Q2 2023 Information Services Group Inc Earnings Call
Good morning, and welcome everyone to the information services group second quarter Conference call.
This call is being recorded and a replay will be available on Isg's website within 24 hours now I'd like to turn the call over to Mr. Barry Holt.
His opening remarks and introductions Mr. Holt. Please go ahead.
Thank you operator, Hello, and good morning, My name is Barry Holt I'm, a senior communications executive at ISG I'd like to welcome everyone to Isg's second quarter Conference call I'm joined today by Michael Connors, Chairman and Chief Executive Officer, and Bert Alfonso Executive Vice President and Chief Financial Officer.
Before we begin I'd like to read a forward looking statement. It is important to note that this communication may contain forward looking statements, which represent the current expectations and beliefs of the management of ISG concerning future events and their potential effects. These statements are not guarantees of future results and are subject to certain risks and uncertainties that could cause actual results to differ materially.
From those anticipated for a more detailed listing of the risks and other factors that could affect future results. Please refer to the forward looking statements contained in our form 8-K that was furnished last night to the SEC and the risk factors section in Isg's Form 10-K, covering full year results.
You should also read Isg's annual report on Form 10-K, and any other relevant documents, including any amendments or supplements to these documents filed with the SEC youll be able to obtain free copies of any of Isg's SEC filings on either Isg's website at www Dot ISG dash, one dot com.
For the SEC website at Www Dot FCC Dot Gov.
ISG undertakes no obligation to update or revise any forward looking statements to reflect subsequent events or circumstances. During this call. We will discuss certain non-GAAP financial measures, which ISG believes improves the comparability of the company's financial results between periods and provides for greater transparency of key measures used to evaluate.
The company's performance the non-GAAP measures, which we will touch on today include adjusted EBITDA adjusted net earnings and the presentation of selected financial data on a constant currency basis. non-GAAP measures are provided as additional information and should not be considered in isolation or as a substitute for financial results prepared in accordance with GAAP for the reconciling.
The Asian of all non-GAAP measures presented to the most closely coils to the applicable GAAP measure. Please refer to our current report on form 8-K, which was filed last night with the SEC.
And now I'd like to turn the call over to Michael Connors Who'll be followed by Bert Alfonso Mike.
Thank you Barry and good morning, everyone.
Today, we will review four areas first.
Our top line growth, including a record second quarter revenues record first half revenues and the demand environment driving our performance.
Our growing recurring revenue streams.
Third our commitment to returning capital to shareholders and finally, our view on how the third quarter is shaping up.
ISG continued its strong start to the year in Q2.
We generated record second quarter revenues of $75 million up 6% over the prior year.
Capping a first half that source generate a record $153 million of revenues up 9% on an operating basis.
Demand for our unique combination of cost optimization digital transformation and platform services remained strong as evidenced by our first half top line growth.
Our cost optimization services <unk>.
Experienced a surge in demand this year as we successfully help our clients will reset their overall cost baseline for the long term.
Our holistic approach to cost takeout include sourcing network software and automation.
We are also seeing renewed interest in outsourced infrastructure services data centers and private cloud as companies look to rein in public cloud expenses that balloon during the pandemic.
These efforts free up much needed budget to allow organizations to more aggressively fund their high priority digital initiatives.
And to that point, our expertise in digital transformation continues to be an area of strong client engagement and demand.
Key areas of focus include customer experience cyber security cloud.
Application modernization and data analytics.
All of which helps our clients become secure intelligent connected enterprises.
Now I'll comment about profitability in the quarter, our EBITDA was impacted by a negative $400000 in the quarter due to an unexpected healthcare expense related to our self insured status.
This was a unique circumstance of major health expenses hitting all at once that we do not expect to be repeated.
In addition in the quarter, we optimized our resource levels slightly downward and had a severance expense of approximately $1 million with the majority of that in Europe .
This will enhance our profitability during the back half of the year.
Now turning to our recurring revenues.
Our recurring revenues continue to be robust.
Up 21% in the quarter to $32 million driven by demand for our research and platform services and an overall increase in our multi year contracts.
For the first half recurring revenues reached $65 million or 42% of our firm wide revenue.
To put this in perspective. This is nearly the same amount of recurring revenues, we had for all of 2019.
As a reminder of what we announced last quarter under phase II of ISG next by 2025, we are aiming to expand our adjusted EBITDA margin.
