Accenture (ACN) 19 Dec 232024 Q1 Earnings call transcript

Thank you all for standing by. Welcome to Accenture's First Quarter Fiscal 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to our host, Katie O'Conor, Managing Director, Head of Investor Relations. Please go ahead.

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

will On As Katie the Executive Officer. call, Officer; Relations. Chief McClure, and O'Conor, I'm Julie you today's Financial Managing Director, and our operator Head of Chief just Chair hear from mentioned, our Sweet, KC Investor

news a short issued hope had you've we an We ago. opportunity release to review the time

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

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

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

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

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

the let call to over me Julie. turn Now

our XXX,XXX the next am stakeholders. on value we commitments consistently which against backdrop continuing that this we every macro people generative our pleased are to you, drive in did and for our while of the invest including all waves how in incredible dedication quarter thanks our extending to significantly commitment challenging. I is for to to deliver be and everyone joining, a leadership world delivered growth, XXX-degree day, and their AI, around so Katie, we strategic areas to continues Thank and able that early

Starting with financial our results.

growth at Our bookings their representing $XXX greater were trust major than ongoing in quarterly and currency. North of had programs, the representing in have quarter $XX.X in with the the billion, XX center local XX% clients our We in half clients to spending be million and were America, us over bookings reinvention.

of at We growth delivered end top for in representing -- quarter $XX.X growth range, of local revenues currency. X% billion our FX-adjusted the the

market We continue share. to take

we type as work continue decision-making industry our to well impacts continues CMT group which expected, and see as discretionary As of our consulting spend, be lower particularly to slower challenged.

invest We business in delivered basis remain to structural we our of our on March while people. X%, expanded finally, operating XX optimization actions we to announced adjusted business create points greater track growth in with And the reduce by EPS and adjusted continuing resilience. margin costs to and

addressable capital We to geographic our Advisory. are August market we closed quarter markets. we of which new America, to of with In entered strategic America, XX now North an investments. of this $XXX projects, areas out $XX million Turning in in a our continuing acquisition in across for area growth our the North total Answer acquisitions build billion

Canada. infrastructure and projects QX, we management in program added for Comtech In company a consulting

of Encapsulate, invested with the Concentric Ossola and marketing with next the care also with in health We Consulting the of in our We chain expanded of industry Group. in acquisition supply and invested digital we the acquisition our capabilities frontier the Shelby cloud Life. acquisitions digital

acquisition the Group of in In process U.K. EMEA, with Germany acquisition health in we ON in Storytellers Spain, digital the insurance and Innotech cybersecurity enhanced and Consulting the of and with of the our services in care Service industry business in with acquisitions expanded the Nautilus invested the our capabilities talent

markets, opportunity in with focused cloud the are acquisition Nemo the Zealand, in of on services the in marketing and cybersecurity [indiscernible] Finally, of in with acquisition with growth digital Mexico the on acquisition we New of sound along Signal with Japan.

to fuel invest to a advantage. at is scale competitive Our our growth organic ability

we focusing EMEA, on are in our example, business. pivoting CMT For

for commercialize and opportunities create and market-leading sources market a customer new services to shared operating new are and growth speed investing We strategic markets. of and companies to partner unlock to operations its with their enhanced Vodafone partnership efficiency,

and plan to more a we quality scaled, to speed of efficient Together, organization its offerings. and enhanced and model higher AI-driven create with and for data services a services shared market portfolio new commercially-driven

move continue person. speaks the learning their in invest ways, learning of and The industry. to skilling platforms to will end and into complexity, reduce our reinvent deep for structural in quarter, and representing our utilize This technology, transformation new its an world-class digital And and -- people. average services our XX such capabilities people hours hours for expertise. work create continuously the unit million well-known career to as for Accenture's Vodafone's approximately solutions ambition of new and X new in its It with company will tap managed also paths to our AI per training course, we

our AI, generative growth to and investments. Turning

sales We Last million part in continue in an of of we to Gen 'XX. clients with had reinvention will position in sold our take we of shared decade. XXX be all important next the AI, that early approximately the quarter, $XXX FY an which in leadership projects

sales. in to Gen $XXX million AI over in with Demand accelerate QX continued

X $X we know, you in are years. AI As billion over investing

our generative For AI many XXXX experimentation. a of clients, year was of

XXXX We are on now focusing scale. clients at in our helping realize value

model and decisions This specialized seeing make readiness steps AI important will manage the about by companies as they relevance. the and value We're the business and some on year next We're accuracy, to models. that services deliver driven personalization excited and our value. is recent true companies of the of choices foundation help of foundation context customization launch that customize Generative in is most along to pursue are with data and

Our going array their are to models clients an of business to objectives. achieve use

allows Our proprietary to the or factors like of transform And every chain. will value using models these address or user services organizations and in to customize context cost solutions the offer to accuracy. select link programs AI we their combination business to Gen switchboard training certification and new and scale rigorous

investing are in also AI We acquisitions.

