Q4 2022 Endava PLC Earnings Call
Good morning, and welcome to the <unk> fourth quarter and fiscal year 2022 results conference call.
Participants will be in listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero. After today's presentation there'll be an opportunity to ask questions. Please note. This event is being recorded.
Now I'd like to turn the conference over to Laurence Madsen head of Investor Relations. Please go ahead.
Thank you good afternoon, everyone and welcome to <unk> fourth quarter and fiscal year 2022 conference call. As a reminder, this conference call is being recorded joining me today are John Cartwright, and Chief Executive Officer, and Mark Thurston, Another Chief Financial Officer before we begin a quick reminder.
Two our listeners are.
Our remarks today include forward looking statements, including our guidance for Q1 fiscal year 'twenty 'twenty three and for the full fiscal year 'twenty, two 'twenty, three and statements regarding our perceived opportunity and anticipated future growth and geographic expansion.
Spectation regarding digital transformation of businesses and industry and other industry trends.
And necessity of digital transformation from any company and end up at the ability to benefit there from potential technological advances or expectations for future partnerships and ability to expand our existing relationships anticipated client demand for in that circumstance.
Billy teacher attract and retain employees and be an employer of choice in multiple geographies and our ability to execute on our sustainability objectives as well as other forward looking statements.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements actual results and the timing of certain events may differ materially from the results or or timing predicted or implied by such forward looking.
And reported results should not be considered as an indication of future performance.
Please note that these forward looking statements made during this conference call speak only as of today's date and the company undertakes no obligation to update them to reflect subsequent events or circumstances other than to the extent required by law.
Please refer to the risk factors section of our annual report filed with the Securities and Exchange Commission or the SEC on September 'twenty eight 2021.
And in any subsequent filings we have made with the F E which contain a discussion of important factors that could cause actual results to differ materially from those contained in any forward looking statements.
During this call well present, both ferrous and non I S. R. S financial measures a reconciliation of non ifr as to kind of measures is included in today's earnings press release, which you can find on our Investor Relations website, a link to the replay of this call will also be available there.
With that I'll turn the call over to John .
Thank you Laurence well I'd like to thank you all for joining us today and I hope you're all well.
We're pleased to be here to provide an update on our business and financial performance for the three months ended June 30th 2022 and for the full 2022 fiscal yeah.
We continue to be in a strong demand environment. Despite continued global macro economic uncertainty and volatility.
Given the current environment I'd like to highlight that we remain focused on leading companies with strong balance sheets, helping them to be more agile and react fast to market changes we.
We see them continuing to invest in driving change, while our exposure to startups and the crypto industry continues to be low.
For the quarter and the full fiscal year ended June 30th 2022 I'm pleased to report and all of this business remains strong across all of our schools and locations.
Before getting into the details of our latest results I'd like to start by putting our growth in perspective. It has been just over four years since we became a public company with our listing on the New York Stock Exchange and it is with great Pride that I look back at our accomplishments since.
Then.
Since we listed in July 'twenty I T. We have tripled revenues from $217 6 million pounds for the fiscal year 2018.
$654 8 million pounds, the fiscal year 2022.
At the same time, we have significantly progressed object of diversification.
Moving from a concentration of 17, 9% in the U K and Europe in fiscal year, 2018% to 62% for fiscal year 2022.
Seeing North America grow from 21% of revenue to 35%.
Rest of the world commence now at 3%.
We've also diversified our delivery footprint, which moves from 82% of our people in central Europe to 76% most of which is in NATO countries with Latam now, 17% compared to 14% in fiscal year 'twenty I T.
Supporting our national delivery for all growing North American business.
Total head count has grown by 146% from 4819 in June 2018.
So 11853 in June 2022.
The strong head count growth came with a solid increase in revenue per operational person.
I'm 55000 pounds in fiscal year, 'twenty 18 to 69000 pounds in fiscal year 2022.
Very strong trend and a real demonstration of the growth and value delivered to our customers by indaba.
It is worth reflecting that at the time of IPO, we set a medium term adjusted PBT margin target of 17% from the fiscal year 'twenty 18 reported figure of 15.4%.
Since IPO, we have annually achieved an adjusted PBT margin in excess of 17% and we ended fiscal year 2022 with a margin of 21.1%.
As we look to the next four years, we aim to continue this level of growth with revenue tripling again.
We will continue to diversify our client footprint both in the geographies, we are pricing and in the industry mix across the business.
