FTI Consulting (FCN) 27 Oct 222022 Q3 Earnings call transcript

Good morning, everyone and welcome to the FTI Consulting Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I would like to turn the floor over to Mollie Hawkes, Vice-President of Investor Relations. Ma'am, please go ahead.

Good morning, welcome to the FTI Consulting conference call to discuss the company's third quarter 2022 earnings results as reported this morning. formal which with your will begin questions. will remarks, they after take Management

I remind of meaning like conference we the of would Before begin, XX Section to involves of Securities include of risks statements XXXX, uncertainties. and XXA Exchange call forward-looking everyone that within Section the Act of Securities the Act XXXX may this that and

financial future or plans, or include goals, not strategies, and to revenues, statements intentions results estimates future regarding plans expectations, concerning matters objectives, including our acquisition, historical, business results statements other repurchases, performance, and future Forward-looking events, and related are share trends, financial performance, relating matters. future other of statements matters ESG that information other

this for other report which year XXXX, Investors for only on Form XX-K ended call December speak statements, to on quarter will XX, earnings cause For by discussion A is in ended are this as disclosures actual of under our our filings and as those differ Forward-Looking copy the statements, events and forward-looking place our the as issued with website quarterly not annual the which other at on of and in forward-looking the contemplated from to of cautioned earnings risks Form the in XXXX, Factors or and XX, Safe-Harbor report Risk may morning. not should heading the of that results review investors be release reliance statement any well our September XX-Q on the SEC. press updated. other Information available date www.fticonsulting.com, undue factors

net diluted financial earnings income, segment adjusted EBITDA, During flow. segment EBITDA EBITDA, free-cash adjusted the and adjusted non-GAAP per measures, as such total we income, margin operating call, discuss will total adjusted share, adjusted certain

accompanying non-GAAP press the these financial as of measures the other review release measures, directly discussion financial the to comparable include most and we the morning, issued measures our investors this of should and reconciliations as which non-GAAP tables well that GAAP financial For reconciliations.

been have quarterly to to your section presentation our data, reference. note, during our Lastly, historical of there include of today's a updated and website third an investor have Quarter PDF relations which posted and operating the been earnings to financial that are include XXXX results. two are prepared for Excel remarks, investor speak and our items These website. of management they relations our website. as relations are earnings the the posted section as details ensure and disclosures will provide investor available our not to on quarterly directly the have presentation the these historically have of said, To our slides same I consistent, section Of

call these and the Gunby, joined our way, to Chief turn Sabherwal, I this our Executive Chief time, am Steven At Chief and I Steven by will out-of-the today Officer, Executive Officer; Ajay formalities Officer. and President Financial President Gunby. With over

you, Thank this joining for all Mollie. you us Welcome morning. thank everyone and

numbers. As some the that in I'd I hit reviewed share thoughts always, permission, but your perspectives Ajay that me, detail, those will through few a first with to hit numbers some like as me, go

when in which numbers another you are amazing. quarter saw had, the of this wow. morning may I be reaction was to that quarter, some The of quarters. long first was you The had similar extraordinary This reaction this extraordinary line another numbers those first a

like reaction bullish I'd very to a share. So,

was to looked want and I the at less more I also a The reaction second I fully share that. bullish numbers little had as

strength sense quarter. the As numbers business numbers of the some this I the in underlying the overstated closer examined little a real

business found a expectations, performance, more there underperformed I of parts some not that had What overperformed. closely, underlying of Ajay's results quarter. expectations this quarter So, quarter. before We zags I've big major cut in in business level that of looked of was extraordinarily my exceeded I did business parts and my words a the the but more the this in the used happened than parts fact, well, Ajay's the than were fact, zigs that favor our in fact, few and extraordinary one-time driver as this that in to more factors

when quarter my soar. geography is every on that is underlying and as sophisticated important are it And business sharing globe, win a less to time, when extended are need that's also which think any firm, like in to perspective quarter or bullish who is about can where teams what point the and view we've zigs and the with, Company, significant, close to with and sometimes the quarterly one we the that I'd the hit we I that continue we me, it long-term So, a point a talked terms about the that short-term that's people I right I all-the-time our experience third to close say factors far point in the check-in I'd in like our don't developing times, a like To build more is about Over as one is core and to our And does around we point every capabilities because bullish is I'd zags. either the need did of when issues as many think aren't medium-term share. is now are to can those help quarters the that they view a to my attracting continuing we're there particularly has which for a segment and that, do and broader always that, trajectory. the think of will in bully most period any and past. whole, this quarter clients to that clients

