Q1 2020 Earnings Call
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Ladies and gentlemen, thank you for standing by welcome to the profession Q1 2020 earnings conference call. At this time, all participants' lines are in listen only mode.
The speakers presentation, there will be a question and answer session to ask a question. During the session you will need a press star one on your telephone.
Please be advised that today's conference is being recorded if you acquire any further system built into their stores.
I would now like to hand, the converts over to your speaker today, Chairman and CEO Mr., Jeff Davis. Thank you. Please go ahead Sir.
Thank you. Good morning, everyone. This is Jeff Davis provisions Chairman and CEO.
Yeah, the telephone as Paul Martin, our CFO and Tom Eagan arch CLL like to thank you for your time. This morning, we've got about 10 to 15 minutes of prepared comments.
Of course after that we'll open up the call for questions always please read the safe Harbor statement.
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No.
Oh.
Okay.
Hey, Tom if you've got that could you guys didn't read it.
Okay can you hear me now Joe.
Yeah I cannot <unk>.
Okay. Thanks, Jeff and good morning, some things we will discuss in today's call concerning future company for performance will be forward looking statements within the meetings on the securities laws actual results may materially differ from those discussed in these forward looking statements. We encourage you to refer for any additional information contained or else you see filings just certain factors that could cause these results.
Three different been contemplated in today's discussion and turns during this call you refer to adjusted <unk> earnings press release, including a record reconciliation certain non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles aren't there is posted on our website www dot proficiency.
We have also.
So to slide deck, which includes a reconciliation of certain non-GAAP.
Good ideas to the most directly comparable financial measures.
Jeff.
Thanks, Bob and once again, thanks, everyone for joining pleased to be with you. This morning to discuss or first quarter 2020 result.
Provide context around our progress navigating through the current condition and challenges.
First I want to start by thinking both our colleagues and our customers for the way. They responded to rapid and dramatic change our colleagues have demonstrated remarkable resilience when it became clear it in office and onsite work my jeopardize help reenacted, our business continuity plans and in a matter of days Perficient was fully remote and ready.
The transition was seamless an orderly and enable those continue to continue to serve our clients with minimal disruption.
As you can see from the results the Pandemics emergence had only limited impact on our first quarter performance.
I'll talk a lot about I talked a lot, but our people being our key competitive advantage and I think that's again been underscored by the success, we've had here relative to some of our competitors.
Our clients are providing inspiration as well with rare exception there they're resolutely powering forward with projects, we're remaining nimble in providing as much flexibility as we can its challenges are right.
By enlarge their as committed as we are to keeping everything on track.
And we're fortunate to have only modest exposure to industries like travel leisure. It entertainment that had been most dramatically impacted and Paul will speak to a financial details shortly but to degree notable successes during the quarter, where the growth we drove the navy yard as well as offshore revenue North American Hbr at $152 was the highest itself.
Ever been and up 2% sequentially and 4% year over year.
We've talked for several quarters on these calls about the opportunity we have to gradually drive this higher over time to help expand margins and we're seeing those results.
Additionally, the revenue delivered by our offshore teams grew almost 30% during the quarter.
And that's on the heels of 29% and the Oh, I'm, sorry, 31%, the fourth quarter and 29% for the year 2019. So continued strong offshore growth, that's a pace equal to or greater than virtually all of the offshore centric firms and I expect we could see even more outperformance in the quarters ahead of some of our competitors continue to be channel.
With issues like remote working conditions and security complications.
Again, our offshore teams like the rest of Perficient, our remote and ready and supporting our clients exactly as they have all along in fact, we're gaining share in some accounts as other firms struggled with their capacity to support mutual customers.
On our fourth quarter call in February we shared that January had been our strongest bookings month ever that got Q1 off to a great start in times going to share some more details on a large deals larger deals with you shortly.
Finally in late March we were excited to complete the acquisition of brain Jacks $13 billion say core focus from headquartered near Atlanta with offshore resources in Serbia, It's a great team and integration is well underway you'll recall earlier. This year met Teche was a Q1 acquisition as well so we.
