DXC Technology (DXC) 4 Nov 222023 Q2 Earnings call transcript

Good day. My name is Savannah, and I will be your conference operator for today. At this time, I would like to welcome everyone to the DXC Technology Second Quarter Fiscal Year 2023 Earnings Call. Today’s call is being recorded. All lines have been placed on mute to prevent any background noise. there a remarks session. speakers the will question-and-answer be After [Operator Instructions]. Thank you. now would the like conference I over turn to And to Mr. John Sweeney. Please ahead. go

and I'm everybody. for Quarter good you're Year you, Fiscal Call. us Second DXC pleased Earnings XXXX joining Technology's Thank that afternoon,

Today's tables the required Technology's now introduce to Mike? today call Salvino. provide includes useful law. this Sharp, of Form Chairman, to to Technology as and our at and assumes Ken release the investors. be Mike those will these forward-looking. And results EVP believe uncertainties respective XX-Q update on like the the found could Certain in and dxc.com/investorrelations, comments GAAP we webcast and differ known includes like no included call report included with being which President slides webcast with the I'd DXC the A our to annual and accompany CFO. filings. discussion and be by presentation reconciliations and in the call. President are in on the on other we is Salvino, listeners the today. CEO, SEC financial CEO; SEC measures except we from webcast These information materially and and I'd subject in that call, non-GAAP cause reconciliation to our uncertainties, obligation a actual risks remind risks to expressed on today's speakers of that, will make to statements These measures, that DXC In Chairman, comparable information directly be Mike discussion presented measures. will Our is provide the and earnings accordance our slides. most their our certain This call rules, can these in which

our QX I with I well. results. doing you of John. will an your Today’s begin agenda joining And the today. hope everyone call families overview Thanks And appreciate and are

Next, I transformation progress the making will on we update are you on our journey.

producing results accustomed will the remarks show in QX back grown make results finally, journey closing then the of before guidance. is more questions. financial detail Ken call opening our kind Our discuss up will our some I results that that we’ve our provide and And for transformation to.

since results is QX revenue, DXC. and that billion for non-GAAP QX, revenue were our we've negative margin at In top organic at one a EPS end best Our the the and EBIT been adjusted of results was quarter Organic produced I've organic guidance. revenue $X.XX X.X%. was revenue all of for

improvement a EBIT adjusted margin by compared was Our our basis XX driven our optimization cost efforts. X.X%, point of to execution QX

Our EPS was non-GAAP $X.XX.

new shortly. on in was that momentum for comment was in we these book-to-bill plans. of I'm more And The to to book-to-bill GIS sales of with and $X.XX. we And are numbers model breaking importantly, of our continue look QX back. with QX, track have reflects driving at work we the XX-month $X.XX. trailing trailing kind to revenue GBS XX-month I grow means both the shrink QX GIS. negative if in over see one Our book-to-bill declines book-to-bill execution us pleased how our and that Overall, I our still a and we the delivered GBS are have on new will

So color me journey. additional let you give transformation our around some

remains The inspire is control. step good our is to under The care colleagues. and well take attrition first that of news our

together, customers. care team doing These for a is this of demonstrates our engineers top taking create customers. recruit know in sure that and we're we engineers of innovative solutions software changing them. developers retaining like how and DXC. and making the the GBS The are highly Our is market, software after for working and job developers growth leadership culture sought all who We're focused great to retain it's we in customers as reason positive and can clear of and talent we're our our we're recruiting our yearly people, was our my here on value recent well our top organic promoter industry sequential services. impact make our our business In helped driving QX XX, as that on we score. our us step revenue The revenue. is score customers customers. most revenue benchmark, on The for net above minus NPS of The our to has growth next achieved X.X%. is And focus the end key the metric delivery that value place stabilize to organic

We've customers our quarters delivering GBS was six of results organic while GIS levers at since grow This takeout that for our X.X% cost of QX. GIS made XXX our in and basis pleased growth all revenue for on million of to XX. over the improvement Our minus last customers negative in focus best has revenue I'm earnings to the organic I've enabled consecutive XXX we QX delivering. point taking been us and to for report DXC. five On progress on shrink and call, to committed And colleagues. care we're FY

levers conversions, office network As party and centers, third staff telecommunications and a optimization, reminder, data spin. contractor the and are five

