Huron Consulting (HURN) 2 May 232023 Q1 Earnings call transcript

Good afternoon and welcome to Huron Consulting Group's webcast to discuss Financial Results for the First Quarter of 2023. At this time, all conference call lines are on a listen-only mode. Later, we will conduct a question-and-answer session for conference call participants and instructions will follow at that time.

As a reminder, this conference call is being recorded.

Before we begin, I would like to point all of you to the disclosure at the end of the company's news release for information about any forward-looking statements that may be made or discussed on this call. posted website. is release news on Huron's The Please the factors SEC information along webcast. that filings with with the afternoon's for this impact discussed review subjects that may in a disclosure of discussing company one The be or non-GAAP financial more measures. will and GAAP earnings of required numbers. SEC, Please the website to reconciliations disclosures Huron's release at for on look the by including the all the most comparable

Group. like Mark President I would to Hussey, Consulting Hussey, of Executive now, call to turn ahead. And over go and Chief Officer Huron Mr. please the

with Good Dail, Group's afternoon, Chief and First Officer. Quarter welcome Ronnie today to Chief our Huron XXXX Consulting Earnings are Call. me and our Kelly, John Operating Financial Officer; And

revenue year Investor EBITDA for our these Just adjusted prioritizes we financial objectives capital and over margins and returns to our focused at share shareholders. mid-teen driving which strategy, M&A, ago balanced adjusted moderate with a our expand leverage, greater Together, our growth, repurchases on EPS levels deployment growth. our achieve Day, double-digit accelerate outlined strategy are to targeted

these quarter achieving steady capability, operating and grew of quarter digital results our the goals, XXXX growth in financial all first progress, XX% reflect year segments our by towards the over three prior revenues first across driven Our strong medium-term quarter.

in with 'XX growth QX XXXX growth was over growth quarter, year-ago of achieved the XXXX. of strong first quarter strong of Our the on top in of QX XX%

delivered shareholder and that adjusted expand over strategic per goal XX% prior our with share increased operational continued earnings pleased performance enhanced profitability, quarter our XXXX. to margins diluted value. year points We're QX XX adjusted Consistent the EBITDA upon basis and have over grew

to team. of to our results entire share website. demonstrate and more strategy today incredibly our updated it excited made call the presentation in the proud first I'm growth on investor and the our I'm the on we've quarter about Our commitment by progress Huron

we year's last made achieve into are to providing into pillars. Investor some performance. committed color the additional goals, since now progress our insight share strategic first growth Day, five I'll To we've quarter while our

The largest continue Education industries, to is first have positions. competitive focus in and our growth in pillar of on which leading our accelerating we strategy Healthcare to

grew year increase XX% segment, our in driven the offerings, Healthcare by services, first quarter. of over over demand performance cycle offerings, XX% as The XXXX demand prior QX and QX for in improvement, advisory quarter managed the revenues strong continued which strong financial revenues for our XXXX. grew as well revenue In digital of was

is from increased industry sites pressures, efficiencies providers and labor to of highly of patient from many nontraditional the for virtual outpatient growth care, solutions shifting need ongoing facing financial to and The significant drive stemming a digital worsening entry improve health outcomes. payer into mix markets, costs, care care and inpatient competitive settings and

in We're focused We offerings A our our pressures. our good growing offering. this XXXX clients. of example to generated revenues services they in first XXXX. on these health revenue offering business and this in have clients' rapidly serve the cycle expanding XXXX managed meet It care grown of approximately to face the needs, of is introduced as quarter XX% total multiple industry and

which clients' our health in strengthen full XXXX to in analytics year digital growth grew problems, over improvement, to continue expand in rapid our most the technology address comprehensively performance XX% XXXX. by and and offerings also demonstrated our care We revenues, complex

demand prior in X% all of revenues year segment highlighting XX% quarter our year over in base offerings quarter XXXX, Education grew in over the this demand across driven our quarter. over prior of quarter, continued grew momentum revenues the digital segment. offerings segment XX% the including this education, grew segment and by Education in sequentially broad XXXX which first the the fourth

