Concentrix (CNXC) 25 Sep 242024 Q3 Earnings call transcript

Thank you for standing by, and welcome to Concentrix Third Quarter Fiscal Year 2024 Financial Results Conference Call. [Operator Instructions] I would now like to hand the call over to Sara Buda, Investor Relations. Please go ahead. .

Great. good and operator, you, evening. Thank Concentrix Welcome Call. Fiscal Earnings Quarter to the XXXX Third This and Concentrix. of recorded property call the is Concentrix without written or the may permission of rebroadcast be not our This forward-looking their address that call matters and uncertain. statements address nature, contains are that, future that by performance materially statements. These cause be future expressed those results actual may than in uncertainties to our different our forward-looking

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

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

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

Chris. over Now I'll turn the to call

going changes the most our are you our making creation. and Thank long-term opportunities in importantly, us Today, quarter to for harness these earnings today are walk joining you, drive business the value for through thank I'm third Hello, environment, XXXX seeing opportunities to positive you demand Sarah. our we call. current we and everyone, to

market how Let's over today, start has front we our see of quarter. what and with last changed in us this

agenda our across see Every we sectors. are a client going both clients under significant speak Clients transformation. show brought like a processes, pressure relevance control. their partners vendors this as business, are as In and through environment has used reason on outcomes. all businesses, cost AI on way is to their different to their some clients forward show and cases, reduce is with Our and We pushing economic across and board's a the costs. optimize innovation

in in past frame. acceleration the seen by for in driving months quarters change, investment asks significant now taking and transformations we've taking an Transitions are for have of clients in What that movement might now taken the shorter that is delivery few more priority. technology a several time pace location adoption, their place are

and partners, costs AI that us to the this mean it and global validates strategy technology to and reduce our we've of embrace our models. does on lead what their innovation, of own So this right clients capitalize scale looking investments us? through to technology moment. right we Because drive to our in have model made journey the economic are domain new First, that them and expertise, for the

from focus ability to the to client commodity walking business from desire is on need we winning means in right case, or some transactional, no it Second, away the automate. where there and business price-led

ago. our business, now decline XX% we've X% years As said, less represents than the only this of X from a marked

of even the faster. further pace business of to we and decline expect generative the With AI, portion this

are that see business with we in business bumpiness disrupting our we for are the small building term. short term, believe we doing we but own confidence. long right the proactively so, Essentially, the In many

currently. out some this Let of me give how you examples playing is

entire a An partner competitors. the with business. airline for decades awarding winning their example We win in an is before from existing been us QX with who are new logos has

to improve Concentrix automation our Our client to technology our leverages AI with leadership power enhancing XX reduce generative win customer Catalyst performance is cost business of in XX to This the for while languages. solutions of experience. the and the across drive client lines capabilities, the us allowing support

our business. We driving in change existing are

is many One serviced years. we a large the have examples from of in infrastructure that QX X company for

This that deployed all satisfaction in an quarter, high completely XX% transactions the handled rate. AI autonomously first we bot month of customer a with

and a an and as the lead in the in client will For more the with some when we the complex us, in pressure increased made technology immediate revenue with us this resulted having client. ramped upfront simple of the on By next margin term work, automating and transactions for in fully delighting year. revenue margins to reduction already longer-term which focus near contract innovation, investments client the middle XX% is

it opportunities deploy to is to into enterprise. technology new their importantly, for More leading us

close existing over business to of incremental all also We relationship with This a a take is organization is In opportunities. customers. the complete an specific that we will with client, financial program are for a on servicing that year to quarter, working a expanding we larger, the won transformational we third have been transformational of large us. with where large, segment

XXX client one technology the marks our customers. engaged they X-year of contract were own transformational success valued as all organization. the is office, at with includes a our and in partners, and in This tools, services GenAI this third-party first Strategically, technology million over Catalyst wins model. complete traditional win significant This servicing and is The new This a of large-scale competitors didn't have as win USD well back encompasses pursuit our as remarkable it solution. no our revenue. initial was

of majority were the expertise, With technology domain we XX% in winning global scale, differentiated consolidation well QX, are to also and winners in client positioned saw of client opportunities XX we them. the we win. Of consolidation opportunities. We're

contract fact, year X we revenue In today. our quarterly bookings our QX, since highest in ago saw combination

with partners. technology also are partnering We leading complementary

to multiple technology continuing key are capabilities We our solutions. increase across partner