generative to Italy-based XX experienced firm With technologies. and recently will an we example, announced their generative of acquisition, advanced specializing we designers, with historians, of good along our who for the that expertise AI our engineering, in add our mathematics, many uses AI, AI join in Alma economics, professionals For AI AI. acquire intent center network professionals, advance helps will growing companies includes Gamma, that philosophers this and

data XX,XXX we our doubling practitioners our And with skilled XX,XXX deeply and progressing from practitioners AI of goal an QX. and additional X,XXX to towards are as of

of that a increasing ranking the recently and XXX-degree we $XX.X brand value Finally, quarter, created in #X. achieved billion List, on Best value to highest highlights this few Global ranked our we Interbrand's date Brands additional prestigious to

satisfaction. Place seventh on it in year Best our of satisfaction, to #XX in the list engagement because Wall based row from innovation, Managed by and We is is noteworthy Work. a top World's strength. Street recognition feedback list excellence financial and for employee score Best and customer also the social XXXX We the Journal from Companies customer and people. XX And received Workplaces for to on for top Great social among for we responsibility development, jumped on the responsibility Fortune the particularly were #XX This recognized are

lead people backgrounds, to experiences. our with continue We and to ability live in attract different different different perspectives

Index to progress. Campaign KC. the update consecutive Human U.S. on policies, an is more score year. for Our transparency XXX-degree make to for the equitable LGBTQ our we on practices builds Equality Over plus and you, website helps present And success and the is to in people. which our us Corporate in reflected proud available We're top benefits experience, all that value reporting believe because workplace trust we're the Rights today, XXth

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

expectations QX scale were market. at discipline with the leader illustrate again, position and We ability shareholders. and for to a deliver as results results, value with are in investments our Once continued include our our with our strengthen our pleased which rigor manage our business and to line in our

of for public our with me XX let and local highlights X including So begin or energy. by a of the few the X% industries, quarter. grew utilities, in higher mid-single-digit health industrial, service, growth summarizing Revenues currency

pressure saw industry As our to continued continue in market expected, take we And group. CMT share. we

of X/X of we reminder, the publicly growth available our roughly global theirs, through use market compare our results We on last competitors, public exclude is market. As to financial our dozen the represents which acquisitions methodology assess impact significant of investable which to about a consistent basket, our to closest addressable a X basis. their date any X-quarter of adjusted against rolling a results

significant growth XX adjusted and the our quarter, year. delivered Adjusted QX for in and We EPS of X% was includes in people over $X.XX, reflecting of margin year quarter business. XX.X% investments increase EPS last operating over last the basis an our points

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

We quarter. acquisitions in transactions across also XX $XXX the in million invested

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

XX% and the in quarter, billion. with growth XX% currency book-to-bill growth $X.X book-to-bill for X.X. X.X of with billion $XX.X Services X.X. of were book-to-bill a of local were bookings with bookings were Consulting billion U.S. dollars a representing a in $X.X billion bookings New Managed

a top quarter exchange approximately range X% a X.X% dollars provided Turning for were last estimate of and the adjusted quarter. compared $XX.X guided our local revenues. currency X% for U.S. the at billion, we're now of to tailwind X.X% increase Revenues foreign in the end to and

for currency. currency. U.S. Services X% billion, billion, of dollars decline $X.X the in up in $X.X X% in and quarter X% Consolidated were local local in and revenues revenues flat dollars U.S. a were Managed

strategy Taking closer at declined flat services digits. mid-single a consulting grew our was operations dimensions. and and mid-single look Technology digits, service

Growth communications service, In our and by media, and to markets. and software markets. banking declines public revenue local was X% in and capital by America, Turning in offset geographic led platforms North declined currency.

growth Africa, have highlight The our in year prior is Investor in Europe and 'XX, Before reorganized website. EMEA for I markets. years were and reclassification our now East previously Middle continue, for Relations geographic segments. can I this the includes want included found be to that we which fiscal

led banking X% Italy, communications and offset capital by partially In and by EMEA, by public decline growth growth revenues in media. United driven offset and decline Austria markets, Revenue France, partially by a in in the a was Kingdom. service grew local currency and

Japan. we public capital chemicals and banking X% in Markets, In growth by markets. resources, driven local by and revenue was natural Revenue growth currency and delivered Growth growth led in service

statement. was income for the Gross marketing XX.X% quarter for last with the quarter the last margin down quarter Sales for compared Moving first XX.X% first for quarter year. the was year. X.X% to and XX.X% expense the compared

compared General and X.X% expense the last X.X% administrative to same was for year. quarter

continue, which decreased in actions, that in these I QX, $X.XX. with and our to by operating and margin following basis costs $XXX impacts associated I reflect points optimization comparisons adjusted EPS Before million want XX The we exclude business note recorded by results.

in QX $X.X first Adjusted operating last increase XX.X% operating XX in from year. billion margin reflecting the operating of a an margin, basis income points quarter, was

tax Our an XX.X% year. of with quarter for rate XX.X% the adjusted for was compared tax first quarter rate effective last the effective

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

balance Our $X XX billion billion August XX. compared $X.X cash was November with at at

to ongoing XX, billion first authority cash $X.X our share in share. repurchased shareholders, we million the at objective regards repurchase At approximately of price an average we X.X quarter, to or With had November $X.X to remaining. redeemed billion shares for of per return $XXX.XX

