Booz Allen Hamilton Holding (BAH) 26 Jan 242024 Q3 Earnings call transcript

Good morning, and thank you for standing by, and welcome to Booz Allen Hamilton's earnings call covering third quarter fiscal year 2024 Results. [Operator Instructions] I would now like to turn the call over to Mr. Nathan Rutledge.

Thank you. Good morning, and thank you for joining us for Booz Allen's Third Quarter Fiscal Year 2024 Earnings Call.

an this read morning. had we press you've earlier issued hope opportunity the to release We

We our now website also and have provided are on presentation Slide slides on X.

results talk Executive Chief and Officer. Matt President business today President Vice Officer; about Executive Chief me Rozanski, our to and With financial and are Calderone, Horacio and our Financial

performance to will keep factors and future and some call. of forecasted filings that shown the actual differ on mind known forward-looking financial future disclaimer As or are and involve items SEC events and unknown this from that results uncertainties risks, on discuss materially results other we our in on our discussed in may morning may cause Slide relate X, and please to this the

entirety are foregoing the date statements expressly the and only their in qualified as by speak forward-looking made. of statements cautionary All

a revise future update forward-looking as statements, no obligation Except to as of we undertake by publicly any required or otherwise. result or new law, whether events information,

call, measures GAAP today's third earnings adjustments other some useful fiscal non-GAAP provide believe We also we most the and for for release discuss our and investors. we which reconciliations non-GAAP other an information slides. explanation metrics, and included measures financial of XXXX in to comparable measures will quarter During year

Horacio and is It over call now my pleasure Rozanski. President, the our CEO to to turn

now X. We Slide on are

us. you, everyone. Thank joining you morning, Nathan, and good for Thank

excited to record-breaking are excellent very Allen's fiscal you and Matt Booz results continues. I share financial with year today.

went public quarters extended our X firm growth half of since first now our XXXX. Our into has best in strongest

have our team. momentum and our VoLT we proud we aimed so am Thanks strategic to under of operational their strategy. for the I achieved efforts,

has been consistent. Our financial performance remarkably

for to on multiyear guidance This deliver remain to fiscal of revenue thesis, ahead double-digit year. pace We exceed investment and our our expect the industry-leading quarter, organic again, growth. continued we

election, upcoming debates, across ongoing continuing increase the conflicts to accelerate momentum remains: Given and geopolitical market and our the uncertainty institution. clear from in resiliency budget focus the our

full for the the the through you outlook details take rest and of will our quarter of Matt fiscal year. the

focus For my in strategy. the remainder putting VoLT the I our success of context on our remarks, continued of will

with World Apollo missions, needs to historical earliest to advent From me we growth. change continual Booz waves transformation anticipated have Allen next each and the long-term to Allen's early War Since Let the an government, relevance market digital moment. of little XXXX the year. the context. a XXXth in meet transformed II Booz of and is days, as begin imperative for our the of embraced

Our always has their been clients' ahead goal drive own step a them requirements our transformations. to and help of stay

because national firm to our critical exceptional innovate, talent. our has outperformed All and X these primary and differentiators: for most of most invest the Our anticipate capacity to hold and missions, adapt, market true ability today. on position our important, our decades factors important,

The and current is stands transformation called leadership which century-long for velocity, journey of technology. VoLT, iteration our

get faster our We turn, past for client drive elevate VoLT strategic in to exceptional and value. The of the have months. been accelerates aims program are our and implementing shareholder which, impact, XX this growth

a Our strategic progress. demonstrate our important third about things few quarter results

even as and environment and have the we First, momentum built driven into uncertain. dynamic resilience business remains the external

missions transform position emerging our leadership have we in market technologies. of with national strengthened importance the Second, as we

we and have how we third, workforce. gained grow in operate efficiency And our speed and

is In sum, our VoLT strategy working.

people at let's this the look are we who amazing transforming examples, and at missions X As do work. key

our to urgency geographic The deterrence the of surface, clients. Earth's encompasses China. National both mission, complexity nearly mission. China as outlines this describes Defense priorities sheer of U.S. half strengthen for The and creates DoD's First, Strategy which challenge the it scale pacing the and top unique

in Through our help speed and clients scale. right years urgency translate talent of we into the more at than are investment to ever partnerships, technologies, prepared

