Information Services (III) 11 Mar 222021 Q4 Earnings call transcript

And Ladies and Gentlemen, please stand by. Good day, and welcome to the Information Services Group Fourth Quarter 2021 Results Conference Call. Today’s call is being recorded, and a replay will be available on ISG’s website within 24 hours. At this time, for opening remarks and introductions, I would like to turn the conference over to Mr. Barry Holt. sir. ahead go Please

call. Hello Alfonso, a morning. ISG. Senior everyone Financial Executive quarter to Operator. Connors, by Barry and Officer. Vice Chairman I’d name President Holt, welcome Chief conference fourth ISG’s I’m Communications and to joined and you, today My Michael Bert good Officer; is like I’m Executive Thank Executive Chief at and

and potential forward-looking It that statements anticipated. to begin, events certain like future represent differ cause management communication to statements concerning subject is future uncertainties and statement. important to I’d their forward-looking those this could the to we expectations are of Before not from may current a guarantees risks contain which the are of and actual These that note read and beliefs results results ISG of effects. materially

listing that XX-K and future statement For the results. section X-K, Form results, a Form last the on SEC Risk ISG’s refer Factors full-year and factors affect contained to please of more the forward-looking night to was that our could the covering detailed risks furnished in other

amendments should filed supplements You ISG’s on any Report XX-K to any read other including documents these Annual and documents SEC. with relevant the Form also or

ISG to forward-looking copies no be able any website www.sec.gov. events to SEC’s obligation any You revise ISG’s will SEC subsequent to or statements obtain of undertakes on the or ISG’s at website either free update filings of at reflect or circumstances. www.isg-one.com

in provides transparency the key with adjusted discuss performance. evaluate we are considered company’s upon Non-GAAP are results believes the The to will the a improves should adjusted measures, or currency we for financial in as constant net data greater the financial accordance call, as GAAP. basis. ISG prepared of which on results not will and periods substitute provided non-GAAP additional comparability measures this be financial non-GAAP and today, isolation used company’s and which measures, a presentation of information, financial During earnings, selected touch measures EBITDA, between of for

presented applicable SEC. most which to to report, closely For reconciliation be now, last measure call the followed turn with I’d on will of refer Mike? non-GAAP measures the our the like Michael Connors, please to current night Form And X-K, was to the Bert filed GAAP by who Alfonso. over

XXXX our you Barry fourth had our year record an will outstanding with the ended quarter fourth ISG I our morning XXXX full outlook quarter. for best $XXX of $XX historic results, generated QX good ever. Today revenues year year We in million everyone. record Thank quarter, and record and of capping million. a and first off and continuing business year full review our momentum revenues the

to million total year well of up year-end on an QX points. nearly million. our XX% We from million with of up XXX way XX% $XX EBITDA delivered We our from in the EBITDA QX year XXXX bringing recurring continued to to target adjusted expand last $XXX up prior up margin our $XX basis of record million than our more to full $XX year XX% revenues XX% and

adjusted record of the one. We in points. an cash Of Demand of For up is threats. Security ended a ISG, optimize to and were power growing a extend EBITDA brand the to the and have a is amid is X% year-over-year, that healthy million IT More we moving the discussed up XXX department. being XX%. EBITDA our customer in no growing business. XXX we From continues. a client under cyber It of and sign with XXXX total, ratio EBTIDA the momentum. digital employee a to to excellent up Cyber business perspective, cloud debt a XXXX record full our net margin XXX million Coming experience. XX% for clients to longer increase of served work our year, year with reached new balance XX% basis the XX% board for up year an $XX concern off applications position entered at just level $XX

We're it demand M&A activity are mode, ISG. expect and Clients sweet that will is to to need the make trusted our security, needs evolving in like app technology XXXX workplace, that and on their a integrated digital We all experience monetization, increase to business across continuous rationalization to customer all engineering, digital and both spots goals. and focused and key partner cost to complicated. for areas But enterprise transformation Cyber digital are data on-going achieve together of optimization sure ISG and matter enterprise. have cloud. working get drive Companies for analytics, technology, people putting together and in clients.

