Accenture (ACN) 16 Dec 222023 Q1 Earnings call transcript

Thank you for standing by. Welcome to Accenture's First Quarter Fiscal 2023 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded. to Head conference O'Conor. of like host, to now Director, Managing Investor would turn over the your I Relations, Katie go ahead. Please

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

review Officer. O'Conor, an Officer; As of news Director, time our and the you'll from KC Investor I'm Chair opportunity our Financial call, Head Julie today's McClure, Managing Sweet, issued the We On and we mentioned, had a operator hear ago. just to hope Katie you've Relations. Chief release Chief Executive short

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

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

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

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

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

the turn to Julie. call me let Now over

and extraordinary clients, broader and world clients, commitment another around quarter continue our Thank results especially we and partners our our to people in value our all for our delivering their you to our create for shareholders, communities. people, the which everyone resulted XXX-degree joining work the strong to financial and to stakeholders, our us today of our

of XX% our execution. me strong with anticipate value revenues of local double-digit estimate our resilience XX Xx each our share than to billion, and our $XX.X or this representing clients growth XX to delivering while of continued with needs, optimization more XXX-degree million, bookings understand points. transformation of We basis to margin cost disciplined highlights expansion and revenue currency, ability $XX.X our We bookings over and in demonstrating few a clients whether growing we delivered quarterly commitment new are continued delivered market. for Let ability growth, compressed $XXX market, with billion, that clients' and We deliver transformations. the in growth

one do believe both position We learning our time continue clients' the Accenture diversity training enable and our earned element XX the the Index recognizing for to with Refinitid in thing of as on Benchmark, and Inclusion strong the the evolve. as business a five Pride Workplace to essential top industry. hours Global our our and inclusion is in score strategy and and this an person, XX.X to on years performance. pivot the opportunities number us past We leader of needs unwavering people, financial an to and upscaling hours right representing providing our per invest average to million We in the third Diversity commitment quarter,

end of of XX% XXX% XXXX. by have closing renewable on in goal We electricity, reached the our

top ability is clients of harness and our this key in important sustainability to attracting progress own change lead force helping Our to in our in talent.

new promotes around X,XXX overall, Finally, to more I world XX,XXX our the our we Managing Director, reflecting than and in to want XXX KC. you Over to more people new Senior commitment promoted the appointments Managing vibrant paths. than career to QX Director to congratulate providing

Julie. thanks to operating in extend our value to our shareholder the We Thank ran we for discipline you, overall all while Happy our of expanded time and financial market. and first to stakeholders. today's quarter, we on value We in with creating join and at and services to pleased us the industries markets, and results and margin leadership our proposition were business for both holidays growth continue drive rigor results with the deliver taking scale, all investing call. by XXX-degree to continue position our on where you, to across our

our Let me business outlook from last for single foreign double-digit guided the range and the quarter. industry markets key across the in with quarter. exchange $XXX in with currency, financial above highlights digits headwind begin impact about imperatives to our provided by we digits. of X.X% reflecting all XX% growth summarizing industries grew compared the a the groups, XX actual of approximately high exchange the our three across XX our million of and double Revenues foreign were X.X% in a local few growing Adjusted quarter,

which XX for growth continue of of publicly margin an to Operating the the points. companies. market take basis XX.X% quarter, refers was increase with to be to our more We than traded share estimated market, Xx basket

making to continue a $X.XX, acquisitions. absorbing investments of headwind. margin XX%, up EPS our and including people business, expansion while drive very FX substantial delivered while significant We strong in We our

of delivered we returned repurchases million through billion cash Finally, free $XXX to dividends. shareholders and flow $X.X and

high-level turn new in million also details, bookings. of with starting me acquisitions. let comments, We those some to the invested With $XXX

growth Services were book-to-bill quarter $X.X for in were book-to-bill to of of the X% refer Consulting currency. with one. bookings New $X.X of with local billion with book-to-bill of were bookings, X.X. billion one formally a a as we $X.X bookings billion, Outsourcing, a which and Managed

