HireRight (HRT) 9 May 232023 Q1 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to HireRight's First Quarter 2023 Conference Call.

Joining today's call is the company's President and Chief Executive Officer, Guy Abramo; Chief Financial Officer, Tom Spaeth; and Andrew Hay, VP of Treasury and Investor Relations [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 Web site. Also during this call, management's remarks will include forward-looking statements, including related to macroeconomic conditions, demand for the company's services and the company's technology improvement and cost reduction initiatives. and may predictions materially. are statements actual differ results Such

the actual that materially Financial of forward-looking Additional sections with of in Factors, in factors of entitled Statements Exchange cause Securities statements XX-K results and Operations. the contained that the information concerning Analysis the in Results and could Management's to Conditions Commission and filed and those differ is Risk documented Form Forward-Looking from Discussion

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

I afternoon. us good everyone taking our and quarter with operator, you, appreciate the time as first Thank share we XXXX results.

very announce versus plan. million, pleased which, We to year continued are $XXX quarter XX% down tracking to year previous macroeconomic first headwinds, full our although was has despite revenue XXXX us that our

during roles continues many see quarter, previous continue first our with hiring which across noncritical Deferment consistent We of but commentary. patterns the industries. essential were to

However, we outlook recovery. let hiring by is impact not and there driven economic be nervousness just at a Federal Reserve strong of during the talent for primarily general saw on still demand me appears to reiterate the the and the pace continues actions. Hesitation pandemic

case the strongest the demand the sector, headwinds last continue in retention saw despite to decline customer where be we essentially year-over-year base. quarter, technology XX% XXX% was that As within

the We half of to comparison quarter continue in challenge to expect alleviate second year-over-year and the this in the begin second year.

reflected or the XX% Similarly, of in the showed number have closely dominated staff of customers the as screens is that the technology of very tech in guidance. we the with a this are significant these and aligned of rightsizing decline headlines industry. our sector result with announcements dependent many Although decline already public aligned seen a service vertical, the is in has

in gains. a posted decline on show continued Healthcare our outperformed expectations. showed average and Our and modest X% just year-over-year and particular, of Transportation, to verticals remaining resiliency

the relatively to versus pace in this year. the XX% not core continues approximately the just Despite the hiring our activity, reported verticals same In clear half be period slowing healthy a experienced decline first there of XXXX. total, in environment, we at of last macro

engine business late-stage healthy customer and wins, pipeline. upsells new Our strong remains with

of $X revenue logos quarter, the more New added XXXX strong million contributed in beginning start to a than the since Year. the New to

account retention provide annual have million We and next over more to the with our targets to is in has management the our pipeline continue we XX%. to months. thoroughness strong upsell value as than investigations. account teams and the expect This And $XX driven market our that managers existing customer service value continues service of customers. we quality exceed late-stage contract for also our few our teams, our exceptional gross The rate typical in of close indicates

direct indirect the million grow and negative data year restructuring expenses Adjusted for labor continued XX%. depreciation began announced amortization, our revenues million leverage. to Turning cost by historically our we seasonally and lower lowest initiatives. the of the basis first improve plan our quarter, our optimization to driving improvement earlier, driven global of including executing and 'XX XXXX. up of of to we QX the service margins, and EBITDA to of we for reducing geographical cost-cutting delivery, a points expect excluding rightsizing and combination and quarter; QX profitability base, of mix to to the a quarter, costs. been a margins expense of similar on implementation compares these fully $XX reflecting versus focused and $XX operating has This XX and remainder In gross year is

shortly. local conducting screening platform At that and employment with current through screens background continues significance our global quarter. the and will Tom local our that begin believe as we anticipate provide the other details to HireRight, apart will over presence providers. year from the understand as of of We to continue expertise flow remainder additional the these will favorably and soon set us on changes results

local employees background services direct to verifications through customers this is HireRight opening Argentina and door faster sources capability in in extend and international our Argentina, identity our business small screening our screening benefit --continued commercial and quarter, to new our the us in Subsequent such, Inquiro international Vitae data medium connections As the businesses. local in checks, for enabling in-country expansion America with Latin we fulfillment to of from will regions. vendor-to-vendor acquisition services. to of