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

Julie. scale the remain generating long-term committed on delivering at our and faster portion and free for strong our to investing modest generating financial cash shareholders. let me turn and cash And flow our expansion a market growing of earnings, same than back market in closing, stall share, we margin at to returning taking now while leadership, time objectives, it long-standing So significant to

KC. Thank you,

creating pace begin As by we for remain spending impacted our we macro clients. the to on our be quarter, continues environment. of The value laser-focused second

Our our expected saw tech, strategies and in QX reinvent unchanged. The every to we the quarter. in industry optimize of AI to than growth. particular, business last part using and remain All technology greater lead U.K. to even accelerate in challenges and continue to companies data fundamentals of operations their enterprise need

must a so, consulting, and drive is build digital ensure which they brings their helping deep differentiate by do expertise our core. clients and how To Strategy functional core. critical from they digital to we our business value industry

in security. continuing are significant demand see and areas like modernization, AI, ERP to including platforms cloud in and modern and data We migration AI, Gen

to been built core of which represent has and opportunity done areas future digital of to is All early more the in than still date. great be with

significant to with me life the still the examples Let from ahead opportunities bring quarter.

with continued significant the which opportunity. remaining. workloads modernized, reflecting enterprise only cloud, growth, market Our of or ongoing the double-digit We XX% QX XX% cloud XX% are opportunity momentum so estimate strong are an of only in in

Clients migration. provider cloud their company cloud leading continue migrating working for transformation. prioritize the We're the we by to applications of the data strong digital a are core centers their Together, to to are hundreds XXXX. platform, as by exit demand to continuing cloud-based enabling evidenced insurance with

to transformations have into and and move to we than disparate speed. from And find model the acquisitions the service accelerating of is migration help easily including And we new organizational migrated a date, creation complex we and To more cultural markets. are modernizing reshape data helping their just change new the not a applications more and this ways mindset, their automation of cloud. with new are company working, drive of to agility apps half IT lead integrate

for operations drive and debt, and insurance ultimately and businesses. back-office personalized This growth the enable and transformation reduce legacy will technical innovation, solutions complexity helping affordable and company more more cost-effective provide families

across And significant investing for have still made the innovate unlocking progress are cloud extending greater to on with more continuum, the ahead. clients value migration, opportunities those who they and to their cloud edge, modernize

recently help leverage for with execute scale For and and strategic to our technology announced of an example, employees. greater partnership and company's customers, efficiency McDonald's their to expansion the teams speed we unlock strategy restaurant

Accenture worldwide across solutions capabilities innovation work McDonald's and to automation ambition the technology the enhancement generative also acceleration with applied support will supports restaurants and the of new cloud at This of AI connect McDonald's platforms. digital McDonald's employees.

opportunities of as the unlock industry will their business, Accenture's and investments customers' deep McDonald's the understanding and their technology ahead needs. of reinvent changing digital help experience stays McDonald's ongoing in customer

AI. we the of of capabilities. transformations and to AI and This work and We data that the embedded have focused a opportunities and Turning is in digital core, mature companies on part less AI AI. generative than larger XX% data our and of building data see modernization critical in this estimate in

BBVA, model a of Gen as continuing by financial with to business the curve stay reinvent leaders ahead global to We its such help AI. services group,

we coach they become are building their centricity powered assistant even a help For them industry customer in AI the efficient. disrupt core financial digital example, to while reinvent also to banking more Gen

BBVA applying be can This work is is reinvent employees continue strong Gen and our enterprise of continuation and digital helping operations to digital across implementation, Gen is BBVA's Thanks a its their productive. core, ongoing which more AI transforming to by marketing AI.

and marketing create customer evolving supply a new its communications communications hospitality flexible and model support brands, across content every to hotel data-driven content also needs. across This content global production chain personalized, touch tailoring efficient point. guests' We're content will helping to its group capability marketing

while its this professionals, This all all service digital communications, drive and performance marketing increase reducing programs, deliver website its and enabling initial brief customer to from production exceptional branded physical be optimization. content available will to of experiences, management both traffic costs. marketing the to will its Spanning measurement content digital more and effectiveness

and to is component their still clients core transformations. estimate clients' We of XX% a is the core Platform the are digital platforms. of core opportunity ahead as our critical upgrade

Singapore-based with human financial corporation multinational We OCBC journey modernize organization. a banking on X-year and services transformation our are resources a to Group, working

shift key and model functions, cloud capabilities. Together, as strategic employee to will talent hiring, development such create drive will and with decision-making. with enhanced management on the HR a a AI-driven operating next-generation focus We career operational HR and we future readiness, talent efficiency experience

to and and by decisions. leaders work facilitate And better framework empower to talent provide scalable business providing high-value a up HR analytics will capacity business insights and free evolving HR with advisory meet needs to

double-digit a security core strong to our Security in very is essential digital and business quarter. we growth to continue see also this

opportunity to currently their leaders that estimate While the business XX% untapped grow potential. of of expand, organizations are we only are representing cyber-resilient, XX% and at to continue that least confident

