense comparable expenses, amortization six increased year six standard year The from interest the prior the of XX.X% six the of a and decreased basis organic of XXth compared months now or the between $XX.X million $XX.X in debt the prior and of were a million for again a XXth the adjusted expenses, Gross XX.X $X.X XX.X% million primarily, $XXX.X XX.X% adopting press compared XXXX. of year percentage services was comparable to EBITDA of months can to months of in XX the SG&A first as ended compared earnings. June year for the to the to year XX six ended end period the XXXX period million comparable Net points accounting the June XX.X% in XXth margin to for new a or growth a

a per months prior the primarily Our revenues percent from the increased comparable year to XXXX revenues. rate June to year has per on the six of was ended the months for million of $X.XX six six SG&A share for June XX,XXXX the for effective result period. the months the to prior was $X.XX earning earnings XXXX a compared year period. as prior the of XX, $XX.X in Diluted the lower end period. $X.XX to $XX.X comparable months period, compared comparable higher tax to increased That income XX.X%, share Adjusted compared year prior million for of XX.X% a XXth GAAP for June for six $X.X cents end

XXX. June Our XX was billable ending subcontractors. X,XXX consultants head at XXX including at XX, X,XXX SG&A June count global and headcount XXXX was

of was debt net $XXX.X outstanding of June as deferred XX,XXXX million. cost issuance Our

also We on and our unused facility. equivalents in and cash million XXth of borrowing $XXX.X million credit of $XX.X capacity as XXXX had June cash

against continuously Tom a Hogan. metrics. behind sheet now over to positioned commentary for very turn was little call to Tom? balance strategic plan. Our well the I'll execute our the

Thank you, Paul morning good and everybody.

As Historically, progress very is to quarter worth we've Jeff deals those and as during momentum off and the that winning work mentioned, start. more each large a second quarter our shared classified continued the or booking's fast range. we've $XXX,XXX third quarter in

the global large deal a of compared deals of sense to second the multi-year, partner up in we've deal share. the during second that booked positioning second than deal and insurance recently XXXX. booked long-term We now the volume results scale, success data place in $X quarter analytics couple course history we'll a XX went average wanted $X to adjust for XX to greater of as the partnership, and makes of point We're some compares again XX is more a we a Perficient and a eight-figure A greater XX%, as in growth our largest future, appropriate second which forward. the healthcare QX size Again, $X with XX moving framework, deals feel to quarter the reach health greater the services during those million million than quarter the than a well. building I trusted of it XXXX, XXXX. higher. our where million on of secured sharing highlights Given greater we'll company. to one in in quarter be at And modernization. so addition And of We've company's

accurate stacks only work to the also Not bookings. team financial our data, largest company meaningful they're platform accounts, reporting across of that generating financial with our global technology will to multi-shore transactions enhanced teams better several contributing provides capabilities. a many are Our build

Our a providing recently services one sales in many to a management Latin benefit seven-figure team project, pursued pharmacy healthcare provider. America

for custom will team client. and include will testing provider run systems to applications. development, operations services, IT the work client core This support service all software end end their the and with work Our for

and remain continue perspective. to industry platform diversified well a customer We from

to During a the revenue of performance booking healthcare verticals and the financial strong quarter, utility remains and continue demonstrate automotive, services, energy perspective. from solid

in we more incredibly work performance profitability project surfaces detailed leaders the also and calls, We've to budget our we year-end clients streams. systems in create in business internal development remain as the associated and margins spoke As about tool that project across continue world. our for ensures contribution with in competitive resource to of custom-developed advantages. metrics, on and enable focused our The provides maximized land even the enterprise scale a in to an data and us individual real-time including expand applications granular client QX accounts, Compass, utilization with investment new we're investing and insights, proprietary project as that existing tool rapidly availability dashboards, that particular

alerts added for the We to or leaders, leaders financial proactively continue tool thresholds, functionality manage us key when outcomes. enable add current projects senior cross to We metrics further allowing improve can upcoming and performance and to and client to respond projects.

