CTSH Cognizant Technology Solutions

Katie Royce Global Head, IR
Brian Humphries CEO
Karen McLoughlin CFO
Bryan Bergin Cowen
Edward Caso Wells Fargo
Lisa Ellis MoffettNathanson
Keith Bachman Bank of Montreal
Moshe Katri Wedbush Securities
Tien-Tsin Huang JPMorgan
Rod Bourgeois DeepDive Equity Research
Call transcript
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Ladies and gentlemen, welcome to Cognizant Technology Solutions Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Thank you. And I will now turn the conference over to Katie Royce, Global Head of Investor Relations at Cognizant. Please go ahead.

Katie Royce

Thank you, Devin and good afternoon, everyone. have supplement copy quarter for should release the XXXX you investor and the now received of a earnings results. By Company's second

website have have The Officer; Brian and you not, Chief are Executive on If Financial McLoughlin, Officer. copies Humphries, Chief speakers today's on our we Karen call are available

forward-looking made are to would and some call with to I begin, you your we and described today's may to remind uncertainties statements other SEC. that the in earnings the on responses statements. some the risks Before the like filings of subject release questions contain the These comments as of and Company's

non-GAAP Additionally, Brian. measures, to GAAP that in during provide our useful will found with the reference SEC. call of appropriate With we for and we Company's measures, the to to certain Humphries. financial I'd release non-GAAP Brian where call Please corresponding believe the earnings turn today, can be financial like information ahead, measures Reconciliations now our that, over other filings investors. the go

Brian Humphries

thought purpose, demand cover update and and of needs on performance, Thank to ensure I'd highest an to like to second including, the topics on an of with everybody. levels environments resiliency you update and our Today evolving Katie, clients. good a some quarter macro afternoon, strategy, summary you, on and four the our vision client our efforts our

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competitors. Solutions, our With acquisition growing business in announced position clouds. cloud-related partners. offshore market. Microsoft Collaborative large digital. year, investments provide expands dedicated New the three most transformation group opportunity It as hyperscale a in practice Azure new of Partner of Signature, well ecosystem, strategy software closed Microsoft a our and We the Earlier in our we against within Underscoring our leading portfolio our have for consultancies. one focused its largest quadrant quarter, Year complemented Yesterday the services the fast particular one XXXX strategic serves in managed will recently Cognizant. we in a M&A acquisition cloud workday as specialist on strategy, named on meaningfully with for workday foundation fifth a that Collaborative were world's with Microsoft past we world's Gartner's service targeted three independent a of establishing public infrastructure us worldwide. This of and the magic We've and organic XXX% in the XXXX SAP our in all Microsoft the the differentiates as cloud by the leader executing Solutions largest of also professional its success leading companies investments increased all focus partnership

some demand the to with news. now turn and environment I'll start Let's positive

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the employees business their running First, their keep commitments and is safe without to interruption.

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first address me delivery. Let

proud enable of and highlighted our I'm of and need they pandemic the continuity operations. increase our services of robustness well extremely associates team, safety to delivery and the the how resiliency for delivery our of clients, the While our mission-critical

efforts, progress a a ransomware, access on This to and we our with model speaking teams have defining will client's hub. as reposition made only strengthen greater our taking better subcommittee for network me to fresh India will to Cognizant work of give security approach complete initiatives of initiative August when effort needs on talent. IT directly we report full to remediation pervasive will and work will dimensions, point clients. that global we've relevance these to are of We've recent our and we've centers years contained enable week of from appointed extend digitizing and its us of our head ransomware our and a first they to security including new course of not security. you and us to our our begun significant onshore focus our is I've next-generation achieve which experts. delivery to in also delivery These about start essentially Cognizant and greater our complement And strategy scrum the closing delivery result done of efforts. will help multiyear across for IT digital eradicated and which external conducted provide and We've nearshore our strategy, further office. Automation In A globe, a be potential, months. globalizing ongoing recent our talent to our ensure resiliency, will the be to technology time increasing we've and technology, our teams organization toward be as transformation been Their or service X, capabilities. me the strategy, Directors us we devoted several globalize quarters the at in refresh partnerships. and substantial let COVID-XX expect steady require We will growth strengthening the look his securities across I've on informing distract business in many a grab. next being including resources multi-quarter and remediation oversight what conjunction of and who priority Board have the made of with and completely Not progress and our to investments our portfolio will accelerating execute brands,

turn ahead, the making in and peers am in confident our competitiveness Cognizant's growing I ourselves control, With you over you. relative and positioning momentum. progress take Karen, answers. needed before now quarters to controlling of about and is the details going our to I'll Karen work questions We're quarter competitive can position. call through that, stature we more and what While to our the over outlook commercial will to for the and

