Q4 2020 Earnings Call
[music].
Ladies and gentlemen, good can locum today's earnings conference call.
Oh, what am I know its bottom line would be in listen only mode.
They won't be an opportunity for you to watch questions. After the presentation conclude.
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She got an open he told by pressing Star then detail on you touched on California.
Please note that this conference is being recorded.
I know in the conference so wondering if somebody might do.
Thank you went over to yourself.
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First apologies for.
Sorry This LP.
Oh, good evening and good morning, everyone on the called <unk>.
Okay. Each of you on your loved ones, you'll see in these extremely difficult times.
Oh, that's what I'm sure Yeah just ended.
You bet events are actually going exceptionally yet.
He is 9.8 fishing in constant currency deliberate Turkey whiteboard to check operating margin.
Did you give me revenue they could you give fishing.
Oh, Okay did you guys and you know in Q4, it becomes 42%.
<unk>.
You did this $9 billion large do each fiscal year.
Earnings per share agreements when she was right.
Yeah I didn't factor.
Gosh connection.
Okay.
In our history.
In Q4, you changed your view of between 6.7 year on year in constant currency. Good Pinky was 41% operating margin you'd $1.6 billion dollars games.
Some of which in the last few weeks Oh support.
We closed the ever been extremely strong cash position $3.6 billion and no debt.
<unk>.
As the last week, a few weeks or so be it as Dr. David.
There is significant we had already activated a business because you've got you could've been bench triggered some employee safety lunch I used to do.
Could you usually have 93 cents employees working remotely.
That is performed.
And again, if you shouldn't see tremendous.
They all want teams.
He shared with you more on these new turned the corner.
In addition to that yes, Dave.
Financially secure if you have the company an absolute focus on dictate it could get gosh you.
We have no activated golfing engine program cost control introduction.
Yeah, I didn't even sure so I'm not sitting highlights of this nature the cold.
Yes, gosh, I anticipate near term challenges in the business.
Across all sectors industries.
However.
We see infused into some of trends in child virtualization, well cost transformation.
Production programs.
Discussions with signs indicate they would like to consolidate their work will be strong player like gosh did exceptionally well served as the liberty.
Adjusted Heap Leach, 92% good old working.
Extremely strong balance sheet.
I think those trends you know that's good stuff in the medium.
If you spend a few minutes you shared with you.
Being outside as well.
Supporting our communities that we live and they can.
Why Oh Foundation Yep dedicated therapies hundred kudos to what you need threats.
Leading how can we see the prime minister scares fun in India.
Hi, I'm supposed to put your capacity you're right. She then ventilators testing kits Gpus.
Nine health workers.
The U.S., we would think bauxite, there's online Institute an online learning platform do you just school children and families should be can access high quality computer science education.
From home Godfrey.
Coming back to business given the uncertain environment.
You'll be pandemic.
Karen business being not by volatility.
You don't feel it can be good to get us to provide guidance this financially.
As it is I guess, it spending providing guidance on revenue growth.
Operating margin, if I mentioned, you're catching up.
Given our strong performance in the just can you just fine I'm sure I'm not strong cash position.
He used to announce a final dividend did they can and should you be.
Thanks, 60 pressure they used to be dividend.
Well this financial year, <unk> 17, 50 fishing.
I'm extremely groups, we get employees for their diligence to get stressful period and trials of the good they have to get it for flights.
Right, Yeah, I'm sure that walk like you just yet.
Yeah. Good domes trends that you believe didn't help us navigate the speed good Nordstrom detriment.
Yeah habits 16, so Chris I'm trying to calibrate yeah no.
The good thing, which I don't get what clients are looking tool and you see good traction.
I believe you do get declines across the entire aspect you know that needs.
Being accelerating that digital journey and extreme automation cost efficiencies.
A highly skilled workforce.
2000.
<unk>.
Fashion it to be working towards making accounts exception.
I'm sorry delivery capabilities.
$3.6 billion in cash on a victory balance sheet, which gives us ample liquidity.
Well that I told my comments and handed over to you.
<unk>.
Well what do you.
Thank you for me.
Hello, everyone.
Let me start like somebody like him.
Yeah fix drops off what the football club.
Well at all but I mean.
Instead be doing wonderful.
On trade talk show that mix remained stable cheap eventually.
But and then B.
Oh, I want to pull it might be.
The Playstation dropped sequentially during the quarter.
3.5, but then.
Partly due to go read may be you did that make on stage.
Lotteries and they said healthy.
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And then you get used to be sources, such as he said.
One did you can find mentioned every chip communication manufacturing and high Tech.
You didn't like seven better my medical.
Hi, good from Europe.
Good evening Leap, then you'll see dog eat what should happen during the last few weeks before that's despite equal we'd made differentiation.
I appreciate it on a standalone basis, what's like Yeah, you had at 18.2 person.
Well, what about voluntary attrition they do so addicted to pinpoint one thats it.
I'm to keep on checked but since last fall.
Are you, having more than three I'm pretty sure doing.
Yeah, I phone <unk> patients that I said, he said itself you have people from instead of the joke in December.
