Gartner (IT) 5 Nov 242024 Q3 Earnings call transcript

Good morning, everyone. Welcome to Gartner's Third Quarter 2024 Earnings Call. I'm David Cohen, SVP of Investor Relations. [Operator Instructions] After comments by Gene Hall, Gartner's Chairman and Chief Executive Officer; and Craig Safian, Gartner's Financial Officer, there will be a question-and-answer session. Please advise that today's conference 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

On EBITDA for the as in adjusted to and release adjustments are our the call, earnings otherwise, with supplement. references stated described unless all EBITDA,

otherwise. rates counts, Our use Investor Relations All the weighted neutral, foreign exchange XXXX the are based contract on FX counts share website. values of and to otherwise. numbers in average section are All references associated for in growth are growth unless diluted we comments rates non-GAAP available all stated unless we discuss fully Reconciliations Gene's rates. are for stated share gartner.com

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

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

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

and important expectations. experience to start Financial EBITDA, research source joining to for the in remain way today. at best disruptions thousands environment. analysts deliver showed digits. how priorities. to topic. right Gartner's were a for in IT to a In an our grew They before. cash continue is We EPS flow. Leaders the ever thought-provoking business The and ratings At Symposium keynote Gartner our morning, a to complex technology. drive got and stronger for unparalleled clients We attend through I CIOs Expo our the value Good third to highest intersection organization's on objective enterprise Florida. our thanks delivers keynote Conference. and ever. Gartner among for critically raised Orlando, powerful in AI more inspired mission-critical of results pace attended the received actionable of resilient IT of guidance on leaders the the implement value places keynote, ahead at single is clients simultaneous conference, their in and and time, money save the insight us A performance insights topics. every analysts these We of a executives. manage XXXX than every recently opening high environments. face confidence. build a smart the Gartner right decisions for Gartner continues free of In wide contract range help quarter our save risk, QX, revenue,

AI procurement, leveraging optimization and profitable example, generative planning, strategic and brand For to workforce segment. cost and multiple cybersecurity, including sales management our enablement. Research most largest continues disciplines, across be

contract value major contract value and Our our Contract vendor distinct and functions and finance, grew and improvement chain, enterprise through sales executives we X%. Business quarter. opportunity Sales, value channels. value the their saw Global with GBS, research within Technology GTS, geography, across serve continued every Within includes was contract and supply Sales, HR, X%. marketing, teams new was leaders tech every with function and and sales GBS XX%. legal, new This teams And leaders industry business business IT. source XX% or vast. is teams Global their X%, beyond serves IT. grew leaders business market research in all We growth our growth was or their leaders business, clients last enterprise more. GTS serves

QX. Gartner research Consulting IT expectations. revenue work. we're off Labor-based to is Research. Gartner an deliver audience. our Consulting grew grew important third start consulting in execute Revenue extraordinarily qualified strategic XX% extension [indiscernible] complement quarter, a project-based our insights their in revenue and the most an met engaged business. Conferences valuable is deeper of and Gartner great an through X%. to to initiatives Consulting Contract optimization

to has been by success Gartner a practices. business. of our innovate improve execution best and continuously road I'll Our driven relentless share examples. few across We

First, we CRM of system our state-of-the-art deployed business. a most across

serve teams visibility have our greater Now better to our clients.

large productivity added into approach by beyond. sales opportunity is innovations phased our and positively and growing new expect sales we accelerated to which XXXX to capture of our second impact One in hiring for We We growing force sales to XXXX, headcount. continue our training, sales untapped way hires. the half also market

a few is valuable Another our growing growth consistently direct part turned our example creates associates and We're internally. corner continues leveraging on [indiscernible] lets refining of career our program of and closing, has built practices improvement experience salespeople. each ahead [indiscernible] gain a delivered value We delivered early before examples. Developing results match vast prototypes And salespeople contract executing we're take And AI our is and situation. X% enterprise the Tech to roles. function are leaders. to are strategy. In growth client with best CV they insights just core of We've financial Gartner to type that powerful expectations. with using of accelerate. those that [indiscernible] them library vendor

to for shareholders continue drive value returning through We'll [indiscernible] our and capital investing growth. program. future addressable proposition shareholders and double-digit repurchase actionable value to our clients, create providing long-term to opportunity by insight allow to share objective revenue for sustained client our us growth Our will market our

generate net significant flow will We expect cash income. excess to deliver over and of modest margin free in well to expansion time continue

the Craig sustained and to us this over our that, I'll the record hand Officer, positions call of in track future. With to Chief more continue success our Financial of far All Safian.