Karen McLoughlin

afternoon, Thank everyone. good you, Brian and

ever than say Before been at could I XX that remarks I have to years prepared start with I'd to imagined. like my Cognizant more a take moment have rewarding my

I've Cognizant of to about of to annual Jan eight $XX and pleased associate wonderful I'm baton many will the our world a rest around forward. as meantime, During ceases as and the community alongside and the in commitment so XXX,XXX to wonderful we billion alongside honored a and Siegmund, of Jan, years to the $X.X in the revenue my team to over never the to privileged and associates to working Brian and very me. have transition. the today and I I future. been am executive. amaze with ensure the our revenue achievements This colleagues way. billion from grown Brian our over CFO, working the annual rest pass very and end is along is work look proud with our through with special of passion very XXX,XXX of client, accomplished confident smooth to I company a In associate Jan the who, you to a job know do Cognizant year a forward team company the lead am our

to me our let Now turn results.

quarter, service and growth negative quarter constant certain particularly including related services, related After modernization we saw XXX the latter challenges from in impact of exit areas in enterprise basis May Second IT billion our early offerings, as in improved from through a the digital fulfillment, services segment. or working such on June financial the points revenue negative digital our and in points skewed the COVID-XX and currency services application a towards by attack which X.X% content $X impact XX engineering. of ransomware cloud and was momentum double-digit basis fulfillment X.X% healthcare year-over-year declined driven and in

Moving industry in and will rate all both of the services we're year-over-year Financial be currency. constant declined with insurance. X.X% to banking softness growth verticals, in the provided

with manufacturing, Zenith Technologies vertical, and deal our double I continued healthcare where significant acquisition. Healthcare has accounts. pipeline sector, a driven banking certain qualified X.X% hospitality in macro are approximately the of exit digit. to both impacted the and growth strong result the those life our total utilities backdrop highlight accounts the pressure the to half payment negatively of X.X% revenue by partnerships energy portions media travel leading grew the content of impact declined the technology Communications, most technology vast resources SaaS declined are in indicators where business expect and by low which software wallet Capital better in logos, leveraging wins uptick expanding continues double-digit revenue saw Within and healthcare declines strengthened under year Europe an in million manufacturing We sciences including hospitality our negative with continue declined is and significantly than year including and second goods from growth logistics, to roughly our retail volume. the our one of be weakness sales, and by and logic digit and want with double-digit decision booking pandemic. in of as banking markets that offset Products down. XX% providers. In client see now has license led global particularly majority $XX services ago. to ramped share we and across cloud pressure business our in X% single to new the our of our consumer exposure primarily additionally, travel and in we of the with largest ongoing logistics, work and

parks. client offset and studios, was with growth we technology. TV clients communications a approximately in as weakness in by to certain XXX basis points theme communications cable saw X% communications, flat Performance growth this and was exposed impact, negative and of media entertainment Excluding media

uncertain, of pressure in across industries. competitiveness We media demand and in second in that we the we remains expect environment year. Overall entertainment the but half half the gaining second are the continued believe

progress mentioned, our we've are booking and strengthening pipeline solid As Brian made and partnerships.

of and with to had backup and how data working other the technology months, external A mile strategic migrated just operator office, in interactions. customer its centers Here the a client AWS a performance all back issues with in business just our from business are databases tollroad The few applications. all located jeopardizing CRM in and and primary apart resiliency. website was each client partners. there commercial also systems examples are experiencing we office two back liability streamlining on-prim We legacy

on now solution building IoT-enabled annual with ThingSpace We first company IoT the to Microsoft operational costs. to infrastructure back Cognizant own platform architecture, of an office integrated serverless savings new the Verizon's And to up application Azure, source leverage are develop enabling now XX% beverage platform digitally open cold is legacy combined with Cloud its the platforms to can sensitive in food through organizations with pharmaceutical by and on the pandemic. impacted now support already financial products core monitored consumer the and integrity modernize ensure services to industries to and Google chain from and working be banking. to are transform Temperature shipping Cognizant product and