This is part of the whole focused on ensuring their hypothalamus Uh huh.
Well, we do it right.
We finished the year get the strong 9.8, that's in constant currency growth individual.
Spiky back well, we thank you much no don't need money.
Well you look for the year plus 8%.
Well I hope all business segments communication, and if you do need because that's been subject.
And in fact city, Hi Tech and I'd say that's.
Accordingly, but you did go up it is quite good.
Exactly what the whole lot. This you did.
North America Europe, not nobody did go up in constant currency.
We had not been BGB up more than 9 billion and it's quite lumpy. It keeps people. So I, yet then you'd be pretty good yeah.
Moving to the business segments.
Between years, some weakness across the board, especially be HDL excretion that each spending.
That's that's focused on ensuring safety up that employees and they didn't business continued to eat right at the same thing I'm trying to be gosh.
Did you won't be back near at the moment as Betty parasites and believe some projects and they do a sluggish.
Well, what do we see long term opportunity as it goes on digital and good time summation gets accelerated.
Hi, necessarily such a month, if he'd been back from the declines across the board it gets really compared to the net interest margin.
Banking, so that you talked sort of expected big speed in increasing doing lots. If you did you have to get it did not impact on that topic.
You bet mailed to treat increased pressure due to higher like.
Let's go with Nike, we expect system opportunities bought <unk>, if that's what we just.
Did you get the bank capability.
He didn't pick but that's been hit hard, especially non density I put a nice day like fashion logistics exit.
Let me just because you have seen lots of people problem and can be lost sport pets, and then let's say a de levering up stock. There's been some this segment, we expect significant place yet on that for the segment in the coming bought that's.
The beat by strong, but it got much in baby is expected to slow down.
Now do you think your communication, but I'd like to step up in the last six can.
Yeah.
Yeah, Ben Plummer when somebody tells you complain.
Yeah, Ben depicting the Street you think that's yet you have to stoppage up all day events, and then but in screeching advertising spend.
That sounds like you know about and B to B you kicked this off <unk>. They all get delayed has the best diplomats, yes, that's got the kitchen priorities.
And then you do you still doesn't look like because both had strong growth in the last year it may not be even across geographies.
Although the boy you prices and demanding a plate they'd be shooting.
<unk>.
Well I mean did you expect it to be beacon didn't yet.
I'm still sitting segment recorded double digit growth in the last year, despite weakness in automotive segment, and making but yet you could take loss. However, what we might be good access, but it did by making the exception.
I didn't bites, but they should all production facilities across the globe.
It appears that probably like just try when did you have two cats and dogs JAPIC theater pitching the street you bumped up order book and believe it each.
Did you believe build strong cheer up every new reaching 41.9% agenda for the Florida quite lumpy.
3.8, but then in blood to sort of play 90.
Don't seem to get the living you wouldn't be lost fixed good luck I think 7.8 Benson on constant currency.
The global pandemic is having maybe slightly weighted back so I'm thinking that Steve.
Demandforce business didn't mention I don't believe you, usually watson and increasing again.
I think more fixed you've been making.
Well you more than top employee experience. So I guess, yeah, and I think you call myself, but he had been forced got shouldn't that be itself state.
Now did you said just to support the Jade.
I shouldn't that be should be since your deployment Jade.
Cendant expedient thought it shouldn't your door locking that you put the biggest.
Yes continue to feed the needs what investment that on because somebody can a neat but that's it can have been Maggie good sticky beacon technology could complete you did face.
Our focus remains critical infested, but no more than ever.
Is there Josh you hadn't had been they did have to be getting did you said we said.
Let it get their abilities I don't did you can spend again.
Yeah My list.
That's the money dog did you can capabilities.
Oh, yes, subjective I, just I don't yet and crossed 1 billion doesn't use at industry, leading bodies. Additionally that when you put employee sunshot dimension and be feature in the appendix didn't launch.
But I couldn't handle what the new London.
Well I'm not Fivetwenty I'd say [noise].
Got it.
Q4, and every couple of things like 20.
Moving to how we have to starting to pick up you try and do you think I'm [noise].
Operating margins of 21.1%.
I could 21.9% good quality.
It's probably [noise].
Neither.
90 basis points margin headwind.
Hi, good utilization in our PDP decline [noise].
Yeah, then I guess he had good about 40 basis points this quarter.
When do you guys in the U.S. firmed up nicely I couldn't be one you could that change in the U.S.C. I love pre approval process.
We will get back in the March quarter.
[laughter], it's all receivable pretty good luck on W.P.L. in higher for your thoughts.
Well 50 basis point [noise].
This was offset by the rupee depreciation up 2.1% against the dollar during the quarter because margins by another 50 basis points I know, the 50 basis points of mortality costs and other cost optimization megawatt [noise].
Oh, yes.
Well, David to 69, [laughter] collections like demonstrating in Seattle.
$10 million auto, which was a yard increased 17.3 defense [laughter].
I wanted a $93 million.
Let me talk about.
Randy.
Well, that's 21.6 to 10 quite like Crazy, we do not Guy Banda can do you want good for anything [noise].
