Concentrix (CNXC) 29 Mar 232023 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Webhelp transaction and Concentrix First Quarter Financial Results Conference Call. [Operator Instructions]. Please be advised that today's conference call is being recorded. I would like to turn the conference over to your speaker for today, David Stein. ahead. go Please

and first and call Lisa, have Welcome the news discuss to to note earnings. Thank the that discuss good our conference transaction's website proposed our our about Presentations. and Today's to and and to contains with and statements well that we are future fiscal on Events presentation announcement Concentrix as financial as the the XXXX combine under available expected Please you, release Webhelp effects timing, statements addressing completion the release transaction earnings evening. Concentrix of quarter today agreed Investor Relations results. that discussion

on constitute such and defined federal as All other than U.S. this forward-looking other statements historical facts, statements under statements laws. call, securities

to results or and cause because forward-looking those risks could of do statements. than different our information subject to events materially in undertake or that actual developments. our expressed forward-looking statements new not We uncertainties statements Forward-looking update be to are future

materials today's This non-GAAP includes recent call, constant uncertainties more EPS information financial including we in on our operating for announcement Please Also these contained and today's results. financial to during revenue additional measures, Form filings future on will see that risk could the flow refer on factors regarding report for SEC income, measures. growth. as and adjusted our discuss cash currency the EBITDA, provided information free Please XX-K. the as affect non-GAAP with adjusted most well the non-GAAP information annual our

permission Concentrix of to is be without property the recorded of call not may the This and Concentrix. rebroadcast

a Andre provide our Chief session. are with of Chris Webhelp an Chief first announcement, followed Executive on Financial the Officer; our Caldwell, Joining by They'll results call President quarter me Concentrix today's question-and-answer along overview Officer. and Valentine, and today

turn to the call Chris. I'll over Now

you customer Thank day transformative call joining and experience for Today the Concentrix you and much, our for David, is industry. very all thank today. a

tremendous growth, step our global clients combining to creation we for platform by create major taking are a Concentrix and a Webhelp diversified for that value leader provides CX a We and staff. shareholders, believe

believe capabilities technology We this of broad digital are very create across services that with customer about the at provider CX solutions experience scale. globally and will combination leading delivered excited we

important back X talk of I think it's and these together. the our background step companies to to of coming great thinking

in some we time we to advantage take investors, Latin that have us full to in and believe markets. the footprint for of lacking messaged our these order our As American footprint European for were opportunities

next Diversifying talked relationships acquisitions vertical be have to services in opportunity combination in about for and enticing. the consume with capabilities. them would and An transact base and offer overlap benefit. balance them is client ability our be revenue financial would past little to we the with We by helping geography, strong and of client also grow sheet. take maintaining an has mind that any returns our a to strategic a also additional company services to our Top ability the level across a by footprint

a us to of debt right important for back it's opportunity, up to larger flexing comfortable amount period time. for Xx are to we While short a close of within get the

track with of acquisitions. doing strong prior record a success have We this

the X in for division clients leader Concentrix in and market how When culture company the a rapid leveraging has Africa move on staff look been and capabilities meant Europe, are company's growth. the with. grow to to a America is the familiar and we markets. themes and always, to to it focus the has Culture all and history, momentum the achieve Latin both becoming transact critical on at As you Webhelp's focused of integration any new we gain

of focus, to was vertical digital align to our move footprint. at we that complementary When criteria expertise, not look Webhelp company could as Webhelp revenue next find our one our partner vision. client many had period growth, that attributes capabilities our with as base, there and the long-term for we complements forward diversification, that culture, in our

right organizations their together new bases they broader with while is X to capabilities to of of effectively. number also to access bring more to Now help time these client seeking the the lower digital sets and both deal markets manage partners costs

growth we For accelerate to the our the will industry. Concentrix, this position to allow us believe in leadership combination

consistent detail for on a year demand strong Africa. growth. in. in of and They European investing will expected has deliver Webhelp to X even more done markets profitable enhance Now economy meet billion companies in geographic from organic EBITDA. combination. a Concentrix been well $XXX our capabilities this expanded are take these these The they XXXX, and million able their X,XXX track that clients. allows than servicing Webhelp been years. all needed. of $X service we to meaningfully scale in has the above-market revenue very the seen In the have of believe $XXX and to more adjusted our of marquee more while services American adding the list X delivered record Concentrix, markets, position has little Latin of clients' in a compete Like been value each X enterprise to and the achieve billion to combination access but companies. we us by marketplace has is over not markets for past driven growth revenue both they new has This growth

