Loading...
Docoh

DXC Technology (DXC)

Participants
Mike Salvino President, Chief Executive Officer
Ken Sharp Executive Vice President, Chief Financial Officer
Shailesh Murali Investor Relations
Ashwin Shirvaikar Citi
James Faucette Morgan Stanley
Rod Bourgeois DeepDive Equity
Lisa Ellis Moffett Nathanson
Bryan Bergin Cowen and Company
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good day everyone and thank you for standing by. Welcome to today’s DXC Technology, Third Quarter Fiscal Year 2021 Earning Call. A quick reminder that today's conference is being recorded. At this time I’d like to turn the floor over to Shailesh Murali. Please go ahead, sir.

Shailesh Murali

afternoon good and you everyone. Thank you I'm Technology’s us DXC joining quarter pleased fiscal that third XXXX for are earnings call.

section Mike the like DXC DXC our information except Form measures, respective And of that President Report Our provided included the these on Mike I'd will directly and comparable to uncertainties two discussion On see call, Salvino, remind dxc.com/investorrelations the have actual and and Officer; call we call, and These accompany other This subject assumes risks XX-K to with call and slide Mike? CEO, known Slide listeners will the and comments most the could and that to informs Financial our webcast slides risks filings. Technology's reconciliations which by materially presentation Annual includes be as accordance SEC webcast would and certain participants today's the three, make today's Technology's included on in webcast introduce slides. in to their earnings A the will we results law. on and to Investor our on tables is discussion call These statements I to we call. like our Executive you'll at website. believe being a will unknown information no now, that Salvino. President forward-looking. presented Sharp, are and those Relations release speakers Chief cause our differ reconciliation the Ken required from includes uncertainties, certain which useful the In and update in measures. Officer. today. found rules, Vice Chief Technology DXC non-GAAP obligation GAAP be expressed the of these to provides After is our post on of investors. financial President these Executive be slides our SEC can to we measures that

Mike Salvino

appreciate hope the I today's and I I’ll we press briefly your Shailesh, moment, I walk everyone want you, families today, issued and a I on call the that in to and before joining but agenda Thank release Monday, February discuss do are doing through well. you X.

announced we non-binding an we last from to month, As purchase received proposal DXC. unsolicited Atos the and

given to discussions. Atos some the information why confident our is high carefully legal proposal reviewed can QX Atos believes advisors to be our to results we level with their proposal board executing We're help discontinue agreed on our executing. standalone board DXC and evidence transformation by transformation journey on sharing it further create Our journey. and certainty DXC, After and basis financial the with inadequate our and team our found value our them lacking shows strong in understand that and undervalued a

helped that the and and market. for value saw leadership creating has team how delivering new flattered are it and value. additional and areas as stayed linger, proposal, did business pleased focused the with how not winning taken notice our We Atos was on journey create highlight I our clearly can we of are we our customers it the and in transformation our managed we we we are accelerate where some

expectations call. earnings full sharing longer place, details term the on the to QX our year With am forward and team our new in plan leadership looking ’XX, of I FY

leadership team. discuss are you to Investor We to and also detail Day an more plans our our planning introduce in

to today's will me start let quick a you by turn strong agenda. QX performance. I giving update our Now on

making we're our journey. will on I Next progress highlight the transformation

over I three results for our will on customers, to seize focused driven call executing CFO, optimize and against guidance our were transformation key journey, new by market. Sharp financial the QX. QX the to cost results detailed share our are areas QX which and the of strong then Ken hand Our

before some opening up make closing questions. for will I the Finally, call remarks

end Regarding guidance. our trend is we performance, million our quarter This revenue continue second the to QX our straight and of revenues QX. top above billion stabilization approximately $X.XX of expect were $XX this in the

end Our underscoring quarter that a revenue, stabilization quarter on adjusted guidance. bringing success expand to than also QX. trend we the about of and is the QX. sequential Book-to-bill also bill or margin, customers stability. EBIT will revenue focuses market. level the Like are positive we continue the to achieve revenue continue margins the expect we we've for was the we to better evidence year-on-year X.XXx Concerning of people higher X%, delivered our delivered in top stability X.X book new DXC, to achieving. momentum this in the I'm that straight our which and we is third pleased to This expect of

attracting continuing to improving done cost relationships, well the environment strengthening disruption without and talent, the in We win people, have market. taking out our for our customer

