Omnicom (OMC) 6 Feb 242023 Q4 Earnings call transcript

Good afternoon, and welcome to the Omnicom Fourth Quarter and Full Year 2023 Earnings Release Conference Call. [Operator Instructions] as a reminder, this conference call is being recorded. At this time, I'd like to introduce you to your host for today's conference. Senior Vice President of Investor Relations, Gregory Lundberg. Please go ahead.

our and joining earnings year for call. you fourth full quarter XXXX Thank are and Officer. Wren, Phil me John With today Chairman Vice and Angelastro, President Chief Chief Financial Executive Officer; Executive be Also the Digital; Paulo Omnicom joining Yuvienco, CEO Technology question-and-answer will and Officer. for Chief of Duncan session Flywheel Painter, the as our a well On and webcast omnicomgroup.com information the of a is covering website, call. as we'll release this press presentation review today be will available when concludes. call version today's archived An

the materially like included may Before of and remind of are to in materials forward-looking our SEC I including read file in information which earnings present have filings, statements made constitute listed our Relevant and to financial expect are to we our I'd XX-K, 'XX these And shortly. our at other and today start, could 'XX expectations. statements. and differ Form cause we XX-K the statements Certain our non-GAAP everyone that our end statements to factors forward-looking actual investor that presentation. the results

course today's non-GAAP will we measures. of call, also certain discuss the During

John. these will find results the call the I'll of we'll remarks, reconciliation quarter. line your business hand overview the after with for of then begin in to materials. questions. financial now can You measures an nearest comparable call the John, from our prepared our review the presentation to our a Phil GAAP We'll And over for open up the

strong. and thank fourth pleased and our Good for to Thank quarter I'm very full for performance afternoon, you, results. fourth was quarter us XXXX Greg. you joining today year our report

organic exceeded our growth of fourth the was and expectations X.X% For full organic growth year X.X%. quarter,

Flywheel. primarily related Operating was the margin fees quarter profit transaction acquisition for to Excluding XX.X%.

for was of profit the transaction for operating quarter acquisition fourth versus the year, XX.X%. fees XXXX. adjusted quarter margin items adjusted full per $X.XX, was X.X% share the up for Earnings non-GAAP certain For

full to of year an For year, non-GAAP items $X.XX, was compared certain full X.X% the for the increase XXXX. EPS adjusted

In and share billion to in free XXXX, flow dividends $X.X and we repurchases. cash billion $X.X through returned generated approximately shareholders

and our primary uses very balance and acquisitions. Our share continue sheet strong liquidity remain of dividends, and repurchases cash, to support

seamlessly January of the industry, in segments Flywheel such Walmart, and the bring focused in-store acquisition entirely commerce. from and history market around acquisition scaled is across a to fastest-growing and biggest Omnicom's the goods transforming marketing up more precision marketing XXX On an company Omnicom, clients. for than marketplaces in to digital marketplaces world. retail, brands and Amazon, of Flywheel sales-focused digital closed we Digital, opportunity capabilities media services Flywheel media X, our and the advertising We it new Alibaba and company. as delivering superior can sell e-commerce other the enables opens results marketing for us to from an now brand ultimately to end-to-end comers, integrate

offering that competitors drive more and In able be set data been Commerce of marketplace only one point not purchase January, It's to sales on achieve unique data unmatched we no an of Flywheels return combining Omni's began spend. fully sales in giving measure for with us our advertising to audience Cloud, a effectively has match. clients, and to able data to but can't behavioral

what from highly is captured its competitors. a inform win of owned also one week, the I'm proud our that you last part business This Omnicom, of e-commerce to Flywell winning as first Europe significant excited in than for welcomed around January, and we unique and our we opportunity. clients we world more are Painter CEO, about the partnership to together. achieve can Flywheelers Omnicom, and In Duncan X,XXX

under videos Omnicom services consumer social, from content effects. production launch in leverage content and experiences and The touch creative strategy creates part U.K.-based experiential, studios. of and short-form the all suite production CGI for visual fourth unit, points and In single studios Coffee long acquired brands studio to to our and and in scale of we of operations the specializes quarter, is Omnicom global a acquisition TV, that across digital content a a content everything our holistic between. and

