Insight Enterprises (NSIT) 2 May 242024 Q1 Earnings call transcript

Hello, and welcome to the Insight Enterprises First Quarter 2024 Operating Results. My name is Alex. I'll be coordinating the call today. [Operator Instructions] I will now hand it over to your host, James Morgado, SVP of Finance and CFO of North America. Please go ahead.

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

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

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

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

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

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

accompanying release the adjusted our GAAP actual and in presentation today. to the of measures will find a press these reconciliation You results, included issued both slide earlier

currency, unless U.S. we last constant all unless rates relate dollar the of to growth as year, and in Please today are growth note Also, corresponding noted. that make terms. on amounts comparisons call the discussed all otherwise period highlighted

results and filings during call in and statements today's differ periodic greater risks reports all recently to press in our most that with subject actual release materially. subsequent that could are forward-looking SEC. to reminder, cause risks a discussed These this filed our conference are made and uncertainties in are the As detail

statements law, are call as information, And a the made made over update following date required call whether otherwise. of the undertake by of will obligation or we statements you're I forward-looking along the Joyce. slide to events X. this as this result to new forward-looking All With no begin will on now if as call and except presentation, Joyce? with turn Slide of future on any we that,

today. Thank much, you Good very you morning, and us for everyone, James. thank joining

by and setting key with are services, Core pleased in fortified another record Insight performance strong We to continued very of areas discipline. QX SG&A announce cloud our strategic

XX% to geos. Some increased key all digits earnings Gross highlights. share per in Adjusted increased XX% to operations Adjusted earnings for record $X.XX. profit all-time grew diluted double $XXX an from million, Insight.

Additionally, points XXX XX.X%. the following represent record by to expanded results. basis margin metrics Gross QX

gross to XX% executing by grew basis $XX grew profit greater a X.X%. XX% Core are Insight against in gross we points Cloud margin to expanded and million strategy. Services profit These XXX million. demonstrate $XXX solutions that adjusted highlights our well to EBITDA

the of an May acquired Implementation. and Partner Consulting ServiceNow X, addition, on Infocenter, for Year partner In XXXX we Americas elite and

and in and And results. company enterprise a expands our delivering for fundamental transformation, pillar support since a to strength solutions ServiceNow implementing clients a a earned focused ability data of services pure-play cloud, capability developing and has reputation our as across this Infocenter, workflows, solutions major exceptional our complements integrator. on is all ServiceNow digital AI

requirements infrastructure them to hardware, technologies our and They is our to leading outcomes As navigate to need and digitally a by integrator help clients. for new trust services business a workplace and drive to partner they software reminder, solutions become the the strategy can transform. integrating these

in X the to Our examples action. like provide without. live integrator to clients strategy can't be I'd solutions our partner is of ambition our

sales. expertise describe to example, motion engagement. describe to product in services-led I'll And product led how selling First, how led in a second our I'll services the sales

has Our to conserve devices and long-time units client and around conglomerate, client, infrastructure. management multinational support management. products wanted from a from to looking us, capital more historically cost a The their was improved and purchased accountability, wide to of business disciplined data with software agility to range specifically

an Through with compute To included service. for environment our storage minimal fully storage-as-a-service with public search multiyear and solution, discussions, monitoring capacity usage. cloud consumption need CapEx, the hand and managed which as on-prem capacity by on we we architected included of flexibility including their a an effective address with designed sold implemented Insight, XX/X that

of example relationship, technical with changing solution earn of their and and the fast infrastructure supported deep over create support financial for add to how to additional us client factor by products, do results expertise next and strong flexibility driving to business deliver was A impressed that the more. the needs. and to by perfect for XX a addressed we They the X is portfolio Our enables over a requirements. our solution plan they need years. broad client This are deliver right locations the

begin approach expand relationship services include solution and a The selling to at Insight with can products. also strong

luxury enhancements cloud Let's industry, to to our from Projects application included deliver initiatives to talk security. and and their developing multiple enable examples. app a about and appliances. an home experience integration years, front-end Over user development to one in these longtime engaged appliance monitor client, solution of leading customers the on connected a appliances manufacturer several Insight