Driving the shift is the acceleration in our target industries, driven by new and emerging technologies.
As we scan the horizon for technologies that we believe will have a significant impact on our business. We are building a picture of how technologies such as autonomous vehicles, Cobalts and frictionless payments may have a broad impact on multiple verticals.
We believe five G technologies as well as new devices, providing broader access to the mess of us will revolutionize the experiences individuals will have bringing people together in ways that will enhance the requirement for seamless commerce experiences.
For the forward, we see an increasing impact on all of our schools with the broader adoption of language prediction model based AI integrated alongside traditional technology, leading to innovation and human centric tasks that require deep understanding of language.
We will also continue to further diversify our delivery footprint to see a higher proportion of work delivered from Latam and Asia Pacific together. These shifts will enable a more balanced scaled and impactful operation.
It's even more attractive to the large enterprise customers that we target.
Moving now to the current quarter and annual results.
And to all of our reported revenue of 180.4 million pounds for Q4 of our fiscal year 2022.
Representing a 35% year on year increase from $133 6 million pounds in the same period in the prior yeah.
We ended the quarter with an adjusted profit before tax for the period of $36 2 million pounds, representing a 23.5% year on year increase from the 29.3 million pounds in the same period in the prior year.
Our strong revenue growth.
Continues to be driven by.
Both the expansion of work for our existing clients and the acquisitions of new ones during the quarter.
We continue to scale existing projects and accounts to drive the growth of the larger clients and increase the spend by these clients.
We ended the quarter with 732 active clients up from 615 at the end of the same period in the prior year.
A 19% year on year increase.
Importantly, we continued growing the number of larger clients with a total of 134 clients paying us in excess of 1 million pounds per year compared to 85 in the same period last year.
Representing an impressive 57, 6% year on year increase.
Additionally, the average spend of our top 10 clients continues to grow strongly and was up 21% year on year in the three months ended June 30th 2022.
Moving onto our results for the full fiscal year 'twenty to 'twenty, two we reported revenue of $654 8 million pounds, representing a 46, 7% year on year increase.
In the last fiscal year, we grew nicely in all our regions in the schools.
Our strong revenue growth continues to translate into strong profitability and we ended the year with an adjusted PBT margin of $138 3 million pounds compared to 92.1 million pounds in the fiscal year 2021.
Today I'd like to highlight some of the work we're doing for our clients in the financial sector.
In the banking sector. There is a strong move towards supervision of extensible API based platforms, rather than large single purpose monolithic applications.
API based platforms increase organizational agility and allow banks to offer an evolving range of services through a single integrated platform and better compete with new fintech entrance to their markets.
An example is the move by a number of banks to offer a range of integrated digital first banking services.
Our proven skills and developing flexible API based systems have allowed us to work with a range of organizations on their journeys to create application platforms for their businesses.
For instance, we are working with a top U S Bank on building a full suite of software design engineering testing and integration services for a new cloud based digital banking product.
Eventually offer a new generation of lending and deposit products.
We're also working with Primus bank based in Virginia, and servicing individuals and Smes.
MS embarks on a greenfield implementation of a digital cold platform and this new cloud based tech stack.
Now for broader product offerings greatly enhanced speed to market and expanded geographic boundaries. We are helping them with this transformation effort by providing solution architecture system configuration engineering and overarching domain expertise.
First bank headquartered in Colorado, and serving the southwest region of the U S is undergoing payments modernization and is leveraging and Donald is domain expertise to guide that product strategy and technical approach to the work. In addition, first bank is leveraging our architectural and engineering extra.
Ts to execute on the implementation.
In addition to working directly with these financial institutions. We're also partnering with companies such as bank base and Snowflake in order to facilitate the modernization of these banking platforms.
We help the asset management industry address the challenges of fee compression flattening returns regulatory pressure and evolving distribution models by enabling their platforms to be future proof.
Through designing and building real time data platforms self service reporting solutions and advanced trading analytics, which together facilitate enhanced predictive decisioning for the front office and enable rapid automated reporting to clients and regulators alike.
We're working with Royal London asset management to establish the central data platform to provide a cloud based central data spine.
The acts as a central source for all the firm's data needs to serve the business for years to come as regulation and products evolve.
With your honest Henderson, we are consolidating reporting onto a modern cloud based platform, which delivers self service efficiencies.
Data visualization to gain additional insights across the business operations.