large as as complement ability our a we For presence and customize with to at Salesforce and significant technology configure that our week participated in gained example, well Salesforce last Salesforce. interest event, solutions Dreamforce

environment. these examples varying span different deliverables, and current Although good the have many are operating examples they sectors of

for transformation client-by-client increasing are new demonstrated win longer There when in revenue we over automate to exchange periods of investments help for we on transactions. clients technology, our are our ability basis of requests business but more Client some time them we have a as deploy decline these contracts. from

and to We away from And consolidate IP higher Clients there walking own to our is using deals are technology partners moment no if and winning and commodity providers. complexity automate. from this are business our is desire show we an in creates This helping solutions have us embedded. our increase ratios integration deep higher-value, We our long revenue upsell our embed that when cross-sell ourselves environments. term. clients' stickier see within this

our have capabilities make AI for increased seen we our both to generative As mobilized commercially quickly available. we and demand automation, tools increase

announcement of an discussed brings approximately last generative run our of first experience our our on across $XXX a we new million launch has to and be rate is our Hello. operations. product our of basis. at harness As intelligent proven AI call, our today's investment investor in during This increased me strategy the technology to in the of IX helping aimed power to organizations suite tools This development the our annual of right

quality internal our accelerates of an secure visibility productivity knowledge and degenerative that automates what Gen tasks. strategy product launch integrates to of that proven, a an LLM and that is AI were operates work of AI and straightforward. office it secure, we on-brand tool back internally, tool environment. giving trusted realized applications agnostic integrates doing agnostic Clients very LLM what and productivity they boost flexible front in internal office and our IX was With across highly compliant trusted are is productivity, The environment. IX across saw we with a and they common platforms, wanted, customers Hello, Hello genesis their

around Our increase not our has also to in products. enhance IP, us necessary our only allowed technology to partners' commercialize but investment make changes practices

the clients day. saw of have our solutions using AI at dynamic the outlook, decision clients in who the every is deploy we what As on have our always, in are scale right and to their generative very In results now We QX short, we center as at X,XXX to QX environment implemented environments. operating our now. close are

discussed. cost to incurred as end constant NGOI we [ investment was deals currency secure $X.X to to order a expected. number within forma more ] came quarter. the large but as Revenue longer-term guidance our of our in some absorb in programs than pro midpoint as and growth guidance we the billion above low anticipated technology expected at the shift sooner largely than in upfront of at was QX offshore we range

to ensure actively right details our QX, reallocating give we at on. lowered winning we towards are will Andre our capital we investment transformation In expectations, which long-term and work technology levels, business. Looking are more order to continue the that have

are our and we proactively are with We business ensuring acutely for creation. value position us moving long-term velocity on and to share focused gain transforming

Our are game and our and aligned, like for future hard trust our about for we are and their the dedicated ahead. to changers excellence excited thank and I'd business. work clients to commitment teams their their

Andre. the turn I'll Now call over to

beginning combination at then and look outlook forma fourth Well, you, results billion, if currency X.X% of of revenue I'll discuss pro Chris, constant thank quarter. was delivered hello, XXXX. the calculated a for our growth $X.X Webhelp We at quarter everyone. third reflecting as our financial the with completed the and in begin

a from which in pro with is this and currency combination we've at continuation this year. forma the grew through Looking and travel clients quarters by retail, growth gains services clients relatively solid client financial revenue share driving On basis, of of constant vertical X% insurance wins. and Revenue e-commerce our vertical. from consistent grew year-over-year, X%, a growth new revenue prior a been banking,

opportunities for this in sector wins indicate recent Our further growth.

help their X%, of where driven vertical technology unique the drive other automotive year, from half by Our the solutions first grew them primarily we're to clients an bringing acceleration businesses.