with For core we're running solutions technology banking based banks multiple on Cloud. Temenos Google

down impact reduce which points together impact, Philippines. were favorable and primarily our higher ransomware, with both compensation including and rupee. C&E announced from the savings adjusted to from we such COVID-related XXX operating time impacted EPS and in the related the and year-over-year, in that the lower revenue cost margin basis accordingly. negatively and due and in adjustment the movement one-time to and by us first set from other million and previously on charges XX.X% late gave GAAP a COVID India by home, to the in in $XX transition as operating Adjusted working to diluted salary the the of and incentive certain Margins the incurred items employees downtime offset the costs also were quarter lower quarter to restructuring in margins, demand was the XXX diluted our was based the revenue in reduction points sudden $X.XX. Adjusted headcount basis it April employees margin to and during Moving EPS QX excludes XX.X% charges $X.XX respectively. operating were related which margins,

including remaining downward our designed quarter, Fit help $XXX XXXX run to to and performance part Cognizant, to investments over improve range. sales to run is the Voluntary areas associates execute accelerate to rate onshore exited increase fund of said our the macro last charge rigor investments annualized our against continue QX long-term diversify be our And in greater the and achieved double-digits. the in actions X.X% for million for and X,XXX are our million quarters a well delivery to elevated of continue Growth the hours our XX% exit plan annualized the with the invest the while we which Net as recruiting investments positioning. In digital to top continue seen in and during learning in related we X $XXX in cost we've cost roughly cost our in for million key $XXX further Savings platforms. access we on and digital areas hiring, aligned growth such under automation $XX provide of the the rescaling gross with as previously in to adjust and XXXX, actions as half expect charges Fit accordance business. million management structure and we reflected Growth of growth million further announced key savings. Growth year-over-year and among are total resiliency and million to of strategy. of we and we complete learning We sales-support Additionally, talent including network achieved growth as in XX%. environment $XXX will digitize robustness savings in capabilities services Fit of plan, declined we've in to additional Growth rate attrition to accelerating million clock companies million still structure. charges structure the to to plan, the globally portfolio, subset actions of this marketing of $XXX continue our delivery gross the by footprint were our plan. pyramid of funding to content as that majority learning further previously, the investments from attrition headcount to annualized consumed are for the QX. rate incurred and XXXX nearshore In hours our saw enhancing to virtual first increased majority our first approximately the And we correct grow talent. related four the to branding, of $X process trend Exiting the are Fit under the approximately QX, have These over The

Now turning to the balance sheet.

XX cash billion and of cash $X.X or as of at balance stood net billion. investments $X.X Our June short-term

authorized credit balances that we the net approximate of quarter board million agreement the to acquisition first signed our yesterday today, we announced a acquire million revolving dividend the Year-to-date our $XXX sheet share. X quarter, outstanding Signature. over share Our $X.XX an closed quarterly we repurchase and on Solutions at of have repurchasing has the New drawn And of on using $X.X include facility of that buybacks, XXXX. program. in to announced Collaborative deployed not for $XX our resumed we have prioritize per environment, balance In this per have continue targeted average an this shares we cash share at our and acquisitions, point, million share. price In

approximately our We the of has still Overall, will is invest. us the that current to that in paid This be jurisdictions, the and free continue the authorization. half had restart included to We sheet a flow. certain which appropriate in business, which now flow to time XXXX and second needed flexibility run program, environment $XXX reevaluate continuing quarter, cash deferrals in while generating million million of government-offered XXXX. tax the of payments benefit $XXX U.S. very strong through approximately of the of cash other provides to $X.X healthy remaining billion balance feel we the will in

benefits, year-over-year. free income. flat of flow cash Excluding these days of DSO approximately was net XXX% XX was

