Insight Enterprises (NSIT) 3 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, welcome to the Insight Enterprises Third Quarter 2022 Operating Results Conference Call. My name is Felicia, and I will be your operator today. Please note, there will be a Q&A session at the end of the presentation today. [Operator Instructions].

I will now hand over to your host today, James Morgado, Senior Vice President of Finance. ahead. go Please

I'm thank conference and company's joining Insight of XX, the results of Vice Welcome, and Finance Today, you we earnings CFO XXXX. September ended call. the North the Morgado, will Enterprises Senior for President America. everyone, Insight quarter for James be operating discussing

Financial Mullen, Joyce is Executive me and Chief Officer; Officer. and Joining President Glynis Bryan, Chief

and or filed a it the not insight.com the you you have copy posted section. of Relations this earnings X-K, was do the under Exchange morning slide company on and release with presentation Securities at Form Commission that If the Investor our on website find will

call Today's this is can the at limited associated be our remain of that call, information webcast time. X website completion as X, conference being XXXX. our via a webcast call conference available question-and-answer An This approximately page live after is and archived copy and the of call of be today, insight.com. accurate including website will of time-sensitive and the for November the will hours period, only accessed contain Investor Relations on

results. This call redistribution, call or express we the will to them we Any non-GAAP any discussing measures Insight is adjusted. to of measures, financial When this financial strictly the as non-GAAP Insight third of as written discuss today's property form without of Enterprises conference call, Enterprises. in consent we quarter rebroadcast will is retransmission In the prohibited. be refer XXXX referring

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

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

the With X. call Slide the and will over you're Joyce, turn Joyce? if that, now following presentation, to I we'll begin slide along on

another you everyone, another report Good in had joining Thank to you thank volatility, us solid as XX% up results the driven and and the despite XX% much, by that cloud. we growth very quarter James. delivered for double-digit year-over-year We pleasure gross -- is profit morning, expected. of It's growth my today. of shaping year quarter economic

and basis points a expanded XX.X% on to margin basis. Our the XX gross gross last currency constant profit year-over-year over total grew XX% year XX% and

Our a adjusted compared grew earnings term currency on and constant year operations basis. million of to XX% XX% last $XXX

On category to October ambition and clients our strength we of in operating in quarter. strategy. we an the create our software at a become very integrator, and outcomes million basis pace our leading for together increased do bringing services Our our for XX, points value business defining the this drive margin NASDAQ solutions by intentional and solutions to and X.X%, industry. XX We adjusted that setting new generated in by shared the expanded Day hardware, cash our shareholders. showed to We hosted stated Investor and flows $XXX and and bold the EFO

deliver differentiation culture. and Our clients, execution X of captivate the our strategy is pillars: on solutions, focused champion sell

in points briefly the pillar. cover key me Let each

continued satisfaction delivering them. by client NPS, exceptional clients, results First, for improvement measure of captivate in our

transact and automation will and get answers addition, investments e-commerce In self-service. in our to faster our via allow clients

[Dell] solutions. Second,

are capabilities solutions portfolio. improve We ability represent robust team's our our our transforming sales to to

coverage will services to to and buy and client solutions. with redefining skills services, propensity on our and plans needs account to our match streamline focus compensation We to continue we are

on evolve deliver exceptional technical IP, heart solutions and checking we very a differentiation. providing solutions breadth is our all continue capabilities us, compelling scale. innovative, for everything of about through values intentional our just through leverage strategy culture. mentioned And This strengthening I This scalable Third, plan to culture. high-performance of our opportunistically to solutions M&A and our our advantage hunger, talent strategic harmony reusable has adding accelerate will to and focused been our We the portfolio. fourth, and

report our also key will and we over our will quarterly. years, goals we We next on indicators performance performance these shared track that use the KPIs towards X to

of our grow where achievable because Insight has the the more core the capabilities motel, edge. fastest-growing the specific and growing expect Insight market, data, faster cloud, faster areas in to EBITDA very are cloud We clients profit than even drive and gross areas AI, services the market ambitious and to need cyber, building goals been