or margin In on the profitability pricing contract see bookings, improved addition, we sell. continue we to our which work new to that on refer

up billion, quarter XX% and local now in for in U.S. Turning quarter dollars were $XX.X revenues our were increase were local Technology and, up Operations X% local dimensions, currency. in at grew in digits expected, service a X% & XX% double Consulting $X.X XX% billion, for and Taking Consulting grew Services currency. services revenues double XX% Strategy Managed $X.X U.S. in low digits. as digits, to and dollars revenues. dollars U.S. strong the Revenues closer billion, single currency. grew look a the

local in double-digit Banking high In Industrial, geographic Markets grew Consumer growth currency, local Europe, currency, and XX% our North growth Travel XX% revenues in Turning by single-digit Health. Services, Retail to Capital Services. Service, driven Travel & was consumer In and in Public and in & revenue growth double-digit Industrial America, markets. growth in led by Retail Goods,

United Germany, gross double-digit Banking in Markets, Capital Looking double-digit Japan. closer Europe Markets, to driven growth was In Chemicals country driven Growth Resources. markets Public in & Kingdom, From in by & was double-digit France. growth delivered and led Italy the countries, by Service, Natural in currency, XX% and by revenue we growth the perspective, local growth a

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

days were Our rate compared Days earnings year. effective in for days operating quarter resulting of $XX with additions Diluted quarter quarter cash effective an was last the Free $XXX quarter XX.X% million, of year. of of XX.X% XX from and XX $XXX first was activities net generated last quarter compared $X.XX flow tax outstanding million last year. rate with share property per for equipment cash the for quarter EPS of first to compared and $X.XX days by diluted the million. were XX of in the service last tax first the

increase XX. quarter, objective at or Also year. of $X.XX And last At in over of we we billion $XXX million at $X.XX with to our we of November, $X.X share a of balance regards for of $XXX.X paid X.X increase cash billion year. had Board XX, price a billion repurchased per XX% average on remaining. cash dividend for shareholders, return approximately quarterly a declared authority November per compared be XX, in redeemed over to at $X.X cash total dividend a Our our to was XX last per an With a first the of repurchase billion million. XX% $X.X cash November share August paid Directors February This $X.X represents quarterly to share shares ongoing share.

all for the we XXX-degree value creating Finally, turning to our stakeholders. are

also top first for year. all responsibility the to company financial received proud extremely with Top engagement we customer of now off for in as XXX satisfaction, Wall are stars Journal me In and the in score recognized and and responsibility turn seven to social it summary, Management the start Street List development, were and be quarter, on for overall. results a our back And the to pleased strong the innovation, social we Excellence we're let one employee Julie. strength, We

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XXXX While of see clients market technology finalize so, the for show continue latest budgets. evolves we robust to X% growth how industry the or XXXX's spending will as estimates

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counter conducted, Roche, digital infrastructure and teams cancer solutions we We way health integration, multinational effective care products in company needs. to are and a changed a to reinvention, care. more changing boards data will specializing in determining that ecosystem steps next And diagnostics, and innovative we helping empowering business have organized building efficient are care. have a diabetes tumor and Using total be with Swiss built a pharmaceuticals digital create the to enterprise drive for match

across and manufacturing grew even patient very in processes double that business will in and for from business are a Now than XX%, chain to the the simplify and as world, with in digits. integrated together and we platform R&D XXX,XXX value deploy treatment. growth activities $XX nearly system backbone users. a end to to strong more harmonize ERP FY part will largest grow of XXX digital unify The landscape Cloud Cloud, working the one First of modernizations continues billion the stronger connect 'XX

we for step. efficiencies drive the believe the to cloud the to just first become that future the Migrating system fact, enterprise. operative continuum will In new cloud is the

