Accenture (ACN) 23 Mar 232023 Q2 Earnings call transcript

And ladies and gentlemen, thank you for standing by and welcome to the Accenture’s Second Quarter Fiscal 2023 Earnings Call. [Operator Instructions] As a reminder, today’s conference is being recorded. I would now like to turn the conference over to Katie O’Conor, Managing Director and Head of Investor Relations. Please go ahead.

Thank you, operator and thanks everyone for joining us today on our second quarter fiscal 2023 earnings announcement.

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

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

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

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

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

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

Julie. let me to turn Now, call the over

in your broader continue everyone our globe people XXX,XXX our around of the and for you resulted commitment to clients, our you, thank for stakeholders. and XXX-degree and today delivering another Thank value quarter joining financial and create work our strong all has thank results to to which the Katie you incredible to we

QX and value $XXX ever continued XX we am our with highlights execution. clients the of I a delivered market. We continued for on $XX.X million, pleased continued growth trust through share me billion, $XX.X X% such than very quarter us. to of clients disciplined bookings second for highest XX% our our highest that created share, few greater currency, Let in Xx bringing our HX the at in bookings, revenue we billion, bookings have growth record quarterly representing record in with approximately growing representing and revenues including $XX.X billion gaining market at us our local

provider; our continued cyber serve management, through the a acquisition including expand will Morphus Brazil, in Europe, technology with chain twins. in acquisitions our will supply in service us digital clients intelligence cyber touchless technologies enhance for supply defense threat which U.S., chain our acquisition clients; and and enabling investments of in capabilities with with the risk services technology, financial to the accelerate innovation areas, better as six Inspirage capabilities, to acquisition such emerging our of security We and inorganic strategic cloud of consulting the specialized regulatory which with SKS

in We million XX% XX.X our also continued investment increase year-over-year. our hours, people training a with

giving our opportunities ahead. fiscal lower on actions. our growth beyond, these will significant you our XXXX continuing in to detail the We business capture year invest to are more to business optimizing while and people in KC costs be and

companies one list the on we as Admired XXth in XXth by most of Companies. JUST industry We number of value our our year have one XXX-degree number we recognized on for the Companies. XX and focus overall a the a of Fortune’s in our four ethical World’s ranked the Capital market. And in overall row. year industry been creating differentiates on America’s and row Finally, We in our the list believe number in position number us for the Ethisphere one earned Most world’s JUST Most

and of very the industries market. be which markets, in forces our diverse allow lead strategies results transformation, distinguished am market and technology, to partner continues to pleased to lead lead for I that our services a a choice share. five demonstrate in our and ourselves that world us have and again And in take have business in to impact execution the once all across strategy we the

Over to you, KC.

of time quarter, you with record QX of setting all close pleased join bookings We to thanks in at for today’s record. year, $X.X our consulting top the and growth overall new range the Julie as continue We $XX.X in we the the billion, on at propositions. higher billion quarter delivered matching set a record second previous revenue deliver our of with to on us to to for bookings previous you, were Thank taking shareholder our call. our end results than last our value guided

end year depart our FY a leaders markets corporate of results transforming more by let the space. on and of XXXX, the services. billion comprised FY of we and of estimate roughly spend of non-billable fiscal workforce, functions severance are are and for fiscal million expect costs we office consolidating ‘XX, through consolidation $XXX and over our which include Before non-billable We functions actions to These over which across XX,XXX which $X.X people our Nearly year to or beyond, the half of X.X% our quarter, ‘XX ‘XX. actions office streamlining to $XXX incur in space. and current corporate than moment cost of in the half $X.X $XXX expected includes XXX million optimization billion I are operations, for approximately of of me and in taking fiscal the approximately for summarize impact million XX,XXX reduce business XX,XXX will ‘XX

half double-digits. with our me Revenues driven grew all for than of by quarter. industries local across summarize of more X% growing few the Now, let growth highlights a the currency, XX broad-based markets