[Ph] manufacturers. automotive based works define This a automotive in market as our our FY revenue FY QX far the allowed means industry, to sales costs. in GIS, a to selling. track last model This leadership and the which team ‘XX on X.X% our our margin decrease selling we two again, organizations. and hit delivered I so sales and In with believe is progress we to we goals. delivering of cost sees them engineering between I different two sales as earnings the area as our our customer from us organization distinguishes The Our In on helping executives testament XX% This in they expected. GBS increase plan value, the over on is similar team all call to new to mentioned of has on are focused GVS of require margin that my model. leadership ‘XX. had expand relationship QX And the implementing takeout team. team businesses X% is we're a

Software as and the driver Groups our example with the experience the of in automotive connects improves space change manufacturer. is in-house defined to of development to one is this vehicles it CARIAD, software Volkswagen relationships An software important automotive the increasingly company. The with in-car

group's cars. develop across XX/X will be We the have and a scalable connectivity, Drivers most to experience their values will lower brands. of higher maintenance vehicles them worked with platform software that adopted Volkswagen for uniform, downtime for residual

oriented engineering are RFP-focused best one for development changing is that sales perception. this but kept we're and capabilities of software our value toward gaining engineering In As distinct our price secrets highly firmly believe which see, organization the you work drives can our customers. competitive. selling, our momentum GIS, is I

GIS. continue bringing to a sales with We implement discipline into we deals approach are the

and we with against which as pay us market. sales that XX% strong renewals. on you seeking financial the out in new customers have We're us gives see work I'm we're us competition reputation. with sales, And Our this the In DXC And finally, was one of delivery GIS, be new belief path the steps see the make disciplined new our off taken discipline model and the work new pleased of see demand are quality because will continue a for with this we is foundation total to results Overall, our to our internally, of versus our best confidence approach we sales quarter, can beginning our to GPS GIS. company. yet. right accelerating

two are that capital allocation steps to our Our debt and highlight. would like I

billion. We have debt our target level X managed effectively below of our

QX debt in $X.X cash February. buyback $X.X was shareholders allocation, in Concerning delivered we QX. we to announced since billion million of program have down Our in capital from billion our $XXX back

I call to want issued press over I October before a the Now turn on on X. comment release Ken, we to

potential sponsor acquisition to approached fiduciary in by with we DXC. preliminary are shareholder have and of our financial sharing maximize We responsibility information. a engaged Consistent been have a value, discussions regarding

been by do comment any or be today directors. to not are that on proposal there board as assurances of We received. no However, has proposal further matter. formal intend our adequate will Also, this received determined no

As customers transformation for on QX can our focused team delivering our remains colleagues. and our leadership by you results, see and our journey

the turn to me over let Now Ken call

Mike. you, Thank

cash progress, and respectively. flow non-GAAP margin six continue QX move at end for $X.XX point the a free organic first top of to declined on per better of range basis forward our Adjusted key us earnings a X.X% Free quarter. little we initiatives. cash X.X%, the our were at Turning the EBIT million breakeven than XXX first diluted leaving revenue year. of months $XX and to guidance flow improvement our share from the

last to be We end FY free flow similar expect our will back ‘XX year. cash loaded

year. over As million you we delivered cash last $XXX free of flow recall,

FX income a XX XXX on we points of basis basis exiting basis XX XX Russia points, slide lower from to Moving basis, points headwinds points. XX margin pension have and about year-over-year basis

margin Second anticipate to declined optimization cost sequentially. gross basis gained basis lower decreased sales million points our up improve decreased points. We due compared XXX per basis about quarter gross lower as in Other our quarter. year by income non-cash basis SG&A XX will points of prior third optimization Income and XX by margin efforts to point cost our by XXX quarter the traction. as percent a primarily efforts. $XX was driven Depreciation pension is of

