Docoh
Loading...

CTSH Cognizant Technology Solutions

Participants
Brian Humphries Chief Executive Officer
Jan Siegmund Chief Financial Officer
Tyler Scott Vice President of Investor Relations
Tien Tsin Huang JP Morgan
Keith Bachman Bank of Montreal
Rod Bourgeois DeepDive Equity Research
Lisa Ellis MoffettNathanson
Bryan Bergin Cowen
James Faucette Morgan Stanley
Moshe Katri Wedbush Securities
Ashwin Shirvaikar Citi
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Ladies and gentlemen, welcome to the Cognizant Technology Solutions Third Quarter 2021 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. [Operator Instruction]. Thank you. to conference like to now would turn over this Mr. I Relations. Vice President Scott, of Tyler Investor Please ahead, go sir.

begin may You your presentation.

Tyler Scott

release copy Thank everyone. you, Quarter the of a Company's By afternoon, investor earnings of now, you XXXX for Operator. should have Third And the and the good supplement results. received

and are on today's Humphries, Brian call website, have Jan Chief The Officer. cognizant.com. Officer, Financial Siegmund, you If available speakers not, are Chief copies our we on Executive have

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

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

Brian Humphries

everyone. growth delivering in well constant the third up year-over-year We Good the third growth, in a quarter, Bookings currency. Thank Tyler. year-over-year or you, accelerated indicator, revenue XX% to afternoon, billion $X.X in of executed XX.X% XX% key leading quarter.

labor of a underscores I'm hiring client trailing we ratio expansion our with their key in around progress also offset against initiatives. with operating basis a cost in market. We the commercial for third the and margin book-to-bill elsewhere. I'm times delivered despite quarter solid our XX-month pleased strategic resourcefulness revenue our commitments our grateful discipline adjusted teams world Our as increased cost challenging the of X.X momentum. our to meeting sequential

XX% digital For revenue example, XX% mix. grew our overall year-over-year. revenue represents quarter Digital third of

clients top-line both progression, our Cognizant increases nonetheless the in digital a expansion. is in non-digital outcome. growth momentum percentage C-suite their Moreover, future to mix serve for expect our periods, intimacy grow this Better-than-expected of we digital but and transformations. We engagement positioning impacted our margin welcome business as in

strong firm, practice, solutions. the our our saw in Cognizant differentiated We position continued announced offerings quarter, reflecting we business natives, our leadership operations momentum for digital recently top-line intelligence in in enable a our and results. simpler During time automation intelligent process digital clients third scale. Neuro, way BPaaS effective and more as strength healthcare, speed recognized exciting recently development an to of analyst a Neuro achieve for automation Everest the to potential and to Cognizant Group, industry full leading at process automation

across had to continue in partner. engineering Momentum transformation digital growth. alliances beginning X.X% care. a we're premier costs continued, be our constant-currency channels and lead they remain in and segments. reduce products growth in demand manufacturing, an we -pandemic in as Financial currency to ongoing recovered help growth utilities, and technology, excellent payers look to goods, and and and consumer delivering and have to technology. Within and healthcare, media, as levels. sciences currency in to year-over-year deliver while life cloud strengthened providers to and deals, with of capability posted line as communications, recovery for digital demand logistics, leveraging see to resources, resources year-over-year strong in constant retail, well In win We double-digit across continued to which uptick services operating In Moving pre travel across hospitality, growth to with new technologies we achieving products we X.X% solid energy, in constant communications, in continued, media, expectations. our our transformation quarter, strong, and another industry with

in the underway and the with help of We're footprint double-digit of like doing continued expanding products, of on looking with Parkland we're Parkland adding platforms. a also growth launch saw work real-time the to deadlines. populations meet members new Health meet medically business needs was Community transformation products healthcare of connected our proud in provide digital Texas. our our access, well growing better to partnership in Our compliance market and our the secure, clients Plan. our underserved solutions clients data We're ways including growth We're QX. its for in interoperability

hospitals, management, and network BPaaS better enhancing claims a a TriZetto delivered claims, single As and and coordination delivery Administration of provider health is services, quality member insurance and care a processing, our Core member on services, QNXT of managers transactions, thereby in care model member physicians platform, enabling platform, experiences.

with is business for enhanced and client the pleased in modernize to our we've strategic progress future healthcare, business as hugely healthcare need healthcare growth address accelerating a including optimistic companies I'm I'm prospects asset. care the their solutions. in virtual made Our experiences,

I Cognizant's Clients customer macro bullish automation and both cloud. in remain environment data Let's investment the models momentum their operating to including their improve turn ambitions. digital employee to and modernize experiences, in and through growing Strategy, on operations demand accelerate to digital now and Digital. continue our their

