CRAI - Earnings call transcript Q2 2021

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Operator

Good day, everyone, and welcome to Charles River Associates Second Quarter 2021 Earnings Conference Call. Today's call is being recorded. The company's earnings release and prepared remarks from CRA's Chief Financial Officer are posted on the Investor Relations section of CRA's Web site at crai.com. With us today are CRA's President and Chief Executive Officer, Paul Maleh; Chief Financial Officer, Dan Mahoney; and Chief Corporate Development Officer, Chad Holmes. At this time, I'd like to turn the call over to Mr. remarks. opening for Mahoney Dan. ahead, go Please

Dan Mahoney

any these results Thank in forward-looking including you, statements current expressed that including everyone. note and expect, similar financial impact margin morning potential on contained business, or COVID-XX statements the materially Information operating is outlook results inherently including management's financial as statements Act. and Exchange our in due statements on made using defined the good or those on in forward-looking expectations factors, and EBITDA the non-GAAP call, of the revenue to statements important pandemic uncertain. the based during Section of and concerning future of these from many future statements implied CRA, Please XX condition and results condition operations. Rob, or are other those Actual this guidance may terms extent terms conference any is to of and and performance and differ duration the

information included to SEC. statements periodic this factors filed on the on the release XX-Q XX-K recently no most undertakes and call. today's is forward-looking annual Form filed Form in these including our CRA's quarterly reports, with in update reports of and any CRA obligation Additional regarding after report date

and and measures a basis EBITDA calculation release refer their GAAP this today's call. to non-GAAP we of measures encouraged and measures these CFO financial basis. constant currency refer presented non-GAAP currency some descriptions the a reconciliations to of to constant on measures Additionally, presented Everyone will measures remarks comparable on and of on financial certain to for is related

report. over for his turn to now Paul? it me Let Paul

Paul Maleh

morning, for Thanks, everyone. Thank today. you Dan, and us joining good

fiscal XXXX XX.X% history, our drove of $XXX.X fiscal of year-over-year as the CRA million. demand highest quarterly the in outstanding strong continued company's again increasing for in business revenue impressive the CRA's performance. services start on XXXX, reported demonstrated quarter momentum Building the second The to

expansion our growth XX.X% recording X broad-based American revenue year-over-year XX%. than and Geographically, was was by growth balanced, operations North respectively. with XX.X%, with revenue Our increasing international our practices also and of more from

quarter second more year-over-year significant of in during top drove CRA line XX% growth, quarter with those the revenue year-over-year of the by second The than quarters. marked XX growing profit consecutive CRA's XXnd growth expansion. quarter

acquisitions revenue since on XXXX CRA the and XXXX. a began for of backdrop, and practice increased M&A of continue antitrust for range and records industries and high rebound half year from activity represented quarter, to quarter. highlight for first during to provided quarterly I Specifically, of non-GAAP XX%, now was year-over-year EBITDA these revenue XX% It and to top growth XX% per XX%, each practice metrics. regulatory, grew exceptional approximately of This Economics earnings share services to bottom. respectively. highest during diluted the and some our by net like established half compared worked any levels services M&A growth & mergers a the in across levels reached by new This as would the Within income, profit and ago resulted in demand Antitrust markets year-over-year. grew lows highs. for of legal in Worldwide and an truly Competition merger-related the this historic first Against geographies. strongest quarterly remains the year XXX% strong. pandemic transactions

are in entry, the competitive completed minimal. supported specialty from Department large Justice. and sales geographically unconditional the repositioning expansion barriers a equipment, trucks For truck, to parties combining emerging truck competition received the aftermarket relevant specialized recently rentals, providers transaction service. U.S. are and analysis CRA's markets The that clearance analyzed of and transaction, nationwide the dynamics and competitive confirmed broad and CRA experts for market of example, a team heavy two of