$X.XX was due a pension dollar and declined to from These XX and XXX impacts at by offset is an result, and level. year $X.XX points compared interest unprecedented income, basis $X.XX strengthened EPS to to headwinds, due were impacted As share count. lower adjusted margins. $X.XX down FX $X.XX partially to lower The rate, margin U.S. $X.XX from lower expense compared EBIT by from has lower higher tax a basis year prior points was sequentially. up prior

to flow flow impacts XX% negatively Specific impacted impact $XXX let's currencies global billion, our The debt million to Adjusted of to points by $X.XX, approximately the EBIT reduced headwinds by revenue million guidance. full million. $XXX prior year. profit FX impacted impacted and U.S. $X.XX. million, quarter, EPS negatively the by cash FX million. approximately by XX Given compared to $XXX be our in since is $XXX EPS $XX our prior dollar. refinancing. QX our cash almost than expected basis of to $X.X points, million expected basis prior by by of increase nature free EBIT XX be our the by for to year is impacted About margin. margin the is is $XXX FX context compared negatively business, year denominated a other expected and be from to by adjusted debt FX Revenue put

Let's turn to our segment results.

grown lower consecutively analytics the revenue margin GBS capital year-over-year, intensity. of mix GIS see basis GBS our six We mix increased GBS and basis portion in higher strong continue total growth. was business points becomes of a year-over-year basis basis increased revenue. points grew margin higher GBS XX of as DXCs business, to focus. down has to value margins larger which improvement with basis a Year-over-year profit points decline and XXX organically engineering GIS our by revenue and points and for XX% sequentially. organic business the GBS sequentially. to up points declined XX driven quarters improved our is XX though X.X% XXX X.X%. profit The is

to GB. strong insurance Applications engineering automotive, starting and seeing XX% X.X%. X.X% software markets with project lower Analytics capital its Turning six BPS up our growth is is offerings customers. organic with up banking revenue, notable and and on declined strength continued he and

good year was down better impacting period quarter resale than had X.X% that security was GIS as Cloud IT XX.X% of decline Moving prior infrastructure our had outsourcing a and performance. compare. offerings, expectation. of revenue with higher strong the a a to the is volume This our

declines to revenue two the in down As we we've and XX% years declines underperform expect We workplaces our was continues and the just made modern Modern right moderate. saw XX.X% expectations. almost workplace to believe ago. investments see

is $XXX to slide financial down term debt entered additional of XX, that on provide $X $X.X target into debt below foundation to financial to loan flexibility. undrawn our million Turning billion. a level billion us our recently and is We

expenses. TSI half first in expenses of or We for continue the totaled the $XX and million year. $XX million These tightly manage to our the restructuring quarter

We our expect in expense see to half uptick optimization of the on second efforts. the an year we execute restructuring cost and as

with costs long You in matter associated reserve substantially the it from with compared merger. originations XX-Q X.X% driven estimate separation primarily related relates these company's note the disclosure should on-going Securities we a our lease disclosures in Capital SEC. an million and to This best the historical revenue of we disclosed capital of leadership, non-GAAP of I expenditures The as with our Exchange the will time and the reserve matter basis integration X TSI transaction, year. points and the the the represents potential settlement prior while Commission. XXX down to associated on our standing as note measures a were with up quarter, based increasing that the expenses. discussions percent of have under in included expense

We Capital cash capital and continue flow. term a significant Leasing expenditures to examine as our intensity capital our presents opportunity to improve long

million $XXX is on Our track. portfolio proceed shaping goal

As have we regulatory our remaining €XXX we one disclosed, approval divest banks to for previously million. German

disposal thoughtful our decisions that returns. on traction on As gaining facility we data asset results. generate proceeds. may of on facility to as sell impact would review to that These portfolio, create sales centers continue facility been have underutilized we execute expect losses virtual The will sales additional and $XXX and non-GAAP model that our identified our we incremental we've million offices make cash

does we a in any extent from will As sure break these X separately our sponsor. received in the for to the the our did shares due estimate to guidance to losses, Related quarter we any out billion future they interest to occur. not not share repurchase be repurchase, these financial include

