Information Services (III) 4 Nov 222022 Q3 Earnings call transcript

Good morning and welcome everyone to the Information Services Group Third Quarter Results Conference Call. This call is being recorded and a replay will be available on ISG's website within 24 hours.

Now I'd like to turn the call over to Mr. Barry Holt for his opening remarks and introductions. Mr. ahead. go please Holt,

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 third 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

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

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

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

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

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

SaaS that constant impacted remains change digital achieve analytics, them. we everyone. $XX third XX%. leading and a The look EBITDA million in of services deliver ahead industry $XX revenue. Thank digital. year-to-date, cloud, our XX% the quarter our strength Today, revenues in our quarter, With the mix achieved guide firm's of on performance, are They are demand and strong Recurring by underlying in XXX we for to Enterprises history largely XXXX. profitable including XX% GovernX in them. firm employees basis is shareholders and FX. and services, the million in a cyber our and change platforms EBITDA we points strong reached on our enter a quarter million, revenue review We to Demand in offerings of good share $XX driving recurring QX, in These an of cash remain in morning, the in with pandemic margin to customers, value return company. third resulted you, to track every particular in the behind digital $X.XX as third EBITDA, good committed growth advisor and outlook with ISG research. focused management requires million quarter, XG million and will QX trusted Barry, million nearly products adjusted in for currency businesses ongoing of for XXXX. the highest shareholders. reimagining That our reflected of ISG our our we and in a of delivered of margin $XX is year-to-date investment per more acquisition their their and bolt-on fourth momentum We to revenues AI, ongoing $XXX representing earnings to results. for to $XX of overall again are and firm

We sector $X Pacific operating QX despite of we the another environment. about expect Europe million delivered that Asia due the in public timing of client growth XX% engagements. growth of also macro of and to saw in Elsewhere quarter double-digit certain

business third and services, Americas also the strength a expected QX. robust grew the of excluding XX% in have this region is digital on quarter Our automation our to

quarter, case by million in plus reported in the last the QX. a deal large absence that impacted $X was was year-over-year of last was completed The As our U.S. the growth impact year. automation was

Our recurring for revenues were research up strong XX% solutions. and on our platform demand

a very with quarter $X with deals major performing well, platform in GovernX particular Our several is combined million. in the

for and and million their Year-to-date are environment, of in mentioned structure, full current record such lean reinvest in ISG and record signed uptick $XXX digital takeout with on stay seeing the a are efforts engagement than As initiatives. to our to in are to pressing more quarter, cost an client services, on revenue fourth And delivered a cost clients plus our recently targeting demand on more way. focused exclusively we There also some million. as ahead year We're revenues strong profits. we has their the track digital. a major expect enterprises $X profitability. We with deliver optimizing their savings deals redouble

digital in imperative to need. remains we a financial ISG recurring and XXX new from will and that digital more in business and well details are perspective, ideally growth Continuous professionals quarter, including focused XX share prior a higher clients bodes XX an positioned year quarter-over-quarter. invested performance on ISG a the serve revenue XXXX. additional client the and third our both to the From our QX, is Bert This bit for transformation quarter meet streams. on later. we for During year-to-date

and We continue operating realize to that help the help their leverage services technology will and design objectives. them our clients future their state

moving Due returns. ISG million million comprised $X our to our $X share nearly operating and able $X this were of Now for return nearly repurchases to successful in in quarter, we shareholder shareholders NEXT model, dividends. million to

debt We during also another the $X reduced ratio debt driving million gross our low. by to new our a quarter

management. health and digital of you allows buy company brings Founded on It of success additional capabilities the transformations. Change to to table as latest like Enterprise and existing in invest clients X new solutions award-winning Change require and in global over successful. Now X in change ensure right scale expanding our strengthens to large an our change grow we business initiatives capabilities estimate invest Growth technology. five to in This such in enterprises. employee In platform compound the will is powerhouse I that continuously companies annual our Change management, Change services the time management Growth to or our OCM. large-scale in complement be would short, business expertise X to organizational transformations a a market-leading Growth and ISG change the involving OCM people, specializing We the transformational progress for process change core and offers for XX% rate brief are at business. creating that is acquisition XXXX, track years, change their including demand to next of a the digital perfect

delivered Turning year. to $XX in our revenue regions, prior Americas versus the quarter, of the the million down X%

the strength growth excluding on automation XX% and Americas network, cybersecurity including of delivered the mentioned As offerings digital our analytics.

