Insight Enterprises (NSIT) 2 May 232023 Q1 Earnings call transcript

Hello, and a warm welcome to the Insight Enterprises, Incorporated First Quarter 2023 Earnings Conference Call. My name is Candice, and I will be coordinating your call for today. All lines have been placed on mute during the presentation portion of the call with an opportunity for question-and-answer at the end. [Operator Instructions]

I would now like to hand the conference over to our host, James Morgado. ahead. go Please

thank conference and Company's joining Insight XX, the results Welcome, Today, you we earnings XXXX. March ended call. the the will Enterprises for everyone, quarter for be operating discussing

President Vice America. Senior Morgado, James of and Insight CFO Finance North of I'm

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

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

of Today's be conference available be is two accessed a call, being on call of call, hours period, Investor approximately also for after website the remain copy limited can page Relations will and insight.com. time. the including via at question-and-answer our our and will webcast of the the completion website live archived An

is conference rebroadcast call is the as Enterprises. consent call the contain written May associated redistribution, of of webcast This any form prohibited. information, in Enterprises and this expressed of XXXX. or call retransmission strictly property is accurate Any Insight today, Insight the only of X, This without that time-sensitive

as financial them we adjusted. be call, will discussing When conference quarter today's In XXXX results. to we referring measures, to will discuss non-GAAP as financial first we the non-GAAP refer measures,

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

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

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

expectations that much, diluted delivered pleased everyone, thank am we we very you was you joining that line to James. Thank for EPS more Good adjusted morning, us volatile anticipated. even market today. in report a our internal than in and with I had

EBITDA also flow strong We from cash adjusted operations. delivered gross and margin, margin

our $XX.XX. to are EPS As a guidance full-year we result, range adjusted confirming diluted of XXXX $X.XX

solutions AI performance increase in cloud. over a growth an well our consistent the areas data, and and in last growth market. of QX We Gross combination primarily cyber, of growth devices, as a infrastructure within Our primarily record we very transformation, despite XX.X%. the grew as expanded solutions net with accomplished this related and QX partially offset digital X% cloud in to reflects sales, margin to decline strong gross of in year, a by XX% portfolio, growth profit higher

performance basis. that is due As revenue on measure our a the best profit to increase net gross the reminder, way in of is our the percentage reported to a

the macroeconomic combined operating results trust our deep led with deliver expertise environment demonstrated this margin also in they doubt to challenging to these be uncertain that partner innovative to is fast. of X.X%. world the times additional continue clients expansion, margin XXXX. adjusted need a In EBITDA in accelerated leverage our can expenses will change, in There with no and gross We our to expanding

remain committed risk, transformation, and customer clients after normalizing is language leveraging to Although efficiency, including market large technology, the better IT to experience. elevated a models reduce few digital deliver growth, a of improve years

as the software, at greater services. to the integrator. leading our solutions of look ever. tech the companies require costs As macroeconomic to the than a is reduce and enablement, result These heart This solutions and automation hardware, environment, become importance of strategy connectivity are of

pillars reminder, strategy a our are underpinning Day. As there that outlined at four Investor last key we the fall

investments teammates frees our efficiently selling clients people clients. First, to delivering This captivate more pillar, We focus a more creates solutions. seamless by our do earning our And pride is and ourselves on transact sales to our via and self-service. business. second to will the up automation and allow with This a is which our for and clients us right outcome-based in experience outcome-focused e-commerce high-quality on solutions.

