Piper Sandler Companies (PIPR) 28 Jul 232023 Q2 Earnings call transcript

Good morning, and welcome to the Piper Sandler Companies' Conference Call to discuss the Financial Results for the Second Quarter of 2023.

During the question-and-answer session, securities industry professionals may ask questions to management.

The company will make forward-looking statements on this call that are not historical or current facts, including statements about beliefs and expectations and involve inherent risks and uncertainties. Factors that could cause actual results to differ materially from those anticipated are identified in the company's earnings release and reports on file with the SEC, which are available on the company's website at www.pipersandler.com and on the SEC website at www.sec.gov.

This call will also include statements regarding certain non-GAAP financial measures. be measures addition in of GAAP. should a and accordance measures for, substitute financial non-GAAP considered to, in not with The performance prepared refer most directly today GAAP measure. release these Please financial comparable company's reconciliation non-GAAP the a of issued to measures the to for earnings The is the available Investor the page of earnings website website. and release company's at on Relations the SEC

is As recorded. this call being reminder, a

turn begin the Mr. this call. call to like time, At Abraham. may I Mr. Abraham, to you your would Chad over

EPS Good with businesses morning, $X.XX. Piper of joining the XXXX, challenging waiting for Carter, a of us most inflection today clients second kept quarter a as to our of muted sidelines, everyone. Thanks to our adjusted Sandler Tim continued talk conditions. be generated economic transactions results. better Deb across our and outlook cloudy has In for quarter about I'm point and many Activity million President, $XXX the adjusted CFO. here net to on our second and market of Schoneman, revenues

clients help focused across various to a believe remain product we we business accelerate our positioned activity When navigate we transact helping on landscape. and highly dynamic levels strongly are lines. that our markets stabilize, clients We to economic expect and our

in markets. during product XX quarter flat diversified Turning to reflect quarter. revenues transactions for our the the generated banking. a challenges decline the $XXX during Highlighting activity Specific industry of revenues the XXXX, benefits advisory million the to quarter. offset continuing We quarter debt corporate to financing advisory of for of We compared and investment M&A the first services, revenues corporate of service set, completed $XXX in second the advisory million the increased quarter. and

reduction portfolio by driven decline lack bank advisory an our remains over in clarity solid contributions led a valuations, market-wide with was around negatively by the transactions. for for framework. our healthcare regulatory restructuring largely The advisory uncertain in company our credit and teams. energy impacted the power six quarter bank a M&A next and of group The outlook months and and capital Performance activity challenging, by from quality was

outlook compelling, longer-term depository our franchise activity is market-leading consolidation markets improves. positioned in clients market the the and space However, when capital and for well to advise is the bank

first on relative U.S. a performance revenues while M&A approximately remained advisor down our year, $X basis, we last On our U.S. Completed our year-to-date down the is are transactions Overall, ranking the as announced number market billion. a solid. half basis XX% maintained compared under two activity of to XX%. M&A on

M&A Importantly, is the improving. outlook for

that deals a of have larger half kicked sale deals close a to process. year strong We have as pipeline second number of well in the this off as expected of announced the

advisory second expect for the XXXX the than services We first half. half revenues of better to be

corporate financing. The new quarter improved with volatility during to for and the Turning levels increase issuance. demand market an lower in investor equity financing second

historic remain However, levels. activity to below continues

compared on healthcare one in basis. during including quarter, XXXX completed the sequential in We was Activity completed financings, by second the books of revenues For corporate XX capital last driven during of quarter ran equity the the an all financing largest to the clients. XXX up franchise, quarter of billion generated million for for on XXXX, We of XX during deals years. second history. which and IPOs priced XX per raising market market-leading quarter biotech $X debt IPOs $XX context, a corporate the in of our IPOs the average five

pool for $X cap increase a sub XXX% the our fees in compared on from performance, XX% companies increased relative economic to strong our basis, Highlighting fee year-to-date approximately billion market this a market.