Market infrastructure providers, having to modernize their platforms due to the ever increasing complexity and real time demands.
Recent high profile outages are forcing the industry to modernize technology stacks.
This is forcing launch legacy replacement as well as innovation ruled upon by crypto take the monetization of assets and the more forward thinking incumbents driving ahead with blockchain <unk> and expanded offerings based on digital technologies.
We have been designing building and evolving and award winning cloud based derivatives trading platform for TPI cap, a world leading provider of market infrastructure and information.
Branded fusion the platform encompasses everything from market connectivity to tailor made matching engines and algorithms to high performance UI for consistent responsive user experience for brokers and clients alike.
We also have a rich heritage of working with hedge funds, helping with that innovation and gaining competitive insights through the front office decisioning process.
Work with comps firms on data warehouses, supporting third party structured and unstructured data trading strategies and modeling sitting at the heart of that business.
In the U S. We are working with a leading alternative investment firm, helping define and drive that data strategy alongside the modernization of our core architecture.
Our experience and credentials in the financial industry continue to gather momentum and we believe we offer our clients the ability to differentiate their offerings. Despite the rigid framework some controls that they need to operate within.
Over the last five years 88, 6% of our revenue on average was generated from clients in the previous year, we take client satisfaction extremely seriously and we have in place are customer satisfaction program known as C set that reaches out to our clients and allows.
As for systematic feedback.
We have a dedicated customer experience team to analyze and manage the feedback to constantly help create the best service experience for our teams and clients.
Our latest C Stat survey reported a 95% likelihood of repurchase.
We continue our geographical expansion and diversification while competition for talent remains intense we remained very successful in recruiting the people, we need and our attrition rate remains low.
We are continuing to expand our team in Latam with strong recruiting in Mexico, and we recently opened a new office in Cali, Colombia.
We're also moving along with our global expansion and expanded our footprint in Australia with a new office in Brisbane.
We have an ongoing commitment to make a positive impact in support of our people customers and the communities, where we operate and we are delighted to share an important milestone and all we can sustainability journal.
We have been awarded a bronze medal by Echavarri. This in recognition of the very good ESG performance, placing us in the top 50% of companies in our industry.
In summary, as demonstrated by our financial results demand for our services remains strong we are successfully navigating a challenging global macroeconomic environment and remain excited about the opportunities in front of us and confident in our ability to execute on our objectives.
I'll now pass the call onto Mark who will walk you through our financial results for the quarter and provide guidance for the coming quarter and the new fiscal year.
Thanks, Joe.
<unk> revenue totaled 108.4 million pounds for three months ended June .
2022 compared to one.
6 million pounds in the same parent.
Yeah, the 35.7% increase over the same period in the prior year.
In constant currency, our revenue growth right now.
9%.
Profit before tax for Q4 fiscal year, 2022 with $32 5 million pounds compared to $18 5 million pounds in the same period in the prior year.
Our adjusted profit before tax for the three months ended June 2022.
$36 2 million pounds compared to $29 3 million pounds for the same period in the prior year.
Our adjusted profit before tax margin was 21% the three months ended June 30.
2022, compared to 22.0% for the same parent and the prior year.
Adjusted profit before tax or adjusted PBT is defined as the company's profit before tax adjusted to exclude impacts of share based compensation expense amortization of acquired intangible assets and realized and unrealized foreign currency exchange gains and losses, all of which are noncash items.
Adjusted PBT margin is adjusted PBT change as a percentage of total revenue.
Our adjusted diluted EPS was 50 won't pass for the three months ended June 2022.
At Canadian <unk>.
Zero.
Cash as compared to 41 times for the same period in the prior year calculated on 57 5 million diluted shares.
Revenue from our 10 largest clients accounted for 32% of revenue.
Three months ended June 2022, compared to 36% in the same period last fiscal year.
Actually the average spend per client from our 10 largest clients increased from $4 8 million pounds to $5 8 million pounds.
Three months ended June 2022, representing a 21.0% year over year increase.
For the three months ended June 2022, North America accounts for 35% of revenue compared to 37% in the same period last fiscal year Europe accounted for 22% of revenue compared to 21% in the same period last fiscal year and the U K accounted for 40% of revenue.
Unchanged from the same period last fiscal year, while the rest of world a catch up 3% compared to 2% in the same period last fiscal year.
Revenue from North America grew 27.0% for three months ending June 2022.