The one point I can go up in upgrading market, where a 19 well let me get the compensation increases. However, these are all I know you're night vision wafi offset by that cost optimization I guess.
He did a heightened 16 billion target [noise].
Well, if I can see operating cash flow group it seems like what the fence.
2.611 billion.
Free cash grew 12.1% and crop.
Hi.
Driven by a robust guys getting great healthy cash balance of 3.6 billion. The border recommended a final dividend over PS 9.50 for sure it's really as I was going up.
Also be 17.5 star Fytwenty, because if they're not by 19.
You got cash balance was 7.6 dependent useful.
The 7.7% in Q3.
Looking ahead are you I 21 will be back could set up you feel declining interest rates are human and [noise].
Yeah, I'm confident that time, I'm, just thinking like dependent I guess three [laughter] operation.
Liquidity and cash money into the top priority.
The good.
What we got if I could give you collections of receivables and then you have the block gosh.
<unk> reduction in Capex barring anything on Nondiscretionary spend [noise].
[laughter] balance sheet disappeared in local currency credit rating, obviously from Moodys gives definitely not the bluntly doing besides.
Secondly, our focus would be if they feel operation.
Well you need to be feeding them, but you have to make sure they're not decision making process.
So the uncertainty we see other situations event.
Even balance chop them margin.
Long term sustainability by making no regrets no [noise].
[laughter] cost takeout.
Right.
Let's start with I'm, just doing the last few years, because even more critical factor anyone.
You have in Boston, if you do that.
Yes, I imagine that shows emanating from the utilization you could supply and demand mismatches.
That's a good differing foundry increases like the notion.
We need to make the hiring plus that's [noise].
Good night.
Freedom discretionary spending.
We'll also look I'd be bad gamut of other coffee like we have other situations.
I always to be stopped optimize it couldn't be better automation.
Like because I'm not sure.
Doug.
Continue.
Yes.
Yeah.
And we'll keep you up guy and I feel kind of didn't give me your name, but love to but other stuff that we can open up the quite quickly [noise].
[noise] well.
I'm not asking the question on convention anyone of those she still wants the question I stop unwind I'll get excellence.
If you wish them well guess what are some question kill you have you thought into.
Hi.
Yes, it's not asking a question.
Ladies and gentlemen, even for a moment why the question came attendance. Thank you.
[noise]. My question is on the line a phone call that's an awesome JP Morgan. Please go ahead.
Hi, Thanks for taking my question.
The first question is suddenly to understand the need Gulf guidance. This time, but based on your visibility on demand I know, it's an exception, India and the order book and as long as they should do high how should we think about Oh, you know when you get back in <unk>.
And just sort of the rhythm you wouldn't disorders either in terms of did have your profitability levels last seen in December in March.
The shape of seasonality revenues might turn out this year. Thanks.
[noise], Ohio.
That means.
What do you have seen Kobi is there.
With all that is no you didn't see I didn't see and then seems it wouldn't be back.
In.
The situation, where do you have a clear view.
To give the guide is.
Good day, we definitely see into shops to.
Some concerns.
There are just business in London.
Extremely difficult.
However.
So when you start to see.
This is this environment starting to see the light Indiana.
No we do back.
Well, let's see she's doing your guidance.
Yes.
I'm here today, whether this is for X quarters are like waters.
Our sense is the first all there you said I think it seems visibility on the go into sectors.
Chad.
Just to dig deep in London.
I would probably be some secondary effect.
It also depends.
How.
The medical situation.
So be it wants to do so.
Commenting on the sidelines, yes, well do Youve any kids and he's already discussion that's on many of US. She didn't leaderships I've had with times, there's a strong interest in consolidation. It's falls off there's like US there's a strong interest in looking at its cloud move.
Movements, and making changes individualization, there's a strong interest in looking at its peak there'd be some.
Captives that should become more to deliver an all of these areas really exciting spend the median stem given us trend.
I'm just doing the financials trends.
There's always interested slides haven't consolidation I keep all just you sort of the music M B C or somebody else.
Thanks for that started in the in the near term or do you think that we'd be any changes skilled cabins are done policy just to keep the powder dice what acquisitions or other movements you may have to me.
[noise]. So I think that's where I think I've gotta look quite yet you can you maybe I'll speak I should say.
So I think like I can do you have enough headroom I'd love to see if any assets, it's come up and that's tough during this period.
The other thing do everything I'm just thinking.
Alright, thank investment.
[noise], let's take the next question.
Thank you.
Right and it sounded like he thought things from bank of Montreal go ahead.
[noise] hi, Thank you very much I wanted to ask about any boundaries or any signposts that you could give us on your margins. So even if we stay away from revenue comments.
Is there any any kind of minimums are floors, you think the business could sustain even in the face of what is obviously incremental revenue pressure.
And door, you mentioned that there was 90 basis points, a cobot impact and.
In the current quarter.
Is there any incremental covert impact that we should be thinking about in the June quarter, but just some broader comments on just margin trends or boundaries are things to consider as we're looking at our models.
[noise] Yep.
In fact, well they love me about 40 odd million 32 million to pent up backlog supply led.
Because I really ramping up I need movement what someone.