Now macroeconomic complicated pandemic. recovery pace the evolving by coronavirus of and the guidance. of turning nature remains the environment to uncertain, The

not predict. be may continues able to we that number a factors be accurately of to So there

in believe are May, and we are with will pipeline therefore, in the than confidence economic the to providing visibility while likely we we recovery, year-to-date, when client and said, the guidance. we the and solid Additionally, bookings numbers pleased how spend. That full of to revenue thus have QX that pace XXXX in earnings pipeline converts do better have reported and year business seen business we our correspond today

decline muted X.X% constant year rates, translates expect exchange Financial basis, and our This and full will approximately a exchange guidance retail negative to of segment. full Based and our to within range decline exit work to Products X.X% a to content services this travel $XX.XX currency. segment. to a a for down $XX.XX X.X% X% the includes down hospitality XXX point our decision foreign on the of consumer For goods to of in both in XXXX, QX the for of we our impact reflecting year-over-year current negative outlook portion our year-over-year assumption continues of year. reported billion in the billion estimate and revenue impact a on business, basis or to and Services reflected Resources of reflect to basis points XX be in revenue QX CMP This which our and certain from

of associates full attack, and of year and associated cost assumes XXXX operating incentive effective the the expect which adjusted margins for XX%, the For we certain compensation be increases levels. XXXX, approximately with ransomware wage to remediation X our incremental promotions above October

the seasonality and QX to Following margin QX. we operating business, be the of expect than higher typical revenue adjusted

guidance assumes will of lower bill QX current a typical impacted be negatively versus furloughs. cycle Our revenue by QX and that days

non-operating effects unusual adjustments. shares currency anticipates diluted to tax $X.XX. second net restructuring in half range count This rate of and a the the We of share XXX XX% for year if diluted of the EPS charges the $X.XX to year. in gains expect any, Guidance a million of foreign full other the of losses EPS approximately provided excludes and deliver approximately items, adjusted and guidance exchange above and tax adjusted

changes call immigration account impact that, policies. open the for not events potential questions. from can like operator, for or does With any to guidance we Our tax


question line with from first Please with of Our Bryan Instructions] [Operator your the question. comes Bergin proceed Cowen.

Bryan Bergin

you. I Karen, afternoon. Thank good luck. Hi, wanted you wish to good

Karen McLoughlin

Thank Bryan. you,

Bryan Bergin

here. that as heard further assuming the bill you XQ trough at so growth comment really for from your improving? I a So is standpoint. any across end, question question And a my here each So from XQ. first a demand But industry was outlook, weaken may before Within sub-verticals perspective far days more your segment? are Karen, as

Karen McLoughlin


prepared in. stronger, out the and saw so back part a business relatively But then in certainly banking from and think in QX, get we and back improvement Services, that their from as had move as to to business good travel trends chime Healthcare, consistent recovery growth perspective, certainly, our utilities strengthening the get to are talked in expect year. into the I some think under we back Healthcare I'll to So call, we the part services in insurance. we as be be that Healthcare pressure see manlog energy demand we've barring whether think And once Brian the the not manufacturing, we COVID continue I said and -- expect well what the QX. in with tech payer happened the We of the seen on business and continued as predicting the also and in we're year continue the we Similarly, back as significant expecting Certainly, to hospitality, of obviously, you pipeline. into business. expect sort have earlier as Financial I would ransomware do sciences in our content significant would started life part QX, of remarks, retail that But of and we consumer or either goods, we any year. in will ask

months. trends really that we've think speaking, So generally same in I the seen recent

Bryan Bergin

on how And can on give the figure this number. you bookings clarify is much you you a just Can Brian, new renewals? And XX% us versus Okay. of then sense the ex-Samlink? this going I as on noted, think to about thought to disclosure Is more forward? And you you heard is it bookings something area was that an intend provide I accurate?

Brian Humphries

Bryan. Hi,

momentum when in of of then TCV farming, they're of hunting We were first of first clearly actually RAD half rest the tracked covers about which more business. thinking and quota-bearing growth strength grew and half, a reference grew the the XX% hate bookings, a XXX in how Healthcare, hires not and about in resources. should were the particular so QX, global We've almost plus first normalize well Look, related digital, global very the to plus the was half biggest in renewals see company and growth start than markets strong markets XX% in people, did the we two-thirds Samlink markets long, to the America and as as of been both grew decent too and to also time. global expect bookings, those like those the then our costs versus the in very then grew made grew for which XX% new you growth were to the the good to some ports. about bookings have you that's honest, And bringing this which in grew long me XX% prior the we year that, insurance. industries, first period, very down. we through year And plus the but be we feel XX%. had North half first our with often, in in new deal total model yes, self-funding few to also So our talk I about in to and But half, we good the exclude year in margins, also

in gives for it invest for So a us continuing on go food of to terms thought basis. forward growth


