Startek (SRT) 11 Aug 202020 Q2 Earnings call transcript

Company Profile

Participants

Aparup Sengupta	Chairman and Chief Executive Officer
Ramesh Kamath	Chief Financial Officer
Rajiv Ahuja	President
Dave Koning	Baird
Mark Argento	Lake Street Capital Markets
Zach Cummins	B. Riley FBR

Call transcript

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Operator

Good afternoon, everyone. Thank you for participating in today's conference call to discuss StarTek's Financial Results for the Second Quarter ended June 30, 2020.

Joining us today are StarTek's Chairman and CEO, Aparup Sengupta; the company's President, Rajiv Ahuja; and the company's CFO, Ramesh Kamath.

Following their remarks, we'll open the call for your questions.

Before we continue, we would like to remind all participants that the discussion today may contain certain statements, which are forward-looking in nature, pursuant to the safe harbor provisions in the federal securities laws. on various available could risks results differ based are us cause are to to subject and materially. statements information to currently and actual These uncertainties that the to website its a summary and call listening posted risks for those these all and XX-K advises to StarTek review uncertainties. latest of XX-Q on this not undertake update StarTek responsibility does any forward-looking to the statements. non-GAAP Further, the discussion today measures. may include some to G, In has back GAAP-based company Regulation amounts the the accordance measurement. with these reconciled closest the found The of the in Investors reconciliations on section website. release be can their earnings I today's to company's remind section via replay would everyone like the that call the webcast a website of available of at www.startek.com. will be Investors

Now, Chairman I CEO, please Aparup the conference like turn Sir, and over to Global to StarTek's Sengupta. Executive would proceed.

Aparup Sengupta

afternoon, joining. all thank Good everyone, Thank and you for much, you very Scott.

continue sequential on a us efficient stronger, geographies, our the related COVID-XX operations to and Although face top second each more drove and improvements across center continuous challenges keep month as as make the the as decisions quarter. we emerged to has we our smooth pandemic to possible and We and command still the virtual quick globe. the bottom organization during line, across allowed

safety to We team's have during prioritize these health continued times. and uncertain our

capability the team deliver Star Cloud, and XX% thanks the in working recommended of new is distancing back one around technological of status of social our will our of remotely, with position clients. or after approximately lockdowns XX% workforce of in in working efficiency later world. significantly of continued our Today, having our world and With quickly. a strict get service, improved our more our XX% in seamless the that we actively guidelines. delivery call. our under on and from this they delivery just members April, scheduled extremely platform centers, operating global the now large-scale XX% and the of making a no one quickly in matter many provide team's so either total fluctuating, and in on is home new from adjustments details our to I'm Rajiv of the has reopening's campuses address workforce high-quality demand to to to moved But are proud enables constantly entire customer where approximately global these health team workforce, strong our global flexibility workforce

the customer our in need are particularly verticals customers. this are In have addition making clients the to digital sure as as are In response to business helping expectations. the focused so technology well that and needs adopting of evolving industries right ensure to their we cable such e-commerce with services in address partners also experiencing team our new environment, demand. increasingly healthcare, high-growth and can our and as and with to on adapt members to customers' pandemic, equipped the been prospects that media, are work keep digital pace current clients evolving rapidly Both that the elevated evolve they capabilities

these to and strong in point industries opportunity. momentum Our a growing

job clients. existing done programs expanding also by Our during in teams driving areas while opportunities a have fantastic business new with development this these time

facility. for we third quarter. growth, we entered the to strong fact, signed healthcare have in revolver agreement will out quarter, loan for with facility. a facility for loan revolving new to and an be term The already $XXX million into continues a In credit clients credit along of two potential $XX term senior rolled amendment one Subsequent which our agreement the with provide million

financial million. facility in of us from have February of XXXX. week increase $XX.X well governance of as covenants X-K These to deferment as underscore cover business our they for The and trends. growth to adjusted cash And improving as provide of cover, our allowed interest our the you saw now potential the strategy amendments leverage remainder amendments including our and to been last principal also However, majority us year the the until have related flow ratio. many lenders' a filed waived $XX with the confidence million payments in

and While how environment. the fully in the predict cannot of of will the play our this we in resiliency are we effects out, pandemic confident strategy business our

in We quarter. the on would our CFO, to through would take Ramesh, the StarTek's our to results to to over like first, ongoing to I Ramesh initiatives strategic will our more response context and like for – call. over this to Kamath provide I have pandemic financial you. you to But turn second call later the