estimated We which cost basket to and the by $XXX these exclude optimization The also by with results. our market, which following business continue operating leadership about EPS points XXX $X.XX. the margin Xx impacted adjusted recorded reflect to comparisons with position QX, In companies. publicly refers actions, associated traded to be extend basis of million impacts growth our we and in

our quarter significant basis adjusted of of reflecting EPS year. XX in over delivered basis our includes and margin continued expansion investments We growth people increased X% the XX.X% XX year-to-date operating $X.XX, EPS points, last with in and business. Adjusted points

transactions. delivered returned free attributed primarily billion we billion $X.X billion $X.X cash repurchases we invested XX shareholders have acquisitions, through of $X.X Finally, Year-to-date, to and in dividends. flow and to

turn some of let starting details, me those the bookings. with new comments, With to high level

Consulting very were were pleased technology the our consulting. at New We of XX% our $XX.X $XX.X our new were strong book-to-bill billion bookings, book-to-bill currency the delivering for X.X. book-to-bill record and with Managed strategy a services across broad-based, and and of of with bookings all book-to-bill operations, bookings with geographic $XX.X billion bookings in of at a a across of a which local overall X.X were very markets of strength in X.X record in service were in a with billion growth book-to-bill quarter, an X.X. a of X.X X.X. also with representing

revenue are currency. Managed consulting were of in headwind dollars billion, adjusting services closer a mid in in for X% our Turning quarter. operations an last local and look the of were increase at for dimensions, $X.X compared U.S. top $XX.X X% foreign quarter the services exchange in a X% X% XX% of now range, Consulting and XX% single-digits. in of to declined U.S. Taking grew X% increase provided revenues in were to a the revenues. local at X% dollars a and $X.X and service local billion, decline strategy technology approximately Revenues end we the currency. U.S. our billion, up and dollars for and currency double-digits and quarter

public the In Growth and revenue Turning by in States. media geographic grew growth was X% North and local growth decline by driven led Italy in growth public growth driven XX% United service. in revenues communications Germany, and a Revenue in to growth growth tech. health by markets. our revenue by partially capital utilities. America, were increases by service. and growth driven by in resources chemical was offset Europe, and currency, and Revenue In In public currency, These delivered capital was service, driven and local industrial, markets XX% high markets, in banking Japan. and we Revenue currency, by in Markets, and local France. led was banking natural growth

with an administrative the income quarter for in to expense for second operating was margin XX.X% reflecting last to compared was the year. for adjusted second period and billion Gross X% was increase basis and General an marketing statement. year. the for operating the from income X.X% X.X% XX.X% last the points of X.X% compared last Sales expense compared quarter for quarter same XX.X% the quarter of the in margin second down same operating Adjusted year. margin, year. XX last the quarter, $X.X quarter was Moving

XX an per for with last days quarter second outstanding last quarter in service diluted XX days last Our rate earnings compared for effective quarter compared the of were quarter tax second and of XX in of $X.XX was diluted year. compared effective Days last tax quarter year. XX.X% XX.X% to year. rate the EPS $X.XX second with the share Adjusted the were days

resulting $X.X billion from approximately additions $XXX generated compared $XXX by of for billion, operating million. last flow was Free of $X.X cash property cash net million quarter, the activities to and equipment of quarter

was $X.X August of at – cash Our balance February with XX. compared billion billion at $X.X XX

the per our at for price million to of ongoing With average repurchased second share. $X.X or regards to we return X.X in $XXX.XX to cash an quarter, shareholders, objective redeemed billion shares

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

are audiences Children our are and Save invigorate and to value campaign donors creative with the turning the partnering XXX-degree Finally, through excellence. connect we stakeholders, new to for with fundraising creating all we

at the So ‘XX, our halfway pleased fiscal we of results. with are point

turn me Julie. back to it let Now,

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themes. common two see We

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to expect EPS our impact in We on anticipated Duck $X.XX. gain our Technologies by Creek investment

