Gartner (IT) 30 Apr 242024 Q1 Earnings call transcript

Good morning, everyone. Welcome to Gartner's First Quarter 2024 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 first 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

FX discuss references contract unless EBITDA, for growth values adjustments described and all the release earnings we EBITDA in neutral, or associated On rates the fully based our are on counts, otherwise, in rates, are to references and to growth call, as stated foreign adjusted diluted with otherwise. share supplement, for stated rates while XXXX Gene's unless share exchange while average unless are All stated otherwise. comments counts weighted

the all we Reconciliations non-GAAP gartner.com in use numbers the available section for are website. of Investor Relations

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

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

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

and for profitability delivered complex increased basis. XXXX we results for for We quarter cash remains environment. Good the guidance grew expectations. Gartner morning, single free FX a thanks strong Natural digits. on joining ahead flow, neutral In in our value resilient today. us high QX, contract and were an and of

Supply continue governments Inflation in continue challenging struggling to strained. interest Federal uncertainty. local to shifting rates care. such broad companies be chains experience to to geopolitical are world The economic and for sectors, health and Higher and banks. outlook as affect many priorities. remains uncertain continues

know enterprise leaders where and We continues are leverage Cybersecurity intelligence to affecting And teams provide need source know which insights, understand on for is to a their universal and Gartner to real the We smart tools help. global be they continue and drive beginning shifts mission-critical see they their and is work, how help, performance stronger priorities. the big achieve estate organizations. Enterprise threat. to their artificial people leaders best advice in to the sector. in decisions just and that

the work Our enterprises world. with we success they often leaders insights Gartner the for leaders make guides difference the and failure the between shape serve. who and the

segment. Research continues to be profitable most our and largest

enterprises major in Our geography. across Research every business all functions serves industry and every

our vast. unparalleled whether is they're to opportunity or in anywhere thriving, deliver We clients, value struggling market Our between.

our clients QX, the our enterprise experienced a which In deliver, of incredible functional grew conditions, macroeconomic we Because XX%. tougher contract to value value more selling business environment. in led leader challenging

sizable as shifts affected continue Our be tech layoffs in as vendor and capital clients reductions by investments. venture to well

In tech for contracts up renewal addition, in we expected. higher than had as vendor normal levels QX, of

a topic business across We and was high through guided of serve. optimization, risks, and topics, with cybersecurity, a leader chain wide function a managing data analytics, cost including more. Artificial interest optimization emerging of challenging we manager every range supply development, clients intelligence level

contract leaders and serves senior or CEOs, function value GTS Sales, and IT. leaders. contract through Technology value leaders leaders with channels. their and teams including X%. serves high also teams digits. GTS Marketing Officers sales Gartner enterprise Chief grew executives distinct at GTS, Global serves within technology grew their product single at GTS vendors,

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

start audience. new We strong. Conferences Conferences. of to a for The had a including insights valuable year, to two the outlook deliver Gartner the engaged great remains Conferences highly launch

their execute is X%. Labor-based Consulting work. a of compare. XX%. in grew Research Gartner the revenue Consulting is strong against initiatives Consulting important contract revenue performance drove clients extension through up IT to Research. tough Consulting business. complement deeper project-based our most was helps an optimization strategic We Gartner a

the our I sales from our People of events business. with I performers. heart time of just at spent top are returned where our some recognition

a teams about build growth are beyond. our ability enthusiastic sales for innovate. XXXX. our They Gartner associates Gartner's and sales to in and strategy, careers lifelong Our prospects love in culture where is place

revenue, free increased Looking a ahead, cash the on guidance dollar we our and flow stronger FX-neutral updated for EBITDA, basis. and EPS

is growth enterprise delivered In the with positioned Gartner accelerate ahead contract value leaders. year. for we results Gartner well contract financial through as expectations function to of value growth closing, and XX% move

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

We our share repurchase will program. future our investing and objective our for by insight prudently actionable value through to shareholders providing clients, growth capital continue to to create our returning for shareholders

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

continue positions into to success sustained this our and of us are of future. All more the record

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

good you, Thank and morning. Gene,

this results with financial positioned well flow. first particular the in First to strength were or remain profitability than for global the accelerate planned We from quarter cash second quarter CV growth year. better and free of rate

for an cash stronger basis dollar. on increasing free the are operating revenue, our We and updating flow profit guidance and U.S.

back for capacity and eager share opportunistically. stock a remain of buy to lot have We repurchases