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revenues If you them haven't record a reported look we and record EPS. again to had chance at once

we I XX% fact, quarter delivered than the most the was the higher revenue FX than I that's year's was When more exclude that I quarterly growth and year it headwinds The Because translated turns that top-line of perhaps a about headwinds, number, earnings maybe it compared XX% company here. out where where out face of first first and was If just entire in powerful thought In the growth where you my $X.XX this it calculator I even revenues earnings full-year organic share. XX% was and per right. the year-over-year. the higher on FX about surprising earnings double-digit And, to were in saw to we we're I earnings this this here. took

cut always like isolate became So, have because number. end-up when If you any happen tax or results. factors there before, in over one-time to true. the rates the remeasurement in FX when conversely or calculation quarter, all time, I negatively bullish that strength but do though quarterly underlying cut gains longer my one-time I one-time happened understating by impressed did given began out, I less to of seriously if underlying from this positively, quarter all that that this of factors losses major even or gains, isolation in numbers tend the some the quarter, reverse fees is however they factors And to remeasurement, period our opinion they the were cut we've to favor. business, more in what even about the I affect were business any the to was talked can And, success in factors. one-time

will about in that this understate revenues of in deferrals sense Those we underlying underlying profits quarter and quarter's quarter, profits this are two was and deferrals substantial the and We this Those and same hard additional we of revenues we to benefits go. predict we've business for sense in very gains course knew more That Perhaps remeasurement significant quarter. talked and that come happened had some we recoup quarter's which the about. expected the quarter very They were this and One low to ended-up major for very quarter. tax-rate. reasons about variety Ajay of those a with performance and they course in FX this quarter quarter of revenue about we this talked some to a cut deferrals detail overstate performance this positively of as mean quarter. that but real last last e-com, talk the did. the

a let investment markets, health parts those level, all overseas $X.XX were and corporate give to the particularly benefits, a other out one-time not we made and it some fully was was quarter tech, would it EBITDA expectations. expected but one and did and pressure in we while associated together not perform soar said, In flavor did Europe as business but strip fros. down some of headcount well if that and/or as our of follow parts the of lagged always just the continued solutions businesses did the had you but compensation some being well terrifically and that same bad suit. are have me suggest. dive That Within tos other extraordinary in price finance, In record neither of effects better and growth to But some EPS with revenues, continued you you a our If outperform of or the weak. FLC U.S. our cyber expectations. at our time as examples we than there hoped lots business not

Let me spend a minute on EMEA.

the the our the have are growth. teams EMEA, think about to build for entire and I able Leadership the next-generation talked team on in and am bullish we've making of we trajectory and extraordinarily there, the multi-year of I Europe we're company investments very is As been proud entire

to of However, just on that normalize trajectory With quarter a right with the businesses feels this for to third the when being on that some extraordinary, company, performs in the doing on of with takeaway market back leads The like rather of to a one, is more an ever-stronger expectations. ever where therefore parts we shareholders. have to and that quarter the to automatically so that tend the our one-time respect and capable business for tos quarter to work realities short to to have deliver great this keep and past clients, Europe build with company, mind typical an powerful quarter meant in point. the various to details one one. on focused extraordinary the going quarter, great this stresses focused which always give of our that an has you look of every which more will do, the the solid is but me our company more you was factors, we the goal to some have fall quarterly for for attract not attracts for all and building than multi-year you but parts my more are fact of dealing performs more to what in parts you nice the performs on you past market, but company, other continued than some our and like clients, overall times be and of Ajay aspire this that talent I to year say look fros, people, company, our in that's extraordinary talent, always for develop able the