work our We're important about with secure services require provides adherence XX,XXX Fortria insights, our in database organization health-related of life working trial Fortria, more with contract build is example clients sciences research than research to An regional regulations. to of clinical global and companies deliver and to a industry countries. which government for and XX and people local that outcomes organization

cybersecurity to new need best and continue that to remains with program grow their they they and As resilient a practices. enter partner compliant security markets, ensure

and capabilities a services architect of through series cybersecurity global co-crete, will managed operate We and services. our

its grow flexible business, and Fortria strategies. security help will partnership Our utilizing risk

to marketing QX. We growth reimagine focused their continues drive customer Selling are growth. double-digit remain with clients to in experience demand and on helping strong

automotive brand communications. direction lead We to and strategic creative are collaborating a global with Peugeot, French its for

and traditional digital Peugeot's become a Accenture audience in across global and market. vehicle electric younger engage The media will ambition Song to a all the partnership leader communications supports manage channels.

all-new in early XXXX. full launch will campaign be a of electric first E-XXXX the integrated XXX SUV The

estimate engineering X% manufacturing in strong mature Industry services. continue We only QX. double to digital enterprises digits have capabilities of we organizations. grew that see for demand across their Finally, scaled, and strong X digital

leading in-car with We generation maximizing hardware we implementation enables a engineer flexible car cutting-edge deep the minimizing the next across of industry are of next working platform experience will new software Chairman generations. features to use infotainment -- of level manufacturer with expertise and a leading that support we multinational the Using and the customer software while our complexity capabilities, engineering global system.

it strategy with and a food enterprise reduce on We're a the total for reinvention future. its working supply position operating modernize global chain, manufacturer costs to

chain supply and key transform will procurement, We such manufacturing planning, distribution. processes as

AI are chain help achieve focused line end-to-end leverage on investment generate will efficiency greater savings company bottom to expected It fueling with to intelligent supply you, to operations better is and right KC. automation for optimize portfolio and and This returns the growth. agility. data and optimization program ensure risk. will assets also significant the gains and implement capability for minimize builds productivity Back to maximize and self-funded ongoing further decision-making

Julie. Thanks,

let to Now our me outlook. turn business

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

fiscal we dollars to results be on been last U.S. of the our the will flat trending few year rates 'XX. continue weeks, For the assume the full fiscal have and impact how upon to about based compared 'XX, over FX

the revenue now in growth be expected currency fiscal 'XX, inorganic of to to 'XX, more contribution expect to continue full to X. X% range the be our than the local For in X% we with fiscal over

basis 'XX continue The by optimization XX impact actions to and margin EPS $X.XX. these following operating impacts. for GAAP to We year guidance business excludes full fiscal 'XX by points expect

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

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

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

the and the range to to $XXX billion million equipment billion. the flow cash 'XX, to additions be to in be $X.X $X.X to fiscal approximately in of we operating $X.X billion to free billion, be $X.X and property full range continue flow For expect of cash

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

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

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

of Your Instructions] question from the of Bank [Operator line comes from . America. Jason first Kupferberg

I there have but start question The midpoint point the just positive guidance there bookings. and to an we wanted on in consulting a a deceleration, revenue holidays. comparison return suggest with for a do easier QX. Happy of would to growth was

guide, and hoping can the help steeper on reacceleration that reconcile just be continuing in thought. than So you slightly second to is implied maybe half maybe us then comment the that previously

Thanks, Happy Great. to you, Yes. too. Jason. holidays

in in Julie environment, and slow. the is what to going mentioned, is And say, is So our on Jason, start performance. QX. the we what we're is repositioning a an same differences spend same last that our with pleased us still with as in And me compared guidance And you XX we that the maybe our first to really the discretionary operating are things terms described first and which first ago. quarter, days that time. growth, stated, as let But decision-making as the some some of out QX I'll we in particularly same QX thought business we the you EMEA, point focused the where heard do take we of see couple to U.K., were And QX. guidance. as that's back -- I'll where start is

now, their this right you talking clients to know 'XX about that we're and now And our right budgets. expect you do we year, as so every

of growth on look math to that's in beginning forward, QX. in all, And few going confidence the year. half in with to HX, is, at be HX what the When really the of back increased we And so we with to expected. a in higher results just about what to reiterating see That's higher again, the into continue we our based our is the our again, versus growth growth talked things, start QX. start year

were then, mentioned, that deliver confident areas. also board a we're quarter. we growth Julie And business again so to a our first the that's as to lot us And in able of in quite helping we in we as bit, quarter. expected made across the and higher pivot the investments

we the that addition positioned talked that, In remains, from to changed. same about last back as revenue not these quarter, larger so the we transformation do our have of year in has our half deals,

back to that. of continue we new just see We year. we in to our sales closer the layer And to the as then get to need continue half

So we the the that very reiterate beginning guidance at we're pleased had X% the really X% to of to revenue year.

has as Okay. a helpful. expect tough managed quarter services in particularly I services And a year-over-year? should know comp. consulting bookings just follow-up, and managed we terms quick what That's second for of

Yes.