transforming We capabilities solutions to our focus portfolio. our aligning sales on incentives are our and

and We is our to number account match about streamline continue with propensity services. coverage theme here really clients' to doing to well. really that The them things and our skills buy is, doing finite need of a focus,

are AI, is our differentiation. is innovative, on solutions and the market clients the align through and of Our technical need fastest-growing that IP, help; solutions compelling areas third This Again, the about deliver most cyber strengths portfolio. our all pillar we focusing reusable very providing and talent exceptional scalable the cloud, edge. areas our data, where with

advantage attracting This high-performance leverage and for harmony to heart continue values our incredible is pillar been critical evolve culture. This and our a and to culture. to us, retaining hunger, of we talent. is will fourth the strategic to And has champion our

and share like business applying clients. expertise an for our to problem solve of to I'd one of significant our a example services

us pool. They to high integrated which led time applicant company drop-off, process. of We time by attrition and the of Our their importantly reduction the acquisition rates had client, XX%, the experience evaluate due to and to interface a multiple of the improve to acquisition. the by to the recruiting and over to client's HR led increased create various at cost quality global partnered to candidate HR retention, of increase recruiting productivity applications increase and their process. services seamless logistics, effectiveness recruiting consuming candidates talent technology a progress candidate This modernize milestones AI e-commerce of re-engineered with implemented We increased talent of time. a XX%, business

Our led allowing AI This through a using them process, client return investment process consulting productivity candidate workplace experience. as to improvement the has and machine on services project able to additional engagements, to improve technology chain in was improve improving learning. modern as more increase well additional and on and projects seamless projects including supply

deliver meaningful solutions also to only not our clients, recognized industry. is drive Our the by but outcome-based

from the honored to are XXXX award We NVIDIA. Year Americas Retail Partner of receive the

clients. use problems. NVIDIA expertise learning and bring resources and engineers Insight As a Insight consultants analytics an to to of collaborates elite to by partner, deep clients advantage to and gain business the AI help solve data leveraging best solutions competitive

to leadership And act that is of in and a Growth named their perform one demonstrated we am our companies, for Also, Insight I that accomplishments teammate responsible innovative programs. proud proud Equally the be of navigating cybersecurity as Fortinet to transformation top for recognition the manner. are journey. Partner digital the Workplaces! and was recognition Year. we engagement XX and in ethical team receive. a recognized important focus Insight of leveraging we the continues the Engaged continue and XXXX as of by was Most Achievers XXXX

the that of the with and the encourages also our report. full describes focus fostering teammates on while we on which collaboration our creativity area; focuses culture do us diversity finally, world, partners of look spotlights by report which a on Building that and and the to increased published reduce wellbeing that our report with around a of sustainability technology areas inclusion, an recently And Insight's mental all work participation and improving our corporate sustainable The good; around more our to we This for programs, leading influence and four own work and citizenship at clients sustainability world to annual teammates on report communities continued This impact. our from providing people we've the our inclusion. world for emphasis also highlights in details clients communities. our the for focus teammates. and We and work flexible Insight's operate. innovation this on done diversity contributions the work in positive with support in heart, carbon opportunities a driving footprint; using on improves workplace lives

that a large does for An we to example Australia. utility a the promote work of more a company developed solution Insight in sustainable is world

monitoring. prevented Our our AI to Its platform wastewater client a built and client and for proprietary a implementing maintain expensive post a network created and had a monitoring that monitoring to system from infrastructure required analytics. wastewater connect network Azure concerns, wastewater devices on security IoT solution infrastructure We XX,XXX advanced and aging level was proprietary hardware.

concept initial using our leveraging development applications expertise By quickly. moved an operations low-code we scale techniques, from very to to

and we cybersecurity In their platform, improved to data access dollars risk by millions data addition vendor and client client's of our annually, lock-in, to analytics. our gained replacing real-time saving aging reduced reduced

helped continue with Success led wastewater also We their to these our reduce a forward energy as long-term integrator, to projects and our look a become social services and ambition platform. impact. which consumption, client We remained prevent discussing I public focused we contract to overflow, risk health, environmental our to reduce the detrimental our progress manage solutions and to on journey. has leading

in our call and that, over Glynis? full-year the and to turn key share of outlook. financial to our the With Glynis I'll performance details operating QX

Thank you, Joyce.

