HireRight (HRT) 14 May 222022 Q1 Earnings call transcript

Good afternoon, ladies and gentlemen and welcome to the HireRight First Quarter 2022 Conference Call.

Joining today's call is the Company's President and Chief Executive Officer, Guy Abramo; and Chief Financial Officer, Tom Spaeth. [Operator Instructions] I remind everyone that management will refer to certain non-GAAP financial measures. An explanation and reconciliation of these measures to the most comparable GAAP financial measures is included in the press release issued today, which is available in the Investor Relations section of HireRight's website. Also during this call, management's remarks will include forward-looking statements related to HireRight's market opportunity, customer retention, competitive differentiation, pandemic recovery, strategies, including technology investment to increase revenue and margins, growth potential for specific customers, industry sectors and our international business, future cash flows, operational improvements and guidance for 2022 revenue, adjusted EBITDA and adjusted EBITDA margin improvement. and may predictions materially. are statements actual differ results Such

Form actual that materially forward-looking Additional the the section in Risk particular, factors document Commission, cause and statement filed results Exchange Securities contained of the information concerning in in could to in with those differ is entitled that XX-K Factors. from

and Operations. Statements Management's and Discussion of and Analysis Results Forward-looking of Financial Condition

Guy pleasure to turn Abramo. to my over it's Now call the

us today you, to with Thank and have quarter first everyone. good discuss pleased We're to results. operator afternoon, strong our you

US While economy This of there has people feel support. for ever-increasing that demand consistent the With to management openings is market plenty proprietary higher. alone, approach been options of never Global the platform, need for XX customer demand for workforce acquisition and employment provides databases, turbulence has the and solution these compliance-centric our in global drive United than the HireRight competition talent solutions. and the the continues is increasing job more and coupled effective thing partnership for days, to the talent candidates. industry-leading and one million an efficient We through mobile with remained global in best

Our precision reflected this them industry on in performance. to leadership our with customers rely and deliver for is us speed, innovation and strong financial

period. $XXX a robust up revenues XX% million, first corresponding the of generated the prior we During year total quarter, over

and for strong to continue solutions all our demand see high-quality verticals. We across of our regions

new and customer well. quarter, our quarter relationships also as a with existing revenue we customer and new for but the not had expanded signings During base, strong contract retained only customer

benefiting more relative was up adjusted generated from global in of technology than per customer for XXX share terms bookings a made We strong we've strong up the a points. a year quarter, in we'll potential moment. applicant-facing new $X.XX. customer continued look and XX% Adjusted prior as profitability, $XX.X platform. see EBITDA In were unified go-to-market during our further the margin, reflecting success, and investments earnings the basis Taking upside XX% of our discuss diluted at and million, to we

tell that are them single directly these our to with and account differentiators helping that clear clients platform, new our unified appeal management to are global New us wins. drive along

In addition, and a share both growth customers, remain the quarter, net with basis the for retention of our our enterprise customer our base. expand to offering organic rates very ability wallet customer on strong, our basis gross the of reflecting and our strength existing

XXX even had this we past to customers seen spending others and returned after players. among We some return a Additionally, technology global have one quarter. a with financial few us other time former Fortune customer in some in services,

customers have coming provider our [Felinese] clear XXX rescreen version of employees customer X,XXX. more and with case see customers we customers, this the found by missed by was where found by extensive accepted previous case, missed firm. each one screening globally the hits been another than than who background screened we provider. previously In challenge, In another had more it recognized we case our have maintaining retention prior in and our or One such and of more returning rates We to customers' we quality is challenge. studies, more either compliance. the have and leadership HireRight the high reasons offered are Pepsi offer back to In multiple new

moment. address which our combination incumbent we our I of ever-increasing provide it this possible. are screen a in investigators us at levels compliance As programs, extensive background training is most a upon the of and We through I've extensive quality, databases, our said and heart, before, do to automation, will thorough

during the back turning quarter. our Now to success

healthcare in candidates needs the transportation of leader screening driven our industries from and scope depth. are We financial source businesses and demanding are globe screening focus employee practices where is technology, like XX% broad by diversity particularly such have both as these more markets. year. and to true hence, which the criteria industries, all jobs the target challenging bases, that to reach across need excel, highly in other across they their we some and of and these and regulations on need their we making complexity associated and the cover grew prior us While complex the the seen These because the in and to globe, solutions over services that it industries, very than hiring of strength have across tend in the key they deploy

the these to we testimony newer, customers to these add global needs, As quarter. our during in industries success continue satisfying large enterprise in