to value. we and clients and in business strategy our As we make and new cloud, modernize, investments the anticipated significant to Cloud improve with are investments, our leveraging AI innovate data seeing drive First

we Health with accelerate also to migration work, modernize Disease achieve and for and the Control its partnering the of real-time cloud its the Human and people by under the supporting data health threats surveillance CDC's federal health, integrated, enterprise from this U.S. to Federal mission public of IT Centers example, For agency Through development systems. will a Department security Prevention, help Services portfolio. and is Services, the safety protect and across Accenture to to

core, digital to be their important double-digit more QX. very build clients our than reflected strong our As as ever, security in continues in growth

for health level a footprint cybersecurity cybersecurity to to our of their care elevate new expanding a are in hot We large Brazil network posture preparedness.

organization's reflecting that demand of consolidates a do, as will by these demonstrates and different Brazil four the talent. $X.X our up readiness also platform's cyber in solution leveraging in providers services a the to growing growth provider. digital signed for with security enables are Managed faster, and largest to cybersecurity new as billion not infrastructure the XX% only strategies client Services, service any the and revenue enhance High strategic typically is clients operations. it profile to their in that project We ever quarter, This expertise move cyber work the it of the our our importance contract

first Song, by our our across bring in in Managed digits Our are differentiated double from ability Services the enterprise, deep the including to expertise quarter. grew which

the modern a model. bank's new a platform and For to continue the of with a bank Group, example, IT transformation Italian we're operating new digital architecture cloud, main expanding in our and Allianz, partnership Allianz an with

Our new to regulatory lower is create to managed customer to Song cost services grow scale the the ensure will of help position a services experience. capabilities, team the industry, app mobile And customer our bank ownership. improve financial helping total and and compliance tailored its in market, end-to-end

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manufacturing to and global We're company operations. implement design We increase production that teaming of helping and predictability with resiliency, their ecosystem transformation on are will and specialty partners a Celanese, chemical productivity digital plans manufacturing through safety reduce facilities, journey materials their increased which output, at a scalable through the costs productivity, platform reliability one increase revenues plant of overall their and twin equipment and quality improved workplace. in largest product to digital plant improve

We future transformation innovation. cloud platform supporting for a enterprise also growth to scalable are an enterprise provide and

talent. Next,

increasing Services costs, critical We're that talent cloud transformation. help and transformation a Academy its Company journey. our through people a with full transformation IT, unlocked industry-leading AI Our tools a an their end-to-end upskill data its that global as clients their to manufacturer create with innovative continue on We're digital of everyone and helping Company chemical Managed contractors. aging us grows digital transformation. their model so competitors talent and and will access, faces look of part IT includes modernize to Together, we to overreliance implementing this The a Accenture and assets will together, multiyear the helping and leapfrog as IT element solutions.

Now, sustainability.

to embedding clients' providing sustainability into on a prioritize our and continue service. We digital transformation direct sustainability

European expanding years, using Multinational and impact the the and digitize our help waste. with we enterprise. manufacturing Corporation improve and operations their to improve a partnership to across are together Aerospace we environmental productivity recent the twin worked social For digital In Company's chain example, to supply have reduce

Now we We're low-emissions are aviation agenda. working from the use helping fuel design map, their road sustainability aircraft. advance together to sustainable supporting to aviation their of accelerating decarbonization

new ethical, finding the meet help to more hazardous sustainability. focused to cycle net the and from safer, targets the outlining internally supply life materials make and product help is on And ways its with that greener foster strategy alternatives. replace are transparent We a them culture we chain a are zero Company helping

the tech metaverse and revolution. ongoing the Finally,

not blockchain-based social only that what how impact. new digital people change a from products distributed, every they profoundly While We're to with with innings, still onboarding personal WebX, adoption version of Internet they change how how greater every up from a operator work, economy mobile customers, you but believe partnering NTT Japanese to services made promises speed a DOCOMO, offer, productivity. employee engage your will the of with the metaverse we and in interact business, are the and of early part how the we will it also with people

We will grow securely enable with building. effectively would will on transform and products, ensure organizations community and improve platform WebX people's the now services issues and engineers governments expand leaders business infrastructures with WebX, Training new which that companies technology for lives. platform. a solutions and develop will collaborate and social NTT DoCoMo's will WebX, secure use the work helping on and of societal provide that

the clients' and a you, ahead on tech keen our ongoing the Back to revolution. to future, to KC. invest continue focus innovation teams We of with

Thanks, Julie.

our to now Turning business outlook.