SVP new through would of the Sharp. transformation I like DXC journey, CFO continue focus Ken completed go me our have of decade strong was Systems Now to industry. hires large Ken scale a operational led Business. I Defense our We finance team. journey. has to us important These Ken that has returns experience to and Prior finance CFO progress executing Grumman our to our recent we the hired and on two leadership and of can, as on transformations. skills transformation finalize comment before allowed our to Northrop after at of that over being search ATK in are a has Ken Orbital

a transformation strong is operations. results. execution where created and Strategy has of industry to Corcoran of and and the growing we We at amount a they're from transforming Officer strategy Chief led of Michael main Prior record businesses. for Operations. us team. for our Michael reason the as joins where and WPP Michael WPP, substantial Accenture experience he also Michael track Accenture of and has added this me spent with The years joined Strategy to our us and number was team and

will job joins nice You capturing to opportunity and create his moment talent Ken why to the joined in a comments why hear really a DXC value, concerning DXC.

I will we progress transformation on starting journey, our with cover good Now are our the customers. making

customers the be focus revenue to primary continues of driver Our stabilization. on

I've As are for new our and customers deliver time trusted for we when as said to customers work existing and again, likely renew a seen consider time more us partner, work. are and

Molson in with Let have good this work me QX. that of give you pieces renewed two examples two us quarter. happened Coors

an The management cloud is and across second the including and modern layers ITO, security. of the workplace, first multiple stack, enterprise technology is application

two an confidence relationship Life development costs stabilize Pacific life flexible support strong our them examples we're the continue expanded can to led revenue. efficiency. Insurance, These we reduce us job and strengthening to includes for application with which and Next, that delivery improve agreement doing, great retirement of and and its to our gives enabling perfect are customer and model divisions, relationships

optimization Now turn our to let me program. cost

We of will $XXX year. savings achieve our goal cost million of this

program optimization adjusted responsible X% our of cost margin for in strong EBIT QX. Our was

Human We the to expand margins despite XXX U.S. and able sale from local, are a health of and headwind business. basis state Services point the

XX% this existing we customers that work final and done have our without that our number is our QX, well In is area to focused quarter cost accounts area our we continuing consistent are transformation cross plan delivered We The the evidence journey. Seize on disruption. for market our deliver working. this and bookings to XX% were selling winning our the work book-to-bill In were of with is renewals. and new of X.XXx customers. new optimizing

will with a new give work modern security you of deal good their modernize year with three and a new where platforms, example we a services workplace. me Ferrari, IT Let signed We customer. including with

three deliver is clear journey of FY the the services is evidence number book-to-bill consistent but in only can over Our ability X.X absolutely that our to ‘XX IT in market. not a working, of win we quarters first transformation

our to Health business. software providers’ now Care Turning

track sale balance use to this of roughly strengthening pay the sheet. our We to proceeds are on debt, of business $XXX complete million further net down and the

like call throughout journey. our I turn customers supporting I to transformation and before for us Now thank Ken, our over people, shareholders the would to

me over Now, to turn the let call Ken.

Ken Sharp

Mike. you, Thank

part Let has me I how by and join am Mike saying the that assembled. the be of DXC begin excited to team

my team, journey, When thesis, we joined, convinced significant came Mike create The to some process which free thesis value. Mike successful and and the down investment time unlocking three factors. After you on provide was DXC the into will I stabilizing spending I'm delivering flow. and margins team revenue, third I be DXC thought transformation would investment that of can this includes the me Let the on DXC assembled, execute value. why cash main achieved This how in with insight contemplating. thesis believe expanding I

talk about team the let me assembled. Mike Now,

win. areas people our the our of best DXC delivering clearly hard in DXC. the results. to QX journey transformation it, Let's earnings First, team that with team the face true on: companies is are there strength the power work demonstrate At main we focus will three will The of visible finance on

people spend will outsized customers. particular believe the outflows. in growth will We the you underlying create will we organic disciplined for intend such revenue, access paying our the facilities restructuring, we're reducing better At in attention providing to business the capital of value investors growing time cash improving as to in flow. feel will We today, we help areas at release cash delivering investing see expenditures, we We and on by will be organic earnings and the and focus In overhead. the that means flow, business. same continue that that reducing our our and transaction understand the same integration, underlying time performance most something our and

capital engine. will rigorous in we evaluate our on putting place will creation with to that committed deployment Second, options. maximize carefully cash we the deployment capital program returns the of associated flow value disciplined analysis, a Based are