morning. Gene, and Thank you, good

another Third environment. in performance good quarter contract year-over-year, still a value X% grew complex

EBITDA expectations. ahead our revenue, all EPS came quarter Third in and of

our QX quarter. and updating results are on the We based for outlook improved fourth guidance the an

the $XXX taxes million before conferences for received related we pandemic. to affected insurance quarter, cancellation third the during conference Also by the

$XXX of and repurchased opportunistically. through million to stock shares remain than September repurchase We more have eager

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

including was grew And the $XXX was consistent was and and last insurance-related free proceeds, $X.XX QX cash with X% million, reported year-over-year research neutral margin with the million. Research $X.XX was year. EBITDA Nonsubscription the revenue reported In FX addition, in $XXX third compared of versus our neutral. was flow, revenue in last revenue neutral. year. X% as EPS XX%, with contribution grew XXXX. Adjusted X% FX quarter in total Subscription of quarter as third line expectations. FX X% up

third the are turned GBS acceleration vendor end margin function value leaders up broad-based second value neutral. CV last single-digit Across sectors across prior at Contract in vendor corner contract of the CV care digits single-digit with half was rates, grew across industry and up new consistent quarter. growth led by GTS and which sizes CV energy, combined quarter mix. practices, across QX. Tech low rates small, enterprise strong value at the largest billion has and of all sectors, was was single and sizes with continued manufacturing versus growth the high our tech has sectors. FX X%. industry contract CV the grew and company regions. except double-digit high practices, and quarter, $XXX from health X% a value enterprise million business and contribution the Third from geographic year. Contract or grew $X about year XX%, at research the grew

X% also up drove QX the from continued. majority the GTS countries. Global historical up compared wallet retention versus consistent levels. the the to year-over-year. by single growth enterprise of the which was GTS new the up of the was our GTS digits. sets last XX count shift, Enterprise $XX quarter, quota-bearing up was Sales than leader CTS sequential mid-single-digit leader double-digit QX to increased largest CV QX. XXXX. of year. head vendor third end improved the was on QBH high $X.X XXX% since deliver of added for began similar the as retention growth growth GTS quarter, increased million increase high We at year. from for X% or sellers year. X% more in last the CV GTS business positive was contract for CV This the We us single-digit quarter, end top to prior while in Tech second value Technology quarter, billion quarter, XX with

in the regular found set GTS be was our Business Our year-over-year. supplement. Global Sales quarter, third $X.X metrics of contract value earnings XX% end can full of at the up billion

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

GBS target GBS in quota-bearing new XXX% year-over-year, XXXX. retention the for While and growth to high prior to last count for compared continue GBS year. up quarter, to up was the was was single-digit XX% we business year, X% XXX% which head for compares

can GBS reported XX% As with our third XXXX. quarter was XX% typical Contribution million, GTS, metrics increasing FX seasonality. earnings destination supplement. Conferences as be consistent conferences in $XX margin third XX We XX%, of revenue compared for with our neutral was QX the QX and of found quarter. regular full to the set in held

optimization, ago with period. of compared year an year. compare with $XXX the of XX% the reported million, September revenue in $XX in FX delivered tough very Third QX XX% margin quarter. Labor-based in $XXX continued year last QX XX the up from million third was revenue a quarter FX-neutral we on last consulting revenue Consulting strength. In million X% $XXX at contribution as neutral. versus Backlog quarter and million increasing was was booking contract million, $XXX year-over-year basis of with was

of biggest is growth, X% the of was in higher costs. SG&A and and an cost compensation revenue on optimization of services quarter compensation quarter higher basis. increase increased the FX contract SG&A in highly Our result the to as as headcount The a neutral. FX-neutral increased year-over-year in costs. third quarter year-over-year variable. Consolidated third reported contributed which increased X% reported driver as the

