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DAVA Endava

Participants
Laurence Madsen Investor Relations Manager
John Cotterell Chief Executive
Mark Thurston Chief Financial Officer
Bryan Bergin Cowen and Company
Ashwin Shirvaikar Citigroup
James Faucette Morgan Stanley
Ted Starck-King William Blair
Kyle Peterson Needham & Company
Bryan Keane Deutsche Bank
Jamie Friedman Susquehanna
Call transcript
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Operator

Good day and thank you for standing by and welcome to the Endava plc Earnings Release Third Quarter Fiscal Year 2021 conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. Instructions]. [Operator like Ms. conference now speaker to hand today, for to would over the your I Madsen. Laurence go Please ahead.

Laurence Madsen

conference Thank welcome quarter XXXX to operator. Endava's you, Good third of afternoon, fiscal everyone, and call. year

call is a this As being reminder, recorded. conference

Joining Officer, Mark Executive Thurston, Endava's Officer. and Financial me are Chief today Cotterell, Chief John Endava's

to begin, reminder our we Before quick listeners. a

which ability forward-looking the benefit our year today's regarding the QX forward-looking in contained should materially work materially transformation forward-looking of potential economic that to differ medium-term anticipated performance. and for that XXXX future statements regarding reconciliation during or digital and remarks Please include results Actual no differ actual Endava's to measures circumstances as statements, important and and in present Form A the for any results considered annual of forward-looking both could year IFRS statements. an our expectations of COVID-XX and to this speak date to such from Risk to from the more respect XX, statements. Factors as which materially execute or timing you client these intellectual subsequent and reflect statements today other With the press those Securities to opportunities; during of and be the from and uncertainty, our can property on the with our existing the people; ability are near those our with our discussion statements. industry; predicted of XXXX, included the for These is for this uncertainties expectations replay forward-looking refer link the including expectations full impacts Exchange could contains A fiscal results the by non-IFRS expansion of many with over implied cause to certain contained may factors subject Please call financial other as provide I'll September will risks demand XXXX, fiscal pandemic section undertakes to not Our cause obligation there. transformation events the made call our timing required John. or the revenue be call today's global company objectives; sustainability clients speed; release, our differ on as to in and expected call, results leverage XX-F to businesses and growth, Relations by regarding our filed on Investor therefrom; guidance expected turn our update of for Also, associated to deliverables actual find to conference available results future law. well only to effective of cost greater a them to our note services; arrangements than the companies forward-looking we'll and of our to report also that to reported earnings IFRS statements and website. necessity events of indication digital Commission non-IFRS extent ability including measures. on Endava's that,

John Cotterell

XX, here unusual financial XXXX. staying on and business update to you Thanks, us all do ended safe times. March be like all that And hope pleased I for to the I'd you're healthy thank three We're an and provide Laurence. to for joining these months today. performance in our

many been gradually vaccination lifted countries. globe, COVID-XX Now, around restrictions is yet not is underway while even life as lockdown the campaign back normal in the to have

seen GBP But XXXX, wellbeing and We a even communities live fiscal the quarter same constant as in profit solid context, currency with which in pandemic ended of in and the countries prioritize a the revenue our work. they we've this to people XX.X% safety a in continue the and We for of We've year. of for adjusted year-on-year year-on-year year XX.X in period in affects representing is in the with we and the period increase the GBP representing the prior in GBP XX% had growth to that Endava of business. million, demand heart the the grow year. verticals. from transformation XX.X in period prior our And XXX.X regions strong an world million of continue seen for does same million, million changes services. how all at significant all digital QX from our XX.X GBP the this

growth once our quarter. acquisition driven the both the revenue existing during of clients strong of was the for and ones new expansion by again Our work

