Concentrix (CNXC) 26 Jun 242024 Q2 Earnings call transcript

Good day, everyone, and thank you for standing by. Welcome to the Concentrix Fiscal First (sic) [ Second ] Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand it over to the Vice President of Investor Relations, Sara Buda. proceed. Please

not and XXXX Welcome is of Earnings of and operator, Second the the Concentrix. evening, rebroadcast Concentrix Fiscal or Quarter Call. may good you, written to everyone. Concentrix property without Thank the recorded permission be This call

our by These to This contains in uncertainties information update not those our future or results that, events may materially do that address different matters expressed developments. future performance future address or as cause statements. call nature, our that be undertake than forward-looking statements expectations, our new and a forward-looking We their forward-looking are uncertain. actual of result to statements

uncertainties This annual report Please factors release filings other our refer our the recent includes provided today's with our in XX-K Form most and public earnings SEC. future financial could filings the that the affect information risk results. SEC our and to regarding on with for additional

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

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

CEO, turn Chris I'll the to now, call Caldwell. our But over

earnings for quarter Hello, for thank Sara. you joining and XXXX us our today Thank you very much, second call. everyone,

year. being by First, this thanking and for the changers start Fortune let off for in first the XXX their time for contributions our included List game me clients

work, by opportunity experience believe their We that deliver customers. a frictionless started market brand to that for the for back thinking technology customer to office expect across investing experience we idea ourselves. wanted holistically about front better in for both with while office an a engagement, create the We company and

Over years, countries, that more of place continue prouder I or in couldn't our solutions global trust that player the we idea XX have of XX the to delivering industry a the to over thankful be forward. grown clients. be for team

We year-on-year XX% forma our income On guidance. of of year-on-year. and to in currency on the operating an X% turning income constant increased of increase XX% we of year-on-year. grew quarter forma pro in EBITDA a exceeding line reported Now adjusted second We the million, million, $XXX We and basis basis, performance. $XXX an X% operating non-GAAP revenue reported pro non-GAAP prior guidance. increase quarter, as XX% with our X% and adjusted delivered EBITDA of a grew

after than returning to to We million track more million quarter, remain We adjusted of cash through $XX adjusted in shareholders free this dividends share $XXX on for year end the million $XXX track $XXX share QX. integration year, of expenses million the of full to free the repurchases $XX through and we cash which flow of value more repurchases. generate generated and for over done of than million flow on have while fiscal complete

for confidence the raise full Our to in year. second our growth giving positive continued revenue us momentum quarter, the guidance

XXXX. for expect the We it changes Catalyst to which be client environment, our the revenue and of all the reflect in accretive, as anticipate its same solutions continues but for volumes. does demand see macroeconomic stability clients' any growth in momentum not Our to does guidance of ongoing we continue our

XXXX. expected to we and and services rest of e-commerce travel particular banking that retail, for a and are financial seeing From in is perspective, the vertical strength continue

we by in mentioned XX more first income pro In for our investments our business non-GAAP entire basis we second points we left from to technology forma to operating quarter, the a still year increase increasing investing competitors. these call, our on the transition investment our while are accelerated quarter also in while As expecting basis.

we Specifically, with that our start pilots of more and to relates increased see development using installs have falling approximately meaningful. what spent, generative line XX revenue become more well of level and of revenue both as We X% clients a platforms in from we our with development historically prior remaining an increasing increased AI. clients points from basis have this number quarter, through have second QX. an spend at This to the this investment of we start increase while to for technology quarters underway investment for approximately as the investments few to these

growth competitors expense as expect We incur and again, approximately creation. in revenue clients value see $XX to both million to incremental capacity quarters. we near-term as multiyear these also be from up temporary share programs, consolidate will book taking These for us. to $XX are take follows million where of we are up with investments, long-term and that of subsequent and large term as We a investment

Now our and we're let's talk seeing trends some in of recent the wins the about business.

