SYKE - Earnings call transcript Q4 2020

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Operator

Good day and welcome to the Sykes Enterprises Fourth Quarter 2020 Earnings Call. [Operator Instructions] On the call today is Sykes management team, including CEO, Chuck Sykes; CFO, John Chapman; and IR Head, Subhaash Kumar. [Operator Instructions] Please note this event is being recorded. Management has asked me to relate to you certain statements made during the course of this call as they 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 the assumptions made by and information currently available to management. goal, relate we intended to forward-looking our expressions and to as statements. they as the such we expect anticipate, similar identify Phrases company are differ the important statements. forward-looking actual note is those that It results in to could materially such from projected company’s statements cause the forward-looking company’s the and filings identified Factors Form in that materially SEC those press with to results XX-K actual could in time. from differ yesterday’s to from the were and time release other the call CEO. turn to I Chuck and would to like President over Sykes, now Please go ahead.

Chuck Sykes

And you, and level Thank high Sykes thank over for thanking the joining COVID-XX. will phase call, numbers. XXXX operator. quarter John for then employees we financial for the today’s a fourth provide I by overview discuss begin will to of you I Good hard call walk morning, our to dedicated their of want will On results. worldwide our everyone turn through us in Q&A. you results, work Enterprises and today and the

are they families are and our disruption recently to is in vaccines our meantime, everything the and to facilities. on against them to COVID-XX have continue safeguards for the employees rolled the standards to their all proved effective, are minimize highest out. In to that We can financially therapeutics The the capacity good we approved employing adhere them. news depend other being that and in we that latest the operational safety doing

business portfolio that service full existing turnkey capabilities their or experience informed digital enterprises and capabilities spans of evolution, purchase to make about against our solutions our the people, begin marketing point success small our communications are our vertical pockets in of the the enabled played to by the vertical some important, resilience. or grow an third that marketplace. out decisions of in work-from-home enterprises second in economy. the exposure media were revenue to XXXX sales which of by the their even organic rate should the and of drag leveraging to is financial is vertical and a for our as more year of management, top basis various as our which our range. It at in record life vertical, medium we pandemic. basis that pivotal in as marketing, customers of it agility, company, news clients of of historic softness did strength we strength our the and digitally of out, helping likely year see just the While a the annual to customer transportation also capabilities growth our least reshaping as revenues and have digital back-to-back we the strategic drag consumers strategic properties Whether platform full results truly transformation. strength are sort good dynamic, it’s with the than The stay-at-home our points communications our particular, delivered that of end highlight And points happy currency The now results to to addition transportation as have probably the shifting our close Those The around XXX constant helping help around the and digital the of with with reached X.X%. highlighted leveraging rearview the demand global drag the our XXXX sales, foundational we global around proactively underscore our from is adapt performance mirror, helping vertical serve, retain culture from quarter, to half challenges moderate role bottoming well at had in our of cycle our But that with coupled in fact inflection and that strategic consumer these is trends delivered sectors worth XXXX. declines business through noting to means this clients close X% workforce. grow XXX despite from X% to revenue

Additionally, segment. we economy traditional are market and seeing sustained new opportunities with

is wireless, cardholders credit banks Within providers broadband, the technology the health verticals. support and traditional segment, care in well as it for as and opportunities

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

we especially margin Turning profile, here. proud of are to our our achievement

we with powder as from of with when business from decade when high Better further expansion able the of we years. a point the to of was if quarter yet, giving basis to coming XXXX market-driven XX did a in some to trade-offs Although shareholders, the more to to room out changing of mix home. operations margin carrying we And XX%. the provide with underutilized value hit a we for margins earnings XXXX further our year. really adjust X.X%. level non-GAAP Cash investment associated operational are company, growth overhaul incremental for home they dry Hoarder, margins operating up growth than between is our repurchased flow for year, if shares have Even as will margins acquisition make back clients operating continue and XXXX, chain in non-GAAP to This commitments delivered believe solid impact the Penny have in we we that million to was finally, to operating reinvesting you IT strip brick-and-mortar the boost and a return we capacity. make because adjusted of margins agent on X.X% And increased and costs revenue stock EDC work are pricing hit did expense. during the the solid in of performance record, capital and our the underway The that delivery, us as the the the XXXX X.X initiatives the Xx