five top $X investment a deals we number addition, of less for billion with on bank than cap. book as a healthcare market based In run companies of ranked

expect to ahead, as we financing progress we activities we continue look through building As XXXX.

resources were quarter Turning product by two to at to coverage headcount and opportunity managing the investment one banking remain MDs against managing directors. the expand sequentially, to at ensure finishing as our further capabilities restructuring remained attrition. to practice. additions time during productivity, conditions to sector to estate offset We added continuing our We strategically planned and managing XXX focused market have and our count. while same we driving strengthen headcount head director on quarter, real the MD continue improve. execute flat the growing one These team

public will Deb over turn With businesses. brokerage that, the finance to call our I and to discuss

Chad. Thanks,

municipal During first second of quarter business generated challenging investor million Market the with compared nominal flat rate weak financing rates, $XX finance to of interest volatility, the demand. XXXX, quarter. higher conditions revenues, and public remain our

XXX negotiated underwrote value we quarter, of transactions raising for municipal the For $X.X our clients. billion par

to in to relative presence issuance overall meaningful the to middle due high the our Our and focus continued yield the results business. market market our disproportionately impacted sector within be governmental

As and is pipeline diverse. we ahead, look large our

quality a yield the to looking raise issuers high of this second capital. number significant transactions of scheduled high several for have half We year and

a As upside the generation offering. is yield demand high there to for result, modestly expect second additional of improve if half XXXX the revenue we during increased with

market quarter, decline on results. moderated We Equity business. quarter. our $XX to during first the for shares million relative as lower quarter the X% from as experienced revenues of We clients, volumes our second markets traded X.X Moving the modestly well billion volatility equity down behalf a sequentially generated our volumes. down of in brokerage X% which to

our and for of this opportunity share market votes business over time. continued see affirmation further we and and gains capabilities to quality increase, in research platform of Client the

reduced volatility the brokerage the second in first be equity half. to the consistent we term, in expectation XXXX with of our of half However, expect near the revenues with

awaiting more Market will interest grew clarity sidelines tightening. be the The steeper on challenging. Fed to its Moving rate during curve when investors fixed income. keeping the to quarter conditions on yield the continued end inversion

we capabilities of level compared quarter million, of down resiliency revenues relationship generated breadth to $XX of our XXXX, the some For the of quarter. provided results. first to and The our client second product

Asset public active remain as end position. we as focus in relative Trading the loan derivative an with to our building clients drove managers value activity, and entity evaluating assisting Advising remained were they and among of continue liquidity depository sales. curve. capital slow on funding on clients they yield the clients strategies increase active in short clients hedging and and our found

which While on more to interest outlook markets. we a provide anticipate remain we year fixed expect income challenging, point clarity near-term as the to the progresses, turning should more rates constructive

our group, banking platform. remain on broadening fixed Like income focused we investment our

clients and We is market to recruiting believe active, opportunities are to share our pipeline well expanding Our see continue and improve. we assist market gain we conditions when reach. positioned

will to Tim turn call our I update the to financial capital review use. provide Now, results over and on an

Deb. Thanks,

non-GAAP results, integration our results impacting an highlight with our GAAP restructuring reductions. headcount financial costs acquisitions GAAP this Consistent and/or related me our reviewing all item let prior periods, to and include Before quarter. results

to For acquisitions. vacated expenses space GAAP reductions $X leased results of XXXX, previous our the as restructuring second quarter related office include associated well headcount million our as with of

sequential GAAP to financial from Now, from in of should generated let and of second quarter corresponding net financial non-GAAP considered of and which quarter for measures. the me adjusted quarter the million XXXX, year. results, last to down not the We for second revenues addition X% $XXX XX% turn a substitute our the be

interest public Consistent of continued flat most second sequential on investment during and year, quarter with kept rate of basis a sidelines. this our market clients banking Corporate finance income remained the were the and for our first has many quarter on conditions difficult fixed businesses. the of revenues uncertainty