modest year. as quarter $XX close XX%. quarter the upside, was is through prudent income We third expense was net third had compared QX financing for an of XX% XXXX about up for million, year-over-year. up of a rate improvement with adjusted to $XXX net million year last neutral. calculation third EBITDA of versus for was the quarter in X% expense, which higher flow about of costs quarter of have quarter. income QX in to was in was the quarter. by XX $XXX our third QX compared This The income, the shares XX% shares last in the to This fully $XXX we to basis. Operating million unweighted shares adjusted rate the hedged We This from proceeds deferred received exited million reported in million management the XXXX. interest an XXXX. The or is cash for quarter. We last million balances. debt the XX% This year's up with third quarter, X.X EPS adjust was outstanding cash due X% excluding we XX compared used compares million. quarter the of and X% million with guidance. Depreciation to rate, in quarter in XXXX. quarter and on use tax we The is $XXX was includes insurance-related million for rate the $XX $X.X to revenue third tax through FX million effective the items $X.XX approach quarter. Adjusted the Net outperformed of of the the favorable on floating for interest $X

the was on expectations. Free XXX% of cash Free was pay insurance-related the net in for flow taxes with million, a rolling was to quarter our line GAAP expect $XXX proceeds. for cash during We basis X-quarter the income. million, flow quarter associated the $XX including QX. CapEx

Excluding and the flow XX% free insurance-related proceeds, of was EBITDA. revenue of cash XX%

of conversion is about Our the the when had third of is generally growth billion free quarter, cash cash. accelerating. At higher end we CV flow $X.X

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

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

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

billion of million We stock $X.X leverage with repurchased balance low and liquidity, is effectively $XX sheet Our rates. strong the third fixed interest levels of very quarter. during of

the of billion. of $X our share As QX, repurchase is end authorization more than

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

Research, reflects for year guidance guidance for our trends. our performance recent X increased QX We and updating outlook segments: the full are Consulting. and upside to And QX. outlook We and reflect an all Conferences increased EBITDA

rates, the other U.S. denominated benefit expect As we about X/X recent a a operating modest in our currencies and dollar. than on reminder, expenses QX. FX of Based be currency revenue are in to

least FX-neutral XXXX we $X.XX growth updated of about billion, research This growth is research X%. of revenue at subscription Our of revenue as reflects which about expect follows: is X%. guidance

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

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

full expect up guidance. $XX our $X.XX billion, EBITDA from at now prior least We year of million

adjusted We of least expect at EPS $XX.XX. XXXX

XXXX, For flow of billion. increase guidance free items. several cash we at from $X.XX expect prior least The reflects

GAAP The improved First, of estate net insurance-related income of related from and proceeds net a taxes; XXX%. operating planning. to the August, reflects ongoing real third, payment second, we in performance; estimated our conversion nonrecurring received a guidance

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

been Our shareholders. single XXXX and the plan digits $XXX of September believe We financial eager have remain of excess growth CV quarter we global despite CV stock to September grew through quarter, capital high for in bottom the through continuing of return more million our in to than was our uncertainty. the ahead cycle. year-to-date repurchased results this first and macro

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

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

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

the Instructions] Robert [Operator with Our comes W. Meuler first from of Jeff Baird. line question

like conditions as Can leader, trying GBS growing tech little market or have what pipeline? GTS enterprise enterprise vendor as getting you with It comment just better the on end decelerated function giving guess, might X% us bit. Just triangulate from on I a you're XX.X%. looks it to well

and et any just beyond pipeline on So help anything macro capacity, sales cetera.