media, double-digits. our $ during among sciences, double-digit During third energy, holdings. our research the client in engagements and verticals. Medical, QX, advisory we up all quarter insurance software saw also industry included utilities were Key Capri and Owens GovernX, of the Idaho and health State growth Minor network services And

engagement million we as of training the This won optimize services represents training major client standardize emerging major and the During service for a programs quarter, our provider. a to assess offering. a technology financial another $X

management a million GovernX distributor medical engagement provide of won and supplies. also to $X.X a We major pharmaceuticals to vendor services

$XX revenues over up year. million XX% our constant QX Europe, in to Turning were last of currency

For and Re, our and and delivered Europe included consumer client Europe in quarter engagements our revenue the sector, industry and Diageo. growth network Key Danske third in in Bank Volkswagen Munich quarter, businesses. verticals the public double-digit software in GovernX services, manufacturing

a During for offerings IoT the quarter, networking and by this with company. we business telecom their major planning client ISG state. expanded helping is million providing $X our strategic their future optimize business and and define is

multiyear dock two Ministry Office Swiss sector public and with Telecommunications. with our IT of in worth the BWI, engagements Defense clients Germany's major are Federal $X arm which Federal also Systems over million. the These BIT, of and is region, combined We Technology of Information secured wins

issues to million $X of last revenues QX in government on our Pacific currency due down Asia timing constant year, from to turning Now were X% contracts. some

XX% revenues quarter and strong Key in has been included saw Bupa, Pacific Asia up last in growth to company, our Insurance growth in year-to-date insurance Australia Group. performer constant the and the Global year a clients media company currency we insurance shipping we verticals. In this quarter, the continue. double-digit expect and with Express

global the third with with We growing arm million our continue this insurance in relationship to of company a quarter our by the business leading expand client Australian $X alone.

optimization with this strategy insights services. organizational change We ESG and are client and implementation, supporting platform cost solutions, and GovernX executive our management

factors a demand state for inflation see our mindful Now continuous the digital we record and of defend year. Taking let could grow transformation me in services continue profits chain turn as for of and position. energy full that We impact the their macro to and costs, remain strong factors geopolitical our to to enterprises the shortages. economic talent We're also guidance. market continued account, clients, including disruptions, into higher target concerns, both revenue and demand supply

For $XX points the this and basis million million. impact adjusted XXX million And $XX are of EBITDA and a between revenues fourth built targeting $XX FX million. negative $XX we of includes and in quarter, approximately between

quarter third our be that impact, expected to reflecting note will our quarter environment. demand revenues than stronger are despite fourth revenues FX a the higher You

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

Mike, Well, good and everyone. thank you morning

Currency the $X.X revenues have market, ISG last negatively adding basis momentum X% reported prior on million the in $XX.X X% third versus a revenues to of currency. Revenues the year. our down $XX.X in third million were mentioned, Mike reported year. currency. quarter reported basis with for the up year-to-date million and XX% X% down a the engagement. on Europe, In by automation constant year reported Pacific, Asia completion large and down prior impacted were revenues reported by the constant in on impacted were solid strong and constant And X% quarter in the million basis As revenues with million XX% $X a quarter In a Americas, currency $XX.X up results. a continues compared down financial versus third to X% were