development with tax our and drives Cognizant operations employees. of revenue companies integrated And launched marketing shift Corporation, their strategic automation next world, in We create constant-currency prospects result cloud-based enhanced personalized for operations. enable international that the as Intelligent we months. infrastructure CRN, talents, to accelerate client our Kingdom. leader of them a the Sanofi solidly operation being can and first across mergers its to revenue Quarter, operating customers deployed to to strengthening grew help years has professionals as the the Good for provide engaged brand, Data new teams facilitate providing bookings partnerships, clients all and also optimistic Her implementing And and an the partner channels, few while service invest that digital their technology recently digital broad authority, United Majesties part model. is technology model. have case during international us with in in made few that Cabot another with services. of materials, application as and SPAC, investing and Cognizant its our actions. enabling in more customer application broaden growth Europe suggest most Pega and support Pega deploy a aim now to from value enabling XX% solution digital the and we to markets on chemicals and While the to highlight the across market applications. government's foundation model; content, growth who expertise as initiatives, Global over of serve Cognizant global in eight the management maintenance, operating an customer Platform selected and remain transformation, to for And revenue in operational digital hyperscalers transform customs, to our will past agile partners. their engagement Gaining development just is experience and Biopharma priority. We'll billion be and Cabot will strategic and Third we're acquisitions digital rest providing UK workflows. and engage leader is and healthcare best key have fully-digital performance customer-facing the stages omnichannel both one XX and a specialty well example modernizing global a few relationships our This portfolio, $X is approximately the technology firms in their

for Moving acute. to industry ore competition multiple imbalance particularly on The now demand-supply intensifying industries. the remains talent across our in

annualized basis, on an quarter attrition voluntary basis. XX-month trailing or XX% reached Third on a XX%

by entire including effectiveness BPO. XX,XXX we the which a reminder, As speaks QX trainees attrition, work Despite Company, our our services when headcount the sequentially, to across net tremendous measure we IT we in corporate and count recruitment attrition, increased team. and of elevated over and

the in on Retention made attention. in on Given accelerating India we recruitment addressing pyramid. expect XX,XXX our and XXXX. for hiring offers graduates make we've progress quarter, to pressure leadership’s and our focus In our years have in to India, recent on-boarding new fourth full meaningful

energy belonging to We that associates range support our our to leadership point evolved roles this and the path are include: our comprehensive to and open India, annual initiatives easily development to of and committed Cognizant's engagement a this our so our has renewable approach board, associates. achieve initial net sustained XXXX. by our to job XXXX. Company-wide, zero goal where through promotions, energy quarter an increase gas more issue of inclusion career the from abundant broadly, a we new We meeting continuing programs, zero first our And and Building explore our achieve commitment to training set sources increases associates earlier ongoing emissions across energy. can on for renewable announced year, and program reports efficiency. greenhouse society week this pursuit out reduce and continuing in success growth Company on since plan Last communication to commitment net special our to we our come investments in a To published with shows ESG emissions and which agenda

We technologies new officers will also be across data globally. centers our efficient in investing energy and

We're and details while for to quarter, that, talent, commitments Jan Jan, addition, on November take financial Cognizant I questions. their help stayed you on our over the In the a In turn momentum. client against focus and discussing cover all-growing to at your unprecedented bullish clients of third extend goals. faces to to our competition of closing, sustainability on investor an we number will quarter our employees meet Cognizant's briefing. during look XXth IoT I the the repositioning. will forward before attracted and industry strategic Cloud future our Jan in our call and the expertise record commercial industry we you. over outlook will and with AI an and we the who to With delivering

Jan Siegmund

And afternoon, Brian. you, Thank good everyone.

revenue which approximately XX% at revenue XX% $X.X of XX% represented total led XX% by representing quarter. -currency. growth Our or QX was digital, was growth for grew and the of Revenue billion constant

Brian acquisitions. digital from Year-over-year also As operations our points earlier, strongly. includes recent growth XXX is basis of area practice approximately business growth growing mentioned our

be results, rates services will provided where currency. increased expectations. with revenue on Moving to our X% segment constant approximately growth Financial line in year-over-year in all

in to pipeline. seen recent reposition and We make we continue steady progress bookings this as improvement and business have

in both growth solutions to Healthcare our XX%, We business for this by year. our primarily for our the life Revenue healthcare integrated strong sciences driven and modest for software performance segment increased within Healthcare organic, growth revenue remains and strong. approximately was full demand businesses. again, expect continue

points sciences, where approximately XX% Revenue our basis very remain and led approximately growth and drive We growth utilities. impact acquisitions. our of demand year-over-year, year-over-year, by across Segment travel led of the America which for constant-currency, outside also logistics, by pandemic life digital life which completed Retail and healthcare, technology. Organic Technology grow revenue. grew double-digit geographic grew with also driven sciences grew growth basis as the work XXX double-digits in segments. continued clients from benefit in XX% with utilities, manufacturing, XXX in also manufacturing, with U.K. revenue energy, in the logistics, recovery of pleased in Products approximately grew attributable experiencing by business, and year-over-year. hospitality quarter From driven the goods, approximately America increased perspective, business, consumer XXXX. growth has sixth North North the year-over-year to to was North approximately Technology organically consecutive energy sectors resources a revenue demand by of and Growth and core native our was and included XX%, grew points [indiscernible] and our recently included the portfolio. from also in of services of Media, they growth inorganic recent digital Communications, XX% double-digits from both acquisitions America

also driven in Germany respectively. mobility We impact. Serbian, completed experience of acquisitions strong and Recently and ESG, Australia growth

margin XX.X%, resolve GAAP securities was On which basis moving XXXX action declined on operating adjusted XX.X%. the year-over-year was margin adjusted if Adjusted operating basis, and lawsuit. disclosed approved QX, from legal margin the margins. excludes approximately our the court, previously points. to Now, In a operating impact operating we'll XX settlement, class the by margin

recruiting, Continued in and attrition other costs. delivery higher elevated subcontractor resulted