work-from-home virus we worldwide, our us in for of capabilities various as more as investments market geographies begin in to rollout take and well transition enter in their on the steady which the economic to our looking optimistic we So path progress, will competitors. sales marketing, help with process across our we our automation, artificial position thought that our in have believe on to even easing as digital And intelligence leaders platform, service will as And strengthen clients is the as from the these hearing strong be mutations on and cautiously the it shares from gradual knock-on ongoing we pandemic. almost decade and the Through believe COVID-XX work-from-home places and with given to differentiated just of us momentum we’re XXXX, ago investment and that is they self-service, phase midst the placed investments growth. continue a of our benefits about, our amid of operators of with business we vaccine state, consumer lockdowns are seasoned and actions continuity one our the platform life us confidence cycle full progress robotic path that business. around the

success sheet, Chapman. to solid pace to and While this balance recovery deliver our over John? uncertain our With capabilities, John during value portfolio of that, us time, I the the would we like turn clients economic along solidly our can’t to of our unlock unparalleled to for predict with call shareholders. positions

John Chapman

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

volume the the foreign financial outperformance basis, by with quarter. to was also included versus broad-based a we benefit. than $XXX.X the remaining of continued revenue range benefit. revenues year, the of revenues reported to million. X.X% quarter More revenues $X.X million end foreign million quarter. million comparable Chuck $XXX XXXX year-over-year the We a outlook half of $XXX XXXX million increase record Fourth On exchange $XXX.X fourth top of As $X.X exchange of due million quarter our growth exceeded record our mentioned, a in last in performance

constant Excluding X.X% XX%, includes revenue up the agility and million communications By X%; foreign exchange up vertical thanks a benefit, was care services health up our X%; to up $XX retail, currency fourth which around quarter or flattish. organic were markets on up technology XX%; constant revenues, business was diverse approximately mix. other, currency basis, financial and growth, our

merger for cetera, quarter the impairment, prior income in versus quarter XXXX operating and the million XXXX than an Fourth and correspondingly. XXX as the All the comparable offset of basis operating the X.X% impact period. vertical. versus $XX.X period million or basis integration, million year of which such million various was points in $X et totaling XX% X.X% year, versus more transportation XXX last versus period income $XX.X points margin operating Fourth with reflects travel decline same was $X.X in costs

margin reflects increase per deferred comparable still accrual expense earnings record periods to of $X.XX lower the financial $X.XX of a a driven other quarter year the $X.XX fourth basis stock-based $X.XX count year, other results. $X.XX by a was $X.X rate. costs, operations, well of in XXXX points is and lower $XXX,XXX XXXX Excluding Fourth XX by points, the $X.XX relative the $X.XX financial XXXX, swing expenses, operating in to versus lower in the another as on compensation offsetting mark-to-market fourth than markets the higher same On right-of-use Fourth aforementioned other last amortization in quarter basis, XXXX at and versus as global quarter fourth of fourth from with a the driven $X.XX and outperformance quarter income in both assets. or basis a operating XXXX per in fourth impact increase, tax approximately XX more an an from per a performance-based approximately in of approximately count the operating quarter approximately or driven in other due period related non-GAAP quarter. quarter to non-GAAP to were tax and driven million merger remained by diluted total Of long-term XXXX impairment, positive of due intangibles, and share acquisition-related impairment lower annual basis. expenses, unchanged for comparable assets planned adjustment integration share rate X.X% comp, up swing quarter share to $X.XX a a earnings by share share ago due

to due a a XX% of our our consolidated during of ago total XX% approximately mix broad-based represented clients. the top from outside basis, to clients down growth for Turning the XX moment, year XX client period from revenues quarter, on top fourth our