Our fiscal guidance ‘XX for full excludes impacts. year these

XX fiscal year expect to results. basis margin, For ‘XX adjusted operating point XX we to XX.X% expansion ‘XX be fiscal to over XX.X%, a

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

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

of million now guidance. cash $X.X flow cash additions billion, than flow $XXX be $X to For expect approximately $XXX ‘XX, $X.X million billion, $X.X and property range be the to full in and equipment free previous to the in to billion be fiscal to range the our higher of operating billion we

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

substantial Finally, dividends billion to remain returning to we committed portion least return our share to repurchases as to shareholders. at of continue cash expect $X.X through a we and

open your let’s Katie? With so we up it can questions. take that,

you provide KC. instructions the Operator, call? those Thanks, would [Operator on Instructions] please for

[Operator Tien-Tsin Instructions] Our of Huang question comes line JPMorgan. go first with from Please the ahead.

know ask, Hi, look a lot those the being bookings but going had February in bookings sure replenish here, guidance we to thanks replenish just third quarter your given I’m to March bookings the to some confidence curious reacceleration of so about and to well. ahead? the Thanks. as great your ability as month in I much. thinking the fourth your on able I quarter, people in the what’s are side? on and of

Tien-Tsin. Thanks, Yes.

do So our feel we even solid. this record bookings the And our sales quarter, after our good outlook next QX about quarter. pipeline for is

lighter than had. bookings we’ve just We the expect what that quarter we record compared to have had to slightly

goods, demand And right color. And right? working to now transformational is little maybe in need I’m our are for consumer technical build with larger healthcare, are bookings, core. telecom, just strong trying do of as of our – banking on more digital how systems. to, Look, how products, across a have you our add insurance, resilience. see in and upgrade And there clients the can do just but rid we old really build digital whom all personally focused they build got get particular, the the They continued to very debt, we deals,

early enterprise. And every of that building the remain of the of part kind we the digital innings to really need so in core transform

a digital And do across good, lot enterprise all reinvention demand with on cycle seeing And to so really building pipeline, to is those rooted view of to to the total a a strong continuous our going that are enterprise – a our there really do about but work that starting core. in not cores digital we out. continue just companies the we’re have it’s feel about

Very Good. to encouraging. Glad hear.

XX to How it be this about think does margin as given incremental? points one about about Or we efforts offense playing know a given to optimization just think defense? to expansion both within fit trying lot still is just we that the sort I’m think about – of through optimization, this your this that? of typical So basis clients going more similar philosophically? comments of So And given well. that, XX think and the should your could versus are I’m trying I

Yes.

basis that room to value part to on enduring ensure deliver last should in can the model, be that of first, this as our time is XX to will adjusted So answer shareholder on including we creating for just me XX the the you points, basis. continue let short which a period P&L view an

you it, – bookings, mean view at It think – – if strong it or a of offense offensive. chargeability. it of strong the today, XX%, right, like we about that, is record are year, and as is we’ve you quarter I is look So defense. got to XX% X% I where

to We’re structural right, that in better after going a we’re cost, ensure position.

we’ve as you room been the pricing, after with have know, and identified doing the that we’ve As structural doing forward. inflation. kind And P&L to wage an with go of been costs dealing compounding with that challenges we that cost that digitizing. difficult but And more we’ve also been and in we of resilience opportunity look efficiencies create to

very of much that getting and years. the view, over of in couple structural created have these with been So ahead issues our last dealing

That’s results Thank you. great. Awesome. Great then.