Ramesh Kamath

Thank Gross profit was to you, to to will to continued keep structure expenses, revenue as second the my key in Net XXXX be the quarter, and in for results we administrative, lockdowns the the gross million XXXX. Aparup. in was quarter. SG&A with ago geographies lockdowns compared XX.X% the response I million of continued Honduras. $XXX.X decreased from second the quarter quarter In brief. the impacted along active $XX.X the driven in in were of in Net to geographies, our many million compared India, such in corresponding and million decline gross Philippines second Selling, the general quarter the for used the last million as pandemic $XX.X compared workforce. government-mandated primarily XX.X%, quarter to second in second year review of margin in this and compared revenue million by $XXX.X impact quarter the reductions keeping quarter $XX.X margins quarter was $XX.X by our quarter, with to

revenue, basis quarter. to year compared improved in of XXX XX.X% As XX.X% as points the ago SG&A a to percentage

over improvement driven particularly we XXXX. last the that With reductions cost a series since by months, XX April and of have the implemented

Adjusted $X.XX efficiencies attributable $X.X million net in shareholders in loss million ability the the $X.XX our report We of fourth the reductions, $X.X was per and StarTek a marks quarter drive essentially per across million compared as the per or to million quarter evaluation second net million million compared quarter as that compared EBITDA quarter of Net share expenses to $XX year ago was SG&A per or share year $X.XX was consecutive to the second loss cost $X.XX loss XXXX. to constant or reflecting or XXXX quarter are the ago our operating for adjusted of for loss of share in proud share, this geographies. to a as of the quarter. $X.X our of net to Adjusted $X.X quarter. $X.X to

to EBITDA revenue, of percentage as X.X%. a As adjusted was compared X.X%

and of accounts the that closure nonrecourse improvements, payable payments XXXX, million as APL margins to million and the X% raise despite loans the $XXX.X repayment during over is remarkable the debt our quarter by million $XXX.X adjusted points to working itself EBITDA at balance factoring. of in principal Our the COVID-XX perspective, and end primarily our restricted in severity primarily from equity range, our a cash balance March at XX, control to strict XXXX. $X.X by the proceeds costs cash deferred decreased increased capital $XX.X low XX, completed of From was June maintain million XX, the facility compared the sheet $XX.X of to in ability a a significantly resulted driven compared as Total million of to at April June at and challenges in cash debt driven increase This XXXX. feat. March in

debt our position, a XX, Between amended at $XXX.X as was our debt it to revolving June we to cash XXXX. reduced position As million XX, liquidity result, strong million with increased stands are facility, net agreement confident March XXXX, today. compared $XX.X very at and

to nonessential We will expenses actively working monitor flows capital manage and continue prudently limit and our all spending. cash

now to I the conditions and our non-IT this further now us begin reinvesting hand trends we expenditures business, ahead, journey to to to improving as concludes the capital the surrounding IT my pandemic in and back remarks Rajiv. especially comfortable evolve. prepare year for half over will are Given the continue in in global prepared This Rajiv? of both

Rajiv Ahuja

Ramesh. you, Thank

to an environment As Aparup team this done amid mentioned pivoting pandemic. evolving earlier, and the new and has exceptional of adapting job our

