Accenture (ACN) 24 Jun 212021 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to Accenture’s Third Quarter Fiscal 2021 Earnings Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions]. And as a reminder, this conference is being recorded. to Head conference of like host, to now Director, Managing Investor would turn over the our I Relations, Ms. Park. Angie ahead. go Please

Thank XXXX everyone our thanks you, us operator, on today for third announcement. earnings joining fiscal quarter and

to Financial As had Executive Managing and the the short McClure, Officer review today’s you and Head Park, Julie an from Chief On Director will Relations. KC operator hear we I Officer. Investor Sweet, release Angie you’ve issued mentioned, ago. call, time just opportunity We am hope of our news our Chief a

the today’s Let of Julie me quickly take details, outline the then outlook KC business year full and metrics results. income begin Julie our XXXX. quarter. on agenda update operational you overview with for and provide balance an brief the the the along financial call. positioning, key before including provides will market fiscal fourth quarter with will through some will our for KC statement a for our sheet, third

will a of wrap-up before at Julie then provides end call. the questions the take We your

materially Annual call. differ news These to risks filings. we SEC on but discuss those release set could Reports Form actual Some known matters discussed are XX-Q forth in unknown today’s to our uncertainties, results and as and other Report expressed will are to on the and on such subject and including this those and and risks business not our of XX-K limited Form outlook, in and Quarterly including cause from call, uncertainties forward-looking in factors this

at investors. measures our the appropriate release believe which non-GAAP certain of to GAAP website section non-GAAP reference in accenture.com. provide financial will metrics, where we today reconciliations call useful or Relations our for information include our of we We Investor news in During financial

assumes Accenture to this obligation on always, conference presented the no update information call. As

to call the turn me over Julie. let Now,

and record creating focus reflecting outstanding to as companies Thank governments us. joining world's XXX scale, and the We you, digitally trust another knowledge laser you thank and value our had a their in degree delivered with cash importance growth XX% that top X% range leading our on of above flow. to continue We transform a free Angie, quarter We enterprises. over total client in clients industry the they of to significant everyone for and experience, take and share. million $XXX of billion our had booking. estimate local XX and revenue $XX.X outstanding bookings currency, with We we continue the market profitability guided

based digits XX broad industries and and unmatched value out and together services growing our makes with of our and create ability to reflects the to solutions XX clients. to operations across markets which technology Our geographic achieve industries and the consulting bring that growth a to breadth interactive strategy of difference double was speed this from quarter our

career paths. continue allows We talented class net talent, them an attract with a and with adding to world that to employee our demand people vibrant us develop proposition training XX,XXX offer top meet alone. quarter people value strong We our provide clients’ this

XX about promotions of over with announce terms America, to company which markets. advanced in which Director, with headquartered acquisitions well XX year close world promotions investment. fiscal QX. XXX,XXX Managing in an expect acquisitions acquisition with acquisitions delivering this includes bar in Accenture we are XX X,XXX two $X raised this to analytics and in This pleased class $X announcing growth or invest prices Services close We XX including Federal again and We to U.S., our acquisitions are we almost results North expect with record billion engineering now expect purchase quarter, balanced These year-to-date, Novetta in in Germany, in each. these August, strategic we a year-to-date. the Europe, while billion and the company with The have in in by to XX with Umlaut, closed services

Scale, capabilities waves Accenture want Our companies we market to of a experience, how in of investment the in track drive skills of big leading see in to in and acquisitions terms matters. further level and to since to invest experience the our demonstrates expertise, areas all successful XXXX, earned trust scale, record we of deepen terms industry growth. to continued that and and the our the join of new XXX family. and where financial next capacity; add trust and We our as to integration opportunity, of in well the companies attracts functional scale have innovation approximately market

we its million we you. urgently address over for share the KC, because our communities, or zen $XX India. $XXX that pandemic, believe for with one employees recently commitment of to to we $XX to success of would our our to strongly every Finally, communities million XXX,XXX due including donate our announced in needs

and Julie, us you, call. taking the to to join thanks you Thank today's of all time on for