be been quarter I've basically But color us know you so and guiding for Bookings well know, I future covering really Jason, can as of So bookings. for giving lumpy. kind long. really

going anymore in we that give, I'm about to we X% continue pipeline. to demand gave feel as that. and good And business do I obviously, put well for guidance the it X% And we'll best year. full do the our the is I color would for as revenue quarter give our guide to for. the just second that So say about would to for What our think is way not go revenue we that

We have pipeline. a very solid

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

.

want follow I to to Jason's question. just up

quite which is expected Just your than now. better with large the backlog bookings, large and is deal

delays any just thing, the trying kind you those potential? visibility Have the of conversion understand on or conversions? Just seen to the of that pushout signs or of timeliness

Yes.

of just maybe couple a So things that. on

I deals the conversion impacted the be right? So by can we of that mix, mix So have. think mainly really

just haven't conversion in on start let's we seen work. the based with So overall, the of mix change any

those Consulting, of been you no and there's business, have within our consistent with no in spend been the Strategy So the we we've which consistent there's XX our talked over our no What converts that change expectations. faster, change in -- know environment, been last parts conversion. and is about days operations, change and there's with that really different then

change me the we're on to that the mean? and hear -- what been lower and will line. you're year full haven't guidance. we going not in that the our in Hopefully, to So reliant double reliant get macro to does

is that that does there into our discretionary know, have that we as Okay, all the but have spend, conversions, factored lower Tien-tsin, as impact we you guidance.

your like didn't up is revenue you I a but contribution deals. little there's a the I appetite? bunch of there It bit, just sounds me, KIC. Julie, acquisitions rhythm in quick and know with a a know them. change the your listed if Understood, And up you've with tell really been or net busy a acquisitions you change in thinking on Is here my here follow-up. the of

give Yes. a color Julie. hand I'll maybe and to certainly it bit then to going over little of I'm

from seen do know that do allows of And cycle, And can really really every more think areas is through competitive we advantage to our that and clearly is but a Just you to that and differentiator us think you've pivot a higher invest for I our growth. this as perspective, really financial I capacity us. well, investment that. us

You see we that more quarter, about and that we've for with announced have start of acquisitions, X $XXX our million XX Julie this the talked spend, strong QX.

margin and of that, expansion we're points. op of to XX reconfirming basis XX All

which organic And lastly, allocation flexible. to I this one to really think to yet of think our parts fuel continuing framework, growth. durable terms do is I really the in of see capital we're that important distorting strategy, our that it's us is

we to, see time, the we're to that to do our flex to able So our degrees while return to continuing we'd same increase at up inorganic and shareholders. the like that

think great. I really, it's So really

we're trying or there's to investing that And the no hot areas still to Yes. in sense in Great. types -- scale in still skills. we're either the change new strategies, add of

just see did August, executing Canada course, added or the and Advisory. -- yes, consulting we In skills and capital that functional. of did we're we it's We described, projects right? you we the -- like the So whether then, industry adding in in and niche August, Answer

So I it us invest the competitive no change that But we advantage a for is can that strategy. in across really would reiterate huge cycles.

You in to and where saw again, after that we we growth organic ourselves increased did the and for position drive always pandemic, year that those next the wave. first

to So acquisitions. the going AI see you're

area You of saw in great projects. the capital health U.K., another growth,

think our here we So accelerate is pivoting strength to about how growth.

to year I'll And that mention for inorganic Tien-Tsin, contribution going guidance add, heard in Yes. you this just are do that then we now me than X% more

No, you'll I'm what amplify of buy. sure you the growth

Just check on wanted to helpful. That's that.

question next Your Citi. Ashwin from line Shirvaikar the of from comes

a but proof of holidays And from spending congratulations into to you couple more Happy And nature to concept of took it's on of gone kind next of can your performance. that. first hold, I into quarters clients as wanted kind regards priorities me. all, comment, since meaningful whether become and a technology, inquire have it's and about changed of past budget sort you has year, so conversations of -- on if with only want to with fast-moving and on. AI I ask Gen then those discussions the the of

holidays And you, Great Great. question. happy to too.

more is about, is that your first cautionary the to with in first, that on market discussions having which we've a similar say is to I what what's in you happening respect what client do environment. point lots how been on So -- would budgets pretty we're prioritize of are talking around

you just would I the is environment always, our will clients which I'd And both. consistent were they is this growth, unique environment, know that, when thing script, grow today, both And cautionary we cut script that that on I our say So is helping we you But today's clients is rate what capabilities a drive It's if the focused how despite in talked building the are as finalize. really is it's to do to talking about, and them things to because say I've of course, been out in things be what used and macro in about to to they January play is right? how both able and cannot on cost in digital we're clients like whatever in is a side cost. Because think recognize tough the growth about are the examples that prioritize they're revenue technology in the the the core. of using again most is. growth. going our macro, that And yourself that

