Q4 2024 Globant SA Earnings Call
I'd like now to turn the call over to Martin <unk> our CEO.
Martin: Welcome Good afternoon, and Hello, everyone.
Martin: We're facing a major transformation. It is a revolution that Florida has not only anticipated.
Martin: But has it been shaping for many years.
Martin: The advance in AI the lines between technology and business are fading.
Martin: Today is not just a tool, but the core of enterprise reinvention, while many technology players are jumping on the AI Revolution.
Martin: Running themselves as experts without having made any real investments in the field.
Speaker Change: <unk> has been investing in AI for the past 10 years.
Speaker Change: This long term commitment means we are not merely riding the wave of the latest trends we have developed deep proven expertise in the field.
Speaker Change: Green technology that there is to the light is not just about writing code.
Speaker Change: It is about creating meaningful value in a world powered by AI agents industry specific intelligence and human touch Wood, we're building software with purpose shaping experiences driving impact I'm pushing the boundaries of what technology can achieve.
Speaker Change: Many doubted.
Speaker Change: But this was not our guide.
Speaker Change: <unk> was along.
Speaker Change: Along the journey, we have worked on projects that redefine the user experience from game face IV technology at the new L. A clippers into them to their digital ecosystem of Korea in Saudi Arabia to the next generation passenger experience I one of the top airlines in the U K our momentum.
It is undeniable we are.
Speaker Change: No longer just the scaling we are orchestrating an ecosystem of AI agents that automate complex processes, not only in operations, but across digital front and backend digital branding creativity and enterprise functions.
Speaker Change: At the heart of the transformation of our AI Studios. These studios are not just another business unit. They are the epicenter of our reinvention strategy.
Speaker Change: They are designed to embed AI deeply within industries leveraging company specific data insights from ERP, CRM and other transactional systems and generating synthetic data to train models to learn.
Speaker Change: On a boat.
Speaker Change: They represent the boldest expression of what we believe the future holds a future where AI doesn't just support basis it drives them.
While we're in this entire ecosystem is our global enterprise AI platform. The orchestration software that seamlessly integrate to manage all these AI agents enterprise say I provides LLM model independence, and stability and ensuring that our clients are not locked into a single technology provider more in.
Speaker Change: Fortunately it delivers complete traceability of AI, driven processes offering transparency accountability and the ability to monitor and people strategies in real time.
Hi.
Speaker Change: Okay.
Speaker Change: Clearly.
Speaker Change: Clearly not all combined.
Speaker Change: Adaptable and scalable AI solutions to enterprises around the world.
Speaker Change: The platform is being implemented to accelerate the software development lifecycle in most of our current projects.
Speaker Change: We have seen an outstanding growth of AI related projects at Beaumont.
Speaker Change: In 2024, they contributed over $350 million to our revenue up 110% from 2023, but the Nokia alone isn't enough company and brand them with technology, great products that are not just functional but emotional resonance and culturally relevant.
Speaker Change: In a world where widespread access to technology lets to commoditize localized products, we advocate for merging creative storytelling with tech development to build products that stand out.
Speaker Change: Globally, we believe that brand is text prompt.
Speaker Change: Our strong brand should be the foundation for technology, ensuring it reflects the company's core values and create meaningful connections. This approach ensures that technology doesn't just solve problems. It tells stories evokes emotions.
Speaker Change: And build lasting loyalty. This has been the mission driving the growth of global and got our creative marketing network of studios through many smart marketing campaigns with Brian ratio from Coca Cola to Mercado Libre, two Verizon today, our growing gas network represents.
Close to 10% of our total revenue and is showing a strong and sustained growth year over year.
Speaker Change: All of these efforts are combined with global entrepreneurial culture.
Speaker Change: We want to inspire every global to feel like they own the place I'm sure that this is what was behind our performance in 2024, while our peers reported stagnant growth we broke new records.
Speaker Change: Our revenue reached $2 4 billion up 15, 3% over previous year Marching also improved adjusted operating profit was up by 20 basis points and adjusted diluted EPS grew 11, 5% year over year to $6 40.
Speaker Change: As we close 2024.
Speaker Change: Looking back at our first 10 years as a listed company blood unbeliever at $28 three compound annual growth rate from 2014 in Q4 total revenue reached $642 $5 million. This represents an increase of 10, 6% year over year.
Speaker Change: And four 5% quarter over quarter.
Speaker Change: This growth is not just a testament to our resilience, but a reflection of ambition and transformation that goes beyond our competitors. It is the embodiment of our strategy, our relentless pursuit of reinvention and our ability to see opportunities where others see.
Speaker Change: He obstacles.
Speaker Change: Even if we build this AI power future, we know that AI requires continuous leadership technical talent and a mindset that embrace reinvention as a constant state not on a patient need.
Speaker Change: Our people define the goals guide the agents and people strategies in an environment of constant change.
Speaker Change: For over two decades, we have challenged the status quo, often seen as outliers in an industry offset with a next week. When we were not building for the next quarter. We were building for the next paradigm today, we're creating a company that is both an established force and an agile change maker, we have proof.
Speaker Change: Even that we're capable of reshaping industries and redefining business models, we are not here to follow the curve. We're here to bend it now I'll hand, it over to Diego for our technology focus. Thank you very much.
Diego: Thank you Martine and Hello, everyone as Martin mentioned coupling generative AI with the Gentex solutions will benefit globally, both as a solutions developer and as the business consultancy.
Diego: In November code Fixer, the AI agent developed through global enterprise AI to fix bugs and already in use by Globus globally ranked first in the renowned SW E bench light evaluation confirming its exceptional performance.
Diego: AI agents are being leverage big time by our industry specific studios to enhance our value offering and are integral to our partnerships over the past six months global has successfully implemented salesforce agent force across multiple industries, driving AI powered automation and efficiency for example.
Diego: We partnered with Spains top flight sports organization to enhance.
Diego: The real estate developer to optimize transportation bookings and with an employee benefits management company to improve real time order tracking with.
Diego: With Google days ago, we presented a new Gen AI solution for retail AI retail search and recommendations allows customers to interact with their beloved brands using semantic searches and images as references for what they are looking for using vertex retail API and Gemini AI retail search and.
Diego: <unk> is designed to enhance personalization drive conversions and improve customer services also with Google. We recently signed a three year strategic partner agreement that has positioned us among top 10, Google regional system integration partners.
Diego: Through this collaboration we are co developing solutions and go to market strategies for key industries, including media retail HOS Airlines and finance now let me share some of the work we are doing for amazing companies around the world.
Diego: In Mexico globally got began a strategic partnership with Yahoo aimed at revolutionizing. Its E. Commerce business, we are integrating technology data analytics and creative content to enhance the online shopping experience and boost brand visibility to 360 scope includes a dedicated data team to ensure cam.
Diego: Pain relevance our content team to optimize product visibility on digital platforms, and our retail media strategy aimed at maximizing advertising our oi.