you. Thank

And question Please of Stanley. next go our comes from James ahead. line with the Morgan Faucette

a couple you very those items. follow-up on Great. Wanted of to much. Thank

are a and you in you’re cycles? want that customers about in? to types little the able what times the seeing being do speak the bookings First, conversion well any but talk to conversions, Obviously, around can of decision sales actual projects changes bit or engage the may we seeing cycle to themselves

to high-tech experience. got spots more a time, quarters Well, got on If for dominant, you’ve area, return in if shorter cases, all cost, are the – mean energy, the seeing it their type return the of been the cost insurance, So less with – reimagine cost. to right? projects. to on see a So they lower industries what trying several on focused right? wants on in you deal how retail, some the and love let laser on do industries with not last are focus like, have that They say, affected the resilient me very shorter thinking place, debt, and a about the cost. more has to same example, growth, most most just programs, some investments, clients in same really they just over right? be be, but everyone of important start investment. technical right, customer it’s it’s the we’ve is want is other growth, are cost But and optimization At say, you you’ve industries, I

is kind And theme industry want they are in but would a first. is is optimizing be say I costs, different common what this an to I would of focusing everyone so that say does environment, where by

just seeing to your changes of general, because you all decision larger your the about seeing making you saw, question first are KC talk deals. trend and in And a part then in about in let these toward yields pipeline you to I’d our

extent, this not extent, SI caution. particularly more we America, record talked seeing some America SNC SMC quarter. last there we’re to in So is less tending where deals North this had – and quarters, bigger and deals, deals. about transformational the areas in of the smaller in sales But and in towards the couple some of smaller the seeing we’re North to SI,

pipeline, trying few think of the is have That’s like at on early to that were to drive we And that. if you are We very get and I those once hugely last clients, cloud. want be their positioned be – core be real to just transformational about center and their with transformation. in be been want them well then it, we which to be my strategy, way and want yields And I mean being what to the super of right, modernizing exactly our help They the for able then be now innovative. quick. transform they continue a help business, the next be clients’ cloud. want just We innovative example work to And really they again our to there utility. in for big Maybe, it the would are them to KC, script, partner. that we relevant, comment you our say, great if is Enel to years?

problem. Yes, sure. No

convert – me in let deals we we’re revenue to because bookings consulting consulting and bookings what how do it our doing because F&C focus larger when understand is to also transformation really to So pace. on they a slower and important impact our at of the

and very year. clients and in with as million. which bookings had record we our And participates, over I I were SNC overall deals, which mentioned So a that SNC script, the larger have consulting very pleased was $XXX our to bookings, is my the winning close we of XX part last critical

we see America. some a in smaller so that’s particularly in do still little what you than because pressure you’ll North our may is have bit deals, conversion have we in SNC, a see And slower typically

does mid-single that get a quarter? think you so we that the a in in just in I’ll will for all make It bit As bit in a we digits I decline, I strong of more with part SNC. at connection in your we slower a consulting question may SNC, as then? little P&L and next how that the $XXX And see will What very come just little discussion to part to maybe quarter. We we our look overall and we’re But QX. conversion. it why our but mentioned were – that work are reconnect able to want that definitely time reason growth means modest a yield that QX, the look had clients of than going XX of SNC at in zone take to that in to same relates us to million, into clearly decline that. be bookings this terms They

for think what it D&A, deceleration there. then seen and That’s in contribution inorganic quickly, little really going on about should was a seems you. thinking you bit how are How like And And about Thanks. forward? D&A we’ve the the a that of quarter Thank year? we just helpful.

just contribution for the the I’ll So reiterate year. maybe

be about change. X%. you really inorganic see No kind year, we we be And can’t no of always our control contribution strategy. but the bit a the contribution. us acquisitions lumpy. is And now or we to percentage – know, given hear can on as change So of up In timing, down to you’ll go any there

you. Thank Great.