And we so then very just Gen I quarter, we're here. in it respect this demonstrates say to AI, with are I leading mean all, pleased million to first with. sales of want

million. last All $XXX And your the conversations it year, are to changing. point, of was

we're talked examples use it starting at which have to in about You script, like my BBVA, scale. earlier we

to super is Our of material we're not well-positioned. clients to plug-and-play. want proof-of-concept value, Why? out is just technology. get and not It Gen AI

technology, closer farther from business. heart cloud, think it's of that's fact, about any other away to In the of the

with together. partner where working still things right? X understand to and technology, the leadership you scale, those the strategy, We're we functional biggest position, bring value. to level, and have industry consulting the at business is order In And deeply we them deep major can rapidly which have We a and is every with changing expertise product have Accenture's player. this

value. the of shift we're positioned for XXXX we think from lead clients shift best our experimentation believe scale, as to being that and to So to the

to want Understood. operations Understood. did the also meaningfully. It I decelerate ask performance. about

flat. just think cost Is now it are that pivot you now revenue single-digit was is high maybe what's happening? reflection savings from a maybe other growth I generation Or that mentioned factors here? there beginning. to also and it's Is in a

came of in performance. terms the as quarter Operations in just Yes. Maybe expected.

some we operations. beginning at impact about of impacts the we As have CMT that the in do Ashwin, talked year,

-- see to throughout for year services be will we'll part continue the so of year. full managed may go the of to though, overall And guidance we our That's mid-single high as for the fluctuate growth year. growth single-digit the

Yes. Actually, Accenture to sweet in growth. was impacted spot which going the the I of for say to example, build way, does way going similar look, And year. it's the operations the and that cost fact, over opposite. the by both it's build is course by is to CMT, it Operations, of would the

example includes operations. operations, Fortria BBVA So includes the

are able our because both. IT are strategic transformation. about to these are managed services -- Think highly So do they typically

much as are services about managed Our modernizing.

IT growth. what modernized is tech So drives an

them the our the And in are understanding see X do really So the of that managed being context strength that the our strategic. reasons function. services and we is of we industry

that sure expertise play, strategy us. cost isn't and consulting not back we're and We're differentiator to important just make office. it So that for an bringing a that's

comes question next Your from Cohen. the Bryan line TD Bergin from of

there you us you Holidays. or and maybe Happy a expect within the And expectations around Wanted sense in S&C cuts you second quarter? in still forming those have shorter consulting and do -- occurring areas? on discretionary stabilization can to start a the SI, how work on of sense to of your do give cycle some

Yes.

have -- operating last we're we're we spend So look, quarters, And in is middle for of the down. the few said Discretionary budget the the earlier, cycle. as kind of right same KC environment right? we're

environment, economic But a a green better of look So we'll continues. you much there. what's side. on And next in there on as around obviously, geopolitical quarter, the of have of aren't lot the sort the view volatility shoots side the

is think to stay level means our is about into a seeing. what bleed how obviously, consistent going going planning And KC which so be earlier that XXXX. But for on to with macro been a question down. we in we're And not to down discretionary change being for how we'll means revenue to We just that's for into as like are said, of you conversion, smaller we're update the is going which meaningfully revenue that that planning see don't go in of sales right as revenue deals now just why It's you. not kind change when going different -- the we've spending. a while,

and -- comment? want you So then to

Yes.

what on X no expected, see in negative overall our which QX we as of for Brian, of, of the positive in terms said single-digit X. growth, growth the came in of terms was the type We in low change full work. the we outlook And there's to Just beginning year our That's year. consulting at from full for year X.

Okay. M&A. That's helpful. And then just a clarification the around

we're don't quarter, mentioned I the contribution for first, So And the M&A if full greater the first than you growth. know saying X% year. of in

X? be upwards X? are Or around of clear, we that's rounding to Just just that's

Yes. Yes.

saying more fluctuate can by than it we're the quarter. year, full So and for X

we just year. to the So really for stick guidance overall our

talk about more that. only because down, we if And X X. guidance right we you do now, are than Right. remember, we it's deals. we think deals it's gave close get good But down X, that to we'll definitely more And than

of that is So us that and we a financial to deals have get what a right above lot of now if -- going we lot -- is see to good flexibility.

So we'll that changes, if X%. gets if it above update

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

the walk offshore that of year-over-year thing Maybe margin One margin I attrition better. just so. about gross gross noticed, was why X nicely strongest Is quarters gotten that's or expansion shift? I in guess, growth, through lower

Dave, the Yes. for thanks question.

can look Well, quarter, we our throughout margin, we margin of did this in So business margin, various see that point mention you're that as to hard operating spend. things we the I that go right, that? quarters. increase and But in of expansion if as it's gross I you now out or the more is for that which but see know, terms we have the to to there's gross did year, in at might And really isolation. it XX run why million expansion that quarter. already go back variability And this basis will $XX did we we decrease

of margin, into There's as X some throughout. a lot example, we go the go that of great investment acquisitions. gross lumpy of that can for be and spend So would -- acquisitions, be some will

As also spend people their you on know, time. it depends where

improvement out but also saw market sales people the selling had then $XX.X create have. increased of that to in sales you example, which for So yes, and we we in result in we margin, is a the time billion costs, gross that had marketing spending more

why, that's end the day, business components, margin. at we the our run continue but op So we look to those always of at again, really, to

back-end Got about If I as of constant QX you. I Jason's beginning on in follow-up, just normal maybe then And sequential at get currency. X% patterns question and the the QX, to kind a put growth. to in just loaded

is -- So it quarter that there sequentially normal, gets of of actually given in a revenue. bookings half range then the than the for back year really to better low end the this and Is better the that kind of progression good parts guide. guidance the scenario the were of