Diego: This partnership is not just about maintaining leadership, but about innovating the retail experience through technology and creativity in our vibrant new markets Division globally has partnered with Red Sea Global one of Saudi Arabia as most ambitious tourism destinations that will be home to 50 resorts 8000 hotel rooms and 1000.
Diego: Properties by 2030.
Diego: Create digital.
Diego: Okay.
Diego: Experience will be.
Got it.
Diego: Great So artificial intelligence Iot data analytics.
Diego: Connected visitor experience.
Diego: <unk> real time interactions tailored to individual preferences, ensuring a truly memorable state.
Diego: This partnership will pioneer new benchmark in digital engagement <unk>, how travelers interact with destinations in the health and life Sciences sector. We are proud of our growing and transformative partnership with Hollister Global Med Tech company.
Speaker Change: Global enabled a successful go live for holiday business.
Diego: Isn't it.
Diego: Look forward to continued partnership to implement a global business transformation, including migration to S. P. S for Hana Ulta.
Diego: Ultimately this means faster database interaction real time insight into business operations advanced process automation and efficiency.
Diego: In Japan, we are working with Arizona Bank group, one of the country's largest retail banks with 16 million individual customers. They chose <unk> to support the migration of most of the business operations currently performed through Atms and financial terminals at brick and mortar branches.
Diego: To computers, and other electronic devices, offering a better and easier experience to their customers.
Diego: Zona Bank group was able to reduce half of its financial terminals through a lean and quick project as shown by our work around the globe Globin is leveraging all significant technologies, while exploring new ones on the horizon.
Diego: I suggest you take a look at global its latest tech trends reports to learn about synthetic humans quantum computing invisibly experiences and robotics and more on our vision over AI, a gentex solutions, adding.
Trip Pommies: Adding to what Martin mentioned globally is in a unique position to craft, a new reinvention of the industry with amazingly talented people and evolving technological offering and an agile and disruptive culture I leave you all with a trip pommies our COO. Thank you very much.
Speaker Change: Thank you Diego globin.
Speaker Change: <unk> continues to envision that growth to the strong relationships, we cultivate with each client establishing proven track record of quality delivery and consistently surpassing their expectations over time currently we have 20 clients generating over $20 million in annual revenue up from 16 clients.
One year ago.
Speaker Change: <unk> 346 clients contributing more than $1 million annually 35 more than one year ago revenue from our largest client the Walt Disney company increased by a sharp 23, 7% year over year, and five 1% quarter over quarter.
Speaker Change: Regionally, our most significant growth this quarter came from our new market region encompassing our efforts in the middle East and Asia Pacific where revenue increased by 43, 8% quarter over quarter at 89% year over year year over year Europe showed growth.
Speaker Change: 23, 3% and North America at six 5%, but three 7% sequentially pointing to some acceleration.
Speaker Change: Latin America showed a one 2% decline, but six 3% growth in constant currency terms.
Speaker Change: We are reinforcing our go to market strategy worldwide in order to maximize the potential of our AI who knows.
Speaker Change: Which have been critical in capturing our largest projects throughout this year.
Speaker Change: Across each region, we are hiring industry, leading talent in key growth sectors that include airlines CSI travel and hospitality among others.
Speaker Change: Our objective will be to provide more tailored solutions to our clients. The best from both a technology focus and industry specific knowledge, our global revenues sources continue to diversify.
Speaker Change: North America accounts for 55, 2% of our topline followed by Latin America, 24% Europe at 17, 7% and our new markets at six 7%. Additionally, in Q4 five out of eight industry verticals experienced sequential row.
Speaker Change: With DFS tie up by 18.4%.
Speaker Change: While in hospitality by 17, 1% health care by 14, 6% consumer retail and manufacturing by four 7% and technology and telecommunications by two 2%. The essence of globin lies in our role as transformation partners collaborating with our clients to drive.
Speaker Change: Meaningful change together over time.
Speaker Change: 2024th our steps forward in that vision.
Speaker Change: Our pipeline is strong and continues to grow estimated at $2.6 billion. In early 2024. It reached a record $3 3 billion by the end of the year. This was mainly driven by our North America Division with the pipeline, reaching a record high and bookings growing eight 2% quarter over quarter as of Q4.
Speaker Change: Sure.
Speaker Change: Similarly in Europe, we are now seeing a strong evolution of both pipeline and bookings activity.
Speaker Change: Bookings in this region growing by 35, 7% sequentially. This drove backlog of work will drive strong momentum for this region throughout the year.
Speaker Change: We see the latest factors combined as indicators that long term demand is increasing and should eventually turn into higher bookings and revenue acceleration in Q4, we surpassed a special milestone 30000 globe throughout the world.
Speaker Change: Our total head count now stands at 31280 <unk>.
Speaker Change: Seven 3% increase over last year with 29198 being high Tech professionals.
Speaker Change: Our utilization rate is currently at 79, 3% showing a slight decrease against last quarter.
Speaker Change: Our attrition rates stand at nine 5% on our path to becoming the world's number one AI partner, we recognize the importance of equipping our teams with the latest proficiency in AI.
Speaker Change: In December we launched a new AI learning hub.
Speaker Change: And then total platform that provides essential resources for <unk> to access global enterprise AI, our AI accelerator platform.
Speaker Change: And eat AI agent and maximize its use in their day tasks and projects optimizing operational efficiency and creating value for our clients. We firmly believe technology is a powerful force for inclusion in transformation and.
Speaker Change: In 2020, we committed to providing 15000 coding scholarships like 2025 through the program code feature.
Today, we are very proud to announce that we have reached physical one year ahead of schedule.
Speaker Change: Hiring people worldwide with digital skills. This milestone reflects our commitment to bridging technology gaps and fostering a more inclusive Peter with that I'll turn it over to Glenn to discuss our financials. Thank you everyone.
Glenn: Thank you Paul and good afternoon, everyone. This has been another quarter of strong revenue growth and margin improvement.
Speaker Change: This strong quarter marks another year of Globus outstanding performance let.
Speaker Change: Let me go through some of the highlights our revenues reached a record level of $642 $5 million up 10, 6% year over year, and four 5% sequentially within the guidance range.
Speaker Change: In constant currency revenue growth stood at 12, 6% year over year and five 8% sequentially. We estimate at eight 5% year on year revenue growth and organic constant currency terms of Q4.
Speaker Change: Revenue for the full year was 2 billion $415 7 million within the guidance range or 15, 3% over the prior year.
Speaker Change: In constant currency revenues for the year grew 16 point too.
Got it.
Speaker Change: Before 'twenty three 'twenty four was nine 8%. This strong growth was driven by the expansion of our service offerings and global footprint.
Speaker Change: Reported growth contributions from our AI industry Reinvention studio network and our got studio network with both posted growth above the company average.
Speaker Change: We delivered improving margins.