Another focus is a our countries international to over and customers global truly expansion. serving player, area of accelerate is in XXX HireRight territories.

driving Our investments Europe, India Latin Pacific, growth. strong in and America Asia are

for continues international grow Our applicants XX% the as to revenue revenue the international quarter. than significantly exceeded US, derived from faster

by in driven large well We countries. as markets in local both as growth seeing companies, international are large these these companies multinational

to our other We it. local have platform made provide India global the Malaysia, investments in support behind Mexico, with best countries the the Philippines, Brazil, and power of

service differentiator unified Our strong ability with a customers platform one creates competitive for us. to is what

Now initiatives. turning and back automation to technology

terms and a fulfillment our partnered to innovation. streamline customer firm global expand call, previous with industry Our the and automate recap while investments leading the candidate are process, our precision experience. services IT as To in improving designed of reputation from and have we to benchmark the

complete is end have to a we journey XXXX. the expect X-year of As that we this discussed, at

is and usage focus more industry-leading Our our back technology investments assets. data and processes the specifically automating at of on of our maximizing office

some and process look automation strategies growth our with growth. the the allows we we're Tom? will our note strategic create customer delivered over business of our natural With technology end, execute efficiency other technologies that be a speak robotics financial now program on with is services the these forward turn suite our and drive To quarter cloud-delivered plan of for to we the improvement that are and driving a these success of phases for call the initial cost positive half realizing program. and will We the way emphasis a meaningful incremental that year. in momentum of testing benefits report are double-digit building benefits waiting to second outlook performance along language for process very the believe about automation, of the this margin us with I quality also year with making will to broad use in long-term am shareholder and than and improve researchers. to we closing, our first the the and industry, reduce in an attractive and back base. It's that enhancement and and building strong XXXX. business progress are and completion Tom We're financial our are results. operational as processing first on looking that happy value. program will In expanding continued expertise of that through office a this rather for profitability the add I'll the on and pleased at closer we the to Our modules foundation important that, balance excited of of

appreciate I to top also earnings strength be customers. with joining results you expanding customers to XX% and of productivity you prior led everyone share are Guy's win revenue afternoon, continue such thank organic. to I net Starting today. triple results, than the hiring coupled XXX% line, Good first Guy. reporting an continued growth is improvements existing diluted in strong our and us new you, adjusted year-over-year, call wallet our being more and share market excited note our focus while to today. for quarter strength was over our per echo corresponding will period. the as with remarks Thank and with up overview with our we revenue in that we that continues income on The

In performance. drivers XX% adjusted From walk than perspective, improved addition, more year EBITDA points the EBITDA we while to revenue continue some the by basis to of adjusted grew I'll health XX% see strength of and over in And of the XX%. in while stand each the grew out, year. through such a XXX health more margin technology, now strong financial increased XX% prior year. prior largest to industries versus markets care which the excess of and continue technology tracked than prior care our period, our over as

is markets led Strength typical widespread, Canada. us, rate. outpaced Latin XX% As international for the with growth was US in and by America India, markets a but international

grew overall the significant we top our operating to again year. margin which prior XX% in line, helps contributed demonstrate This over saw momentum as model outperformance our the organically this leverage expansion. of All

our progress strong line. in In in our addition initiatives offshoring model, to and to leverage inherent that productivity further our we contribute made the bottom

and through As the margin growth. earlier, of was was this in Guy delivered at driven prior by increased productivity look basis excluding our points to to Part early XXX which earnings industry XX.X% improvement outperform continue international amortization, period, of in reductions of are than we the year plans mentioned stages depreciation cost our in of in still primarily better the and mix. terms improvement service,

percent XXX was as basis expense reflects which a SG&A higher $X improvement of Our million, point a by revenue.