For is solid XXXX, net said, the results. first totaled of XX% $XXX That million, half year-over-year. diversified our operating revenues platform generating down

to our manage strategic business the conditions, of reflect continue our objectives market the balancing of long-term to platform. earnings current We growing capacity while

and expenses operating to margins. Turning

XXXX of for sequential both compensation last the compared second year, and lower slightly by higher to Our net quarter the ratio revenues. of was XX.X%, second quarter the driven quarter

our the XX.X%. was compensation For XXXX, of half ratio first

our margins continued returns. level and outlook, our around and managing remainder philosophy while our maintain of on of shareholder balance opportunities, retention Based to the for a we the delivering compensation be We to ratio levels investment a operating of employee year. compensation to expect be current year-to-date

write-off to costs, in of expenses deal increase deal due of XXXX, the our million, a business. expenses and excluding non-compensation basis of or quarter. of On an sequential a XX% public second million excluding basis, $XX quarter finance per last receivable year, reimbursed primarily an a expenses, million XX% $XXX compared reimbursed for average of quarter totaled second were $XX year-to-date on the Non-compensation the to

we our expenses quarter, Looking excluding guidance. be in to line previous with deal $XX per reimbursed around expect costs, ahead, million non-compensation

operating generated and quarter of the million income X.X%. margin of second we an $XX During operating of XXXX,

and million $XX totaled income of operating XXXX, operating of half XX.X%. first the For an margin

X.X% the year-to-date XX.X% for for income of was the Our of second to benefits expense quarter vestings. restricted was the and half first year. the related tax million for rate $XX stock Income XXXX tax of by tax reduced period

our benefits, these was rate year-to-date Excluding XX.X%. tax

to the impact from range We of the of within half XXXX XX%, our be rate expect to tax excluding vestings. for our XX% second stock

$X.XX. of $XX During second EPS generated quarter the XXXX, of million we and diluted income of net

totaled the net year, this diluted million first income was of $XX $X.XX. half and For EPS

committed with market update to on cycles. finish capital shareholders capital me an returning through remain Let We allocation. to

$XX million dividend. through we aggregate primarily quarter During of XXXX, quarterly second the of returned an to the shareholders,

to we shareholders. approximately first offset $XX a the which returned from For aggregate than On more of year-to-date XXX,XXX share grants. stock million million basis, common year's count of dilution shares this repurchased $XXX annual our half, stock, or we an the

$X.XX also special quarterly We or our per shareholders cash dividends. of $XX to our an million, share, paid aggregate through and

dividend of today, of share quarterly paid close to cash August on of per be the shareholders approved XXth. record on Xth Board September addition, as $X.XX a In business to the of

few Once increase second long-term benefits realize of conditions, and power our to business. continued quarter year-to-date we strength up, open our to in diversified challenging believe and of position significant expanded are earnings the market reflect last markets to the of our the platform. we've years strides we a continue results While over made the

open we'll questions. that, call for With up the

with Our from Ryan Devin first you. Thank [Operator Instructions] comes Securities. JMP question

open. Your go line ahead. is Please

morning, Good thanks. Hey, everyone.

Devin. Hey,

morning. Good

Hey.

that Just the results want start Obviously, softness showed the in improving of there, to some advisory. and healthcare think saw on strength financing offset helped some you some I market. and equity

been whether you're outside around, a you're equity of is the quarter just to activity quarter, environment, the but wanted maybe really just the seeing picture kind a what the better back then, building first off bigger seeing bit second wasn't like normalization just healthcare? adding a of resources what last you like of in issuance normal. dig from kind half you've And the record, you're little But of So, clearly had how in look to could sense far trying think business a XXXX bankers? that to just year about Piper, and and of of get then which guys levels also especially you for since line

Yeah.