We these year-on-year with the relationships broaden end accounts revenue XX% X to client clients ended to with top GBP up our active XX% increased paid quarter by XX.X% above as the the deepen our from year, period year-on-year. continue in prior XXX the base from same at revenue from clients XX we year-on-year increase. large clients, us who continued Average and million and of grew our XXX a

in continue we of XX in number period per this same category, last a XX% with million excess the in paying representing year, X clients XX increase. to increase who Additionally, the up year-on-year GBP are of us year, clients from

us an of realize effect they accelerating This work starting client the a business the see cohorts. and these large on growth scaling trend or engagement of concept We with as driving is new benefits. ideation clients small then in to proof continue

services. out couple full quarter. range the On our trends this a lot see side, technology stand across we a of technical demand of But the of

this Digital like particular industries. quickly mobility, range the believe platforms. These API's domains platforms in owning well of can meet established and well-defined that to emerging software accessed partners. need that extended for and and be perform demand fintech functions extended there are a by both are across and applications in digital be is a organization business them platforms in both reliably by we cloud allowing to we're the First, continued native in domain, external positioned to like industries demand and

services and in these engineering as rationalization other what view We is well as particularly strategic firms, of modernize The to the perform demand and organizations. of financial and the large modernization, in application to modernization. how provide areas transaction-based skills both payments second for in the trend

the Now, been doing create last delivery to some quarter, more make client us efficient in I explained over work of last we've years projects. few accelerators the that

this a systems One including accelerator code It issue in of analysis an that from who inputs, that I'd source and management our and metadata change of service for library metrics highlight patterns years, quarter to surprise analytics systems worked extremely generation software as software the of knowledge a spot characteristics hidden software our the such It sophisticated range systems, dependencies, Chronos. from of producing tools. current developer simpler like in tool such JIRA, team. uses and like provides on technical of as behavior, is problems analytics that control these the patterns is people software, called anti-patterns that and to using other trackers gaps existing insights Git, software underpins often and

our do of been to generate last this able were do cost more a We complex we're Chronos effectively that has of clients' analyzed without few and able to enabler this to The Chronos And understanding dozens us to us systems for faster quickly key rationalization the application years. than deliver and reliably. over tool. helps systems and we programs with existing modernization have

the me about. care been Now, program around at We identified a core bring us we we purpose life business Care deeply to it Making always We this world to Endava's our areas sustainability the personally. recently has positive to our and means and launched heart aim capture lot on key to values Mission. our a five mission. that impact of

people them can to that best we as our enable First, the be be. they

Second, social which our and we operate. communities the contributions in impact to

Fourth, approach innovation protecting provide and continue planet. the demonstrating as solutions. data environmental in we and operating part as and we ethical play secure Third, to our our finally, our integrity responsibly And business. smart impact to

and to documented passion understand what area easier we and about Now, what this all our much clients to in areas we're do other we've across for stakeholders make captured it. it doing these and

people, encouraging of leaders, live At panel to women in two recently Endavans empower As in We our Week we our inspirational for their a locations, a program of together XX% across part that our Women's Day continue Q&A participated impactful industry women workforce. our masterclasses our from and held events, with to end accounted business imagine future IT. Endava technology. commitment to to women with brought our events, of of events. Women's Across and leaders major the March, including access champion and global exciting in international

are are believe physical emissions. a an app We of OX will going partnered the goods service women also aligned mentoring a of through transport as an examples While request the initiatives serve I'm in markets, Global, reduced from technology mobility social run unique internally, positive OX strategy user-centric we Care model build carbon operating the multiple price, some has impact, users lower to as Many helped customer careers. cost rise to how deliver and truck, or with with the shared to their help transport engagements simple launched our of impact. to to clients OX OX's our To of we our in goal best mission. a required a with our service, OX we truck on support client design and on We distribution growth, also creator that low further market. to operating location. the and allow achieve positive the very basis. specific the to mission target creating emerging suited to a the is affordable to economic of OX such We make across