Concentrix payment and clients practices, as exceptional offerings. on helps we tenure for Webhelp, base. brings to relationships deep business with banking, talent Webhelp expand of of ability their recognized processing our highly scale services North and with primarily include with potential refer also their case the they outside value the In KYC, with America. and unique achieve achieve based provides done past management as services value This this combinations. allowed long focus as capabilities examples. have companies client our emerging are has further will complement and that believe to client We business, growth footprint Webhelp and sales to these AML, technology-enabled offerings these These BXB large which which companies offerings

clients most impressed about $X.X the organization cultures have well-being, of Each Concentrix also in is of been diversity, to in aligned. exceptional Global combination people. similarities more expected XX than XXX last even operate their growth. This XXX nicely and globally. few distributed a revenue and Fortune in countries, for of are accelerated economy serve with and with diverse total awards with approximately been has base on for new more foundation the focus will XXXX, am fiscal demonstrating The are our serve engagement Concentrix clients clients, hundreds year which with has XX-plus recognized Webhelp the over new client billion company forma I pro that to years, strong XXX as around very X,XXX for

business. client new in company's and will of new mix only revenue the of strong overlap revenue and clients split to and global Americas, will Europe, footprints operating the of looks well-balanced X Americas, account top all at X/X combined combined has roughly Concentrix. proportion across what one geographic the and we the little similar between clients. presence the combination for of the at each a enterprise EMEA differentiated The in companies stay industry roughly economy Asia, a establish will economy our and Asia with Together, and now combined Together, the most like it have XX% to base robust Africa, global The scale. representing are expected and the enterprise

Webhelp footprint our to grow we Catalyst clients. digital able in Europe by increasing and Services business by our be up Catalyst will America from with to capabilities picking selling to continue and Latin We Webhelp are

within from margins be and Consistent reduce to perspective, practices, we expect with while balance adjusted for more, growth, best profit to which temporarily Lastly, into investing will transaction a go X sheet, earnings close still business Andre per will financial transaction while we revenue on in leverage our years the the increase after to accretive our growth. will it we share. Xx the

this rich are and world's in significantly transaction engagement with to diversity vision customer the talent. realization our services accelerate We the greatest company, to build fortunate of

to of seamless. a to strong background, and value President board experience Board also industry brings a and become Concentrix. Nicolas also the Nicolas more Vice Directors a and make of the in our the and be to business, CEO, Board experience. to Partner brings Co-Founder of force strong our new will CEO and Olivier Webhelp of X business integration join As look team. will GBL Duha, point Board Webhelp will wealth key extensive that combined of the which integrate Chair will helping of view the on shareholders' in financial I forward Supervisory will a and members newly welcoming entrepreneurial Olivier the businesses, add at Director currently Board. Gheysens, insights

and walk of I speak our year. now of for Andre the transaction over will earnings the call terms to the to results the the guidance and remainder turn to through QX

Andre, you, provide Following Over then my Andre. questions. to your update I'll we'll quarterly take and

with Chris. approximately EUR Webhelp at the million shares will to excludes closing, follows: per Concentrix The cash cash X%. stock price period. XXX to billion appreciates bear vest consideration a additional XXX that X.X XX.X This deferred the million in Concentrix in which note you, specified at Concentrix if a shareholders $XXX as consideration form years, of at in valued shares transaction interest billion. Thank X payable stock $X.X in This and is closing, at includes of share in million XXX,XXX EUR share will over

X.Xx EUR value Webhelp million net rate valuation transaction standpoint, realize. in a about paying close. to adjusted of the From expect The also Webhelp's synergies we reflecting we billion $XXX X.XX approximately re-finance EBITDA, multiple are anticipated XXXX We to X.Xx. a of at expect represents debt run

company, profile, issuance XX% X the senior the split to and owning the maturities XX and years, At expected transaction combined through plan between shareholders years, X of company's of Consistent unsecured pro we bonds with own with years the sellers. forma will payable note Concentrix with shareholders investment-grade the closing, Webhelp approximately to aforementioned XX%. approximately finance

will AR We expect remain credit facilities place. and in existing our securitization