Over other the investments been acquisitions the Insight to that past company. organic capabilities pull through together has widen that lead. position of the we ahead had to years, decade, for our Insight foresight many intend curve and leaders and unlike any

mean one live strategic where I clients couple becoming client, these give of talk largest I chains you me one partner specific about in I'll So a exceptional of without country. value. captivating we've the clients, the into we of grocery highlight pillars cannot a When put let because action. examples deliver

has few last disruptions, chain. through of supply their the Over years, gone the course, significant industry including,

consumer management buying a XX% of supply to of deliver goal As and and strategic had a digital their grocer, sources. growth from they data to their wealth have chain pricing patterns access around a

in task a way goods their could manufacturers. sold their optimize and first that to gather data and monetized all was allows to be also to them first Our second, decision-making consumer

demand of next changing sustainability, time the real dimming in well to aisle to allowing process data the in consumer in light intensive prices. work project, to sensors to create some adjusting pricing, are another that intelligent client if In their freezer respond the as customers created aspect an as supply to this was environment. of such put or alleviate as to digital that not We temperatures task near the in The manually we within shelving installed of changes the stores remotely. support

clients' transformed stores transformation mobile with to did which the their Our to They introduce their also Insight have digital not reached stop clinics customers. they to in their initiative out application, engage build grocery health has how an in aisles. health and

with be years us who needs. an that. have most just transformation to critical solve example earlier, some over turned to As this I is of a without, A said for help and XX partner to clients of client we we worked live want can't our their long-term

this example lives. emergency in great recent country. Delivering differentiated pillar This solutions the service of in about literally our the emergency one the pillar services with strategy helping and action migration in is is another is the providers of project all largest we cloud a of save one did team

customers more than Delivering wanted and as people. events combination deployment. hard delivery client solutions, as and a who BI and vehicles We of a for data faster us needed all unlock in shift and to manage assets real-time and personnel utilize that operating X response infrastructure. and and of impressive. such time equipment incoming system placement show Our improve ability the pieces emergency trackers, market-leading with our funded why view to cloud-based weeks. tool working and millions We including of day, incoming work decisions using time. calls, They to rapid to in of the technology. data, them of transformation and the a project were own a our all to from was to X allowing of emergency of including Power and support these to at the and We emergency kind every leading bricks safety a report real dashboards legacy citizens technologies, Insight results data people of a to staging improved accelerate XX,XXX to is hundreds are so the unified facilitate And the make as power results to a called million IP, come on months to decision-making data to accelerating of services resource of clients well developed their GPS lens times data vehicles solution

team, our Gartner team discuss Further a Delivering Services. about successful Mastery is were differentiation businesses digital for more than disciplines. our and Insight's Insight, global This industry our engineers Conference. the technical defining visionary we for transformation part outcome of Magic showcasing of technical and practices X,XXX from These globe experts Annual the leaders Quadrant exceptional spanning and multiple Asset a the modern whose are best have our clients talent to XXXX the across talent architects, organizations. conference company named recently Managed and at and developers Xth Management future of talent were skills Insight and Software in to the of accelerate gathers for as technical we innovators,

Azure recognized services. and workplace in managed leadership and technological in In software migration fact, Gartner to have Forrester asset modern also addition our

inclusion into great without that's our we be execution their offer place solutions for of clients put teammates inclusion recognized and Our to of as as the cannot disability And in work experience. index. XX Europe disability best delivering on to hearts employers proud why the and place teammates. one of accomplished be top our a a so best America's by best expertise the souls workplaces client Forbes successful The the we're to

of We over [Technical like to our solutions the Insight's continue solutions building to Difficulty] expectations. captivating strength exceptional talent delivering our macroeconomic hand financial culture gross become the conditions, selling through had of strategy Glynis, deliver with to and Before profit strong leading the call the quarter value. solutions differentiation on another and innovative solid I we portfolio, our on minds I'd Despite by and scalable to summarize. outline clients, hearts given integrator with our

review hand over to performance. call the details I'll Glynis financial our of to the Glynis? Now

Thanks, Joyce.