Turning progress measured initiatives; the to with line macroeconomic make technology our in we broader continue environment. to

expanding to are while continue technologies. India efforts team our in leveraging we as further cloud-based automation leading development our We

focus and Our foremost, while improving innovation. and first simultaneously precision speed remains on

be we closing, backdrop previous cycle given identifiable unique as many Unlike as environment. macroeconomic have with downturns, an negative In the broader are our to catalyst, this results pleased with the signals. of positive had continues which

of and to objective here for our term. always we remains margins, increased long on hiring focused our help thorough accurate with talent gross logos to clients, the new initiatives customers and packages for that adding growing reduce While very strong include and the of demand and discipline, underlying maintaining key underlying existing the global our enhancing financial expanding stack velocity searches are risk. delivering The upselling drivers technology are

our significant focus performance the outlook on Our over year. time. I'll long-term the and that, our a of the these Tom turn over outlook create call to team's With and principles Tom? dedicated for our for gives quarter at us confidence shareholder the closer value look to remainder financial ability talented and in first

for Good you everyone, and you, our thank Guy. joining call Thank afternoon, today.

the consistent revenue going prior first well $XXX million, down as demand has quarter year. views versus year underlying mentioned, XX% Guy was annual the As into as guidance. our our our been those The environment with

$X.X First quarter a from million negative currency. revenue also includes impact foreign

declined vertical and services our As technology our steepest the at XX%. Guy decline noted, vertical saw XX%,

or underlying labor technology exposure same the our our leading as have our dynamics services professional BPOs of significant firms customers. Some large to technology-oriented that customers, service

combined for our year-over-year. X% up other healthcare slightly transportation down As the were were verticals, and a remaining year-over-year, and verticals

technology, transportation Our million verticals Revenue approximately and new and year total customers, down down nearly revenue year. the quarter, new the prior was four existing $XX of of and core contributed now were customers services revenue past XX% represent excluding from customers, added slightly financial from to healthcare, over and from lost XX%.

prior technology, XX% was further cost to of India be defined as for margins, improvement from down depreciation year-over-year at the Looking XX less for applicant and $X charges, adjusting approximately the and XXXX excluding than based versus split, basis combined improved impacted approximately international after was revenue our a in versus XX% by the points total year. to EMEA geographic down revenue. on currency continue was the APAC more restructuring revenue million When impact adjusting the and X% location basis year. prior Gross XX%. of and softness points. QX service were amortization, XXX

Although down when compared seasonality with to historical our QX, consistent this our and expectations. is

labor, cost line margins We confident similar with and variable and trajectory to our in to flexing that domestic management labor are grow our a expect and XXXX offshore is as automation mix, these attention in vendor rightsizing increasing plan. team's our

quarter. targeted estate these bottom in to better XXXX leverage and reduction at doing to actions in and real reducing address plan beginning includes nonstrategic our begin These benefit results offshoring on revenue. from XX.X%, declined in we gross us from adjusted Taking embarked expenses, SG&A drive a leverage back issue, attributable on outsourcing discretionary a margins further overall operating To certain operating which lower the current to the targeted primarily global declining improvements footprint pulling costs. quarter have EBITDA First to other actions show streamlining positions, are like resulting margin our organizations in line certain the will operating restructuring margin. functions, our allows

cost increase In flex addition initiatives. on we benefits to to reductions our focus incremental automation labor, see direct actions, from continue and our rebalance continue these our and data to

Our non-restructuring go-to-market costs compensation overall efficiency increased in goals primarily up million $X.X compared increase long-term achieving for to hiring margin quarter continued and reduction costs. Digging third-party of stock-based $XX.X cost costs. million, operating by by million focus $X.X technology as $XX.X deeper and positions or XXXX. and million as driven driven in quarter, Adjusted $XX.X on million EBITDA XX%. in income excluding of SG&A part technology and in into health profits restructuring well were higher the the X% of our driven Other expenses by expense. expenses a charges, employee operating million, was is support care was lower optimization in The $X.X net related QX interest and

by flow prepare for for driven the rates million floating driven for compared interest higher lien EPS quarter quarter, was prior. $X.X we outstanding compared down largely first results by on in our was diluted a million year and quarter the draws QX payments. QX had QX. the At against our no expense interest from prior as we adjusted Free stronger Interest a rate a the period, the end of debt. cash of $X.XX to had to on $X.XX and revolver to million, $XX.X increased higher $XXX Historically, million cash year $X.X the use Finally, loan.