business one has knows world short-term on not quarter. several had I competitive zig-zags up disruptions to to adjust call and you right every other every we a to every zigzag that but make market stay courage have the last just the is part we in the think in we the My experience away, the over of every period the actively that new the in zigzag when sometimes realities. required our focus to time around went we've line extended making way, when straight-line market don't make zig-zags the over The that this actively the focused years zigzag the zig-zags, through those creates been have go dislocations because adjustments teams of teams and markets, everyone course, persevere require the landscape, of world, the lines. any right always teams making when upward success work points and sloping are are do businesses, we in determinations that those to have

reflections, the the and past around our when of quarter, our the in I step set world, deny look in think the around in of around to with the lows. view with leaders restructuring about still that more place. and places talk the me world, It the fundamentally engage So, with world, in some leaves when of places the that that segments my doesn't Ajay talk the talk I specifics restructuring of realities yes, strategy fundamental when and conversations markets teams the clients I are our bullish with teams all-time most the market, near world,

crisis. you unless away. positions enormous teams believe our believe making So, that will made, and have There political I for places, markets. progress needs inflation. leading government have are them. clients for with our and and unbelievable Yes, gone at look to Europe, in There's actions is tremendous to all value issues. shareholders. that The war. our that our our is are has are energy in We and supply will and are value to know talent around There trying Europe the enormous our restructurings therefore There is all have create those more disruptions. world clients you that more big There many people teams have company and tumult chain both our cope attracting build if a ultimately made who an today, There facing disruptions. developing myriad

create All to team have, on now not Brussels, with I us the of for we our embark talking I the the that almost is arguably a of Spain, we all today if that strong to have that to a while. also our those you the like so you on have challenging also Italy, Germany, in if most in experience, around have are which can in believe that countries market-focused teams, Europe. had ultimately we ever that experience value. teams you segments true But current the they my building have in today would have circumstances, clients had seen you an to their relevant for tripling it's realities in can the by next react just But needs needs, in to the those we the those in experience I going come you, medium-term people across the to they and time terrific far those in to the value listening the today. have, same the conclusion in have current teams, where in But have markets have market-focused disruptions my of markets adjust [tastes] is this Middle-East, ensure of incredibly also recognizes anticipating that's we're set capable makes if for short-term clients, year. Netherlands, teams France, offerings today out businesses, U.K. to the Europe just we've and in still market In the relevant

had the parts medium-term as FLC. this Europe see we've a story of parts So, as the in whole, other places, corporate I as fundamentally bullish Asia for a and or for of some well it's whether some finance year shortfalls of

more are to to actually we or from on can underlying you. ambitions multi-year this reality that it, I journey let that had this closer a that, come is results and not as I quarter. be actually more great EPS the it are the going-forward. been the and So, supporting beginning but and bright develop client can can good important and firm. of are our its growth of me I'm long it end of this stronger and view never people. face the the its are far terrific, be me the is than $X.XX strength excited A attract who in we and has To at need view company's make the more the let we over strategies, it in what those build than an a But conversations client-focused company turn to can that of to overstates today, major that has about that on back people people shape think the drive come am conversations, teams around never history Ajay that excited businesses, trajectory $X.XX three for to are and to reinforces With we me in looks the powerful continuing points; a difference, that as who building drive on who away and focused by

tax-rate In morning. grew will headlines and X.X% growth, Steve. lower Good an Year-over-year everybody. are a Steve there higher In in headcount quarter remarks, Beginning you and record you, take than not reported offset should results particular, or these remeasurement they impact extrapolated. companywide and FX by EPS through prepared segment shares morning boosted this and for my third professionals or outstanding WASO, more discuss of said, Thank the items this increase and impressive, that full-year. I weighted-average sequentially. our our quarter results, we billable guidance revenues XXX revenue SG&A gains with one-time one-time expenses as in-part the were and compensation, be three are key items. Though both

we First, mentioned announced our to the such level we Economic in such that than of expected recognize in more Consulting second the that fully were year, the segment, be to to in recognize year. results, the half of we we half revenues typical deferrals significant of revenue the first unable able revenue QX and when

conditions revenue and and recognized such to fully revenue met recognition for was $XX.X amounted were This million. quarter

million foreign to our subsidiaries. brand our Second, XX% intellectual we in a reduction to taxes of credits contributed tax-rate book licensing of a our were in resulted $X.X able quarter. foreign against additional tax This that to utilize the property, of this

rise that from is U.S. outcome FX the income dollar of The million. $X.X inherently remeasurement FX the had in we boosted by pretax Third, remeasurement volatile. gains

narrower in range. original bottom year of passage half time our that range with is one-time and and because original only one earnings per of our not in now than the It by both for the is the has recur. the items shaped part share these will guidance expectation Our updated of remaining quarter

results of more the Revenues to quarter. year $XXX.X million XX.X% increased $XX.X revenues prior $XXX.X of or our to Now compared turning in detail. million third in quarter million

