Concentrix (CNXC) 24 Jan 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Concentrix Fiscal Fourth Quarter 2023 Financial Results Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker for today, David Stein. ahead. go Please

rebroadcast our and Quarter Lisa, the their forward-looking uncertainties by may be actual results Welcome the recorded to of address call cause Concentrix. permission to of Thank statements in and with XXXX forward-looking expectations, good contains refer our statements. Earnings or expected in Fourth or information earnings undertake We materially events result performance filings update our be are not Fiscal a to and is today's the developments. Call. Concentrix recent Please written Concentrix do of to those as that uncertainties you, our annual may evening. report public without future or statements Form This our matters This forward-looking property expressed different new additional our that affect address includes future that, filings nature, release SEC. These the could than with uncertain. This results. future in regarding our call on our risk financial SEC factors in the other the for that XX-K and provided future information most

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

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

I'll the over call to turn Chris. Now

everyone, believe made year fiscal an investments you which the Hello, call. and we focus for fourth today our XXXX our thank joining Thank we fundamentals. year in was incredibly quarter and David. exciting and on for strengthening us much, earnings you very It right

of We are base, with excited the about larger a the scale. and front expanded solutions ability client business to technical opportunities footprint, are geo-diversified with more us now in deliver advanced at that marquee

X% as-reported Our XXXX basis, approximately increased on Webhelp. XX.X% an including from revenue

a about company that the already started to had would We clients prior cross-selling that fourth EBITDA either XX.X%. generating for of flow cash non-GAAP increasing the while excited operating very have points free adjusted year. up quarter our our are to revenue the margin traction with On XX the X% increased We basis, XX.X%, from neither that in coming income basis our and side were combination was pleased together. small

integrated mentioned evolving while more in we examples our offerings of solution on these include ] also client made product, deploying be developing AI our property will in XXX,XXX of our multiple goal, our now for XX% legacy QX allow both operating more in that ConcentrixCX automating approximately more A of to than desktops. also be we great us is initiatives and built new XXXX, to internal to by allowing Throughout productive our reducing game changers and our internally deployed paths intellectual consumption external progress Hitting developed operations. to [ by environments costs. initiatives into few

the upgrade to ConcentrixCX platform the intend new continue our We and quarters. across Gen next to expand X the [ in footprint to ] AI

our in-house clients interactive more intuitive a through to interest over on their results. and has suite has on based rebuilt gone massive training in this accelerating a XXXX. And AI and being is CX year speech upgrade gained that creating and game training engagement proficiency, changers Our XXX,XXX Gen from use tool

set innovation company demonstrate clients. mindset, to differentiates faster All software access a of we more improvement up our us. believe which to In technologies value XX,XXX higher of tools have drives internal these the all-time assisted focusing management, our and hit are high, higher cloud metrics in us the addition AHT and from to continue services. us transactions a examples and clients to almost used complete to or automation built in allows desktops. our for to value competitors double-digit to self-coaching is deliver These our external an personalized Smart efficiencies CX NPS, XXXX, for all peer and Through AI. Gen we just partners greatly real-time key on delivered started our processes solutions our services partial we Our to like deliver which has out and which haulage with Suite, roll complete to tech-first and clients

Turning to fourth quarter. the

deliver to making financial the and XX% a in for operating considerable about Our on scores the X% of initial basis progress the which while and more several level, constant I'll clients bit. as fourth increased quarter, with but service excellent over which review Andre pro talk quarter. a continued team high grew business, at Webhelp revenue will detail, our in We currency the in integration reported a in met forma

in also operations delivered with EBITDA growth offshore and improvements Europe, Latin BXB as also delivered earlier. and of pleased XX%, catalyst, fourth I'm well and I to we These areas. from movement our result our as as adjusted are of Asia nearshore efficiencies, and as well as record the grow XX% We increased specialized health some in continue tools in and respectively. America solid income care quarter up key highlighted a each non-GAAP continued delivery operating that that verticals to

seller stands a [ global at allow over technologies ] on selling created and Clients which We in focuses initiative, and our that consultative our will value both $X.XX One deliver Sellers complete solutions advanced of have enterprise transformational currently end-to-end within deals. larger appreciate that capabilities our a in extensive sales of contract to us With continue billion annual pipeline to reach. QX. all service strategic invested new set

of range a across regions a broad included quarter services. this full delivery of and verticals wins clients Our spectrum providing

an growth of experiencing operations. exponential money international compliance company transfer wins, a A few those for partner saw high-risk examples

solution We and are prevention excellence now a laundering FinTech client. center this experts includes The European and for of leadership. skilled providing anti-money fraud with services

will The of Know advanced this combined Your second project from platform this and of launch that capabilities the later from Customer technology came our including Webhelp. business, quarter, phase leveraging catalyst

