Q1 2025 Heidrick & Struggles International Inc Earnings Call
and many more. Thank you. Thank you.
Speaker Change: Thank you and welcome to Heidrick & Struggles 2025 first quarter conference call.
Speaker Change: Participating on the call today, or the company CEO Tom Monahan, and CFO , Nirupam Sinha A company slides are posted on the IR homepage of the company's website, attiterc.com, and you're encouraged
Speaker Change: Please note that in the materials presented today, management they refer to Nan GAAP financial measures, that the company believes provide additional insight into underlying results.
Speaker Change: Reconciliations between these NANDGAP financial measures and the most comparable GAP measures may be found in the earnings press release.
Speaker Change: Also, certain forward-looking statements may be made in management remarks. Please refer to the Safe Harbor Language, also included in today's press release. I will now turn the call over to Tam Monahan.
Tam Monahan: Thank you for the kind introduction. Let me add my welcome and share an outline of the agenda for today's call.
Speaker Change: Today I'll start by touching on our two own results in our strong operating performance.
Speaker Change: I'll reflect quickly on what has become a suddenly-to-multuous operating environment in comments on the threats and opportunities it presents for our business.
Speaker Change: I'll reaffirm our strategy to create unrivaled client value, particularly in times like these, then finally I'll hand the call over to Nirupam to walk us through a closer look at our Q1 results, or go forward guidance, and we'll both be available for Q&A.
Speaker Change: Both our first quarter results and the momentum we are carrying to the second quarter are reflective of the ever-expanding need for organizations to engage and enable world-class leadership talent.
Speaker Change: In short, we delivered strong results in the first quarter of 2025 without performance on the top line and exceeded the high end of our outlook, coupled with robust profitability
Speaker Change: This performance, reinforced by the Q2 guidance which Nirupam will share, reflects the relevance of our strategy, the resilience of our business model, and the ability of our world-class team to create value for and with clients. I want to spend just one moment to reflect on that last point.
Speaker Change: Think about the economic environments our clients expected in 2025 and compare it to what they actually encountered [inaudible]
Speaker Change: Our teams should wear remarkable abilities to stay close to clients and pivot to serve for their rapidly changing needs. Our outcomes are reflection of their professional excellence and deep client focus.
Speaker Change: Train the second topic of my remarks that mix of professional excellence and client focus will be vital to our success in a considerably more complex operating environment.
Speaker Change: Let me spend a minute sharing what we hear in client conversations, how we are responding and how it might shape our performance.
Speaker Change: First, I'll say the obvious, this is not a business that benefits from the status quo [inaudible]
Speaker Change: In simple terms, not a single client meeting in the last 72 years has ended with the following client quote. Things are going perfectly right now, and we are well set up for the future. Let's call Heidrick Heidrick & Struggles International Inc
Speaker Change: Our opportunity to create value springs from the simple client need to drive great business outcomes by getting the right leaders in the right roles working in the right way.
Speaker Change: This need becomes more pronounced, more visible and more urgent during times of economic
Speaker Change: That said, this incredible opportunity for impact can sometimes be balanced by client caution in initiating, proceeding or completing work.
Speaker Change: The net result is the dynamically shared investor day, where although we demonstrate consistent growth across time, individual quarters can show periods of volatility and periods of economic difficulty [inaudible]
Speaker Change: As you can see from our strong results and forecasts, we aren't seeing that dynamic. That said, we can obviously imagine a world where caution creeps into client decision making in the second half of the year looks different than the first half.
Speaker Change: We are staying very close to clients and monitoring activities, tone and outcome really closely right now.
Speaker Change: Our resulting strategy for this environment is quite simple. They close the clients and arm our teams from the tools and resources to drive great client impact.
Speaker Change: We know that in times of uncertainty clients look for help on a different set of issues and we are putting in place tools and resources so that teams rapidly deliver on these needs [inaudible]
Speaker Change: In this category, we're putting in place great resources to help them adapt leadership strategies to changing supply chain networks.
Speaker Change: Link people, strategies for the opportunities and risks of AI and driver resilient performance cultures in times of rapid change
Speaker Change: That said, every client and every client's strategy is unique and it's our job to stay constant touch with them to shape their response and our support for these complex times.
Speaker Change: This client focus is enabled by some really attractive business model attributes that allow us to focus on client outcomes rather than financial engineering.
Speaker Change: These include revenue that is well diversified across geographies industries and solution areas, zero client concentration, a variable cost structure, low capex and zero debt.