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

morning. guys. ask Hi, Wanted to Good about… just

morning. Good

kind happening is little local in standout talk about flat might wanted I to Good be? what’s bit a the the a and the technology did of just others. come and media group morning. there and what about just you ask that outlook Can at versus communications, currency

last high-tech and primarily that reasons. strong And Yes. That’s comms for of more our been – I we’ve still business which for sort platforms the lot, press. and and are back got reading it’s come North business, obvious positive, reasons a has where but then and America few the challenged, in happening we’re really cutting software us of all spending obvious media kind a think has in for years for down has slightly

helping we it back, sort will we’re And And think And – these ways do companies. right their you great but time come spending of spending look in will approaching as this a at last they is eventually now. of some places, many for them bit so are in that. the of are and just but lower

in we that that I long-term, we’re diverse, These very just in – great right, are it’s many we’re not that’s and why positive. And so diversity this So think serve it so all last great companies. quarter double positive. in you’re was media growing markets where was comms it seeing a and example, for industries digits growth markets different in in picture, but Europe, where because

the we’re of and business why to results. strong So plays strength really financial our continuing our deliver to diversity

slightly head than the expect actions in ‘XX. And of fiscal actions Got in ‘XX? lower Should strong guess, result a just taken costs environment rates that lower I year What to I to taken? in trying also was it. does the Got typical demand bookings, reconcile signal, year for we as growth fiscal it. the my the but

the just on And compounding. achieving been hypergrowth and mean ever inflation. like wage there inflation us taking of us addressing experienced address being I been combination able actions, kind been to cost which reground right, what it’s we’ve we’ve a have and efficiencies, you compounding that back step a through the impact and more wage is and none been of structurally really is of so of this pricing, I improved is like saying, we’ve No. can

real for market. enduring room when P&L think it creating So still value it’s is year in a expect as we of more faster really grow forward. we’re think to than – positive so you being about that moving proposition shareholder the next how the And our

on shareholders. scale to a adjusted business, our deliver invest an have to point to return expansion expect our a basis, at to margin XX We XX basis allocation, in meaningful capital including to disciplined

– we offensive we utilization, as got we’ve we’ve forward. yes, So and structural better that a to is got commitment today, is an move demand, costs out a in more mood this great say, great can take put position to us

Great. Okay. Congrats. helpful. That’s really

Thanks.

ahead. comes MoffettNathanson. line with of Please from And go Lisa our the question Ellis next

hiring Thanks the of question. about of the on Can connecting sort that more tandem? things fact move growth you taking a a side, questions. then that side what little Terrific. you bit have seeing slowed just up flat X% your dots and the sort my what typically, of Maybe kind with follow-up bookings in the quarter, kind I the thinking the was noticed headcount kind two you. connect and Thank record those dots quarter of that you year-on-year you’re this and bit for on a in of are sequentially.

Lisa. Thanks, sure. Yes,

with I’ll XX,XXX quarters. two maybe just added So last previous quarters. looking first start previous the in the over We people just back

the not to start you’re right? growth, record were utilization accomplish question, of based see to So looking we heads from first people, deliver demand Lisa, do same and did we that And all, at then we the QX. take in I the your We – we the a headcount being had in to And add let’s what that XX% quarter. this first needed QX look to we on And see revenue skills we about look the to drove of – X.X% quarter, that forward, there. and in QX. QX had if we have additional when add X% forward, the we the we now, answering fourth looking right, people would have bookings. our all able sequentially you We So outlook market.

Julie, follow-up my AI. then is related to you. one for And Maybe is, Great. this Okay.

positive apply long-term? a question Thank how bit this or operations? in it’s is kind how own of firms. applied stirs and talk you for you. over can IT think sort of AI this a talk you up, topic your whether services about of Just Can just you that operations internally the I negative how there time of know the you about a about you every

Sure.

