SYKE - Earnings call transcript Q3 2020

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Operator

Good morning ladies and gentlemen and welcome to Sykes Enterprises Inc.'s Third Quarter 2020 Earnings Call.

On the call today are Sykes management team including CEO, Chuck Sykes; CFO, John Chapman; and IR Head, Subhaash Kumar. Management has asked me to relay to you that certain statements made during the course of this call as may relate to the company's future business and financial performance are forward-looking. Such statements contain information that are based on the beliefs of management as well as assumptions made by and information currently available to management. Phrases such as our goal, we anticipate, and we expect and similar expressions as they relate to the company are intended to identify forward-looking statements. note those company's statements. projected to differ results important from materially in is that actual the could It such forward-looking that SEC were results in actual Form XX-K release could materially filings company's Factors those with other from the and to the the time-to-time. in identified differ statements and yesterday's from press forward-looking cause will now Sykes. Chuck turn I the CEO, conference over to sir. go ahead Please

Charles Sykes

financial for results. operator good third morning, joining you us and thank Enterprises' today you, Thank quarter and XXXX Sykes to everyone

As call, results, high it John is today's the through usual overview does level over turn and we'll you operationally call business a on the for provide will I then numbers, our of then and our walk doing and will on Q&A.

drivers. which quarter, a the productivity me the let revenues them, a record quarter provide role. to will that standards. hardship, and a the a on third performance quarterly relatively another to the age some but margin, our playing unprecedented to in disruption solid reported level can We our doing pandemic, that of latest even the their is safeguards we adhere to that, best an broke depend was continue broad to [ph] of and various result in We were high clients results. in records. while We It employees are are broad of customers. families based of Thanks livelihoods employees on to to our everything It that We which pandemic the navigate while led prior dedication safety our employing decade announce minimize highest capacity financial understatement metrics. gross we the With we worldwide, pivotal of and based. this delivered has pleased our be summary in operational

sheet and are quarterly cost. decade, that basis to in Cash we organic balance we of of teams return net In margin, take had non-GAAP our very COVID also maintaining in extremely our if environment, regular incremental points cash debt, the was a at level to paid operations We while operating also you XXX the quarter inorganic down results, for all, and did almost proud best robust a a we quarter. quarter reinvestment flow achieved despite the fluid from into fourth job and outstanding account core business driving the financial a in our our outlook business. shareholders, in

to Now, the broader and I business like landscape. would discuss operational

markets and up. We continue clients see to moving our

traditional in it healthcare, card segments. We well wireless, new seeing for sustained as as bank traditional market the with and Within economy segments, and technology broadband, credit opportunities are support providers opportunities holders and verticals.

outsourcing. their it such are growth. delivery, across ramps success the national At the brands also scope outsourcing new an new accelerating food or our are our markets as same are leveraging yourself the continue either e-retail, for online and we all brands to that seeing known segment categories across program do that systems vertical target global target and market e-commerce, economy time security the are We base solid first in time, entering or

it percentage the Just last is and revenue of the This vertical average size years corner. is communications leisure to our has as vertical noteworthy, times annualized because roughly of rate over subtracted turn communications transportation three growth our significant appears four an from vertical. the three points and our

capacity, parity Promoter aged delivery or Scores. mix even indicators in travel, both support robotic offices performance terms is automation the vertical than relative as Going steps on potential performance business. and permanent Meanwhile, headwind in the process our and where exiting commitments taking brick-and-mortar commercial Net well of brick-and-mortar forward, as at targeted operationally, we delivery. consumer communications counterbalance key metrics to their and more clients better has between are and made home The in in to quality bar