these in first in use to at Google, and addition acquisitions, In TikTok, continue partnerships area to we we of of planning creator the month of offer influences, our with in several to high-growth measure through influencers. the measurement areas ways CES, invest Last We booming seamlessly partnerships. to commerce. investments internal and introduced new influencer-driven optimize announced assets Meta several current campaigns Amazon and integrate and the

that pairs Getty Getty's data technology. to early the AI announced of library new Images we first collaboration November, access creative generative mover and AI this us In content Omni's provides It with tool. with

produce can safe images indemnified agencies clients. for legally our our customized So commercially and

XXXX, in launched people virtual a use plan and create, through In accesses the we Omni of data Omni. campaigns Assist, assistant ad trove miles to Open AI's execute GPT Microsoft. Omni using our Assist

second launch organization. Open company holding be to our platform advantage, Azure and experiment, giving first-mover within and models Microsoft applications any first significant access full AI a in we before us to have prototype environment. overall to the company allowing As other

tens we've dollars in invested millions AR. of Historically, of

future Generative These increased From success knowledge for and forward, and and in are AI investments positioned our change remain investing of areas will all partnerships will the influencers at our our of to our we creativity, greater these with Going that platforms are combined the e-commerce workers we in investments in innovation. are shape our to AI, forefront clients. resources. expected When Generative industry. enhance legendary to capabilities require productivity educate to result the

the business BMW Jaguar, XXXX. Rover, Under Armour, Telstra, We among us. Phillips, its accounts Uber, had we closed a with Novartis, Land that Vans Voyages [ with its and Virgin others. year CRM media And and Amazon, we digital In ],HSBC, Beiersdorf new U.S. successful exciting news record and creative, secured business, with very consolidated

Finance and recently Casey who joins as XXXX, Santos, most diverse discuss I one XXX. of the for of welcome boards within I of independent want the newest was Before appointed Director member outlook our Directors, to of the Fortune member Board our Committee. an Casey the a

technology diverse Casey's members. deep women at proud expertise is a Now have X our addition XX in makes members, valuable Board. to Board our to her and X

want to successfully for people out around close also helping XXXX. thank the us I our world

dedication and and our We performance years financial do key investments business Omnicom to to in Your allow a ahead. agencies, solid by work drive growth in our significant balance XXXX succeed. new of sheet commitment that strategic supported the the clients from will entered wins and outstanding position strength, areas and

to continue conditions, a between targeting we cautiously, While in current the plan marketing based the XXXX X%. uncertainties on we and are revenue growth to X.X% environment given geopolitical macroeconomic organic

year which of the by new half quarter closer growth to business a Phil look second positively typically organic in will the quarter be year. until Phil? results. at our the now Flywheel's during for growth, financial call over doesn't fourth us impacted in of won the and stronger is second range impact turn the the Our which I'll

Thanks, John. revenue year note in even of growth was XXXX. the profitability, the finished We environment on business uncertain in and a though strong terms

an As look of we're performance we economy. and XXXX, towards optimistic improving the our about agencies

details the open questions minutes answers. and Let for me lines then the of spend quarter, the and up few we'll financial reviewing a

performance stay the X.X%. impact will where impact revenue we to translation Let's and XXXX year. on revenue start was of foreign are foreign estimate The our on translation be in in the for If they currently, a currency review the reported of by quarter Organic Slide rates with QX currency growth close increased X. X.X%. full flat

the our moved are The of sale net impact businesses. dispositions. around X.X% research recent of in and past 'XX we a quarter was having first reported increase XXXX, acquisition and revenue reflecting primarily recent an the revenue QX full reflecting on positive expect of of X% beginning for the and with in year, disposition negative contribution X.X%, acquisitions about In

For progress year. was X.X%. with the was growth XXXX our X.X% comparison made revised this to toward growth a some despite challenging full X%. macroeconomic year, of the during in target organic This X.X% good and an line in to We uncertain environment guidance revenue

and organic between the growth for John XXXX full outlook revenue is year As discussed, X.X% X%.

