Concentrix (CNXC) 19 Jan 232022 Q4 Earnings call transcript

Good day and thank you for standing by. Welcome to the Concentrix Fiscal Fourth Quarter, 2022 Financial Results Conference Call. At this time all participants are in listen-only mode. After the speakers' presentation, there'll be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please

hand over Head to would Investor now speaker conference to like ahead. Stein, I your the today, Please go Relations. of David

to you, written that Concentrix. than the earnings their Thank are permission address our expected This performance nature the not of contains and is cause This of call address good rebroadcast by be actual statements. be and morning. matters in These recorded forward-looking call. results that statements Concentrix quarter, forward-looking our or fiscal Leanne, fourth uncertain. XXXX and Concentrix may property future may call Welcome without those uncertainties to that our future the materially expressed different

statements or today’s filings new could result We includes provided do in future information as most our and for XX-K. not a risk additional financial future factors results. refer uncertainties to or regarding Report undertake information Form developments. earnings Please on release the SEC Annual recent our that forward-looking of with to the our events our affect This update

call revenue the of non-GAAP free EPS, under income, release news measures Concentrix Relations well financial available the adjusted Investor measures, constant EBITDA during flow, reconciliation website non-GAAP Financials. Also will operating discuss cash adjusted adjusted as the in as growth. and we A currency non-GAAP including is these and on

for our Chief and Executive performance will Andre Andre questions. outlook. on me financial cover and provide Chris operating of the Caldwell, the With we’ll Officer; summary open business strategy, and our call and today our results and call Then, President Officer. a your Chief our will Valentine, growth Financial Chris are

Chris. call the over turn I'll Now, to

the to as much, several and continue fiscal made with to us our across Good a We progress position in start David. quarter like a experience fronts call. earnings welcome industry. Thank believe customer that and to I review quick XXXX. leader everyone, would very of you year XXXX fourth evening, we

XX% basis. year, an For the as over revenue reported increased full on

X%. On flow an XX%. income non-GAAP organic our cash constant our basis, currency to increased over Free margin up basis operating operating XX% margin XX basis, operating was XX%. record than was a and more On a up was up points revenue –

In performance started profitable XXXX, a highest once strong growth, over our since this addition to our scores customer be surveys we to delivering continued and operational more innovation decade in satisfaction ago. the

investments to their growth, their to helping in support and shifted clients from us operational reducing new technologies XXXX as capitalize into Our opportunities to their services priorities new costs. have innovative with allowed also have on going

have source a scale. the CX out increase at Catalyst profitability we platforms As integrating the reminder, with such multiple successfully our Concentrix In acquisition. augmented and and deeper introduced service and CX CX we July, Technology capabilities to year earlier the us our have generation helped our technology for in BXB footprint rolled as year PK allow revenue the our we acquisition, CX, new deliver Throughout Connect to Group, Recruit operations QI. Solutions security that

Asia. operational as platforms our as focus continued we America additional well the investments and new footprint increased building complex our this also in services. value around deliver with Latin works, Europe, that In in more us clients. have We is pipeline and more countries on a additional of footprint locations have believe will We opportunities and work be all continue help of higher helping and offering our efficient compelling build for to XXXX,

and revenue growth, report profit challenges to delivered despite that the flow quarter, the in we the a generation. year, macroeconomic I'm pleased tough cash of back half fourth environment improvement the Turning to of strong

increase $X.XX a on year basis. reported compared of of XX% represented revenue last Our billion an with

XX% and increased operating Non-GAAP Revenue Free year. million constant was XX% up last $XXX organic cash with flow an to income XX% $XXX $XXX on adjusted compared increased increased basis. to EBITDA currency X% million approximately million. of

late softness October with volumes as volume without seasonal flat Clients to traditional primarily in to a clients experience areas. expected. related did these and whole We down spending and the November were in year-over-year areas in they retail uptick their consumer e-commerce in consumer electronics

While volumes business shopping had Christmas solid, their Thanksgiving remained and forecasted event, Double these what were the for base below pre-sales. clients XX

well profits demand. initial quickly, by meet The adjusted that forecasted were rest we gains performed Although of our of key clients’ digit portfolio revenue verticals our Andre levels go posting through. fourth very to impacted with staffing several the double quarter will

new work few to of within to quarter a CX to well we than primarily projects our second ability ramps pipeline the based typical did catalyst in experience on quarter. Catalyst progressing on our within we we expect be business, our with This expected, in Operations their change with coordinate build ecosystems. slower and clients pace solutions strong is clients, our opportunities as a clients. existing Our continued integrated catalyst expansion of business as Within larger