to deliver and is the profitability our Our clients agility industry. to is for most ultimately is more with in value value next more services solution so comprehensive portfolio shareholders. clients ISG The unmatched our and of model operating higher products do greater and and and And efficiency. centric revenues, to result designed growing our our

our growth long single profitability. EBITDA growth business digit model at term remain revenue and our half line as a one high growth Our we for top times and objectives leverage growing

targets XXXX. exceed as we we these just in strive always, As did to

of the revenue into versus $XX X% million Americas quarter, year. in turning prior up the our Now delivered regions. The

the up year, For revenues XX%. full were million, $XXX

is USAA, During utility wins into separates ISG also Caesars cruise the our industry banking acts pandemic. traded services, visibility spend Humana. saved The solution. looking Key government a cruise major in consumer two supporting ISG quarter client double-digit with and as companies. Exelon, it engagements it’s time saw and GovernX also especially a it when is verticals. vendor greater important major is up XXX management notable a nearly into a recover publicly of gaining the supporting services, and after quarter, is line our This U.S. during we were the now is Among and result. double-digits. a during client vendors our with period industry our media automation dollars to included research, millions Entertainment, Among difficult growth fourth the at as

on are the and optimize entities We to decisions a cost it as estate, for operations going divides its range forward. looks of both advising and its base technology technology company

$XX our to million up versus X% revenues QX Europe, year, constant Turning of were currency. in the X% prior and

For revenues were year full the up X%.

verticals. in Ministry and sector, of Europe Europe QX, Munich growth engagements public double-digit included For in client the banking revenue in in the Key Interior. delivered our fourth automation businesses media and Italy's Deutsche research, and our industry Bank, insurance, and quarter Volkswagen, Re network

$X.X major of a region digital Nordics fourth to in bank During with the one million awarded support quarter ISG the industry's a largest the engagement efforts. was transformation

them our center navigate the complete India also German sector, IT the approach, major expanded we with revamp to And tech major offshore company cost company transportation in global are We establish work including services international optimization. client’s their modernization, financial to digital software transformation, support helping shipping in and operations. a a a workplace cyber and insurance of delivery security, help an

verticals. growth turning the record up Pacific, a XX% Now and revenues the sector industry to $X driven Asia public year, with media this region versus of banking, insurance, in by performance setting prior had million, QX

a year, clients and Taxation the Asia up Ministry insurer, the XX%. the Suncorp. in Australian included revenues quarter Bupa health $XX.X Key Australian Rio Pacific of For of Tinto, had Australia, Office, million record Defense,

to services focused helping of to the region the ISG industry. optimize global client HR in business with the company a business our finance multinational to grow leading to on continue major company, leverage transform from costs. energy services the across areas We and technology lower all engineering performance its is functional

on close business value. quarter X, record efforts of Now moving to our payable on of enhance cash of share a our common the part ongoing will of to shareholders dividend, receive $X.XX stock XX March of of per shareholder dividend April first

in Now, let guidance. Europe to and on restrictions me rates in client continues COVID lingering and certain The have pandemic or been to vaccination several industries, turn uneven. have effects markets

However, with and improvement course that of during virus are the signs endemic being of we these with markets and XXXX. phase hopeful the see the entering we'll more we are lifted, restrictions of rebound

major we Those you Ukraine, people a are and moved imagine, with software stand elsewhere. engineering to their struggle as united particularly a and As Ukrainian would state. for services, crisis sovereign for become being hub in development. the free has activities Ukraine in remain technology

number services from obtaining no has in enterprise or ISG operations or either people a our clients of rely Ukraine, Although Ukraine. in on located providers

other a we cyber As And invest any to overcome pandemic, we the the small are it companies challenges. and initiatives. potential the only it helping spur could situation in committed services. did think plans their contained with security business on global even for and technology impact more have them will and to we digital Ukraine possible is if Overall, market adjust

FX we Europe adjusted revenues quarter digital for million demand these impact between XXX $XX are factors, a points $XX including basis and between with first and $XX and of balancing from principally the macro negative million. million approximately $X of So million EBITDA targeting

Looking through beyond digital we expect the we rest momentum QX, move our the revenues as in year. growing of

Bert let summarize our to So with over Bert? turn who the results. will call that, financial me