broader to global is a our value scale. growth reminder, drive As strategy clients and to technology and through a services incremental

it new starting strategy building and pipeline rate reflected Our to see our is clients. growth our and existing in we're both across working, and

and solution a mid-single-digit we to GenAI digits. while new across increase specific in in global our e-commerce them resulting client examples our competitors to combine revenues the of increase our a the with and power EMEA the major for customer in margin from allowed client, This implement in move operations. design quarter our of CX for global retail a and us experience a reducing expertise volume translation include tools to where for this by our cost and clients XX% double the their Some program wins footprint

for and win-win us a our was clients. expertise GenAI of use Our

new quarter. We client large won a also global this media

high-profile launch their the consolidate new of and our channels We Korea. of and EMEA experience in will customer in Japan operations one support

their We that consistently global generative able build are a solution we securely, They and solution that a do. quarter will can and in which and management enterprise. complete wanted for Other provide knowledge have globally delivered to client travel a the Europe. wins include Webhelp also partner design a in AI the relationship

coming as well efficiency AI our contemplate This resulted AI-based enterprise. us changers. our Europe [ to leveraging revenue rolling as across effectiveness their This ] stream out our competitors in revenue by they footprint from to ] new the expand potential to as [ improve quarter, training solutions and a we started AI-backed combined organization and as game our our for tools

maintain of Catalyst in a client's to provide specialized and Europe relationships for client. we and They new digital CCaaS support These former their change. business the continues complexity how are Finally, sold business. the delivering strengthened into services underscore resources to This existing enhance that Webhelp our and engineering clients. to build, with wins digital breadth infrastructure solutions the platform we primary our client also channel to for reflect our

in net-net, meaning year, low-complexity to business X we XX% our down to commoditized that At current of our of XX% our being Day high years that we business. our XX%, talked X%, updated were we leading we investors commodity and Last to ago, transactions. complexity about reduced now are have Investor

share. are great our in a and set from technology demonstrate important also ability Clients factors and and X to gain to wins keeping market fewer and broader our solution integrated offerings. consulting These partners implementation mobile wallet a support

advantage for of positive and is to be continuing automation us. generative AI area an secondly, And

As clients. we have said AI before, generative and presents our we upside tremendous a Concentrix believe for opportunity

an now. products We increasing and solutions have number going into production of compliance

the in few production. themes by end clients, level these pilots adoption varies readiness While vertical GenAI of are with there a common greatly

brand vast experience piloting AI using customers. our and make in unit process at representing adviser effective the a our of First, majority enhancing the brand the augment more to for adviser, looking to are clients'

Second, pilots platforms, and to are generative AI automation existing systems IVR chatbots, many or of systems. operate knowledge these replace using

bring me clients. opportunities to new see off to brings we combine of to AI own our gain to from the value tools upside platforms we Many continue technology in market. as the our sold traction we our This partners our

the of over this a building be are products We we'll variety momentum, introducing and quarters. coming new

for filed for will experience platform in GILE engineering, and for and and which superior coating are us our on will automated testing seeing platform up a expand share technology quarter, AI us usage, productivity patent the our to build long-term stands new a pilots generative, be using coders From help transactional boot market a XX% faster. wallet share helping is intelligent, limitless and internal developed believe to products both We past. generative of This we marketing. that GenAI we investments

Finally, Webhelp integration. let me the on touch

successful testament we on starting to we're This wins As sooner integration you go-to-market see we a delivery revenue behind from initiated and X can the than largely of is which organizations, expected. we've mentioned, us. are our and these see synergies day to

The summary, integration of on track, has synergies. growth is is In realization our planned cost a worked. as strategy

value Concentrix opportunity and that at to a incremental We are an evidence delivering of for is the AI to wins our consensus. services market and set clients and scale upside technology differentiating broad in global recent offer

like over the over relationships I'd quarter clients to thank over Andre, last our and to to you. With pass changers the Andre. for game that, and call our

year. our and at hello, you, with discuss a and Thank the look Chris, outlook the everyone. results begin of for I'll our rest financial then

quarter quarter our for cash within another drove solid exceeded range free targets strong marked the second and our revenue We The guidance for profits delivered company. flow.

