Omnicom (OMC) 15 Oct 242024 Q3 Earnings call transcript

Good afternoon and welcome to the Omnicom Third Quarter 2024 Earnings Conference Call. Please note that this call is being recorded. [Operator Instructions] I will now turn the call over to Gregory Lundberg, Senior Vice President, Investor Relations.

You may begin.

Thank you for joining our third quarter 2024 earnings call. John Executive and Financial Vice are and Executive Officer. today Angelastro, Phil President me Wren, Chief Chairman Officer; With and Chief a On press that you'll omnicomgroup.com, review presentation and we'll our information covering find today. the website, release a today's will when concludes. An archived available call webcast be

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

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

can reconciliation You GAAP the measures nearest the to comparable these presentation materials. the in of find

overview Phil for business And open will with our remarks, we questions. up from begin the results financial of our will line then an for John, the our review prepared your call the after We quarter. will

the hand now to over I'll And John. call

our X.X% as well you, quarter was everyone, media experiential Good U.S. thank share you as outstanding Greg. at disciplines, results. joining today. for at We're X.X%. pleased to very the Thank Organic us strong the quarter, growth growing and also our and advertising performances. very for afternoon, third with Across had

in quarter. was the X.X% share XX% Non-GAAP margin the $X.XX, Non-GAAP for versus XXXX. earnings EBITDA amount adjusted up adjusted was comparable per

We're last between on months and the sheet results our XXXX. and of share support for our continues to dividends, flow year uses our detail remain end in growth target maintaining during We're very track his year. acquisitions X our will EBITDA also and the higher financial with cover of repurchases, to financial quarter remarks. results XXXX cash Phil to close liquidity are Our pleased the balance flat our target and with full to of for X% cash, very strong. primary X% and margin the organic achieve of our more

Advertising with one advertising During the that under GSD&M, as and OAG the quarter, a leadership includes of globally aligns Global CEO Silverstein advertising announced was the Advertising new becoming succeeding being BBDO, Goodby others. Riley, of of group area Fenton The executives be of of Reas, BBDO, CEO core team. to well the creative Partners, Alex a our TBWA as DDB agencies as and Partners who & Collective, with Global global Group, formation Lubar recently as promoted CEO of Andrew to Global led promoted has and [indiscernible] of practice was who OAG the networks, strong and as by by Robertson CEO which Troy CEO Mercley& Zimmerman, among TBWA is Nancy agencies, will we Omnicom collective. DDB James joined Aaron Chairman;

and creative by aims bolster clients globally. across agencies brands OAG Omnicom's and scaling investments solutions, advertising to technology tools platforms, its access to

OAG will teams. agencies, facilitate while different and across as agencies networks, across Additionally, teams help with our our mobility client talent from and our tailored to integrated demand access more the solution and clients talent providing

unique brand, other retain with the within practice will networks areas, As OAG and creative their culture people.

brands. this fact, strengthen agency our believe will In we structure new

development. experiences firm most capabilities to to the measure end-to-end view its part the production efforts of Bakeries new industry's across The develop Marketing York acquisition investment deliver digital and Late partnership LeapPoint, business. expertise chain. The New quarter, the offer their adult online in in by workflows Precision already can first-mover our leverage Imo Flywheel. with to solution and state-of-the-art empowering and content Group now AI comprehensive off Ken content Media to content USA the with Omnicom's in winning Omnicom We advisory content production directly is studio acquiring and in Omnicom a marketers a is strategic retail innovative paying supply customers. capabilities accelerate Group expanded personalized

more several In enterprise more across how how we outcomes marketing next campaigns our months, about efficiencies the you'll are AI for deliver to and hear work effective drive our using improve people our and to clients. to

the production an new strong a the extensive the in After to review very business Group addition of In process, year group. Amazon's Media media by the the performance being wins, won across had biggest business picture Omnicom awarded we Americas.

opportunity Chris' Convergence business. by Omnicom Michelin BBDO added roster. lead creative [indiscernible] hired the to business. We Digital for General first Omnicom agency all selected agencies topped billion services we're Rappi collaborated Silverstein key for precision business Adobe's Bakeries for in progress wins, creative picked Amazon agency. work. up to terrific Media $X.X their initiatives. extend agency, and and U.S.A. half honored selected partnership. are our results Partners our Overall, teams to and Extra as marketing been [indiscernible] also strong its the and OPMG Group to financial our Mills want pleased wins. I business appointed with Experience new our on his very XXXX to have Barclays integrated Creative. Guy win thank and OMG won GSEM, total new Corona incredibly have Media to Bimbo Global report pitches with