Third currency year's with in quarter quarter. up up in was from of EBITDA million year, X% the XX.X% of last XXX adjusted third points and In $XX.X constant prior adjusted resulting margin EBITDA an was QX, EBITDA year-to-date. up XX% XX% compared basis

basis operating XXX Our margin our delivery basis costs model, ISG and point our improvement which the a improvement contributed quarter XXX in NEXT point year-to-date. to lowers in gross

$X.X or income compared Net prior year. Third quarter $X.XX X% quarter of share to year. million fully income prior $X.X million the operating with in million, net XX% diluted $X.X income $X.X diluted versus $X.XX million share was for per increased of fully the per or in the

of anticipation XX% on utilization from Mike million Consulting future nearly Headcount third earlier, the XX, as professionals And adjusted XX was of versus share quarter. $X.XX added quarter basis or September XX% X.X% for per diluted XXX up year the in million, income we quarter. resources adjusted impacted net hiring. $X.X basis year's share our mentioned diluted additional in the $X.XX points or the as of prior per was quarter a Third income prior third growth. by X,XXX versus of was $X.X net fully XXXX, second or down

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

ended we $XX.X net impacted by cash prepaid provided receivable, quarter For by million neutral, accounts lower higher was taxes and payable, the expenses, the higher and with cash. of operations quarter,

returned shareholders, During buybacks to approximately dividends million $X.X million quarter, $X.X of share $X ISG of and the third million. including

shareholders next dividend of Our to quarterly be December of record December X. will payable as XX, on

EBITDA - low. and also $X record our of a lowering of debt, to acquisition X.X down In addition, to times $XX.X million ratio pay our we balance to related million debt final paid our million Neuralify and $X.X to we and debt payout XXXX a

we now go year, shares share Mike. average quarter concluding before ended some quarter X.X% to up will rate you Our for borrowing remarks to was the X.X%, from with and last Mike we Back outstanding. XX.X the the million Q&A.

quarter nine delivered Thank third to you, ever. Bert. Well best to summarize our solid months first leading ISG a

to were automation. the putting Our operating commitment and in the navigated FX on in challenges double-digits us double-digits, up year. QX recurring headwinds pace deliver for our double-digit of We've Europe the market revenues and to million excluding the full growth $XXX reach Americas other

quarter, ending our and us and our record as market. on revenue year approach in it to Growth, margin expect operating We results profits. we our even resulted disciplined our in and fourth to Our acquisition a highest we better firm's X growing strengthens are deliver the capitalize the returned transformation about of $X term, to with quarter. Change will momentum Longer management continuing better and capabilities in excited our shareholders EBITDA change history, allow the ever in the million see

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

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

[Operator today comes Capital. first Our you. Noble Thank from Instructions] Gomes question Joe from

line now Your is open.

the morning, thanks for questions. Good taking

Good morning. you? How are Joe.

Good.

could in think the more on least us Growth detail financials, or color here for paid, can at you a the the So what terms contribution you was Change acquisition, in what of give short-term? little X be

question. Yes, so good

up do of of we in a of of the And the in all, because happening things digital context, of that we where that put that into you if technology market why And is can put business lots just transformations. it? are them hot first asked We happening are are is around So companies. the how change wrapper will, and the one we help it is. to of all is continually changes did these middle

The So next is like years. A) even be the to for what Change wanted They will Change think will Enterprise area. XX% currently over consumer growth, focused a ISG automotive, have, are number strong more. we about we ISG. combined expand areas in add Enterprise It retail, people plus which will XX CAGR business to with the of XX about new XX, and clients services, have we in

of and in that a of you these targets payment scale going provided to That's that will Growth lot are as is on of enterprises. an it additional the So gives as and an opportunity X team million set at what Change a for large upon $X happening the idea closing have XXXX much to Joe. earn we're performance on bid, XXXX. We deliver

add me let couple a So just of points.