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

QX was flow revenue X% reported our February. made EBITDA XX%, Subscription changes similar revenue of last year, was on we In revenue the as line X% which $X.XX, was grew modestly Adjusted million, FX-neutral. $XXX grew of quarter EPS with contribution QX X% first in quarter cash an year-over-year $XXX from about last ahead free XXXX margin and Non-subscription year. and up FX-neutral during first million. Research XXXX. guidance up addition, from quarter, following discussed to fourth and in basis. in the was total we was

last with year. consistent XX%, was margin contribution Research quarter First

of down which about contracts the the NCVI up for results and higher-than-normal level year February. The from discussed billion CV, million in quarter X% we or XXXX. $XX was the end value, versus quarter, fourth renewal, Contract of vendor at the prior tech the up reflect $X.X first

addition, is smallest seasonally new business. In for QX quarter our

CV base GTS vendor is XX%. regions. Across tech at combined from double-digit led the rates GBS broad-based public by enterprise sectors, manufacturing outside growth the the practices, was high client of growth and and energy, sectors of and CV neutral. our grew or industry FX single-digit across sectors. geographic function leaders across sizes CV practices, grew company industry our majority

about small, the or double-digit grew high was CV which flat across largest has single-digit all enterprise vendor mix. sizes and except rates tech

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

increased Sales than quarter. quarter, value single vendor end up Global contract versus of the year. enterprise down at $X.X the Technology the was CV billion leader slightly Tech million was GTS CV fourth the GTS X% year-over-year. lower CV $XX digits. high first was prior

the Wallet XXX% XXX% for quarter, compares retention was the leader was with which Enterprise historical in GTS prior levels. year. for retention to consistent wallet

vendors key year-over-year. the tech change the expected, of driver As were

GTS X% business last quota-bearing as year-over-year. year, new lower than X% down new was business even increased was GTS enterprise headcount year-over-year. leader

the the is year. in portion mid-single-digit expect We continue The business. growth enterprise of to by near-term the leader focus end the hiring of QBH

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

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

by sales, double-digit Growth rates other chain. supply legal led which grew grew practices GBS high our of single-digit mid-single digits. was or than and finance, at All

to GBS from compared GBS quarter, GBS was in retention X% fourth was CV quota-bearing last was up business the also quarter, the XXX% X% XXX% year. increased year-over-year. the compares $XX GBS headcount million new while for up to for which prior year.

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

consistent margin for successful the launches our and Summit growth. CFO period. seasonally conferences of investments Brazil. with ahead future and Contribution in modestly had in quarter Executive in two revenue & expectations the typical first held million, during and the $XX quarter: for Conferences Analytics a We Finance Conference We quarter destination was Australia; in reflecting in small our our the XX%, seasonality Data quarter. XX was

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

as business contract prior We increase tough Our is optimization biggest delivered of compare. year X% services basis. quarter The driver and an revenue increased highly the on $XX of compensation reported against quarter in costs. million higher first of was variable. in the cost a X% year-over-year FX-neutral Consolidated the

compensation the result costs. basis. quarter first quarter as reported of year-over-year growth on and headcount higher X% increased the increased SG&A an a as in SG&A in FX-neutral and

EBITDA last quarter $XXX for year. the up first million, from was modestly

initial revenue to quarter our strength effective compared Depreciation and prudent upside, expense to was modest quarter management First our million in a to of guidance. XX% $XX up about compared XXXX. the reflected guidance approach

exclusive financing interest quarter rate balances. higher versus third fully favorable cash million due income floating the of we interest first XXXX debt was quarter is $X Net hedged through our by have deferred million. This in the the costs expense, quarter, $XX The to is of XXXX. on modest

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

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

year. the $XX cash $XXX quarter year-over-year. Operating to for quarter was compared up modestly last up flow million, was the XX% million, for CapEx

million. XX% flow for of from XXX%. a was Free GAAP basis EBITDA. rolling Free revenue flow was conversion flow X-quarter on of a cash Free the cash revenue $XXX income was net as of quarter and percent cash XX%

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

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

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

new unsecured we unsecured over The amount the X-year facility. remains closed $X hedged. borrowings were revolving existing revolver. credit from billion new fully Outstanding During a the drawn agreement the credit rolled into quarter, on

Our unsecured. Fitch, upgraded credit ratings After in S&P our Moody's. structure now investment capital grade now and from is Moody's XXX% we have three April,

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

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

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

We during repurchased $XXX million first the our of stock quarter.