and in a and stock of XX% public as fees, legal have SG&A costs, $X million increases, well more insurance. point to quarter including comp Excluding related new XXX XX% than reflected basis increase nearly accounting this the SG&A company would from revenue improvement was as to of

to million adjusted quarter. to turning XXX% $XX which from by $X net in Now million the nearly income, increased

by we capital income with our a the expense. reduction addition structure we in continue performance, of see In to driven quarters, we benefit benefited saw assets, and largely million our $XX improved reducing tax to the our our operating as from in tax previous expense, interest improvements

use our swap swap cost through provide on to the in our that sheet. term swap this which benefit remainder the in place end quarter. put rate to and on of notable this we back XXXX we cash unwind previous Next from X.XXX% The rate some we swap approximately Even item of cash in agreement $XXX the would rate would base our had and on balance on One environment, terminated that in termination fixed expect been agreement our mentioned XXXX, of LIBOR in borrowings. during I at color over was The our hedge. been our call rising the interest million amended $XX to have like that million what flow XXXX. the is of

of end first our our we As approximately million the draws had revolver no outstanding and of quarter, $XXX against term loan. on the had

X.Xx, cash million Our on ended more now the the $XX at than with the year of last XXXX. quarter leverage sits X.Xx at X.Xx and of end sheet. ratio down from down And balance from we

and talent year or and expect Europe and to our been outlook markets have concerns see the current choppy while revenue $XXX operations based full in Therefore, I to XXXX, and while in not expectations are like And Turning we demand guidance updated watching for based no we our global to we geopolitical continue. there do million remain year million. market operations continue, the has to Russia raising to would Ukraine, for we in Eastern on operational $XXX material strength performance strong to current our on that our $XXX financial impact have there million carefully. full to the date, business. and million situation But are from conditions, note $XXX

$XXX are full million to million guidance from EBITDA adjusted year We $XXX million. $XXX to $XXX raising to our million

and see $XXX to our from to $X.XX share. guidance and $X.XX range and With my of million operator, adjusted comments net adjusted call we you to $X.XX are million posted quarter, QX slightly to reiterate a can raising the raising per look to we million from just the share per to And compared QX earnings finishing to our million range stronger income are the We to strong as our open We corresponding and to progress. seasonal from on to last $XXX $XXX forward for diluted $X.XX would questions. year QX quarters expect we keeping that, $XXX QX.

The William Please question ahead. first Andrew from [Operator you. Instructions] go with Nicholas comes Thank Blair.

interested questions. first choppiness Obviously, the my of touch taking in given environment, good wanted you've think kind on just Thank kind of lot the afternoon. Hi, I a far activity. for what QX. in and the of seen quarter-to-date to are I you investors so market market in

results into to how strong then guide you already with hoping you're speak much, quarter kind was And I baking if year of the that? numbers? slowdown So relatedly, any, your full the in first could

with where very Appreciate the continue were which thanks momentum much. year we Andrew, in discuss for the the we is gave We increase year guidance. happy that's are. the question. about see terms this reflected guidance of We're in comfortable very it in and for that coming all with we'll and that, to the into

say April you of couple May past or kind anything even down of the even? specific over of else there or start could Is the to slow weeks

No. other that say very We can't on year. the the anything to guidance we're full than gave we that comfortable comment with for

last guidance that finalized we night. Yes,

So thinking. that's numbers, reflected in current our our

in few any you're then terms XX% think regions Are that strong. strength international types you of seeing excess there? Any mentioned, particularly new Just highlighted a verticals really it's in Thank kind sense outsized you customers I for better nice And have Perfect. trying of you. there think driving strength, where result. growth, a of what's I that's strength? there presence to an are that get obviously international because that a

in some make things said want do to Yes, asked remarks. I'm of a comments glad couple the you I of we Andrew. related our that question, that to

is a few EMEA strength We in as every the as in and the out. which also we the and APAC but and First, board markets Latin called we're highlighted strength America country. Canada, growth well of particular, across in seeing in India,

