Q3 2021 Atento SA Earnings Call
Good morning, and welcome to the <unk> third quarter 2021 results conference call.
Today's call is being recorded all participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
After today's presentation there'll be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone to.
To withdraw your question. Please press Star then two.
If you were at your computer please use the submit a question box in your webcast viewer.
I would now like to turn the conference over to Mr. Pablo Sanchez, Chief Marketing Officer and E. S. G director of <unk>. Please go ahead.
Thank you welcome.
Welcome everyone to our third quarter 2021 earnings conference call.
Before proceeding. Please note that certain comments made on this call will contain financial information that has been prepared under international financial reporting standards.
This call may contain information that constitutes forward looking statements, which are not warranties of future performance and involve risks and uncertainties.
Certain results may differ materially from dosing the forward looking statements as a result of various factors.
We encourage you to review our publicly available disclosure documents filed with the prelim unsecured Ts regulators and we invite you to read the complete disclosure included here on the second is lights of our earnings call presentation.
Our public fillings and earnings presentation can be found at investors thought, but then the dotcom and.
Unless noted otherwise all growth rates are on a year over year and constant currency basis.
Here with us to these call are Carlos Lopez, Abadia, <unk>, Chief Executive Officer and of course, they have to pay the chief Financial Officer.
Following their prepared remarks, we will move to a Q&A session.
How should we have been doing in the rest of course, we will do our best to answer all questions received.
We believe the Q&A session is relevant part of the quarter. So we encourage you to ask your questions over the phone through the web cast systems or even by sending an E mail.
I will now turn the call over to Carlos we will do todays call for more moderate office.
Good morning, good afternoon.
Thanks for joining us today.
We would like to discuss with you today, a strong set of Q2 results that reflect the continuing improvement.
Yeah.
We saw continued improvement in all key financial metrics, starting with revenue, we focal 1% growth in the quarter.
Have you done.
14, 7% growth.
Margin of almost 13% one two percentage points higher year on year, which puts us on a solid track to meet our guidance for the year.
Revenue growth has been driven by Russia.
Based on performance, what we're gonna finally get come to delivering 19% growth in the quarter and continued growth of our U S print.
U S has grown 40% in the quarter more than doubling anymore.
Our EBITDA performance continues to improve with higher EBITDA and maybe the market since the beginning of our transformation was $51 million in the quarter.
141 million to 90 system.
We also continue to reduce leverage with net debt to EBITDA of two point it already we can our cadence for the year.
This performance is critical cleaning turbine, while we are shifting from legacy sectors to high potential sector sale.
And even more importantly, managing the transformation.
We continue to improve our sales engine and the shift to new economy high potential sector.
We've increased our share results for the nine months to September by 34%.
More importantly, the quality of the sales.
EBITDA margin of new sales three percentage points from pre pandemic levels, one tumor high currency sales 777%.
Revenue picked.
Victor from media and more Nathan representing now.
One 2% of our base up from eight 3% last year.
We have added 14, new logos in Q3 and 40 in the year to date.
No.
<unk> financial indicators I would like to talk to you about something very important attention to myself.
The impact that we have on the people and communities that we touch.
We are proud to have been sort of loose.
And do you plan to.
To leverage more of it into the strength to make it easy.
Well its brand Coca Cola three areas of environment, social and governance.
The company, we sell on the 150000 employees, we probably have an opportunity to make a greater impact in the facility.
Let me highlight our initiatives and diversity the scaling.
Killing and even first job opportunities to many.
We are also very proud to have joined recently.
Obviously I've come to petition the U S.
I'm looking forward to keeping you updated on our progress and contribution.
Yes.
Finally, we want to reiterate our guidance for the year and give you visibility to our targets for 2022.
Two years ago.
Time.
The Investor Conference, we shared with you our three year objectives.
And then we are hot that make many changes in our industry in markets, where we still want to reiterate those very same objectives for 2022.
We disclosed that we should see.
That we suffered a cyber attack in Brazil that detected early I think that theres more number of servers.
Now that we are back to normal I want to take this opportunity to thank them publicly.
