Q1 2022 Mastech Digital Inc Earnings Call
Greetings and welcome to Mastech digital incorporated first quarter, 2020 two earnings call.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded it is now my pleasure to introduce your host Jennifer Ford Lacey.
Manager of legal affairs for Mastech Digital Inc. Thank you Ms, where they see babies yet.
Thank you operator, and welcome to Mastech Digital's first quarter 2022 conference call. If you have not yet received a copy of our earnings announcement. It can be obtained from our website at www Dot Mastech digital dotcom.
With me on the call today are cause that Gupta, Mastech Digital's, Chief Executive Officer, Jack Cronin, our Chief Financial Officer, and goodness in basketball shoe R.
Our new Chief Executive officer of the data and analytics services segment.
I would like to remind everyone that statements made during this call that are not historical facts are forward looking statements. These forward looking statements include our financial growth and liquidity projections as well as statements about our plans strategies intentions and beliefs concerning the business cash flows costs and the markets in which we are.
Alright.
Without limiting the foregoing the words believes anticipates plans expects and similar expressions are intended to identify certain forward looking statements. These statements are based on information currently available to us and we assume no obligation to update these statements or circumstances change there are risks and uncertainties that could.
Cause actual events to differ materially from these forward looking statements, including those listed in the company's 2021 annual report on Form 10-K filed with the.
Securities and Exchange Commission and available on its website at Www Dot SEC docked out.
Additionally, management has elected to provide certain non-GAAP financial measures to supplement our financial results presented on a GAAP basis.
Specifically, we will provide non-GAAP net income and non-GAAP diluted earnings per share data, which we believe will provide greater transparency with respect to key metrics used by management in operating the business.
Reconciliations of these non-GAAP financial measures to their comparable GAAP measures are included in our earnings announcement, which can be obtained from our website at www Dot Mastech digital dotcom.
As a reminder, we will not be providing guidance. During this call nor will we provide guidance in any subsequent one on one meetings I'll call.
I will now turn the call over to Jack for review of our first quarter 2022 results.
Yeah.
Thanks, Jen and good morning, everyone I'm happy to say that first quarter of 2022 was.
It was a continuation of our strong financial performance.
In 2021.
Considering that Q1.
Historically been a challenging quarter for us.
Typical high project completions at the end of the previous year and high benefit costs due to repay game.
A role taxes at the start of the new year or Q1 2022 financial results, we're very satisfying.
Revenues for the first quarter of 2022 totaled $59 $8 million and represented an organic increase of 20% over Q1 2021 revenue.
This revenue performance was a new record for our company.
Business segment.
<unk> revenue growth during the quarter.
Yeah.
Our data and analytics services segment contributed revenues of $10 $2 million, which represented organic growth of 15% over last year's Q1 revenues.
Order bookings 11 $8 million.
Backlog increased from last year.
And our pipeline of opportunities continues to show promise.
In our staffing services segment revenues of $49 $6 million represented a record performance and a year over year increase of 21% over Q1 2021 revenues.
Activity levels continue to remain elevated during the first quarter as we increased our billable consultant headcount by 3%.
Okay.
Gross profit in the first quarter of 2022 totaled $15 $9 million or 24% higher than in the corresponding quarter of 2021.
Gross profit as a percent of revenue in Q1, 2022 was 26, 7% compared to 25, 7% in the 2021 first quarter.
Okay.
GAAP net income for Q1 2022.
With $2 $3 million or <unk> 19 per diluted share.
Third to $1.2 million or 10 cents per diluted share in Q1 2021.
A year over year improvement of approximately 90%.
Yeah.
non-GAAP net income for Q1, 2022 was $3 $3 million or 28 cents per diluted share compared to two $2 million or <unk> 19 per diluted share in Q1 2021.
A year over year improvement of approximately $48.
SG&A expense items not included in non-GAAP financial measures net of tax benefits were the amortization of acquired intangible assets and stock based compensation.
These non-GAAP items are detailed in our first quarter 2022 earnings release, which is available on our website.
Yeah.
Addressing our financial position on March 31, 2000 in 'twenty, two we had outstanding bank debt net of cash balances on hand of four.
$4 $8 million.