While upcoming due we we in what significant East, remain actively are Middle in the conflict elections ongoing the U.S. and and control. can Ukraine managing to uncertainties the market the the

on focused for the margin achieving organic targets and year growth in confident are We remain and guidance. our our

at for a over Phil? call now our will I the closer look Phil turn results. financial to

John. Thanks,

forms solid technology other and the Flywheel of ongoing investments the third of strategic make to on And performance LeapPoint our AI first Flywell position business half through to XXXX. our the Commerce and tools. marketing the customers of acquisitions investments Omnicom continue in we of Cloud, builds to performance like quarter the and needed needs our said, John Omni, meet As and

revenue Slide in the quarter, growth Let's just our change decreasing performance quarter review our the on at X.X%. strong Organic revenue from by was on translation was in The impact reported third business revenue X.X%. X. currency nominal, beginning foreign with

quarters, in dollar, if and changes estimate translation for disposition and XXXX QX X.XX% of on Flywheel revenue currency are X.X% and transactions foreign Given currently, The stay rates the reported of by revenue disposition recent the to will along acquisition positive due of for full Based where year. partially they acquisition small completed impact of of positive be a the we with QX full offset January, the year relative X.X%, the primarily acquisition of impact prior some were expect from smaller acquisitions and the for we flat on impact the dispositions. date, value X% few to U.S. net which for will approximate XXXX. revenue was in

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

and client the a strong Marketing contributions media U.S. U.S. During growth with in and strong last Precision positive the and of quarter, initiative. driven of advertising, growth improved lower our advertising Precision Flywheel which concentrated Group media few in experience offset primarily including by was performance our and by markets reflected in growth to continued Marketing continued similar performance production growth was was agencies, growth quarter spending strong outside from our at customer in X% X% the

at from recent activations significant growth contribution support X%. XX%, wins to U.S. performance. Group for contributing relations retail and in our grew revenues spending, offset the loss by we to reflects Olympics. beyond. we client performance full flat X%, be stronger execution lapping end our agencies the will a Experiential the by client softer Marketing flat, client offset in performance this very strong, recent the Public should from Precision was Summer wins, of were resulting in expect growth fourth And and Branding declined This start X%. related branding businesses. reduced performance marketing merchandising by fuel internationally. continue by our results improved reflecting retail down quarter in and good to driven Healthcare was election With year, and in commerce. spending commerce By declines and

performance largest Middle regions continuing Latin on this a the all strong The was and of year. Turning solid markets to posted most our geographic organic X.X%, growth strong U.S., growth. Performance had Europe in Asia America Slide and market, also East X. in trend growth Pacific,

is quarter year-to-date, and both which industry X by their no the our maintained with stability sector significant revenue mix. historical for of Slide in changes

a our January. X.X% these reposition costs workforce our In clients Now at nearshore, costs let's expenses. levels, for X staffing services a continue look to towards of as that Flywheel our reflecting quarter, and salary-related Digital the percentage service Slide grew higher-growth our acquisition down primarily to revenue, Year-over-year, as were turn offshore the with increased need. we of in

costs revenue, such media, connection Third-party with service marketing. the a have in especially that these in our higher and disciplines experiential level costs in of grew growth as field

and billed Occupancy greater from Flywheel other strategic were costs expense. directly our Third-party related a acquisition up the offset out-of-pocket primarily increases reflect to incidental clients partially to increased and costs increased SG&A in-office professional costs bit. in rent by activity. other lower and fees expenses due to and costs initiatives.

back look Approximately both to comparable statement last reflects amount third EBITDA year. developed EBITDA income versus XX% no internally relates detail. margin income and assets. strategic our operating of and platform tangible was adjusted let's to grew assets non-GAAP quarter. acquired the margin XX.X% turn intangible intangible amortization to for the add-back Now added and assets. X.X%, Slide acquired at the With more and adjustments of EBITDA X the the in EBITDA, during XX.X%

our in The other EBITDA includes costs technology with connection our levels Flywell AI performance to to expect relative Year-to-date, investments of incurred well Cloud, as XX.X% margin fourth compared as and the reflects amortization tools of and XX.X% Commerce our in in also Omni, We flywheel. is the EBITDA and last quarter. reflects similar integration margin adjusted the our year. performance disciplines. It costs of weighted related platforms