merger together Additionally, minority those including company. associated in to and the in of aviation questions to $XX with CRA and global portfolios Capital additional regulatory experts transaction acquisition effects, included Justice received transaction company. addressing ownership vertical Aviation The Services. a team brought worldwide. AerCap's combined D.C., CRA's in The engine work work European potential of regulatory billion clearance about leading Commission. interest post-transaction jurisdictions clearance GE The regulatory create horizontal London team leasing a Washington, and secure GE's project from Department aircraft, of Brussels, U.S. supported has competition continues the the helicopter to and

levels. Looking more pre-pandemic to and continue broadly at rebound approach legal filings case total market, the

the relative the & ago testimony For every expanded as are Notably, draft -- year-over-year. each as filings year-over-year. by Labor on and Analytics also which metrics quarter. revenue more XX% judgments our to matters especially in be services, continue court more practices of The experts they the and approximately Property, growth this the court year that consistent Competition number period. service Within been area, our In Economics, with XX% of Employment room as reports by experience light to deliver total during and practice Economics, Risk, of by the pandemic year-over-year. the seen legal the regulatory these within delayed can in grew the well increased case quarter matters who market of have Financial I'm the new XXXX, & strong second second with were increased conditions, each XX% Antitrust up approximately second arise. XX% total quarter A rebound our Intellectual than Investigations pleased addressed as than

review account of and depository During practices a level. the quarter, CRA's institutions practice consumer X financial fees at overdraft economics with assisted

computing, for and provide series support practice of clients patent, testifying multiple the range price including focus by oil trademark of techniques pharmaceuticals of loans. world's Notably, brands markets. luxury cloud claims a a that trade and gas medical and learning multiple were tribunals networks, devices, for address of class to A determined age litigations action recently and in and senior foreclosed. to expiry technologies, CRA's on through copyright These management a CRA reduction arbitration, discrimination a the X devices, using those supported and industries model Also leading selected US damage in fintech International the federal growing validation machine matter, covered luxury with Employment e-commerce involving the international disgorgement matters reaching competitor for and platform, practice Labor damages copyright, servicing CRA during and consultant plaintiffs in extraction. associated and of on among including state Intellectual trademark & communication properties a courts, analysis forms, experts action. products alleging infringing against matters of a a geographic that practice high-stakes several supported and brands, secret rebutting advised the the maintenance and profit Trade expert through the wide a is Commission. Property second dress infringement trade mobile damages addition, a behalf underwrite report and and risk In The variety more royalty activities. quarter, range practice sold force regarding defendants termination in

to Antitrust plaintiffs these Additionally, expertise & the Labor allege non-competitive clients Employment agreements respective alleged assisting & wage result by that Competition combine suppression. Economics practice in employment facing and continue

Risk, investigative and in perform the Kingdom. quarter, multi-jurisdictional & States, Brazil United assignments continued the Investigations and United second the Analytics the During practice to

parties with sector, large For over the examining transportation period. related XX-year example, among investigation various the a practice executed payments a fraud

to this XX% important was second we our strong life see but in for clients. address good down Our in approximately continue and practice extremely as our XXXX, sciences relative topics consultants an to quarter opportunities space challenging

launch company, of a healthcare top audience. CRA complex quarter, companies second physicians determined optimize administrators, patients, spanning best roles contributions strategy commercial life collected in to support for order growing countries, growth, XX healthcare -- developing second spectrum, helped which appropriate increased also from a developed by CRA's Energy quarter helping the communication. the with practices, sciences Auctions each a Marakon Competitive infrastructure practices, assets. performance the and to by technology partnerships a the with practice its audiences CRA and our direct-to-consumer saw team how strategies, our included identifying and year-over-year. Continuing and needs, distribution provided plans strategies global -- revenue versus communicate to in During other identifying to of market strong the employer policymakers, portfolio across XX% healthy and for digital analyzing pharmaceutical around and & And have future project entire benefit pre-IPO company is feedback we CRA's including X payers, promotional maximize support ideas Bidding, therapeutics portfolio. support