No borrowings under our revolving credit facility and cash availability of $35 $5 million, which excludes.
$20 million of additional term loan capacity under our current credit facility.
Accordion feature.
I will now turn the call over for debit Dirk for his comments.
Good morning, everyone and thank you Jack for the detailed financial review of our operating results for the first quarter of 2022.
Let me start by saying that I'm very pleased with our Q1 2022 financial performance.
Jack mentioned first quarter is historically and seasonally tough quarter for both of our business segments from a financial perspective. However, this quarter was different both of our business segments were able to execute at a high level during the quarter. Despite several external challenges.
Our it staffing services segment achieved record results in both revenues and gross margins.
Data analytics.
Servicing segment achieved solid revenues and bottom line results.
I'm, particularly proud of our data and analytics team, who collectively kept the ship sailing smoothly without the benefit of having chief executive oversight in this business segment during the quarter.
I have a couple of comments to make around the workforce environment that we're facing and about an exciting new service offerings that you recently rolled out to the market.
Staffing services segment.
On a macroeconomic basis, we continue to deal with the great resignation and the challenges it presents to all businesses around the globe.
At Mastech digital we have made it a priority to not only do we cannot talk tablet.
But also to Opportunistically seek out new talent that is currently in the market today.
Like most services companies, we are squarely in the people business.
We see the potential of adding and upgrading our talent base as a positive side of the great resignation and we will continue to drink. This challenge as an opportunity at Mastech digital.
Next I wanted to give you an update on our new service offering offshore staffing.
At our last earnings call in February 2022, I said, a few words about this new service offering that we introduced to the market.
Latter part of Q4 2021 .
Offshore staffing is largely a step up variant of our very successful master note offering.
As you are all aware COVID-19 forced companies to rethink the advantages of having employees, including the contingent workforce working remotely.
And by doing so getting access to the best talent available beyond self imposed limitations around geographic locations.
The adoption rate of the book from any of our modern has been stupendous and we believe the market is now ready to embrace offshore staffing model that continues to deliver top notch talent, but at price points that will generate material cost savings for our customers all of the domestic market.
The rollout of this new service offering in late Q4 went pretty well and the offering was one of the contributors to the record gross margin performance of our it staffing services segment in the first quarter of 2022.
We believe this model is both scalable and will provide our customers with an enhanced value proposition.
And now it gives me immense pleasure to introduce to you our new Chief Executive officer of the data and analytics services segment the nation when produced for them.
I can tell you that our board conducted an exhaustive search for this critical goal, leaving no stone unturned to find the right leader to take mastic and for travelers to the next level in its lifecycle.
As I first progressed, it became clear to me and our board.
The nation will be ideal leader to take our data and analytics business on its next June .
Andy how the organization is excited to have onboard clinician who is all.
He hit the ground running in its first month with the company.
So without further Ado I will now turn the mic over to Canadian wind condition in a new CEO of Mastec and for Travis.
Thank you Vivek.
And good morning, everyone.
It's a pleasure to be here today.
Talking to you on my first Mastech digital earnings Cotton.
Oh man I joined domestic Infotel us as the Chief Executive Officer.
On March 28, so I'm quickly approaching my first full month with the company.
How it seems a lot longer than that.
Let me start by giving you a bake off my background and experience.
Accepting the CEO position at domestic info tennis, I've had executive leadership roles at the times.
And Actavis technologies.
I mean academic background I hold an engineering degree and business management of programs from the Indian Institute of Science, and the Washington School offer business.
Throughout my career I have been involved with advanced technologies, and enabling digital transformation services to enterprise clients.
The pandemic has only accelerated.
The need for digital enablement, forcing.
<unk> I could also enterprises.
Inc of cross functionally.
And a connected experience value chain.
Dreaming enterprise success.
I'm a hands on leader and brings a strong blend of technology.
Execution.
Management experience to drive a strong team collaboration while delivering growth and profitable outcomes.
I was attracted to what's domestic.
Given the.
The capabilities of that domestic input redness has spent.
I don't think data analytics practice.
Alrighty.
Good aspects of end to end data.
Which includes <unk>.
Data management.
Data engineering and data science.