We've got to complete for the year. So far the current climate by the way is not this waiting us from continuing to look for ways to supplement our organic growth with M&A.
That were in late stages with an opportunity I'm very excited about and hopeful to close here during the second quarter no guarantees of course, but we're working toward that goal and with that I'm going to turn the call back over to Paul will share the financial results.
Details for the first quarter Paul.
Thanks, Jeff and good morning, everyone services revenues were 145.4 million for the first quarter of 20, 29% increase over the comparable prior year period services gross margin percentage for the first quarter.
March 31 to 2020, excluding reimbursed expenses and stock compensation increased 60 basis points to 38.2% compared to the prior year period as DNA expense, excluding stock compensation increased to 30.3 million in the first quarter of 2020 from 29.8 million in the comparable prior year period as you know expense.
Putting stock compensation as a percentage of revenue decreased to 20.8% from 22.3% in the first quarter of 2019 adjusted EBITDA for the first quarter 2020 was 23.8 million or 16.3% of revenues compared to 19.7 million or 14.7% of revenues in the first quarter of 29.
C.
The first quarter included amortization of 3.9 million compared to 4.1 million in the prior year net interest expense for the first quarter 2020 increased slightly to 1.9 million from 1.8 million in the comparable prior year period.
Our effective tax rate for the first quarter 2020 was 14.6% compared to 19.9% for the first quarter 2019. The decrease in the effective tax rate was primarily due to the increase in tax benefits recognized related to share based compensation deductions. During the first quarter of 2020 net income increased 28% ton.
$9 million for the first quarter 2020 from 7 million in the first quarter of 29 team diluted GAAP earnings per share increased to 27 cents a share for the first quarter in 2020 from 22 cents in the first quarter of 2019.
Adjusted earnings per share increased to 51 cents a share for the first quarter of 2020 from 43 cents in the comparable prior year period, our ending billable headcount at March 31, 2020 was 3187, including 2941 billable colleagues and 246 subcontractors ending estimate.
Count was 565.
Our outstanding debt net of unamortized discount into for issuance costs at March 31 to 2020 was 125.8 million. We also had 29.3 million in cash cash equivalents as of March 31, 2020, and full access to our $125 million credit facility, our balance sheet continues leave us very well.
Well positioned to execute against our strategic plan finally day sales outstanding on accounts receivable increased modestly to 71 days as seen on first quarter compared to 70 days at the end of the first quarter of 29 team I'll now turn the call over to Tom Hogan flow commentary behind the metrics Tom.
Thanks, Paul.
I've mentioned earlier overall, a solid quarter for bookings importantly, our pipeline remains strong we've made tremendous strides in recent years moving up market and we're now in conversations and finalist for deals that we wouldn't it make it therefore, even just a couple of years ago. We have several large deals were competing on eat figure opportunities right now well within our.
Yes, we booked 71 deals north of $500000. During the first quarter 2020 that compares to 65 during the fourth quarter of 2019.
70 in the year ago period.
In addition to volume average deal size for those deals was up materially sequentially and year over year more wins and larger wins.
Thanks, differentiating perficient right now, it's our nimbleness, we're strengthening client relationships by developing new adapting existing digitally driven solutions to help our customers quickly respond to changing market dynamics meet the needs of their customers insisting in their businesses.
As an example on health care, we're quickly we quickly pivoted to help customers address the seven search and call center in helpline activity, we worked with our partners to develop and demonstrate intelligent health care chat bots solutions and securely assess symptoms and provide immediate care recommendations well, helping to reduce further spread to the virus and alleviate indeed.
Health systems.
Now looking ahead health care providers and payers are urgently addressing revenue recovery.
We have launched marketing automation and patient engagement solutions to help the industry reengage with patients.
Similarly, the financial services industry experienced a significant uptick in loan applications due to federal rollout of the payment protection program or PPP. We can quickly develop multiple complementary PPP offerings to address immediately when it take need and we're working provide foundational technology for larger term longer term servicing challenges.