in increasing continue are detail momentum As expand in our position, of which you I all pleased which the extremely quarter across comments, results are heard continue leadership the full we dimensions to results, call. our business. we Based third our more quarter, outlook of in the confidence third to reflect we the our strength fourth on have in in and our with Julie’s year cover to our very later will quarter market strong

driven $X.X growth quarter Results end and broad three me get continued industry third million execution billion, imperatives. across all growth our business reflect by major top over performance summarize financial four the I the our details, XX% in into the range, and $XXX with of against reflecting currency. operations. double increased our the of of local digit three services above guided Before headlines superior results, in in which five based markets, technology let Revenue of nearly approximately were groups

margin our returned of to These market. grow. unique at scale. demonstrate to was industry growth points significantly services As Operating resources We estimate ability to basis our increase continues power the XX%, seamlessly group integrate and we both the XX business an of and strategy the outpace that quarter. our for model consulting expected, results and the our

we longer anniversary as from Importantly, the we have quarter. lower expansion benefit travel this the the no margin compare of tailwind

to strong fiscal our investments in our as people future, and continue we $X.XX, absorb and focused of business significant ‘XX. the business our very for We are XX% positioning up we always delivered on over EPS

we in expect expansion roughly this up in on to billion We've of details investments X% FY’XX. starting Finally, made invest does QX fiscal the now should current you guidance we year's run of of this $X.X business ‘XX are I year-to-date expand Umlaut to FY in through the and continue to margin. about of turn acquisitions me can to this spend our the share rigor margin new step the on line and the to we which want billion while we continuing our I $X.X $X until delivered as quarter capital returning and $X.X take in year, via as acquisition our billion that, acquisition free to our moment which discipline. year, repurchases. all see to and to cash specifics billion let we won't some and our we of strong include from – shareholders next including closing you of and based to also while sight, and modest able quarter allocation with $X.X dividends comment program, billion think elements a that in with of contribution anticipate of not September, highlight acquisitions results operating continue range bookings. With margin expect inorganic And flow

New U.S. in which currency. book-to-bill $XX.X of $X.X $X digit local bookings strong very bookings billion X.X. clients with with a of pleased a with new strategy represent We billion record Each and of bookings for double $XXX X.X. services reflect were delivered technology Outsourcing a bookings were a XX Consulting our billion, growth and with book-to-bill over with bookings, operations quarter, the very X.X. dimension; bookings dollars and were book-to-bill were in XX% service million. consulting, growth

Turning for $X quarter and U.S. quarter $X.X single in were billion, dollars Outsourcing currency. very XX% U.S. local operations dimensions, technology service double local our billion, billion, at strategy look Revenues up XX% in high and services a and dollars up in XX% grew double digit, in U.S. XX% XX% consulting up for a increase closer were digits, the currency. the now revenues dollars and digits. grew XX% strong Taking were local strong a revenues Consulting grew to revenues. $XX.X increase currency. and

XX% local and markets, growth retail growth digit services. platforms growth and America markets. Turning We North driven in in double and travel in saw to public currency, in services and goods, double goods, growth retail our revenues by banking local In travel Europe, single grew XX% high was industrial, consumer capital and geographic service, and software digit consumer and digit currency. revenue

Looking Japan local in countries, and growth retail and currency, by double was closer digit U.K., growth banking services, led markets perspective, and and digit in growth service. In markets public double at Italy led driven and in by travel revenue was in From country Germany. the the delivered growth consumer double goods, by we digit markets growth XX% Europe capital Brazil. growth a

compared General year. market gross same down margin the expense XX.X% and quarter income compared was was XX.X% the XX.X% for the last with quarter with XX.X% last same for up third reflecting for year. for Operating statement, and year. income quarter Moving last to the compared the last with administrative was operating third QX period Sales a X.X% in year. quarter quarter, $X.X XX% expense basis for points margin, is X.X% the XX the compared billion

year. compared third share $X.X were last year. tax the EPS and and days of in Diluted per Day rate tax the the XX quarter Service was billion, compared year. for for equipment by operating cash the effective editions for quarter quarter to of last property last billion, $XXX effective to compared Outstanding Our Free generated days flow $X.XX third from of XX net quarter XX% third last rate activities $X.XX an of of of in XX.X% with earnings XX were was cash quarter the $X.X resulting million. days quarter

for our cash $XXX to billion share. per million or an cash purchase With regards to in shares May was third billion, repurchased XX quarter $X.X $XX balance average return X at Our ongoing $XXX.XX redeemed price compared of at August million at to objective with the we shareholders, XX.