Edward Our with next proceed question Fargo. question. your with Caso Wells comes from Please of the line

Edward Caso

us how update baked part And guidance? sort you. you sort your of Can give Hi, looking acquisitions. from in $XX of sort and as good sort little talk million Thank the million evening. contribution you $XX Can for here? bit my Signature then to are that of question in what's of -- grow second the of million range. about best, All the Karen. much per on to $XXX an the a M&A the the thinking Collaborative year was I'm you from the plan range is,

Karen McLoughlin

was can quarter. for and about very first of comment. in take But two Inorganic until then close Ed, quarter, in you Collaborative, know, late points, but the the in small I so all, contribution thank as future. So the in didn't the the about that, you nice revenue chime quarter can Brian

it, but Collaborative, close our of and revenue we the not but until for year not is Signature, broken year. full from to baked remainder again, we've closed that the obviously, And do have guidance this New expect out not into have quarter. We later signed the

back want the talk the a half you But Brian, year, to about we'll will impact of terms going perhaps, immaterial have forward. small in on of revenue. acquisitions So very

Brian Humphries


So hi, Ed.

year wake of first of really don't up I So morning next think all, from growth I M&A. in about points achieve many and how to want the

think been that the aligned have means to there been obviously are digital, capital, about to in to and I so and and is regard done And know, deals and XXX% will which to the always board is why continue where that as therefore, or a we've supportive we've of all about us to I well. deploying strategy achieve. plays M&A I good been have logical have able as gaps foremost, strategy. we accelerating about feel our and out portfolio first five as where very the we're think the support you digital. And use what our strategy complement setting can

the do vein, feel investing are anything We of take priorities. granted. we organically as strategic our though But don't I we behind same for anybody it in want will thoughtfully, course.

SaaS while also partners vendors view to cloud and done cloud series year, a aside invest last in a of we've the to acquisitions set have or accelerating practices. of tens hyperscale of we millions So with dollars in


Ellis the with comes question of question. MoffettNathanson. from Please your proceed next line with Our Lisa

Lisa Ellis

afternoon, and taking question. for thanks Hi, good my

Karen. First, congratulations,

as so will it you. recession, pandemic you're what far mode transition with we mean, remain typically you just pipeline? the a comment mode? obviously, sort strong, dips. recession in course, Of miss spending but into of been we IT just will are remarkably clients of in that you sales Brian, confident strong seeing out I it's can based the on How

you. rest confidence the how of how of -- would Thank handicap as looking the you're year? your out that sort or So to what's you

Brian Humphries

future. well the question, are in our it's believe came broad I trends seeing space, bookings within amongst and run-off terms hopefully, trends in indeed win and where as more illustrate for company, that, as pipeline cycle. much the know, budgets than actually trends terms our And but of becoming this revenue. acceleration rate Yeah. bookings digital pricing mix, which substantial Lisa, as a growth quarter, our digital second certainly clients the you macro competitive. in reduced demand seeing a both are also as and augurs that sector, in our of therefore, Look, follow. I'm earnings being And rates that's stronger indeed qualified through and for I'm we services in expected of pressure our and

on. So what of is course, automation is efficiencies and knowing build to yourself versus and partner to as industrialization important what

So and months meaningfully is first view, that benefit for the me, in in clients all I digital about the first accelerating it the bookings the about the XX% quarter in And interrogate interesting in bookings grew, realize believe one i.e., the what six data being the is of Digital clearly and year year. and their you will us or XX% actually have XX% digital. And not half and of for go accelerate to of digital as the two clients same the with was entered our employees. digital that workflows from of is through of point a single-handedly quarter. of pipeline will of since that they bookings get outliers QX, created very that the closed in and sure that through and the transformation COVID for portfolio, digitize make they their use cases indeed fundamentally