centered industry. Second all is is is, it our in industries, focus targeted but and across

unified with we've regions old with companies, why a HireRight third, lot remarks pharma to those international reasons had lot international in comment with of business a markets. and do great platform few of gaps our success attack have to some the success winning because had those we've one then lot gaps, is ground So left as both a moment a the needed of lot the on left markets. did years us the health there's of products, us industry in back I built not investment. of the companies. international platform. launched a pharma, lot clients. took new that clients advantages lost we then of didn't platform. a in about We've strategy on that success back back to reason -- winning well-known lot those couple again to the us a of that back unified there. had and and we in other customers ago, XXX only frankly, we very the product we we built they the we our had the closed was they And in of the they of products And have we global made Several had lot some go global huge care, world saw product And why companies sizable, clients that And coming Fortune technology of we a And years including a of

different to see platform. that message, in the companies growth have doesn't local country, markets large have terms but to that you but might want our have a all So emphasize other that of that also for platform to about global It's reasons multiple programs don't because particular, just another will they but have continue in multinationals, international to operation to an in good. we single of talked appealing an who strength, provider us is we types single been go just right, have one screening not

Great, you. thank

The from Sachs. Tong Please ahead. next comes George Goldman question go with

thanks. Hi, Good afternoon.

full over year think in much And XQ you guide you the XQ relative improved the of how to the elaborate factors clarify performance As the the that year? about drove expectations? versus perhaps can your increase on outperformance reflects performance performance, rest

Sure. Sure, take you are doing? I'll George. How that. So

the up, the more see the adjusted side, the revised isn't while EBITDA overperformance ranges guidance up have move and can You we're of that say both we aggressive on our conservative, in not than but our significantly too -- revenue the in right? staying So on forecast but in I we're saying guidance. year positive, getting rest don't the want QX, still to still the moved

we where the year was So reflected I mean in in QX the you of and see outperformance guidance. what that's can rest were, the

benefit industry. The just demand. and seeing strong to the share -- very performance continue All conditions Yes, going see I single the was taking question to turnover We're global of platform. hiring first address. with again clearly across macroeconomic the the is the a employee -- clearly around part strong board,

to cross-selling and having well that helping backs to clients win success then some in upselling of is some I also have We are as ability talked and our that about, the drive growth.

across-the-board would boogied just net macroeconomic good So and call in hiring by it performance I positive continued tailwinds conditions talent around movement.

it. helpful. That's Got

customers, As scenario an update you how the know, from including guide? what we're macro of experiencing in like? you're elevated in And provide what trends order macro and your pipeline hearing uncertainty. Can geopolitical you're full look you year levels on

yet on interesting a our their continue account see dialogue our it's top their of both none customers. of being -- the has the They ago, going weeks relationships a performance that that we basis, have applied particular with enterprise advantages Yes, on outlook. had weeks the those was the provided. any and because just performance ongoing in management near-term of current first strong obviously back factors concern is survey very by on of continued why their to they did we trends account, the so strength world, in a That's them with a in the couple we couple what's of them one another we're of that in business we of see. quarter. that the X,XXX evidenced guidance We Everyone view reflecting hiring to about have continued the but heightened damaging as

million why seats. doing mean, every same job fill is we the thing, that still company trying that's there's I opening talk you -- with to XX.X and to see Yes So still?

you. Thank Got it. Very helpful.

George. bet, You

ahead. Kevin from Please with McVeigh go comes question next The Suisse. Credit

to that to raise tech mean revenue around you really was some the of kind stood Help that allowed us. to the and that outperformance allow EBITDA spend puts the drove that? on EBITDA us bottom transformation? any the that, really the just accelerate on of but It that accelerate then on impressive. maybe results. that awesome, The schedule seems thoughts And did the line Congratulations of the any to some you you're beaten well in and quarter? you're but like around really, through takes the understand flowing leverage out I