XXX than Indo-Pacific across more the have we employees region of in Today, working this various mission. aspects

forward clients faster, to access direct have our This with deployed innovation technologies. emerging provides ecosystem. more We also our

focus supporting cyber allies mission AI is and readiness, and client accelerated partners Our bringing on priorities. key and to

edge work States and logistics to zero secure there trust impact. leverage private investments to win island. United do, This our much Guam. the XG contract we a is for in small network While but our XG, and expertise build of on support is will relevant are communications, work example a strategic public Navy having already early computing A operations the recent in and to

solutions complexity of technology partners network our the our across scale sectors. limited that tailor and note our Ukraine are other pacing focus an And given the in conflicts, all to also presence growing approach. on how all-of-nation I'll of the to our the of Finally, considering are lessons we from not firm's our we mission, Leveraging China engaging our challenge is and Indo-Pacific. mount to

long-term are we is short, priority will defend U.S. Allen. committed Because this deeply our be In Booz long-term for it helping nation, priority a to interests. a our for clients

Pivoting to next our health business.

a For many Allen heart has Booz at been federal the health care of decade, more transformations. than

reform and strength care For drugs these are the market. work health benefits to missions, of implement portfolio other brought threshold. has worked annual revenue the have many the our and Through across modernize example, delivery accelerate how $X for billion we our safely crossed to and health veterans, life-saving

public that are our country poised future building transform to of help success, the Today, we health. on

tremendous improve Our the ecosystem. recent Data health across is interoperability to DMAC Accelerated public contract the win at for Centers Modernization of data the a Control, or Disease opportunity

and investments of work. VA at this early positioned us to cloud, well the win machine AI in cyber and years our learning, innovating generative Our

scale, prepare helping Now public Booz playing our to Allen is and the respond country role can power critical health unlock better emergencies. in so integral an at the for of data CDC

redefining are zero trust missions of More small intelligence described we center that a we for do a most. in just implementing the preparing matter I've the broadly, the work collection, way and post-quantum world. the sample of at leading

We that made U.S. end, a To to data and harnessing called as on capabilities collection recently mission imagery a their space accelerating in new clients. outcomes. also our are venture superiority, sources company investment we Albedo data leverage to focused decision-making by for leading-edge speed

coupled of The with outstanding build execution, VoLT these all strategic drives our relentless importance of missions, our implementation our resilience And our in momentum. business.

more where people core, at exactly are empower to of live we we anything, world we our are than our purpose-driven to a Today, we change be as want to because the company purpose professionals.

them opportunities challenges to we have world-changing people Allen. the inside catalyze missions. doing a Simply People solve provide for join put, People Booz potential invest stay and essential because unique tough in Booz work. at passion they Booz Allen Allen our of because

success our leaders our to growth the our connects acquisition recruiting head So past with business my and VoLT talent over our focused X quarters. and This efforts final intentional count of point record to result of is on processes. the transform

We and to allows any talent, grow onboarding hiring, in accelerating are market. This to improvements, are the growth, invest our These time our outpace the and create speed. they about moving our count increased process than to talent at missions the combined continue crucial history. which passionate faster to in investment is at us to conditions head overall our our with

evidenced our to that conditions and today. results Even the We gratifying VoLT action incredibly in macroeconomic months. we the how head have other market, recent recognize gains woven business in is is It opportunity market hiring and strategy. in to see shared capture our of strong with the the in new are fully improved empowerment outperformance, our alignment purposeful take and count of a leaders outcome our into

Matt, that, I'll over to you. with the And call turn

you, proud performance today. will are and of for the financial I all Thank we reporting our start today. joining incredibly to I saying of by that am Horacio, thanks you call

Our third further are to and quarter build Allen our is momentum. proof that VoLT Booz continues results strategy working,

hiring technologies, work We and source are business. critical strengths of scale. resilience people, and building partnerships at in investing winning the our the right in are These confidence cutting-edge

quarters the have noted, year now a recorded since our fiscal strongest we first X of Horacio As IPO.