And a better data back was the mom <unk> pop you compliance.
I could not giving that's supposed to work from home and partly because sometimes don't so that was at least until the last window. So that's pretty much to do not like a nice 90 odd basis points.
As you are looking into this double faulted actually maybe pricing to be what can they didn't make a the figure of legacy, but then the fault.
Hi, good much much higher and likely bled off so that's number one so that's that used to compute.
Well like I think we should be pretty busy day, leaving money on the table.
The Q1, yet that might look without looking I don't I'm not so you know remedies pick I wouldn't happen.
Got it making them I've been doing like I said, she does that mean, you've talked about before moving out of the hiring season.
He's on the.
Promotions a fees on the salary height.
We've already started off to the movie. So yeah, you know that's been batteries that.
Good luck in there was a yet.
You know people hired to pick up as it goes up.
Well, you would really be matching attrition during the quarter, that's where you would see I hate that.
Well done in fact of course is going to be under utilization.
Adam I look back that's allowed itself out.
Oh I believe you can do like I said I'm I've been up my they seem to be was intended automation.
Oh, the on site they make riches.
When you're doing I'm Lucky love doing that because although we expect a D.C. wouldn't be a and B U S. One factor.
I can call you know how does it they've done well.
He loves it even look at excuse me.
Oh, you know that's completely.
No that's the piece to Capex.
He loved it and the margin because it makes no cash making sure that our liquidity cycles can do really well I mean, you didnt them that they need fed fund any signs of pent up.
Okay.
But like I said, you know what if there's anything to go back they phone collection quota [noise].
Okay. My follow up question, then is I wanted to ask something that Tcs mentioned last week in that.
The comment was that the financial crisis.
Was that lease from a growth perspective, a relevant benchmark in other words, the first quarter of the financial crisis.
Revenues dropped a plus or minus 10%.
And I just wanted to know is that industry perspective that you would endorsed and what they need by that is a just a sequential drop for industry related revenues as investors think about the June quarter is the financial crisis. When that first structures that are relevant benchmark or do you think this is a different.
From the financial crisis, Thanks, very much.
[noise] Hi, this is something though let me try to address that falling I think I sense here is a this situation is.
I'm not different from what Sean solved.
I'm showing no prices since a few years ago in that diffuse across all in.
Yes, and all geographies you could be a there's the incredible financial stimulus. That's a if you use the U.S. puts together and it would show.
Strong education, that's each other's European Islands.
I'm sure you so certainly the open region.
John did I say, they've got some distinctions that you see everything or the actually fyfe instrument economic sector.
They do how that impacts Q1.
It's definitely not.
So straightforward confusion I think what it's clear that is there wouldn't be obviously some in fact in Q1.
Then we love to see how just stays out because I didn't get a counterbalancing forces Pcs fiscal stimulus false becomes more dominant.
Is there anything on the medical side, there's one set of outcomes. It see if the Medicaid side has spoken second wave or there's another set of outcomes and that's part of the reason why I believe you don't have a sense also.
What's what is this sort of quarterly progression you have your they focused on ensuring our London showed very.
Very aggressive cost line.
Very focused Oh in this view that 13 should be I do appreciate it keeps it needs to go to live events and we as extremes trend that we think will emerge with all of the consolidation in the media.
Okay. Thanks, very much that's it for me.
I think.
Next question is something I know I can sometimes you'll be yet well ahead.
Hi, Thanks for taking my question just a follow up to that you. Just couple of question. So I see what's the kind of okay.
Thousand eight since I'm, saying and I do get your point that it's not really Apple stuff that's yeah.
Typically in downtown we do see a sad Martha facing pressure as well you kind of you know give us your sense on how this could be the same other since the last time because it can really in a very strong technology cycle, what I'm trying to understand is that what that offset some of that typically I think that shows that you see.
Not spending in line with catastrophe.
[noise], let me start for that then Ah see London might not all the points to add Stooges.
I'm trying to see.
We see depending on <unk>.
C O <unk> five times is that segment they'd be different levels of false stress among them.
Yeah, as you mentioned that they've even shadowed yes.
Absent views James <unk> presumptive instead of course in a high tech.
Constraints in life Sciences.
Sitting in do you sort of.
Consumer safety group should be so they're not pockets of strength and there we see I was just some positive activity as well.
And some of the service offerings, where do you see if you're going to fill mcclard buying perspective.
These trends there as well.
Do you believe you you've actually got a good set of investments.
The Liberty Salita, which lies issues are all girls transformation.
We think a those there's maybe a positive so it's a bit of a mix in terms of.
So overall you therefore on pricing.
Okay, and its in Texas that you and and I understand thank God until this lots and homes situation and have any shopping Stein.
How do you see this model anybody thinking on the medium to long term or and how this that's kind of tie into some of that along with them.
[laughter] from a market like this.
[noise] I stopped all things I've, even to light Baltimore.
[noise] I think what will be we're extremely proud of is this a.
There he rapid transition to be made.
Do you believe that 92% that's a.
Really strong number I know you're lucky resetting of yes, that's moving all so every game.
