Q3 2023 Information Services Group Inc Earnings Call
Okay.
Good morning, and welcome everyone to the information services Group third 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 for 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 third quarter Conference call I'm joined today by Michael Connors, Chairman and Chief Executive Officer, and Michael Sherrick, Executive Vice President and Chief Financial Officer before we begin I'd like to read a forward looking statement it's 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. These documents filed with the SEC, you'll be able to obtain free copies of any of the isg's SEC filings on either Isg's website at www Dot ISG dash, one dot com or the Sec's web site at.
Www Dot SEC Gov.
She 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 in preparation.
In accordance with GAAP for the reconciliation of all non-GAAP measures presented to the most closely 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 will be followed by Michael sure.
Mike.
Well, thank you Barry and good morning, everyone.
Today, we will focus on four areas first our record third quarter revenues, including our fast growing recurring revenue streams.
Our acquisition of Ventana research.
Third our Gen AI engagements in our view of this emerging market and fourth an update on the demand environment.
ISC delivered its best topline performance ever in a third quarter with revenues of $72 million.
Through the first nine months of the year, we generated a record $225 million in revenue up nearly 7% on operating basis.
Performance in third quarter was driven by strong double digit growth in Europe.
And in our recurring revenue streams.
Clients are increasingly focused on leveraging technology to improve customer experience and reduce operating cost of traditional sweet spot for ISG.
And this is reflected in our strong pipeline.
That said client decision, making right now is slower than usual and spending is being stretched over longer periods of time as.
As clients way the impacts of the macro environment and rising geopolitical concerns.
We expect the pace of spending on large scale transformations to pick up again in the new year when demand is likely to increase.
In the meantime clients are focused on cost optimization, and making targeted digital investments that will help them prepare for the next wave of growth.
During the third quarter, our ISG next operating model and disciplined approach to operating efficiency.
Allowed us to improve our firm wide EBITDA margins by 120 basis points quarter over quarter.
Our team execution remains stellar.
We also achieved 19% growth in our recurring revenue streams in the third quarter.
Driven by an increase in our multi year contracts and our investments in proprietary platforms and research.
For the first nine months recurring revenues were up 22% to $95 million and accounted for 42% of our firm wide total.
Our focus in this area continues to pay off.
And will help drive our margin expansion plans over the next two years.
ISG is already well known and highly valued for our industry, leading data on sourcing transactions.
Our comprehensive market research on the managed services sector.
And our market, making influence with buyers of technology and business services.
Now we are expanding the reach of our research business with our acquisition of Ventana Research announced yesterday.
Ventana is a well respected technology research firm specializing in coverage of the $800 billion software industry.
The firm tracks more than 2000 software vendors and provides detailed coverage on more than 250 of them.
In addition to expanding our ISG research coverage. This move gives us the unique ability to guide our clients' decision making with.
With proprietary research that now spans the entire software and services ecosystem.
Software is an important sector for ISG and our clients.
It now represents more than half of global technology spend and growing.
Ventana gives us unparalleled coverage of this market.
Adding to our market, leading coverage of the technology and business services industry.
The client list of Ventana research reads like a who's who of the software industry.
ADP service now sale.
Salesforce SAP.
And workday to name a few.
Ventana brings more than 40 unique new clients to ISG and the opportunity to cross sell our broad array of Iot products and services to them.
Beyond adding to our recurring revenue streams Ventana research as a valuable complement to our existing software advisory business.
On the buy side, we have a long history of advising our enterprise clients on software selection and implementation price and feature optimization.
Indeed more than 80% of our advisers are involved in sourcing transactions, where software plays a big role.
That's particularly noteworthy considering we are the market leader in sourcing advisory.
On the sell side Ventana research gives us a new growth platform for advising software vendors.
We can help them identify client needs in areas, such as cost optimization governance and tech modernization.
And help them home their go to market market approaches.
We are excited to add Ventana research's capabilities to our portfolio and welcome Ventana founder and CEO, Mark Smith and his nearly two dozen experienced industry analysts to our firm.
Okay.
Now a brief look at the active role ISG is playing in the hot new area of General AI.