Yes.

that way it right? up growth had year shaping we growth we that to quarter, said and do you we've the when range. said say fuel would think growth referencing would with expect S&C with guidance as us the strong QX what of revenue X% the than year. you're just that our again, That digits of in guidance, the you the of the you I That's the to have kind math, layered end also We more range, of when in -- that range, would would you managed is our of you go signed. digits. the see on top see. X% difference look our terms the guidance year-over-year e to deals it just a bookings, bit we what to at And we year-over-year. get to what we would our no based just quarter reconnecting talking probably obviously, that in again, then mid And growth the single this see to be way last X% we'd thing give like consistently I high high when to to services So strong with talked I of of about we're at back X% be the how our about that top see in sales at single is been X We've doing that see gets the sequential we transformation throughout. as the And range. there's bookings. end half same no we reinforcing different beginning

So hopefully, that Dave. helps,

That's helpful. Yes.

Your next Keane Deutsche from question comes Brian from Bank. of the line

for in a been ask to know wanted of a weak has on just economy I market U.K. the particular. the couple clarification there years. I

And in So been -- what's the that? and the out kind What I outlook a quarter. call U.K.? of the for for exactly it's know then happened

seeing other to challenged and you of banking in quarter. is for in to what a areas. this did, pivot to And saw in into have been really has we're U.K., And about areas particularly banking, U.K. kind the markets you we the talked Ben acquisitions why said, taking it's for big we're markets, really there couple as just of business other a we there. That's the move it which is growth that that In we we've more longer challenged, than capital years, the more example, trying capital anticipated

about long going to it's pivot, really it time. so to And it's and how think take some taking us we

anticipated year. going So do time, exactly some going more it's we than but the time it's not we take taking I'm into fiscal to think going it's to and when, call

got this diversify we've And good So see as do to we reposition a acquisitions you're it. more team. again, that. where business our us We're on going is to there

U.K. also, just overall $X Brian, that just X% of billion a have business, our the Maybe than Yes. it's about more context, little in for we bit

sure on make that's margins. we the Got comments just And then, No, helpful. it. the KC, to understand

in some the movement the quarters. acquisitions fluctuations could Given and acquisitions, be in pickup given in there

per range out particular, it in to $XX acquisitions So quarter. the the quarters call below ramp the to of to could given it have Any fall of million range where you're the of in ramp and $XX perfectly going not investments?

XX dollar that's because I big quarter basis basis or as on Yes. terms talking the kind spend, the don't want Brian, of in No, points and quarter, small a of we're you to amount that's guide to really XX points know, that about.

to the the years. just some over more bit do want you've full variable just we So to a year might overall point out have for the that little where guide us than what to going of full seen And it's periods we're year. I XX

Peller of Your the comes line Darrin Wolfe from from question next Research.

still mean, growth. it's I want touch bit think headcount still on -- a I it's still Just to decelerating.

of revenue could half second the in so linearity business And on just of time. acceleration I expectations And the the an backdrop forward? Julie, the touch more the X then are year? we what just of going the maybe the given on mean,

directionally, kind of what now could the you'd what revenue mix the maybe you're just the anticipate we you'd revisit head we're mix and and or for? of if seeing is Just per seeing the business expect demand based on

Yes.

So thanks for Darren. that,

utilization our have, people, managing our of is that of terms aboutin our our quarters, with, to people I'll of start for see terms just high number can And really in higher. manage our core as out point we ability competency. XX XX% you or levels. has that first, been supply/demand know, utilization you in the And I'll talk I'll at So last

-- And revenue head line year-over-year for sequentially. what so need in going count where hire we how and a that's And year. you're X% out as we as well need hired we in X% that you're the we the them. what our we had the increase -- And we skills is pointing with that see about we about rest for of

projects. the head value-based do change it relates nonlinearity, per and have We And mean as I automation. have So we there's no do to really the there. revenue

we while revenue. obviously There but the So people have on drive headcount not been were parts to not that. is we completely of still are to fully connection that disconnect, rely break there have, able where we able to to amount

all, seeing transformational for Yes. And of demand, we're so of first demand in just deals. to, of Darrin, I'd kind and right, terms anchor

what the standout bookings, an are here. $XXX to in spending, we at we to like do That's clients back the look you heart. heart I the million does transformations. where which spending the changes, want right, environment are at up, to mean? clients our macro where is pace so that be have industry, be of material means thing inevitably, real is, you're the So you do more continuing that to than goes positioned at that our be discretionary are want when this, That to that most we a continue in And of

