Insight Enterprises (NSIT) 7 Aug 222022 Q2 Earnings call transcript

Good morning or good afternoon all and welcome to the Insight Enterprises Second Quarter 2022 Operating Results Call. My name is Adam and I'll be your operator today. [Operator Instructions] I will now hand over to Glynis Bryan to begin. Glynis, please go ahead when you are ready.

Welcome everyone and thank you for joining the Insight Enterprises earnings conference call. discussing XXth, operating XXXX. be quarter for will June ended we the results company's the Today, Chief I'm Insight; is and and Bryan, joining Officer. Glynis Chief me Joyce Financial Mullen, Officer of Executive President

for referring quarter form have If non-GAAP slide XXXX. we being website will is of period, discussing express written live consent be question-and-answer prohibited. call insight.com. the with approximately including find In X-K, will as This call, measures of financial after webcast any of non-GAAP accompanying was the the conference page Today's only XXXX a you be two second and remain refer limited or X, August contain can Relations An that Investor the completion via insight.com on today's do available copy this the financial conference is Any the our webcast rebroadcast accessed Insight under we will Commission of or section. redistribution, presentation and without of information results. at and earnings discuss morning retransmission be this our we you call measures, call hours Exchange it archived will at enterprises and the of is as Enterprises. the call call, Investor them posted Securities copy adjusted. on impact website will the release associated the strictly to When filed as Relations that time-sensitive a our Form not is accurate a on property This and today, the of in website time. call of conference to

results Also, and are reconciliation either our actual note find amounts included dollar today. that press in slide highlighted earlier or presentation growth of to release please currency, rates measures constant all US these adjusted a terms. accompanying the in unless at will issued the You GAAP discussed

following during are SEC. These this in in to reports conference the made that date that filings I required undertake press presentation, of over of actual except this materially. obligation and we are today's and our and reminder, in uncertainties cause slide on call, to forward-looking forward-looking or the all law, forward-looking will whether made update could as recently as risks you will as risks if we statements the subject discussed turn subsequent with call call any of statements detail most new with and no Joyce? differ are events now All call filed by periodic a With As Joyce the on statements information, the begin that, greater release are result on to otherwise. a future to results made and four.

Insight us you joining today. record in you and Thank am Good was that which core everyone, quarter year, to revenue, and from adjusted with last outstanding morning, adjusted much, thank for report profit, pleased Glynis. services. results per I Insight QX with particularly results I'm gross XX% outstanding in share. thrilled an earnings and over in growth very for by our business, services driven earnings operations, grew the cloud

of XX focused we leading I'm devices welcome to in Business Our our scale opportunistically devices. this SVP Anima through growth in efficiencies will Anima is M&A. X.X%. we growth, lead margin This by Development, our of talent and cyber only but EBITDA again year-over-year. deliver resulting on record driven of drove improvement growing a hardware also decline topline skills capabilities primarily earnings our constraints continued operations supply effort, and over an margin to thrilled also primarily QX, [indiscernible]. business operating backlog, Adjusted adding of in basis record which cloud, scale. points. time well was expanding data, in results, X.X%, it's adjusted and acquire was a XX% be for easing attract With the in great to performed And M&A and Not strategy, from new and did sequential

focus around the ever our Global given capacity world, Smith. building Acquisition, first more Additionally, we on technical welcomed our Melissa Talent of also VP

economic we ever, together. the uncertainty, Given ambitions and support uncertain than and is now critical times we goal more that it these clients their as our navigate

cloud, We data, across thing to outcomes portfolio hardware, our for and software, our all focused services are transformation positioned and with digital cyber deliver and our expertise cost-effective uniquely of AI clients. on