we against and side are and pleased XXXX operating on again business. in X-year fiscal today. on we how of thesis on has to performance our the side, supply we year been this remarkably the especially the guidance ahead Our our consistent: are raise pace are investment demand performance, Based

demand dive to Total let's year-over-year to turn revenue approximately X. the billion. $X.X year-over-year approximately elite up performance and $X.X revenue and talent. billion. to solutions services by into to year-over-year fueled XX% XX.X% our the and increased Slide details. our Organic This for position billable XX.X% Please attract grew top expenses line and for ability Now strategic robust excluding our the was market, retain quarter revenue exceptional in was

sector. by Taking it now sector

of quarter was business Defense roughly strong Revenue continues Our is year, to broad-based. third and last performance and up compared excel. XX% the fiscal to this the

war accelerating on on critical to Our focused tools team solutions and data across decision-making providing to access fighters and the remains globe. missions next-generation

Our Civil Booz health year-over-year and infrastructure better clients is double-digit mission the the for roughly and is growing business our sciences, life up Civil portfolio. with to climate. also Allen achieve fast, of across Government growth faster power data and XX% unleashing to outcomes from

growth the of slowed As Revenue third anticipated, declined our in Intelligence business the X% in year-over-year. pace quarter.

future. on across exciting talent: business success are work vector the can now mission people winning critical for in and areas Our who strong Intel a This new the missions retaining cyber had is have leaders key support firm.

global business, disclosed represented and the cyber This last which commercial was year fiscal the in down year-over-year. reflects market. commercial quarter, our Finally, XX% divestitures softness in revenue about of X% consulting overall

market our the doing about with urgent and an strategy. Allen X. Slide laser-focused Despite environment, our on remain shaping on VoLT bookings near- government long-term and the award work strong, to on winning mission are environment uncertainty outstanding leaders clients our people budget needs. the Booz and is meeting Moving job The country's of consistent and

nearly $X.X net billion. totaled quarter, This bookings

was quarter third since book-to-bill year quarter third best fiscal book-to-bill XXXX. Our X.XXx, our

above X.XXx, was X-year book-to-bill XX-month trailing our average. trailing well Our

stands Total to were billion, billion $XX.X backlog billion. options at of XX to declined December billion, backlog backlog grew year-over-year. up and Funded X.X% to $X.X XX.X% $XX.X as priced unfunded $X.X up XX.X% XX.X%

is In demand strong. sum,

solid a industry's leader. have foundation remain growth the organic We to

client investments to empowered Turning in up people their employees, deploy turn, XX,XXX on now head calendar culture, X.X%. continuous our up Booz Allen, furthers including We people-centric commitment nearly is succeed. to people. to count they efficiently Booz and and future ensure ambassadors makes are is count XXXX them count. year-over-year, closed contracts head staff with in talent. year X.X% and This our to head out Total Allen

for exceeding start staff our X% for we year, client had This year. combined to healthy target X%, expectations well our well X% client the year. with has increased set the Since growth, as more us than fiscal bookings, of level staff next the the as fiscal the of positions

in EBITDA of is adjusted third in year. million $XXX the than earned quarter. higher We third line. This the last quarter bottom the to fiscal now Moving XX.X%

EBITDA Our points adjusted same XX margin for of a higher roughly than was year basis XX.X% ago. period the

annual recall, We as out in we flatter manage in business you basis. quarterly last the quarter recent pattern somewhat years. As may anticipated on quarter. This a we that third played an profile than expected the we margin indicated

complex the requires of us to at top deliver business and center Allen to scale our sits quality as get work, coupled the Booz client's The technical to ramp work we financial out the of invest superior ability results. investment, our us ahead of mission market. at This consistently pursues the the allows of that even our with of up stack.