on and to gross had we [Technical are Difficulty] As we Joyce mentioned, in deliver the In profit as growth the XXXX expected. quarter. quarter, cloud we track double-digit in third results

fuel impacted and than higher quarter per last expected. remains flushing macroeconomic and supply still particularly continues more while exited year. and earnings discussed high. for during quarter, had approximately our all-time chain seen third the on concerns prior demand, third an $X.XX normalized these improving, our and slowed the backlog backlog interest to interest the expense interest extended, devices networking we supply adjusted at infrastructure with facility our In we As we we've as our is recognized are chain improved rates and in share quarter over quarter, hardware the ABL with in for to by Inflation decades. devices diluted rates related areas Conversely, that

in primarily the the currencies, against region, our currency depreciate certain euro impacted British the particularly mostly sterling. earnings we to by the recognized dollar. EMEA continues that diluted British quarter, pound $X.XX, to Additionally, adjusted sterling per the related In losses share and approximately pound the third

consolidated for in constant and up and Net XX% in compared in Now Gross earnings X% on found third of moving compared $X.X to quarter strong quarter to year. the which up for Slide can the in of be in prior the million third X% our third presentation, third U.S. in quarter, on profit billion, dollars X. very the U.S. currency increased were a XX% the to starting quarter results accompanying $XXX currency sales XXXX. dollars constant

up profit and X% manage year. as services deliver Insight gross on Core prior services defined core was we behalf our of services Our clients. from

grew higher the X of software of increased by an Tenet growth in for sales months points of prior constant by profit up driven quarter. and were with infrastructure increased sales. device gross year-over-year lower XX%. and and dollars. XX% compared year. million to Gross U.S. good in margin basis XX.X%, improved XX% expanded increase SG&A X% year-over-year, which profit $XX profit expenses the gross sales, net up year-over-year, third profit in XX% cloud third XX Services on was for margins sales by Our gross hardware driven quarter currency

for operations basis were and the the adjusted GAAP were X% quarter. quarter. year-over-year versus third a earnings $XXX year Earnings percentage to sales, of both on for SG&A XX% a increased basis SG&A As in the Adjusted XX% XX% quarter million, from $XX million. up operations third prior from net

an million, margin For year-over-year, $XXX points prior adjusted and year. basis X.X%, XX over of up EBITDA the third was XX% quarter, adjusted EBITDA was increase

per earnings adjusted $X.XX, in currency X% year-over-year. terms quarter, constant and X% third was dollar the U.S. share For in up

losses a X%. As the and I was per increase for On includes foreign interest GAAP of approximately foreign of mentioned, exchange quarter, rates of basis the previously diluted impact this currency, earnings $X.XX, $X.XX. higher an share

$XX.X XX, Net up was months billion, sales XXXX, Our $X.X consolidated results were up September are ended as XX billion, follows: XX%. for Gross profit XX%.

up gross million, core profit Our services $XXX XX%. was

a increase points. GAAP was earnings XX% XX% of million, gross up per Adjusted EBITDA up profit was SG&A operations of diluted higher compensation gross prior XX% XXX to and was from operations $XXX flat earnings X.X%, XX%. quarter, an share EBITDA points variable up earnings profit, diluted Adjusted basis, expenses million, basis an by from XX%. XX.X%, XX adjusted cloud prior year. to primarily On was up year-over-year, was of $X.XX, earnings year. margin were personnel from On $X.XX, was share and $XXX margin $XXX Gross GAAP increased compared the XX%. increase basis were driven costs. consolidated XX% and per a up up were XX% million, Adjusted basis $XXX for million. Our

operating from year-over-year, America. GAAP profit [teammates]. starting million. internet our by and by software prior gross year-over-year America year-over-year had to Moving and higher services Gross year-over-year gross up of and strong Adjusted product year-over-year, services. increased in third XX% changes increasing grew -- costs, on XX.X%, Selling of core gross primarily from solutions investments XX% profit in North million. gross XX% higher $XX primarily XX% infrastructure each earnings cloud Services and points, margins and increased our driven increased $XX profit and and XX% compensation administrative primarily a by year-over-year, product profit XXX segments grew operations basis and services primarily quarter XX% North gross to with driven solutions personnel driven sales. at driven from and results with to earnings variable operations expenses by mix.

constant million to $X year-to-year in -- gross from operations X% earnings assurance. increased earnings services GAAP operations $X Moving currency, software million sales, constant year-to-year led from solution. million on to down cloud in currency. $XX to of due gross software primarily sorry, EMEA. were from to of due in $XX net XX% Insight million. Adjusted in million. constant of up from the profit $X On Gross from year-over-year to profit X% profit quarter, and XX% grew decreased operations GAAP declined million, to year-to-year volume core operations earnings currency. $X from to primarily million constant currency, APAC, declined adjusted X% earnings higher $X This to X%