geographic quarter the in line on call. highlights presentation QX results focus macroeconomic for performance our model. the on As our our environment slide our on The from Joyce our with the results. operating QX three in challenging were demonstrate our a performance this details the our I'll of mentioned, consolidated resiliency consolidated results expectations and and for key and regions includes

to You results a presentation. in will for our amounts the and GAAP GAAP adjusted equivalents reconciliation investor the the find

net that dollar to networking in decline increase prior XX% devices during by compared year. in the XX% currency a first driven is is XXXX a a comments infrastructure. substantially. decline cloud, billion, consistent decrease of significant up expected first the compared in partially revenue offset QX, an half $X.X in the and of by U.S. decrease devices terms, was devices, were previous of constant This In decline our indicating we to with as The when XXXX half significant in and

grew in X% year-over-year, cloud, devices, gross driven grew which performance the profit by primarily XX%. Despite

percentage of the on gross As is revenue due a our reminder, a our basis. that in best reported performance increase the net way to profit the to is measure

integration XX.X%, other $XX profit security. margins to relative Insight which applications, devices, data, services Gross related networking increase devices. decline infrastructure This gross a XXX to mix QX points, growth reflecting products, in by offset reflects services in record year-to-year. was of flat and core at core performance enablement, services million was the cloud, lower of margin higher higher and an Insight of transact was basis which and digital

our in pricing resulted addition, services margin. gross and profitability initiatives hardware In also and higher

be perspective, and on From a other delivered in performance North More gross our North in presentation. strong record gross a the America geo's America can geo found drove XX.X% margin details and our profit.

Our margin points. resulted and gross profit operating in expense with leverage, performance combined increased of an X.X% adjusted basis EBITDA XX our

share U.S. and this lower outstanding diluted down in adjusted related to quarter, constant of year-to-year. higher $X.XX and approximately QX first terms X% the debt earnings includes in For versus flat dollar per was This expense quarter in XXXX. $X.XX, currency interest

for In from the addition, notes with impact accounted share earnings adjusted our $X.XX. to warrants per diluted the convertible associated

the a the guidance warrants. interest expense partial February included in provided we As and to higher of related reminder, dilution the impact

cost quarter, in first the use $XXX quarter to previously the a XXXX. discussed, million. for million shares the our in a $XXX on you of of common flow growth $XXX operations QX, stock program, of share generated million As in update repurchased with we we in for to first we in total And a in cash XXX,XXX QX compared slower from hardware repurchase

repurchase of to under intend at million associated diluted our our impact offset from continue repurchasing approximately share XXX convertible the authorization. As shares million the we with warrants to end $XXX have notes. the April, current We remaining

We continue notes share as and to on the strategy. convertible impact our to evaluate our the dilution of well the convertible repurchase as notes options relative

share of our repurchases increases share XXXX anticipated share dilution, forecast assuming throughout XXXX. includes and the impact Our net price

begin repurchase our earnings share to million release. expect $XXX in a window after We open this program

will the an illustration dynamics You convertible presentation. find of our investor note in

$X.X million business and Since fund our to with have approximately capacity used of have $X.X priorities. and our Overall, facility, strength. deployment capacity our available we XXXX, capital under with our we with operating billion QX ample the exited we We our $XXX ABL paydown of operations to billion performance, for balance to million shares. sheet QX pleased really and $XXX strong repurchase are ABL

XX, March or capital ROIC return months was of XXXX XX the XX invested prior trailing points Further, for year. on our the basis XX.X%, adjusted ended increase an from

of at Investor shows XXXX Day that months performance laid XX out in QX our through we to relative October. Our metrics trailing the presentation our

XXXX our for a As is reminder, CAGR-based metrics. baseline XXXX

we seen decline decision call, for uncertainty in the earnings last increased a moderate slowdown a macroeconomic our have year. in this, to due Considering Since environment. net expect the client's in the growth sales our we making now

anticipate profitability to we mid growth improvements business business gross to leading execute and mix, on the become we initiatives single-digit our services related product integrator. as pricing However, profit strategy in our solutions our

improving We that going we and and implement into flow also investor as has automation, in cash capital initiatives continue preserving productivity focus XXXX, leverage initiatives, on implemented will leveraging operating and for expense and positioned capabilities well improving further us initiatives. well to mid-XXXX, as critical profitability