taxes net year-over-year The the XXX. increase reserve income fiscal Third to reversal in quarter offset by the quarter an million. million tax net the uncertain partially $XXX was increase is our position recorded third in in primarily associated $XXX of provision of legal year. a last of income This of XXX.X% Section with income result an of for was related

in Adjusted net and excludes the the $XXX provision taxes. income XX.X% of million. reserve increase for to legal our year-over-year income This impact increased the

diluted Due earnings per same diluted $X.XX. XX.X% year-over-year to $X.XX. per to And the grew factors, year-over-year to XXX.X% earnings share adjusted share increased

the quarter cash operating the ended the Free of $XX activities third with from of Moving $XXX million hand. We cash of million, million now on million $XXX result cash balance flow the plus $XXX of was CapEx. sheet. for quarter to

in the strong were receive for to quarter. the and Collections included payments quarter some fourth we expected

capabilities. Cash consistent in our outsized and and investments growth people with outflows sizable our remained

third ratio end XX X.Xx Our leverage net was the approximately net billion. debt the the And adjusted of at for our was EBITDA trailing approximately $X.X months. quarter

cash We dividends. and million per X. Slide share of in of quarterly quarter. on in deployment capital million to to $XXX average Turning included close third This million $XX shareholders in repurchases to the $XXX.XX at approximately returned share an capital price $XX

to Today, dividend. of per our $X.XX dividend a of our February will March X I record Board am pleased payable to This announce cash on has of share be to $X.XX that XX. approved quarterly as increase stockholders

ahead. last X-week year Now momentum government had On for the X- to we call, built look our we strong incorporate to a a and shutdown. a full updated both our possibility guidance of

of Our revised third strength the and our business. guidance momentum reflects continued the the of quarter

still is current that significantly a shutdown material likely now believe about in government fiscal in funding, to shutdown-related there is we our year. we contingency While less including Thus, are longer no a uncertainty government our guidance. occur multi-week

take updated XX%, top year the now XX% to line, we of X. At fiscal organic. Please revenue XXXX to XX% Let through will turn our now to of me you XX% growth be expect which guidance. Slide

billion, to to of around adjusted to adjusted EBITDA XX%. raising This which $X.XXX growth are margin We XX% equates implies year-over-year. and between an $X.XXX XX% billion approximately EBITDA our guidance

also guidance driven rate, are of XX% in and $X.XX ADEPS XX%. our we $X.XX be now increasing a which to our This a to range EBITDA the expect in by share. to per increase We ADEPS tax between modest to decrease is

includes cash We related in between be operating Section range estimated for cash to provided activities taxes a guidance to year $XXX million fiscal million. $XXX increase our are XXXX raising million and our roughly net XXX. $XX by This

$XXX we And in $XX flow million, million we cash CapEx finally, expect million. expect of range be roughly free of $XXX still and to the to now

performing exceptionally In well. business is closing, our

X of Allen's strategy. a testament IPO the quality our leadership Booz even quarters in of real uncertainties. remarkably macroeconomic best just and our since the power with geopolitical delivered performance the have consistent This We VoLT midst is and of the to

is growth palpable. at Booz firm on is quality Allen Our a path. sustainable The energy

the impact opportunities we Our they lie performance about that have the many the strong do, people and they the ahead. excited are work have, delivered

With let's that, line open operator, the questions. for

line from [Operator the of Sheila Jefferies. Instructions] Kahyaoglu with It comes

amazing. Really quarter. Phenomenal

Just wanted give quarters with us what you to much to the starting trajectory maybe little in X is more related about for Civil. questions, think about next and then And detail of what's of the public that? And of Can how that my Booz that driving the is doing Double-digit TXNG growth in terms health a phase growth now. bit program? program?

whole Civil. But let and start framing be I great headline go the by into Sheila, performance I'll take to by why one, don't maybe that happy me way. the and then down

positively you most talent And our billables, been acquisition which And fiscal At back the track we're I've by level, as ever have as and retention the anything, since we've and revenue seen. been firm-wide is the going good surprised our the And X that fuels best has in consistent. part. as further been really, this quarters if strength and of know, remarkably the on is program, performance I go for XXXX. year than the which public ex frankly, this best important

an talent, as resources circle deliver growth allowing which our invest us shareholders, work which clients, deliver this and us so the technologies for exceptional excellent of in results to like, feel which virtuous organic for on of in capture our does to so forth. next and great It great wave leader, we're allow

of So ahead an creating funding is even reality as and of the working. in and to are and in uncertain short, resilience momentum strategy, we political is see which And our VoLT, the budget season business commitment we us.