to flow. a to strengthened and flow cash allocation execute outlook, position we've be will a sheet turning a a in solidify we balance are that balance our program. we strong capital cash our Now disciplined sheet, With

financial visibility. improve we Third, will our

providing our call. annual our next expectations We earnings longer and term guidance on are committed to

more We leadership. longer to to term are also you our and discuss plans planning Day an in our Investor introduce detail

to year-over-year. million on sequentially terminations. and year-over-year our billion guidance. XX.X% QX increased due was $XX $XXX X.X% a in previously On the revenue tailwind our the our top sequentially. $X.XX guidance revenue results, run-offs an Currency range. million million, end EBIT $XX than of exceeded declined DXC Moving top disclosed Organic GAAP the revenue of adjusted to basis, organic better non-GAAP and quarter of EPS and and was revenue

We revenue to the organic declines. water high mark be this year-over-year for expect

see sequential stability. revenue year-over-year fiscal Adjusted expect to stable, we will you from our revenue ‘XX was translate guidance, EBIT continue delivering year and million. into to during expect As QX we this $XXX

tax XXX approximate the an X%, adjusted XX.X%. EBIT due $X.XX a of was tax diluted of the guidance non-GAAP rate $X.XX. than income was Non-GAAP million. to was lower Using taxes of XX a sale. rate basis despite point before end margin headwind $XXX This share improvement was EPS basis range. XX%, $X.XX from of Our higher per was sequential points Non-GAAP earnings top guidance expected HHS our than our

rate a quarters operating related to to Like than greater losses three were and $X.X the certain for are consecutive QX expectation reserves see book-to-bill tax to of Mike credits The QX sale. encouraged reversal tax of of book-to-bill from we to a higher mentioned the earlier, bookings of HHS X.X. X.XXx. the In audits. ability with tax state primarily billion net Our tax utilize utilization benefited related foreign

$X.X are results. segment X, revenue. in million includes an increased primarily Turning business. healthcare profit analytics profit the of includes of segment, X.XX. our for sequentially, reflecting business, which on revenues the our despite was $X.XX points segment or October and of The and the headwind which HHS selling. analytics XXX the the of basis. was technology of was now X.X% was basis previously the sale. the GBS and about basis our for top billion we were the Year-over-year provider bookings total XX software down QX book-to-bill BPS a billion GBS to margin engineering, stack strength from business. sold and X% quarter improved XX% GBS applications we process our revenue Organic Margins horizontal business points and included HHS GBS $XXX revenue a engineering organic The sequentially, GBS on segment of GBS XX.X%. the

for over on QX. basis technology sequentially consist segment, an a X.X% layers and $XX cloud segment billion organic turning GIS $X.X the our and book-to-bill was IT XX.X% our enterprise expansion security modern profit which basis. X.X%, a million Now, was and GIS GIS down margin were profit of with outsourcing, $X.XX workplace billion to Revenue of margin bookings a year-over-year point of of XXX stack. X.XXx. up

I transformation I to drives that before has point revenue slide stabilization positive is home technology stack points on QX. the proof there out details transformation of the of slide the enterprise that include stack of of that of better since journey. our and our our The discuss XX, Now slide the the no wanted for each journey book-to-bill on been continued strengthening layer part impact

see As Also to growth, up the of layers all in you now see stack. mix change growth beginning sequential whereas positive our for is it QX, had revenue in we the layers improvement and four sequential can to are all stack shifting reporting QX. negative

and down QX the improvement down the X.X% to Book-to-bill drill ITO XX.X% to of Now quarter. X.XXx performance let ITO the quarter. and improve technology the down our where X.X%. solutions run-offs down believe sequentially compared was IT up was was the performance. an X.X% it revenues sequentially, year-over-year. declined outsourcing stack. of revenue our X% in on X.Xx layers year-over-year strong in the revenue building of enterprise me was revenue and relationships as one terminations. level due comment and disclosed security was delivering Book-to-bill previously will with effective customers We Cloud