Our clients are increasingly exploring and testing concepts to utilize generative AI in their businesses.
ISG is involved in a number of these initiatives.
Including we are advising a large U S metal resources firm on using AI to forecast the demand and price of minerals on a monthly basis.
We are advising us state auditor on creating gen AI foundational models.
To identify fraud.
And advising another client on creating guidelines and frameworks to control Gen AI for ethics by us and data poisoning.
And we are formulating and ethics and compliance management system for two large U S. Based insurance firms that will provide guardrails for their gen AI experiments and proofs of concept.
In September ISG released our global research study on the state of applied generative AI from an enterprise perspective.
Among many insights our research shows the first adopters of Gen. AI on the commercial side, our banking financial services insurance healthcare travel and hospitality.
It's still early days, but Jen AI is starting to gain some traction with the promise of much more ahead as we support our clients in this emerging area over the next few years.
Now moving to shareholder returns and 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 ninth quarter in a row since we instituted a cash dividend in 2021 and raised it last year by 12, 5%.
In fact, we have returned $62 million to our shareholders since the start of 2021.
As we move through the next few quarters, we will continue to deploy capital in a disciplined way for our shareholders, including accelerating our share buybacks.
Our goals remain by 2025 as part of phase two of <unk>.
We are aiming to expand our adjusted EBITDA margin, a further 200 basis points from the end of 2022 to approximately 17%.
We feel we are tracking to achieve this goal as our product and service mix continues to change.
And we will accelerate the growth of our recurring revenues to $150 million after surpassing our previous target of $100 million last year.
Now turning to our regions.
The Americas delivered $42 million of revenue up 1% versus the prior year.
Year to date revenues in the Americas were up more than 8% on the strength of our digital solutions and cost optimization services.
During the quarter, we saw double digit growth in our consumer banking manufacturing and public sector industry verticals.
Key client engagements included Corning, Centene Carnival and Mcdonalds.
During the quarter ISG continue to expand its relationship with a major U S utility.
This is a multimillion dollar engagement to support a divesture.
Right size the provider ecosystem for this reorganized company.
We also had several significant million dollar wins in the banking and financial services sector.
We want an infrastructure strategy in sourcing engagement with a leading Fintech company and we won new business with a leading pension fund to support the client selection of technology operations and client service providers.
And the healthcare sector, we won a large multimillion dollar technology engagement with a regional health care provider to support the clients adoption of an electronic health record system.
Turning to Europe, our Q3 revenues of $22 million were up 14% over last year and through the first nine months Europe Europe is up 5%.
For the quarter Europe delivered double digit revenue growth in our health Sciences energy utilities banking and public sector industry verticals and in our research business.
Key client engagements in Europe in the third quarter included excite New day Wintershall.
<unk> Red Cross and shell.
Following the merger of two high speed rail operators in Europe.
<unk> was awarded a significant agreement to rationalize the clients post merger technology environment.
<unk> infrastructure apps security and customer experience.
We also expanded our work in the energy sector, securing new business with a major global energy company to provide a range of tech strategy and sourcing related services for all divisions of this company.
And we expanded our work with a European oil and gas company, adding $1 million of revenue to support a large SAP four Hana project and business transformation.
Now turning to Asia Pacific, Our Q3 revenues of $7 million were down $100000 on a reported basis and up 3% on an operating basis.
FX remains a headwind in Asia Pacific.
Key clients in the quarter included several departments of the Australian government as well as such commercial clients as IAG, Australia broadband provider Nbn and the reserve Bank of Australia.
During the quarter, we won a new engagement with an Australian Lottery company following its spinoff from a gaming company.
We are supplying sourcing advisory and benchmarking services to this client.
And have also signed a contract with its former parent company.
Now, let me take a moment on the demand environment and towards guidance.
Cost optimization in our recurring revenue businesses remaining ongoing pillars of strength for ISG.
Our digital transformation and tech modernization pipeline is healthy.
But client consulting projects and spending are being stretched out.
We expect the speed of those engagements to reignite in the first half of 2024 as tech spending in market sentiment pick up based on our forecast.