Further 200 basis points from the end of 2022 to approximately 17%.
And accelerate the growth of our recurring revenues to $150 million.
After surpassing our previous target of $100 million last year.
Now moving to shareholder returns.
Our commitment to shareholders as demonstrated by our disciplined management approach that allows us to continue returning cash to our investors.
During the quarter, we paid a quarterly dividend for the eighth quarter in a row since we instituted a cash dividend in 2021.
And after raising it by 12, 5% earlier this year.
Our commitment is further reflected in the $25 million expansion of our share buyback program that we announced in our earnings release, we now have nearly $29 million earmarked for share repurchases.
Beyond.
Dividends and share buybacks or disciplined capital allocation strategy includes reinvesting in our business reducing debt.
And supplementing our organic growth with strategic acquisitions to drive long term shareholder value.
On that last point, we continue to actively look at acquisition targets and explore avenues to unlock the value of our automation unit.
Now turning to our regions.
The Americas had a solid Q2, delivering $42 million of revenue up 7% versus the prior year on.
On the strength of our cost optimization enterprise change and research services, all up double digits.
For the half revenues for the Americas were up 12%.
During the quarter. We also saw double digit growth in our consumer banking health Sciences media and public sector industry verticals.
Key client engagements during the second quarter included Exelon, AIG constellation energy and cognizant.
During the quarter, a leading global health care Technology company awarded ISG, a new million dollar ISG Governor <unk> contract.
The contract extends our scope of services with this client, which has 140 active governed X users and manages about $400 million of supplier contracts.
The ISG platform.
We also added nearly $2 million of business with an existing insurance client, helping them streamline the development and maintenance of more than 1000 apps in their portfolio with targeted savings in excess of $40 million.
ISG also expanded its relationship with a major U S clean energy company to support its spin off and set up a new provider ecosystem for the newly divested company and.
And engagement worth about $1 million of ISG.
Now turning to Europe , our Q2 revenues of $24 million were up 5% over the last year.
For the quarter Europe delivered double digit revenue growth in our health Sciences energy utilities, and public sector industry verticals and in our automation business.
Key client engagements in Europe in the second quarter included Volkswagen Talktalk, Dansky Bank and <unk>.
During the quarter ISG continued to expand its longstanding relationship with a leading global automotive manufacturer.
We are serving seven major brands within the company and generated more than $5 million in first half revenues with this client.
Our latest work includes helping the client source infrastructure and product lifecycle management providers for us.
Battery manufacturing subsidiary.
Who is batteries power of the company's new electric vehicles.
We also won a $1 million engagement with a company that designs engineers and build high tech facilities for the semiconductor pharmaceutical and data Center industries.
The one.
E program, we developed the client cover sourcing organization and governance model design.
It service management.
In addition, we extended our ISG automation services and licenses.
Two years with a UK based broadband provider for another $1 million in revenue.
Now turning to Asia Pacific, Our Q2 revenues of $8 million were flat compared with last year, we generated double digit growth in our research and govern X business.
Key clients in the quarter included the Australian Taxation office, the Australia Department of home Affairs, the insurance company Bupa.
Hi, grief and Vic roads, a state government agency in Victoria, Australia.
And a very positive development. We recently were awarded the largest govern access engagement to date in Asia Pacific a multimillion dollar contract with one of the largest independent payment solution providers for the Australian financial services sector. This.
This contract begins in the second half of this year.
Now, let me turn to guidance.
We are energized by our record top line growth and the scaling of our recurring revenues underscoring the strength of our portfolio as we had into the second half of this year.
From cost optimization, and cyber security to digital transformation and enterprise change our unmatched set of solutions addresses the needs of our clients today.
So far this year, we have served 660 clients, including more than 100, new clients at the halfway Mark.
Organizations that are trusting ISG with their most critical initiatives.
And with good reason, we advise our clients at every step navigating technological and organizational change that leads to greater operation operating efficiency and faster growth.
On the strength of our portfolio and our market opportunities.
We see continued growth ahead.
We are also mindful of the current economic uncertainties that may affect enterprise decision, making in the near term.
In consideration of all of this for the third quarter, we are targeting revenues of between 73 and $75 million up 9% at the top end and consistent with our high single digit growth objective.
And adjusted EBITDA between 10, five and $11 $5 million, the highest quarterly guidance range we've ever given.
As you know, we recently announced that Bert Alfonzo is retiring this month from his role as executive Vice President and Chief Financial Officer of the firm.