and our client map the enhance deeply across and this wanted goals For drive center. move of while operations, stories their example, build maintaining which holding This redesign talent execution, security, rationale that It more success for including of scalability the business of also on- XXX of investment Most data disaster and and cost lowering solutions needed We apart. to union $X nearly program. client the speed the while in client and We of engaged total enhance off-premise all and a importantly, design all client's centers. demonstrate capabilities. the to technical one recovery resiliency of XX/X the quickly with of and And data over and new team members. were business performance. This and experts multiple impressive. our their front opportunity occur continuity like clients to the our and different to this was to transition is evaluating corporate million. data security for we primary are our been online we demonstrates continued segmented remain sets preparing credit project in certifications. this use SnapStart, us we headquarters needed deployed improve to access Insight-developed than depth workloads have the an results tool and a saved IT of center disciplines, And XX this of our the course, We do Their us ownership. of to landscape,

enhance is brings Quadrant deep on a than attracting the Gartner by will in and XXX talent and technical talent. the years XXX of cutting-edge to team and Azure Software investments, expertise migration teammates, track in half depth for clients. for we Including India. the record our cloud year, acquired and added and technical an Hanu of more cloud Hanu Microsoft proven Magic Speaking Hanu adding experts of over recognized last offshore teammates the XX to was technical first month. partner over to developing our Insight solutions our Hanu ability support right providing deliver award-winning

support capabilities XXX client different is analytics. needed Australia. while to in data improving our leading of spread cloud example great this recently vocational with XXX,XXX and students the type campuses, enhance of over students completed school demonstrating Another a in of we engagement that experience our an teachers, With

and of assess project an to clients' and teacher learning, cloud, silos measure integrated and online planning engagement Our solutions Virtual leading of source team This analytics student, migrate Desktop the students, profitability organizations disparate truth. and to required reducing between to course course application to six transition courses the from single survey data eliminated to to satisfaction leveraged deployed Windows created of sources higher all teacher, Developed three student to metrics us months and a efforts effectiveness offerings. to designed weeks. to the which

engaged Arizona. that two to these will and I'm to of allows over retained an benefits recently that team even best collaboration, their environment Our with need AI stunning of takes teammates thrilled creativity. this client to million clients, and design building our The on teammates and to client to drive It work. over implement space more the in estimates based been those which and do to our because have project we to Chandler, design them this our $XX problem headquarters a deliver years will solving, remain analytics benefits. clients. inspire a the advanced of project, solutions deliver success the deliver world-class best believe our and was deliver highly for welcomed solutions we our teammates recently We principles new and

elements their intensity; based and consumption experience automatically be energy journeys. the exactly can over such help peak We with clients transformation provide their indoor proud trees provides on the quality. our focus of consistent XX% lead are they and as which through work innovation challenges how digital our improve new particularly interactive open to facilities ambitious headquarters an including during window And UV which periods; close visualize certified, most sustainability, solutions will as address of Insight's panels, XXX key air and gold to on solar sensors that plants center,

We we over received and In celebrated recognition. vertical modern awards the addition from quarter. spans cloud, into XX our recognitions to in security, new partner Microsoft moving the key that some industry workplace, headquarters, manufacturing also

complexity the leadership, compliance. And Microsoft Year. as his has Year. navigate of trusted was Security Security Insight's Global become We a proud also cybersecurity CISO, end-to-end the under of and of the Innovation clients Change Maker Partner team Point's was Partner our Security for and consulting are of honored of portfolio. security XXXX the and our to in our were U.S. Intel and recently instrumental particularly Award We security Excellence with developing Jason Jason Rader, named who Cradle awarded Year IoT adviser were help VP

which without the recognized companies social for be that were World-Changing recognitions by achieved Ideas positive Insight Award, support dedication our we innovation. their honors Fast These Lastly, Company cannot teammate. of

that first reiterate and used before economically moving as to how rapidly tough like times teammates, world I are going, when uncertain grandmother to the thank we the with and tough, that going we Glynis, evolving. the partners recognize our environment our over I'd half to results. I is But say, I going. clients, hand call back and my Insight am and pleased into gets are So, around the the get

to in resolute our long-term business. solutions fundamentals and our confident value our the of are clients of We about our

market our now positioned this the we'll Glynis. with call invest opportunity. continue I business expertise very turn uniquely to and solutions hardware, will We in are services large to in over across and a to software, significant realize