electronics consumer pro a balance lower against of effect a forma technology, in clients gains reflecting tech. positive the share volumes consumer X% basis, on of Our grew

with lower X% clients for is health an This as care high communications shift large vertical revenue from onshore short a a first there are half delivery is X%. the from we health few have portions decreased and shifted but complexity And work. for the solid for remains XXXX, price area decreased near-term this care customer from health of those and having Consistent during will revenue quarter. the media and us by impact. offshore clients vertical preference, clients compliance of a care Overall, due to that clients remain sensitivity

profitability. to Turning

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

was year. operating down XX.X%, about points XX non-GAAP basis margin from Our last

of increase EBITDA adjusted our basis EBITDA second and basis million operating margin from XX sequentially was year-on-year non-GAAP year-over-year, XX.X%, but a $XXX points about million, sequential about quarter. Adjusted the points basis was margin XX XX Our from up $XXX down points quarter. last grew

with a compared increase million income million XX compensation included income sellers was note step-up compared increase legal the Webhelp forma non-GAAP net million amortization $XX losses, was with million pro acquisition combination per GAAP was to in Non-GAAP flat of in million of EPS $X.XX increase million million interest income in basis, with was for expenses share-based year-on-year entity combination essentially $XX with $XX XXXX in issued foreign the and an ] of margin quarter, the depreciation, expense restructuring. quarter and last the year. last net [ Non-GAAP $X the a associated tax third share currency expense, $XX $XXX of quarter million with $XXX per an $X.XX integration, the share, operating related decrease GAAP in in in an On point in net consideration, year-on-year. a results $XX approximately million million third $XX connection intangibles, $X basis related contingent in onetime for million to year. imputed $X quarter. of

net quarter million, the free expenditures. in capital $XX million of adjusted for flow Our cash was $XXX

the and for in principally client as Europe September in As the factoring combination. cash of the as Adjusted August, we a and call, since spending we collection cash accelerated changes caught to up calculated the stated result in expectations metric program adjusted flow of costs. assumed the have the continued have Webhelp month flow, of quarter been in cash free flow that free was that on in last operate below excluding delays integration is free impact the

million At the the the $XXX cash billion quarter, debt principal total balance amount $X.XX and loan billion we the was of equivalents were the term our to of as and quarter. sheet. in was $XXX million, repaid the end third at Turning quarter. debt the Net of cash end third $X.XX of

the prior forma end, pro consistent at X.XXx was with quarter. adjusted debt net quarter Our EBITDA

expect the We remain supporting of continue of repurchasing to close within to we our debt dividend XXXX, to through reducing net of adjusted close while Xx to EBITDA combination, of the to committed Webhelp reduce and net leverage plan shares. leverage net years and and our the our X also end

to bringing expected full our share At is commitment. quarterly third was announce the above XXX,XXX expect average repurchase our previous $XX an quarter, per During dividend. over at million million repurchases share our now to paid approximately year And approximately million, authorization quarterly to quarter today, the fourth of plan remaining stock the repurchases $XXX shares end, $XX were $XX approximately pleased exceed on our our share, and we we million. repurchased quarter we which million, XX% We price approximately for $XX dividend. of increase $XXX to through

billion, of $X.X at which is over including $X Our credit, approximately liquidity undrawn. billion line remains our strong

to remain allocation remain principles our We and unchanged. committed priorities investment-grade capital

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

turn outlook fourth for I'll business the Now quarter. to the

result a environment, we expected we're we a midpoint the dynamic over and in the in As very perspective, while we we expect From This the a slower had operating revenue quarter, third underlying chosen from came factors growth reflects third grow in term. are volumes to have the in guidance than we of lower than some long previously. rate transaction price. Chris expected, X walk mentioned, above our as to fourth quarter of now Lower larger from in investing shift the forecast automation, the in commoditized in in order a lower loss cost to significance. clients a terms of revenue quarter the away following delivery of over projects volume geographies that some of and

reducing transformation investments and is the programs we for in synergies. quarter. accelerate offshore, revenue on the for costs the expectations for in our reduction progress our quarter the of fourth profitability outlook our our margin short-term in With are fourth moving fourth business some cost Included previous quarter, with associated expectations continued

target meet run savings for million annual back our synergy million. being the Our synergies year to transformation business and invested of $XX is will support synergies X in activities. rate are approximately of current $XX Many our these

target XXXX. we of million We've can achieve accelerated year our savings now integration in we our spending synergy believe as $XXX in X

flow. cash at Looking

in reduced cash result profit this we While expect flow in With for free XXXX higher costs adjusted and the expectations cash quarterly free our a the increase significant adjusted year. context, in expectations integration QX, flow sequential full our for will to a forma pro of reduction This in expect billion decrease X.X% to a revenue fourth X.X% $X.XX current constant rates. of quarter are quarter. exchange as quarter ranging on based billion the in from We fourth currency growth to follows: of equates expectations change the $X.XX

tailwind point basis XX foreign a include expectations from fluctuations. currency Our

of On the a $X.XXX quarter in was XXXX. pro forma revenue billion fourth basis,

non-GAAP this quarter forma to to in the for margin of fourth income At equates of XX.X%. $XXX midpoint was non-GAAP guidance, million. $XXX XXXX non-GAAP of operating fourth approximately million income operating of our operating We quarter $XXX Pro expect a million. a range the