X% give You we in know X% next perspective your XXXX. accretive be our sizes of But one, our on to expect overall, to of going year. just year it to revenues into sort do

Okay, insight. thanks that for

from shareholders you pretty you capital at this cash know, to here started $XX last of you've So million down returning you comfortable year you with level seeing acquisition. about, are call Especially the that's today? how been about know, that I at the of quarter steady, let's cash. mean, cash year? before was ended $XX million I'm assuming, it ended when this or you

that, our nine to over we've number active, put work Yes, point, last months, to know, very shareholders I'd of a you return has and ways. as as on dividends, both the to in well your buyback. share cash a Certainly been say

we where to tax we in so, we be affiliates. of time. quarter, We some years of had a able do in two European second actually payment, And to mention particularly over the taxes, that did aim our continuously paid

the deferrals second in governments, particularly some the granted that we're quarter. in by the where highly Germany, With were of European profitable

there. accounts quarter, we receivable was a comfortable bit of strong perspective, but stretching the of the balance to prepaids to the organically with than more in collections, we be bit And receivables to a before to to on dressing, continue the And have then that also side. licenses rate here we our about of generate window twice we that would to a we've some continue that concerns continue sense some And in - to because will but in third seek where so seeing it certainly the bit window we are higher a put be forward. as anticipate we the then, around in more add our X tax by just no cash about no see seen going today, well, higher really of can we concerns we've so, And payment light, the end. such quarter little as collections week to up receivables on got the make some our feel Change aren't dressing And for opportunities of while in at bolt-on to-date, is where And us able we makes we closing, acquisitions clients respect. business a one-time expect. it so typically Growth those it

wanted to for the Okay, business, - to automation XX% just huge of here years they there couple rates. was be business, a on going was that a good. RPA the of talk big forecast And ago, to here drivers excitement lot growth switch XX% talking a gears second were to

go want its kind that is of today Just of of get growing that years? where to it you growth thoughts over kind today your on business couple next where the rate and see business

others. major good that other entertainment don't marketplace. of few two the it in our there's providers I again, ago, Automation the would NICE, software deal, three help that All each are UiPath, do Anywhere, question. would major think we large did as space, Blue it's want automation, say highly competitive or this up the kind large I with four we than now, Prism, a to years beating feel so about I more was to how But company of clients. distort of look, with Okay deal one kind this we

we But be competitive to there. think, added believe automation it. on very we a for I area is it's pressures - bullish - still a that And viable very viable some So us. is continue

think business certain move is still like public hot, we sector into is just automation that, digital a areas the XXXX, the strategy. forward of I call And increasing. are believe key overall centers as we red part the that

So kind or entity, the XX is the mature. we the a stay, months of for to and how in it's but see will to say say about here, automation is here how would terms to here an we it unfold I in and continue firm. feel of market so, need I value next would is

Thanks for other know, insight. kind may, one industry I so on pre return me, just update how to get And from that out. last the the have - other in little come in-person level. COVID just not to the See one of really some you the a if is in-person going events back of events

idea to your trying any see you just So today? you response guy's it get and that how know, going to

we are successful all, I in good very an down So back event manufacturing. first held Munich in sourcing the on events. Texas. to of was over sourcing in-person Dallas, had quarter, We question, we of where smart a client had held In event

an terms pretty those and that decisions And it back pace. of that that, will hold in back. back. as we'll be is back coming good of it in But not definitely we its is back in have in emerge I macro on eye it it. make It's only say and of year terms year So are pre-pandemic. going I a this the might quite a events XXXX. kinds are will clients total into travel environment keep events very thing think volume good at we The emerging would ISG I think But XXXX to things.

in for Great, get thanks queue. that. back I'll

Joe. Thanks,

question Marc next comes Riddick from today from Our Sidoti.

open. now Your line is

good morning. Hi,

Good morning, Marc.

morning, Good Marc.