Totally a learn that many of them have suffered timna effects as well.
Unfortunately, a common challenge for many of them.
Thank you very much.
Yes.
Okay.
Yeah.
Thank you Carlos and good day, everyone I will start by presenting more detailed how we can gain weight to deliver on our turnaround plan and why we are on path to achieve our 'twenty to 'twenty one guidance targets.
As we could gain is it getting the last phase of our transformation.
We have focusing more on accelerating profitable growth, we have been able to achieve stood at.
Looking to the numbers on slide 10, you can see how a key part of fingers.
We've been performing very well year over year with total revenue growing 4% boosted by move.
U S multi sector and higher Telefonica revenue English it.
The three 5% growth in multi sector say this was mainly driven by the Americas due to.
U S slides wins, mainly in public services.
U S revenues totaled 29 million in the quarter and 84 million in the nine months, a 40% increase compared to the last year.
Importantly, we continue generating profitable growth.
Actually we delivered the best first quarter ever deviations, we initiated the transformation plan.
We delivered growth across all regions.
Our strong performance.
Like the client wins in the U S and Brazil combined with the success of the efficiency initiatives that we began implementing in 2019.
Looking at Ash.
51 million of EBITDA that we delivered in Q3 puts us on track to meet our EBITDA margin guidance for the year.
Our consolidated EBITDA margin was 13, 9% for the quarter with.
With Brazil being the I liked.
It's margin increased to 17, 6% from 16 points of a chance.
In last year.
Sure.
In the Americas, we expected margins to quickly expanding casualty continuing growing in the U S market.
Of note U S programs.
MBT their minds around 20% in the Q3 2021.
Moving to the next slide our nine months results were strong too although a testing the chipset.
Interesting information.
We'd like to.
To highlight that U S was 40% on the nine months and is consistent with our strategy to expand into enterprise readiness, which now represents 85% after a dollar revenue with 28% of EBITDA being in.
That's correct.
But the key message I want to de lever here is at 12.6% EBITDA margin.
We achieved.
The nine months.
<unk> has already put us within our guidance range for the year.
And because Q4 either seasonally stronger.
Our confidence in our ability to meet our full year guidance.
Instead, it was mentioned that we expect it to finish the year within the guidance range or better.
Actually in terms of top line growth, particularly even the high demand for <unk> services, we I shouldn't correctly.
As I said at the beginning of my remarks at the main challenge now is to use the solid foundation, we have built to accelerate profitable growth.
And the main ways to accomplish that five to continue explaining.
Our U S business.
And increasing our exposure to hard currencies even.
Now, let's take a look at our cash flow, which also represented our best performance since launching the transformation plan.
We generated 26 million of operating cash flow.
And nearly 7 million of free cash flow also a record for the first quarter.
I would like to play in charge.
Positive free cash flow wasn't there.
That's why it's being a quarter in which we made one interest payment.
For the nine months free cash flow was negative $50 million.
We advice.
On the next quarter's call.
This was mainly due to $16 million in tax payments that we were postponed from 2020 under government.
Pandemic relief programs.
So 11 million in one off expenses related to the death of references.
Excluding these one offs and growth related expenses working capital and Capex.
Run rate free cash flow was approximately $14 million in nine months. Thank you. Thank you.
Cash Capex was three 2% of revenues in nine months.
2021 tests compared to two 6% in the same periods last year.
The increase mainly reflects investments in Nike to allow for an acceleration in growth.
In the future.
Finally at interest capital structure, we ended the.
Quite too we've met that.
By $50 million and a strong cash position of 146 million.
Our leverage was two eight times already within our full year guidance range of two five to three times.
This is a direct result of the consistent improvement in EBITDA that we havent deliberate interesting question.
So we have been change fees salary Investor day in November 2019.
Improving the capital structure.
Is one of the key elements of our re rating process.
In addition to the 'twenty to 'twenty, one we are confident in our ability to deliver even more and to reach our target net leverage of between two to two five times by end of 2022.