distribution renewable exciting called energy of UK the client ElectraLink, and to needed Macmillan Its green and will the can digital deliver work market, acting a platform, sources. serving. they We STEM a footprint engaging The final digital that power and UK data. cancer solutions cloud-based needed network new and driven their underpinning audiences product it energy view staff deliver electricity use artificial Cancer on the and build Endava they're game helps charities responsible as users. this to the using support provision that presence and and the generation is target ElectraLink, provide electricity keep help experiences energy need best and viable intuitive UK's a and and Macmillan issues leader a of their helped support digital to carbon The product, zero the product with in growth, they digital and UK's market people committed minimum company The when storage enable a data how the goal to families net a in transformation. global Macmillan for accelerate the also microservices, their ESG organizations the systems. can renewable create pending a with to living one storage build leading industry alleviate plan need and delivery supporting up content operating hub new to a more XXXX. electricity the digital energy to is grid engaging product cancer to achieving the platform together to allowing Using get effectively presentation power new teamed intermittency customers by help goals. corporate partner for graphical new changer intelligence data. of with support is will Support, more providing

reduce software with that team periods. Our power power between costs data during and to by energy expensive build grid automatically periods data scientists STEM more solutions and cheaper during battery switching worked using engineers

New helped pilot preserving largest most as We've distribution of and temperature company for as success of development plastic with by the Another currently well been data provider. also their We customers recycle and helping the and of in aluminum goals of logistics working based system of on how running reinventing named very visionary organization. innovative the the of Lineage area pays their hunger domestic with recycling transforming the with optimizing implementation automation with food. of America, operations specialized Technologies our are bins. we've better technology, Logistics, trash the an the including clients their United are codes controlled app chain applied leading We're them been States' world solutions warehouse the to a Feeding website. place. innovative Cycle build the unique The on been as and State recycled. and has items protecting Home assisting [ph], startup, I'm world's their working the industry Lineage the technology supply relief containers REIT York, science. They partner in making proud a these industrial largest and

over two with Mexico in these employees, business, which our acquired operational and design strong to in core cultural further transactions. expansion optimization Endava of and in US Croatia Levvel and and services. XXX continue New Brooklyn, Now growth also tuck-in delivery of based capabilities acquisitions two based we're and the FIVE expand logistics will we acquired market to the They our mainly April on And these and delivers FIVE York, to offer segments, us Croatia TMT of sectors. We as enhances capacity in a experiences X, opportunities. North both already us enable We Brooklyn. and digital has will Levvel number employees. recently accelerate organic payments X. capability. fit completed has and in and and services, the our focus the based new last Croatia and the strong believe a strategy our increases of we on joint FIVE, March in serving shown while believe in delivery ideation, Carolina. transactions States, we're FIVE in also of mobility, operational and digital and with which performance few years. centers a can clients Levvel the product in strategic from enable team Charlotte, delivery seeing continuing and I'm expand and in significant XXX strategy the within US Mexico our financial of pleased Levvel we has intelligent United countries

We continues employees, period same a Our strong client the in quarter X,XXX year. ended XX.X% to growth growth. translate with employee into X,XXX from increase the last

all remains We high. in low. attrition in employer workforce We extremely continue to continues our talent. time, from the our home core At work top locations of and of recruit choice the remains actively The productivity regions. attract remain rate to to majority same continue our and

office the We second gradual of in-person a working. half model return hybrid expect this of with the calendar year to starting remote in a and

by about in Mark value confident journey. emerging clients our and remain core results are our our We're the will at digital the by the deliver stakeholders. ability all shown for our opportunities transformation As guidance and services provide, of of our excited to