for As the and moreover, we're our will agent by process we timing client sales, scope centers can we structural the to the greenlighting line costs to likely as exit this have operational client our our chain. And business summary, of and and the as investment our headway. parts In savings, versus with dealing to increasingly automation dedicated lifecycle solution in is client, been intelligence, are clients vary process In potential see multi-tenant value ensure also faster front of geography, are differentiated cost to our initiatives net be Efforts success with augmented reinvestment overhauling made resonating are which year, ongoing strengthen reduction, and and some business. permanently embrace full we home by on centers. our parallel marketplace. the and case optimize capacity rebase in robotic fast-track, we marketing, believe by we've service, of artificial capabilities around self-service,

the major to platform just simple due that expertise. we and our the domain ahead now and in all are investing is our we foresight Our reaping benefits were [Indiscernible] one curve of illustration embrace

we forced agent take delivery share. As and clients will explore new across distributed various models are home help They strategy. geographies thought us leaders, to looking are as to us believe being at market which are this

portfolio our an to to like success shareholders. our for Chapman. can't unparalleled over go John deliver balance we John? capability that, trajectory us unlock of sheet the to virus, I'd the and solid to along positions And clients predict value with with While

John Chapman

like would particularly QX Chuck. to key results, Thanks discuss P&L, financial balance and now cash flow our highlights. I sheet

quarter, $XXX.X once versus a growth of last million quarter. year, again. results revenues $XXX.X quarter million the of mentioned, X.X% in we Chuck As third In the outstanding our record reported were

revenues benefited. Third quarter a million exchange included foreign $X.X XXXX

constant FX benefit, million organic that $XX.X Excluding approximately up quarter revenues third growth. revenue were or currency X.X%

growth. services responding broad-based By to enabled well prepared and diverse includes his vertical in retail which and coupled the vertical. other as clients' constant new currency and in up transportation market program mix up a XX%, basis, our communications As XX%; business offset technology Travel our X%; more remarks, which our in of Chuck needs, and flat, health the with all up on care alluded grew was XX% financial agility XX%; to growth, as existing than decline

XXXX was last Third loss the same a period $X.X year. in of GAAP versus million million operating profit $XX.X quarter

income operating million includes X.X% year. the XXXX non-cash non-GAAP period third operating of fixed including quarter or X.X% XXXX right-of-use other same increased assets. and quarter X.X% and Third from assets, in margin last $XX.X goodwill, basis, [Indiscernible] revenues of On a of assets impairment

driven productivity, home of XXXX was quarter agent by Third solid capacity operating agents utilization, execution, increased inclusive expand with discipline. higher margin combined demand and

expense the operating -- XXXX approximately points basis stock-based the funded quarter reflects adjustment which deferred to Trust markets $XXX,XXX global plans related market XX Rabbi in to financial were or for through increase of by in an third Third quarter XXXX. impacted Investments mark-to-market margin comp

per the non-GAAP $X.XX due a tax The swing were lower lower $X.XX and loss diluted $X.XX other to another impairment assets. $X.XX third positive which diluted Of year, impairment the increase of is quarter as as earnings $X.XX a share well count, period per XXXX share rate. GAAP basis. a aforementioned of XXXX is third basis, in was versus per approximately deductible, per versus with and the not $X.XX quarter fixed On goodwill, a $X.XX other expense, share the share total from last third assets quarter same XXXX income of tax earnings driven to by record compatible and $X.X by $X.XX earnings share driven on operations, due right-of-use

total third The XX% top ago and to as of clients clients basis, period. consolidated Turning period the from as year revenues during from new the a program down driven wins XX year quarter, top top of our well in moment, share the for grew represented XX in XX% shift existing XXXX mix client approximately last at clients roughly on compared by the third X% a quarter competitors. a to XX same

quarters. We XX% both have client no comparable in

Now, select sheet flow cash items. let me to and turn balance

During DSO number year existing home of from for The a increase from sequentially. were was ago EMEA. a consolidated Capital to targeted increase up growth. basis during the support refresh due quarter along to compared days, cash sites and X% one $XX.X to was the days million DSOs purchased receivables on drop for working sheer up of and were for XX the The at factoring. and last new third mostly increased jumped clients -- earnings driven day to quarter, swing Trade by due and in in a XX agents expansion year revenues operations capital from to PCs expenditures DSOs four The primarily Americas capacity both that period. strong to million PC factors. mandating X% days in comparably, is off with flow XX.X% $XX.X

