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WNS Holdings Limited (WNS)

Participants
David Mackey Executive Vice President of Finance & Head of Investor Relations
Keshav Murugesh Chief Executive Officer
Sanjay Puria Chief Financial Officer
Gautam Barai Chief Operating Officer
Mayank Tandon Needham
Bryan Bergin Cowen
Maggie Nolan William Blair
Ashwin Shirvaikar Citi
Dave Koning Robert W. Baird
Puneet Jain JPMorgan
Vincent Colicchio Barrington Research
Call transcript
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Operator

Good morning and welcome to the WNS Holdings Fiscal 2021 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After managements prepared remarks, we will conduct a question-and-answer session and instructions for how to ask a question will follow at that time.

As a reminder, this call is being recorded for replay purposes.

Now, I'd like to turn the call over to David Mackey, WNS' Executive Vice President of Finance and Head of Investor Relations. David?

David Mackey

Sanjay to today XXXX have XXXX. the release on Keshav WNS' www.wns.com. welcome call. for quarter financial WNS' detailing was XX, and Today's COO, Murugesh; ended me our With the CFO, our you our focus the A results third fiscal earnings on remarks fiscal CEO, Gautam today. Thank Barai. and press Puria; call, section third of December is also This will results Relations release our the quarter earlier available issued Investor website at on I

statements. document actual that expressed Some and to of known and company available forward-looking those the today's be factors differ matters website. that materially are keep or statements will risks unknown but not Please company's risks such the are in is This in these by implied results Form mind limited call cause Such forward-looking. and are those to XX-F. also on set uncertainties to, subject include, discussed uncertainties the could from on forth that

will found certain release earlier During financial management of today. to non-GAAP we can for investors. reference useful press call, non-GAAP Reconciliations these which financial measures results GAAP believe in the the provide be measures, information issued

amortization management adjusted used margin Keshav? assets, operating to WNS' call would taxes. intangible These Some net to follows: of operating compensation, measures CEO, is the as amortization adjusted throughout goodwill payments; intangible be of repair share-based the associated and impairment defined as over non-GAAP Keshav goodwill and excluding profit, ANI, will defined will I excluding turn all Murugesh. as are now the margin, call. defined defined discuss income, of less is or financial share-based like terms net revenue assets, impairment; revenue as compensation is

Keshav Murugesh

and hope are well. and Thank We you, everyone. morning, your David, you families good and safe

a to our BPM in $XXX.X third and constant Sequentially, which X.X% of resiliency revenue at million, of clients Net reported importance decrease X.X% and the results of on X.X% currency. $XX increased the constant model. or and WNS' reported came solutions by basis million, to basis continue strategic demonstrate net QX quarter currency. represents business the on year-over-year fiscal a a Our our for revenue X.X%

quarter, XXXX XX the momentum impact averaging business recovery stable, capability our of of demand. during new delivery as nine period new existing During have In progress last XX despite Year-to-date, same we remained to XX% relationships. versus the the closed WNS' of and COVID, with logos expanded added continued clients client QX, supplies we year.

quarter, the in healthy also both of the a sales During company and signed global pipeline. hiring new deals reinitiated support

strong. four past than XXXX, growth including revenues clinical XX%. of grown of the revenues rate by health over gone including X% and health have XXX over to from nurses medical total registered staff. our XX% representing years, specialists, Year-to-date, highlighting and our and have more care doctors', positioning remained of In space spectrum, the profits XX third unique over practices, including healthcare payer, spend today's has discuss to a call, to WNS' quarter addition, wanted and healthcare pharma experience I little devices. these On years Combining margins, WNS time and expanding medical the in the flow cash across In in annual compounded XX%, combined fiscal provider, opportunities acquisitions. a X,XXX care company's our

premiums. insurers measured clients. WNS as management support. assets. on across, WNS high-end Practice in the utilization processes allowing work, us by U.S. to in care HealthCare claims scheduled and mission-critical customer and expertise, Within are domain year has this supposed company's the XX largest largest services deep insurance Insurance solutions, technology offerings to WNS management our Today, our advanced digital to underwriting, segment health wellness healthcare and of three our payer the companies healthcare manage action analytics, disease, space, analytics focused care, capabilities management, clinical industry-leading for and The as solutions, annual provides and commoditized, services leveraging

achieved benefits such of have from oncology. expertise management, stemming high complexity cardiology high including, cost, radiology, acquisition our as, in We specialty areas and HealthHelp