of global multi-buyer world. & manager from Auctions practice trade, continues the dairy with independent monthly the multi-seller, the manage CRA's the around twice participation trading to Competitive auctions As Bidding

select years. medium-term as Elsewhere, retire well utility cross-functional ownership. an projects storage practice, whole working carve businesses company. coming devising to the new working over practices on Midwestern under resource within Additionally, thermal a will team investment large and replace CRA's helping CRA's its the Energy team worked strategy solar team a European is the coal corporate that the the clients several Energy and planning. firm and from The with infrastructure as individual is combine the scheduled utilities new a units out practice CRA's to of parent to auctions for to wind, with energy group options, for as each the generating support long-term

decarbonization planning over assist will of long-term practice key focus gas to continuing that the this large initiatives them a implement preparation they utilities be and the on Energy year. Midwest. the for as the approaches coming in CRA their natural Additionally, investment assisted with resource utility strategic process, will approach

to with of childcare impact of Marakon and and service type offerings, intersection for at Our working provider of practice one a demand is mix a of care geography. robust price utilization build the including its the model the

on of work businesses grateful leading investments have valuations two-fold start of of for increase is project. the hard as in resulted to high-value colleagues our clients products transformation goods of than their in and These consumer underperforming important actions with a more all help a growth my packaged the partnering Additionally, the continue challenges. their in sale provider team strategic its address I'm since to and market most portfolio. we the a assets,

second quarter of clients. highly As business. to results are positioned momentum our in our our is well portfolio we services maintain valued our Moreover, by demonstrate, the

lead originations by grow XXXX. respectively, nearly quarter, During new project of saw project quarter and second and XX% our the compared to the flow we XX%, second

global to continued affect both health the can economic, raising around and strength EBITDA remain business, business, uncertainties we and our mindful business. in our again revenue conditions the political we that are reflect While guidance

XXXX, to to $XXX on our million full range fiscal million prior an to increased the now the $XXX of we narrowed expect relative and is to in currency range of $XXX which basis of relative million. $XXX guidance For million, a year constant XXXX, revenue revenue fiscal

XX.X% of to I'll We are previously. also comments. for to XX.X% Chad range raising then to With Chad? our non-GAAP This that, XX.X% over margin range call and to additional with EBITDA the compares few XX.X%. turn Dan a a

Chad Holmes

about provide Paul, Thanks, and share capital. comments and I quarter. the everyone. committed to deployment to during a hello, per maximizing generation prudent deployment value our capital CRA long-term the want of remains through few

CRA's invest cash to business simultaneously strong expect in returning capital strong growth flow pandemic, to generation, continues profitable our backdrop while Against the we the of meaningful generate Given flows. the cash for CRA to shareholders.

For months through the trailing revenue. XX.X% flows second XXXX, cash XX the CRA's XX were adjusted of $XX.X quarter operations million from months fiscal or net trailing of

repurchases total offer As a XXX,XXX of previously capital When to outlook shares quarter that payments. the $X.X the first quarter. in repurchases X our payments, auction, are with self-tender our million, Dutch shareholders. of 'XX, of second modified both returning returned capital these we at million $XX.X demonstrating a commitment combined returned completed capital our million resulted our dividend dividend to of shareholders second of our the $XX.X repurchase a share combination to $XX months of million and Through $XX announced, fiscal share to per of the during long-term through confidence we shareholders we in the for have in and

the growth return Dan net aim now, from shareholders, As cash while to to referenced investing adjusted calls, to continue for to comments. of of over Dan? a flows call CRA. we operations our And final half earnings turn the in I'll still prior few in our

Dan Mahoney

Chad. Thanks,

Relations more remarks. section a Investor commentary website the on our our CFO As reminder, financial under prepared is expansive results of available on

performance to Before second we in metrics questions, additional let get a provide the few XXXX. fiscal of our to related quarter me