year, share Also in May a $XXX a quarterly for approximately and last year. million. $X.X over our over of August share remaining. per had cash Directors increase XX, $X.XX total $X.XX share per XX paid dividend represents a be authority XX% paid cash Board of we to XX% increase of on a billion As we This quarterly dividend a of May, last repurchase declared also of

with pleased now focused very out to-date, results strong extremely are a our So and we and in closing summary, year. on QX are

Now, back me let it turn to Julie.

compressed digital and to X, Xx, pattern returning growing platform with Thanks wide of with KC. are dynamics start their seeing to research companies accelerated transformation. critical only needs stepping leaders Operations more we strong and the Industry are Cloud, growth acceleration showed this that intelligent business, multi-service driving up of The spending momentum Security, their race our in Applied moving onset transformations quarter. across enterprise strong enabler progress strategic Cloud we digital and double and faster powered more the interactive now and laggers a clients estimate with even as in the with recovery with by initiatives ecosystem with focus companies up. catch priorities Pre-COVID demand models. Xx unparalleled accelerate Intelligent and gap of lead to taking relationship. is technology on rapidly and are double an cloud investment modernize an are to strong from powered a and gap innovation, leaders growth are our in digit and These services pandemic, environment. of in the has growth digital our as than sustained Intelligence, continued technology achievement increasing their our digit lower These steps the widened at but I’ll market to are not

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our deploy build, versions. and OEM new and new updates automotive and by software continuously of engineering online enhance to products internet to features and conglomerates develop seamless with their Helping execute and Industry revenue features; a German large include set television a working embedded global streams on their media platform a systems for products, platform. accelerate allow engineering computer their of expertise and and company utilizing examples and managing the our advertising, their design, digital X boxes remote in test recent with top deployment helping Some service new software primary services in-car product services telecom to

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We proud innovation this in Changing World initiatives that Ideas us for are across Company quarter its Fast recognized Awards. multiple our

innovate. powerful of is Our to ability the our cross-industry sources expertise of one

technical For under program for them of of program bank pivoted approach Facebook's for and black traditional U.S. tools program and allowed important of grants a example, to to small businesses the struggling our businesses. using small make then to up’s to a was businesses, program programs black a enabling Facebook’s developed in commercial impacts million building to the owned part commitment lender; XX,XXX not apply owned deep This businesses pandemic. an paycheck overall rapidly grants the in this which administration distribution stand the industry we protection for is business that black-owned loans banking of expertise, We thousands business the invest small to grants $XXX with U.S.

incredible our Finally, let safety Their our remain me top health people. turn to and priority.

standing people contractors people, already supporting India our vaccinations, of up facilitating in and XX,XXX families clinics in vaccinated. their offices our of as We where our including been many by are such have

hybrid or be its home and doing model the omni-connected focused XXX% lessons many People of new an the during a moving in sites, almost client a work same. office, and likely will clients to pandemic as our at the We to of on will way taking remote remote experience. the from have workforce from been working, an

people focuses from way of degree We our the sense belonging. the XXX approach women our value of our to continue all. Directors connecting XX% deliver now of hires, The our differentiated our approximately of us have than So our that feel people new for in Board of and benefit of a workforce. and create helps to serve on a our to experience XXX,XXX representing more ingenuity diversity environment an clients rich

three am One murder this anti-racism bigger actions that not our As only communities. substantial our increase year new you a and making setting the progress, our U.S.: have U.S., communities. George after took you later the I made training shortly measurable take commitment report increasing recall, the representation, U.S. to impact on new pleased and Floyd shared in making in training having in in people of people to our our complete may goals action, external call investments I to of we each XX% including our but representation, our with

are You essential hallmarks can we and transparency because good progress to full our find of on accountability building website, governance a trust. update believe and

communities, community, for I kind. to my of or any equality back kinds want and against the all commitment to and As bigotry to Islamophobia, you. of racism, antisemitism Accenture’s we see justice and Asians, violence rise crimes hate and hate the all of tolerance reaffirm unwavering continuation including LGBTI against for diverse and zero KC,

