Gartner (IT) 3 Nov 232023 Q3 Earnings call transcript

Good morning, everyone. Welcome to Gartner's Third Quarter 2023 Earnings Call. I'm David Cohen, SVP of Investor Relations. [Operator Instructions] After comments by Gene Hall, Gartner's Chief Executive Officer; and Craig Safian, Gartner's Chief Financial Officer, there will be a question-and-answer session. Please be advised that today's conference is being recorded.

both a outlook third in for release earnings include results XXXX today's will website, and Gartner's our and XXXX supplement, call discussion quarter of financial earnings investor.gartner.com. This to posted as disclosed

exclude are On exchange values EBITDA for related the and rates and contributions as in associated adjusted to and rates release discuss adjustments are our the growth call, earnings exit. first otherwise, based with supplement, the references foreign quarter stated XXXX described the unless and on all XXXX EBITDA, while to we contract divestiture Russia

Our are for Relations we available in All fully gartner.com otherwise. of in for unless growth are average use references are the weighted Reconciliations rates numbers counts share Gene's FX-neutral unless section website. non-GAAP Investor diluted counts the stated comments to share otherwise. stated all

in As forward-looking earnings today's release, set certain issue more in made may statements. this forth call detail on statements

risks a on review annual filings of including Form SEC. vary as company's the and XXXX and of report results can materially in as to well all contained XX-Q the I with those the reports quarterly these number you actual risk statements listed XX-K factors in Forward-looking encourage from in subject and Form on are other documents. to uncertainties,

Gartner's turn Executive Now call Officer, to I'll Chief over the Gene Hall.

performance Revenue, another was cash Good delivered growth Free us value. the morning, quarter joining and above contract in adjusted and EBITDA excellent. QX. We strong EPS for in Gartner drove today. single-digit in came flow expectations. thanks high in

know to volatility, insights, Leaders between, post-pandemic they the source industries. is still continues chain banking struggling different failure and and delivers There's often mean priorities. uncertain. interest challenges they anywhere many The are they're The Gartner know in tools performance help, sector the to heightened to for rates. external still leaders decisions thriving, Whether rising that actionable, industry success tech volatile The or clients' and need more. enterprises stronger geopolitical and smarter environment serve. best adjusting Supply our is they and demand. and in help. Gartner grapple our advice with insight drive objective on and mission-critical the for remains

Research our to and We continue the most major environment. profitable be largest and to got leaders all be agile segment. adapted changing the enterprise around every in continues world. We to across industry functions

vast all We geographies. sizes Our $XXX estimate across around is at market and our opportunity sectors, billion. opportunity

help In cost In grew X%. double-digit analytics, enterprise as the topics, to clients Total growth on the to organic more. function such basis. revenue third value at Contract data quarter, range rates. grew contract quarter, value optimization we cybersecurity, and Research grow third work, an leaders continued was X% wide remote intelligence, continue of Subscription revenue a with for artificial X%.

by or teams through also and Sales, leaders GTS leaders GTS Technology executives GTS at We sales technology their serves serve technology GTS vendors channels. leaders sector enterprise CEOs, serves contract grew quarter. including leaders performed teams function to affected Marketing the and senior well X%. to distinct officers comparisons. GTS, and leaders. product were sales sales year-over-year Chief at their and vendors, Global IT. tough within dynamics in value technology

to vendors next to rates the will to XX normal over return technology sales expect growth XX We months.

sales, Sales, grew HR, legal includes and Business value chain, XX%. more. IT. leaders supply Global GBS, This contract or beyond teams GBS their serves and marketing, finance,

we're execution unparalleled our practices, able relentless of value proven a Through to clients. deliver to

vendor for remains the environment and despite technology top a complicated, compares Our business persistent, market. external resilient

our off attendance great of at to in-person year. fourth We're conferences quarter and levels. valuable be a the record are outlook Conferences to full year deliver Gartner audience. advanced extraordinarily The XXXX. remains having start, strong. bookings an engaged for the and first In-person is and will insights qualified This a since great year