close year we of this margin adjusted our full with to the EBITDA expect to to XX.X%. flat be For XXXX, margin XXXX continue

strong strategic savings As revenue future believe that drive EBITDA initiatives we cost investment we growth. and will opportunities with balance

financing XXXX flywheel income change interest $XX.X a the from increase due $XX.X note our driven million issuance third due million. to and million income November in Moving recent expense Net to maturity. interest increased average The interest to of advance the million in a increase was the of outstanding The change and in expense interest $XX.X $X.X cash net down the debt higher balances. statement. quarter higher also by investment expense in short-term reflects in

rate in our income expectation of of was XX.X% line with XX%. tax Our

X.X% fourth This to recent strong resulted for already a expect like that last in driven per lift in including QX growth also fewer outstanding interest, We X.X%, in Net $X.XX. to excluding as year. share our by quarter X.X% amortization, basis, minority and activity. in compared EBITDA shares rate Below income was were part, the always, line, with adjusted up XX%. of diluted been an our interest after-tax to drove the acquisitions. earnings from have higher On diluted I'd point that revenue diluted out per approximate expense share. to buyback the coupled a some agencies within earnings

X% please flow Now Slide last Free turn cash is from to XX. year. up

changes working others in capital. Our excludes like definition

months For capital you management X%, work ended working continue and the XX. to capital our time. on by appendix see focused the Slide improved our X can neutral use over towards working September We annual as level remain in historically XX, of on

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

well strategic reflect technology as of earnout of our acquired million, acquisition in were Total January $XXX our expenditures Flywheel facilities. LeapPoint. Flywheel, acquisition include investments $XXX million, the platform capital payments noncontrolling as of calls, additional in payments on late interests and the discussed prior Our our $XX as of net and primarily which which initiatives investment the September acquisition acquisition reflects cash were and million in

repurchase activity, quarter. net and $XXX the our $XXX year-to-date from proceeds plans million stock Finally, share million in was of

for Our to annual repurchases half been average XXXX expectation for be approximately historical the of in year $XXX our million. of about has

September that we level While a variety of exceeded factors. QX repurchases on XX, as of will depend

[indiscernible] our ] to value summer, to about At financing, the repay our portion quarter credit, Flywheel The cash debt by of X, foreign this million which did the $X.X euro million. XX liquidity used which hand translation this $XXX maturities. of on of the third debt book XXXX, value to USD effects is of acquisition book notes financing a with [ end increased $XXX of our fund billion also XXXX. earlier a reflects November and we Slide currency the and a of $XX million XXX our million be year

issued equivalents this reflects cash XX, investments Our September note ], short-term last billion [ summer. and up at $X.X million year, $XXX from primarily

which facility, We commercial an billion revolving also credit program. $X.X our backstops undrawn paper $X have billion U.S.

XXXX. discussed we maturity, November invest financing the that X.XX% until are our given to For coupon maturities notes to at I relative cash the the of rates activity opportunity further has November. in favorable us have on just The April no due

We QX of currently estimate the in off November, and than expense little will in that higher pay will be QX notes XXXX. we net a

Slide was performance which XX XX equity XX%. important And XX% X metrics our presents on capital our for reflect consistently historical Omnicom's was September both returns XX, months performance solid and on ended invested return sheet. return of on XXXX. and strong balance the

for to I now questions operator please up will and answers. you. ask the Thank the open lines

Our the line first question Instructions] [Operator with of from Karnovsky JPMorgan. comes David

on what wanted check to hearing John, in I clients. you're from lately

the but there lot creating Fed like obviously and to You of as factors uncertainty. what now, talked clarity we previously a election other point hesitation some have there's about

the can QX update or conversations give So on your how of view an of 'XX? and tone informing maybe you that's

on this see go we think don't subject won't gained clients I the the the long number project We discussing. a call as the to God enough, turned Fred, what you of time quarter, to balance million going goes that client quarter year. $XXX significantly say year happens would this me impact number David, some that, upon been primarily really to you've typically depending and hear of of fourth are terms It's and we're what from spend election knows visibility that through is activity. every much which which Sure. spend, is currently in even that in to the the a

moment. I the think lot depending a on landing. If that's talking talked to, people were the case who we've about, at more the you of achieved soft

knows? who if helpful I doing but that, question that's accuracy. if don't actually I some could answer something So else be not. reflects business with probably or Our know that I