Michael Sheridan, who is with us in the room today will become the new CFO of ISG.
Michael brings a strong industry and operating background ISG, most recently, serving as CEO of cognizant software and platform engineering.
I want to personally thank Byrd for his many contributions to our firm is leadership and for his friendship and I want to welcome Michael for the team.
So with that let me turn the call over to Bert who will summarize our financial results first well. Thank you, Mike and good morning, everyone.
It has indeed been an honor and a privilege to serve as CFO of ISG and to work with all of you over the past two years and I. Thank you for your support.
And now onto the quarter.
As Mike mentioned ISC delivered record second quarter revenues revenues.
Revenues for the second quarter was $74 6 million up 6% compared with the second quarter last year.
There was essentially no FX impact in the quarter.
In the Americas reported revenues of $42 3 million up 7% versus the prior year.
In Europe revenues were $24 4 million up 5% and in Asia Pacific revenues were $8 million flat versus the prior year.
Second quarter, adjusted EBITDA was $10 1 million down 6% from last year, resulting in an EBITDA margin of 14%.
Second quarter operating income was $4 9 million compared with $7 4 million in the prior year at.
Net income for the quarter was $2 3 million or <unk> per fully diluted share compared with net income of $5 million or <unk> 10 per fully diluted share in the prior year.
Second quarter adjusted net income was $5 3 million or <unk> 11 per fully diluted share compared with adjusted net income of $6 8 million or <unk> 13 per fully diluted share in the prior year's second quarter.
Headcount as of June 32023 was 597 down 31 professionals or one 9% from Q1.
Consulting utilization for the second quarter was 72% or.
Our balance sheet continues to have the strength and flexibility to support our business over the long term.
For the quarter net cash generated from operations was positive by $2 8 million and we ended the quarter with $19 6 million of cash down from $23 7 million at the end of Q1.
During the second quarter, ISG pay dividend totaling $2 2 million.
Purchased $2 $9 million of shares and made $1 5 million of earn out payments related to the 2022 acquisition of change for growth.
Our next quarterly dividend will be payable on September 28 to shareholders of record on September six.
Our debt balance at the end of the second quarter was $79 2 million unchanged from the prior year end.
And our debt to EBITDA ratio remains in great shape at one eight times.
<unk> borrowing cost for the quarter was six 6% up from two 4% last year and we ended the quarter with $48 5 million shares outstanding.
Mike will now share some concluding remarks before fund to the Q&A over to you Mike.
Thank you Bert to summarize ISG is off to a strong start in 2023 delivering record revenues for the second quarter and first half.
We have good growth opportunities ahead, as we help our clients optimize their businesses and prepare for the next wave of the digital economy.
<unk> for our platforms and research continues to push our recurring revenues higher now over 40% of our firm wide total.
We aim to deliver $150 million of recurring revenues at the end of 2025 after crossing the $100 million threshold last year.
We look to resume our margin growth in the second half on our way to our year end 2025 target of 17% up 200 basis points from last year.
And we continue to reward our shareholders with our regular quarterly dividend and by increasing our share repurchase authorization by $25 million.
As always we are focused on creating shareholder value for the long term and we are steadfast in our mission to deliver operational excellence to our clients.
Thank you very much for calling in this morning, and now let me turn the session over to the operator for your questions.
Today's question and answer session will be conducted electronically.
If you'd like to ask a question. Please press star.
And the number one on your telephone keypad.
You find that your question has been answered or you wish to remove yourself from the queue.
You may again.
Star one.
Again, if you would like to ask a question press star one on your Touchtone keypad will.
Pause a moment to allow for Q&A Q2.
Assembled.
Your first question comes from the line of Dave storms with Stonegate capital markets.
Your line is open.
Good morning.
Good morning, David.
I appreciate you taking my call I, just wondered if we could start off.
With the M&A market and kind of what Youre seeing there now that.
Rates are starting to hopefully stabilize inflation coming down is there any appetite any pipes like youre looking to take anything like that.
Anyway first good morning. Thank you for the question, yes on the M&A environment.
Our active.
As we have been for really our whole history.
We are continuing to focus.
On our string of pearls strategy.
Which is on a kind of a bolt on strategy. We are focused on on recurring revenue streams to continue to increase that and also on all things digital.
So yes, we are in the market, we continue to talk with possible targets.
