DXC Technology (DXC) 1 Feb 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the DXC Technology Third Quarter Fiscal Year 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator

my Sweeney, turn Investor Head ahead. please now to Relations. call Mr. go John of pleasure is today's to over Sir, It Marketing and

joining afternoon year fiscal earnings call. pleased Thank third XXXX everybody. and DXC Technology's good that you you're us for quarter I'm

we will Our the at our reconciliation includes This CFO. call today's could will being in the webcast call this be Chairman, the of in Webcast with release useful GAAP and believe Salvino, our accompany a and speakers to be and SEC found and our measures CEO; Today's which that comparable certain provide reconciliations EVP Investor today. on respective their dxc.com, information slides Relations. investors. financial President In earnings non-GAAP the and The in today these provide tables presentation webcast most to rules, Mike Ken discussion slides. we directly Sharp, accordance is includes measures, measures.

our on the call comments to known the Technology Certain except A filings. these our XX-K listeners uncertainties the presented subject on actual uncertainties, the is could assumes which from expressed statements update information our quarterly that and no results like as to included on risks in by report and call SEC forward-looking. DXC now other Form cause These of those we I'd call. will differ risks remind obligation are materially be discussion on to and law. make to required

introduce CEO, that, President Salvino. like Mike? and to with Chairman, Technology's I'd And DXC Mike

free doing an results, record flow of our that you exceeded I call the will our strong and with begin joining all drove cash and with everyone and overview appreciate I agenda and your execution along EPS are families Today's John, margin, expectations. hope well. bookings where QX Thanks, today,

before detail it strong discuss and results. financial results and us Ken our more will for has journey will in our up guidance. questions. finally, make the updated how I And Next, then closing call will discuss I helped opening remarks provide transformation our drive these some

and year. was was were In the in the half billion, first of of a QX, the weak $X.XX organic X.X%. revenues negative bookings revenue direct This our result growth

However, our sequentially, quarter three FY all have that and second the grew is for in of constant for dispositions the same revenue organic consecutive currency, XXXX. we it level revenues in driven excluding quarters notable

strong Our cost EBIT the negatively X.X% in to QX, adjusted optimization while QX impacting from execution X.X% our increased customers. in efforts not of highlighting our

Our increased non-GAAP $X.XX. to EPS

I've is book-to-bill CEO. X.XX since of strongest the been results book-to-bill Our

by QX quarter hit we of strong all of for almost us. over book-to-bill six on deliver showed X.X cylinders This our created has Overall, good momentum and having offerings execution five out a

of results. So at which core these additional our now you transformation journey, the color we let creating is are me around give some how

The and first of is to step take inspire care our colleagues.

Ukraine, We culture care attrition are we proud our taking our be we by their roughly we are impressed colleagues resiliency X,XXX taking efforts DXC. due change at how the the of and continue and take to families are our I and care am our of the of to of seeing in colleagues their customers. way improved to care to

our care against Score. metric on a team next here is to customers. has journey our Promoter of team awarded focus prestigious our my execution. to just step organizations my to in in significant adjust key continue to Net on This add the transformation leadership had XXXX, for deliver I our The efforts, The Certificate awarded of exceptional most our commitments. want is has XX, Singapore. growth our President the to along their in which in DXC, COVID-XX. and were driven constant NPS the people made organic look leadership as sequential industry impact customer we COVID-XX, Commendation honor that take currency for row. solid And of with we recent quarters to revenue men continue was fight and women delivery in to end Concerning near the benchmark. top thank the score will continued we two This of a Singapore's And and

we I to highlight for and similar The organic level fourth would all constant level. key FY quarter a XXXX, thing quarters Ken at now is revenue like excluding the you have hear that we from roughly three dispositions in of in same are to that guiding a delivered will currency,

several see margins. Now this This working. past declining growth. continue is have strategy quarter revenues GBS, business is will years. consecutive In great GBS a accomplishment for you the expand with GIS seventh we for revenue the to organic as our of been the and company Also, grow a we and

As of continues of GBS. demonstrating in XX% QX, to XX%, tech the a part larger business a for result, now is mix accounting GBS towards trending become from up new DXC, approximately the that

margins. revenue expand we GIS, stabilize to continue In and

our the discipline seeing ITO payoff demand financial We revenues. we to this strong we are expect future translated drive quarter, as market the in which increased saw bookings and into

parts X% So why FY to This drive XXXX. growth strategy of strategy growth in see GBS flat accelerate in expect our are you our to we organic in can and we execution moderate revenue declines is GIS. executing of on both the growth to

are in cost. The expanded third we takeout executing to X.X% Clearly, we to as step QX QX. cost our in numbers from on optimize margins our is X.X%

remainder focusing for our and customers. thoughtful take to cost can to our We approach takeout of confidence into our for delivering gives This continue organization, FYXXXX we on a while us that FYXXXX. by efforts entire the approach continue

cost portfolio of shaping. is optimization other our efforts The piece

able early we the cash from in were million German sale You data of from banks centers that generate of the Ken along the to January. approximately will with hear quarter $XXX in

over shows completing I of momentum X.Xx quarter quarter. we In offerings of continue this saw this see back book-to-bill three book-to-bill brought last and strong In software basis pleased in extremely we we record to am year-to-date for even this the FYXXXX, into But greater capabilities area discussed GBS, X.Xx are on engineering market we heading us in and our to with success of applications. momentum the that A quarter. seize our and and X.XXx FYXXXX. delivered as a bookings over all a FYXXXX