Julie. Thanks

to business me now outlook. Let turn our

XX% of billion and to of of compared to be expect For growth will local $XX.X the fiscal currency. XX% an ’XX, positive be fiscal to to the fourth ‘XX impact X% fourth revenue quarter FX reflects assumes in of quarter the $XX.X the billion. This estimated in we range

on expect fiscal of to full approximately fiscal continue dollars results our will rates the to few the over compared be X.X% we weeks, ’XX, trending ‘XX. have year positive the upon U.S. last FX based been impact the in For how

in our currency range travel, reimbursable half growth full revenues approximately decline we XX% year. be year the on a of X% XX% revenues first X% ’XX, fiscal to to the negative For the the of local over the from second in including in expect no half and ’XX, a in fiscal now material based reduction impact the of from

the our organic about Importantly, guidance contribution remain updated increase X.X% full for year. to inorganic the the of as at still expect revenue driver the is to we

of be operating expect margin, over This ‘XX expansion expect fiscal tax to we We fiscal range annual basis XX% to XX of to adjusted XX.X% now effective the in a year compares effective adjusted For ‘XX. be to now XX.X% in point tax an rate XX%. our fiscal results. ‘XX rate

per $X.XX XX% adjusted of ‘XX to to for now fiscal share, the EPS to $X.XX full over earnings be of year now XX% to be fiscal range For adjusted or EPS we expect results. full $X.XX. ‘XX in the in We expect to growth $X.XX year diluted diluted range

be be and approximately full the to expect $X.XX additions flow range $X of billion. billion. to fiscal free $XXX operating we to now $X.X be the For cash ‘XX and range flow in $X.XX equipment to cash million billion the to Property of billion in

free cash guidance income reflects net X.X to very free Our flow ratio X.X. flow of a cash to strong

dividends repurchases to shareholders. we we as our share our Angie? can returning Finally, at it $X.X so and take of least expect we a continue cash that questions. through to With to return that, billion up your open portion substantial let's committed to remain

would that question allow and each KC. those I ask the to participants would keep ask for a you many to to Operator, as on provide possible question. a as one instructions call. follow-up Thanks you

Please the [Operator with line Instructions] comes of go MoffettNathanson. Thank Lisa Ellis It ahead. you. from

here! Hey, more a results one little more Great strategic. good and you. thank tactical, couple is A morning of one questions;

your bookings booking a programs. in plus seeing about Thank the you just $XXX Just understand bit to all? change changing in of a I’ll little then these one, like in trying and note, duration you. big first are that? transformation specifically then follow is anything or bookings notable number acquisitions million up. Are at related you remind not bookings can one, and I'm the composition us reflected just The how thinking the KC, on

thanks Lisa. great, Okay,

me bit. let bookings just a little decompose So

bookings look as was three and geographic $XX.X which V&A, grew in our I’d was when look outsourcing, in the it well there and And as based if acquisitions, that back bookings So you you all strong U.S. in X.X%. across markets. book-to-bill And also quarter three XX% that our dollars, billion, say consulting we again specifically overall in all when really it, this represented at slight you XX.X, we at – in strong bring were But a really in very from I’d there's terms about bookings pleased right, really there with those terms me let kind of impact significant. of point backlog things the be but will look peel dimensions, underneath just it's out. on not these of that of

that there mix was First all really of a good was categories of our sales.

As a Julie the But record our know clients, over help smaller that you current and revenue us in the categories, as represented very and us mentioned, well well XX can with had that positions the deals, down the of we if really all the sales all future. quarter. way go $XXX through they’ve million way for through you

priorities the it that thing third were was would consulting. across that our thing And pointed our cloud aligned strategy out security by we out, include second for and that our all is driven I point and know services, accent The bookings was strategic that industry very as example. based of you broad to

hand So those color want. points question or it with there's to you you the other ask I'll that back you any second if know to

you. Thank Terrific!