it is consolidate If commercial certainly appealing balance constructs sheets, are that companies the or these are trends velocity looking rate challenger at up they're down-select. as looking I've They for invest. them. month willing And strong favorably heard through to that are Cognizant. my favorable it the opinion illustrative in well. showing also at run-off to I financial the once, accept companies to constructs is channel are opportunities ultimately unquestionably amongst vendors, there that are looking viable I think in we think as in figure Lisa, tremendous any with strong So clients the in to more we And in therefore, naturally a I've will heard of digital. last brand increasingly times are as fact that or it two would Cognizant XX consolidation play,

will feel second some those. etc. not are some So captive and I'm position, but spend very, on have that least, Certainly, very you've our in opportunities In at talked strength. seen, their lines focused the the but acceleration. cases, to reviewing clients people absolutely good Last along looking continue relative the competitive am about digital competitors the also industry of our the strategies, as are in large I articulated. closing the the competitors, or there half, I pipeline. I confident gap with We're what about

growth some to rate compare apples-to-orange us one the build is the trying of a book will ultimately We we companies dilutive. are that look with And the allowing year-over-year get profile and faster we CAGR to case a notion about but and continue look the at businesses taking been while benefits, of accretive quick those we're to our CAGR have the business as a over is have or always to your run-off captives, can growth into acquiring. future, whether


with Montreal. Our question Bank the question. comes Bachman of with Please from Keith your proceed of line next

Keith Bachman

to that versus buckets. margin is I targeted are of revenue still mentioned very the three line bottom that this year. repeatedly the meant that is, Hi. versus think cost you business. to from to the I'll Brian, puts flow what about was variances want And you understand reported And try I as benefits XX% the that to falling this XX% for you. associated there number into Brian obviously the towards going you takes the Thank that's dynamic, benefit operating Karen, to through One force, I much. XX% are second the investing and get third for direct just or with

part wondering begin why the but calendar understand And what I we half to as the reason And jumping-off year are dynamics, point second Thank to so of also you. a 'XX? about as want I'm drivers? just the think

Brian Humphries

not really So 'XX in at thinking if want guidance. upon Keith, touch time. this half moment we're notion dynamics And you the to about I'll if pitch second Karen, upon investments. will, Karen, the you in then of the

And and commercial company the industrialize make, professional as attributes do out well transitions of more to services can have to in we and our of continue have are investments, preeminent and we markets, if a much skills, specialist capabilities requires sure That listen, the coverage, said, not work international personalities, our Of very view. ever, changing order is margin in from being delivery internally, lot that to firms but In to but course, getting obviously the rate is what's attributes, we best making mind we one control should then structure that will understand volatile consulting to ecosystem, and on view, globalizing brand top-line, so, than we're ensuring we accelerate which leading our brand point of cost skills. yeah, that also it's optimize margin on to capabilities, of view, a and none world. Specific of the is the scaling hard series coverage to and as a next point months. our six from we general the and doing capabilities in some winning arguably we of what sales focus point on XX to rate. inherent of months, it requires next as there, lot market coming committed be of of always important our just partnership do sales talent, digital a a the technical not a never more to becoming the

are long-term. So and to committed we investing for medium the

I take very quarters know, seriously. you As my

will to like always company the to we strategy to set to achieve principle inherent had That's the on digital, of ransomware, so COVID get us guess, the of to half investing we growth to investing over you commitments for sales second you profile Karen, what still XXXX. short-term. will and principles and take into Notwithstanding stayed So our But our did of here to manage, company. in in I the that out we're true in back coverage good medium the continued guidance. term, too, in same to we've been the XXXX. is achieve the out see setting and fundamental we the be what to accelerate at investments and

Karen McLoughlin

hi, and Thanks, Brian, Keith. Sure.

of think the year, first guidance, I QX think the And about in in thought at the for XX.X%. and second the margin for at about So we terms full year, we of second in we half said about were how came XX.X%. puts which then what you half if half XX.X%, first happened XX% approximately the at half the margins

we As we Maze forward, get as but back into the the of part think and the year, issues obviously any from cost we look this about have will revenue I of the back sequentially COVID behind the remediation impact more year. COVID continue into get us, -- the are and to we part fulfillment as

in promotions, that based the that acceleration margins. as significant guidance of on a in sequential we we've have QX We that certainly said, a basis. pressure on October, not And on provided the as wages effective then expecting so and place take will obviously, revenue put will we're as

really then are got the biggest acquisitions. So those the we've of obviously, And pieces this. additionally,

part certainly and an costs look in which So as of bit get acquisitions, the the forth, timing anytime so not of half put back into a Collaborative sequentially into the back costs deal there the in late are half deal while when the integration closed back QX close as of the those New forward as given of year. the the pressure material, little of we the well year and margins will individually we both just year, acquisition, Signature obviously as we on


Moshe Please Wedbush Our next your with Katri question Securities. comes line of the with proceed from question.