Speaker Change: These factors, combined with our incredible people and unique set of assets and capabilities, gives us great confidence in our medium term through cycle targets shared at our investor
Speaker Change: Organic Revenue Growth of Mid-to-High Single Dizzards in Organic Adjusted Evetogroath between 5% and 8% per year.
Speaker Change: This is a great place to transition to one more topic [inaudible]
Speaker Change: Achieving these through-cycle growth targets requires us to relentlessly focus on our long-term strategic priorities.
Speaker Change: Together, these will enable us to create unrivaled value for clients, colleagues and shareholders by creating different deep and durable client relationships. Let me reshare these with you.
Speaker Change: First, we want to be the most trusted leadership partner for the C-suite and Board.
We believe that our focus on leadership talent differentiates us.
Speaker Change: We remain committed to consistently growing our executive search and assessment capabilities, which are the cornerstone of our enterprise. This work not only immediately inflicts client performance, it gives us unmatched access to leaders and their priorities, allowing us to build valuable insights and rich state of sense.
Speaker Change: We believe one of the most important C-suite roles that we help define and support is the Chief People Officer.
Speaker Change: It's a role that has undergone dramatic transformation in the past decade, and CPUs have been at the center of the most challenging issues of our time [inaudible]
Speaker Change: From pandemic response to the hybrid work debate, to the rapidly shifting dialogue about inclusion, to the challenges posed by changing immigration approaches.
Speaker Change: But even as headlines whipsaw their daily agenda, STPO is around the hook for architecting corporate strategies that reflect several of the most important challenges to the C-suite.
Speaker Change: Remaking work to best leverage the interplay of human and digital workers in the age of AI.
Speaker Change: Creating leadership and talent strategies for a world where demographic and mobility had wins create real scarcity in leadership talent. Assuring the performance of leaders and leadership teams in a world where volatility is the norm, to name just a few.
Speaker Change: We've launched deep research and event series to help CPOs balance this complex mandate and help CEOs and boards select and leverage the next generation of key people partners.
Speaker Change: To Help Clients Lead Transformation in the New World of Leadership Tobey Sommer, Marc Riddick,
Speaker Change: As we shared an investor day, relationship, size, and the stickiness correlate strongly with our ability to support clients in multiple ways.
Speaker Change: This isn't some boiler room cross-selling effort. It's leveraging the access and insight of our exceptional consultants to accelerate client performance in new ways.
Speaker Change: We enjoy a substantial tailwind in this work, every leader in every role in every industry as a transformation mandate.
Speaker Change: It might be to leverage AI or enter new markets or drive cost advantage, regardless of the destination. This transformation invariably requires two meters and new ways of leading. [inaudible]
Speaker Change: and creates an opportunity for us to partner with them to drive great outcomes.
Speaker Change: Obviously, the environment right now is leading to a reprioritization of key initiatives with topics like creating a cost-focused culture and rationalizing the corporate portfolio rising in prominence [inaudible]
Speaker Change: In response, we have assembled two kits that help our teams guide clients through this work and allow us to partner with them to accelerate their outcomes.
Speaker Change: We know that we grow larger and more impactful client relationships by linking our work to ambitious client goals, and no matter the environment, clients always have and the clients always need ambitious goals.
Third, we're innovating to create continuous client engagement.
Speaker Change: And working with leading CEOs, boards, and cheap people officers, we continue to see an important theme emerging.
Leadership and Talent Decisions are becoming an always on activity. [inaudible]
Speaker Change: This shouldn't be surprising, as there has been a step function increase in annual port language devoted to the economic importance of talent, culture and succession. And yet, historically, the process for managing this risk has lacked consistency and the rigour.
Speaker Change: We don't expect every company to change how they work overnight, but we also can't imagine a world in which a topic is important as top of the house leadership will be a continued afterthought in ongoing corporate management. And we know that embedding this work at scaling companies will require just the type of at-scale digital tooling that our investments are targeting.
Insum
Speaker Change: What we confront the volatile market, we see enormous opportunities to grow our impact on clients and thereby our business.
Speaker Change: Our fast start to 2025 reflects our teams in bullying to create real value for clients in the face of this complex environment. That said, we know this complexity can slow down client decision making but never eliminates the need to perform at a high level.
Speaker Change: Our roadmap for executing in our strategy of creating differentiated, deep and durable relationships will allow unrivaled value for clients, colleagues, and shareholders. With that, I will now hand the call over to Nirupam to provide a detailed review of our financial performance and outlook.