Analytics compared The Moving increased prior posted the to and BPS increased and X.X% Analytics up the down was X.X% resales. in was Book-to-bill XX.X year. was engineering X.X% stack, revenue basis compared note down modern and sequential was book-to-bill of on prior and and X.Xx. the and sequential flat applications a the QX up was from year-over-year. the I volume sequentially benefited to layer year. X.Xx X.X% that should engineering workplace quarter. positively businesses growth

these As you alternatives just businesses were transformation strategic journey. part beginning two are of initiative recall, their may the and

performance. result you some a unevenness in expect As should

negative XX, and an cash quarter in Moving on $XXX came flow of to cash slide outflow totaled cash on our free at operations flows the million. from for adjusted million flow $XXX

to on our free disbursements had discussed impacted we that prior HHS cash sale. the earnings related $XXX flow call, As million of cash

addition, In payments and we our during to the partners. suppliers quarter normalized

flow been and and adjusts $XXX not these We company partners further occurred, Our If allow fiscal cash flow payments believe leverage million effort than negative and supplier to us will $XXX ecosystem. to three not the our treating reported cost. capital impact to the separation expected more flow and partner cash in impact an free $XXX our free two flow quarter. negative million items million higher have would through is had approximate partner expenditures, normalize our appropriately restructuring, year. that adjusted had in for transaction, the integration quarters The has the reoccur traditionally first cash our cash quarter of

strengthen we We forward. are we considering free our going flow changing XX, efforts presentation slide undertaken On detailed have to cash balance the sheet. our

billion $X.X disclosed, our we debt. of from reduce utilized net to we sale HHS previously As proceeds

our sheet. sell further we capitalized use and $X.X our on including continue our provider quarter the and Cash the net to we a progress of plan down end proceeds strengthen to will pay was the was $X.X Total of for make billion. leases debt billion. debt $X.X debt balance healthcare Additionally, billion to at business software

rating. We grade to to approximately to tax divestitures. in commitment I an $XXX QX our expect credit related make to like emphasize of would investment million our payments

to X.Xx to end We our net September than expect the December. see, improved ratio turn can improve. at of continue you EBITDA to As one at fully our debt more full X.Xx of from to leverage XXXX end the

EBIT turn share of $X.XX slide of billion; on diluted that, million to of revenues XX, interest billion back to and Mike. net effective I adjusted With an X.X%; $XX to are tax $X.XX X% of expense per non-GAAP targeting now up non-GAAP margins Moving earnings XX%. to $X.XX; $X.X on we guidance to the call about QX rate will

Mike Salvino

Thanks and let progress three DXC. share making takeaways me key we Ken our at on are

and margin market greater. is or on in to of transformation sequential quarter-on-quarter the DXC number book-to-bill This a bringing we expansion consistent are and journey. revenue translating into demonstrated Xx First, solid momentum the our have executing stability,

the sheet. on to are further we use track to strengthening provider down pay debt, proceeds and as of the the balance software business healthcare Second, complete sale our

and the leadership closing, In that is I executing we team additions stability results. are Michael, the built strong the we momentum transformation our Ken and new with of have producing Third, journey with finalize am pleased on of level and achieving.

disruption strengthening We our customer and without attracting have well done people, out taking to our in continuing environment win the costs the improving market. for relationships, talent,

Greg, questions. expect and We to QX, open for continue momentum up please all in that positive call the with this

Operator

going our to And Shirvaikar question Instructions] from Citi. from first [Operator come is sir. Absolutely, Ashwin

Ashwin Shirvaikar

Well, thank your ask, Mike, still see which hi sort to the to what alluded Mike, welcome! wanted Good of what part to I you the been to to is the out is enhancing of extent know customer progress for a is on? of Ken, and figuring what you process Hi versus defense, and you has relationships – target source recent you. here. want, so the successful are playing of keeping perspective their How selling percent what and sold offense. sole what is And there cost that? is pushed work clients what

Mike Salvino

good all hear of first you. Ashwin, to

better the thing the show page the and lot. enterprise where relationships, that technology work. On to they're giving I a That's more stack the is, are testament key we us the XX customers’ like getting fact customer key

rebuild we're when these and negative, see time the stabilizing and time was to I I is going at and start of So you then again to and the reason we're revenue. you'll looked that we was wanted relationships year what at going point to this you show that why look minus-X.X%, that the said progress QX have that and all that

in two QX the the all the a one flipping negative So enterprise team myself technology negative doing. positives and with is three then that's to of and of those huge and four only stack testament what areas having are

when proud work that’s went weakness an was you about ITO, of and X.X% probably we're last negative Ashwin renewals, that that at was on that and not that the to from moving thing I'm amount anymore. moving that now XX% new positive see the whole I winning, And of an The us area can just that everybody look the this, renewals it's sourced portion because finish work in to strength. when sole a of customer of customer most away XX% the I then away are the number you think us on look sole actually is the that from said at thing when area the that work those work came that from that, usually was relationship I and from that sourced is good area of also new relationships. stack,