The same quarter in fiscal year, 2020 one to.
Comparing the same parents revenue from Europe grew at 42, 6%. The UK grew 36, 8% and the rest of world 63.0%.
And all three of our industry verticals during the quarter revenue from payments and financial services grew 34, 3% for three months ended June 2022.
Are you from payments and financial services accounted for 61% of revenue unchanged compared to the same period last fiscal year.
Revenue from TMT grew 32, 5% for three months ended June 2022.
Same course of 2021 and accounted for 25% of revenue unchanged compared to the same period in the prior year.
Revenue from other grew 39.1% to three months ended June 2022 over the same quarter of 2021, and now accounts for 24% of revenue unchanged compared to the same period in the prior year.
We now turn to our adjusted free cash flow, which is on that net cash provided by operating activities plus grants received less net purchases of known kind of tangible.
Intangible assets.
Adjusted free cash Brian was $43 4 million pounds for three months ended June 32022.
Patch of $32 6 million pounds. During the same period last fiscal year, our cash cash equivalents at the end of the parent remained strong at $162 8 million pounds at June 32022, compared to $69 9 million pounds.
So that shift 2021.
Capex for the three months ended June 32022.
Revenue was two 1% compared to one 2% in the same period last fiscal year.
And I'd like to move onto some highlights for our fiscal year 2022.
And to harvest revenue totaled $654 8 million pounds for the fiscal year 2022, compared to $446 3 million pounds in the previous fiscal year.
46, 7% increase over <unk>.
Yeah.
Instant currency, our revenue growth rate was 47, 6%.
Profit before tax for the fiscal year, 2022 was $102 4 million pounds compared to profit before tax of $54 4 million pounds in the prior year.
Our strong revenue growth continues to translate into solid profitability.
Adjusted profit before tax for the fiscal year 2022 totaled $138 3 million pounds compared to $92 1 million pounds in the prior year at 52% year over year increase.
Adjusted profit before tax margin was 21, 1% for fiscal year 2022, compared to 26% from last year.
Year over year improvement in our adjusted profit before tax margin is mainly due to a continued positive pricing environment and control of SG&A expenses.
Our adjusted diluted EPS was one pounds and 93 patents for the fiscal year ended June 2022 calculated on $58 7 million.
Million diluted shares as compared to one pound 30 patents. So the previous fiscal year calculated on 57 1 million diluted shares up 48, 5% year over year.
Revenue from our 10 largest clients accounted for 34% of revenue for the fiscal year ended June 30 of 'twenty.
22, compared to 35% for the previous fiscal year.
Actually the average spend per client from our 10 largest clients increased from $15 6 million pounds to $22 2 million pounds up 42, 1% year over year.
Grew in all geographies on a year over year basis, with North America up 62, 8% year over year, Europe up 27, 8% U K up 44, 8% and the rest of the world up 59.0%.
On a year over year basis revenue from payments and financial services increased 46.6% TMT increased 35, 1% and other increased 61, 2%.
The year over year growth came mainly from a balance sheet retail and health Tech.
Our adjusted free cash flow was $107 2 million pounds for the fiscal year ended June 22, compared to $82 7 million pounds. During the same period last year.
Capex for the fiscal year ended June 32022.
Censorship revenue was two 1% compared to one 2% during the same period last year.
Our guidance for Q1 fiscal year 2023 is as follows.
<unk> expects revenues to be in the range of 191 million pounds to 193 million pounds, representing constant currency revenue growth of between 22% and 24%.
A dog I expect adjusted EPS to be in the range of 50 to 51 pence per share.
Our guidance for full year fiscal year 'twenty to 'twenty three is as follows.
<unk> expects revenues to be in the range of 840 million pounds to 850 million pounds, representing constant currency growth of between 23% and 24%.
David expects adjusted EPS diluted EPS to be in the range of two pounds in 35 patents to parents and 38 pence per share.
There's about guidance for Q1 fiscal year 2023, and the full fiscal year 2023 assumes that exchange rates at the end of August 2022, when the exchange rate was one British pound to 1.17 U S. Dollar at 1.16 year right. This garden seeps take into account.
Potential macroeconomic headwinds.
This concludes our prepared comments operator, we are now ready to open the line for Q&A.
Thank you we will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two at this time, we'll pause momentarily to assemble our roster.
Our first question comes from Bryan Bergin from Cowen. Please go ahead.