Speaker Change: Closed Q4 with an adjusted gross profit margin of 38, 3% up 30 basis points year over year.
Our adjusted operating margin at 15, 7%.
Speaker Change: The highest recorded in the past eight quarters reflected an increase of 40 basis points year over year.
Speaker Change: Adjusted SG&A stood at 18, 5% and our effective tax rate stood at 15, 1% for the quarter, resulting in an adjusted net income of $78 $7 million with a 12, 2% adjusted net profit margin up 40 basis points sequentially.
Speaker Change: Adjusted diluted EPS was $1 75.
Speaker Change: Up 8% year over year, ending at the higher end of our previous guidance.
Speaker Change: Regarding our 2020 for full year performance.
Speaker Change: The adjusted gross profit margin was 32% up 10 basis points relative to 2023.
Speaker Change: Adjusted operating margin post at 15, 4%.
Speaker Change: Up 20 basis points versus the previous year.
Speaker Change: Adjusted SG&A for the year stood at 18, 4% and our effective tax rate stood at 19, 7%.
Speaker Change: Resulting in an adjusted net income of $285 $4 million with an 11.8% adjusted net profit margin.
Speaker Change: Adjusted diluted EPS was $6 40.
Speaker Change: Up 11, 5% year over year.
Speaker Change: Our balance sheet remains healthy ending the quarter with $156 $1 million in cash and short term investments or $136 $5 million and net debt.
Speaker Change: As of the end of the year, we had $297 million drawn from our $725 million revolving credit facility, we have ample liquidity to support our growth initiatives.
Speaker Change: During the fourth quarter, we generated $101 $2 million of free cash flow.
Speaker Change: <unk> free cash flow to adjusted net income ratio of 128, 6% for the fourth quarter on a full year basis free cash flow was $138 $1 million, resulting in a ratio to adjusted net income of 48, 4%.
Speaker Change: Now, let's discuss guidance, we will start guiding constant currency both for the next immediate quarter and the full year aiming to provide more color into our underlying growth given the current volatility in ethics regarding Q1, we had already been expecting a more muted start to the year due to lower <unk>.
Speaker Change: Billable days negative seasonality and holidays in the southern cone alongside important product roll offs in our sports vertical. Additionally, we are now embedding two factors that were previously not expecting fair.
Speaker Change: First the recent volatility in political and macroeconomic conditions is impacting the demand in Latin America, specifically in Mexico and Brazil.
Speaker Change: We expect revenues at our top clients to be slightly down in Q1, following a very strong investment phase in H two 2024, we.
Speaker Change: We are forecasting this account to grow in the mid to high single digit range for the year.
For Q1, we expect revenues in the range of $618 million to $628 million.
Speaker Change: Which represents an eight 2% to 10% year over year increase or a 10, 2% to 12% increase in constant currency.
Speaker Change: Accounting for approximately 200 basis points of FX headwinds for Q1 2025, we expect our adjusted operating margins between 15, 5% and 16, 5%.
Speaker Change: The <unk> effective income tax rate is expected to be in the 20% to 22% range and adjusted EPS for the first quarter is now expected to be between $1 55 to $1 63.
Speaker Change: On average a $45 3 million diluted shares moving to the full year guidance and despite the incremental headwinds in Q1, we continued to forecast double digit growth in constant currency terms for 2025, you see a strong backlog of work ramping up in new markets in Europe, and we are seeing an encouraging express.
Speaker Change: One of our pipeline in the U S.
Speaker Change: This would lead to a recovery of Q2 and revenues to similar levels to Q4.
Speaker Change: Then we expect a stronger second half as usual in our business.
Speaker Change: On a reported basis, we are estimating $2.635 billion to $2.705 billion in revenue, which represents nine 1% to 12% year over year increase or 10, 6% to 13, 5% increase.
Speaker Change: And currency <unk>.
Speaker Change: Including approximately 150 basis points of FX headwind.
Speaker Change: We anticipate adjusted operating margins in the range of 15, 5% to 16, 5%.
Speaker Change: The 20 to 25 Ifr S effective income tax rate is expected to be in the 20% to 12%.
Speaker Change: Great.
Speaker Change: Finally, our adjusted EPS is expected to be between $6 and 82, 7%.
Speaker Change: Right.
Speaker Change: Okay.
Speaker Change: Two chairs couch.
Speaker Change: For the year conclude we are very pleased with our 2024 financial performance, which reflects another year of our unique position in the industry.
We are excited about 2025.
Speaker Change: Which will be another year of strong growth with improving margins. Thank you for your continued support and we look forward to share more updates on our growth achievement in the coming months.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Thank you Juan and hi, everyone.
Speaker Change: As we go through the Q&A section of this call I will first announced her name.
Speaker Change: Please submit your line and then ask your question.
Speaker Change: Please meet your lineup you're done with your question.
Speaker Change: Also I will ask you to please limit yourself to one question.
Speaker Change: Thank you very much in mind I will take the first question from the line of Jim Schneider from Goldman Sachs.
Speaker Change: Jim. Please go ahead.
Jim Schneider: Good afternoon, and thanks for taking my question I was wondering if you can maybe comment on the overall demand environment you're seeing.
Jim Schneider: On a regional basis sounds like things are a little stronger in the U S and yes.
Jim Schneider: The middle East and maybe a little bit weaker but cautious.
Jim Schneider: Latin America, maybe talk about the outlook in Europe, and maybe with respect to Latin America.
Jim Schneider: Can you maybe talk about the factors that would actually cause.
Jim Schneider: Customer demand.
Jim Schneider: Two to start to get a little bit stronger and for them to release some of the discretionary spending thank you.
Jim Schneider: From our guidance.
Jim Schneider: <unk>.
Jim Schneider: The picture looks quite good and the demand in the U S.
Jim Schneider: A strong the pipeline is strong.
Jim Schneider: In Europe, the <unk> instruction and quite well.
Jim Schneider: Massive customers like.
Jim Schneider: A big airline.
Jim Schneider: In the U K plus.
Jim Schneider: A big Bank in Ireland, then things.
Jim Schneider: Things are moving fast of course in new markets.
Jim Schneider: Everything is is to be discovered we just closed.
Jim Schneider: No very large contracts there for.
Jim Schneider: Four centimeters high marks on them for them.
Jim Schneider: The logic compact.
Jim Schneider: I am very positive picture in three of four main markets that we that we have.
Jim Schneider: In America, the situation is a little bit more stable now it used to be during 2024.
Speaker Change: Rock there.
Speaker Change: Most of the political turmoil and different things that happened in Brazil, and Colombia, mainly.
Speaker Change: But I think now that.
Speaker Change: It looks like.
Speaker Change: There'll be more healthy.
Speaker Change: In terms of the pipeline the conversion.
Speaker Change: Overall, if you need to ask.
Speaker Change: I need to say.
Speaker Change: The Big picture.