a strong we outcomes, delivering upgrade existing a for asked compute that them environment migrated solution of relationship and security have assessed an Recently, meet faced and scalable and and optimized, at and cost. costly to storage cloud our of and help. of reviewed ultimately they And to infrastructure modern their their record business a platform their their included infrastructure We clients the us a track antiquated requirements. because requirements fraction

solutions we honored these strong our with This recognize further insight innovative partner and our to deliver led turn, for our has continue results. our relationship, our relationships We partners optimized engagement without deepened projects. that services expertise and are expansive additional cannot in which, to network,

exceptional was with their Partner Americas to assisting Insight for across XXXX software, businesses. into Year, work services clients our systems the AI integrate and NVIDIA's industries named Software of

elite an a the help of competitive best deep Insight As solutions analytics, have AI machine seamlessly into partner, AI to business operations. advantage and data incorporating clients applications NVIDIA learning gain into incorporated engineers learning generative

Insight's AI research proof-of-concept in-house solutions process, tests through our innovation and validates hubs. and

the Partner of America's of the We including was Additionally, Cybersecurity part X North of Fastest North the as Broadcom's from America. recognized Insight as of were for Broadcom, Partner also XXXX Partner Partner Growth awarded awards VMware's Year Year Year. Awards,

presentation. in the slide You can see additional awards accompanying

initiatives. about Citizenship recognized good. to good as strategy our proud of our progress be our on We're in the against the to QX share for are and And uneven progress Barron's are proud achieved one we disciplined results our are Compact we've Most are made passionate using Global to Sixth Insight, toward we an we Sustainable XXX making Corporate Report. UN and technology in Annual At staying continued and executing strong for Companies XXXX. We market. Overall, focused commitment

SADA expanded addition our of Amdaris, and global We Infocenter. services with capabilities the have

and better e-commerce engagement client Our deliver improved experiences. platforms digital

environment ramp we offerings will such operating to the with began gross manage remain and pricing state-of-the-art to we center storage-as-a-service. our last to device-as-a-service And demand for support ready expenses will with Our profitability the as and devices week shipping Texas enhanced initiatives. products continue And throughout year. improve, continue clients' our prudently in and and integration as needs margin

organized of this As This an you morning be has are will aware, part year. announced of this at been our Glynis with retiring succession we that Board. the end process

thoughtful to And continuing We the team have lead will and executive top-tier and team to external evaluate me work the to process the CFO. are new finance the to has the committed with internal a a she until is right hired appointed. search successor candidates. undertaking identify Glynis firm and

our I'll key Glynis now outlook Glynis? and as performance over share QX, our the in of well to to as XXXX. operating financial for turn call details

you, Thank Joyce.

mentioned, Joyce results. excellent the with started As we year

While The per Insight growth gross attributable year-over-year. Cloud operations and profit earnings profitability as earnings share acquisitions initiatives. and largely profit gross pricing both diluted Services profit, was grew as adjusted adjusted from revenue, hardware our declined, digits. double well increased our and Core to gross

that deals quarter couple we on-prem In addition, gains. the benefited large software of from a onetime delivered in

results. QX, of net in driven infrastructure. X% revenue a products software by U.S. services, was also $X.X by to specifically decline increase terms an increase billion, dollar In and QX offset and in on partially constant was Moving currency. hardware, in The

we communicated quarter, with As last in seeing subdued improvement demand. slight devices infrastructure we're still

Infrastructure down was In up digits. double single QX, digits Devices and were

strong by will anticipate a modest the Infrastructure believe XX%, improvement continue year. declines. increased profit Core demand Services improve Cloud later to growth, second and and Insight Hardware in offset Devices Gross We in reflecting partially half

higher a XX.X%, was points XXX and increase mix Core Cloud of reflects an Services. Insight margin of and basis Gross

$XX hardware also XX%. and Cloud our contributed as pricing an Insight Services profitability and the profit in and addition, services margin. higher gross reflects growth was increase well Services. This million, Core Integration acquisitions benefits performance of In as of initiatives to gross

EBITDA Adjusted Cloud due increase last by resulted were we in $XXX from Adjusted X.X%. in XXX growth of acquisitions, X%, SaaS higher XX%, year. in basis to North and million, gross the million, This margin America earnings reflecting offset a took grew to up as partially adjusted profit $XXX points XX%. SG&A was OpEx an actions which infrastructure service. primarily operations was expanding