These things are always a journey.
And you always try to balance what you think is fair value. So that all ends up with a win win situation, but we are.
We are active and we will.
We find something that makes financial sense.
For the firm and fill some of the.
<unk>.
Channels that we would like to be able to accelerate our growth and we will we will act on those.
That's perfect. Thank you and then just one more from me when.
When you think about your recurring revenue streams and great to see that it's up over 40% well on track to hitting your $150 million goal.
Do you have an efficient frontier in mind, where you would want recurring revenues to be X amount of revenues or <unk>.
If possible would you want it to be 100% of revenues.
How do you think about that going forward.
Well look I would love to have 100% recurring but that that really is not our business model I'm hesitant to do a percentage because if I do that then than the other parts of the business I don't want them not to grow at the rates that we would like to have them growth. So that's why we use.
Kind of an absolute number we will see how the rest of the firm performs as well.
But as we approach at some point, if we could get to a level of in or around 50% recurring revenues.
I think that the multiple expansion for our firm is significant from where we are today even.
At 40% of recurring revenues. So if we continue to have that climb over time, then again I feel like we are undervalued and we have both margin and multiple expansion ahead of us.
That's very helpful. Thank you for taking my questions congrats on the quarter.
Your next question comes from the line of Michael Nathanson with singular research. Your line is open.
Congratulations on all the revenue growth very impressive.
Thank you Michael Thank you.
So, particularly an annually recurring just not seeing that in the other companies that I cover so.
Impressive.
One thing to ask about so while revenues are up gross margin is down by 290 basis points from the 40% levels in 2022.
For our modeling purposes do you see gross margin at current levels going forward or a return to those 40%.
Yes, thanks for the question Michael.
The second quarter of Youre quite right, our direct costs were higher they were higher by a bit over $4 million.
And that.
That clearly impacted us.
G&A was for really.
It really only up about 2% it does include.
The $1 million that we talked about in terms of severance and while that applies across the board from an accounting perspective.
Hum.
So it gets accounted for in SG&A and so it looks a little higher but SG&A was actually fairly fairly well controlled and we do a good job on that on that part, but yes. Our objective is clearly to be at 40% or more.
As as we were in the first quarter first quarter, we were at about $4 five so when.
When you when you look at the onetime severance of which.
Which is in that number as well as the 400000 that we talked about on the medical.
It was below our expectations in the quarter. So our objective and clearly where we're headed in the back half is to get to that 40% plus you are quite right.
Thank you for that very helpful. My final question just comes back to geographic trends that you observed.
The release mentioned that year separations were concentrated in Europe .
I didn't see revenue growth being flat in Europe , it looks like it was up.
Are you seeing Europe kind of for the second half of the year.
So good question, Michael So if I think about Europe in the context of the U S.
Europe I think has had a bit more challenged from a macro environment than the U S has added.
We had good really good growth in Europe at 5% on operating basis for the quarter, despite the macro environment, but.
We would anticipate that that would be higher for the back half of the year and the reason is primarily driven by the demand environment around optimization and around some of our recurring revenue streams our platforms our research our government acts.
So we feel like the pipeline is their decision, making is a bit slower, but it's about the timing of the decision not if there will be a decision. So we're optimistic on the back half of the year that Europe will continue to grow and likely at a higher pace.
Great. Thank you and congratulations again.
Your next question comes from the line of Vincent Colicchio with Barrington Research. Your line is open.
Yes, good morning, Mike Nice quarter.
Congrats.
Yes.
Question on <unk>.
APAC what are your thoughts for the balance of the year and also on the Americas side, which I think led this quarter should that grow in the second half.
On Asia Pacific.
I would.
Say on Asia Pacific look at it kind of in a holistic full year, we expect our normal.
Kind of double digit growth for that region on a full year basis.
Or thereabouts each year. So there is some ups and downs a little bit on on some of the government spending by quarter.
So I would read nothing into flat second quarter, and Asia Pacific, but think about it as a as a growth region and we expect it to look that way during the back half of the year for the Americas, Yes, we think of Americas. They had a great first half 12% growth on the top line I don't know if we can do that.
Evel of growth continuously, but the Americas demand environment looks good decision, making of course a bit slower than normal.
But the demand is there so it's a matter of decisioning. There. So we feel good about the Americas as well.
Hey, Andy.
General question.
From last quarter to this quarter any change in sentiment sales cycles.