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

full Our X.X%. currency quarter XXX which of is low approximately growth year $X.XXX XXXX lead range to of forma, our pro the constant for rate billion X.X% year the net full the our point quarter. approximately revenue Full the is This would of the currency expectations following forma was basis to a in the we fourth growth reflecting million, headwind. exchange for of At range last the gave pro XXXX. full end X.X% of midpoint year results for constant $X.XXX an year, expectation to

interest note excluding revenue operating $X.XXX be forma this shares XX.X% the total diluted pro being participating full about being billion our shares will tax income At a non-GAAP expectation about $XX $X.XXX approximately of approximately interest per operating Full common non-GAAP average to and million income XX.X On the on XXXX full $XX.XX our XX.X%. is in XXXX per year year. range the basis, of the Full range operating approximately income and the was of full X.X% non-GAAP to billion. million a was expense weighted of net of of year of XXXX count for of midpoint imputed XX.X% non-GAAP EPS of $X.XXX $X.XXX a full share rate reflecting year year of billion. Reflected to XX.X%. margin equates year non-GAAP in for with net to guidance, seller's non-GAAP EPS $XXX a $XX.XX million Pro will attributable year securities for forma in full attributable to share share, be for billion. income to a a

leverage and expect by over flow funding after costs, million dividend. integration free year-end, to reduce X.Xx million repurchasing while EBITDA approximately adjusted to of accelerated We the we year expect $XXX net our and cash to shares during an supporting adjusted million of XXXX $XXX for our $XXX

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

XXXX, that see cash next and while point revenue ahead, growth guidance we Looking flow several providing are year. factors to do for we not

programs throughout the that several, ramp year. We new large-scale will have won

final year. synergy and we is its phase, our expect do integration and technology lower Webhelp with entering are although savings integration next Our materially initiatives, into other reinvesting costs we

Finally, will in to the we begin our for our product to new investments look introductions next our on XXXX forward giving you more believe outlook that off. on details We call. earnings pay

and met profitability revenue our conclusion, expectations In third we the for quarter.

business to investing increase business position lower-margin platforms wins, partnerships are opportunities. our new future growth competitive leverage. we decreasing and with repurchase to reducing and We drive to in share our the return investing continue our in value program price-sensitive large securing while to and dividend, our and by our technology will shareholders and transforming exposure finally, And transformational ongoing

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

first of Our Vafi from Instructions] the [Operator of question Joseph comes line Canaccord.

congrats bookings on actually having information. other all quarter really with good that a

So that's great to see.

Just kind begin to business, of of from winning may new that some you're business of here ramped. wondering, kind commodity the you're and takes the with, at on line same the more the I of top away walking not time, know puts some have while

on I'm not? see taking plus kind you the revenue just the here then And of kind revenue or kind of few quarters, follow-up. next minus a and line how over wondering you as if that of that neutral place see

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

when kind see guide, QX at of X previous from we our really So a Andre the just midpoint about perspective. of look we buckets talked materiality as

they sell-through we some and were was they one earlier first later in. quarter the July see in expecting that de-commit clients because fourth seeing weren't from also putting that August, to of we the sort volume started automation some into were starting going primarily The and

sales, vast was X it of a those you give together sort or being about majority lump headwind, from X% take. clients the When declines with pull-through volume

when which most to If quarter can much too that in because, offshoring ones we frankly, X.X X.X that normally basis a QX, QX then sort wins talked of where had fourth point a point the win anticipated, because is about consolidated accounts a going, didn't QX but don't QX. the it's are little to of going the less if of into incredibly price QX, of less that been movement had want the sort headwind in have sensitive, that are primarily than at the And in sort saw were about we you going big That was about of just those price. a quarter. we QX, kind X.X little we over last was look was didn't that in basis QX. help basis And point anticipated headwind to ones not we're it XX%, winning they clients offshore little chase than of we