quarter a We basis. on constant revenue currency billion $X.X delivered pro of second forma

revenue completed was grew combination Webhelp the XXXX, the if X%. beginning by we of As at

the pro remain of trends our X.X%, currency revenue half our first growth the so For overall was year, constant positive. forma

the see second expect year. to from our we half of stability continue in As you this the guidance, can

services clients our X% X%. basis, grew retail, growth from Revenue revenue other our vertical insurance grew at e-commerce from and pro a and revenue Looking banking, vertical. forma and travel XX% financial clients On year-over-year. by grew

forma and consumer basis. over grew pro electronics a X% technology clients Our on

to vertical this as still positive were key due consumer from the share While some clients to lagging we environment, electronics other happy see gained clients. with momentum is sectors macro we some

in to our clients, continue prior on American media due few tech. enterprise primarily forma volumes Revenue from a X% North discussed quarters. in and basis, communications strength pro as telco to from clients decreased a see We lower

Turning profitability. to

second quarter compared increase the XXXX. Our was $XXX quarter, of $XXX non-GAAP operating million million in income an with the of

non-GAAP million, to non-GAAP at Our XX flat lower million was XX.X%, year-over-year, was $XXX due OI year-on-year. roughly about historically EBITDA which down the basis from our was last EBITDA margin. Webhelp, adjusted points $XXX inclusion XX.X%, Adjusted margin margin of up operating slightly operated year and

EBITDA adjusted income margin point was improvement forma basis was On profitability compared when Non-GAAP our the a $X year. their operating last million, and metrics up increased a our Adjusted last improvement. $XX basis, solid XX with with margin EBITDA quarter second continued pro year. flat with compared million

net Non-GAAP the million of Non-GAAP million was an second quarter, approximately the net increase $XX quarter. last per to income was GAAP for income $XXX was EPS $X.XX in quarter share year. of per increase share, million compared year-on-year. $X.XX the $XX of an

quarter in in $XX included XXXX to GAAP the $XXX combination million expenses second step-up imputed acquisition in in combination. results $X currency compensation with of interest in for consideration, contingent integration, million the related million of in $X in million related reduction $XX million connection amortization million issued $X.X depreciation, intangibles, and the to net gains the the and seller's share-based expense, $XX note in a million Webhelp foreign

remain strong quarter we at Our of cash year track flow flow million, $XXX for on of million, net our $XXX adjusted free was outlook and cash expenses. integration free full the adjusted for

in stated the assumed and factoring we combination. cash have our as the free calculated excluding As free the program metric operate continued flow to adjusted cash since flow, last the we call, impact of is Webhelp

free million second quarter, at approximately cash decreased the $XX which, a million made In related standing of the the the flow. second of the acquisitions million, outstanding with factored of quarter. in to approximately During reduction accounts $XXX end factored of $XX of payments Webhelp we at by the earnouts million, resulted of quarter, balance $X adjusted receivable amount about past

quarter. end balance sheet. cash the the million quarter, the to and equivalents debt quarter, total the cash end $X.X billion. $XXX At Net second at and and was second was debt Turning $X.X in the our of of debt were billion million in adjusted We at principal EBITDA term quarter. X.XXx we decrease prior forma loan to repaid a our sequential from amount end, $XXX quarter of reduced the net pro X.XXx the of the

net We to debt expect our the reduce XXXX. continue end and leverage net to of through

combination years Xx within We stock. supporting of while the X the buying to remain net back committed plan EBITDA close to of of our Webhelp reducing close and our leverage to adjusted dividend

our at approximately our the per of for During average $XX second we and $XX $XX share, of quarter, paid approximately approximately quarterly million shares price we through an million stock dividend. repurchased XXX,XXX

on call earnings million repurchases the reminder, a $XXX committed remaining first XXXX. we over our of share quarters in As X quarter in March, to

we to authorization remaining So that commitment. million. go was approximately million repurchase our plan on on have share At about end, more the $XX quarter $XXX

billion, approximately to undrawn. which investment-grade line allocation is Our including we our $X remain liquidity priorities. of remains at credit, committed billion $X.X principles, our are steadfast in capital strong We and over

synergies returning disciplined continue program drive while capital our to share repurchases. and related We to integration continuing expect to combination the of growth, repay our to shareholders Webhelp and dividend debt, disciplined organic realize a through

and quarter Now full XXXX. I'll outlook my business year third the attention to turn the for