Combined with India, enabling customer experience, which came as a part of the amber leaf acquisition debt.
That domestic input really need.
This positions domestic input relates to engage with both the technology stakeholders as.
As well as the business of stakeholders, which is a very strong position to be in.
Also.
I see the variety in experience that the board of inks, starting from scaling larger businesses.
In technology, making successful large acquisitions in the past.
As an advantage as well as as a leverage for.
I mean I didn't go after opportunities support Hyperscale.
I believe I.
I had a solid opportunity to make a profound difference.
Domestic and footprints.
Next I would like to share my views on.
Some of my first impressions of the company its almost one month in.
You know when joining a new organization, particularly in a senior leadership role.
Your first instinct is to find out if anything is broken and needs to be turned around.
I'm pleasantly surprised that is not the case at Mastec.
Plastic infiltrated.
Have been very impressed with the people that I have met the.
The strong culture, and ethics that they demand and more importantly, the burning desire to be successful.
I found it to be very collaborative.
Open to change.
And the focus on success and innovation.
Also.
I found the competencies of.
Delivery center in Chennai, India.
To be outstanding.
Which explains the company's track record of near 100% customer retention.
How about that.
What needs to be done to bring together and integrated and holistic view of driving enterprise customer experience.
Starting with digital strategy and roadmap to enabling technology solutions and providing managed services.
I will be working closely with my teams to shape. This go to market approach.
What this would essentially mean.
A premium positioning.
Upstream end of the enterprise value chain.
And being able to combined at premium pricing.
In summary.
Digital transformation services is an exciting space.
That I know that I would have been 10 Sun and.
I am looking forward to leading mastic and footprints and it's a journey ahead.
By enabling industry, leading learning experience for other employees.
Capturing the growth rate.
And creating substantial value photo of shareholders.
Thank you and back to you Vivek.
Thanks for the nation.
Operator. This concludes our prepared remarks, we can take questions now.
Thank you.
I would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your.
<unk> for the Q and for participants using speaker equipment, it may be necessary to pick up the handset before pressing the star he is.
Our first question is from Lisa Thompson with Zacks investment. Please proceed.
Okay.
Good morning.
Nice to see a great Q1 and record revenues that's pretty exciting.
Oh I have to say it seems I don't know if the words ironic that staffing is doing better than data and analytics.
Do you expect with the new CEO that that might change or is it going to be competition on who can grow faster.
Hi, Lisa.
I used to hear your words.
I would actually like to have a competition there.
It sounds pretty exciting.
No I don't have a more serious note I see no reason, but I'm glad I see every reason why we should.
She is scaling happening on the data analytics side, we are very excited to have on board.
And he has the right background, but I'd experience too.
To take it forward so.
So we should see some healthy competition in the future.
Okay any prediction on when that might crossover to them growing faster.
At least I hope you don't we don't make any oh projections, but I think I think we had just mentioned.
You mentioned he has barely been in for a month, we need to give them a bit of time and I have no doubt as the progressive you'll start seeing the uptick in the scaling happening all the data analytics side.
Okay, Great a couple of financial questions. It looks like in Q1, SG&A was a little bit higher than at least I.
<unk> is there anything funny going on there this quarter do you expect that number to come down from the 12.6 or not.
I'm going to pass this question over to Jack.
Hi, Lisa.
Hi.
Yeah, you know what I I think that to $12 six is is likely to.
<unk>.
You know stay put in in Q2.
And an increase a bit.
In the second half of the year.
I don't think there's anything funny I mean, we had.
A lot of variable expenses increased just to support our revenue growth.
Alright, and I know in the past you discussed how margins were benefited by that people can.
Consultants weren't traveling are they traveling now is that going to affect gross margins.
Okay.
Hum.
Jack Guangdong no no.
I think traveling is going to open up a little bit.
And on the D&A side, it could have some impact on gross margins, but I don't anticipate it to be a huge number.
As far as SG&A expenses I think in Q1, we did have some travel costs that exceeded.
Last year's Q1, so that's part of.
The increase in overall operating expenses.
To come up with that $12 6 million dollar number.
Alright, and just to clarify when you said that the consultants went up by 3% you meant that sequentially to like 13 O five.