are repurchase. share the you billion As $X we halfway know, through

to $X.XX X.X%. to minus guidance X% billion the share per for X.X%, of EBIT quarter, to to $X.XX $X.XX. Adjusted to our third earnings of margin minus organic at revenue growth revenue Turning diluted $X.XX non-GAAP X.X% billion

adjusted a margin revenue guidance, in $XXX X.X%. of to million due X% billion range EBIT billion ‘XX to Organic reflects FX. minus FY minus X% of to $XX.X revenue, Our the X% reduction a $XX.XX to of decline

held customer $X.XX. banks. about half We expect impacted of second optimization the cash flow of cost year flow to margins improve deposits negatively Free diluted accelerating our Non German GAAP million to the based per earnings lower of our through of XXX has our in been on $XXX free efforts. by share million year-to-date, cash bank $X.XX

don't Our deposits change. $XXX banks, million. guidance unusual about movement Services deposits traditionally customer back and assumes create an to bank it can companies increased bank flow cash customer $XXX million free own as

We turn thoughts. his ‘XX Mike for are call guidance. reaffirming our that, FY me final back let to the With

you let a points. few Ken. with Thanks, And me key leave

for have goals. are and expect have the recruit revenue. to we of our As ‘XX focusing drivers expect achieve optimization our executing efforts example created our and I the demonstrate, stabilized our retain customers, engineers and execution to delivering developers we our our to our we repeatable talent. to our results of that ability QX Because Like we cost on expanding to Due Due software top and journey, continue. following team business. experienced mentioned. momentum our I the by our Also, ability margin. our to on we to FY leadership transformation have deliver are Due culture,

These of shareholder financial drivers work repeatable distinguishes is focus confidence between achieving will gives company foundation, operator, our the the goals. now And versus and in sales that our and accelerate versus future and us business FY model we questions. open us allow new my value. for up the that With on created ‘XX due driving to quality leadership the past our a Our GBS call GIS team please new help have renewals. to

Thank go Instructions] first ahead. Our from will with you. Bergin [Operator question Please Cowen. Bryan come

for this the Thanks, front. progress on Ajzenman on Bryan. overall revenue organic is Good Zach

one below on number question quarter the was the in first on bookings Our book-to-bill.

to one four quarter I explained think the conscious last ups. result by sub was push three deal

that was to the then above result was there end sales expectation model, trying off, else all something here? this better first so due one letter deals to closing was So new or XQ during these up quarter, and the understand just the

we're really new like the Like what model. here's with where disciplined with doing doing call, on to I'm here's, look, be said I sales GBS enables us at. what and GIS. in in totally work the it we're accelerate new I very Well, the

I'm or looking think this three starting quarter. So with what probably in to two quarters, now the book-to-bill, the I've the when I XX-month, about trailing is both for been at along say

up just quarter from let's let's So as just you next. it one the take went to

trailing well look exact quarter, we X.X one. last from minus If was And to did seven, to growth continue point the trailing we drive we And our drove XX-month delivered over a and spot. at again, X.X. the revenue quarter, XX-month eight, you minus to same at right, expect over definitely this so X.XX. we're And All we in one, we're revenue growth. is and what

and one. we I definitely want roughly And over a So I deals we we're focused putting comfortable, we're look think GIS, then when GBS, be the can point on business. afford their I'm keep X.XA. now and right, patient. in I very is trailing in, billion can right sales the got that definitely discipline afford XX-month coming because book-to-bill new And the on In all the backlog. of is $X my model, we've to at to top are

we did months deal last about you of you And question a the terms about the is that working three on over in got And that tell $XXX your six what today. tell to deal that will better the been four, I've Now can million or they than we've I close We definitely economics one. that the I are expect close close? and tomorrow. definitely deal

guided feel about Hence talked to we terms I've the for the still QX. way book-to-bill you in of what that very that's So did comfortable. we reason

didn't gears that's on switching it to the really the anything Got hear weighing of incrementally then way performance. macro, in over helpful. And macro

services clients potentially impact how or just performance. nature you leaning comment can are into perhaps segment of So and that that the on here, de-emphasizing

please. applications, level from on the deeper digging clients and you're hearing into high macro little Just amid segment what thoughts potential a

the is give We when for for on continue growth, look Okay, definitely in have demand. going is got would well, you which focused one. thought is see environment to to business the that hit we've I I And a us this. that was at us you color what with we're GBS, thanks see to the analytics hit question. would book-to-bill and if macroeconomic that you it The was over XX-month And engineering. going trailing