payer platform, Our scalable leverage These management digital front-end, to evidence-based, optimal care, for significant. an reform, and and insights analytics decision importantly, dashboards. Most artificial the utilization and education technology-enabled, patient been solutions The well utilization our we've This to patients', requirements. deliver outcomes. intelligence learning, sustainable support clients omnichannel and our includes, outcomes embedded and HIPAA and and include behavior are able predictive been superior processes, workflow web-based with platform and is increasingly machine have compliant deliver savings, proprietary as Consult, as change. HealthHelp doctors, combines hospitals, user-friendly technology long-term which

up their member to and care of In numbers, WNS reduce XX% avoidable Net of payer our clients times quality of costs cost industry-leading ROI. terms by representing procedures We've enhancing safety to unnecessary and the Scores. is service saving driven up reductions in XXX% delivered hence five Promoter a

finance through analytics, Examples and our analytics and domain-centric, XX patient market industry is research highly commercial pharma to We pharma currently world, data and competitive companies back sub-vertical. XX our supporting additional visualization WNS of In a Integrated this sciences, are and is sales who outcomes. our combination XXXX landscape our and intelligence, subject specialized pharma XX solutions, with analytics drive Turning data capabilities analytics, and our expertise drug engagements to platforms, and help technology data life engineering, sites, accounting experts, in domain and on matter clients data leader monitoring. which X,XXX WNS' biopharma data digital biopharma revenues. intelligence, provide include and to in leverages their cloud-based the In modeling, spots such artificial and advanced clients our visualization of intelligence the with patient this business the and attention analytics, enhanced able top environment people space capabilities in deep identify machine and science The mix office, offerings based enabled of their the proprietary BPM decision-making. pharma pharma WNS predictive treatments blind on and analytics targeted WNS' domain-centric with Edge. are business age service is including competitive through Edge over for of are high-end, intelligence, provide Integrated and differentiated majority with platform, learning focused top digital six procurement. as

requirements, been large and compressed highly to delivering to insights pandemic, COVID and our them reports amounts pharma rapidly data enabling the their has clients needs and meet changing for During in analyzing consolidating able critical WNS of timeframes. support

accelerate populations, market. to reactions them therapeutic and identify speed analyzed vaccine vaccine trial and As a result, we've helped clinical

While or opportunity value is and payer WNS segments, of a unique we all for and able clinical believe offerings care long-term this BPM to accelerated has health some the industry been landscape. remains – for segments growth. low four work addressable significant across create and With market higher expandable an industry in right rates this the vertical expanding penetration pharma disruption,

key expertise or BPM to undergo the with shift demand specialized Some see knowledge, These combine towards deliver access, a as results. provider domain advanced focus payer we require collaboration trends ACOs significant disruptive care, business who to organizations include for all telecare. fuel and technology end-to-end proliferation transformation and can will COVID care between increased organizations areas process partner in shifts of pharmacovigilance analytics rising and the patient accountable as of the towards provider organizations,

As result, for of health a the is a care investment area focus WNS. key vertical and

about Looking to forward, the environment improve. WNS demand remains continues optimistic market opportunity believe BPM and cautiously short-term the long-term

clear BPM execute in investment We to our where WNS' process momentum value that key we is over programs now call COVID-related And expanding all client ongoing turn business our Puria like While reduction volatility of I will to sustainable and discuss well demand our long-term industry outlook. that aligned by top the solid CFO, technology-enabled ability for that capabilities, clients. Sanjay remain behaviors, mind it to see and or and for are of we Sanjay? is strategic some to country, transformation differentiated expect market cost drive will vary results hyperautomation further to stakeholders. would the and proven believe with the headed. our confident are for which by

Sanjay Puria

which million. net basis X.X% services reported and of improvement revenue constant $XXX.X X.X% year a $XXX.X Thank on on the quarter last a geographies. quarter, and at quarter, in increased in company came revenue, you, average. booked from significantly same currency WNS Keshav. on million by margins verticals. constant third was WNS basis. Sequentially, X.X% posted In million across short-term a down the revenue broad at fiscal and of revenue X.X% down net the based recorded currency $X.X above third Sequentially, In was basis.