out payment stretch clients we liquidity we before, we some even stated expect more continue needs as to aggressively. As further terms manage

strong $XXX.X XX.X% remains equivalents sheet operations. cash September million, balance Our million in held or $XX.X with international was and at cash of approximately XXth which of

the X.X shares share. for million X.X $XX.XX a of which we price ranging total $XX.XX During per from average $XX.XX million. quarter, purchased share at around repurchased we of to an shares Year-to-date, have $XX.X million prices per

XXXX. XXXX X.X million under amended have March million outstanding, $XXX $XX in million At $XX sequentially in our share quarter we repurchase We credit authorized in program million borrowings end, roughly $X remaining had down agreement. and August shares under million our

exchange exposure. to continue our We of foreign hedge some

U.S. a rate For dollar. of approximately the weighted to at fourth quarter hedged of PHPXX.XX XXXX, the we're XX% average

the Rica to exposure is rate U.S. colón Costa approximately dollar. XX% average of hedged addition, In weighted CRCXXX.X quarter fourth at the for

metrics. we comparably. home decisions away quarter the some solution seats XX,XXX COVID-XX. certain count client seat alter mix let's Now, apparently by review delivery capacity approximately to brick-and-mortar reduction basis, in our due with consolidated ended to from approximately a capacity third seats, reflects X,XXX agent down made The On utilization

utilization utilization agents on comparably. year ago ago utilization can due in was of in our XX% and Americas and quarter seat skewed the EMEA increased utilization at period, XX% home ago Americas for between X,XXX XX% decreased respectively the including the Capacity capacity to EMEA Americas down mainly XX,XXX -- in The home between for quarter with quarter. the The third calculation agents XX,XXX in year quarter of have in capacity versus were in from the end the count the versus quarter. combined the basis the for and XX% for rate agent to a EMEA comparable third would in however, further a brick-and-mortar year flocked XXXX X,XXX XX% XX% be facility brick-and-mortar the and and rates broken

business Now, turning outlook. to

the the on materialized last in our actual driving two improved that based results weigh are the underlying We reinstating present trends outlook the probability ability of assumptions those visibility over momentum forecasts business better to into and quarters. forecasts client

that has well from sustained stemming and business with clients, We new of those demand consistent existing pattern to-date. driven of across lines levels are verticals seeing new as verticals the our as

As such expect we're a ramping a client to quarter increase fourth see revenues basis. and healthy on programs sequential

trajectory fiscal competitive the their attendant continued against the virus, cadence COVID-XX in believe uncertainty the interment demand and due the solid and strong performance entering a potential quarter stimulus, operation tempered for to we we're of Given the disruption lockdowns, costs, the fourth around when position.

clients of continue to we future brick-and-mortar Secondly, agent home delivery between and with and their view determine facility. strategy the work

actions As to on we greater similar such, around those continue we quarter get as third leases to clarity adjust facility in capacity decisions. footprint our taken

we currencies year and rates revenues exchange volatility of per the continued of rates were as the could between markets for earnings U.S. full or Therefore, fourth interest share income quarter and expense functional foreign quarter earnings to the positive exchange XXXX. based third on the foreign impact for the share on the have we full October in a and quarter. outlook and quarter net Third and for serve the year. non-GAAP Fourth, $X on per revenues of further both anticipate GAAP million the business for relative negative $XXX,XXX total approximately fourth assumptions

in however, potential mentioned, the or of exchange foreign future gains any part expense losses. interest now other As income exclude the