Let provide working our thanking We in that for and compared XX.X quarter people same I've who me call year. and clients million the our the the the loyalty. dedication a and continue and was XX.X deliver totaled currency, to on through XX, XX.X quarter value revenue the enable to for I over who GBP million GBP before end will tax your GBP ended in in results diverse to year for the XXXX walk million home the in performance discussed. for was by XXX.X who Mark appreciate our constant increase now you XX.X% excellence, Mark months Endava's million fiscal financial period contexts In quality March the will pass Thurston to our year. John. guidance revenue the growth quarter just year. compared Thanks, three coming prior last in Profit year, prior GBP three to same same XX.X%. rate the period fiscal XXXX and period

adjusted profit for months same period Our year. pounds to million XX, GBP for tax GBP March XX.X last before million were XXXX XX the compared ended three

XX.X% compensation XX.X% the adjusted was Adjusted currency disposal intangible adjusted margin before before the discretionary of or subsidiary, realized percentage adjusted profit last of is impact for compared period months March expense, Our acquired tax profit ended margin company's PBT for PBT compensation defined losses, or profit of assets, currency adjusted the of expense, to and XXXX the foreign net amortization bonus, amortization before XX, foreign year. on expenses. and a share-based exclude as revenue. to acquired tax is exchange PBT, tax, unrealized three or same share-based gain gains gains total of EBT assets unrealized intangible non-cash as Adjusted

our Our March period months the diluted last XXXX, XX.X to million same the three the calculated or year. XX.X GBP ended for on XX% Revenue months of as per EPS shares. adjusted for largest XX, share last March on XXXX calculated period million diluted shares ended X.XX same accounted GBP for clients year diluted three was XX, revenue from from X.XX earnings XX for unchanged compared

compared over revenue rest unchanged spend America same three unchanged period XX% Additionally, months XX% last and for same the accounted year. XX.X% year, same accounted last revenue period for XX ended last period in XX% months grew Europe the quarter accounted XXXX. March Revenue XX, XX% UK three year. to from the of pounds ended for from per last increased North for the March XXXX of million largest of for for from March XX% Comparing three revenue in We services our in same our from same XXXX. pounds quarter. compared grew services financial accounted North the last America period months the XX.X% in and the revenue for TMT world client ended period GBP XX, to payments year. months compared accounted the three XX, clients of grew Revenue from XXXX. XX% period three XXXX of the Revenue and to the Revenue March of average XX% verticals to compared million for same payments XXXX last X.X revenue X%, XX% quarter grew in of March compared revenue now while for which the period ended operating our GBP cash same adjusted flow, We months now to XX%, is XX.X% grants the all year. year, tangible XXXX, for accounts XX.X%. the of industry and non-current accounted assets. last less received for from year. intangible free XX, over grew X.X XX, to cash the In the in provided Europe and ended net activities grew XX, and XXXX turn three from of ended our and the purchases three to the months plus for same net the UK XX.X% XX.X% by of of XXXX during XX% grew same same other XX% same quarter from periods, financial the from March over

GBP XX, March months Our cash million same XX.X for period flow adjusted year. the to free last GBP was million ended compared XXXX during three X.X

of equivalents remained strong of March cash at at end million compared We of the and FIVE XX.X compared ended months XXX.X acquisition XX.X X.X% three in for to cash GBP GBP to CapEx a March acquired on XXXX same as XX, of the the GBP last XX, period at period XXXX cash XXXX. spent X.X% at percentage during is million net XX, year. the Our June quarter. revenue the million

Endava follows. X.XX for the be EPS guidance growth currency year XXX Our expects range as XX%. of and million, of XXXX million be GBP GBP to XX% to fiscal the revenues will per Endava GBP to adjusted expects between revenue GBP QX XXX in in share. is constant diluted range of representing X.XX

Our is XX%. in the $X.XX This adjustment between was growth be full-year and full-year rates constant assumes guidance XXXX of GBP of XXX to comments. XXXX pro a expects follows. will million, the the Endava growth range fiscal April line million GBP to the are remains the full XX% diluted to of X.XX EPS concludes British guidance open fiscal XXXX This figure exchange now comparative. representing expects to QX Captive Q&A. still The of the fiscal as exchange XXX Endava the year X for year per includes to for prepared and Worldpay and at for constant XXXX GBP in €X.XX. the currency ready revenues it in Operator, as full guidance forma for above for for we share. the rate X.XX end when our be GBP adjusted quoted range GBP currency the