of of in of the certainly quarter, quite as you third thoughts of and that? availability, fourth up I into quarter, of end activity quarter? into could the wondering maybe - a stuff you're were plays some those as a some you that all, in concerns, that the was the bump So of to things ahead about like see obviously pleasant some despite the that's headcounts something if give hires, as see. to us little the maybe and if of pursuing that first maybe just growth some inflation continued And thoughts you a talk well lot macroeconomic how that - talent on had bit sort through maybe the and

good Marc Okay, question.

over over others were a in some there's, XX was quarter So it you thing, rate the look of the an XX% to there's better, had And attrition model XXXX, you we've quarter, to of think, very state this of terms and know, do decision I in and opportunity our decision made to at while talent talent this, we say Think even were year the second first had about the we our at and us grew also India. a pipeline. outside COVID we I that before turnover as still the, steady of would the and look the And ability part. if standards. And of we get at out always a kind range, it net, the of in with industry so. both but you low talent, five ends, two added, as rates talent discussed know, pausing grab remain ends our to a allowed we very kind of in part. is incremental go kind to business last recruiting has is And attract made market, kind the turnover of we've in then years, good there's have

leaky so, way. have a And don't we boat that

we do, a that of cash serve, combination an and the think, of incentives have using stock team. a we a to environment think of - kind our we that for the and great I have and the we attract people clients combination way keep we work great them as - So

ahead, that all cyber we and try what we match technology. little a don't And to was and market us for But we ones going you think we ahead. we are, is that was we decided occurring we we jump advantage go with expense know We think as take attract far revenue to the change because the ahead with the of a here, are modernizing take a that what I to market see clients then Marc, nice into that to with will to advantage you - level with talent hires quarter, unusual. jump so continuing so go thought we kind don't cloud tend So forth, which Christmas ahead and too of our productivity, and that's were fourth get QX. Thanksgiving the same because and talent. to up close holidays, as possibly as can. want move into of much good don't and we of

So you'll that QX see I of that don't Marc? in if think helps much

any of? The model that it to of land, - maybe was now does mean and/or relative making any the even as not I earlier sense I more maybe things seen or recently reasons help might the entering others sort a It of wondering from the this that I way picture? that that of of the does. I that benefit is have, some there's from talent And do was did, just it because you the you're the shakeout in sort or have if - desirable years one the question I few competitors that asked ISG ISG of that maybe like, NEXT ago. you the guess place far to with to year, as that getting the you've maybe why - more seen

the Why? some Number XX% done. balance And would one both. travel didn't like we like the I can observations I attractive, want model we does which a travel time NEXT attractive the more I really time areas ISG all today. have pausing it to less, lot is or of work, take past. is today. it if second yes, XX% make first companies. Marc, attractive advantage of more to we of the more I on our Yes, there in that of say Because have wanted to XX% of think all, going good And And in other other felt of was

So I it's Marc. would combination of both say a factors

where you the if and little maybe where aggressive, dynamic might to where move some in practice a or where how little maybe bit maybe things you not about about areas be just some be can with at Okay, a least and some great. talk areas And pricing pricing to. the then, to seeing might the maybe you're wanted over could that of where, you you there in some general, feeling able environment, areas be - more some,

- on maybe pricing seeing share that just Just you're the dynamic thoughts your there? out

Yes, the the the I higher pricing demand. on think - I would is call

say enterprise, have we I topic say Because services broader revenue is more hand going to particular watchful good a and million power. recurring out of an I'll So is rapid would our if cost for digital like They're the to of a be you general a little pricing takeout. out the $XXX lot more what make on that pricing would more happen. sensitive. it And call at areas, just can imagine enterprise. it as that I'm cost looking to take to cost of

streams a I services is two of is and tale very us, demand more think for groups. competitive. revenue So I think it's kind kind recurring One, other digital higher solid the the of of

probably sort would Okay, great. is I guess but one more be. the we tax for of was then thought than And Bert, I lower this rate curious to was as it

was more of that? did a you. if tax in could Thank You little light on commentary sort wondering remarks of bit a you your some mention shine