significant labor achieving facing value increasing particularly from from also enrollment a of is schools college decreases to labor our goals, strong the ongoing difficulty degree including discounts in questions clinical support market, a the and in The enterprise. challenges education medical with about costs tuition, pressures, industry revenues clients for exceeding

healthcare, offerings to continue strengthen Similar to and as we needs our comprehensively in to address to education they the our expand respond issues. these clients' industry

business For digital example offerings XX% our our represents to advanced Suite total and education industry of our our software our revenues. we've managed across in services products research, services consulting Collectively consulting complement managed expand Research offerings. offerings, Huron and research over

confident end leading for deep our client growth accelerated facing both a has current environment. positions macro Education in financial in at outlook disruption are our the ongoing been We that in markets competitive anchored and exacerbated relationships in Healthcare pressure and by

pillar commercial declines offset focused on year financial the within strategy strategic grew in and competencies growing financial although is advisory by partially our innovation financial digital the strong and A offering. The segment and XX% many strategy XXXX, first capabilities prior is offerings our our and our demand the and of utilities for span quarter energy and presence In the our industries. by advisory offerings our quarter especially on focus restructuring Commercial revenues primary in second digital services driven industries, turnaround currently industries. over

to and industries. revenues we can growth We further client from, commercial strong total have relationships. approximately built strategic acquisitions, strong grown and tuck-in offerings XX% a technology set of and company business partner organic the investments a and in commercial foundation of Through accelerate we established which the formidable

in portfolio technologies drive Huron, the services commercial portfolio sector, goals. believe continue of commercial and our platform industry edge for emerging and of portfolio of in diversification and industries avenues including a We our and demonstrated broad balance that to solutions of analytics offerings a a countercyclical We data growth consistently increasing offerings us end markets. will enterprise achieve and the while new including digital and that help cyclical growth balanced

by capability of Education, the grew Commercial over Healthcare turn our our driven quarter integrated strategic revenues digital growth the to first XX% segments. In across digital XXXX, me and let the first Now third advancing pillar of XXXX platform. quarter

Our clients. our recognized our CFO. We new digital industry just financial innovate XXXX technology to the one services recently innovations partners the and billion of continue capabilities in to to that market-leading for offerings of office and the were under for to $X.X grew we developed we bring by

including expanded full in where our our our international have addition, global the In currently of we presence power reflects India XX% capabilities. of employees

to serving across will achieving In driver addition focus future including markets. margins, foundation advantages US to competitive our to own Expanding digital engagements. its strong growth continue while price expand productivity growth strategic global based points our of years Pacific region, enable Asia in in the clients driving continue also their competitive us in for to be and an our important clients highly business capabilities on the will as

two which are last focused. strategic Now, let turn me more to pillars, financially our

First, drivers revenue we're our improvement on and and levers margin profitability. executing consistent to primary achieve enhanced growth

our our strategy from in drivers the upon success, we of historical organic growth deep Our based our client relationships primary is in confidence resulting the industries serve.

of XX% clients. revenue XXXX, from derived Huron's repeat was In

annual In X% revenues in XX% revenues XXXX, addition, grew in representing over XXXX XXXX. of recurring we total company

offerings, and our achieve confidence Our including in revenue with consistent accelerated our revenue, recurring increases those growth. ability more to expanding array of

the profitability to expansion, we've focus within relates enterprise at established margin level. segments improving and it each on company-wide of our As a

QX EBITDA the per adjusted prior share progress over diluted made basis year Building over XX adjusted earnings increased XXXX in on quarter XX% grew XXXX. points XXXX, QX and the margins in

XXXX, on of pillar accelerate the In deploying $XXX in final return XXXX, or the Our we've And our another million to XXX,XXX to we capital shares. over focuses quarter X% first our $XX and capital or outstanding of strategy shares. repurchased shareholders. million company's repurchased

a balanced execute debt repurchases, allocation we tuck-in In capital across share to XXXX, repayment. acquisitions expect and strategy