tasks resources further project For leaders, will scale administrative at third freeing additional more of quarter and to management, spend specific made directly globally. and easier to Jeff it with And that reports to to to centralize we innovation back our Perficient tool, things make as standardized project them will Future certification the into identify one turn time remainder which grow clients. additional scale ideal for enhancements I'll and the working include XXXX. task a project with discuss

its range in million. expects revenue the $XXX to Tom. to third Perficient be quarter Thanks, $XXX XXXX of

range expected earnings Third $X.XX. share GAAP the to be to in quarter of per is $X.XX

range is expected of share Third be to per the $X.X to quarter $X.XX. in earnings adjusted

share while We expect $X.XX of we're at XXXX and me GAAP to comment And full-year I reaffirming what reaffirming the line be XXX revenue the that couple were of the to adjustment let down. up It's our shift reflects enabling our of just open adjusted of is billion per adjusting $X.XX. the above call and to also but norm which and earnings billion range range XXXX range XXX to we're top to $X.XX in is earnings mentioned positive. Operator? enhancing somewhat making reaffirm what's earlier material per cancellations I $X.XX share actually say a of questions. that we'll our of earnings should revenue revenue XXXX a offshore impact advanced or actually us that even course With margins, accelerated a the for which which

with Maggie [Operator William comes you from Our line the question Blair. of Nolan Instructions] Thank first

is open. line Your

verticals? on the how Hi, QX thank but have the a on and on little XX rather maybe large details you're are any here circumstances top What then you A good I what feeling ask just confidence clients there? you. a they're more any info involve of deals of trend? the gives did that they than about hit isolated particular to or lot cancellations And indicative bit

confident a pretty it that as again actually trend, business of the are each was that looked That's macro-related. or isolated not in we not business quite any one priorities function them it shifting really weren't confident particular And to it's reasons at a industry. conditions, or of of isolation, was which we're

is the this was nature industry quarter. this it a again in of beast So number the terms of unusual happens. in had in we that the It

Okay, preferences the good to offshore to absorb or was to profitability impact that revenue, move the see matter I'm it that is guidance, these some but understood. a And then driven face of you the amount reaffirmed for on that planned positive of of bottom-line you by or a requests client that's in trying and cancellations? curious had accelerated

it client market. it’s function what What offshore be would I in quarter but for of a referring million. incremental preference not to by revenue represents so is was specifically it be we of – more I'll very it's to $X more exceeded specific, No, revenue the really forecast than us. our really lot a And the

translate that trend US It's difference. million if four-to-one the And through the you about seeing a a that $X on continue back revenue rates. year. we're So it's ratio to

that's So impact have again the a and revenue component some in on quarter. we're cancellations, addition adjusting the the it again of reason did that to material

much. so Thanks Okay.

Maggie. Thanks,

Thank you. by Please our stand next for question.

from with the Mayank comes Company. Needham question of next Our line Tandon

is open. line Your

decision-making obviously you've all beyond? look a of good I as Thank back some the client at for before bookings and the and demand. you. economic broader economy next year but Jeff, and you that's times uncertainty through of lived different months client positive half morning. just are the priorities, for a the and is to Good get over terms this trying sign if given the the how of Clearly in wanted six sense maybe

is current but also certainly guidance put what some to conservative we also say exists. remains out on there want we the I robust. a would the earlier, climate any volatility things surprises We believe I so forward mentioned don't going reflect again reflect that pretty of

robust and believe now. having recent don't remain right However we seen are said in to we related everybody very from activity the your pipeline To this events the of these that, what ups industry macro is point, downs see and the I'm in quickly in in. but climate would what I right us, more ever is we're that confident we've locked of of pipeline the so bookings than change say right now, front in and can terms already the seeing which

get the then you turning and to you supply clients just to to your sense wage the beyond Are impact. there these costs protect Got sure are industry it. able seeing to cost can And side, pull through the some I on everyone probably in you the increases? you're price to how pass want I'm inflation other incremental levers higher offshore Are like navigating of, margins a mix help earnings? pressures?