a this fact, transform things they was over want way week best-in-class In us the several that we helping of their really myWizard client which the a last them from at explaining years, whole where have IT we of a I integrates our just are department. how technology. platform, one great is platform built is the And

not in something, So, use we uses the And a didn’t comes issue, write IT before, it, best cases, can it’s then looks solved We learns is an our whether problem, or own been cases, to it some people. technologies. code, the AI, when in right. it routes at problem AI in And ticket example, identifies other the to it every solve from address the for way ticket. a right that

breaking so is incredibly are have technology in using for we which been technology in we example, our thing – look, we think past, said, using much do when it delivering you how including jobs. and testing, AI same – all The why the true, of about different are people, we technology, because that years with with So, already AI. is about have about automated, we how and talked you now is for revenue

We are efficiencies to ways we and optimate how receivables where for better can in our there. to AI have look we at payable example, the use business, continuing way in and we run finding accounts our

today this using predict well how delivering to right not lots definitely fit. the at able of show the sale, our we very We are we or based services consulting the on data not Should after we it be being way or and we right look kind of we sale running are factors. can the much are – so sales the and as in not, in is that these

So, as have in using how increasingly well in deliver we we how both been as AI, we ourselves. services run

our these one also They reasons for turn clients course, are AI-enabled. SynOps the to build Of them is digitize things. having us because faster. of it’s It’s to operations not helping platform why

it order talk process about, entire generative are we changes. to people new changed to like human these generative playing co-pilot process AI AI, see understanding kinds technologies, about of technology like changes, to the beings, be the industry, the long-term, to these which being in a use cases, to So, deep things because super strengths When requires make of that has excited the we work. our the is use

and a that of to way. people up-skill do you to very able have responsible in the all have be You got to

how of And understanding scale demand at So, enterprise and actually are from take it, we to are to an able all major that technology an different technology partnering with them is implementation the help having understand go with. versus, already a been has to it hard lot are opportunity, this. but understanding we working great There I playing build you we fun the – am is implement it, are into you enterprise how impact. be in a and very players to assuming to all to in with

you. Thank

Thanks Lisa.

Togut the ISI. ahead. comes Please line next from go question with And David of our Evercore

services particularly with especially in a the that, banks seen Could as some And financial struggling? could crisis last we morning. of into part little services, bank-related regionals smaller have delve the or month and you just within so, Thank you. in of given Good banks you trends the maybe versus centers. in depth, regional evolving vertical banking demand us money greater IT remind of if profile your the

Sure.

base, a banks towards client As markets. the skew larger across we of the all

exposure clients, and general. kind banks don’t on we we in have regional any of but big So, to the smaller comment individual don’t

still for couple on obviously, banks – the of the as early you the last the sort So, weeks. think developments are in of the brake, about stepping

out. things stand demand as So, about clients, which couple a of the our trends for generally I banks, really talk bigger are

on mainframe. of in the because the technical So, first all, still them are is lot their focus a a of lot debt, banks, there of

gangbusters really to then industry clients to some time aren’t technical services, like they industry are on new is they it across a continuing practice debt, which take really financial having the it the digitize their of services, growing mainframe agile, to need can Our has do as if systems right of behind the which because take lot harder introduce trend more across and in a that services. now more

to will systems. have – have You got oftentimes, multiple we

test to have will You things.

You can’t go fast. as

in of their touching can kind reaching they limits without banks the terms core. of so what And are do their

be addressing the important So, core driver. to of really the a we expect sort

more how world We then And more are with across management, leading seeing, and in and been the companies insurance, – insurance, data, we not kind who because the on of only up more their in and to of new more experience sort banks. claims. particular, finding are trying are had kind business, really how but views asset digitizing. behind of grow and transform their banking use opportunities ahead of to to management, They to insurers catch asset slower in working exciting was

integration. covers Where capital and in markets a which big as a a things financial are So, insurance, continue see slowing been down bit area. where services in vibrant have we player banking, is the to we U.S.