the non-GAAP below tax following factors, Finally, results a million effective ending the rate financial in XXst GAAP our of and $XX we expenditures last earning approximately above million. diluted per fully $X.XX; both the $X.XX range range to to rate XX%, million we tax Revenues months shift. period be the $XXX earnings to million; of expect of share the XX.X diluted three December. for approximately quarter million; diluted of to year's and by $X.XX; earnings range in $XX to share in fourth effective count $XXX of anticipate Concerning non-GAAP; tick given capital share per approximately of $X.XX

per diluted XX% For December, share basis; $X.XX anticipate questions. count results to $X.XX; on the rate the of financial to following With range of earnings non-GAAP the in million; call share $X.XX; in open per full to range of billion, to a XX range Operator? an capital XX% earnings XX.X in and approximately million the the expenditures we like that, revenues months $XX ending of diluted diluted $XX million. $X.XXX the and of effective to XXst of tax share I'd $X.XX $X.XXX billion non-GAAP approximately to

Operator

Thank Jake Fargo. from you. first Williams [Operator Instructions] from comes Your question Wells

Your open. line is

Unidentified Analyst

Hey guys, morning. It's for actually on good Jake. [Indiscernible] Steve

Charles Sykes

Hi.

Unidentified Analyst

Hi.

versus home much workforce of do back over a going benefit? the So, bricks-and-mortar. it you time? If agents to forward, productivity, maybe Or are significant claw obviously, where for portion clients to how remain is agents you the can retain some of try productivity higher going a situation think home

John Chapman

said possible X% a it's more recruit there's by long-term that of difference. savings. is a described at structural an think you're cost a or It differential. kind I the to geographies, always in home clients facilities, X% being the multiple without productive. quicker mean, right, for will in don't But I ability is you be we've not productivity time over And It's more cost this different. building, work as then about really run those share restricted we'll agent

shown we get helps the utilization benefit really margin's using. But Now, But our be productivity, them not makes home sharing going G&A enough, might number in really of but people again, the get that yes, always base high and long-term gains. if hire operate we've that's agent we happier may again, cost not in play then then And up below at-home structure. XX% see have you're from job as number. gains. we XX%, that And those clearly, significantly might much we is if that end right, attrition their home that productivity you so in you're to some that's not count at we

more real than So that's agent the benefit Steve. productivity,

Unidentified Analyst

Thank be going okay quarters, but should think more issue maintaining that, that then little I some you. How you helpful. the we agents a know I we guess, do -- are And that's were Okay, home going normalize to that think headwinds? what maybe versus industries maybe that -- past you forward? hesitant with post-COVID. about forward as

John Chapman

is the cetera. interesting deciding got Well, home if we've at vertical, widespread, not no home, et what's there's a there's out look vertical, stay to at one or you go

while we're our but move seeing what's terms it mix direction to telecoms be and mix on can still than geography. higher they'd home, U.S., based We So, challenge. going the people sustainable it's think both movement, base and broad a more moving support feel where Philippines to that we'll stay the Mainland, as proportion makes a India, most long-term there'll early very where -- that action, it in profile. like a that of it's it change number, we've disproportionate decisions not well But one we're looking different being all that a in do but we be U.S. the and some be of of client out don't choice. and a business as to locations. basically at-home, we're more then and seeing clients vertical, again, days And taken and helps get it Europe, the by infrastructure, completely making strategy. I infrastructure at-home we will going be But play terms good a them agnostic onshore think to there'll for home more at still we're say in that long-term or much a like seeing of geography, in take think have of And but in is of that

Unidentified Analyst

and segue, the little remarks could you just into we you about I how changing further those if what communications prepared improvement seeing trends then bit a vertical, a time? talked maybe movement some -- And at of the bit could there, Okay. drill that kind over look overall