to deal off. In delayed approach first the new GIS, by and we over to ITO In QX, from were has Georg in closing our Fischer of $XXX year more paid the logos SAP signed deals that making discipline and signed two million of and deals this with half taking deals and work offerings create from Modern are shows patient because we Workplace. market the good is is in need competition revenue. Again, our better our economics. demand It as will momentum there future clear for that these at execution be we

flow program. totaled previously including and approximately pay the million. DXC $XXX free foundation step banks use our we our yearly in guide shaping, result, profile, cash this shares will that with enhancing This our for final million announced Our repurchase flow. financial from million area it quarter. is along we anticipate The debt this outstanding of in investment plan January, the of We of execution grade complete repurchase cash gives $XXX us sale to our further, and we to down free free generated cash to billion cash German was approximately the portfolio share XXX $XXX great hit where generated $X our momentum flow we to million

call on reiterate in is the to discussions Consistent we release. has our want turn sponsor on be I before October further engaged update value preliminary X in said regarding shareholder maximize we not what been by company commenting sharing is to and fiduciary our the Management responsibility over will situation it do Ken, this further. of today, information. We a have any to a not potential and with company. I approached acquisition press financial Now, the

to let over turn me Ken. Now the call

Thank you, Mike.

X.X%. Let performance. organic of you provide a me our rundown quick declined QX revenue QX

share our range were diluted Adjusted at the $X.XX X.X% EBIT above and margin end top non-GAAP of guidance earnings respectively. and per

Free cash quite least cash is a positive two we progress making million will what $XXX be at quarter. years two flow free flow. ago of from was team with in with of years over negative $XXX million great million. consecutive turnaround cash expect $XXX of This is flow the The

on declined gain due basis income. to points Depreciation as XX $XX partially metrics, sales XX points. basis to points gross gains of Moving SG&A increased million, our a points. primarily basis asset quarter by percent lower margin key of basis third was financial hedging offset pension volumes. lower lower XX FX Other XX sale and by of increased income million $XX

margin flat and EBIT year basis to points was compared As result, prior adjusted sequentially. up a XXX

and FX. prior were interest by from to EPS due from share expense, tax offset rate, up lower year compared benefits lower $X.XX lower count, to a from $X.XX revenue was partially $X.XX $X.XX from lower the a these $X.XX

Let's results. turn to our segment

points basis revenue XX.X% Our X.X%. X.X% basis sequentially, declined as GIS increased and benefiting XX points current XXX revenue of GBS DXC’s XXX business basis basis the was margin a organically. year-over-year grew was profit revenue. profit in year-over-year GIS mix commercial matter GBS improve to margin up continues from mix sequentially. XXX points points increased points basis XXX declined organic up quarter. The basis to our XX and GBS points settling

& Analytics year quarter revenue, Insurance was declined Applications strongest up offerings, on growth growth compare Turning with prior X%. X.X% QX Engineering solid to is a as BPS and FYXXXX. project with XX.X%. difficult up continued our Software lower coupled the organic in

about $XXX million of X.X%. in revenue approximately IT the Infrastructure was declined was down and Outsourcing is Our X% XX.X%. & up annual Insurance business quarter. Workplace Cloud X.X%. Software grew Security Modern

encouraged logo are new by wins. We the recent

on is flat revenue. very a three are currency all backdrop our I a revenues year-over-year QX the while divestitures that fourth basis. in momentum. point to of Let a also strong Further, declines on guiding we've me Mike's on quarter tie going quarterly the constant that of excluding above that earlier direction are am positive sequential quarters bookings, we demonstrating to with organic pleased revenue delivered note

foundation. to $X.X billion. financial Turning Debt is our

TSI $XXX percent lease as is prior and We revenue were the expenses. million from as the to a and quarter. basis manage million quarter, $XXX TSI compared expenditures down prior These in XXX million, in restructuring continue points in year-to-date, year. of X.X% year. restructuring expenses totaled And to tightly $XX capital originations up Capital

of long-term thus our flow. Free cash closed was the to compared flow to intensity capital German of as a improve deposits flow banks. the We a year, cash lower cash creating were to X. sale January free start the presents for $XX continue on million outflow. Customer $XXX million the We opportunity our quarter believe

of sale With we proceeds Last for million $XXX have the goal. €XXX proceeds sale German goal. asset quarter, new our $XXX asset our a and million, we completed announced portfolio shaping million banks substantially

we not assets loss our noncash a bring estate incur to is real these selling guidance. While that will in expect real in cash, incorporated

and point proceeds cash. cash cash closed on gain. put of a delivered $XXX we our recognized sales, yielding asset QX, capitalization. $XX of our QX it In our facility QX is on market To flow, of a and in of banks finer million free combination $XXX $XX four of the million cash, XX% our sale million million sales The over German

million our our a repay $X.X We billion. portion level $XXX debt expect to to of to we'll target and adjust deploy debt,

With target part our reducing the to cash of no bank are billion. our longer are balance. sales, bank $X.X customer cash deposits balance Accordingly, we

target these As available an million repurchase we stock. additional new our to have levels, $XXX

our on to feel of our to approximately deliver With XX. We million $X to allocation ability Turning capital on cash good our about date. our $XXX Slide share on repurchased we billion repurchase. hand, stock