And expand the ask the of you the kind medias? through on on you just Can like review recent it think expect could water gave then Amazon, that factors means an to start wind on you the that on a to the the largest memory. anything to what have shift feel flow you when results? least Yes, on media I you edging given would at for bit the say

is with proud to it. was earlier largest quite Amazon convergence been of Well, opportunities quite continue looked which that the we of Amazon and I selected have solid did come while, in phenomenal importantly, in been the And had a points. as we proves number in acquisition, a see very Media think It and Sure. the that coming relationship if just the it's win you very, belief year. as it successful and happy off we're of a the this to One have at our we year. But has that will up. incredibly reports, more them, you'd Group do Flywheel

point from to things the So -- to it's investments an offering. -- companies. real the to , do MEA Amazon permit Overall has created adds the X a on enterprise that And strong between extremely view, of going relationship us the forward. other an skills, so all this

were proud because bring long So a very in party. complicated deal we what demonstrating they them was great thorough that. very, process very of of the did, could It we time a to and energy and to what invested they

that The flow-through something one thing or you mentioned along line. as is,

in that up a expensive, we're that, new staffing of piece will pitching making What it's you're doing Now the the properly. when business revenue is we're start like currently year. sure

the balls will no have something fourth continue dropped that is quarter. and through So that

comes Morgan from line with the of Our question Stanley. next McVeigh Cameron

couple margin and think expansion EPS to double-digit growth, go back can a years, of you to the happen? top your you being need to next mid-single-digit that with then grower would make As get what line over view, in growth about right to

developed with Those efficiencies, associated going perform Well, help to the it associated What in all done on. list level tools, functioning continue there's and how convergence did what business we constantly of to what benefits process that we're while last there's more earlier make better right if is really tested the And in receiving. us the a which margins through break the bulletproof clients, is tools. deploy just year, making number but to level are the of going or and for doing as now. going are we should that's at new we some the OAG investments those forward. the list quarter. year, the interesting of get appropriate stay that us that process to in to a go we the AI development with it we've things all striving that of continue where balance point of you a where in that through unknown that make this are those we've investments is going that's forward. that effective be that's and we incredibly with which There's to associated production top at And by cost should the a won't

So I'm so just guys tolerance. our amazing bullish forward as And things because now have we're we done far. testing go its

to Got into are quarter and you the been it. as head is secondly, Flywheel grow we double potential integration still digit? going? fourth into And and have do margin of then impacts learned? the you growth top look How trending the how expect line What flywheel

There's win a proven mentioned we I spend media demonstration The which in distinguish opportunity And better time. to answer terms expect the measure to collaborative first And that's for to area. very Amazon that we've that where we I ago, that spend it's rather that, just marketing as important to of than I justifying and the we do call other clients just second and no with the Omnicom able ROI of where spoke do going investment effort question about that we're to it in my is grow. further the get general yes. in all have have done CP measurable. that's

the have other now was and that's offering. from between the thing platform with and think solution that happened analytics data that data and a Commerce of that part we data the perspective is that's I helpful Flywheel Cloud Flywheel that integration Flywheel and Omni service

solution. our in robust the very which Flywheel with clients a behavioral the set very are of is And data really proposition. interested business Commerce along more are powerful being for set, that new clients is be going forward. of a and we think with a with Omni, time, having tool data over So to Certainly, and examples more those an us. data wins transaction that our going powerful

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

So like talked the organic low guidance in implies you've to growth of the end I higher X% QX. about think X% that range Xs

trying projects, this an intentional you growth know half I about think just that just towards sequential QX? for a some talked whether with about with uncertainty if is of in of year. that's are as So often you've second point acceleration the walk think conservative, I be to want because always there you in to the that Or at

you you want just I about XXXX. think John, when implications to And possibly few growth. for close marketing, QX I bigger that quarters So precision ago think about within at think closed exiting how on has a double-digit year. this Flywheel, we talked that to can about then,

can you just as wondering if segment. it maybe what and Marketing expect how in you're that QX. Precision accelerate little a think the go you level performance that I why slower the was could as maybe And longer-term I in a was to gave you to some reasons So we about deeper it know business? seeing to in

to spend We're with in our our business win I'm we know trying profitably whatever sticking fourth clients service we to to guidance I Well, because continue project can certainly don't them. and the can quarter. wherever Sure. the service