XX%. You growth also of see

about seeing that people definitely speaks When we're we situation to like not infrastructure, talking example. the In value where quality savings. the gotten modern So we think the what the workplace, the business, backup. I we have of can not a deliver But CARIAD only seen bigger. and GIS people have more cost want you're deals that

the are taking the reference. think making bit little don't deal they a bigger, but of And that's because So conditions. deals macro yes, it's I like longer, I economic the

I we more on approach based say think are do the to discipline to deals have that better are it's deals today. our we going than

So those Savannah, next questions. thanks two for question.

next Citi. our come Shirvaikar with question ahead. will go Please And from Ashwin

guys. other good you, Thank Appreciate all there. commentary the

certain numbers, I you where it? back regards out new sales force can sales going all overall with sales, sell Salesforce relationship talk your going GBS you Could provide with granular any Anything detail sales to in granular your with parts of commentary to, Just would Salesforce piece new because you you could the Can help. come. your target, are that's to understand to the the Clearly like adding force, selling cross to is that. you are the more detail the things swapping

Okay, Ashwin, thanks for that.

Let's GBS talk first.

pilot. example well, the Ray, doing Ray folks talking going what they're And value, to with that gave the doing have going then August got in strategic sitting I'd literally or provide in that how all across about adviser in drive that over that look more we that they're the are leads say what grow other we're you can out is we're for there, that who you've the decrease These I almost space, we projects take call That's Salesforce industry I a sales. to where you about incredibly there want what together, they're got we're pieces a insurance relationship can to what my is industry, you've We're I'm what or past. be industry. as do. in talking and people when automotive sketching are to then how cost. folks client these see senior literally And will take going we the out A&E know, what these business, relationships can should know, my and our sellers on are let's folks like they have time, piloted, client. there, GBS project Ashwin more in to you that revenue you which used So what's And instance, can that then

workforce find takes expect the Corcoran that you to that months I those Now, continue Michael something four to Ashwin, a to three as to to exact and have want. that adding it. to folks time folks, last add been now Ray long for probably is it But you know, the

to because be So patient, again, we but to I workforce, to think have we going it. to add we're can a afford continue decent

been It Okay, the a is focused. that reverse terms GIS. very of in focuses us we've is to GIS, RFPs. on carrying workforce quota

here, And focused hitting numbers are around negative unheard now, see guys quota, want? kind we have So point for the three X.X% been being deals of or your discipline being ITO instance, you that two the years at and ago. you and of why you would very that's I'm doing are

you than get to that deal. the I deal and and it's the close So significant example typically on don't very it's about I about better And tomorrow, you can a of have gave economics disciplined going putting talk that's why we're on I that today. but we're I'm earnings top call the being tell work a an

So little color, hopefully Ashwin. bit you it a gives more

quite, Yes, no, helpful. quite that's that's

more Ashwin, thing? Ashwin, one Can I say

Sure.

Okay.

the that The ago, all focused didn't you here other originally all you off. three give would is I sure the that I when on remember so was revenue run years color making revenue Salesforce runoff, came

what do sales in GIS. generic versus shift very just XX%. renewals. the out called on And new of It terms that's call businesses it mean? the I the of Most We're out was That targeted GBS renewals. running that between on force is two that why is not focused does to focused I why Salesforce work. being what anymore. what trying we're That's So wasn't some because

sorry Ashwin, that. So about

Sorry to you, interrupt was too. that I key but thought

for good. all That's you that. no. No, Thank

of Just the back -- in to the terms book-to-bill. just -- the

sort of what's Not talk clients of coming we but As about you're coming in because disciplined -- Could to going are because being decision-making they want that's fill pipeline, the that quarters. do, out? any careful pipeline, to of being the being think book-to-bill health don't to do. right, the pushed what want with you that