and at come firm-wise let well, talk so back. the about And really, me -- Civil I'll

are health business In cyber specific said, a really, of really has it years as and we around now, business we digital we're in in leader was public agencies amazing in star broad-based that driven you our a leader some transformation, in in early portfolio. a been portfolio multiple at years. look Civil the that Our the is for, and and entire as AI across But there. the run,

part true all the to certainly produce growth I same national ask, really So and in our working crossed all Defense And business, really has or security it's health mark enforcement, momentum as building elements this humming you from see real services didn't and opportunity the the you is law see. together the business while but -- also in said, larger billion it's citizen to and that our together results business. we $X now of

bring I So together, is little to and all years today Booz maybe a ever guess bit is young business it's This been. it close out XXX as vibrant Allen. as

I like title. knew the you'd

but of lot differently. for top contracting another ahead are one there's In the terms pushing line, the a been related margins to of essentially government discussions just long-term of somewhat your target about your and you,

just is service So do a paying think government Booz the you the offering? for premium given

I we've to we the at years. We the do think capabilities Yes done investment I terms are in talent need that bring, we of top operate this make. the that of and no. mean, market -- that and required, we need the the to for

will, And that average, sure. over in higher to time, some is there -- procurement, that not statement. every economics. so on true is that not But for It's create truth

from I do we ahead in heavy be we're the pace could we we to efficiency period. on our think going much front fully I anticipated thesis investment create reason on is how investment this X-year don't knew the think that the a growth. even as was that margin of to that business invest think, and capabilities positions in efficiency talent, preserve next in round of hopefully able from that to has the invest to business be there, in fuel allowed and will us I we inside in reinvest that, which the margins

next the That comes Bert from Stifel. with question please. our for question, line Subin moment of One

growth. and the to just some on of positioning up there follow Horacio, comments your around business

and is X% the to X% staff teens relative that to XX% count your growth organic now year-over-year in longer-term rise expectation. levels head seen You've about

the or your how long that should toward mind, accelerated continue and over to Booz can expectation, it grow grow that over term? AI geopolitical be about you something how think is you the As risk in your backdrop, view time? Or business does be medium the think

I to keeps acquisition around good make investments that and I the unique technology talent think what our in a this we and as right strength here, you're out bringing said, there environment with a is ability of seeing process, positioning coupled people have mission. the that to people now, culture

that X-quarter I don't X-quarter X-quarter a is or think or deal.

it a unique back, is this think least is extend think to the that, at you or back continue something forward, positioning this extend if more. us I it I to it you if outperform goes going to And allow decade market.

we're That leads question, of the the market appreciate all what add think market -- and we that out sustain? funding which election is next the long to I the closely. political is CRs in March, I this. will this to environment, going And very mean, year, is watching are season in honestly that how type of uncertainty uncertainty running we to

One not and technology mission, that. that in when rate be back they're thing into actually that clients we've We're focused mission future. seen the begin to seeing to CR on run growth to early couple post of the in about this investing our than is worried We're on pull of seeing today. different you is uncertainty, bring years last because this the driving very time typically have our focused and is very level clients

we the I of this a for that the good of think want thing. but Allen, for it's the sake country, Obviously, continue, to sake Booz is

it. Got

the you things. for follow-up quick a of capital just Matt, side And on Okay.

you've maybe highlighted earnings pretty been You in net that been mentioned we and starting you've going. you where at on last of M&A hear that are balanced the the allocating how chart If that's X.Xx trailing better been a in where the market leverage seller your to presentation, We've is over look little are capital basis. and getting now clearly in rates a indications expectations of interest terms couple years.

would you of be for that just about about into share what can and inorganically? look today M&A As think you you're M&A of what a strategy, would in grow perhaps becoming that talk allocation interest doing not you larger to capital

Thanks, Yes. Bert.

perspective. capital First, a and changing our strategy deployment isn't M&A from

right it scale. M&A, us really that always a don't helps a right, biased gap M&A that's we've to buy capability think in and business need repo, been for share to or strategic over but I a model. the fill We

need numbers As Horacio the as to year. scale. this organically XX% growing We don't indicate, mentioned, we're XX%

us technology we're What or are capabilities for example, think, into looking for waves some may niche outcome-based oftentimes business areas of into of accelerate contracting emerge. where and that unique models these or help we will