Additionally, we're working on solutions for our consumer banking clients and many other industries, where payment modification programs are being put into place.
Finally, we experienced increased demand from our retail clients looking for nimble order management systems to address challenges give their customers options to receive their orders fasteners.
The ability implants streamline products helmet capabilities has become a must have necessity. As a result, we've worked with multiple retail clients implement additional shopping options such as ship from store our same day delivery to meet the safe to safely meets the needs of their customers.
Theme here is rapid innovation and upkeep and it's something Perficient is well suited for and we continue to demonstrate dealing with our customers Koby 19 continues to disrupt industries and markets and worked proactively partnering with our clients entry these challenges and with that I'll turn things back over to Jeff to discuss their main or 2020, Jeff.
Thanks, Tom.
Well as we indicated in the press release out of an abundance of caution where withdrawing our previously provided full year revenue and earnings guidance.
While we had a great Q1 and remain confident on our long term outlook. There are simply too many uncertainties right now to forecast how the remainder of the year will evolve.
We will of course revisit that interest and reestablish projections, if and when we get enough clarity to do so but for now this is the prudent path.
We ended the year with great momentum record bookings in December and January and with our business running strong and items I mentioned at the beginning of the call Im proud of the way. The provision has responded to circumstances know what envisioned as the year got underway. We're in a stronger position than many of our competitors I expect 2020 will stay.
It'll be a strong year for perficient, but like everyone else. We're reacting day by day right now so with that operator, we can open up the call for questions.
As a reminder to ask a question you will need to press star one on your telephone.
Withdraw your question press the pound key in the interest of time, we ask that you. Please limit yourself to one question and one follow up if you have any additional questions you may rejoin the queue. Please standby, while we compile the Q and a roster.
Our first question comes from surrender thin with Jefferies. Your line is now open.
Good morning, gentlemen.
Yes. This first question is prudent you can you walk us through the discussions that maybe you're having with clients.
Stage.
The crisis versus maybe about a month ago.
The nature of the discussions changed maybe the comfort level of clients and stuff.
Yeah, I would tell you that.
Certainly anecdotally things are improving.
Gradually.
We had.
Going back to the.
Probably about four weeks ago.
There were a number of clients that.
Kind of a knee jerk reaction.
Sure.
We did at a couple of outright cancellations.
One is recently filed bankruptcy, but otherwise we didn't have too much of that.
There wasn't there was some trimming back, but we are seeing things come back around right. Now so bookings were a little slower in April but the outlook for bookings are the forecast for me is pretty solid so.
And we're definitely getting engaged in a lot more conversations as Tom pointed out.
Many of which are kogan related actually, particularly in banking and health care, but in other areas as well and the fact that some of our competitors have struggled as has definitely give us some share. So I would say right now four weeks later things definitely are looking up at improving from where they were up four weeks ago clients you're talking about.
I'll start and projects back up and getting we engaged.
That's helpful and Paul the this next question is for you.
Can you talk about what level of confidence you might need to have to be able to implement guidance. Like for example would up 5% range for revenues or something like that wide by historical standards would that be paid enough in the current environment, even if you're looking out.
Quarter.
So.
Yes, so I think obviously, we're going to have to look at the macro environment and what we're seeing specific to our business. It's hard to put a specific number on that I think we're going to continue.
To monitor what our business is doing what's happening on a macro level and adjust accordingly.
Thanks, Good luck.
I'll just add we've been good just to add to that.
I do think that.
As we're seeing as I said before we're seeing things improve I'm.
Domestic that maybe by the end of Q2 will have a more clear outlook.
So, but I know commitment as Paul said its thats, obviously, that's why people guidance, but I do feel like we'll know a lot more obviously by the end of.
June or even earlier.
Thank you.
Thank you. Our next question comes from Mayank Tandon with Needham. Your line is now open.
Thank you all good morning, Jeff and Paul.
Jeff you, obviously look through the last down cycle could you compare and contrast, what you're seeing today versus what you saw back and forth for nine maybe help us provide some context around that and I will follow up as well.