Our we lifted, the the reopen higher are Cloud. gives implemented significant facilitate consistent did of solution and our at first StarTek capacity. at part capabilities back visibility The which by from geographies, ensuring new completely our respond around measures swiftly and landscape. sites to were We ability levels Cloud ramp quarter. better footprint home was us committed COVID and normal, ability implementation what to have ability felt our Honduras, to distancing mass this one team Malaysian driven online. makes few out with the mobility of the lockdowns workforce delivery long-term In our ability our over India Star the we global and bounce work. work have and workforce and proud impacts region, across remote part on across work to called the displayed made prior members' to very transportation Star of the our our impacted allowed work virtually such remote a have restrictions have lockdowns productivity and in the Lockdowns a our quickly of in the this months, pandemic, that difficult. we the and nationwide Malaysia, all at work world been to from up rolling recognize am infrastructure commute the the we will right progress keeping though agility while not performance connected. affected I digital but now solution. are and remains has not been onboard, agents to teams to global home In bringing of our did place almost this were of of Across lifted manage move away, even hire, have and significant our comprehensive India, reported speed to pandemic. work also We evolving last train freely in social past current a in teams new by Meanwhile, of most we off form that employees back in which and our

to continue work have by further to we robust, optimize we these our However, a remote effects and greatly will infrastructure, this derisked business geography-specific solution. providing

As ahead how of manage the we our effects campuses. closely reopening's approach monitoring to and operations, we our on consider long-term lockdowns look are we and physical our

too difference footprint consistent, pieces the campuses solution are soon turbulent to our of It keeping it of home and given prudent is Regardless bit driven we terms, know will real world I’m to significant the further remarks. cost capital Aparup? concessions. on us and the through that rents, We apparent close focused communication in the Hopefully, we the of have we around back partner but pandemic, that and on like as some call our closing of of for of period. the success agreed improvements optimistic pass work With expensive benefit evaluating and driving that side across negotiating to many our have landlords our provide are especially what during our outcomes, of the performance at happy form continue a have been the to have with geographies. about actively be will quarters our in the new his most with even I ahead. that report our we organization underutilized long-term in this we and of that, stewards are to is speculate we look pandemic, Aparup proven estate other may with of the discounts landlords us about

Aparup Sengupta

We you, Thank the ahead. Rajiv. the said. predict and quarters cannot months Thank Ramesh, will for in world fully what you look you, how

excellent However, environment. established have foundation we to this through manage an

will foremost, equipped, our are priority global we our have and comfortable members protecting continuity have and and Because high-quality to and highest on ensure adaptations well been safety experience place our we receive their we technological to clients First workforce. global will delivered. customers remarkable. when know the we that our same continue that team’s our The and made team always supporting operational

this of strong footing position. I’m StarTek globe grateful to this gotten around of We of have our have the at the during the in for and management, April. the We experience being on dedication could us are points very imagined not be and teams customer positioning low to new frontier

to of partner improving I’m continue work as to that position we strategic Although proud have a value-added we the accomplished, our our clients. to still plan

we has our on few StarTek prudent and resiliency financial We positioned controls a and to carry over dynamic are now environment. position cost this strong navigating and adaptability these forward. call and operating strict in will the focus demonstrated for well great past Scott, questions. will we months, open are continue

Operator

Koning Dave Instructions] Please go ahead. Thank from question We have a you. from [Operator do Baird.

Your line is open.

Dave Koning

the through navigating job Nice much. so difficulty. thanks guys, Hey Yes.

Aparup Sengupta

you. Thank

Dave Koning

I And of guess talked does end – centers of XX% home, how it at my XX-Q, have was of July, idle. agents XX% wondering, your yes. at similar just the mix basically reading Yes. I QX? about improvement, our that about as I’m QX And kind first feeling? revenue question, compare you rate, a the pretty I up to was QX guess would in is and QX? say revenue at I showing from Just was and that have XX% how through a that end which Or of the think should with run nice July, what