From two sales a dozen logos in quarter. signed the we with new perspective, business

for interesting business reduce providing by new sale service. new for a and to business wins assessment full our operational rates for based conversion service improve examples propensity clients costs quality services and services large to on data to assurance analytics provide Our delivered to process sales European spectrum was consumer company. a providing an economy Two our include business-to-business which a advisory sales across provider, our management, in of vertical team, and cloud catalyst integrated

CX team deepen designing, clients. the to business opportunities, well perspective shows our pipeline running pipeline to of capabilities investments operator our and is resonating increased and operations our building existing the to systems to CX clients single wins, consolidating solution services these broaden cost. We new addition In Concentrix during expanding and capabilities with the use our processes, our capabilities our future that and optimizing these by align We relationships of reducing integrator volume and quarter. this core Catalyst, and of which believe combine our and BXB

clients strong. the us. positive Going lead will economy of consolidation volume expect seeing and are that New are enterprise we we new expectations and from demand into discussions client clients with the Year volumes recalibrating perspective, to Existing remain

first we choppiness two expect the year discussions the as these in result, finalized. of a As are quarters

We the business as to consolidation already expect result large growth base suppliers. a we accelerate the signed, of underlying in of volumes have from year second of deals and year-over-year half smaller

We do not volume not large in factoring seasonal at expect and end are XXXX. of the

best goals. less automation economic historically and our like by more reminder, both to a times clients times retain meet As with do these, the experience. need customers by In and drive in to we through done our good have well helping their more clients continue challenging possible revenue, ensuring

having areas our with about these conversations We all clients. the right are

going most challenge operational new also labor market perspective solutions an The environment for and with stable From predictable in the eased technical and into more pricing regions. become XXXX staffing problems have transforming remains and stable. offering on was inorganically our focused build our their both successful CX XXXX clients In year summary, we a organically customers. and to for steps where significant everything took has

We're in deliver optimistic about can XXXX. we what

pursuing superior shareholders. faster confidence expansion, innovating We selectively to building the expanding have grow and with markets, returns key margin with strategy new our relentlessly market than strategic for relationships acquisitions in to our and drive strategic into solutions emerging

confidence talented to execution, and like their and our for to Concentrix. and our Board support our their our clients of in for thank I'd their mentorship for for Directors staff Finally, commitment exceptional their trust investors

Andre. call that, the I'll over Andre. to With turn

look our and Chris, results for fourth the with and then hello business begin you, XXXX. everyone! outlook fiscal discuss Thank at financial for year a I'll our quarter

and We volumes some delivered solid project slower revenue impact client we going generation strong than growth, improvement quarter, fourth cash from and into expected lower quarter. despite impressive margin in the the ramps

billion was currency revenue foreign growth Organic up The from impact was quarter includes X.X% Revenue in improvement $X.XX from in currency XX.X%. as X.X%. negative constant fourth the XX.X% reported, and a impact acquisitions. fluctuations, reported

consumer XX% percentage vertical, approximately In way in the increases a client of and led healthcare terms growth. basis, Revenue clients with clients of verticals, the XX%. technology the growing on in quarter, technology revenue electronics driving the grew

Our travel the with XX% clients by e-commerce growth. retail, and clients travel grew driving

and growth vertical. from the acquisitions that all the driven quarter. grew client offsetting and X%, Revenue clients acquisition. with grew in an of revenue by vertical service, in organic more grew growth than contribution by insurance our banking, the XX% with other financial that of from decline Revenue X% Communications catalyst media from

the increases healthcare in industries. clients with technology, automotive travel, growth the was in and banking, by quarter driven primarily Organic

quarter New economy clients generated represented fourth and revenue. growth of of XX% XX% year-over-year

modest growth across basis. currency on our generated enterprise an We organic, constant clients

this softer the grouping and While of clients, consumer we for in grew largest were with XX of volumes our XX of clients with handful headwind a communications quarter. clients enterprise a electronics