In no comparable client XX% both fact, had we in quarters.

to turn let’s balance and Now items. slide sheet cash flow

During was mandating a and growth. cash from the X.X% combination to timing, a the sheer for by both due XX X.X% DSO strong increase combination of number terms in PCs million continue we before, EMEA some stated capital swing support and increased flow consolidated $X.X a year DSOs The payment from expansion primarily unchanged revenues receivables purchased And drop-off factors. driven up existing more working refresh to have client days, sequentially. for quarter, due Capital aggressively. for to with of The were a from to in X agents, capacity ago quarter XX to and of basis jumped targeted of operations as stretch expenditures days were to expect revenues and of million manage needs is out liquidity last earnings period. Trade along to as to DSOs compared The comparably PC at Americas we sites factoring. home region. $XX.X year fourth days on was clients in increase they that the

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

from million $XX.XX $XX.XX around ranging per share. purchased X.X to we year, with shares prices the During

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

to foreign continue exchange some exposure. our hedge We of

respectively. we average full the PHP the weighted a hedged XX.XX approximately For dollar, and quarter XXXX, and X% XX.XX year first PHP at rate and to of XX% U.S. are

year our weighted for first addition, In hedged the full and Costa colon exposure to CRCXXX.XX U.S. XX% is at average and of Rica approximately respectively. CRCXXX.XX XX% rates and dollar, at quarter

decisions respectively, of EMEA XX% for X,XXX, in quarter. in of XXXX were Americas were comparable shown the XX% year however, The count year brick-and-mortar we comparably. home basis, delivery agent count down increased ago broken agent reflects for away home at in The the in utilization capacity EMEA unchanged Americas reduction approximately Americas the ended would a capacity by and the seat further including a for XX,XXX COVID-XX. fourth certain the quarter X,XXX alter On and approximately have versus fourth review permanently on the to utilization and down utilization XX,XXX and The metrics. from basis XX,XXX solution at rates seats ago to and let’s from capacity some utilization XX% Now fourth EMEA consolidated Capacity rate X,XXX the end made quarter. for quarter XX%, the seats, due would utilization calculation, the to comparably. in comparable have XX% in mix clients was seat quarter a to with

Now reflects those of XXXX driven our existing new markets, stemming first turning from our to year business pattern across as with consistent verticals lines that business levels has date. quarter clients and as full vertical healthy new of outlook, the our and business to demand outlook well

our reinforce we largely up investments to full our remain of agility step – its to IT-related sorry, and historical client and and maintain, infrastructure information first outlook programs year marketplace. quarter pattern in as levels We the expect through ramp

outlook from diluted share also of Hoarder revenue XXXX per earnings $XX quarter Penny the first Our reflects or and $X.XX, acquisition. million respectively, The contribution

in to just revenues to expect have market, the pandemic. strategically remain in $X.XX approximately address XXXX, million For acquisition positioned approximately the contribute diluted we share. $XX We in and the per earnings well we opportunities throughout as

adjust their XXXX, facility determining Secondly, in the those taken in by between we view around to leases capacity continue delivery future decisions. we to COVID-XX. in our we and continue such, of driven home to work as get similar clarity footprint, clients And agent brick-and-mortar strategy with as facility, greater actions

and quarter of million net company’s In which the and to currencies $X.X we year. GAAP revenues million other of for full the interest positive and Therefore, outlook revenues million and rates total are on continued operate XXXX. earnings year roughly for negative, both to of could non-GAAP both our Third, XSELL in to the the expense accounted exchange exchange between foreign expense based full Hoarder. first first year, relative our first and reflects per respectively. method. million per the stake the functional the The equity business is approximately for the full Fourth, its $X.X the and rates U.S. and quarter January and $X markets $X.X for the the quarter, earnings impact dollar growth anticipate in investments quarter impact and Penny of remainder Technologies, poised the the assumptions on the first related volatility under interest of reflects share business is of accelerate in The its share we acquisition the