Mike and to morning everyone. Well good thank you,

very XX% $X.X income in with XX%. $X.XX ISG of to or Fourth $X.X share for the a year, Net prior or was up Americas Fourth the Looking an reflecting compared Currency of was were outstanding strong basis revenues million revenues year. momentum fourth million net XX% $X.X quarter prior $X.XX adjusted million the basis, record up income for record fourth on of the XX%. impact $X.XX fourth the compared X% million basis, up million $XX.X the with last of a and $X.X Asia in up the prior breaking And reported X% year. a currency and Revenues from year's $XX.X operating as $XX.X fully fully fully in $X.X compared were quarter diluted $X.XX by share $X.X our share currency. margin our in adjusted EBITDA of at constant a at compared Fourth fourth quarter net year. next XXXX fourth and XXX XX% per net per year’s EBITDA prior close The reached continued prior model. million, the revenues was up the Consulting reported year. adjusted income impacted up the quarter the up versus revenues million the on And were million million, points $XX.X year. quarter, million, versus year. quarter. versus year, fourth diluted million the the income quarter X% last per or the resulting quarter, share, quarter in reported record was basis, with increased an for quarter record X% on we reported of $X.X a a diluted operating or constant out income utilization Europe prior $X per for negatively X% Pacific, with million XXX%

Our continues have balance flexibility business the and term. over sheet to our the strength long support to

balance And operations quarter, and repurchasing For debt the quarter, by prior of to to quarter million. of paying cash returned the debt-to-EBITDA million times. our net fourth debt $X.X from X% $X.X the $XX.X X.X was ISG our dividends million year, and million the $XX.X of we repaid with the in in lowering $X.X in $XX.X we ended cash million provided And net $X We million our up million year. shareholders shares. ratio to in million $XX.X

returned $X.X dividends million form $XX.X the of $XX.X we shareholders million year, full repurchases. the and in to share in in million For

shares and rate remarks Mike. was go Q&A. Over we for the Mike X.X before as year's the borrowing of share we outstanding XX% X%, December some now from million concluding quarter average Our had XX. to you XX.X down will to last

best Thank in $XX our [ph] QX. an overall for with summarize, of camped ever record Bert. the To EBITDA profitability year record you, EBITDA and $XXX a XX%. record with million year margin revenues was Revenue was a million we

with a enterprise XXX and driving year. point margin Our improvement basis point a nearly XXX in a next our is model the increase quarter basis in ISG operating EBITDA more the profitable for

dividend. quarterly down good million optimization rewarded and ratio below the ongoing for demand times we net fourth momentum shareholders digital of ISG balance cash a remained cost Our EBITDA. debt-to-EBITDA to for strong, sheet We And the one client have with transformation sweet spots. growing playing and our consecutive $XX

for value in As And shareholder excellence our are we clients. operational mission deliver to long to steadfast always, we creating term. are focused on our the

calling for much morning. over turn now for operator very questions. me the session you this the thank your to in So let And

with And Instructions] with begin [Operator we'll Marc Sidoti. Riddick

morning. good Hey,

Marc. morning, Good

to of now. the and if guys sort those your some of trends with of clients out? the a year. which with finish back support encouraging global given the very you you wondering that around played through the So and bit I in challenges. you what provided with that want little way on Because, of shepherd prepared them of talk of pandemic, to we're I a was seeing before, could little a those your going to give with being kind touch events Mike great bit, help that during to I remarks, events sort go the clients could in idea some if you of, a was of an right those help, global can situation that sort what's similar wondering had experiences on sort of folks way the

question, to the those of, hit them pandemic, retailers, had clearly, extremes the lines, management, were in And different that network the and type all our those the and of took like of in clients had more we that kind it hospitality, two way distressed, we digital services, took buckets, to pandemic, the that ones during little having the kind they industry were because you operate there that bit helping one, rapid who the they great had think in services Look, a of about during of two etcetera. were that great, off really of costs had our harder, I'll kind cruise on Yes, Marc. understand a were advantage we distressed segments others better we our had different were on out, offer, call others of operated, more take environment. of workplace

if cost using around optimization them you automation. them will, we So using technology and help allow

take pandemic, their on at a they services, client, ability of faster lot looking cloud the experience, really the to and and with much moving to employee analytics, that of the trying them their they cloud, digital advantage use market experience. their the we were accelerate what transformation, with On the accelerate customer growth could, time their with to And data, do the kind position change sides to focused etcetera. with cyber the the

of Ukraine on As a kind Russia, or number risk the situation, the a initially we're you moment. have will, of who enterprise we in Clearly, this, apply clients providers if to bit operations you bit are who have at seeing two things a little at emerge; Ukraine. both those of rely

other a down two, move number one. as in of work cost so can from out, a And immediate asks slow rapid their should of basis. at those areas how to that's And a businesses very us is their way, you what this, we result we're number least help if areas temporary move on And can us rapidly doing.