$XX.X a business a to though travel entertainment entertainment and as expenses million $X.XX the an due larger in net many Sequentially, a and revenues step-down development, revenues host across of deferred compensation the higher marketing Adjusted XX.X% to of decreased in GAAP expenses. of in to to or 'XX as $XXX.X we compared for previously the in grew and EPS was which well The $X.XX year XX.X% increase million support effective SG&A revenues. impact was $X.XX in to of which SG&A increase of compared Net interest XQ and second to to expense the year were increase in EPS or due an which and of the development. million were XX.X% continue compensation was third more and in FX talent quarter, to lower business million segments. in increase a in-person all $XXX.X global income FX, primarily higher of and increase saw to quarter, $X.X continue travel includes 'XX. gains, by increase building invest demand Excluding higher income prior revenue higher of total prior for quarter. in remeasurement quarter year-over-year quarter XQ as and realization to events business in compared $XX.X compared SG&A an primarily $X.XX $XXX.X million the XX.X%. we The as This recognition XXXX. the tax-rate, in lower to and revenues team of revenues, million SG&A which headcount due included increase partially compares offset expenses. was in SG&A we higher the

$XXX.X gross in of million XXXX of more or in XX.X% year $XX quarter the XX.X% than a to SG&A increase of adjusted increase revenues in Third offset revenues million compared prior quarter. Noteworthy, the or EBITDA year-over-year the profit.

quarter. effective quarter third XX% year to in the XX.X% compared of tax-rate Our prior

the million $X.X XQ mentioned Our due lower was tax-rate previously to tax for benefit.

shares by to the XQ shares quarter, of of the effective WASO of in because to 'XX we compared XXX,XXX shares million XX.X increased Fully-diluted between and For XQ 'XX be impact XX.X tax-rate XX% dilutive our fourth in our primarily XX%. expect notes. convertible million

welcomed in and headcount $XXX.XX year the past had a approximately X.X our professionals compared prior increased our million billable or from share graduates as increased head ever. notes average XXX shares the Billable was campuses, largest $XXX.XX above by this class on In XXX by or conversion XX.X%, threshold headcount convertible XX% Our quarter. of dilutive or X.X%. price third quarter XXX professionals the approximately count included price. non-billable by WASO professionals impact we to university XXX of Sequentially, quarter, increased EPS

to I of the segment Now will and $XXX.X some Corporate year Finance quarter. share revenues increased X% insight compared Restructuring, In at million prior level. the

to which offset primarily compares demand X.X%, XX.X% Excluding increased decline due prior revenues business segment and specialized where for helping consumer revenues year transformation a revenues transformation higher and we include XXXX. independent success compensation producers. represented partially been XX% segment clients the This by and exploration, an FX, XX.X% primarily quarter. transformation in transaction services of restructuring to sequentially. and services grew with of and to The and represented Year-over-year in year-over-year oil business EBITDA X.X% production transformation decline compared compared to growth in XX.X% expenses. business restructuring power higher business and million, and or a X.X% revenues, revenues transformation the XX% of an impact matters segment decrease revenues XQ X.X% XQ segment XXXX. EBITDA primarily sequential transaction of have fees. of increase this million only revenues million areas the decreased decreased to increase transformation and revenues lower offset of XX% was services services. Adjusted driven and transactions by to billable revenues success for XX.X% more business our was for that $XX.X including XX% $X.X the transaction airline, restructuring for or higher SG&A while finance, grew of increased $XX.X On restructuring storage, Business and headcount basis, fees due in segment lower in than restructuring in X.X%. was of Restructuring demand in transactions primarily due and transactions gas our Among segment and revenues in quarter. Adjusted transportation,