$XX.XX be of range fiscal estimated in to the growth For revenues quarter impact expect and quarter compared currency. of X% negative XX% about to of will the fiscal the to second we an in FX second 'XX, This the billion $XX.X assumes be reflects 'XX billion. local X% of to

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

fiscal local to we of For 'XX, the the assume X% which expect over our in full an inorganic contribution currency fiscal XX% to be to continue range growth about of continue to 'XX, revenue in X.X%.

to margin, overall see expected may over fiscal with mentioned we For the contraction year potentially last that's XX to I XX as basis be variability we continue to 'XX a quarters and out point 'XX, more HX. XX.X%, quarter, 'XX results. fiscal XX.X% expected, we and for fiscal go playing as quarter we expansion in second operating expect throughout to in

rate This We range in to fiscal tax effective compares effective our of an continue tax be to of expect XX% XX%. to XX% 'XX. in rate annual to the

fiscal our we or earnings to flow For be full year growth range EPS billion of in operating for in additions expect the range 'XX fiscal X% results. billion. flow $XX.XX $X.X expect cash diluted of approximately 'XX now property the $X.X X% to on 'XX, $XX.XX to billion fiscal FX, Full per of free to over billion, $XXX be the to range change in based and equipment to to $X million to to to $X.X be continue be we cash and share, the

income Our of cash reflect strong continues X.X%. ratio to to free guidance cash net a flow free flow

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

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

go [Operator question Bryan Your of Instructions] first line the Keane ahead. from Deutsche comes from Please Bank.

expected. that Really area results Happy area, strong one a think the softer guys & good little holidays. Strategy Consulting and you that called The here. was results, as I was out

about just can about Strategy a softer, that and to thinking a Is you bit knew going becoming forward? was more what expect Just the growth Consulting cost little be move softer. bit agenda and the little thinking going towards we there that it's & it just versus

thanks Bryan, Hi, for the question.

we're have our do forward. the as from going growth second, Julie decline some with important Strategy mentioned, are QX, do & We conversions revenue into to high a a going Consulting will to they're in But expected. continue on here. you our for slower a do at from our later we Strategy revenue for really clients, we to and in to And we're really practitioners a before about talk pace. year. impact in that for & deals, in couple reconnect which let's did little things. go QX As is see why bit It's seeing less little see a a QX? focus that that what results going S&C And HX. Consulting And see they deals talk the to There's we revenue transformational smaller about bit impact bleed slight but come

points. make maybe to two say -- of sort Bryan, to -- Yes. want I maybe

worlds. two to really first all, a tale specifically S&C, think we So it's I of on have important understand of

single tied to everything is digit work when and cloud, low building to double to our to talent, cost tied core. it's enterprise around the areas So platforms, reduction, growing digit S&C high industry

results, our underneath that's growing So great. like

even strategy S&C got a industries. of Accenture, that and of a are And creative range is of The very campaigns we've course, services right, things of the contracting, front-office world, well that's, strength initiatives spend, broad and broad is Strategy sort other tied range Consulting marketing right? that's as & as within to the ad other like of

the top And got lot you there'll underneath strength really a everything And of driving while saw line, quarter, quarter, the really take I just maybe that's step just and deals. want But think understand. and KC to the to -- comment be a in a slight decline that, demand then, impact that's important I X% environment. back in kind it results. you've so just the mentioned this S&C smaller next of on our at