schedule last trying parts guest really part call, came we're Yes, said on out of so we're help I call, through flow-through gap, deliverables very we're one deliberate, right the there's But of wait mean really on publicly reflected back as for for excited the we and better that. weren't really to our in out we gap it's the Yes, we're margin that that running and our to not as the we numbers. planned happy we're in the recognize on and saying and that with that investors. are deliver results seeing. technology this to public going And tech two UAT even last program the to and we're complicated about. project on bottom very line That's to well very working extensive and closing close well first where just transformation. sit a there that's we that's

improvement, what are expect those out above of scenes on the geographic to on more expect program. we better that the on a beyond teams programs deliver improvements, to operational and offshoring, So operational get the we process technology bit improvement. optimization, margins. a There's besides of quality focused innovation dozen there's behind program continue number our technology little a going and to driving And

in seems dynamics nice Or That's and -- competitive then dynamics international declines on is really share great, like of same as the that -- you are similar? again, incremental you recovery and there's the see your it the are Because it that's shift, really, shift some competitors? to great. when there's other side, the coming is traditional the terms And well?

for on Kevin. the great Yes, fragmented. very depends most There's question, players and regional have say running an other their small for rule, with But markets, the of where and out local would technology there's are room part, general international capability now that compliance part The about -- of so long as interesting who still they're is investment. clients just years some obviously, internationally. I demand increasing a lot relationships the it

even advantage had amount winning one the it's in are that, chief you a Certainly, So why a areas it success can areas. the our a need bit there markets. it's reasons because it's the play to the that to these of is infrastructure, I think small markets in but management service platform sales the of difficult two you an mid-market what guys and That's rates us like fragmented. and clients good a be lot the of have little they certainly US the the three we're need have fragmented relative need competitors And that in account flexible. good more an clients the we of for in growth of infrastructure, But are local that to or advantage mid-market other you us international in to other two looks players. do lot and relative a one

about So that in technology. about presence I increase. talked we'll We've I investment before. product the bullish some We've more some in more in put regions made small to there. markets. those level We're good put think continue as success of We our investments companies into see certainly

I So it as has an and advantage large fragmented a to to think played way is more extent us. that

again. Congratulations sense. Makes

Thanks, Kevin.

Thanks.

with from Markets. comes RBC Capital next The Please go question Ashish ahead. Sabadra

generally other for my -- new the taking companies customers. those Thanks winning for similarly or could targets -- new Thanks. the and on you question where wondering and be in you're they're two there color comment, taking potential congrats on the winning either your are pipeline, And could customers? challenge those? potential I for are pipeline if those any which was either

Good Thanks, Ashish. question.

Pepsi for version advantage of previous our had some now, some a we product of challenge are. after close go our lost and that gaps pitch is back go another, you what you lot when the docks that In about company background investments Feline message clients when paid in of the things. those employee we've taking screen, we Feline supposed the and you're call you fact do ago. right? -- mean got there the in you're about certainly in what bad, is convictions -- to to I yes, you to to call it's years one think on made it, lose. where particular, several we conviction that is think one We're let the now X,XXX XXX find of just past an So, have you find and a When check to you

XXX them, that So it's be able when you see find of shocking to a to result. client of to kind

So compliance you the part to we that we quality definitely sing and a advantage to as much be we're to rooftops to because our continuing expect lot proprietary of of data it from our take own and that clients matters book emphasis continue on as could as pitch can. our and

good So and winning we've it's reason of it we a that. in new been business why some because opportunities is, been several the pipeline got

see expecting of following on just wondering up further could below you also was the wondering comment about in color. were we benefit drill think that we of start could purposes. Tax second was in the comment from some maybe the much if first you on we think if I half for rate quarter. in should came part modeling there, How that? And what tax rate. 'XX second you to just I I itself. just the made helpful And the on might very That's down automation

tax we how about So rate? think Thanks. should

two parts Yes, Yeah, to that. Ashish. sure, so

benefit before. to never or live some that We've early we've of year, additional the as over we that it, The seen in the minutes of of the automation some module or about the automation excited ago, been of here we've alluded user to the process expect in week second to incredible acceptance just over program next pretty operational improvement, see major starting it, the couple excited frankly had we are and the I a first so, testing, teams plus Really demos. really that seen acceptance consistent fact, started of about this that summer, XX or half we've the days had go testing. the a minus Regarding two.

been held that bit models maybe should that. a bake in, some really in of ramping to counted to of So excited have seeing see that QX, certainly in really start results into we're most conservative the haven't it in in really and there. how even again, QX early Frankly, our see really much next that about we've little for QX year. back of we've or QX, but and expect then But

part second I sorry, didn't just down. The question, your I of I'm -- write it

just tax Sorry, the rate.