I would like to take the opportunity to reinforce that we maintained the guidance for 2021 and the guidance for 2022 has any presented in the three year plan.
This concludes my prepared remarks, thank you for your interest and support let's go back to Carlos for closing remarks.
Okay.
But.
Thank you very much to all of you.
I think we covered.
<unk> that we sold.
Some ideas that we have for the future and I'm.
I'm thinking you for your attendance and participation I would like to invite you for your question. So having the dialogue they always enjoy much more than the prepared remarks.
We will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
If you were using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two.
If you were at your computer please use the submit a question box on your webcast viewer at this time, we will pause momentarily to assemble our roster.
I'd like to turn the call over to Mr. Pablo Sanchez for the questions received via webcast.
Thank you very much we will start with some questions. We have for Redwood receipt. So first one is U S sales have been strong how sustainable is this growth and do you have a long term market position in mind.
Well they have been strong for sure and we expect it to continue to be.
Do we have a long term a target.
It will continue to grow we started from a relatively low base.
And.
Oh is it is always an advantage to be relatively small player coming in we expect to continue to grow at a very fast pace, we got that 40% growth in revenue subsea yourself.
This quarter.
We expect to continue at a hydro debate.
And quite.
Quite frankly from a from a market positioning perspective, one of the things that we've learned are competing in the U S market.
Is that we.
We.
We seem to be I think some of the clients tell us that we seem to be the.
They are the best kept secrets, Oh for U S market a company that is in the top five worldwide and is virtually unknown.
Thanks Dennis.
Get more credentials, we are better known in the U S to even have a better opportunity to serve clients and to continue to do well.
Thanks.
Go to the next one and do you expect to expand your base of Tech media I'm one of the clients at the same base or can you accelerating.
Well, we are we are very happy with the pace at which we're growing obviously, we would like to accelerate that as I mentioned in my remarks, we ended its been in the slides that will come from four 8% eight three percentage of our base of 11, 2% store base, we expect.
Spansion to continue business sectors that are highly attractive to actually chosen for recent oh for several reasons one of them being that they are naturally high growth himself. So you start working with companies in these sectors and there is a.
A lot of potential to grow with them.
You shouldn't do that they tend to be companies that.
Place are higher.
So hi valid too on higher value services high quality et cetera allows us to deliver more value to them and to get better margins ourselves. So there is a there will be a continuum and.
Amphotericin detectors and expect to continue to grow to grow in this sector.
Yeah.
Next is can you comment more on main drivers of the margin expansion in Brazil is there more room to improve there in terms of cost structure and in the other markets.
Well it is.
Always opportunity for improvement. So we are happy with the results and the margins that we get in Brazil, but there's always opportunity to do more as everyone else.
So yes, we do expect and we will continue to to expand margins in Brazil and elsewhere.
Equally in some markets, where we have even higher opportunity.
Margin, there's two components to that.
One is because they cause sometimes when people talk about.
Efficiencies Theyre thinking about just cutting costs, while we have been deploying that we will continue to deploy he's been in waves. So there'll be some that method of practices and technology that allow us to deliver the same or higher quality service.
A lower cost point, not simply just cut cost cutting costs.
And natural end to it.
But improving the way you operate has the potential of continued to give us.
Mentally improvements year on year on year.
One component of we still have opportunities to do so across I think.
The other component.
Is there is a revenue component of the margins in hydro margin, while we felt we have improved.
Not only in the amount of sales the sales growth hopefully quality, a little sales and part of that is reflected on higher margin selling higher margin services and higher margin sector.
I also mentioned in the prepared remarks that that we have grown three percentage points.
Sold an insult margins so that shows as well the digital opportunity to to improve also from the.
From the al sale titled It from there.
Revenue driven side so.
The answer the short answer to that is yes, we expect to continue to improve.
Thanks.
Nicky as well.
Are you a medium and long term targets for hydrocarbon seed revenues.
We don't have any specific or a hard target for hard currency. If I can do is hard.
And the same in the same sentence, we expect to continue to grow.
All of our hard currency revenue and margin.
We're doing that and we expect to continue to do that is there a target.