for I'm AVR as going increases as increases of offshore. Both well at specifically, not America of modestly. which substantially proprietary up disclose earlier those I was mentioned reasons are. both for those our but that exceeded increases, cost we North least up, to Actually, actually

pretty control reasonable we're of like we we're So, pricing and in particularly great lot success that the having they're that have passing It's clients understand, and in, said, new in clients, of on. climate I engagements on new terms a understanding. it

guys we're I'm received. Bright that. we're and I And I'll getting largest capacity this a going then That's great program, area we've offshore into had continue of and new that these our additional it, our exciting to terms as -- bringing in them also, groups couple in we bring capacity mentioned in are the constituents nearshore to underserved in to It's when those other recruiting Paths and in and And gals. as offshore, terms Very that campus a very well pursuing And get we’re leveraging well. where here blood and ideas, fresh is the begun to you relief reiterate say well. will see well. and largest but extremely history. of lobbing areas In already ever of

we're as tremendous So, in demand seeing LatAm. well India amount as both of specifically Asia a

item. sorry housekeeping just Jeff, And -- one

what you I cancellations to adjustment breakdown shift? just for but Maggie's be think that give question, the you mix between addressed response versus is could guidance that you. would offshore revenue in the this Thank the the If detail, helpful.

don't I have I front Sure. estimate specific in the but numbers it's about of XX/XX. me, would

you. Thank Got it.

Mayank. Thanks,

our Please question. Thank you. next stand for by

line the question Kinstlinger Brian Alliance with comes Global. next from Our of

Your line is open.

Hi. I the unusual growing is was the for quarter company end Thanks it's was in the actually Perficient for for unusual billable years. quarter Perficient several American know than and for my for like which taking last for lower headcount North average questions, a guy. general

your addition with that? up details voluntary? XX%, So with Is it behind what's bookings involuntary? Thanks. some it in curious revenue, growing Is I'm help. Maybe would

It's Brian. to talking a a those North of pointed to been reflect sure that's function attrition, involuntary cancellations adjust America. also headcount and about. and us that of you the voluntary was allowing both Yes, both as combination it out, But we've

continued So, to add at a and nearshore. headcount pace both very we've accelerated offshore for

shift experiencing. it's a lot of again, we're So the that

Hiring quarter back America in this picked current I assume. has in up North

Yes, that's likely.

decline Just the Was a second cash Thanks there that. cost behind have detail as question the in given topline, in focus the on on going Yes. the you sure again, invest versus benefit? guidance, it one-time cutting? everyone's in especially many maybe rarely some as commentary the seen My so Was in sequentially first. I've the much other much. to quarter years as but second SG&A covered growth the I'm did quarter, some Perficient there

quarter cost Obviously, to the a of component continue is that bonus a Yes, we QX there be expense a tied your enjoy on to then scale. of QX result based we tends point. number seasonally where course high were accrual. to and of cut to areas

from was first that So, down quarter. substantially the

Great. Thank you, so much.

Brian. Thanks,

for our Thank you. question. Please standby next

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

is line Your open.