discipline. to revenue turn let's review organic our to Slide growth Now X by

softer was media difficult by at Media of QX spending XX.X% some XXXX to in Precision very cycling marketing year. X.X%, and advertising the again and by a agencies. growth quarter, once which comp X.X%, from advertising client the performance, During offset growth in results contracted strong Global was reflecting partially reductions growth earlier driven our from

by X%, quarter agencies. growth the Qatar, growth commerce XXXX, primarily forward our to with branding in grew year. primarily look at once last Experiential Europe a strong QX again production, reductions of specialty comp XXXX reflecting our to in expect branding in the driven we this of X.X% FIFA in offset was one be quarter. offset XX% and by of Commerce the growth in disciplines. World Cup in down difficult we compared growth of As to by and fastest-growing X%

remains the While international a and XXXX relations quarterly choppy the in quarter. growth softness elections Experiential due and Public the based on to in results when a markets. X.X%, events. Execution be included declined to can by field with solid X.X% marketing related well midterm comps support as solid performance client as of U.S. mixed in marketing. plans. clients' business is our exceeded that difficult certain results to of XX% declined timing important certain

Healthcare steady growth the X.X% during quarter. Finally, of continued its

revenue by Canada and up largest U.S. offset public media, execution markets relations growth cyclical and health in saw was the media, advertising in X.X% and care our X. led of Slide five and experiential and by to and primarily performances the geographic The Middle in branding. by on Africa. our East We solid by Turning impact on businesses, in support, and commerce again quarter growth offset declines

year sector Slide industry X for by our revenue the and full quarter. the shows

in reductions and volatility and weaker have X technology to at increase in in both services. financial and the of saw of point of markets full of in over course year, been We food the year, the the in X widely points which and eliminate beverage discussed X client point, and industry which resulted quarter. points Looking respectively. X entertainment, automotive the changes notable a increases tends in the

expenses. repositioning Now higher fourth let's the down by a due through to quarter, earlier costs as increased actions look of changes mix. turn our revenue service were global year ongoing in and at to but salary our a Slide were X our staffing the for and in related year-over-year, levels employee In driven percentage

growth 'XX revenues. these on strong in with by in our were increased and the in our costs media XXXX the compared We driven service levels quarter costs of profit generated the growth fourth in connection higher primarily business. Third-party to

and Our during this quarter have category. not disposition the did on impact much cost activity of an the year

and same with cost our that no costs incidental costs travel Third-party close level were And year. directly a profit. to as reflect at declines last out-of-pocket incidental the client-related bill

our in which other estate and relative to real to rationalizations costs primarily Occupancy revenue. and both costs in majority up related were expenses by amount dollar million driven due related quarter, the acquisition Flywheel. in in $XX.X professional down incurred portfolio. SG&A of fees to to ongoing the were

SG&A levels Excluding these were comparable costs, year. to quarterly last

Now and let's table that we quarterly make and footnotes discussed and X during income the on made year and turn that of numbers look at more To comparable. this adjustments describe calls. were last The other some to statement. our the Slide annual year prior

negatively margin margin margin income operating an million of in impacted by for of EBITDA income this just discussed. I was costs as with in XX.X%. Flywheel operating and amount the Our connection results Adjusting XX.X% acquisition, of $XX.X an

For our expected of XX% income within XX.X%, operating the adjusted our XX.X%. margin to year, range was full

expense we'll acquisition, our than have be As higher on levels Flywheel a past EBITDA. amortization dues, expectations will of focusing and result margin the we of

for expect be We will related during well to by to synergies accretive to acquisition expense operating as the and acquisition adjusted fourth integration amortization Flywheel as diluted And quarter. XXXX. continue EPS costs the the

statutory you revenue EBITDA flat For our percentage to we of outlook that Also rate XX% non-GAAP for XXXX. rates XXXX, not of income XXXX will primarily expect and XXXX of change certain negatively the last was close can in the increases but international year year. full Flywheel this tax XXXX, comparable in slide, full do rate related with to adjusted reported countries. the be be adjusted year to see as our a expect for to rate We the impacted, the tax business to

For year XXXX, we our full rates approximate expect to XX%.