Clearly, we will continue to grow.
Hard currency sales at a disproportionate large.
Share of our total sales.
And we expect to continue to so significantly over the next foreseeable future, particularly I mean for US. The currently high currency markets seem to be EMEA and U S, particularly in the U S. We've seen I would expect to see continued growth at a very high margin.
I think that we have one question on the phone.
And that question is from Vincent Colicchio with Barrington Research. Please go ahead.
Yes, thanks for taking my questions.
Carlos.
Curious oh in terms of the cyber attack.
Do you have insurance for that and do you get there is that those revenue losses get recovered how does that work.
We do have insurance.
And as I mentioned.
And Ian mentioned in the remarks that I think we alluded to in the end.
A press release when 60 it when it happened.
The impact in terms of the number of servers and it was relatively small we detected very yummy are.
We have just to give you a sense.
7000 machines in Brazil, only and Egypt, you know only about in the <unk>.
2020, something machines were affected we typically natalie.
We clean it up.
Essentially in the first 24 hours, so I'm very happy with that.
The speed at which it was detected and and corrected I hope so.
Allow me.
To take the opportunity to thank all where our customers again.
I as I mentioned earlier.
He was a it was a.
Price accounts say was a pleasant surprise, but it was a surprise.
To learn how many of our customers have been affected somewhat the multiples times in there.
Hum.
Pat.
I can't thank them enough both from the public and the moral.
Note that we will see but as I mentioned we.
We don't expect to I think I mentioned on.
On the presentation that we don't expect to affect the guidance that we've given you for the year.
And then in terms of the Telefonica relationship.
Do you have a healthy what does the pipeline look like of new deals.
Is that a healthy and.
Are the margins on those deals.
Similar to the recent margins you've got non telefonica deals.
The pipeline is very healthy we still have two windows because that says you know pipeline doesn't equate our sales always but I'm very happy with our we did for the <unk> relationship.
You've seen we've grown this year, we are we don't expect that to go on forever.
Now my my intention and our expectation is to grow the multi step toward that for US is the non telefonica parts of the business to grow at a faster than the market.
Market build rates and to make more than may come down overtime decrease of the telefonica business.
We expect to that I think is healthy for our customer mix in the meantime in too.
In response to your in terms of the margins will continue to focus on business that is.
Very valuable to both Telefonica and ourselves and as I mentioned, many times, the only way to get.
Good margins visa Mark again, the business is to make sure that you are delivering significant value to the customer. So the answer to your question is you guys will have a good pipeline, we still have to win it.
We may be making some announcements in the near future.
But in general they they are I'm happy with what I see with Telefonica, we've seen and I want to be clear we've seen.
Long term picture, which we we could own more of the rest of the business then.
And then telefonica.
And Jose want one housekeeping question for the nine months what was the constant currency.
Revenue growth.
But in constant we.
We are close bye bye bye.
5%.
For the nine months revenue growth is 5% yeah right okay.
Okay. Thank you.
And just one more if I will if I may of Carlos.
So the manpower relationship is it is there anything to update us there or is it too early to comment.
No it should be too early I expect to to push in the they are the multilingual businesses is used.
You said a long term play for us So we'll be updating you mostly for next year. That's a that's where the manpower a relationship base is playing out okay. Thanks for answering my questions.
Sorry, let me correct only the 5% is for Q3 percent to 10% or USD nine months, I'm, sorry, because I I'm sorry, only for the Q3.
No worries, thanks for that correction and thanks for answering my questions.
Oh excuse me again, if you have a question. Please press Star then one if you were at your computer. Please use the submit a question box in your webcast viewer. Please standby as we poll for questions.
Yeah.
Great that's phone with some of the Greenway as soon as we are getting here say Carlos can you tell us why the company has been successful in winning born digital U S based business.
I'm sorry.
Born digital and.
In winning born digital U S space before U S based business.
In General let me try to answer in.
Two pieces.
One detail what's your question off putting our mind, then I went back into it.
We decided to focus in a number of check check mentioned worn data being one of them as I mentioned in our earlier on another question.