undrawn cash capacity maintain on revolver, on liquidity billion of securitization $X.X We hand. close our our approximately ample also $X at billion and expect receivable accounts to with unused

a have From the billion in $X.X perspective, to forma on is basis. revenue expected company revenue combined a pro XXXX

profit Latin grow enhanced synergies. company in perspective, forma adjusted a growth the market increased combined and and XXXX is the expect of with the Africa. than combined that have billion to faster expected by pro EBITDA Europe, $X.X company We From exposure to America to before footprint

of intangible the expect accretion earnings first amortization costs, close after and in and the we per charges, full close. accretion second onetime Excluding year after share over X% double-digit in integration year full

in cost corporate of mentioned, clear IT, terms functions. procurement, Chris real reduction opportunities identifiable are there synergies, In and estate and as

harmonization savings value-based and information of expect from we systems, savings optimization. IT, For contract

drive we expect to efficiencies and volumes procurement, standardization contracts. [indiscernible] increased For through of

footprint estate [indiscernible] real both of rationalization some proximity. be companies most to there are where expect we estate, real For in

corporate, we costs. to expect duplicate remove For

While in to model, not separately upsides opportunities identifiable synergy couldn't the that included our to transaction. prior the revenue companies pursue related exist

year cost close, $XX in year million realize in to and post million synergies expect We the the by totaling $XXX second the year. third first $XXX million

with in synergies first to in year in and projected expect to incur second closing. $XX We these million costs the incurred million receive $XXX million $XX the post year

capital continue capital robust combined expect We business free modest working expenditure our and business efficient and capital flow the management. cash the to efficient needs generation model given

close a we paying on net years. be investment-grade to to our and adjusted closing, will will and Xx on principles to forma maintain debt intend our to estimate basis. down reducing that pro be We leverage debt At within a EBITDA X net our focus ratio to Xx commitment

We to expect profile strong. financial remain our

while We share dilution disciplined rapid will our grants. continuing dividend the to repurchases deleveraging equity offset and prioritize of

Webhelp, will of integration be organic the planned focus growth, realizing and successful on debt. repaying synergies Our

approximately expect the the hold will to shares customary we vote approval conditions, of favor Corporation, our shares, regulatory company's course outstanding their of the transaction have due the XX% of and end Mitek other shareholders Certain of agreed of to in including approval year. shareholders. International and those require company transaction. the that the The As to by for the closing in complete close transaction

outlook a and and then Now quarter, results profit transition I of quarter in our our business the review our with the the for Revenue in fluctuations, expectations, performed top the acquisitions. X.X%. X.X%. of a at Organic first end flow. We came X.X% and currency discuss revenue, from negative $X.XX in well end to fiscal as up impact currency X.X% for revenue billion the year XXXX. financial our improvement quarter from of cash was impact includes towards will achieving reported, growth in increases constant foreign The first first reported in the expectations higher

banking, saw financial consumer communications e-commerce care, and continued travel, in we softer of insurance. and verticals, and retail from experienced services clients. strong volumes client health In terms volumes electronics, and We

quarter of XX% X% generated of clients the represented quarter and economy first year-over-year in growth New revenue.

$XXX profitability. the year. Turning last operating Non-GAAP income quarter $XXX in million with to first million compared was

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

million per intangibles, Our to compared points quarter of due integration. included GAAP increase year. basis foreign year. comparison compared adjusted includes per $XX in with EBITDA share results currency amortization of from expense first margin compensation for last million million expense $X.XX XX.X%, XX.X% with the interest in share XX first quarter million share-based This income the was in transactions. last $X other Non-GAAP acquisition an to Non-GAAP EPS million $XX the expense up was of of net related $XX $XXX and quarter in $X.XX million year. expected was the $XXX and expense swing last

and Both GAAP in tax XX% the non-GAAP first were our rates quarter.

totaled quarter generation million free were from Our cash million $XX quarter. was million. first and $XX cash expenditures operations Capital the in flow $XXX

the was quarter, $X.XXX adjusted equivalents X.Xx $XXX were Turning million. end Debt forma the At the leverage and the sheet. and debt quarter, first balance $X.XX was was billion. cash of billion, end At net pro cash EBITDA. the outstanding of our net to

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

the million. quarter share. price shares We XX,XXX also an approximately remained our of for repurchased Repurchases of at approximately stock $XX $XXX average per in first

repurchase of authorization. remaining our the As million of on we end share $XXX had the quarter,

remained hand our quarter on over liquidity AR strong our At undrawn $X.X securitization. our billion revolver, and $X additional at billion, capacity cash on including end,