performance at decrease Acquisition shareholders costs X.X% X%, an to increase on contributed of reported but of income net a and an Flywheel and better minority adjusted basis. related with agencies in to

of $X.XX increased X.X% year. quarter diluted the EPS adjusted fourth last Lastly, from for

For increased the year, EPS adjusted X.X%. by

flow XXXX performance to driven expect cash for in future. was the improvements $X.X net by increase Free free This Slide capital, XX define part our flow changes compared billion, an from is we in improve operational the We use was X.X%. which activities and the as increase operating in of to operating provided year. XXXX cash further operating for excluding cash cash capital. flow of

common of cash another $XX uses and we shareholders. noncontrolling dividends our Regarding pay $XXX of million to cash, to for shareholders dividends interest used and million

$XX year. expenditures capital to million, Our were similar last

Total expect XXXX at be due Flywheel. to were acquisition levels We payments growth investments $XXX higher million. to

closed intention, the a announcement Flywheel $XXX acquisition in of as XXXX, January hand debt, cash new with I'll our of Although the price we X/X on XX discuss X, approximately purchase remains October the million. to It stated using finance we in on moment. which

of proceeds $XXX stock million our from Finally, was our stock expected year-to-date repurchase range. plans activity, net within

of portion making returning acquisitions shareholders acquisition, be the of our that practice our or Since common Our capital strategic repurchase recent closing growth in a using a average. of cash accelerated to share XX% cash total a XXXX with will allocation XXXX of repurchases in larger-than-normal the to and consistent began expect with healthy XXXX we lead approximate to dividend, residual through and stock.

was is the billion. quarter our of changes XX outstanding book outstanding liquidity of other XXXX, and debt the fourth during debt There our $X.X value of Slide exchange the no At than were end summary foreign of balances quarter credit, in translations. a the maturities.

short-term revolving billion U.S. credit remains undrawn, equivalents and $X cash backstops Our commercial investments $X.X program facility, and our which our billion. $X.X were billion paper

million which to the and $XXX to spent And will to the November during we the notes, of XXXX. refinance continue senior will markets year, million acquisition. due X.XXX% markets X, We the we monitor Flywheel or on are approximately throughout debt $XXX X/X credit of XXXX, $XXX expect million finance the enter we

notes expense by Flywheel early increase estimate. amount, our the Financing interest acquisition also will XXXX. expense will November it It's that is increase some in interest refinancing but to likely too

acquisition an a decline we expect to on of in internal in January the that global with of rates. with interest XXXX price, expected our of income lead Flywheel financing to the XXXX, purchase compared hand X/X cash to interest lower For early Will financing prior coupled in XXXX.

of two metrics is on returns Thank strong for sheet. very our on performance. on operating return XX%, reflecting conservative Healthy Slide for returns these like our historical XXXX. equity our ended important please lines and up strength questions our reflect and XX invested months was balance return XX, capital XX presents the industry of preservation Operator, the XX% performance December both answers. you. the and Omnicom's discipline the open

question from McVeigh comes line the Cameron Instructions] first Morgan with [Operator Our of Stanley.

can How the about are election you of November. cadence guys XXXX thinking of when the what Olympics comp course the growth over you Summer in have the the as in to and from the you progresses U.S. now, see ease margins year

you on follow-up. color provide to So a curious the And have I year any you then can expect up? shape how

January not second which is have X quarter first. Sure. Well, difficult first but than remain stronger on the year, the much the the most probably closed half in natural at is it's in the that comps we least comps the seasonally that Flywheel, we it into going as as just

getting And revenue remarks, and said don't third those So wins fourth the the up or as really prepared A them have with I early the of or in lost the the quarter. accounts. our in order we point. that second won in we business start that's to we handle had throughout periods, Whilst new quarter quarter companies my ramp notice We expenses them until quarter, fourth in so. the to number the late one

additive the tailwind until for then. happen that So won't

get of through the that the a will as in later the correct tail as the if revenue into quarter. third The And add add also quarter. than absolutely be as little U.S. something to second will all those something there'll we election it quarter well. the go the bit Olympics year, You're to we a fourth

January start reflected of have we whilst emphasize kind it expect And want range ramp this that's ramping So given to didn't we to on that the that in we X. you.