you it. longer some little you of these if seeing some kind And to that quarter those ramps or on won makes or as relative a maybe historically AI what in shorter. here of these at helpful. Got newer look and seeing, we you're That's then the are of little businesses a ramps wins how

for Joe. Yes, sure,

excited by But So phase to we will late if QX, QX to on late little you where we end have QX. until a moving in of XXXX. end see of to costs, and When look we're QX ramped of do, and very, revenue starts already revenue, that to in at at that planning kind be infrastructure planning end time will until very of of fully incurring we fully incurring kind sort the the costs. of QX we're the come of sort of -- to with and we're the connect airline, bit be it transformational won't kind the of we'll of it are now we spending revenue sort of large, -- which start when will won, early with look ramped start QX, the have build-out project and you

where kind of much, in. traditional of make things changed biggest expense business that really certainly kick gives take some it the and feel incur happen wins a longer haven't to transformational too you to will So but

accelerating us what to investments here thinking the relative cost positives acceleration in there? you parts There moving merger-related kind one for were of it. the that on few walk just And outweighed are of the of to those the thought And here XXXX. a kind on here. the Can through just maybe in Got then I'm going sneak now? Andre some process more accelerated

Yes.

we XXXX. that in forward about that bring fact of costs that costs, incurring with heightened ultimate fact synergies XXXX, that hitting integration So obviously, feel can those the comes the million XXXX. could we we hit And good $XXX into some feel synergies really number in in But synergy we're very that about excited some we We're -- that of ahead are transformational of that or program we doing schedule. investment some resources Why been can the well doing has the lot those of so transformation investment of speaking activities Chris it technology cash year investment we in upfront a that a a reallocate towards about, combination as as it? that ramps.

question Divya comes line from Scotiabank. next Our the of Goyal of

you this little But understand color Andre, pretty expenses. to? materially help a bit acquisition-related provide would relate do quarter. that expenses that us more with to your Could is if exactly noticed what you picked and maybe up could this the I other

Yes.

So you're items? the talking line below about

Yes.

of a things. is That principally X net Yes.

So are largely in non-USD. translation assets in related we that to million that losses -- $XX related to have intercompany currency foreign denominated are or liabilities

out there's non-GAAP in where well. So the lot and of just noncash quarter income kind peso, net in that versus particularly that of the the we that then our like offset balances partially that line. metric, expense of intercompany backed of and the EPS as contingent USD that weakened currencies, our has consideration a -- non-GAAP ] kind as to the by change is drives And

the items. noncash items major those the -- fluctuations real and effectively, -- that however, can't X see frankly, we are way, we control any in there So will that

of could in given how in trending coming helpful. Chris business? the bit a or provide that is yourself terms more And Also, down Catalyst color U.S.? interest That's the little rates

this not enablement partner we're have the so really, Divya, rates frankly, the liked seen Catalyst business, had, interest that any with. the we're finding we really impact in to our for providers. happy would as have really it. What have is technology is But

deploying other it So Copilot really of team. of Microsoft whether solutions Dreamforce through be but mentioned tools, cloud LLM or new sort flowing we're I our that's the some or Catalyst whether

is providing transformational a team of lot around that also we're Catalyst the doing. deals the consultation our And

and IT want we large, seen continue a projects digital a one to coming asset the not so the it And in we because to in rates talked be we've to But transformation interest real step-up down. found past drive. that change sort of about that we pure have of

Right.

helpful. was that that's a on more No, that element you offshoring mentioned. wanted Okay. the little One clarification I bit thing

to have because here as trended my and expenses. So partly benefit mentioned the would, But revenue in forward increased seems revenues okay offshoring increased understanding, obviously offshoring of impact expenses well, you there up but pulling the acquisition-related margins. picked was

just trying So understand those to dynamics here.

totally The that Yes. because it frankly, move right offshoring, asked Divya, the us caught up. clients you're is doing frankly, things we're [ And by this it we're with up. our the correct. costs dual to ] have issue by clients moving

And get you when margin have there. compression structure cost some so you in do dual that

company or the opportunity, the want call component like large that transformational and I the even to we other clear of The be as expensing funding infrastructure technology that ahead are transformational large infrastructure the infrastructure of very SG&A some that to we out build-out is we are deals those. about build-out talked

getting flowing to SG&A. deploy the we capitalizing through our But up and not so those we're are see expansion continue those, ramp fully. that we'll clients longer-term they're We contracts turn, as with those margin in

things we And where offshore a what margin incremental are we those and somewhat revenue X typically see muting so within traditionally, you would dip. quarter. see you see But that increase then the