The wanted acquisitions. – is second to this for I Julie one, maybe on just hoping you. comment was

willingness is just of shifted specific this or made acquisitions, historically terms something after. done. of – you opportunities opportunistic than kind Accenture of you is obviously Thank your know a in going just to has you're ones do bigger Can of you. up-ticked know kind talk about market couple you’ve larger or acquisitions You has – this

know but acquire, aligned about so will these so we've always we Surely. our to that we disciplined to very larger very were capacity And said the well, and we’re have you what were priorities. acquisitions, do strategic opportunities

Novetta engineering, we of that they know you is machine diversification opportunity and the because intelligence our both, is Industry analytics, in engineering manufacturing a know in really are that COVID. accelerate opportunity know seen and public just space engineering, we've well, all our umlaut national advanced giving about primarily also and post major and learning, which a investment being was an for the So and but company X federal importantly cloud an cyber sector, us very business, and scale priority be as digitization to in you

this in We been for nearly decade Now we've this happen. predicted would investing a space.

that As amount you was of strategy and company for we know going our – make that continues this we're work can see acquisitions we're to by and the you then great already number, and add the and to and know capabilities, you a and renewed as well, scale we opportunity example a to be and skills big doing, new deepen of to that market knowledge. for know lot opportunities acquisitions, a opportunities through built interactive those skills industry functional to

clients you acquisitions. stakeholders we of right that going we’re and see capacity you to benefit I And making advantage so our of our our and strategic know when is disciplined our that this to the investments for the the is opportunities the have continuation investment think of have know all and financial to make we around continue and increase to

stuff. Thank you. Terrific! Good

Thank you.

Ashwin of Our ahead. next question go Citi. comes from Shirvaikar the Please line of

The and I that you're to have the question ask I wanted seeing from well. is about in momentum it as Congratulations past seeing had Thanks great quarter. you a regards on accelerated the are in you and me actually to that seems from with Hey! the what business quarters. in and across the and the statement. order think board as see on an business that's how you’re up go interim, to in to statement, the we whether managing demand just deliver, this particularly about attrition from perspective, so an a Accenture what not continue changes, seeing you to

delivering? So you're thinking with to any how thoughts of regards

Julie maybe take it over up to hand I'll frame few I’ll this things you and a and Ashwin Yeah, well. for as

frame perspective. about how mentioned and overall So the you know and let financial thinking our from up year-to-date about a the demands me we’re business just quarter you maybe in thinking

really context the demand start couple first talk year. when months FY‘XX that through mean ‘XX, bookings from in XX% of you with our things the talk And of different manage then the QX more an of about are base bookings. performance, that’s even billion historical in $XX nine there. benefiting a mention QX, you results you FY‘XX through as with and to which growing $XXX compare these is may that continuing, of bookings clients last off at differently our to over but ways, so need in I’ll with and it we year-to-date see the year, XX strong scale exceptional than that know million I you last about You the easier whole think sales that I in clearly market just record year about and in this we’re and

driven As in grew of $X.X we our before this and depth the look industries, When in XX clearly breadth the full scale growing it's the people. and in this staying We organic very then continue that expansion outlook, of by and pretty year where revenue, our mentioned the revenue from we our we're with contribution increase much And double end basis XX I longer our quarter quarter. digits profitability as industries, all inorganic a guidance, and with the we’re of we in about is our at record benefiting in year-over-year. think you billion profitability the leader scale strong given tailwind had business at to and with invest revenue XX that same. no you points travel

hand to round So you on me and had you out demand it Julie attrition. the question to more some know of with let that, over

scale then able was know you saw of in more our all managing so and designed a nextgen growth Yes, increasing, being manage want the business us I change and our and we changed the we our recall as around model our we closer you put to the and before great model right to in model growth on to the X March so was to right, back new question remember on leaders focused have helping back a P&L pandemic. take business I clients, that to just that geographic. we Ashwin you as call for growth the it’s