On side, are and help us Russia Ukraine for enterprises. providers other who operations the with asking the in have the also

Ukraine. disruption on got the in we've and during side enterprise side, that's occurring opportunity And kind so an the both of terrible this provider

So maybe that hopefully, inform helps Marc a little that you bit.

that seeing your situation? with is coming challenging you. it you odd to unfortunately, Or Thank And that new you're you that, existing but seeing I you does. guess, relationships are an are and, does is of It a I sort primarily are clients the working there? way asking this. wondering, of was

good Now another that's question.

come of We who we and clients our of level relying can that on to management, get look, etcetera. because providers. like currently and we're All are believe provide us current need new are, services seeing us the that quickly, have to in we do number service we we software a the not do areas going X quantity said, the have you to for things or with been

are Marc. we seeing as some well, inbound of So that

you certainly pleasant to capital could the update, balance guess, gears a [Indiscernible], little of wondering strong sort acquisition shifting and bit guess more a years I I multiple I bit of great. pipeline. visible to was a on is very the Okay, improvement wanted sheet ways. if in certainly returning and shareholders give an what I seeing has touch maybe topic. guess. I you're And then since been, It's over little the

to you're of sort there? you if as wondering some maybe So thoughts give seeing what

and touch on itself. touch just on Bert M&A ask balance the I’ll then sheet to Probably the

On the active. M&A we still remain

here and we digital you recurring or look in are space. over ISG, acquisitions for the can acceleration done continuing we've provide space we the lifetime revenue As that areas our an at XX know to in

done. So digital, like to we technology that have the kind all the in we're it, look at. we disciplined on things of long recurring pricing. very we But deals sides will to looking fairness get And as as the on area at the end that's at equation, of able we the then are and we continue past, day, deal have both of be

the more the individuals on see market And also they're M&A provide that we in of we situations. for the pandemic; see different So the opportunity ISG out side. coming good, opportunity may

On sheet, Bert? the balance

morning, we're the strong cash Yes, I Marc. be generator. balance the With a will very that's our cash respect we're we continue to that operations of that's, commented And good to things to flow fortunate doing, to already to -- from which strong. business some a on do. sheet, have continues quite

committed that we're the forward sense makes board's been debt. down And you terms And growing in in share over believe and with as active dividend. buybacks, marketplace, the pay our quarter. so in saw to the we’ll that fourth we've to concurrence we're, diligently going continue And the that we of time, dividend

payments, as M&A but comment the us should X% ratio, I mentioned we rate, which to get around certainly lower materialize. a with that going not with made accelerate help Although, continue we're to you those can leverage a earlier to,

And, priorities. trend a as see key and we firm. So for the continuing that those are

year? next extra just for and Could CapEx, at be you out finished we you. guess, On we one, what I show for where purchase, this looking one may

investors familiar intensive this low the is very capital business. that of of pretty are with our is the a one one Yes, areas

million, very primarily, but tends We CapEx, sometimes area, that upgrade a that of laptop do more X capabilities. that have we'll ones you're in in over million often low of which to the period terms replacement, requirements. clients range to the we GovernX in side, our so familiar most research desiring platform, we our do X perspective, well, real in But, see estate as up continue a my to be platforms, from our And but are as sort really from of time. it we invest that we GovernX that which SaaS with on more, we,

much. very you Thank Great.

Okay, thank you.

from Joe NOBLE from hear Now Capital.

on the morning, congratulations tremendous and Good Bert, and Mike quarter year. a

Joe. morning Good

Thanks Joe.

gross question here. Quick margins on

margin up about model saw profit points basis from Just looks we earlier year. fourth XXX like margin looking was at the gross quarter our what in in the

what retreats wondering that you and behind was Or level think that do XX% think level? it to back the XXXX? high do what Just in more to could the per that XX be you

has Yes, gross ticking factor has been It been margin slightly the up revenues. predominant there XX. at is of our around reasonably our mix the stable

in as, on part so benefit Mike over which as revenues, large a revenues now, our our to and And that gross slightly our give in which recurring do as us well margin of are tend higher regard. mentioned, as services a be XX% digital

from digital growth benefit And services. continued mix that SG&A the perspective, control So, positive as see focus as component but an product of I in the a mentioned yes, as we cost well space. continue on but, well to is