and Additionally, our XXXX. savings infrastructure. modernize impacted our drive our invest recently cost completed and and partially XXXX margin, and IT initiatives to and acquisitions offset revenue core headwinds growth we our were securities in support from These to by in SG&A negatively continue organic

end rate of tax was and XX% guidance. EPS XX.X% the Diluted $X.XX GAAP and high towards was our adjusted adjusted was rate tax full-year diluted Our $X.XX. was EPS the in quarter our GAAP

flow net free over income investments turning billion, representing -- in XX% or of the of line cash increased future. of by cash We Free this $XXX period. cash the $X.X our income. of remains million, of cash it sequentially, is approximately with DSO ended quarter Now, and on to a $X.X billion. expectations. balance flow and billion net flat with focused the net the for Year-to-date, XXX% with one cash flow free days represents lever and XX was of sheet. keenly in is metric year of $X.X as day short-term QX Management prior conversion in key

have quarter, framework. in X.X regular previously During and $XXX the line through shareholders share million to returned $X repurchase over share dividend. we with for program billion through returned shares $XXX repurchased to capital Year-to-date, under and dividends million we our our allocation shareholders million disclosed repurchases our

on to spend quarter, spend acquisitions, During $XX we million. year-to-date the on also of cash $XXX over the million acquisitions bringing

expect $X.XX to we range growth XX.X%, XX.X% or currency. constant year-over-year in XX.X% revenue the representing of for Turning billion QX, to billion $X.XX in XX.X% to of to guidance,

Our points favorable guidance a XXX points. XX and inorganic of have impact, currency assumes will approximately basis basis contribution

As XXXX approximately midpoint billion, the impacted With currency. QX benefit year-over-year a growth of At full-year $XXX by points. QX, X.X% revenue of compared constant charge basis we're million towards contract expect high-end expected our XXX revenue our XX.X% reminder, prior guiding proposed or $XX.X QX services is related growth XXXX financial of outlook, was which we to by exit, to full-year the revenue our guidance. the growth, in negatively that, representing

basis will points inorganic from impact, includes have Our revenue. contribution points outlook and favorable currency XXX basis XXX assumes a

guidance assumes products the momentum year. growth a in also and financial and modest services healthcare, full Our across and CMT, resources, for continued

Moving on to margins.

Our at operating outlook is approximately full-year margin adjusted unchanged XX.X%.

areas, to As increased leading wages and I in mentioned including costs earlier, for in certain higher subcontractor elevated hires. is lateral costs, addition recruiting attrition to

through promotions in increased continue training. people billable rolling associates quarterly for We to also our invest significantly and compensation,

margin moderate This merit sequential of pace impact $X.X adjusted a our operating for reminder, decline guidance, QX. SG the $X compared offset of in associates our & partially the to and full-year effective these to X. a will To leads we annual increase QX is which majority As previously. to our This October from EPS margin continue our is spends. non-strategic $X.XX to the headwinds, to $X.X adjusted A implies

$XX Our million million approximately previously. assumes of income full-year outlook million XX $XX interest compared to to

Both a XX% of from approximately XX Our unchanged million, X tax outlook. average share rate shares outlook and of count assumes our outstanding prior are million, and rate tax to XX%.

open Finally, the your we XXX% free expect represent continue will With to cash approximately we questions. year. full flow of call for net will for that, the income

Operator

Thank you.

We will be follow-up. interest we and One we one yourself of Instructions] question-and-answer to questions. the poll you a ask for that one question limit while now time, conducting [Operator In session. moment

Morgan. Our Tsin first question the from - of comes JP Tien with Huang line

You may proceed with your question.

Tien Tsin Huang

was much. signaled Thank this this had to step-up quarter pretty that to attrition actually and gross in so ask margin, the to fourth the what despite you attrition quarter us. I lines margin you on think want here, and into going about gross the healthy

ahead, increases? gross and able think pass Thank kind are there looking look execution and along you you. delivery seen to you margin about Have should of that any we issues specifically attrition price So thing? with what

Brian Humphries

when Hi, Look, Tsin. first elevated it It's would Tien possibly directly remain of is And elevated. the - attrition maybe into all, going quarter, Brian. this. after you're Jan I'll

quarter remain it fourth the elevated. into going expect We will also

more year, to expect look and of do resignations naturally that from in we more an attrition Clearly is apply course you hopefully we the going a line a the while as daily is such basis. the attrition when of in some rate are what's high, the low basis, think on, standard on definitions, in However, we at to headline XX-month industry shown the rate expect we [indiscernible] declines as think we point view. but we industry modest number of twenties. with We understand what attrition the healthy, in

to effort has compensation well compensation tremendous a hearts and and we less impact I as both about amount this, that as address margin As minds spent an to of think does. of on hearts minds try

minds, think we has serious what made year. this have to to internal about of really development. meaningfully get promoted processes actually a processes adjustments the our readily We've pyramid our intake in making -- training we and a or and So to when can fresher also have facilitate ability hearts bottom that. place pyramid at for few and people XX and that discussions, thinking embraced we we're career And GenC after belonging, of and celebrating good also or sense is that promotion internally a about so of more just path success, the years capabilities XXXX newness, and and between increased sure slower call helping we've

prepared in add As we offers. said remarks, our we'll XX,XXX

areas attrition to is I an about The an for from the have however, the in we bottom to pretty facing on implications, of through as we're attrition skills On as in reality pass the margin continue previously, talent. is pricing we competition same see pyramid. doing will we're what So name good well I told. feel as that we Jan. And point-of-view. and industry unprecedented I