X.X%. decline of non-GAAP Adjusted X.X%, $X.XX. revenue minus per X.X% $X Organic guidance. EBIT share to minus of margin earnings to and of to QX diluted X.X% Our

per Turning X% Adjusted to of $X.XX. margin of X.X%. to decline share X.X%. revenue Non-GAAP to Organic of $X.XX minus million $X.X to FYXXXX our earnings EBIT guidance. diluted minus

was I by banks. our cash deposits cash was As customer million. mentioned free earlier, negatively adjusted lower $XXX in flow held Accordingly, our flow due to impacted million to free bank $XX German

same flow. grow As I years still almost good our we that guidance on Mike solid quality FYXXXX a reflected ago, business today. business envision and We that we cash envisioned two with gave could and margins

and revenue was me guidance. you provide organic X% double original digits, the on we growth to context revenue declining of some guided At to organic FYXXXX our Let time, X%.

XX% were margin. margins $X.X noncash we of and of EBIT Adjusted was to X%, cash guided we cash including free pension flow. income, XX% flow to billion negative XXX to $XXX approximately guided points Free basis and a million,

restructuring let Lastly, reoccurring that not all annual guided and of million, million margins. forget we $XXX expanding costs TSI us to $XXX the while

have as we point, way over vantage the years long the stronger foundation. our is From come two business a on a much last

Let preliminary me on take to a update minute you FYXXXX our expectations.

margin to to margins business are X% growth, adjusted we do the above FYXXXX drive revenue, expect exceed plans but expand to organic not flat For working EBIT to X%. to levels,

the basis was we FYXXXX pension in guidance, FYXXXX. provided XX EBIT are higher points income where we than When

a $X.X basis Free income do pension to original assuming above our FYXXXX our flow, free to $XXX are payments. million similar We consumer but $XXX FYXXXX headwind continues guidance. levels, XX free cash we but $XXX of cash is guidance, significant billion cash a set had from level point million When of capital cash of not at FYXXXX lease flow, exceed not The payments flow we flow free capital part expect a and leaving increase of are cash million. we're generation. lease

FYXXXX. here sit $XXX about expect leases we we today, million capital million originate As of $XXX in to to

the lease Our couple payments lower originations $XXX to capital over the years next driven has down about million last year. of

planning on annual process. earnings once guidance FYXXXX our our complete we We next will refine call our

for turn With me final that, his Mike let thoughts. to back call the

let key Ken, leave with Thanks, you and takeaway. me a

at our slightly achieve FYXXXX FYXXXX, guidance. in deliver business point the will have and we end always lower of albeit inflection We envisioned the with

FYXXXX, As our cleaned Ken outlined. past exit can that challenges just see we the that many you from of we up have

clear expand offerings demand, new shareholders. as quality that to a are on our company market offerings of win flow, built to Our declining, change transformation the GBS, that work to is free the journey EPS, not mix and of in relevant depend revenue has can revenue tech our deliver return in and cash our of the higher-value the cash debt generate and execution margins manage you strong both

execution, great here the come challenges. DXC didn’t but is to we fix this to Now

of the we momentum was GBS small that the with have the quality the business, to along and deliver and Getting revenue drive the and tech that margins see of in rotate excited ability increased task, clear being poised future envisioned With to to no had management I proud to we confidence the created the in cash of point FYXXXX, team company free and we this we my have we’ve we flow. new generate inflection and are growth, EPS, are the flat expand business revenue as about X% both created, can DXC.

that, operator, the questions. up for open And please call with

Cowen. comes the from of Instructions] question [Operator first Your with line Bryan Bergin

is line Your open.

Bryan. Hey

Hey guys, doing? you cash afternoon. to start flow. are on how Wanted you. Good free Thank

here this the XXXX make Ken, just So hoping pieces understand to and sure to on XXXX. dig moving for we

of performance? to the continued about of XQ the some in Should out? generation can we the So does drove forward? cash you first lumpiness flow kind expect talk free factors that Or strong going start that smooth

clarify after on you’ve given fiscal And last in is point difference payments to capital lease the taken made XXXX it post then about you real net down. flow free cash just leases, the capital the there like your million, $XXX number sounds

are to questions So flow a free combo cash couple of start, on please.

We’ve couple back, Bryan. All a for you its work. a clock years, clarify, of in. biggest, a to Great, over I this Probably now free right? if it We’ve you to of Look, If right. been had And negative flow. back cash jump in need great look, look from $XXX feel lot team, positive the work at free of flow the the two cash done business years at million. row the wind right?

had business to really if biggest the of right? just it’s has lost lot at of the The of down driver, restructuring A good business. look So TSI. you focus in work on not from across holistically entire us, people right, lot a kind the driving the on been

I year-to-year. been around swing, that’s think so million somewhere So $XXX

pretty a piece. I big So think that’s

the a so a But we forth. tell And FX quarter the hard that It’s had up bit level. we last built of to on this couple because in up and little but AR some and of some of sheet quarters balance then movements down – had to quarter, built just this more normalized back AR. brought kind

really, nice driving So the just done has the job a team across business.

looking a way good the And look it bit, to probably net little at is you leasing our didn’t then from a perspective. The economics I think was right it. out of have the when of FYXXXX,