of of know the chain hiring. Okay, the And here any the is thanks inflation, for supply doesn't here big issues that. not are saying some everybody one

prices dealing with that pricing at those And issues. looking competitive of environment to the you on here, pricing. how are you of around whole guys raise looking how's wondering, raising types Just are

we'll the So pricing things, side on on Joe of about staffing on the side. and the talk then first

to We to to to want to strategy years, clients clients. we our our for over with on be we the have we run. our want firm be ROI pricing. We, the a what fair, us to stay And because long able like refer is continue as

demand to pricing a So and up in our we areas. will, you beginning if rate the feel card, that our we bit it are higher primarily certainly move

pricing, will. about you it almost as surge if think So

as reflected for can recurring and we seeing in those quite areas point, the so Bert's you're lot to higher us. And results. and round in And margins our are a be the of the overall being that firm digital

front, for the we has had estate, we a didn't firm. born we our We people we up some That end with our want and were from staffing to and working XXXX. in roaming We therefore out home with over continue the model from model shareholders played terrific from We serving around owner as On real couple day have well have our years. one virtual time. ownership that our And well. operators business with clients a stock.

still be seems that to quite So steady.

XX not XX, pre-COVID. moved XX, from you if XX turnover much, rates have to Our to go from back really

we've that India very, is that's very and So turnover The the used I'll range uptick industry in we're been that last couple dropped primarily to significantly regard. all XXs. in kind the over the very XX%, call there years. We of kind because call area India. the the only run of dropped in it We lucky seeing XX% low our had up out strong really around of The mid-XXs. down in in to India. as way the And

by are uptick workers the points basis that environment. seeing with India that XXX of in We demand just about

historic us. So we India, of a but in what are still seeing our uptick for levels are we below bit That's India. in seeing

touched briefly, new clients. on more if may. know, mean, you Great, I the And you I thanks. one

coming numbers mentioned try of you've that's them you to marketing clients to to bringing is the the a on think better come Thank that it's end is better is continue focused year-over-year. was that because to idea, to more little you. what that XXX to so and, awesome campaign new brand speak, word a and up that we're client potential the clients increase. of mouth, so as that I seeing in your in XX% What it that driving new you, ISG kind they're made through particular, attractive new year

good question. Yes, Joe.

to way I the market moved I that ISG. is would answer right think the I think

the I great go a paying We that around ago, have is few of global intensity to for digital cloud. we've of includes organizations term transformation. huge XXXX success, a digital investments those And all And it a long think wave in things around strategy put unleashed had off. are the kind we because years us place call stay And digital. I'll of competitive It that have the data their of Clients digital experience. modernizing of need table. side workplace, the It know and base, a they the embedded from they and skilled client And customer produced them, includes independent on with the have kind when ROI includes company that an we they applications and analytics. go to us the one that partner bring over. and we great next, for

going with if client pre-pandemic place at our resonated of in the kind who so has referrals from if So current kind power company, go to to success split to from getting can and we are started have Company we if navigate they're them a clients B, with of technology or Company word through they great them market. We through A reputation of we this place. help And move and you pandemic. help mouth their and will, Go-Digital and and from

we and that skated on. is the use we've think that strong where puck that last analogy, we, So to I momentum and if our year, what is I underpinned moving performance see is can really

And Great. get back and year. in Thanks And queue. on the again, for congratulations I'll the quarter that, Mike.

Thanks, Joe.

with Colicchio Vincent from Barrington. hear now We'll

Yes. quarter. Good nice Nice, morning, Mike.

Morning, Vince.

to any just war? the in Are you Ukraine you talked the cycles, early, Europe sales about related of benefit seeing changes I'm delays you or So but and maybe any areas yet situation. curious, from of signs how

Think What I quarter, we in little through in what we done, see We we Germany, think close is are move uptick a XXXX. saw clearly But particular. seeing Europe. watch, France have the it, and I about especially you it not. as you'll think, think fourth in the has

are there if prepared mean, other in their how focusing I use clients want that that, to ready they now they're by they escalate. and assist order. and and make They making in can cost plans, automation want region they things And them. technology think sure to are with I sure armed house getting

pick So as those that begin Plan to to companies that rapid plays, strengths. to of of I put call it call areas, And are I'll would, in into beginning the B the kind leading steam, preparations change kind place. up ISG again area that

in So early that's stages. what seeing the we're

Ukraine refer to like it’s as to anxiety don't they some how the on in situation has into then wanting created they prepare just we certain themselves. And that being doing, of move And clients transferred around that if So they them, want advantage situation, region. to to. so the fast they is plans could anxiety taking Ukraine need in it just want

thanks for of quarter the expectations? your upside And that. What caused versus the