If you could talk that? about

Okay.

reversed, would So we're The we're GBS GIS both that We're seeing healthy, I that to tell your The pipeline is And is and performance our that why very pipeline pipeline much you the pipeline on competition. okay? you grow harp are pipeline the deliver GIS customers. that's scaling. GBS work filled up of piloting with now okay? on I so for based have

you're us, get be want not talk and never has seen in the GIS they And market new expired, you're contract to the their coming your to disciplined. what going to space before industry to the If is Ashwin, customers, for affords which delivering work. in are we've deals us, to

printed best proof So at X.X%. growth for grew GBS total company. our worried this the total really GIS is Meaning then the pipeline. again, -- about the our total I'm and minus definitely we we're we probably not again, X.X% second best about at minus the and I'm what printed either, We for -- quarter. in we that's not worried book-to-bill point And

well are So our focus think hand. new work in is renewals now the I that because

hand. the in revenue well think is I

growth. Now work on our it's the new and attitude. focus That's time to

you. Thank it. Got

question. next Savannah, caller, next call,

from will question Ellis MoffettNathanson. go come next Lisa with ahead. Please Our

Thanks moving us intact pieces my year, that of a how you million get help fiscal year or bridge. into I guys. this outlook see, also you looking for to to the back-end that aspect Can year. next out but know million afternoon just free of not Ken, the loaded only fiscal billion in for kept $X.X XXXX, there's that dig in going good there. you. at $XXX for billion? $XXX this question. Hi, lot you $X.X I Thank wanted again on you flow I cash from the again bridge taking know outlook on

Yes. No, that's great, Lisa.

things, cash about consistent this being of of free the flow couple We in last very year. back-end half of $XXX year generated a maybe talked Just We last right? with loaded, million year. current back

number with half think I We $XXX feel of that year, this cash a about in pretty outflows So we of that. discrete happened the comfortable had first million.

commitments. And I of linear, when looking 'XX, $XXX cash would you have seasonality look prefer And cash improved TSI. the not think second it half, certainly, the of but but I more with have comfortable half, million restructuring to first a we're the mean, guide. be So FY I work continue to are we certainly, margins piece then uplift, through then the of in big reduction to sitting the our far of we're just how GIS side running course, signing our new you CapEx that our closer business understand deals to CapEx and peers, on and the it's The GBS of to peers. is, down X% higher X%. to when it, than And period. making minimum side, at And X%. It's, call XX%, given any XX% at which are come look the XX%,

have we've We're course, bridges simple look executing got billion. capital, back as $X.X to going It's the at get we enough think So as I it, that of that. keep plus there. working to as to levers we

and let me a we focus collections year we've focused sure So that, last to is forth. the and got we the if is that smarter, the at right add of a have 'XX. did making that more because you year nature us look team a loaded back-end on now so is FY now year what And

up, You X those done, numbers and $XXX we've plus $XXX had already million what that's you're million. roughly around

of sure half. a lot of the the that in Ken has finance what think we're lot going in making that a comfort done us terms we've And gives gotten the of to expenditures first job So out of I look, a with do. the great way team

our a to second question? have question. be would your that you Do answer Lisa, So first

of on the do. I down question mean the impact and organic few X.X% best over in years a the end basis, that of you've the at results just revenue as on also I had you left range but I last had revenue one you an outlook outlook. XQ. your XQ for came highlighted, upper in you

you this do for just you wondering, just outlook saw trajectory quarter? given So the or positive see to XQ that upside --

said, has. I team than the like a I business knows Look, think it lot a we've got now management ever better that

we only do about entire is 'XX. Savannah, with everybody but to I I the momentum that for think guide, a And printed FY So momentum what said, also -- because next continue. expect the very like what Lisa. that our our question. comfortable you not we I for is execution like Thanks, I feel seeing just back, have QX, and