Operator

Instructions]. [Operator

Cowen. have You of question line Bergin a from with the Bryan

Bryan Bergin

it rapidly level ask on XQ just you this in you're in versus to you're seem wanted like buying demand can talk changes I really client behavior any uptick material noting in of quantify inorganic versus here, would and the mix? of the can now the pace pre-pandemic? but First, normalized And what about organic sales is then, client you outlook growth? seeing the decision-making, cycles,

Mark Thurston

guide. There uptick been has a material in the

and from for QX full to a have in Levvel. contribution we We a have compared full FIVE month a quarter then quarter

But, So, big circa a our the the of that guidance around inorganic component guidance around is XX% been XX%. we of sort of is previous of around business and the increase in on growth acceleration that we're giving the actually, had full-year the XX%. is underlying there's of sort in that guide, which implied very

the uplift is acquisitions the a two slightly organic uplift, around XX%. components of XX%, from So, XX% sort is more at but

John Cotterell

where we're and scale products where potentially of do build picture what's with On to around And out whether clients looking that would and as who demand. producing client ideation business, demand selected, into or indeed see get those that's buying existing very it's we concepts the initial is remaining phases us at they are strong. those process behavior demand, their in client new the us, driving for And production wider a what proof buying with engage ones new larger the so up product looking on. we're new

those So, these up have production we what pre-pandemic. had more over stage of flow And expectation demand. many seeing XX XX into early got months, we're we is is at engagements, scale should than that the the next drive engagements see the moment that, to would we've

clients clients. that are see driven year. over last large through the numbers So, that being see with doing that you that actually quite stage we're some by of a work fast early in smaller of we the that And expanded is the pipeline coming

they a have to engagements. drivers cost get has clients engaging that them, as been attached huge us as tags One don't business into but ideation phases forward, new flow their of of traction that the in to way wider they move

Bryan Bergin

think you that's I talk been reduction driving pre-IPO. the at that Can about that? are quarter-over-quarter. You down you've level in don't since XX% efficiencies pounds a notable this had SG&A

about you in do a XXXX how So, consider and S&M sustainability in at later reopening you this think rate the as activity? do likely uptick

Mark Thurston

there sort of that. the big on of a debt There's EPS of and as forward, above slightly revenue, We're which was marketing. sort bad the items But, primarily positive range range the and giving. that facts level in timing we're of was coming see the out pandemic more number SG&A to – an a lower of implicit for SG&A then going release a around of gross just and to the EPS behind actually XX% but around that's from beat, is in as around adjusted certainly a spending we're under XX%. sort on that, contributor were which big And sales margin. basis, QX, mainly the is we'd XX% But such revenue a items was normalized adjusted of there's SG&A revenue. as XX% of of we guide And – number the anticipating

Operator

line of with the Shirvaikar Citi. question from a Ashwin have You

Ashwin Shirvaikar

This is an a well. quite in as congratulations uptick My expectations. quite exceptional

supply with start of asking talent. Let me about

You a very also have strong in headcount. uptick

other see Or something similar is in people if to And doing So, this you're different of concerns facing are just that getting more people to facing not, geographies in you related, you sort related? beginning your supply of are are are this, what you way? the from, number emerge? talent range it if the not that so,

John Cotterell

growth market We've in ahead account we've up successful in guidance of running that's Currently, the given. we XX% always is ramping the teams as some of that perform ceiling our the see equip best. market Currently, attract our organic course, quarters retain beyond target. actually on requires we is a taken of of staff, the terms onboard, to Endava and low. going quality It presence recruitment at the career We're about attrition is demand you proposition guided ability below the although, in still you pop and of way. to is around The ability growing train very and know, over to to – a our always well – sensible which our have people, into that can grow is X%, that it average XX% challenge. without the

at us normally that our grow that without greater organically max guide So, enabling destabilizing XX% to we'd is expansion. than

However, as demand it's I the still experiencing. just we're market below that noted,

some So, actually business having turn we are to away.

the probably heart your So, to that goes of I question, imagine.