Thank sense comment accelerating That's on you. about been theme Jeff, is want driving or delivery? but can you maybe the sensitivity while, costs how there around point global is and for a that's anything it bit where little budgets a secular for elaborate you're at perhaps offshore? obviously client the there's client please they preferences this to a that, their more getting a and concerns

more share than really I us think taking anything. it's

been climate, clients you So, certainly, more looking less. it's long in this point, made always would for are way for time this where a just this for I too.

a do for it's there a and so that's didn't really And have pursue mass aggressively to been we factor now. and that it's and space while, a go but the we critical

So component. that away I own have would And it significant with about that others offshore, share offshore it gotten lot is a that's when mean, talk a our work, driving work. onshore, from that of strategy taking and normally combined I

So margins a offshore two. is blend necessarily which do the a of our the side. rates offshore, that not it's increasing against two are blend the blend of and everything better, We're substantially is but on it's why that competing guys and

following was to if was a potentially it. like is up ways, way, at unique deteriorating potentially theme durations, the just we reorganizations? sounded it literally few but types economic deliberations realize, may a clients more where, we different work? the that Got have thinking put everyone on industry, a or was see And asked but maybe client pattern, just, environment truly then, with whether the clients anything cancellations, may of impact internal internal it's that or to another it there And again, client question projects a that wasn't in been do were about the I it

that businesses their their at say, the a Yes, that And of priorities. but new be the is one two and these not I is one really as might again partners. shifting frankly, was often on own, for industry, come or new struggling example. trend was change. priorities regime an of them, it It And least and with sometimes case should

any if this able won't some in I story them. to of among correlation together put its take one So you isolation, said each Like, is be and that. you

here than it. under metric the on of color Got what to metrics the on sizes greater the the on size. project deal a $XXX,XXX? And question revision then, final be old Any would the methodology

Yes.

to the at of look second million, you quarter XXX compares that a half over quarter in last If the XX in and second did year. the we

past just of, Thank $X breakpoints kind to breakdown this obviously, point? move million; further is you. But start And of the even then, million pursuing deals you've greater Is that than where it the projects? sense $X it projects. of potentially I know does, of that number, that here? in terms the kind at $X of are about million the eight-figure any in distribution of talked

Yes.

have me a let think, look here. I

the have So revenue. about XX% of up making our million-dollar-plus up XX% year substantially we that's deals from And a ago.

you. Thank it. Got Okay.

Yes.

by next Please for question. stand you. Thank our

the Our of Lee next Morgan line with question Stanley. comes from Jonathan

line is open. Your

type Hey, or helpful. questions. course seen for would because color there you taking of the the over sort guys. be my shifting macro-related notable concerns? that changes any Thanks of Any Have that's engagement whether to delivery quarter, of

about. talked Yes. what If we beyond anything, it improved throughout the Not court. much

I and at is faith delivery often gate. right, projects, said, our and willing, I out of complex that, bigger complexity, because us The their then things the a letting quality you and bite lot that level. has look is, that's those of a think increasing. off our think a reputation business more clients way brand the confidence you bookings, a relationship size comes building you to pretty engagements. But our actually build on from small new new That think, starting of this willing us a are there like with larger testament and types as in customers. and at works lot duration, more are we're got repeat trust. of we've business And and gain of engagements of more seeing from start brand. higher customers, and and to Much take a I which and function repeat revenue giving a having them all of And are and If and always chunk

up the move well. helping average as that's So

been Got looking thinking to What and acquisitions? very look you've color. acquisitions pipeline targets? current of you're Any historically, And these future it. sort landscape acquisitive. in like or That's update the how for about helpful what's as are for you

Yes.

more, our we course, move continues revenue the focus But sort of really of, worked as more we all in for almost as to our the also base. exclusively So, things that, to. nearshore. like of digital, extremely terms well us offshore and That's

end are a It's we're to since going discussions, been component. to a only, for pretty sure. continue like gotten talks optimistic. So lot that couple with that that later say, that isn't something lot to we've And back things we done. of we're been like digital a have That now for of while deal wouldn't do a we stages look we are of American a combination but also and in in we that the and was North firms. We've

deal the behind So and end the in quarter, two we're perhaps optimistic that even of possibly one more. we'll have year another done that this a before here probably

Thanks for the guys. color,

Thank you.

next our Thank you. for One moment question.