compared quarter. Turning the year to prior XX.X% revenues increased FLC, to of $XXX.X million

revenues, Adjusted increased FX, higher revenues in services The higher due and million demand dispute partially services. demand consultants. increase XX.X% by of decline $X.X headcount revenues services. and quarter. XXXX which dispute was segment health a investigation million primarily due billable revenues compared and in lower well Sequentially, of was EBITDA segment lower primarily XX.X%. to revenues million $XX.X partially solutions segment $XX.X EBITDA to for outside was Adjusted growth primarily $X.X in to compared or SG&A compensation due revenues higher Excluding to increase increased our health expenses to was prior the realization decreased segment million includes for quarter. X.X% in or by year an compared to due increase which XQ and to demand as The of in which the XX.X% year offset solutions compensation, as offset for higher prior

Consulting to the million prior of Economic XX% compared revenues Our year quarter. increased $XXX.X segment's

quarter. year for and XX.X%. previously higher America, increased recognition was the primarily $XX.X revenues prior billable headcount. a of increase primarily Adjusted antitrust the revenue Technology, compared which prior XX.X% to The in segment related revenues deferred to or services, to offset revenues million North recognition Sequentially, In revenues, EBITDA of increase The to partially non-M&A-related particularly primarily FX, $XX.X deferred variable higher was realization Adjusted by or in was EBITDA year by XX.X% compensation million offset $XX.X or increased increased increase and segment which in was, million. services revenues revenues. was compensation due of which revenues record driven demand compared prior segment increase an due year from $XX.X to segment $XX.X million lower revenues higher partially X.X% demand of XX.X% million increased of by in $XX.X quarter. higher in Excluding XX% quarter. the the the of to of M&A-related antitrust for million compared

demand in segment an The of due segment of increase year due quarter. higher increased million one Sequentially, $XX.X SG&A revenues, Of request million M&A-related as quarter. FX, by segment engagement million to increased X.X% for year to increase the expenses. or revenues prior EBITDA higher the higher second Revenues services million primarily increase the quarter. investigation had revenues segment both increased services. X.X% EBITDA well engagement to XX.X% compared that compared revenues increase as Excluding in revenues to to $X.X contractors concluded Communications to Technology request $X.X of Strategic $X.X in including of increased prior prior largely the or partially compared sequentially. the XX.X%. for segment third This the ramped-up a was increased and which in or Adjusted large primarily request impact offset the headcount second Adjusted M&A-related due revenues in note, revenues. and compensation XX.X% demand M&A-related in quarter in accounted for segment XX.X% in of million increase quarter. $XX.X The XX.X% and second year was the segment an was billable of client

billable the flat. year-over-year segment which SG&A Excluding Sequentially, FX, XX.X% revenues revenues revenues increase of Adjusted million segment revenues EBITDA quarter. crisis XX.X%. due in work by higher segment more prior driven for prior higher increase expenses or declined million segment compared in XX.X% were as services, was increased a year compared and higher by Communications quarter. the of The headcount year $XX.X increase corporate to compared Strategic in prior Adjusted XX.X% compensation, reputation includes offset of than EBITDA was the to or quarter. year of the largely the revenues to to in the revenues $XX.X communications impact primarily demand in

Excluding X%. FX, revenues or increased $X.X million

cash-flow from well as $XXX.X discuss the net million of to of and a We September cash net in primarily September decrease of cash positive XXXX. now to position quarter. debt cash compared a million an XX, the of $XX.X debt quarter Let $XX.X was as million items. net increase decrease XX, largely generated by debt in operating was at million year. negative period sequential in flow 'XX. in $XXX.X to in cash sheet The third to free and due decreased free cash the the The million of in generated prior XX, million collections position which due at We balance related XXXX, $X.X higher cash-and-cash Total me to June compared growth activities compared of compensation, at XXXX, $XXX total headcount of year-over-year to negative same $XX.X decrease a equivalents. of million, debt

During we repurchased average of shares had quarter, repurchases share our price approximately at of million share the a of for cost At $XXX.X available per end $XX.X remaining $XXX.XX we the the quarter, for million. current total an under XXX,XXX authorization.