So we're first start. obviously with pleased with happy and really we're of the super like we're how Great all, seeing growth, QX, right? year

continue Now our XX is over right, choices, bookings the have And million, past At what at ambitious, new XX to clients right, time remaining we because more what days. we the quarterly see macro And and the with which affects the the the which they're declining clearly what hand, saw, cost year. clients time, over do same macros over pretty the hard everybody many increase industries differently. estimates XX you've GDP time, in on and make and got the focused that business. uncertainty see $XXX And an having right, resilience. last are same over on was more the you their last this revamping saw committed they're are days, one to to right,

the quarter, and industry, they're of more industries, consumer we of to talked much energy. about more see are So same you've got as challenged regardless time, macro But uncertainty this a goods, than last the kind cautious. some bit being little starting that has right, increased, retail at say,

We of we're seeing of some the see deals deals the than bigger So delays pace decision-making. and continuing see in big we're And smaller some that this pausing smaller changes focus. to because more we're deals. the of seeing in all transformation the spending, impacts

are broadly decline. what build want doing that is industries. the telecom you around the all everyone security, in It S&C else with script, reduction strength Europe, a and the is So it remind world, that in you're state that all and second which we customer platform, Asia a profit in in working impacts of working revenue you operator, because And see with the then, in the diverse. digitizing of on the part the new to and experience? so we're in implementation; just a quarter this Missouri mean experience. Accenture. is in world, seeing around examples be border tech But year, the working Just exactly of I I the over our my customer European could U.S., grocer saw environment doing talent IT creating into moving modernization, cost a back the their Asia, with around who with

and Services transformation, them access lower just And we've industries, our continue breadth so, digitize footprint services. Managed you compressed cost. that and global and fire across help to because decades the I talent to a mean see be that strategy that had is of on for depth could we get faster,

you, So back Bryan. to

JPMorgan. comes from the ahead. Your line Huang Please Tien-Tsin question next of from go

Okay.

what Bryan's of growth thinking in And versus mix Services, bookings to just relative well Just question the to Consulting Services. as really to given, visibility revenue for here? Managed add Managed I last on there, as change consulting on you just side, said any both, especially the your just in as asking across here, guess, Julie,

I'll the we by I'll going how Yes. in take the our Tien-Tsin, -- of work. -- growth outlook our of see two types various take -- terms for

continued as year, is we what a outlook And relates full we're to see the strong of single Consulting seeing grow digits, the Services bookings, strong we pricing it double actually and see high for we digits. to end top So at see do and have Consulting. QX, that continue we Managed and our range, than pipeline. to we will we bookings that strong expect quarter quarter, we see solid lower that Managed in to in have be a see last really Services. And do likely had in that it record the in will likely and bookings that It's -- bookings we Consulting and includes continue though pipeline

Yes, to these transformation. to Strategy and & Consulting focus expertise on continue cloud-led and our we're platform going

you. Got

like looks don't steady heard quick Perfect. better on follow, it's if saw sheet I nicely, Okay. you I a the or the mind. XX%, lower, there. utilization I favorable Then pricing think attrition

margin, same, visibility here, it just sight or line changing of your is So respect confirm terms the overall to and but I question to on anything with got wanted range same feels good you've a know flexing of the just costs. I cost that. in if you're like

Yes. Sure.

So get in in talk kind attrition our seeing we're little point, bit then on can about our cost and I'll overall what and regard. the we visibility of that a into

all typically down And of really was attrition we in you but that attrition to pattern think this means I less in hire and comes year of ramp quarter, that. we're that and down down for to tick and more, from This came pleased fewer So you it QX. to G&A that XX%, hires. less up a at improvement replacement new structural a our QX means know, recruiting and people, it's costs, saw have there's with

so not expect as of With hire Tien-Tsin, that need we people specific seeing let we And and always very we year. to hire of have upskilling, in have need. throughout in for about continue balancing demand we to our operating as a bit And may talk we deep the terms terms we're mean, we and what skills see, many profit, we me we're focused But I a visibility and go margin. very a of little to competency what supply on. deep -- in in the

in have then QX said you anywhere what But year. we're rest about confirming for point to the that seeing within just a pleased So XX operating XX ask, little pleased points the expansion the XX visibility, QX we expansion the and XX basis And last give the and we're basis let of really be I to with our pleased in you be quarter, we'd as color margin, year. as XX range. to land point to more bit me the basis about