share and as ended repurchase stems at of XXXX. program. balance primary unrestricted sheet during quarter use of ratio of quarter million to XX, the the $XXX also on X.Xx our December leverage with cash previously million we $XXX the compared ended the announced from Our The quarter cash

quarter ended $XX XX, over March X.X common shares million. million the stock For repurchased company for the XXXX, approximately of

confident options ability evaluate maximizing flow, to liquidity our value. and continue We believe remain we the operate sufficient conditions have prospects our we with to in repurchase the generate ongoing allocation while to and business grow will our business positive program. cash cash respect and shareholder market and to We monitor

customers see In to to anticipate than primarily sustained regarding macro same direction the some every near Looking decisions steady year period of driven some we the by however, across lower continue the of a the may ago. ahead, volume our hiring uncertainty almost term, defer environment. continue vertical, we

As being seasonally we've stronger and in with noted previous and QX with on QX quarters, has and QX been our other. historically QX each line lower calls,

With in a million, our EBITDA expectations reiterating to share diluted million, guidance. range QX count million income results earnings in we $XX full in a range of $XXX to our and on of per in $X.XX diluted Our range of $XXX annual the $XXX share revenue $XXX to range fully net million. a million guidance to million, $X.XX our mind, year $XXX exceeded are $XXX of of XXXX in based adjusted adjusted a adjusted million this for of support

vendor quits will operating market with long-term monitor We Reserve, demand, costs to our conditions, to environment, job create and and customers our continue and reflect the hires, manage shareholder Federal practices openings to and actions maximize by and macro value. the relationships actively monitor engage adjust margins

questions. for With call can that, operator, we open the

come Tong questions first Our the from Instructions] George line Sachs. Goldman [Operator of with

You revenue talk exit how the how hiring XQ, are your mentioned quarter, XQ? commentary. with patterns XQ you rates? Can last course about growth performed and you of And expect consistent over that to revenues including discuss come XQ relative to in, in base the

we the that QX. with Obviously, typically to we So experience talked were we patterns in in we as we saw seasonality not We saw the the we on but a better in see. QX. QX little and that call, expected mentioned think had consistent about much bit what QX

kind However, and QX we see of a seasonal in typically peak QX.

off so in different with have consistent this than year what to seen year other little seen far volume than except that bit expect XXXX. we've might that. lower for And be we no is any what We a

we're specifically improvements and we've speaking, QX, We're guidance outlook. just So the stick like But always QX expect for guidance with QX we not annual to see generally QX. in over historically. going to and done giving quarterly

there. change there's to that year-to-date seen we've And any that expect wouldn't we us change would nothing cause So guidance.

take And the you quarter further of Can progress initiatives, steps efficiencies in automation drive automation made year this leveraging then over next to you discuss you to into with fulfillment what and the additional the year? technology. remainder on plan

fulfillment initiatives systems. that's rolled we different acquisition else, data about the everybody the a to module labor of the have ensure been whole one about got to of have is large also automation possible. we automate out We've project production. focus on like data our We that we But processes, and We've on automate [Indiscernible] can using talk as and that for verifications. side. fulfillment the the development acquisition verifications new much that don't on talked robotic on always in data initiatives continue automate will the as manage openly just slew entry of process to of continue uses that on we We removal the processes ongoing automation of ongoing. is our The

So demands eliminating all, out down us of XX% labor, either improving that work objective all again, with towards road. launching a a will be never-ending on set reducing taking the efficiency, targeted of margins on labor, the EBITDA process,

from of the next come Nicholas Andrew Our line questions Blair. with William

conversations one the nature hearing But clients about year. a past picture changed have QX. if of the relatively that's I what question earlier of that you've talked are to a macro know your of conversations over lot? nature But patterns the maybe months. with said on from anything clients ask first think from The with uncertainty the different curious weakness. in they I hiring is driver your heard being just kind consistent you client wanted I of the primary couple the you're just bigger are your you of

Andrew. pretty It's consistent,

the that not from of is to we'll hiring much and And clients, just again, just decline than cast this pretty a There's year in over half. I time most strange more there's hey, expect what's that environment. macro nervousness leaves the there's is of, patterns the level second before it's tone -- Y, our continued the sure. improve X explicit none from going in a part, just of from of from -- said board. hearing change But to patterns me QX, tell half the for I've first you, wouldn't I across sense we're from the what reading to will that fact, QX on that. in general just increase would the tea we there's we but lot uncertainty our stone clients the that's or In uncertainty about nervousness that think a It's hiring for

first changed lack just saw of a on relative the And larger any Has some the I a then the out client. that quarter, think last weakness of -- relative open just you to the eased at following to to applicants front. of pressures rather, fourth of up those government -- Has quarter or that you a for bunch all? called at that roles

improved. that has So

actually substantial quarter. fourth a but was still for the were is has they're not They them, low improved. down as First seasonally it it year-over-year quarter quarter in definitely but -- as