Yeah.
A 3% increase for the quarter.
Sequentially right. So Q3, yes.
Right right right and then one last question is I noticed when reading the 10-K that you went from having like 'twenty like 48% H B one visa.
People down to 26% can you talk about how that happened in <unk>.
That's gonna stay that way.
Okay.
So Lisa if.
Talking about.
It wasn't very clear you're talking about the H, one b a percentage.
Yeah.
I think it's it's you know that's just a sign that we are placing a lot more knowledge wouldn't be people right now and believe in.
We don't see any reason why you know that kind of ratio will not continue it should continue.
Continue we should continue to have the H, one beats coming down as a person data over a period of time.
The other side of the non H wouldn't be inside of the.
The business keeps picking up.
Is there any does that save you any money or how does that change anything.
Well it does change it does save us some money there is always the visa processing fee, which is.
But I think he got it allows then level. It just means that we are addressing a larger pool of resources across the country and master motors, helping us as well.
So it just helps us address the needs of our customers are much better by going.
Going after the logical.
Okay, great. Thank you that's all my questions.
<unk> this is.
As shown here.
Nice to have you on this call and to your earlier question on the D&A business.
A couple of points from my side. In addition to what degree they are covered.
One it is it is always nice to have a very healthy competition. So so be prepared for it.
I first want to come and the team that blood holding default in the absence of a chief executive I think that the teams have done a tremendous job, but coming to the market itself for being at the D.
Data analytics market is booming.
Market is expected to grow I think ended up around 13% plus.
The demand for data analytics and professional fees also exploding.
Nearly 90% of the corporations have predicted that analytics is going to be an essential competency. This year. So a doctor positions mastec in footwear lists in a very unique position also being able to enable.
Good and expedient still honestly would enter price declines given that we are bringing a very holistic view of data. So we should expect to.
Capitalize on the market opportunity and you will see that.
Reflect as you move out but I'm still early it's been four weeks since I came on board.
But I think could be indications look very positive from a market standpoint, I hope I answered your question.
Yes, I also remember another thing I know they have a pile of acquisitions for you to look at.
Have you started out working on the stack and do you see that happening anytime soon.
I have not yet started to look into it I think the first order of priority for me.
I'd say joined Mastec in footwear list was to look at a couple of things number one what is the opportunity for a go to market. The positioning based on what we currently have no when I looked at the book the a.
The data and analytics as well as the customer experience the business okay.
Ability to strongly influence customer acquisition.
And the growth side also with enterprise clients is very very high what I mean by that is it.
Data and analytics segment.
Enable enterprises with it data driven approach to protecting business intelligence and driving growth.
The customer experience enabled by underneath.
Enable enterprises with a customer experience driven approach the sales service and marketing transformation.
So there is an opportunity, Florida elastic input released to operate on both the technology side of the business as well as the business set up the business. So I see a tremendous opportunity to cross leverage.
Upset on influence the interface.
Value chain.
The second area that I started to look at what the differentiated value proposition to clients. So from a service offering perspective, I spoke about the strategy and roadmap technology implementation and then managed services that will position us a flawed and engagement with the clients upstream.
And also help us to engage with the clients at the CX all of it.
<unk> S a flood premium pricing.
And in that process are created don't screen revenue escape.
The third area of focus was around the.
The scaling D data analytics businesses strategically and economically what I mean by that east.
<unk> grew up the standpoint, how long are we focusing on achieve ability.
Predictability.
Peter ability.
And I underline repeatability because of being able to do more of.
Teen means less distressed less effort, but glad to be able to sustain and grow the business and also look into opportunities for driving non linearity.
As part of my initiative to drive non linearity I will be looking into some of these acquisition candidates.
Downstream I'm not ready for that yet Liza and of course, the last 80, our focus has been around our people and culture and and the leadership coming together as this case. So these are these have been my areas of focus in the last four weeks, but we will get to some of them.
The acquisition so pretty soon.
Okay, great well give you another quarter and I'll ask again.
Thank you.
Sure.
Thanks.
Our next question is from Timothy call with capital Management Corp. Please proceed.
Congratulations on strong bookings and your increased backlog.
The cash levels are rising.