IT conference Symposium/Xpo in this Attendance Orlando. series. recently was our strong. flagship is conference I attended in

and from highly feedback with teams were engaged sales clients the prospects, be conference Our and excellent. continues to

an execute most Consulting a IT project-based to through is initiatives Consulting XX% revenue clients in Consulting important grew record the our an quarter, their extension optimization. Gartner of business. extended deeper helps Research. strategic Gartner is complement results work. of Consulting with research contract

guidance to and the increased start Given in the off business, and XXXX. we've details. to get you to to a will We're strong free close cash EBITDA across well performance take the XXXX our year for Craig flow. positioned fast revenue, strong

teams whether We value their know between. closing, In environment. in and to thriving, unparalleled to exceptionally across the the function, to Gartner We're or We deliver leaders major to world. struggling agile things in successful growth. right be any continuously enterprise they're do achieved and changing every adapt strong another anywhere

Looking of well future. far ahead, we to positioned are our strong continue the record into success

proposition market value allow addressable revenue client double-digit and sustained to Our opportunity drive will us growth. long-term,

modestly time, in generate significant well we expand free of income. cash flow over net excess We expect and will margins

we invest significant growth, excess for reduces over our increases outstanding This capital and levels as Even time. of we'll shares returns future shareholders. return to

our hand Safian. Craig that, Financial With I'll the call Chief over to Officer,

and you, Gene, morning. good Thank

and better were guidance. Third value. performance in disciplined visibility QX, EPS than we and cost expected strong results cash are and with increasing in single-digit With free quarter EBITDA, quarter flow the results into our strong contract good high consulting with in Revenue, growth adjusted management. were outstanding XXXX

and FX-neutral. was revenue up year-over-year reported X% $X.X quarter Third billion, as X%

million, $X.XX, up our the with Adjusted last contribution to continued EPS as flow last ahead year. expected. catch-up flow year. X% was in In as $XXX XX% addition, was year cash was and compared margin And free prior through of line was the guidance in P&L of from QX total million. the to XXXX about hiring XX% EBITDA $XXX

X% curve. well second X% a the with remain of from XX-year the We We finished quarter perspective and associates the from the XX,XXX our associates, to end continue move up up the as prior quarter. positioned year talent from

FX-neutral X% on basis. on to similar grew revenue was FX-neutral basis. organic revenue third as X% performance an Research revenue grew year-over-year in the Non-subscription and Subscription quarter reported QX. X% an

as year to of period have the Third compared in on was contribution travel. levels prior returned up we quarter XX% Research expected new and the caught XX% hiring to

or at billion was the prior the $X.X quarter, versus the value, X% year. of end CV, third up Contract

was quarter quarter CV a strong last across FX-neutral with third metrics. and The divestiture. research quarter is year growth first key very outstanding excludes performance the most XXXX

and CV at from leaders GTS rates. double-digit grew function across enterprise GBS

XXXX. New grew well. business increase, digits enterprise mid-teens million. compared from function tech in or of vendors NCVI, increased net contract as growth low double with value digits quarter $XXX CV the Quarterly was third single to leaders

in the in there notable seasonality this As metric. is past, discussed we've

led grew was sectors, regions. the sizes the the growth industry practices, broad-based practices, at and across sectors. tech majority grew has of CV geographic services growth double-digit across and We vendor combined high rates, mix, company our the public the single had all digits. enterprise Across category, sectors transportation, of which by other largest and industry size single-digit our categories small low than

the double-digit also of single-digit countries. growth XX top in or We our majority drove high

second quarter, Sales was prior end CV Technology GTS the Global X% from third contract million value $XX year. $X.X up quarter. the at of the versus billion the

this year, the While the the to function GTS when levels during for leaders metric. which in retention quarter, near-record IT for retention high above third was compares quarter. we enterprise historical wallet prior remained for saw a XXX% GTS XXX%

year. up GTS was X% last new versus business

to prior X% with GTS was headcount mid-teens IT year-over-year. enterprise increased business function New the year. quota-bearing compared leaders up

for territory With moving we're the the we into curve, years hiring last our few tenure the teams growth we dynamic up planning positioned well year a ago, catch-up introduced and XXXX. did moving

earnings Our regular be supplement. set our found can of full GTS the of appendix metrics in

contract Sales value at the quarter, of year-over-year. up the end XX% Business $X Global third billion was