Our premier health -- mental health access. for clinic challenge faced consistent the practices establishing customer of

providing a AI-driven are curriculum, We contact services, modern cloud generative integration and AnyPaaS involving solution, comprehensive solution CRM a our functionality. center

scheduling empowering experience enhance in Our and increasing streamlining efficiency solution overall health. significantly team and customer and the the is to referrals processes, mental

provider revolutionize days, integrate we capabilities inquiries. insurance assessment is system quality and stack, the member and perform XX started client. complex health management to the overall transformative assurance best-in-class the for for Within technology evaluate navigate and to helping solutions Another and company care experiences members sought This the with to assisting CX review. selection

Finally, an faced multiple automotive manufacturer challenges managing vendors.

services operational analysis their it strategy on our compliance combine with strategic the solution within Our clients pipeline and higher forward And operations, efficiency and towards and that IT Based significant reporting is Concentrix core evident business. automation reception capabilities catalyst CX for robotic working. leveraged practices. team intelligence our implemented solutions. The of and our achieving capabilities best develop Catalyst is from that innovative dashboard of opportunities our that makes a step

technology digitally domain adaptable, global of as combination delivery differentiators. ability the invest and our and enabled key to expertise, deep view clients scalable Our secure

analytics infused unique continues to Our intentionally digital wins. and drive technologies to sales approach

[ milestone create a have X platform transaction. the edition is creation. and [ Africa. new Turning now multiple of company. chapter, value most proposition Europe, We with a operating one footprint combination This capabilities to of technology marks the broaden world-class our and high-value America the the global technology market solutions our Webhelp in adding significant of significant for her leader our well-balanced in robust, industry. of Latin in AI beginning ] global new strengthening a a end-to-end companies value The our verticals, consulting, and the in and ]

sales and is integration of and practice new ] global is the smoothly migration the starting the management X the over we of HR successful systems our start quarter, companies contributing as The the Examples Throughout [ structure. and integration establishing staff achieved anticipated. include of significant XX,XXX outcomes. leadership to progressing

thrilled execution. staff are talented combined of our strength the We and with the

that I and are discussed deliver when have we could for we are we As synergies growing announced the company cost we a wins to the mentioned, without other, already the pipeline track on won converting neither combination.

to forward. to expect XXXX. the we for make achieving Turning towards our the first move synergy targets progress activities quarter, fiscal In as integration combination

expect We pipeline well. continue ramp wins synergy to to as convert and

generation cash For we expect reduction. profit revenue and strong growth, full debt the improvement, year,

and our XXXX being a in positively to the Gen also the of part influence revenue into and see year start early XXXX. AI will later We margins year that

our in adoption client entirely see these solutions the now benefits with not the While ability competitive confident are and timing of clearer, advancements to from specific technology. are and we still offer AI

new take few to develops. that on use time are their taking customer more experience these capabilities ahead adoption, seeing to the for out intent services own tangible we'll advantage investments act returns a to the invest cases, quarters. and are for immense and see -- higher offer clients can efficient it continue building and AI next intelligently level benefits us We of to the we make as in technologies potential service and of our market our clients are with of emerging customer improve on While our the

believe concept that and we're currently work. the AI will Gen customer on with enhance of to working Based on, experience versus our human conversations continue clients the we completely automating with involvement proof

end a includes be managed technology replacing gaining engagements, relate while The specific for technology, were supporting the few type moved customers. more services work automated allowing concepts, of services game our of Gen transitioned run that while these of few low-value we use changers to the XXX around our the revenue mostly cases the relate more Our personalized and or generate AI pipeline to productive track engagement A group projects have current projects more managed client to completely majority environment. over services are to and the phase. to

in executing summary, to AI continued great Gen allow XXXX, We for the and at believe In strategy in scale. investment growth to investments require the will further believe that acquired XXXX deployments outperform and model market. ahead have strides market us organic making a that we of growth I in we are made will our ensure differentiated

their their the I continued want adaptability success for and clients formidable in our of exciting Finally, an support investors the execution confidence positioned and the in I commitment ahead leadership the to built strength collective want us industry. year market. and Concentrix. our has thank to all for to we've Directors forward talented hard also We force and in work company. them Board for of look Their as evolving of our and to the dedication team trust, their thank our and the a acknowledge for