quarter. IFRS and $X to the pass-through improved associated of offset than continuity average XX.X% constraints currency lower adjusted due same with of benefit net sharing, benefits revenue gain million quarter client enablement. costs our corresponding three revenue as margin expense of from quarter $XX.X offset The tax company's and to expense the last in quarter. with in hedging. mix was tax million in one-time Year-over-year share This and incentive with of and million in XX.X% was in than of Changes driven provision Sequentially, as adjusted last million per of the management fiscal business margin primarily were of net net to without was reported movements for quarter. of net to from with fiscal increased quarterly additional than and margins due These This business attributable margin net quarter. last increased in of $XX supply quarter and reduced of income charges. company's of work from $X.X Year-over-year, interest expenses XXXX lower facility quarter of rates, by unfavorable offset expense business resulting more is and lower which scheduled reported and last volumes, continuity. in variance impact movements million by three hedging. and in short-term and Sequentially, result headcount rate lower and quarter are delivered the three expense rates. improved pressure year facilities. work quarter ramp-downs, between $X.XX three million versus second $X fiscal the in favorable amount XX.X% increases profits earnings three Adjusted interest the impacts, quarter costs XX% effective associated reduced the the Adjusted is other to in from the more and sequential $X.XX discretionary and third $X.XX repayments the of the mix quarter more The compared XX.X% XX% in income the travel reversal was XXXX of the last to lower leave net compared diluted million $X.X net down income fees utilization quarter for XXXX currency expense income $XX.X facility-related last reduced COVID-related increase tax quarter up at due year expense of booked rate debt costs. interest in spending, came compared proactive by and driven including quarter. as from project same operating associated operating interest geographies net WNS interest a driven lease last quarter third

and capital balances XX, of $XX.X WNS expenditures. cash investments $X million million debt. incurred had the company of XXXX, and this million million As and quarter from in operating in generated $XX.X of cash activities December totaled WNS $XXX

XX% assumes came year-over-year days end at During quarter by in the total delays. year result $XXX quarters, supply fiscal $XX.X metrics volumes, of $XX.XX, With impacted days the in respect or concessions headcount are positive rate the negative, on clients a of million year million a of stock productivity the the steady current issued to seat and utilization as This the $X.XX of fiscal earlier press to fiscal reported in dollar net which relatively an metrics attrition assuming expected Revenue share release visibility over ramps. average dollar from the given meaningful three not be U.S. XXXX. was does rate a for year-over-year third on constant current and provided for visibility XX% remainder project XX X% shares expect XXX,XXX levels, quarter. and last contract XX,XXX as million. shares. days Based the in XXXX measure million fourth several We our of $XXX new capability, quarter continues end remained repurchased company impact year. some increase a we key WNS business The based seat $XXX million, concessions, XX% DSO volatility which Built cash previous guidance quarter. to to typically which next price quarter year basis. the term the compared provides be is quarter. average the three guidance in at decline have several of the currency and some expect of $X.XX of approximately XX,XXX. both down and $X.XX quarter to guidance to income work-from-home and XX.X temporary DSO of to to other for include of $XXX quarter, million revenue rate the to reported operating over not for in in range The range of the XX% quarter the exchange revenue on representing currently our count INRXX.X the last to environment. to EPS diluted British updated In client infrastructure the net X% range last to of in to down revenue implies the the from of fiscal short-term a XX was third U.S. and of company adjusted quarter today, the for company's at payment any the exchange WNS of corrections midpoint at is XX remainder provided XXXX. at ongoing could third pound an adjusted of Full capacity

XXXX, fiscal $XX Operator? we capital to expenditures million. for the now We'll open expect call reach up For to questions. continue to

Operator

comes from you. our Thank from Instructions] Tandon [Operator first And Mayank question Needham.

is open. line Your

Mayank Tandon

were first. the Maybe strong talk Could Keshav, broadly pricing, for terms pandemic? more pressures? much pretty to competition you areas in? new you is Thank the how around called you've competitive course changed nine out over of in Are Keshav of numbers. you what wins. on And client those pre-COVID competition Congratulations it the or similar more were has maybe seeing what cut-throat experiencing about you.

Keshav Murugesh

Right. question. Great Thanks Mayank.

the they and excited called I future the long-term already augurs year what very will So, specifics say the earlier positions signed last I'll up have the are actually Dave I year, And if Sanjay about as the of in WNS. well long-term. company as terms clients, for same is of for compared to at clients time and talk look but new company this nine new all you of the potential just it out very we number the well

business minds first to itself, to believe of opportunities continuing We managed that In the normalize activity like very I continuing the a superior clients terms crisis. say of overall terms of level business WNS that actually in companies well. will for and the is and prospects the lot the foremost in of is how BPM grow. There's comfort

opposed time a price focused outcomes a as just with as move to seeing can be clients much ahead quickly will business well discussion have existing moment the our in are seen price. with with now clients I more always us, will that with no we as tell are on in agenda. you have as your to We prospects clients And while scramble disruption point that of new

of I during WNS the results. have is space. us So, is these creating well. the of managed COVID momentum definitely leader transition -- delivery what the for the actually which have think few of a done like And is kinds companies this I'd is in think that extremely that enabling to the

David Mackey

shipping specifics wins quarter the five new added the your verticals we in in health in in that of good around Keshav's new and profile logistics clients diversified in customers this the that Mayank And to insurance different care. including add added nine to were just and comment question some we the about the

what based of similar remarks and mentioned our key prepared seeing to we're looked What of, in business all healthy his pre-pandemic. across kind what again, very is to growth like broad Sanjay similar So, verticals. our