All sales, led grew HR. digits. by at of GBS supply chain was increased million again the our Growth double-digit rates, second or high other GBS practices than CV $XX mid-single grew quarter. from which single-digit and

compares the to to QX saw GBS when year. this was up prior highest-ever in metric. compared quota-bearing business of retention XX% new XXX% XX% year excludes for associated was divestiture. one GBS While headcount This we headcount up XXX% for the last with the was for results which year-over-year. the GBS quarter,

of full in appendix can regular our be metrics GTS, with our of GBS As set earnings supplement. the found

during the quarter significantly X delivered held all million, compared from margin We our was QX held XXXX XX%, in reflecting to the in the with Conferences XXXX in quarter We The consistent investments calendar typical we conferences conferences was the revenue in Contribution period. in-person. expectations seasonality and to with small seasonally same the for the third growth XXXX. for $XX shifted to return a strong growth. in-person. of future ahead destination for quarter, conferences

increased year-over-year were quarter. XX% Consulting to revenues million, XX% continued reported and FX-neutral XX%. as XX QX $XXX up basis in basis. an Consulting by on last an revenues at with FX-neutral $XXX up an XX% year third Third On XX% basis, June strength. was Backlog $XXX versus revenues million. Labor-based of year-over-year contribution million, margin on FX-neutral was were the quarter increasing booking

contract revenue is variable. pulled the outlook. from forward the We to with delivered the our $XX optimization quarter of Our fourth revenue in million prior highly business some of quarter relative

headcount the basis. quarter biggest was Consolidated third the of year-over-year and increased future in as year-over-year growth. a growth. in FX-neutral of the basis. cost quarter driver as X% on X% services quarter and increased third an higher the increased reported SG&A of result to increase The headcount an FX-neutral X% X% on our support as in reported SG&A

third with EBITDA for about line $XXX quarter was last year. the in million,

in Third prudent guidance expense quarter our exceeding and reflected our revenue EBITDA expectations upside primarily consulting to management.

in cash was was is was modest of $XX interest hedged to million versus our Depreciation million quarter costs $X higher maturity. have through in balances. of to million. Net financing due the on XXXX. quarter quarter third the up compared the The $XX rate This we floating income interest fully XXXX expense deferred debt down excluding modestly

items net for to tax for rate we tax quarter. for The XX% income, rate, The QX the net of income for the XX% was quarter. was the adjusted adjusted which adjust used calculation the use

Adjusted third the had shares EPS quarter. about This third X% is million shares in on or an QX X% million to XX quarter with up about reduction basis. was the million with in compared We year. We close shares X last outstanding of exited year-over-year. a XX unweighted $X.XX,

on up and of on free a million. X-quarter for was net a quarter was technology year. CapEx for flow Free divestiture, of million, of catch-up was cash for flow the revenue flow was quarter investments revenue cash to which in adjusted the result million, after-tax last QX Free GAAP normalize compared a spend flow as cash as basis impact XX% conversion from $XXX was $XXX percent XXX%. quarter this cash the year-over-year XX% XXXX down year. income EBITDA, of Operating XX% of X% the $XX for rolling the

Our free cash is growth when flow conversion is higher CV generally accelerating.

billion $X.X about At the third had end cash. the of of we quarter,

about Our September was XX balance debt billion. $X.X

Our EBITDA reported gross XX-month under to was Xx. trailing debt

expected balance free and flow our generation, strategy, allocation deliver on on strategic the remaining to M&A. and sheet Our provide capital share cash tuck-in repurchases liquidity revolver available excess cash our ample

sheet rates. $X.X balance low very effectively levels fixed Our and leverage is billion of with liquidity, strong of interest

repurchased and authorization quarter for million increased billion million stock the end about authorization the authorization, $XXX repurchase about available third The will $XXX million October. forward. October, increased $X had of to earlier we the going Board we they week, during following repurchases. $XXX expect by the We as and needed At of continue in refresh this

returns base time, increasing with on accretive per our share, As shares, capital. is combined to will to growing repurchase and capital this continue invested shrink. also profits, Over earnings delivers we

our performance quarter. raising visibility the guidance the full fourth into We to are good QX year better-than-expected and reflect

continue trends we recent proposition Subscription provide Research, for compelling in contract prospects. very a value reflect to and and value. growth research For innovate will clients

the business in consistent part non-subscription in the We continue growth the to subscription of with segment, stronger than quarter. the expect third

expect For Conferences, the still the be quarter largest QX we year. of to

the to Consulting business continues revenues, For well. perform labor

pulled compares QX optimization and some our revenue into contract tough relative to very have prior We QX expectations. in

strong We and both support to margins. continue growth will expenses prudently future to manage deliver

