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Accenture (ACN)

Participants
Angie Park Investor Relations
Julie Sweet Chair and Chief Executive Officer
KC McClure Chief Financial Officer
Lisa Ellis MoffettNathanson
Tien-tsin Huang JPMorgan
Keith Bachman BMO
Bryan Keane Deutsche Bank
James Faucette Morgan Stanley
Jason Kupferberg Bank of America
Bryan Bergin Cowen
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Accenture's Fourth Quarter Fiscal 2022 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to our host, Managing Director, Head of Investor Relations, Ms. Park. Angie ahead. go Please

Angie Park

and quarter for earnings and operator, on announcement. us our fourth full thanks, you, joining everyone, today Thank fiscal XXXX

time Head issued McClure, Julie an the Sweet, As Park, Chair you've and ago. today's mentioned, had just Officer; our a Financial you of and news Officer. Executive Director, hope KC call, from the review On Chief Investor release opportunity hear I'm will short to Chief we Relations. our operator Managing Angie We

outline then will quickly today's KC provide positioning fiscal brief details, our for Julie through me and market our for Let and first the of key call. some on provides a statement metrics the and both full will financial will agenda operational overview balance update before an outlook quarter XXXX. our full the with sheet, including quarter income fourth for begin take with the business year results. the along KC fiscal you Julie year.

take then Julie at end your before will We wrap-up call. of provides the the a questions

in our the including on including, and risks not this expressed forth set uncertainties, on matters could discuss those are annual in are cause to, outlook, to factors this those limited results we'll release unknown Form and actual and filings. from and discussed call, news today's XX-K known risks but of subject forward-looking reports Form in uncertainties and Some our effect differ XX-Q business report SEC and quarterly on These and other call. to materially

we the section information news GAAP investors. where believe we release non-GAAP appropriate, our will reference to useful at of We During or financial non-GAAP for of certain measures, today, in accenture.com. website Relations our which measures, financial our Investor call include in reconciliations provide

obligation the update conference this call. no presented Accenture always, information on assumes As to

to the me over Julie. let Now turn call

Julie Sweet

extraordinary value create year. joining our clients, and the everyone by success for We And Strong our allow truly more to both value. and broader all thank stakeholders, around measure us people financial us globe we to XXX-degree delivering XXX-degree for our and Angie, our XXX,XXX partners a our results today. you, results deliver communities. Thank financial shareholders, you people, the

a record few 'XX, of year. $XX me extraordinary In share FY of we highlights this bookings Let delivered billion.

clients representing our compared local XXX million to transformations, execute continue with currency, bookings revenues to fiscal delivered for a As billion greater last revenue growth XX% year. compressed million clients record year. in in $XXX $XX adding we the billion, We $XX of quarterly than had $XX

market significant Xx share more growing market. take to the continue than We

the people more with and and billion development clients. of solutions, across and in and operating and XXX EPS, at ability than acquisitions reflect us of which our demonstrating industry now billion margin expanded have for and year. to our their people profitable R&D balanced Our financial clients serve EPS are We day, our XXX results adjusted our needed are growing patents billion training of achieved compared growth over that commitment $X.X as strategic our XX% We had the invested turning well $X.X patents pending platforms and they business skills invested why including portfolio largest to significantly to grow services our in XX across invest the scale. across and while deployed enterprise. to to this value priorities; our in partner our to profitably fiscal points to clients, basis assets, continuing last XX trusted growth creating relationships by FY client 'XX We Diamond X,XXX; $X.X is markets, every to grow

and both XX, while world. through and our America through We expanding and gender by the our work build smarter, initiatives, local to We more ability diversity around continue an our Top on throughout are world value proposition people promotions with world you, over year, will We achieving programs deliver and and billion KC. and digital a our way ranking financial young and XXX,XXX XX element Latin U.K., creation XXXX. this to is and makes to Most Over over the Valuable inclusion and apprenticeship value and and training around our skills our XXXX. top different in date by prestigious Business to more paths opportunities centers towards our we XXX,XXX XXX,XXX brand workforce future value Switzerland our approximately BrandZ's communities entrepreneurs, us prioritize because partnership for in career XXX% achieved includes XX% Brands direct ages inclusiveness to where results $XX continue renewable support market-leading with on and parity our of proud that an essential defined innovative Global hours XX% vibrant progress many partnership believe supported almost investments top increasing as job XXX,XXX entrepreneurs U.S., our creating which broadly to We in highest offer our commitment our This International, help rank to number and achieve XXX XX% and we diversity, XX. live, to attractive already to unwavering through Youth over offices the on electricity growing employee an we young by XX estimated powering and additional providing including of communities meaningful of women success the the million list, talent. and to the