Joyce. you, Thank

America strong with As we are the mentioned, services We record an quarter. outstanding quarter. pleased very had had second for performance North and results our both in our products and business Joyce

services had were acceleration strong particularly hardware and expected, devices As we very saw we and in growth.

be our can earnings eight. I'll found in results slide and our operating All start on presentation, of

of Services in the the For net up second and debt. cloud grew driven quarter and of core quarter constant sales the in and to net prior XX%. of delivered profit XX% were over year. Product net XX% growth currency in XX $XXX of Insight a in our primarily year-over-year, of Services increased year-over-year, and cloud profit hardware by compared sales in XX%, second by currency XX% in compared Gross XX% XXXX. gross devices. $X.X by quarter margin million and partner second XX% profit Gross dollars XX% driven and second the sales quarter Product services U.S. or increased to driven prior consolidated year. U.S. in results, up decrease net growth was year-over-year, core with gross in dollars growth services points in XX% services. grew sales increased constant partner XX% services Insight year-over-year billion, growth basis XX% of

XXth profit, SG&A up the Our gross services and cloud was months XX XX% in XX gross And in profit dollars. currency also up prior quarter basis profit a the consolidated total basis. year. U.S. gross profit ended XX% with our XX% year-over-year for gross XX-month up constant second XX% expenses were trailing from for of of on June trailing points

up quarter GAAP of million. net year second to dollars. earnings up sales, and from earnings versus $XXX quarter. a were year-over-year in in SG&A basis, $XXX On Adjusted from in basis and increased U.S. percentage currency prior for adjusted XX% operations XX% operations GAAP XX% the million, XX% a in constant the and SG&A As XX% were both

up share second $X.XX, increase XX% currency and X% diluted quarter, of a year-over-year. the was basis, dollars was in adjusted On an in per earnings $X.XX, per GAAP earnings For share XX%. diluted U.S. constant

like more the XXXX. rest to as our operating little on in of QX color expectations I of our discuss backlog Before I'd the for segments, well as a performance provide

backlog device will in backlog in device remained our to While QX, second backlog expect levels elevated decline chain, supply improvements continued flush the of XXXX. our in current total the half the at QX.We started with hardware device going into

backlog QX. in build infrastructure to continues side, the On

that However, expect also see to all backlog estimate the sometime is clears. will infrastructure and that and supply starting to be start in chain to XXXX improve backlog decline we QX it in before

year-over-year. outstanding segments with billion, of record to Product net our had now North XX% sales and sales. driven results a hardware XX% on an primarily America. with of sales starting grew by America Moving operating year-over-year, North second quarter $X.X XX% in increase net up net the

than related While double-digit we was hardware expected. devices, in higher this and expected growth primarily to

growth device will year, we As in over we slow discussed the of the half have XXXX. believe second

Insight driven from Selling administrative increased XX% by higher XX% year-over-year. operations increased solutions. services grew and increased services XX.X% profit gross XX% $XXX profit sales Gross and million. grew $XXX to infrastructure driven primarily and core more solutions driven assurance. available. XX% million. sales and year-over-year by primarily net by Adjusted accelerate Services year-over-year that North grew quarter points, our earnings second year-over-year, was by cloud changes to and America expenses from compensation However, year-over-year we GAAP becomes higher costs, profit driven variable growth product Insight Services and and expect year-over-year, XX core services gross and from in gross year-over-year, will gross investment XX% personnel accompanying product software higher primarily services profit primarily down as Product in XX% of in in XX% the basis margin services at mix. earnings and teammates. operations increased