I US. cash taxpayer yeah, a we're of yeah, all not in at good news the is oh Tax taxpayer much the mean

$XX on So it you, really depends for what's de annual business than our drive forecast entire income So tell operations, yes, But is I the less international can Yes. going to that million. the [Indiscernible] number. tax it's yes, right? minimis,

solid results. on Thank once again you. Congrats

problem. No Ashish. Thanks,

Please go question with ahead. Mark The Marcon Baird. from comes next

hiring logos, and Strong did relative describe packages you increased just a of you among would just of activity client bit obviously. your that? Good base? terms in retention relative questions. little quarter, on the revenue client end How more disaggregate my terms you up or seeing What taking thanks upsells in for to new afternoon Can outperformance. to

Yes, Mark.

to of So volume that we're enterprise growth upsells, like to customers. factors So existing that's it It sales, focus retention always which really in enterprise churn there's talked XX% of quote to of also about. captures number. revenue And of and why saw that going the those if an it bit we we number, that if same-store it is you little really churn churn really those the number presentation, drive don't -- call XXX% the a we continue know captures top just what excited amalgamation of We But customers. is you posted, in the captures there's I right? be part kind on but They we the business. net that about. of

it So On it's it's on at year-to-date retention by on high. depends We in had -- part a growth. losses you you, basis, it. going mean year-to-date basis, of tell the basis, we gross going volume to few if It's can very a on be measure I I different people a to extremely be look it how offset QX. churn.

net the know XX-month that is we up while, XX%, If our a lose they position guy, inherent may maybe with it growth every push talked and trailing want really we've strategic range, attrition, once retention, But we look excited that bankrupt team and and natural ever where but be. always about in companies get go if on at upsells, our you go about revenue going competitively. which dedicated And call partners to XX% do to There's you really some a trends we account it about have XX%. director acquired, a the basis, whatever I in our can see happy we be to management. it, what really don't team. one growth this upsell case

account is our years with of we time So over to salespeople our are go really then continues last directors, couple very really customers. in to be our strategic and upsell that same to call And there can what outperform. the our of clients growth team needs been try account management and the their dedicated at to the who management and to team really successful our team strategic and And in bring tactical, focus both service we clients. and it's

you've extent up the prior these regards extent two, to retention but kind mentioned great. that your you that to challenge, and to with your particularly I to expectations logos. gain regards building with relative when wins? trying you characterize but new to leverage more of it success I'm revenue was to I a quarters, sense what from would Yeah, an like That's even how wondering disaggregation momentum Pepsi can also the stories got relative you greater just get perspective, net to mean the to

great. Yes,

we of two should team You our have been that's to product -- been. to as and highlighted it. why -- because pipeline exactly We've the ability ever it's part strategy reason what doing had those Fortune some customers of the in strong I was when numbers, single XXX is global win but why we're backs the platform But take power our our our demonstrate had gaps. back

quarter was the on why we're good the and guidance reason so the of part gave. there good good a that are were wins bullish we reason new why Our

head-to-head think And important clients hire to we because lot our quality it's that find to we and think with a this in able we not that also industry and So the people job think industry us of of them. things investigators is on as shortcuts in compliance find. anyone our being go one to take we're

substantial on that be a we've didn't that that screening of up find them done clients take that competitor. on take will a continue to and continue incident few missed. we'll to to a of that any will up client prospect it, why show been our pitch convictions we to -- what's will will missed we'll other an that's strong it, us part a highlight any and us and we that number where do We've find yet small by ones, were So