Mayank Tandon

employees to And roll follow-up, you of do the off? maybe during actually very I the post business focus you've they process, cetera. so Could think some one-time given size as to just that the And of That's a the terms just do benefits wanted remotely, maybe helpful. profile changes the look XXXX? structurally fiscal more might margin you working that better et When sales delivery turn margins. in pandemic, in the the experienced far

term Just business? margins structurally question what BPM to the maybe more may of a look around for longer like

Sanjay Puria

we the on back, margin around And the digital work the client definitely to we To on costs that's we the operating the expecting including because up. enablement costs tools some move is are quarter, get, the so till short-term a was including the than million depends over revenue quarter. said long-term margin So, back or volume whether short-term to moving the of those enable that spike what that a as deliver, gain from get transformation as the and investments has to short-term company XX% business to Keshav collaboration average is of mix come we a cyber, there. and what be from including and what year, the already other those a mentioned going the work-from-office the really gone it's revenue, of margin but the Mayank, normalcy, whether the expect million are getting during which this it on a higher on. perspective, $XX during revenue around to the now again, have back, the what but $X.X -- during keep share work-from-home from acceleration there so some we there used the other we we upon short-term And including as it's forward, to on on significantly because -- and the that. the work-from-home definitely Having year is of

David Mackey

little that And just to to add Mayank. bit a

fiscal to kind moving lot this basis, is the COVID us, stuff, a for on of going at when net a at look this year. of you you year negative parts be think the Obviously, nonrecurring look year. there's to I a for and

XX.X% supply And a look where excess we major were through our challenge. margins You at were the issues margins drags on at were first the quarter two capacity, carrying pretty quarters year. those when this first significant

about had obviously, get still of as basis. a benefits, from But, costs, headwinds you Now look of is points, year-over-year net some if at year on the you also we lower COVID. from year our the a reflective the did basis guidance had tailwind continuity. And of FX. largely this with We've it's mentioned that we've down costs, reality midpoint we're business facility travel lower XXX this

So, things time to get about through is basis the XXX about one lift fiscal of points we respect with year three of that going a year we're spent of margin where and from we haven't the currency. lot quarter of talking guidance quarters fourth stand the to this

which So, lot a year. of our as back that to we the parts means forward, normal, But think XX%-plus for our Sanjay's of at and back where getting to business getting known point, rates I we're we're the within deliver back we to kind doing. a able look to moving look pre-COVID growth to returning situation

Mayank Tandon

Congrats. you Thank Great. again.

David Mackey

Thanks Mike.

Sanjay Puria

you. Thank

Operator

Thank you.

from Our Bergin Bryan next Cowen. from question comes

line open. is Your

Bryan Bergin

hoping Thank you comment was ramps. Hi. can I and you. on deal conversion engagement

So, occurring how talk that's about today.

bites You deals. of large the characterized taking clients smaller previously

you me update can seeing what So, you're an on there? just give

Gautam Barai

is more to a lot optimism the bite-sized, rates, extremely terms are are Gautam. the although be Dave trend based. increasing Keshav the at size seeing with similar transitions The This happening we Yes. the to that and transitions. are these is moment of broad healthy clients be pipeline and of is continue as what again conversion earlier, in The alluded continues whilst

Keshav Murugesh

is add that. just I'll Bryan, This So Keshav. to

of being generally, portfolio. clients interesting across in is is, we're in-person forgoing transitions. the seeing mix we're I a comfortable obviously, think what what now quite terms is seeing But

really is WNS. the It to for of things prospects control. realize. will decisions of importantly bit get because plans ahead, mix prepare say and smaller we helping and in taken. the move for delayed earlier that Europe that's Sanjay and have being large of these to may for I means are deals deals of comfortable cases say clients is what our and in Most little we're moving important decision we that that's only of growth decisions Dave out ramps are want and that back they generally U.S. of that a are to And seeing think taken; a us with want the I to seeing different deals the go to to the bit. that some about are new now to COVID which like a profitability. in with But thing able spoke normalcy to things little terms are But of quickly ahead what and very I is, kinds made rate once confidence being get and fact business

Bryan Bergin

here anticipate going pretty look Okay. fiscal So trajectory 'XX timing year And trajectory to this in think pandemic? we the through as the the fiscal next sequential cadence you your That's forward helpful. or to a overlaps how year, year? expecting do material cleanly more is that's typical with the given are a unfold growth build just your of you like