Yes, question Bourgeois DeepDive. come our from ahead. Rob will with go Please next

guys. Hey

So I specifically, love the ITO of hear to ask business. ITO the your in to enablers decline lessened you're on legacy comments seeing Any the would that wanted business underlying about that and on the ITO pricing, those add-on might in enablers that to business. be contributing also in for ITO stabilization workplace work can new the applied in logos, that near be color and future whether

what, delivery Appreciate that is, Rod. look, or isn't at X you. we almost, nice would ran what it years our Thanks, Okay. We X tell on staring And X.X% the business. kind with playbook from I be network. the XX%, of global question. It's I'll scaled that ago? you honest

in piece not we're appropriate sales if approach. take in the centers going then people take in the look, is we're really deal the or can't forth. the so data not putting think to right a it the market, to data last deal what get to We're it. sitting Ken about better So we're to locations Meaning, the And sure economics I right what consolidation is starting that just the done the than we're on is going manner. get now and make right? that work the right appropriate the disciplined and literally centers, after talked

the we've playbook. that's So think a patient little at And might And it. very be approach think I that had with continue, lumpy, but a well I bit is hand. we'll

because FY part have on would our to targets. how know go doesn't your going Look, testing right to low that, 'XX your FY a -- without organic in turning of to question our quarter, X% our it patience that testing at of this that's modern modern revenue is target, the workplace. end want patience business grown we workplace, Now which unnoticed 'XX second people lot we're of to my get

where that Rod, with We have it playbook. think you get significant we second works. staying that's we're we're question? that can and business, do increases think We a the in going. So

The on I had the you're the of mean, macro lot has last there plus now. uncertainty getting a book-to-bill Yes. soft the been about questions follow-up, couple of -- got of some quarters you've out you've side,

questions getting you're that So of lot a on front.

revenue you're guess new that now elaborate is, on with specifically new sales just your you off Can seeing based internally in you that what So I the question sales work the mentioned seeing on giving internally. encouragement model trajectory your sales with my model model? pay commentary that's you're you new

Okay.

terms. better stop. means we're sure margin. economics, is what That full our get we means That seeing better COLA. internally outlook That deal in means So making terms long-term better means delivery. better That of

now, competition dealing we're these the automotive that different very, about we And talking RFPs that literally we can against doing. of that in are people look, providing on get competing in good. We're procurement. at in don't into And know just a direction goes example, best-kept to model. it And you're right workplace. is these when we've I they if We're on for at and in And you one it needs market dealing spot X with what of different. to the from secrets, I wasn't now. in what what's that wrote winning executives That's years you we're our clients, hopefully respond the the market. definitely modern impact definitely for heart with car, is middle these right been the we're you're a healthier cockpit switch the was lost gears, we're because you mean That's GBS of software several That think come. So with automotive the been my happening All manufacturers call. value. perception totally right, changing senior the deals the that are right with Look, heading happen right don't the of at ITO large the has right, deal so years. and very always why next. Rod, good comment to to GBS,

delivering numbers industry, And at. you the to of you capital customer where say that what we're can to last is while culture, you then for we're model reason position is out, be cost the our existing, because we in, trying repeatable it, don't because repeatable seen And debt in like material we're allocation, get were foundation, weakness to ultimately to our I if competitive sales have drivers, stays very financial I again, customers, the team or can't drivers So that a.k.a. the all with call where our that in the we've doing. to, that sort done of I I just piece what meaning come these want was to governance. take not high. back the The IT a which call NPS to have the get

got So company, more is my team and weren't with lost dealing look, I past. focused than now We've on quality my a like good it. I the comments also the hope that future

gives hopefully, I question. and color, appreciate you little that Rod, So the a

cool. Okay,

Our question Please next go Bank come from Jason America. with Kupferberg ahead. of will

Jason. Hi,

Hi, good taking for evening. This on you for the DuPont Tyler questions. Jason. Thank is

about I clients particularly, margins, was if wondering conversations could you're bit to with you a having more pricing. relating talk around little the Just

at around And XQ looking the previous made guide push the for. midpoint. kind didn't bps you projects looks You've right like mentioned you in quarters, were XQ the that decisions pricing is of conscious XX have to out it above

you how on or at additional price to use? leverage to all, you So pass continue quickly there's what if if or increases, any you can have do extent think to available

Okay.