In invest M&A, in competitive in to a with position businesses road market drive growth shareholders. to returns we've strategy terms aligned and for that map enhance of continue the and strong M&A our our and be growth our

driver We'll to effective of team. so of I'd to a on invest growth serving talented our heart in that highlight the culture as our most the makes is our strategy, Finally, at unified in building what people. continue Huron like clients team our collaborative critical

which retain talent people impact our strategy accelerated see diverse top company. attract to and growth as our in finance creates Our their professional opportunities visible ability career outstanding on business our reinforces our and and advancement a development in can both

Now the continue. demand expect year. earnings affirm pleased we Today, XXXX saw We're revenue our and our we performance to turn guidance. and the the we me XXXX quarter environment outlook first to for with let of in our first quarter

opportunities clients Our and environment, digital particularly performance multiple of and strategic our aspects operational for advisory financial all in face for uncertain our and issues, business, offerings. especially this creates but which improvement, financial often economic competing

our about continuing shareholders and look summary, we We're to And our I future as our upon bright business while growth and our goals. growing to excited our beyond. do, financial want but remain to in commitment to in we outlook. advancing our we've on Huron. our focused and our progress In deliver to work advancing made strategy reiterate strategy, I continuing XXXX more forward the to significant is have business for

John? to discussion for detailed a turn John Now, me financial it our more over let of results.

and everyone. Thank afternoon, you, good Mark,

Before will flow. adjusted adjusted free as net EBITDA, EBITDA, discussing EPS I I financial income, and adjusted begin, be please cash note that non-GAAP such measures

information why uses website measures measures, why Our regarding investors to discussion press they and the on release our management non-GAAP condition along Relations and provide have the measures Investor of with reconciliations management the Huron GAAP operating useful most XX-Q page believes non-GAAP comparable these to financial and of results. these

XX.X% same walk financial record Now million, XXXX for up of first the Revenues results quarter the quarter from our were the XXXX, let business. quarter. key through of million achieving for $XXX in of another me the quarter you some $XXX.X for

across digital was segments the increase continued and across quarter of distressed Education in demand driven segments, the strong Consulting revenues and for Managed in three Services all and offerings our reflective financial offerings. growth operating advisory Healthcare by offerings The

income million a to of non-recurring per Net or compared in investment quarter of a value share in income of Net million first unrealized $X.XX hospital-at-home net increase in quarter per first million preferred gain of or our $X.XX related tax diluted company. XXXX share XXXX. the stock $XX.X of in diluted the $XX.X to included fair income was $XX.X net the

Our first XXXX XX.X% year. quarter compared was tax in period effective last in rate of the XX.X% the same to

share-based due for investments the our of discrete by awards than the tax during benefit rate to rate, was state non-taxable the our XXXX Our to for more compensation of favorable fund benefit tax effective related offset QX compensation quarter vested expense primarily used gains a statutory tax non-deductible deferred income a partially and items. that taxes liability to on inclusive certain

restructuring XXXX million was income charges attributable primarily reflecting was in to in in of segment X.X% QX EBITDA objective to compared adjusted of operating segment by The mid-teen million toward or the increase EBITDA revenues. QX progress the adjusted X.X% XXXX revenues quarter XXXX. returning the or our solid increase $XX.X of to in Adjusted $XX.X impact EBITDA excluding of in margins

or compared was net million grew per earnings million share diluted first or Adjusted the XXXX. income to share $X.XX share quarter of in QX diluted XXXX. per Adjusted $XX.X per over $X.XX XX% diluted $XX.X

or closed from million evolution of in of of XXXX. $XX.X few revenues each segment first segment company This which The posted from the XX% Now $XXX,XXX of included revenues XX.X% up of about XXXX I'll of the during Revenues quarter our quarter performance quarter XXXX. make operating revenues our comments first the $XXX in acquisition incremental December XXXX. segments. total a the of of million Healthcare first generated customer of

and capabilities consulting revenue our in digital the the reflects and services increase strong in The managed across in quarter segment. demand

consulting Our managed by advisory our managed strong offerings. in first capability demand during improvement, care driven the and performance quarter grew for cycle year-over-year services health financial revenue XX% services and

digital Healthcare capability in grew XX% Our year-over-year.