Speaker Change: The pipeline is very strong.
Speaker Change: Our AI.
Speaker Change: <unk> related work is growing extremely fast high and 10%.
Speaker Change: AI is impacting pretty much 100% of what we do with our.
Speaker Change: We were developers in front of our customers.
Speaker Change: That massive disruption going from.
Creating this transformative experience that requires of course, a strategic thinking a lot of creative.
Speaker Change: Thinking and of course the second.
Speaker Change: Knowledge, but how we create that technology is evolving into AI agent registration.
Speaker Change: All that although things for us are pretty familiar we have been best in those things like no one else.
In the space.
Speaker Change: For for a decade now and.
Speaker Change: But when it's growing.
Speaker Change: Extremely fast in those areas.
Speaker Change: I would say that the conversion of that massive pipeline that we have across our company.
Speaker Change: Became a little bit slower during the last quarter.
Speaker Change: Seeing some acceleration as we speak right now so I.
Speaker Change: I hope that provides us with more color to your to your question.
Speaker Change: Thank you for your question Jim. Our next question comes from line of.
Speaker Change: From JP Morgan.
Speaker Change: Your line is open.
Speaker Change: Yeah.
Speaker Change: Hey, Thanks for taking medicine.
Speaker Change: Wanted to ask about.
Speaker Change: Your new clients, specifically in that middle East like how should we think about the ramp.
Speaker Change: Timing.
Speaker Change: And some of those accounts.
Speaker Change:
Speaker Change: We are ramping up airplanes, we think so.
Speaker Change: No.
Speaker Change: The idea now is that.
Speaker Change: Those are.
Speaker Change: And resorts.
Some of them are being built some of them already.
Speaker Change: So the call it was thoughtful rollout us to produce it.
Speaker Change: The it would be like.
Speaker Change: Stronger growth during this year and I think much stronger in 2026.
It's two years would be very very strong coming from middle East.
Speaker Change: What is interesting about.
Speaker Change: When it is up.
Speaker Change: Initially we were working on Rx amusement parks than rewarding to hospitality.
Speaker Change: Some hotel chains.
Things like that.
Speaker Change: We're also working on some financial companies Inc.
Speaker Change: In conversations with some are less so.
Speaker Change: Right.
Speaker Change: Arena too.
Speaker Change: To tap into different industries in the region, which has a lot of potential.
Speaker Change: Got it.
Speaker Change: Can you also talk about pricing trends.
Speaker Change: Our multilane.
Speaker Change: With you.
Speaker Change: Like are continuing to increase.
Speaker Change: Are you able to get right.
Speaker Change: In Green.
Speaker Change: You'll be able to.
Speaker Change: The pricing market.
<unk>, you know, we're being able to get at.
Speaker Change: Summarized increases in those products, which are extremely focused on selling.
Speaker Change: Selling more or creating incremental incurring incremental revenues from our customers.
Speaker Change: In the type of kind of cost saving type of process.
Speaker Change: With more complicated and there are more competition there.
Speaker Change: On average I would say that's going to be.
Another area of.
Speaker Change: Neutral to low single digit type of price increases.
Speaker Change: Okay. Thank you so much and contracts for 200 millimeter and the calendar year.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Thank you very much.
Speaker Change: Just as a reminder, if you could leave yourself to one question. Please.
The net question comes from the line of Maggie Nolan from William Blair. Please go ahead.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: And Gary Epsilon.
Speaker Change: As the organic growth drivers over the course in 2025.
Speaker Change: And can you share expectations for Alex.
Speaker Change: The guidance just from an organic perspective as well.
Speaker Change: From the number and maybe they can come in and provide some color.
Speaker Change: The overall growth for the year a.
Speaker Change: At midpoint this.
Speaker Change: Then in a half percent in dollars.
Speaker Change: 12% in constant currency, so we're assuming about 150 basis points of FX impact.
Speaker Change: The organic constant currency growth.
Speaker Change: Estimating is a.
Speaker Change: So very much in line with only 24.
Speaker Change: That growth will mainly be driven by new markets, which continues to be very strong euro.
Speaker Change: Europe, we mostly providing millions of growth.
Speaker Change: Have already.
Speaker Change: I mean, some some clients.
Speaker Change: That will start to see improved and commercially in the U S.
Speaker Change: Latam is gonna be early the slowest growing region.
Speaker Change: This in terms of areas.
Speaker Change: The creative work load coming from already got trading network combined with our AI Studios I think that's where the growth.
Speaker Change: It will come from.
Speaker Change: We're excited about over the we're seeing in our area.
Speaker Change: How they are building solutions.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Many of the businesses, our customers and I think that's where a lot of the opportunities.
Speaker Change: Pipelines are coming so that's.
And that's where we're seeing the opportunities.
Speaker Change: Thank you.
Speaker Change: Thank you Mario for the question. The next question comes from the line of Jamie Friedman from Susquehanna. Please go ahead.
Speaker Change: Alright, thank you for the opportunity.
Jamie Friedman: I was just wondering how you're thinking about the benefits of automation, how it might be.
Speaker Change: Related to the linearity of that.
Jamie Friedman: Expecting.
Jamie Friedman: Revenue.
Jamie Friedman: The inputs are that would be helpful. Thank you.
Jamie Friedman: Yes.
Jamie Friedman: Thank you for your question.
Jamie Friedman: Jamie.
Jamie Friedman: I think that.
Jamie Friedman: As we evolve in the AI productivity and tools we have.
Jamie Friedman: And our software development lifecycle.
Jamie Friedman: Agents.
Jamie Friedman: Having like a much better.
Jamie Friedman: Understanding of.
Jamie Friedman: How this is helping our people to become more practically Brett.
Jamie Friedman: As I said before it's Cathy.
Jamie Friedman: He is present pretty much all over the place.
Jamie Friedman: We are.
Speaker Change: Doing a lot of things with our AI Studios.
Speaker Change: Ah mainly with our App.
Jamie Friedman: Hi.
Jamie Friedman: Enterprise.
Jamie Friedman: Our enterprise AI platform, which is like the orchestrating orchestration software in which you get independence from LLS.
Jamie Friedman: Traceability of whats going on.
Jamie Friedman: Can.
Jamie Friedman: Take a much harsher process and cut it in small pieces and.
Jamie Friedman: And we are starting to figure out ways to Adarsh.
Jamie Friedman: Dose.
Jamie Friedman: Both agents.
Jamie Friedman: The work, we do on both agents.
Jamie Friedman: In a way that is.
Jamie Friedman: More tight performance done just effort.
Jamie Friedman: So that would generate moving forward.
Jamie Friedman: We have been doing with the platform that will that will generate more like a decoupling.
Jamie Friedman: From just the people that we have on it.
Jamie Friedman: It will be much more leverage in the <unk>.
Jamie Friedman: The AI tool.
Jamie Friedman: So.
Jamie Friedman: We expect that.