Turning $XXX compared with quarter, million to million non-GAAP was in operating year. the $XXX fourth last profitability, income

the Adjusted million fourth non-GAAP fourth an points EBITDA basis quarter compared $XXX $XXX margin of million with in from year. was year. up was XXX last Our XX.X%, impressive XX.X% the quarter in operating last

in Our the points was up year. XXX XX.X%, basis XX.X% fourth last quarter adjusted margin EBITDA from

existing growth pricing, offset Contributions progress This and impressive and wage reflects from in business, our by and revenue increased margin through inflation. new profit clients. in from improvements investment flow revenue program partially ramps productivity generation BXB new catalyst on

GAAP share quarter quarter last amortization per year. results $X.XX fourth was million income expense. to year. of the of of compared million net $X.XX per fourth Non-GAAP in $XX of expense for $XX integration of last the $XXX compensation acquisition Non-GAAP million, related million included $XXX million was EPS and $XX XXXX share share with with intangibles, compared based

expected was our due in for U.S. of quarter. the and fourth XX.X% rate Our taxes guilty which than to full non-GAAP BEAT change in our the year. income, mix higher This increased was exposure to geographic tax the

the Our non-GAAP year for XX.X%. rate tax was full

and $XX were Fourth of integration $XX in the fourth quarter source the approximately million, acquisition. service resulted Turning million flow, free million flow cash quarter generation cash totaled to our free expenditures from quarter. million. capital of $XXX primarily included costs, to $XXX operations cash This cash related flow in

to one We targets deliver acquisition. our this and synergy are year for on revenue cost track

came expected year, flow $XXX full in free the at million. over cash slightly For as

time to free cash for X.X% and net of of over expenditures We continue to approximate approximate non-GAAP to capital income revenue. XX% flow expect

of $X.XXX time source adjusted return commitment sheet, active Debt despite We to $X.XXX did program our the for program, service an net cash capital we billion. capital PK under Turning were reducing $XXX was the acquisition of equivalents leverage made at active this at the pro-forma of by billion net acquisition. was and and million. cash EBITDA achieved end the the balance to debt Xx quarter, and the fourth We the outstanding year.

employment, balance the business in return, Speaking quarter, we including our the repayment. maintained debt approach in investing capital of and capital

of quarter, the dividend quarterly per paid we share. During a $X.XXX

our We of share. XXX,XXX were of per approximately million. in $XX the $XXX also shares approximately quarter fourth Repurchase made repurchased in the stock average for price

in $XX full used dividends repurchases. we share and the on paid For million million year, dollars $XXX

$XXX we today, on our repurchase remaining share of million have As authority.

opportunistic and well. Our near free repurchase are our for flow, activity cash and antidilutive as debt priorities reduction modest share dividend term with

At year-end, nearly our cash capacity additional liquidity AR billion on remained and the our billion, of $X.X $X including hand, at line Securitization. credit, strong on our

sheet provides balance generation and the for strong significant flexibility future. Our flow cash

to business first fiscal turn outlook year Now, for I'll our full quarter the XXXX. and

us. mentioned, the and current challenges Chris As environment opportunities presents macroeconomic both for

project experiencing of While we're and slowing client also in share delays the our gain through verticals, volumes with from opportunities growth smaller with is consolidation to some some we see base ramps, providers.

outsourcing design, for as We efficiencies build their to make structure our drive and new using clients volumes approach. also run cost seek of more variable see and our opportunity

constant and now stronger year. half first low digits growth XXXX On mid-single to second revenue with currency the in of see to in the the balance, of we investments in making expect the half emerging growth reduce capabilities. faster entire and internally drive America across to steps efficiency and costs, our as Europe, Latin taking grow in well of further set also markets, as We're

revenue For X% headwind currency constant to first quarter. Based the we organic to we first on quarter a of growth in the range also point year-over-year be expect current the exchange X%. X.X rates, in expect

million revenue We of Based assumptions, first year-over-year revenue billion. our acquisitions in quarter. first of growth $X.XX we $X.XX $XX to XXXX billion contribute expecting the are approximately to quarter range reported expect timing on be to in these the incremental of a

margin of equates to an the range over midpoint $XXX quarter the to for non-GAAP $XXX first operating non-GAAP XX.X% operating million. year. last range, first Our of the quarter the at of XX a expectations This million a in increase include basis profitability points of

quarter to tax We million, expect of weighted diluted an share XX with a of average count and XX% effective approximately million in the first $XX shares. interest approximately be rate expense

expect business, flow cash As is approximately quarter our to breakeven. we in be free typical first