$X.X Penny exchange impact the interest however, For $X to is expense income amounts in interest million gains Hoarder. and foreign The XSELL, remaining the The of due expense, due million roughly the or any exclude to potential year, losses. other

we year to by effective be prior goodwill our year Finally, largely was levels full XXXX impacted year rate expect impairment. because non-deductibility below prior of tax

earnings Considering earnings year. share rate anticipate share a the effective roughly the revenues for XXXX per XX: million, non-GAAP approximately $X.XX, capital approximately million basis, ending We year million and $XXX of full months rate in be expenditures range financial $XX the prior results diluted the $XXX in line $X.XX to in of an $X.XX, with of of of in GAAP following of the $X.XX to diluted the we factors, March count tax to per to million, tax range expect share million. above range both XX non-GAAP the approximately non-GAAP diluted XX% on fully to $XX X

that, and the the XSELL non-GAAP final questions. million, earnings With would in impact following both million. on Technologies. to count XSELL outlook, XX range rate $XX to months up anticipate approximately exclude $X.XX of earnings financial approximately for the GAAP to in effective GAAP fully results: Operator? capital the the per I open the the $X.XXX $X.XX does per $X.XX, full revenues first million One quarter note we expenditures of $XX of of approximately earnings of For share for non-GAAP year in diluted per the include billion, like diluted share billion tax $X.XX share range XX.X to non-GAAP, the and share diluted impact of earnings December XXXX, to Technologies, while call of and per XX, of the share diluted $X.XXX XX% diluted range ending

Operator

Instructions] Please first Sidoti with Vogel question go Company. ahead. Our [Operator comes & Josh from

Josh Vogel

you Thank you. sounding have and too the Bowl Chuck, much Good And much better. TV, to to to scream morning, say Luckily, didn’t great just Super hear John. I got Chuck you. but the are at you was fast,

Chuck Sykes

Thanks. appreciate I it.

Josh Vogel

Yes.

question, agent that client post-pandemic? like So do home split and comfortable we would when between my still about brick-and-mortar, think feel commitments be a XX-XX first you it

Chuck Sykes

it that actually would from Josh, probably to is into safe. remain be we depends. companies XX% and I now, services the the talking general to anywhere the think of from to In Because the financial U.S., we number back our work home. could pretty range, a like would XX% same centers. are we in market, the are it financial Right European thinking are we clients to U.S., in and closer in about I want think, services lot support get the

our centers. the bit XX% that world, Offshore, interesting clients, working to from is most affects the survey our that come that for around and stay to this home. the little pretty want But a it’s much want when what’s into is employees, So, there. we back part,

thing, think to be wanting place. in I going to look we’ve So And another. employees put we the then are got to get want policies that XXXX, at in going to that do – it’s the we’re government one who because year clarity, being really do you’ve to got clients

clients XX%, saying to that’s governments how to and out if only buildings are end. trying in shake all want but want out, out So to exactly figure are the stay utilize back we can we in going go to employees

until are it’s we’re think I to XXXX, general, believe working everything. we long-term end, I more to virus. commercial So at minimum. real going having do to see and from stay when wait at that estate, a will with everything with the going But think basis, we take it to what have XX% people color saying, just happens workforce absolutely, a and I as what little a where bet the at kind because on of you to clarity, fall in But to to I’m in and we’re see lot mutations wait have and I’m I unfolds give for trying our here. but a we home going of these have the more things more created minimum to a home mean

Josh Vogel

margin incremental course. I the that But all also the for appreciate then goes could at-home? usage pricing Yes, up you see of at-home on the as concession accretion line up. color or give you net there. benefit that What’s usual again,

So, ultimately the incremental benefit let’s or – XX-XX, does where the what there? say, should XX-XX is become even split

Chuck Sykes

commit that, for pricing, XXX% X% a to wants are it than can willing around will be to brick-and-mortar. I right and that be X% now, to to that, say less client Well, at-home

absolute of However, pricing, make we with kind as will amount profit. a of the that dollar same company,