We have space in range. well our the this expense management position strength through and portfolio, year, traditionally fiber flow IT cash the cycle. in of data, be and our combined will with growth what operating navigate unclear prudent us AI to business double-digit this grown cloud, believe the it's solutions should While

As deliver we growth gross think for profit range. about expect full-year the the single-digit our of mid in to XXXX, guidance we

the be $X.XX of diluted our end range $XX.XX. to per at previous We of of lower share expect adjusted guidance earnings to

in $XX outlook full-year, to expenditures expenses, and no approximately million, our current the acquisition-related severance including and quarter, XX% under $XX the change our This million a increase million $XX tangible our future decrease from acquisition-related This meaningful for in to share count the completed of average of dilution in to XX% excludes slight to the microeconomic and first no transformation assumes or in planned an the tax effective outlook share shares, $XX for outlook. repurchases an repurchases full-year net capital share expenses warrants, assumes expense $XX million, estimated interest rate debt and million authorization. XX.X of the million to restructuring or instruments and of assumes

to call now back Joyce. I'll the turn

of portfolio Thanks, with believe resiliency macroeconomic We the this our in Glynis. to current the us navigate through broad solutions provides headwinds environment.

fastest areas market. growing We of are the positioned in the well

are We become integrator. ambition leading executing the towards solutions our to

solutions, We strategic are passionately culture. our delivering of against clients, captivating differentiation championing our pillars delivering and on focused selling

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

the my This line comments and questions. we now for your open concludes will

Thank of you. the So question Instructions] our first [Operator from comes line Stifel. Matt Sheerin of

now go is ahead. line open. Please Your

weaker. seems it think you be in Yes. It is Europe. Thank North XX% you. in incrementally everyone. first question will I hardware know XX% down Good that that Do morning, half. the been hardware just you America, thought regarding said of first like sales your looks have were a hardware weak I bottoms? year-over-year in sense when My sales. you originally in would first bottom sales things half, have the like

devices outlook So solutions? what's there and your both for infrastructure client

Thank Yes. you, Matt.

are that focused powerful to on very of I first reiterate want So really we IT just selling solutions. all,

in in delivered pretty So quarter with device soft softness QX internal on our we still we We good delivered QX results. definitely had experienced targets. and and a devices

we view, and would of the in while – hardware was of pretty that always have we recovery a rough the view see point be point been that So to back device we of half a the signaling especially half some first going year. from

year, a expect of more it's We the QX in like view. half see device probably point do of rather from to than still QX back recovery the although

was we from to point expect have some pretty year. elevated backlog we fairly see remain of for the and an growth resilient through and saw solid infrastructure the Our business view infrastructure good infrastructure still We quarter. there

Okay.

you have think in of area? the enough you So terms get the backlog, backlog you that to through growth in year

be flat dynamic. little Yes. to Infrastructure, up be bit. It's I mean, not it's to going going a to

Got it.

basis be on that Okay. through margin gross gross mix year-over-year that margin, be get the devices a as so. see And year that favorable implies – the actually time – your significantly you year terms in gross would Is do be then of over client down should margin XX% the by mix to will guidance for back, or or QX? come the you

the we down a that that our see and expect continued cycle gross business, know, by from we'll not it's margins QX margin basis We were as our relates would which In Gross expansion. be anticipate in will biggest quarter, up gross year-over-year Microsoft to that it on XXXX. you go QX, margin where we cloud/software-related we benefit in overall year services, and of in the as will in margin terms gross put will the the we're the year. profitability product expansion in portfolio last cloud, and we shown margins that to expansion initiatives year, time also get Based somewhere for in this of profit gross profitability have through range. the XX% on be and end getting

voice. my for Sorry

Got it.