repurchases. going We we million expect to authorized $XXX had At needed end forward. about continue repurchase the for the the as authorization refresh Board of will March,

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

on guidance since which reflect QX year full has we incorporated in dollar our reported The an FX-neutral gotten raising stronger guidance. also basis into are the We to performance. February, is

innovate compelling recognize For and and face challenges, Executives very clients we the and for can Gartner to help, of prospects. value environment. proposition and Research, uncertainty regardless a continue they and their provide economic teams how

our the reaccelerating this year. QX the an based reflects the on FX-neutral is CV also guidance guidance revenue, our balance Research results The For on year, and outlook unchanged. rate of for basis growth

retention quarter basis. New strength about an or in reacceleration improvements guidance. FX-neutral likely a lag to growth would lead our business revenue subscription on to CV And upside growth will Research X and by

improvement the outlook past we the discussed reflect We quarter. the shift pricing to few higher-quality traffic The over upside An pricing sources continues saw last nonsubscription would represent months. to guidance. to stabilizing in revenue

for seasonally is small. Conferences first The quarter

to We year. full strong the expect performance for continue

similar in with by seasonality followed quarter, largest expect XXXX QX saw we We QX. to what the

digital years our like part For the cost segment. a prudent labor-based services on optimization in Consulting, had and see for areas is variable. we optimization. We've this transformation very outlook continue strong has highly Contract to several demand incorporated of and

notable thinking For of we even expenses future P&L. conferences view for with of by have balanced investing We a the are we calendar driven sequentially and seasonality revenue about expenses, flowing increases. recommend consolidated as merit the growth, the timing taken into

are of our other X/X U.S. denominated dollar. operating about revenue As than the and a reminder, in expenses currencies

point we dollar, to for growth full strengthening a expect now EBITDA the for year. growth for and by about With X.X full be higher than FX-neutral the point reported revenue around

Our XXXX is follows. guidance updated as

billion, of FX-neutral at Research X%. revenue least about of is $X.XXX which expect growth We

with expectations. First line stronger for quarter in our the were results We dollar. about updated

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

FX-neutral We which which expect is of X% for at growth of least is result is revenue billion, $X.X neutral. of FX about X%. Consulting $XXX at least growth of an The consolidated million, outlook revenue

EBITDA a at the year dollar. full least million of We our prior $X.XXX stronger $XX of now from before expect billion, up effect guidance

expect seasonality year. to EPS typical We operating the least the of rest $XX.XX. of adjusted expect now at continue through expense We XXXX

of billion, a For cash from of higher XXXX, XXX%. flow now from cash The income we guidance. million $X.XX least expect prior at conversion free up flow our GAAP free $XX reflects net

is shares average EBITDA based the million. repurchases of least on guidance outstanding, XX adjusted of Our fully which at finally, made through end for we expect $XXX the And quarter, March. weighted reflects million diluted the second

Our the financial tech year. this reaccelerate high performance vendor plan, or the the we our and quarter, uncertainty quarter a from global year of single growth in to continuing started digits expect despite dynamic of grew and market. second CV ahead CV first macro

the stronger dollar performance EBITDA expectations, and the exceeded operating we incorporated Revenue increased and outlook. U.S. into our guidance our

in the through strong we repurchased in stock $XXX eager remain and We March the and capital about year. excess to our was flow guidance cash full quarter, increased year-to-date return to for shareholders. the million Free

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

over term, about medium out expand With expansion, and Looking growing with gross costs growth our line are will leverage, we modestly revenue in the XX% CV unchanged. Research growth, double-digit and XX% G&A margin CV With deliver over growth. expectations will to model sales time. margins EBITDA we financial

because cash and clients and grow as paying of over value-enhancing our will least time share which continue fast on EBITDA count capital of free to we'll strategic repurchases, upfront. modest lower deploy And tuck-in can needs flow CapEx We share the the us M&A. as on at benefits our our

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

[Operator from Instructions] from And Jeff come Baird. our first question will Meuler

Hello? Can you hear me?