Gene. it's Jeff,

GTS we pipeline, enterprise a have pipeline of terms robust in leaders. for So

the about very proposition. have a that value issues care We strong on We're people it. really

that time are link terms any our to our strong. very particular results reconfiguration in that is on So -- there's time, from pipeline goes There's some quarter of in and sales force GTS a and influenced And by where with we expected. SKU renewals just we we're the a particular pipeline of users. have other but uncontracted of great for again, things, quarter kind

as I reaccelerating modestly expenses, XXXX time on headwind Or good is then a to over gets EBITDA growth investment adjusted for headcount. from expected with And be expand there to margins? could be, Okay. you a sales reinstated more baseline fully of guess,

thoughts of couple think a I there. So

baseline 'XX highlight the thing headcount expense building GTS an rolling is GBS is perspective only from loaded. in been we're I one, So has back-end XXXX would and operating both a forward. The growth into relatively that good

we'll that that our obviously, market from a into after continue as to year in opportunity prepared so remarks, sales year. And for the full future. we mentioned perspective And next huge grow go then, intend his Gene to to untapped force pay

think continue rates, make good where into base to of drive we of about the baseline GBS sort as we the we we GBS to the make business is way to the areas drive and productivity, loading top roll XXXX, we over think for is our 'XX back-end we drive And those a line to key sure and sustained want I headcount. GTS growth relatively retention So the safe and OpEx make that investments time. sure we strong and headcount that of GTS in other and

comes Stanley. question the Kaplan Morgan next with Toni Our of from line

on I guess, in probably renewals. you're at point this of to clients lot a year, the talking

hear from year? to interesting about your budgets are their 'XX so you're for if selling And that the next wanted expectations environment what there's just and anything for them hearing

right at if 'XX going for now, be in us. and we But right expecting a if in better all what look Tony, year hear our right that's they're [indiscernible] they're that would we expecting better on than what's I renewals 'XX which, client's year budgets, that proceeds [indiscernible], good But all long. now, have that now of 'XX. 'XX is than 'XX

force a been Great. of tenure. give I working best on And could an update attract I you've your was sales on hoping number to initiatives the salespeople. retain and you know us

are to and you to hear to going are regard be those where to Just want headcount? And wanted you retention history? your relative initiatives how sales with

I sales just but anything force process, attraction? continuous and a tenure know around it's the

Yes.

We prospective as associates for proposition have well a as fantastic Gartner. salespeople value for other

about of a people, for you when every think we we -- very XXX So on if apply have we and hire have order -- the job. people

And so very we from we get value we terms pick the also associate of best hire, of the a in who strong of proposition. have kind because best to

is Our associate low. very turnover

our So we're to it's that reason is turnover but upgrading been the because the bottom not group has talent. [indiscernible] managing make we're lower, our always sure

great us we a again, so really people. proposition attract associate value that allows have And great to

wouldn't mentioned some accelerated accelerated again, so the in in higher as we sales but Craig that puts has turnover and terms of lower be to investment been his be -- too enough mentioned has force, that slowly very in overall tenure I in people we've as range Any been And newer management. our like rising over remarks, time. the rising. tenure our [indiscernible] we well, would would is, with low. Our performance low tenure, exactly. it And is electric that be because It's what we in

line Goldman from Our Lakrits the Sachs. of Alex next comes with question

you guess when with vendor more it's the value, Can accelerate. to to the turned that tech currently would talk expect is with given meaningfully you vendors to continues is mentioned trends? Goldman. This with CV where prevailing growth the performance And I growth corner respect contract George improve and you in now? Tong about tech

force. and new tech rebounded have tech actually renew, They still particularly we on and what's are with get that can't financially may to that our at contract tech lower may doing vendors vendor, They still vendors and actually mentioned that they well business, in rates. nicely, going a tech but pretty in I challenged. vendors George, with that renewing has business So are [indiscernible]. new Craig some They small is have this, fact, aren't but they're that's

than down what's so coming growth now can't tech we have our Eventually, seen a that's that right at we've have I And the lower get clients small very both of that funding, business, range will in that rates and new logos has X-year new contracts our vendors sign renewal. positive dragging even our And But be the renewed through. rebounded historical X-, more for historically. in it's but is those think our us, could and with that is or a tech contract nicely for business to existing levels. X- sales, are particularly fact go again, vendors very up

you going And bit consulting sometimes the it. business, to drive about key you trends the driver consulting little be then tough what helpful. more trends and would and growth part of Can or talk a can contract expect this business? Got seeing at of the the overall trends the optimization be piece forward And comps this performance the with you that improving? variable. what That's you're there with with business mentioned