Yes.

I you'll expectations had consistency margins our that And -- as of that it's margin of builds, goes think I some just would add well. said, see mirror as kind as I the year performance performance John as in logical the the think probably would on.

question And Makes Great. Duncan. sense. a for

now are ran love part about your As essential what excited you of you and that I built thoughts. Flywheel, Omnicom, you're

Yes.

Cameron, clear be the part XX firstly, leading I'm we be Omnicom. well, a years. to delighted always alongside pleasure on admired here me the of the work a it's chance leadership and So for on And to long always at group they the had time focus pride and a And for call. really the quality that in We to this Omnicom service the very we've important was built really customers. with that having us. was very, and on the very quality it's that focuses to products here, services the same, platform Flywheel market. great clear company and high-quality exactly since on been products It how always best-in-class in focused And to

So saying there's the a there. is fit "form natural is company. temporary, but permanent" in showing all class That

but side, then us. through. our is and them, great platform that chance finally, that's that presentation to far, other And from for a trading exciting but a alluded think very it got to side. We access thing that the upon The on biggest there's accelerate in is opportunity, go. the marketing high-quality by marketplaces. -- is no just with relationships sense come that expand them. not the about giving time the the And scale it's is And we really maintain clients perhaps clients data growth on measure most with we've we've and largest and has, we do excited the our side ability across having ability data ability the the Omnicom for us John clearly next-generation information. the early built it's trading marketing and just of to the of first had rates, the to flywheel they exciting from scale to one unique doubt some to ever platform quality really to clients And that a the the, and his range the our really diligence that the really thing already we're to give see to real us very of on in have going a have We're great that think has, just sales modern combine that for engagement our trusted clients.

exciting the definitely see. most that element that's So we

of come JPMorgan. Next question will from the line with Karnovsky David

AI in John, pushed be to some recently do And peers a competitive AI Omnicom going in way the to advantages on front the around line investors conversations to you capabilities think think interested you cost. top execution AI time clients? is I'm secondly, of visible differentiation have highlighted holding is to companies be testing how that your to going will then as deploying and integrated into visible the the moving first, that for and it of real to do from is about or line of that data potential attack. emerge

Sure. lot there. There's a

faster just in and the our really refer AI I Assist. it's going knowledge X up and decade What as to we've to workers, We've years, for taken with First I do of come better to productive last to landscape. AI, is view to able get more it's make they're talking the for been Omni a about Generative reflected us to AI. going of in make what that is better, all, clients. think, insights answers entire And a the investing our it and what in see close impact seriously you more that

territory. unknown It's

at in ability that when faster of reflected generally was the society's technology that I we and it. and look absorb One comments in travels than and immediate it earlier concerns and AI it's it you to always made the released November, laws follow and had, regulations

it making entering was handled that because that its images. to And a key. was we we So certain problem the is anything -- our create there improperly, DoD don't expose made of be into move first because clients the can

to And of of arrangements we're that more capable teaching in of a occur platforms, and type forward. go utilize So as programs to fast how efficient those are our way. and and we accessing those going

want tread think Also, up the with we're protect cost consumer, how carefully. have to be the I in governments going very catching they to will to late

do interest will we And to I So set. to that safety will the consideration or not our things. exceed above clients' to think all use things going we're ability put whether and in them do

few better, are the terms clients In to of we're few going it who things we're products the going things. create a way. that that the -- to with to who risks a going efficient of break doing, and we we're of metering we're We're aware products a debating of very already day, with associated but at end have more

well. foremost here colleague the I'm throw as heads look going and somebody first has to question to at committees sitting who's Paulo, been in My who this.