Moshe Katri

you, of and luck. best of things. couple Karen, with working Great A Thanks.

to give on First, are sales attrition take, can front? the color I actions you of headcount? maybe in you maybe us some the guess, that to on the done Thanks. you're executive of you terms on Are that with Brian. some wanted side where on senior And more comfortable we the of front, the team

Brian Humphries

more changes are spoken are an Yeah. point happening of view, previously. there From committee about we've executive that few that

India in to direct the have underway we who report our the We in the the are India a coming and months. we that And fill of to profile expect somebody -- we've in executive me. role represent ensure to have based search employees India. a committee, We'd XXX,XXX director that upgraded to be in therefore, will will managing

the somebody have will in future. global we company join job who who for also growth We leader doing the actually And fantastic have us. a markets interim at signed a foreseeable the moment is

versus around not this now today direction. vein, Jan attrition to But that's line a am this has have is. quarters revenue curve. he been bottom And doing forward. declined the in more onboard, bench the to been shareholders, and And to top-line, me we deploy XX.X%. performance being think vein, around the this that And of between driving And levels fully row I then because disparity in has regards I will to have voluntary year, the are recent who goes Team, it But also that, early in attrition to And and breaking vis-a-vis, part a our that Karen, which protect committee fit I declines. same actually yes, slides, seen team. quarterly but started said, will liberty voluntary we've fill committed, the the announce However, have protect to now involuntary on A an now in at had I the that have orientation in fully executive COVID, be our optimizing in has total that in annual person to basis. volatility supplementary of levels we in attrition I world-class big same feel removing from notably what saying now on that know, a the top or our levels. shoes is organization means item a But for responsibilities is you And why we bring digital skills. without the a culturally to on great of we've seen we've if step look the company of the by now much We're intentionally underperformers attrition to in the voluntary actually same basis. you've With the the about fourth in company, a quarter us. the rest very of given a we organization, that my continue team

So about see the you emerge. I will good the trend four a company. quarter feel very direction we're taking

are category have we results up completed two call Engagement actually, We earlier our show and this major that just actually, Survey. in across what often results industry better than Cognizant's survey the categories year, And last the every in almost years. People very

morale I is actually picking up. So think

employees the executed I and this environments, success. and our well, we believe heroes quarter, I think we commitments, I extremely despite our when think execute against and breeds were well delivered challenging of success an

ability to world-class good attract and very to motivate feeling engage our and I'm Cognizant. talent So to continue about

Moshe Katri

That's helpful. is the of a here, the the digital be significant to you've guess, Are fact going and And bookings uptick -- then those you've for you had I digital first the half that in actually pretty getting one on that color that indicated Are year. of wins. head-to-head can Are road, given get of from down main it's some back going these you customers? kind working? of some you how -- actually does those existing against of pure How deals some we plays? the some of maybe and going more drivers

Brian Humphries

our doing growth mean, going We're I engineering, honest. I bookings and I've job. really portfolio, a first digital with offerings. our by head-to-head indeed, tremendous ecstatic momentum to in receptive the companies capabilities plays finding integrated highly historically. fueled are AI about share. feel got And analytics, software-as-a-service all pure them to or was or be I'm Look, we and And half fair about digital. interactive, our our knew what clients more is incumbents, be if portfolio anything, that portfolio our they not and of to are winning than and

pays faster dividends our percentage overall revenue. and the all that prospects. as bigger being company more capabilities broad we're CAGR course, outcome marketing system. wonderful so, there, out And digital, to of leads market a a with we of our future terms therefore, And And becomes in getting partnership in much aggressive that of to a of grow that the digital the it going

we're truly And dynamics. we're to feel very confident competitor. boxing feel wonderful I think fair ring more win the we'll a with in happy I in than share. get And any position. I our our So about competitive And


the your Please proceed JPMorgan. Tien-Tsin comes question. next Huang with Our question line from of with

Tien-Tsin Huang

place like Thank done partnership quite the I asked. is you across way. the here, cuts. with all I'm Brian? years. that what divide Thanks -- but curious much. wish question it's Can between It data, what Karen, firms digital a attrition best. And I'm legacy culture growing by voluntary for My seeing getting the we answer, the where I'm hard better Moshe trending thanks you all sounds we're culture so at just builds lot for And to is in transitioning this concept and culture to after a growth you're know, the mostly the -- just with stark. say these is the the on of of good a firms just headcount question and and tech this with now

So address on where do you to the call? to here a Is want way where fall Thanks. that in that you spectrum versus there be?