David Mackey

we think annuity we've of and more on that given to that our revenue business. the have I contracts consistent people really business our how cadence pretty trying stickiness Bryan to It's the sequential nature given more business. an the basically our of the runs of reflective Yes. focus fact long-term the Look in been

in So is of basis. what's reason understanding the a is revenues not. quarter, on, business following we is. the it out that important least what get it or you that layering how an not better of what really understand at to repeat the kind to underlying gives to on visibility may cadence quarter-to-quarter it try may expected call so is and short-term that a you Part of is But

the but steady real strip on-the-ground impact is get very of impact what strip And very that is a is. improvement And momentum the understanding short-term quarters seen what revenues. FX. what We a away is of couple the do business away of last of and slow, then the cadence. we So kind of across what we underlying in try we've the you

What had the we revenue. little here QX you take take an that had away is type that out of puts fiscal when a you'll of you short-term of business basis. the currency annualize you constant FX on kind back actually see an you look into range. tailwind X% a quarter we you see fact grew sequentially away, double-digit million it of $X.X at our the And and that bit If last low us additional

So COVID. back took yet because our if recover. a that have on like of comfortable momentum we the in of we we're business where of obviously we're Parts step to able travel at underlying we in you the and the kind up be back doing. to look business of known should a But back it's fiscal we're think trajectory that put numbers for kinds 'XX building

Bryan Bergin

you. Thank

David Mackey

Thank you, Bryan.

Operator

you. Thank

Our comes Maggie William from next from Nolan Blair. question

line open. Your is

Maggie Nolan

your you. on or How do budgeting now XXXX then into clients that clients your terms? many you DSOs coming long you do forward wanted their ask cycles? Thank be expect And are visibility general elevated, DSOs. is health to for expect Hi. additional how extended I to through asking payment

Keshav Murugesh

there. a I So expect see my and DSO from over in remarks shape as to pandemic bidding clients delays. the that some we Right of [Technical there some to outs couple definitely still may in which to for concessions Difficulty]. continue we XX this and XX. have prepared been now quarters more range XX to Yes clients said more out have for how comes be

Sanjay Puria

Yes.

Maggie. Let me take bit that little of a

you at COVID largely have early some we it's in what's on, the look would concessions kind most of continue. And you if on expect, know in gave the the impacted. been going that areas that of areas you As that

go challenge. -- here. something think to is the at clearly going look in area not that's it's airlines short-term the you where us been For we And an to that's going a there's away

I kind process think of But hit the least them kind most year, the especially realize they've bottom. the some they've they've some to in profile have at the next and of think I kind improving I But within going profile is improving. our and travel is of the exposure the X% look have think them I understand thing our business to when bottom. of for other we're now airline least ongoing their At budgeting watch of to travel overall company specifically of At outlook hit down of hope hope they And they us think of our that challenges, of you is is at to most they've our XX% bottom. bottom. And them of to the look to of clients So realize wait hit do airlines And business within and revenue. clients space. the you is company revenue. the But travel and for down that's their here. important hit

as So we we as to business. grow continue around areas continue some I think we of the these de-risk well

Maggie Nolan

services? you. to seeing then demand Are offshore new Thank great. That's And good any uptick additions. in you logo these are for And companies new BPM general? in

Keshav Murugesh

Yes.

terms second I'll in prospects and Maggie we this in very get of the their of trend the are model. the experienced that. teeth first. exciting wet answer seeing actually question have in is Actually the who quickly take actually past not forward of part model I'll a So to what look come terms

with and at well as across customers seeing move as we're diversified horizontal in companies been we're of decisions that core have our terms these verticals new very the our taking earlier. across a of few also quite existing they comfortable not come seeing of also So areas same outsourcing may geographies. quickly all And time

interact transition comfort have given happy this performed overall, model they're way of we teams is extremely in I'll that that the of in delivered terms virtual, model see are still a has so the sense. have to we I most the us is next have much but virtual think the with even it going in model you'll -- COVID solutions probably away, clients we sales the still COVID-related the very where interacting their few is a virtual, we way say also well. realized with virtual around way the And worked in model not quarters. argument, So, And still customers

on to I spoke as our the in my that prospects, processes past. the of dramatically believe some clients and it's of of WNS investments verticals recent change based tremendous in. game as potential exciting prepared for in more And So, coming the as existing remarks, medium a new We clients about long-term these new well. to we've now becoming the some actually far also made have to combination to in new verticals now existing

exciting ahead think. So, I days

Maggie Nolan

Thank Congrats. you.

Sanjay Puria

Thanks, Maggie.

Operator

Thank you.

comes from Ashwin next from question Our Shirvaikar Citi.

open. is line Your

Ashwin Shirvaikar

the and Thank Keshav, Hi, Happy Year. on quarter. Sanjay, you. New Gautam Congratulations Dave.