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

rates, of while in have softness the currency on quarter, expect second client range we some Based X%. we point current revenue X% a in versus a second be the to also constant volumes quarter. year-over-year we to exchange seen growth expect expectations, in X.X For headwind organic

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

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

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

Moving year. to the our for outlook entire

constant in XXXX year. full X.X expect organic expect reported revenue we our to impact on X%. to point of negative continue revenues growth Based on rates, current exchange We range currency the be to a the for X%

a in to quarter year, including recent million with expect growth consistent seasonal full in range softness of the timing in of to our seen fourth we've revenue volumes XXXX revenue We billion $X.XX This approximately of the billion. to throughout XXXX. year-over-year the include $XXX incremental acquisitions XXXX, quarters $X.XXX muted continuation for of contribute of expectations the equates economic full year. year a general These the reported

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

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

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

cash continue expect free XX% free million flow more to strong We XXXX. than with in cash $XXX to growing over flow

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

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

very much, our and of Andre. am proud very I first we team results the Thank solid delivered. that quarter you

most of performed industries. with our gains our the client of During portfolio key well quarter, several in

Andre, volume continued electronics, in e-commerce, their we retail consumer by discussed in some and with the mentioned though, As clients expectations telecom consistent with in quarter call. QX softness recalibrated our

perspective, From solutions. continue focused clients a than economic sales split in remain dozen the geographies. In climate, cost their and be to this but in across reducing on we supporting signed X with the verticals business new market prospective growth, for rather they more than logos structure quarter

that pricing modest some with existing help and being that pressure in seeing transactions clients are competitors -- value more space. need from aggressive help lower We that

On positive clients our investments cycle bring value of business. resilient longer These to both which the sentiments on seeing the power have differentiation. higher generally have across other the Catalyst services hand, CX several operations return sales we together where the with with a of but for slightly tend our industries work shine really because clients are and more engagements, significant

We and from increasing when but signings business they we how well month magnitude in expect resonates differentiates new second and us the the around and are quarter, in choppiness potential ramp. approach some our do market upside, finding competitors. are our that into One

changes and offshore delivered staffing was in decade staff the demands at our business, well an best the our operating since to we to performing scores Catalyst ago. its work-at-home growing services. meet the started a satisfaction quarter. operational XX%, progress full we perspective, our the nearshore in for first surveys is global customer over and as business innovation Currently, ramp. is client highest our the in largest our Within continues ecosystem program the strong performance addresses From project before Again,

increase have from ramp, we to volume. of view deals and second remainder compared growth and half begin seasonal to base the begin large underlying XXXX, large last volume as the signed wins expands to consistent factors our volumes in we any we suppliers. our new This For in year smaller expect without consolidate to business QX

that respective announcement, wrap complete of competitors offer M&A. our again was and few up the our combination driven growth history large, and touch recall long how expansion record Webhelp and Over we our across revenue value Part knowledge both we growth delivering histories, of and and up solution. on I margin can of built with experience by and growing have successful Webhelp our We a As outcomes, where of cycles market to achieve successful have shareholders. of scale. for a histories growth wealth a transformation on creating fragmented serve and

with We more we robust transaction and close to integration plan, a are get closer will share you developing we as the date.

the X successful Webhelp's excited Concentrix value of the upside We the clients, combined believe that this realizing look creates and forward staff We and it to GBL their that believe shareholders. we parties and a deal are value our clear very expect produce by in that company are possibilities for transaction, long-term Concentrix significant will co-founders for prospects for our equity a and is statement rolling partners, of portion into focused all very continued shareholders. significant on a that our

of business after I thank talented making clients of the on focused closing day ending, each with team, transaction. every partnership on the We new and a with now operate In Webhelp the team who always focus passion. we strong start better clients the Concentrix and the members to look want And to serving the partnerships with and forward our communities our our successful and in. we us shareholders