John Chapman

points telecommunications domestic from didn't the didn't we've kept market. because the largest it of our didn't telco it's ever head mean much the at too but like Yes, sense of then bulk -- I clear that that, geographies an important been we've part people, for we the mean, having in didn't never we I about client, all the it make away this was And telecom. when always that telling client, as think geography, we is work and price that shied one

is to And so see telco and benefit thing overall Again, we'll the is hopeful longer we the -- plus we're flat, no client. at equal telco targets. now weight that have to really a XX% contribute it start growth

that numbers, the better client a new that can the now but see and win still again, growth as through the So, helps can we're vertical. business And -- still, you we've place. and coming that you've which shown much largest weak, that fact in vertical and excited by you a that we despite we that still and overall, offsetting it got that's describe overall got

growth In profile, been employee years. couple of last for terms of the has

again, from target it So, be over equal of hope XX% want could would contributor I if to term. you shy that I long-term we it. We see growing. growth, away an next think the And our don't medium revenue

Unidentified Analyst

That on the was and quarter. guys helpful congrats

John Chapman

you. Thank

Charles Sykes

Thank you.

Operator

Dave question from from Your next will Baird. come Koning

open. is line Your

David Koning

Hey, Yes. Thanks and congrats. guys.

Charles Sykes

Hey Dave.

David Koning

now one little been. is guess, maybe new just as around too, signings, as into a ever could it I it just easy signings, like you like probably actually wondering And that's clients then it's thing new but it's that it choosing that even seems of of bit it seems sustainable? next kind travel as good Symphony, volumes, is, that's above like not the probably Yes, that's and I growing, momentum like some year I'm year, mid-single-digits, as business about seems headwinds turn And encouraging. decent by headwinds comps? by mean, talk those keep your hurt there's right still for these just good if and why like, you, be secondly, is this how, transportation, almost as might

John Chapman

mean, of you're David. -- is right, your fueled Well, not this I Yes, by that's been to growth thinking part we question there back are is COVID.

think look talk really a was if back you we last Let's that that ton. because saw about I QX signaled we year, to when

in nice at pretty COVID -- despite that clients. successful, the we we've been on a start look you won lot And and lines you're right, so just and yeah, that executing new of grown really business, is growing much but we've actually and clients at base, and I if mean, broad have year, the of existing its place into new was

close good I news think that's I the out. new is biggest that saw saw telecom We just probably the despite sales the growth, flattened been getting an at and three the travel, the And you're done -- thing right, I business. out. And if this news we've points travel look you call like got we we is to to is, said, trajectory of the achieved year-over-year. would absolutely if headwind of on you're work but bad always being as

there to Now, expect negative around we is travel the stay only flat. our

guidance, think currency I if impact at look numbers, and number probably that, a travel growth at at our to if headwind above you'll say the deceleration, and the X% because for on there close why was constant year-over-year QX. still to our we'd we've and think got look X% X% in I you that's but be our travel of look you

-- be be at new there broad growth. growing year. development unless headwind. next and us a excited based just intense? a year Are will wait travel that side hope year, clients is of of less be is COVID and going some a still to provider? with of COVID think business, growth COVID as will that for keep we're wins beyond they So, and but our or we activity. to next going an for our be our especially the the QX Yeah, tough to look still that travel question they're we've airway the we've know. is if we've you jump development going our because I in comps, business and got got business a this little for new But got done, We a don't the now the until going as lot headwind clients nice existing warning will away bit then, that a become The by -- will is tailwind, to be it is soon QX But existing

Charles Sykes

say just to David, comments, add John's things would two helped. I that And really

in clients, to a First of started the got going to of call a market smaller about after, expand a going economy. that sector effort very were even we the concentrated all, and around really and that we wakeup and made being we couple conscious out to companies so

have or much now helped So, it's and in But capabilities show that I very a we've when is with the intercom, story to said that basic. now, investments like certainly -- and we comments, intelligent has tell, certainly with made agent everything. better do my whether automation, home and up we our

So, really value coupled is proposition basic. pretty our we in that I growth segments new with market do before, just efforts target resonating, our didn't think seek to