I out. And So quarters we in the quarter, script, through last see get we playing more fiscal the as mentioned exactly as is variability mentioned that may I in 'XX.

for reasons few that. a there's Now,

to and QX with, just of part structurally in it's So I know, think overall, because thing, a profit lower first quarter all of the the begin you in holidays.

increases of compensation most when it's kick us, for as well our in. As

decline those addition, time of increases, Julie P&L. work volumes changes then impact for QX, in the smaller everything and described, impact And the -- take revenue. take for of that's why into year. half it comp the planned when we've it's So that margin in to of the consideration, operating QX to does through while potentially we our that you deal first the QX expect in QX And going some

I so half how with mentioned. our see of is And strong why We most that margin that? year. the we -- the then pipeline, will shows of it math be And in back the have as a that expansion that,

levers improvements strong always, our have some have pipeline. how we pricing We our simple, And but on as continued important business. we in run

always are work We demand, We're how efficiencies we as and focused delivery to continue and more to run operations going contracts. digitizing supply in we within to of our and we're and pricing, on do, Accenture. And even cost-effective to efficiencies with on cost running discipline. addition going going manage rigor the to

MoffettNathanson. SVB from of the from line Ellis Your next Lisa ahead. question Please go comes

a about bit I ask, Julie, transformations. compressed the on wanted progress to

a I of you're that can got only sort that get as fourth sense or And give forward? years this -- can the rollout much for we third process about do we've of of the expect of Or left? growth sustained your lot like through are of are we? ago into started pandemic. we a out inning? far going along of color with full sort how in sort of far sort how phrase the you couple earlier the still Is seen, in on the clients working big of compressed think a are now How two to transformation? this some in Just days XXXX, just mode they clients and using sort push of -- you we in years we've looking trying

there's Thanks, Lisa. great And couple a that ways look it. at It's a question. you of

you've the of themselves ambitious. got of early what pushed doubling then that time, to and more the was their more saw we to ambitious. kind being and So more becoming companies sort and days leaders particularly looking competitors being before that more see And we're in pandemic from down

early building think that's transformation XX% we that it's three said, I we still more programs companies are I so that recent we're or surveyed have so, something being some working got digital last of transformations. in progress enabling That parallel. days said like the And much because these in very early shared core that quarter in CFOs in research the

and the migration the we've how had cloud to because now then us still to you So our say, those in get this these you're continue it's and while total report, we are sign this although you on companies the to trying who have when to innings, early the look, have a coming people starting concept just programs. migration out to ambitious the big just the lots know XX% able or contracts. more drive to more reinvention. cloud, acceleration access these moved to." the got they -- they Cloud work. companies to we We're do, do big "Hey, been consumption and kind the enterprise yet, that's don't have actually see So that's services business then particularly cloud fast, most why And business, get take of of that so. how basically migrated many we to And are really value to figure continuing and to all of we've our haven't and that on transform First, And

this So, as we see of a transformation. decade

quick Good. M&A. Okay. a one Then on

you activity in an in on in? Can of sort to And $XXX environment? you are color private highlighted, give this you're Have little past a think more the in the KC, just seeing quarter in in valuations M&A. you what I million uptick guys close space? come some seen that you of about seeing

is what I prices, companies come cheap Yes. say. I great would mean never at

to buying -- focus So really we valued and try highly companies. on

seeing really companies. where big we're the we any broader yes, right, that's answer, that. we differences. seeing to but think So not buy right want The environment, aren't great we And focusing, we're really

the next Your of Please line Koning Baird. from ahead. Dave go from comes question

at were -- mean, like Just I noticed my qualitative to, is at the Is the is thinking percent to wrote the strategic it I'm pace continue decelerated -- very the did as question, that decelerate I've the Like through the of what numbers guess that have of of all? your I must priorities Or And I growth? rest pace, And actually revenues you grow same grew kind very last like guess, those? close the at significantly. similar? at that. are business that same of least quarter. same they more And a little