Andre? Andre. to over call the turn will I Now

Chris, a and we everyone. debt with revenue you, Free our financial fourth profitability quarter for allowing also for fourth guidance. now year exceeded our for but fiscal the in QX results that hello, and I'll then met ] our remained at Thank pleased the outlook begin [ report and substantial XXXX. our discuss look cash to quarter. strong, metrics business flow reduction I'm

Fourth billion, X for added $XXX included last quarter Webhelp the which was months million the business the revenue of $X.XX by quarter.

performance basis, are $X.XX the of separately on a resulting quarter beginning as constant for forward We Webhelp at of the forma On X.X%. if now pro fourth the growth in business billion, completed managing pro the currency Webhelp will the integrated approximately reporting forma was be combination an was revenue we not basis. as quarter, going

legacy pro from the travel from retail, than more softness contribution forma grew offset Revenue Webhelp X%. basis, a end in prior in grew guide revenue our clients growth. quarter. the banking, X of some On and financial strategic and the XX% the and increases verticals contributed anticipated, year from came clients our insurance volume forma revenue the services faster in business low business full a at few As with Pro e-commerce with clients clients.

consumer and several basis Healthcare was client softer with from clients large volumes revenue client. basis, consumer X% forma as grew a continued on clients forma pro pro by with offset X% electronics by electronics a Revenue on growth a technology grew

in decreased X% revenue by year, decreased vertical and revenue X%. Continuing clients clients from the communications other media trends pro from earlier from forma in and our

XX e-commerce communications remained our a While grew soccer of binds ] headwind. retail, of clients with on forma XX electronics, a [ we a pro clients with and basis handful consumer largest

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

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

our non-GAAP profitability flow-through points had pro fourth Adjusted Non-GAAP This and up reflects Our income EBITDA basis the and basis, on Adjusted quarter, operations the beginning On would closed as million margin year. at XX prior revenue profit gains the year. synergies XX.X%, from the operating adjusted of from year. Webhelp if up basis $XXX forma have progress growth XX EBITDA points efficiency Webhelp from a million. year's from margin transaction of combination. XX last across points $XX as last of follows: EBITDA early was prior year. margin with of of margin of metrics last up $XX been basis million, the million, $XXX operating XX.X%, XX.X% compared up attainment

in [ do a swing reflect net due losses. our the increase believe future contingent $XX to million ] in changes share net to underlying These in the million currency value with in the the the that movements large Webhelp mostly fair and line items not quarter items consideration The consideration share the was other foreign operations included reported expense not fair related our these of in foreign combination. are predictable. currency value combination and and of We of health $XX associated

Accordingly, we metrics non-GAAP and to EPS non-GAAP our income have exclude items. net these adjusted

the income consideration related removed the gains and value non-GAAP contingent periods expectations. believe that net how aligns quarter. all updated in is net Webhelp This to non-GAAP prior been guidance to reporting on with in combination exclude change has reported change. of fair for and change this results more basis EPS non-GAAP Going and presentation provided The reporting with EPS consistent and a this currency income We forward, net non-GAAP our share closely foreign EPS also losses. for of measure we investors' reflect confusion our and the fourth

million fourth million with Non-GAAP related $X.XX Non-GAAP EPS $XX net and in year. share expenses income $X losses in intangibles, $XX in issued to the contingent million related in year. share in and share-based compared value A $XX combination. with the integration, last with compared combination $XXX in quarter compensation net in expense. the note of for million included currency $XX amortization of XXXX per fair was was $XXX of million connection results GAAP share million million to in the $X.XX change the consideration, the last quarter interest million per imputed seller's $XX foreign

and This related integration Turning capital million $XXX to in This $XXX quarter, million, free operations which expenditures and flow. from generation to cash cash the in transaction our were $XX totaled million. the of $XX the Cash of fourth quarter costs. costs is combination. resulted transaction million guidance flow the integration including within range for excluded