we very terms on proposition, a that strong pricing contracts. we better in clients terms business, both have is large deals in value So of help which get very and

system contracts million, going that, that have to and So like very spending a clients we're the million get million, better $XX that's be we large $XXX something CRM there $XXX terms if -- in on. helping could deals a or they're of client

there. strong very in very value So our the is clients track it's record helping strong proposition. And

skew the in you're the that, said week budget don't kind It's strong not that X But Having lumpy. or could that all for time. drives off we negotiations on that. the is doing It so decide months. -- we and But something when what of exactly is actual take get very clients on push change, million have it's and you they and want are, if deals -- business build very it what realize signed deal the actually clients' $XXX fundamentals proposition. like could in we when that business. or then signed accelerate needs the depends of the value why so paid variable more that's come they business. can the first, a it's to is, of big client on also our imagine, the when depending the how -- And value -- could deals, business The get on very they they depending are our

it's last those wasn't that year, of were deals that through. in of And just year it was an kind there went large happened that extremely of just as kinds in a but quite great matter as last I of variability large unusually QX, strong -- business. So the number a had We it QX. it

last as order of growth QX was George, XX%. year, reported in rate And magnitude,

So to well. we the expect medium-term grow term in outlined, quarter. business definitely basis, in our it and clients. be term, all medium quarter-to-quarter it long my because this our I and as for quarter And of consulting think strong Gene very from tough a quarter mind business a value But great it objective can short proposition line the over But very was definition reasons a for it's as term, the variable meets outlined, compare. with to very delivers he Gene to --

Nicholas Blair. Our of next the William from question comes line Andrew with

wanted could business drivers unpack to GTS underlying GBS. quarter in And I the across on and I the growth wondering you was This Angie is focus on Rush for Tom Nicolas. there? new if

Yes.

business we XX% new as Tom, say, the was year-over-year. GBS So growth

broad-based growth. performance remarks, double-digit good across solid mentioned practices. really prepared all GBS So as pretty And we our the in

high again, And business the new year-over-year across again, of the sort side, On of strong it's single-digit And year-over-year GTS. growth was bulk GTS broad-based growth. X%.

sort sellers it of our I think about offerings that the we the through research generating leveraging those pipeline then the and And to the drivers, best the sales. turn driver our we all than the wouldn't any strategy, that's that I opportunities of value value external when back that our and driver to -- continue the anything to the strength remain into on incredibly and are of within we we things sure or of end crank continues enough big proposition making there's markets a practices think that. goes convert work are to or of proposition like sort other pipeline demand say and strong in the serve.

the Great. the any And and And client fourth then down follow-up, you add my how wanted relative [indiscernible] it to your for color more in drill expectations? on trended quarter? see then broadly can spending to just I on quarter

wouldn't different saw I perspective. from we spending Again, anything say a or end market client an

to but those. is we pretty serve those for complex and executives a lots we improve challenges. The we And and be highlighted on, a lots Gene to clients through that very world earlier, exclusively address performance dynamic mentioned operational great the of and some Gene working lots and obviously, our support. not and Gartner the focused and the challenges of place, lot it's a our topics both continues have that As are clients the way are that. of big I way

perspective making delivering client focused spending we're We're a just trend same. on any So of sure that external change and like I from value think more continuing that, the or [indiscernible]. there's big no

from of Chan comes the UBS. question next Josh Our with line

that the make into that what be here to quarter, guess suggested QX that maybe So the we pace comment? uneven you path the QX CV see in would do step uneven. bottom, you did terms I CV? stand about taking but last what recovery of a the be think you QX, may back, as that going you caused And of in

if more at Josh, come of contract isn't value, quarter-to-quarter. or exact you varies a line. there's another So path than which X are certain there the that the the is from up. the we our renewals It variation, responsible quarter, straight look in our necessarily And a that's said for slips renewals of if in given any growth of kind -- set have kind accelerating quarter, to be to why what's quarter quarter-to-quarter going