XX.X% was contractor QX was in for XX% to compared in income revenues Operating as primarily The of Healthcare due our an for performance bonus the offset that for growth expenses revenue revenue-generating outpaced by increase partially quarter XXXX. professionals. revenue-generating margin the and to costs increase XXXX for in personnel related expense and decrease our benefits same margin quarter-over-quarter a for salaries, in percentage

by of Education company increase segment first our generated segment The from demand record quarter Education of of revenues across in the XX% driven XXXX. or $XXX.X the of million posted XX.X% million this during portfolio quarter up segment. the quarter $XX.X offerings total of revenues The revenues in in first XXXX. was The

and our education demand the technology Our analytics demonstrating data, strength grew offerings. in digital capability and for XX%

research Services capability driven by for XX% Managed Education and offerings. strategy Consulting grew demand operations Our and continued our in and

increase as Operating XX.X% outpaced in increase to compensation QX XXXX. revenue income for same for well in quarter was revenue-generating that an growth decrease in contractor XX.X% our margin for the is due The Education as professionals. to compared costs primarily a quarter-over-quarter expenses XXXX for

first revenues strong financial company generated revenue The strategy the or of attributable and segment $XX.X million digital for our was Commercial total and from quarter XX.X% demand up The XX% first primarily offset XXXX $X.X in quarter-over-quarter in partially of during offerings. the XXXX. million of posted advisory quarter by offerings increase of our revenues declines to

Operating was for marketing personnel to income in costs XX.X% for primarily was QX charges margin decreases increase for XXXX restructuring and the in compensation the a our Commercial same percentage revenues. promotion XX.X% offset an by segment for quarter-over-quarter XXXX. in to support The quarter of due partially and as increase expenses compared

of assets million offset in Corporate which level the were the to allocated income that with fund the expense. investment at not expenses the Unallocated liability includes quarter plan QX our XXXX, increase reflected the compared and QX $XX.X segment in first compensation plan, is of XXXX deferred to $XX.X gain expenses the corporate in by related million million in $X.X other used expense of in XXXX.

quarter we reduction first a plan $X.X the liability. of million of XXXX, recognized compensation related our the in In decrease deferred to expense

impact the compensation increased The space. expenses support for reduction to charges. increases first administration million, corporate personnel $X.X restructuring compensation in due and of well the of office expenses restructuring costs XXXX practice, incurred quarter related increased both as the our charges as the plan to in Excluding meeting periods, of and unallocated in deferred primarily

debt was annual to $XXX with total Now consisting and $XX compared our balance bonuses. million We million of This of first cash of million. bank debt flows. our $XXX $XXX payment sheet increase debt the XXXX of turning senior a to of reflects net the cash finished quarter the entirely and from with the million QX quarter

also quarter XXXXXX share first of shares. included The $XX.X repurchases million or approximately

quarter times ratio $XX developed in EBITDA, XXXX, in in EBITDA X.XX of end of inclusive cash and expenditures to million bank million at an negative first $XXX times our used compared adjusted agreement XX, adjusted the flow as Our $X invest million. used X.X of additional of of we QX operations capital defined senior free resulting in cash March XXXX was as of our Cash the leverage to was costs in flow XXXX. internally software

first and education driven of came days billing at engagements, XX revenue days days the the for XX large the XXXX compared for The in in DSO terms. DSO to of XXXX. in the of quarter contractual for accordance where recognized XX first quarter certain the amounts XXXX clients fourth and primarily our by quarter increase healthcare was exceeded billed to with