There's tremendous amount of into saturates security bandwidth capabilities, that's I don't see.
Already put in place and that'd be further or do they make all it is how big.
In terms of how we see the future evolving.
He thought it on food studies.
You can shape that you more color on what we see becoming beach.
Oh, sorry, selling or at least 10, Bath <unk> body shops, I know I must be ready, but to get above 90%, that's what people really want.
Well some old Navy most fashion or.
So.
I see I think they'll demonstrates that Oh, it's really and I didn't get did they tend to feedback from declines have been extremely positive.
Not much like somebody puts sensitive I think now why it's one that's we tend to get obviously, oh, yeah, but that doesn't make sure that seems actually mean prospects sad to be less than six CDP unfolds.
Yeah, that's enough that's 52 inhibition foods and other things.
And well known as the positive news that many flat okay got it looked like demonstrates that the Exeter getting just for let's say, we keep a I'm sure I'm just glad to be much modal put in so doing that.
That means that a into Canada or some other things that on the will be he had to grapple with even some states I don't that's potentially be said at least they make something but some of those would be so yes.
In that probably.
Hi, this is much more what's the other would it seems rather than any 60 can what do you keep oh I'm sorry.
The wants they must be all told me that.
It doesn't buy side of it.
Yeah.
Talk up the wise, so it wasnt books and nobody yeah.
Hi, Keith I think I believe it or what do you think it's and it's also probably fluff once people just thoughts if you've got sees Watson things like that they make it so I think fundaments speed, it's a new <unk> so neat.
I guess I'm talking on the signal, but it's Ah Ah this basis, that's really and they bring back some of that penetration holiday season that helps enough some of those sauce.
[laughter], Tim obviously that often medifast phosphate called do math, you don't have too much in real estate.
I'll sneak them don't.
That's not modern technology lost money in security and other things.
That's stuff I think it's outside somebody philosophy thing that's happened.
That does eventually that you would not be stuff.
My son, Lps, 80% Wal Mart, whatever I think that's been done anything I can let me if I get it can vary from its inception I'd be glad it's got some seven something that's see Abbott.
If you'd probably be much different than once we have seen today.
Let me just it's a follow up could you quantify the cost savings that you wouldn't get in Ah I guess, an immediate next quarter from.
Savings in travel facility, that's one thing [laughter] contracting and other savings you might get because the bet against activity and like I said.
He makes me wasn't done so if you do languishing Tyson.
[noise] [laughter] draw I think many of these like I said they'd be possible I didnt.
Well, there would be some cost optimizing sandwiches or more like I said also making it a mexico.
Because of your numbers every lined up on you'd like they seemed a little bit depending on how to model works out.
But like I said, you know, we're continuing to make sure that because I think it's early.
The nonrecurring decision.
And of course monitoring how he worked at my situation and then take appropriate action.
So I think I can leave it at that.
[noise] Ah thanks for taking my questions on the best and I'll come back at that stopping.
Thank you.
Next question that's on the line okay. Okay. So from that as far go. Please go ahead.
Hi, Thank you good evening I was curious if you could differentiate your clients discretionary spending.
How much of it is worth that what you would have been done you would have been doing a say a month or sell will go into how much of it is sort of shifted over to business continuity help you know move their work force remote et cetera. So is there has there been a change in that and then just that sort of coming.
Two in hand.
[noise] hi.
It's a steadily.
Not sure absolutely followed the question I think.
I'm shine on since it seems as if something Nazis <unk>, Oh, how someone else.
The question was what was the distressed maybe a month ago and how does it did it.
It does that's the question, we don't normally slick jobs or other square sturdy subject for schools gum.
Overall revenue however costs. So some of the especially work is bad we'd see some slowing in the near term. That's that's what you obviously did it if somebody else says is there some you know I didnt.
[noise] I guess I was trying to understand if the make up of discretionary and has shifted to more survival work by your clients and airports as they settle into this new normal weather.
Well have sort of a drop off.
After that so will you get a sort of a continuum of discretionary spending in the short run and then habits fall off off after that.
[noise], Okay I think.
That's not going to be not quantified how how that's my Lialda. He said he he.
They did some amount of that's sort of work I wouldn't give survival. It's much more focused on what could be then it fits that can be achieved.
They want to do they see mall virtualization.
All moved to the cloud I love the discretionary but it's still continues in this mm in Gandhi, what what would be much much strategic good for all those clients now and I don't know extensibility, that's going to see I'll follow at this stage.
We do see there's there's been more lucrative sessions labels and different sets. So it's discussions since then I shared earlier that the having the best Lawrence I settled that gives us confidence you tend to be didnt.
My other question that's around each one be an l. one he says here's the Trump administration is sort of taking advantage of the current environment further tightening the ability to get pieces and move people around so are you seeing that both from a.
Oh and impact on your operations, but also maybe a positive in the sense that as people. Other H one these and other firms I'll lose their jobs in the U.S. can you pick those people up to help you meet sort of onshore demand. Thank you.
[noise].
So each one separately.
Again [noise].
Oh, Yes go ahead.
Yes, I mean I can take that.
Yep.