Research. question our Vincent the from Barrington Colicchio comes line of of next

we I in about something be as mentioned segment I you quarter, there. have TCE, think forward? should Is going the and the that concerned up, was Andre, say, pressures, some you volume I think, X%

for been for has us while. sector that Well, muted a

things around whether particularly We consumer we seeing is what very, gaining we're volumes, share. very going is on have -- we're and technology, see just just But and which in volumes there. doing we're X electronics, there, the consumer well with muted clients, our underlying that

way share, gaining the we're process so the revenue. share, in And in gaining we're not of gaining much but of

is the The transaction great in over faster we And to we've we'll should tech cycles, there, volumes up news now, stop hopefully, but past. refresh pick be perspective, gain is, see underlying there. hopefully, gain right just time, and improves to return share people aren't the and we their a positioned the macro doing then through from as growth go volumes great sweating well seen there as share just and

mentioned significant kind And on a some was here. if lot you of is success had closing Chris, opportunities. give and wondering of what the legs this dynamic you just on if can consolidation I there's on color

Yes.

are technology looking solution what with seeing they're in a they their or high probability we're partners partner, deal seeing that sort to other either manage performing at Vince, they're with have we less it makes into full that is incumbent very as we're expected, partner where a business very, sense trying of consolidating partners. clients growth the costs, So for that's to the of from if best-performing and us. And then volume very, the largest not

we it legs. so has do And think

happen automated. anyhow. that are work anyhow, in the where out because needs be because that consolidated we're should it's with the little automated [indiscernible] later seeing have it chasing we highest And that much volume it at Andre client are while. honestly, being not in part. it than believe talked single that for highly -- get we have kind a some we're out, that not the of just to about We're within most We automate, expected. price it be pretty sooner we all point, for than it chasing to the as sensitive we're seeing but that now, exposure where a faster every verticals tends we didn't pointed And tools available And

a what it's we loss. consider So long-term not

the to of movement change about towards much And new rapid there your a automate year? to in you out Is portfolio. maybe XX% there may terms of want about to number want is trying talked how I each put and in automation. to -- you think You historically, rapid automate number wrong for seek talked your XX% industry to or you

No, structure. XXXX people new not of because seeing demand planned we've what very to really, seen of lot end because and had savings of kind is Vince, we that to cost into want this going and we're they in-year at a but is into a want accelerating automation XXXX, XXXX fast what get a see of it

out some but a the tools, this. we this the timing. dramatic seeing, . And a from harder it's of automate be most hey, to can X really things not quarter coming actually need doing only further. part, now. bring blue also automation planning hey, with X a now, to in we've of in or can We're do But partners of were we we're we And tools, change automate, then ever new ourselves seeing automated of, quarters our are so we're sort not not that never the quarters, on thought little for to seeing it seeing what we're our little about a

the this The we dynamic that is other has. of about perspective talk propositions offshore, industry we a talk one things clearly moving from value thing Like always that's about really right? -- industry

half that seen How can it end you back most need new times if a of do start XXXX and want somewhat can and do go clients And to historically, first this savings one what's not to know back bumper they in by with cost loaded a plans look unique to their in is about anything people the you in have at we XXXX we we saying, the the the Again, is QX, locked and now. help sort QX move QX, of structure. us talked of are want "Yes, this that so year. QX, we and capacity because of we've see

that that is seen. well some so And of not the dynamics changing we historically as have

of Our Redburn next the from Davies question comes Oliver of line Atlantic.

of the you gave transactional? a revenue. you I is sort of of where separate Is X% A that as now business in and you that for that? was couple kind example see that of reduction in of guess autonomously Or included of that XX% handled you XX% the me. sort infrastructure said transactions for kind

Actually, that's X% That of a was great question. actually outside of revenue. the

to automate it. to to While we to of the transaction, fast able to right as the bot technology make able quite wait was and do had were we were for able actually kind complicated, automatable as it it we be

not that that's considered sort in So of X%.