XXX the fiscal rates. billion forma basis Pro growth, X.X% the forma to been reflects billion, billion revenue quarter of constant Webhelp an approximately based of XXXX. exchange the net third For would current $X.XX $X.X headwind. expect X.X% approximately quarter, of third exchange at to point on rate currency the have assuming for This beginning combination revenue we of $X.XXX occurred pro XXXX

third income non-GAAP range our non-GAAP the million margin of this XX.X%. $XXX to operating $XXX a approximately the of to to midpoint equates of million in operating be At expect We guidance, the in income quarter.

third non-GAAP year Importantly, forma of an reported million the forma $XXX over this a basis of on operating points pro income in On XXXX. is the both quarter a increase pro XX was prior basis, basis. and quarter

expect We seller's It $X.XX of a the quarter. million assumes $X.XX the in This on EPS of assumes effective per for non-GAAP third interest $X million million, $XX $XX per non-GAAP to imputed share the share We XX% range We of net for XX%. interest be average of note. total tax expense of to anticipate that third excluding about rate net to income will income about third securities quarter. estimate to for attributable share will participating in quarter. diluted attributable weighted to shares common XX% a be X% the at the of

guidance cash Turning now are XXXX start and on our confidence to our guidance. Based strategy year in the revenue full while full increasing guidance. strong continued year reiterating execution, free our flow XXXX we and our

reflecting $X.XX X.X% our the constant Specifically, to currency guidance revenue be XXX growth. exchange constant on to $X.XXX is billion basis expect to This X.X% for as This range to our to currency follows: XXXX year basis. an is we forma full rate a billion, increase of in approximately net prior of headwind. an X% approximately year-on-year of point guidance is pro X% growth forma a pro

do expect synergies that synergy these an rate offset current accelerated $XX to basis. approximately is We by ramp-up continue investment of continued We million in run million. and on will The first year anticipate of savings annualized $XX costs be some technology. net

range operating midpoint. represents Chris in $X.XX billion at our $X.XX the of XX.X% referred expectation the we which non-GAAP income now As anticipate a a income to reducing non-GAAP year, margin investments the for result of the the to for year. We are operating earlier, billion

an points pro this XX year prior over Importantly, is year forma basis basis on of prior the points XX over and basis. increase a the

expect of of on We share. million expense excluding note. to share $XXX assumes the non-GAAP $XX per $XX.XX million, year full interest This million of $XX.XX EPS seller's $XXX per imputed to interest

million XX.X% to and a of year. diluted expect approximately XX% an for share approximately full tax effective shares rate average count of We XX.X the weighted

for beginning factored cash in integration assumes after of million receivable from amount are our year. the funding In no in in costs. reiterating This change free flow, the accounts the cash flow XXXX of terms of we outlook $XXX even

reduce cash repurchasing by position leverage our will X.Xx EBITDA approximately while to $XXX we us year-end adjusted to net further shares, strong as approximately of Our million have flow free committed.

impacts Our flow from fluctuations. do not currency and or foreign expectations business any include cash outlook future future acquisitions

conclusion, performance second In and the with pleased the we for in our year. are outlook quarter our

With we competitive verticals. for key broader cash and solid for guidance solid with our increasing our unique and and growth services backdrop, increasing are technology for demand and second reiterating set our with our execution we free are revenue our expectations offerings. a seeing about year, the We are expectations We're service optimistic offerings. are this exceeding of across our position half technology We're revenue flow.

shareholders value while continue dividend repurchase and will program with We reducing our to return share to ongoing leverage.