Peterson questions with next Our from the come Kyle line Needham. of

reasonable the just of I on touch of wanted basis the margins. there. here? at of thinking kind gross the expectation XQ, points in seasonality some year, there's at least get rest front, to But of is I the the see to when gross XX on the that Nice expansion. of for year margin a for kind looking guess, comparison year-on-year balance a I year-over-year

saw to So you of some QX last year-over-year, it's One, that points folks that other what in we actually better XXX is about we're QX two that trying over restructuring things. point out QX. when for the improvement words, basis activities, normalize year's to than

like our to it plan, didn't sounds I really a I like and ahead So were what a of great And job. targeting. off tried to good start what said, indicate, we and we do

the terms I a that throughout to be year. little in specific to we're need progression the make of going more bit So

back go similar quarter-to-quarter, and we gross margin this progression at but a starting expect QX base where progression you made we started to that the last we better year If well at part, as year. year, level better a make this look starting

to would we a year, base go is do last at to you would back if but at progress I numbers, look we the made -- year, something to starting this higher specific started people what you similar I without QX. expect point giving a where to So take and

we make on. last how Does that and QX forth sense? and QX did last at look year So so versus year so

to new on Good logos. logos disclosure. the see Just contribution and from new follow-up a

think new million quarter. said revenue $XX about the in in you guys I logos from

guide, expectations? to to want initial the how logos what's the And see Just what's the pipeline tracking in year in of of balance your kind today? that's relative in the more to versus guide add for

we size pipeline in year, front sitting of expected on the right that the very coming plan the pipeline business new new that the of are on into the pleased and we we now. In we're we're business, terms that had of based with

to we're new tell of We the model. performance more also right? for revenue very then about existing But after the confident take business. know -- I you given new be you I bullish would in what's to and So ready have mentioned yet there in we of continuing remain that And our be may million share. And that, it to business contract getting be hard win to launch. pipeline, $XX we implemented will

Our next line Marcon questions Baird. of with come from the Mark

course expense charge charges was of the we quarter, restructuring With year? the about How that the regards should the expect we year? seeing think what that may and taken spilling those. the savings and that should end up during of charges the year balance over up restructuring the could into is to we over are over of the restructuring next And what this the year potentially for expected quickly end how

got have but that in script, the is it Q filed that afternoon. the didn't this in We

split here. of the the we charges are in in the for but So believe, in incremental order million QX, And I further six estimated is executed it's of taking ongoing resulting the end think, talk some the at the the million I between be probably footnote million. ongoing. and the because benefits months the still of $XX from rest plan $XX it roughly another of Q, or of We've of partially neighborhood so this the to MD&A, about we'll restructuring $XX year,

the year, guidance is in much very focus built haven't margin of we've that on which and our provided, that. clearly, it circa So half is of terms going to all achieve it's But into a that. year. we long do is helping million this how believe will we significant, this towards part guided and us Obviously, EBITDA of certainly not delivering achieve of that $XX way but that we're go

next half So delivered might roughly be around year and half this year?

million say to year, Yes, million yes. this $XX I'd $XX

you at And December? mean mentioned Like the was things the us just absolute then March? of -- wondering, years, mentioned looking I'm we a look seasonally how how be basis? that kind -- to in might a But relatively going at that, what they and did since such -- not impacts should than are seasonal 'XX point is to low January on tech pattern give December services you trended a maybe things April? look And steady are like those past point. for good to be you flavor are QX Do the are on you or hiring year. low how normal seasonal patterns And professional steady. it's should QX the different? and high see through back could were an Obviously, we that like trends think points, you other are have But

got a you I couple think of here. questions -- so

from The holidays but a definitely off normal question the Definitely, would first current saw ramp about start, we and part to the would a we of we little and December, and gets how say started back quarter. bit out. slow slow budgets, low March were January January, the relatively the people resetting coming in the expect point. always into things of kind February