Well now everybody think the around because competitive think, is I customer whole, faster look, advantage. I whole at a accelerating, the clip, a move that experience maybe the needs

workplace, that So we're seeing the as live event that can say of this all spot. the since whole involved, showcase hot. I area they for good since the very sweet having the kind in of the and technology that's pandemic, technology first City, long do time it. very kind We're wanting We're on what would New clients actually York that to And there's of topic also a digital this. the at as array the hot. is has a thread And to our workplace of future, or very the

say areas picked are, vents. I those have some up in So would particular good steam

And related. some are

-- sales at should pipeline, XX? I'm them. curious and areas service with service were three If areas your are what you mentioned those strongest or you're I of be suppose and looking two and two solution four, solution

are migrate, the is cloud to Yes, kind have a really strategy that the next can clients. operational move And for people the out, portfolio cloud, that do acceleration, all happening you workloads that a there then of of and And what around an scale. model in is say can right. But cloud certainly, enormous step. of while kind build cloud into Cloud for implementation is economics developing to migration, amount of when kind you're the still the is kind you percentage hey, we out the designing of application that, of scale you cloud enterprise scaling strategy,

to management need it as these continuous of enterprises. level for relates to kind of a You design risk compliance,

there. of more And with creating kind with security, is of are, cost see takeout kind the kind of in Europe. So clients addition even cloud call area the rapid pronounced the the being migration whole with cyber in it what those then course, addition, rationalization I in Eastern areas clients, helping going to roadmap areas of and on executing because application cloud right now is I'll

assume adjusted fair I margins there's to Is year. fair no to to you'd higher say say? setback And that the expect, demand for it's EBITDA

wanted a you'll XXXX, XX%, Yes, margin of that that EBITDA we around basis journey. in into back were two I so over we XXX said, year to we're recall period. And, mean, we gain are when basis points points XXX

we XXXX to So in events. looking definitely expand that are

that explains the have. levers that And you

So scaling of I they up. your rates, one have the room is utilization about I'm so inflation, move particularly wage offset revenue assume curious But to them.

had we one want on on Bert to utilization? Well, that touch you

line go utilization to scale don't, top it we at we don't XX%. Sure, there. in give us a ended honest, XXs, perfectly -- at leverage. the utilization, continuous the tick And could level. terms sustainable It were sort to think and the we of will XX, our up with be but of the we we certainly that's for expect a to mid year from We higher

are about way seeing able it that's not certainly we be that's now. on a half the We're demand some right year. think And although way the back the so we we of to to of back expect for we, that, client, for and to that. the And, lot maintain planning of

quarter. And Thanks, again, guys. nice

Now, Capital Markets. we'll Rodriguez, Marco Stonegate hear from

questions. everybody. for you my Thank taking morning, Good

Marco. good Hey, morning,

flows us nice help the maybe a line. really expense lower of the rate slightly next you're not I half why bit think a laughing might just now, think, that's that that just thinks flow model of EBITDA and a digit term one times model, as could Mike, year comments come higher? with in on to kind through Good couple wondering, flow some was EBITDA. last half a single model, incremental Obviously kind of in I the the XX, rates, on Morning, unprecedented one XX, maybe are back fiscal years prepared of guys. your be was you kind through with operating overall growth and of had, ISG remark and long and one And through you upper fiscal

it And those Well, Both is to Marco, first objective to be of growth And exceed the on line with And digit all, year you you if of that. higher. three guidance, our our, strive we will. are top one call versus to saw almost and three both of in XXXX, internally exceeded line. fact, times always bottom those double we the both on half. during our we on strive a

have good not as of that skis. course, are to to pursue are exceed And execute. we're will no our team macro guidance. able we continue there over I have to to out think we that. And provided That's we strived proof So that always And change that. get we a our going things, environments

in see FX an we first approximately the the quarter estimated that be note set in headwind first we quarter. basis to We there You'll that going is of XXX kind points.

on that top our a reported and So line on has bit results line. the an impact on bottom the

to kind in there things All those process of So things overall factored yes, but thought are of our are Marco. all manageable. those