Moving tax rate. on to our

compared of in was for XX.X% tax XXXX. XXXX the effective Our rate third quarter flat XX.X%, relatively to

we million from quarter same call, the $XXX we period growth X cash this slower $XXX As versus to first the our XXXX. million This million $XX total hardware the prior discussed flow flow in in months second used for quarter in on reduced in third generated quarters operations operations. cash the this in compared to year, used in

us pay a day DPOs. in capital result two mix growth of up from invested partner In increase cycle highlighted investments. the our XX-day XXXX related As conversion is our a seven offset was This quarter payment we partners early conversion our more increase of quarter have our payments receive we in terms a day of inverted, while we the including $XX allows XX and cash on technology with clients. flow meaning to more as net DIO first previously, and terms. a shorter cycle we operating XXXX, XXXX, In XXXX, of days in in in hardware driven flow decelerate, changes and to cash third cash of from the by from in the million days, a sales facility GAAP cash distributors nine months volumes was used decrease third growth, growth basis, In in nine partially of DFO, hardware primarily periods in expenditures by and is cash increase hardware operations. on activities in our drive

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

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

repurchase [XXX] share our under outstanding repurchase We million to plan $XXX have We authorization. authorization. approximately

the we in $XXX end quarter, foreign resident $XXX of of our had million cash the third million, of a was subsidiaries. At which balance

outstanding, $XXX total at prior senior the the did quarter, the notes auction our notes million debt including our year nonconvertible had a of from end $XXX compared cash million convertible debt $XXX not of the at We quarter the and to third In million. quarter holders. end of of of the convertible exceed also

As a result, the liabilities. [exchange] amount was reclassified to noncurrent

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

XX, requirement September support times capital we're of of needs. X.X liquidity can minimum we confident were at As and we and X.X requirements times, our

available have of fund facility, We billion future $X.X ABL our executed added $X.X with under to billion approximately QX capacity we our and growth. capacity

Before we progress will October, will results in you categories, And guidance, categories, move our early we so forward, these to shared progress. measure going our XXXX our can at Day. -- our in Investor you so report measure these on can report we we KPIs our in

flow CAGR adjusted XX%. net approaching free present teens, XX%, from invested are defined X%, XXXX income profit the minus range the Our CAGR XX% expenditures. gross CAGR of also operations flow as margin profit to metrics being the a in adjusted flow cash cash diluted than share core greater high greater in return cloud earnings Free high capital EBITDA per and teens, cash on a capital of gross as than in X.X%

outlook outlook year million [assumes] between the full raising our adjusted effective year estimated of repurchase significant about XX% think our expect by expenses This million partial end lower completion expenditures and $XX the of $XX.X low an to assumes $XX.X under and average $X.XX expect the the an year and or acquisition and deliver in $XX our and of diluted current Capital after to XXXX, million tax $XX related million, rate We're million we instruments. growth. As net to million to expense $X.XX acquisition-related excludes to for guidance no recent the expenses between XXXX interest of XXXX. assumes of full severance $XX of we no XX% range count debt share authorization. an sales restructuring earnings change share million our full year our of $XX approximately $X.XX. of for transformation to intangible for full double-digit for be planned of per share This

I'll Joyce. now back turn the to call

Thanks, closing, for to I our clients, our In support their commitment Glynis. each to thank clients journeys, our for like their partners to help innovative to partners other, would and collaboration for trusting clients. Insight teammates in delivering our solutions transformational with and continued them our their

industry. We have defining a become stated solutions our ambition leading integrator, new category the to in the

our on have We we're way. strategy outlined and our

We more and the your are committed we deliver even will now line our comments, value concludes and achieve questions. open clients to transform. and as to for this ambition modernize This they my

Instructions] from Cardoso Joseph JPMorgan Chase. from [Operator comes first The question