I think that goes back on for Brian just wanted to pick up on that last comment on the macro considerations that were embedded in the fiscal 'twenty three guide and hoping that to provide some more color there.
Was there an extra level of conservatism embedded in the guide just given kind of the lack of visibility in the second half of the year at perhaps just some color on the revenue trajectory.
Over the course of the one half versus the second half of the year.
Yeah.
Sure. Thanks.
Yes, I mean, we did look forwards as we were putting the guidance together and just take into account.
As increasing macro uncertainty out there.
And therefore, I just pulled back a little bit of sense school level.
I have to say that today in terms of the operation of the business, we're not actually seeing any of those impacts were still seeing strong demand coming through.
But looking out 12 months I suppose nine months now.
We did take the view that we should just scale. It if I forget anything you want to add one yes exactly.
Exactly we have our normal forecasting process, where we look at contracted and committed pipeline the.
Visibility remains as it always has done which is strong and that is six months ahead. So that we have.
Golf, there's very much into March it gets a little bit.
Less visible, let's say six to nine months, but the guy to flagstar.
Got it that's helpful and just a follow up on gross margin just hoping for more color on perhaps the considerations for the fiscal year as we think about.
And wage inflation.
And the dynamics going on there.
Any color on that front please.
Sure.
I think that's where else hasn't been much actual change in terms of the outlook for wage pressure and pricing I mean, our Q4.
Gross margin basically reflects it us building.
And our bench he think about we've come out of an all time with Covid et cetera, where we had.
Very strong demand and as a consequence at a pretty low bench and we believe we need to rebuild that bench back to la.
<unk> pre COVID-19 so the.
<unk> gross margin that you're seeing in Q4 were 37.8 on an adjusted basis reflects about a percentage point of rebuilding that bench.
We anticipate include.
Included in the guide for Q, while we will still continue to build that bench.
The levels that we saw pre COVID-19. So I think in terms of the near term outlook.
We will see our gross margins stepping up from Q4.
But as we progressed through the year certainly the second half.
We will be in the $40, 41% gross margin.
Great. Thanks very much.
The next question comes from Matt Young Tandon from Needham. Please go ahead.
Hey.
Good morning, guys, it's actually Kyle Peterson on for <unk> I. Appreciate you guys taking the question.
Just wanted to touch a little bit on on wage inflation and attrition and sort of a two part question is this.
Is that change at all I know it looks like you guys are a rebuilding the bench a little bit and I appreciate the color on that but how much of the gross margin pressure at least in the last two quarters has been you know whether it's your wage inflation merit increases versus rebuilding that bench.
Sure. Thanks.
Yeah, I mean, the wage inflation and attrition pressures.
We're running as we were at the height of that growth.
Fix that 12 months ago.
Has definitely come off the <unk>.
Peak so.
Wage and wage inflation is actually pretty.
Pretty much normalizing.
It's a historic levels and our attrition is falling.
So we are.
Around 12, 7%.
In Q4.
Which was down on the position we had in Q2.
Yeah.
So from a stock point of view actually just adding recruitment to it.
No the access to good people the wages that we're paying and the attrition levels that we're experiencing.
Our normalized.
It's pre COVID-19 levels.
Great. That's really good to hear and you know just a quick follow up particularly in the U K revenue I guess it looked a.
Little light on a sequential basis to us obviously I know the comps are pretty tough from last quarter is there is there anything else going on there either in a macro or a demand perspective or is that just kind of tough comps and looking at it sequentially as it was a little wonky quarter to quarter.
Did you say U K, rather do that.
Yes.
No I think I mean, they the year on year growth.
37%.
In the quarter.
<unk> remains.
Strong so I'm.
So I'm not saying the slight slowdown.
You're referring to.
Right.
Thanks, guys.
Thanks, a lot.
The next question comes from Maggie Nolan from William Blair. Please go ahead.
Thanks, Hi, I wanted to follow up on that gross.
The gross margin question from earlier last year, you kind of successfully balance that gross margin decline with declining SG&A as a percentage of revenue can you give some insight into what dynamics you were expecting for the coming fiscal year on SG&A in particular.
Yeah.
So SG&A, we thought a very good job.
Actually and leverage lapping over it so part of the.
In fact, Q4 P B C.
We catch it all adjusted PBT margin of 21% as you'd pointed out mall Maggie.
Had a slight dip in gross margin SG&A.