I've heard So the same Bert. commentary,

are to York of typically seeing card me lunch potentially leading indications assets come from and more that are we is My bankers, many indicator assets will always dance scale to I market. is bankers my are and to indicate how New scale asking which more think that full, particularly market. the coming assets of

yet we're that that down, enough come prices hope certainly seeing data sure points not they but I to it have I'm call will.

from of for Perez Mariana our of line moment And the please. next America. One comes question, it with Bank Mora

My first China. question about is

could you could prepared like around all remarks government with with like the are focus Allen and be? Booz can So with collaboration JADCX? mission large and you LHX, play announced that the the how defense role in opportunity that recently Because What how primes, directly opportunities can this how you play and on the there. this you your play mentioned the China

key It's and to therefore, a that the a a COCOM to operationalize aggression. bring is deterrent to initiative would strategic information question. important great JADCX an together it's, need all

a to to that or cycle initiatives not of same how closely partners you potential understanding advantage but committed is inside on parcel integrate adversary We're How which of significant thing, accelerates to all part of our a number good it, into that very of are part Booz it. ability decision technology decision of into co-create the are do is domain something together Allen feed at: part pipelines all we're and at-scale ecosystem create at We them of our is part full ultimately build bring crucial scale. do the So takes the with the of with JADCX may a a of is you that that And big awareness? create the our and data other and work cycle? That available that the solutions very of frankly, CDAO efforts here. may it. a it. And that into mission, part of

really right that's been and bringing all scale is what And the focused this that doing technology. And we're on. has about: fast, at what doing VoLT that

Great. And my follow-up count. is question head about

and So flexible the remote all able increases appetite we business count I'm little if really in see But these adapt you they in like like clearances, also know, working. to agile be the like as this head discuss post-pandemic are on these client back bit we to how as really, the solutions are the performing. And I staffing. don't great remote How about world? to customer could curious a normal go working to were to post-pandemic, you

It's it. from firm-wide take seeing is certain the nothing maybe in processing Mariana. I'll material don't on we're material improvements Yes, that Matt, of a but think in perspective. any I areas, margins the and clearances

take engage in opportunities To to and example, lot, how COVID, through hiring lot your advantage has and We COVID how efficiently the we learned and remote today. hiring absolutely about about make more have a our about work, of remote process ways. question, to through of interact second forward that recombine carried and through clients a people flexibility, to combine tried about for to, our learned and different lessons the

supply But alternate the side talk months, particularly the been XX performance gotten business. a receptive remarkable said, to It has has as our more Horacio really And to undoubtedly, arrangements. the So XX really our the last that's been labor or And market We true is clients consistency lot on little pride we are a are on we intentional. looser ourselves helpful. flexibility. work in in seeing our labor about on side. the that

satisfaction down Our care up, attrition we meaningfully. about. is a which lot is Employee

I on applications And years X last average Our to seen we've double referrals, monthly year-over-year is of the that's, XX% and lot in a an almost a employee best referrals, and of proposition are the technology-enabled. fact over many of ways, in increase our are think their pace that us and employee recommend the eager place work network. our value indication willing and to employer to as to choice and employees that

answer a and short intentional. The requires is the question work it's of been yes. So very lot longer to it is answer your

One Cowen. moment our from line of Cai for next von with comes the And question. it Rumohr

Yes.

great So quarter.

Intel with you FocusedFox, talked Give color here? not -- I what You us we unexpectedly talk looking but see that about good. passed the it you about Have where mean on going -- down you some from was bottom? see

talk had to down And it nice is quarter much global flat sequentially, basically the and commercial secondly, this you didn't wasn't first a it about uptick.

we are So seeing a something of turn there?