Can we're now. for specifically normalized to confirm just that or First infrastructure of there, relative me. at whether then you record devices? you levels noted one backlog the we're backlog And for back at levels specifically,

that time I down? peak Have about we at However, line how for about a should this And point? think then And reached the we backlog have then bringing that think should how we follow-up. around that? the

are take highest an And I issue ever, know normalize call not terms large, from are what time. I'm The device say, by view, sure. XXXX sort that some There this like but to we'll infrastructure still extended at definitely levels, It would with, the and lead But in going pretty So think, behind we've backlog So in And think, start it right? peak are of we will I our to but certainly close times. quarter point flattening. on hesitate when flattening, growth level certain this to backlog not. I now. I or it's products whether is of just infrastructure the seen then we basically just peak by And at is clear, is yet, is it's -- us. to it that of to history, see for don't I'd is of probably. it in seems think, start

sort think through it's of first to into quarter. the be I probably the half, third going

this for right, margins the And of into math guide follow-up, for quarter. the December getting If something doing midpoint my heading is Glynis. third more then Q, that my think and I for implied I'm moderating the I'm are

So fourth step what's I'm confirm first, look And driving if am typically -- I sequential can the Insight driving up then that I particularly that if thinking sequential that given sees into about moderation correctly? second, margin heading correct, you what's margin if historically, quarter?

would So margins to because get I moderating. not it say are

more the expenses thinking below than EPS if I an in primarily think perspective the have, about debt, higher that we terms guidance. to expense related it line we have you're on EPS interest typically from of

we is total and we fourth previously. would than EPS is think I for meeting had interest that is expense quarter expected growth have have the that what higher the moderating

if then just picture... could quick throw one And bigger maybe I

Does that help?

help. tailwind Yes, puts if about next on could mix margins the Should into think year? we're in as throw higher-margin that about here. solutions And then one infrastructure bigger-picture dealing How that heading as particularly a And the does takes trends into services? XXXX, margin kind are next from more of question and I of think headwinds here. should sticking away margin context of towards the towards Heading year, as and being what that we then still just devices and tailwind? maybe the we well

give specific I'll XXXX, guidance going you but out as not tell QX that around had We're played we expected. to

forward. achieved QX second that Therefore, results. that half They infrastructure believe we go said that percentage in higher we margin we networking have still more of that would and expansion So margins. we we an was muted we growth had the in is thought higher second going that of have had be call, QX the a in we sales expected as We to device our when example quarter a year.

devices, Going out. infrastructure -- not into continue going or devices anticipate to is XXXX, to we flow

would to year. would XXXX We us to growth that there And year. I will benefit we into be device the that, expect the XXXX. infrastructure backlog going going we still would go And give is that have related throughout as think some we in anticipate through

think in second be it we first XXXX only half in us, stronger against will than compares the first the it For half half, very because the were strong. in

next The question from from Sheerin Matt Stifel. comes

Just on question. following up the last

just on operating First, well what guidance your as for gross up the margin be towards assumptions should year, infrastructure the margin should based mix on make Does sequentially. be it would services. given looks margins and imagine like I And sense? that the up

of sequentially, 'XX from so of said You 'XX? to QX QX

That's Correct. right.

We Yes. so. think like yes. that, give typically do margin but guidance I don't

on then hardware. And just the

Joyce, are an you're those issue, but like constraints So growing still supply it sounds businesses.

up budgets signs So at you sort end I would spend year basis, when be mean, of based the in guess, typically, their would seeing America, on the of because North again, hardware enterprises at you of expect would some supply? But least be now, -- to -- get the I it's on easing you And product. it's are sequentially? sequential you they a the expect

device been have constraints largely I supply So normalized. think

now in shipping year infrastructure a certainly pretty of on order because until We in first some clear supply think we're been cases. think products, sort for shipping. half. not basically We're backlog seeing before we're good almost now QX, shape into we are don't constraints they've I the we But Infrastructure there. So will continue. not -- the

lift So shipping of we're the in infrastructure going we're QX. of saying, the shipping, see infrastructure growth is so in more, in terms we're Glynis seeing which to why is amount continued

a has hardware down some EMEA, been more much maybe wondering the headwinds softness. is macroeconomic FX cycle maybe in different I'm that noticed that quarters versus of just in then to And how I revenue two there, related a row.