With call please that, the questions. for open operator,

Instructions]. [Operator

come will question Colicchio Vince from from Barrington. first The

the seeing combined levered on the quarter. less like does more look a Chris, right the companies? or Are and to areas with the acquisition you're good you of where now? the what weakness some transaction, vertical Curious, mix congrats Webhelp

basis, complementary. such BFSI. thank see positive very to mix other X very of vertical -- similar as question. you some Vince, for of It's combined Actually technology, when seeing look the where e-commerce very We that overall, When the the momentum, see the sort areas companies a in social together segments we at growing, actually it's we're We the from it's on pretty media very, a quite we in complementary. side perspective. the balanced growth verticals growth But put a complementary. are it's and

into driver? And you how And if well the business -- did the a as so, whole? are evolve? acquisitions major Were Webhelp that confident how how they're integrated

absolutely. Yes,

What from So have really who acquisitions. Frederic The are so Webhelp and not driven co-founders, they strong of culture a business over acquisitions. the of and with off incredible number Duha only growth, is has Olivier integration those think done robust. organic started how X by history. XX-year acquisitions the certainly have very had successful them Jose, made is They've their I entrepreneurs but

that similar through which bonded They similar very has are it to culture and it the process, tissue happened and how a continues to that ensuring and and people much that they what stay activity smoothly on and stronger companies on of how the clients, forged very of is connected integrate diligence business. their into base Concentrix very focused is saw focused has buy, we the to M&A their the now,

So around much they've organic many the their fact for also acquisitions. accretive we're It's been they've confident very very, than many, them. But many, very stronger done strong that had overlap base growth, for years. extremely shouldn't past it how

companies adding on they're portion them of that venture-backed names? the new companies? sort Or type any are they economy to And meaningful of of are household the portfolio, any

exciting really us companies vast in to new more net financed those diversity because client Vince. what's financially doing economy are mean, it to base. economy appreciate out the for well some It's and additions fantastic of have new our new important primarily robust They have provides companies us growing. a quite some I are America. And they're companies. more that are and that But they and combination, well. emerging of coming Europe Latin because majority is economy new that's

your may. a consolidation transaction? of you more Does if I discussions bigger help be -- footprint a one you have more post given you'll me, will And for -- this in much this that transaction

believe the prepared force land out talk we and I a Vince. driving we Europe of in enough last sort America When that and scale believe remarks, the been we've presence haven't for that mean talking Latin in of it. my and bit we it, and had is investors looked we a to big to absolutely, Yes, year look NPS growth or when and competitive high Webhelp missing at incredibly markets. the got an with that we're incredibly entire bill opportunities capabilities. profile strong perfectly. we got set strong in client frankly, set. that their landscape, They've on both fits team. got They've very And It's

what look Strong deck, a when that deliver. they where you with our they if discipline our around at And And very, little you footprint. really at with have capabilities. it's match that, look very investor overlap perfect

where So a consolidation, when Europe. "Hey, said, really you historically, have about service talk all we someone they can't to client of

African an have don't You presence.

Latin in all strategy." holes your some American those fits conversations. got This You've of

couldn't be we complement X with companies how so each happier And these other.

And coming our Bank next question of from America. will be of Bhattacharya Ruplu

synergies revenue a Chris, you expect the on bit see. to more to little build I that wanted

expect pursue said verticals You didn't talk have? separately. And any of not a any you you identifiable there geographic this capabilities do Webhelp you locations you adding bringing basis likewise, and combination? you adding? about that there are of Or Europe America? capabilities that is part servicing the revenue that dis-synergies it not were they're opportunities Can as -- that Latin in are they're or can a talk some Is that companies that both that could about on just bit little

So thank the question. you, for Ruplu,

at is revenue but to more were Part the combination process not that one reality it, that selected America, of the and footprint looking the in really is to talk is is, team because either go expertise that the deep of in incredibly the opportunities strong. it's and probably of that and respond this that And synergies. hand. just have the domain And region. footprint. was are Webhelp Europe capabilities Latin first seeing capabilities than could our or the we for Footprint those in hand part important appreciate important So it's not we let's about of opportunities capabilities

which important, in And expertise. some of is deeper but sorry, our -- some so services not vertical only even good or do bring that aligns really example BFSI. verticals, A verticals, expertise the to in they is financial

their very, scale within Some not services, KYC, your financial And of services measure that services, Latin very, strong they Europe. very collection those from very services We very, in in payment of by America services fraud the in did very, any similarly, do anti-money around customer, have capabilities very, to management, know some laundering, Europe. at strong.