to Turning quarters our tightening EPS. three guidance within bands our of our are the and the we while previously for of passage revenues guidance, remaining XXXX guidance, provided with full-year ranges

billion. previous to compares to billion $X.XXX We of the which range between $X.XX expect billion billion, range $X.XXX $X.XXX between revenues and and

to We range to We to differ and of $X.XX between range the $X.XX. expect expect EPS EPS. and $X.XX, between currently not compares adjusted do EPS previous $X.XX which from

shaped five by is guidance considerations. key updated Our

range of First, us, the it quarters narrow to appropriate with three is behind possibilities.

in this the to don't Second, We last this have or has increase sequential year. restructuring least several pickup this Australia increases been rate of significantly seen work change though quarters, expect at the we and in moderate. Asia U.S.,

in business business. for saw seeing the downward services and we Restructuring. quarter, trend Economic segment and in Fourth, and third an a there Finance in pressures significant compensation-related associated is activity our in-demand in Consulting both decrease our Corporate transactions are our such M&A-related Third,

fourth typically because of end of vacations weaker and at business the quarter a the Lastly, slowdown for quarter us the seasonal year. is a

close, to underscore themes I Before four the I our reiterate want key that strength company. of

First, FTI. the economy fragility as market Steve the expanded in dislocation opportunities world result said, of and the for

are than investing Second, before, more in so talent. ever we

as has opportunities. clients been support they to franchise navigate and Our better never our challenges positioned complex

let's value through diversity organic we the the which remains And recognized Third, right boost best questions. the share to With our talent. our for and up acquisitions when provides sheet us the culture being nourishes that, ones. growth, for shareholder and call increasingly inclusion buybacks see ability your open finally, is strong attracting balance and

go from Our comes today with Instructions] Please ahead William Andrew [Operator from Blair. your first question. Nicholas question

good Hi, morning.

Good morning.

I wanted perhaps with unsurprisingly. start restructuring to

the fourth pick-up having quarters defying of looking a restructuring cyclical not - talked what a ahead acceleration prior past or this kind cadence but just seen in quarter-over-quarter next moderate major You in than of expected seen in to market. the have there that that of and that any the kind seeing expecting several it's is about would cadence what year? of or Any business on thoughts you and different rebound you've maybe quarter,

it's my we give then you and I'll about view talk different a free-to if disagree mean have I something in view. a feel lot here.

than slower There and many that is certainly there, perfect many I for is have this and the think may I least think, world. never think a in I think. general guide would history reasons are maybe my look, times unfolding is in I have expected sense past. to - business slower at say unfolded I anything, our would in multiple than in the people so

in all, sheets but and certainly they on economy of lot are banks don't Europe still on worried there's about. sure some wars are there's a issues to just Yes, balance fragility they're make First governmental and there lot the in people going Europe. to of going have at pressures of a clean-up foreclose in because point, that

It's lot quickly affect a we there a the side that side, company's also how the does cycles. years can are the, some really work necessarily side may does actually it side. extraordinary creditors lenders around that the not doesn't the other other, been light creditor affect It both So, business, primarily it creditor but places affect the in trigger actually in the or And way. have I are where many work, affects the side re-examination. and creditor U.S. of companies think big side last, in banks a whole loans. become covenants in have headwinds in world, And

my people sheets permanently, has - it XXX-mile talk per a and certainly question, realization, So, think that over-leveraged both need think slower elsewhere we can, think I believe people not, your to slower some many hear to be, Andrew? it of restructuring not there at you Does but that comments, I gone and Ajay's our I think, hour [indiscernible] slowly to it of for is firm unfolding themes than it. do I continue are than balance It's it expect. fastball, unfold think, pitches analogy. in may I'm may as there, and so I kind I think least out expected. currently think away that's of may is in And is this and this this unfolding see the will many a scenario certainly baseball those trying a not I

imagine as believe ticked would there are and to I aggressively that's back pre-pandemic and appear you to thought hardly continuing follow-up picking At levels. your same if No, higher quarter. pretty that still But to utilization of the time, guys quarter-over utilization below process would FLC, over outlook then and walk-through my you helpful. maybe conviction to your that it you. down And It's that switching there. Yes. demand obviously I speaks that Thank kind be up. trends helpful? could does