So into that reduction it in case. doesn’t translate

sense, better now it’s able clients be really of to would because opportunity I right reduction. situation, we the our really affording facility wanting price what utilization there we – situation. are – no somewhat to but... it have is us a mean not hybrid us, that And For in a maximize to call that be so

John Chapman

the at-home about the if intensity look at mean, look we is it you’re improves spoken business. demand, – and Yes, ability scenario, reduces way you we’ve And you is opportunities. side, around. I at that swings talking And at about Josh, also you about grab before look also, of G&A the more in at-home I to And it’s this, if sitting what the at in It’s that spoken the Chuck best, has idle, – long-term reduces accretive. your worst-case the in in capital in when don’t past as mean, is neutral the mean margin. to other that’s get I terms I have

by growth in got a you’ve If you’re opportunities. not also facility, boxed physical better

but is great price I I In same. So we is is any some downside how what question think be give decrease. the Chuck’s world, could saying to the we there. absolute some think don’t that’s upside. of we could would the dollars The the good keep how it It And there goes. the perfect keep of could if it,

we’re that’s worse we’ve no off. is and All flexible. got less capital-intensive business So more a

Chuck Sykes

yes. Yes,

Josh Vogel

And complete that Yes, more just makes one vein. sense. on this

that You about this you up building comment to investment level maintaining considering remote making delivery a are the the it made bit. continues of infrastructure bigger or make pie? piece planning a What year model out a the of in

John Chapman

is margin margins, not one but a double-digit it in higher I Yes, our percentage share is you mean being item. the look we’re in our per overall than it got mean expectations. growth, was I we’ve Josh, XXXX. little operating any really at and you at think earnings if look There bit what conservative margin

points, there IT also the in investment think end in our seeing combination and investing things, infrastructure. and accelerated which our being you’re – nimble a is investing I to but in what agent cloud also there of probably more in is one is of moving

clients got still are and demand between difference two and kind what making embedded Chuck’s now. what this those things as we’ve there, in and fact, got where what want employees of mentioned just guidance decisions, clients want, final plus our So we’ve the governments

of today the in we’ve kind the our assumed bought guidance, so we’ve that year. facilities of will have And rest the

time, will moment changes at our we we help profile. in further-out that But will get those may be quarters, the to those get case, until the we’ve that in assessment kept costs. we this when make and of that clarity, Now margin not

that So maybe you little. a helps

Josh Vogel

definitely it last off one of And one for that. of just No, building does. me, kind

a long-term pared-down the footprint be margin XX% X% long-term XX% to margin greater see digital XX% we it traction this target had thought about like reliance operating of could brick-and-mortar, do would on a you business? Or the portfolio range. in and have look You’ve then? there, that to what If you think

John Chapman

We’re and record I still do on of got the we we’ve are performance, year Josh. XX%. focused X% be X% XX%, quarter to a mean end record had clearly we the want a upper for to at Sykes. to And

about margin that be profile. talk a we can let’s the in we what for you greater outside it’s been need of X% think do. that that but not we than And X%, like with don’t definitely we about to thing of XX%. company that’s market in operating something consistently achieved, getting about getting the consistent. So kind our of that’s about think X% then we’re yes, doable. it’s being the is at where same can and – me, We’d But when X%. guide it’s be talk think to to but then about, in once being past, to higher the end X%, we not the X% the want And at X%. look X% consistently about to to we Because growth to It’s think being terms

in want back always We in be don’t years X%. we and in – ever to X% a the were there. sometimes few were we So back

want We’re XX% actually to upper if solidly of some look to the them to now get XX%. X% some to our the margin. operating end in compares, the you of then We can’t at And that X%. get of

you services, strip specialty really are over So even number. the TP, they their somebody XX just like when a out

X% get mentioned. focused best of to So what that outside growth the just be challenge. that do We the that we on still to the a think are XX%. we especially in operators first it found we delivered talking it’s have to even start consistent upper business – the get the But a where before That’s about want XX have point that. can that the echelons challenge. to And the does to be of some real in you we number can difficult of kind