KC McClure

results all both our creating leadership validation our We and stakeholders. proposition, of results in financial and another ability to Thank our again, value the in consistently our services today's quarter, fourth our of you, on relevance very the for joining the us on our for value were outstanding pleased of which strong with all deliver thanks call. Accenture. position for provide completes shareholder to to XXX-degree marketplace, results continue Once our you to and clients including our year Julie, our

imperatives. our begin position services to publicly XX market, grew currency, again let once basket me industries. XX.X% Revenue growth few in be than by and companies. by refers We markets, points for Operating financial quarter highlights growth leadership margin quarter. basis traded from So of the to estimated summarizing all local double-digit our the our a XX.X%, across three driven extended increase with which more of Xx was the an across

growth making flow driven of management. while to year. investments drive superior billion, strong DSO our by free expansion We and of And XX% in finally, continue to EPS $X.X delivered cash EPS We margin business. last represents delivered people our compared we which $X.XX, very significant

Now turn the details. some let to me of

pleased billion New a bookings of second Consulting book-to-bill bookings with a billion this bookings one. growth Outsourcing highest were a X.X. quarter, book-to-bill XX% which with and of We U.S. very $XX.X billion for quarter. the X.X. over currency, in our reflects of the $XXX were were local were strong XX% record a dollars quarter, $X.X clients in of in bookings XX $X.X our million with with growth bookings with book-to-bill ever including

Taking and local $X.X now and in in Consolidated grew a billion, quarter for $XX.X grew quarter services currency. dollars billion, billion, sales a were and XX% in up operations revenues. dollars currency. double grew dimensions. closer digits local $X.X U.S. U.S. at XX.X% XX% were Turning dollars double Technology Revenues double Outsourcing were digits. XX% look revenues and revenues and consulting in up in the local U.S. strong XX% digits, the our very strong XX% increase to currency. strategy for in

software led industrial, revenue consumer growth North banking was In to goods, grew growth currency, in capital double-digit our markets platforms XX% services. retail and by Europe, double-digit retail driven currency, America, travel and public geographic service, markets. in in and local Turning In services. in consumer and local travel by and goods, and XX% revenues growth

Italy Looking was markets, Germany, travel closer and double-digit in Europe in From capital by and led delivered France. in growth consumer a double-digit country countries, and growth services Australia. in by currency, service. we growth and the goods, markets, U.K., XX% by growth perspective, driven growth revenue and In growth retail local banking double-digit markets Japan public driven was to the

the marketing year. down year. General XX.X% was last compared fourth $X.X X.X% income the year. quarter period expense compared XX.X% the XX in billion basis was QX same quarter was administrative to Operating Moving reflecting the statement. fourth compared and with last income X.X% and a points with quarter, the last for was for for quarter last margin margin, for the quarter the XX.X% same up Gross expense year. compared with operating XX.X% Sales for XX.X%

last fourth $X.X compared year. Our billion, XX quarter cash equipment with XX fourth quarter an from was the to rate last days net $X.X $X.XX flow and service last additions compared of Free were compared quarter year. the per XX.X% outstanding share of the and quarter days billion, in was rate EPS XX% in $XXX operating quarter for were Diluted of last by earnings property the year. days million. effective of for quarter effective $X.XX activities generated of fourth cash resulting for tax tax of the XX Days with

Also per $X.XX our for share paid repurchase billion cash August, total price per ongoing year. at Our X.X of share November regards August And of our million. with quarter, at shares repurchased per of $X.XX the in of In objective compared fourth be redeemed to last over million dividend $X.X approved increase to of cash dividend a billion declared cash of a $XXX paid August XX at for on fourth Board average XX, cash additional $X return balance shareholders. was our to we XX% million With share last $XXX And an year. XX Directors $XXX.XX share. $X.X authority. or a quarterly we billion quarterly to

dollars, aspects moment in Now, double original performance I We revenue, outstanding last in $XX.X $XX new were we U.S. fiscal we pleased added We provided reflecting added significant would $XXX our scale 'XX, almost September. growth million, XXX that in in take We greatly like exceeding bookings our to begin billion a almost summarize billion as We of year. significant per with business over XX 'XX. $XX.X 'XX well all we delivered in a margin fiscal FY expansion bookings, extremely us share XX% of outlook what our year were to record reflecting extremely including Earnings people, XX% range with in over we FY of currency. reflects higher of particularly were at our and investment year FY for which guided growth ability in decade, 'XX. positions clients adjusted with hitting which with a $XX.XX, XX% is growth reinforcing incremental quarterly our growth over the the scale profitably. of our grow within highest wages. billion original Revenue our continued in EPS, were able that a point local 'XX. XX.X% deliver to pleased reflects basis Operating to

As net strong reflecting a on cash cash last reminder, an investment. guided of billion to billion of of we to XX X.X. shareholders, a to year guidance regards our earnings was And acquisitions. free income Free objective our returning flow very flow to significantly exclude above gains for range, adjusted with across by capital ratio $X.X approximately while $X.X ongoing to exceeded allocation $X.X original our return billion to cash we original cash investing shareholders

excellent preparing sustainable estimated turn results, we a people young these the and to the our skilling more by partnership are our to stakeholders. all addition change. to for XX,XXX value drive In are environmental exclusive XXX-degree for with social me an we let Save future Through people creating and financial Children,

creating, on please each Accenture new information are to the information we value more XXX-degree quarter. which XXX-degree For reflects go experience, value reporting the

again, me a let now are we and was turn in it on now So year 'XX. fiscal 'XX back extraordinary delivering Julie. truly to And FY focused