Ashwin Shirvaikar

That's to hear. great

business So normalized up I at posted frame at have then guess if the profile, comment profile margin obvious look and sort a a help as becomes, look that? least your you the emerging might us of like improving stack, can you what sort then divestitures, including you or of follow on

Mike Salvino

the profile EBIT The is, expand would seen way to margin you've I year frame margin. throughout adjusted us continue the all this

that can are We pull. there we see also levers, still

we on what areas days, the pull. can the through when So other next gone pencil mentioned fact also that’s I over we we've of that sharpened our XX

talked paying the I'm a about all What So contractor person. automation, our thing my over that past. contractor the overhead. that means and a to something about hire in would I've operation those done premium estate, I've start for with things like overhead. conversion. then before going excited is real Ken’s is things levers other And the I’m include like

has done job that. We’re done Vinod a a with with great our pilot,

from us margin So continued you expect expansion. should

Ashwin Shirvaikar

Keep Got good work. it. the you. Thank up

Mike Salvino

question. next Greg, Ashwin. Thanks

Operator

Absolutely, sir.

Morgan have Stanley from Faucette. Next James we

James Faucette

Well, very comment, of going you’ve done reorient you Ashwin’s to Thank lot on a obviously kind business. of much. kind the

forward, about today, people, multiple you and or quickly. do of we times able what stabilizing abilities about are you’ve DXC think adding think as look some do “where you how to You’ve think do I are going about obviously add be and how puck is the those? kinds that’s highlighted it to to thinking that going” Sitting surprising been important to so here going like been practices for you

Mike Salvino

and like So think I across have. our your thanks and the got We’ve – before the question. stack, the you enterprise said clients when James, have good scale for that the I technology. technology that the look about voice good at way we hand to that hear scope

to that allow So revenue its and we where things know with more will more cloud keep growth, workplace we've us look, and area decision made stuff be when decided ITO analytics not do to going be but engineering, we then the the have you right that whether because about we thrilled to security and has to us, And now think in too Microsoft that many along about focus. delivering, on thrilled to industry couldn't got in get there's application and that focus rationalizing need specifically us on you're ecosystem to there. that us. we need partner our that modern That, with with the into get I

their to said over want cloud, aspiring the modernized. move of too. having move a remaining, to to others the the they I terms to of changing of we that, We’ve the the from is give are we mix years work top base that you that in work of stat is see stack. bottom the of the obviously still to the But they Now, want roughly XX% customer but where XX% will have stack got XX% two see next

and on I like big through know buying seen continue got So me scale look, on best selling the that have buying that I enterprise We're things help things, focus big can stuff we we're I on will with you’ve stack on focused think the have going sure then I technology then to buy accounts. I'm James. handle a make big tuck-ins. propensity to tactical not our I'm I've we end that to and

and be So push able to I against should the I it more that's best offerings two, sell take those our to the clients. and where marrying relationships

James Faucette

and a it useful, tactical talked and know etcetera, at and know both That’s for those as presentation think tuck-in, and that type preparing future but you capital meeting, Ken I a that broader to allocation you about you the investment related returns, is have community analyst something of about very particularly as think through that that you can of the to capital doing is or you of something consistent kind up be on that you period end being just least the opportunistic, at a in prescribed a in of go proportion or terms time space, players of kind and similar of basis, big allocation.

Mike Salvino

with script, I’ll you capital in we we what the back fact coming say and James QX said on our plan allocation and that our that's in showing strategy.