Josh Vogel

Totally what the just that in year clients? And could understand. new the you. prior? Thank traditional from one split was versus sneak thank just QX – how of did more, in If you. I differ I revenue economy

John Chapman

defining because is I disproportionate around clients have reason I that growing Josh. get a verticals. have time. specifically think hard long They clients But new why a would say because that economy client? – is versus as at what What for Google describe is don’t have traditional the those new really been clients. is, high-growth we a exactly find and say of describe economy. would it’s that old look I define we’ve been Is we don’t you I those really I I versus you of What could as in try that, what number economy what could are eye the to beholder.

they vertical, money traditional clients of we’ve they new banks within got that some think high-growth us that are helping but I us grow we’ve that So lots financial are vertical. grow got but that – our in are grow, help sector, really embedded services fin-techs helping also you

So we number. to new ask the you logos in which number as new more I need the Subhaash exact vertical, I look at disproportionate circle – a with it a space back say space, economy in that on would to are but of of

Josh Vogel

questions. my guys. safe taking for thanks Well, good. Stay Sounds

Chuck Sykes

Thanks. Alright.

Operator

Koning go comes Please question with Our ahead. Baird. Dave from next

Dave Koning

Congrats really on Hey, was Yes. good a guys. XXXX. –

Chuck Sykes

Thanks, David.

Dave Koning

Yes.

an least different revenue. the And like this sequential to for as similar of your you’re through is revenue at I am the year guiding might the But normally, low is kick just or be average kind maybe the the And year? to just of year. that the ramp number wondering be to what all it normal of looks pretty So kind it the off, kind QX whole pattern for QX quarters year, allow year terms similar guidance good quite QX in this of part would of the is way for growth.

John Chapman

is would would say we say on we give usually the quarter, this, I full is full what a we year, lowest QX guide year. decided spoke to general how and to of Well, number in just talk you for wanted QX still guide forecast. is are for What did to I about struggling the whether we about David. and our would we But clients wanted we

I I much think in COVID And forecast. there would more world, QX is the previous existed variability more confident But than say in more it year, is look much at our if full variability. there clearly, years. we’re in you still today,

produce we’ve account. under-forecast work so is, of that have vastly we What into our think used we would I the true what XXXX. We And out-quarters our to obviously same say, the numbers to is in if XXXX and simply you I would say forecasts. clients with obviously clients taken

think everyone always currently if QX as conservative – is say traditionally, we to So we would more uncertainty be that think side. the I But a what there we little because even I understand seeing, it’s it about are we guiding, felt than there but out bit might we but X%. the helped through are on is what QX numbers, is normal QX what in a wanted number give

We have…

Chuck Sykes

lower. is QX

John Chapman

more our is year. QX X% work and clients we guidance, lower, our this point. that David. on accurate. think try exceed And And we’re hopeful can the this is to focused at and might but strong. overall, guidance that, we I our is with think forecast see we’re are make to I guidance usually about we continuing QX But And

Dave Koning

Yes.

cut go you’ve just showed revenue which know or this the that might to add last – some, incremental Okay, $XX seem had growth, type ever your was But margins and margin But if like because for you’ve then could ballpark, million be you’ll guiding That you’re in the take. it And top is that. up on Josh sense. don’t or too. was core somewhat. best drive somewhere margins, in will it seem I asking get simply That on some give capacity know one the would years stuff, like mean it to then would I secondly, it whatever. XX-Q. XX% I of of looks be of but the way makes of this incremental

So yes, more guidance just flow-through margin get won’t a I wondering guess year. we why in I’m this little

John Chapman

right. we – we – number things, little more mean on additional Josh, will EPS Yes. is stock bit with do have that’s a We David, you’re there muted. kind I and we I have comp. have the a assume little margin that we growth the do touch of again, do or making mean did of

with a this cloud in Josh, are going cloud of a EDC, a And sitting the little forget to little and our have will I’ve we where bubble this comp year, business we’ve described what in stock So does some year, the bit in-premise transformation said IT we bit we accelerate got year-over-year. give as as at of both additional which us year.