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

[Operator Instructions] line of And Canaccord Genuity. it comes the Vafi from Joseph with

little Sara, into would thought Guys, and start to good the maybe is, like of macro the afternoon. and maybe fine-tune turning a and kind year? Great horns then we you're previously. for welcome, out the into follow-up. and guide, have a those bull it's I it an a you're how that on the if the to the of AI the people opportunity up seeing we by contrast on just little front, or have on of taking the bit I kind compare have with kind then -- of more bit new quick And looks of guidance parsing funneled And could to that the the team. what on kind see than thought macro both

Joe, Chris. it's

right. So all, absolutely you're first of

base technology and work perspective, we from large-scale standards the platforms for now into in on rollouts. in solutions perspective to out commercial multi-tenant also AI these than But a from horns EW's the into we in We're good our perspective. think some by there's and seeing production misses traction base. getting seeing taking a client We generative in things are busy, where into your we pilots already. fields the have a on terms, very bull the market need and that And from of ability ourselves perspective one getting on we're

into taking want so opportunity that to and we it. advantage don't leading are miss and And

well we share net couple good products as winning the even new in of I AI that wins. are a we in clients traction talked now, as also seeing with right have secondly, taking as about we think, our

very, built positive, some and infrastructure we winning pilots for our we with associated that that into of sort of put revenue costs very We'll the increase. growth. us will a guide that see So nice want out very, seeing we see further and position also in building as very being that think our we

comment. steady. the stable coming And it sort seeing not change. We're things In declining. it we're We're the We're seeing base. not and based and of that to the our seeing positive macro, seeing -- that's fairly really any seeing expect improving. client not from global We're any terms have it on benefit share that, changes we of for clearly, kind we within of

Great. That's maybe not cost year, bit with I a this the continued Andre. offset investment debt more would are know going business. year, more merger-related to then guidance going as now you're paydown, be kick great one to framework great synergies color. providing some Webhelp in, for combined I exit And abate point that And this of on. and little the are maybe we in then know an for get costs but it next to at by updated

cash you've free your for guidance year million of this $XXX bit I reiterated helpful. flow next think provide to a be in of also year, framework but would kind little

can reasons XXXX. to for of that we Yes, good that, guiding the stop free that And to I XXXX. the -- drivers to stop do X in cash be Joe, talk $XXX there short for us be synergies. But generate will close go to million in certainly Happy so this major optimistic year up want to you. are and there to flow

synergies. we as that million the the post recognize We in realizing at year that rate already synergies now X look close right net are business. run expect $XX of we We're in in above combination the

off. approach million year drop pretty dropping combination. of see net up more, We expect right, $XXX in frankly, And drop from least to would or at second the expenses expenses the of will in go post integration synergies $XX close then million you're integration cash the range, the that XXXX in to meaningfully it XXXX. could I a will

also of those we up. go would could be confidence give flow that So both Obviously, paying some we're down going us cash debt. to things see

help And that. cash also So some of down rate interest XXXX. bit perhaps, to opportunity basis we get there, us costs some a see reductions in a interest if a to and from come with be

Nice Great. guidance. to the see

question. One moment for next our

Operator, do the question? we Okay. next have

question the was going be I think Ruplu. to from

the revenues the beat all It me But And understand in congrats pieces of beat XXX can fiscal inclusion sequentially to million the help $XX on XQ than of Fortune guidance looks estimates. Street $X.XX. Andre, XQ moving EPS guiding like List. down by guidance. the lower and you're midpoint and fiscal by you

guidance $XX is bps about year look if margin that and and is looks operating at revenue I increase, like lower. million XX XX.X% EPS And down fiscal the at to midpoint, it's then $X.XX

to the a pull-in decline points, Why you on So there data of given to a somewhat revenue XQ in to would any be -- that my year? there side. imply would all to sequential these different from there mean, I steeper the of XQ Was questions get and be XQ? is full does ramp revenue between XQ And XQ?