NCVI of to growth billion, business, least is X% Our the in X%, expectations the the QX the updated continued update we Research performance is incremental guidance divestiture. the last part into of FX-neutral or XXXX modest quarter. $X.XXX is revenue in of at revenue to expect which built non-subscription as guidance excluding QX. about the reflects better-than-planned stability research We follows: With upside there guidance relative The

$XXX least is revenue which FX-neutral of Conferences expect of about growth We XX%. at million,

for Conferences fourth our a to million start good increased to outlook have reflect by the We $XX quarter.

at least of reflecting strong contract of expect Consulting growth revenue X% and We timing is in million, FX-neutral, performance very which the in $XXX QX optimization about the business.

expect is billion, which million $X.XX an guidance. We up our is of for full least of result revenue $X.XX now The X%. billion, year EBITDA outlook FX-neutral at prior at from $XX consolidated growth least of

fourth QX, forecast we strong for performance confidence margin in the the the have increased in With quarter.

EPS typical We least $XX.XX We at expense operating seasonality expect QX QX. to adjusted expect now share. of XXXX from per

XXXX, reflects a cash least at excluding billion, we income For expect flow million divestiture free free GAAP XXX%, of from $X.XXX cash the net after-tax flow guidance. of prior our up conversion now $XX proceeds. Higher from

based is shares made outstanding, the the weighted average XX reflects October. fully end guidance repurchases diluted Our through on million of which

and We year digits this guidance. Free exceeded macro in EBITDA was quarter, are vendor increased we cash and a performance year. the CV grew for high well increased Revenue our continuing performing the flow we and guidance dynamic uncertainty expectations, despite strong global our tech the full the single and quarter. in market.

capital October excess to remain year-to-date stock of million return to shareholders. eager $XXX about repurchased our through We and

and We price-sensitive. will be opportunistic disciplined, continue to

over cash because strategic free lower deploy over upfront. as XX% to expansion, time. growth. unchanged. With grow in clients modestly value-enhancing model Research share our growth, capital growing We sales medium will needs double-digit which G&A leverage, and benefits the the costs growth will flow modest the over will financial term, expectations With share CV of tuck-in CapEx fast with we deliver out expand on time our to Looking of as CV and repurchases us margins on continue can gross our EBITDA and about XX% our we at paying M&A. are EBITDA and revenue count margin line we'll And least

call Operator? that, the questions. to I'll back turn to the we'll happy take be over operator, your and With

[Operator question is Baird. Instructions] Jeff with Our from Mueller

continue is America. with Instructions] can of we Next from [Operator Sir, the question? Bank next question Balsky Heather with

question hoping expense about to a I was management. ask

just do an look you -- with to to those expense think head sales vendor broadly. force? invest And behind spending management more around you that? there's into back win also Or your sales. you starts you opportunity easier you need existing comparisons, potentially to you As have next an as then lap assuming year, XXXX Do think that you opportunity with thoughts your into tech

Gene. it's Heather,

grow is So with as as we intend line opportunity, our know, market market force our opportunity. to our vast. time, that we capturing you very Over at look sales opportunity market in

we a we and 'XX capacity couple the will Over grow sales we're we've the and Again, position good grown go of group into of have. last like really years, end that continue our the in we dramatically, time, we to 'XX as feel over with capacity.

the clarify -- force with And can vendor you you assumption? fair so those just sales sales back to have? then. the When you opportunity, the win about That's tech think think do you

result Heather, that will a as will going back a of over think we on we've time, the their to business grow our kind our well. had think, our they to that vendor -- -- time. overhired revenues market which the sales, of Over Again, of some tech been there's growth forward, Yes. grow, business it, as kind the the get as tech pulled return will lot Their seen and historically. business perspective was impacting they growth again, own over have to we normal is retrenchment and business. time having we is

Heather, it's And Craig.

that we other value I accelerated years, territories would we market. thing our as have over X is, serving number The last business, the the increased of add contract the also tech as

GBS, And as all years, hiring market last so we GTS across Gene of did the included. tech a couple of lot both of over vendor and mentioned,

they for selling so positions are of curve. people tenure coming new joined in in And lot company XXXX up the a and

XXXX force heading into growth maturation heading well of to really position the want over and our like territory And we feel return good XXXX, the if a as as we're in beyond target sales that medium so you about as our will, kind we term. into to the coverage, we think to of