Might exceed long term debt later this year.
Should we expect net interest expense to approach zero.
Yeah.
Jack will you take that question.
Uh huh.
It's clearly going to go down.
You know absent an acquisition.
Yeah, where we were.
We're paying off debt at a clip.
At $1 1 million a quarter and that's going to continue and so I I and Jen.
Generating cash flows so.
You know, if we don't accelerate or.
Early payoffs that we're gonna be accumulating cash.
So I think our interest rates for our interest expense is clearly going to go down.
Absent from other effects.
Does the it staffing unit benefit from U S wage inflation.
Your revenues and profits grow because of wage.
Wage inflation in that unit.
Yeah.
You know definitely there is that as you get the benefit of it in terms of the bill rate.
And also you know for the same number okay.
Able to get more.
Revenue per head as a result of that.
That much.
The gross margin improvement it goes so that sort of goes with the higher rates as well.
And portrayed also goes up auto is going up as a result, but definitely there is a little bit of an upside on the rate increase as a result of this.
And do you see.
A shortage of what with the shortage of skilled labor.
Do you think that will lead to increased outsourcing.
In the United States and would that eventually.
Increased business at Mastec.
Well, it's already happening the demand is very very more than supply the customers that are unable to.
Fill those positions.
And internally, even the permanent positions they have online open and they are increasingly leaning more and more on organizations like ours to help them find contingent workforce.
And are we at sort of you know rising to that.
And in some of our growth that we've demonstrated over the last few quarters has been as a result of that of course oven.
There is more demand than supply we also lose people much more.
So our focus has been how do we make sure that we pick up new business, we do new placements, we do a new starts disproportionately.
More than the ones that we lose and we've you know we've.
Done a pretty decent job so far.
Well congratulations again on a great quarter. Thank you.
Thank you Tim.
Our next question is from Marc Riddick with Sidoti and company. Please proceed.
Hey, good morning, everyone.
Hi, Mark.
So I wanted to just start with.
Was there anything as far as any shifting of orders or a business or any disruptions that we should think about during the course of <unk> that would maybe affect comparability.
Comparability.
No I don't think so I don't think there is anything like that to report right now.
Jack is there something.
Okay.
I missed that but no no no disruptions.
That I'm aware of okay.
Alright, and then.
Shifting gears I wanted to talk a little bit about maybe.
And I know, it's only been out.
First of all welcome Girish I I know, it's been a whole months that you've been there so.
The stack of acquisition opportunities.
I will still be there tomorrow I suppose but I was wondering if you could maybe update everyone as far as the general thoughts around.
Maybe what the what the general pipeline looks likes valuation in and if there's been much of a shift as far as the opportunity set that.
That has been seen maybe over the last three to six months.
Mark Thank you and the easier question around the pipeline for acquisitions or is it R&D pipeline for the for big data and analytics business.
Well the acquisitions first and then well actually you can answer both if you wish but I was asking about acquisition.
I would probably don't over to either the way cardiac to answer on the acquisitions of beef and then I can take the question around the overall business.
Pipeline.
Yeah. So.
That's what I was smart acquisitions are concerned we don't do we did have a you know a few candidates.
Targets that would be worth considering.
Towards the end of last year, and I think I've mentioned that in my previous earnings calls as well, we had to kind of put them on the backburner and it.
It didn't make sense to go ahead with any acquisition without having a new leader on board.
So clearly we've said that before that our acquisitions are going to be in the data analytics area.
And that's our strategy at that approach.
It's still very much rallied so we're just waiting for the donation to settle down and.
Have a look at our you know the D.
B b targets that would be what kind of thing and also there could be new.
The injection of ideas from Venetian then we would refine our target or the approach that we're taking so we see that are in the later half of this year, we should start going back to evaluating what could be the next targets to look at.
Yeah. Thank you. Thank you Ludwig.
And to the other question.
I hate to see what the pandemic has done is influenced the velocity also digital transformations.
And as we all know annoying to see suspended but when you look at the sequence in which effective digital transformation initiatives happened in the market. It all starts with the data and analytics, okay and in order to get insight of your own enterprise, but given <unk>.
User transformation begins with redefining experiences all fewer projects and services.