pandemic. a since of at curve The coming and been year, would only normal had of our on that. seasonality of nothing there's our we So cycle, had we've then We growth this we looking seen right? right? had pandemic a say So seasonality thing we've comparisons out that in terms I affected about of our surge still feel view or the changes years holds, again, annualized huge the point couple and about how -- it's

off would to seasonal of for would tech we're XXXX, So But expect. a we it's would expect. but gangbusters was it saw in that the level the necessarily of seeing same strength certainly it's not we what far be we ramp year not expect the last half year. normal going the first view from I when normalized

is set down we're just major the to we there, clearly of think who to Tech bit I to little there's I all a sector our XX% Mark, that one of exception. what and clients, year-over-year, the hiring have. tech was Thomas seeing have add of tech plans different a you saying from mean, know

tech the all are there. largest largest We the logos that have

But at reliant still as So the -- out it's you, by That that's say impacted everything still would on has hiring -- what would not but the economy. are been is tell very, the that impacted. but out, tech, verticals that coming albeit not pandemic, other very just I patterns also accelerated robust services other pointed the saw Tom healthy. I sector else levels, we heavily of

the then the and sort flow us of you you how you what capital interest cash And payments and how about that EBITDA, we are with comfortable gave think have? -- should allocation of free level

QX the for cash back outlook business. flow I We cash to QX operations a feel of the from believe, well. last historically to if that cash tend and really good strength was even of us. QX, usage last generate the in QX generally year. about go and as I negative for is cash year We year, always slightly

expect don't been than year be that has any we different previous this in So it years. to

up our -- feel just few of bit particularly really it still from and we're we about perspective that it's to make We're press ability cash. to overall on Guy on the we've and Obviously, in good back about We a well. release of little automation dialed with small and keeping we've a as generate investing make relatively spend announced acquisitions cash a project, kind moderated macro CapEx. environment. talked So our did the [Indiscernible] that sure but bit that focused our little some a our

our single track these have sheet. balance the sheet, be won't saw historical the small of was The we But monitor the regardless of we'll as type We program we want on conditions know repurchase that and of to will on that over on relatively our balance to in share bite-sized cash from M&A or whether we And record, position. will transactions the want a that's obviously, biggest material in share further decide moderately to But feel the impact still fund how be repurchases impact active the quarter. continue radar, M&A first good we about side you really things. our proceed. the market

questions next with the Jeffrey come Truist of Andrew Our from Securities. line

on environment top first background about pricing the question bit costs stepping also three? the shift competitive vendors? sourcing we Gus you to talk about amongst It's on Have seen My is And pricing guys talk little the you perhaps in screening industry in for could Andrew. by clients single the a can a or anything?

Gus, this rolled that. is three all big questions, into

So tell competitive really me players. it's smaller of -- the you're I environment, than asking I not. out is there first from other on out two, other I current tell that if against the the hard the behavior because competing would we're you to there in of environment the that but of sort current continue would you irrational of I you different take us tell environment, share would terms the the no think three is been than

in reduce trying you're to the they're clients sourcing trends towards different are what enterprise risk and been screening especially is are requisite it's that to the think I seeing quality technology invest to is background can that moving level. their their using The needed companies at no service single the sure needs, past. than and make in

someone to able to risk-averse superior be especially consolidate multinational to want that in thoroughness do large looking in tracking that, to to more they see particularly and change hire want and of undergoing they're like screeners terms HireRight, companies to system large investigation. global if are We background job an and who a does a those continue applicant

clients to There's our terms And as really get I growing as is it's that -- think as an with say, always clients So order win per they're going own revenue and to the take to -- comes focus best which trying environment, But our our an enterprise takes pricing been to better as enterprise when by doesn't the an deal it little in we've your has and advantage, for more win into upselling reflected It RFP, seen bit steady play pricing a to the is cross-selling. solution in would been price existing well. I you. average are deal. deal. numbers lowest of

So about we there? all pretty good feel Did touch I as three that on well.

add would point about I pricing. more And

try always can, looking we review to wherever we geography, to right? take this different no annual whatever may we through market-by-market, wherever year. be. We will So we year, every price any and it can, an are take year price product-by-product, be vertical go other than And

My second bit you four the background variation question -- those maybe economics talk will could schemes you little you on on maybe package XX% if revenue. that the is verticals the in conduct density core on or a versus other of

in we they're verticals, four general, the is about one like core that or things talked industries this before, Well, we they either about regulated. compliance-driven those the of are heavily