and quarter, Net driven Adjusted Gross Moving constant from $XX $XX services. XX% EMEA. sales and than $X decline million, earnings of APAC, net grew quarter X% to currency, sales, GAAP net $XX software constant -- of services, million hardware, core fees earnings the grew cloud from margin XX% cloud net year-over-year due Gross constant to operations in operations due gross profit constant up This currency. by up solutions. in on operations currency. GAAP sales. of year-over-year in constant in second higher of X% declined sales primarily agency quarter sales $XX volume services to XX% Insight to XX% in on impact were profit in increased the to XX% in to year-over-year X% in earnings the to million. decline specifically product from a in currency, year-over-year earnings profit higher On in core currency, driven million increased currency, sales adjusted by million. higher solution in second to constant from led in software. million lower the $X.X software, grew and operations

our Moving on tax to rate.

Our effective in to XX.X% relatively XXXX of pace flat for the quarter XXXX. XX.X%, was compared second

of million details months in cash the compared the in first of performance. six our XXXX, to In $XXX XXXX. million operations cash cash generated the flow Turning XXXX to of our period of year-to-date $X yielded same

the as receive is shorter terms growth to have previously, pay cash us our clients. hardware we when cash partners payments including with of the more our from This inverted, growth, our our sales, early In half cash from distributors partner was highlighted cycle drive more allows of we in meaning decelerates, in mix, in periods our DPO volume an cash from activities of volumes with As DSO. cash flow on conversion result result than XXXX we a I increased future client DIO resulting inventory by in XX for projects, lower had including the quarter and of XXXX, a up of that was XXXX, in million increased we XX days, in just terms, a days offset increase In invested distributors, to decrease for securing facility inventory quarter conversion technology partially projects. related second second capital as client expenditures In and cycle of is hardware growth driven by while increased XXXX, hardware in decrease with changes operations. inventory, primarily net future investments. used flow in payment in first $XX discussed, operations

million real the sale prior in received we As from a $XX year. reminder, assets in the estate of proceeds

discussed not Hanu the million in that earlier. used prior any of have year. We also cash purchase equivalents We net cash to did and $XX Joyce acquisitions

authorization. trigger the the a the current. and continue of under shares to and under foreign outstanding At the second note $XX.XX In be XXXX the and repurchase total to $XXX we convertible amount quarter cash $X.X of exceed price year $XXX our end of outstanding had have current approximately to option second continue half of balance repurchase million end senior recurring the our of $XX billion We had We million, authorization. $XXX balance million outstanding principal of convertible which of convertible quarter, including was in cash debt, remain of $XX plan in at $XXX to subsidiaries. of resident We this share the quarter, will continue the quarter end as holders our second at to the the million debt of of prior compared market notes million. classified million

Given holders near-term. note notes the the their convert market of notes, the in do that not anticipate we value convertible would

As we're less agreement, we compliance charge fixed coverage debt Under covenant taxes liquidity, flows ABL level. comfort includes a interest. ratio, our cash XX-month times quarter expenditures, or leverage coverage, position about within than exiting trailing our is cash and with EBITDA to capital the think our X.X lower EBITDA which primary a at

we're times X.X requirements of comparable XXth, and On with $X.X and minimum requirement and terms. at our we're XXnd, increased X.X billion can billion As and times support ABL amended the from to of the June July better capital we facility confident extended we capacity liquidity or needs. $X.X our

of we million future fund billion we our available capacity to our ABL of $XXX facility, under have approximately As today, ample growth. capacity have $X.X and

XXXX, sales the about growth. guidance think deliver year first double-digit net to you As full of we for low expect our

intangible the to effective $X.XX. to $XX adjusted to share of assumes earnings the including of million expense Joyce. acquisition Capital new shares. related million, and average our expense planned now This of change to of of be assumes million $XX an of of This shares for outlook year no back significant severance full year outlook XX.X for in transformation full $XX corporate instruments. and per the $XX or XXXX. expenditures We will $X.XX I million, full between our for and million to diluted and our XX% expect rate of the no year XXXX interest debt $XX acquisition-related restructuring and tax completion headquarters between $XX approximately million, excludes turn and share expense repurchase count assumes million after XX% call

closing, our other. and each their In to thank to partners, teammates commitment Glynis. I'd for Thanks clients, our like

clients, for Our help trusting journeys. with to them insights their transformational

great as support optimistic ability our XXXX their to line we business off and our solutions solutions the even your our is modernize concludes delivering now for comments, expand to continued This and to our collaboration value partners, in clients my Insight a will and to are we open innovative about Our for more clients. they and and deliver and questions. start transform.