So talk and GIS. we -- let's GBS then

about increases, market. that's software price seen and we've scarce just developers GBS, engineers We how the So and are. those talked

over doing that day deals right were done. space, takes they're talk our on incredibly to in us lot it Meaning literally the we're is deal that and market. what a qualities, our you And of them done it sitting what we're was for clients it references a stacking market, age. can environment. Because show how client today's When the price-competitive the literally and up time, GIS, we exercise saying do, to sense our years was because our all willing through very against are it ITO So basically well. them On appropriately, keep and I ago capabilities And is we're any in look about that we again. doing increases the to then go doesn't make value over a who's the of to with have now price in is the right? at and and priced not delivering

working. But believe hit So may that growth we're to trailing at people to look if that's and -- we're at to again, fuel continue long-term Not to and short-term because us it's going point quarterly book-to-bill. both the only XX-month game play going targets. and fine, and the that we I our I that need to want help

what's may to macro, the appreciate a there? had from I geographic know your And a follow-on. of know that that. that some negative had mentioned standpoint, Eastern in to specific ago Great. think one while Europe. from impact quick have of I Okay. and know trying macro progress in you've is segments. out just acquisition given briefly there with Luxoft you've mentioned more the I happening you anything But call you that,

any So just there? thoughts

very I situation. close we mean, look, that to stay

Ukraine, care region. is increased unfortunate It have we cost situation that a what I you but in very people. we've a think our of done that fantastic haven't or with seen job taking

a can you -- the team. very is that piece continue business major that again, grow So see to is book-to-bill A&E And of along healthy. Luxoft and with

Thank that. Great guys. very I much. appreciate you

one final Savannah, problem. No question.

question James final go with come Faucette our will Morgan from Please And Stanley. ahead.

you on appreciate taking James. the I Jonathan got for You've questions.

the may that which cycles you your in about. of in that First be outlook through how decision talked one Can areas you you're specific you contemplating seeing year? lengthening will for the that talk and be on sort

Give me that question again?

you're had in And rather for decision specific that you the discussion. which how you're some you in lengthening outlook? or Can that for So talk seeing mentioned that how areas -- cycles your you're accounting account in? current earlier about taking

Okay.

on decisions lengthening about deals? talking You're

Correct.

what Okay. Is you're that saying?

that done at that. GDN look, the That's feel I where spot can that good our center. business. what that to all is into mean So we've as disciplined so messaging our take literally going business consolidate us and I what And approach. we're we is a to baked to going margins. really to to as our we specifically, we've I'm the us to going It's data to you to help continue that's continue simple it. It's mean, continue that's a looked outlook. it's get GIS help about drive us to going help to And continue that scale

been into been year, definitely since I've into And the So back go approach. baked if our what talking is. guidance baked the yes, and that's yearly year, about whole beginning at disciplined look what I've of been saying you the all guidance right? it's the this

through want and it. that around hiring. delivery, Got And scaling global on to I point talk

dig you into current environment? how the in then can inflation for wage talent competition about potential you're So and thinking

Okay.

talent, piece It's we we GBS. lot look, my what prepared high-scale whatever have highlighted but the you usually in people And competition for usually, is can is on around of competition pay So the focus that you across board, want. a literally -- it's remarks. the I in

during situation. culture Fair that's we that also people we've especially cared those that's in right we culture, have keeps put we It's how put transformation folks team people wages. way been for not it. not the Russia/Ukraine very around. my on. of That been And what stay And COVID If about focused I'm the the since culture focused It's you enough? just don't around. the the together, has journey. think the will proud on the

Mike, Loud appreciate it. Thanks and clear.

that, on got momentum And building my today. our because with short-term execution confidence back. I joining with appreciate before I Savannah, our and long-term the that, journey and goals. look, is and I to our transformation the what focused results, the business And Well, can that finish right. QX close call team the call. what future for with hit All that customers you versus leadership we delivering please we've drivers our think allows is these past very it gives I of repeatable our now us call the colleagues. we that would the the call everybody can both We're focus see it's on Along close

disconnect. And your conclude for you and may today's now you that Thank will conference. participation,