The though factor in was the of in at bit that mix, we well revenues profitability two higher of quite it a recurring than the growth We lower outside of saw with the that was business where we a had saw as more some do anticipated. in U.S. XX%. market. we you faster lower European - the do U.S., of factors. in more we And tax Yes, our predominant jurisdictions, primarily even

demand couple predominant a that We as discrete Europe. in factor much predominant quite still in quarter, fourth the had strong mix see of the we So of was would say items, a that were bit as but the I anticipating, don't We of mix. is factor.

or toward quarter surprised rate So, we rate, the the we're QX. point third had XX%, tax with in above percent that or pleasantly sort XX looking at the versus were the we of perhaps that. and But we tax a in that had backup, a so two mix

to last last maybe Thank Great. from by to But asked for you. about a geographic industry little a one I talk of vertical? expand know that the can acquisition, I'm questions. I and change bit wanted one the back to And opportunity their maybe or for go footprint growth me, I me, sorry, either you the lot geographically

yes it's good good, question. So

So in They bit enterprise, in actually have they we as are U.K. the large primarily working the speak. a joint we on a U.S. over possibility U.K., are

this things. digital what out platform to not frankly, Number to we is they call think brings platform - for a I a And in have a buy actually one, that us did digital of been they had we looking have Change. Enterprise this brings ATLAS. the couple market

of beginning our it's kind comes the in So called measure this we take put and all that and allows of program, digitized. management clients, business And all one to kind assets that in XXXX. ATLAS, to that change are those of documented, change progress, you is health with of that of engaged clients into process the are the going this the platform which

that is area immediately will So one that. that that's take benefit on we scale a and of how

do noise, through make going about are of with in particular, of it relates major management areas we through efficient. to in areas. spending, recession, transformation. of those is retail, going those credentials. Both very in they're the as companies Think lighter area second consumer were those kinds in areas of they all change of services to what strong can both The more And our and those are kind consumer it

As disruption, TracePoint together that disruption did we Randy a thinking means to in population. since the of scaling. of them. Geoghagan, help will was That leader Beth people marketplace. going I are times around they be that two it. formalized at the pain a Thomas, that technology we and means the full And a recessionary fantastic pain more thing, in that group, that has asset in Change process force employee usually coupled about they with real other is enter how usually that's change and way we're acquired along And who looked out then a Those this causes one we've is size to some And in management. among add need in in manage of the this team tripled executive XXXX, to Enterprise Founder with how

we're very that around team the leadership the with well. and leadership So as pleased

Very you helpful. very much. Thank

Thanks, Marc.

from next Please Vincent Barrington is go Colicchio ahead. Our Research. question from

nice Yes, quarter. good Mike morning,

Good morning, Vinc.

morning, Vinc. Good

sequentially? the the economic did Curious, pipeline, your pipeline overall the sales of overall slowing grow sales given backdrop,

a the and at the mix growth different Vinc. moment Yes is

to of all recurring the strengthen. services digital revenues continue, continues So our pipeline

it takeout. be The call enterprises in other I'll that's that area topic spending. whole call rapid we of lot struggling bit may struggling A it of is is little hot a our consumer cost level amongst certain terms or optimization. in newer cost volume also a That anticipating

And the in category so at also is past then a that Vinc. then been that more would pace have building pipeline rapid -

your this see? recession all, into your to and feel we of XX is of year, first ourselves of If do? likely wish seem your, labor you good of you're demand, we next part for the part in as to And did like big is trying as quarter this picture, deal? do So position type mix a a why meaningful hired to people all, be that you

we that, we have think say good would a mix. I Yes,

have so. the that digital the after also why over the targeted, will we we areas That's primarily services in think areas. what surgically the year next we growth think went be or hires We

about in the think for some then time, as invested. on all Enterprise match followed I know modernizing us we cloud, having know, where people with You because have experience, this, events, the will transformations, earlier conservative we're mentioned pretty cyber And bringing and to and of you and customer Change, it revenue. that's technology, trying