XXXX, For in integration excluding than the our full achieved expectation Webhelp. associated of year transaction with more free cash we costs flow, $XXX million

X.X% we to Moving approximately be revenue. forward, capital expenditures of expect

loss to of net operating onetime than than XX%, Our changed exposure us and use This GAAP and non-GAAP anticipated. more carry our to fourth taxes geographic certain minimum tax respectively in XX% to lower was rates the allowing for quarter. expected due we items were that and income, mix reducing us the our

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

And balance end quarter, was was and balance of included total senior Net notes borrowings fourth the under billion $X.XX cash AR The as debt sheet. fourth $XXX million and of the discounts. at debt outstanding of debt debt were At and securitization seller's million facility. equivalents end and billion cash net $XXX Turning term billion loan, the to $X.XX our million, of the costs quarter. $X.XX our of the gross on note the issuance of $XXX $X.X unsecured reported billion.

the combination. of the year the at Our of $X.XX a billion million gross reduction nearly $XXX end represents is debt the close of of

down cash of balance the and sheet free flow on pay cash debt. a to we As reduction use

net combination reduced after which program had return. $XXX the did we We closed. addition reduced by forma year-end, at stood by We debt at X.Xx pro approximately this X.Xx an continuing active close to leverage, combination million for adjusted in net at year-end. By EBITDA capital

of combination. path gives close years committed reduce a and net to leverage our to strong EBITDA us to Our EBITDA growth adjusted flow the plan free X generation clear leverage close further adjusted Xx the reduce and of to within cash to we're

allocation we disciplined our synergies with Webhelp, continuing and focus on debt. repurchases. Regarding capital integration and repaying our regain the to our investment-grade our that prioritize paying will leverage Consistent organic share continued of planned principles, debt dividend down realizing growth, priorities, commitment remains while and

quarter, paid During -- the say, through fourth we $XX our million annual of ] quarterly should [ I $X.XXXX dividend, share. per

million. repurchased share. At approximately an price of We of also per approximately $XX $XX stock XXX,XXX our for shares average

For paid in with We've the repurchase quarter first of year-end, approximately shares totaling we XXXX cash authorization including AR million. $X.XX was plan the At continued million remaining At strong is in $XX on made credit, our of $XX billion, year, hand, quarter-to-date. share and repurchases share at capacity $XX $XXX undrawn, securitization. in dividends on the $XXX our year-end, million the million $X.XX which full repurchase repurchases. to line additional remained our and million approximately billion liquidity our of on

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

year These Investor the in attention help the with accessed turn transaction the XXXX. revenue first I'll To comparisons business of full year closed at XXXX. our performed forma Now The is pro how to to pro combined be my historical figures quarter forma year website. outlook have figures published basis, would file, on demonstrate available that have metrics quarterly beginning Relations which full at we future the and our for performance. data can on model help a business the go-forward

currency billion growth XXXX. in revenue range in rate billion $X.XX reflects forma was quarter, Pro billion forma $X.XXX quarter and first headwind. X% X% $X.XX of current exchange constant the This approximately rates. first we X.X% the For exchange to expect approximately be to based of on revenue pro the to

XX.X%, in $XXX approximately million. quarter, of range non-GAAP operating first to and to the income points basis. guidance, XX expect operating of income our an XX in profitability, over income million midpoint of million prior basis equates of the basis of quarter we non-GAAP the pro year the in non-GAAP XXXX. $XXX was forma At terms On In a pro increase operating margin of $XXX on basis, forma a first the this points

of approach this the to in the with quarter a Our The of expectations for non-GAAP share EPS calculation range $X.XX per earlier. share. described metric consistent is I first per that $X.XX

approximately meaningfully free be cash expect ramp in typical quarter quarter. flow the second in breakeven our up first is As to to cash free business, and flow for we

expense interest be interest on million quarter the $X expect seller's million in to We $XX of first imputed approximately note. excluding the

effective rate of to We expect an XX% XX%. tax approximately

expect We diluted million a weighted count average of shares. share XX.X approximately

follows with calculation periods, and our X securities. Consistent prior between class EPS earnings diluted method. common Allocating stock the non-GAAP participating

about first XX% For common X% of participating of will we estimate income income attributable and total securities, be net to be the quarter, attributable about will that to net shares.