When you look at Mastic Infotel S. K I think we are very uniquely positioned to influence what I call as the customer acquisition and the group segment, often enterprise, okay, which essentially stocks like driving your customer experience initiate this study.
From a product under serviced a design customer journey.
Didn't eat and I think and then taking it all the way into your implementation under managed services. So the ability for domestic input relief to drive.
The transformation expedient.
Starting with the business of stakeholders meeting sales meeting service at BT and marketing.
And then driving it down the value chain through these technology our stakeholders. Okay. Completing a few of the beat on the data to tell you that beat on the application side there'll be it on the cloud side. Okay. It seems it has is very seamless and the capability are very well aligned.
Oh I am.
Very optimistic about the capturing.
Capturing the market opportunity under being able to grow the business because it is not just the data business, which is which is seeing a significant growth in 2022 under beyond but combined with the ability to drive upstream.
Customer experience I think that we have a significant opportunity to tap into.
I Hope I answered your question, yes, absolutely. Thank you and then a couple more for me one I was wondering if you could sort of give us.
Date is too.
Where you are with the with the real estate strategy and as far as you know with your with your offices and.
And where you think you can get to by the end of the year and then I have one last follow up after that.
Okay.
Go ahead vivek.
No I was I was going to respond to the real estate situation. So so mark I think one one thing that's happened as a result of this pandemic, whereas we all know that.
We don't really need everybody to be in the office every day.
And what that means is that the office spaces that we have right now all right mouse you know can can handle a lot more people because we will have the hybrid approach.
And going forward.
But having said that we have.
Yeah.
A large centers that we have oh, there's one in noida riches in India in the National capital region than there is Wanda in China, which is the data and analytics Center and then of course, the third large one in the U S. One is of course, our Pittsburgh and then we have smaller offices quite a few of them sales offices in different.
Parts of the U S and in Europe .
So so that's a kind of a footprint that we already have.
We did upgrade our Chennai facility to a much larger facility almost doubled the number of seats in that we did in January because we expect that that part of the business will probably scale.
On the offshore side of data analytics will scale, the fastest and the quickest.
So I think we are pretty comfortable right now in terms of the real estate footprint that we have at least for the foreseeable future and I'm, hoping that we'll get to that point.
Maybe next year, when we have to start thinking about what more to add than that would be a great problem to house that means we have scale.
Right right excellent.
And then the last thing for me is really if you talk a little bit about the you talked about it in your prepared remarks, but maybe a little more around sort of the timing and what your thoughts are around the offshore staffing.
Lunch.
Yeah. So the offshore staffing as I mentioned is basically are in and if you go back a little June of 'twenty 'twenty are right in the middle of the pick of the pandemic, we launched them a service called Master more.
Which is leveraging the customer readiness to work from home or work from anywhere.
Margaret.
That actually was very well timed and from that point onwards, all the way till the end of 2021 roughly two thirds of all placements that we did one master board.
And what we found in the when we launch this new offering Oh go stuffing.
If you think about it is just an extension of our or a variant of that where we are not just having people working remotely, but theyre looking much farther out.
And the logic essentially is this if you look at the demand and a thoughtful people, it's very heavily skewed towards b.
The two U S followed by Europe , and then followed by the rest of the world, including Asia.
What's the availability of the sources is just the other way around the largest available.
Horses I'd actually in Asia, followed by Europe , followed by the U S. At this point in time. So what we are trying to do is address that you know where the demand is and where the supply is through this offshore staffing and we found that customers having experienced this work from home work from anywhere modern successfully arnaud.
And more amenable to having people work offshore.
And offshore model, we already know as you know a lot of advantages.
Its available or do you have a very large pool of top notch talent and at a price point, which is makes it a compelling proposition for customers because they can have a lot of cost savings or they may not want cost savings. They can have much more people for the same amount of spend that they would've had so we launched this offering in Q.
For finding its gaining traction very rapidly. So we are pretty excited about it. So when you. If you put this in along with Macerich I think we now have a pretty good sort of options. In addition to of course, the traditional on prem or on premise staffing so are we.
Our sales team is pretty excited that we now have a much wider complement of offerings to offer.
Thank you very much.