Aparup Sengupta

Well, that tell my you April, have mind, ourselves we would May, in can improved so be Dave, I forward-looking that June. month-on-month, but

out for is by speak to the improved. terms we function several you And and XX%. we as close workforce of things happens. a one expansion if figuring where the measure we’ve quarter of a definitely I think July, revenue But is while workforce, large, have revenue in is look And what which going a scheduled like. at in the look to of is

give example, an to of Philippines U.S. Just India. people in an for than similar you X XXX times revenue of is in more people expansion headcount even an almost in or expansion

definitely as much Philippines, is the U.S. in as higher not profitability the However, in

good factors, So of to what work now for have or growth which seeing growth but profitability a going a of number revenue is to in available workforce in for a of is we situations, happen seen many is the that potentially and quarter very estimation of is of function QX that two. an is and guestimation client subsequent indication fairly unique

Dave Koning

talked segment, secondly, makes sense. biggest that XX% I Americas was thought I strength break guess, up that you through that’s down was what’s that that kind out revenue was a your helpful. driving the and the and particular interesting, Yes, filing, India actually And on though of I guess, year-over-year, like break really Sri Lanka the it – that geo you too. That’s together year-over-year. you in place, XX% out revenue call. and as

just wondering that. on So

Aparup Sengupta

sense will ask you a I of Sure. that, Rajiv give to Rajiv?

Rajiv Ahuja

Yes, Aparup. great you, Thank question, Dave.

lockdown, part the hand, it centers. was other But we of nearly in given some a that spike there if the fact number that as brick-and-mortar in in get India, There So India contraction usual, in is enforced in on the XX% business people demand. law by were that people I finding where a to why a you, went states which U.S., was but with an and very is especially, which brick-and-mortar can difficult the we is in out up our drop it had a get saw our difference it life extent. was Whereas impacted similar cases point period that in of think lockdown, the the the our out pointed one centers, that good usual, large a letter demand to was by we into covered as initial up and India, ability picked as spike into of to And spirit. U.S. into

Dave Koning

was And job that a see. Yes, – last you’ve to where Is probably deep costs. run think one, have a great as the costs No, was SG&A cut think keeping something rate that you and maybe I done then that yes. on on it in about control. environment. it just a under just mean I just wouldn't fair remarkable to normal

back normalize, can up as it as a of as little it's been? does So SG&A low start stay Or things kind ramping bit?

Aparup Sengupta

Yes.

this we you not us, And useful. to complete I and of know were month we and survive; and I discretionary have that shine. great we April early Rajiv something all to what, early month staring we that going of took secure; three pandemic do to at of have I've things: think, We are and at the were said, Ramesh, in staring that in nature to when a Dave, that, was were we do were we to always measures catastrophic when believed April in order the mean, we have that's weeks question. – discussing me

doing that that's on took day, feet hour, SG&A, an were us time, like in the if base be by trial a which normal happened and situation are by looking we week, this. to in new all to just those you will have by taught on that we our a the improvement day and week not has efficient would by expenses working. mean significant it we trial of hour on balance I the are of that's positive discretionary at we So across are geographies, happy I the be balance report organization say which COVID. what to run magnifying glass And required

However, pandemic, Customers visit our or team not traveling. come go start client will them people just expect go when they and and or to and to probably a or a meet things would team's to customers those call, us open do would meetings. site up development and team post operating would back call expect Zoom will us business

cost, basically the of, growth you that cost barring do SG&A. which proportionate say, would other So which inch that in for that, travel part help I of is what that add will come managing than business addition up see I happens, those would processes. is much natural customary workforce, not But

I gone not to we So have think the bone. story long short,

been set a a grow and comfortable that on in ourselves is for feel benchmark a we have build which are We We organization. the has of we very accomplished. this this very same time, foundation kind position. will of proud the At what now

Dave Koning

Great. Thank you.

Aparup Sengupta

Thanks, Dave.