add have just pushed a that. Again, you is always what it's is very big strong demand you so optimization now. these the situation renewals. and up actually variation what terms see in on And quarter. see expect, intelligence, cost A deal deals, But new analytics, value our get and business how for proposition. you'd we normal it clients again, is rocky artificial the issues in cybersecurity, great use like from they overall, another with so do responsible of may data We again, a popular, macroeconomic if right

to so to contract And optimization continues be something important very many of clients. our

specifics the value quarter, it strong each variability. post of It's happens same. so kind a caused kind the of just of little what the us And is

at in be $X And of a change. could a quarter the Josh, billion in or it a base, million around $X.X with XX-basis-point quick just change reported least put sort roughly terms, to a XX-basis-point

and not place, be drive again, in dynamic swings that we're as highlighted, rocky. just deals can et it bump a early, as line straight perspective, come a other. the way little small bit recognizing is cetera, complex be things from a very as et million $X.X about XX-basis-point potentially again, a the it X talking or trend But cetera, may may could push, why and so world may the a that's And Gene we that guided all

in bit on and helpful. marketing do on I a Could guess, going would expect the you practices little there? understandable. that, anything then some with what's a there Or definitely sequentially. And trajectory you maybe don't very it CV, That's on that's to talk right. step GBS sales I That's know terms And still be but of have if down comment GBS healthy about what to CV? continues level, but

a refer Let to inherited still we've growing that products And medium-term legacy you on There's new they're the our lot groups. think of very as some actually to X growth if above to just products, high CEB. there. it we me from that we of products our and GxL of can CV, XX% spend you GxL And then at introduced, the there's at still grow we've GBS products CV above have our that XX% we XX%. introduced kind level, CV. range. to primarily They new continue about that look a GBS XX%

And the in of the is some legacy deceleration so really products.

rates biggest has gotten renewing renewal of that's a kind lower are rate. economy those that factor rougher, the the growth somewhat that's than GBS little impacting the As at they've that historically. And done

So the of a the business is Each than managing well. course, products, GBS attractive. kind little of extremely doing they attractive year, but healthy, were. less they extremely new less get legacy they're we're And

that's biggest have drag the we So that of GBS. on kind

Our line Deutsche comes the from Bank. Faiza of Alwy with next question

I'm curious 'XX you if to new implement significant if a I as be few historically, know clients about you're generally. of AI think beyond? in driver along a that to now right being you that contributor big AI times sort So mentioned AI the CV could and you've helping that look of talked the not growth business a overall we more we're journey, further places. ahead

Great question.

to be issues our So clients always they we most important the us helping have. -- expect with

might have And in it time, one ago, years few cloud computing. so at a point been

And that do how all our all it, wrestling with rest data the the across clients the today, how do like And that that's They're in every so AI. maintain cost we of issues all ones business. business data, the The and the we the access tight today, use cybersecurity. if I wrestling you mentioned and earlier, needs to we cost do are how are and maintain use really functions analytics which true with look optimization. is of are

changes geopolitical people In organizational making addition, that that factors the of kind there's are help we with.

the It is always issue our the so histories so if sudden, issues. cloud. all now been important with that change one a along important means in more them most get new And the there's for helping thing business that a a AI demand, that we've to we of huge is doesn't we're most to clients. are kind Those example, over time, important of mean, issues it all

on of run the but helps, And at issues. the most time. the range margin, a we so it's always course, And of important it whole

CV, I helpful. but I waiting revenues big will maybe maybe if next of where that into share just some XXXX, Do and we're early sort be declines. to know there's That's research thoughts in around was curious about any business Toni's Great. acceleration curious, read on we on you on some nonsubscription additional And revenue, can grow? as driver, to XQ think we you expect then in response year? still And CV on saw -- and a question XXXX, that color

as So I full normal on is provide we'll in obviously view guidance our think XXXX February a practice.