Jamie Friedman: D L M becomes everyday more and more commoditized.
Jamie Friedman: This optimization.
Jamie Friedman: That are ready to be done and it's already ready to use.
Jamie Friedman: And.
Jamie Friedman: Connected with the backend systems of the company so on so forth.
Jamie Friedman: Those AI agent implementation and orchestrations will keep or having a lot of value for our task somewhat and this is how we look the future how we how we see the future.
Jamie Friedman: So.
Jamie Friedman: For many many years.
Jamie Friedman: Star.
Jamie Friedman: Starting in and trying to decouple this.
Jamie Friedman: Two five tourists surfing.
Jamie Friedman: Real complicated based on licensees sort of thinks about where were very difficult to measure today, we have tools and we have technology that is.
Jamie Friedman: Expanding our horizon into an unlimited set of opportunities that we haven't seen before so the kind of process. We can now are much different than the projects uses in the past.
Jamie Friedman: The.
Jamie Friedman: The type of tasks that our engineers.
Jamie Friedman: Are doing are absolutely different are evolving and growing.
Jamie Friedman: So either.
Jamie Friedman: It's a it's an amazing moment to.
Jamie Friedman: Have the customers we have.
Jamie Friedman: And be able to serve them in a totally different way.
Jamie Friedman: Helping them.
Jamie Friedman: More connected to what we are.
Jamie Friedman: How we performed rather than just via for the debt.
Jamie Friedman: It is.
Jamie Friedman: They're being used for that client so I.
Jamie Friedman: I hope that provide more color, but maybe if you can.
Jamie Friedman: Hum.
Jamie Friedman: I think that pretty much covers it all but I just went out.
Jamie Friedman: A small comment with regards to that.
Jamie Friedman: Think bus.
Jamie Friedman: There's kind of a disconnect.
Jamie Friedman: Because the real technology in this indication is amazing Super Super I can leave no catchy.
Jamie Friedman: And super powerful as well, but getting enterprise ready support means.
Jamie Friedman: A lot of things means security mystery stability means improvements where time operation means connecting to the mill building.
Jamie Friedman: Building the right experience, so even though you may see.
Jamie Friedman: A little number forming a mainstream stuff business solutions for companies you know Ford that are entered.
Jamie Friedman: Race ready that work on a regulated environment.
Jamie Friedman: Total difference so that's how we that's where we play.
Jamie Friedman: Thank you both.
Jamie Friedman: Thank you. Thank you.
Speaker Change: Next question comes from the line of Jonathan <unk> from Guggenheim Jonathan.
Jamie Friedman: Okay.
Speaker Change: Great. Thanks, and my question can you talk us through the level of visibility you have in your full year outlook at this point.
Speaker Change: Versus prior years and how much of your growth is predicated on hunting for new clients versus farming of existing clients.
Speaker Change: Sure things none of them.
Speaker Change: Similar to last year.
Speaker Change: You know I think the.
Speaker Change: The size of the pipeline.
Speaker Change: It has improved.
Speaker Change: Has grown.
Speaker Change: No no.
Speaker Change: The conversion to accelerate.
Speaker Change: And whenever that happens.
Speaker Change: We can.
Speaker Change: Better.
Speaker Change: As always you know the guidance is that would be.
Speaker Change: As you know something in the middle which is the most expected outcome and then there are some scenarios.
Andi Owen: Say that Andi Owen.
Andi Owen: Typically at this point the main concern is whatever hub in.
Andi Owen: In the Latin American business and you know.
Andi Owen: If there is any kind of deterioration in any other market and we are not seeing right now.
Andi Owen: The other part of the guidance implies.
Andi Owen: Clearly an acceleration in the U S market.
Andi Owen: For us implies an acceleration in the deals related to diesel.
Andi Owen: The pipeline is very very big there is a lot of small deals, but that we still need to see the conversion in <unk>.
Andi Owen: See like more.
Andi Owen: Our license deals.
Andi Owen: Converting.
Andi Owen: And that's what we're having.
Andi Owen: Part of the of the of the guidance, but in general I would say that'd be should be similar to.
Speaker Change: We have lost.
Andi Owen: One of the year.
Speaker Change: Thank you Jonathan the next question from the line of <unk> <unk>.
Speaker Change: <unk> from Goldman Sachs.
Andi Owen: Okay.
Andi Owen: Okay.
Andi Owen: Zack on for Brian Brian.
Andi Owen: Trotters dig into the the headwinds that recently emerged.
Andi Owen: <unk> Disney.
Andi Owen: Yeah.
<unk>.
Andi Owen: Okay.
Andi Owen: Yes.
Andi Owen: Okay.
Andi Owen: Yeah.
Andi Owen: On.
Andi Owen: The magnitude or the use of equal size.
Andi Owen: I think at this point they are relatively derisked.
Andi Owen: And Disney specifically.
Andi Owen: On pipeline I think that sounds like once you close let's give you the commentary yes.
Andi Owen: I mean, it would cut.
Speaker Change: I got two questions.
Andi Owen: Basically the two things that we will not.
Andi Owen: Thinking back in November it.
Andi Owen: Was.
Andi Owen: The ending up.
Andi Owen: Much stronger than what we initially anticipated.
Andi Owen: Kind of a sequential flat quarter, but grew once again in Q4 relative to Q3.
Andi Owen: And also on a year over year basis.
Andi Owen: Is it 20% in Q4, so there was some acceleration in Q4.
Andi Owen: It is impacting the Q1.
Andi Owen: Now we have so we are assuming no.
Andi Owen: Five.
Andi Owen: Around $5 million to $10 million.
Andi Owen: More like in the five ish kind of impact coming from there and then the rest is mainly coming from from our business in Latam.
Andi Owen: But in general the two things that we saw and what are the expected, but in the case of these new already.
Andi Owen: The outlook for the year, So we believe that business.
Andi Owen: Well as we mentioned in the call you know should end up mid to high single digit at this point.
Andi Owen: In 'twenty five and in the case of Latam.
A lot of political noise in Q4, some of those things are starting to to come but still an open question.
Andi Owen: We need to see how that evolves for the rest of the year.
Andi Owen: Thanks.
Andi Owen: Thank you.
Andi Owen: Our next question comes from the line of Sean Kennedy from Mizuho, Sean. Please go ahead.
Sean Kennedy: Good evening. Thank you for taking my question.
Sean Kennedy: I was wondering about the top five customer cohort cohort ex Disney and what was driving some of the underperformance there and Theyre also seems like there's been a bifurcation between some of the larger customers and smaller customer growth over the past few quarters or are there any underlying trends like since its sensitivity to the macro or are they.
Sean Kennedy: More company specific.
Sean Kennedy: I think those are very clear connection between what is covenant in the two to five and what is happening in our professional services business. When you look at those two.
Sean Kennedy: We have.
Sean Kennedy: Two accounts in the top five which are professional services companies that sector.