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

open. line Your is

the higher further offshore remind Hey, margin expect us year -- potentially offshore next maybe India. for Can The What EBITDA into margins given question. margins taking offshore question year or a increasing for this thanks margins for sensitivity should you with this we mix? for year this higher on expansion Argentina, and my year? for with

Yes.

XXX terms will obviously about look that of serious got there particularly scale guidance continue a expansion. for we've to going in the the of adjusted at point basis you or reaffirmed opportunity more that points If some And we EBITDA time probably that's SG&A. in to

stay everything said possible. more your margins inflation expand We're a strategically holding as because we're as gradually. we -- I In to increase. XX growing wage applying and the little flat, about to on margin think XXs an a margins. do terms continue and of expanding gross going top-line that some I've are for said wage will time necessarily face the some gross can of the around even EBITDA. to margin a the Again of do we it opportunity additional percent margin, basis else pricing intentionally competitive But location gross more to low concerned we want we're to however gross that than and as more to have on to that point expand hold

project a platform talked about about and something management. ago like years as larger that become Like you you customers? Jeff to need pay globally then if inside that take think, management? as more are used consideration -- Got or the you business to attention be -- project to you Is distributed a not contract pursue you. are Is few look I And that they a projects second larger The trying or at platform, you in -- proprietary management there -- risk than become you you for are delivery step management more risk rather there internal project to more maybe distributed a what back before. lot now. is service a global

what progress. management but tool I'm does people exactly allocate called given is you right in aligned referring a that prepared covered early if And It's the of definitely. to made you real-time is can Most call as and with financial part only resources we've Yes. to also and what of sure we're statements, well as that proprietary got not described. Compass or use but the the internal the any the tool that performance not as project sure our custom monitor Tom right terms the make what of opportunities, in Compass

just scale with we're And infrastructure important including not business, that the the It doing you're So to is entire Compass. headcount. right.

Got it. you. Thank

Please you. next for question. standby Thank our

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

line Your open. is

sequentially. growth. services and in healthcare of verticals the a rebound the near on been which They company in curious terms mainstays I'm Jeff. we financial have future? Should Yes, expect were the for down

Absolutely. long those to And down a no Both account going single-digits and million in very last for healthy. secret talked them time. with be I'll some-odd that this for are business time about exiting actually that We I've year. year. Kaiser make $XX that's to Permanente we're did long of mentioned we a

year-over-year the ones least basis is So have. some growing account. same more just the time, of sort At coming and adding more and we that at existing of the we're from

continue and us to over engagements think space, think to Super services. new the side. here to been we've We've substantially and we where starting still in finally pretty accounts the under-represented more done where relatively forward that penetrated healthcare. traction we're of see by end going I management you'll I I of So existing the mean, about with but now we've consulting you're accounts. a of increase and And see meter demand a a new going piece excited in on which obviously robust the years gotten point material the absolutely, technology gaining right financial of on lot lot see year. but also that we've technology move up lot that

on the any on Columbia's in And the thoughts they government may impact business? any changes have

maybe know, those in US-friendly. You know I think a never I situations the some have concern the because being of not and individual reputation you has most

than with However, I And wants enforced we'll was relationship election and to it see a just from at he's the US. comes. goes right understand and in what he's But to optimistic. he after do, take the it there, better folks I now they're we live that as least good how pleased and the the pretty saying shortly climate that of that talking course, have it understand now

said our And as we dependance Latin And one essentially the did the America, on we Latin further if broadened acquisition last fall, which would on again we in do in is there capability thing Overactive something our Jeff Columbia. likely M&A I delivery front, America. reduce Vince add

And question. one macro

of I any in think, any know easing the but inflation your wage I answer, geographies? in

of the money. been much Gen-Z these as But given motivated not supply, guess not It's lot it’s surprisingly right? think I just would necessarily you'd a manageable. definitely I increased are but of folks lack say as by

Of course an and make other everybody good factors into important needs your But there where a are to in living career. are that's come that yardstick you for that.