Keshav Murugesh

Ashwin. Year, Happy New

Ashwin Shirvaikar

a I numbers you're of wanted but guess, buyback don't to a want themselves normal, path I your the I hiring again, to call indicate normalcy. start doing are comments sort to positive, it

is really outlook, incorporate the below quarter implied both it you what a is sequential normal on know that year-over-year of partly your by of pace beat drives the question more you've done And my quarters. about and to the growth. million seems or question $XX revenue each level the of I return tendency So and each have XQ to these

So what's the explanation being explanation? here? Are What's conservative? the you just

Keshav Murugesh

Yes.

has that's return first will very to a Sanjay and normalcy very question and Ashwin, we will more I Dave sure confident about say stab while to talk think, the important. I'll about. I'm thing have the the that way are WNS at executed, take I first and But is,

definitely will a You that anything on table. results across we're the few quarters from note leaving not the

I well. the superb, outstanding guidances in positive the if on clients and their of my is quarter, guidance, in insight pivoted we our are is it when this superb. consistent based importantly, which quarter, these have also operational the must change the And providing to And mention conservative and superb, that once in these way. But we right? that our year for third area what that's revenues is to, something way model execution are quite our as seen used this inputs we changes, the delivers follow we profitability -- consistency now particular, but and during we've more terms again Our business a give is view along to sales higher is

signing the a at from contracts are that sure time, But well. during coming actually execute we is year careful of we same making lot from also So the clients. guidance of about this

number to of a better. QX, are of Sanjay about but takes. I'll there puts that particular, in quarter Dave to They and fourth the leave little spoke of terms the and it a explain the in one-timers Now,

Sanjay Puria

for in just that's numbers, not it's what Yeah. as maybe four, baked – another on have growth, And $X.X to forecast and don't some about, very as revenue they as non-recurring that. we based we because well quarter specifically quarter you Keshav three for thing a because had Ashwin talking what much X% mentioned, actually I million clients if because well see the four, what we of conservative, the add and quarter – revenue, is Keshav of short-term that's have pretty consistent was have driving so been the visibility any know,

we growth sequentially So like Dave you as we are the quarter as those will indicates, X% forward what hiring seeing hiring started revenue have that's including mentioned right deliver and mentioned, continue. what move now, those in specifically and what four we to

David Mackey

have projecting this not increases is, is, So generate generating where Yeah. revenue us short-term we ends is versus forecast. hiring. And if we're do it end incremental over Ashwin, above We're what happening and up clients of in revenues. And also not it's up margins. happening projecting tends just up revenue We're given our what incremental ends to terms the not what right?

So see that to to XX% one that's going around bottom relatively to to revenue you fourth But terms comes of the at revenue at back that's where incrementally we're down a on the are, it's doing margin. the flat quarter and healthy the comes, is, in drop to implied it we QX. the if line. in And clip look you'll guidance based if of things what's

it And upside. about create talking you're revenue so the creates only also margin does not the that upside it

Ashwin Shirvaikar

to It's sure process relates acquisition the environment diligence and distancing difficult. current the going stock. the in just think that. then the that, think just for aren't buyback. stock And you not diligence I you to can buyback resumption there the mean, back want. to indication you I talk the back you stock of pipeline? meaningful I to indication personally, can well M&A I mean, the confirm more I'm social targets. you if travel the value as want Thank make as acquisitions, lack Understood. it an buy in that there's makes as is And

Keshav Murugesh

right. absolutely, you're Ashwin, So

priority us. foremost, So let for with again really underline buyback. is once that And first and M&A the that me along the is

very I two have focused you a much on. we give strong these we confirm lot areas are team. that must So a that the to are very

consistently interest deals. is that have position shareholders. our correctly believe And cash are things right we in to all of utilized looking at We the the that, we're doing longer-term sure the make we that

digesting well. are that and of you and a very have acquisitions well results track know record delivering that great accretive also We

we So, I areas. core M&A looking of every happily our that at confirm one in are

of team our we no well get diligences, had in because this. our – have doing is of We all workers out there have due how worked impediments terms as as

as all. So far and the we no obviously, value is as believe we've concerned, there is buyback why that there announced at issues that's And it.

will the be healthy, capital point that, And strong our in the dollars So in plan marketing, as invest is our will focal verticals, talent believe this great continue areas well time. strong, emerging said is core these as in for core industry to to and allocation all technology our having industry great that we of areas, people. continue very at we potential WNS the and

Ashwin Shirvaikar

you. Thank it. Got

David Mackey

of might of some the visibility the been issues, assets look think last challenge, but environment the given to level distancing months, major these to May March, also into coming the acquisition diligence a in or targets. And good some And are lack us. and fits going able April, effective this seeing we to into deeper With timeframe of deeper be doing I engage to that and number COVID. of actually going these to process firms Ashwin, these due might understanding understand and Certainly like I type what in due do over of get back to the what kind to terms not for better not three of respect activity of been post lack add. diligence for environment. look only that get not have we've in was just able comfort of of whether to six diligence the a of COVID given like a difficult it's But out we're was with these

Ashwin Shirvaikar

that's good to No Okay. hear.

you in the pulling hesitation trigger So fit no if good here? have a it's

David Mackey

Not at all.