Yes, now. sir, we can you hear

Yes.

could you sold quarter more GTS hoping Was in this year-over-year weaker a and being the I'm obviously new give business on last. that. about on perspective than Sorry bit keying trends,

was you think I to of pointing that in confidence were that the factors reacceleration one XXXX. And CV the for during

in perspective? it the at soften it your later consistent all any So Did plan? just with quarter? Was

Craig. for it's you Thank Jeff, question. the

we're On portion you what to need GTS tech seeing the business. new seeing side, on business what function enterprise from between the and leader perspective a of again, differentiate the we're really vendor

side. digits enterprise new for function And was bit up in year-over-year quarter down saw on what vendor and GTS the was tech we business was a single little leaders it year-over-year low the

hit the two us first so those really dynamics are what And in quarter.

talk work for were vendor February larger-than-normal and through I would different side, say a X- renewal few on touched few just amount on of quite been we in a was highlighted vendor Those this the And and the the a ago. tech that than tech tech is side. up today obviously, or the coming we bit we'll deals, that it I'm questions, hadn't they market as very years. X-year sure about a in we contracts had years typically so

still is medium our larger-sized is those particularly some us, And normal is we're there with -- but what that clients, business than means seeing, there's generally, on staying new are recalibration. some renewals. less with they what to tech And

medium we still, a tech over long vendor XX% expect Out the end grower, headlines well read and in can market. often we term, you be but and we're guys tech our a to XX% the business again, term vendor as challenging pretty we're as can, still to

want Gene, to you I if don't add. know

to tech sales has add only strong. is vendors been to our new that The thing logos in

they it's logos digital is been buy. that's reflected so many much a It's when And -- we new how strong. what actually of how that renewal, Craig not have the seats

you vendor metrics, quarter. retention, this recognize Okay. renewals want reported obviously, just that the have and called tech outsized your previously had on for out to And we then just publicly

it coming I out quarter-to-quarter for I is a just comes at how get kind you of you renewal is this if those figure I'm the stable that guess, isolate up stable to, business needed the rates what's if the So just renewals? renewal. is are -- trying just that I up tail for the renewal question, -- just on in point through of guess, to period, largely the now

Yes.

question. Jeff, it's think, a great I

retention how And we business if much look sold. we combination in stability We the rates. a generally, have NCVI what quarter, new of you any at our seen did it's given and in some renew

QX tech always a historically, with coupled quarter, And a is of on reason business NCVI you that that small had for disproportionate in vendor highlighted tough we will, new if contracts with up it's very math, makes coming way, quarter. because given seasonally being amount a been that the February we the renewal, for in

GBS. across do and retention pipeline We strong We a in are seeing stabilize. GTS board rates the both see

contract reaccelerate certainly that indicated And our to And be in retention so prepared as rates year, we stable firmly believe that we growth going in ingredient an value again, reacceleration. is this remarks. will

Stanley. our come Morgan from question Kaplan Toni from And will next

I a the was as recalibration the large renewal. contracts the the Or first clients of comment you was around could of more hoping come on just reducing you the that comment part last Are vendor? tech question, seats? up seeing enterprise and for seats

if you tech vendor this tech on outlook think basically, go here from of is percent sort And trends the how point. an could to you of at and business vendor related what give

it. gave missed probably You just I it.

are of couple the market, a funding X small There's companies of that for two companies things years renewal, Gene. are for many having the end getting funding it's those got is now on. X or the of coming in ago going that difficulty up One Toni, reasons.

interest are rates higher. that is the One

where capitalist to the AI AI. they there's start-ups shift years funding is X to been compared want fund second were ago. software to The that venture start-ups big a surprised Not

getting And new to aren't through why as that seeing selling well we're AI for the don't start-ups. well. as logos up those are so kind that's doing the funding of ones renewal, And come do

have of have going, off the where front end you we different the tens people. thousand where And market, they're of large laying then

And so it been it's in environment the a they're -- than has past. tougher selling

terms our the get is of just number QX mentioned, better most in of of year. those look quarter expect the we at SKU renewals terms and Craig through in to As up, so coming -- the of worst renewals largest the

And little pretty then, been quarters. for total the which CV consistent several just last a of where with Toni, vendor XX% CV, tech over context, less we've is than is the

Yes.

then And Great. on Okay. AI. to wanted ask

topic it in. both of see interested across You've seats additional that GTS past hasn't it's just you are guess, demand, demand and that the in GBS? another why for clients generated said shouldn't and that increased extra sort I

It that probably need seems within like the learn it's a people organization about. topic would more more to

and so And you've then able maybe purposes? efficiency for ways been selling utilize -- or any to AI

interest So functional AI our a Toni, there's in areas. across level each of broad of