the been it EMEA -- somewhere it XX%. and is been There of significant on depending to likely and varies continue to QX has going the there course XX% decline going and year. -- the which that's the range of as is, over GDP, relates XXXX currency euro into FX, into between to but in the from It the effect has some

there. is XX% is XX% hardware, in some the is of they the European the the XX% in U.K. has which about seen business Our probably services on decline base about roughly do But and there's in greatest sterling there. software, particular, and XX% what hardware

from be currency. So that slowing would that's an impact

terms of of currency. demand overall you're like then sounds in then in growing trends, sort it But constant

grow currency Well, -- currency and grow in APAC. constant in we we did and in did in also constant EMEA

I a demand is think that little softer.

or the bite-size clients of contemplating pulling they're shortening projects in chunks. it Some our -- of the reducing size that to are back

is half a of bit year. to I the growth starting in of see America, more back we a North think bit are last we're of the half in that we're first year and not there certainly we but little that here still that at the softening same pace that of but saw in the seeing is EMEA seeing than maybe in softening there little

comes & Anthony The Company. next Sidoti question from Lebiedzinski from

given in pushback any how And comment of current the seen in environment? can have taken, on the that So price the clients have you from much you was terms you increases notable third that quarter?

our pricing of devices, see and So around single-digit configuration. call I also a combination ASPs in it, we that's would some, growth did but

clients again, So careful Anthony. it increases been also I hasn't significant significant because minor not been the some these. increases. We've carefully. but pretty And on things. say seen on projects scheme But have some just from the pricing costs, not we labor pricing in impact, about pushback a watching of of huge have would we We've that been really taken that

recently if then you terms could availability any And comment in of stabilization for Insight? your or there own have costs, also on seen you labor labor

for flattening certainly, sure. So mean, it's I

in. So in labor their particular, helpful us quite really, The got that's there's course. to of actually to managed the still and you've and customers those, to But say, improving. of some need in shortage labor come some digital and pay skill support really where general, in is skills transformation, is terms I high it would our they the market services and labor that to for are -- offerings in of we find that's harder our for is demand,

double-edged bit little in a successful We've a it's been recruiting efforts. and sword. So pretty retention own of our

the And of about you looking Joyce, achieve XXXX you're your your what as do. as your remarks then you're goals? to you -- that do lastly, in talked just to opening on looking Can expand look you about to changing plans to compensation that

sure products. of mean plain sell the than kind and services I we focus on Those appropriate are solutions. around making just harder it's really have to vanilla

make sure rewarding we're and our and that them compensation through have our sell we're to So services sales encouraging for plan. teammates they solutions, to that skills the

[Operator comes from Research. Instructions] question Colicchio The Barrington Vincent next from

Given to you the product in growth exceed would economic growth expect services 'XX? sensitivities,

So XXXX. guiding of so do infrastructure before, beginning We times to flush for we to as expect we grow. this also continue XXXX. see a -- backlog just the we're yet reminder, a of couple said some in do February. of would in And services expect to we've that We'll not expect the

services than solid we're I some we We about So declines saw And think pretty we performance, even saw look at in growth. a if think in terms our what in when actually you growth kind pretty much XXXX. hardware. software better has position Glynis of solid of saw talked XXXX we

Glynis, of Hanu the quarter? contribution, And what the in revenue was

Immaterial, small company. it's a

but sure indicators any other I'm quarter? in mentioned cycles any economic sales this, you the And not in had if changes impacts or of

terms projects we we where bite-size products just customers X a and also see can more the smaller for I cycle I say they are looking see on the it we sort they for they are -- would some clients think, and projects just our are can have of part is and little bit ways. -- results caution more deliver -- fast, because approvals of So seeing I -- One in seeing can we're larger more careful. get elongated faster. the they're to people And generally think an clients, of also sales being are of

quarters? considerably are anything in mentioned the versus Overall, as that or ago, seeing softness an the American had of that you indication verticals weaken And North market, bit anything the just U.S. you shifting like in EMEA in EMEA is going some coming market. maybe a signs to any

that answer don't think we've don't can we seen see yes. any that. we I that know think of question. that, I that don't I

me. for that's it Okay,

in not concentrated We're any in heavily vertical one EMEA.

maybe why it. haven't So we seen that's

Q&A further attending. Thank questions for are everyone, no This session, the registered. concludes and there you,

You may your lines. disconnect now