APAC operations XX% increased at in up from terms North XX% double in currency. $XXX and operations And perspective, diluted dollar of XX%, U.S. EMEA in geo $XXX from generated we cash From XX% adjusted XX%, share the in million XXXX. a constant earnings flow compared In America, million to and QX quarter, of adjusted respectively. digits were $X.XX, per earnings and

favorable flow QX. versus timing be million We $XXX million. in in receipts range of expect $XXX payments partner still normalize that for operations the that reflects strength cash This client to will will from XXXX of

goal. ago. XX demonstrates XX, return March invested trailing towards progress long-term XX.X% months a for was the Our ended adjusted to year on compared This good our XX%, capital XXXX,

We with our of exited outstanding QX under ABL. $XXX debt million

capacity have of QX, under facility, As billion which $X.X ABL $XXX end we of our million available. billion the of $X.X remains

to notes. to evaluate our We relative continue options convertible the

mature the reminder, February a XXXX. notes As in

basis on XXX our through growth demonstrated targets percentage QX and at XX% Our XX-month by we to expansion adjusted we XXXX, adjusted these strong of XXX%. described that of margin cash hit points profit Day income as XX%, are XXX EBITDA presentation Investor XXXX points as to of gross of Cloud the our performance from to track expansion to a relative flow basis ROIC October start free net shows adjusted X%, adjusted We trailing by in believe a XXXX. metrics of

impact into we guidance. our recovery adjusting in in have We and we are further quarter the Although with uncertainty saw environment pleased IT quarter, there first factors overall considered believe the in we're increased in market. the following the that year the performance one macro the may is

expect and the improve, refreshes. remain of year to progresses, improve Services the modestly Hardware by booted primarily We strong acquisitions Infocenter. Cloud SADA, and by Amdaris driven will as anticipate to device We Core

We SG&A, solutions in continue to diligently manage while and sales, technical systems investing resources integrated to strategy. support our our thoughtfully

we acquisition. be approximately XX%. adjusted And that and have Infocenter the interest to to expense full in Considering range year share mid- between earnings growth teens to our these gross gross we for higher margin expect will the the We diluted and profit per related factors, expect be $XX.XX. deliver $XX.XX high now will

share full of no meaningful XX.X the acquisition-related between debt rate expenses million, acquisition-related $XX for average instruments approximately year, or and or effective outlook macroeconomic amortization $XX This and million intangible tax million full million transformation in $XX million to and guidance of interest of assumes and and no the restructuring $XX the expense severance change our This count includes $XX expenditures XX% an expense shares. year outlook. million assumes capital for of to excludes

retiring As of at the year. Joyce mentioned, end this I'm

the I about special. Insight's excited with. progress miss about my and and of feeling was becoming I spent a about people the I'll as the decision excited something towards I've integrator. I'm difficult comes for the what have last Insight of solutions While am truly family the we leading this deeply me, made years next, trajectory XX part care being

and the We management as our for by and cheering CEO our incredible after Joyce year, phenomenal results. a strong who earnings years. a me. future. from my to for the led the be have of and deliver has call, in continues is and every positioned teammates been team Thanks impressive this and Insight This all sidelines And Insight supporting it interest strategy XXth your over day. believe you to is experience for team, as on I'll the execute talented well

call I will now the to turn Joyce. back

Glynis. Thanks,

profit gross very remains with growth results. Insight Core this positive and started have year Cloud We strong. Services'

We margin Core are our seeing resulting we And our and margin benefits favorable slight initiatives. Insight pricing and EBITDA disciplined strong remain improvement with mix in Cloud Services performance. Device reflecting expanded, profitability from a of management revenue. Gross in SG&A and

capabilities her their Infocenter together. each will their continued our Our few strategically thank our clients. and key them ServiceNow expands major in other, relevance certainly help to our partner of to ServiceNow acquisition solutions positions our and for the to energy and earnings with transformational have us and to also journeys, over XX for clients, workflows leadership thank our as innovative across our of I to partners trusting teammates support would delivering we our Glynis for clients. I collaboration these last like expertise more Insight and calls, a and their to commitment for want partners and a clients all our increases

acquisitions sendoff. history. adopt team a in to the XX Glynis is our that built strategy past really So has led the the had become She foundation was XX company's that it do quarters. enabled It solutions performance soon our impact the XX integrator. and has to Insight too and supported accelerate leading us that and formal over an Glynis enormous to at of

loved wit to and support clients. as Glynis leadership and her and partnership, have invaluable strong me admired our joined Glynis. been partners quick for teammates, very business acumen, Insight. is and I you, Thank Glynis' friendship by

your not miss and concludes now will comments, line the open we my We will but you, This yet. for questions.