Yes. This is.
I'd say this is starkly different in terms of.
The the impact is more gradual I would say that and then.
Oh, eight or nine where things really unraveled quickly.
And and like I said I actually see some light at the end of the tunnel here already versus bad.
Big reason for that I've talked about this a wild.
You know 12 years ago was that a lot more bid market focused than we are today and really again.
Our fortune 1000 clients that are really pressing on for the most part there's some trimming here and now that we've had no outright cancellations. That's a big difference from Boingo now where there were a lot of clients that just completely stopped and outright cancelled projects, we've seen very little of that with that one exception I mentioned.
Got it and then just as a follow up but I wanted to focus on the margin front.
We do enter a prolonged downturn where revenue declined sequentially for the next few quarters, how far can you go to cut costs and manage possibility would it be worthwhile or do you believe that would actually compromise your long term trajectory. So maybe you could also talk about that in terms of your investment plans and priorities for the remainder up this year into next year.
Thank you, yes, good question I think.
It's a balance right good consulting answer.
So yes, we're going to work hard to preserve if not still expand margins I mentioned hbr is up so that's an opportunity.
And right now, we're maintaining utilization around 80%, maybe a little over so and they actually saw a little bit of a ramp through April I don't know that that's no guarantees on that continuing obviously, we've already talked about guidance, but but yeah, it's going to be a balance between obviously retail.
Turning to.
The the talented resources that we need to take advantage of what I expect to be a pretty significant bounce back.
But at the same time you know.
Effectively managing margins. So I think we've got a really good handle around.
On that right now and what we're going to need to do.
If we need to do it like I said, it's kind of a week by week basis right now.
Thank you I want one one thing to add to that Mayank as Jeff talked about in his opening comments growth is much stronger and our global delivery centers, which have higher margins. So that's going to be a bit of a tailwind relative to all these other factors.
Great. Thank you.
[noise] thing team. Our next question comes from Brian Kinstlinger lines Global Partners. Your line is now.
Great. Thanks, so much I guide.
80%, 80% utilization sounds really strong.
In this environment in only a modest impact, but can you talk about the revenue trends in April compared to say March in February and so we can get a sense of how the hardest part of all companies working from home is impacting you guys and has there been any change in may compete compared to April.
Yes. Good question So April.
Was down somewhat from.
Arch and I attribute that to what I said or a little bit earlier and one of the other questions was there was sort of an immediate or knee jerk reaction and a few areas and including the one cancellation.
That directly impacted.
However, as I, just mentioned April actually ramped a bit week over week towards the end so.
Again, I want to be very cautious about anything around guidance, that's why we pulled it but.
I would say that anecdotally there is some positive signs of the as I, just said, but definitely.
You know April was down a bit off of March, but then was coming back up so too early to know it may by the way it will get we'll get our first kind of full week review of that here in a couple days.
Great and then I heard correctly on the booking side it sounds like you're having more conversations with hospitals in banks or financial services.
Hi, Paul is obviously are quite busy financially at least from the news it sounds like they're struggling given the lack of elective surgeries.
As it.
Sector to see more resilient it seemed to me and will fall given their financial health is going down a little bit just maybe a sense given that's so important to your business.
Absolutely course keep in mind that that the payer side is where the majority of our business comes from but we certainly have.
A lot of.
Customers on the on the hospital side as well hospital systems.
I've been really impressed so far and we see no indication of any change to this.
That.
Certainly our top client in the and the.
In the health sector.
It is absolutely moving forward and we've actually expanded our Voltaire during cobot.
Again in some cases as competitors have struggled in other cases, it's just simply them moving forward with a capital projects, so they're cutting operating expenses and operating budgets.
But they're not affecting their long term.
Capex.
Around these strategic initiatives and I think that's pretty consistent across the board with even other hospital systems most of the hospitals as we work with a really quite large so so we're typically on that capex side like I said building out strategic new solutions for them and so far they seem resolute and moving forward with that and of course on the payer side.