but So, Yes, I guess, last be first few question. continues or has total the services but pool quarters, of it than deals fee did improving. we from us, from a averages it were all for certainly obviously is but couple it's ECM down some secondaries. restaurant the in in concentrated still ECM a four slowly overall the I five the would IPOs, financial significantly IPO, seeing on say, last the better years, to we healthcare, you're on been of

levels not bad I half in It's a case. to like expect little out, the it's it's concentrated ECM it how we're than fantastic still than better, but slowly -- We're So, continue better it's that's seeing just it's get would more at to all. say been. it branch of usually healthcare,

slow going the though, build, QX, of more certainly some and And in levels it's announcements seen like a able COVID months sponsor with slowly XXXX, definitely of second where some say, get couple advisory's and relative a back depository definitely that deals this transactions any the last and recovery better, we be our deal things certainly, it's pickup like We're getting definitely announcements, obviously we've made our I every to trickle are comment it's days, it to better. announced of snap the QX seeing feels so better the will we overall half. would we in back. deal is week. financed. of it's that not in into And But revenue to the not then, the few racing definitely in couple significant just size, are, announcements,

Thanks, Terrific. a business. the similar just And kind Okay. framework advisory for of Chad. then

sounds are like early it there So, appreciate improving. some the of commentary, of indicators the some business of

have some interesting are start on tone? more now early same an you're your that quantifying since indicators. activity you time we've of So, at extreme. recovery done trade where that just so And faster cyclical a people of this in of just what isn't like, I'd the or of a or the deals move kind risk the more maybe perspective a maybe coming and just in And a the sit love that now recovery you've or markets seeing kind is saying, so seeing can bit pace anecdotally okay, improving been or to in provide it's and then, it forward quite mind, been is are uneven you it's normal you are in dig what let's like around best macro-centric little assets sense at assets uptick everything not a new either and and time. some kind is around something, really, Like a it around as these function more maybe if these are of to of feeling in mandated and sponsors is

great Yeah. of I us visibility signals a needed financing credit second I announced size that months sort would But we're anything for it's sponsor just us very was difficult. our the couple in markets. would larger gives announcements definitely of the getting definitely half. fees wouldn't the that say on business, say I haven't that credit deal obviously of closed, and that the is into last the bunch packages. we of say

Some expectations in line. are of those common seller

groups, focus. deals more industrials able seller in last and few So transactions quite in that some sponsor with of heavy six-month industry of ones launched processes. some are are a to coming the consumer some some our We've package, the and line, financing and obviously those done expectations get of couple we're in months

What not were as of closes. we're standing line. there's what -- end the buyers those there and of as year see process, certainly would more the and getting beginning, getting say bids we'll finish plenty is, the over or more you So, at I we're at the But of a many two. get

So, we're I obviously certain get and really healthcare sectors space, definitely guess, then, active. and also I sponsor and in across the easier would the board And consumer add equity say seeing there more in financing. is energy, would I than others but industrials are private

Okay, got great. it. more here just sneak in That's if I one then, can And Tim. for

kind complete with client make one-off receivable. the sure a I'm is the just else understand on Just the Thanks. make there of assuming on there that's write-off of and a sure to one-off here to expenses? note that nothing

it's thinking should situation, client you're a unique Devin, specific Yeah. a written about no that there. right. so I determined we is off, there exposure write-off receivable, more mean, who fully that we've pretty that had we've

leave Good Thank Okay, I'll you. there. great. All right. it stuff. guys. Thanks,

James Our Yaro with Goldman from next Sachs. comes question

line Please Your ahead. sir. is open, go

questions. you thank so for Good taking morning, my and much

morning. Good

Hey, James.

business Hey, it there previous then, comments, I is think to guess, longer-term maybe terminal any the about maybe return just to your with you the normalizes? the fully muni timeline start the business. run over higher reason I just fully thinking rates, with finance trajectory expect can't that appreciate the revenue business. What's rate? Deb, of which but And

Yeah.