Yes.

you. first, talk good So, It's Happy Holidays. say let to overall -- to me

priorities, is -- of did what a as our right, in you we our strategic at in the in you're which terms terms would than mentioned, In at grew grow did we strategic priorities. growth faster have Accenture you and overall, strategic would quarter have intent we higher where expect XX%, priority. overall rest our of of overall they They XX%, pace a of total, the in

which And does so of majority -- revenue. for the our account

be areas, where talked changing of as Look, industry. spending you you've focus more little you earlier, able prioritize ad challenged customer clients the that's Yes. forward, are to some see a -- like our some go and of in bit about we got parts business marketing also those to

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quick follow-up. you. And Got just Yes. one

on You being think, mentioned mentioned And asked, you in Consulting, a currency Tien-Tsin year-over-year? that constant down. that in sequentially Was basis? or I is bookings Consulting, think I

Yes.

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comes from from question James go ahead. Morgan next Your the Faucette Stanley. line of Please

Great.

any clients specific be D&A a up completely valuations seeing are capabilities follow the wanting bit especially get in evolve the companies. there the and targeting their and the Just to would look that environment? needs as But around we I wanted to you think you're question, current best point at about on should

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for last to mainframes that these we getting France So all We bought around quarter, financial scale. core example, specific off that was something a some something bought industries about that's Nordics, moving very in because services relevant the in like systems. is skillset of

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really, areas build all to continuing of in the needed across digital is to frontier, close which we've And capabilities like core strategy, and focus. sure tied the want digital our reinvention be They will continue we so the to to keep the very scale across enterprise, got so clients. making a

That's the then of are in. it's accounting kind follow-up, as accounting and quick some metrics great. just of to And or that a related moving

capital, But higher you kind something, And and DSOs. we to than from DSOs, it's at almost Can around? you this what's it from just a is expect and moving talk level industry-leading specifically, should puts improvement a that here? of last working through Or that this you monitoring see year. takes always going us forward? bit have expect we like for Looking little guys should is looks the

Yes. the industry-leading you're do Thanks DSOs. have question. And industry-leading to right, have we continue for and DSO, we

So let's talk about we're seeing this quarter. what

that a we have, I concerned feel And traditionally about good structural do And we're you from every do DSO as coming about. think is day quarter. the of know, would of QX this days end XX down And but it's by uptick had our a the year. we have really to year we than QX. higher So about we uptick this nothing

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that you overall cash the the at for reiterate for when So year. expectations, the and you heard free cash me guidance free flow year, take in a for cash flow look free flow our

a to for DSO. have in So uptick us allows days that few

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

little growth on and client the of bit behavior. up a the outlook wanted to I follow

dragging I'm any work I'm curious you backlog macro if new deferred I there? their more actually so So on incidence being and hear if change uncertainty, potentially seen clients sales of book taking curious out the out in versus on or prior coming So you've actual or bookings?