David Koning

of to to putting more today my Yes, guess your before like, pricing obviously margin the than hey, I higher we're able comfortable start to end probably progression? they of notice that's has continuing a say, months been that that kind and what type about because even follow-up, and more margins do going at-home, of -- you're you feeling like hey, like, we ago are feel kind the so to even Or clients you great. pressure? are and saving are incredible, progression are stable thought biased few one

John Chapman

not asking impact David, it's understand G&A place. we've they will much the pretty take I home, got all reduction, of clients price for all for people Yes, us a our that's still time, that. we If I mean, mean, working because that. hard. got temporarily are from in It

providing you sure power of of and name working it. in home talked net COVID costs, think remarks, us that and we Chuck's prepared some has and costs, really I people especially fact, from infrastructure In not about increased

if in have and where be understand there that having made there's so the time committed share basically some facilities, to -- of end get a permanent we may to changes clients And us significant that of that benefit. out allowed if and up will

I the too underutilized of have an don't all client, whole that say much, David back to us. really facility think us. the even G&A having how the It's it if goes issue an facility. not that having if we underutilized and but a It's -- it's early even to is facility hurt hurt

benefit as our And so their we for without margin It's of eventually grow as because that it's only But get well through me still we we the we'll said, can facilities the by and you to you of as have in to further are our not versus help strategy. the early being that facilities keep going that get clients about say innings not where the profile. as much profile a early this, portfolio, on of of take size those growth make the permanent location gain limited how the when decisions sudden out clients. as the all business of building is a just we to too

Charles Sykes

very on, the profile, business being is lumpiness home, part I subside. the of and with two that that think we're David, the things will delivery you're the more more in just hopeful

that margins. positive the is then are the which on certainly impact that just will other nice characteristics have two So, a will our help think company. And probably overall speed, I thing

David Koning

job. call. the Great Yes, to much so it's great Thanks for see.

Charles Sykes

Thank you.

John Chapman

you. Thank

Operator

next [Operator question Colicchio. comes Vincent from Instructions] Your

Your line is open.

Vincent Colicchio

guys. Hi, Yes.

Just couple for me.

time, continues are services it's to grow some for nicely. financial Chuck, it been -- large getting curious, So,

of Just are an on we headwind? a like what are may point anytime didn't size and it thoughts it? your become And peak -- the soon communications we where at mature

Charles Sykes

When--

John Chapman

not John, Vince, obviously Hi Chuck.

Vincent Colicchio

to not John that explain. was necessary

John Chapman

can where we a to across successful are we the been financial all which clients. But that's means not clearly we financial great actually are peak, we the in terms, used You and services word we've -- we're dollar with specialty very that Clearly, deliver services. really services. reach in succeeding as

kind buying, credit So, it's FinTech, of card. money

see I grow but number XX, don't So, there, I in distributed. either quarters contribute where the -- again services. double-digit don't it's even in within it it's big financial size the think or pretty to equal. will us a last XX, I to clients continuing But the Again, of vertical, not whatever in the few it think for the was

number, to a X% If for yes, be your to out X% -- see in of financial that lot you opportunity not those no reason think there. but I There's may come growth in there's services don't range. about peaks, that off why

have winning point are share, vertical the succeed, So, an than of equally means -- about don't peak. in will it -- the to client should in it largest Again, whether clients vertical. don't well where in issue where financial telco more how yes out time be and is are vertical at We no more, looking in the biggest any that's we a opportunity outsource what of matter I or to I so, think and we think -- still not And the there. vertical don't want terms telco in itself? dynamic it's not weighted this that's really not XX% and and that's we were there's

rate. we'll continue XX%, on out XX%, XX% that of there's think much don't there. also will market growth think difficult kind -- XX That long-term. I too But I opportunities be

Vincent Colicchio

clients had opportunity due to outsourcing market a COVID expansion resulting And is cited as term? in Chuck, longer demand you of driver, an the

Charles Sykes

for -- it achieve but highlighted I companies certainly or not think and ours it we're meteorite in sure. zone. can be that's that we're that very great that has vividly [Indiscernible], to way seeing certainly resilient we I do

Vincent Colicchio

review it's is Clearlink could how curious how I'm John, and you maybe if performing? large And,

John Chapman

I to gave would I the him answer him refer last last quarter.