Well, we do have not really feed their decision yet so let's say just 15 minutes when they move on and you lost three to seven on those things happened much sadly yes.
I don't see any any changes can decide ziggy.
Yeah, I mean, you wouldn't do that sees you wouldn't want to sum up or <unk>. So you wouldn't that salary I believe that's outside some people have bye.
I'll say tests, and Oh, you're talking to the U.S. administration to make sure that they get some belief and thought.
But it'd be dongen, obviously, I said, let's sit outside I mean is that it's not a five people on making goal and then he told me what I've never Gil Sadly.
This is Ah Ah that you'd be able to kick a dog fix it really depends on the demand, but I saw it could be a function of the much like some old ones left to be lots of stuff here. So I'll, let up that's been the beat its always been something extraordinary one thing I'm told me I mean, they said that's gotta, there's a lot to intensify.
Yes, Alex I could be the lots of stuff, yes, you have typically been more than 10000 gets nationally.
If it makes sense I would be if that's a U.S. depends on stuff. He has that rather than be delivered yet that's down to sound like you know we shouldn't hubs.
So if you got to in some sense not having mr. login today and lot of won't be pretty lucky U.S. ought to smoke in that sense [laughter] sexy, but yeah.
Probably less dependent on not what happens on the at Sun, There's one thing obviously.
They said they might not have another Alan.
Let them beyond this opens up the chemicals.
Thank you.
Thank you.
The next question based on the line up to be at least somewhat the nadeau startup and actually I saw that they need to go ahead.
Yeah. Good evening gentlemen, thanks for taking my question, Oh, I didn't get into French speaking back you would've been indeed sounds need as in the last movie so much and even in the first movie.
I, probably just would be inclusive talks he did not expecting or do you like to deal with and you're done in back on Dick's. It would be that even if you can be was some more characteristics of these deals which might have on what can I have duties, we jumped lipietz not D, which would because it's every two years he's been on so you need to cities thinking in that.
[noise].
So he I think what I Shannon.
So the water blips.
Oh I can start up and it's more just because you can until somebody asked them and that as I mentioned Uh huh.
Once again I'd be Ah Ah ward off them all at once in detail or what have been bed and Bath and then you could do you feel it sits inside lupus and Onebeacon financing somebody says communication manifesting in high Tech.
Oh until two ppt off 1.5 billion and [laughter] Delphic false next meal and again from the benefits of since it's not one that someone made because then I use that that's come.
So as long as you can see these students that have been a self funding, but he said and done if he says.
And the fact is that actually mentioned did not seem to three weeks before you got multiple that's sad and.
They have been put less money up this thing that's something that's something with a very intelligent taught us that.
Yeah, not simple cement, so I'll be very nicely.
Well you can be plumbed like sensibly filling up.
Yes, I mean, so I think they'll tell you have some of it or you know in any big due to a the only thing and I did that Ah you won't be that obviously concerned that these images on these students and they get delayed because of the petchem. Thank me given the relationships and given that this idea at lunch and maybe you had been able to which I didn't deals.
It's a mix of deals across edmonson across geographies and media costs I just want to go to that slowed due to some based on conditions application maintenance and application development due to interest services. These flows.
Boxes, and moving ahead as yet obviously, we have an existing portfolio pipelines lucky.
If I can try to move said, but I love to get on but thinking and.
Yeah listen to make sure that you don't lose momentum.
[noise] choices. So you can see that you're getting the last two weeks whatever dielectric we'd be happy not you going into plus two weeks will be a it's more of a block based kind of I'd like to again, not a kind of place to whats anyone particular segments.
That is going to start one thing to do.
Oh no definitive.
Sure I think where you see timing with even contracts have been completed eating.
I don't I don't see parties on but think about living units, but I'd love to see booking.
The feedback lines have to that I'm doing the best moves in deep on thanks, RBC I trained impact in the beginning portion of my first full year then it goes away.
[noise] I mean, I can answer that I don't see I mean, it's a new dates I don't see any distinction between here and then mark.
Face, obviously, Glenn somebody I mean, looking that but as I mentioned these sites that are that you should look like but probably more worried about intruding didnt spend did you pick up a bit on employees and thought.
Indeed, suggesting again 10 seven guys you can maybe physical elements that will obviously then starts looking at slide deck.
There's a started looking at each of the business Keith.
Because I didn't give guidance occasion that its saturday or not.
I think that maybe you should we be taken on that space. It's a at least another TV when you take quite a bit mid scale back I mean did you quantify.
That is a decent babies subject I don't think Ah I haven't got fancier name on it seems like a managed services. This morning, how much is uncertain.
Sure I. My last question is regarding that onsite bid I mean, I guess independently haven't been goes into can in place and you would.
Thank you for people, who can indeed, we've been seeing some utilization nice productivity challenges or would there given that there would be thinking how these days and directly to them.
Now with the demand is expected to be can shop here, what he's going to talk for instance that on managing the utilization of these employees or sometime it's been putting me just what you could have flexibility can indicate selfie drumbeats may not be video to speaking like no oh, so when I didn't talk on I'll give it would be impacting not much. It's Ah I think this particular you know.