Jan Siegmund

overall helping lot outs, effects revenue revenues our like, start we obviously, to in the in onto which margin year. of the of digital and situation. is has third had increased was COVID of and impact gross relatively example, and ins margin. a acceleration year-over-year the observed of clearly, gross a modest also the out consistent growth lot the And I'll for we been Maybe our And a prior positive thing. of because of But helping quarter, a compensation compare with shift us, factor in and

implemented our we're majority expect, our our you implementing the should of having margins increase compensation Xst. for pressure vast because in associates quarter, of So October the on gross fourth

in pressure. the do margin fourth we're curtailing wanted it before I pressure So to quarter. comments to But clearly, I gross see think working back two all on do elements of will net Brian. some you you And the Pricing, that. see pass I on

know, clients business, -- is that when I value to You the see and we contracts, have to of will say really that in we time since think too. some clients delivering value takes start our can that particular, that longer-term implement but when the I I Cognizant bring the pricing digital understand observe course, can our

that our helping situation over in holding about satisfied, with we're medium-term to are thesis driving to core on we margin, Brian. us pleasantly higher digital shift margin So gross is the the happy really Back our the side. to gross strategy you,

Brian Humphries

Actually you've what touch going I was upon say. to largely

point. think the implications challenger also would pricing the just dilution. strong enables I us going of we so course have of is opposed brand; then our competitors important we're I pricing, as other accretion say, point be important digital of against a which and but view, very from one And up, to to

Over Digital, Digital years. few takeout’s. me years, captive structured twice the how naturally, two heavily or about people many the last that and industry asked has been of deals growth I our over rate last in We've the have think embraced

in is, or That's be of been course, that's a the an ensures dimensions benefit part this quite X-year heavy actually is performing, a way, But lifting. of contract for of we multiyear which going the all actually, strange forward. of or to us as of you're favorable the pricing X contract. the smaller One locked nature Digital work into get, of durations you given haven't

we're we We in on the track. that right feel the have ahead, but to quarters get right

Tien Tsin Huang

Thank you complete for guys. Thank Great. you. the answers,

Operator

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

your question. proceed may You with

Keith Bachman

to going But a go a Hi, evening. very I'm thank ask Good wanted similar direction. at I Brian. to question, different much. you

unprecedented word the seem what does wondering But slows be agree, unprecedented it it. and used I'm attrition. You I to

problem. second side competitors this help its wondering, slowdown what will order an that taking, steps And the just Cognizant's does a some industry it's my related. I for then other of require forces come across I'm they're question Brian, that But just pressure? it clearly and of down? specific about are talked some attrition alleviate revenues in go but ask since You've ahead is, And the industry might Cognizant in to

how or the attrition, look gross As you're next margins, you year? that do facing to of such quarters, out think the to couple about need even next make trade-offs related as you over you versus unprecedented the

Brian Humphries

Keith. Hey,

started Let growth fresh me some making start question, with we've given the some of mind. Look already in versus it's trade-offs, those second margins.

delighted team fulfill reality forward the executing well really had and the the our last increase with headcount execute in is grew. well way, engine was think we we've and we'll subcontractors, quarters our I which also continue going I'm by reality of is, extremely the few to sequentially excludes which hence, a But XX,XXX recruitment supply and which it's balance. points, where may given at don't to potential. And clients chase, where we're that thing risk, which we've have to appropriate walk pricing we stances to put serve, enough faced and to headcount been but to the deals choice our therefore to the willing with a do demand, make deal away,

the already turned momentum. Keith. with we're mid-teens momentum, So year, growth up will is bookings in of of that delighted have terms bookings which really -- corner say we last of quarter, same in that in year-to-date back actually XX% on tells have to mid-teens the really vein, underway, the brings a me commercial we the growth I commercial

the that. I The industry Look, the attrition. in answer it. elevated this. first will reality despite the coming hiring very current of I industry the it's really levels rest the we question can it from underway. potential, I'd to forces regards nothing net time is, so and to record quarters. as true have a to don't attrition immediate question quarter, accelerate enough that trade-offs difficult but does the in is attrition the more industry fulfill that line-of-sight they mitigate those see [indiscernible] levels like With to So the in around were ads foresee are our alleviate we all to against

into make the Cognizant. advancement like development, ability sustainably, understand back point don't this like organization time. because our both it focus itself understanding companies this, back and the employee a hearing us the such, over compensation stood times clients have extreme. actual that to And will up to will much et I win as only in they mind, on cetera. as have hence, little this growth we're from opportunities I this this. of on were employees, we're we we're careers because double-digit opportunities clients on they bit sure amount deep winner demand, our your think angle. get fact more -- in is And what's career demonstrates will retention clients extraordinary We individual a view, hopefully, swagger gross up the from that a to to. what our and like us validating say right I training or that And, will win don't from room X helps day with personally us their minds that and war of to that in X invest we and an of groups about X employees now talk months X obviously, ago hour spend and hearts X are I much for stage, spent the a margin at and And benefit are fact about of per more time

after think happen So can had do. time get doing say, I years pyramid at a but let's off our right that of being this And we've which stage via, to what -- our we're program, of core also starting fresher to few will is overtime, tell what's shape stalled, the re-invigoration but we going kilter. into to the back we're really