So legal, of is whether sales, we interest on AI areas. large it's IT, have has finance, high the in focused in very function team those research applications marketing, and single a AI, each a that making functional we every understand in sure

have research clients clients And so base a we using and -- the at AI those Most large clients. it. are of of are existing installed looking our existing

also cloud the that's topic to -- When If want years us contrast wasn't even they talk it, about like reason a sale. cloud good to computing, and they that I though, we a was. computing topic, was about to sell very AI hot hot to new ago, it client, is close X -- it a

X the as cloud very so high topic has or it's of X just years shifted, level was And computing ago. interest, and a

increased that It like demand. of -- all have of that past. not taken a of were kind demand, didn't the has we the it's so place kind sudden things And in just

companies kinds gather trade-offs now And as the figure I'd trying -- it's that momentum is. could what things other and as of what cost are they whether again, the And these are, kind to thing time sort out. just of out I over we think this is say the relevant,

going it's it's about that us helping more a net But good the will to substituted you time, no for margin matter things look is It's It's we step we're not no it like how think other if like plus. had at be change. a and lead over it. this you with. Again, business, to

one that it. to And we we sophisticated data business. usage, with in applications using our machine internal a and regard learning we having the number analytics, networks have understanding have uses neural big for That's are with mainly internal of algorithms of terms very of

of Our next Heather Balsky comes Bank from question America. from

what CV quarter love I'd it on call touch the sounds after you you're environment We're to tech inflection? see gives still like that after got the to I'll selling industry. guess, guidance next is we the seeing this curious seeing in start right accelerate, now should that quarter. I layoffs you your, that either the tougher. or think It still this confidence I'm still year just

a that help kind quarter business? in just XQ also you in kind anything lighter first But the And there the conviction is was view, generally a positive realizing of have just sign the get quarter kind of was us -- in your in that your of inflection.

start. me let Heather,

enterprise still QX, our Decisions So in We CV function -- pushed. leaders was a so our environment. kind got it environment. economic of tougher that grew little grew XX%, XX%

talked we had renewals or lot later The we year. about years a coming is we finishes had the a X -- particularly, tech and up the that's X in ago thing more sector, from second

is And the at sales if robust. go-forward sales pipeline, pipeline thing go-forward third we our very our look is

of that the that things outlook we are that And so kinds accurate. give confidence us is the those very gave

our -- continues think that, just to come XX-year and sales Heather, to to I force up the curve. Well, add

confidence they're reacceleration. the tenured. every us bit experienced around so that little bit a And And more more gives little day, and a

we in and And we we things. I we environment, reacceleration actually applying even perform learned better We've that tougher a a positive couple working well. impact believe And company are And we help the a as dislocations. learning lot that And will have environment. those a and that last quarters, fuel lot even always think ways prior that in for from also, agile. very are are learned tougher were a from of to

another got. question we And

that. renewals quarter, heavy you've warned the the You us talked about in about and

guess, sort the the the for of about of does look the, the of in vendor I terms think space, you tech peak renewals coming from up? the rest year coming As how period renewals

mean, it's course up add to Yes. of the I -- XXX% obviously, so year. got to it's over the

little in a balance And more were quarter of renewals, it's and over the reason that those it's overweighted tech even confidence. another we so first gives the on vendor year. And much us the again,

the the look new see work the business confidence way will the what and way QX, of the us off at our ramps QX total you the contract if of renewals over in gives reacceleration that's either course So the that or you coming year, value growth rate.

question from And Andrew come will our next from Nicholas William Blair.

wanted ask Pretty significant operating upside expenses. I on outlook QX. to EBITDA your first on to adjusted

Just were going wondering than expenses of efficiency drivers bit in through where of the and what particular getting areas year? Any to relative where major expectations the expected more means you a you're that operating your rest maybe terms for in had this spend.

but helped too. OpEx favorability a any bit the rate where would It little actually expenses. on obviously the pretty on say say FX there, significant we broad I'd was I savings. Andrew, wasn't It revenue, based. one helps area harvested particular hurts

so And we have savings we in in in the that the areas QX. saw dialed

is of Some that timing.

up to going we're that, of Some on. catch

savings. of some real that And is

so we QX an OpEx And guidance the what new from learned from perspective. reflects

don't exchange. the But foreign overlook

quite about, operating talked dollar X/X dollar. of has And the a denominated expenses U.S. we bit. are about the currencies in of strengthened outside As our

can actually movements pretty those the but all guide. so large and in the OpEx reported again reflected revenue significantly, impact new pretty now And