I business looked as when be. want leasing as challenges. also say, it a to assets, always it, When at it’s you oversight economic some, So of lot creates not would and we you’re it

process making that goes through kind the it So right we that lease and hurdles right of the a assets when through to sure it. went you has economics of

So when we down did the leasing that, of dramatically. we pretty course, brought level of

think confusing I it this, everybody flow statement. cash the knows but right, little gets a on

purchase because are they assets, flow If cash financing below drop they you lease basically. free

them go If out, buy you straight rate CapEx. they through

impacts capital directly So some on the flow. that cash up which leasing, as CapEx, ends we certainly that free squeeze the in of down

way, that mean, think we’ve in certainly, is got certainly look longer-term, you it. I to I improve look way it. when to So good at a opportunities

a on. think we of as revenue higher continue CapEx need peers, percent so of I is than our that’s a a to lot place Our work to

then cash the through There’s to of most bit, go little lot have be always of cash and right? lumpiness think QX. a And a outflows companies your question around this, is flow. going I the QX that

So I more continue that a think you’ll in a bit see negative to quarter. the be of future,

at it. that positive I to than that work sure we’ve this is And work do hopefully, we We’ll year. make QX, to think more some level out. QX got

like have QX strong I that. and always positive, keep to think been was it QX slightly working cash pretty but quarter.

we’ll So keep it. at

question? your answer that does Bryan,

please. Yes,

those and Just that back? Mike, offerings. the about broad-based and talk and you larger the got over like just things to holding were line deals on you’ve any you bookings client pipeline that, sentiment now good of cycles near-term demand, see macro? change in Can sales the just so across the performance some And given

on We that number like larger, we’re is the seeing little the longer. on simple. the It’s pretty is that focused focused cost will million $XXX and whole is savings. a we Well, what just gave, look, deals they’re taking be the bit – client efficiency. And sentiment industry

look, The other on the focused impact. revenue, that it needs is seeing customers in are we’re but industry fact that, still thing out immediate the be to

I audit boil will the offering, all don’t want and ITO there’s that be committees these when is attacks. And the to Boards too not because look that for that any reason many down. I cybersecurity our offerings, at So up take spend companies’ that look at going at they

for still seeing that demand offering. we’re So

population, major The at that a modern a workplace, major, second companies lot are mindset. still we’ve their look virtual is you got employee supporting a of base when part of and their

really much. So that too curtail spend you can’t

when our along over ability the revenue, at solid And I book-to-bill. I’ve unique look drive does. continue said business to we’ve then over business growth, I with a very that’s what and got double-digit see skills. And engineering at again, that look to and

means So demand And be from revenue the mentioned think to always to adjusting selling GBS, it’s there, that relationship and standpoint, cautious. points do then which I going go business cost. focusing based win a need is that I to is look, sales what to build GIS what in the strategic of continue last and hard And I’m decrease deep relationships call our will on in the then we But model. offerings sell marketplace. call the be we not on view or I look, on either drive the

better the economics. new love logos, So I love the I and

question. So Bryan, answer that’s I’d how your

you right, great. guys. Thank All

Thanks, Brian. question. Brent, next

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

open. line is Your

Hi, Ashwin.

deployment was deployment Basically, see are I good talk see the the not those? broadly free specifically timing little regards as down. relates to to Could about free flow? talk flow, I to with of of Ken. the noted. thinking was to go that to about hear want deployment. cash bit M&A notes buyback Mike. all. more And you tuck-in granularly to Good it ongoing what back cash evening you and it Hi, immediate from Hi, you interesting pay but a

Okay.

why you immediate? the So the long-term. don’t take I’ll take

It sounds Sure. Mike. good,

commitment our K. the looks just, on repurchase. of on of we Ashwin, end when a billion think the the this kind And share So file timing, like put perspective, we I fiscal year $X out that the

on So commitment. like ideally, our ballpark we kind to deliver would We that timing always of be hit. the would

share So Because always at you things. depends that. and know, we’ll the follow. it’s price processes repurchasing all those does, regulated, to need It and highly on you work volumes shares, what as there’s

so that do be in stead, in So shape. good we should we’ll good

leverage we you’re We The to keep like ratios debt we asking line. – run about, in conservative. retirements, think I also like fiscally somewhat just to our

a It’s at quarter. out, cost There’s also little have no short a it yield We’ve of higher It up so it’s mandatory we’ll comes redeemable. also reduce we end the commercial paper. relatively to got European preferred some So some that. that’s duration. that the bit take stock

up and be that bit clean well. in do a We we’ll as cash little good to So buffer a tend shape. of keep

We’ve the extent do tuck-in to Mike So in some some hand. to M&As. wants one reserves always kept

Mike So I’ll for turn remainder let the part. – I’ll to that

Ashwin, moving to revenues So us What say would getting made on that terms the the what point. in allocation is I declining. is now about inflection aren’t forward, FYXXXX. focus I you inflection of see capital point the end of

We’re definitely GBS. changing of to the mix business our

quality expanding free we’re generating good EPS, our and We’re flow. and cash margins

this So quarter are slides now see that of I deck revenue. same things amount you here basically We be two at the of like if looking time tactical feels look XX And the in into XXXX, My is after the tuck-ins. in it’s look the discussing XX. you after quarter. the start stability are to and favorite as at XX, it we’ll quarter one

complementary let’s business. our the it’s potentially of now to So that new look matter the things at at are look a let’s bookings,

we And how look take talk then we see how can that, through. quality you about then you also XX, see that and Page we’ve the when the thing you measure come company, you challenges the at we’ll forward. see can When can

capital one other. the or I’m to the balance not some ready allocation. way say to be will there So

second to gotten do point, you where think planning, We’re inflection a get our Ashwin? to I that. but through considering time start it’s we’ve XXXX have that going to Do question,