[Operator Next the question Instructions] of comes line Kaplan. Toni from

sort salespeople of you pre-pandemic us maybe hoping was historical compared or or I point, the metrics year-over-year versus to a around of give your tenure average could current a it's average. reference some

are point. get a historical sense to where want Just some now of we versus

thanks the question. Toni, for

look is, XXXX, least this ever had. or all we've least we you we it to of that tenured adds did sales experienced force when net at the and year, way entered if the gross in the effectively, think we So about had

were -- percent and Sort magnitude, Like past. of have to about brand XX% range new the of normal of talked side. to in order call being on in XX-plus this we're times, Gene force new-ish I typically both Gartner. sales our in We it, the is the XX%

As year, and very last of have -- year XXXX we've hiring. were did terms back-end We we in people obviously, experience the all way made in we our gained hired those tenure. through loaded this

so last their now year third in and those are or X-year the approaching have people And anniversary. fourth we over hired quarter crossed just of

of that's again, et sort we capacity, Gene, around have back question, And do to getting Heather's enough cetera.

will over We tenuring have we more XXXX, of than but than the more -- course better the look into enough "normal" or we capacity, tenured and as XXXX. experienced experienced what we significantly roll

sense. to Yes. and sort concern I to in I retention? of more That levels? doing both you're levels, GBS. The in you're to But a normal to is client feel do of guess, about like, down wanted that? historical address at anything still guess, sort within call range. And step pretty I place retention, I GTS think, driving what's you like Or out? makes ask And any are there initiatives put

No.

really there. we're tech So above it's vendor still and really at historical drag it's vendor on side, while drag, the or levels, tech GBS small

leader actually GTS, enterprise client at for historical are above rates function our apart or broke those If retention you in GTS. levels

impacting market client vendor really it's retention the so tech that And just rate.

XXX, higher than GTS. down but side, GBS yes, it's it's XXX the points still little, a basis On

retention. never said, good done we on feel so really that. about And we're That

bit that. a So about Gene let talk I'll little

said, we with Craig as now, Toni, the are never we satisfied. even Yes. have rates

And like our it as as have their associates, we careers, support et those then well the so things to with use first programs throughout and rates whole to current tools And a cetera. have we how our designed tools, delivery retention conferences, training the board service time. set improve training the come of the includes we over give ads, people on

satisfied So to always with matter how no we is, good never want are we -- be better. it the

[Operator of the line comes Wells Weber from question with Instructions] Next Seth Fargo.

a margin that for guys in through, framework I'm initial think you your go question wanted talking trying cost to mean, the pretty year of for I about back of you back to come or well is back, next year. this I to ahead the last big earlier just that just buckets kind expense travel mentioned the second. were year there are any think, year? I T&E. could is guidance Craig,

considering. So trying revenue going there's in should we the think leverage a a rate -- margin to I'm higher environment, forward be in growth if through just revenue anything

question. great Seth,

there's things I So of on question. a think within couple going your

normalized always puts expenses. a So I perspective, and to expenses. from of back takes, be going normalized are, guess, relatively There of expense to we are an operating but level relatively level obviously sort of

embedded note, marketing given sequentially other the related significant and that activity, activity, guidance, in to our is et this related in our would to the schedule, I just QX in QX and obviously and OpEx there's conferences fourth client to cetera. conference quarter conferences, step-up a QX travel from pretty

but OpEx. the make sort of just So that step-up, it normal bake kind QX to you of sure into QX reflects

obviously, largest I Research, flows is lag line our think when and start just in through. is revenue contract then thing only and does accelerating the our is mind a that, there revenue between the keep value to

sequential impact pretty a of have mindful just that, a and can margins we're that year-over-year watching so And on basis. and both on significant

reason following year pricing helpful. softer XXXX? on would that That's it next Okay. be just then Is any think than in there that. was to And

Gene. greatly, is products the next Seth, What it the I'd expect the clients and it's as we're be in we marketplace year pricing, environment seeing this is will say value our year. pricing same

from Fargo Wells comes with line of the please, Meuler [ question, Next Jeffrey ]. Instructions] [Operator

Can you hear me now?

Yes.