Chatterjee first question Our from Instructions] today from JPMorgan. comes Samik [Operator for

still raise bridge JPMorgan. X from early the dynamics? you question, a XQ you not that and this with a June to it's beat I performance? then, can quarter. Cardoso can strong Or had And be But we that December the that keeps raising guide. is quarter help quarters? tack if the now? about be slightly I Can expecting thinking help I you I just you're in appreciate us earnings Are Joe what year guess, through modest? And only guess, between follow-up. but along us appreciating year seasonality that I with quick year, you This the full very then given full those are the year strongest your have just more the should we differently

Thanks, demand, of Okay. IT clearly demand did strengthening seeing the But a environment. lot in We in the quarter. overall Joe. overperform we're the not

demand remains I think still other people have mentioned that muted.

prudently manage SG&A, in We are sales plan systems make going investments but to and we continue and to the resources our technical to throughout year.

create we what contribution year the do what that And of we previously. to Part room QX did more was equal to now actually year of our in be versus of QX will for more is We similar, to some that terms overall have and shape investing. changing. said of believe the

Hardware. But our will half, be don't Infocenter and year. anticipated portfolio, primarily as we things, to accretive bit bit it's an accretive the little little the will of ramp us in anticipated going a be into more a strong second we quite is around had strengthening not in as guidance original ramp of It being year. of anticipated this macro not all a coming Our first And be maybe environment it to and second combination year. year, on we a have as half next anticipated. had the those the of this is as around specifically that had as think we strong as much but had and not impact it's

our we'll Joe, confidence said, in that does QX guidance. overperformance the increase be delivering that XXXX And our

good about it. feel we So

in March follow-up. I And a Got maybe uptick as it. No. Software strong there. obviously There the in is color quarter. the revenue then appreciate quick the just

magnitude how onetime on with I just mentioned track Glynis, just can the before working enjoyed Maybe congratulations them? And including going those you. my to you onetime revenue you elaborate the deals deals. of software You hop really then are retirement. to send wanted expecting off, on I And forward?

that. appreciate I Joe. Thanks,

the very Cloud our not revenue It's basis, Software a on our revenue, Software as you Software in So look product. much related. deal, see onetime on-prem it is in this on revenue on -- you year-over-year

has associated has the So it a it -- COGS has GP that. with and revenue, it

a is is muted that control. deals be it's more of to not on-prem little impact on. bit timing something not deals There something these any. year. not it's we GP could rely more that these We're because we can But necessarily something control that saying The The in we or software. of they're going not the be can that

this performance first impactful more revenue on but of it driver in than So quarter. a it's was on this quarter, GP,

year, we to expect strong strong. that, said Software continue to remain the for be Having

the of pace continue as saw the course, to that remain of QX. well. in at will Cloud, expansion not Just And we strong

of next comes question Our Raymond James. from Adam Tindle

as you, could. to I And my if start with to congrats well. Glynis I Joyce, wanted

last the muted environment. one IT muted to your wanted on. other answer you results. a Obviously, about more QX in on environment maybe Glynis we're that little think spend of I IT it not was peers questions, are going to the to I in spending. talking citing were bit lot the But pausing you kick seeing of on a just here the

the environment quarters? spending the versus you rest How for year? maybe the of would And last you it of how think the characterize trends couple overall now do IT

amount spending. But hard really we results read, obviously, some mean, mean I -- the careful, for It's I to We fair not a Yes. of delivered we definitely see good it's Adam. quarter. see still pretty uncertainty. a cautious

device lot now a hardware conversations about more we're refresh. So -- having

and but Infrastructure expect Our on back more Infrastructure bookings are up half. recovery QX, again in we the in modestly,

and big say engagement. the you I'd remains strong. see in Cloud services Software caution

taking big there, of close. deals. sort longer in just It's You to see CapEx caution the been

quite been like some time. saying that feel we've now for I But

how don't different So really I it know is.