a about So, driver here. here stabilizes one exactly, first some XX% high of while path saw us, than meaning need we because our we businesses, outflows the into for the thinking of the more the bigger see our improvement. it's that less and last little funds. drivers business, biggest to And yield inflows, modest year. been has the hard all, that inflows specialty is for And to of there of just It's predict

something that recovery guess, soon in comes as to business. how relates I watch, say, would it that's the So, I to

where to to overall level. build will it, sort finance of you're say rates bigger to and forward, relative so back of interest And XXXX driving the be accurate side so impact public are, but that of peak you I part move that's those on our the are to refinancing that, in able say, we to that focused I and impacted, in would add recruit that comment to and was to ability business, is I get the as your obviously continuing a back than rates business would we on would say that look

of Yeah. obviously, to financing majority happen. the And I vast would are just add. projects going mean, I eventually we're

will to And back we run so, yeah, get rate. the

rest estate mean, specific to happen. happening, project they more project most the financed is that finance the rate difficult, that the of of the or are Some to much stuff may finance, a eventually development, you stuff higher type that going in get be I public it environment real that but are on package, can of projects with margin

just for about environment you could for Okay. hiring. clear. Thank That's Chad, that. competitive I you the really maybe, ask

is and On that publicly suspect the against some independent opportunity. back number independent means maybe bulge traded that I bracket of have talked one out or actually and the recent have been pulling this a hiring would the taken about being more your of deals some hand, and peers have all golden there peers, that capacity

So, ability have how bringing how things impacted of is in -- today? the hires new cost two these and

for say, talking would months, the four more I ever I spending Yes. to me, time certainly last or than mean, candidates. we're five

platforms. board, you I across number. of the smaller think look amount successful It's the a just

to move makes is -- So, though great just someone doesn't people necessarily the be, a make there a certain are because places a reality mean wants move hire. want it's to

lot a in that don't just we of on tough of scrutiny on good want just scrutiny and are can markets more perform, lot really bankers quality, markets. in it's So, people great

hiring. definitely seeing So, we're more

in but over us, been I the years, it XXXX why so grown relative is we've conscious make of more last does part is way as say, also as than that interesting, few for we're fact that packages they're most. great, structured, the would the mean, of were when I -- faster they're would interesting they've I the say extreme it not things

pace, So, the I going like, to productivity mean get is don't need low add point still pretty at but historically. we're it's we're we to significant a measured because know not reality you adding, is anybody uplift at add to

like or not at out I focused after of they're obvious and also we to that a have very pace. So, it's we'll quality we'll keep tough productivity, a years, think, adding couple underperformers measured on manage of continue and productivity. We'll pretty sort hitting people stay

of But,we clearly then there's and capacity banks, makes field. out That sort trading left endgame saw And balance sense. just declining the more, proposal III the both U.S. just big for sheet of lot of one for the Basel across Europe. just

I think worse U.S. than the was proposal yesterday for the expectation.

I -- investment there and banks like that full guess, So, are yourselves there. many not out independent service

think about additional ability at take intensive you the share balance does businesses? when some regulation So, of more opportunities, change sheet this market in your all to your

Yeah. call the fixed I let I've side. mean, I to comment relative Deb the side, last this the on mean, income said on time. I'll regulatory obviously,

excited said get everybody halt and think be I of that but was screeching that, some yes, of came to with announced there of clarity. depository was a the so what a week in significant eventually couple is space. depositories, lot until first we transactions to going happened, people will and the a sort we sort very it consolidation happen, more This

relative share still talk going some it's and that's know long what very pickup. in depository, the us. the a eventually closed is it's for activity and to slow about balance of seeing I'll market Obviously, accelerate really we beginning so definitely next do And, to to gaining at difficult of be to are a year, Deb up everybody. going We're is it pick We sheet. we're let starts whether on build rules or for cycle good there that, be --

depositories a a reason the business. And of right the business, such what clarity are in to I of primary now, softness relative is results the income would fixed large It's because seeing why we're fixed interest on income part actually Yeah. rates, our say etc. our there lack

with business, rates creating asset advisory their loans. as our them through much would Right lot across think I about work liability helping a with it more now, product, we're banks think of on we our management. about banks liquidity in as and working derivative selling interest doing manage by nature, So,