Ashwin Shirvaikar

that, I demand comments that snapback, your would not pipeline outlook when you a finally this temporary XXXX in on based inform prepared that what as on said this your is remarks on your give fiscal should as you think outlook. well your

is this and multi-year, of hopefully. a longer-term be sequence that accurate? So, events Would

John Cotterell

clients it expect doing with feels ideation significant is with the that of those with engagement a we're the phase. clients. that visibility significant Yeah. of Absolutely, up the of on at phases moment production which to a We'd into like number systems, the level through step and those amount on flow spend the induction

the to like of any of back guidance. growth rates sort than a historic normalization more new yes, feels normal So,

Operator

Morgan from question the a line Faucette Stanley. James have You of with

James Faucette

talked now? from even third follow-up coming that, from that past, do question referrals, to a if one-third a third I – question roughly the basically are standpoint recruiting. Any a partnerships, what In the to just right of there in to in kind I to you've if of at needing Ashwin's it able recruiting as least recruit guess, change and or had market. from are relates being tied to about couple coming you questions your from And follow-up at they're a changes compensation university mix? one or not, least

John Cotterell

has pressures XX% pay retain that cost pressure market through. do annually as we're forward. there small in and we The of position back. our amounts. referrals, people and level of a levels that we pay coming address we've of the coming attrition which inform level current our that excellent But up recruitment and are pick market. in that growth major into through and the seeing in a lot Only salaries uni about small round account confident of we of And is And probably We're market, our will December, expect as And are cost elements at on But staff also see pulled we the pressures round. moment. with some with. recruit the that demand look that can changes. actually December taken some comfortable remain that expect that from will we I will at we sign

James Faucette

of equation, customers? pass does you're you pricing ideation, some build cetera, kind impact side curious, pressures, around to talk to you through these earlier And of the your the other now? are cost the your particularly environment of I'm that about the ability you comments costs? can to pricing and on with your I in engaging expected guess, your able like, engagement, manage based – And et at how are stages able On if

Mark Thurston

environment, relatively pricing you remained quarter-on-quarter really can revenue it's see per despite FX our consistent headwind. The head, in

So, And that it's out. going we pretty see solid.

require whole backdrop the given sort of secure will the solutions our we're at we we sort pretty the that clients sensible think of coming the just can months deliver to to sort pressures that of that of about need the demand get talent picture to to out cost pricing rates. have levels the clients. over that with there, But, confident the we I indicated, against conversations

John Cotterell

helped commodity a is we've which is to conversation, a bringing pricing to conversation. that very transformative value envision we're oriented that the that pricing through client to add around different Just the style product

Operator

You of have a Blair. the line from Nolan William with question Maggie

Ted Starck-King

can a piece current mentioned that Ted has that Is is initial Or on In be clients. relationships that changed with all? margins margin what's for of on the strength? dynamic driving at the past, Maggie. strong This you've

John Cotterell

they're more When forward, to Yes. And do of some with obviously. engagement, client the volume as business an scale get then, card. start well, we the we offer We of the with against and bit a to doing a closer element we benefits discounts little tend us, assurance a and obviously, spending rate as us as which we're that. small going business

So, it's moving in I'm dynamic. huge a the X%, Mark? won't a than guessing sensible dimension less be margin. terms of It

Mark Thurston

Yeah.