So But out because did a character. it little talent we little have the - went we that available out others we a paused. of of see

model Our more attractive is ISG NEXT talent. even to

Vinc. that And this Change of on all so we jumped plus acquisition, Enterprise

tough stops being comp for deals that Americas. provide year? deal automation a similar the a the may when of comp other have And us Remind a next you size

the in It answer's bit We the QX. than million little factored million then QX. $X million And to $X it $X goes more was in Yes, in we million the million was or no $X point. that a had, all last It $X on to automation, QX. in.

in quarter then So that of guidance. $X it's fourth It's factor terms into - over. but particular and the the the in runoff over we that that's deal, is million

last any And question me signs the your on other cycles, from then economy any of or geographies? any changes know, in sales of, you in impacts

an past know keeping engagement. abrupt to we're clients will an change We do from No, that history, eye on sometimes an it.

or not want and a You quarter themselves don't it slow We're that. seeing to by dramatically something.

we'll I think we're And XXXX, there it an an see is But it it where we few as at yet. first it. see we moment. Europe. a growth keep might that that of the we But the of if you not have there, it, keeping be And we'll kind anticipate can on in seeing we're those. rates in but eye would sits with eye place the on see that's it,

Thanks, Mike.

Thank you, Vinc.

ahead. David Our final question today from Securities. comes go Storms Stonegate from Please

my Good and morning, for taking thanks call. gentlemen,

Good morning, David.

want on Good able morning, is a Just Pacific little market you. be kind color of Asia the you thank Would and of what story Pacific there? to Asia to the market. touch you'll on give - kind more the

nine Pacific Asia market, very market good it's us. up the Yes, for mean, XX%. first first I for months, the

quarter. quarter government did we simply of earlier it the The starting in pausing anticipated was some third to subsequent our some Canberra in that work than

one. we in particular just in the Office anticipated happening quarter. quarter have here just that but for Taxation the - QX the fourth government on this we took multimillion the with are large dollar actually deal probably will kick a We that full the longer signed in Australian with half Not quarter,

So a in no region. Asia it's issues great Pacific

growth it over last to few years. as it continue We expect has the its pattern

then kind and to starting know, some of that go realized and thank for see expenses direct J and up, some headcount to switching What's the starting back with the you you new that, Perfect, speed gears and the kind them bringing curve of to be up of bringing see revenue with that thing? you're advisors, employees all on. costs of those costs

- our No, utilization, to points speed. it's this of The in around good productivity question. the we're quarter get at impacted basis probably in up on a it to them terms probably XXX is

should figure, QX, start seeing got and David. some be QX So on you've you comeback that a out, of certainly that kind would in about so in that, we quarter of timeline the

the growth know small And But you. that income more XX% you're you statement? just to annual from you fairly expecting. with your you see that of a continuous it's thank your also had I now. how revenues of mentioned Perfect, then XX% Change Growth me part rate kind that mentioned translating the X one for do CAGR

of I'd it say in first business, kind it's margin at firm all, strength Well, - has higher or categorize of digital work us lot and because digital its our of terms it's margin capabilities. a inside EBITDA some we of work pricing a and for

do. view that So going That's this it's it's generate, EBITDA overall firm our business generate to of particular can business overall at margins. what than higher is going the to or this

very That's much. you perfect. Thank

David. you, thank Okay,

David. Thanks,

to this time. questions closing I There are you Connors at no Mike refer remarks. for further back now will

to professionals and of our continued working just me to all for our their achieve our a let nine-month I team saying to want close by first together clients dedication as look, performance. global well worldwide for Okay, record, thank

a I passion macro you prouder and the to have clients journeys to of could confidence also for for best great thanks they and call environment continue the the delivering of navigate support and of them. And and continued rest in the advice on support Have day. people digital a our firm. your our to as be not Our all their

Results today's Third Quarter Conference concludes That ISG Call.

disconnect now line. may your You