that after complements both then so capabilities And really and is the we're what footprint. the

certainly meaningful strong Pac In we opportunities how couldn't terms Africa Latin at lack the that that America because we a they was it, of of we're effectively component number. looked Europe North of that. with compete at modeled look we their the Asia that footprint opportunities couldn't a and or being in American key and are of And it

just reasonable it will to win at run expect and going our not to you're all win us that to is but rate benefit model. it, a rate, of clearly, we that Now upside

client. we with same to -- did dis-synergy a very services have similar we diligence perspective, From like-for-like in same the the reality other little when Ruplu, the country is acquisitions the

it's de very number. minimis like de minimis, minimis, a fact, de In --

clearly the And by fact things. revenue the in always when while that possibilities the there's were most of so of reassured just we study we dis-synergies, de that did scheme it's minimis

revenues. Okay. of Webhelp of their footprint believe, customers. some you that about some I into the business in of saw I that have $XXX of presentation fiscal into million now the 'XX take thought to Catalyst The opportunity the Catalyst I Chris, was business, in

the in do the the that -- of billion is of Or how much helping or there services And would or much say that 'XX $X.X there? core? Webhelp, revenue? you're would on that in So is is, all targeting off you it -- seeing Webhelp $X be you're combined you Or asking fiscal combination on digital billion that do expand for that basis, digital IT how services revenues some a see IT the forma pro IT another BPO service way you from they digital side.

question. great Ruplu, Yes,

the Concentrix. Webhelp within it business than So IT the smaller services mix is of within pure what digital is slightly

of And so base. X% of it to revenue, the XX% from a we although X%, one about part come X% That's story. go to when will much bigger of together, revenue obviously,

the in business. Concentrix that . a Europe as Webhelp in build Eastern to of has story Europe, trying very centers and out talked part other development The our talent, places technical has been profile focused Catalyst Latin about, Both on within is that both to strong drive some and very, margin higher we've in America. engineering

that of And once so benefit get we the transaction away. the closes right

factors. we've faster believe at the X more solid business out. grow. there talent about to by And that have two, to this been trying already we markets because Webhelp have those into we within doing can is believe So continue to look a we build it access can then base that you We to additional grow

Can mean reallocate any some you ask some million on example, cost of of required, of effort footprint. estate I year talked to synergy -- bit know -- X. like I you -- centers about call little targeting do do integration expect integration a bit do the Can Okay. on that's or I you've a rationalization the synergies side, Because about real employees. you cost expect the you by you're talk little $XXX more close for charges? the mean you

you're of a forma that mix charges for versus And combined the any basis? versus the would there are offshore pro in? company what on So factoring nearshore be onshore

Yes.

-- split talk across of your generally of every Ruplu, answer sorry, of model split and we let synergy, $X Andre for the offshore. the dollar charge. cost of To business I'll So onshore, question, first voice about about business nearshore the

the heavy the contracts the $XXX tend come a you et million, half beginning close years. if over in as on expire, at think charges So of charges. versus cetera, within out little you million $XXX The et back the things when charge about sort X to of cetera,

We have historically but we've done better than historically that's what that, modeled.

some you in about simple. real think Webhelp the When footprint some is that pretty centers and reality uses it's think data cases. of third-party The you the estate about savings,

a business. to to centers. get It's in have of process it's data while That's We some own We in pond on overlap which some sites we -- few literally terms of savings similar within percentage, that depending to delivery transactions of it data mile a delivery areas. the very a you're few the or a past across very of not simple some on. small the street, buildings And centers, takes where and very a a markets our kind very, but centers side identifiable. kilometer consolidate markets, are easily in there while our have

bring And order keeping market. that grow X them of our still we get together, while economies the in simple scale of buildings capacity we to we those it's if putting together, need very within the

bring you your for what to And really have you as X see part. you so some as exit point, leases the the that do. charges and And we organizations together most

Ruplu, think kind numbers, history know it on number, transaction every hitting our we've time. synergy of hit we've and as synergy you Our I we've of our done, hit

the quite confident about And offshore, nearshore, the achieve appropriately perspective. and do modeled onshore. we And I'll for to So we're within we've charge it. it on what we pass you Andre, can think clearly,

Yes.

about comes operate companies in, both with a Ruplu, a perspective, capabilities. mix nearshore for mix there's bit shore XX% the difference where on heavier the Webhelp onshore, of So

have XX% company offshore, XX% nearshore. XX% the so onshore, And combined will

strong nearshore is percentage and languages and for those a America a stand-alone in also nearshore what Concentrix Eastern bit that offering really higher at than Europe that have scale is capabilities a as that in they we So Africa. look in as nearshore would is, a Latin offering, basis. And on