for We and expect in services XXXX. the bill of to collect these second half

$X.XX a mentioned, February call. of affirming provided of the before $X.XX EPS that XX% reimbursable in billion, guidance during EBITDA to to of the $X.XX billion expenses a to we as Thanks are adjusted earnings range Finally, Mark everyone. and adjusted of Revenues our in range we revenues range in $X.XX. XX.X%

call like the Operator? would to now to questions. I open

line the Securities. Tobey comes question Sommer first Our from Instructions] of Truist [Operator of

is line Tobey. open, Your

of the how sort quick afternoon. Wilson sort one your This and growth what assumptions? retention Jack that's with of head and margin count this full on is Kind is quarter about year of experience Sommer. a good impacting Tobey for Hey, levels sort of

Jack, happy that. answer Sure, to

attrition that's a we've about end of So year levels pre-COVID. they first about And And talked where calls kind quarter. saw of was trend what towards our to that during been really trend continue recent related the last topic to back the was we we normalizing the that attrition. in had talked were

even quite attrition low In fact standards. to were rates our pre-COVID relative

our for and pipeline, clients. work our of of perspective our culture it's And we that and a that with think the headcount. the to the pipes – doing at terms that's even backlog our still we're good great year And revenue coming look the from we're when of just through so confident the reflective in got thing we've our I that over remainder increased utilization increase

Okay.

Okay.

then increases for hiring impacted to plans follow-up rate of the Does You're utilization? of in the that. at sort hiring year? least your costs rest or So bit a a that of little your realized

back even of the our of from capacity to we if built a revenue-generating last kind the call, course of over commentary we lot – our go out you What XXXX.

aside it So at trends the really were than slower our would from count current attrition in year likely was be a we building even always the was expectation when resource capacity head pace that last mode.

talked really And was so is just year about had before back a we what be we our less expectation the hiring over half for that's but from that, not capacity of will it year that based added the last XXXX. on the than change

go one of in in Okay. bit quick we increase margin income segment maybe Education Can the a one. operating Thank you. just in in then improvement there? little the of down sort And terms

Sure.

So really entered that's continue terms we adding of team And an where that to we team. a strong we've And able which increased quarter, results investments we I lot growth. capacity this utilization that last better has for in really across that year of see been as think area segment. now driving for made been to revenue margin

much. so turn it you over. I'll Thank

you. Thank

question comes the from line of Company. next of Blair Andrew Our Nicholas & William

question, Your Andrew. please,

growth. on my for first Good Services Thanks afternoon. revenue wanted I Hi. ask taking questions. to Managed

strong think given particularly and its across both size. but I Education Healthcare, Healthcare really growth

if Just over. me start -- let wondering

you more easily Managed Services maybe profitable part bigger ticket with investment clients those those projects. I the growth able that help into think would higher there to cross-sell more and of the was and be belief relationships

update us this point. played the that I'm on dynamic cross-sell to to just So you it's if out wondering, could that extent

Andrew. is And dynamic. That's question, great the a that

that's revenue at business Services managed improvement expressed describe performance and in we're it I work. clients services on directions. that have build our right performance playing interest an then with that us on delivering performance the we've initiative strategic a improvement And also in where increase of both thinking is that of we part say, their part in was our clients seen capacity. seen And actually You're way I'd the Consulting out. Managed managed and after out they've been that performing the would to services structure as improvement where results staying initiative

look this it pipeline projects we've both we and services, at XXXX the and multiple seen course we've of And also when ways. projects got having to managed that, managed is at for when those offering all really into competitive our interrelated. where one digital very is differentiator you for they're really that look we've us. our have So client. working start the over those viewpoint a And of consulting scope clients, And services at nice year

also described Yeah, like John win The Andrew, have research technology feel on. differentiation it's pretty of a add strong couple and spot the we just a ability right research revenue cycle to services. in -- places comments which managed Mark. that have and I'll is we then color to administration management, in in