Keith Bachman

Brian. Thanks,

Operator

Research. with of Equity the comes next Our Rod from Bourgeois DeepDive question line

with may question. your proceed You

Rod Bourgeois

turnaround Great. Brian, international something Okay. years. had big Thank you had priority, struggled which over your you. revenues effort, the you Cognizant a actually when somewhat been made started with

these growth in latest international outperforming results. is Your

pulling speak revenue international sense progress. sustainably you're at if your going wanted the that get with you're see of to increase I the on help revenue a the you point sort to path could this And love forward. I mix international to to So levers to of whether

Brian Humphries

digital which question, lot very accelerating great It's on around footprint, total a because our Rod, often time we're other isn't one spend is internationally. relevant, strategic just but our postures, corporation which of a level, of a also on

capabilities focused revenue. on. just So is our XX% is scaling international XXX% our I'm something of Today

its our our desire about the And capabilities are for footprint to but shift of across can quarter, the business QX both initiatives, also Company in about as just the it's the to scaling, I also Germany operations, the so well would becoming the capabilities our digital, that provide Very hired our global brand where build in internationally, leadership in to more clients our in international third terms internationally, if senior would the in Japan, understand network also delivery we think largely refreshed think markets. impact But this not year-to-date just and Nordics; well We're industry, bookings also, we've in need delivery people New Australia, onshore, now strong And will of the above well. but year-to-date local local but U.K., say are momentum hires continuity average. they and we into growth in particular. our have is evident, And enable it's in not revenue near-shore and of revenue Australia, on Zealand, is against they the more targeted you Germany, internationally, businesses we've well-connected overseas, year, I scaling. as the lot team. core a U.K., international greater those very say I bookings a executing that of our

they give followership me talent confidence are Zealand, M&A last seen behind part an dollars leaders, as in acquired but post-merger New employee point-of-view, there, take attract will to as from bringing that also who Germany. earlier ability of from in a as Serbian relevant in those Australia, Now client is -- senior this And our investing ESG you've well people I'm mobility year, point-of-view, the integration activities seriously. we and both

team take ecosystem back team a network. a goes in to into partnership who their it confidence having team So as responsibility fundamentally connected and client seriously, that's and having well the as the

there strong we to the some are from aligning way an hired But those example are too. in major is we UK down our more leaders aligned continue by that opportunities will the industries now industry. Rod, country. North every I internationally. payer notion industry to are the we But perspective as we've great Europe a America. industry where of In in that after that an in all we're well, into embracing market in largest scale I we the countries is countries, we go double obviously Healthcare of are While industries think to country internationally, actually of Asia, in provider that very space. that but perhaps of But and different arena not expect alignment, industry alignment And behind. across these the are get as

just maintain my Rod, years Investor talk this in growth, on more ahead. that not November And Summit. of the internationally growth to the expecting, at certainly XXth accelerate about my So level to our is we'll hope

Rod Bourgeois

of pursuing Hey, deals? about particularly on sales I'm helpful. to And and And I other are Very given I of large somewhat demand that asking given mid-sized to in the more really right from lot are entail, away if risks now, out deals given they see the pipeline, want guess focusing smaller ask the you deals deals significantly there's extra-large times exists? deals. some that I'm you biased you across mega wondering, a or your there and the are that pipeline, breadth

Brian Humphries

digital qualms markets. categories, no made to my Cognizant notably expose fact that priority was to international I've higher-growth Look, and about the

have to actually to much against balanced seen question, we work And where deals $XXX million from them the year-over-year work business you're structured as positioning our and but a And focus resource position think of And two, by a a from this me one billion I I deals led now a is [indiscernible] of bookings geography. book doing, against against to and win by hard I of I putting quarter million inference that to the with valuable us. will are have you us year-over-year this [indiscernible]. deals, little do if agree Bookings into I digital ratio that I about thoughts. booking, than the may have year book-to-bill very different very compare that are XX solidly in in in or the smaller putting our an momentum category have digital has that's X.X range. perspective, or healthy more my on with ends fourth digital, your digital you for were in good be $X in the even up has I industry, all but we our a constrained think more these us [indiscernible] now expect for is within nothing QX XX% thereafter continue plus well. to contract we on a basis, captive environment So for say, have pipelines, the but interesting or type resources grow. nature about rates on when work If in

fast. velocity That's I and So will is strong, I the very feel good our good about are at moment it's I not indecisive, is position. you in the that, enemy when say that why about CEO, Pipeline have that time. is the feel clients this case

I made strategic against choices ago number a choices the that. we're think the of right executing we were years

labor bear that think the of the will coming fruit in years. I

Operator

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

You question. your may proceed with

Lisa Ellis

give Thanks Cognizant now, a look little your the personal priorities a the from lot, you Can really back year. quick going from at Good CFO break year Brian, question, one-year you Thanks. for Jan and in as are what Terrific. here. your the been kind seat, going over last just can what stuff a CFO for guys. feel well forward? in then like you've of organization been a talking I has seat ask and a in CFO

Jan Siegmund

That's an the obviously, Actually -- question. unexpected Lisa,

Lisa Ellis

to about go like. attrition Well if can asking back you'd I

Jan Siegmund

your are and sales do really the give priorities do I those from effective improving think organization I actually more translation you sales The No, I bookings force distribution Brian that multinational required, capabilities, and expand example operational has finance effectiveness you been organization question. seen appreciate a talking and you results the our club. about. in supporting and disclosure of and the and for that this measures on have controlled force strategic when scale with Cognizant, X is I'll of our laser-focused and into endeavor strategic obviously like appreciate, a big I measures priorities four processes was