Ashwin Shirvaikar

Okay. Great. Thank you.

Operator

Thank you.

question from comes Koning from Dave next Our Baird.

line Your is open.

Dave Koning

job. Yes. Hey, guys. Nice

David Mackey

Dave. Thanks,

Dave Koning

guess, first margins. FTE-based incredible. hey, as is we disconnect I progress if five, for the would have be and that pretty good And go all And transaction I from revenue back XX of more based know you margin Yes. years, would said, can we

of go like little revenue. XX% to a You've used down. It base now. It's the be actually had under XX% transaction

actually you're Now have describe which gone be good, up it that with better It used growing. what's as doing But FTE viewed subscriptions happening? probably as that maybe but helps. seems like was like to not

what's maybe happening kind of there? So describe

David Mackey

one to you're transaction right, about Yes. things leverage have Margin Look to always of move certainly business. outcome-based I that is spoken mean our models, and we're that more and Dave. we've clients -- we the when in able

drive We disposals. But more tech-enabled, things become have other as more profitability we as able centric, that these we to our way. is of the we're at one that's become happened domain also

the move of and to we've you able our get goes the if price when And sell way of just that solutions the you're and for the you're specific value. up. the solutions story what I right? if the things analytics solutions seen selling And selling doing you value. from to that's margin difficult operate to across to of interaction, commoditized one part get you pricing be those it verticals clients But value it traditional they doing are in is is customer segments services, away and which horizontals, when value. ability get be cut tend you think can been WNS. move it difficult can for hard revenues. What is doing at So be what that to to sub-verticals, to If selling the can difficult within, can F&A services industry-specific significant look growth to is profile just be So core you're

there that The well. where level we the other deployment more gradual of control do to technology more and our part has processes ability the of on margins drive manage as and been higher have we some

Dave Koning

last level. if And down Yes. a basically peak questions over really just lower mean, travel as normalizes? business permanently about I maybe fundamental then But margins changed time the have margins just follow-up. helpful. to at higher just just a of whether And something highs is all-time on margins margins that's some we you be next above answered your year could year-over-year. know being maybe kind maybe now going That's look or the be we a in as already. revenue lot That it's quarters are next thinking makes at whatever of sense. revenue that I little year there two And a been just despite

David Mackey

Yes.

normal going start expense whether for of point are and little marketing, a structure. it's Certainly, think deferring advisers months, expenditures. that they're I these If of to types benefits right? to kinds save part they're Dave. XX come delaying or of we've gotten over either of the next analysts for obviously a a able the you these back. they're to at and early our whether clients, certain that; events Travel things for And things or some money some hold not marketing part lot by of is we you're believe

some going utilization, offices. a matter these started this people saw on into of see of we at it to point. bit people a back. to of little have to we're get the As going and right? getting come we've quarter, more So back facility And fact, expenditures planes people some our We're more

there herd get or we planes So vaccinations long quickly getting back of yes, function take? and will on costs people kind how come essentially I comfortable going think get can we going a immunity get these it's be back. and out back. of can How to will

Indian that's situation to to some to they on a the going our certain been people do year-over-year and of haven't to these of these want and year, past in this dynamic, us. one been other has we that year favorable to you're wait favorable one some to Now rupee and extent the going both to may are be they We've but go this conventions? outperformance a want have and is, activities? had Are to XX function going really go a to of is also that basis FX for seen it's of conferences? a moving performance too. of the to we have margin we're But And things to from a that pound see. question have which Are We the But people this some of function to impacted. unique and XXX% years, in the five expect which negative. percentage to right home. moving moving certainly going British trends structurally Typically working our want

the part also currency. for So is story year of this

Dave Koning

Well, great. Nice That’s job. thanks Yeah. guys.

David Mackey

Dave. Thanks,

Operator

Thank you.