That's great. were on just those gaps you filled? elaborate can product then what you And that

two products of I with, Asia. to a There Asia are be companies win top Fortune back was can't that to honest have they in since to do that the fulfilled and products missed. have once region our a is dozen missed us, lost get product of them not the certain back we our accuracy. timeliness then, because able missed They very only are account gap. back best implemented few about we of I'll the left XXX it, the had my our it that in do missed in There fairly that to clients been types implemented head. bring thing world that they we were easy enough a country-specific we half of -- portfolio large particular the are off they some recall unique but that the actually who Frankly, they couldn't unique filled sufficiently a of may out management, to

story, a good been it's So Mark.

That's following forward great. to up. Look

Same here.

Mark. Thanks,

next Shlomo go Rosenbaum comes from Please with ahead. The question Stifel.

and the thank usage little Could that's how business, terms line of helping on margin? you top for your in internally, from drive taking questions. Hi, comment kind your incrementally database builds, my you a are of bit you proprietary both where

have Uber Lyft. comprehensive Sure, and specific We've some to proprietary of our allow industries. DAC some built about about Japan driving a database before. do. database. can't that do several We've more that we that criminal proprietary this Shlomo. talked the had unique solely We've about purpose We talked to that for and that are the background We've about us of for screen, the databases, that in we've other talked Red talked checks database people custom exist

drive want We when because about competitors that are that most the our think differentiation we part we continues the year. of points during of the quality be effort working searches proprietary the that on part know to part don't data at several have others we and that To strategy add to we value it's it's But important recognizing we do. blunt, it. is and do quality we share in that initiatives different of not will our I launch we our this and will release to

about say I to the So really -- like. that's all want in but public

maybe you The little bit, if after seasonal. lower goes a mix go the build, the of an of little seasonal like historically XX and of big on doesn't disaggregate a surge the it come higher Maybe a a just one. your you basis. international, there that up this of just And can end days. But some climbed collections unusual a XX at talked days receivable bit that? then and maybe it's in And like at were quarter Okay. in climb days it I up housekeeping sequential terms maybe sequentially that look about sales,

a went reconfigured things I tell to and new And weren't we times. of frankly, needed as very specifically, you is of Xst. imagine, couple that you number. live can Yes, on a happy drivers like be the ERP system January with can configured letters one we collection And of the

the We the that a it's impact the rest that short get is of large don't normal expect we short-term plan to under mid-XXs, did migration part We trends. DSOs not back think XX where in from modeled we throughout have is of think that and business never term to is days the an think year. So anomaly. back kind is. in certainly ERP We really nature that certainly the revert should of

or Or out? two to it quarter to is couple Get work another back normal now? a it

this rest say QX. QX out of worked will I get we're out will by all it quarter a in not it in and be now, good the would chunk if then of worked

Okay. you. Thank

The next Securities. go question Jeffrey Please from Truist with Andrew ahead. comes

Hi, guys. It's Gus jumping on for Andrew.

You you talked about win-backs be it cross-sell. and in in the sounds be as Could a might terms Can drill sounds expanding on there? improved of down What like And well? heavily more wallet depth you bit it pursuing is more it working will what a discuss vector like is solutions. that upsell future. in you share, little about

to nice from Gus, so Yes, you. hear

to win-back the We lost important specifically very, So our led side, it we why on clients. some it's a us of back and analyzed part strategy an client. very taking

have that we've enterprise XX-plus go with who's of And oftentimes specific clients in left go left We an but for together what they don't they have on the because oftentimes, us put years us side, the been a story leave business, telling. list after, to of out extensive who that reasons. back goes we plan very that we've particular

had a Some platform. single left global us before we

it. pipeline several our So x-clients of has on those

is talked close hope the resonating. addition in more we story them. I So to about, two And of to our

same monitoring we've Tom, like of drug success On High quarters. and do head, of your and last you'd of the high top? testing, top been level story the telling the geographic what you success other. it's upsell level several expansion, the to say things cross-sell off side, in for the continuing

that as would big drug screening would X and health probably well. occupational are activities far be screening, Yes, two upsells. expansion international But say then monitoring Those the and the and biggest third both I be the the health services. would and by drug