McDonald's, of at because leading all exciting longtime we're it's the be to This that's to reinvent seeing a And yes, areas we Incredible go expanded company, expand. kinds work AI. times and the to big all importantly, is lot and is So the talked edge of I on the migration. it got -- to cutting technology-driven. this I'm edge Like at. at take it just script, been to much mean, of the cloud see the going take we're about things restaurants looking still that market. but we've that's experience. their cloud like still Those and just in the cloud and they're even starting the take We've partnership you're right? itself, migration this, There's of to you in what in you way partner, There's opportunity crew really to tell their what are going really in times announcing more their you of leaders that's more edge. one these to most the but how the I way the where see you, today are there. will then where go, like data done so I

transformations expecting. needle So from move the a that growth demand what perspective, to for we see the that's continue cost and we're and

from clients mix we're seeing you're do which we're a see And transformation. environment, be managed big in a AI, services From is just consulting. perspective, AI, at deals, I'll last that pivoting between so not in that's focused million reinvention, this work data. the time, laser pull-through, seeing have of quarter. the and for on all our that's right, Gen deals. our on we but to sure and mix massively to seeing are momentum you the the what million larger right? a change able $XXX not revenue change not smaller use And faster making remind and around And can to to and to same business, a been going convert in The see, of you that's in the of you're to the $XXX while, year that we to winning continue And the Gen from are more to that's much less

really all the pure Genie want be of to you very market. is because with are We in sharing we where

So pretty today ahead. and about we're excited where are what's we

really softer a what That's helpful. guys discretionary demand obviously was you environment. managed Look, have through well

how of do upside Where estimate, we think probably rate is but would environment. discretionary get is? a be longer there back? you difference about precise really softer be. would or I I mean, know normal the is when a to thought question my today an we revenues If SEC hard what run exact it's that just much give guess no we I on normalized said if So

Well, we and strong really have good strategy -- a a business. consulting

so we're resilience about positive our of that in agenda. think, at predict Nobody clients' core business is very the a not be that to business of But beyond meantime, combination and our growing. that, going to start And to driving huge we're Darren, I But is it the what growth is we rates. that the that differentiator. has have

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

comes Stanley. question of line That the James Morgan from Faucette from

to been follow-up want to those have of a asked. already ask just I couple questions that

a valuations? strategic that would increased activity acquisitions just into the on than I activity between purely perspective little better appreciate valuations balance the areas. in just And you're First, contribution. it's little about financial and X%. how imperatives like bit and a increased going those that to of better better whether you market you perhaps from more -- to push be wondering the inorganic doing, that some Can strategic talk is versus sounds you're you're balancing it a versus trying how new opportunities

is right, that I Yes. valuations, any given want opportunities right? look purely We and at inorganic, call we look organic. never purely because we better of -- moving quickly, wouldn't move quickly. or out activity I time, the of when versus market, At we at and say right, ways I this growth are where organic see mean wouldn't we inorganic to do anything the

being into capital there Advisory. We with want rigor. So we're of like so that are Answer the capture market is and certain decision. the And bought quickly, what an to those executing match right? right? categories as growth our best way opportunity so about same, think We a strategy acquisitions what's markets. And that investment the new into we the in go areas the to now number is go of That's to

our right? -- then do pivot. build it's to kick area Now in we're recruiting make next inorganic Canada, and the that's acquisitions don't about becomes organic just machine. one some a and is way something organically great we're able And we to we bought and the So that best to already trying have that to growth, that in growth to

company, about the health just U.K., If bought a is We health great right? you area. think a

then about can think you and acquisitions niche what's you all decision So go get We It's and way that's and acceleration help just acquisitions to often that's new what's about always or rigorous. you've both today, cloud the market So right? And at it. about organic to where that's way organically scaling supply always that the of there you and consulting those adding inorganic into massive and phenomenal inorganically. chain, after to that's industry. and I diversify, how opportunities growth. we want like quickly driving talent is a the have best extremely areas, to and us look security and market through say, And inorganic these got do where fastest and if saw diversify some a

the very wins. not. of it's is that a our And in did these we consistent. in enable we when So year resilience to to others We've actions do that last really positioned invest well way. increase we And to us disciplined why kinds be are environments, doing been it invest companies business believe and like very

is about level bookings clear similarly, incremental they And there we AI spend that curtail trying how cetera. going clients they on given you're et What cetera, Just contribution, be this that that think change as that a within some looking and to allocation really that build, that. the bit Are projects to talking appreciate need and it little or are of versus AI versus use just a right other to budgets. at I AI trying in it lot incremental investment et are continues are of to spend that should acceleration color. an offset great activity, making technology? being think thinking when about the of substituted they're That's they to now? pace how hey, -- activity other budget in be in initiatives, have kind to thing, of we sooner? maybe about to the Or as,

Because right? we're we're market -- now, lot reprioritization, Right obviously, is market the of mean, growing. seeing is growing growing. a like The I

for more cloud. Gen you're in a that saying, they're everybody's on within hey, mostly research, technology not the spending also use fast is on as core as our it order increasing. increasing. is of spending don't ago, research more the spending that, AI But was So And have increasing in not in to data have on It's estates lots right? companies, it's prioritization. data more technology AI. They spending digital seeing -- many order of increasing in the couple years is So building don't the because companies

building on digital think So enable core to well. a of it as a real as focus

It's market So where is prioritization is still spending about more growing. of that going.

Okay. Great. Thank you so much.

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

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now disconnect. may You