wages, we're into people. faring we're think competitive wage that in seeing we're terms well I think and as increases, as on of I the hire both very new landing play. well come And new

rates our manageable. it are we've and And like actually feel slightly it's at now said of I ahead as I it. right So before got level right very the

for Thanks questions. answering my

Thanks Vince.

stand Thank you. by question. next our Please for

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

open. Your line is

morning delays Good factors. shifts a of contract cancellations impact projects projects? the other from maintained thanks guidance fluctuations EPS dollar large stronger that the the you offshore just I play good Jeff, to as was there of despite Great. year maybe maybe much lower role? taking should for and timing or But revenue currency any know the question. my maybe a range mix and uncertainty in greater How for mentioned see guide. large

That's a good question.

it doesn't so factor reality. We pretty FX of much largely play in have a hedged,

and offshore Of continue expansion course, revenue, that is obviously in the hedged that on mostly most -- again do we'll continue our And American revenue it's and no -- the North near-shore. we have to side. so of as more really cost we

the second implied, And then rev maybe Paul quarter? And can of implied chance organic for what organic growth Any then you in quarter help the organic the you was Okay, great. and guide? too. share maybe rate guidance growth if the just third the in growth XXXX in overall can, terms here can

Sure. Yeah.

XX% QX in the guide XX.X and to to XX.X the year. for growth organic the is XX for QX, and was So XX

Okay, for Thank great. me guys. it you. Thank That’s you.

you. Thank

question. our Please stand you. for next by Thank

next Our of from with line comes Goyal Scotiabank. question Divya the

open. Your line is

morning, everyone. Good

a the So, question I guidance the have special for year. on

to but cut maintain cutting due benefit? your offshoring to approximately $XX Do million the million, here, the is or cost that is why EPS you did continue You anticipate material it see to guidance. $XX by we guidance you down

any not cutting manage costs costs. mostly It's We're We try to carefully. offshore. aggressively always

with, In recent we've done years that what I we're in fact making above into say. most would and beyond baked guidance obviously, actually investments

bonus -- it's a scale. it’s but bit mostly of little So, reduction more a there's

great. That's

you you across that you your could little same a topic us do And basis eventually talk to but to revenue expand expansion all basis, currently them bit offshore your about continue India? becoming locations there? So, see are your cost on then presence these as

Sure. We're to going continue to expand.

that so continue there. in we amount primarily centers do likely with that we time our and in-country did Latin I to America, The acquisitions delivery think of US we in see pick as to for up customers over the work would speak in-country evaluate customers, India a modest scale we'll for customers. and market

plans now? such for no is there But

with a basically is We much China do as that already Right center. now, little actually bit and no, But development in China. we're managing do currently the actually a India in in relationship India. Latham, preexisting client had in so not US. a servicing that we a

staffing Perfect. topic the on And more one side of things.

You trend college services seem considering did be amount or could well. of tech an doing risk are hiring front over-staffing All and you're something services tech -- obviously, expansion there but over-hiring in mention and of demand, is hiring, be aggressively the that you is see this to general companies that of do a industry-wide huge hiring? a theme India across your on but

and in there’s Yes, that's this balance I good always a think a question, business.

doing it. a think we're with job good I

hiring. attrition before, if full-time I we And to our need. that As to we've tools as allowing we place, in the very tools feel continue slow to manage in like XX-some-odd more that we increase again, allowing need people model proper We've proprietary attrition talent we're real-time mentioned got using a slowing and capacity. got than hiring we'll with pool, acquisition deflect mainly

Perfect. And my last question. just

quarters? front, M&A What general the M&A be in offshore? more next the more from few technology to coming do expansion would or On plans your you it access are see

adding very interested we depth that great but right? additional many also We're way have don't a and a today. enough unique cases or in capacity, we'll introducing a fills that services more have also have into, pool isn't nearshore or either that of It have base headcount be even a talent in gaps skills account targets Yes. that are offshore gaps, but that our in just in These skill to meaningful play.