So we've we we this about of to in throughout guide revenue. prudent how want Ruplu, revenue be our kind commented as year, guide

here. so think what we that have done that provided we've And we with

of to that's QX. So the having you're are what here over certainly, we we're balance guiding year, of guiding X.X% at growth grown the roughly, in right, X.X% to to in QX, X%

just -- there, we're we're Again, prudent. being

our seeing not anything in volumes. are We clients'

seeing in not should are We pipeline decline. our suggests revenue that that anything

upper close we've in half put guided saw a to focused and, to, of very continuation which the half. from on And of what would quarter rate most the we the growth coming here very, that perspective, revenue the first the you we just in least this in being -- so in a and quite did prudent frankly, confident guide as with recent at

you are benefit when you're operating you making? about to more And versus points And investments? XX.X% I what do revenue making. investments you're lower, talked for you some XX think see full Can year, from XX.X% margins, those the basis on on expect investments then the the elaborate that

Yes.

to investing. alluding we're X major script areas his in where said Chris So

client technology and that are GenAI embedding So both for -- use, think think that term. them, our a that's our pilots don't of development good but We weighing and some long investment platforms, into for internal certainly on the the we investing products. for margins, is commercial heavily for we in and

you driving advantage of forefront of Chris driving the that competitive wins many what's technology the And in our finish wins talked line as us. and about, at see those the that across is for

-- of So as level that investment here thing. the don't it a is the also balance We exit and could through we and of year the think is heightened temporary forever think even taper we begin year. to

The cost. those that flavors. is of a transitioning we investing different new in other come can become in upfront It training could business many work a types That all competitor can of to things. incur upfront could cost. major we're area technology many, be us. where It be transitioning It from

are do -- quite advance. happy to those that few and margins attractive deals that quarters the again, on because, us. so And but shows out, we to up we're in do The revenue a

about think you how that's So it.

the down At a for It's midpoint it's grow of guide, right. to and to the We thing these drive You're the because come right do of long bit. value think the our business term. we've investments.

maybe And one in. Okay. more and try I'll sneak

trending growth are And the in this. of Sorry Catalyst rate for for if how deals? different Did fiscal cycles talk sales you economy clients about size XQ? new the I missed and for the business

Yes.

grew nicely, business to that half QX So the meaningfully to Catalyst the in rate growth QX, very very, for of the overall and proud quite sequentially we're QX Catalyst to over growing from -- accretive of year. and It's back the continuing is is see we continues how doing.

represent to of continue Ruplu. XX% about clients economy New revenue,

have earlier nearly as enterprise the rest growing the the years not And as become embedding than call fast on into. are month, as interested the efficient. faster your They I X And commented than although ROI, work, on enterprise the on it, business things, they technology conference at ago. become of all that focused this were, faster are clients to clients, very frankly, the they more right-shoring technology

Goyal Divya from comes question Scotiabank. Next with

to Webhelp. acquisitions that Andre, a made earn-out make had on you mentioned Webhelp. you I that certain payments question acquiring you to are have were Webhelp related So I think prior guys to that there the

to some provide is an you the If impact going that an additional additional could guidance for that year as your on more that? be the And -- bottom on on is well color line?

No.

the million acquisitions Webhelp. to the $XX that made, payments in So relate by -- we and they yes, so QX, were about past

So things to the effectively closing that bottom becoming period line with -- these impact for committed time. of and us not were are involved transaction were they accrued they on XXXX. Webhelp have our prior to were do been in There as some then no

most obviously They impact free do there. payment used impact that no not So although cash, of flow. does our cash

As impact flow. to on maybe I free cash $X alluded million

the that as as the don't expected at XXXX. the These XXXX are with kind together we similar They're playing transaction. and believe all We then acquisitions. be expect any don't to. transaction there expect and model of put we parcel to them in in earnouts those we XXXX, financial any further related would in were and closed exactly I earnouts part a fairly looked amount of out

That's to just question perfect. related another Webhelp. And

-- think Chris I Catalyst of that into seeing talk are Chris is that or some the of If Webhelp. some either into little core can acquired? provide cross-sell recently the a into of clients new synergies And traction the of bit more is So color about you broader what you Catalyst some Webhelp mentioned you've that you trending? how did exactly these