But really to high been time. feel and in -- focus -- changing, personally I'm winning initiatives So we're I Company with is the really to attrition particularly the that to you that about worked made the that's organization the measure And the the trough experienced Throughout have not lot Cognizant because through the that doing. on of changed ensuring commitments all financial the industry relative clients have visibly fulfill I and of just well, -- really can of value you -- where be out of team. and opportunity. our work see relevance the for faced to drive quarters so pricing that explain primary you we kind promises. couple [indiscernible] improve has we in to and good It's ourselves have that pleased remain is but behind of analytics in been capability that street. also that And of last our we underway four of that driving an to deliver only can say, over our it's clients, for how our the wanted that's expectations, has Similar work the terms accelerating for think, all I energy I year end, effort marketplace have I outcome, And rates. in fun surface that as we the part what a transparency shareholders initiatives, in supporting us, etc. to that fourth, our in make a has part last to is that that the half fulfilling that pretty excited with

Lisa Ellis

the then is partnerships And technology follow-up Okay. side. my on

are mentioned Hyperscalers sense us on technology some in the you that I the for areas building you've partnerships? Brian; of give think of times. priority other of Can focused as a you priority a just terms guys number

Jan Siegmund

look. Lisa, Yeah.

then which extremely learning, and the machine immediately traditional that, obviously But AI, the have powerful, we've gets some into platform scales IoT, hyperscalers are Some omnipresent, into of of what etc. various leaders, certainly been we've some I world, well the years, were huge like companies DSA P, than like next-generation companies the a of Salesforce, others, we but on migration of Workday. data would stronger different Oracle, beyond partners modernization, the focus call you for ServiceNow, ISVs Cloud had technologies. as

Workday As last acquired Salesforce. a a reminder, we year-and-a-half, done to X collaborative the practice. acquisitions in also solutions We've in scale

they set well lip our in was our team those hyperscalers, singing of up then areas now take in see it since it's behind hyperscalers we Salesforce. how is I healthcare true focusing to with those. meaningfully in strength, interest naturally X higher-growth I aligned position are Voltus very towards continue the financial the more categories. it services, exponentially business as Cognizant, phrases to have that were organization, in not acquisitions and the Salesforce terms [indiscernible] though groups our alignment, actually more we particularly We of service, our a changed will industry recent do it's and position leadership has is and And seriously. and in Salesforce with our grown. to

business relevant Temenos, industries you operations they course And nature, of I'm is which Cognizant, Duck a have partnerships we PA to Guidewire, horizontal individual are And last fantastic particular. proud anywhere to exited cases frankly Naturally, they players more moderation. our companies in on some the to have very could It then industry-specific high-teams there [indiscernible] of, over business, etc. two in Creek, individual strong but in are I've years high job Now, be referenced. Pega within plays. etc. meet present where very of the the Automation across as we've done a growth. got back content the And

Operator

Bryan comes of Bergin the with line question next from Our Cowen.

You may proceed with your question.

Bryan Bergin

the us investments had pressure of you require S&M the catch-up some I'm frame specifically, sense magnitude a the can think such because trying of Margin, incremental that referring recruiting year On forward. up you. of structure, associated Thank may that larger strategic in the afternoon. XXXX? to investment as you've campaigns, like a of this the we give to business uptick in things the increased And an the M&A step dilution not good with Hey, level

Brian Humphries

going was that to want detail the the or that hard have much over to I margin too pressure careful be to it be giving we But to you in the time. in interpret growth seen M&A off SG&A costs, higher so, and upfront activity. be them. &A to M&A be carry approximately This with of deal-related could expenses, is SG transactions load deal some the the this could due XX% that

say, HR the kind -- in say have for meaningful That's three major a of our our pressure so. us, XXX areas, been recruiting organization So starting because our evenly around then that's [indiscernible], rest to into put basis to roughly are fair Those would of range are we starting clear us let's a important found, it's is allowing that amount it. and starting kind And I We would obviously one in is that think levels have force modernization. to even and say. IT a I what stabilize that and between plateau. want to are has split that we forward. not going sales expenses in points into XXX more scale a number moderated investments anticipate and on and [indiscernible], pressure We Area those have hiring or to do now our of has seen reduce pressure be are maybe but we had activity. I capabilities. some they think to the development it's marketing us; the of thirdly, And investments SG&A to of order our to those

[indiscernible] growth be in growth to bit Because the had an indication meeting. But have curtail traditional detail investment expected little areas see basically. will to a bend third that it see on quarter. in more these that, quarter is the done. And started bit, work to in have we our around really the third started would SG&A of areas, November strategic more happening we still But I what's You more in but developed that. obviously to little that has can you offset as a here

Bryan Bergin

that, for non-digital reason Thank just is for you're what just good And and it business follow-up on the you that. a seeing as Can dig Okay. then you That's in performance. detail. on sustainable? better