This underscores the importance of technology as a competitive advantage for enterprises.
As ever we remain confident in our future and optimistic about our long term prospects.
Balancing our strong pipeline and the economic factors that could impact the timing of client decision, making in the pace of our execution for the fourth quarter. We are targeting revenues of between 68 and $71 million and adjusted EBITDA between nine and $10 5 million.
As you know Michael sharing joined our firm this summer as our new CFO.
Many of you have already spoken with Michael but since this is his maiden voyage on our quarterly investor call I want to officially welcome him to ISG.
So let me turn it now over to Michael who will summarize our financial results Michael.
Thank you, Mike and good morning, everyone as Mike mentioned ISG delivered record third quarter revenues revenues for the third quarter was $71 8 million up 4% compared with the third quarter of last year in.
In the Americas reported revenues were $42 5 million up 1% versus the prior year in Europe revenues were $22 1 million up 14% versus the prior year and in Asia Pacific revenues were $7 2 million down $100000 versus the prior year.
Third quarter, adjusted EBITDA was $10 $6 million down modestly from the prior year period, resulting in an EBITDA margin of 14, 8% up 120 basis points quarter on quarter, and down 80 basis points compared with the prior year's third quarter.
Third quarter operating income was $6 2 million compared with seven 4 million in the prior year.
Our net income for the quarter was $3 2 million or <unk> <unk> per fully diluted share as compared with net income of $5 6 million or <unk> 11 per foot per fully diluted share in the prior year.
On an adjusted basis third quarter net income was $5 7 million or <unk> 11 per fully diluted share compared with adjusted net income of $7 2 million or <unk> 14 per fully diluted share in the prior year's third quarter.
As of September 30th head Count was 1550 down 47 professionals versus the prior quarter.
Our consulting utilization continued to increase coming in at 73% for the third quarter up nearly 100 basis points year on year.
Our balance sheet remains solid and continues to have the strength and flexibility to support our business over the long term.
For the quarter net cash generated from operations was $3 2 million or a positive swing of $3 5 million from a year ago. We ended the quarter with $18 7 million of cash down modestly from $19 6 million at the end of the second quarter we.
We ended the third quarter with total debt of $79 $2 million.
Unchanged from Q2.
Importantly, we are comfortable with our debt to EBITDA ratio, which remained at one eight times.
On average our average borrowing rate for the quarter was six 8% up from three 6% last year and we ended the quarter with $48 8 million shares outstanding.
During the third quarter, ICP dividends totaling $2 3 million and repurchased nearly $1 million of shares. Our next quarterly dividend will be payable on December 20 to shareholders of record on December 5th.
And with that I will turn it back to Mike to share some concluding remarks before we go to Q&A Mike.
Great. Thank you Michael and welcome again to our team to summarize despite a slower spending environment ISG delivered its best revenue performance in the third quarter with revenues of $72 million.
We delivered 19% growth in recurring revenues and 14% growth in Europe.
We just expanded our recurring revenue growth engine with the acquisition of Ventana research I'll move that will accelerate the growth of our ISG research business and we believe generate additional advisory opportunities in the robust software segment.
Looking ahead, our pipeline remains strong and we will navigate the slower pace of client spending over the next several months, but it is clear cost optimization and all things digital including generative AI are top of mind for clients and in the sweet spot for ISG.
Our longer term objectives remain deliver $150 million in recurring revenues and increase our EBITDA margin to 17% by the end of 2025.
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.
So thank you very much for calling in this morning, and now let me turn the session over to the operator for your questions.
Thank you today's question and answer session will be conducted electronically.
I would like to ask a question you can do so by pressing star and one on your telephone keypad.
If you find that your question has been answered and you would like to remove yourself from the queue. You may do so by pressing the star one key again.
And again, if you would like to ask a question you can do so by pressing this sparky followed by one on your Touchtone keypad will pause just a moment.
And we will go first to Dave storms at Stonegate capital markets.
Good morning.
Good morning, Dave.
Congrats on the quarter and topline revenue, while everything looks great sorry.