Julie Sweet

being and it best And growth, by to them anticipating and or understanding clients, technology. all with with both close optimization succeed solutions strategy We for businesses, KC. you, cost whether helping starts from the their their our execution needs, Thank to for resilience.

operational capture demand With depth our able are existing we needs the our while the with us give opportunities organization, I serve breadth excellence. incredible clients' capabilities, our and being we market new laser-focused color on to own positioning and are some our will changing to of on all pivot learning combined necessary, as seeing.

year-over-year against increase all, we in environment, of First local backdrop XX% new of delivered $XX.X QX, in a currency. the bookings the macroeconomic of current billion in

themes: technology, cloud, markets which lead fundamental affected are two strategies AI While core. security, common data, industries strong are digital differently, its and to are to being particularly and there all

often Cloud the billion growth. is First of biggest mean Our cloud business also services $XX are Managed of Companies with spanning faster These move seeking now bold XX%, multiple driver are because frames companies enterprise. the the same the grew leverage second parts our execute on they time. to platform to across time theme. and programs compressed being accelerated the at talent, the become our digital and turning to have enterprise excellence seek and increasingly of Accenture strategic transformations, as and

in unmatched and capabilities coverage. terms depth are and We of industry breadth of

We continue number our to the forces have growing revolution, in turn talent, Continuum of companies harness tech of the for key identified next embrace Metaverse which five change will and enterprise see the decade. a Total need that the ongoing fuel to sustainability, the we growth. reinvention,

Let me bring demand to this life.

First, reinvention. total enterprise

We from to achieve their resilience optimizing our building their are efficiency growth every operations of agendas. clients business agility, transform technology helping to a core part to digital and with accelerating

is manufacturing, industry Unilever, shifting to scale, and their adopting largest services of changed the and a transforming for digitizing to have five ERP delivery migration technology solutions to that that ways profit the distinct a business business matrix largest growth by stages, parts migration and leading delivering is Each are While total from an of They is goods being automation, multiple from fully their delivery working standard cloud there strategy. still world's of early around of the it in their to business group begun technology cloud with a and consumer we support have model to reinventing entirely to that shared growth groups. cloud systematically enterprise one strategy, industry accountable moving at cutting-edge setting and are to globally. their responsible new models. the is company business enterprise structure new the reinvention. organized Together, reimagining example new companies leading companies creating

to we the with the help BXB and shared front-end the cost partnership months, factory, we and industries, markets commerce helped business are the often XX operations small build and seven leader clients boardroom in simultaneously scalable increased we Accenture understand markets in cloud-native, platform business grow we data are to across team. our drive resilience. growth, of reduction implemented GM enterprise campaigns and relevant and connections emerging as just seek millions to by We Now will the in called uniquely are the our across to the retailers Because we prosperity. Song their of to Company to managing helping them the analytics, a as are create marketplace they delivered what unit that CFO and help powered in launch a the efficiency, positioned advanced back-office

view company, helping world. the demand manufacturing across intelligent example, -- For all frontier. we people an to will real-time and FY This for performance our become and are journey. decision-makers transformation market Company now and will navigate increase Lupin platform and in consolidated Company's digitizing data-driven supply enabling business Limited, a the capabilities, XX around integrated global next health are its billion. this XXX new innovation to unlock pharmaceutical by to visibility to will accelerate and affordable efficiencies about into global data 'XX the research care have X chain product which engineering digital A speed data facilities. provide and of help total operations industry the enterprise see grew manufacturing We enterprise to $X is XX% digital Industry mission while revenues disruptions and supporting continued countries

carbon the digitize construction of homes. multinational X power EDF, provide company are for station U.K. utility than French We million energy helping nuclear that will a low more a

information Digital parts be supplier digital used a enterprise visibility consolidate cost team pages digitized guides. all will plants, dashboards drive provide millions driving paper based to As a blueprint factory digital AI all by efficiency. cloud across of be secure Construction model EDF methods across construction will transformed part creating from our for Industry systems and and of of will automation and efficiency quality. that areas total a safety, reinvention, on data identify of twins which digital processes real-time X help power and will global infrastructure,

and We FY one capital mission, helping its digital achieve of accelerate help capabilities in largest cutting-edge construction EDF cloud, our of on are net-zero. and leveraging to AI in the our projects our Europe fundamental Britain services, are expertise deliver nuclear growth access $X and our digital now clients And enterprise digitize in because with total cost. billion faster, business 'XX to for they our reduce help talent operation a reinvention clients XX%

a with significant to all processes provide of our are real-time implement manufacturers we will and we example, efficiency digital drive and analytics important managed accounting. threat to manage For will be security expertise savings. finance security response as our decisions And XX% as core, and underpinned and decision-making in our billion user capabilities growth, revenue new clients collaborating one ever, more data security finance security deep than commercial platform world's from and With their cost experience, critical the and to independent vehicle better largest develop risk while widens. With the build $X by reductions, respond an services, increasing improve leading our digitizing our to to SynOps. to to Automation, integrated services landscape are clients operation, to leveraging as functional over in continues incident identity intelligence

operations managed with Asian working detect, are services, threats center global and XX/X. solution deliver security security monitor conglomerate to and to a security holistic to respond comprehensive an We multinational security