year. our to for entire outlook Moving the

be to reflects Pro revenue basis was of XXXX our This pro in the revenue headwind. $X.XX expectations billion forma the XXXX. a forma year X% revenue billion exchange year. currency billion point of net range constant to and growth for expect full XX rate We approximately $X.XX the X% full $X.XX to for

operating of basis At forma midpoint points prior non-GAAP an to year to range a margin the pro this a Our billion of XX.X%, of $X.XX a over the and billion. on XX full of the year non-GAAP profitability points operating range, in expectations basis increase income XX basis. include $X.XX equates

target year $XX full of our confidence the X year million. in our reflects for guidance synergy Our achieving

our current on net rate achieved synergy run annualized context, million basis. is approximately For $XX an

non-GAAP operating was the Pro $X.XX full XXXX. year forma for billion income

in $XX.XX share the share. full EPS for to year range are non-GAAP Our the per per $XX.XX of expectations

$XXX year approximately We interest million. expect full be to expense

and share shares. an million effective $XX weighted million XX% approximately interest to rate of of tax the average XX% a diluted on count XX.X imputed of note approximately Excluding seller's

approximately In expect common calculating to EPS full for shares common non-GAAP the XX% total income diluted of attributable net to year, be attributable we will shares.

committed acquisition EBITDA year-end, growing cash to in to million over positioned adjusted adjusted leverage close net close of us acquisitions. approximately reducing terms EBITDA net no combination. expect of after This $XXX years by flow within the to strong approximately with costs. and free year X.Xx further by has XX% assuming another -- we our to our We to to reduce XXXX, further of flow, In leverage inclusive X inclusive integration remain the Xx cash

not foreign future include acquisitions Our business from impacts any does outlook currency future or fluctuations.

our successful strong CX cash generation. free platform with keep excited creation. In growth, about and year growth growth and We creation. high-value joined We're reach creates customer that another X expansion and resilient we global offering range look and unique revenue business through Webhelp, combination with closing, which our cycles. services a business global engagement leading very had a flow We digital the believe has of value and into will for value margin of forward providers to year capabilities

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

[Operator Instructions].

we The for is first of Joseph from question Canaccord. Vafi that have today

Guys, Nice good see for end of the to here year. afternoon. results strong the

little on drill maybe the coming have the have then that to any quick down your bit you And revenue follow-up. wanted Just for on where relative are And assumptions year. I'll you on fiscal to here guide? macro changes a guidance a philosophy in

Chris. it's Joe, Sure,

Now in We The seasonal to he's is a peak follow-up we be I'll way don't to sort there got QX. pass of at XXXX a Andre to expect if look XXXX. evolving similar comments.

be muted, seeing that macroeconomic somewhat Similar conditions. as with retail the expect to continuing relatively and driven by primarily electronics, e-commerce we're muted. We consumer

as the it. That the this but bit year, for client inflection the more start of is are solutions. of into, the growth, our end through consistency of some see better us looking mute that through bit we out do near we've we the gains. because do see being more more that that year. so of the year solutions transformation, we'll to the will the will point internally a course the of see doing at way add as course generative and being business, an of building a we kind investing tools frankly, more But it more winning to AI that able called We that's of year to of the And out, productivity half think deploy back year of

may they're more maybe to give is kind the momentum those color the of business? of of then to a at Concentrix point, I into -- And be compare a how it know of there and could X it. us kind core contrast Got and of kind this so Webhelp. then you between but harder cadence integrating maybe do -- way little sides and

Joe, it's deals. and now we speak Yes. you for talked pretty as integrated with has about Webhelp more capabilities vary we I'll more even is business the brought us [ ] that What as tell business. nearshore Europe offshore kind our of

business more the And the clearly, over some profit of goal drive our into a business Webhelp Continental also next in and and nearshore clients year that global and regions so Europe than that's more we're to are within that market, The us Europe comment, America is sort for e-commerce in and -- travel those clients categories. doing. business the higher offshore of clients brings Latin

for successful been fairly has us. that area high-growth frankly, a And

see got business that is But general that some bringing the then after. like so were wins in us KYC we've similar. and very, and be clients -- that board, brings to AML called like-for-like very, in activity market really like additional we're wins very newer from It -- as we and capabilities that out that's to we some of And additional footprint the on lastly, the good of core we the that. expect some the