You know I think they're not really that harmed by this much at all yet they're still collecting still collecting premiums and and doling out less cash so they're probably by accumulating cash, but my view right.
Thank you so much.
Brent.
Thank you. Our next question comes from Maggie Nolan with William Blair. Your line is no.
Good morning, Thank you.
Can you comment a little bit on your salesforce and their ability to be productive and execute in this environment.
And how about pipeline looks as you kind of the just about new sales reality and potentially some projects roll off.
Not seen is a huge wake effect yet.
Tom you want to take that.
Sure.
Yes, I'll say from me.
Sales perspective.
Seem to be impressed with not just our sales team and our subject matter experts, we have pivoted quite easily as I've shared earlier regarding some of the solutions that are very here and now as new business models challenges rose our team very quickly got to a here's what the market needs here's what our client needs.
And we've done a nice job of really aligning and being nimble to help drive pipeline that on if you didn't even exist even 60 days ago. So our sellers have been.
Within reason pretty aggressive and proactive in this current environment. Our pipeline remains strong as I mentioned, there's a couple of deals that are quite large then we're going after and finalist with obviously no promises there are looking good so our sales activity definitely slowed as we changed with the client.
Demand, but I'll say, it's pretty strong right now, we pivoted quite nicely and funky new areas to engage in keeping in mind. We're in the digital around where a lot of these initiatives as Jeff mentioned aren't slowing down in our clients need digital more now than ever obviously, no promises and so working through a lot there.
But we've seen some nice activity from our sales team and our subject matter experts.
Thanks, and then.
There any changes to the long term strategy.
And that that you had in place regarding how you're providing services to clients.
Whether that be from a geographic delivery perspective, or you're considering remote distributed capabilities.
And then just a quick housekeeping the organic growth rate as well.
So organic growth was I want to say about 6% for the quarter.
And.
In terms of the long term strategy I think it remains intact.
Couple of couple of a.
Probably worthwhile things to note.
About 90% remote at any given point in time.
By remote that for us means typically working in our offices.
But remote from the client I'm of course remote today means working from home, we expect that within probably six weeks or so six to eight weeks.
Well certainly be back in the office within a couple of weeks at a limited level and obviously falling appropriate guidelines.
But I think a couple of months, we're going to be fairly back to normal, but again I think one of the reasons that this has been fairly seamless for us is that we're accustomed to working remotely and can do it effectively indefinitely. The clients that we work with where we would have been onsite were immediately accommodating an agreeable to this change.
I expect that that'll continue going forward as well as long as it needs to.
In terms of and I was just touch on the pipeline on your earlier question a little bit.
You know, we're as I said before really not seen cancellations. So we've seen some delays and decisions some things pushed off so the pipeline is really quite large and.
Looks quite good.
If we could squeeze those delays and clients start to move forward you know, we could see like like I said, a very nice recovery very quickly.
Okay.
Hi, Thank you.
In Q.
Our next question comes from Vincent Colicchio with Barrington. Your line is now open.
Yeah. Thanks [laughter].
[laughter], Jeff I got to the cool late so sorry, if this has been addressed but to some of your more.
Risk verticals energy retail leisure are there any issues, there and I don't recall in particular.
We'll push comes online versus physical stores.
Yes, good question.
Really it's almost a 100% online.
The one.
What you may have missed earlier, we did have one outright cancellation and that client is now file bankruptcy.
That was more in the brick and mortar space, where she working with them to get more digital.
But outside of that I would say our retail business is intact.
We don't have a ton of exposure to.
Leisure or hospitality thankfully.
Actually where we've been working on changing that but fortuitous for us that we didnt have that that big exposure, we have some and theres impact there, but sort of like the hospitals right now anyway, we see them continuing to move forward with.
With these capex projects.
And then that would the transitions at home or were there any security issues or were things fairly a seamless.
I was completely seamless our IP team and all of our colleagues.
Did a great job in responding to what we needed to do but more importantly, we achieved soc to audited Soc to compliance last year and as a part of that had a very robust business continuity plan. That's that's required for that certification and that includes a ton of security by the way that's a high trust type of an.