accelerated, uniquely a see that for place And us so are and we us continue we’ve scale, it’s this post-COVID have exciting to is so already and to driving put place. allow our The model very have to how have anticipated, transformation, what’s was in do to model and to designed we right needs the clients’ right. demand that’s our in because the needs as of operating compressed accelerated clients positioned

about we’ve you but not so said competency about market hot our comfortable is more As seen, up core is you being importantly the an core our it’s levels industry managing pre-COVID ever in it’s a to competency highest are and and we demand, mean a great our I think supply now as although – over we attrition, net ticked needs. hired attract our well of to as since that talent, the our people declare just And pivoting to testimony work people. areas people XX,XXX ability saw clients’ we quarter, for. the to this to company trained as train our is incredible our XXX,XXX you a We’ve great to started, and with numbers continue as pandemic phenomenon,

expect So us, continuously it, we is we’ll about you feel good of what and course so this from improve.

first you question know with how you particular Thanks of much it is a you I don’t All regards and strategically this as be, seems end but on the ordinary so just a of expand this? to thinking to for into I know type is that. I – and many a That this good acquisition, guess the to presence. you Umlaut bigger market, focus know are I engineering massive next you agree. points relatively have ask services

engineering a our lack right. several we to and the to do supply there’s have and as the sort building next know been find frontier office picture, Well that digitized areas you and been the believe has There’s that for not the lot digital with operations a respect the core clients ways over of better and big and new for of our growth. that been But the is a transforming office of to term, a space the lot front manufacturing manufacturing clients, still back last in years they’re chain. have they’re core, operations, companies trying are as pivoted, digital

eight, did everybody someday we a would over script. we digital saw this that to that in with several back be XXXX, nine examples already as all predicted and seven, investing. so just years business, build last we know, Now the predicted capabilities, We’ve that the made, and we’ve I these the don’t been you acquisitions in

see scaling organically is should with so most we our us. of but is but some you both the this in terms these world, the inorganically, market And about because so continue right, this clients, need expect engineers the and that from to best obviously the opportunity, rapidly will add in build great importantly scale and a for of

Congratulations! you. Thank Great!

you. Thank

go of Kupferberg with ahead. Our next America. question line Bank the Jason comes from Please of

perhaps to organic because your I’m has estimate like trend sounds to in the can wondering enterprise, lags. enhanced profile, for acceleration this pre-pandemic much how certainly digital morning. continues us growth you revenue Good all levels, transformation if this it guys. structural relative have Thanks

that really to I positioned market Yeah, the it the needs to capture our are available about of way clients. share I growth mean of and is the well that’s we’re think because think taking we

organic And and you’re sustained this be so we will in that obviously growth demand. think seeing uptick

isn’t early believe is and giving would get a view going do of like not actually our a we of of capture back sort to you but sustained what because but for positioned kind breadth too demand what it’s because and to think now that I into clients we say recovery and the looking FY‘XX, that, we in are outcomes right are of you’re that decreased, we’re sort seeing of spending know incredibly services. well demand just

fact appreciative things the know just we we and want You as well about goals see are platform. the we us that achieving that know XXX you why skills, focused leads think their you really can their something our creates now we’re own care SynOps we’re They is right company to and they’re innovation and turning well that They value and them value, improve that finally, bringing; services. values. solutions, it’s so I very individual they degree is because and give are the positioned a know so as not critical like on that helping the with

are transformation XX We’ve over example. learn us give and and really had I’ll doing you one matters as partner. make come These because to our attractive sit supplier the program, things And just XX to us major with diversity leader, down a you months are really know see that trusted they and and incredibly an them trust right. matters when it so you more clients in about last the us

really this there transformation. enduring so know a we is for when time think going And that to differentiation an is you at be demand compressed subsisting

understood. Okay,

QX surprised revenue was two quick most here, in this follow that your upside terms on Thank were obviously significant. overall business the a quarter, the of you. because Just part the book-to-bill what thoughts quite you areas of and up

still Yes, think obviously Jason even I good quarter. just we’ve billion in was $XX pipeline it we that, we part had the with relates as our in what terms better. fourth a strong feel a of we bookings. and about how every have you so terms broad year-to-date about mean and booking And our position did I know QX business as it mentioned bit of to better, based, for did of earlier, of really

the Okay, comments. thanks for

Thank you.