Yes.

any that sold, So, of in we've in business not real change. you about terms Julie, talking I And our what's the book is anything the macro. don't add? happening with I you're What already any with to want know seen else real there's already what's change we're -- happening we that's haven't if seeing in work anything of

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really out in just to for there, amount is to of putting in but So really that our money now, last not over we're decade, the and place our right, clients. the solutions value clients. ability of to that's anybody tremendous invest, compared driving matters kind the acquisitions where And

broad-based and Markets on surprised is Okay. the you was expect I or That's see North that Did you Follow-up, just actually going year? good growth quite changing? particularly to Europe outperforming that to America, balance here. persist through the and And vertical continue performance of hear. to geographic Growth was that do

way, CEO that By America my Europe in of friends of out CEO like their and the as North well. to Growth Markets my

little but there, good-natured KC, why competition So, don't you... a

Yes.

you in in of we Markets the see so to Europe expect double-digit for mid- have expect the be for and -- the if terms high to And year year, we is And grow a America, Growth a North what for do will I the see bigger business," to CEO do as range. expect on... Julie, else of range year. there's we add much full that anything at the don't that And America single-digit which know "I North want much, to says,

huge on they had North on I year business. a of Yes, unbelievable America, book last mean, growth

the is their double quite was to in last I high digit impressive. year anywhere growth year. digit growing So again mean single this XX%

of So, kind see growth are pleased the we very with we ahead.

time have more go Please Operator, question, for will we then and Julie ahead. one up call. the wrap

of comes question line That from Ashwin Okay. Shirvaikar the Please from go Citi. ahead.

Let quarter me say tough a a good and Happy environment in also Holidays.

both questions me -- Let ask I'll together. the

sequential growth, your could the cutting on inflation? the I'm you put you companies so we positive hiring and a rapid yet? wondering should might many hiring? of is comment The what decline one have the expect if is hiring first And partly I And back. attrition, in hiring brakes on So, function other see tech obviously, wage not for

Ashwin, Hi, with speak Yes, you. sure. nice to

manage know, our focused ability to you all, is in demand as of and it. what supply So of hiring, terms expect for just first ours, a competency and always on we of we're core

specific did hire we we skills added this the about continue people quarter, that we need. for so, -- will And we about mentioned. XX,XXX And to hire you as

course, many that said wage means no are think that across are we've through. do when made comp just continuing. than And been, in industries, they've in have statement a year, inflation on all earlier, And course, planned may inflation, did we but wage we'll that higher We back and they throughout our as need increases we regard. see geographies. to and go go we the of people to hire that we guidance, kicking I'll which what I reference we're that of included not that for, I we in all as different we pricing. to set that's as go balance But

and referenced might underlying overall. and on Services then revenue kind think that sort want that revenue looking the Consulting, obviously, Services, couple gets times. you Is shorter it conversion because, signed? fair Managed a forward to layout, affect Consulting just one of longer observation into faster; And sort quarter Understood. of will? still ramps the XXXX take that versus like question bookings, a good a cycle ask things obviously, how and I the what at you've of you that. And of if And might calendar Managed of

Yes.

look here's at would it. think I the way I

sell Services is of Managed benefit broad as amount they already at So a look they more you that Managed example, shorter turn than typically are you have which when of in for statement, made would longer you Services shorter go fair you the quarter. little terms of into a and a and you consulting a deals that already into that the in work, In duration, revenue deals is quarter sold they A have may sale, right? more as a have work Consulting, sold while you

just do of go terms long the well look our in us that, and back, there's diversity, don't shape it of for have which of you Consulting, at look a much right? history, when And you So the doesn't why and do at as like length terrific -- proportion We to a change we the the in percent to benefit our time, go if They it Services I as is -- mix, know vary. them really throughout really that Ashwin, you you really Managed bookings, this each. change followed overall, of and as Consulting.

the on Managed and which of these Services, that's is to which deal Consulting, some through deals, the mega smaller I this out of that shift just differently. the bleed volume Yes. the they mean macro sort some just the to we revenue bigger tied transformation shift more year, are called of are

more now. that's see right this the we So, of impact year that

happy and very you Good. thank Well, Okay. much, holidays.

day. So And trust all our of continued I'd and people shareholders holiday of and you our everyone want do wish for I and what season. a like in thank closing, Thank support to you. all every happy to for healthy your

AT&T your conference for for you today. your and teleconference. for That participation does using Thank conclude

You now disconnect. may