emergency detect and against than This detect will to hunting and We to will respond perform threats, techniques. like monitor and devices continuously also cyber activities manage threat tools regular to end-user attacks, false new XX% total its to ransomware malware hacking minimize for with cyber of incidents. business threat cyber by deliver intel timely provide and less and X% reduce units detection alarms defense to will incidents defense, proactive

to five from total Moving other enterprise forces. the reinvention

talent. Next,

careers unlock leading Sky, of We media its human help in experience The a one access anywhere to the well as management companies as data dashboards picture learning at to of us at resources them solutions potential integration. compensation, to the onboarding them real-time to modernize the levels. collaborated Employees look all their in people, and and multi-platform Software-as-a-Service and even functions helping and place. management be payroll capital work access, full human solution to experience one of performance Our era management empowered cloud, the markets clients perform solution, employees in and higher Europe's anytime, By benefits self-service will hybrid with and recruiting talent. have entertainment create working. and and fingertips their migrating all build in operations across to to of from employee their with all supports

With to decade IT sustainability. in 'XX, revenues billion $X its climate and our will customers in Company's tons and data, management transmission clients FY connected firm we for cloud, the number as to collaborated by need emissions total with reduce communications, such of sustainability reduce capacity in of with X% technology on a Now, their IoT. increasingly control come. by equal and XG We devices. and XXXX data to emissions AI, of Switzerland's million higher X and These carbon to remote emissions by strategy address the faster one Switzerland's continue entertainment, will Swisscom, believe services technologies carbon leveraging help and

strategies Scope green technologies with also their customers larger help products We and a number positively to of helping emissions that and X provide services the allowing can from within reduce Swisscom to to customers, choose impact the Company from. further are carbon classification the planet emerging explore incorporate

tech ongoing revolutions. to metaverse and the Moving the

our metaverse-related ahead leadership invest experience needs more in to a decade than of clients' of have and continue capabilities. We and

floor, it the clients use days. we In XXX,XXX to using the help is new we Continuum greater over of transformation, wave joiners our Metaverse expertise we our possibilities digital and expect and early to Accenture's experience still onboard provides in as believe end and fact,

marketing continued leveraging we able in-person and Japanese leasing, the construction, recreate increase to equipment with transform to while collaborative model Corporation, costs throughout will room. touch visualize the the real property environmental revolution, and the are points digital purchasing ordering such construction and new estate and cycle through options For help helping a computer-generated businesses impact for the its our continuous continue attract as reducing business Customers ongoing more model of to twin will retour. innovation of example, walk-throughs be Tokyo operation greatly the customers and leverage technology create sales develop leading appliances customer the its and life home experience renovation of buyers to tech different Company retail online, on and condominiums focus online future. future, invest Into imaging we real including to company, and And Land furniture improve will removal services. the home estate the we the metaverse our in with the and digital

space in to Pixel example, QX, cutting-edge earth technology. imaging leader a invested you, For in in we Back KC.

KC McClure

Thanks, Julie.

turn outlook. me to let Now our business

fiscal expect 'XX, of we to negative the For approximately in compared range the an estimated X.X% This of the FX assumes and billion growth first quarter reflects to quarter $XX.X $XX.XX of will local revenues be XX% of impact 'XX billion. first to in currency. fiscal to be XX% the

upon how For over trending the be last we 'XX. the X% been FX in currently 'XX, based will fiscal few assume of the impact on dollars year negative compared U.S. results our approximately fiscal the to rates weeks, full have

XX% 'XX, we the contribution growth in to over fiscal For fiscal about revenues local to 'XX, range of the of which X% be full an in inorganic currency our expect X.X%. includes

year we expansion point XX.X% be margin, expect fiscal to basis 'XX to XX.X%, XX over XX a operating fiscal to For 'XX results.

of tax compares to expect XX% range effective of be our tax XX%. fiscal to rate effective We in an in XX% the rate to 'XX. annual This

per share, to fiscal the diluted expect growth we full year to in $XX.XX fiscal be of range X% 'XX $XX.XX or over EPS to For results. for X% earnings 'XX

expect flow and operating billion in range we to to billion the $X.X additions and 'XX, to be range be the $X.X the cash approximately $X.X free $XXX equipment of property flow cash to billion, in $X million be of For full billion. fiscal to

free a net cash ratio of flow flow free X.X. guidance Our reflects to cash income

open share repurchases Angie? to can as our committed at up of return to and a dividends so Finally, it we substantial your $X.X returning that, With we billion take through that shareholders. we to let's questions. cash remain portion expect least

Angie Park

follow-up would the Thanks, question provide those one call? Operator, question. to that KC. possible ask instructions for to many us as a to you allow to ask I would and participants you as keep each a on

Operator

Lisa [Operator with go Instructions] of come Please question line MoffettNathanson. Our ahead. Ellis first will from the

Lisa Ellis

here. stuff Good

Just the about a broader how, question beyond outlook 'XX. fiscal FX for And underlying we've outlook been guidance and on macroeconomic sort your the of in you bit what elaborate question at is you if Can further six a sort rising embedded all of points long the maybe dynamics translation. have that all, environment rate business? what of seeing are escalating year you the inflation seeing affecting of above