It was pretty low at 15, 5%.
They're all sort.
Sort of one off reasons for.
Some of that but we expect the SG&A to sort of pick up as we go through FY 'twenty three there'll be increased spending on sales and marketing and we anticipate also some corporate development activities as well so the SG&A I think is a.
Local is at 15, 5% in Q4.
Anticipate being at that level going forward and I think the Q4 gross margin.
We reported for Q4, I think things will pick up from here, we will see a little bit of net.
Our press release, we will rebuild our bench, but I think we'll this is a sort of low point and we will rebuild back to 40, 41%.
In the second half.
Yeah.
Okay. Thank you and then John you gave some comments about the client portfolio it seems like there.
An emphasis on maybe growing some larger accounts you talked about low exposure to start ups.
But can you talk a little bit more about how you're assessing the risk and that client portfolio areas like where you have about a.
A quarter of revenue tied to private equity.
Sorry can you just repeat that last bit again.
I'm trying to reconcile kind of you mentioned the low exposure to startup amongst your client base with comments you've made in the past about how you have a roughly a quarter of revenue tied to private equity.
Sure Okay.
So the P firms that we tend to be working with all the all the lodge at Tas.
He essentially bought large companies and putting them through our transformation program.
So actually the payment space in the insurance space.
And and some other sectors.
They're actually fairly large businesses.
Or in some cases very large businesses.
Being acquired by some of the large P firms.
Whereas startups, we think of it as being businesses that have been around for five years or so.
Less.
And actually all exposure to those businesses is pretty low.
That's helpful. Thank you.
Thanks Maggie.
Again, if you have a question. Please press Star then one.
Our next question comes from James Faucette from Morgan Stanley . Please go ahead.
Great. Thank you I wanted to ask or.
Couple of things related to engagement and then hiring generally can't can you.
Talk about it if and how your customers are responding to kind of the volatility in FX rates and if that's impacting how they're evaluating project scope and and details.
If at all.
So we're not seeing any client sensitivity to FX rates.
And their decisions on progressing with projects I mean, a lot of our clients are.
Very global organizations and bought in nature.
And so you know.
They may switch from investing in a project in one currency to another and we've seen a little bit of that not that much.
So it actually.
The sensitivity to FX rates, it doesn't seem to be impacting their decision making.
But its progressing projects.
I mean, the the environment. We're experiencing is that there are a small number of clients who are trimming able delaying but that's balanced.
More than balanced by others are accelerating that path to production and growing spend with us.
And what we're not seeing under the surface of glass any particular geographic sensitivities when all staying sensitivities to FX rates.
Just across the portfolio of course the.
Industries, we're seeing that effect happening.
That's helpful and then on the on the hiring side I think he made a comment that you were saying oh wage inflation and that kind of thing returned back to normalized levels.
Can you just give a little more color on on the hiring environment more generally and is roughly 30% head count growth still the maximum you'd feel comfortable with.
And and how are you thinking about your current recruiting algorithms.
Yeah, so in terms of hiring.
Our rates that we're paying in the market.
It is normalizing stabilizing back too.
Pre COVID-19 levels are you before that search.
Of activity that was driving a high rates.
Changes in the market.
The and and you know we're also seeing the effects of <unk>.
A more normalized environment on attrition rates dropping again.
In terms of the.
The.
Range at which we are comfortable growing our head count.
We do see 30% as being a sensible Max we had a we had a short periods.
As we accelerate it out that's telling you that where we pushed it above that level.
And that was because we had a more senior organization.
Because we've gone slow for a couple of quarters as Covid hit we carried on from 18 people.
And that gave us the ability to just surge a little bit pulse that 30% head count growth during that period.
But that is no longer in the bag and so we see 30% head count growth going forward.
As being all sensible organic maximum.
That does conclude slightly higher revenue growth, because we see rate rises coming through with clients still.
And so our maximum organic rice.
Pushes a little bit higher than that 30% head count growth.
That's really helpful. Thanks, a lot.
Thanks James.
There are no more questions in the queue. This concludes our question and answer session I'd like to turn the conference back over to John could trail for any closing remarks.
Thank you and thank you all for joining us today as you'll have noted demand for our services remains strong.
We're seeing good demand across all verticals and geographies and so we remain positive about the business position despite the macro uncertainty.
And we look forward to speaking to you in a month and a harmful so on our next earnings call.
Thank you.
Conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Yeah.
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