in highlighting lot You're is there's And -- large very, X still very right fourth for XXXX biggest very, of got in and we of us. working. a the where we've revenue that through the quarter finishes CV XXXX. It's and quarter, growth are that CV driver month a deals we're

around around points behind that XXXX XXXX get do. growth And normally specifically. And about And both we XXXX. we think be more sure. the the XX% then on conviction GTS around we to I and great and to to business, we biggest those should -- believe so say, accelerate XX% as and to where term, fact that will we'll of revenue, for I dust the to the guidance the continue back as provide time is then have a XXXX that driver will part but we expect medium over GBS time. over full settles

Barclays. Patnaik of Manav the Our line next question comes from with

follow Craig, quarter? of fourth how in sales percentage weighted on renewals that towards is typically us and terms up quarter maybe a big maybe the that are just just the remind of Can you that.

about back about quarter. we fourth new numbers, generate fourth and annual historical the look one our that of you of our I of order think and quarter, half it in is generate business order quarter. magnitude around NCVI, fourth with kind XX% of for The overloaded at to thing the growth we overall not say way CV the generally renewals is the The of would magnitude which in in we're numerator

XX% really about we NCVI as pull of opportunity do business. also and deals the them when a multiyear in job there's good fourth roughly, roughly remember, an well. we XX% Our again, to writing But again, lots quarter, sell happens of when teams that. do of of we're forward, new And

talked That's budget on quota-bearing talking It. robust. better strategy, in helpful. headcount your hiring, about pipeline is the And expectations the you to customers. Gene, just The

posting. think ready I always applicants rebound. for costly you've you hiring of per aggressively I job think said the camp Historically, XXX being in the were when even things

versus rebound? mid-single ready be bigger year-end to for curious today number the the why digits just So by a is strategy

Manav, train our on then our good we why on based are we're That's hiring, good we The operational but people it's and we that develop on plans we in accelerating bring is, where market think the sure which those people. to also is make think capability really hiring and place. based is what reason our a

And to ability us as more concerned so step kind to be to streamline a sense our as make opposed where we would that hiring I'm as it be acceleration. change more as accelerate for a effective about makes of operational compared to of kind

Jefferies line Out with of next LLC. the question Surinder Thind comes from

on question just Gene, following up the last there.

force? term as think Or handle. you force sales can productivity the think of you're that the sales any not but maybe any Does just any maybe that? you each points a think how sales maybe around potential AI on the we this bit metrics, little about viewing change impact do color next the about you As longer-term or of structurally, of salesperson number year about the the year, have longer force, clients and size on data structurally as

comments Yes. have in are my I we're that promising. some that mentioned using we that very prototypes

be. what it's long-term the too to will productivity think say impact early I

in whether will of real a as I couldn't positive, it's and time I we really now. well. right whatever, over think or see say associates I know but be X% our what X% it's We'll will really like it it working the or realize XX something improvements time. over a be [ to ]. going It's don't It going that. expect period benefit like I to be or like XX% it's productivity modest not is. improvement like be a

terms Got you there those areas the also then think seeing the of legal, GBS on of maybe about you're strength, it. some are side. such And sales demand and tepid talked HR, you some as marketing areas. But side, I kinds some then finance, mentioned more in where

seeing color Just kind and at the just client Is the that headwinds area hiring think that we're in term? there there? terms about we're the the that in seeing any we additional demand in near the should of clients how of end that maladies themselves? Or

there's and in a couple [indiscernible]. things of marketing So sales,

tech. there's for an First, overweight

GBS GBS that it way while of little so by is that kind in of impacted the in the world so isn't. GDP, marketing most the out on And being sales were tech turns a with side split tech overweighted they're a piece

amount on lot in marketing much are [indiscernible] CV areas sales of last CD, piece well, there's a is an the where spending talked tough, there's sales marketing in relative There's to legacy high but some economic particular, with in quite of the about -- times proportion earlier, we hiring marketing a piece the products that legacy are more extent, CV piece. amount actually business. the higher that, to legacy And is the and there's the well. marketing but CV than -- in as when Second I doing are new of a of doing relatively isn't doing

coming [indiscernible]. are still It's doing together things well. it very those make challenging that and all So in more

away happy challenges the going, does it's have but other those of. don't I it as where shrinking much So or take not that doing that it's with wouldn't actually some practices well. of We're have