of lack effort no on there's anywhere. So going

not in flow the as sit confident, of If through we my that. And going with -- I be very I'm project -- So I'm the end able achieve guidance I year. today, has I'm expect my I'm be spend, what X stick at here high can walls obviously, come. as this lucky been will to that statement. to has for small well. that to the that I'll

terms States the tied to it. U.K. snap was sit can executed, kind something election In in were the to States. United that today. very short run, while in and the know United was Phil government been shortfall, return been, everything been the business he The being States, that outside outside called the here have that of consulting has the Precision, strong. And expect we add. it's that specifically as if we very the has growth fourth and we may spending But primarily to there add upon suspended United based was quarter they'll we of to wants election Phil

Yes.

growth term. marketing are its particular that the group to business outside in hasn't the we're some They U.S. U.S. Our relatively over the wins performance to We're have term it's view LeapPoint, GM we business as which And both long no in the recently think recent continue question. in acquisition growth at growth prospects expect of the in of in that most near prospects strategic for The for great, sure. a and about had to end optimistic space an September. changed. in started in just we precision committed the us, space, area the We in of through closed in invest that kick example. excellent just new U.S. the QX that

Jason Our comes Citi. with Bazinet from question of line the next

growing you're is briskly? question decade just has And rate range, which taking the better bit bit your the that doing I from been you and actually industry is bit holding than just Or think it overall is function you maybe had a overall better a share ask the in view a of more this a because think sort of do companies? a And I your about ago. do industry. was that growth other of mid-single-digit a

decade like could investments will than And where certainly about measure Well, separately clients better anything flywheel, product things we I that our think made like you ago. hearing omni can as a sit measure, money. give shifted very we we've invest things a and has you can fair in mix to

think industry confident that that, do only better than will the last in years. X is So that I X in And it or I'm the continue. shape was

focus that supported the calendar we paid they continue ago. made expenses by that And off that They're remarks, of we think to think, because been list that get can to years and prepared and I in beyond. investments -- But pay prospects. the off solid would where start, will off have our to and enter never we this my placed get I remain as distinguish we do I really as bullish I laundry able into wins we've our about revenue about that a ourselves we to ways in X contributing into as ready we I 'XX, so contributing get should in be very year. service talked revenue. they we

a we're X it growth quite business X, strengthen we've where of been of parts making prospects. terms of Avolio, businesses and a the different service bit today, To done stands portfolio about few and the investments lines, and we've in Yes, work exited years. confident in the terms over and last of their the we've

that's that to of the offer So a to to convergence But having organization years the provide is access at one and budgets been to is things we because have think within we we of the X, services disciplines different on other the today certainly, X, marketing that up the as have the necessarily client and clients is and able to capitalize have certain bit organization access we And ago. which didn't we CIO than we've had the well. clients, our opening merging past business we different. sales X or in budgets services the can and advertising today just quite the of world and access what that beyond

services So if a broader group we've of potentially kind successful. got to of and we're a group clients of broader access

with comes the of Nollen Macquarie. question next Tim line from Our

as well separately. I've got couple a

had you did it could bit announced me John, this, to then explain many advertising the first, numbers. follows about a bit production Media just group more after last seems you summer quarter, ago So over you Group last a together. you Omnicom years Omnicom what like It I the you reported studios. And the think, on putting Omnicom announced

consolidating So tapping then into kind things. got now, all I operations agency is mix Flywheel you've which and these sort of think the of in

to just be one are you guess company agency how that's So you versus how as you bigger, better do separate brands? service individual the versus integrated now question, clients coming now? versus are going I individual integrated

that on have was OAG we and creation foot, clients very we're but look short and our better front answer the a deployment past. changes, been ever of approaches. party into a was every much our how artificial we making dedicated basis. is those needs is go because It brands as for we've to brands those cultures are cultures we intelligence various those is and us business to integrated different them they better deploying the different efforts saying and for agency be more a the white we're than is for can approach clients and job as our different in of of done The the a you impacting that singular in bring And have. move investments products the Sure. the that But one our technological how in somewhat at to look Omnicom their of talent, do execution the it's the market to in. better more that tools, motivation engaged use really and on and -- doing sensible for which advertising groups those going to group still of be to implied efforts various that if the our labeling are singularly, then the we