Question.
Because they they have natural characteristics that are very attractive to US you know higher much loan growth you know.
Interest in higher value added services et.
Et cetera.
So clearly we put our minds to.
And I went back into it and obviously the results are there.
Particularly in the U S. It was a combination also I think I mentioned earlier.
The combination of all we're focusing the right segments, we focus into it we execute it.
And we have built.
A very strong team that we have a couple of years ago, and we continued to build as we expand.
And in addition to that as I mentioned earlier.
We had a little bit of the day.
David versus Goliath.
Atlantic Casino with the small guys that in the U S that actually are part of a much larger company that actually has a lot of credentials ability and coupled with you Keith.
Several customers have told us that with the.
The best kept secret.
In the U S. We will continue to exploit that and continue to grow pretty fast, particularly in those sectors, but he didn't I mean in that dose and all the sectors.
Thanks.
We have two questions about 2022, let me try to put together. So first one is if you can comment on the expectations for growth for 2022. The second one is more specific asking about that.
Martin.
As laid out at the Investor day presentation two.
At the beginning of the plan and if we can you review those commodity chicken and tell US why you feel confident in keeping them for the next year.
Oh well.
Let me start with that first we are.
We are confident to achieve them and a bunch of that is because that we as a management team made the commitment of delivering those and pandemic or will there be charged to us.
Being no excuse to that so so we feel really strongly that whole team feels strongly about delivering those.
But beyond our.
The confidence.
We have done a number of things that makes us feel.
More confidence. So one is we have introduced a lot of changes in terms of our ability to serve our customers.
In a more efficient way.
Our changing we haven't finished yet there is still quite a bit to achieve but we have been introducing me.
Medical practices technology come on at first.
Our regions and trying to institute best practices across them all as I said, we haven't started our wood.
There's still a lot to be achieved but you can already see that we are delivering a higher contribution.
Contribution margin than before.
Those plus improvement.
I always say is occurring and additional improvements as I mentioned.
We are we we believe we will have only started down that route.
It should help us to do even if we were confident that a couple of years ago to be more confident than we were.
Three years ago now in addition to that on the on the revenue side as you can see not only we keep on improving our sales capabilities.
Every year, but also selling at a higher quality a better margin. So again, what two years ago. What the planned addition, I think now we have two years of track record that gives us the confidence that.
We will meet the commitments that we.
Put out there for all of you.
Next one is can you simply remove the currency hits or could there be allowed us financial payments before doing that well I think the.
The specifics of that arent, probably for just say about to tell you that we're looking at different options that we have on the currency hedge.
As with any such hedges.
Depending on the macro movement Kengo indifferent.
In different directions forward against you but.
Clearly, we're looking at the options that.
Then we have to make sure that we have we maximize the positive impact of the all the ancient minimized.
He wants to say any anything else now.
Exactly that's kind of where you are looking for options that we have the simple answer for that is normally all instruments like these money we have to pay the market to market, but as you mentioned, we keep on looking for opportunities to change this.
Okay.
One is as we head into 2022 would the company consider buying some shares back in the open market, especially considering how cheap the stock is relatively to capacity of the business.
Well.
Do you know anything is possible, but at the moment I have now no intention I don't foresee.
Hum.
Buying shares.
Or having the use of cash.
We dedicated to buying shares a much higher priority. That's always I think I mentioned this from the beginning of their their highest priority.
Spansion and improvement of the business and there are two particular areas where are we emphasize the use of cash.
We moved from a from the legacy customer base to a new set of customers.
Capex to grow you know.
So customers are.
That's a high priority for us.
With all the transformation of our potential in addition to that as we introduce.
Better technology of high technology, New services new capabilities.
While all technology based vehicles to high priority for us so for us I prioritize those particular uses of cash were before.
Any share buybacks.
Okay next one saying congratulations on strong results and margins a growth in Brazil slowed down this quarter, how do we seen any improvement there or things are starting to open up again.
We had a couple of one offs.
Never a sale this quarter, one absolutely some tax adjustments and and another one on some some visa we chose to exit.