So, our it's more not a drive advisory sheet business, use much to balance based. and much it's different

much. clear. very so Thank Okay. you That's

Thank you.

to [Operator Instructions] next go Research. with Steven We'll Chubak Wolfe

is open. Your ahead. Please line go

filling have not morning. acquire billion. the banking Last At picture for do This corporate the you target talent question. in I business obviously time, Brendan at that a year, of start, growing both to I same and anticipating O'Brien opportunities environments these tend Good time, investment to new $X and outlined we Steven. you that recruit endured. to ask to bigger guess, platforms. want to is were over better But offer the of and types slowdown a

of this could to was investing further in you invest discuss your doing by interest more could in confidence was to any some in are have whether that I hoping hit I the a target, in current and you speak looking to and number, market, the that areas in and believe, been there's hit you it XXXX? acquisition meaningful maybe billion $X able to being

med I and Absolutely management market, in did What was we to of a we depositories frankly, very that, mean, good sort we continued it's that, a we've still believe the in asset services stool. real leg leader. and for terms on the tech by opportunity There huge insurance in a analysis, business. our of done third even we're significant sectors say estate in is, our business, And business, significantly lot We've the traditionally outside the invest always healthcare, business invested where on middle was. us of, opportunity financial in there. a in and been could would be when biotech, had and two the team industry really even thought Yes. what biggest we've of that, I services in

opportunity And think that so, we is significant.

presents and tech. did We continue did some could ever and we to business peers invest size areas in DBO. the services we that was tech One market there, that in as the Obviously, have but keeps the about opportunity teams, financial was of other we'll that a we opportunity, it talked weren't biggest relative eventually Obviously, undersized big to certainly of healthcare. lots same we're we in. the there's our the And where to that's well, space. frankly products scale and gone some some of white and and advisory of then, Obviously, counter-cyclical of we incredibly size growing, restructuring becomes TRS get businesses. even to

we in of in valence that marketplace, with continued transactions, we relative restructuring what important getting in chemicals I the in sort XXXX? about mean is success us. it say, this, would and energy. believe the So, there would to team for five us. say, to definitely but happening happens I had growth the people for still seen then, doesn't we have on I other we going still I When target, in years, really billion path what $X in that it's said, is that to talked Simmons Sandler banking it years, if think Obviously, years, depends with in recovery. obviously it's Do out And happen we TRS sort and the seven eight of matter did

So, yes, current TMC and market like we're us where a the boutiques being would will looking and of new help a I would starting something that of also about to or executed. I have quite lot sort good, to of talking of zone pace we're bigger deals of there's looks, at good getting XXXX the get because the lot results, we're more get get realism people on seeing say and aren't sort we a to don't is do overlap, transactions but tougher things that lots of say

fixed two story the and That's one here. step guess, for took gears fixed like great been environment income you. general. income step on the it's talk a it back Thank feels color. business switching of this Wanted another and quarter, in forward I steps to down

the cycle. like -- hike in volatility the does you've rate activity there's less of talked rate once closer we're about and past, end However, up this to feel it picking volatility rate

you like at? other we to we wanted there's sense this if I get up And not mentioned looking or a about the outlook as Deb, from yield see we here? business curve itself activity to know indicators to before be inversion, Just some or that thinking be for pick needs should how resolve actually whether should

feels challenges would again still cycle, agree which in within been that rate the that Yes. And activity. lack their it activity. the just business depository uncertainty the I driving just there's around I the the that, end as have primary and towards space Fed driver we're mentioned, is lack like and of of of of heading