Sean Kennedy: Has not been posting a growth throughout this year.
Sean Kennedy: There is a kind of a linearity between those two so it's very much oriented.
Sean Kennedy: Pacific industry.
Sean Kennedy: The second and then you mentioned, but regarding the second part of the question.
Sean Kennedy: When you look at cost.
Sean Kennedy: I'm not sure we're putting the silver.
Sean Kennedy: When we look at top 20 accounts are.
Sean Kennedy: The level of growth.
Sean Kennedy: It's very similar to 11 to the end so Indian what I'm, saying is that it's not just the top 10. So it's not just Disney in there into joining retailers for large customer for us having expanding very nicely in the last few years.
Sean Kennedy: And also in 2024.
Sean Kennedy: And when you look at for example, the number of accounts over $20 million that number went up from 16 last year to 20 this year.
Sean Kennedy: Number of accounts over $10 million up from $34 44 in one year.
Sean Kennedy: Number of accounts over $1 million went up from 211 to 646, so in general you'll see that in.
Sean Kennedy: In all of those groups.
Sean Kennedy: Or where are you being able to have larger customers in general.
Sean Kennedy: And that's basically part of the 100 square strategy. That's part of the focus on high potential accounts that can become multimillion dollar revenues for us and also because those are the companies that require a need the type of services that we provide.
Sean Kennedy: Just to add something to that is that this year. We are reinforcing their 100 claims strategy. This is a we're going to <unk> and we have put in of course in the past that right now we are defining and redefining what the teams within the best talent evidently happened in bonus.
Sean Kennedy: I guess I found the account that are really really strategic for us.
Sean Kennedy: So this is the work we have been doing with all our regions.
Sean Kennedy: We have been working in defining what are those and how the air Canada, where we are going to put a lot of effort in order to of course continues to grow and and and and try to grow.
Sean Kennedy: Even more than what we're growing right now and Atlanta first account.
Also as Luke just on the numbers that I wanted to share with you some when.
Sean Kennedy: When you look at <unk>.
Sean Kennedy: Bob one very strong growth in the quarter growing three 3% as you pointed out the top 10 is impacted by two to five when you. When you go for example to 11 to 20 of the growth was 17%.
Sean Kennedy: There is.
Sean Kennedy: A lot of big accounts that are also performing very very well.
Sean Kennedy: The issue of our hiring in the two to five is very much concentrated in a few names.
Speaker Change: Great I appreciate all the detail you share the best of luck in 2005.
Sean Kennedy: Thank you Sir.
Speaker Change: Thank you Sean. The next question comes from the line of Surinder <unk> from Jefferies.
Speaker Change: Thank you just following up on the prior question you guys have kind of lot of success over the last couple of years in terms of the outperformance were.
Speaker Change: You've won some important clients and those clients really scaled.
Speaker Change: When I think about the growth rate as we look at 25 versus 24 versus 2003.
Speaker Change: Is there some sort of an impact that we should be thinking about as some of these larger project wins from the years past start to scale down it creates headwinds that we should be aware of it just seems theres a bit more volatility in the P&L of the last couple of years towards year end or you are starting to actually call out more clients, where a client may be.
Speaker Change: Darts to wind down or something like that how should we think about that relative to how it's been in the past.
Speaker Change: Maybe if I can throw margin.
Speaker Change: The last three years have been different from the prior year of 15 years right in.
Speaker Change: In the prior 15 years pretty much every industry in every.
Speaker Change: In every region.
Speaker Change: Expanding on pretty much every company will show an expansion then after COVID-19.
Speaker Change: Like there are some companies that are some.
Speaker Change: Industries that have been outperforming other means besides.
Speaker Change: <unk> sorry.
Speaker Change: Travel and hospitality performing very very strongly after COVID-19.
Speaker Change: You have the other side with technology companies and proficient and like the sectors like technology and telecommunications together with professional services underperforming for the last three years now youre seeing a nice recovery in the Fsrus.
Speaker Change: <unk> has been doing well in the last few years. So my point is we now have kind of different behaviors in different industries and also region ripe for example, new markets everything Ross. Okay. You go to Europe. You know you have some areas of our expanding other areas that are known.
Speaker Change: Same happens in the U S. So I think that we're living in a more.
Speaker Change: While volatile market, if you want and sometimes that may have an impact on some of our customers are which are the last I mean, I think that if we look at.
If we look at it from another perspective.
Speaker Change: Our company is very diversified you look at the at the top accounts and you have companies from.
Speaker Change: Media you have banks you have professional services you have trouble.
Speaker Change: On a factory you have retail so yes.
Hubbard: Hubbard well, Germany is really maybe one is even bigger one year. There is a limit as you know, but in general you know.
Speaker Change: Most of those.
Speaker Change: Top accounts I'll be working with us for a long time are multimillion dollar accounts.
Speaker Change: They may go up and down a little bit impact one quarter, but eventually you know those are the type of customers that we want.
Speaker Change: Their needs change and evolve.
Speaker Change: I would say that.
Speaker Change: It's not about thinking.
Speaker Change: Of a single project that never ends.
Speaker Change: Six are constantly turning over.
Speaker Change: And.
Speaker Change: Those those projects are constantly changing also adapt to the.
Speaker Change: Incredible weighing in which new technologies are being adopted and and globe on offering is following up on.
Speaker Change: And in many cases, much where we're way ahead of what's going on so that.
Speaker Change: That relationship is constantly being defeated.
Speaker Change: By our capacity of expanding our offering into new areas in which we for we were not.
Speaker Change: Doing anything so.
Speaker Change: You must think about.
Speaker Change: US as a company that is leveraging them for.
Speaker Change: The relationships, we have with our key customers and trying to shape our offer towards coming onto what those customers are needing so.
Speaker Change: This is the fuel that maintain our capacity of keep on growing those accounts and those relationships.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Thank you for joining us so much.
Speaker Change: The next question comes from the line of <unk> from Scotia from Scotiabank excuse me David. Please go ahead.
Speaker Change: Good afternoon, everyone.
Speaker Change: I wanted to actually bid on to this theme of client discussions that we're having.
Speaker Change: Could you help us understand on the implementation stage, what exactly are you seeing or hearing from the clients. When you speak to them what is going on.
Speaker Change: In their mind and how are they trying to balance the macro economic uncertainty and with that digital advancements that is either some challenges some opportunities that they are facing and how is that benefiting or impacting global and for that matter. Thank you.
Speaker Change: <unk> if I may take this.
Speaker Change: I think that's actually a very good question because it's a major change that <unk> have any for the past couple of years.
One of the things we're noticing is that a.
Speaker Change: The type of demand, we're having tends to be a little bit more inclining to the enterprise cycle services.
This has to do a lot with the operation fulfillment et cetera, and tied a little bit more into the efficiency side of things as opposed to the product and topline.
Speaker Change: Side of things.