Operator

ahead. Capital Argento Please And our go next with Street Lake Markets. question is Mark from

line Your open. is

Mark Argento

great. fairly model of flex And any or sectors Is of a end to to Good you some other able its could post around pivot that then a more I something how you travel, in e-commerce or going maybe place markets see activity, the on have of pandemic? highlight in hoping you given tough work a future? that if forward, successfully was type everybody. highlight of of increase environment. And there a home more in quick anything work you environment. a been question be Do types Thanks. any could seeing second services relative might the you're Yes. would to kind that financial maybe guys in model maybe you afternoon from that if keep

Aparup Sengupta

fill global I'll us. is, I'll two of it be is Sure. taught the done very overview you just the ability ability stands, to One to has has to as irrespective what of partner, it pandemic, campuses. client and for continuing it The on has and is to all and and high-level it ecosystem. sit to certainly And the give agile agents a the strategic to go Rajiv details as ask where which things: in mortar brick how on be have done a

that So Star called work we that has world, I I the where have and the say ability the at toughest Cloud. that a will that we universal would say, allows anywhere a a product made from The agent in product, organization, innovations happened And innovation see us our Cloud continue times, actually that has an now is which is momentum ahead StarTek, Star created happen. to to to during would is centers. truly agnostic global service and we

basically has a has As reasonable he connection, the long he – connection has customer. Internet the – an somebody support to or ability she as ability good internet

very are continued them. have comfortable shop and and and feel interesting, have home, pandemic gone is that, we customers we a and that you happened, very would the this well, shut continuing move this that we times are seeing as something go that service like we during So to have not to that seems They as ahead. clearly offering saying

be definitely part a this offering. the to going So of is

away will answer the an time world, people to going this much mix of be have memories human be work centers. I want have from at brick-and-mortar, sitting in will much do people is from what not how and Now vanishes in how if change to home, and point might still COVID be this goes because is

to that. competitive take are be don't Cloud of which those more definitely, advantage have want of that marketplace deployed. to the shot. of in created key we pot the I But the kind Star So we one in is a have going

is that as So concerned.

will are on in you heart we and things think it, of Rajiv very the the healthcare. client very and interesting I especially highlight is On give Rajiv? cable and good the unfolding, and side, media a at that. And seeing e-commerce he

Rajiv Ahuja

Yes. Aparup. you, Thank

So and circuit two getting Mark, will get of contraction as four first answered to automotive, is part and verticals across starting exposure BFSI, essentially of on Where feet. people hospitality, view think automotive, we these start four these now out. industries retail, hospitality. and in the run Part hot lockdown healthcare, to lifted last lower I start we stepping And for you see some travel your is especially our e-commerce, – continued starting be verticals: is and industries, like see that to media to the partially than is travel that far, retail, StarTek their probably question, and demand cable far back competitors. our

their working as expect that do rooms. automation on we from part attach but this Cloud, enable can dovetailed into or a a it, will it be component. we've to to and others to try very the the been And home Coming affected a remote to our living number from Aparup some the form is pandemic because intelligent up question, the component it from of work working or with two significant to post So operate which speculative will going and that the it. work is on that look with spot of why Star on your to continue significant hasn't and a home affected. come purely pandemic of we essentially purposeful think workforce I the is of extent of offering different future part have us absolutely

point, force a a home, all can look of is number quarters overall maybe forming network probably numbers part of our you clients' to we of a at this what strategies. in a we're couple that give those work better I So position down say the at like, But road.

Mark Argento

you of makes to just quick kind Could be that highlight or services shed of environment you one serve capabilities or being this in new And sense. That from of customer? follow-up. some new asking in or might clients terms their any light then on able you maybe your

Rajiv Ahuja

Yes.

that done So in what take the is, what place. we are channels have let's are contact current

chat you’ve mobile You've got SMS, web, the got got got, Star is coupled play. that Cloud brings out currently got are in channels apps, with you've efficiency social contact you’ve video email, phone, based coupled the that you've contact and of different are experience, effectively media does omnichannel contact an contact with where the intelligence it seamlessly agent automation the of. thereby deliver location helps to agnostic What is

of clients that's well critical existing go-to-market with part that of a how both there clients clients embrace pre-COVID strategy, about. a since up I phenomenal willing our that shift just it's some to we to in And a capabilities tectonic – broke you with COVID has the shift digital spoke been idea and are amazing and are are our terms prospective to. these the of So now as talking to how warming forming as

digital automation deliver automation more next in help course clients less. we can now quarters the force over lot more coming a realize that for So of few because them the and

favorably of are looked being digital – capabilities, very touch an in that viewed the and we very clients at So that forms with. overall all our being part at by it's