Think of that nature across the board in your geographies.
No I would say it's the same they are it's measured in terms of its timing, but I don't think it's different timing now than it was earlier.
But it's not sped up either I think everybody is still is moving a bit of a slower pace.
It takes a few more approvals to get things done.
But what we like about it is that the demand is there there's not a lack of demand. It's just the timing of some of these things and how long they take to close and get started.
Okay, everyone. As you know is talking about generative AI still early a lot of companies doing proof of concept are you being retained for any work now and if you were I would assume it would be minimal, but I'm just curious your thoughts on if next year could be.
We see a meaningful tailwind from generative AI related work.
Yes, Vince good good question I mean, here's how we think about it.
Enterprises right now are starting what is likely to be a decade long kind of transformation similar to what cloud was 10 years ago. So think about it in that in that regard.
The through line here is speed, allowing more to be done and kind of less and less time in and this puts ISG right in the center.
Of a bite of kind of advising our clients on how to harness AI. We are doing that right. Now we have a number of use cases, we're tracking offerings from the providers. So that we can ensure our clients can best navigate we're creating an ecosystem there.
And I think this is especially important because with AI. There are some kind of a treacherous elements that can damage and enterprise brand. If it's not handled with expertise. So yes, we are focused on that.
I'm a client standpoint, we are working with clients. It's early stage, but one other aspect I would add to this Vince is terms of how to we as ISG use AI, we've used AI for years with our govern X platform beginning with <unk>.
Beginning with Watson, and then developing our own AI for contract data extractions, whereas com.
Combed through hundreds of pages and extracts deliverables and obligations, we call them <unk>.
Terms and so forth then youll recall, we did an acquisition first quarter last year.
A tech company called agreement and we did that because they had some AI technology around smart contracting and we have now incorporated that into our government X model. So I think youll continue to see.
Announcements from ISG over the next months ahead on this topic I would say ranging from <unk>.
Our research to advisory to contract management around automation, so keep an eye out for that but it's early stages and this will build over time and again I would look at the cloud 10 years ago and use it as an analogy with with AI, Vince I hope that helps.
Very helpful perspective, thanks for the color I'll go back in the queue.
Your next question is from the line of Joe Gomes with Noble capital. Your line is open.
Good morning, Thanks for taking my questions Hey, good morning, Jeff Good morning.
So the first one I just wanted to get a little better understanding here.
Last quarter, you guys talked about the second half of 2022 hiring and it was beginning to pay off in this quarter. Your Odyssey you took a restructuring.
Our restructuring or severance charges.
Just trying to figure out how that all fit together.
As to the beginning to pay off in your commentary last quarter to Hey, we're doing some severance this quarter.
Yes, now look let me reconcile that for you as you know we hired up over a couple of hundred 200 250 last year.
That is helping drive the 9% top line growth in the first half of this year, what we did in the third quarter is just like we do with our clients. We're always looking to upgrade our resources and skill base and we decided to optimize our resources a bit in Q2 to improve.
Our overall skills and performance levels, if you would.
So if you think about the numbers of people, it's a fairly small number.
If you think about what our head count is versus the prior quarter I think it's kind of net down a little over 30.
And compared that to the 250, we brought in I think you would see that.
There is really up.
Is complementary to that but look at it as kind of our overall trimming that we normally do each year, we use concentrated it here in the second quarter and really at a small number but because it's Europe . The severance is a little bit outsized.
Okay. Thanks for that I appreciate it and then.
One of the things you had talked about in the past.
What we call you talked about too much here lately is the training as a service option I was wondering maybe if you kind of give us an update on how that is unfolding.
Yes that is very hot.
We have found that the close cycle the sales cycle is a little bit longer.
Than we anticipated we have a significant.
One in the that we've been trying to get close frankly for over 45 days.
That we think we hope will close during the third quarter, but yes, we are very hot on what we call task training as a service.
Its resonating we have some very large blue chip clients that we also use as references.
Again. This is an early stage emerging but this is a definite growth opportunity for our firm and we will grow it outsized growth rates from the overall firm growth rates. So yes, we are very much on it and I hope to have something in the third quarter to say.
Great.
One more for me Michael earlier in your answer to one of previous question.
You were talking about how you.
You feel that the stock is undervalued.
You noted the $25 billion increase in the buyback.
Any thoughts about getting a little more aggressive on a quarterly basis with the buyback or you still think you're going to stick more in that $2 million to $3 million.