To start with Ventana as hopefully you can give us a little more color on what that integration process and the timeline to get them up to speed looks like and Additionally, if theres any all Freddie if theres any overlap that's already seen between your customer base and theirs.
Great. Okay. Thanks, very much well look Ventana research.
With sole sourced by ISG, we have known about them for some time and sometimes timing works out great. We were looking for an asset that had great reputation in the software industry and had a team of analysts that people respected in Ventana research met that criteria.
For us.
They have.
We have over 40 clients.
All of which are all brand new to ISG.
Our client base tends to be on the managed services side and not on the software vendor side and this opens up all new incremental opportunities for ISG, including recurring revenues the.
The other thing that this does is that we have a software advisory business today that business is a consulting growth that goes into enterprises assesses what they currently have in terms of software think about it is as <unk>.
Salesforce as an example, or our service now and we look at their spending we look at the benchmarks and we help them identify opportunities to either get more efficient more effective.
And make sure that their usage matches up to the cost.
This allows us to also now look on the on the on the vendor software side and opens up new opportunities for us not only to sell in our research to the software vendors, but we believe opens up new consulting opportunities. So this was white space for us.
With very little overlap I think literally only four or five clients, where revenue producing clients of ours versus ventana and just one point.
I think we have a great track record on the research side, we acquired a company.
A few years backhaul expert ton that was based in Germany that business was small it was a couple of million dollars and we use that engine over in Germany to build it out until a global business that is now considered our ISG provider lens business IPL.
And the size of that business is six or seven times the size of the asset that we bought we think Ventana research over time can be like that for us hopefully that answer that Dave.
Understood that's very helpful. Thank you.
And then turning to cost optimization.
It looks like that's really starting to take hold can you just kind of walk us through how much of that maybe temporary in response to the macro environment and how much of that do you expect to be.
<unk> already going forward.
So good question, so cost optimization I would call. It in a normalized environment will represent about 30% of our pipeline $25, 30% today that pipeline is more like 45% and the reason. The course is is I think the macro environment, we're now seeing more.
Intense pressure over in Europe, with some of the geopolitical things happening in that environment, which gets.
<unk> and others to think about things a little more cautiously. So the cost optimization is everything from modernizing applications and taking cost out to either drop it to earnings per share.
We're still in many cases to use it to help with some of their growth initiatives, whether thats around the user experience or in other areas. So cost optimization think about it in the kind of 40% plus now in our pipeline and normalize maybe 25%. So it gives you an idea of the magnitude of the interest in.
The market on the optimization side.
Okay.
Understood. Thank you for taking my questions and good luck in the fourth quarter.
Thank you Dave.
We'll move next to Marc Riddick of Sidoti.
Hey, good morning, Hey, good morning, Mark.
I wanted to touch I mean, congratulations on the acquisition I was wondering if you could touch a little bit on sort of.
Maybe what this does for your acquisition appetite going forward and maybe if you can sort of bring us up to speed on maybe what you're seeing out there.
Availability in valuations and the like.
So good question so from our standpoint.
Our pipeline we are focused on.
Everything around the digital arena or recurring revenues Thats kind of where we are focusing our M&A efforts, we have a terrific track record of being able to bring assets into the firm and scale them using the channel that we have.
Look I think the overall market is a little more I'll call it realistic to balance between buyer and seller in terms of values.
But like all of our deals most of ours are sole sourced so ours are relationship driven.
And when you have relationship driven assets, they take a bit longer to go from beginning to end, but our appetite still remains the same in those areas to complement our overall business. So we think thats that's in pretty good shape I think the second part of your question I think was around the demand.
Environment was that the second question Mark.
Right. So on the demand environment I think there's two things here very interesting for us our pipeline is as strong today as it was in January is very strong and it's strong around optimization and digital digital work. The difference we see right now is the timing and the pace that clients for <unk>.
Willing to move.
So what might have taken us three year or four months to complete clients are stretching those things out to six or seven months.
Sometimes when clients would say, let's get started on November one. They said you know what we're going to wait will start in January so there is a little bit of a pace.