Yes, I do. Thank you.

comment new initial and out. in fiscal so initial XX XXXX, but obviously you’re So the just segment had, pipeline seeing of the And ask speaking kind visibility your guiding investors you on that. are going you’re to gave you very to wanted quarter, you sort that also in outlook, months of I visibility, forward, outlook to terms just obviously you could if the revenue next granularity interested for not model bookings but level on of the replenished, comment the

Okay.

terms nothing visibility, seeing revenue there’s being that that the better of So than stable. in look,

we’re So not which back the a stuff. challenges margins. quarter, around customers, lot at number XX. again fighting around doing the of why sort That’s expand give all of is And that our we’re terminations NPS I of you each also to around the that on continuing

look be one So meaning when I anymore. that means not we’re stability, at step that should backwards completed, going

So now to it’s time go forward.

pretty to stacking wanted continue expect when revenues will came up to few book that we be more into to and be. be X.XXx, at deplete start we I and we pipeline. the momentum where stable. going Love So quarters we’re I comfortable didn’t a that in think fact QX right to feel the that bill you the Ash

would question. I how that’s So that answer

Great. you. Thank

Brent, next question.

of with Bryan Your line next is question from Bank. Deutsche Keane the

line is Your open.

Hey, Bryan.

question just Hey, guys. I I Because in How over Ashwin’s Maybe getting had never up inflection of heard point multiple from its one the management it trouble DXC come. about… that the just that can you kind you years to had it on to history, guess going Mike, that follow has we’re we’ve inflection And teams a on see point. there. doing? talk and

me. from that heard You’ve never

that fact big that pretty deal. a mouthing I’m So is the

point more hasn’t get organic this because growth, and what can that able you a it’s positive to time. years little Yes, confident only just a here been but this and real not that troubled But maybe it come. Because I’m strong is the feels at to sounds fixing with from enough that’s a it. the do finally history fixing we’re business, it like at mix visibility it of the trying contracts year, that be next to in feel

see adjustments I here’s talk revenue thing guys a the XX, you Ken went of that FX disposition see. in And of Again, we and you XX and that terms so the Yes. us, the in achieved all putting on change can mean, declining at forth. we I But reason, – Bryan, look, have stable and focused I and we biggest when on customers what is about okay? not is will count mix. look for that

we We’re that XX%, business when where this wanted to talked the about Ken almost all at which years how is stuff two envisioned be. ago, is we

that, again, reason book about to the keep hey, year, also at as when if that the guiding to bill, X.XXx. I look a at towards know to flip a why quarter kept to revenue, continue quarter, we So the we’re next saying same we indication we a book fourth I we and that’s clear bill, had great

But month what is to that’s I’m increased bill X.XXx that book the trailing that XX stuff. at good looking

that’s is good thing other The the looking literally stuff at individual offerings.

in there there. up grew perpetual $XX about of to Okay? back do million consecutive quarter. software seven business I QX. to sale So compare tough The We that a if quarter. for GBS be too, GIS. a and point expect was I totally go the businesses X% first, the last GBS did around

I our We we economics. The basket the our at literally could out with for talking taking deals, Then when you that guys you of time better a the now them. awesome. results. there. deals big about are GIS, these look is deals can strategy it’s $XXX are at show fact million stop

you’re at and you DXC, So meant into now what when leaning talk excitement clarity because the the I said. I feel what I about should

at about fact at look, that heard two called And that we’re X% closely. You’ve I timeframe. a happy X% X% X% years pretty the all to pretty to short mean, still very say, right, never we within flat looking ago me and we’re

you question? do Bryan, have a So second

comment and it does of longer. any have length can’t the two I This to the fundamentals, But you know curious months. Yes. My business the one these kind on with – of impact little or length of on concerned, review. just period, second one one seems be the take I’m is I’m things on why what’s taking about a review? just going usually the strategic the

the look, commenting release that I I that Bryan, press mean, And about to discussions. stands I’m weren’t we going still reiterated say. that’s confirms look, we’re on all that I mean, any further. having still

has been… Anything it the that’s – on the not think review the or the you fundamentals in of hurt anything business,

not was flow mean, free problem. No, GBS, the there’s really or you increase GPS go I all. EPS, if and at X.XXx expand it no having a can way big cash drive book margins,

Got much. Thanks so it.

right, thanks Bryan. Brent, All next question.

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

Your line is open.