Julie Sweet

Thanks, Great. Lisa.

me color bit yes, So assumptions. guidance let little a you our give around of

So range. our inorganic 'XX, to range our And growth of compared upper that of to at X% it that's would organic that contribution, we includes X% did and for the XX% then in X.X% 'XX. end about revenue about fiscal X.X% represent

seen, will most demand to And X%. our to strong continue the estimate so, Services for show for the as really industry continues you've our see services, be we about recent for And Lisa. growth IT

estimate us not directly And our take economies correlated our GDP lower for latest But are XXXX. GDP, same most at range, do. of while largest growth So things the you same to world's that anywhere we in will it show the read the time, the with XXXX share. than in is continuing

at part range. our double-digit growth the for calling of So top again, we're

significant our on Another us business. current year of yet which would top have $XX adding again of scale, growth, double-digit billion

Julie Sweet

what -- -- affects a little we're what Maybe the think right, and this quarter, when Lisa, industries need, our about I'll is I that bit environment add, so about last -- talked macro is different is do this right? about really differently. thinking we environment, So as clients

you've really to as also are those that see the and uncertainty on increases. tied cost. to you the inflation who But So, focus chain continuing got disruption supply the

what resilience? saw to there what's days, makes in through okay, So I Can the the Is cost XX for about, XXXX, think mean really we've the growth very to last early the to GDP we pivoted more example, help behaviors? for do where take over require to do think as all and we push do? learning our change a how of lot using environment that changes to you if so cuts clients really does I that you our environment the the cloud that pivot. the estimates around about of need to, what you advantage my And think clients deeper all XXX we it's continue about days did of can we it similar to pandemic, organization. And in

that's So focus. the

So always our clients. to serve opportunity an better it's

Lisa Ellis

follow-up of the X.XX But realizing of of it out And consulting? was that always extraordinarily color. into Great sort shift was call vagaries an on Yes. color or there? quarter the of the kind then Okay. Or is to just -- bookings, overall quick sort any is unusual mix in obviously just strong, quarterly that outsourcing they're lumpy and less fluctuations? this number Is and quarter-to-quarter there there continuing any book-to-bill.

KC McClure

Sure.

the was our bookings second really good And driven about feel we quarter. ever our in by was about It it so mentioned, also this Lisa, highest our bookings demand. I really you as liked in What year second QX. being highest broad-based

services, are billion and our $X.X $XX I say with and So and the this that was we as we those peel we record that seeing again And strong second year. with to But lower have back. book-to-bill of than billion, almost And we last record and in we that will a going our good bookings. seasonally all of even a more it what best did for quarter record. year, pipeline the continue all do, see across into one outsourcing often do We markets our bookings we in had dimensions business. almost

Operator

Thank you.

from ahead. with next of Our line question JPMorgan. go Tien-tsin the Please Huang comes

Tien-Tsin Huang

larger the are about in deals I'm Just you it Lisa Is 'XX, consulting. fiscal book-to-bill relative overall so your if tell that just for shift much or And tacking outsourcing more you have larger to or here that in way on even improves does deals, client what with changes of this out given in priorities? curious to anything should visibility us backlog. the the tell

Julie Sweet

don't I -- we've I larger mean, got mean I Yes. obviously, deals.

on what You you And how mean, see more making around things we focused your good do are have opposed larger much, pilots to they're it prioritizing what certainly, see different time question just and -- right? that And getting underlying to because actually see you doing is are what than is having larger how is. of they on, just they get we sure is are value, teams I deals scale. take if -- X,XXX remain more that material, actually leadership as visibility -- I think sort clients we about just recommending deals so focused to the what and that business a are not where so think can we

or we've parallel. CFOs programs today got either a about deals, September lot three have to we transformation or going focus call so actually, end says out that start transformation now reinvention, they of systematically a XX% right? it's of lead on to is What and that about does we're either tied the more some clients total research coming of what say talking And enterprise And larger right to in at to reinventing.

the bigger And you've really impact larger that got early that that to obviously us do is does try is which for it the convert the of We'll lead do programs. is what systematic probably but so, companies does to those differently. we've And since to about revenue less visibility, what about been and that talking more faster transformation. days mean pandemic,

KC McClure

there's in outsourcing Yes. compared -- just to compared terms of And to work bookings look type maybe really Tien-Tsin, no type work in from our this last few we add slight actually difference, this closed looking an out year over type of in year at right? have work if of a our the years, consulting I'll percentage what We uptick versus history consulting just you outsourcing. of

no mix. there's So difference real our in

Tien-Tsin Huang

helpful. No, good. Very that's really

margins, on mind. if my Just -- you follow-up don't the on

like think balance? growth know year. you good billion inorganic, to it update a I First a back cloud inorganic Just investment. I'm the for investment out in thinking of you this growth wrote $X lower investment was in Cloud got But the think did, priorities, said that. there it's seems It about on And versus year. down, I organic I terms you any XX% of wondering, I return And I -- the a think assumption

So at in like investing. think that organic yes, about the see this more versus we inorganic cycle? point just So, investments

KC McClure

Yes.