I then to ask And helpful. about wanted it. Conferences. Got That's

about the plans you talk out Can said of quarter. of sit I where kind front? build Conference new Conferences first you just added you you your think in the two on in terms

some seat. I for single know kind to region you single a had have, and the point of every in conference GBS at hoped in GTS future, every

us So in momentum could update building on you kind and if out just that progress the plan. that of

Yes.

small, And so is serve role that. to we which the operate. is or we while that have of for every constituency two major Strategy that destination serve, indicative on region quarter, the every we plan, geography in major I still right? first in think conference launches the that are And for us

we've in large so in because Analytics our to & analytics. business that of we Brazil, back again, CFO again, demand And our Data Australia Brazil, And quarter, a for finance, the data expanded in got out Summit a conferences first building and portfolio. brought we've and there's sort

XXXX. to to we're year, have the build next XX business. continue last build This out the year the support years Research sort similar going of conferences as XXXX, portfolio would in a I several us XX to Conferences from to expect we over

to demand too, The for we're which we're the larger actually these doing thing we're is Andrew, incremental some other venues, we substantial. so is that accommodate moving seeing, of existing that conferences, to can

Chan next question our will from from Josh UBS. come And

be how elevated Is QX NCVI And renewal comparison, there much compared this the I we absent guess, a theoretically a I think way QX, to think? should elevated in easy the estimate QX in your renewals should impacted about pretty last CV in relatedly, growth? impact as how to year, which

combination, I challenges is around smallest normal tech renewal the we QX our is contracts talked continued again, CV of against growth. think coming the about, -- new up more the really and so NCVI really and story quarter as vendor Josh, for Thanks. QX than the the business

the through or the about quarter the I that this compared in NCVI to to your simple think year. about whether CV is what to think not last comparing year, you on growth point accelerates NCVI is expectation an was way moving As what going year the just be

the in second across GTS year, we worth last and did speaking, roughly around of quarter, so NCVI million And GBS. $XX

Again, of you that look in For million at the for than dollar in third reacceleration. NCVI on that more quarter, growth year-over-year. of I more QX than the the if we of magnitude the reaccelerate we around we basis where modestly in the a order do do last of have QX, to contract number continue to modestly to year, have same value think XXXX $XXX did third to quarter QX

us about of to going clearly, business, expectations, happen, off coming talked gives again, or with velocity, at our looking we or see our -- at a with renewal the so, coming when sort that at what renewal new reacceleration pipeline is mix looking QX mix, QX looking that's confidence conversion the either reacceleration the normal as coupled contracts rates, And the et number. we've for of pipeline, we think will coupled cetera, the up

you your on I tenure, yet the into How fully on about the is cooperate? the of follow-up improving harder sales the do guess, of environment so retaining, not environment tenure robust? think when sales how on Great. work force advantage Do fully force time think take about when a my do you you that have the to you that? idea can does

Yes, it's a great question.

seen productivity those "normal" talk we've So in and more generally average obviously, when operating we are measured historically, what about environment.

so it's of the some we least muted. an environment measures measures a the when at or can more see from productivity And output operating productivity clearly, challenging final more little perspective,

also measure inputs sales. go into that the We

so conferences service many through pipeline? quickly things are How those advancing opportunities we things getting How being are or often many prospects and how clients? salespeople are the people with are and How And that? added? the to webinars interacting their like

should measures the are but can or are curve. sort economy experience look just that other there perhaps that us at benefits measure, then there And the So at the our more able even the when we give NCVI other we measure, measures coming confidence be are that. does to more tenure which and that improve, is see of from the and up stabilize are getting pure beyond that sellers ultimate

from Patnaik next question comes Our Barclays. from Manav

be stabilized, to upside it prepared around guidance if your it comment improves. could a that remarks, in you made Craig, pricing

prices give might is what just little bit that could I just detail pricing, implying hoping the more again? be I today guess, a So were raising growth on you year-over-year versus guys here you And historical. was you

the of sake, our about nonsubscription part Manav, the business. was comment specifically just stabilization really for clarity's Research pricing

so our on focusing call, about that of last you talked coming improvements in February would traffic. we we pricing. to as medium by over lot recall, a doing year, the long out And on expect higher-quality term, And see to

continue that higher-quality And which, we the into stabilization focus reflect as is there, And so convert that in better what positive. view quarter to again, saw upside we to to existing pricing traffic, if would we pricing, the does some guidance. as first it on

been there's been business no our issue there. in has pricing the so Manav, stable, And subscription completely

it. just Got Okay. quick then one And one.