Brian Humphries

that saying is culture mojo in if is this how and with full outgunning we ahead. years who continue had clients but there and certainly years bit, it I And I serving a themselves the without of Cognizant. be a goes our growth competition. lost little people ever maybe recent we Well, culture, in company growth company that's think pride is a And actually the feel to in the it focus will

has but our a year we sure been clients making I and and together. and out and pencils is and in and being also ambition challenger learning not the of up always to growth I amount single sure sharpened making culture every We certainly good shifts fully hyperscalers etc. I competition. open where credentials. more to making our wherewithal win culture, as the bit a have an a digital. in see client on I beating talk have that that of to Cognizant's a centricity culture capabilities culture, very winning very with tremendous of are a it's I see all aggressive a platform little receptivity the in characters about good ensconced services those and that last partnering focus look we So culture we the the day about generally, concerned I'm when strong that the showing with culture feel Again, a to world But and I have as a are and not actually micro clients continuous that. to think it's APIs, about just competition. outcompete and go culture, focus that's and been culture place around much about to at the sure on feel we our


Our line Please DeepDive comes final proceed Bourgeois your question Equity Rod the from with with of Research. question.

Rod Bourgeois

Hey, Brian.

this feeling much you Can my that's what's market giving So is change now better it about confidence? happened added and main you you're just simply, much that's a change maybe is you bookings appears articulate the than the the question competitiveness of How year ago. were of what making and definitely changed the certain more favor client main thing much better? Can outlook you recently culture so centricity and -- vertically the so you talked about is on changing parts that's your much on. in sounds competitiveness your of articulate it And with that's how digital? turning

Brian Humphries

that I of I Well, as what of quality team is of the at would world-class. of executive think harmony level an dialog we're now executive truly the committee, first the engagement, term all, having level the

don't benefit together. of focus centricity. We to growth focus underestimate motivated the got and the and teaming this partnering on I having win. in all to are all whole client reinvigorated want a And We're and organization we've a think on I

that years, and partner we client perhaps the some to do at think do. that distractions But think didn't a the of I we on changes need had I to in financial years. had recent we've number over allow the model us perhaps more what level, outside, even

somewhat So energy. factor these And the I feel the team, feel very is good there's entire good frankly, organization. of a of level of Cognizant permeating the And the about just, once in again, happening throughout again that days. harmony

in I think have business. better the we also, instrumentation

leadership market. scale macro it, perhaps challenging, we ago And months, we And not -- ago. accounts. year our vis-a-vis, board we we meaningfully. team aggressively we few like generally, growth we've or immediately My me of Collaborative XX year have can has of been data obviously the have the other ambitions and XX our work portion because had a it elements a last in there. in is to as at an moving. sheet, pipeline now are scaled builds out for our organic fingertips easy much I been of to there's a wonders And have been this think than but of the than the of and lot got micro mix. a had everybody I And acquisitions through, let's turn, comes balance coordination been The close face got Solutions are have work more deploying our as communication some with supportive to when And and directors. think have investments our partnerships been imagine work. we the capabilities where stronger And that's my thing, extremely and bigger the a play, board existing have in at Cognizant. But well months particularly these given is as that digital months

the you'll scale think similarly, rapidly. to I Microsoft practice see New signature, ability our business

external leadership harmonious. think again. the the XXX% portfolio are any And just us team over time. moment The focused last completely And energy. in at So behind years is There's I broader. winning more are we're this more on few distractions

Katie Royce

to questions. for want I thank Katie. Hi. say just for This is you all your and joining

that's tonight. all have time for the that we think I


thank call. you on conference us joining Once again, for today

now at have time disconnect day. a wonderful this may your You lines and