So their packages tend to be more comprehensive meaning those packages. there's more elements in

for we we available, are is revenue challenges The is four higher it why like core other as And people verticals. most background exactly verticals the thorough generally of screener per because of verticals are solution the industry. like per most reason there. And than order the larger our average those successful larger base. order the those interested the compared So the in so your it why density, package the complete in which client for in revenue the those we're to to average rest point, most is

Our Markets. with the from KeyBanc of Celino Capital line Jason next questions come

it one, new like first well, in all business my relatively is guess sounds holding the things considered. I pipeline

given But activity close the of So changes to or type macro? that rates of that's great. any any

revenue even generating to in pretty its saw deploying hasn't something before, since think sales to our not see that so we success for the RFPs, new in we're strong an of base fact, when teams in that we've new I've still the stopped. be about continue for was tell that I continues down I seen of been and but business, number It's as you requests we and only new It's inbound pandemic. during we're this own. mean, no. -- business would seeing new lot I talked significantly, seeing increased as that. business, pandemic Jason, a activity both activity the business well on in

well. We uncertainty are this during continue see of period Sales busy. it economic as to teams

Inquiro Vitae, you On M&A And mentioned how a then prior say moderately I to in be wanting active question, you think it. that's forward. going

I is think change market and macro? Is since that. a subtle acquisition valuations reflection this a this Just curious is of on public. just made going a that you've reverse

in it we strategy which talked part product strategy, of in companies our is build, Jason, that general the M&A [I-X] about we made we look GryphonHR. then that led business the to in that the prefer And for quarter that was The So buy to capability to would have versus last at either of right? existing in investment a is Inquiro this few strengthen already investment the on that One we is our there there, better best problem. wanted to solve way for position and Vitae Argentina a just was South other in in we're the two a but clients the presence And acquisition serve us for to America purposes. markets we to have.

of with from Our questions next the line Stephanie Moore come Jefferies.

kind any of restructuring of the of and maybe were be you the year? the might some real you plan because margin of was one anything to outlining of functions, in estate the just that the look optimization. those else that year, restructuring from you at the since the for performance some accelerated given some quarter, the the reduction of charges, think think of or EBITDA outsourcing, clarification, guidance -- any Were it's I for different -- your kind when start point outlined changes think nonstrategic I adjusted whether start I those SG&A,

I you'll would than bit to certainly, guidance that. talk $XX these just say a the a was So was we whatever changes lot about certainly million that built we was there's back ago, was million Certainly, when factored guided XX we reference for year. a formulated be we in going that lot going the year. So little the then. into not this a even all started of right? probably contemplating our see more going $XX of in the us days had And Not in that of Q. when in of lot into factored even number

but would term, lot I push longer certainly of we to a So there's that think XXXX. upside

And SMB you're to a then what from talk bit little -- could if you seeing maybe switching about customers. your gears

You clearly kind could between you and seeing being then you're larger or national of SMB. tech what but bifurcate your very weak, out accounts as called if

from They of its certain We with businesses the into hardest not is positive mix. lumping it's certain were saw SMB SMB started recovering. some quarter. continued to -- in just recovery the one So first sectors. pandemic. see are quarter and The SMB that fourth certainly small from problem hit doing well are But the continues ones the signs

all of Stephanie, be with bit place, little a the to honest over it's you. So

now There back further time. like at questions are to hand this to would remarks. for Abramo no I over Guy closing any the call

call everyone, thank and All Thanks, it, the Appreciate joining operator. for you, right. today.

macro As you and environment clients. continues the investment hiring the fact, in the of earnings current gathered to from decisions, including dominate season, call and impact our our those

our can all other we'll while continues influence respond deliver we focus focused continue monitor in on margin to results, activity progress And managing and cross-sells, customer customer driving initiatives. on macroeconomic to management the good confident we're great automation through profitability. our of while activities in are we greater on ability team costs and to environment And up that and, Our to retention, expansion making be course, execution. internal data accordingly and and

move and next reach don't please always, forward questions. So posted three as your to the enjoy Thanks out you evening. quarters. to any we through look with hesitate And keeping us as to we again,

your does Thank conclude teleconference. appreciate participation. today's you. This We

rest at lines Enjoy your this your time. the of disconnect may You day.