Okay.

you the I to make headcount know sales you sufficient I'm sure to sales just understanding management to it. drag Sorry of I back capacity. want you said appropriately. have

already you've So is rebuilt already seen sales this slowing environment and you've capacity. your a that

well Because metrics. into you're not So it like should you're seeing with incremental of reported sort there's be those dynamics, of seeing? reading we're your Or externally weakening any calibrated? we that any in that

Yes, Jeff.

weakening. is should read that you way So lot force we not a earlier, we last any over in we're expanded which what talked It's the X our it any into seeing about that years. of sales kind

end GTS, lot it's of For a of capacity. up the about That's since XX% XXXX.

a tenure. as So of On A those coming now lot of that, lot capacity. people we've Craig added of into top mentioned,

the as we're look, like of of for fact number especially made we in we years And and large between terms really the well so we've in additions the capacity feel 'XX, X actual situated last really good and in tenure as of the 'XX that 'XX, we tenure at really being by a those people curve growth at way, the got up -- well. spot and kind the during the

divestiture And But just accelerating actually I just still or I'm Okay. was why it see on with you this, X Research if I would decelerating, as subscription dynamics. some subscription address in can well to something. those while Slide revenue be it you or accelerate revenue impact And alluded been did Research. CVs see impact FX there's to not but surprised guess if perform Craig, then, sure as to

Yes, Jeff.

NCVI bit and growth is anticipated. in of do part of over to think a little or the we why FX QX, a Research than came had the of there's little think bit, quarter Obviously, we're I in So the earlier too, in originally I the is increase reason there. able guide this course

QX. the to of September, so July, books end X take we And if of combination in it. at it again, it's months books of get -- all If the it in

segment bit beating that the for well little year able third Research the full for -- as obviously, the the a in we into raise of benefit were expectations got QX. flowing then quarter to of through because we And our so NCVI. And guide

Andrew of Blair. Nicholas with from Instructions] the [Operator line William Comes

And which was feel maybe different territory ramp for way, I is, and headcount and are you lower-tenured on wanted where expect, with the fair what you going and to question given growth the previously the force. it Is come to bigger next and coverage about ask headcount to for a sales gap a it headcount growth? as a ask again, all together? maybe X% to talked year, us that you've dynamics for those X% between CV historically

Craig. it's Andrew,

the it, we're again, -- about But our of thinking in provide external on are recalibrating think course based we way guidance as we'll throughout full I and business February. the situation we're year, performing. mentioned this is how constantly we've the

at be Looking the numbers. headcount a bit sort of of quarter-to-quarter, little obviously there can in those noise

Gene territories going X I contract And X or both alluded really we headcount inflation think of value X so perspective. what we of in points wage is points X X as see to And dependent into and that kind to, within beyond, to seeing growth. on is points from our -- the grow nothing as a algorithm there's year continue And about roll there. and we're the next our and to to really that we're

or we'll And be algorithm to wage is X term. minus a inflation term be But minus higher, medium wage will X. that's of so CV bit, it CV is the closer the inflation over or abating whatever. long little If

on. to we're addressable that's little Quarter-to-quarter, market it huge over But going shift just the after. go given bit term, given long algorithm what's the may a the going opportunity,

that uncertainty, dynamics, performance and all geopolitical my for different that of vendor noisy I then weakness, given the tech the And sense. and macro Makes curious so, growth how has last your [Audio just year kind items, Gap] target. within medium-term wanted to all remained strong very these or follow-up,

it wondering have been that of expected, to just on past years, kind having through would resilient more in you of couple Because that comps cyclicality updated the last business views have of I'm So difficult any the if if, year. seem off kind of I been specifically. does than have particularly

about Andrew, Are cut the you out talking you consulting? beginning. sorry,

was the Sorry. No, about CV GBS CV there. growth, resilience of kind growth just I of asking the

at of leaders Yes. I for mean, sales just is while, telling we outside tremendous products have that we've HR it's and those create. legal and and facts But great in That's with it priorities, which problems. that, in We've believe better solve better we headline and gotten story problems, a their forward. do. And with to consistent again, the won't on the that the we business the net IT there. We've selling of everything space. the help that finance and leaders I have our we have gotten that gotten really change value business is, insights We've mission-critical and been products offer motions. moving better is great think them and we

Does that Andrew? your answer question,

Yes.