And terms made it's remarks, the at Then, in helpful. beginning. of very you

things maybe One being that is you. COVID. or down you by talked that's, a Whether was still can expand if shut of bit. negatively are wondering rates some about just I kind the areas on that have little impacted there's of what you

a kind but help what XX? and in know your the kind question if if describe Just weren't seeing impacts might mean fiscal you're us revenues of can you or regions difficult those to that of meant your revenues there, understand that I where this to is

Yes.

one example, I XXXX. Manufacturing is would in manufacturing. Marco fairly me let was So use weak

side, growth that So not sold able we of really many, that in the for different etcetera. number whether deliver of many manufacturing, the And because Then want, the supply year, Then think why, they units and much had. vehicle they sales, you. is that. have to the Manufacturing at the autos, they're chips manufacturing chain likely close, to that's what think can't to enormous not for that the the we aspects have contribute side half. the on half why pick able be issues second manufacturing not achieve don't did aren't the first but pace of about when and that will the a up not they or

during starts on our more to but see help what that chain begins in certain Eastern crisis year, of the means and that improved, the back we'll at will Europe the improve the current to the that As supply get half over forecast moment is manufacturing.

helps free chain. has that and up because if And So transformation spending. the manufacturing will spends of on an slowed and industry supply digital it category that category, a is that on technology normally

one example. So that's

the And now passed, occur, that other they utilize lose clients, best they energy they infrastructure, the of categories, be are spending then example, some spent with getting that or the a flip the bills you that's how it which influx of it. on to they are certain time, if look want second latest and want some hearing XX-month utility side, to to spending dollars. and to and money, if could of of the on an U.S. we you were of The has on course, period from to understand

enhance are projects can think so business. helping And about their them we that

side we see of on utility have result the of and that. And a oil so energy categories that the And of as top on course, increase equation, might we situation that. of whole the

were in are things Marco how industry could last a on So segments few let's others. of of year examples see that those as say we couple that a as not accelerate robust couple

I that that And was And seeing you year, missed impact by through answer, seeing? but of sure Got are about to wage at and that specific but asked are kind then last Excellent wage how of the the you XX? most what of know this, are people fiscal I a that the headcount heard inflation it. if it's end but color. know model I inflation? caller, I not the how I'm sort don't thinking

then retention, me of way of bit let stock we it inflation. has of most we quote, lower that compensation, it that Bert standpoint. only as clearly, have utilized the kind at wage just recruiting look will extremely important that and touch having average. not attrition wage work are a and those cash a a the here. combination, We worked than an as ownership mindset from in do of we ensure out And Look on number well, but though Well, our are kind plus get you there's areas headcount our think and for the all to substantially rates industry firm,

are in seeing than we have India wages increase We more elsewhere.

would Our But India that wage increase would the of off probably I be for around if remind fairly you is low that will. you base salary, a year. X%

Europe U.S. the different X% in certainly an than So or is that of X%

with We're we teams and all that. of in managing So well of it. our look that's of all how it at all of combination some

So I the don't yet. know found if number you've

the Yes, XX we up with about year the that ended colleagues about colleagues. year. was for And XXXX

Got it. it. guys you appreciate helpful. for Very your really I time. Thank

Thanks, Marco.

I'll conclude your Connors ladies call session And to turn today. and back for Mike this does closing question-and-answer over gentlemen, the remarks.

Well, confidence prouder the to and on journeys, today be our your quarter of to saying of all I our your delivering year you and let all for digital And our and support advice and been record, fourth call our thank best couldn't in continue ISG. me support by to letup results. for you their just the professionals passion delivering on to and clients, as worldwide in team. close has dedication our full clients thanks they for of continued for There no our

everyone, great So day. the stay safe and have rest of a

please Ladies sorry, I'm and ahead. gentlemen. go

parting didn't do you've call in it as touch you deferred subject. didn't around rate, comment as Just which on we I the near And, really XX in headwinds mean, made are and to on so seen, think to those that's the comment for think terms either effective your of as expect tax the higher rate just seeing just one, one is we well Mike XX. tax from in the working prepare that currency. consequence be we rate, our XX models, because that QX that just somewhere models, the And somewhere XX. of mid-XXs. some in taxes a you your that about But

gentlemen, your you your now conclude Ladies participation. disconnect. Thank And for this and may you conference does for today.