work-from-home permanent try We to understand still can have layer our And our take accelerated of I facilities. said, so agent platform. on to to further we’re handle endpoint and we able security the volume then working refresh action some be at-home run that to as also

these year-over-year. been the growth are bit all, a So margin that see headwind little you’d a guess, to of I

However, actually it’s XX%. you – look it’s if the growth, at EPS clearly,

If about XX% think you over actually talking XXXX versus we’re midpoint XXXX, I EPS of look growth. at

because being there So So – are of those call towards of some the now. a question is of clearly headwinds. the X% number Xs now. our few muted question yes, that’s Xs and the in a XX%, which XXXX, which you about are kind margin to operating Josh’s this kind expectation. can the right we points to the focused are some in high cautious again, are color still on guiding if of and just them versus X.X percentage we But X%? X% Can are point where to going year we of terms get to for few is not in above we’re our of into are the of transitional we But just that’s the back next on as get reasons why

Dave Koning

Well, Nice Got job. thanks, it. Great. guys.

Chuck Sykes

you. Thank

Operator

Research. Instructions] Please with next [Operator comes Vincent Our Colicchio go question ahead. Barrington from

Vincent Colicchio

that concerned this slowed should be of the quarters? business growth or Is is two somewhat Chuck maturing the Yes, financial John, there? past we or just that in lumpiness services has

Chuck Sykes

way just sector it’s very ebb I is more cycles of to sales Vince, strong had business, kind say lumpiness – the that in in of alluded still the Financial for the the a us. services fact, flow. I No. kind And would it. John and

We winning. are

new we to want definition, fin-tech companies the in lot you economy If use of are winning a space. that

will companies we’re revenue Now typically revenue Xx in they – size. to But the initially. kind generate can – X be that smaller fin-tech they in X.X companies X, the winning today doing are these year X, that we’re of that are are

a moving So ahead think the it. us, for not though right now going offer be are us for needle we better the definitely growth even years in they to may they lot

worry financial wouldn’t much on too I that services. So about

Vincent Colicchio

I if And as clients for sorry yet? work this, but price for at-home missed decreases are asking I’m of

Chuck Sykes

are made, completely In not. stay decision definitive in or And general, statement they they work-from-home. that’s general, to have a not because

no. a as of really not major dealing are now, So with we in way, that

Vincent Colicchio

the in for guidance what much the And does And pipeline look at year? is how Symphony? like your

John Chapman

– Symphony and revenues, growth And million. over Symphony XXX% again, Last a did – we were external at Vincent. $XX XXXX back year, down $XX year. Well, that was in of about last that saw million of they that in

in, this be in growth Now number. they the below of but second we’ve back year, XXXX got still operating coming will the half

So we market believe in the long-term.

chain, how lot we margins. operational value we’ve to think improve through I a about the and skills help will inside spoken which of come their we’ve automation eventually company think our turned re-imagine

we’re got. wasting time the So not we’ve that

related – existing somewhere work believe inside still the million we’re be between we XXXX. to the and to company, a But and them lot actually set expect $XX skill $XX still revenues Sykes’ more we’re clients. we on million So of Symphony doing in

changes. levels by So in going sadly, of be we’re to some operating we’re XXXX still below encouraged those But XXXX.

Vincent Colicchio

Okay, thank you.

Chuck Sykes

Thanks.

Operator

This like Chuck remarks. any question-and-answer concludes over Sykes to our to turn conference for I session. back closing would the

Chuck Sykes

No. No remarks. additional

up you. a look good Just catching appreciate Thank forward as participation Everybody, we and everyone’s have always, next quarter. week. to

Operator

for Thank presentation. has you now attending concluded. conference today’s The

disconnect. now may You

Sykes Enterprises (SYKE) 24 Feb 212020 Q4 Earnings call transcript