Vincent Colicchio

Can't help a guy for trying.

John Chapman

I the consumer sale products business. not our all consumers chosen overall operate growing and Vincent we we potentially much contributed purchase and news and in the business consumers as digital excited help moving are connections business or their mean by I consumer searching for. nicely the we the at help they we the actually Clearlink overall we leads and And numbers. being grown the connect services find that they're their then mean, actually them It's told where brands growth I it's That's by to the those to properties consummate and call where what decision. then past those as

So, in of nice growing that It performance expansion a we've and in hopefully as even AT&T we business growth in even seen got businesses and Clearlink's piece line the marketing nice better. actually even the we've this And business. of better other doing we a side see on really the headwinds had there, that's But immune not to well. sight for the margin year. overall expanded XXXX of margins our was

still there's percentage it's the numbers same some coming it's contributed see nicely elements about. So, through and that hopefully we'll next year. joking excited And we're the that around really aside, and

Vincent Colicchio

guys. need that Thanks days. we laugh. Glad could these We

Operator

question your your question, not ahead. able whose someone from And asked next to please comes go we Please gather. were information

Joshua Vogel

Hello, can me? hear you

John Chapman

Yes, Josh clear

Charles Sykes

Josh. Hi

Joshua Vogel

Sidoti. It's are Josh you guys? at How

Charles Sykes

Hey Josh.

Joshua Vogel

because apologize late. on call I I the hopped

this, me out So, if you sorry. hopefully of know, with you're help questions couple a any repeating can of here. But you

that but Just virtual or the short-term from the took handle have curious improvement at So, when capabilities look taken how initially we was had they recent recent all and competitors results, you now strength it. to may the work, work? if may there, some volume have share the not at much was of revenue the

curious of just about some there. I'm taking they're dynamic that So, back? the business

John Chapman

down work, or would That's X%, quarter. let's easy less is not definitely think COVID quarter work we than last virtually say, -- answer, put we it would I none a probably said, I couldn't roughly of from than moved call other surge less this because as we temporary at-home. was both COVID pretty do clients, that temporarily

what's moved to created As but And operational weren’t year is been potentially it's QX And not that said, how difficult most just people work basically the who most derailed I at successful growth year, is explaining this not last of about saw and I be of this and COVID. by testament the to year teams was of XX% growth spoke the the year by we company. was to company you exciting home. really COVID that's on, what's every going this

growth So yes, we've the and there's temporary think got so revenues this outlook and about year, nothing the that Josh. not

Joshua Vogel

curious, the site? only are I'm the performing seen headwinds, this is performance? And that how related be on of to such why Sounds goodwill work why project Can great. Symphony, delays? if impairment you. And unit of done rest not, Symphony And Thank enjoying businesses the is with regards pre-COVID? strong to the these

John Chapman

has the of you've justification pay the got lot you've getting got worth the a what of financial asset factor and the part whole these Symphony it’s new is and And grown But value, materially to especially call the the site. then that on And an the is done problem just going a but base material is long-term a rates, business been your overall, your that clients, and current balance changed on overall. this there's on right to goodwill. it the discount remember caused think that an move and can a on issue the just you're the value was for sheer to long versus sheet. just much around is of when scale goodwill if year-over-year the see impacted. the going Symphony be -- of just based the factor, value that's clients asset enough is got to and The is now, obviously, need your consulting a I and we as the you've see level that project, practical that on like of an -- that of got current what growing so the and discount difficult. a what change have significantly there's going new we work it's significant I update, hold growth doesn't buy measure mean, you is trying mean, needle on what time relatively market business we winning and doesn't just issue. in to -- impact to small they're Yes, the you off. not is when got Symphony the don't do long-term it The business of business now asset, it's it goodwill And an the that and expectation, we price, is math the we we let's then a last calculation -- to so

as think that a yet we going of and to see coming Europe's And to just back really you really business you're what but bit seen COVID seeing not through. signs, help little is we've that's a So, is recovery would in it, can through thought Europe that imagine big of continue And can piece this a where you today. us because none us March dump QX.