Concentrix, in fact automating North guidance, costs desire business, it we looking think onshore nearshore to say acquired and Webhelp the Concentrix our offshore to was it not when have to see Joe did we unlike that where given services. than America continues that a American down that in for and think transactions faster clients' certainly drive Webhelp, it's much helped North or I higher I fair by costs alternatives growing some of presence through the do pressure Yes, or

[Operator be Colicchio will next from Vincent coming Research. of And our Instructions]. question Barrington

on quarter. guidance? synergies I'm a how curious the are your good baked Yes, significant into that renter are Chris, congrats

-- additional the quite as when the talked were at they looked extra. perspective did honest, announced be cost Yes. synergy numbers. revenue we we sort We was are from on we focused we synergies We To on Vince, not quite of more getting count deal, as that conservative.

tell we X real would opportunities overread takes before deals quarter, X that happy I our that sort We few within really see I kind looked I becomes wouldn't come we year. done to think of it we businesses a What the and within before that. got were material start X- into more the together. and X you months that that from of X-month surprised normally, to that is very still guide haven't but small fourth material, for to window at it's it bringing

lot And have X losses then client overlap a there due you have know about of any revenue -- I concerns between baked was you do increased in to concentration? the firms.

is what Yes, lot there wasn't which really interested. firms, a of overlap X between the

over in-depth had that any from feedback of clients them. we're any haven't We

we to of well touching that done actually, finding few new opportunities. fact, we've a we with that going threshold terms thought be In were in

see we So all so don't at that concern horizon. hasn't anything far, been the a on

me. for one last And

latest and it as productivity Could You us a not latter? is substitute. seeing had referred leveraging for on to driver your give main labor the you thoughts you purposes you're AI for the

Yes, sure. for

And a overwhelming fully lot intervention not of have we of a while sentiment. dealing checks. with human monthly human no change. call through, can POCs we're the in reasons this place what there's with weekly, clients, and growing hesitant, to AI that's So XXX go in no still lot automated solutions, customers or to that, hesitant with it, the are for I'll Gen but that's very very that And sort we've finding I'm that basis. is well got say on clients over of a won't

at people drive that customers sort differentiated it's a saying, where staff, right we that's they're so clients the the to tend That's hoping fully of where get things And every and where That's enterprise we're staff, see be big not we engaging And of at talk the well are automated, service able personal is to being sort that no, to to productive whether point. about the best the where at some time build stuff, down looking with. their the it are are more moment. our pipe. the benefit we

the And the we're their more are work. we're for better making clients sort benefit because so and theirselves not tools of than we internally only efforts productive ourselves kind also focus is complete of building automation seeing that's seeing but where

And Divya next be question will Scotiabank. Instructions]. [ of our from [Operator coming ]

I build question. just AI on wanted this to to

of you talked And deployments are gains gains. you the the operating with to bring concepts productivity trying looking organization? within the considering? that you can Have at So of and or clients about help broadly you're think do the an deploying productivity assess internal with what you improved in And sort proof you margin? that the been

each complicated boil can put uniqueness we with scaling interactions Then I gains productivity care, of support, like more if and we take where base. even [ it and into and call number complex better at to provide without information, our individual And internally our even deliver drive that big something and large that banking, mean the QA, and is very in more analyze to we're see staff quantities changers problem a of and goes wealth that along down productivity feedback coaches blur tech the that looked management huge missions across personalized transportation, that, within everything it. ] enterprise. it is do. game we lot management, there's we we the is quantities we and take that a case that can how else it where could past to seeing productivity [ can Yes, and format the that customer, information what to couldn't build name get our health significant we're like actually a tools can we you the back then up seeing ] labor that interactions frankly, do we either

we some really, that So big benefits see from really, really perspective.