I challenges was in your your is guessing sales about. again can think expecting, you that just the remind acceleration tech But I'm lot hiring plans a down year-over-year. of just quota-bearing about X% of you're the the talked count force? for of CV you context us vendor enterprise

Yes. provide color. to Sure, Manav. that Happy

on. but space. So enterprise the your not just again, is actually spot are remarks. It's offsetting count, well in new small on tech prepared point, this doing small space, we're pretty to holding hypothesis Gene well, And in logos pretty the and the more earlier -- It's churn the up we our more losses. adding tech in and there it's and to Gene's alluded

not again, they and ago, these as may obviously contract challenges where out, funding And years the of had that they X clients had Gene today. the a laid lot when sign

prime And story so that's really the count. on enterprise the

the entering On accelerate we army target headcount the continue by growth, of of had year, growth of And size that mid- the us to the us to end to to year. up growth curve this and QBH up continue XXXX. QBH we the value mid- people -- rolling set again, combination coming single-digit in high should will contract growth high set into the up single-digit to or tenure

from from next Jefferies. our comes question Thind Surinder And

on up for is about tech idea the reaccelerate? Just the about CV ends we here. think the of up? basis Or questions of Or stabilizing CV is think absolute primary should an we're where as year to tech growth dollar of think following determinant how close trajectory about for over course the point? you So tech On vendor vendor CV at should that this that? some the how the we vendor, for that

that. I reacceleration tech mean, CV. I think total be clearly, to fuel vendor across about will the piece a of a the for that needs portfolio it's Surinder, of It's CV. combination XX%

we portion of our But opportunity acceleration well. see leader across also the business as enterprise for function

As grow a so at that strong Gene continues environment. combined, around growth pretty to highlighted, in XX% challenging

but we say all reacceleration of improvement growth. the think lift to see three the businesses, portions the the of lead -- I tide CV that essentially, But I believe three well, should base all shouldn't will

CV to a inflect at this vendor it. point? tech Got in clarification, any But your as for point positive is guidance assume at

around guide don't generally contract we Surinder, value.

reaccelerate. certainly, either yes, we And All there. CV will would or to say that point, I from begin CV the QX tech is answer I to can't total QX And expect vendor specifically. so, contribute

the about the how the It to just And normalize? last pricing it Or that something a see or in few nonsubscription stabilization. characterization? quickly opposite the half potential like Is a follow-up or pricing for fair think fairly Got on may year? could could that quick when start also reaccelerate sounds you it. we Is potentially stabilized that the in And quickly the how then should see improvement? of could months. then is we happen back

Yes. question. great Surinder,

what actual of So based on of that that proportion the the clients. is turn the pricing the -- into leads the we basically is calling leads, we're which send quality

And the analyzing to deals. is increases proportion close it, so lead, we've But that they determined the prices. have you the what actually -- actually vendor increasing and happens that send

And the up. time a so goes when you when pricing lead between send there's lag a better and

we quality as increase that in pricing the then that realize when that business go of leads. because to so happens got talked to the And is they dynamic the certainly companies just and have reflect The -- Exactly them, close that predict their up will about. I pricing. leads, we believe hard get actually we

will question next George from come Tong Our Goldman Sachs. from

seen tech you Or trends Are Have inflection? performed a early of quarter seeing are bottom? of the how find in stabilization? any month discuss you Can trying positive signs the still through to vendor the you April? moving trends

the our anything last there's you tends of month quarter. George, towards call mean, to to very think I I heavily as the weighted business, out don't really be month-to-month. know,

inferences Jan to et Feb or to from it's to And cetera. so hard conclusions draw March,

tech will total say or of Surinder, And all guess, expect I with CV of discussed piece I'd a either that vendor that we again, reaccelerate we QX just off coming QX. as reacceleration. be is will

with drives stable to expenses this to upside, at and Typically, the margin revenue margins, raised the your point. what is year are outlook upside XX.X%. Okay. you then Got XX% for margin from EBITDA it. respect And

So what's what driving be? should normalized your improved margin outlook? And what are your on latest margin EBITDA thoughts

question. Yes. George, great

on couple I things. say So guess, your assessment. spot I of a would on,

than XXXX. one margins higher is or our are clearly, So they in structurally XXXX that, were today

know, that on over course or lot the a basis quarter-to-quarter there can a margins factors of the of you are As year. influence

aside right out stands we our modestly modest coming upside little QX, of or then now outperformed expectations putting foreign exchange operating with our it an As bit, for plan well. perspective of had as a from sort OpEx and on revenue

the We margin -- EBITDA guidance a what year a have XX.X% of and the XXXX. see for flowed you for is that that year, the through implies balance