Aparup Sengupta

Rajiv looking have we at mark, to staring you clearly Cloud. Star view macro – just And give give on to developed at and just macro are capability very what a the Mark, just that a said, just we view of you

certainly a proven that kind to U.S. business an resilient, and if customers manage that and XXX-seater up anywhere disaster seeing in are now XXX-seater, customer a few can Philippines we is We on seater forth, this Cloud capacity, a we pandemic, and what maybe and that how infinite in of so the be they continuity? to lit recovery, things, world. have XXX-seater have so or have the to or and that in gone be is learned Star has how X,

and also amount basically huge infrastructure a And their of feel that's to package managers that very outsourcing capability. on their So just our a assurance comfortable of bring it whole a the companies and – back with ride almost this similar in up It's thing ability kind not is and about. it even of similar in conversation context light security, and at zero-trust near the home accuracy and network.

PowerPoint but times order. slide tall been pandemic, And had this a there a have proven. been theoretical of is that's in in real that beta, now say, real, would not in customer that a if so a definitely really very And concerned. very, So out the I that a far agile clients stronger come believe we very way, space workforce have big and may will we embraced very the experience as large-scale is

Mark Argento

Thank good you very much for guys. additional and color luck

Aparup Sengupta

Thanks, Mark.

Operator

B. question Riley have a Please ahead. We Cummins with go Zach FBR. from

Your line is open.

Zach Cummins

just to was healthcare speaking the you Thanks about you nice proactively coming QX. know highly these I script. I it us a it guess, proactively of way clients? you clients serve two new these afternoon. clients to a in a – good Hi, on came bounce congrats the the back end sense how find throughout for try more taking my I questions. wanting really can appreciate talked And that to were to competitive Was Or their customers? give about you to something bid? where it.

Aparup Sengupta

go these healthcare these days, talking was and air have day, executive clients, is where to the That's the leader not been gives astute Executive a again North have very in seasoned we very, space – only in has large-scale a a manage customers we capacity, I erstwhile very during global and once for has that required been capability my which got America. long are Ferry CEO end companies. mention also Rick for based He's earlier And a very he's Development, question, are the segue a of that also had mentioned the this Fantastic. that partners dear to have me President cover I and but great Vice of with ages that Business programs. and and and that the it times, as class to of time and fortune

opened also part, yes, business team kudos one the executing door, So but that and is pretty door to went is opening development them flawlessly but the much the another.

I Mario, especially and air the the confident. think team phenomenal members on with Rick And side clients operating on and feel Ferry cover both very the and front, on executive we that has we contract. our Rajiv think side, time, contracts that have not development also created assured accretive large and a more that to two talked that we discussing point at one up I led very, this signing that's these business in are very but contract of, have

machine started has kicking and we some We going development cranked future. digital business all up, to to. feel comfortable has matter come capabilities our and it's poised are with take as of where to this more to a in. So company the these very time in only engine The and

Zach Cummins

Understood. Star channels digital how the of speaking the of your mean, voice I really do volumes capabilities, pandemic? with since of That's the versus has helpful. Cloud, the all digital mix you to your with start the of And launch other speak agents changed

Aparup Sengupta

will comes go pops beauty two answer, process technology answer give channels. when on Star a which is and that that the StarTek of can a into which Cloud the CTI that Rajiv call and is the One other screen, a voice technology, I which in The technology you just voice you is answer. ride give that is a is center, up. is a

voice, forth. and and an so so the one have is which of kind routed with you you So have interconnectivity and is on which client IVR ACD the server, a or connection, through

speak given line a merge about. single is as So two well ability simultaneously. phone the to an as to that work the And these what bring unit, is start the cloud into has on same all on now and agent

that brought into our and So with I significant quickly that R&D a say, would integration technology multiple is system technological, team partners bear.