Instructions] JPMorgan. comes from Joe [Operator The question today Cardoso first ahead. from please Joe go

morning implied drivers both into profit discuss perspective. an Can guide; year and the line and baking thanks My for the good Hey first you second the a a your primary take and particularly question. given the seen acceleration of first heading full slowdown are maybe as guide, that top at you're in just what half? into dive midpoint first the the versus the momentum everyone look it the appears solid if into from the half the you're in bit question, that half baking I of you've

Thanks Joe.

the year based of said the in we second of the we So, the what stronger envisioned in at half the the versus year, performance the start our to XXXX. primarily we second that be year of half of was half had on going first were that

through the in of year XXXX. that have what play had second were made And kind growth half an out, to to year. and experienced flowing we was of how going the are of we growth from regard the assumption half levels XXXX So, the lower we with in first

That not XXXX, just North envisioned example. pace. something go was of we has was first the meaning would it quarter QX strong continue In a to -- low year-over-year the relative at in in out XX% through, quarter of as that America, As in we -- compare gone that XXXX. we basis a the as had that grow same growth have anticipated, XXXX as to we first we hardware growth an on played the

in is assumption XXXX growth more our we have half that that So, second be the compare half going is assume we to XXXX, second the to in that of muted. relative our

still we're For the points basis growing of full over XXX or XXX the ahead market. at year,

it's to go So, in -- going our a we necessarily say into the have think was there, we what we lower also you be say specific wouldn't I Primarily that that that a I That's half through total would it's accommodate that compares percentage higher second as relative because still of the will It's to of XXXX. slowdown. hardware I devices talked had about margins XXXX. case. the in have get half will just timelines the not infrastructure are anticipate be infrastructure to able as but not that projects We margins the going the chain, and deliveries ease, of supply that year. starting to to We're half. used to the with first half relative to as necessarily We're to they long services the of of associated drive is be. going do going to the infrastructure. year higher that's in second gross second

seeing And -- just I What managing hiring. around you Yes. And it. everyone professional my seeing question planning my and stories for slow around I Got reason to Totally. new asking are The second just demand guess second services. I'm privileged is enterprises down is then then on here. guess

Insight they Thanks. just due curious or a kind to dynamic? into leverage to customers tailwind as if your So, increasingly that of translating look for transitioning that's

Joe. you, Thank Yes.

So services yes, strong. really, managed services, sure, is professional for transformation demand really for digital services,

are like Insight looking essential I digital performance. think and transformation skills own to capacity partners their is augment because clients own their to to

a this -- constrained So is labor market, around exacerbated by a bit and skills. specific especially,

processes. more a how those design And so also lot lot in leveraging there's a And to try figure out would I automation say interest -- labor content Insight. there's interest so in of from to other increased to also services

color all guys. Appreciate the Thanks.

next from ahead. go please Stifel. of Sheerin Matt Matt, The comes question

you good morning. Thank and Yes.

the the up year. the for following last on rest question regarding the Just guide revenue of

products, be worked the that of sequentially. looks infrastructure So, half up just down that you do function you if the down? expect solutions is that at products, -- like primarily first the versus backlog second a PC getting in half? to refresh the look the And you it will, Is that be you'll and if

Okay. Yes.

in is it quarter strong. So year. devices albeit a as --. is over This very around prior sequential strong Very, decline we very, it growth very was hardware, hardware also particular