XXXX In sort XXXX. about of future terms into think a how years, XXXX. to only a were of way the XXXX guidance to that on again, -- expenses long want we're growing think we're sustained that's consistent single digits. long-term how line we've got our the the drive to obviously high And to with medium-term into this baked of about with is X or We'll give QBH growth February plan, top over we term growth. run quarter But in in double-digit it our framework framework

sure on are between said, and appropriately as and future spending today, as growth we're puts not delivering revenue is margin expectations margins we're growth. growth. disciplined the drive the decelerating that balance really our expenses. And bit of where how finding we to making great little that manage we're CV, our a investing with as the Obviously, we on pressure around expense That that

thing there to to margins in and leverage year the each expect medium every then business, long over operating is the And term. over last the modestly medium I'd say is the term, expand and to our long we

our take question will from we BMO Capital from Silber last Jeff Markets. And

Ryan on for Jeff. is This

the greater contracts? In you price you in are On the preference can are what to anything of signed there, activity then X, the years worth you the X renewal escalators couple seeing renewals embedded quarters, out? And new if all calling compare of those longer typically over sort past business of terms ago? particular, for

I'd Ryan, stable say and pretty normal. been it's

contract X-year essentially our So standard contract. is a

I X contract are them but X-year. or X of think somewhere of years, are value XX% the actually around our multiyear contracts, bulk

into and when pricing sort of build To your aligns with sign those what escalators expectation do we is point, our the contracts we contract. price multiyear

between X% contracts. the and those of anniversary on So think an escalator X% of

we bounded sold of I'd are this environment, we're improve that for focused not and time months -- same that ago. ago clients economics, months is actually very And contracts as multiyear it's frame. continuing It's well just team our say because by on great it's their or XX amount selling our a for great to number. XX XX-month in roughly The challenges

They're bigger than that.

perspective, a business from almost more that both importantly, makes or our importantly, changed. hasn't client and contracts So perspective, signing sense XX-month XX-month from contracts or model really but as

on currently this just talent? Got year? the hiring the more then the cadence, quarters for just are then market is it. what quarterly And meaningful tech how hiring And broadly,

So start let talent with market. tech me the

low. our near So It's very, turnover record is very lows.

it so tenure. helped us And for that's really good because increase

and hiring does incredible a a value the have team an job associate we On side, proposition that proposition. great great value that recruiting communicating

And get of lot so we demand. a

approximately report, every you prior that, single get charts. off applicants benchmark job. Just that is if for in the XXX the And way we

And people. we that looks once very them, And And such we're why this here, attractive great retain very very, employer we is we're us lets employer. low a attractive have so hire being then -- combination of which a turnover.

of this issue associates. And side on retention the our the both and work recruiting we side

time, associate better And so turn, driving over is of that's in up that the which, tenure which better time, keeps getting over drives up. things and one productivity

number the the in so on they sellers we enter the very making the phasing, third quarter go. and they're the XX, can then the Ryan, timing on on of that number ready we they hire people -- can quarter then, to course year, on And in hiring this could of number. We're X that with June sure or over happen dates of of second right July be happen they're amount XXXX focused right the and

a quota-bearing huge And growth people over across to GTS of December so measure that's on most don't have we hire to single-digit the impact really really But the the hires measure. we because year-over-year in December XXXX mid- when high important talk GBS, that's a and XXXX. course about the

have they But and seat beyond. if meaningful impact and we XXXX of with little rolling have on and experience trained, actually bit can a XXXX into in them a XXXX,

we to high digits, really we XXXX. year start mid- of the growth QBH end that single want the we're well positioned about think that's very so where to XXXX, you as as So

And remarks. closing now for conference. that today's for I'll call back over to session the our does question-and-answer any conclude Gene Hall turn

I'd like away XX% and from leaders. you today's value here's ahead with Well, growth to Gartner of take expectations enterprise financial contract function delivered what results call.

We opportunity. have market vast a addressable

proposition. We strong value have a

investing to for in we're ahead, the Looking clients, through net excess future and insights to shareholders actual well our shareholders growth, positioned income prudently cash continue into our our value future. We'll of capital far of record returning create our sustained free by repurchase for success providing program. well to our continue to objective flow generating

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

Thank concludes you conference for This call. your today's participation.

wonderful You may now disconnect. Everyone, have day. a