from to when coming on around bit Fed it's think been there's their improve what's some this But is sooner cuts different our in guess caution more, bit sort of And more weighing I of is we a expecting were like same. that. think they clients I as to interest spend. more this little And I the year. and things about a think that are manage how of the

So more great uncertainty. It's not answer. a

at a And there gross you strip we the growth, onetime What organic for guess profit in sort deal way SADA if dollar of a to maybe us would fair. the look that out the trying say Software were profit That's of gross growth is is dollar quarter? to Okay. contribution? I and better reflection XX%

overperformance just I we had let's So talk all all solid a about the performance across second. and a for client strong mean very groups. geos quarter, major

So think that have did to We deals. I onetime large a don't want very in is couple of deals this quarter. you really the

all had our and, to some OpEx primarily Software groups, across was driven overperformance. performance. by client management, This geos, all SG&A did we performance. strong not frankly, SADA But contribute the really

couple of is a Software said, growth large was of the deals little a and those driven deals, by I uneven. what timing

higher margins Services Gross were Hardware in gross than margins and our expectations expanded.

because about we the given it continue OpEx last Those in to in to that. question, as And talked to to we're are opportunity in -- do business answer we the the uncertainty the And we're really feel we our continue expect really to going good managing sustainable. those. have So invest macro closely. about we the environment, the

longer grow to thing we in than the of other XXXX. talked bit a no that's at end we expect from little is faster about The year SG&A the different what GP

deliver we've performance. over with the in and really to we're expect pleased So talking areas with expanded years, that of in business We're in margins continue we about. foundational the been past pleased driving several we've and we think terms been to the the improvements growth our --

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

last enjoyed years. your have for working pending the Congratulations, with Glynis, retirement. I on few you

of I the think So and that I announced drag, think quarter is seasonal. year. of the in business guess, terms a just obviously in most believe, you first, I highly would when you the the be deal, SADA, I first mentioned had It

integrating that gone case So through your now into the SADA was that already you here, business? have

Yes.

in we're So QX, we per how is to really the as we to below focused said. on And improve there our to accretive out throughout they our in performed slightly seasonality sure expectations. figuring there. make But SADA year, earnings continue was share and QX,

our mentioned, the Glynis as we think going we in is about seasonality quite to don't As stark last earnings talked as call. be

even capabilities, acquisition. our really think year. support So We're to we with very lots a more us that improved. the these happy the in expect great from out our this to bit been strategically and environment gives little dramatically clients We of multi-cloud interest capabilities has ability throughout

and that performance. overall And seasonality continue going out smoothing work so to about to and we're that, really, really happy improving on the

Got it.

your That's uneven of to Okay. the mentioned demand along about some then good the marketplace. hear. peers you And in with

as you as of different you notable seeing when I cycles? terms So buying sales just in behavior groups, guess look client the far at or your customer are differences any

Yes.

the because For performance us, segments terrific client all on haven't consistent we seen that GP line, and grew for that while. a was kind of

I I also guess but And grew. client the Yes. bit a see caution, throughout continued don't As all continued though, everybody groups. have spend see -- as we we all big caution not And mix more, else. across and more a same say, I we geos should said, caution, bit

be So the of that deal. might part

there the as SG&A. mentioned so to And it of think your was looks me, some adjustment you. -- your is Got there SG&A, lastly part do in like quarter. management as for guidance Okay. I you looking good then far you Are

or are tighter just -- driving management? looking is you personnel are was reduce of it So is just What you to a function cost -- that?

made in that or improvements some is rollover we reductions the cost it's work our the numbers it put to in X of SG&A this underlying locations. we've other in we That's that things. moving last through year. in think and initiatives definitely took the the the I keeping playing in relative high as year last Manila, that year to U.S. here operations, some as well place in One the of effect

we last in of against So those acceleration combination as to it a is started the continue initiatives the XXXX. we and some execute year of

to I initiatives we're in to the continue of sales we and that and said, invest that and play-through are we in seeing as continue also resources the year but last will continuing. technical the systems, invest, We started

next from of Victor Our question comes Santiago Stifel.