Our new partly not bookings it's assumption in, of not the second the as half, same has strong while are started year the second flush. year. getting the at of pace coming because we to half devices is half had in in the first last And that we're that or backlog the

that, So, we going a infrastructure which to margins. in of an to related be margin is half be the sequential decline it which specifically the is anticipate ultimately increase with in yes, would devices. projects We associated higher do see and year, second infrastructure -- higher

then that margin margin that Yes. backing may are gross just there? one-offs those repeat of looks gross that not at the in sort June maybe it. Got strong not XX%, but year-over-year, like Were into that services And sequentially, on be it the levels? certainly there you'll very any itself? boosted side up drivers And after some there maybe

is second driven that our by So, Microsoft June Microsoft year-end. the in gross margin fact quarter primarily is the and

was we June is quarter, of up talked our points second is that. sorry, tremendous the a with cloud quarter XX%, we percentage as total strongest basis Cloud always associated So, typically and XX as -- growth saw about. GP

the XX% of typically would is quarter. wouldn't anticipate rest because I be year June quarter -- So, the second at level our that the that highest

slightly gross had gross the of when the in the first the going some year gave margin line. of we we that However, second gross -- the lower in higher first year. margin were more devices quarters to margin two lower up than we be And the up think half prior recovering mix. will I the of hence, Net-net in be year. half into for margin gross was a the our year, we We're will be as that going

Got it.

color Is out not seeing it helpful. hardware of strong but you very And there refresh the in some the you're North then regions, America so cautiousness strong from were what that's give us in maybe cycle looked just customers? Is of were more terms like sort down. where of sales in EMEA, terms played again, you on Could macro? there? Okay,

was Yes, more in we've in business quarters is EMEA. in a North growth in in EMEA's I than again. software several mix incredible is would hardware North hardware growth. And hardware our and mix say America That's America services that much row, stronger really strong it of oriented. is seen

fairly public business, sector a in significant also business EMEA. And hardware in the that down. was We have

that just with recognized. currency, But for pleased EMEA you say software And we're what constant I So, would is driven and performance in I it's with by overall, consistent as services. really primarily our said, sure.

question gross Okay. regarding margin. my last And just

seeing is severe the On like up, the looks ASP pricing a it side, you of and demand we're strong that And the products now the pass-through. the competition that's constraints. sell typically go and given price less

tax some margin pressure? So, as competition are things like to more [indiscernible] eases, are you seeing -- you expecting return a in

sort -- of enjoyed the ASP Not market we particularly. we participate built. higher of business our have is most of in the part generally mean because I custom

we've to without very and successful objection, our clients increases continue along passing at to those that. been to do expect So, cost would we

Okay. very Thank much. you

Matt. Thanks

go from comes The Catherine, James. from ahead. please Raymond Huntley next question Catherine

Hey, question. is much so Adam for today. Thank for on this taking our you Catherine

Thank being Thanks for you. here.

environment small little and demand First, Joyce, PCs? large on across could you for the look enterprises environment what and like touch bit that's you does but businesses? I know talked alleviating, demand how about supply a the PC

Yes.

significant far, haven't I significant haven't in declines we seen -- We seen mean, demand. so

on very and early also the so are part So rates -- XXXX far, for haven't those very, of strong. we declines. very back starting side we year early and as back And growth the seen very, compares, to significant this the device half XXXX the strong slower on Glynis of have especially was see half compares. mentioned, we But part of

Now, at carefully. that very we are looking

lot But demand. Glynis We as devices, still, of are reasonable inventory flushing a we see in noted.

all OEMs Again, space, there. forecasts -- don't are all the participate started that of chip at a forecasting sort that we look and the you unit and decline. providers consumer the if Now, in the is so since

cautious being We about are it.

of end to anticipating slow that So, basically year. near so we're we last flat pretty will the the year. would and say, holding devices are decline But far, I potentially

all so to you you first for XXX could you technical color. Thank half? in expect perfect. do And a that on little hire the experts And Okay, then just hiring bit environment? the touch incrementally much the just hired here given you from