[Operator line with of Josh the UBS. Chan Instructions] From

quarter mentioned you NCVI than expected. was better You this that

in market Or types So a And is more terms there that is any to of gaining force themes sales clients strength your of is function the traction the you there? call think out? do it of turning?

executives for -- the minute kind ago, robust not robust experts address each is If And something that Craig Yes. really I a important we those how as which pretty to it's guess, Josh, things. QX, individual advice in have environments, all QX. that our whether of what issues a enterprise. facing the I'd say that areas? on we saw or we we said are functional give look a their consistent most market through them at between That's environment get of

And so just I true think get is time. and value our that what lot it's you see out of clients a over research, of

Right.

of mentioned cycle strength looking that side, is timing are onetime more function the of next the you the you clients and the think optimize guess, sustained we expect where in was contract spend? But that some a And there a Or quarters, a Do guess I appreciate optimization Okay. couple kind you? in strength, more do I their it's I type of is contract optimization kind you of to, there. of I business guess? the for for on consulting of event pull-forward

past, a Yes. business, is lumpy we've The very about contract optimization in the talked business.

that one you happen sort be what and of point to deals so really something in quarter matter just of at really of say looking and extrapolate, when the take come is can't in to happen -- And for different a and Whatever. clients time. It's market?

is really And looking year-long so conclusions. at you quarter over to period of quarter, like From business way a can't other that something. or we're any the kind draw

money one do operating I like the saving thing clients Josh, is any that in think, I'd other add environment.

So really not-choppy again, even I think economic it's environment. obviously a strong proposition, a in value

Patnaik the [Operator Manav line Instructions] Barclays. From with of

Craig, differently. we Or you question going as at expense other to tick like being has obviously, I a next XQ. full up are expense just there's any seasonal normal? we year? consider that far, the into need to base there go little the if year more ask thus the takes But mean, puts into look and

I into it do get -- roughly to think I little bit we next it's likely are think as would a pivot to characterize year, we I that back faster normal. as territory model But things on other the lever in. headcount timing we operating base conferences and to like growth, and that's of that and than biggest probably expense need that that. so

earlier, as grew XXXX. mentioned lot, particularly in It's -- Gene a we just

operationalizing, and And so this digesting a sort maturing of that we have of year, been lot growth.

as net There And the XXXX been was huge there had into but is numbers. as amount of historically. a some, baked we've growth so has there not much -- not headcount

next level I think we year. get back of to a more that normal

the like our -- normal normal is So and increase modeled have course. that. be generally in, wage other that inflation things stuff that would merit and to But

Got it.

just is were positive the and talk sales of GTS much Okay. around momentum And that? you sales how about color Plus, any just single guess. Like environment. numbers my was quarter. versus I question that gave was quarter the to on second there, mid- new fourth I GBS just high comps new think then the with digits. -- Any Obviously, big

the we're We again, of So QX, in QX, same QX. see the I in environment expecting unchanged. think environment and environment, of terms the selling selling same it's sort

In the terms I'll let comp, Craig... of

Yes, numbers. the for headcount I instance mean I think

was And XX% X Again, constantly, that's up Headcount we a up are around the recalibrating the GBS you're of for different me say I so Obviously, it, those yes, GTS months probably the we've numbers variety there's another as of year. scenarios hearing year. end mean, tired in year-over-year. of X.X%. about, talked only

right the next we force. of into and from But a huge that yes, force sales end then with perspective market go grow sort to to size year we'll the opportunity. sales we after moving headcount so that expect to CV forward aligned continue that And roll perspective year

to but well. the I Craig. as color number, business referring was I appreciate Apologies, the new headcount

Yes.

So -- great. okay,

about Sorry that.

the little on a combination yes, force think the coming a up new easier So I comps sales of the tenure curve. it's maturation of business and the bit side,

from Comes Instructions] with [Operator Goldman George the Tong line of Sachs.

seeing back Going were single with mentioned performance elaborate CV the on vendor similar stabilization your little was XXXX revenues or tech improvement Research a terms tech you assume you in vendors? in what to XQ And low digits. guide tech growth to of performance? vendor trends, Can updated you're if bit more and non-subscription that in

the So as I'd for any say QX, seen we've change in tech see in just didn't vendor same environment, the we QX.