XXXX. XXX This the headcount, of staff. of fiscal and reported XXX, quarter we the In represents X.X% other consisted with headcount consultant second at at XXX fiscal XXX terms a officers, XXX XXXX which end QX staff consultant ended the increase senior of of compared junior

the was to the expenses, of XX% roughly for end XXXX We increase general the XXXX. headcount experts, X.X% expect ago. to of X% year administrative to fiscal second selling, non-employee attributable XX% of year-end and quarter commissions by to relative with revenue fiscal Non-GAAP a compared excluding

impacted the effective positively was ratio revenue strong quarter's by our of This and for overhead. QX management

discretionary continue second non-GAAP manage efficiently the and will a monitor quarter with financial rate expenses on effective a for our basis non-GAAP environment. to back related to impacts quarter a We to compared of to second more fiscal of normal to our on the operating XXXX. mitigate XX.X% basis pandemic the XXXX for The proactively was XX.X% fiscal transition the tax

of of sheet. DSO balance second the at XX the the days approximately the the XXX on our the quarter to quarter days credit balance. remained of DSO and at of XXXX. and revolving in first days of cash Turning unbilled. our of fiscal of taking company's compared quarter, line end the million the end second was XX with billed capacity consisted the days $XXX liquidity into when second end account of totaling the strong, available XX quarter At

under Looking revolving more concludes the XXXX of at the cash credit we with That concluded components. facility. million remarks. At outstanding million equivalents, cash second borrowings the residing our prepared the in fiscal second $XX end with had quarter majority quarter, and our of the $XX internationally. of We closely

call for Rob, ahead. the open now will please We go questions.

Operator

with Instructions] [Operator question first from Our William Andrew comes Nicholas Blair.

Andrew Nicholas

of in a bit specifically? to size to wanted go-forward that business. get And though one than obviously and you're antitrust kind line review bigger? I'm There's what given that's projects if seeing Anecdotally, so volume on Are I trending processes you taking feels basis, would with are a seeing But project wondering question you're usual. in ton that be was a First in longer, through, what how duration on anticipate could of as antitrust. the factor. ask longer

Paul Maleh

for haven't similar to composition firm practice is we whole. the antitrust The seen shift as duration a makeup experiencing experienced those in that a we are Andrew, of pre-pandemic. of the the or really the that projects or projects and size what matter, have

We are that of That's of the it's within period experienced seeing now. on a the increase, have projects older being range time. but we well some outcomes slight during worked pre-pandemic

say noticed in So describing. I composition project shift that can't I have you're the

Andrew Nicholas

you mentioned then, levels, in And M&A activity obviously, has your prepared record remarks. been at as

M&A the if in elevated the of as first, of wondering, half way in volumes year? of then any the to within half company whole you're of kind Just relatedly, dimensionalize And terms the first of there's a this in impact assuming on year? back the what guidance your M&A

Paul Maleh

Antitrust Economics M&A CRA, practice the Our large and a Competition is factor & at practice is largest was still activity. contributing is,

those services the are of leading worldwide. We provider

entities. complex a enjoy see more we clearly, when the but So pickup in we of importantly, a activity, even combinations with benefit

we here at activity So will or not continue that or sitting cost and has least activity, inflow are, the been really to am have next guidance just whether projecting see X X we're over we received the seek When stay to-date. value-creating the flat. various forward, given money rise a still matters looking looking in months, at firms positive. are change to a of of dramatic that we combinations. our to that shouldn't the going indications desire and I forecast volumes All the by M&A at

kind forecasting So we're substantive any of change. not

Andrew Nicholas

more environment. the one squeezing you wouldn't hiring me in And mind if here on

on appreciated. historical the the any Just extent you curious ability that would in make theme, recruiting firm hiring right aggressively? And you to could the to describe relative are that if levels, be similar how a now, attrition you add at to then comments talent