I'll then the to inorganic over more So, give to and point, it some take I'll color. hand Julie

no all, fuel growth. continue first our strategy, to So, overall allocation V&A to right? change So, organic to will our there's we use of capital

done And see years. so, in in an Tien-Tsin, is previous what zone contribution. the of It's X.X%, inorganic we've you'll the generally

to so in to our also business, our to proud important really that how what terms a where that because I'll right? in And And it's about of think relates year of with next wage seeing of we we're that talk in really points also how chance particularly did were to take inflation. And expansion. scale past we year what basis to Tien-tsin, 'XX, at how business managing we're people, year our this in and invest in continuing this maybe point accomplished XX just means I out our invest we're going profit we

So as continue look we next through invest expect to to we business. year, our in

We did we on geography It's in 'XX. the pricing improved bit. compensation to can And a past scale. navigate inflation this I that did know industries which all year wage pricing, across of point by And our P&L like with a globe. by we for the across all lag focus to it's see to we want out vary that just benefit But in expect us, we going will and continue.

that And that basis us and making go as would throughout potential expansion I going XX to variability for to quarters XX invest year. more points to our the basis expansion. And 'XX bit in how on land mix the higher of the making like -- that while we're we this anywhere to happy that way for really in of use contracts, higher I'd a op investments the we're on throughout in it's But say on fiscal within based our the to investments the technology year, XX of the of there's points have a to people. of the so margin changing more we going year to we're so XX our year absorb with our that, to really investment people organically do again, all next profile. And important continue we're be

Julie Sweet

we very levels is would just emphasize, success been Yes. that continue to it big And higher a we year cycle, invest. through I for it's invest Tien-Tsin, I reason at to every -- commitment. is think believe our continue -- and Tien-Tsin, every business just to we And important in our that's our

Operator

Thank you.

ahead. will next of Please Bachman BMO. with the line come Our question Keith go from

Keith Bachman

so particular, you tremendous there's I the backlog if given conservative. your constant far, outlook. even runoff directional bookings. very currency, remarks, on you seems otherwise, touch revenue wanted give to Julie, bookings In with could to or as start you've reasonable, record not indicated on this guidance understand you guidance comments a the if had year. any prepared in of bookings provided revenue you the I ask booking -- But the in the

clients You're economic facing deeper a facing -- your are challenge.

book-to-bill any comments how from should be growth. year? it give thinking whether this could you there on could we growth there or seems is different be bookings trajectory or So, the parameters revenue like the the any about Because rates

Julie Sweet

Well, I'll I'll start, and add then KC let on.

KC McClure

Yes.

little how of a with start year. see bit out on actually more I'll maybe we the Keith, kind breaking So revenue for color

you we the bookings, a about when think -- that We been in remains to We embedded consulting quarters be So view be from XX% period look for rolling should our high don't outsourcing, single digits context work while the which book-to-bill over for that. same. X% remember gave of overall, bookings out double to are, year digits. to what you full has a digits. the guide see type And we being four FX X% to be the one. consulting over And of for growth revenue do to perspective expectations our revenue we 'XX, within time to see double see of headwind we

Julie Sweet

helping So is just industry. whatever right? environment is in, Great. our say remember, and that different focus depending which within -- would And -- your is on they I very Keith, what our are clients operating create that value

are to right they're because tough focused cutting because with COVID, ever behind one So They time in went on providers U.S., labor of there. they're sort they the cost now, like the investing difficult they're they've most pick markets a a digitization, right? through And before. been looking and now they're reinventing have completely about that inputs. on so they difficulty facing in in had That disruptions, everything years, is like next for right, the few automating our a this resistance Unilever, And supply that thing, with journey who's a in we talked company to global dealing cost consumer script, of different right? chain to

the we is using that we in that is difference how understanding succeed so, to depth the SaaS We're lots what now their to for right, patients providers are we've been and retail, in and years that solutions banking in industries. doing other from accelerate our to industry other by And knowledge of industry. of because connect they're doing implementing now continue had in

close be on that stay So to that need. our that year to our continue our are knowledge, to for what we reflects use and confidence deliver to clients they able the outlook going

Keith Bachman

Okay.

we a and guidance than continue to think free modeled then margins is is move certainly lighter your higher. had had flow My Okay. cash flow. The free modeled Street what focused follow-up touch I on cash

for will floor. So And might then just see out Many you that the what and takes I to puts cash year. the the call was free with want I the wondering thanks. flow guidance

KC McClure

Yes. Thanks, Keith.

set always the at know, you we ratio. So, with guidance, first as start we our looking when

have that guidance income $X.X free our So cash is cash a very the we free billion ratio. flow flow strong to ratio in net

with that. So, we're happy

as a impact from assuming we that it's And the year uptick the the to will flow not X% our bit with impact are know, to obviously current guidance in cash delivered flow for us that's And We then also going as start FX of guidance an we are unusual of we free cash allowing a DSO level. that where our range, free in at you of also, well. previous guidance beginning are have below the year.