So feel areas in added having of nature. really we the managed have. really revenue value And in we more like overall with the much work three for big that results combination of services, recurring focus that synergistically us does

hear focusing on you'll very services continue us a managed So to particular areas strategy. in is intentional those in

it of trends looks the to you. segments continuing be Thank could helpful. the great. move couple positive next like and follow-up, the direction you. on like if each color any quarters would bit in visibility a then what are Thank talking time of additional segment but seems over certainly the about just little my spend for pipeline a more And by That's you

Sure robust. thing, the Andrew. to continues look Overall, pipeline quite

revenue feel when that's ratio when revenue XXXX. significantly last about to in had us about look than XXXX and fact still is higher at coverage plan for we good quite in very the And you we with obviously it's so really at even indicator throughout and the revenue continue and to pipeline consistent And look growth which with our drive year. our good the ability our year, a backlog the

prospective started If to levels improvement. unit health That's see continue demand the really and strong performance then robust demand as the at unprecedented in talking digital for of we've I care, year, number also our are that's third continued pressures. clients And and to take last that it level dealing business quarter seen for down clients offerings. just with a we about continued a financial our trend we

the really feel within health across good So, the about board there environment. we demand care

what education the a also commercial as That's a conversion in significant we're an the entire seeing see been that's part out team we business, story distressed from XXXX pipeline And a it's our seeing gate. And strength perspective, XXXX then a digital. work to continues of as across a amount continue From do financial segment of hot advisory in was certainly of commercial and to growth of perspective, the broad there. lot that's been great to we're then and the area. of lot basically of related about the

at So good across board we feel the pipeline the trends. looking

you. Thank Great.

Associates. [Operator Steinke you. comes line next Barrington the question Our from Kevin of Thank Instructions] & of Research

Your Kevin. question, please,

afternoon. Hi, good

Just up that on following question outlook. about the

if Just close guidance range. full the year. start first obviously, of across annualize just quarter year a very But of growth three the you end you look pretty quarter the strong quarters, that million, you maintained high in guidance -- $XXX get year. revenue the a the if about to terms certainly Revenue at to next your implies revenue solid strong guidance,

should we is there early the make built overall the conservatism about flatten revenue something out So in of think macro in terms in just anything of environment? fairly maybe still there's that and would you're kind that here, if just given or this wondering sequentially year

first commentary say, and very the pleased just would about execution we're I there quarter, the John. backlog. it's with with definitely pleased our our Kevin, had

we So outlook. and about really the the good quarter feel both

then do the to half. guidance the in both getting you for lower think our that a QX if update. us think towards point range full would this probably towards out and certainly trend point, backlog, months of in more that have give confidence at current upper To until of the to than is that just terms viewpoint lot your the at I there look actuals year the we wait half guidance being the the year in I three midyear our line

that. months to go, think the do key backlog about we So rest good is point this good throughout trajectory. the of And but to year. to we in continue the midyear on think, us for year the to we're feel now with about feeling until just updates, left I wait At that nine any executing it's the prudent

I'll Kevin, that that the are significant facing just Yes. add really markets seeing challenges. really we're some

just And so creates as that very just you demand for And our an range look and organization. you're in broad-based at environment health across XX% education of digital business, if do what a care today us. talking in the we

would I company. have, of we the but anywhere in So let's certainly ourselves, signs of not want the about feel the get don't we seeing for to characterize of good outlook what foundation to say, weakness ahead very -- and is we're what many

Yes, commentary. that's helpful Great. Okay.