can't I you that, of be obviously of how revenue than that to would on So [ there's be? of just so that X% kind are now, an much following ] automated much guess able give from indication more us

don't. we because No,

that tends is how short weeks types of goes be it's domain like they're of of automations the which it move put to very easy into than and revenue, that and manage very, these sort very and in to a little different. differently, cost transactions, proficiency, very a larger, different in knowledge very X% of to speed infrastructure We literally to move, also more different kind the like, can of you complexity than the need complex some these on say little to the --

had for that, in internal And company, subject deeply. very, because to and for infrastructure and We are things high in a system for we've to years. their understood around around train happen instance, regulated We X that we're need so been working for deliver of them level we very when it what they it people for experts automating to around that domain needed how proficiency. business

take transparently changed, while, X the transformation to when to we us started up for frankly, happy were ago we costs to quite . we or that contract, project months extend working it QX, on do and a a So asked pick in those almost economics started then client which those where and longer-term X the do. originally

then And just Great. X Okay. more. maybe

tool talk be Hello sort -- the now sort it volumes offshore there? of win the released cannibalize outsourced? of the that On -- you to dynamics Can will guess, you've of ability your that I about today. of kind IX pricing why And won't kind

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comes of question Next from line America. the of Ruplu Instructions] Bhatacharya [Operator Bank of

these us $XXX GenAI. Gen AI-related walk million to strengthen are investments? you how How through cater what you or you invest Can you your this Catalyst you thought in business I better per think much for decide mentioned in your do as year. investments ROI such to making looking products process to to and when invest

talk So what for? about do returns enough? you've like are enough you -- you looking just you success? when invested How know do how can And when measure you

question. Ruplu. good Yes, Very for sure,

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the doing that are is the clear marketplace others What's we're in hole key not. to of that a seen understand that we've things around some

deep experience based to and our conversations these customized. a highly, of optimize of and in, it's have when whole to manage deep on interactions these with how that We a businesses expertise that as how highly decades understanding solution optimize domain goes

disparate And our a of have clients lot tech stacks.

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sure. For

we million have than Ruplu, products run one. more I like $XXX rate, to definitely So at -- a producing are

the of previews are built and are down So being that doing and speak. as clients path we already with have number we a well others actually

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our fluctuating manage is can And we and line so The now. -- increasing for without SG&A to that within to right our see that that within that only thing lines are our don't do expense QX is guide doing the goal operating I we want XXXX. and

to really is say, transform. who clients number requests QX these we about talk around help getting are programs just a where let's need So transformational of we from

do these do happy the upfront give to you budget model works it. of of the capabilities costs economic because got we're the contract, out, you to If don't burden as to would clients. long more it. the than for have do our we that take You've some we a as And longer-term

talked about shifting a Maybe I -- mean, I terms of so you're [ should revenue about in it's geography, ] the help programs lowe if offshore, shifting But Okay. it margins. to ask program. you in impacts cost can because you that obviously, initially

competitive, seeing what is you as can that time environment thoughts delta well? margin actually that, talk the in can question, more move weave to you pricing So about you actually less competitive? program if start And like between any can it when benefit? any on Is when a also you the within overall

Yes.

the XXXX. let of very there, not choosing the perspective, is, But confidence price. us programs those get on comment to generally fully We're we programs. back form part do even investment that to be asking pick clients upfront that and chase spot us about to these that. as technology, quarters some get duplicate that's to as a what costs building onshore, to we offshore constructs rationalize work kind get seeing pricing to more certainly, takes very, that So programs. you through of transformation, environment margin in of on And or you're training on better past . From of the whether we we're the and different are impacting the improvement ramped price the pricing seeing of in some that we're Once supporting see we're I'll we'll offshore will go where commoditized more movement, of capacity take and the can related right. X give outlook work, programs where our also have sensitivity X costs, doing we we period the we some what seeing high those see Chris That those out well. a we're QX those on should

more bit the -- All be on the cost now of provider. new that commercial contract to moving to of that seems upfront a

margin happy And program the on But we're us should that that long the the do means if that over to we as cost, that program, as upfront we margins of it into build work. see to win improving time. allows can

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AI. thousands of about now Gen talked You've using customers

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has come more these models changed you're talked your seeing new process up? customers So to on as as you've thought that

Chris. it's Ruplu,

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everyone expect that expect don't product to environment, have in there multiple sort solutions so And who enterprise. AI everything be We to that their entire does for we do of we continue. X and have across generative the clients

ladies conclude And for gentlemen, participating. and that conference call. does today's Thank you

You now disconnect. may