Yes, Divya. Chris. for It's sure,

this the to vice across necessarily sort versa, year. well we the on, by a first ahead tend and first time, taking in on both, take gain point at be as didn't of obviously, account for talked clients about remarks. expected, them to to we while in kind They the expected we but to footprint prepared synergies, go, revenue of we where the traction of So Concentrix and and way, we're Webhelp

our group. perspective, share, our technology client Concentrix from majority Catalyst where a client that integrating services. technical whole basically, From our we're whether it's base, across Webhelp about or forget come in originally gaining And originally client

value that start seeing success of pipeline our ultimately, of now. together has proposition Some that helped growth in everything a accelerate client comes we're our most from rate really that that and right that build are organization us clients stronger existing if already. But interested putting to

is higher-margin big And helpful. business So be, Catalyst it with be point, assume doing to that standard would standpoint? a versus That's your it business fair is difference between what business? what margin related? you're the to your your consulting Catalyst from a Or would

Yes. Good questions.

Catalyst CCaaS Analytics business, Digital we our our our we have business, our in have we business, our business, So have business. our Engineering Migration Consulting business, Cloud

Catalyst as lot And And margin you our imagine, within higher some profile, can our the than business. business. so a there's core is,

lot actually core is because these lot overall these we're our the margin. doing within our accretive a pilots, than which build-out of not a our of doing necessarily and we're is of business, Catalyst lower business to Some tools

But that to we comment. increase forward. in what longer-term our a term, our when like about more is we talked But we business go that's long started do being see, business, as in business, margins, the to our than we as much we investing core ability core accretive

Research. And [Operator line it the from Barrington Colicchio comes of Vincent All right. Instructions] with

players at of some market more Yes, your like as think share of competitors? sort to about coming Chris, medium-sized I as they a gains. of expense bit and larger the smaller your Are little well

sort of sites. investment some that won ] Actually, and from both. needed. deliver business necessarily the footprint they We've [ from players, And who weren't to security coming their they're good the won didn't have we've on able smaller

because sort deals together larger technology could everything from about solution the of the have we a and it. talked we of bring that of just primarily competitor, One part the operations versus is

businesses clients ] now. see so over continuing their are versus how And we based about time that [ on right thinking

you have a complete generalizing? folks of am competitors, what I isolate for? So are if looking do Or you portfolio your today over we think larger more

think probably We looking the And their conversations what very we clients the absolutely. of really very, perspective. No, or The of we're portfolio bring from by someone they're materially services enterprise what and the both the both are way, X very are and across gaining expertise to had have delivering customer build the for to a solutions the aspects do of we experience kind and, than can the complete X this share consulting who delivery design, it and that's reimagine clients. and run the ago. where years different because

seeing synergies contribution with -- synergies seeing early revenue revenue earlier than a 'XX? the -- about a as are bit feeling you from expected. we're Webhelp in an How meaningful And

comments to that's [indiscernible]. I 'XX, as you I we're for executing And comments, want, from the bullish transaction, along my we're pretty want plan. don't and in what doing expected, we Andre's that think, directionally, but guide and can see from we that

are as change any you Okay. landscape evolves And your here, know days, still we're the in automation AI in seeing business? early very technology competitive I the then

we well And think stands competitors. we for technology are transformational we I with working of very, right we expertise capabilities run it looking companies. very domain our compete as because clients have the integration, much deals we're their and around set called of QX that now. development because that what businesses seeing, think larger, the have a different in in They're on and bigger QX, sort we we out global much

changed from standpoint. definitely that's a So competitive

sort VC-backed don't really again, of necessarily and of But is. after companies also the whistles. to talking intimate -- what are domain bells kind talking We've knowledge about expertise they understand the what of about are clients the new AI seen smaller and

therefore, that's so expertise. as We suited because building know good base competitive it. have know domain we out very the the And client advantage against them a we're very the we technology for

So we're for we different but of we new are think positioned landscape. competitive migrating to very, very the competitors, sort well

Q&A conclude I and will participating, conference Thank gentlemen, you may for disconnect. you. and now And you for all with Thank that, session and today. ladies the