John Cotterell

is small it But element. a

Ted Starck-King

of maybe real that second a in How levels John, to the mentioned I the on hybrid with T&E you Can return hybrid the you footprint? there's you kind like? does of use a half office think estate And model gradual looks spend? that, model. the elaborate what that impact year, how maybe the

John Cotterell

the an In discussion area Endava, trying is consciously factors. we're different very industry. this very, directions of some to We're the it. take companies balance seeing on huge Obviously, across two

working as Employees seen from which will home And working having productivity. they we want On of to. with like respond good hand, flexibility. to see we've their it benefits future, in all the one that patterns major of from part

and actually that actually an social On agile for people hand, team. enabling in to the we hugely teams our context a across improved from activity, also team setting thrive as believe team a multidisciplinary in-person ideation, better strongly spirit, benefits teamwork other

people to are also So, keen see that.

flexibility result, And So, where in their have a are down the as as or in hybrid planning undertaken a office. to a have days there'll person key office. are people teams model other at home in team of a within agile spaces quiet lot where we will for days ceremonies be the head

team. your so ideation, planning, and retrospectives, So, within business solution on technical or sprint

will want to, the of know the mixture a on benefit you Mark, see but give lot our And want that from I a on anything P&L. we'll for of delivering team impacts work So, think of home if when that I they say to also time need to don't we the benefits flexibility people model. the business it.

Mark Thurston

coming property of a days the coming occupancy. space time, that the should I with footprint, years get some than Whilst in think, our over utilization longer-term for five over in lease people reduce. week, push up we arrangements, requirement less with will and we're the sort the will better

tip our potential coming to property a of years. down So, revenue or over two I'd percentage or expect sort costs

Operator

question the You Mayank with of from Needham. a line Tandon have

Kyle Peterson

Mayank. This for is on Kyle Peterson actually

start to wanted with M&A. Just

like on definitely for front lately. key active some have on What's pretty are that are now? And what areas right the and pipeline guys for guys what been deals? priority looking you future You of you

John Cotterell

opportunities one As you've one transactions, at multiple the we're running our desk March this literally right And of closed we've across deal opportunities. beginning in of a quarter. lot There two current noted, and are day. every seeing

moment. the in nothing lot engage capability, to choosy for have that there. and I we're where ideation the few agile at remain now. report activity right There's a DNA, very next out there's we utilizes production that gen looking we But So, them of got can the approach of on actually technology that

there we is as of course, anything soon it. As material, obviously, will report

around it geographic the very In remains, balancing. firstly, much the terms of focus,

geographic strengthened adding of previous the Continental locations. course, Europe. strengthened So, to last in The two US. in And, us the

we'll into And be probably for and US opportunities if looking so, Continental there's right Asia-Pac in and maybe further strength Europe. the

see an there And opportunities boosters are segments. some businesses attractive those particularly these, all and deals sector we is view. Second of of technology some And some building then, three of area our from that often bring other in occasionally point acceleration, makes are valuable. the particularly out of element that M&A key around

Kyle Peterson

in guess The quick and payments within BFSI vertical will should how I vertical this reach that ramping? looks of payments the forward? your clients And kind Is strong projects new trends think spend more base? how some really and in of and Levvel just there quarter. scale the impact about Is we follow-up. the a existing moving

Mark Thurston

we It was of across the And growth that quarter-on-quarter. has most Despite consecutive geographies. our of XX% headwinds, strong. all had been

So, real well. our traction particularly riding offering, we're that wave in getting

John Cotterell

a Levvel is business payments the particularly mid-tier From largest is logistics as And a view, strong of banks, being point services, financial then, mobility across capability. very, area. the and very split also and that

to sector US So, us some in focus depth acceleration our those add sectors. will and those give existing the and in

Operator

Bank. question You of Bryan the Keane from have Deutsche a line with

Bryan Keane

that the ago? questions I XQ been have you answered. couple XX% uplift. What's versus already the of talking look months and organic my increase a three expectations previous Mark, lot causing when growth guide, maybe we of in clarifications. about at Just A asked think were

Mark Thurston

sort across And and acceleration questioner go geographically very last UK. strong seeing pointed of in services, Basically, particularly the as QX, payments into as into financial are an pickup we – of the out. we acceleration and the Europe sort

all So, in expansion, the firing and and we're, geo financial terms particularly services of cylinders payments we're sector. on

Bryan Keane

EPS to in the the dilute or start material accretive they Thinking Are raise, the was acquisitions. raise acquisitions actually there the about despite even the fourth quarter?