AI -- the on good seeing very in we've Gen providing we can the LOMs. and a and They're our that in we providing really are we're complete And controlled nothing very, automation, And of are very the hallucinations, place about model really, put clients complete fold revenue We're no in experiences. providing few lockdowns the data about transactional we're of what ingestion. queues small LOMs. very there's is terms managed that services. cautious management is very have automated talked growth. They're putting on small We're and really, goes, them

As definitely ], you a fees but continuing we're not that for. as small there's it's get, productivity much [ that something to

obviously being know helpful, spoke the integrating That's time quite I now and the about of almost acquisition. ] it, for from you the integration to growth the [ key been coming of And the And at wanted app what general? But given I'll upside you've term geographies the LatAm that are broader kind see company another and you you announced integration Chris. do question, the ask been further some see? that then the going? you a region LatAm how discussed significant quarter has growth Maybe it gross short I understand LatAm in in

for sure. Yes,

faster America. growing was it felt in bit. little North were of than So Concentrix stage we business set The America. just the Latin that and underperforming in we Europe Asia And in was kind a

we're really faster Web about us give Europe that excited Pulp the the things that was with One market growth combination. of in

We our and a within then very, America called very to team Latin as with very perform are Asia Andre out. well, very, strong continues team combining

growth, perspective, just more and to faster than for in So of nearshore, Africa have avenues achieve didn't from able kind that us a ever footprint. higher profitable we were Europe, of growth what growth since geography we is

Latin team also done even global that And engagement within very do do but the have strong markets think we in market execution business domestic [ both American San new well. coming together, historically not from as we From Latin with American in taking in markets we've only Colombia, nearshore better American some very we'll North into to the the markets, Mexico, we Latin Brazil, a the growth now the ability in see Latin the a that other And business America. as X businesses North few well that ] say now from America opportunities very, of combination very, America together. combination perspective, in

So was if from That's great quite I perspective. excited that just

going throughout team very, grow domestic to strong practice Latin us key was capabilities frankly, market very that I that capabilities, to technology Chris, that in LatAm Yes, helping add, really some America. are digital

as brought So just Latin businesses we great another you the America found in together. thing that X

helpful, That's Andre.

Just one last question here.

On environment. the pricing

increased you quarters, macro scale obviously, you significant had trended? seen consolidation, there some have how So the consolidated. been in benefits? a we've and -- this things that has last broader Do concentric see pricing change over the have has given few any And significant the environment

very, And exercise. right commodity ownership, saying total Yes. on is and more a we're of say that some a work where done. them work What in not integrated what client's higher And very, services that is reducing seeing every seeing very That's seeing now is move to very of of is quite to volumes, there's is is competitors we're costs. it's we're from of kind we're by right are top aggressive in more pricing mind some competitive. that be a very, that work the some seeing. we a perspective. higher pricing cost now, being to easier doing, good them, some But technology, what market simply overall, the I'd of market And question. competitive answer

Our la of Bhattacharya Ruplu next Bank will be America. coming from question of

days environment. what talk Can new I talk standpoint? you think For if can really the you the last general Chris, an sales changed you about the client growth. has one, deal haven't don't And ask the sizes, that? the I about you -- And you I about can first from mentioned in XX cycle? mean operational operating economy

of couple Rob. things, a So

we've formed terms no to They transformational pattern change of the We've focusing that a last Obviously, of tend timing really doing, about. on in of talked there's we're deals, the follow timing. deals. Just the in sort deals same quarters. team some big been the of seen that that deals around we number big of standard we're the for new

to they're more contracts. longer. longer-term We can fair they profitable. bit lot stickier, a Historically, those but and, frankly, longer, take expect take a

we're certainly, so putting into that. effort And more

expecting marketplace by conditions, volume business tends that as couple moving a the of right? growing. stayed wins, were at in to is that are that talked tend last that quarters, we've as come to seeing we we closer the volume What about and And in versus they're is for the probably And to as driven fast as level getting change economy. in growing or was differentiated People macroeconomic a a robust more very not their be of are as it to us service. the

than And deals perspective. and X slower so years we're in come have a out seen probably that those what X year, would growing you from seeing little

economy comment of new win is in seeing higher only else, just make little here I'll we're everything kind business of right? of a other terms and The line economy new in kind all with It's there.

on we we the talked the new would economy ] about some category. So of that category in [ e-commerce follow be the travel that

faster. continue and couple FinTech ago. to And like of macroeconomic a so the new tend health to the grow in quarters different than enterprise little probably companies following their saw a be other a quarter. seeing their of what And lot that that care economy general little and we're with of peers a of companies But conditions that's few last we

Okay. All right.