In the Craig... terms let of guidance, I'll

George. it's I I think mean, Yes. stabilization,

say QX trends seen year, more that, yet So in and the the shifted there. we that we next believe, years, what the get growth saw has I'd haven't that do signs market yet. But normal over guidance. embedded to again, X.X what's medium we back in or We will term

again, almost just we in subscription mean, that reality, value perspective. numbers on And revenue de sell from QX revenue has a year or a remember the really also I minimis growth contract full the impact Research

in baked so the stabilization assumed we crazy on And not line, any And have there. non-sub similarly, rebound.

guidance. we're stabilization, into what of the is that's Sort what and modeled seeing we've

it. question then margin to differently. the little helpful. bit That's ask perhaps a And Got

And margins You view raised provide year year an are? factors improved EBITDA that for led latest this on EBITDA improved your margins once margins if you structural lead full margins? what your can structural quarter. full guidance views to for also on again your the Can EBITDA outlook to

Sure. to. Happy

not quarters discussions. prior from So really prior changed I and is the view think

view acquisition. or say were our today I'd profile is margin they margins before the on our than and base the higher in the is XXs. the that foundational pandemic Obviously, what before that is significantly So are low CEB

We'll In give that, will February in our there as in as margins we guidance believe business addition always, we the do. over time. operating leverage to go always and is higher that

expense we think the point year's and for As year. next starting some overall is on P&L this a of reasonable to about OpEx the talked operating questions, about the other margins

impact OpEx put level margins, of in and most will the into mind beyond where talked a the value level when relationship, there this terms decelerating both other we But that about, next is also accelerate investment things CV in CV keep from that as and but are the perspective. year the we've is business just, notably, just Because obviously, as we've the end lag year of the contract revenue there to a begins when CV well.

revenue take for lag X or to up of the a sub the -- does for kind catch quarter CV. it So

that February details think again, XXXX of ]. well. of We'll those provide you as in [ come guidance out for our all so be just we as initial when And mindful with XXXX about

[Operator Capital Jeffrey with Instructions] the BMO Markets. From Silber line of

about wanted been? a And remember wondering, pushback I'm time is If of may you've they're the to what be pricing. question. start year seen ask how the of I not If on I'm margin where has any talk increases. you client this I price correctly, Actually, to that going in buying. just back terms instituting pushing

earlier, which started, we seen prices. we clients And I rolls mentioned as environment, is, normal time as increase seen get it I'd I'll haven't It obviously, a we Jeff, haven't the pushback. say any it's is through, renew. --

-- into it Jeff, mean, for us the on went ago increase X I major Yes. days price X. place so November goes

obviously cycle. very, very early we're So that in very,

is you if or about year us. again, But of average it, magnitude, the a think $XXX,XXX client spending, $XXX,XXX order with

money very value we're lot is we're between difference that the in on $XXX,XXX of in X% or making grand $XXX,XXX. again, a not And that delivering of focused things. of sure and X% the scheme well excess So

course the business price of increase, generally a to again, as normal So for sell of we're sort able us.

it. helpful. That's appreciate Okay. I

have been might Let numbers we're economic area weaker. to I of the the when tend in me environment typically, strong. business uncertainty, shift an But over be of bit you Do that Conferences. little seeing mangling? as some know see nobody a next a the in and of go might from softness nobody pandemic bounce-back into year, the and fact was you just kind maybe And we we're was that traveling think that business? to

laying I that at thing Jeff, are should functional challenges those address a business clients, enterprise have how is job leaders, and the them. our driving they out we've lot challenges So key a and what think the good done of our

that our issues we're with the here going market to to attendees, potential are we how we conferences in on, help here's . you As conference. the you're focused facing,

think those thing issues a the for of our the we a biggest get on that so solutions lot are is And -- experts that lot issues, attendees on that's single have our -- we're care people they a I have issues lot value driving to our it. and the of Conferences performance of

kind the I think that's of biggest thing.

that, In back. we've obviously, conferences been addition to adding

past to couldn't so people And in we're go. conference some getting, the now go I can think, that

having about comparison And do sort in value, I of really more that to But of so all. most think, you points. of terms see it's the

I And turn Thank Hall comments. the you. this over to closing for call the concludes like to would Eugene Q&A session. his

do we adapt exceptionally successful or between. things struggling to world, continuously the here the today's to you We're thriving, performance be anywhere call. in environment. and strong another function, teams their know agile Well, to to leaders enterprise across any drove right QX. in value like and unparalleled changing take they're and what major to away I'd We from whether Gartner in every deliver

the positioned into Looking record ahead, far we're to sustained future. our continue of success well

proposition sustained opportunity Our to us client value and long-term growth. addressable will drive double-digit allow market

will well net of income. We excess time. modestly We expand generate significant expect over in margins flow free cash

to returns return invest reduces significant levels future our we for over shareholders. shares as time. outstanding the we'll and excess Even growth, This of increases capital

today, us quarter. we joining updating for you again look to and forward next Thanks

And thank for and now you all participating, you may disconnect.