Darrin. Hi,

it’s Hey, Or assets years see where execute you I next to are targets? back I the the been the of few momentum Brian moves? answers we to focused mentioned Mike, really now, I gave a know a you guess, if was just DXC, let some have towards the to It’s the make fiscal on can XXXX of couple anything you to just question this company Hey guys that some portfolio broadly, you the are tuck-ins, going I Mike. those but guys. you question I Thanks. or now, what good from operate, mean, portfolio of the for the right but want else divest? for showing. you’re to digest have then and circle sort and we see around M&A, trajectory on is mean, the asking going just to whether standpoint if tuck-in we have And

Well, did I do now, If we buys. what should because a those. where mean, some GBS, need you whole is change do in market our our the be look, mix. been would the we’ve pretty what I change to we And combination anything, there it’s is is we saying would right all think mix, tell it time good of I

over can do that, business a good and we again think the I’ve for good also business us, said cash having Now that GIS produce for that can and us. over be said

me there my when history did of part I that now I that years. tactical is it, at look So, a eight in know you past seven tuck-ins

that in terms of to at, two hard facilities after heard quarter. now look So and a stuff quarters say going that were centers data we this continuing have now you’ve few and we of we sold are [ph] million $XXX that for Ken

we that. doing So keep will

but the of meaning shouldn’t not cleanup, still is we’re many real at quite I was like I still The a and next in and can finally a we and then we other that. we would in. like strategic I to thing in HPE that call business think There’s what be go that is, the move too together countries it to taking look than of, operate, that frankly dynamics few that And terms CSC need more countries still businesses we nothing there’s would reason putting this on. part after

we’re not mean, I to look, those done, around. what think combination certainly I see, wait we’re in things, think and us a Darrin. So going of seen you’ve you’ll is, I not whole

on we think and going to focused more what up. aggressive a the need think got get things it’s a can of continue now, we’ve we We you in clarity we more think merit. We’re with to Darrin, see got because business, last got second that the some terms of do question? of to we be lot do I clean few

you’re bookings, quarter But obviously asked helped. what I you even was workplace, about I you just new last earlier. could which bookings like we think even do. this quarter, guess, Because like it quarter, this demand minute seeing, flowing that And into for it that now? revisit the terms in in winning to in in modern I what into was a great you the some of having; of are kind it discussion pulling they’re GIS talked talked of about, somebody strong are looking back both goes see GBS and logos. this the the projects like terms to ratios book-to-bill of said, quarter,

been So, and demand sentiment with? there’s that in of can working you’re the a on give change enterprises if from seeing what you’re us sense a you actually

Okay, individually. I’ll offering each so take

a our – automotive A&E of analytics see we banking. we still revenue. and projects are and a of also, lot generate new a stuff lot selling is in in we’re engineering in help customer a engineering, quite is what bit that can So of And around client demand

there. So that’s what selling we’re

So think revenue. but projects to smaller, they’re they’re generate quicker

apps. custom what there dealing with we’re dealing applications, we’re And with is,

insurance, business. insurers, new a building seeing software business. the ground books right in we’re a enables insurance So of lot then Ken heart something of then Look, insurer seeing mentioned we’re up, because to at the the software I’m from SAP. that’s and and we’re write And ServiceNow the also in think

fact that, growing the So X%. that’s

We’re not only the software. selling

it. into also Then down running implementing always be and Darrin, to if we’re security drop We’re going projects. it, you there’s GIS,

this quarter’s cloud let’s growth, these making then basically, call infrastructures to you saw that X.X% the that that to nice. is ITO kind and of it moved then that cloud So moved bulletproof. have sure haven’t And the are ones the

over. what I modern our And that, see that seeing uptime don’t well they market. we’re environments is product that doing that’s So those of the workplace, then very think tip in maintenance, so upgrades the you’ll is the

with They kind gone a have or one to about know things is two of us SAP software. big For deal.

may read seeing, more good that’s with sentiment saying every services and my to could thing’s see lumpy, be Look, there demand So calls in is still what look, one bit a that but a market. go we’re going one, made showing three, be clear that the backwards, up that the four but I that’s after of that very I single little earnings our luck that it I we out the competitor’s Darrin. for wish

a terms back go enough point foundation. have We do would I the to it definitely needs thing more quality first have we’re the of your We’ve take DXC into on to future? to where XX. I you to make good So, last question, has show tell to in company. than everything course to good got And getting that. this going been think to fixing that business, the I literally like a a the this I and business, we’ve very can It like technology said, you go. Page now of

Mike. really Thanks. right. Yes. All That’s helpful,

question? Thanks, next Darrin. Brent,

from is line with next BMO. Your Keith question the of Bachman

is Your line open.

Yes. Thanks.

Keith. Hi,

to drill bit. get that Can did over frankly a next Workplace Good still of happens still over but want evening, out revenue, part the down that And a it’s a I the does shape growth. or to is because it on how one of small Modern flat your little what you on years? two excuse It’s me. a drag point drag?

Okay.

So mimics of because you if overall Workplace Keith, XX, business. let to a Page me give you Modern lot the back the numbers, go exact

So if QX, revenue for it XXX. look you the at was

XXX. QX, you look the for it’s If revenue at

If XXX. for at revenue it’s QX, look the you

we’ve that remember piece. for you the said, a business of number up meaning put that lost going the showing year. way, can then when entire that’s we’ve out, fact to going negative potentially XXXX So you’re do to change thing And in business the get good somebody like are been with QX I got to So logos basically coming in see flat a pretty sell that for why sale, to through I new The to is I think stabilized business? puzzle contracts we’re significant go going that that, we because I I we that think think our grow.