So that was all already in place everybody had laptops as laptops or encrypted.
Et cetera, et cetera, so all that needed was access to the VP ends in that happened almost instantly and no issues.
Thanks, Jeff.
Thank you.
Thank you as a reminder, ladies and gentleman that Star then one to ask a question.
Our next question comes from Jack Dander Art with Maxim Group. Your line is now open.
Hey, good morning, guys. Thanks for taking my question.
During during your prepared remarks has mentioned that the pipeline remains strong I know some provide some additional commentary on that and large deals continue the positive trend I. Just wondering if you could provide further color under your your level of visibility for the remainder of this year.
Relative to what you're you guys had strong visibility or at least it sounded like last quarter.
And is there any elevated risk of further contract delays and cancellations more so than you expected.
That's a good question I don't know that I had to have a good reference on the expected part of that to be honest with you.
So it's changing daily but.
And again you know the pipeline does does remain strong and we're seeing some delays at the same time as I mentioned earlier, we started to see some of that improves so probably more anecdotally, but I think we'll begin to see it in the pipeline as well in terms of the outlook for the rest of the year, we do have a large back.
We still even today as as bookings slowed a little bit in March and April primarily April.
We still have.
Probably a record backlog at the moment. So so given that time is on our side as I mentioned a minute ago, what I meant was or what I mean I'd add is that if we can get these.
These engagements booked and clients begin to kind of lift their head up and move forward.
We have time for a nice recovery.
Despite like I said these this sort of slower period of bookings here right now but.
He is off to a good start it's too early to really say much about may as it were only a week into it.
But right now the bookings have actually been fairly decent.
Okay great.
And then a follow up to a relate to offshore revenue.
That growth remains very strong.
Can you talk more I'm I'm wondering if you talk more in the drivers of this growth did for exempted offshore.
He and increasing Hbr somewhere to North America.
And are there any noticeable other differently just in the market environment in near term outlook expectations.
As it relates to offshore versus onshore.
Yeah I think.
I I would tell you. This is our offshore is growing well obviously concentrated.
Are focused on making that happen. So some of that has a lot of its by design of course in terms of.
Being driven by our compensation plans for our sales folks and emphasizing offshore given really two reasons. One we want to be competitive you look at some of our competitors, who I won't name that that average of bill rate of about $35 an hour, it's kind of tough to compete with when we've got a business it's bad.
Once more towards North America to $150 and.
So again, where it's about striking that balance, but I think we've got a real advantage and offshore and that we're digital offshore we've got digital capability offshore at very competitive rates in the 35 to $40 an hour range to answer your question by the way we Didnt see the same increase in abbey, our offshore I think it might be up.
A little bit and again, that's by design as well, we're already driving 55% gross margin.
Our offshore so.
We're going to try to hold onto that mainly.
Just keep driving more offshore business supplemented supplementing our onshore of course.
Excellent Okay. That's it for me thanks, guys.
Thank you. Our next question comes from surrender same with Jefferies. Your line is now open.
Hi, Thank you for taking a follow up here.
Can you provide some color on head count at this point in terms of one of the levers that that's your employing in terms of like piece of hiring.
Do we think about that going forward has some hiring a significantly slowed at this point.
Yes, absolutely.
This is a business that typically has a fair amount of attrition associated with it right. We tend to run 15% to 20% voluntary attrition, we're going to see that fall off it was still in that range in Q1, but we're certainly seeing that drop.
And at which it means that we don't need to hire Jesper replacements, and Dell and at the same cloud where else not necessarily hiring for growth we've done a fair amount of hiring.
Up through Q1, and yes to your point, we've kind of put the brakes on now and as I mentioned before it's going to be our goal to maintain that 80% utilization, depending how things go that might be a little tell it will still maintain into the high seventys.
Yes, it and again, we'll be 80, and it will manage them hopefully bring exactly as you described just leveraging when adjusting lateral.
Understood. If I heard you correctly that hiring is obviously continuing to some extent, but should we expect head count growth at this point or not.