That has slowed down and I think it has to deal with everybody kind of weighing how this economy is going to impact their particular business. So the appetite on transformation remains the pace in which to execute is a bit slower. That's how we would describe it and I would describe it that way globally.
Okay. That's very helpful. And then the last thing for me I was wondering are you seeing much in the way of a differentiated behavior by client industry verticals are pretty much across the board.
Yes, no. Good good good question on the different industry segments, we do see it a bit differently.
<unk>.
Some or a little more distressed or are planning for a little more distress. Some of I would call. It in the mid market to lower market consumer type spending luxury side seems to still be.
Still be moving at a pretty good clip and so when you look at kind of the different and we kind of do a quadrant study of the industries each quarter for ourselves.
And it kind of varies between what certain industry segments need to do to specialized saw using the retail side kind of mid market and under they are looking to rip out cost quickly and then you have kind of the other side on the banking financial institutions are still in transformational stage and so they are looking.
To do a lot of that work, we're also seeing a slowdown a little bit on the health Sciences area.
And because of that and then cost optimization becomes a bit more important for them manufacturing picked up mainly grew for us 9% net vertical during the quarter.
They are picking it up on the transformation side, but I would say the the.
The consumer side of things and energy for that matter are both are both in the optimization stage. So it varies a little bit by industry.
Very helpful. Thank you Michael Congratulations yes, thanks Mark.
We'll go next to Michael Matheson at singular research.
Good morning, guys, congratulations on the quarter, especially in light of this macro environment.
Michael.
Good.
I noticed that you dropped 47 professionals versus the prior quarter I Wonder if you could fill us in on your utilization rate for your consultants in Q3, and how Q4 looks.
Yes, Michael you want to take that one yeah I'll take that so so our utilization as I think we highlighted in Q3 was 72, 5%. So we were up about 80 bps.
Year on year as we look at the fourth quarter I wouldn't expect to see a big change there even with some of the seasonality we're looking to hold it.
At those levels.
And I think again, we have room for upside as we head into 2024, assuming we start to see some of the macro rebound as we get into the the first part of the year.
Terrific. Thank you for that.
My second question and I'll leave it at too.
He is a little bit more theoretical than forward looking just around your dividend policy going forward.
You are paying a much higher dividend than the rest of the market.
And now cash is much more expensive your cost of financing were up about 300 bps going forward have you thought of slowing down the dividend increases and paying down some of the debt.
So look.
Michael Good good good question I think I would not look at kind of the yield with today's stock price too much if I were you.
Because clearly our stock is down is a lot of small caps caps are.
We will be back to you in the second quarter on our views of what the next.
Dividend will be but.
Likely is not going to be at the same percentage rate because it's on a loss small numbers.
But our intention is to grow our dividend each year, but we'll be back to you in the second quarter on that Michael.
Okay, great well, thank you again.
Thank you.
We will take our next question from Vincent Colicchio at Barrington Research.
Yes, good morning.
Good morning, Mike good.
Good morning.
So I'm curious what gives you confidence that sales cycles will improve going into 'twenty four.
Based on our discussions with our clients and the pipeline that we have we put the two together.
And we feel like this is simply for US anyway. This is a pacing of our clients primarily around the digital and the digital transformation side.
The cost optimization continues at a good clip, but the transformation is being paced.
Kind of longer period than normal, but based on our discussions I think they are wanting to get through the year. They wanted to see how the turn of the year is but all indications for us is that as we get into the new year, whether thats in month, one or month three.
Look a little bit different based on what we can see in our pipeline.
And the Ventana acquisition.
Yeah.
What has been their historical growth has been fairly healthy.
Yes, I mean, it's think about our recurring revenue growth has been double digits now for some time then.
And then Tana also the same way, but importantly, what we think it does is it opens up a whole new set of client base 40, new clients that we do not have in the ISG franchise today and what we can do with those 40 clients over the next year or two we think.
It's very quite healthy so theres a lot of reasons why we were interested and importantly, mark Smith, the CEO of <unk>.
Three well respected in the industry and he has a team of a couple of dozen analysts.
That we are a very strong on.
Based on my first question is seems like you could have some more.