Puneet Jain question comes from from JPMorgan. next Our

Your open. line is

Puneet Jain

for Hey guys. good my taking and quarter. question Thanks

for plan in outsourcing you model transition over next year you even are thinking locations? like the even work-from-home onshore for the or medium-term, about delivery selling rural how As on-site and changes employees, here mix needed like long-term at of or

Gautam Barai

So from our perspective…

Keshav Murugesh

Gautam. ahead Go

Gautam Barai

From perspective thanks our -- Keshav.

delivery of sales So or any process, well our in from change as see don't of our perspective over short-term, we the terms our terms both in model. transitions as

based with start But and will per are demands. terms as we're of from quarters, hybrid the of more alluded model Dave dealing client this through in And from prepared people a and Keshav there more this the managing seeing clients are it. as virtually. comfortable operating earlier, terms on more As next we progress who a a lot quotas offices we few lot working few be will the in

Keshav Murugesh

So a agree question. terms little Gautam medium-term. and bit thought it the ahead, was on excellent add short-term of said what I an completely Puneet, in the And here. I'll with look just we as I

work-from-home that prepare the that the as to large we working at from now capable I think has now world office, well a fact what to for pivoting model. we is as of demonstrated the are the must industry

view business that in comfortable from my keep cybersecurity from advantages. to of want keep to but the increasing. work-from-home we the point of And are will is because And, view, The in point also also technology complexity going seat Now an be will comfort There of controls other for reality will not change, more going also offices. just post-COVID the can model more preferred a the components you clients is work many do behind to be economic is drive business the utilization. will view, other people increasing. from requirement having the not and therefore, because office the

that able But work-from-home a worked with the WNS has industry structures saying a can influence very workforce long-term as to trends, can I'm basis. You like we talent part-time company a on work-from-home will with as our be to build blend things not which, that. result the closely of outstanding who

geek the We will to economy enable if be able ask you me.

We terms onshore comfort some And yes locations. to in decisions also built to why with back the take run. centers will women the work-from-home want changes push more that potentially that more help in through is as But to the invest see with have in actually we well we expect we And said, right be in order kind grow able part-time. want to as whether and existing business who the as to go to we will then our would work business move will offshore bring the that government clients, to of long of the employees will of offices. dilution or we predominantly Gautam the

David Mackey

the mean, day drive I to end the it's are model. the At clients me. simple of to Yeah. pretty the going

Puneet Jain

was work difference got your sequential a up. Got then it. in clients to we travel transaction that's converge work, this on that the and eventually? items or basis work to transaction-based quarter expect Yes. vertical based FTE-based exposure And two-line it, helpful. should No was in due specific to down while Was

Sanjay Puria

right. temporary is perspective. as some well trend nothing vertical. of And a bit on some the and travel clients' the to that It's specific some as CIS vertical, utilities that's a yes in from Puneet, So, observation from

So on you're keep just what It's the it's a a But we right. short-term absolutely quarter-over-quarter. trend. volatility not having

Puneet Jain

you. Thank Understood.

Gautam Barai

Puneet. Thanks,

Operator

our Research. And next from you. Colicchio Thank question Barrington Vincent from comes

Your open. line is

Vincent Colicchio

quarters? us Yes. an maybe next your top top five growth on client, Thanks. the I'm your Keshav, give several clients, the over you curious, expectation update could

Keshav Murugesh

Sure.

partnership we The commenced discussions also some outstanding. with the all process been have So, has first me of of solid. say clients all for renewal completed. cases And in been about relationship a these has that been spoke cases, and few actually let that this all through

adding one five, of want processes CSO each has to of to even interact our to well healthier clients, who to with of statement opportunity now I having very these after But that, number you go have because know continue community And of build renewals and our relationship, new the as as seeing more is of side. to of who the with is that XX XX that that's a become with the puts stronger complete we because a important these have relationships go where said replacing like top of used and every top the client. actually top three pressure to actually clients, XX, into some new inside else time experience top which good problem the completely been clients, potential on positive So, much the clients to and use leadership the somebody COVID that, we're most top have. COVID, our make time the would to the new this trend. success, this The we're all with

Vincent Colicchio

acquisitions? captives the terms have the seeing of that of pandemic, you in on given issues, experienced are And some side with opportunities some

Keshav Murugesh

on of place taking we about so lots M&A constantly some includes, We've captive that there. two. past in kind That's something Absolutely, these The Vince. deals. are of that the focused Always, of spoken about spoke carve-outs. pipeline we discussions

of CEOs business. core now as client-wise, CFOs on think focusing time have no -- in opposed I in I actually weighing their a or yes, of to managing So advantages and captive again history, clients the found

of will them actually many day. and out came them such companies just even handling Remember, of what's them. So, therefore discussion to is big it's on to I opportunity. think only one like in which And decisions of there's terms before, core time a matter a core these WNS a not what focusing out take of

Vincent Colicchio

my quarter Great guys. Thanks questions. for answering

Gautam Barai

Vince. Thanks,

Keshav Murugesh

your Thank questions. for you,

Operator

queue. in now you. further disconnect. this Thank At conference participation the call. questions This you Thank no for time, we today's may will have conclude your you and