Austin.
[noise] Yeah. This is everyone again.
At some point I didn't know what do you play station on say that's been indeed, it's in line with once they had flattened and Bath.
Obviously I have you had on so that takes a balancing but like utilities lasik and they are building if they didn't much better.
Then, Florida I didn't mean Dupont, that's the ads b I'm in the light up the Mad men, but I think obviously busy ghost Dawn I didnt.
It's happening yet in all Douglas Pizza I'd be lying on the newspapers and or anything like the lighting the base I'm not I I say at least [laughter] seats.
Well, let's not do school held stuff on and I did slip them. They tell it won't be until then absolutely was 11 W. Baird against Phil.
They do but did you would play station I guess I'm in.
Yeah. So.
Yeah that yet.
Options to make sure that have a false sudden defense or are they still have let's take a nickel I love. This on the odds of students and I've got to rights or hobbies syndication will unfold and that we'd have to make a deal I think the of utilization Gulf something like 60 Bucks. So you have enough to be like I said bad funded let's nines metal insulted bundle keeps utilization.
Sure I actually given all the best thing Steve.
Thank you.
The next question it's on the line up more she got pizza that Bush. Please go ahead.
Yeah. Thanks for taking my question isn't anyway to kind of trend trade in terms of the services that are getting it back that here and obviously, there's a lot to talk about discretionary that's impacted and non discretionary that's not impacted.
Can you give us color some color in terms of what's included in what you called discretionary and does that also including what we called digital.
In terms of the impact on or in the slow down that's my first question. Thanks.
[noise], Hi, sullied, Yeah, I think in terms of services.
Some of its own deploying can you speak itself or the I mean.
Or elaborate on those I think.
We definitely see some about services is the leads to and use it on salaries that shows you should actually getting traction or even some other services, which relates to assemble a bunch of Kevin work, which is especially the students others. It's four oh well who's on the you know sitting into.
Looking at how that plays out.
Richard This is move.
Not to develop a sense from all of that's what becomes the focus with Q1 agreement had.
My sense, so again as I should I be it is.
We definitely see the conversations beneath us having besides that relates to.
Some and it's it's a click to us from consolidation some benefits accrue to us from cloud some benefits accrue to US works its workplace transformation I business. She says it's definitely positive.
Those areas, which does it flows for let's say, it's observations on foam assaulted <unk>, that's one of the elements of digitally or that.
We see some traction everything that hedge signs to move more board Morrell said it looks like it because it was little remote booking a poor.
The other elements of Michigan, which.
And she was on that subject religious which we think we've become smaller ambitious.
[noise] that's helpful and then my follow up here.
There was some questions on pricing so.
The frame at the right way are you seeing any sort of after her efforts on behalf of clients to try to restructure contracts at this point, if it's too early to Oh threats to get there but is there any concerns at this is where we're going to get too and then are you seeing any.
The top potential competitors are employing any sort of disruptive pricing out there that could impact.
The industry competitively thanks.
So on all the competitors are two seasons.
Oh it he didn't lose in fact, there really do see some activity.
It was.
Sure.
The.
And the consolidation, which is even though some stuff logic competitive.
If those routes, which lost or potentially as efficient that's it every month as we Oh, we see some advantage is a clear to us there it does the pricing again.
That's fair is where.
Oh, the sexism balls in fact, its TV I'm sure yeah.
Some of these discussions because here I guess, if it's some of that Sir you happen to use would be.
These discussions also coupled.
The decision to its delivery models that says he loves her surely guardius and also a subsequent.
Consolidation or discussions are telling about throughout this series, we don't have a swap if I.
That's what my sense is busy some of these discussions.
Okay. Thanks for the color.
Thank you.
The next question if somebody like nothing fundamental sometime in the stake is Uh huh.
Hi, Thanks for taking my question.
Oh, maybe not what's the last cases actually be so because its doctors in financial services.
You saw no fans it on a in many integration then.
Let's see I, just couldn't compliance insulin so forth.
If you just look out and we see nice now when you think you Vicki.
Yeah. This is Ben that you can would come walk into a one there is some sort of recovery.
[noise]. So you broke up a little bit so that seems missing and then they are saying well. That's the question no I'm wondering if you do was you duty what do you see.
We actually saw a an artist then well doing did a comedy series come in terms of merger and integration spins off those banks.
And this can complain lead thing.
So when you resume nine Oh gosh I've read this stems around with you did you see and suddenly coming out in a degree.
[noise] my sense is even through this easier, especially as a C sent back to.
With this in the new normally the defendant did you couldn't continue to accelerate there's different components of it which which I'd like to especially there yes.
Okay, I'm going to this ER, especially the focus around the father of child discussion, but the seats figo moves or did you give them not to be a somebody that's it.
Sure there he conservation initiatives, which are even see Baltimore my sense is ER as it other than Oh.
Yeah, that's sort of.
The covered he sees selling to come back to you.
Oh sure and as a follow up to that Oh, So you see the Arctic comedy series last thing.
We saw norna view. So this is bill do you get any.
Good work I'm wondering acquisition.