‘XX. expect on revenues we our be Moving outlook growth organic year impact reported full entire now range currency in our to for on revenue a year, we for the the of current to rates, expect X% XXXX X%. constant exchange no-FX almost to Based

of year. timing for the our $XXX expect of million year-over-year incremental XXXX acquisitions full We growth to approximately contribute, the revenue

with recent a range to These in the quarter half. faster This clients the in XXXX, expectations volumes fourth revenue billion. softness XXXX, for year in discussions ’XX expectations throughout general half with expect XXXX. in to billion of in we the Based of $X.XXX a our volume full we economic include seasonal consistent reported regarding muted including to have first second recalibrated quarters the on the of grow of $X.XXX their equates continuation seen year, than

of clients, currency Despite macro offshore environment, discussions quarter occurred large year, contributions from the and volumes us our call, and downturn more movement last give last our in the for consolidate to with the clients in increasing challenging providers, deals from pipeline on of with anniversaries second factors in discussed confidence a XXXX. the several two earnings Crypto the from volumes year growing smaller which our including the forecast passing

year full equates $XXX operating operating of a income $XXX non-GAAP million at the non-GAAP include This in XX.X% midpoint margin profitability million. of range. range of Our a expectations to to the

expense million shares. approximately and XX% expect a $XXX full weighted of million year XX to We approximately share and diluted rate be count tax approximately effective of average interest

We growing year This EBITDA XXXX. strong to cash cash under to free reduce with position generation in flow adjusted assume further by would further share expect flow no leverage X.Xx us $XXX we over if or over year, to acquisitions XX% another net end, free our million repurchases. by

any acquisition integration future associated repurchases. Also fluctuations are include currency transaction impacts from in and impacts costs not or included not with or does guidance outlook acquisition. future foreign the future business Our share related

cycles. I year and want offerings had our believe keep As expansion I business a resilient with business we free flow generation. close, to unique that margin say customer successful We through revenue strong cash will our growth, experience

growth to business near be January balance the at and includes leveraging than Our generation vision with despite faster our unchanged, for flow in the is last free the of presented strong strong challenges market Day ability future This space, cash leading XXXX, Investor meaningful sheet. expansion, margin economy. our in a term the consolidator the the through

the Leanne, for questions. that line With now, please open

question-and-answer will a session. Thank time, this you. we Instructions]. At conduct [Operator

of line Barrington first Our of Colicchio question comes the from Vince Research.

is line Your open. now

Yeah, more Are a offshore a Chris. some seeing piece? shift demand are more more Can existing seeing towards labor catalyst good intensive for you are how work? changing for you afternoon work, bit for little bigger type about talk you engagements demand patterns a example. And

So the as outsource are Vince! a offshore in that kind QX, about are with they Hey by when on people to near of people a of outsourcing driven first the seeing majority, labor we of looking that's looking continuation part, shore vast to we are are begin costs. at in environment talked run onshore reduction sort looking larger primarily and and for their the cost for versus

of we're we but that, in sort seeing that demands sort stable do. of seeing pricing the work those the are difficulty to we changes so supply or not relatively to value for higher of sort And a environment

sort we've catalyst really more integrated effort offerings to in-depth the correct; are takes or just ramp with Obviously some those constraints the of and as up talent cleared the in those we cleaned constraints beginning up XXXX had of mentioned, technical at up. we of it you complex and focus over business. a time know concerted some on year, on our You year the last made

of into we those we're XXXX more And much about. integrated seeing so excited bigger which are going a pipeline offerings

and what in with business. I'm have good that confidence the to in of dealing existing Are revenue be with the half these level in consolidation you curious past? with first expect signing the you sounds you will amount clients extent It largely clients consolidated that like are a related business the half. in second of signed terms

might big different we So are in predominant pattern consolidated correct, from providers clients COIVD, past you having through are they we are existing well the the growth we're have their the areas. A those vast that where and majority areas with. seen have as in as volume conversations other changes within chunk,

perspective level a And of the of what so think a quarters. we can first from consolidation have we high we in sign with confidence couple

adjusted increase. like then And a review if and the I fiscal ’XX, midpoint your you the expectation margin I'm could slight of operating looks look just to takes wondering puts at for that. Andre, if it

Sure, Vince happy too.