to question Andre. a ask me Let

mean Or much a so think also than if growth For you basis. to corporate help? And to Catalyst growing doing do business? growth the growth can average base year-on-year? fiscal the business is reasonable core even it business, low to us guiding you Webhelp cater is If for coming Concentrix Concentrix faster year-on-year that for 'XX, expect most year-on-year? digits, forma expect that the Web And to get business, you Andre, the on catalyst grow pro X% is you're to single X% is also from do on when

Sure.

at is our each the growing business guide. So a Concentrix of year-over-year point on basis

and guidance, low high points, Webhelp the the end end, of our range. of growing would is across both I faster at say, each However, at those the midpoint

stability -- the growing really level to the in actually growing Catalyst it is line than a in reached poised of bit As it for rest business the XXXX. has rest and business is of little Catalyst, maybe grow with faster where of a the

results transformational and about and drive that of this few good for we've to we talked large not quarters. we're deals but about. We're for We've smaller do opportunities good talked there, So for the a clients that. the about a large not seeing number feel Again, projects business. seeing deals growth transformational

there, so Chris, positive of you in Okay. then because I into that influence Andre. will said AI, of can if XXXX that you is, Gen but if the prepared you, year could have that -- question my Thanks to part I some to mean, giving latter balance impact I back what's will volume I from it for revenues the year will maybe the be positively remarks, -- the AI you because work. higher-level be kind I clarification the XXXX. generative away think come mean be and the guess to AI you actually of revenue you And get confidence would going is in then correct?

and give can thought revenue So thinking about XXXX you're process just your impact us in you on XXXX. how this

It's Ruplu. sure, a question. for Yes, great

we X that there's things think look at. I

and we've of and actually in sort own perspective. at getting put revenue give of cetera, lot a et It kind when this of this or with POCs our been X.X clients anything meaningfully time looking cetera. clients, codeveloping been frankly, with take, from now First, spending them a et into at we've year in. And hasn't

the from of starting some from just it that enough be from new productive production that we it's whether an drag, the and ] the to we And be out into been generative it's [ been coming Whether making. we'll how manage near running we're we to these all agent to we're in allocation so in continue develop to layer to decline being you'll starting the to have we've revenue analytics new it's it into how people and these start the then of management, and whether driving we'll from it's see be AI. different start types offset from levels that it chargeable of but the some momentum we think revenue, LOMs, more will all And where opportunities target whether will tune see the to kind elements. to more you service that. of that a where beginning whether start are things be XXXX ] be go the there's see put it been not investment MLMs, And these it for benefits see that we because these , that of integrates supporting where more with get of that start for technology of place. We're data, the from application content, of [ the implement it seeing

cases okay, of And test extrapolate we so to to see and enough we see, now and kind data how can we start have works. start that this

me clients a are let you're is and adoption, a looking full this little going come. at visibility still of a for that the probably will generally we that We do bigger is Now fact point. are lot okay, we think there's but POCs have that who light hesitation inflection still talk see the about where of to sort scale

XXXX. think it's back I matter we'll But half XXXX the think, see, within to a I early start to early time. of sort of signs of

can. try one if squeeze and more to going I'm Okay. in, I

for and propensity X to that focus on we going about in years M&A or integration, reduction Webhelp the years. in XXXX. doing these the X think you're be said should your is future So you How the next debt

any mean, -- so, I just something to what And give the if in What going do What term. You are you're are you growth thoughts size? on near if consider? can And looking you the metrics? add inorganic do for? you

Sorry, Yes. yes.

on is focus real the the paying Ruplu, So, debt.

our of Obviously, anything think close don't the post-transaction to related investment-grade principles business. outlined period investing we that with leverage the be to within in want as we But tuck-in Xx M&A. desire or we to type will it smaller never net would keep say that we've do and I X-year that close. consistent so And to get the

be tuck-in what not something But would of add a I what it Chris, would So expertise nature anything we and think to in would as expertise, relatively scale acquire? technological Webhelp. certain be, to again, be look look we want could a small domain done such again, would with there? it we've what area. you

agree technology, main about about differentiated and value the our I it's about about, It's as talked proposition. really we've furthering that's expertise. No,

is. principles our to we kind on we opportunities focused the keep from business when we're so sure of that if And M&A have and investment-grade perspective an making there enhancing the

no there you. Thank questions in the are And queue. more

Thank conclude does all So joining. today's this conference call. for you

may You disconnect. now