Thanks Mark.
As a reminder, this star one on your telephone keypad, if he would like to ask a question. Our next question is from Brian canceling or with Alliance Global Partners. Please proceed.
Oh, great. Thanks for taking my questions.
With the solid bookings you've discussed in the first quarter and even what it sounds like revenue growth as well can you first talk about and maybe I missed it where demand is increasing in most most are both mastec staffing as well as the analytics business by industry.
Services is it health care, and maybe take us through which industries, you're seeing the most demand.
Hi, Brian .
Thank you for your question.
Actually right lifestyle at this point in time, it's pretty evenly distributed.
Across all industries I mean, do you know when you look back all things.
And the last one and a half years do you know, what we could see them skewed towards.
Health care more and it was followed by financial services, followed by retail and manufacturing, but at this point in time, the demand seems to be that across all industry. So.
I mean, we can I can try and.
Give them windows, and some kind of an order that but actually I don't think that's that really limited at this point in time.
So all of our customers in all our segments, we are having conversations with them and this applies to both sides of the business I do staffing as well as data analytics and maybe I'll ask a nation if he's he's seeing a skew on the data analytics side in this.
He is and Allison is that he's done over the last one month or so if there is a skew in the industry.
I think vivek you covered it and.
To add to what can be big said I think we ought to be looking at.
Banking retail and high Tech.
Uh huh.
As industries, where we have seen it start up some momentum.
Coming to the data analytics the business from a cost standpoint.
Industry agnostic.
The way I would sort of see this east, but when they look at it from an industry perspective.
From two dimensions.
One is there are.
There are certain industries.
Which had a high touch impact with their consumers for example, if you take a either health care media hype deck.
Okay, and what I mean by high debt to Easter and that feedback loop with the consumers is extremely high for example, if apple were to really the phone then you'll have a feedback loop into the adoption and the usage of the features really quickly.
These are industries that will continue to be on the cutting edge also digital transformation and also continue to keep growing okay and adopt faster on the other side. There are there are certain industries that are looked at examples would be the ones that are highly regulated b the incidents NFC et cetera.
Now the need to Florida.
Digital transformation, and especially data driven.
<unk> seen across the board, but really it was signed in video was start up see if flavor.
And play with east depending on the velocity of the transformation that each of these industries adapt and depending on that we would see a slightly skewed the pipeline, but that does not mean that any of the industries that I at least spoke about are the ones where there is a transformation that is happening I think.
Just cutting across.
Great. My second question is as demands increasingly touched on.
The difficulty on the supply side of resources, how long does it take you to find an onboard staffers to meet demand.
Hum.
If you know it's actually we have a very well oiled engine for recruitment.
We have a pretty large team, which is a good thing.
In India.
They're based in Noida.
Welcome to U S time, and we are able to find the candidates in a matter of hours in some cases.
And we are able to get customers.
Customers connected for those candidates for interviews and get things done.
In a matter of days when its been bit of a crunch and the customers have that frequency, but a normal time takes about a week to two weeks.
Proceeds to happen from availability of the requirements finding the right.
Candidates going through the shock lifting interviews selection.
Uh huh.
So yeah. So it's it's really.
And remember we are not the only ones who are being offered.
Next we have competitors all competition bad as well.
And we are able to do well because of the speed at which we are able to do and also the number of producers.
Producers that we have who can go after these requirements. So so yeah, we are able to move pretty.
Fast I'm and I'm sort of you don't get ahead of the competition in the process.
And that's what I had and I have Oh, sorry go on.
When it when I see this is a question from the data and analytics to set up the business. Okay. I have a very unique advantage off of being able to.
Liberate these 10 of what the digital staffing business and things to the table and are you are you are really what I'll add uptake analysts ignition and the challenge that the technology services industry is facing both in terms of talent acquisition adolescent stomach that intervention standpoint, okay. The great advantage of fun.
Need to be able to drive a hyper scaling of the data and analytics business.
It will come from the fact that Ah I can I can do at age the digital staffing off of domestic to be able to a credit tenant at speed.
And and have a big base of but process maturity as well as recruiters, who can who can help with the scanning so I feel very nice about about the the fact that I can do with it to be a disciplined staffing business of fluff, but it's built off of it.