that, regarding Are for you this my grow that last Thank was, year-over-year. year? you Okay. to flat the business, services expecting guess And which I core Glynis. question just

to We are expecting business. grow that

results, So at our when you look think… I

What will be driver? the

the in What that be the quarter. first It we be the elements saw would driver? would

the that So devices is lot slowdown work lab's in that to We're strong we in that what happened compare year before basis their et it year-over-year we integration assessments, cloud, relative second to infrastructure, and to that to really a we meet AI, XXXX, a work needs. would and in back XXXX. on anticipate not growth integration seeing some cyber, decline a work strong in QX come strong likely and very that do from data, we a cetera. in We're first that them seeing half expansion in as half there. devices of seeing integration-related year. think will We're out the continue decline ship very the We lab a QX, before assessment clients this in be won't was the expansion would but pulled our as for we then, had of last that see

it. Got

Okay. Thanks much. very

you. Thank

Our next question JPMorgan. Cardoso comes of from the line of Joseph

line now Please ahead. is Your open. go

second Good It some the your pre-announced sounds like that curious follow-up morning, offerings hear if for wanted I of ignore have backlog to breakdowns you a seeing to here. on just just the one however, various demand just today, that perspective, incremental and question. there. the prior how peers of between a can questions for like from are thanks we weakness

whether you're around Specifically, clarify infrastructure, a demand Thank into and/or weakness I can just steeper that have to And follow-up. proliferate like starting software Or you is seeing devices? weakness underlying you. services? then

Okay.

So anticipate I we said this reiterate we'll because of that think down half seen and through for on cloud strong very from growth what had year. do Specific will on think first remainder I'm quarter – of back hardware going the compares in we of to be XXXX. for Hardware last that the your will half basis going first the that a see year-over-year We XXXX. save we strictly growth the so half the to continue – see far. to question, we some of of we've

gross or services to will expansion continue continue – will go margin we We basis. see on forward a

growth for yes, there. strictly perspective in to clients and still margin from will but expansion little the more growth year-over-year continue see we in infrastructure going that hardware on profit bit continue second we half, related anticipate to AI half solutions will services on data, deliver we forward, compares first And we a anticipate our see a the and in as a and stronger gross infrastructure to advanced the softer would we basis,

question. just the guess switching I maybe next Okay. to

the kind being anticipate took in go is We into not softer. market happening We I year one Can mid do That's softer. to [Indiscernible] second? just controlling going answered out. the SG&A actions your to back half, question. market. The year second last is of blind what's start last XXXX. market our in us the We're Yes. helping for

of we helping strong very what's we hyperscalers our happening. have us That's in – all of ultimately on focused super numbers. the terms we're SG&A the As go growth and into spend reported where very XXXX, And Google, – Microsoft dollars.

are stronger what numbers cloud reported. even all than they've Our

good a control position maintain SG&A business our So to control I think we're – the and our of infrastructure cost. profitability our in

you're gross Got SG&A. kind maybe earnings you outlook. last profit then just it, made And again of cost seems outlook despite Glynis. touching you're It comment the on as discipline pulling this reiterating kind that just on like of on lower that

kind getting at in looking of in call You been on even of backdrop? much that outlook? know, couple this over Insight what versus here of much terms structural of and forward of it, season past is perhaps variable of How be just going OpEx as quarters, discipline some earning of kind was questions of OpEx in cost how would this you lower you that I've versus we've the around are the this the we're kind what flexing historically into just cost helpful. Any maybe more from enter, that seen expansion color that model a company let's the demand guys

I do understand – I your think would question. I

would it I more that variable. think is structural discipline is I say cost now our than

declining volumes. right? But with driver actually have expense, happens the Of declines our biggest what not overall. about that's in commission course, hey, We

some We first profitability have the our gross structural line. made margin at changes in

profit we've or the initiatives talked product pricing about place coming So starting dollars year, last solutions. in initiative to to services you related both the gross incremental profitability that and with we and incremental put through gross see regard margin

that are those So playing through. of are things kind the

the And that regard SG&A and we're around have changes made prescriptive the that more from we've talent organization. to been perspective, the adding headcount an the with being to very