And So proposal, Ken thoughts then time in that. strategy back I you'll want days in a the through with the our thoughts that see latest bit to buy our dividend, on spent were thoughts XX little XX our investment. just and which seat, go having dealing in of on on the with more

James Faucette

That’s a lot. great, thanks

Mike Salvino

next Greg, James. you, question? Thank

Operator

Equity DeepDive we ahead Rod Bourgeois. we from go Please sir. next have have sir, Alright

Rod Bourgeois

quarter nice guys! Hey December me room. revenue in guiding elephant the ask guys, the stability. in you’re toward Hey, about in incremental progress let the turnaround But

that takeover Atos’s that Atos strategic even merging was best with so told just apparently inadequate You it though DXC was walked away premium seems idea. its they

more more clearly DXC to stability. so fundamental bid, banking have beyond for that's your revenue pushed compelling outlook to be for off you on takeover compelling, seemingly Atos’s So a have trajectory

like is takeover what the today do down turn the until your down question, waiting I'm that the I ‘XX you're to So fiscal over you guidance. are and giving willingness asking ‘XX fiscal to you fundamental but not to fundamental here's conviction that, to are about takeover drivers what today conviction would are suspect and improvement premium my bid? trajectory such for drivers necessarily turn I giving such ask, your

Mike Salvino

good thanks, voice. your to Rod hear

So along. stability look, all saying first these I'll back we've the been things one to is what revenue cover three all tied items, and again,

So our towards revenue delivered the we quarter quarter. of second have stability revenue third stability guided on just and

accomplishment. pretty So we has believe revenue say DXP that strong think towards ‘XX I would FY followed year-on-year stability that's in and we're anybody headed

relationships Second more to revenue a they're your know where you work. it's is, us deeper I as relationships all and customer deeper, forth within are for and those stability partner coming and customer and so those checks becoming trusted do

The thing contractor kill the like standpoint and EBIT with are looking think conversion the market the few. IT the pull are second the anything margin to work a that if to sustainability continue the biggest we fact seeing favor. on you facilities, even is adjusted can't at and pendulum we can margin to a we expand then, of transformed. from that's still why and our greater think need and and to you And and key CIOs thing, that thing having it sustainable QX we margin We levers we’ve existing X.X X.X little automation, in environment of thing mentioned is Ashwin. will going revenue on got keep levers now expanding in to that that transformation without like overhead look, along green or and believe the a in margin that digital The the a basis. that name saying fix to forward. growth doesn't winning highlighted us operational We this have to I is think We're book-to-bill sequential the I a because swung before bit these get environments the can

what partners, doubt there's is on way no did I ecosystem. this, with That's at our are when when Ken thing the we more customers, customers. we after now we're going mentioned making partners the progress buying our other we're love the that you same why our existing they look our and The did

ecosystems a with and into game willing to modern again was I'll that highlight to that's rebuilding important team relationships, us changer. that those the to We Microsoft are because get fact DXC workplace,

more all was So we see about. and Rod proposal the take that all than board were it, you that's at together and when the value you put what through looking what

Rod Bourgeois

off look and are so So If wanted segue seeing its improved? I the IBM position that's for a market Alright, my it’s that behavior too you IBM a been to suggests great! preparing to other distraction is encouraging. evidence Atos competitive and Are in real for spin at good that DXC's prospects on. has organic it’s its question I ask not

two that status. that got major you've are So competitors in

I the especially to tangible your helping there, share Can backdrop is front? given that any you turnaround of position. really know So competitive what's evidence like competitive seeing any your competitor if happening on tangible the you're evidence

Mike Salvino

we the then and back So mean to they’ve you, I'll that recently huge first with engaged thing number, saying, seen, us book-to-bill good wants the look, engage go goes above trends you keeping without Rod right, competitor X.X can the up to it a that's I for with when tangible market. a thing is, rest continue evidence. competitor and in to is assured

that's the very said is all tangible now. very I or last The call at are it's like evidence. pleased pleased that, strategic we look, done. got We're I also alternatives mentioned the clear about during bit about it about least what earnings little the a just we're position. go So get to execution We're initiatives very fact and over our that

your I’d So that’s question, thanks. how answer Rod,

Rod Bourgeois

Thanks guys.

Mike Salvino

question. Greg, next

Operator

will with come Ellis question Moffett from Next Nathanson. Lisa

Lisa Ellis

guys’ Hi, good hear afternoon. your voices. Good to

going one you follow-up are approach. one, of would yet on Atos as year. for I those not the you're the this another imagine best, probably you that the Mike only First kind of

the pros do So more about broadly merger on just think own? can you versus how cons of can scale your the you you about talk what larger and

Mike Salvino

chances, do like really what of can okay. look, Well in we we our own, terms our

was recruit journey against brand come out guys that never can you transformation of leadership a executing are all that team plan like I’ve and sudden plan see to It and sell months can't strategy. you that's a if part company; a of my confident in in new and I've are we here Lisa shown, your our the We laid then XX plan.