efficiencies create the -- useful of the attract have but deployed and us meaningful in strong many, very the in tools and strongest that optimize So where be speed in of people make knowledge yet and talent us to best both puts are concentrate investments situation can that to. think it to workers the worlds, which allows improve a are the the information market, maintaining access past, we many creative in and strategic a and to continue I -- our clients will that will every client the case the attract

it guess? is cost was it line savings? Or both? I So more top Or more is it equally synergies,

savings them consensus them as else would create slightly we're not cost than to put its ago, variant different never do and Had XX we de is for waste minimis behind come have to more different make in terms you anything in with up a clients AI, Omni XX-odd years we approach avoidance put most think those The agencies, to a towards XX to of than what have loosening and media been able investments media are groups. if able room together be would useful what to had that. they their rather then

very it's -- investments is their we both. useful being to useful be most same is that clients making this probably past, that the group with a clients get And of when in and up nothing to for have as can was that us business it of the review, intelligence those have they where it's balance the put in similar. most terms So resources selected but and the the we

cost to brands available the had were We So of that it's the the products looking tools heads. to weren't those to synergy. quality opposed and avoidance of to. as our waste We folks improve cut looking

clear. retail up media. That's to second explanation. I bring it. Got My about topic is wanted Okay.

the that. do are what well abilities really how in is a your them media? helped website able to retailer in is, do maybe being rumors to about were do could and retail And about you're them me maybe ], what in you to should about as where not if a And help off-site it agency wonder talk Amazon. bring on-site seems question really apps side what talk retailer's agency's it weeds, with understanding Flywheel could to how at and on-site are, on both I talking might you ads wheel like active good deep with wherever are you [ feel the opportunities each how bit then is to bringing if they You be as the off-site is to and but reach too being my or

retail Well, of Flywheel go in of and United multiple the target by the We're you none is list, leading down with of providers, which be outside who China, Amazon, some have online pretty the activity States leader, type Walmart, as well. the things. bar it cutting-edge them engaged

first or acquired market the they to to So the market them. we were were first before we

We have great of depth a knowledge.

up lot of built of with trial pioneers really blaze our a have the the retail who We trust because history.

shape. good think we're I in So very

in for and ahead put responsible in things, mean next the lies. industry and it investments that they substantively, small a done There'll it. press further the and does decade best to before be people whether of a make really team marketplace it we'll envision existed compete we of say in together was, in has No. thing. the we'll it? can other accomplish to will to market, are but come play but Flywheel in the a terms the People pretenders fancy Flywheel against flywheel fact, have Now it talent but that that and And monopoly releases relatively successfully, closest the continue them, that

it have we very tribute Flywheel strongly our growth move and So we're forward. I to fortunate very to think as will

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

questions. word we to a hear use you John, the had often couple not bullish, it's of your business. describe I

outlook say I you think I your heard business and twice stuff. your and

bullish, seeing the the marketplace your what here in -- little So why a U.S. depth What you about the do in mind? you're in use and more word and changed . I'm listing what's just there overseas.

have this year. that next also compete which about Omnicom of last foremost, just X will in the be months to I'm that the sophistication of revenues in had our clients of into bullish the to the and and we've I'm ability wins we and year, marketplace first contributing level percentage -- us the the in bullish our selected of about we at process. Well, winning whole that start

got ones sure that lot a the the confidence we've metering. lot confidence I and developed are tools in and that lot of teams of have we in a a the currently of make are in we've have confidence I the pitching, So beginning

economy? an view, and the me point interruptions investments the road from team performance. the confident, there client. we've to very industries But anything improvements, these bumps that able in Are And be in of sophisticated the that be measured be overall made. And and bullish. our seems one a we're really what measure I'm certain optimize in of Of that to each course. going bullish. and I confident sold to increasingly I'm but with that's surrounds to So can be mostly in technological can

my And John... question, second

thing, did use bullish, will no, gee, same either about bullish been happened. I twice. the this wife I'm it haven't use But My

used I've it Now times. X

margins margins, very year, what's the to ago. this then year us to prior your years? year could Right. hear. mean, margins talking you this this have to roughly next next year saying but organic then of holding through to year, similar every invest obviously, growth if on And just And what's going you for back? holding about for heavily you go year have with flat I you're Can year? comment, roughly help potentially if unique you're What's significantly fall obviously, year close Good higher growth? margins one potentially if I guys back mean, it X% a roughly you off is you than