You will revenue increased a in notice that percentage SG&A of is QX.

we've had adding helping as forward. that we go business. of talent more But bestshoring made we've I determination is a think that that's into our the to the us with regard also some thing nearshoring, So functions important offshoring, not we're

benefit those XXXX. last you're seeing be year, in that of a through and and started things some And roll

it. Got the Thanks. colors. Appreciate

you. Thank

next of James. of Tindle comes question the line Raymond from Our Adam

now is open. Your line go ahead. Please

that embedded of answers Okay. in like up Thanks. it that be as an down is half, but Good hardware half. morning. to first guidance, on the based that in and I in about the maintaining just talk going there your second expectation wanted sounds the to

that in pushback on investors year past been guess So cycle if view in the from that's get side a strong from declining potential is half half. very, through correct, that could a unit hardware with that for for or it come basis in flip in I a period to unit we've that the ASPs so. a the we'll deflation hardware, of or and very and over We slower maybe on incrementally challenging grow back growth, making

kind I just of to So you the or curious hardware those of the year be to thinking underpins understand confidence line concerns of you. and comparison? think return cause will the how in what for year-over-year would than the other concern. I half respond would the that growth Thank back you

So talked software about Adam, services. some of mean, where the in cloud hardware, help. market I cost that solutions of different a obviously one to of environment. think. that this people really I fastest all, market, the of need than cloud, IT other but frankly, impressive to driver and our Glynis areas the big first Really also to in place the growth move a of for mix the the of growing and are just the business most all is and this Not us, about that's manage thinking combination clients about you're I workloads a think the is the

we capabilities so strong have around really And that.

for in we history on deliver decline our And and two targets pretty significant still internal we've now got EPS. of device our quarters

dependent we've and devices like through. the might strength are as that consistently that pulling feel not solutions on as we maybe think is our us of demonstrated portfolio I So one

to in uncertain So there doubt really data, our AI, really, to are clients environment. important no is cloud, this that be continuing cyber

that of guide believe so to portfolio. back until in we pretty QX, And breadth even come our don't confident growth the the we're of sort of will though devices because

Okay.

can to just that? add ahead. Go I on And

Glynis. Go No. ahead,

going for I was category say, gross us, we get is that have. the time, all question devices devices just margin and to the we lowest the

revenue margin support looks I devices capital gross horrible, working my lot and gross that. looks very a low great, lot I sell use of lot declines it I use cash, margin So to of then our somewhat a at and or a of

changing, our Our model is different. model is

you hardware of will presentation, that you model change a XX% believe hardware a our forward devices of think deliver see will that in year. versus at was can QX time. last of the we demonstrated margin what hardware If But over XX% results. is from versus expansion to maintain on of elements ability other we a our between percentage look gross declining in strong push go That we've to is through mix total basis. I and is as and The that financial

then Okay. That's helpful. And maybe Joyce. for

broadly Just kind the about froze. things curious February, March across crisis was January the in IT, cadence of and think of and going then speaking things view banking that the kind a there in of Bank, and be okay quarter, and I to happened seemed all Silicon Valley

saw curious, in and April, if helpful. you're trends any be change you been in in Thanks. in that seeing customer particular, what cadence that just here would your base So there's

I line the off of a GP talked Glynis did in bookings didn't pretty March, that. we I'm so performance drop slower and massive we don't consistent see think a across – where spent on certainly about. that. failures or about that the in But conversations contributed the I'm and statement flat that trying level – the of in I American to at segments. though, looking I pretty topline demand to time more or terms across That's segments growth would with and sure say, on to the making some the quarter. I'm mean, the across cadence declines noise change we event during – Generally decision like consistent saw certainly the North anything

the a level was back it up think bit fairly a cranked half the – little of I quarter. in consistent Q noise quarter. the at Maybe So conservative

any change relative of end to April, from And Okay. in March?