They don't margins.
But yes, we have high expectations in Brazil, we did very well in Brazil.
Did it for me guys.
Home depot in the kitchen, Brazil.
Formed very well for us this year.
I expect to resume the coast in multi sector Q4 and on <unk>.
The highest efficiency for Brazil is that you should make the economy. Obviously, we have the uncertainty of the elections next year, but that's nothing that were not used to managing through.
And then another day as the pandemic ends and hopefully.
We've seen the last wave.
Waves of it.
We did.
The positive impact of economies that come back to up to speed as we've seen in U S and.
And some other places will also come to Brazil, I know that economies in Latin America and that will be good for the economies would be good for the industry. It would be good for us.
Okay.
Do you anticipate any financial effect from the site that are backing up toward and what are your target run great leverage and EBITDA margin you know within the next few years.
Most of the Bible that let them. So I think I answered the first part on the cyber attack what was the second the second one was how does the your target run rate leverage and EBITDA margin for the next few years.
We.
We have not.
Prepared to disclose those today actually this gives me the opportunity to to recommit.
So you guys not only to do that disclosure, but to do it in the context of.
Yeah.
Industry or our Investor day.
It was probably it was a week, we moved and cancer, we moved to the.
Investors are initially we were thinking about the November timeframe.
We probably would do it in the spring so it's not that we've canceled in any way shape or form, but I think we owe that to you I think it is.
Not only something that we owe that to.
Two only vessel days, but something I find particularly beneficial due to engage in a more direct.
Detection with many of you get your views and also give us the opportunity to give you an expanded.
A hamster hopefully and expanding understanding of what these management team.
He's trying to do so.
Stay tuned we'll announce the date that we were looking at some time in Italy at spring of next year.
Okay.
Thanks, Juan assist Kenny can you provide some additional cohort on the contracts we have been executing better soon.
Slowly not today.
I'll have to think about what he is closer to what it is.
Not.
So I'd, rather just stay quite well by the way it did.
Not a huge or material I mean, it's a.
Relatively small immaterial to the to the.
Overall, brazil business or or or attend them.
Okay.
Yes, I don't know, let me tick and ask if we have some question on the phone.
We have no questions on the phone at this time.
Yes.
Pardon me, we just got we just got one in the.
The next question one moment please.
Okay.
Yes.
[laughter].
The next question is from Erica Mann Zaki Ross with global evolution. Please go ahead.
Hi, there thanks for taking the question and congratulations on the <unk> on the earnings and just wanted to quickly follow up on I mean I.
I think you mentioned at the time of the bond rate shape and that you were expecting to get to marginally positive annual free cash there over the next couple of years.
Can you just elaborate whether you actually expect to hit that target I guess, the FY 'twenty one.
Considering I guess, the fact that you've talked about how Q4 is typically seasonally stronger.
And then I guess kind of what you're anticipating for FY 'twenty, two as well on the free cash flow side of things.
But I don't see we're making that M. A a brilliant.
Guidance for 2022 on cash flow, but just saying.
On 2021, where do we stand.
Yes, we expect to be in the breakeven.
We talked about to be positive.
By around convenience and we what we have is we invest a bit more.
In terms of Capex, because we got some.
The steps, we have to invest into it but.
But do you expect it to ease b by breakeven or positive.
By around 5 million that is the expectation that we have.
And for next year, we still sometimes about.
The free cash flow.
We maintained the same it will be a positive one.
Great. That's helpful. And then just to clarify with respect to the sort of breakeven or slightly positive free cash that you are expecting for FY 'twenty, one is that including some of these one off items that you mentioned before it is say for example on I guess on the AR on the tax and <unk>.
Financing et cetera.
Yeah, no that would be we'd have anything yet.
Okay.
That's very helpful. Thank you.
Thank you.
Yeah.
So let's go on we'll be briefing questions Carlos.
We have on the happy to see the Investor Day, you scheduled for April <unk> has moved from November we'll see the related to the Covid.
We had so many things going on.
Around the same time and we had a.
Do you have a stable one of agency that'd be.