Nirupam Sinha: Thank you, Tom. In a highly dynamic environment, we delivered strong results in the first quarter of 2025 without performance in the top lines that exceeded the high end of our outlook and robust profitability. The next few minutes, I'll walk through the details for performance along with our Q2 outlook.
Nirupam Sinha: First quarter revenue reached approximately 284 million, marking a 7% increase compared to Q1 2024. Adjusted EBITDA improved 3.3 million to 29.1 million, and adjusted EBITDA margin expanded 50 basis points to 10.3%.
and others. Thank you. Thank you.
Looking more deeply at operating expenses
Sallory & Benefits increased 8.6% from the prior report
Nirupam Sinha: Fixed compensation increased 4.2 million in the first quarter of 2025 due to higher separation, base salaries and payroll taxes, retirement and benefits, and talent acquisition and retention costs, partially offset by decreases in the deferred compensation plan and stock compensation.
Nirupam Sinha: Variable Commentation increased 10.9 million when it's feeding from an increase in consultant productivity.
Nirupam Sinha: As a percentage of net revenue, salaries and benefits for 66.8% vs. 65.8% in the year ago period, excluding a 3.7 million operational reorganization charge, salaries and benefits would have been 65.5%
Nirupam Sinha: Consistent with our prior commentary, on the full year, we continue to expect the normalized run rate to be in the 65% range.
Nirupam Sinha: General administrative expenses of $41.4 million were relatively flat versus the year ago period and include a fair value turnout adjustment, which is excluded from our adjusted results.
Nirupam Sinha: The respect to R&D, as we've described previously, we continue to invest in the future of items. At the core of this investment was IT that powers all our businesses, including search, highly consulting, and our digital product portfolio. R&D's been for the first quarter with 6.4 million or 2.3% of net revenue.
Nirupam Sinha: Now let's turn to each of our businesses for further details [inaudible]
Nirupam Sinha: In the Executive Search, revenue grew 6% to 213 million. Looking at our regional performance, compared to the prior year quarter, we saw revenue increases of 6% in the Americas, 9% in Europe , and 1% in Apex.
Nirupam Sinha: As you know, we have a diversified practice platform with great client engagement. In the first quarter, we saw outperformance by the majority of our practice groups.
Nirupam Sinha: Consultant for Activity Analyze in the first quarter at 2 million, compared to 1.9 million on the same base in the year of the quarter, when we saw increases in confirmations in average revenue per executive search.
Nirupam Sinha: We're also very pleased with executive search, improving its all-dirty strung profitability, with the adjusted even at 52.3 million, and the adjusted even at margin of 24.5%.
and many more. Thank you. Thank you.
Nirupam Sinha: Turning to On The Man Talent, revenue increased 12% to 43 million, marking and continued our performance amid market dynamics.
Nirupam Sinha: We saw increase in volume in both wind and project extensions.
Nirupam Sinha: Underband Town recorded a jeopardy of 0.4 million person that justified a loss of 0.9 million a year ago period. This business addresses an urgent client need, complements our search business and hints us our ability to search clients comprehensively.
Nirupam Sinha: We're continuing to foster innovation in our products and services we pivot and accelerate growth particularly on the interim downside of our on demand business.
Nirupam Sinha: Looking at Heidrick Consulting, we saw first quarter organic revenue increase 7% year-over-year, at 28 million driven by increases in leadership assessment, as we implemented more intense focus on pairing assessments with the Executive Search.
Nirupam Sinha: Adjust the divot to loss with 2.1 million for the quarter. Moving forward, we are focused on growing the business while benefiting from efficiency gains, as through refined and simplified consultants offerings and focus on its core strengths.
Nirupam Sinha: According to the bottom line performance, adjusted net income for the quarter was 14.2 million, we conclude that fair value adjustment relates to the on demand talent business versus 14 million last year.
Nirupam Sinha: 2025, First Order Adjusted Deluted EPS with 67 cents, Consistent with the Heroic Opuric
Nirupam Sinha: Now in turn to the balance sheet. We ended the first quarter in a strong cash position of 325 million, up 72 million from 253 million at the end of March 2024. This balance coupled with our credit facility gives us great strength and flexibility to execute our sheet plan and return capital to our shareholders.
Nirupam Sinha: Moving forward, we expect second quarter revenue to be within a range of 285 million to 305 million.
This compares to $279 million in Q2 of 2024.
Nirupam Sinha: As we discussed previously, the current economic climate can heighten uncertainty [inaudible]
Nirupam Sinha: which made it clients to delay initiating new projects or to temporarily pause ongoing ones. In most cases, the underlying demand does not dissipate, and this client work resumes once there is greater clarity of stability in the macro environment.