March, much is March not I and yes, lot looking like is – I I think QX. looking mean, March changing. are mean, No, April a similar, QX pretty

Thank helpful. Very you. Okay.

of Our Vincent of the line next from Barrington question Colicchio Research. comes

open. ahead. now is line go Please Your

client your SMB any of Yes. demand Thanks segments, sector differentiation sector? the and for public questions. in taking from trends enterprises, Curious, in terms my

on bit to is We're the spending in profit I U.S. pretty the said down gross to topline The are flat the as a public little seeing particular – topline consistently then sector. the robust. And strength segments fairly in all more on the and of up. rest of in all

And had large those level. you is portion for sense cloud, traditionally Glynis, at a AI double-digit and your data, growing how you of some comprise? cyber the revenue areas provide cited Can

a have don't that. to good I answer

cloud the see can pieces You we because separately. report that

the GP AI our then contribution see part of So would and cloud services you elements be data, can the business.

haven't those context some we look that. on brought can give I'll We at that. actually historically. out Maybe

one is those – areas? follow-up if those you easing, quick helping, the labor And in in market areas, growth

The do is demand the easier bit we that a we're at find the we seen I looking is talent have historically. labor it wouldn't to And have. it's that say think helping little we than technical clients, the easing to – actually market meet deals initiating projects. that find and coming we fueling support we're but the clients that technical to that new the for have extent those talent we we're in projects can growth, the new new are it's

you. Thank Okay.

Sidoti of comes line question from final Anthony Our of & Lebiedzinski Company. the

go Your line is Please open. ahead.

about first Gill] My Can talked Lebiedzinski. you question an [Stefan your and these morning. you on us on for at Good is update Day Hi. simplification transformation. October, Investor please? in This give initiatives is, Anthony portfolio sales

Sure. Yes.

transformation significant effort, a from made sales a have we So turn.

wallet expand go so are with about transformation our beyond more we're that those talk to those value make execution. their and to understand book now more how and We're – a like more of on of focusing they can to more the delivering we we're our sellers about of of accounts those focused clients. accounts excited into even sure particularly deeper think, clients, we in share opportunities I

about we're transformation So the feeling pretty efforts. good sales

And we've and transformation I going as on said, from moved into well. execution that's

about edge. We are also that helps just the those more solutions same areas simplification also also build the on talked that positioning of the around us helps especially growing our a that with fastest cyber, and continuing work data, from in portfolio AI, perspective, and cloud, sales market capability I focus

the throughout continue ongoing, and work And year. will is so that we

Thank multiples talk your can also Are [indiscernible] activity? you. including you seeing flow cash about you acquisitions? lower And priorities

but some – are movement by from that. We are But early. it's to heartened in is that expectations very see starting sellers, we

be about flow an talk want so And priorities? forward. expect you that strategy part of our will important to Do cash we going

Yes.

right of million $XXX have ABL. under I than less our think, outstanding now, as we

of fits So cash to could we companies as a deploy to what be can find with continue given strong XXXX. in And like flow cash we that the And that our to relates will we that regard significant our right portfolio to price. areas have we'd at anticipate acquisitions amount that the if we augment. it

that cash a we We XXXX, if would flow have our of seasonality end, envision not above we our associated for flows be talk with range the time $XXX cash end in business, we million to by at the that about. top would get but the our probably we

All you. right. Thank

you. Thank

for questions. taking Thank you my

you. Thank

closing over remarks. As management there to no questions like team time, the for to hand additional conference waiting this are at back I'd

this set. more I think we're attention questions, to you set, we're your and there's and no for all morning. very I all Thank go. think much time Good if

today's Enterprises, great and Have this concludes Incorporated Insight ahead. first quarter a conference Ladies XXXX gentlemen, call. earnings day

disconnect now may your You lines.