up that’s basis Your which in right! The delivered year. points is midpoint, XX XX.X%, what versus we the past

drivers and technology, our efficient our remarks we which in think offerings, the to the offerings, some growth on alluded G&A of certainly that leverage they grow. to his We platforms more ourselves our value what in remain margin more complex, of using been, prepared including more make higher technology as have Chris is

somewhat progression so a some versus program year reflect more last prior less of this margin bit, think on investment leverage and a growth I ramps. the that frankly rate year largely more down couple would the the in is G&A, modest and years upfront of

about So we including that third and the those earnings quarter see... large let's call, programs on talked

through talked contributor think to being margin to pricing the XXXX. cost increases, I in major in the our about environment pass progress and but we've a ability our

we'll from think and for pricing, playing up us. parts of increases that catching wage with not pace frankly XXXX, in catch probably some keep in actions game be but playing we started mid-XXXX I frankly that of cost up the are

progression. at the and recent factors still the to this think to keep those midpoint can that XX% guide that we've give XX.X% of us So the of Convergys back go when being you at as our non-GAAP if margins was since, at moving kind OI going. puts takes, those very year all before about it roughly confidence really talked the margin are We're and most to this where proud I I from of we acquired made, and XX% about think Concentrix very, the progress drive year, we

in questions. go queue. answer the for I'll my Thanks

Thank Vince. Great! you

[Operator from of question Instructions] line Our Ruplu Bank Bhattacharya America. next the with comes of

now Your line is open.

to my guidance you you organic single for be a for half. XQ fiscal digits, that as for Hi! the questions. first you're seasonally mid-single relates down mean know for low I back revenue currency. the full and digit growth taking my your growth the full quarter. in question Thank well healthy will first so The as a like implies revenues Looks guiding Chris, you're constant guiding year in year

you these XX% you but and two that other said to tech, at you've know end tied volumes your consumer spending providers about I look getting consolidation, to business, markets from electronics, some is exposed travel deals, are if of your business slowdown. consolidated retail, have consumer large I you're and like e-commerce, macro which and know

in So in a there's first what half in a recession, if what recession either second you factored terms half. happens have of the or

versus the half And to for the you expecting you full digit macro to large are a with from you're way you. consolidated understand coming in off deals organic the much growth know is associated I'm mid-single getting? volumes year. and trying that. the Thank you you're the the is what for factoring How you there in slowdown just a risk second for think do like quantify

Ruplu. Thanks,

you fourth we to is additional consumer clearly of kind it continue let significantly. we and kind break what of as know at basically the retail this plan electronics as based the of growth quarter areas seeing specific down during volume what in and are me When So that drivers, question their sort you fairly looked our mentioned macroeconomic And regardless recalibrated up experienced during perspective. that those you our on XXXX clients how changes do apart our fourth we XXXX what about have muted the of at that and the quarter. look we through we've from they experienced in

quarters ahead successful instantaneous over about and where four a we We kind then quarters, layered first going XX half, and of how the already two or two discussions be perspective are kind we’ll consolidation have and where from day They choppy. we the those period. get in being get phased in. They hence layered of a over quarter think we talk a on not

net the of will we new thing talked and we're want third are the growth. on add coming The new a wins, at on, and number that are Those in QX, at continue muted our is are net as seeing layer significant logos. progress and to so to that wins new they we new through will that volumes. we about volumes Those

verticals next not bound we are that The in elements that locations. continue well layer the do to by is of, macroeconomic so and

care BSSI You vertical grow, health saw grow. the

of Some of shaky the we're in tends that times to be those work more that sort doing seeing. we're resilient to economic

down we deals changes a and through deal that of and that we’ll with some primarily back The some to signed, in we've already expect. is we ramping isolated we've One we're the lot around already from them but what time of sort them spending and get come started working and so regions big client. from opportunities a seen little is are so we growth seeing longer next coordinated are and they layer change ecosystem, of that we've those globe have bigger the have to what see we to QX. for so the that pace forecast, if Then not as performed on slower mix to little a better those, in they taking into get in little and progress are layering have bit It’s their kind somewhat a on. of a kind

two, the the if opportunities of the we're the push that talking us are revenue around order win economy or think seeing against quarter through of deals and clients, pipeline in over asking them CX our the what sort sort we of close place. where making at half you in us, we And what about can with those Catalyst what confidence get to But then are of are year. prospective back in our look feel that clients we of drive rates prospective sort will operations are clearly next transform those clients of out what which new sort to impact cost of the we're are business. seeing also we're both our they and asking And clients net to need to tied