standalone in So a on of our basis. terms chances I like DXC

Lisa Ellis

meaning to low you the Okay, reselling to Like and weak conversion your you I little X.X you about what of dimensionalize That’s growth should should kind of that know quarters then then bit how over talk Can bathtub until Can when mean at bit just very you been for now bookings you. point. you’re in a of some mechanics? a works, with or some about which the come you we how of do backlog still revenue bookings revenue what I my in is think acceleration – encouraging. or running highlighted bookings still the situation imply months, to how or combined are that mean. healthy like the sort both just as have XX is which speak together? Thank also follow-up few you’ve are is a improvement just, related think very sort you sequential of so out kind sequential know that? where revenues, a linking the improvement about in about

Mike Salvino

delivered Yes, what just are saying we quarter the second is we stability, right.

positive stability out. or So that stuff off what's happening bookings, marries greater the that okay, the run revenue the because with X.X just terminations of with so balancing

not means, more that losing winning. stability are we're obviously than So we

We also guided towards our stability. third quarter revenue

So we're stability tell I is that for just I clearly – math. at That’s looking Lisa. team revenue ‘XX mean year year-on-year my it's

on executing to need transformation is journey. we our what do So continue

that. at look we way the that's So

Lisa Ellis

you. Thank Terrific!

Mike Salvino

question. next Greg,

Operator

will from and Company. Bergin Next come with Bryan Cowen

Bryan Bergin

welcome. trajectory I Ken you. thank ask want to the around layer. ITO revenue Hi,

in obviously renewals here. the portfolio. enable an whether improvement anything coming specifically to that the stabilize ITO maintaining So DXC view impending improvement a client would Any of business too of, this scale or secular can type be this notable not curious risk large or the a period. challenging I’m are that just encouraging do as you price in there’s headwinds to is for here And down, aware the the plan. such too, ultimately layer

Mike Salvino

and fact to years about existing the XX% they I'm to on I two the over And the sitting the me move I again, stats. they cloud. another aspire virtual studied talk of best clients. gave what our the mean work was to next and clarity told and Bryan, took I I I went continue that,

after the to Now, case dropped I that ability and to XX% clarity analysis is business took risk them through does, deliver feasibility technical that virtual X%. which their

I a run X%, now off. healthy much would that Certainly this but other the going to of Bryan thing is don't whole win XX% the to we the what of I are dose is cloud it's fair care move tell you the whether secular stuff into And that journey. Now cloud, there Phase our still or to need means share, we is but

AND now the directly which that to OR was When ‘or’ is cloud. just on-prem to public phase the critical what with this ITO moved that? you're meant one phase work applications move the of on in or you're applications Now Cloud, most dealing The cloud, and the critical don't those other.

In fact you're now managing workloads.

Sometimes us, the the am that's is the that fact then sometimes estates. application I'm opportunity of to line move cloud, will want have I going on bottom the team this level our clients the to they cloud, Because detail? how what meaning to stay run expertise for if the our they move data existing will to Why to the to And there. cloud. to what need is focused knowing the move

that's to customers, you to will helping I'm So these trying layer us green customers. take environments am for care to a be are of that fact that the I your the sort updated say thing that be selling talk else we that and on of is but see you some map building green that is that sell estate going maps road of those thing maps these layer to you if give our is basically the back when not number growth, to estate needs what stabilized and to you to Look, can then zero. be a

the that’s to Bryan, So that question. answer

Bryan Bergin

sense. stage How work the quarters? you No you talent are in hiring And couple it refresh next what here talking force, about at? the problem, about and are at makes headcount then thinking of a of just

Mike Salvino

mean, they I about in that the fact new at talent about to augment I the hire new continue owe thrilled we have our going me a when team talk and to leadership we're least absolutely hires DXC. I’m XX leader, look, that new So and we

So operating I we want the continue and focused. – they're that's into rebuilt. team I them going think model is now managers and leadership put to to doing are customer through middle the our then very see how new get to

question that's answer that way I the So too. Brian, would

Mike Salvino

in the we of by thank momentum pleased joining and want about each I on you are to executing listen, for our So level call today. Greg, please With best achieving more I the of stability the journey that, be that couldn't the close families we you and QX. confident the are to your transformation QX and call. continue momentum in all we will and created

Operator

gentleman, sir. conclude you thank our Absolutely, joining disconnect. dialing us may And That again and for do in will today. call. you once and We appreciate ladies participating and you now