No just standing around if you look at or does the nice thing, it's now a reasonable pardot, what well do the most windows.
Do you envision some sort of a commodity vision dead in cell phone or do you think that oh, well because they'd be far more transmission projects insulin. So for the next you see a suit do not do windows phone a smaller windows Oh, he was utilized or the <unk> syndrome.
[noise] if it can monetize these should bode well for businesses or somebody just comment do you have to sort of vacancy.
In Pos.
Oh, the demand side it looks Uh huh.
In terms of movement.
Then he feels good.
Well I said, there's a movement films.
The small oh goodness, if it didn't vendors to now Joe the most cases lose offenders.
Do you typically see the costs and he.
You could be benefit from that.
Thank you so much in the argument [noise].
The next question is sometimes don't line up all the I'm building from Cowen. Please go ahead.
Hi, Thank you I wanted to ask a clarification on the remote capability for the first quarter do you still have supply constraints that will limit your one Q revenue potential or is it all the man driven going forward.
I'll start off that's not either.
Hi, there there's something so he didn't have some supply constrain it's they're working through.
Having said that he decided to.
Good to essentially what we called 100% or.
Keep capabilities every out on a lots on submission.
So the either because I have some distance.
[noise] or see good look that's a very demanding seven centsfive anybody swanson paid out acadias fans.
I'd like to have not even if somebody's going to offtake from what some of that meeting next month, but something like because it's one that's still fair last dawn on an extended milestone then leaving.
Need to be Catlin definitely it's just that's that you're not be able to get people to come fall piece I'm off that's fun plus and then be also having their loved ones occasion, something but they don't even have gone home what.
Okay, and they don't have any fundamental satcom now that kick them.
That's not bad.
Well need to get feared off <unk> does not be would that create some kinda leadership, but once it doesn't get slack you should be able to get people back Donkey indexing, then I guess that's out at about nine I have not given some you should be should be able to somebody to walk in helping.
Yeah, I just want to add that maybe looking at 97, but 90 feet the thing.
If you know on site moved up a good really understands the one third of you know I believe basically across a much much higher so it might be coming to us at 90% doesn't mean that the movie 70% of government due to supply.
Okay. That's helpful.
Large deal signings you've had in late March in early April for the new deals that you closed or those projects ramping up and starting on a normal timeframe or any of those delayed.
In fact, a I make one comment on that and then baskets for the most can also ask it.
And one of the largest Ah.
Well, it's ramping up a enriching the middle of all of these activities.
They are not sure early into the European countries, and we saw how to all of this remote working we could not Michigan Saddam got off extremely successfully and on schedule I. So that's one of the positives that you see a bit <unk> for more color on the specific <unk> Oh Soviet your last.
Hmm.
I think Scott can you explain sorry I.
Linespeed, usually would I be normally I don't see shouldnt men that I'm fine, but indeed do you would send you didn't mention.
In fact had the Badging and do it if we took a significant number of send people.
One thing plug is supposed to be able to do on building on maybe most of my that's imminent living side. That's 19, U.S. again or do I guess suborbital I'd be proud that sat and decide solicitation and loved doesn't happen, but we were able to give students I know that's been can start smoking or maybe more fancy. Since then so we had a couple of the attitude is that he had so do you like.
Well lands on thing so yes, that's correct that's something like this it kept you and that's something that's been completed that's even in situations like that that are using that technology and that collaboration things, we should be able to defend peaks and troughs.
Uh huh.
Looking forward I don't see.
It's up a challenging time, sometimes if I missed canceling it snowed on some of them, but feeling that got investigation.
Mike anything thats okay.
Well I think.
Let me kind, what I thought that'd be cash in many cases, you have seen a limited work on buff thoughts I know the most sounds isn't the most t. houses. So that is obviously a positive once now that wouldn't be instances bad.
What I'm just moving on possible. This situation of the complete lump them and you might need some percent digitally but it's a deal because that's what this does not give side could be there, but I know you're not too. Many of these children sort of been structurally delayed because funds I know walking by businesses.
Okay, if I could squeeze one more I hear you you mentioned vendor consolidation conversations that you're having more clients in what industries is that occurring.
Hi, Scott disaster, and many are thought leadership shows how bad or sort of discussion Uh huh.
But I do I did discussions across multiple sectors. So since it think of that stage delisted sector.
He and he has its related Monty.
Their clients he.
Some smaller vendors again should be having.
Challenges as they then goodemote working.
Hinges on.
And I'm sure.
It didn't seem to medium to long term.
In other cases, we've seen this you are large slimes, where they want to make sure that the.
Got it takes a walk commission.
Our mall mall, so there's nine.
That's true it's not specific to your or at least in industries and the discussions I have I didn't I leadership.
Okay. Thank you.
Thank you.
Ladies and gentlemen that sounds a lot of questions today, I know I'm upon seems somewhat.
I think on them well, what do you Uh huh.
We'd like to thank God, we won't have any help on the phone.
We continue our conversation with a book.
Some of them [noise].
Thank you make much money management team.
Ladies and gentlemen on behalf of Uh Huh.
No its content on I get the joining I find you may now disconnect your lines.
[noise].