that up see again. pick will might We

a down out. shakes Let’s has just Hopefully, But for some slowed all see this bit. that color. how of you that gives

so It much. does. Thanks

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

to QX ask about bookings. Thanks morning. guys. Good wanted I just

discuss services, mean expectations managed the consulting think just a at bit can consulting I least year-over-year comparison versus easier. gets you for there? If I

bookings. But Thanks just of maybe the I mentioned not what Yes. to to Jason. of on Tien-Tsin. reiterate am I I kind going breakout comment specifically individual will

see this bookings record We next had quarter. we quarter. that So, do

the thought came all to it had services, about. We really was did lighter the be Jason, We strong, halfway have Julie can in of you that and much quarter were through – quarter you the with consulting in going what pleased it more the know bookings. we now than managed is right bookings that to terms that well, this what record reasons stronger. we year will us Overall, is talked even mix favored see, this

a solid and by do pipeline, QX. we and strong to And continue that, have so we that, are encouraged we very bookings for see

are on charges will the Okay. And the what I cost understand margin reinvesting know know $X.X billion, savings side, are what’s least essentially the the to is? just the cost for fully you to not changing from wanted of underlying just guidance. the I And rate I program? estimated at mean year, of And annualized kind savings takeout aggregate then this Understood. we I run but the savings?

or is reinvested, offsetting are some wanted just other much to picture this how get just essentially you a etcetera? wage being So, around headwinds of inflation, of

question. the for Thanks

with Let me start FY just first ‘XX.

FY the beyond. ‘XX. are So, that are FY and we are actions They ‘XX taking about not about

the So, savings, of Jason, focused the we on do growth year. Julie what will develops, opportunities in terms going how with And depend, said, those to have is the really market that it as we of next you we know shareholder part And mentioned. what to just give continue on going our that. she really room to execute are is proposition, enduring key to us value what know I more

Yes. Alright.

So, just…

Keep your margin to basis clear, adjusted point expansion. XX be point basis model XX model – your keep to

our market. are to business we grow We going than are the faster in to invest going and

you. Thank consistency. the love We

Thanks.

go next from of comes with ahead. our Peller And the Wolfe question Please Research. line Darrin

bookings you finally the and contribution. Thanks with together and bookings are of efficiency, changes we between are I linearity when a sound headcount really capabilities more Hey. like the in seeing divergence in the mean and pieces revenue seeing put actual it the we growth guys. does

bookings mix of I function type are you a is mean a I that AI, structurally or model the factors theme. else? big obviously, now, anything point it part So, the know is mentioned But we can to is there that other of or of

we generating Darrin, add But very Yes. need what have both if terms are seeing And headcount, what can. And last margin we improving strong certainly really sold. work are demand revenue to Again, throughout quarters. seeing talk pricing, have what meet our we the our in hiring, in, share. us continued is we drive supply, focused And balancing to been of to have when stable, and we been terms to year sell reminder, to pricing. the you you the part want in Maybe about our are Julie, with. that bit talk we it’s of – over are you client focusing the we you recording you us heard that I on five demand seeing terms about of which revenue. take what we It’s happy talk continuing just you in what about are market of that how and are revenue on little is been not a and the will really in has on continue

some that – well. is of as is part to that’s revenue helping of so our there drive And that production a part

mix, of I right. just say, lot And its would a

of drive like people the numbers are If you need you have that different. longer transformational deals to

disconnected got wait new there some some inflection So, a have you big, is point I wouldn’t more. where have we minute, say

As but change is we some disconnecting for no I earlier, been degree, perspective. a big now, about to talked there in have while that

want understand put want and are together strategy. it industry coupled with right, And implementations, our has how Just just functional important it’s services take and SNC deep core deals. as them big managed to strategy our transformations to who we transformational we have do works executed that We either have knowledge, technology deliberate people to changing do say with that are people to that think the digital I so been or a to out. that our

our SNC And continue we also take big we deals is we of at in small is so help it relationships. next on that booming stickiness booming, – them getting one and with so project, economy the are that the understand the to their them really strategy are when and core love project, be We big while met we we company kind more. the and the and