We the absolutely, data, skills technical areas especially AI, around hiring, are experts specific continue cloud, going in to and security. of

on M&A our focused So, actually we continuing more acquire opportunity are strategy. and of uncertain at we're market potentially an using to looking talent, this also

Awesome. Thank you.

from ahead. Anthony comes Lebiedzinski Sidoti. The next question from please Anthony, go

thank the and taking Yes, questions. good for you morning

morning Anthony. Good

good Hey morning.

first, But so notable typically at and in guys to seeing I far that. any are levels? So, you public as as as your you sector I so -- revenues -- out demand on your SMB, look versus Just know get curious take changes enterprise group we the client guess on. so the versus XX-Q, break

say, large would I sort a it's of a So, and space. corporate generally, it's enterprise -- very

We are the extra is mid-market very a more commit few Certainly, space deliberate large a commitment is to seeing or actually a strong. slightly project. strong. holding far, clients demand really so and quite week a take thought slower process a our two little to cycle But projects. In to

really is space quite commercial Our strong.

corporate I we would of expect there So, And seen stay point we an view at topline point of a slowdown to say view, haven't and outlook significant all. from enterprise strong.

comparison half of pretty against especially year, some the back the in around tough devices. Although lines noted

-- QX, in as well. performed all Anthony, so, And

it. Got

Okay. Understood.

EPS take we think of how the out? as sort guidance how that now, from to then if shake midpoint operations? should Any your And Okay. about estimate ballpark of could were we cash to

slower there's -- [indiscernible] -- to deceleration going in that kind the start occurs. the we're to is generating that in and going decline that we're say half. I of that be as as going hardware to sequentially would that cash second hardware going growth to business be

to start the to of year. -- towards think So, the we QX is would we go through from flow a we where envision flow that be have territory. in year hardware would as that able should the going you of see the rest rest performance But give the given visibility today, we decline number will you negative positive really as to through of it see you operations today don't getting enough go declining this cash firm the end I operations million up. to cash from as from $XXX it that to

moving Got it. lot there's pieces understand just there. of I a

increase. Sorry,

decline, get-- I we going get The will lower, and negative to Sorry, said it's increase.

-- Right. on I just yes. that as how And relatively far or EBITDA the understand basis, Got Hanu about you acquisition, the contribution as from you. Right. acquisition? And lastly, revenue us Software an think should was annualized all help then understand, right. it but can I we small, know

No impact.

serve us teammate the capacity it's better, a excited number. financial incremental our the help to We're going about not customers at meaningful but additional that's

Got it.

luck. right, thanks. well Okay. of Best

you. Thank

you. Thank

The Vincent Research. next is question from Colicchio please Barrington ahead. Vincent, from go

a the on question acquisition Yes, side.

And change current pipeline of is multiples of the is any valuations your priorities? there easing any market, terms in out meaningful? there? Remind So, your us in of

Yes.

we do So, have a pipeline. meaningful

do believe their focused because scale opportunities and -- And cloud are on We looking scale security. our AI, increase for capacity and skills data we always that to building our and data matters. in we are

say would and we next think will anticipate sellers So, of not but of that in going they over six devaluations, opportunity. the have be the to months, that's terms moderated we multiple far, an the I expectations

Thanks for that and one. one last

I folks. but has of roaring easing of know quarter? status last anyway. I I'll Any whatsoever quo been skilled or especially inflation ask the the with highly think in areas sort Wage answer,

of really. of depends on type the skills kind It

those of in mentioned, some I those in just skills and are that constrained So, high demand. pretty areas

those and generally like or We seen of in that of AI, wage have haven't yet. requests. hot moderate inflation, some data seen some moderation requirements, in terms areas But we

answering thanks questions. my quarter. Nice Okay. for

you. Thank

no have further questions this We time. at

Q&A concludes this session and very attendance. for today's your you conclude much call. Thank thus So, today's

disconnect now may your-- You