Paulo? So

for David, question. thanks the

we're first models since all really part mover has outcomes question, reason years So and is And of Google, our optimize these including Generative operating across change it months specifically precisely intelligence working AI, had think [ X we've I around for to the we advantage XX in the spent way our of their Omni and Detty why Microsoft, ], testing well we artificial likes the are John just first yes. with And it's get -- AI, system, integrating answer your more to last ago. back partners over to delivering Amazon, created Adobe, in of having the the been the with enterprise-ready pervasively the short we Generative industry-leading mentioned really titans deployed clients.

as people frankly, life, better. XX,XXX work mentioned, actually, starting in of those part with they'll And for of Assist. to our those these accounts. clients actually employees been models, jobs and Assist We've Omni the launched to of both across select make easier these large several XXXX the provisioned is our John we've language to back question, Omni with June and clients omni. bring your they're fusion second started kind And clients have already and capabilities our over using So capabilities already people access to to utilizing models. on and Omnicom, of to

Great. And then one maybe more.

a vertical, industry the technology the been headwind time on across now. Just it's for some

optimism that but technology I here could interested the you're layoffs it's to an space. generally what there's know issue lines and seeing think whether improve marketing. to this seeing for been some like year. same there's time, we in less easier been know with Omnicom, the precision I comps keep read-through business any for investor

Certainly, going means through probably there'll have much don't easier think expect been have in calls, hits, of they comps But uplift suggest, in as about leaning that which that year. rest our technology the as buy be have But we comps. rolls I you impact think easier we that we've greater the the too our an the much I forecast much forward. from prior clients competitors of yes, has had the technology had it whereas base

the the question comes And with of next Berlin line Adam from UBS.

I'll I ask two questions, can. if

you it in how and The was was media big quarter? with how do much so first within the strong you about wins and how And the more wins? a advertising were? Can Was one can segment? that say . bit about something was fourth say why is, can much media quantify to created account you account

released don't at of Media we entity way to a think the number the conservatively would protective business. strength that as come a see the fourth that they've lot can because media. Yes, your as treat of quarter Europe. there that, is choose in West part question spending the when I quite numbers quarter, stronger one then a in both was certainly the in put benefited projects I'll through advertising, from but numbers. was together it, and together. reporting look I There in into often, More specific of and Western of the to was second held Well, back first. we are fourth say great and And including those than answer you it we are

quite large still Or more ask free why know working question about was I little but a expect you then capital. exclude can your it about number, you high? flow, cash it $XXX in say capital. still so come million. XXXX? from it's bit one that you I a working to about And down can Do

Sure.

a For the was million year, almost improvement satisfied pretty with. certainly, the positive, working $XXX capital which change we're in

relatively the and overall area to the think more I time, actions it fact treasuries over a reflects the negative obviously Fed manage. made that though, have speaking, the of global challenging

in that in performance half where half reflective and of to I we the numbers. good XXXX is yards in in cut those of all tackling think the number in a really organization. change X the the of improve dust a throughout of blocking fact we terms really matter cut cloud It's

to the going number we not overnight. We're to happen isn't certainly strive to get back to neutral, if going but positive, that as go,

we're our you'll as But in the few has as it some in more think come the think terms been I performance. on in see of eventually and It's than challenging area I done continued economic environment and rates changes not years improving the down, improvement. certainly an last [indiscernible]. we're focused very

question The comes Wells of Steven from line Fargo. Cahall the next with

expand first question on around to the media. just to Maybe and advertising

in in talked strong lot media, I'm been want changing you off had and just showed if a capability about business. in bigger a with that's any definitely lagging, And change lot media strength about think your I of about delivery marketing is content? the is, fact, think case. the about much you the and about are way business if the do changes that creative, that so, marketers there more industry acceleration creative and So and of a the wondering the than and then in how the is of you you've the there's you've other if in anything John, think future to think slowdown there to marketing might term, how spend has just longer read

I drive this organic year-on-year. year guided that talk And you were the anything growth margin pieces could pretty is about can to was what there's like expansion similar you then But with in up those then solid. just weren't flattish, And of The that moving guidance holding the They more little gave? there your Flywheel. necessarily for future? what's to XXXX. know just lot EBIT margins a in QX, you've margins a

a There's there. Sure. lot

and I interesting What our You way in creative has the But the probably day. on business organized that it to been guess of up justice setup to an bring we is see ideas through is won't impact an end then to response. present utilize at the of through and those as terms had probably on IP do customers. you greater impact point, can you the reported. the ideas reflection reach the What a or your them technology my a in how traditional to automation, great in and has the venue and deliver algorithms agency see right of to