Nirupam Sinha: In conclusion, our performance underscores the strength and diversification of our business model, which continues to enable us to deliver the clients across a variety of market environments.
Nirupam Sinha: These results are a testament to dedication and focus for our global teams, remain committed to serving our clients with excellence amid ongoing macroeconomics and uncertainty As you look ahead, remain confident in our ability to navigate the evolving landscape with discipline, will continue to drive long-term value for our shareholders
Nirupam Sinha: With that operator, if you please open the line, Tom and I would be happy to take questions.
Speaker Change: At this time, I would like to remind everyone in order to ask a question, please press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A ruster.
Speaker Change: Your first question comes from the line of Mark Riddick with Zedody & Company. Your line is open.
Hey, good evening .
Hey, Mark!
Speaker Change: So, given all the headlines and what Hibbert wanted to talk a little bit about what we're thinking and given the past disruptions and recessions that Heidrick has gone through, I was wondering if there are any that were.
Speaker Change: specifically, a particularly relevant in assessing how things might downturn here in 2025 and how that could impact the business or put another way to view today's circumstances as being unique or can we draw in any meaningful parallels in the past. [inaudible]
Speaker Change: That's, honestly, some of we talk about internally, like pretty much every other business, there are segments of what we do that slow down during periods of economic distress.
Speaker Change: Yeah, to the good, as you can see from our results and our forecast, we're not seeing them yet. And as the adage goes, if you've seen one economic downturn, you've seen exactly one economic downturn. Just think for a second about the contrast between...
the global financial crisis in the COVID era.
Speaker Change: The first one was sector focused and long, the second broad-based with a fast snapback. So even over the last...
Two decades, the economic uncertainty periods have looked very different.
Speaker Change: We like boom times as much as anyone else.
But our business does have some attributes. [inaudible]
Speaker Change: that allow us to wonder if these storms are better than others and certainly better than the past. First, great economic attribute.
No debt, Little CapEx, and we've added flexibility due to variable cost.
Speaker Change: We have a business mix that is well diversified across region, industry and service line.
Speaker Change: And most importantly, we have a laser-like focus on client value that gives clients the fastest return of any advisory category.
Speaker Change: To earth and memory across all our service lines, our projects don't require years of work or tens of million dollars in cost like let's say a major software implementation or digital rearchitecture [inaudible]
Speaker Change: We keep our eyes very closely on activity levels and client tone.
Speaker Change: Great, and then I was going to talk a little bit about the, it's obviously a good time to have a strong balance sheet and zero debt. I was wondering if you could talk a little bit about your thoughts on use of cash and maybe more broadly, maybe what you're seeing out there in the, as a potential acquisition pipeline, whether much has changed given the headlines that we've seen over the last few months.
Nirupam Sinha: Thanks, Mark, it's Nirupam here. So, you know, it's a quick reminder, we still have our now payments in 2026 from some of our past acquisitions. So, as we think about the cash, we're obviously managing cash to pay those out. And so, cash kind of usage and how we think about cash, certainly that factor will play in.
Nirupam Sinha: Now, as always, we're constantly in tune with you to make the right organic investments into our service lines and we continue to see that as the overall priority [inaudible]
Nirupam Sinha: Now, as we've noticed in the past, in our business, and as people will know, in any professional service business, often, you know, as you think about organic investments or a hiring conversation, that sometimes turns into an acquisition or a liftout, especially as I'm about boutiques or smaller players.
Nirupam Sinha: And so we view that as not a regular business to value those opportunities, to be happy in those dialogues [inaudible]
Nirupam Sinha: and to ensure we're staying ahead of opportunities that can help us
Nirupam Sinha: So that's how we kind of think about M&A at this point in cash issues. So number one, you know, we have her announced pay number two we think organic investments is is is still a priority. And then three, some of those are getting investments turning to acquisitions and that's life of what we do here.
Speaker Change: Okay, and then sort of pivoting a bit in a way on the M&A kind of conversation. Could you share any thoughts as to what you're seeing as far as M&A's being a driver of client demand? We've seen sort of an interesting wave of global M&A activity here today and I was maybe wondering if you could give sort of an update as to what you're seeing or whether it was similar to or met your expectations at the beginning.
to be here. Thanks.
and many more. Thank you. Thank you.
Speaker Change: Look, I think emanate falls right in that category of every client's working on something, right? And...