When they did the windows started actively smallest.
Thank you you may need one and if I have people there.
Events do you have you don't want to wait.
If they win it up with very few windows and we've looked at work.
So we thought we would be better.
Collectively our selves yourself would be better served kiwi and moved it to early in the year.
Next one is can martins in Americas, and EMEA, Okay. That's high yes.
Yes actually are the U S margins that already ahead of those of Brazil, So that.
That's already a fact.
EMEA the markets there are.
A bit more complicated, but I believe that they can go as high and particularly higher.
In EMEA the.
The key.
Is to provide.
There's a number of levers, but one very important one is to be able to provide services to customers in Europe and and serve them from.
Let him make our off shore.
Two significant nearshore or offshore to a significant degree.
A lot of our business in.
EMEA is shipped out of Spain, we've been improving significantly the margins in <unk>.
In EMEA, we are closing the year will be closer to the year with the <unk>.
Record margin.
It would be the margins seen in EMEA, we're very happy that we can prove we have proven that existing business can be run at a higher margin.
He can.
Get a significantly higher one of the levers is there.
Sure. The other levers is as I mentioned, the move to getting well.
Component that will be not.
Not only exploring pushing through 2022.
Yeah.
Most of them have already been answered on the last one.
Providing 2023 guidance do you think you might be able to increase to meet the margins. Even further in 2023, absolutely I think one of them is that question comes from the same investor that I put that to me an email not too long ago.
And something that I took note to cover it at length in our Investor Conference.
Yes, I think some people and again I don't know where the Hum.
<unk> of all of us.
Cap.
Returns are.
Could possibly come from my I haven't mentality of Hey, you know our job is to expand any any battery perceived or otherwise to performance.
<unk>.
Kim mentioned.
Yeah.
The efficiency improvements we are introducing.
Or not.
In case somebody had that impression and not about hey, let's cut causing us to you know live on.
Hi, there run faster.
Seven the furniture.
Those kind of.
Efficiencies are short lived and absolutely limited.
The efficiencies that we've been achieving and deploying and by the way there's a lot more than we can do we have only just started.
Our efficiencies based on doing the work in a better way with better processes better methods and technology.
In best practices.
The bands that we have.
We had one significant oh.
From the best performing centers to their worst performance center.
We have reduced social we still have.
A long way to go in terms of improvement that improvement is ongoing as the car and you can build on top of that the improvement that also come from better contracts better sales.
Participating in higher margin markets such as for example, the U S. A that is also a.
Our recurring and because compared to all the competitor for large companies, we have very little exposure to those.
The higher Hum.
High margin markets.
We have a lot to go a lot to improve from that perspective.
The answer in terms of our capability to continue to improve.
Margins margin expansion is when it snows or particularly margin expansion is you know I don't see any limitation in the future.
The only limitation is the execution.
How quickly can we implement those changes we have been already doing so again nothing that I'm, saying here is.
Is something that I'm, making up just stick it looks like we've done with it or not.
Two or three years.
And you can extrapolate to make your own conclusions, but anything that I.
I'm, telling you is something that we already are delivering what I'm, telling you is that we not only are we going to continue to do that we can improve on it so.
Absolutely category, Yes, we can.
Significant proof.
Our performance in particular in terms of.
Margin and margin expansions.
One last one.
Why do you think you are winning business in the USA <unk> from UBS.
Winning business from competitors.
The defense is but the answer is the same we had very small presence in the U S. So.
The vast majority of what we're winning is new customers new logos, we are expanding into new areas and in many cases, our new segments.
Ah I announced in these group we have opened two new centers in the U S. One in Miami, Florida, the other one in Salt Lake City.
So we will continue to expand the business and are gaining new logos, new sectors, and sometimes even new industries.
Yeah.
There's nothing else Pablo Thanks for giving me the sign of a we don't here, we'd like to thank you all again for participating as I mentioned I always enjoy more of the Q&A.
In the prepared remarks. So please keep your questions coming thank you very much.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
[music].
Yeah.
[music].
Yeah.
Yeah.