Organic growth, maybe low but organic growth next year.
Just curious if you could help.
With ventana could add to that.
In percentage terms.
Well I think.
I think about it you should think about it in kind of.
150, 100 to 150 basis points.
Okay, that's very helpful.
And the.
Your pipeline you said is as strong as it was in January.
So.
That's a very good sign obviously.
Wondering if there has been.
And the pipeline any cancellations.
Just purely delays.
Arthur delays.
We haven't had anybody softness.
But we have had to stretch this out we've had some things move.
To start kind of phase two into January versus November. So that's what we are seeing.
So that's why we're pretty we're pretty confident on 2024, we will see how the pace moves, but with the demand environment in our pipeline the way it is.
We feel we feel good about 2024.
And then one last question are you seeing any changes in pricing pressures or better term negotiations right now given the environment.
That's a good question I think pricing is a little stronger not stronger in terms of price with stronger in terms of negotiation again in this environment I think everybody wants to get a deal.
And so I would say pricing is not we don't have the premium pricing capacity at the moment that we might have had before this macro took.
Took whole Vince.
Thanks, Mike Yeah. Thank you good to talk to you.
Yes agreed.
Sure.
And next we'll move to John Collins at Noble capital markets.
Hey, Good morning, guys. This is Josh local filling in for Joe.
Hello, Josh.
Hey, it's one thing congrats on there then Montana acquisition.
I wanted to.
Talk about that real quick obviously.
So you guys can provide any color just on the terms of the acquisition and you guys had been talking to stay any clients disregarding any crossover services you guys mentioned in the call.
Yes, so look we like we do on all of our acquisitions, we paid a little bit of cash upfront and then an earn out over time.
With a little bit of stock the cash upfront think about it was not large think about it in the $1 million range.
But the crossover is what is very exciting for us as I mentioned earlier.
They bring over 40 brand new clients to ISG we.
We had zero revenue with these are all big names in the software industry.
So not only will we be able to inform them with a broader array of research products and services, but we were able to bring the whole portfolio ISG products and services to these large companies because theres relationships there so.
As I mentioned earlier I think over the next couple of years.
This could this could benefit us tremendously with these new net new client assets.
Okay great.
I'm kind of looking at revenue.
And operating income net income, obviously revenue came down a little bit lower than guidance and the operating income is in that kind of income or kind of down year over year can you guys just kind of provide a little color on that.
How that how that came to be.
Yes.
To your point.
We saw a squeeze as we went down to operating income and the biggest piece is the shift in the direct cost as you see which were I think up about $3 million on a year on year basis. We also had some severance in that in that number in the operating income number of about 700000 that wasn't there last year, which is one of the bigger impact those are.
Really the two biggest things too to get you down to the operating income level.
Okay, Great and then lastly.
Just looking at the Asia Pacific segment, you were talking about double digit growth here earlier in the year, but now it's down this corner and it's kind of flat in the second quarter can you just kind of provide a little more detail about what kind of happening in that market.
Yes look I think our Asia Pacific market is a great market for us and as I've said this I think over the last few years at times, there will be a little peaks and valleys and it's driven primarily by government spending and its pace.
We just won a very large contract with the Australian taxation office they call. It Ato and Great example of that those things can start to accelerate or delay and this one is delayed by a few months. So they were up 3% on an operating basis, we do have some FX FX headwind.
And in that market and we expect that that still have a headwind during the fourth quarter, but that overall market for us is normally kind of a double digit driver of growth over time, and we see no reason that can't continue in 'twenty four and beyond.
Okay. That's it for me congrats guys. Thanks.
Thanks, Josh.
And Im showing no further questions I will turn the call back to Mike Connors for his closing remarks.
Well look 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 a record third quarter revenues I also want to extend a warm welcome to Mark Smith and all of our new colleagues from then tunnel research.
Our people have a passion for delivering the best advice and support to our clients as they continue their digital journeys and I cannot be more proud of them and thanks to all of you on the call today for your continued support and confidence in our firm.
Have a great rest of the debt.
This does conclude today's teleconference. You may disconnect at any time.
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