terms capability, customers terms room. digital of heart boiler Now of in the at thinking are processes, the how at in in it of of is heart capability, Rajiv is the it Rajiv

you. Rajiv, So to over

Rajiv Ahuja

Thanks, Yes. Aparup.

to you've a on. spreading minds of of started the lockdown every or thing they the the think large make covered a up be Zach that client. At pandemic irrespective moment, lights in getting started enforced. most started was geography, have it, lockdown virus I little the of the And the but were the to and business Obviously, part specific. first and sure was just that broke in more continuity

restrictions parts example, get even So on account contact of for a take network. because but cetera, volume home or of that Internet though quickly, or very certain work matter. e-mail the change and bandwidth global there diverted limitations the say, at different we decided clients channel to And chat to on to voice was solution India, geographies where from, of availability, penetration, for up were et

things and there a the product start in to is the in XX% was that a quarter product future, still progress. opposed once mix picking did work was loose, next after see we pick to shift StarTek the prior in because COVID. a the position breaking certain has better to to mix virus the volume but that a that, the will pandemic, up We're up, into So voice-based. something clients. is to whether a Discussions extent change that post of as on used yes, pre changed change report That probably but with continue are the essentially that in quarter or

Zach Cummins

script, mentioned on then little Understood. will in know geared I back That's detail half in a And towards you. question, helpful those of the more geared towards? up Can you in provide us plans year. Ramesh, to was areas be you investments CapEx investments this ramp context. that your the there just final

Ramesh Kamath

the and go say, growing that clients make digital investments don't would edge be the and ramping, provide we Rajiv the ahead new lose Zach, side, to we something – definitely will sure we on statements, mentioned I and this but business technology is initiatives forward-looking on details, seen will our I the that growth. as can't have Aparup

Zach Cummins

you Thank for helpful. That's Understood. again taking questions. my

Ramesh Kamath

Yes.

Operator

a we Please private And have question from [indiscernible] go investor. ahead.

lines Your open.

Unidentified Analyst

Hey, guys. Omar. questions. for taking are How you Thank you. Hi,

was So a worse I expecting result.

noticed really, to remarkable that at I'm for was and it XX.X%. I quarter-over-quarter, essentially pleased looking mean Ramesh what I I you was it the see how down said, revenue So was feat, XX-Q, a guys sure.

obviously, nice? However, you to how help, land the operating profit gross but income impact – down on – I mean, was are so SG&A the from segment X.X% only able the cuts soft

Aparup Sengupta

take Ramesh, you do to that? want

Ramesh Kamath

cutting the seeing while of continuing on seen when we more margin had SG&A the amount but soft it gross hit it why wherever the close have. across to land year-on-year, and And our you could Omar, cost had focused react, A as operating decline, entire Sure. did was level land. is time would on started on board. fair was decline us cutting, margin decline to is have very the Instead provided that possible. really At would it helped the to this our but limited little direct SG&A softly million ongoing that cost us of has to across for much year also have. $X.X of not is a us pandemic us, dropped part it quarter process itself the help as also, as quarter-on-quarter, gross by the on than costs that the will which team earlier more impressive, that bit

a I of been his done have entire think amount an huge team, exceptional it's but Rajiv we So for hard job and work

Unidentified Analyst

I have to agree.