But long-term us but we've them have to just and reengineer COVID-XX consultants these year-over-year, Josh. business and are impossible. much impact the like going. making got where internals and based on to unlike you normal our we sure just the goodwill of talking really we no help we that, is it's are the are viability take the so skilled as And as in about XX% time that business, But mean, potentially using were we're growth choice I times using times difficult can. we that the again, So, this and of write-down where we're

Joshua Vogel

the the there's future the release That's specific? kind or a is of end potential of in the of it percentage to sector base is changes estate mix more committed rebalancing client and what market in helpful. I'm Thank their And footprint press real you. evaluating your comment and as just and delivery you're curious

John Chapman

and probably We over make I speak Yes, just home onshore about XXXX more don't at think to it, close you we're vertical-specific. nearshore. permanently I believe of number think this and we could we time, be got kind seats, permanently, point we committed XX% a now way in that to that you think do at took did delivery is will And And say about clients if at the go. we of think choice about or people XX% at to offshore stay XX%. footprints got to we've would if I versus long home. if its Rough think number still

X%, the real business, under-utilized, intensity, at able ability got action [Indiscernible]. aspects which permanent for the Now, long-term kind as cetera. up facilities spoken of we'll And grow, number and is cetera, capital we estate made, et to get of et great X% chance we've decisions and to last is that's about take on fairly both in these be terms you've that's are of from the

Joshua Vogel

way XX it or And lastly, as you basis, on give just unfold, all? I'm model it's engagement, curious you it's reinstate the and guidance backhand feel we months does you are is the maybe you about that nice And great. your and a how the just still to about to do see comfortable next visibility three-month and will a Okay, rolling talk like year, that get in length basically, to, outlook? kind full into at nine to of of the quarterly about of asking change going a year next

John Chapman

because he there's medium as get reinstated around that there's last normal and our our it's Yes, a I put but the I to can got but we'd assumptions office, working, so less. we got still there. of think we'd to guidance. in we've we we've that's and year mean This got term -- to actually is, time, just got is in guardrails got hope. decent I'd And we in more still more of that we we so more have and visibility XXs many we me to quality people, that suspect -- go cost I people variables the still lots in or same say becoming don't reinstall more decided why many we say -- is forecast, this still any sense COVID what had we've are have offices we do people quarantine do cases, no, asked there's

will I extension got economy moving, and to us coming look we obviously, too how that exposure that see one worry I'm our guiding economic I going an and brands that off we for the as we sit it'll then that sure situation think, well get in in to the our on eye there. quicker we We'll show through macro able as But when we clients. guide here as keep I today, as obviously, in you better be be the that and of the strength not hopefully is be an QX. much the at don't we've support numbers. But QX, can't that's that everybody

Joshua Vogel

to talking Always taking All questions. my right. for Great. good guys. thanks you Well,

John Chapman

Josh. Thanks

Charles Sykes

Thanks Josh.

Operator

back the to end closing us any over to Q&A brings presenters today's session. I That the for turn of the will remarks. call

Charles Sykes

questions [Indiscernible] for thank day, you next with care. as we always, up look Take catching forward your and a quarter. good to have everybody and you

Operator

call. you much conference everyone. Thank This very will today's conclude

disconnect. You may now

Sykes Enterprises (SYKE) 8 Nov 202020 Q3 Earnings call transcript