counterintuitively, When you do I'll it. is revenue money. can Well, And staff or staff before, of would invest X you times win piece front. contractually. because this the just have small margin on you revenue this without I'll XX,XXX unfortunately, in just business, And to twice. from Phil improvement business, let comments the revenue. coming get you your and you see time X you quickly said one. lose when Two, think pretty you reduce see expect because to relationship I've your not a is business, the expensive still but of you're the to most One add I to

would deceived be of word period caution. don't by any be So my XX-day

making We internally and investments make products judgment be we where those balance we the which the marketplace. develop in order successful us make how in to are investments should our to trying through our in P&L

of balance making do forward. a it's margin for delivering that fit the go sure to as but Phil, to... you want we shareholder, purpose So we're

Yes.

of no company of profile and how is strategically parts different we I overall. couple overall of how And at the XXXX key a think terms those approach. in our we look the the margin are manage certainly

As to said close throughout we to the be the year, we flat. for expect margins year

think is But sustainably in business of over going ultimately there business a us them, grow varying that in, there investment. goal in strategic staffing term, we've continue many the then forward. quite certainly, going platform, the of continue made. been we is for ultimately investments investments an years us in We're in and the on investment look when the up and our there's growth. seen pursue do make And few is to As to been term. you time the those the John to long make be a an the near to Gen AI, Flywell in pitches business, terms the had at wins We've indicated, and portfolio. Omni we've been more those grow space the for number require and that platform. pitches margins. to the Commerce that that win requires reevaluate we've of future of And have been initiatives to over platform done we've going the past. position investments pursue we Omni to have a benefit goal the Cloud a because we We focus sustainable it successful And

find from. to come So to make time. And to to short made that's a are But we're think to in continue we be that wherever And terms some But efficiencies underway. maximize where improve just margins not is be of that them. for strive improvement that. and ultimately, look the of push going of ours benefits We're efficiency are portfolio shortsighted we've of because pursue to going number we investments allow growth need areas want over not big we a in to we have do to these offshoring to to margin going sustainable that's to continue us certainly, got margins well the certainly nearshoring. to Automation initiatives continue term. the of a and that we're push we going have to going can

of the forward. towards we certainly some recent as And are that encouraging go very wins

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

given kind Olympics That's bit to this mentioned And growth the election looking special But a those just achieve? quarter? I one-off there. can growth. can. the question. Very this you're should there of Or quarter in the events? a with a benefits if questions, think we of were from typical Is just quarter strong Two you some is the X.X% and of special this first be U.S. organic cycle

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over States We years. the get X elections going congressional in bump United as also a well

are think in But they players quarter, contribution ongoing every not some they're I X.X% servicing areas. those there those to the So they the is activities. because best whilst we have

So...

Yes. over months. X through little I we've a grown mean X%

the of is future We the range at year. to in in double expecting high last for digits grew 'XX, Coming 'XX. X.X% be in end out to our expect We're We year. the normal. X.X% new grow COVID, a of

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going good forward. we based rates conclusions particular to continue we think we I and think But on to 'XX make one those any grow and at performance 'XX the don't perform expect strive longer and certainly term, in quarter. as

Yes.

known the Adam I'd In me, thin so -- election think very is is is a I other United time go country. this the around being will that The I in states in places. number but that, November to add, margins X, going on of election probably called this anyway, be money to election be States that based Andy, excuse And thing personal divided -- very the few it that's will speculation. because on personally, think spent upon the don't beyond that

which just one obviously, wondered ask That's helpful. is, impacting more, want to of of just kind that's how talent. I your And some I you're peers. outperforming

how you peers? to it add from helping organization retain your talent? you comments Is So our to Just you can the some looking about you give into have? strong helping is the talent are with people you performance

Sure.

and people bench talent. always as for projects. be We recruiting especially I'm a businesses, to They staffing very quick we're of of brought a very require for talent, small open on strong and a up these board lot are we more have win manner. relatively no them. already There in

but because the way build eliminated have tools to of get automation, through workers, our break we them also some the some these technology. towards able don't of well to said, we've think And new this on that proof tasks new referred overcapacity efforts will So are Phil that help we points we marketplace. entries we're into us if from attract as them through and don't been coming the yet, AI, as the require mundane competitors, knowledge more I are others

changing during So has the is I rapidly than business it career. think more my

to from my positive perspective. and -- So all the

conclude We all this at participation. call. have no will This you time. for your conference questions further today's Thank

. now disconnect. You may