amount layers expect blocks of in the that time plan significant in. so look we've a also we back operate half two only building spent And business of not the our as year, kind of the quarters, putting we all in but deliver, at first of into to of regions these the and what the we

the also and expose We have we Europe in those, the for in past, footprint profile for about making traction at have margin as we're well we higher as LatAm remarks, offshore allow areas some in type talked in. delivery work where centers a for to scale some mentioned We're and us more higher are prepared We type seeing additional that under our us at to of which Catalyst invested primarily business investments. growth be good that of and that work. think a

we conservative think We see. on think building being right we're we blocks. we're the building what So

in As within any seasonal we large not mentioned, factoring we're XXXX. business

just really baseline business keeping a We’re for that.

it. but anything So counting not on year, back if fantastic, back bounces of the that’s in we're half the

we're about. Hopefully around that what thinking some color provides

Okay, thank all I the for you that. details there, appreciate

can about I if rate growth new up, follow my clients. ask the economy For for the

You know quarters were XX%. at ago growing they three

are seeing - steady When clients. economy what I respect a you type more you think rate state new do think hesitant are those you the to XX%. What with mentioned to spend? do I of mean, for they think growth clients? is you

clients in ’XX from fiscal in you've missed what if expect what the – total – can and rate you economy if wondering clients those should we contribution was going this. forward. was revenue it, maybe What growth I the from, I mentioned general, new And

with. figure Yeah, verticals replicate so just Economy Andre kind times as of that, of I'll the lot Ruplu deal you talked know a dollar that let prior for few XXXX. Company to New answer a we've the our But total we about

within tend players less to sort They So feeling within disposable traditional companies those of pain consumption the be where we e-commerce do as retailers same have areas. been there's new some e-commerce. economy and

and We've new beginning mentioned QX really economy acquisition focused they around of their of at also sort offering optimization, where XXXX the know at you them can growth customer prudent focus returns think of any in where consulting sort be they at for rightfully cost any where drive and companies around and process they growth a where we've just tend shareholders seen with at cost the investments are, our, as services they and we're so cost. being to about the traditional their to really were more services higher versus then QX, that

expect their that at just nature of are new optimizing the economy space think building beast expecting enterprise we versus deals elevated companies where rate. elevated the markets. new they an clients. rate But win do new that will the you are still the to the enterprise and economy clients we continue grow will that the net market in We that we still have It’s know higher are growth

in to pass terms total I’ll of in on Andre it the contribution ’XX.

$X.XX Yeah, billion so ’XX Ruplu the about overall. are total contribution in fiscal from new clients economy

been frankly has this XX% each here in that to at XX% revenue quarter of tracking year. So that right

I you I Okay, If thanks question priorities. Andre, on one it. ask for that more allocation can capital appreciated

with, target are leverage remind and Can think is is What dividend the share your modest you you reduction mentioned and what comfortable by target? debt? you us buybacks. the I followed debt ratio for what leverage

And fiscal the hear to of Is XX on still in to think I'd billion M&A. long the your $X.X ’XX like then to thoughts that billion term entailed M&A. get and revenues target by I

this inorganic environment your ’XX, in growth. fiscal So thoughts in on

Yes.

middle of of the question. So with I'll your kind start

for our $XX So billion the there. XXXX this get can is confident target for we're and still we business absolutely

having Clients that still to a important deeper is therefore $X.X of in billion that consolidate. the You're capabilities, want have We relationships right, and use this that amount some to and M&A good in with in of think etcetera. capital will we requires partners range of think that continue business. less scale it terms is the industry

a unchanged. not have just Obviously, we're there, They more need capital to looking from of grow targets first all the capabilities. quickly accretive we then hit what We're our looking return first for groups things we foremost we’ll on for deals expertise, and remain and look and be scale to EPS. for all, that technology that of clients for to perspective Those for think scale can sake. for domain our really

the know we've that X.Xx, From our high a it as as get very very for to know down to leverage net would feel a Xx quickly, and twos taking the business, of and leverage are perspective, a you as in well the pushing perspective. M&A under quickly higher acquiree, comfortable up be even we you this may we and low with said position get very, towards as cash free flow delever – generation from keep leverage be strong

priority current free as the for accretive environment, cash still think about supporting obviously the flow buyback in and a Right looking there. offset then modestly It's dilution issuances. we share share We do a we're you know us be certainly M&A, that's now, generate think XXXX, going active to a you'll rate from our we're interest dividend. from to I given see strong priority want perspective,

repurchase, I priority repurchase. be more part would would you powder the will be call now, delevering, that fresh us kind of for that. accretive after a M&A know share program then environment, and of of rate large-scale creating the share interest a than some for perhaps So right higher opportunistic current amount But in what

one If you can cycle. the thank for talk I sneak sales Chris, you can Okay, the about all just more details. in,