Speaker Change: M&A scale or tuck-in creates a lot of opportunities for us to engage them around making sure they have the right team or they harmonizing their culture, how do they assess?
Speaker Change: When you combine two companies, who gets what role? So there's a lot of activities that spring out of that. Either at scale or think about, you know, just, you know.
Speaker Change: restructuring a cap table, whatever it is. And it's one of a bunch of things where you look and say, gosh, you know, pretty much anything that if you could. [inaudible]
Speaker Change: You know, look inside the folder where any CEO carries around their MVOs [inaudible]
Tom
Speaker Change: You could look at the five or six things they have absolutely got to get down and they all have the significant implications for leadership.
Speaker Change: because even if they're not doing, integrating M&A, they might be doing a cost out, they might be doing the digital transformation, they might be doing going the other direction on M&A and carving out a business. And every one of them has lots of places for us to bring our expertise to bear to help them be successful.
Great, thank you very much.
Speaker Change: Your next question comes from the line of Kevin Steinke with Barrington Research. Your line is open.
and many more. Thank you. Thank you.
Speaker Change: Okay, thank you. Want to ask about a comment you made in your prepared remarks? Is it related to the Heidrick Consulting? I believe you mentioned simplifying their operations and...
Speaker Change: You know, and maybe how that relates to increasing the profitability of that business as we move forward. I don't know if there's any more color or flavor you could add to that.
Nirupam Sinha: Yeah, I'm happy to take that Kevin, Nirupam, so you don't, a couple of things here, I think one just...
Nirupam Sinha: There were some one-time items in Q1 that impacted you, but including a reorganization charge and so on a quarter to quarter basis there can be a timing issue. So as you think about sort of profitability in that business you can see that it's not a big deal, but it's not a big deal.
Nirupam Sinha: So if you look back to and think about Q1 last year, the business was in a very different spot than it is today and so you can imagine that bonus of crueils were also in a different perspective than they are right now. So assuming the business sustains momentum will hit more normalized comps in the back after the year so that's kind of the first thing to just keep in mind.
Nirupam Sinha: I think second we continue to see improvements in how we perform in that business and I think
Nirupam Sinha: Longer term, we're still very focused on hitting the long-term guidance that we gave back in investor days. So, 11 to 13% for consulting that we share then is still sort of what we expect and we're making progress on that in a steady basis daily.
We are now at the end of the day. We are now at the end of the day.
Okay, great. [inaudible]
Speaker Change: You know, can you just refresh us on organic investments and you mentioned that obviously is a capital allocation priority? I guess, you know, beyond hiring or is there anything you're focused on specifically that, you know, you could update us on? [inaudible]
Speaker Change: I think the good news is our business is pretty straightforward. It's how many great people do we have and how are we making them even more successful? So think of any organic growth investment is going to fit
Speaker Change: First and foremost, adding great people, you're growing them in our system, [inaudible]
Speaker Change: putting great people on the Heidrick platform so they can be more successful. And then investments in obviously some of our digital tools, some of our intellectual property, marketing,
Speaker Change: in development to help everyone get stronger and better and make them yeah. It's an easy business and I made the fourth this past but it's more Jedi nights and better lightsabers right that's kind of we think about growing this business that's what it comes down to. Yeah.
Speaker Change: Okay, great. And what do we think about the current environment we're in?
Speaker Change: I know you were talking about chief people officers as an example, but...
We've seen...
Speaker Change: You know any sort of particular type of search going on or consulting project or
Speaker Change: You know, type of talent being sourced and on-demand talent. Is there been any kind of meaningful change in the, you know, the types of activities that clients are seeking from you across the segment?
and many more. Thank you. Thank you.
Speaker Change: No, the short answer is there's always little peaks and valleys, right? There's stuff that goes on, I think
Speaker Change: If you work sort of see through some of what's going on short-term, there are some longer-term themes that are driving how companies are thinking about their top talent.
Speaker Change: Look, set us at whatever's going on in tariffs, we've been on a long cycle stretching back to Brexit and beyond.
Speaker Change: Where borders matter more indefinitely they had for sort of 20 years before and so people are asking questions like how do I organize at the top of the house? How do I want to think about? How do I want to think about?
Speaker Change: where you're locating work, sometimes shows up as I need new and different supply chain talent, it may show up as new and different finance talent, right? So the theme tends to be the issue that each company actualized differently.