Level here at least in the near term.
Yes, no. Good question last year, obviously, we were a bit more aggressive earlier. This year late last year. Obviously, we made the acquisition. So we've had some acquisition costs.
And so really it's a matter of how we allocate across the.
The capital allocation.
We increased the dividend by 12% so.
We're always focused on what our what our cash flow looks like and how we deploy it for our shareholders.
The increase obviously, you should shake take that as a signal.
The buyback is important to us.
And philosophically and I've said this before our objective is to.
<unk>.
Shield, our investors from any dilution from our stock based compensation were not necessarily trying to drive the share count down.
In a significant way, but that will continue to be our objective and youll see youll see more of that from us in the future.
Yes.
Okay, great. Thanks, I'll get back in queue. Thank.
Thank you. Thank you.
Your next question comes from the line of Marc Riddick with Sidoti Your line is open.
Hey, good morning, everyone.
Good morning, Mark how are you.
Very good very good and Bert Thank you for everything and all your efforts over the last couple of years has certainly been.
We're working with you and hope you enjoy your retirement going forward.
Thank you.
<unk>.
Absolutely absolutely well since my my AI question was already taken I did what I thought it may be shift gears, a little bit maybe you could share a little bit on.
Maybe what youre seeing.
Client vertical behaviors, certainly with a lot of the detail that you've given and some of the growth drivers and some of the cost savings efforts. So I'm wondering if there were any particular industry vertical.
That youre seeing standout either positively or negatively.
Yes, no. Good question first of all maybe the hot ones.
Consumer services very high.
Life Sciences, and healthcare very hot.
Surprisingly to some degree public sector very hot.
Media Technology Hearts.
Would say BFS Si overall relatively flat.
Energy is decent manufacturing I would call it.
Just a tick above kind of a year ago. So thats, how we would think about the different.
Segments one other.
The point on the industries.
Is that we look at the industries and kind of a four box.
Scenario, where there are clients that are in a stabilization phase with them in with the macro environment.
And that that those are things like media light Tac.
A little bit now on kind of travel and tourism a lot of work with the airlines on op cost optimization et cetera, then you've got kind of the other side of the spectrum. If you will kind of the top right box type spectrum, where you have the healthcare you have the pharma you have the medical.
<unk> devices that are all seasoning kind of growth opportunities that they see out in the market and then you have the rest of them kind of in between there. So.
I would say that cost optimization is still the lead and they are using it to take cost out in a more swift manner, but also using it so that they can free up funds for their budget to drive their digital initiatives, which is really what's going to drive their growth in the future. So that's that's how we would think about.
The different industry verticals Marc.
That's very helpful. And then I was wondering and this is maybe low further down the road, but we've seen like this period of time, where.
M&A activity global M&A activity, just big picture Wise has certainly come down from record highs from a couple of years ago.
I was wondering though it seems as though maybe picked up a little bit sequentially I was wondering if youre seeing anything.
Along those lines driving any interest or driving any potential green shoots going forward. Thanks.
Again on the M&A.
Yeah.
We've always been I would say there is always I don't think there's much difference in terms of the seller thinking that their asset is worth greater than the buyer. So I think thats still a phenomenon that remains maybe the delta between those two is a little bit tighter now with this environment.
Than it had been a couple of years ago, but.
But overall I think when we think about the assets that we look at we know it's both financial consideration, but it's also an emotional consideration and we think that what we have which is a combination of cash stock and earn out.
Component and the ability to scale the business that we would acquire are the attractive elements.
That when we consummated a transaction and you ask on owner why did you choose ISG those would be the reasons. So we still feel very good and confident about about those in our M&A work.
That's very helpful. Thank you very much thanks, Mark Thank you Mark.
Yes.
I am showing no further questions in the queue I will turn the call back to Mike Connors for his closing remarks.
Well, let me close by saying, Thank you to all of our professionals worldwide for their dedication to our clients and for working together as a global team to deliver our strong topline results in the first half.
Our people have a passion for delivering the best advice and support to our clients as they continue their digital journeys and I could not be prouder of them. So and thanks to all of you on the call today for your continued support and confidence.
<unk>.
Have a great day.
This does conclude today's teleconference. You may disconnect now.
Yes.
[music].
Yes.
Okay.
Okay.
Yes.
[music].
Yes.
Yes.
Okay.
[music].
Yes.