I'll global which start happening the everything small in business, spend and I of moment a consulting commercial on In of numbers Cai. and that's side commercial echoed by if we think time what's divestitures it's global consulting then in industry commercial general. softness really this more the is reflect the for quarter okay, security, our with national a part the of portfolio. market, still in see The

response really of of rest part commercial incident an is to its really the our what doing But our about the It's accelerated. like -- business the we important And -- point, offering. this has business. there great. it's connectivity At is

If you adversaries intersection. think the care about the platform, it's they of private States look our at attack don't national cyber the or United public or at entire if and surface

part so that this here. small a again, portfolio. us the to them cuts our having But we makes partner presence valuable And it's support government as clients of a across

AI. repositioned of as where explained lot a seeing true the that business. Space why this our you more front, we're quarter. business part What are a significant There's the technology against are a security national side into numbers the already of On is they has the is intelligence. growing future

they clients to look help to solutions, now them those us scale solutions. create unique Our trust to and us

They about, talked building. limited rate anticipate the even that, by or that accelerating just we can have always them. we at speed Matt the business and if But bit which they little a growth There's with before people spoken We've and clearances is -- already clear some transfer key that work. is redeployed we some some the getting at interesting priorities. of the past the talked great really mission Booz in won have they pipeline and cyber including some these about talent of against talent is staying, redistributed and Allen staying and

Terrific. talked there of to second what But much than taking of you the much a Maybe terms mission. the them environment. hire on people has better in get from you're looser that improvement. some to terms doing benefited ever have color you're from doing in And give about the industry labor us you one, that putting whole to

guess -- to I she assembled close enterprise the problem this work COO, our to Credit to maximum Anderson, this effect. this is operations together leadership from also and this. all Kristine Martin the team and Matt's the of done been to of our start. all under I'll markets goes

We we -- first of all the the we used approach. is time thing ] the because too -- -- [ first advantage that were were taking applying people were identified stockpiled to our that of have not we full in

We cross-market this. have and both much more of cross-functional more process, using now built much technology view --

opportunity. that one mine cycle pipeline. Much talent an time do allows the a small gotten way has the it from a the a explain of been to a those knowledge that, is shortening but runner can better position And to join. at all in That of we significant. time that doesn't we extend up -- to each person the for changes, another we us once to becomes system, person lot our for that lot the have want offer incoming similar easiest lost more, again, positions So get of

has that been shortened. So

to giving they helps then both And but because opportunity helps jobs can stay it exists very and incoming longer really that talent, talent for about attrition That here right if for access they want them new set people existing now. to, if right our we're the our folks. full change focused, really

We like created significantly used this of it came rule hiring to they have XX we billability that we when to somebody ] door. once the fully through now. days [ billable took were issues fictional get thumb That are

be. terms or -- I reaching actual billability, couldn't used it expectation. what that you shattered is a have fraction We but in is number to the today what I don't it of tell full

that with of run employee smaller allows economics. a business to to drives somewhat a this growth bench. all at put drives It that you somewhat together, satisfaction. It when frankly with -- recruit us And

things coupled doing to and people I all good then upskill the training with what here, to that's think them intentional. you're So why the that all keep doing all all and seeing. to that it's seeing And and the we're we're it's you're

have market it's a that again So was is the do that ago, little the of But market. ago. allowed all XX X this than years us I and we've it think to part agree you, is months not with I labor made outperform these changes of -- easier

run a And what short more few I demand things the work to and that in can supply separately We sync. Cai, in But if add two the talk we're just Horacio in typically supply about obviously, said. constrained.

the Our part to So LTM on deploy of able the X.Xx. now right? there, for lot that reason a we're out people jobs, book-to-bill of there's quickly work over is

internally in both employees, Horacio marketplace. tremendous work. externally have as There's sold So hiring for lot of demand an internal in marketplace our the and mentioned, awful we

of we've And why are bench the from we as seen that's acquisition standpoint. Horacio historically on actually end why, talent gas the and continuing to what is at lower a our step said,

seen, from and remarkable regular mean, I I even XXX some make work month labor makes system just we consistency the -- the X it XXX, we months, valleys more and of the think, every we've The to I'd utilization. has some it out in peaks other think to consistently broken last is and norms basis. the adding see last very are over a of in just tended I heads has the historic this point a really, not XX standpoint on allows

from last with Akers comes and it moment Fargo. for our Matt one And Wells question,