Victor is retirement. announcement Sheerin. congrats the Matt for And This on on of Glynis your

you regards customer we growth during in the quarter, saw the Devices on give that to any in demand us type? the color drove On what could

it was the think really I across Board.

Yes.

-- And it I the -- numbers. was -- was muted was talking But we're not very know board. it big to great because but changes growth, across It see it dont can the trajectory. maybe seeing I lot was of it now a of just AI say is second? in Devices We're discussion What one for more interest about a refresh. thing lots seeing right we're also PCs. about

And going will that, do most to continue PCs. just to that is be Refresh. -- to expect throughout that, a very of do of we part I do by going we So be I is of year. the wanted but to it strengthen driven to small part due think Devices AI think

our that. changed on haven't we view So

on much as a it before idea helpful. it. And thereby? us how What your how and like you follow-up, Got Infocenter ServiceNow that quick acquisition acquisition could your grow capabilities look did capabilities? to the That's give an much will adds

Yes.

use managed offering. services as we of our internally So part ServiceNow

dramatically familiarity say I have small, around sort a and resale We would very providing our services some ServiceNow. engagement. have we ServiceNow. with clients services we with capabilities But our of So some lot had changed around of,

level pervasive. a is great And have ServiceNow best America. very customer Infocenter in sat, reputation. in And They incredible ecosystem the North of an has developed

capability. platform in a is of think the us expand that terms So services our include for great -- to our relevance to and customers we to

the overall how and that help a So excited with have we very, us a businesses AI, also strong the Azure our and will and They expand of that's excited Infocenter. Microsoft strength run and obviously acquisition are very impressed ours. of they their pretty this very about with leadership capabilities. how about We're very relationship very,

force be So that's we think going multiplier. a to

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

things the turnover, any like there any more higher-than-expected Is integration SADA color that? weak issues, on performance,

Yes.

or our a renewals that slightly recommit basically performed below with of our Google when on SADA Cloud concerns in so just we depending and mean, of we QX. about And I -- really hit of It expectations offerings happened have Google clients the to no So SADA. is in to have resale for kind period. relevance the

we We same leadership of issues excited just that I we haven't with seen attrition. Cloud didn't QX. see level been team in committed. say very increased The the is of The expected that. resale team So, would Google exactly There's is and no fantastic.

And how far along us of you long you implementing -- maybe initiatives innings? how in far terms update are in pricing profitability on and your could

of terms In innings.

would vary. it So

the are So the if in want may we fifth America, in America, we've about In in I'd not We year. North last recently that say of way? back inning, be started in North a you think to it -- half started recently, program similar EMEA.

So that's inning. maybe in third the

to geos, those leveraging the terms Infocenter about And Infrastructure it. or too, be profitability think mean, I have as of going still as business well, as Amdaris further in our have we're well go both think our as Europe, say, -- areas. those and both in and back-office of our lower-costs we're Eastern excited And or I profitability We're well profitability as our would as leveraging to of offshore we some in about and leveraging there. portfolio, all I we in operations Services there's across should really runway India just say. So businesses initiatives I I Services that think capability Services SADA

the about the on Hardware the well are we fact Anthony, side. is for positioned excited what we're rebound Sorry, that really

these So we've period taken where robust we during a especially of for a actions lot Devices. haven't demand, seen very

in expectations the economic any been your there different has for And Okay. change geographies?

No.

that's a expectations change there. guess I I in no, think no answer. simple

right, are services to little a software is EMEA, geos looks soft, how expectations Most The is Our very the there's it in than perform. North that, of business but and going Europe of And is related. in APAC terms change Services U.K., software our software the much of in in rest Europe other related. much like in is America. geos, the not

this we At time, no questions. further currently have

remarks. further any for Joyce to back hand I'll So

thank All for your of right. to your you Well, questions interest. all you and very much

We looking continued become opportunities integrator ahead are forward with continued excited really and about leading are us solutions journey our you. the our to of very to sharing on the progress

Alex. you, thank So

can now. call Appreciate Thanks much. close You the you very all.

Thank call. you all joining today's for

You lines. may your disconnect now