question next ahead. line Please Bourgeois go DeepDive. Our the comes Rod with from of

to about And increased able margin given you’ll the guys! be I this besides needing given war in just outlook levers to also, Hey, achieve also overall spend be added to for in more digesting Hey I content, fiscal expansion. costs margin operating I you’ll guess there. ‘XX. margin that to still that out acquisition that’s the talent pull contribution you ask on are the ask the acquisition about wanted like to just digesting people order

the people? So investments question about margin levers Thanks. in and also

Rod. thanks Yes,

let’s So second start with I mean, first. the one

terms of of demand in for the market. obviously lot of side there’s in people a yes, it, the So

guidance. and We’re that’s that but see a through happening to-date wages and seen hot increase and market Rod historically now and now, in that already right and our results vary by you skills flowing geographies we’ve our through

to as know managing us the our delivery know overall of always you do, well, it’s increasing we with manage to rigor just automation and us you pyramid, business up So efficiencies. really our discipline use

part from inorganic revenue about larger the as But for little course, that higher So any ‘XX. closer a contribution portion later and operating same expect coming that’s not and V&A V&A, FY specific little something margin. of with and we next fact And the part me expect due until $X earlier it the we’re that year, a X% more I coupled give to going I’m a probably on just do ‘XX, that’s just to in color bit guidance that’s really to closer ‘XX year, the first benefit in back September. around level billion let the of what FY have a of to so we on more on give deploying talked wages point to FY bit to about relates to you of to

structural scale costs, modest levers our our, continue we at We overhead course year, around expect to have including FY the more, expansion business our people. which in Umlaut, expect the of And and our billion somewhere we within to sight next in deploy and ability our clients also in have line and margin all in early of us we to drive at we’ve to Julie the continue our this today, to while do $X that’s to disposal, make up it’s that to to investing time that said, ‘XX, always that’s manage as premise to the of we and close said year. but sure

into work next might taper of quick as a have the head is big recovery, just this I on you follow-up contributions the any amidst all revenue any, the then business? there as other are year, happening. COVID-impacted of there the you next verticals side, And secular, that’s Great! fiscal coming Clearly, momentum there of progression certain are guess industry there the and is some the that year online. happening that it some COVID lumpy of into sort will Are that back as fiscal other that ends? in the head on any that’s are off revenue a taper we crisis cyclical,

I gave work, fiscal around I lot a mean sector you’ve material. example. world We public got is sector about the the mean that’s think example for surge did COVID the but digitization stimulus nothing like of now there in Italy. of see concept the and you of the public like the we

so manage, because to that to be need difficult to kind seeing think that really, we the when you’re industries, you think results, there in is that will material this material across mention. nothing nothing digitize, So of there see we

Thank you.

Thank you.

Our Bergin comes Bryan of Cowen. go from ahead. Please next line question the with

curious, increases last broader I’m have over price clients’ appetite two as transformation to three notable you. thank is for a quarters, ramped seen morning, change up? the in demand Good you

you so a me little seeing to overall. pricing we’re talk in of Yes, let about terms bit what

so define Bryan. importantly, just on contract many of remains investments business of lower a fact as and or a as baked on that is as combination competitive the making, and our the did So based talked it And sell in market We and the areas into disciplined profitability all we’re we the we was always about and work pricing that really for of pricing. year. we that is operating reminder, that’s see environment the margin our the margin competitive, guidance that

you business? Can engagements some in one change clients Okay. shown or then in And curious you’re that on seeing Accenture of continued of drivers of that any the that size on comment are Operations, you’ve I’m the and scope outsourcing strengths strength if the the too. just