from Silber comes the BMO Jeff Capital question of Markets. next with line Our

get comments as what if in of and some should be can we price increases of process we through to able expecting you've the next for pricing, get terms renewal what on Wonder types been well? year

higher few of speaking, exceptional save into for a had we wage was lower, wage there to as know, is And weight perspective, inflation offsetting increases. the sort a inflation minimum, X. down November to more X% bit but a perspective at were a and price of price that, X% things years ranged little sure our and we took our increases less we've -- we price pricing be most our there our majority for question. are up From on inflation bit #X thinking rolling where or years, But have with renewal thanks make XXXX. Generally match inflation settled for we projected happens XX-plus action aggressive wage when how this pricing. actually little higher we year in a that now. about Jeff, from to strategy than our you recently, X% And a our a between pricing again,

into price XXXX, terms we're rolling under X% so of the increase. And shade in structural

consulting, do in If from mix I gross is gears there a that last on have something of? year-over-year helpful. to Okay. decrease with a really on Or the year? to that shift we saw That's away margins contract should aware you quarter be shift could optimization the Does anything big else had you basis. going

quarter Yes. And as had in about. ago margin. a The quarter very the biggest this Jeff. biggest highlighted, strong the profitable on that's we the And driver for Those thing consulting there year had a us. we you huge deals contribution We is what quarter, quarter, are talked down. but

the Jason with from line Wells comes of question Haas next our Fargo.

seem I what comments on And about some you the call, that's decline lot the million. similar In I non-subscription compares get it if for the were expectation. you still revenue about but would substantial easier. curious reason imply talk last $XXX could be is think a XQ, you're And because pretty ask call I'm there that to in do does [indiscernible] expecting this this year. it talked the

just thinking going nonsubscription revenue you're then I'm if forward? So And that right. that curious maybe I have how about

for thank that question. you Jason,

expecting are side, million for On the XXXX. $XXX still that about nonsub for revenue we

perspective last our So quarter. unchanged from

pretty bit year so was full third the significant seeing. math we But does on been decrease, and imply our in little a delivered the more a quarter You're unchanged. roughly the than we've what year-over-year right, basically expectation again,

follow-up up. not could then you And we'll see to expectations -- next have on it. sales talk also want takes time for just the That's year? I'm force about it continue to if sure your if question helpful. that into I And declines Got a to if ramp

folks more those it of growing take to digits. quarter-bearing to ramped How by does a single long normal get up I So be high to level year-end you'll headcount mid- productivity? recognize

Gene can ramp force Yes, sure. the short. sales up. I'll be talk expectations very will about cover the XXXX the then And

again, on guidance So full practice, in February. we'll as our provide is everything

talking we're a and to influences where to still how force in so There's XXXX sales going ramp. set for we're then, which lot And position plans obviously in and XXXX XXXX, about yet. targets not we're on our Gene, a go

Yes.

get salesperson to sales it terms In X for a productivity. from years full productivity, force -- of ramp, to takes

years now. X So now we're hiring the productivity to get full from will people

time. least 'XX focused So an is over this investment on take that we we've that well. X seen And moving early XXXX, for so of that not as and doesn't that earlier or productivity get very consistently but it years at just We're 'XX pretty for more productivity on.

years But digital like so apprenticeship talked with new our program, the giving et sales salespeople And the faster. our training, things up the X -- about currently our takes we're tools of that a to brand I that force bunch get equipping are cetera, about productivity. designed

further showing this currently questions the time. for remarks. at closing to I'm no over like I'd And to call back Hall Gene turn

results away delivered I'd seating from ahead value call. enterprise function Tech take what turned like of continues X% accelerate. financial contract the today's has We expectations. corner growth vendor leaders. Gartner you of and here's So growth to delivered

client We value addressable market opportunity have proposition. strong compelling and a a vast with

excess clients, gunning income look you We'll ahead, sustained shareholders quarter. term. Thanks drive over free double-digit share providing our returning actual we're in for to again capital prudently continue shareholders invested and cash repurchase we net value program. of objective next to today, Looking positioned future flow joining for growth, us updating our by forward and to to well our through impacts for the long growth revenue well for our create

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

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