Mark Thurston

I think they contribute.

this In margin. a it quarter, was terms of strong really from the gross beat

which people at We maintained On being from in the in basically, level. than in minor see normalize was adjusted higher that we that's anticipated, margin add And should So, sort full that sort at acquisitions we timing XX.X%. effect get contribution it less which the for out, of that we holiday, that QX for SG&A XX%. the pointed in uplift was I and we the utilization, FIVE. taking of and an secured quarter for a the QX basis, stronger Levvel – full-year effect

Operator

Instructions]. [Operator

the line have Jamie with You Friedman question Susquehanna. from of a

Jamie Friedman

had your had to question, specific in I you the you you I heard a Mark, unless answer previous reiterate wrong. growth that what thought disclosed previously? said you payments in Can

Mark Thurston

been that, of out sequentially, around has QX growth, pointing QX, from was going had we've most financial payments all and XX%. That's geos. our to I that strong And quarter-on-quarter, services. across

management So, includes insure, tech, asset banking. and and wealth

Jamie Friedman

bit grow The at X% And little than headcount your the then, is a is the attrition really Mark. remarkable. did low faster same time. revenue,

is in standing that headcount quarter, growth as is fourth about? the as that the up So, what anticipation business of new soon that's

Mark Thurston

looking at quarter-on-quarter. are Depends or year-on-year you if

X%. quarter-on-quarter total the We contribution had from M&A. we level, about at So, grew a

so. if that metric FIVE, or from because month, a revenue it getting the And about period-end. for even of quarter-on-quarter X% headcount call the take which sort And in contribution we're than take a one is rather around has average growth. relationship there let's our headcount tends X%. the grew was out terms in you with to – it So, better the revenue And to X% of

growing line we're in revenue with really the headcount. the So,

because the Now, quarter marginally. margin went we up in saw improvement in the utilization an

that So, up bench into we're the built had QX, a in previously QX. we eating

level. to will I that's I outlined demand now in margin in that the at where why that with what and think guide position And gross that line our around we've still the be think quarter. remain will are this we're in we've we recruiting strongly very meet a probably delivered utilization of sort

Jamie Friedman

comment look The very sequential than, you, year-over-year, And to realize obviously, UK. North important remarks way say, I lot though, your about understand but for makes was I prepared more John, as talked smaller making the geography it. that's, historically a I America. sense was a at a

In in quarter the be than Would map in like Is growth Your as TMT the America. other more growth elsewhere? fast. America in North fair TMT the it in both geographies? are words, acquisitions North there North grew almost this verticals by grew America XX%, the to

John Cotterell

particularly. map the mix Not to doesn't on exactly The geography.

services homogenous. North instance, and completely arena. financial the But is not America, it's for a happening growth in of in lot So, payments the

you that there's look if going of and more a of rebalancing sectors across like, standardizing, So, geographies and you as proportions is on. the

our little has in comes a organic America probably TMT been it historically, through. is and as North other, normalizing bit whereas, growth So, more

Operator

like over remarks. to turn to back There would call are no additional I questions. the closing for management

John Cotterell

seeing us you services demand today. as you joining I'm our for that thank Well, that and verticals actually Great. across will all noted, And remains all have very geographies. for our sure, strong. we're

September, it's about positive very remain and to Thank look seeing year. be forward call, you business full earnings which our we in next So, our position you. given will our at

Mark Thurston

you. Thank

Operator

gentlemen, conference. and today's does this Ladies conclude

now may disconnect. all You