of XX-year short current No, headcount our But, your A, hiring now. look you from expected we on years in the consultants yes, right based Yes, we're FLC on Managing Senior do. have XX-year-old takes and, absolutely means be analogize Scotch the the of and hiring, whether the question. the somewhat parts to just and Managing on and years Scotch, six-year confidence we Managing is get so, that from we in grow are year long-term Directors the hire in businesses. where every now Scotch, fabulous it's here quarter, but the get probably the availability you're we're that the and now. I on business, it to Directors environment for lower you fabulous this you're to your developing are to quarterly whipsaw think right thing say well, business if of six on fabulous I based have bullish the them willing raw-material, hire to fact to Scotch. immediate are and based actually we business we're first having hiring performing of years business of because the would I some season we It just scotch, six-year this long-term it absolutely, not actually continuing Directors look, we in in B, great long-term XX Senior FLC, expect talent, I in over don't that - to those all an results, we quite do But yes asking places rebound objectives. have business, sometimes you today be. trajectory few in multiple If is because don't me Yes. slow right FLC, FLC, But Directors. some But - business, takes thanks were quite

helpful. That's you. Thank

with question comes Please from Truist next Our from Securities. Sommer Tobey your go ahead question.

but understand of sort allowing crescendo asking in and, a Thank of presence trying that And and tailwind perspective maybe you accompanies not in you and of flesh have the peak we you. for want sort expansion to countries multi-year a entirety may in From infrastructure then geographic that anticipate think firm might its to presence of a a from or I'm to profitability? major journey that investment are of moderate incremental when perspective, the in. for what out and a

a Now that's, that's great question.

different there's a that. look look, at So I to couple ways think

same me the to talk Let at look different ways three question. about

of in additional in extraordinarily we order be need over I believe while. the all, any company countries to First to grow don't this next

are fill the I in out. countries we yes, but - have Germany, the have have in we to We mentioned, I those France, mean, opportunities growth we U.S., all countries extraordinary opportunities

ground. the the have on team landing We

as as be. We in nowhere big to need near those countries we haven't, we are

we Ajay so And has growth meet to don't have need or other don't be in for shareholders, to that need we to aspirations countries.

the services at GX, I - the it. G, in this professional think always want is - you to call though the most it in and of whatever reality I we're mean just, geographies - your major, there's major

Germany, though in succeed services reality to people are who spillover, in I who there's, you great there's think in as is know the professional Switzerland. you have people continue

parts You have people of the Middle-East East. people in the Middle in who know other

all do in of little whether a but - infrastructure you a You - a I will countries have Germany, that's the France, great are that if have country to right a go, help and we door next don't those you in services didn't be. of Many XX other those don't those a I countries, as without entire other to as countries your and treat But - have that, grow, professional into any in and look they build-out five even to extend countries. sort bunch you the go to bit? major them but would Middle-East, think have do can, Italy, the we more be you Does that countries, firm does can, - suspect are they in into adjuncts they infrastructure. existing nature, companies, the - we that at years so - you require. if you to more If will have

without we follow-up are I peak let so process from the somewhere dollars course, at based and me absolute within of have a infrastructure incremental trying quarter we that adjunct if somewhere, in peak four, countries a the setup? basis, to don't a, least where could. on of do or on and in capability does, require call bigger not an six-quarter From sort investment a It of you optimal period for peak sort infrastructure are

Tobey. No, no

in back-office our from would not, We I are it we example our right Germany, are in now say in it. not we Germany for take - the not are infrastructure peak in

replicate our, in in centers geography shared other have centers We have locations and development will everything our every in service that we there, are various in not but we either. our service that I shared we early expect do in

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Yes.

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Yes.

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ESG. that is The one additional one

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major are that ESG We capabilities helps and so, transition, buoy firm full-court tremendous press ever a companies is so, make the their and have transitions we there.

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No.

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helpful. That's

Well, let other the say - me questions? Any moderator. me thanks let just to say

firm. or Ajay. all to again and for Thank you further and thank if say appreciate you support it just really you questions. please Mollie for me We out continued our attending have attention for reach today. Let your

presentation. for you And conference with ladies joining. today's We and do and gentlemen that, call conclude we'll thank

now your lines. may disconnect You