high-single deal mid-single high-single because of the this and – in this is think deals. And smaller SI digits to consulting do. was the large bit would we We see North of with going SNC going because impacting digits. what sort year that’s larger in quarter, of fact, mid-single KC very just see the to for similar that, deals, and that digits we SNC, exactly mid-single remember, America a deals, thought so transformational digits. next year, we smaller Again, be want quarter it consulting separate. with see take we going growth. now about before, now But mid-single the time, great thought we as caution We kind differentiator And to little it year, which we at fine that’s sort smaller that SNC it’s in deals But record you softness it to the over with kind lower will be of the and deals, said to that’s these right, about competitive are how And to if last as with. and for December, the why, see sales, year. as that’s to are We probably, our deals. digits strategy. we is this a a longer performance don’t may reconnect for look transformational as it as

longer. the actually pipeline would concern is enterprise cyclicality is side, One think the it’s of follow-up cycle makes we you lot When there. impacted some deals The business see a of That related sales first on not pause sense. the that get of surprising, transformational is smaller spending. and is among the about larger or longer by

So, was that I still well we not on same guys the having if better strong strength not expected. given – I do shocking, execute, side, – you But than you how is of magnitude think probably it’s the guess.

sort your in what a experience, ahead, the looking step take see economy so when cyclically, does down you slow that And do down? of if

we down – never and so cycles, I I the market. across focused. We really focused on slowing it, being than but do growing say it’s never what basically stay to try strategy stay the Look, stronger and guess relevant economy our

than X%. still kind still And so faster the is it’s market, market of hovering around

of kind what seeing, than got you more so to that’s when the economy saying, are what core are down, strategy goes we optimize. so And to technology every is well, watch we economy people the that because

lower cost. have We got a

managed to services. got do have We

the of So, always we the can faster we uplift, do grow economy watch market. an kind trying to what do are – more right. is than But

big cool just us. you see work makes of be much done that’s how the much very And strong we take amount to these needs like you the sense. do, in generative a market. very industries I AI. will indicator tell So, like still what mean are it’s just of And to technical of innings early it the I across for and advantage to debt things

You got data. to have

Alright. Thanks KC. Julie. Yes. Awesome. Thanks

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

Cowen. Thank from with Please you. And line comes question Bergin last ahead. the go Bryan TD that of

of billion, has how if I that consolidation can morning. Good might this have the I some that back shorter picked and offset at guys. And ask guess And deals whether us those helped to areas of that up activity. really on cycle back – Thank you $XXX sense much work? meaningfully? has you. look the Hi in to step wanted pulled the were give of aspect And a mix consolidation? of include of XX you vendor those an over to

in that what’s Vendor there industries consolidation are going is in market, a some some the clients. certainly long of part ago a on that but did time

consolidation not Right more want driver don’t our to same growth. industries, of different have in way. often stuff ton sort the you of XX the now, as build our where have for clients of have telecom to I but about more in consistently different off less numbers – countries. that clients right, and like who platform cost I It’s to revenue things vendor what hard and clients. move our done of a is consumer a of say, goods, the So, sort telling hand But you of vendors, I are not we interesting, many the we like lots the it’s if faster, the very business have of seeing that of big lot because a they am get basically need – am

to it’s – a actually being is to interesting if we moving global have approach how to strategy more to play implement vendor do for XX have you so hard XXX got of super vendors And able about consolidation single many kind do vendors. of to platforms a the data, the

to it’s tied So, strategies us. advising big would clients on, that kind are no but exactly for of I say the we just theme

services, you Any cadence go any in through operating margin consider quick just adjusted as then bookings impacts and margin as a with And up the invest second the those? Okay. you should record near-term ramp follow-up, managed in on half? considerations we

No, is unusual. there Yes. nothing

you. Alright. Thank

you. Thank

in So, clients other and want in thank all day. closing, everyone of for to for for support for your you for Thanks what all shareholders are each trust doing our people I our and continued our joining. every

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