Okay.

help. those hopefully numbers So

it little in about pipe Yes, we ask obviously the makes visibility to terms mean, of strong. as how progressing quarters, we’re next want differently. quarter, then the And it to I I thinking book-to-bill? the try sense. over a be But should bit couple pretty was this

on as the about quarters that growth next the focus think the give we out, only to but us confidence sustainable? anything months, not to call book-to-bill, zero XX X% is on You but latest attainable you couple want that’ll

of X.X QX. X guiding it I’m way. minus think minus Well, literally to to this in Keith,

is work. are demand down So that new Modern things, suggest project in in knocked that show with sometime Workplace, that’s especially right, type So outsourcing that okay? XXXX, logos not going I just type to should the up, the those

Right.

thing we business look, on only having second in offerings market, tell have relevancy shows The all of is I hit still there six that, the but is five the demand. not out would you

Keith. mean, So read at you the everything, scripts, efficiency. happen do say what’s people look, look is We the of year tell to can you economy? going I I you to this the well, efficiency

cost something people that’s us. if efficiently, somebody if and to savings, want want So people run

mean, I two what’s about the so I like I we and far. or I three happen about what out XXXX three can’t good call momentum months feel the or in can exactly feel quarters call that or to we down two said, good QX or created we’ve going But So path. is

Many, thanks. perfect. floor. the I’ll cede Okay,

Keith, Brent, thanks. question? next

the Jason with of America. from Bank Kupferberg next question Your is line of

open. is line Your

Hey, Jason.

ask the I Thanks. Hi, you? Thanks a to was the a one guess the little I on expected. in growth. know below in are wanted just little it plan, I I coming there. quarter quarter fourth organic first question. for previously is what was below revenue How taking mean,

service has anticipated, been you as mean, shortfall that, what the lines? I So unpack had relative where to just say would the you of you previously which

Applications. Modern and Workplace was It

as because Modern same did that telling following we kept we the we ITO. that’s So that journey expected would than transformation turn I quicker Workplace everybody exact

within we year. You’ll probably see turned that a about ITO

to loaded that FY a When out quicker. revenue get more Applications, turn you of we would based see the I turnaround bit down. in apps like bit on a little bookings of amount plan it was end And we thought project XXXX, then a just to turnaround we at for QX So that. in expected back looked knocked you’ll expected our we little out and But get workplace we just you’ll more will, see apps. a of think apps,

a margins some script this one-off? quarter, bps just I’m Ken, that XX in you’ve correct kind GIS don’t if of said I so Okay. guess, the wrong, question I was? was that of more that, And think and what that that matter And the there by was know me is clarification, I then commercial just if settled my got it is was I a help. right, kind in of second

we so kind the It’s that’s Yes. you a right. but non-recurring, it numbers out, of why called got

Okay.

what basis was that is So points for XX-ish XX about It overall? GIS.

Yes.

Okay.

yes. Thereabouts,

Thank Okay. guys. you

Yes.

next Brent, question? Jason. Thanks

Your Morgan. next with JP question comes Huang from Tien-Tsin

open. line Your is

wanted here. for just hone in to Hey. taking also booking the on the Hi. Thanks I side. question

cost here Thanks to better economics, those you if mentioned clients, that understand, curious today? better changed elaborating visibility takeaways. including on And demand room you there you're little pushed out want surprised inflection bookings? by that, on two macro. project is for given on things you talked the if uncompetitive of focus there, work and on don't about just obviously mind but what's so also if deals that or somewhat driven you pipeline that not depleting see I'm is out still gets You, calling Is large just still by Mike, wiggle the a slip to good, similarly,

Tien-Tsin, thanks to hear for good call. to It's coming my voice. your

on. be to Glad on. be to Glad

Absolutely.

to terms Okay, do one first? you which want so your back of go to to questions in me

bit. rambled that's Either kind a little one easier, I of

or about maybe even maybe the starting with on that a wiggle room, larger and Just little bit, deals pushed work. thinking get project things out if

For like sounds good backlog. a got example, it you

the quarter, feel fourth about good You so...

Let's just, yes, XXX%.

me Let one first. with start that

revenue you when look X.XX. X.XX about wiggle I on done on we've So the at mean, the back room, of think what and

trailing room, way I Why XX-month out I you? There can when I X.XX, – am wiggle all go X.XX, this for – that I can [ph], five X.XX X that okay, quarters can that is terms like sustain X.XX. into look I going X.XX, the at doing I of book-to-bill, against So all us when said, and all that, making nice QX we that sure that that X.XX because all be means in And we're bookings the to then FY revenue, okay. come is XXXX. executing –

to flat be to have to So perfect to for us the guide. backlog that doesn't get X%

Tien-Tsin? make that sense, Does

It's It does. It go does. those. It important to to does. back

Okay. Yes. question And second your was... then

The better including on the you think takeaways? I economics market mentioned, that

clear. is This No.

say when So it's that, ITO. I

what's competition about our bit. is struggling interesting the right the about those days. happening space, is now in a I what's market Okay? And And remember if you think

numerous of to said, that in terms where is to So if stuff. And when satisfaction, get we can in that of GIS pair we're customer flow, it literally talking all sheet, go not XXXX do always now you're you we're back of likes on CEO our the a And because talked DXC, generate free were that terms what cash ones struggling right? in took all all as think I to safe all over the anymore, key to I've trying cash. that's space, done our And we're the of were And we that balance that terms right? at calls right? hands,

Okay.

deals was of Tien-Tsin, pricing. at, looking that a logo about clients XX race those in the joint or do. call bottom commodity we're it's with here's economics the was us those the that those going When client when we're that one piece. – space in to ITO of whether a done terms And clear five, we second It we're competitors years a not a ago were brand-new Now now, large we're to very are space.

the we cola is like means electricity. talk to on We pass get pass things upgrades. light. that like we That things definitely about hardware We on things like of going pass infrastructure that on I One means increases. things software

that you knew Tien-Tsin, was place. old playbook the that I ran us the And

to, exactly we're I I to So taken at. little a when say of doing wanted delivery, because bit better longer me like it's get stabilized economics that's where than what a but I we're we there had lot

No, Yes. sense. perfect makes your Appreciate thoughts.