Speaker Change: It's also represented when we speak about AI AI.
<unk> being heavily or more heavily adopted on that side.
Speaker Change: Which means our enterprise workflow efficiencies on.
Speaker Change: Many different enterprise functions.
Speaker Change: Uh huh.
Speaker Change: But not that much on the product side of things, which will eventually have a massive impact.
Speaker Change: That type of consumption I think the data.
Speaker Change: Is one of the key aspects that is preventing us from.
Speaker Change:
Speaker Change: Ah realizing <unk> full potential.
Speaker Change:
Speaker Change: As you May know globally.
Speaker Change: It's well known.
Speaker Change: A company that is top notch in.
Speaker Change: Experiences in helping clients connect with our consumers.
Speaker Change: So I think in that still needs to materialize in fact.
Speaker Change: This is not only our perception of what's going on I think.
Speaker Change: Sales force communicate exactly the same elevation for us and it's kind of the pace of the market.
Speaker Change: The way it is today and just to complement that another thing that change and with regards to.
Speaker Change: The predictability budgeting exercises forecasting et cetera is data.
Speaker Change: In the past the market thought in the way Martijn was describing.
Speaker Change: About our products right.
Speaker Change: <unk> needs to be evolves constantly new technologies appear opportunities your competitor as a new feature et cetera et cetera.
Speaker Change: In companies tend to do sort of a run rate type of exercise I need to invest this and this is the T. Mo will be dedicated to I will have dedicated to this product to this line of business et cetera.
The things we have been seeing as well is a tendency to go on a per Monday basis.
Speaker Change: Which again, it's a little bit shorter.
Speaker Change: On trucks and view that get renewed with a newer mandates et cetera.
And Thats sometimes brings.
Speaker Change: Brings a little bit.
Speaker Change: Gaps in uncertainty and this is why there is a little bit more volatility.
Speaker Change: Thank you thank.
Speaker Change: Thank you. Thank you so much.
Speaker Change: The next question comes from the line of Arvin Romani from Piper Sandler Arvind. Please go ahead. Your line is open.
Speaker Change: Hey, Thanks, Thanks for taking my thanks for taking my question.
I guess kind of what are the center phenomena.
Speaker Change: When you when you think about your comment commentary.
Speaker Change: It sounds a lot better than what it was 12 months back but the growth rates.
Speaker Change: And not necessary.
Speaker Change: A lot better than what it was like 12 months ago. So it just feels like.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Targets don't reflect how positive you seem to be able to the overall business.
Speaker Change: I think a couple of things first.
Speaker Change: When you look at the guidance for the year.
Speaker Change: In organic constant currency terms, we are building out pretty much the same number.
Speaker Change: That would even in 'twenty four.
Speaker Change: Yeah.
Speaker Change: Total growth.
Speaker Change: <unk> of 12% in constant currency.
Speaker Change: We believe it is.
Speaker Change: Is that a good number because of what I just mentioned.
Speaker Change: Any number.
Speaker Change: I think that the excitement is about where this company.
Speaker Change: Our industry right now right.
Speaker Change: Within our customers, although different things on the new technologies that are coming how those how we see the opportunity for loan to engage and many of those contracts to sell them transition to these new technologies.
Speaker Change: And also the fact that the.
Speaker Change: The U S.
Speaker Change: <unk> has been expanding its pipeline.
Speaker Change: Yes of course commercial needs to accelerate but when you have variance when you see opportunities there that makes you feel.
Speaker Change: More optimistic of closing that needs to close and eventually that will translate the room of growth, but I think that overall that his excitement whats happening in new markets is very exciting as well of course out of a small base at the size of the opportunity. The type of projects. We are winning we are delivering.
Speaker Change: For example, the massive courses that we finished in.
Speaker Change: With the Clippers, which are very unique experience that every.
Speaker Change: We're still getting all of that a lot of companies a lot of companies are visiting that a lot of similar or potentially similar customers.
Speaker Change: Gauging conversation. So there are good things happening you know all our evolution into neurology is usually good for companies like us.
Speaker Change: And Thats, where the excitement is now the numbers are while they are on they are basically very similar organic tends to 'twenty four I don't know might be.
Speaker Change: No.
Speaker Change: Thank you.
Speaker Change: I haven't heard of that.
Speaker Change: Okay.
Speaker Change: This.
Speaker Change: It's a top notch performance for the industry and.
Speaker Change: There's a lot of shifts that are happening.
Speaker Change: We the when already large company in different types of engagements I think we are delivering.
Speaker Change:
Speaker Change: And given the organic growth in the same level of last year, which was a rare.
Speaker Change: Kurt.
Speaker Change: <unk> taken us to a record.
Speaker Change: <unk>.
Speaker Change: EPS growth and record.
Speaker Change: Revenue growth I think it is.
Speaker Change: It's very.
Speaker Change: It stinks by itself, our our readiness of.
Speaker Change: We are ready for what's coming in the.
Speaker Change: On the industry.
Speaker Change: So that's that's the color I wanted to add.
Speaker Change: And government.
Robin: Thank you Robin Thank you.
Speaker Change: Thank you Erin.
Speaker Change: So that will be all for the Q&A section is today. Thank you all and now I will ask Martin to provide some closing remarks Martin. Please go ahead.
Martin: Thank you so much really looking forward.
Speaker Change: See you next quarter and thank you very much for your coverage of like just.
Martin: Yeah.
Martin: Yeah.
Martin: [music].
Martin: Alright.
Martin: Hey.
Martin: Okay.
Martin: Well, you know Theres a young guy.
Martin: It's beautiful family with this beautiful white and actually just a shining star right now in American politics.
Martin: Marine that trend for Ohio, Senator one guys.
Martin: I think we have around and one of them.
Martin: Munich CAGR in the Trump administration can you. Please let us applaud together that is welcome.
Martin: Great.
JD Bass: President of America JD bass.
Martin: Okay.
Martin: Okay.
Martin: Thank you.
Martin: Okay.
Martin: Yes.
Martin: Yeah.
Martin: Yeah.
Martin: [noise] thanks for doing this.
Martin: Thank you.
Martin: Thank you.
Martin: Yes.
Martin: Okay.
Martin: Yes.
Speaker Change: [noise]. Thank you all thank you it's great to be with you it's good to see.
Speaker Change: I mean, you've been like in a world win here yeah Yeah.
Speaker Change: That lagged or now.
Speaker Change: Yes, I am going to jet lag. So we did a trip where we went to France, and then to Germany and then we would just San Diego for a family wedding and then back in D. C and we did all that in like seven days. So many jet lag that's okay, but I mean I'm in a good place right now I'm going to get some sleep labs. Okay. Go ahead, then we're ready we're ready but.
Speaker Change: Special day today, you know what is today a guy.
Speaker Change: February 20th that means our 31st 30 day, They had me why.
Speaker Change: Right.
Speaker Change: Okay.