In could SG&A, guys what that areas terms cuts? were of those significant the the terms swift impact saw most cost-cutting in on the you comment or of

Aparup Sengupta

and it call expenses such and transactional other which talent. associated I on so as is is, so forth. training transportation technology, and Talent, See,

and which which which vital, elements, we is So up focus all parts, is nature, strategy, with to into came in discretionary categorized three this are desirable. essential which XT on are

we is those. if do those? vital basically, kill So do need keep not what what as that, we on we need, essential and focused And energy,

and kill the went this kind got desirable approach vital that So was and of I've insured. this talked those a strategy of together and keep entire essential four three-dimensional around XTs around and leadership the team systematically areas, that

somewhere. had which kind with sitting So which with to has to some of them of fat talent, do do were labor,

Something to in development and to that process. cycle something from there's to hire were which life training learning imported of Star optimization some they remote was were some that do and front manner the was merger reorganization and related with technology Cloud, which after where the and done in implemented retire on the were is company, we have

so in, all optimize and some people transactional kept basically on of we those and we optimization stuff. those like stuff forth, and of where then so all and also transportation at we bust looked the So

worked So we at brought like also a in all worked maniacal kind breakneck really we some because in this two. you that symphony, were of they in of the what had put really, form And quarter see speed, together actually outcome to and has a and conserve cash.

shining. would ready, work we say, we have we we are going and survived, have are secured, to towards So I

Unidentified Analyst

one good. kind down obviously of the reduce. it, labor or Very of said, terms swiftly phones, in you're when you those you And part when of that situation, you're of in have shut to

how of it you say wondering much did anything I could would maybe you So some characterize in see that I'm terms it in sure not I'm in for don't and guess, coming Or if that you about maybe and we impact or agents I going I can obviously, turnover in of you're this the turnover up an that. But experience was quarters. future impact future? have? cases. of if wondering in returning if we'll know or saw retraining quarter the to maybe have

Aparup Sengupta

stab unique to would this very this program. Omar, generic can large time don't it's That comment to very think you on question. in Rajiv, on will but we point be because very it, specifically like a at every comment, take for very hard I

Rajiv Ahuja

Omar. quick Yes. it, But stab at I'll just take a

account we associated a with particular program no everybody that was went demand. that on turn pay in model. went on for Let's work, moment, a of did no our a program was assume at And what end, dock

thereby, So the revenue weren't no we was was into when cost there flowing organization. carrying extra that

comes with system how we their the that hopefully, point to also doing are place them put of at that up-to-date got will people hire of and and out. hand, hand. as making to talking in touch sure up work, virtual to a contacts and back, their – are are from a agents. keeping come keep have a of time, them, one and brushing them to that psychology have weekly play referred are once again put we something demand programs, that other on pay large they picks the people that into workforce, They're leaders globally, that basis, team we've running, of However, is has than we through this sure many to with the on they what when up through staying – constantly no skills they're it just HR And fine the telling up, to on them is these we making no that these point, of But rather bunch then training layoffs yet effect are the process.

– it but think, of when when But be number, to at contingent that, into back person – upon up, to to point each our difficult time, coming centers. attach a difficult would will and attach demand So to I people this that at start a picks least.

Unidentified Analyst

those finally, continues? where quarter. terms markets revenue talk you as hit you see that’s And recovery in the Can think helpful. seems obviously, for were what No, mentioned for of the I hard the about Americas, it in for you you guys

Rajiv Ahuja

that We got as that volume we picking be deployed up. I XX light journey that are able technology workforce ready Like will very notice home willing have That's at willing any are fair the of demand warm. it short of global think within last and work home. actually our I And – workforce we our when hours, we the a about current and to covered keeping we can over almost say to now up course So solution. few the at months. percentage teams are large now, the XX already said, a starts at

from up. think it's in the can position just meet of underwrite whatever out know demand demand I picking I I be supply that to when that we'll a So a And there. side, starts matter exists

Unidentified Analyst

lot give going the much to and I for guys. you the great. Very Well, questions guys very answering thank of you good best wish

Rajiv Ahuja

Omar. you, Thank

Operator

At now turn the like this to question-and-answer time, call to this back Please I session. proceed. over would Mr. concludes Sengupta. our

Aparup Sengupta

healthy. when our us Thank safe, Bye-bye. you you. stay Stay all of and this you, StarTek. And joining thank Thank with Scott. your speaking report look to I afternoon we third continued results. quarter support you for forward for next

Rajiv Ahuja

everyone. you Thank

Operator

you. Thank

disconnect. now may You

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