Great.

only just an On ask tool as Sorry, internal more you is or question is can one that here? well? Compass, that use last IP I that externally an

Operator?

me? Yes. Can you hear

Yes.

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open. is line Your

it Sorry Jeff. use you external as customers? I internally well was proprietary that as just asking you do about use externally tool a that to Compass tool. and as a or sell Do

of towards where it geared see of data is is Currently, information coming out of directly. lot the to these can it of log client for details to future actually it extend and it's in it plans they lot a internal. the a But course, -- driving client The success.

so questions. Thank for my Perfect. answering much you

Thank you. Okay.

question. Thank next our you. Please standby for

the question We from line with Kinstlinger of Brian Alliance. follow-up have a

Your line is open.

in In Great. XX% back contribution's of projects. natural is and presentation, revenue to and industry the talked same suggesting XX% the you conclusions as of your prior methodology, some were down Last healthcare envelope down Thank that you. using well. quarter about retail used second despite I of quarter the CPG compared M&A. If

discussing, the in solid should the growth? you're these expect So increase with to verticals and when XX% pipeline going we bookings return to are

you'll about I'm to basis sure the think on contributor some a basis on year-over-year year. not -- I KP. see it caught in year-over-year talked material contributor healthcare the past. a you but is if of We this it that earlier,

see there increase So in decrease year I not do Retail I financial climate I as earlier, healthcare. bullish in there. CPG, it we'll probably we'll I'm there. think as happens. services decreasing. on general, this economy, what see substantial and Consumer-driven it's out an I that think mentioned interesting am as that,

other of declines, the are I think increases percentage some industries. from of in dilution actually

Thank Great. much follow-up. you so

Thanks, Brian.

by for Thank question. our next you. Please stand

Jefferies. Thind a from have We of with the follow-up Surinder line

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in just locations. to India relative of of Thank may question a in expanding we plans new little there? expansion bit a up think delivery How location a location about of new cost about the addition existing talk the more moving an terms A the you global of the terms cities. and the of smaller opening forward-looking Also be about of the Can that expansion maybe estate work-from-home you. should in Is your versus existing real footprints? a versus there selection location? model perhaps

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get them As we better well collaboration and out we their they infrastructure come back work team that Pune, to providing more place of office Hyderabad, space. as provide a the as and have homes a our at when at we're and work of into look office now

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ahead. go Sorry,

about. was to I side that of say you on cost the going asked

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can, your so we as we actually pretty where are question However low-cost of it's expanding a part facilities in darn existing gamble.

earlier. question a then And it. Got follow the on M&A

valuations versus are quite Any that maybe Can following there reset the terms get color public in a markets or because difficult simply have. the been thereafter a done this more you about maybe it's valuation deal of deal? strategicness of in the valuations? little seems talk the they to quarters. process and It bit deals in like quarter attractiveness consideration haven't the Sounds the you're higher the way in of something

is that. really lot a a a Absolutely. higher pullback there the year of year a There a premium haven't before We was seen little maybe ago today bit. than and

of I already are what there our they I and continue very and aren't other about is think terms market or impacting market that own these private in a we've premium. impacting optimistic. are that mean demand. the these other talked between not the be businesses that desperate to than They're public difference factors public the folks

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And large last one for you question housekeeping under quarter? able to metric numbers final project the the new are provide

is it? Where

of over QX deals XX year. in XXXX million and quarter in XX summer the dollars a Yes. last

That’s me. you. Thank it for it. Got

you. Thank

I further the call for will no Thank questions back closing like turn over Jeff to queue. in remarks. showing now you. I'm to the

Well, thank you all your today. for time

that think were outlook Thank is I'm result. days be I in While many conveyed back we'll another mixed, great with And you. the the Thank you. sure from perspectives result. XX Hopefully, we fantastic. results here

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

may now You disconnect.