impact. so And an has that

in we're quality to fact, because that feed don't some do be accomplish. quality the each is diminished is why of trying of not our products because separate is doesn't which think to -- creative able to other. and agencies of we're and an is trying off of really is that to differentiated people And analysis, I the attract. that's But the reflective us not our things they always That, the one we actually two what

effectively that their because time any bring shift. do it's And expect that the fully it to them have relationship save to But at so other experience this. we've to going you benefit, client have to continue prove look then that client can to saved a -- we as to we with our client, you expands jointly. technologies And we and $X my benefits and for the

created confident in that because shift very to I organizing. way that. lose the never about IP of I'm that would that IP want So

second question? The

and expectations. Yes, I'll give margins one on

we improvements. on we've I time in of service benefit from there's think quite few in past, strong the initiatives and margins a two future on make Certainly, areas. to occupancy and as said costs and still continue and in have we expenses, largest we're There initiatives strive another, over steady opportunities. salary-related are we Certainly, our our that salary to and certainly see side, push progress offshoring automation. we'll make the those and pushing,

improvements real from through continue time estate a and continue and make over to benefit some we we And well, to that rationalization to as there. go expect

the more be what it we're be do our make to will of we've some benefits. to achieve the efficient to same are about however, we've talked able the the a on it's right in sure us about going the past, to the in investments continue think, investments I have run future. business of us as at we through that generate that give talked in requires the make sustainable of been and these growth made But call. lot time, and this expect achieve AI P&L, ready part many to to to that, That thing we've platforms helps the that

of and for investments balance a making shareholders that it's margin a appropriate the and those go as returns So benefits perspective generating terms through in well. our from continual we ultimately

year. So look I to we think that's it at a every look continue manage. every balance at We It's it We that day. both.

hopefully, helpful. So that's

Nathanson of MoffettNathanson. from question comes with line the next Michael The

you and talk and your I John their exposures. have see bit one of biggest for Duncan you kind Can bit serve? verticals you of sense clients mix, know you your tale. can [indiscernible], a want you your a clients give for client Duncan, their I a us of Omnicom

And your then said Anything deal either client euros list common conflict, is When any conflict. ability you list of challenges? upsell Dunkin's this of about you to in obviously. big you the look a clients or perhaps kind channel to at and John,

we've Phil, about then costs. over And then you service and the years, media asked third-party

happening currency or you between a and bit glad your ground into media on very, on very line quickly service costs, service like dig talk organically. This media what's quarter organic Can costs? that grew the margin But basis. pretty on a actually we're you you sector the about looks when constant

It's will that the experience will since they it comps, difficult item teams are that cope With in are really consolidated. challenges some comps. only interested there very at will respect and on more these Most those be industry and they're be been get sophisticated in it's some all, will concerns you'd that some, to and have have And comfortably us. to the there become I Conflicts company a an able -- topic and or more the we level are with think never has of meet, see because sectors, throughout quite very holding and have benefits people low days. a been them basis. and that while clients really a Sure. not. consistent servicing people this

that we'll that for I CPG result. as Flywheel and terms to strong first be who CPG. area that and has of of or in of leadership, in thousands of addition the as in addressing Omnicom more that never we've with The the competitive think been in type more the it one And is expertise think changes than historically Group could we been strong are I maybe area be the as brings, that needs confident made with has And Commerce cans. then it now of a people Omnicom

So excited still very We're that. I'm doing about this.

it add comment if -- I to maybe, commentary your to some you first, we over Duncan, turn side. on if on you think want

Yes.

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And comes the the next of with from Partners. Research question Craig Huber line Huber

could, the thoughts, Phil. year. auto sector. your sector BMW stuff. you It John, this you How also a And very It's upcoming care wanted follow-up if I of I your you pharmaceutical thoughts year? a the good and year, a get auto account won guys had for optimistic about looks on for Last have outlook recently what very like your And your upcoming been is for obviously years. two area, sectors: year. growth to number I for on health steady this

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but cautious, we're we So optimistic. are

at that, today. using you further other That there And participation does time, and questions. are conferencing Thank for no conference your conclude with AT&T for this service. our

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