Thank you it you would you. in if catalyst as know attrition business comments it, rates, business? both base this and in make the as in as shortening; on You is the expected is well lengthening, have any environment can

No problem Ruplu.

just in starting a I cycle, discussions is little tell to of a form deal taking terms you feel clients that are that longer, right. sales So what will the

But more. more, So this what this, internally then made to based say, not we're seeing is yes, clients going volume outsource from the the kind going debate of through the to do do cycle changed. on strategy and expectation speed once what's do consolidate about decision through. has to actually they're that perspective? their a is look coming It's frankly are some is sales going How maintained they that they of

in it more On be of we're complex sales to which business, obviously cycle. the longer deals, tends doing a Catalyst the

integration more moving more IT just of longer – haven't it's to seen with. their extend and and cycle have It's necessarily into further. infrastructure any deal We just because of that we sales been that systems kind a parts

frankly From significantly. is perspective, attrition catalyst an down fairly attrition our

of You've technical talent at companies their of looking seen a resizing number kind opportunity.

a really somewhat the of driven stability within lot market has that of it. cooled and sort So

than was pre-COVID common a a In a lower job and seeing and have a it's the labor bit operations back markets a so different now trend environment predictable we're It with more sort little the We're hence more of starting little and seeing, where a in. in kind bit, not that to it’s trending general more. regions had about but prepared environment. trended operate lot through up still of up XXXX, in we business, we're levels as of it heated perspective our labor down course it attrition of our bit pre-COVID sort and what comfortable stable still to down remarks of little

Okay, thank I appreciate you for all it. the details.

problem. No Ruplu. Thanks

One moment question. next for our

Our the comes Joseph line from Genuity. next question Canaccord of of Vafi

is now Your open. line

perhaps We the an very up thought color just questions catalyst deal taking little of my large quarter. then for Hello a but on line a business cited I afternoon. gentlemen! more. here. as a up. you on more bit Good little I follow update a and that get large a – a progress focus on you've on know signed a we'd progress there incremental Thanks there. quick last just know driver, growth it I

much Thanks question. sure. for the Yes, very for

a it than and we leaving There's that of little over December taking So some projects the call the of play kind taking on coordinating project. ground. projects started that That that we it that off are slower change. one and reorganized in what I'll started a feet early vendors started because the got their us, that and have expected, number the being decline sort of kicked of ramping primarily within We when on mid-December’ish, are work is putting, they've that's things we're with of of ecosystem doing. of terms that on are is

happy on back we're expectations with expecting what our forward of and the The they be QX, but it meteor happy will with into this pace looking are to seeing more pretty in with going of we're seeing, far. so on getting Based stocks. kind what clients we're that

plan deal, the meaningful our announced we revenue it contribute that’s when and more the will to originally mentioned still we're to QX As seeing. frankly start QX, and in we what

Got environment in some interested now. for it, thanks work. work current for kind right be contrast any the a the the solutions more there's that. I’d versus And CX now then demand lot. macro demand IT differences of maybe right and Thanks complex if compare of to given drivers the

Yes, sure, question. good for

IT some it call customer experience I'll rewrite takeout other of might So of as of that demand more facing as we workflow sort are be cost discretionary Think know or you what the a of seeing from automation. versus projects. things in change

for experience, mapping seeing a on out, and if a demand and are then can different requests higher costs that. customer then around it take delivery We consulting more how we drives journey

And has of so changed what our seeing Catalyst little within in that terms bit we're business. a

no that those. they significant so the come are ROI’s frankly tied the infrastructure dealing been fairly From projects for They and along. in we to impact with, are client really larger to there's continue

and to projects I'll bid of the better funnel in within continue projects lack that of them out QX – relatively so win stable. new of timeframe. term. space the vanity We sort the dropped seems that pure Those Anything generally call for a and

appreciated. much Thanks very Much Great! guys.

problem. No

we you. That's the conference Thank Thank This you participating program. today. today's call. for conclude for all time in does have

may disconnect. You now