And up balanced so that's us. between We offshore that's end very nearshore. and attractive something with a onshore, to mix very,

quarter. on one the Got question it. Maybe I'll ask you

of economy growth quarter. X%. You talked about It XX% last new revenue was

that in do similar And trend at growth? economy new looking And are has, a you rate? they expect now sustained then revenue can think at growing that economy at You in Webhelp the new that terms level 'XX? to clients that how we're be a of fiscal

Yes.

So the are Ruplu, that. as about we new by companies, in e-commerce some the economy of softness impacted talked

growing the of we're part a The economy run are base. I from I diversity seeing their so those of perspective right actually area, of see client think sustainable with come rate. at I that. companies what a we'll And economy, it some And it's but growth than the the areas better a little Webhelp of that little is in faster as at expect think back that of the moment current probably new sort

of of going differentiator is business have their that they it the they has they notice big businesses And about these local a we that how the do. model and about, we as You'll European that Nest economy go. clients new Webhelp part is more think than in talked in how really market, around supporting market to markets, these

that challenged rate in driven And customer more they And growth expect rate. times base. economic of so can faster a growth continue within that that's type even that we

It reported million X% one guide is I full the if squeeze constant you're just $XX $XX million I can currency. Maybe keeping to lower. organic in. Okay. guess looks year X% like to or maybe lower the more number

to has would impact? I -- the any cycle? attribute that sales a in the you FX just cycle or I from rates any there -- mean, that in standpoint, change close and just higher sales or [indiscernible] And the think been

in of Yes. Happy FX respond, the Yes, an for we've Ruplu. a year. the a to headwind bit seen increase as full little impact

last So go if to our breakeven. said back was call, you we it effectively

where Now we X.X are about where in currency in they've headwind -- the time January is we point earnings to it from cycles, we're right announced at back we the March. here that they mix as to saying late and look move Chris? Sales before a

transactional little we've to that. it want as of The relatively deal From a how that cycle, people cadence flows deals talked a it's like Yes. past. of sales quick. reality about It's don't slightly The than in through still but talked more a just we of has complex longer sort some cycle I the about is Ruplu, on perspective, is the more sales over-rotate longer get that tends to end, pretty with expecting they checks be seen to do pretty to support just It's is deal need able pipeline movement of deals. before. with things the of to able to going we've what there are that they're similar actually to those internal their they're and the the that making to Outside balances they more be companies, sure that similar. ROI

And so no major call-outs.

is [Operator coming from [indiscernible] Instructions]. And our Canaccord. of next question

announcement, your Maybe year you ask how relates to the question in on like it any this international on changes seems complements growth well. announcement. this it this in plans as strategy business internationally? Webhelp your planning are of a I'll Congratulations your context year It really

Yes.

we've been international investing in many talked a good it's for we we sort years. as Europe. of footprint So to about invest our And The question. in in is reality that the prepared continue remarks,

We to Africa. continue in invest

until is to clients. footprint. and really build deal need countries as continue we invest accelerate our that. we focus does to to is closed, an Latin We the as in separate and a Pac our company What and within America out continue Asia this But to support operating independent on few continue

make so those we'll closes. transaction the continue to until And investments

Got extent you're color in perhaps it. vendor on that incremental for more coming can How a half? that maybe the second to on front? the negotiations And those that are the little to along? this speak expecting Chris, seeing you progress consolidation you're pricing the And volume the

sure. for Yes,

quite we're and line much one it innovation decade, the remarks, them. capacity So is of with the being expect network. I successful. separate in X for the prepared for benefit account those think able scores driving CSET, It's provider party They're generally for more the within and get we're talked we pricing managing what one needing is within predominant we're right about the consolidations their that quite reality now -- less benefits, less a positive. last sort we're or in to I to party remain we clients the is the mean, Where is, less that part, is is is some stable. And most where our stable. as effective in higher seeing cost will sorry, higher

so costs that And them less.

consolidation. savings seeing that's of by vast amount really And so where the they're driving the partner

time the Everyone all may a That you evening. have Thank today. for for have conference the for today. the Q&A all participating. and concludes we that That's disconnect, and great