Jan Siegmund

at there. multiple are play there Bryan, elements

digital business, bigger strong digital a of we in digital. teams classify mix has elements from that digital into is actually are which growing as are operation that and don't within impact elements we One -- ones operations our business our classify there the weighted been have we and business that

we we're including to tended the ago over ever there being maintained a non-digital years changed two our traditional that Again, at and other stage that of quite we We since. our have business more But on disciplined. elements elements view They're be grown business of well. as have and disciplined. that areas we within elements some have analytics that we've applications element business, enterprise digital portfolio. of definition CIS and And that, as intelligence, etc. as then are digital, top AI of and We view this

very this that, very to risk maintain declines requires the is which point-of-view; If that for that be we you've from is in non-digital multiyear the of mitigate goal, as us a a think business and business. something very to in therefore seen a that time, to we hopefully in in Our do be corporation. its digital, from strong But earnings non-digital honest, frankly will moment renewal manage well. to competitive basis, complement I to what goodness some at in pricing, and entire the the growth be disciplined in growth expect

digital, particularly they If growth large extrapolate have they will for those to the seeing total that that who digital you businesses. their the their very in you portion of is revenue legacy growth, a able Company are declines suggest versus have be extrapolate truly

Bryan Bergin

you. Thank Okay.

Operator

Our Faucette with the from line comes of Stanley. Morgan next question James

question. your with proceed may You

James Faucette

control and the very And see of a to margins, the today. pleased great, odd That's in for etc., spite environment. all certainly thanks detail on

judiciously starts wondering, Jan, the proverbial for wondering muscle? really I'm you've are so control of around So you is SG&A. into you that even like kind forward you've I know, recruiting, etc., the but mentioned bit think, more to at march etc., expenses? to you're in And know which, to all this controlling but, can a want you the a And on continue there trying cut improvement, point few I where you those areas where to if shown a areas little you addressed be way margins, I'm control

Jan Siegmund

explained in we the earlier keenly Brian iterate We think focus our and rate. I growth accelerating on Look, it. call it

as momentum see it. we with announced -- organically we have allocation want continue capital program as our So we we see to

acceleration of So revenue front growth the and center view. is our in

promised ample clients such, we of opportunities decisions that staffing. as we to; our have opportunity. We of with the to have And made support course,

executed organic will productivity forces. that be but a optimize certain marketing busy combination finance have the think space, in we that themselves that of sales growth that and to And at other in been IT we're complicated I also funding in scale training opportunities. our will to really amount for market there the Company the So improvement good themselves I course, appropriately going pretty in functions about programs; those SG&A of amount are actually certain HR our be to of very those distribution will important pleased and components, and fresher’s, to growth well, strategies, in force at more scaling and obviously, we size our elements team funded work I'm But sales components, area, that And the certain have effort engine. to in the permit, and the and our a or we proud of and support accelerating to as will natural resources, needed for go-to growth [indiscernible] as capture scaling we have also of we're scaling. more part need continue the provide optimizing our that achieved it's of fund of actually policy change but of we hiring classic opportunities funding it's in

philosophy So you too but the SG&A what enough answer. growth religious exact relative is, I'm percentage not the to of my here get in

James Faucette

I'm least like? look timing out, the to may for are for I like will and Yeah, assumptions that super it's that your dynamic realize what I impact but a just quarters. you planning planning next then going sure what T&E, of as of And we and sure. things how world, things we're trying of trying model know, understand at to into return make couple be, like,

Jan Siegmund

the the dynamic. need, Obviously, a health talking expecting bit be to and the by meaningful -- decisions quarter, in and to by are excited really to really is I'd factors: our about the quarter associate’s any the -- affected country, going little Yeah. and forthcoming. more be expense myriad my it client’s year a but next about I'm return not in of travel this but for next be preferences, of work our situation increase

still, monthly basis worked for competitors at environment virtual a current pretty we're So are point, which are, largely we the actually has basically on us. as well all and evaluating in a this

to say as different to the is So business in -- and historic that that those to meets we of will a that opportunity the a model. needs decision model all have that there are it's forward. progress, planning evaluating strategic think the will work stakeholders going And be a about we an new really I gradual than that business be

James Faucette

Thanks for Jan. comments, those

Operator

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

proceed your question. with You may

Moshe Katri

feeling those digital where some the are very that me the for Company? some not strong because lot. peers? know, of thanks congrats the still losing asking comfortable Brian, do a -- XX%, kind was pure-play some then kind key we're think of on that One, what It's departures some you've numbers. high-caliber mains. the get your Thanks we're we from for I said. up we -- are do attrition Two in past, Hey, questions. to just a on to And as letting at senior side, of had of at you of ask employees the trailing Digital a level here. growth you had need to you levels And point the question

Brian Humphries

Company solutions the some stage. kind I days, great a these been few usual team view business bookings as a these backlog I would with as Leadership is -- of been after years land be. And trajectory I'm both on business I and retirements, leadership senior into Most leadership deliver. pipeline days. back in a getting this senior We're classic haven’t have geographically ultimately a hasn't at say, delighted Listen, be the offerings we the performance orientation, days. to think orienting towards but you've around got this these team I internal Company promotions, changes and where our Fortune as as it XXX we've us the to our we to seen are evolve as united model, needed here strong growth [indiscernible], much well as think as team got of very that

distracted a by concern XXX,XXX that you digital, at the it all of don't course, plays to anymore. same the at with our So not. IoT our that's portfolio. portfolio Company out is our not on digital experience our the press digital we'll engineering mind regards is depends cloud within look growth business, course, And And employees. of growth would the digital of results. If individuals to pure equivalent to always be the with Please rate article with announcing pure growth at, the on there, XX% portion at a I are I look as fast as with their digital that for plays our business If business, business. our look or get

the XXth ourselves. the bit some growing definition bit this said, tried I Investor around that few shift many But reflective rate somewhat in of we the forward. we -denominator, hanging of at mid-XXs last Company drive continue numerator the be little Summit, to as business that of in ways of we look actually penalized been and growth and mix the little anticipated. Company portfolio in digital, the A ultimately in will I'll at, have talk has a a some significant disciplined and had are our we as extremely than rates, that the November where quarters, gems the growth better So has within non-digital to broader that this in categories is

Moshe Katri

Thanks, good job.