N D.
Great. My last question is as it relates to your bookings.
How much higher is the implied pricing on your new business compared to the average rates of 2021.
<unk>.
Hum.
Brian Let me ask you. This question is this question.
About the staffing or is this the data analytics piece.
On the staffing side, because you know one of the earlier questions you talked about you know.
Revenues will benefit from higher salaries or higher pay of course that you pass on and so on.
I'm just curious is it real.
At least to that how much higher are priced at $5, 10% higher than they were last year.
Well, it's actually maybe use we.
We aren't seeing anything from a you.
Zero to 25% as well it also depends on the type of skills and how difficult or how skills are those skills in the marketplace and you know you can imagine scarcity drives up our pricing. So many of the new position that we are doing good.
As much as maybe 10% down in a bit more.
But then when you.
Bucket, which as Bart.
Already a lot of people and you know you are adding more.
It takes a little while for the overall the average for the bucket to start changing but there is definitely some increase which is which is happening in general, but it varies from technology to technology.
Okay.
Great. Thanks, so much hey, Brian our average bill rate in.
2022 quarter was just under this is for staffing just under $79 an hour.
And.
In the first quarter of 2021, it was just over $75 an hour or so.
That's about a 5% increase.
And some of that is.
Inflation inflationary pressures and some of it is you know.
Just the type of skill sets.
We've been working with.
On new assignments, but you know clearly.
Clearly the trend is up.
Great that's super helpful. Thank you.
Okay.
Our next question is from Ross Davidson with Bennington capital. Please proceed.
Hi, good morning, Thanks for taking the question.
Just a question in thinking about all the positive outlook, we talked about with data analytics all the all the great trends that the business is tapping into ignition spoke about.
If I came back in Q1 15.
15% growth rate is great, but as we talked about you know there's there's it sounds like there's some room for even higher growth. There I'm curious in Q1, if there were things that you could point to or.
In your mind, maybe limited that growth rate, but what is what.
When you think about the same question, perhaps is as you look out in the future and tapping into all the trends are there specific tactical things or other parts about the business that you can identify that sort of gives you the confidence that you can stop that growth rate.
<unk>.
Thank you thank you with us.
From a Q1 standpoint, again, I think as a board to Vivek and I said I come into the teens, Florida sort of managing the foot in the absence of having executed well site.
From there I see I see opportunities support plus scaling and have identified opportunities between both the customer experience the site coming from amber leaf as velocity data analytics insight.
And the significant opportunities for cross live with aging and ER and Upselling. There were some tactical things synergies around around people alignment, which have already been fixed so I believe that when it comes to driving cash.
Expedience, we are already at the point, where we are in a position to drive a holistic under rich customer experience in.
In fact, I called this as a five diamond schnell approach to driving our customer experience.
That comes through from the business development team are driving relationship expedience and driving net new logo acquisition.
Second coming from and integrated.
Their transformation practice perspective.
<unk>, which is an area that as I mentioned earlier.
This is something that shipping as we speak okay.
We have that we would be able to drive both the strategy and roadmap across all of it into flex enterprise clients, which positions us at the upstream of the value chain. He took of course, if the global delivery, which is a <unk>, which is a function extremely well.
They are delivering a 100% customer retention and the two other areas.
Looking into our thought of bringing in a specific industry domain expertise in areas, where they have a strong <unk>.
Positioning with our clients and also looking into possibilities of our platform and Apis are they get to understand the business some more.
So that is that is where you would start to see a shift happening both in terms of not just the customer acquisition, but also the quality of revenue from each of these customers being able to drive the average revenue within customers.
Bringing in some amount of non linearity through platforms and Apis.
Did I answer your question.
Yeah, I think you can use and that's really helpful. I appreciate it and it's great to have you.
Thank you.
Thank you so much.
We have reached the end of our question and answer session I would like to turn the conference back over to Vivek for closing comments.
Thank you operator, so if there are no further questions I would like to thank you for joining our call today and we look forward to sharing our second quarter 2022 results with you in early August so thank you all.
Okay.
Thanks, Andrew.
And at least for me.
Thank you. This does conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.
Yeah.
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