monitoring, mean the post-hire you're dynamics far? talk the just the what's you as on the out continuous Got year anything the outlook maybe you. That's really so progress screening I seeing ID space? about well helpful. verification. opportunity, has from And could for the And in to the played I as as guess competitive the

monitoring the is in so the is monitoring in point of employee Pepsi not. phrase place reasons program the challenge, to having we sorry criteria call why to what Yes, that they on clients one the a we and always side, using might continuous on to that important, what want do a base keep change interestingly, particular, out in so

license services monitoring been across various the everything has transportation allows the different is care do side put and arrest and especially message sometimes like specific that a including monitoring, why verifications records, it So financial for we one on continuous the to for reasons job on Again, monitoring. us databases, of record criminal driving side, us from successful health classes. to and

list clients I anything? did that appeals we're target So robust the it's a pretty and long to miss Tom, after. going

on. spot that's No,

Thanks, Gus.

next The Please Keybanc Celino with ahead. question Jason Capital from go Markets. comes

are Hey, Guy. Hey, How Tom. you?

Jason. Hey,

Jason. Hey,

initiatives, So business ones about maybe when the the of the more think back-end way to it? I'm early if of not infrastructure, fruit, about as some or we think about to processes conceptualize the is trying some low-hanging we of think first right these just automation phases maybe should maybe

one, Jason. fruit there's no, low-hanging this no in Yes,

way platform then step. the the the out to first itself So think was to about and it is second build the step

public major a components screening we module, we've think themselves. so the then work that, more components. other prem, on you for whole top talked the on we gets one we drug have management, and fulfillment re-platformed So those of workflows module do systems. about record that each or case of the when the verifications back-end about, then And done then how And or throughout systems all things of is to which and health the hang that

platform been that's not nine lifting a heavy positive on. acceptance almost right now said teams no and the feedback building core As from verifications has talked because our the in work that building module the that that without close that done to months module last first user based seeing out done. how is year, Tom we testing gets is before, of about in lot But been that we're a the we're other pretty releasing

that environment being So into of can it's what released right? not can no the production longer or can So work we've a or whether everything for question we've is case, good had deliver us we've now, proven teams forward. it seen close that be been news into a said These what working. or been But the it systems. to deliver, that in big way, is it's like works fairly you bumps didn't. to are and in bruises the able involved and We've ranks, never move complex that along where fixed each needed project have fix out

to with which -- really tell but rest management go. and where we would there's I this months you and are Tom why So of it's the I is with pleased another the I are fruit, XX at no team point low-hanging say that

very revisiting that's off control employees. this maybe have sort No, helpful. Perfect. implementing Thanks measures, Okay. then I of And laying some cost for question, but companies for been that. apologize

sector. So limited or are seems from you maybe this hearing any customers technology you. But all far, to headlines the really? your the at are it not of Thank

No, I the well. the including Yahoo Finance guys, mean, piece saw technology I as from too

fill attrition the hiring So jobs changes they the and the to to to continues need difficulty to in then go. The headline to they we're that hearing be not talent plans. big getting just any just the continues have

a think factor for of job of that location into geographic lack One because search. of to jobs the the people today it's things someone's everyone is has I much easier change to understand as

our of all time maintaining continues continuing, and their having to just very very, are a employee high. base just be competition recruiting and clients difficult So

know, the are concerned for don't the patterns a the Now why hiring guided what's I fairly of couple year. including with extensive but impact last just weeks. around shock, because to of world, ongoing we've substantial way just whether or macroeconomic rest not pretty yet going but about that conversations guided clients, on people and And we've it the survey done changes a the some we've of large has their

Great.

for Sounds that. good. Thanks addressing

for I conference Abramo back This to any the over to like closing would the Guy question-answer session. turn remarks. concludes

doing attention next appreciate Thanks, of operator, thanks over your forward course the We all. follow-ups and to we're looking and few the days. the

day. great all You a have

conference today's This concludes call.

for a Thank have you and disconnect your participating lines. day. may pleasant You