Operator

you. Thank

the of with question Keane Bank. next comes Our go Deutsche Please Bryan from ahead. line

Bryan Keane

are the about folks macro. a lot Obviously, of asking

So your changed that's and how curious it how influenced how doesn't has over up would curious just show results? last just for So in months you guys frame that? the because three macro business you really the much

Julie Sweet

guidance days KC earlier, decreased. as over account Well, XXXX current all last estimates our for sort for have year XX as which, we GDP, into the know, for takes the the said of

a consumer to is new clients we think change our let's there we good cut now, but one do marketing I'm what about, how more cultural we to And growth, about and think because environment they effective that consumer them help a where take into really consideration. a do, the by execute catalyze How our talking of ability transformation? they goods you goods things. well, that where to So, company. to as areas the And behavioral Are faster need able get think do right? a marketing see business way, our client helping biggest and is not and opportunities? to waste about affecting spend we're for be

guidance a obviously take it. as it's account are but the you we And for into where seeing know, we reflects one not So our otherwise, that's -- environment. one, economic

Bryan Keane

concerns local the growth up from in in all putting the Yes. looking you've just Yes, around was Got have It amazing to just pretty doesn't at I currency, much a It's it. up. number. seem XX% given rates been particular, come Europe, Europe. off

Julie Sweet

our team Yes. We're of very to our are really they European proud because close clients.

KC McClure

maybe, Brett, color that to little Yes. on And QX. a give as it bit you relates I'll of

that lower that all first gave. be for type S&C, revenue when includes I we and of look at high within Let continued the have to little first consulting growth digits, in we the the that markets Within on a in me the demand for a the for digits. QX, give single little see -- we and see a and you, to portion we'll that quarter range we we consulting They work that back the bit consulting XX markets, be expect a back strong all peel XX% double range have quarter then And outlook too. XX% low XX. the of the consulting, to systems integration, detect Europe. we within potential the would double-digit you bit And we see for peel revenue to also single-digit to have

Bryan Keane

as KC and on a obviously that's you just visibility. thinking has at just we look away, XX the the visibility quarters exactly little follow-up, thinking QX, months No, out rates, of about figure get the but How business. all, changed almost bit out on at on just it's to Accenture? further in visibility if then for When probably growth really a helpful to quick the right all, hard so it's

KC McClure

say, what than year, we time half have in it's of that's no honestly, is, Brian, less the the year, the at we we obviously Again, this always year. the talked the than than and mean, way quarter at the it look first We in experienced back the half on would looking the no how -- every lot of just the different terms a market. I of certain every about But of that year I back mentioned year. we always macro half. what the different first it's at

Julie Sweet

and year, know about in And they'll calendar still we'll that more of clients and their -- January. set clients our most budgets, as are always,

it's So the really same.

KC McClure

It is. It is.

Bryan Keane

great. Congrats the results. on it, Got

Julie Sweet

Thanks.

KC McClure

you. Thank

Operator

Thank you.

next ahead. Faucette James Morgan Stanley. go Please with comes question from Our

James Faucette

Appreciate all as commentary the usual. today

cetera, where and Looking supply in of And is you delivered? at strategy where talent how your around et how kind that being services manifest how hire, of of itself cetera? own et employees, the in you're the priorities hiring, how client your and now kind shift are your influencing does right managing pace

Julie Sweet

over have we continue years, last and Well, demand. of -- of actually, deep course very And as you know, competency couple our a in to innovate. the we supply the

integrated will tower in type We skills earlier control earlier the of skills. able where what predict needed and our sales is talent we an to be incredible cycle, have and that call what

is technology right? technology. saw needs. you the to mean I business, as with there, our understand continue supply And talent skills really so chain it, not their is core clients other for is results. predict of see to us, we're in demand mind, just strategies ahead incredible, digital seeing all we're in forward. performance All the And our fundamental keep strategic to this And that what normal pleased to And lead only keep super right? able build and but as our moving that,

James Faucette

How to just And around of And of versus progressed. what should think tone have cetera? have being potential those uplift wondering how outlook in? you how great. then building formulation et about conversations been? pricing of what's That's magnitude the pricing tenor are we margins, your turning pricing, revenue built and Or into to from

KC McClure

I'm I'm earlier, we've talking about but me let that I pleased about see pricing remind in So that the just my I'm sold. I'll And pricing. the that we benefits. really work when improvements are we've on And it. you to the in answer, talking margin just mentioned this continued seeing repeat

pricing to 'XX. And improvements We are through seeing P&L. we the fiscal in into focus year on enter our as continue we in benefits come

made. So really we've progress pleased I'm with I'm the really

Operator

our America. come ahead. line will next Kupferberg Please And of Jason Thank Bank from go you. with question the of

Jason Kupferberg

in single-digit I your on questions I comment low one the up prior to -- you pick consulting, think said around strategy wanted QX. the of KC, up just range in and on

year 'XX? that is reflective full average just corporate Curious the same discretionary of services? growth-oriented range nature of And So those more fiscal nature below anticipate kind the and level, for that's if you the kind of of

KC McClure

Jason. Thanks, Yes.