So, the you on there touched revenues. recurring

that, think about we the increase from up XX% recurring the is the revenue? the a nicely of the think try to so fairly outlook for fact total. business mentioned percentage as and or recurring company that growing for services. And will strong, you're of to revenue maybe even focus you that of percent mentioned, it side the I of Mark the the a managed these unchanged, should you that emphasis on though that stay other Is parts sources,

roughly but just that so additive we feel base a we well remind of do ours that you, focus to development can getting managed a Kevin, services, services is capability as comes types it XXX into, people we the and is more that what software we recurring only provide. to overall not because of becomes really and have from that

clients, that that And can us of traditional not serve relationships span with so, them about that it services, revenue we becomes, when we a but It ongoing synergistic consulting really things us gives their way just just support growth. needs, continuing of stickiness. think models more comprehensive to only call better of get if the broader create needs a

little talked is and just At not for serving highly why other and services services the we everybody works a are in with the our it have that areas because we're would on everything a It's that's right feel, have. of focus, on say, managed carve to same ahead market services. trying I I consulting we things bit time, of about really to the where be focused basically market, runway us we focused managed highly in needs out that the to space that differentiated lots

managed Great. really within few you segment revenue revenue. emerging said cycle XX% And the talked to think business health services this years, and over of the Okay. about up care I last you

want Just years. And thought emerging maybe over And how update maybe trying any legs perhaps that to businesses nice few specifically, Medically or next the think practices some other would other some businesses that that's have going? of growth the I could highlight Home, about, to an you across on emerging company?

even have They operations. of and universities complex, really increasing a point for to make and I research they labor Well, from of just are Kevin, opportunity challenges. financially do only us money lots a will that compliance those been come have back not always staff challenges the as wonderful enterprises but getting to research there's the because not view,

focus opportunities see, win. enterprises we manage their to track a strong think, do. right That us for and keep those the to a clients we of so to an our is on we they what continue help And area have record that core very

So, that's business, highlight. would one I

serve we lots XX% add everything we do, because in continues now, I'll comprehensively. one to our is pretty today of I cycle, our that is India And employees again think clients to we opportunities services, managed our and another across see foundation think which another of area to technology that be revenue continue opportunities. have lots Again we

evolve we're in relationship Home asked, have to Medically would You Medically about continues very specifically we business the there. happy Home. say, I with and their

I areas. that that other you have have that highlight our so one And anything business may just John not -- areas growth of is of many we but mentioned? within would

Well, little which most services education area. is well just the outside big really of managed it's a the also evolution growth within a the realm student as there's for part, but

there's the us years, significant out in components know-how -- technology and making know-how of If really our where to that as digital their we over XX you the well industry a our student investments of lot clients both know-how. look where the technology differentiates digital our next see and business five as

So, going that's we a ripe for be us. to think area

that student of be also our list. challenge our there's for and item clients. right our Enrollment high-priority I'd analytics at many is another I and is trends would now our too. data around around our one think then the expertise big That student a But clients add a enrollment advisory to

be close roughly to just because we have $XXX into our digital secret are capability well million, we substantial it it -- focus and XXXX mention I digital best kept have that grown of with call our especially as some well the as in used see additional opportunities bringing as I probably I'll markets. industry commercial to to And because for in comprehensive pretty capabilities broad increased growth there at

Thank you. Okay.

I space? missed think you but -- heard talked acquired? an of did and that John I more hadn't in acquisition don't I just it, that correctly. there was something know you the care you was before announced before any health mention I It if recent that kind about

headcount of out as care. of a digital the significant digital perspective, It perspective fourth the build in strategic to the and small from XXXX, at but intersection and and from health continue space quarter revenue was a in a care capabilities acquisition health further we our small

the to and a give -- revenue about broader quarter. sense my in was of that of first excited the I remarks prepared the the said size just to during $XXX,XXX it the what we're it's bringing So, team

that. small that perspective a relatively think strategic So, from more significant regard we than in

it for taking I'll Thanks turn Okay. the over. questions.

Hussey. And to like to turn queue. no questions call back seeing Mr. the the in more I'd

Thanks us forward our announce to results. July afternoon in when you second time speaking spending for again we and look we with quarter evening. Good with this

today's call. for concludes That you conference everyone Thank your participation.