All right, Tien-Tsin, thanks.

one Brent, let's take let's take question. more –

of from final the comes Research. DeepDive with Rod line question Your Bourgeois Equity

Your open. line is

Rod. Hey

bookings Hey I Hey guys. traction a the about about have and question a bookings question intensity. side. capital on start I'll

disconnected good IT in was services less broader quarter in trends booking Your the December market. pretty the strength infrastructure from

strength what's was to booking traction? versus much in can want inflection point? your And real point, are market more recent real you your inflection enabling in inflection I year a point to of you push-outs ask, the from due So seeing if a that how about earlier share

Okay.

first, talk the So about I'll bookings.

in caught half basically at take still year, the was you million $XXX a we up of first of if out the So we're said the that book-to-bill X.XX.

is So the Rod, at X.X very a we're look that's just Also, the math. back strong it, That's way quarter. over I year-to-date.

that So it you can at way. look

keep good, X.XXx but need a there. either keep this I you see where increasing month was the our from there’s is services not at We okay, look at the I look That’s way do just trailing also, back can XX You out what for going it to. coming demand, the to. we X.XXx which, demand all it, back only right, to

in X.XXx over not I do look, talked about really at raise do because all insurance is and piece, raise X.XXx business. GBS when doing what you those what in book-to-bill book-to-bill, to the do Now, that get discipline book-to-bill, to we’ve the going that we’ll at again to we’re and then the apps some look all go A&E, right X.XXx economics. just GIS on goodness. offerings, we’re That’s over like in And our

again? was what of Rod, question the second So your part

the to the, business. relates it in GIS well Yes, discipline topic

to intensity end Capital something the So a with topic years. maybe been that wrestled good business for in here has on. it’s is

about you So, stability can also achieving have talk better in the you’re you levers GIS? revenue while capital down, get to intensity

that? Ken, you want take to

part been Yes, time culture there cash That’s then, no, put probably deals. the hardware this said, a to out process. through Rob, I your business as back takes our We’ve and of just that cash first business. approach flow, on cash this part. historically putting way of governance the comment the Mike to sure. place Yes, whole and, think a system. it its work free – in thoughtful came about And generation we’ve goes around And wasn’t

like desire to their working and to, just manage not right? need to, we need kind that think a, refresh of that, like I So, we really CapEx keep

we’ve tie not is put tools accountability, focus are I on think going quarter our So, part, capital live and big margins even to be a some Mike’s but this the will building at the the getting I back proper when and which place, to commercial better, in manage, which return. the create you space, our to, long-term. you forecast, team that also intensity the need GIS easily could been mean, the customers, support out, we we’re return right make argue getting absolutely look sure a business. we’re And

kind but there’s kind headway And through our there an of way make and it, we’ll the our certainly peers, pencil So, right? to if down look You keep there. sharpening you at opportunity drive the quickly maybe ought GBS the to space space X% ought bad X%. a to a to And on X% X% get day. of of to around be back somewhere GIS revenue, be

So, there an need to X% with what at we to the we just down do that’s keep thesis, CapEx get and the to to on X%, need be And right bit it. to little ought of work. a that opportunity

let going And go So it and to that that I first the hey, When go three a because three all about a to because our always competition cloud, is been Rod, commodity. We the going the that that space you liked everything talking is half business look for here. I’ve Not cloud, right? said, of me to All that at all even gave comments. with is there these plus, is that in work, not stuff’s was that the right. need I away. work? leave infrastructure data you Second talked years business cloud nobody all about

lot bottom on do a race of could price. a people So the that to meant and it,

we because today? now to right. mission All a So, There’s Okay? stuff need all critical gone the of definitely where the has are right. All not cloud.

Some hasn’t. of it has, some of it

right? got Second isn’t is off, said So to as once going economics. the sure take to industry to we commoditized business, do were because fallen make as there, huge the get we that therefore on what can right deliver was, being competition better all to it that’s we us we’ve is

over deals and over to that was thing do being And detailed, saying using by just we something not I’ll Now balance will it I again. to very Ken the that. is, would I to last detail his to say add at our sheet want continue do leave is

did Rod, have question So should you call or wrap the I up? a second

it’s guys. Thanks think to I wrap. time

the All right, Also, appreciate I Look, Rod, call. everyone thanks joining thank to I so for want much. the joining call. everyone

with the great of XXXX. in to appreciate for really XXXX. business business And DXC execution think had to and get that of what also and And clear we’re What and we’ve very inflection have at the future. momentum Some I our very in FY be proud we always our the made both company about do point would you envisioned and we I We the like deliver, will quarter, to quality this the we this. created FY of time are end it. excited end about I is expect we’ve definitely created

call. May. updating please in all you So, I look And forward operator, close the to

and Ladies thank you for call. gentlemen, participating. conference concludes today’s This

You now disconnect. may