In Q2, I would say no right now I think getting with the with the attrition rate dropping off we're probably going to try to hold tight where we're at even let utilization rise a little if if we need to.
Before we do a lot of hiring so I would say from a headcount projection at least for the next 60 days, probably not a lot of change I'm hopeful as I've said that that may be at eight weeks time things are picking up quite a lot and hopefully we get back to hiring quite a lot by then but for the probably next 60 days or so not much.
Understood and then just following up on the previous question about the strength of the offshore business.
Is there an opportunity here too I guess drive that growth higher or maybe the decline appetite for being able to accept or offshore work at this corner, how should we think about.
We're client demand is or their willingness to tend to think about that makes sense as ones.
Yes, no absolutely I think I think offshore will continue to grow.
Some of the competition at struggled there we'd actually picked up share as a result of that I.
I think more if that's going to happen, but I can tell you.
That.
The skill set in the portfolio of skills that we have offshore is pretty unique its digital it's on par with their onshore counterparts. So it's a hell of a value add and that's what we're demonstrating to our clients, they're gaining a lot of confidence and trust in us.
Because when you think of offshore you don't necessarily think of profession, but I think thats changing certainly with the existing clients that we have we're also winning new new relationships that involve offshore right out of the gate. So it's just become more and more I think ingrained in how we sell and how we deliver.
And I expect that it will accelerate even beyond the 30% we're seeing now maybe not during this cobot period that long term I, absolutely think it'll accelerate beyond that and become a larger and larger component of our delivery capability.
Understood. That's helpful. Thank you.
<unk>.
Thank you and our next question comes from Brian Kinstlinger with Alliance Global Partners. Your line is now open.
Yeah, great. Thanks for the follow ups can.
Can you talk about from a high level, whether sundar looks at our and now brain jocks, they holding up better or seeing more weakness in the core perficient jobs per patient business.
Yes.
In may in starting in April in early May.
Yeah sure, it's very similar I think to what the what we're experiencing in general.
Met touches done really well one of the things that we we're excited about with med touches their patient acquisition expertise and that's pretty key right now you know during cobot.
And certainly as we get back to more elective what are the things that we're engaging.
With that team right now is with hospitals, who are preparing to reopen elective surgeries and they are keen to to acquire those patients for those surgeries. So so we're seeing a lot of good opportunity there that business is doing well brand Jack's it's kind of early.
But they're doing well and I would say kind of on par with the with how the rest provisions doing.
Great one follow up and I don't I don't think it was after maybe I missed it as well the bill rate was fantastic our conversations given the current environment. Our should we expect that to come back to maybe.
Slightly lower do we think it can be stable doing it can still increase in this environment I know, it's very difficult probably to tell right I'm, just curious where conversations are heading on price right now, yes, we're being we're certainly being aggressive where we feel like it's going to help the client get off the time to be honest with you. So yes, I wouldn't shock me if.
VR came down a little bit in the near term but.
But I think long term.
That increase will resume.
Thanks, So much good luck guys.
Thanks Brent.
Thank you.
And our next question comes from Allen Klee with National Securities. Your line is now open.
Yes, hi in India offshore business.
To what extent is your ability to do business impacted by stay at home orders.
And to the extent that you had created.
Areas that had special security for special projects, which.
If someone's at home is that still allowed to be done.
That's a good question and I'm glad you asked it the answer is.
Interestingly I talk about the business continuity plan. So we were already doing a work from home test in India.
Before the lock down was announced so we just had everybody stay home that first week that was supposed to be a task went extremely well really no as I said no disruption at all.
So.
We already in that mode. When the Lockdown order came and so we've been remote and everybody working from home in India.
For that whole period, I think if we're probably going on five weeks now something like that.
So it was a.
Really a completely seamless transition there.
Thank you.
Thank you.
I'm not showing any further questions at this time I would now like to turn the call back over to Jeff Davis for any closing remarks.
All right well. Thank you all for your time today I appreciate it and we'll look forward to talking again in 90 days hopefully with the even better news.
Thank you.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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