So, you of are think get to can about when terms that back. in able banks

out of see that inversion be And a coming to investment Fed to yield in just drive reversed. to the are we rates going down, that and ended, that's It's terms duration. to start that your curve, need question belief is have the doesn't on more the the has on and that curve going there longer

going other to So, at the it's it does the moving -- way. end feel need the it's start we and inversion to doesn't have but to go like away,

I some coming we have places would fixed Yes. know Since haven't think because opportunities recruiting and pretty more obviously And I it's banking. about to mean, difficult. in were the my one seen people say thing frankly I we've time trading, of asked mean, stuff say, CEO, as made we Most us I and platform, income, interesting a doing loan I investment income things actually strength. we're some in non-agency things areas credit in of there's unions, trading, special like market I some would outside depositories, the in of the additions we're doing and fixed

we still on and a great long-term acknowledge income. opportunity market, was again year. are some this very opportunities XXXX So, we're of our we're size seeing fixed bullish -- a to But sort obviously good that year, is in difficult we the certainly very market, hire of that position in

questions my taking for you Thank color. great That's guys.

Yes. Thanks.

Grondahl with We'll go Northland next to Securities. Mike

Your line ahead. is open. Please go

Thanks. guys. Hey

I to continuing of at point, I better hearing financing more thinking is that low you're and a improve not blowout. is but kind second but this than to modest, fair? question, right I'm think Capital that in Am having seeing it's half, kind continuing also anything build. is recovery, First of not hey, advisory a steady to

Yeah.

we And lighter, advisory. see about close ECM quarters. in what week we financing business to in been mean, Labor say down. up is markets, business, which and really continue us, to I have whole we we improve shut we've think, for you to need pick half the of and it in see tech. lose okay September, need a what first this then market, three We're steady, the at sort last it's that's for deals of what mean, sort haven't first of of August broadening sort the I to The financing think, would But about QX, fine. The seen when is fair. the have rate broadening in doing we Day. again. certainly the consumer we the was always year, Obviously, I question to a -- I with I is it

that come the of Now, certainly few think tech there's interesting IPOs, market. back tech a end half that market help will I the the will to towards

that recovery. it's back XXXX. you We're It's confidence snap sort like We're think saw So, in a revenue we I right. improvement, of improvement. a characterized but on definitely slow seeing definitely not gaining

that you? to slowest sectors And facing recover. it. with question greatest are others of then for out? the was kind I maybe that sort second challenges you stick think my of Any And answered Got just, which tech,

for I two from to time, in in of of beginning the a and significantly business relative Yes. tech ECM we far year that's in big yeah, toughest in that were last say the I And and transactions seen activity then, And depositories. frankly, in services down end QX depositories M&A this more tech, difficult. have is been long even us. haven't we would a much the year. by financial mean,

and the valuations. a software of in big some rebound multiples seeing you're Now,

that be the difficult of itself general. to but will would most and our So half I if have financials teams, pick work would out, it two tech depository of in

Maybe Tim, guys it. are feeling Got lastly, Chad and today? the cost structure how about you

we XXXX reductions is, the charge, think, what back not I we some very employees frankly, they have than it carefully. about is the we're we headcount reality cost though seeing then. And mean, a what are watching were at Yes, is of level. would take I did did The higher hundred would that certain a in rebound. say we're where than We where say structure I areas still small couple now more non-comps I had

some think, I very obviously But out very, be line. when underperformance about careful couple we and obviously that we'll getting productivity new to watch the of leverage get attrition, we're carefully, watching careful on being and our get the if there it's of think very next we're something revenue managing I marginal continue very of to want because improvements going bottom quarters, we're to producers. -- watching So, more only hires,

you. Thank guys, enough, Fair

Thank you. comments. for I other Abraham conference any to the will holding, no back turn additional With questions Mr. or closing

third Okay. results. Thank operator We you, and a Have look great updating joined. forward our that you quarter and on to everyone day weekend.

today's for thank and will conclude We you your conference. that Ladies participation. gentlemen,

this You may disconnect time. at