and and market, really SynOps want the much size, investments? I providing I’ve or just a the but own about employees of value really Accenture own employee starting top seeing thinking then like you’re them so efficiencies, world to combination got really of of have have about I where seeing in on developed we as to we over clients employees partners outcomes and have is takeover, about their where their having more really and we’re cost – know right, ahead really really And And where taking Accenture resources because they’re both come more digitize. proposition from of got a right, saying, a we about and integrate clients the can bots, clients Yes, about is what the we’re work, and mean it’s that, see us and to and think question. think own pipeline it a I of that here. intent. automation It’s we’re able great where insights it, we leadership that know being is a such you leverage a this enterprise, then actual people, what with you do where it’s our focus strong the their future great digitize of add so my we more not we where when you leader entire

trends digitize And so digitized it’s more seeing reflected, is that what the to the need speed. you’re of about at

Thank you.

Thank you.

Our next Keane Deutsche with question comes Bank. Please of line from the go ahead. Bryan

into results. it the on guys, single-digit. I wanted but been Consulting. a Hi congrats moved saw high that ask positively had to about laggard, Strategy It

some industry Just groups? little you reach continue maybe some a that see to of of on bit in demand the your seeing outlook the other there. you’re Do

Hey, Yes. Bryan. the Thanks for question.

You’re strategy right, we we consulting, which what were very in is in quarter single-digits the pleased expected. with acceleration high to the

being look how at work of half year we it double-digit mean strong overall terms we really consulting type of see at of we that would kind the the round of double-digit up for growth quarter go and second forward, the perspective. just strong a fourth In

operations. technology I looking for makes or single or all on right, remind They a is about and strategy so aren’t as us that’s it. how are unique focused because what services you it or Bryan And outcomes really together clients every think and and Cloud consulting of with reminder, bring these it’s is and or that all more things, our confidence Intelligent Operations marketing whether transformation we and certainty quarter,

share then how a all in And The at Does particular on little and you that with in more the M&A, the about follow-up. as curious change just repurchase. just are M&A? Got guys increase it. capital dividends thinking a allocation,

we’ll – intact. September allocation really Bryan you specifics in framework for I’ll give our Obviously, capital next remains you but give overall year,

drive should the going our to our are to about we we so commitments of and I do on mean, next of are this ability in think you as this all just we’re and market. growth taking deliver advantage to investing waves

much. Thanks Great! so

will one Operator, then Julie we the call. wrap time more question. question, up Last have for

go from come JPMorgan. with will question Huang that Tien-tsin and you Thank ahead. Please

asked, if much. had earlier. Amazing was Hey! Sorry I Thanks results! this already off so to jump

pipeline is forward. replenish? opportunity do what what for an – of the out there terms Is here? million. the the number from deals potential going Just to of deals in you just how deal over record see $XXX curious I’m there on Just such is large

Yes. large category. the overall have that pipeline strong deal Tien-tsin, we still a Hey in includes and

four heard a impact Okay, next then I the mentioned little on on year. KC be point And there’ll good. impact there, inorganic contribution, you just for that the margin. that bit on margin I the about How think

expand. able be still You’ll to

correctly? Just make wanted that sure Thanks. to I heard

Yes.

next but about our expansion say year to billion X% that continue want I sight we now of did contribution is inorganic yes, capital do what to line year about expect modest ‘XX. expect So margin of is $X spend we we in ‘XX, – so next and

done! good. very appreciate Okay, I guys. Well that

you. Thank

Tien-tsin. Great,

closing, company all want want finally, I to thank our believe what value all a how and we really and of I’ve us our We our of unique leads of we that with today. do trust people you’re creates it leaders values. appreciate are because everyone that your I do we to and in are and we every And as for Okay, doing both joining for thank what support. continued we shared before, and day. shareholders

Be will every We earn day. sure to well. make it

conference available be this after XX:XX today gentlemen, September will AM and for Ladies replay through Eastern XX.

are X-XXX-XXX-XXXX thank code at X-XXX-XXX-XXXX That and again Those any participation participants you XXXXXXX. code by the for access and entering your Service. dial our AT&T may conference access AT&T Concerning for and access numbers with using may does system XXX-XXX-XXXX. XXXXXXX. today. for conclude replay time We You dialing International XXX-XXX-XXXX

You disconnect. now may