the Is a still number? on I based strengths guess I do what on there And talked head that guess, number you baked the one follow-up, maybe a long-term hiring. you've your of Just more on seeing, about? organic growth growth we you're ahead X% X% come some of into to XXXX, think, into count based in

this Yes. a what together asked. Matt. Thanks, with I'll Sheila And piece tie actually question of

for head that growth And mark we're our have the digits. range and to targets, let's our aspire obviously, have X.X book-to-bill We the our historically say, count to us we on the ahead mid-single in, in hit measures. both of X.X said LTM to

first X%, the head our on we're over our count the expectations X% annualized above is LTM targets staff. above you year. X.XXx is if growth and look above and Our months, And just which, book-to-bill X above is client again, the historic for this

So we're getting guidance. ahead of not

are. As feel with uncertainty, comfortable where of we macroeconomic very Horacio in we momentum and said, political we lot business are acutely there's aware of and some a of the but the

fact I talent. about Hey, all Matt. the we're This that -- these love getting questions

topic detour, a us is the I you just on mind. so don't and think slight hope maybe this I'll I important and most take

do that is look But there's little like point tendency this that to collection people. I misses we of as collection contracts. bit natural of because what -- really And a call a the are companies of think, and at a proves, we a ours

of a fact, In serve clients contracts. people team, purposeful an collection, intentional leveraging more team than who

of really the I talent And while so this the and business well to. it's on continue us think forward. not that And we to contracts the focus are strength will that important, has drive base served

try color. great one up? going Why cash I go the through could to back Is to more repeal think happens? for to that a few get? that. That's could much Matt a get guys Is million potentially there also, think there's if of about kind you bill And guess XXX way And impact that it a taxes. did Section how you I hundred on

taxes, and Yes. happened Three of straightforward one this which quarter with pretty things which Thanks, a more two is complex. of Matt. little are

I'll in So In go turn? them question. so, your answer I doing explicit why don't through

an XX% This to filed benefit to to saw to full tax year returns. once about rate foreign tax we 'XX what $XX is related million largely a tax reduce ADEPS we our drove us First, our credit XX%.

$XXX Now happened. impact, completed that's $XXX million related $XXX by and to the contract-by-contract our second, cash to a taxes from really getting We increased estimated $XX thorough and XXX analysis cash of guidance. XXX million two we million, because XXX, 'XX about to into million, things our that we baked

GAAP year. had our what of as a be. provision we both better provide certain we decreased a of tax effect on tax increased reporting on We We those as lastly, beginning we our -- based of then, QX that XXX, to review our received and tax actually in we IRS that both increased knock-on tax the reversed last QX last scope reversed GAAP began rate position clarity the position we tax the And steady-state all there out well to the on adjusted was that view where would from contract that quarter. this

explicit So contract-by-contract that's did the review. a reason. We

If consistent out growth we're you investing take -- a simply expectations our tax of just is step year. size the back, that what drove for XXX with it's this right? it's growth, our And

Hill, be or With on respect to time the refund expect tracking Does happening over the you'd to know it in obviously come it, form we think of what's would at objectives. our we're don't -- reversed. so, I it be and credit, a cash whether it deployment completely if all ultimately, this used stage that will to and happen, be would further would that get back how But how it capital we implemented. and

to say we one Matt want this, topic because said and it double-click the is to to but complex, XXX Just just least. I on make as close this point off quick

outperformance that this through delivered the to exceptional want by you're that and good top the we margin results months. had it that just driven I the really seeing clear, was performance entirely exceptional X management has make first performance, almost line year cost

I the comments. concludes this Horacio for back turn Rozanski answer Q&A final period. will And to

Thank this all Carmen. and you, for joining for questions morning. you your us Thank

results every I Matt close, our the you gratitude The efforts we XX,XXX incredible Allen express and produced today. publicly allow discussing my of that me the moment take deepest have colleagues. with Before of of Booz to a people of to each collective and nearly privilege one to exceptional the

We're Allen. Booz that every bring you, the commitment very do. of for passion work We day the the thank and you world-changing you for proud you and that

that again morning, have note, you a this great and on thank day. for And joining us

joining. thank And you with for all that,

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