Speaker Change: 10 minutes.
Speaker Change: Hi.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: It's very exciting it's hard to believe we have only been in office for a month, because I think we've done more than a month invited ended up for you.
John: John for that.
Speaker Change: Right.
Speaker Change: Yes.
Speaker Change: The president keeps us on a pretty breakneck pace. He always asks what have we done today what are we going to do tomorrow, we're going to do next week because I think he realizes this is a special moment in time.
Speaker Change: And by the way. Thank you. Thanks to all of you for making it possible for us to do all the great work, we've been doing and the administration I know, we would have been here without yet, but I think the president is acutely aware that the American people gave us a window to save the country and Thats exactly what were going to do and thank god for that because it's been a hell of a lot upon the past months okay. So.
I think if we can keep track of all the things you all are doing.
Speaker Change: Thanks, a lot.
Speaker Change: Can you keep track of all they are doing I mean, they talk about the shocking all strategy seriously. So when you're looking at this last factor receptor unless what stands out to you well speak of the person I do think that we've had maybe more executive orders in C&I has viewers. So.
Speaker Change: Hello to our friends at CNN.
Speaker Change: I think I.
Speaker Change: I actually think that their plan was they were going to go all in on anti Trump and hope that he could save CNN and the same whether you did frankly in 2017, because nobody really watch the network until until he became president in 2017, but that's maybe the one thing I think the president has been unable to do unable to save Cnn's rates.
Over the last over the last few months, but look I think that what the president has tried to do is recognize that we have a historical mandate on a few issues we have to secure the southern border and thanks to his actions border crossings are down well over 90% and we're just getting started.
Speaker Change: He recognizes that we have to really unlock the engine of American growth, we've got to get back to having a growing economy that creates good jobs in high wages for the American people and a lot of that goes back to drill baby drill we've done more on an energy under President Trump's leadership, I think any administration in history and that's not.
Speaker Change: <unk> and of course, we will do more and I think the third thing that he's tried to do of course with the help of Elon and all the great folks at dose is asked what are we doing with all of the American taxpayers' money and why are we wasting so much of it on garbage that the American people either aren't aware that we're spending to get on board.
Speaker Change: Don't want to be spending it on in the first quarter like for example.
Speaker Change: The stuff that we've figured out Mercedes is unbelievable why are we spending money on progressive modern art projects centered around toilets, and Afghanistan, that's actually something that your tax dollars for funding until very recently and I think all of us are sitting around and asking what their Halloween is doing with the American People's <unk>.
Speaker Change: For the last four years, let's turn off the spigot and spin the American People's tax money on the American People's priority and Thats of course been a big focus of the administration.
Speaker Change: Let's dig deeper into the immigration issue.
Speaker Change: <unk> and you've met many of the victims people, who have family members who have died.
Speaker Change: Fragile Green tragically murdered the Angel families.
Speaker Change: In the hands of these criminal illegal aliens sure.
What's your message to these families.
Speaker Change: And then what is your message to these horrific drug cartels and human traffickers, who have trade on the most vulnerable in the world well our message to the drug traffickers is get the hell out of our country Youre free ride is over because president Trump is back in the oval office.
Speaker Change: It is.
Speaker Change: [noise] Youre not welcome you were never welcome according to the American people, but Unfortunately, you had president Joe Biden, who allows you to run free over the United States of America, and Donald Trump has said you're terrorist organizations, we're going to go after year wage war on on you and certainly we want you out of the year.
Speaker Change: I'd States of America, and that's an important message of course, but our message.
Speaker Change: This Mercedes our message to the families is president Trump cares about you. He thinks that it's disgraceful what your own government what happened to your children to your grandchildren, and it's got to stop and of course, we mourn with people we pray for people, but we're also asking as their government why did this happen to you.
Speaker Change: Child in the first place and the answer is that under Joe Biden. Your government didn't do its job under Donald Trump. It is thank god for that.
Speaker Change: On the economy and on getting this question all the time, it's just a question of affordability, but there's a lot of stress on our families something that I think Joe Biden could not manage in terms.
Speaker Change: I've really helping lower that cost of living and making things just simply more affordable sure. We talked about energy independence being a critical component of this of ensuring that we unleash this economic prosperity, what more needs to be done yeah. So one of the first interviews I did it was I think six or seven days.
Speaker Change: After the inauguration and somebody asked me well, it's been six days what have you got on the fixed and floating.
Speaker Change: Prices created by Joe Brian provided on Mike well first of all it's been six days, we've done a lot in six days, but it's going to take some time to fix what Joe Biden broke over four years and we know it is it as easy Unfortunately to burn the house down it takes a little bit of time to build it back up and here's here's what we.
Speaker Change: Have to do because look the fundamental goal of our immigration policy of our border policy of Doge saving taxpayer money. The fundamental goal is we want your children and grandchildren to be able to raise a family in security and comfort in the country that we all know that is the whole goal of <unk>.
Speaker Change: Trump's agenda.
Speaker Change: Bye.
Speaker Change: Prosperity REIT it it's pretty common since stuff and we know that to do that we have to first of all unleash American energy now why that's so important because what if we all know grocery prices got too high under Joe Bae and his leadership well one of the main drivers of groceries as energy because of the farmers are paying more for energy then we're all.
Speaker Change: Paying more for what the farmers grow and if the truck drivers who are delivering the groceries are paying more for fuel then we're all paying more for what the truck drivers are delivering to the grocery store. If we unleash American energy that we'll do more than anything to drive down the costs for the American people. The second thing. We're saying is is we have got to stop spending the <unk>.
Speaker Change: <unk> People's money on garbage every dollar every dollar.
Speaker Change: That we've taken and spend you have to pay for either through taxes or through inflation and if we spend the American people's money more wisely, if we stop taxing and spending the American people to death, that's also going to bring relief to all of the pricing pressures that are out there we're going to make it affordable to live in this country.
Speaker Change: Again, that's our mandate, that's our goal and Youre right Theres a lot more that we can do but I think we've got a pretty good start up to 30 days, we've got a pretty good start.
Speaker Change: Got it.
Speaker Change: Beautiful.
Speaker Change: Bill budget recently, how is that.
Speaker Change: Working what are the dynamics that are happening right now in Congress.
Speaker Change: And what the administration is doing to ensure that.
Speaker Change: A lot of.
Speaker Change: The president is wanting to do in terms of really pushing forward with economic prosperity and his tax bill.
Speaker Change: Relief initiatives get done yes, it's really important so the Senate obviously has its own approach and the president has been very clear that his preference is to put everything in one big right and part of that is just simple legislative strategy I think the president has learned a lot about how do you see works and I actually talked to the president about this yesterday.
Speaker Change: He said to me look it's very rare that you can get two reconciliation bills done in one Congress, which is why he thinks that we've got to do all the work with that one big beautiful Buildout first reconciliation package that we can get through the house and the finished it's going well it's early.