Speaker Change: Similarly, you know, we went through a long, long time of interest rates being really low. And now we're seeing a cycle where interest rates are higher and people, particularly say private equity or any sort of capital allocation. [inaudible]
Speaker Change: Method, or thinking about, okay, what's the sort of talent I need there? Do I need different CEO profiles? Do I need different CEO profiles? How do I think about different skill sets? We highlighted the CPO because every one of these problems, again, from the, you know,
Speaker Change: So what's our expectation for office attendance on Monday all the way up to how to digital workers interface with human workers, lands on their desk so they are absolutely really busy right now and we're trying to partner with them to make them to make them incredibly successful so they can drive value.
Speaker Change: But yeah, I think the thematic, it tends to be more a set of themes that show up and then present differently at different clients in terms of how they decide what to go to work on.
We are now at the end of the video. We are now at the end of the video.
Speaker Change: Alright, well, let's, uh, good color, I appreciate the comments, I will turn it back over.
Thank you.
Speaker Change: Your next question comes from the line of Tobey Sommer with trueist, Your Line is Open.
Thank you very much.
Speaker Change: Good afternoon, this is Tyler Barysha on For Tobey. Can you discuss some of your trends in Europe ? Preventing you off like 9% and leave it up, plus 50% just curious, can you discuss what are some of the drivers of that? And any changes going on post the liberation day with changes in trends in Europe ? Thank you.
Speaker Change: Yeah, happy to start there Tyler. So in general, I mean, I think we've seen
Speaker Change: Across the board, sort of your performance pretty well. There's not one particular sector that's kind of standing out for us. You see it across technology, find services, industrial, consumer. And I think across the board we've seen pretty good performance there.
Speaker Change: Now, how much is that attributed back to Liberation Day exactly? I don't know if I can exactly tell you that. Tom, maybe you can comment on that. But generally, I think it's good performance across the board.
and many others. Thank you. Thank you.
Yeah, I mean...
Speaker Change: First of all, Liberation Day was in this corner. So, you have seen some stimulus activity by a couple of European governments, and that, you know, on balance gives people confidence. You've seen, if you, certain sectors are becoming, you know, getting, coming and focusing, you know, we, you know,
Speaker Change: European Aerospace and Defense, which feels there's been a lot of resourcing heading their way, but I think it's more just, you know, again our business is not unlike all of our clients having a great team. [inaudible]
Speaker Change: In place, it is number one and having that team, you know, working and focus the right way is the second big piece of that. So I think we're just seeing a great, great team building that has gone on over there continuing to pay dividends. Thank you very much.
but I don't use one thing necessarily. [inaudible]
Speaker Change: Got it. Then just to turn this into some of the other segments on the Man County Consulting, can you just talk about maybe profitability expectations for the years? Should we expect them both to be profitable, finish the year profitable?
Thank you.
I think um...
Speaker Change: As I said about consulting a second ago, I think the same would be true for Undemand Talent. I mean, I think we saw Undemand Talent breaking the profitability of this quarter, which we're pleased by.
Speaker Change: But I think for us, you know, it's less of the focus, quarter by quarter, it's more, are we kind of marching towards the guidance that we've given? And I think we feel good about the sense that we've given in sort of marching.
Speaker Change: towards the longer-term profitability goals. So for us, that's how we sort of think about it. With, you know, on-demand talent 79% and consulting at 11 to 13% as we've shared previously.
Speaker Change: Got it, and then this one final one, if you need to discuss any difference in demand trends among different end markets and maybe taking a financial services, if there's any need to call out there. Thank you.
Speaker Change: Could you repeat the question that it got a little lured on this end? Sorry.
Speaker Change: Yes, sir. I'm wondering if you could talk about demand trends in different TN markets and particularly financial services.
We are now at the end of the video. We are now at the end of the video.
I mean, I think we've sort of seen-
Speaker Change: Good demand across. I mean, if I look at us by sector, it's been pretty broad-based this past quarter and we've seen it across financial services.
Speaker Change: Global Technology and Services, Industrial, Consumer, so there's no one real part standing out for us and they find the service has been part of what's performed pretty well globally for us.
Thank you very much.
Thank you. That's all the questions I have.
Speaker Change: I will try the codec over to Tom Monahan for closing remarks
and many more. Thank you. Thank you.
Speaker Change: Thank you, Kevin. We appreciate everyone dialing in today. We look forward to keeping you posted as we move through the year and we know we'll see many of it upcoming investor conferences that are out on the road.
Speaker Change: In the meantime, please don't hesitate to reach out with any questions and hope folks enjoy the evening and have a great, although I'm guessing busy week given what y'all do.
Speaker Change: Babies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.