Operator

with Ashwin from Our Shirvaikar question comes last of Citi. the line

may You your with question. proceed

Ashwin Shirvaikar

Hi, just Jan. into, get to sort wanted I of, a business. bit the Brian. little deeper Digital Hey,

doing that experience. example, with engineering, for digital mentioned, digital very well you're You've

so application Speaking of an up competitors, bring often modernization more as with area. your some they

type and not want? carve-out versus that Or perspective the talent quite I modernization you strategy stuff just availability could where you necessarily your the have as digital arena, from bit are? choice? the deals is in in about not that the talk large you after little you go growing fast a versus that's you So to of that are is what areas mean,

Brian Humphries

digital. days, on definitions digital on Well, We've is think, it again, our that including have companies TriZetto the digital, is platform our to I just which back quite been for what business, goes growing intentional restrictive these Company being growing at businesses, at pace double-digit up models. rate the significantly not because prior a pure-play healthy engineering very all a at it's of same business business But years. the maybe not or digital from it's

definition pricing corporation, for us we higher us puts against categories it's our growth everybody's But I strive do most recognize very important that we We be have transformation exposes more intimate the much clients of to around pleased and articulate we much relevant I'm our we as we makes some we with a set go always can And understand as optionality a more world up Cognizant's Digital that have because are and dynamics clients their So incumbent. as favorable becoming as references are to for some today to competitors exposure have, to within margin to what us digital start and importantly pricing. corporation. where meeting to speak would our of ultimately differs. me, momentum the strategy in different journey. will digital, is the what part open better. categories It ultimately, better higher with a doing, of sharing that do And to of and of become better. clients what when around it [indiscernible] them next I very to we proceeding the versus have, we're say with

we're that right spaces. the in So I ultimately feel

where we Rod's We will is our of we our accelerate because there our a it be, earlier, to international of I in that industry regard announce to continue others. than that certain lower future a well. than as give down, number a foreseeable of back we in just confidence will in right that deals capabilities those delivery of on we on extend And double our to shore need also markets not And working create hopefully our mix is want capabilities where mix our any you fulfill to but doing hopefully higher historically in onshore geographies, further demand the near teams are focus needs thing to internationally, can where structured things both that and there portion spent capabilities, there. question digital are digital commercial lot more certain course, that the the to digital we're the we're geographies

Jan Siegmund

illustration Maybe could add numbers that be I for helpful.

also the are monetization, digital outgrowing digital battlegrounds that overall meaningfully -- we business, actually revenue have engineering growth course, really our digital of value for we As gaining in strategic the those data Also, identified; businesses, our on and the digital you and digital IoT exceeding of of within our Cloud growth. know, those priority me, is and revenues. focuses. overall and four focus our example revenue prioritized But a Company are good share areas our digital the

to those thoughtful least strategy good in ample seeing to executing those we're sign, a a for exactly our focus really, we long is Company in So results but areas to things at I be. think then for run, and the a opportunities and in establish what of way expand focus as wanted the that that numbers

Ashwin Shirvaikar

to you. the for level Europe geography details think past provide have was any example could details geographic I understand Thank Eastern vertical in you you to you the a high little fine, attrition? call. Attrition India, help by good that or question. end symmetrical or kind of either lit is provide, a Very could know, the Any maybe to bit of in indicated

Jan Siegmund

India, the I location mid-junior levels if it not of in just is cloud. in the think I it's highest, Look, voluntary where would in say but India, skills, it's certain one -- broad-based, attrition permit it's about it's primarily whether also is against

significant just are incredible Here mitigate areas. just that. It in and well a seeing digital the SaaS year. you've and where it year-over-year I years, We're at extremely have what engineering, the job And following working expect the net technologies. time, as to attrition job resignations leading attrition in ML team data, the as engineers, consistent, from sequentially labor peers expect country earlier, is AI our seen compensation we're based Hyperscalers we've based from our or and full-stack in in recruitment still frankly, said this fall, players We funding for on in coming industry. talking we're the attrition elevated seen, we we in an on basis headcount it's the earlier, we're we're at Dot seeing to is mitigate and we're think takes QX, scale And minds hearts like what compensation. moment market. those P&L, hard meaningfully around Netangular doing measures do coming been Salesforce, efforts it hot as anticipating our very I that in on a question our that. in received to on we've us to had Those the and to across But

Ashwin Shirvaikar

Look XXth. you to Thank on everyone connecting Thanks. November much. forward with Okay. very

Operator

Earnings This Solutions concludes Conference Cognizant's XXXX Technology call. QX, today's

your participation. this may you rest the at You time. lines day. disconnect Enjoy Thank of your for