I And less in S&C there's of talked QX, it's Jason, yield, mentioned just a does And in really lot a of focused compare. throughout simple of a hit we bleeds later the essence -- got it our revenue really a then in has few terms that different just deals. the is tough and that inorganic part. less the Julie lot In S&C as also a things. Two, One, transformational larger on -- practitioners some really year. about, are when

Jason Kupferberg

other expecting of like of some supply a expecting at there for QX. attrition fiscal off just and versus as all? tech the for taking metrics parts wage some not or is as across layoffs of Understood. what side 'XX to the looks what broader the Maybe Okay. that inflation some pressure in XXXX industry, well supply relative whether you're in to the turning your of wondering second. It you're And QX unchanged was

KC McClure

Yes.

the Jason, with a the we pleased I'm into start, little FY we mean were And able we part. that grow wage continue, really we scale I'll repeat, I wage just managing last do earlier, expect at 'XX. way -- to So with to and bit in have the inflation we our but guidance. to had said as while profitably inflation factored

Julie Sweet

skills that because both core would are the say companies in just competitors strategy. by look, as at I is our you of technology as And demand well Yes. technology to

continue this a And you us expect XXX,XXX and that market, really continued so, despite we labor because year, to as to people. market, added have know, we're expecting tight to excel we last even

I -- the there fact much. in has to think, going some markets I really, that layoffs isn't So, don't change been certain

Angie Park

time we one will for question, and have then Julie call. Operator, wrap up more the

Operator

go come Please that Thank the you. of question Cowen. from And will Bryan ahead. line Bergin with

Bryan Bergin

and how I wanted just expecting second any are to the And to across trajectory Cloud sense priorities building year, uncertainty? Next a Just are double-digit of outlook. half range, about given a more exposed growth uncertainty? the the strategic potential or growth? thinking about 'XX went First curious half little Song So start on hold the slowdown just the and then Can and bit forecast. to those you within just the significant you're in give just a you you that second us how on fiscal

KC McClure

Yes.

we maybe have with I'll start just So, outlook that read. overall the

that that. You see we already X can gave on I to started the with XX. color

we I for like growth. we'll and of continue to strong what I as that typically guidance and shared. we to of within I've of any than -- mean as obviously, Julie -- year, 'XX. we at demand what view start a the outlook mentioned, already through our technology don't like And areas on the progress technology. looks in that, we give really XX% rest really XX% terms mean, that, guidance than And have So strong give see other we FY more in revenue our of continued do kind

Julie Sweet

the about and the think anchoring fiscal longer and on Yes. this near decade. next term, that the for term And thinking important the both year of we just forces always five are -- change it's I continuously

of is talked about enterprise about making reinvention, sustainability. we in made getting talent And so, our enterprise of carbon We're onboarding, those the the today. tech already then Intelligence, that's Carbon but which leading and ongoing total lots great strategies. we're consulting on revolution. to the around The small We own we're net-zero a just investments Continuum, Metaverse user lots all acquisition making interest, and way and investments

about that's as think we you so right, why next are and our we looking see results, tomorrow are And the really investing over today the at demand decade. that and

Bryan Bergin

Okay.

on just had on like XQ close initially looks than it it then M&A, like anticipated. you in And more you looks did Okay.

So inorganic M&A should think the the X.X% how off 'XX contribution? And in the how the start spend about do you year for fiscal planned in outlook? What's in underlying XQ? growth assumption we that just then

KC McClure

Yes, sure.

'XX last basis. this we because to get done because spending of fiscal to always So in inorganic to weren't going did able timing. end year that full sure of the a you're approvals while outlook And year up year on the right, were you'll of that for regulatory that, we billion 'XX we're continue see $X.X we provide the the some

do We're So, that it able we also a X.X% allocation to can by into every we'll to and to continue the end and year. again it that -- can of really report the be by is quarter don't not not really capital that amount provide going 'XX, -- to it the full as lumpy. quarter. able see year, just because be because vary go we'll we We're be you'll

Julie Sweet

worth Yes, last large QX, in it's which that Umlaut both Novetta, had and reminding were probably QX. in, we acquisitions come very

everyone results driving too. that's of good remind just the probably So to Great. QX part S&C what's

helped an some the our that do to lead who of speaking see transparency Angie's And has mention outstanding to want particularly promoted connection. already analysts six times years, been much incredible technology been to through we but of for we're extremely history before services chapter really us for hand, I excited all from start the know grateful Angie for incredible career. most are our our has to this commitment of I in wrap investors CFO past Angie how absolutely IR of Head what steady we'll role, So the in business. how turbulent she up, and an the Accenture. and has her to of Park, her they've miss her appreciated been next has know Head the I and Investor Relations become been has

O'Connor Investor many And very Relations. thank our years Head pleased am you during XX got So finance experience. Accenture. new held will Katy at Angie. to She's who her of also roles much, welcome become She's incredible I

and please doing welcoming our want of all for closing, So Katy getting join day. directors days to to forward me what know our in to every I know managing ahead. I looking in you do she's of and In thank all people again you're the

and you. in results even of and shareholders 'XX you your to trust have create Our thank XXX-degree continued importantly, for very our people, strongly into to And our Thank actions positioned be 'XX very all going value. more and us our finally FY and support. FY

Operator

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