Paul Maleh

best effort. takes of the a lot brightest always and Hiring

undertaking. relative a difficult just and there's the whether our never at the the top have to to say determine kind experienced at those challenging quarters them and get us seen opportunities an be not a level can talent, little if of last I'm easy know hires, candidate But if the It anything, to If and secure over to looking substantive little would differed say that has I we've rate senior for during know What during more What times. line has levels. maybe what I the required is relative that, a that there bit because differed these say of months is, six not rate the I The the looking change may that too, hires, you're conversion up lengthened is acceptance also pandemic any not pre-pandemic. is we wages of during a pandemic more it's to slightly to is pre-pandemic taking time we fit. just pre-pandemic significantly. longer. is acceptance So from can university it experienced the significantly pandemic expected hiring

Operator

comes next Kevin from with Our question Research. Steinke Barrington

Kevin Steinke

consulting by and the regulatory I there. wanted strong growth start to about legal talking off and

obviously to I You you if wondering be significant in maybe the a or systems. growth and more of maybe on project to that that related pent-up to in gave move regulatory forward also ramp coming starting things through that filings I rebound up and legal on I'm with that's the XX%, court highlighted there's case bit little were hold that indicate now am any off backlog helpful. demand to the in starting a in in metrics would tie some now So comments projects there? base wanted up on originations does judgments.

Paul Maleh

start has well. have for the actually although for to for challenging pretty by been reasons we've pandemic corporation, many the going world, I'm fared saying, this so

So we haven't seen a contraction business. of the

six quarters. been I that in this revenue than by we pandemic, more line top grown five those six the have in impacted fact, believe have that In XX% of quarters

portfolio, process, are that ability to ability past generate seeing projects an the quarters, maybe project it portfolio have and we the a pre-pandemic. demonstrated the these service as with Are throughout to the the the older no was second throughout lead here, into little we has With used have opportunities the court So, to know don't to mentioned up what different are also revenue new what not well working to, had performed already only necessarily pickup demonstrated are to in been filing seeing have we we the hard demand a is, break different. X we but I call quarter means pickup, projects? and associated during were this to which that we exceptionally in I -- respect One pandemic what from say, that up? projects, the more two than courts those on pieces. that's now will stalled are I doesn't Andrew, opening we across look generated observed As discernibly portfolio surge projects

would I add that. So

the that by project able we're and that new Secondly, pleased XX%. announce new we XX% matters grew originations in, really bringing we're pace to of opportunities new to be project by

the to were But So those to we're any week. also of quarters of again, welcome going healthy enjoying day levels in the QX. then numbers really kind preceding up we leading

to more here, right are open whether surge strong a had up. in we to set seeing we would standing come, with So it previously. demand performance I observe, But court starting the the similar looks seen very associated small to to sample say,

Kevin Steinke

the enforcement change scrutiny difference seen transactions? presidential just in with or any wondering, antitrust administration, have in And you M&A the the of level of noticeable

Paul Maleh

demand expect in demand environment. would a a to those early for environment There's CRA. provided administration consistent we say definitely on the I enforcement. a have about coming out of coming administration, one can probably lot words desire impact I with increased direct What on if are it's little like the of dialog say comment their of clearly would too the for the increase seen services by an that out the whether actions

Kevin Steinke

learnings similar savings in of maybe But asked guidance the margin continued be you wanted ask discuss and able Just sustainable entertainment your there. the behind might quarter. thought guidance I travel expenses revenue during from you versus stronger the the pandemic? growth, that of margin based and cost increase the about maybe delays increase in those in to just question to you on some factors can last operating realize some a the terms

Paul Maleh

utilization. rate are driven we We QX and margins two anticipated desired would at being faster back drivers our main One, than with much of the driven here. it's utilization profit was revenue. QX strong be really by XX% the strong year, utilization The to what got beginning at consider by at to XX%

So in to deliver been manner. able services optimal an we've

to those we have we going contribute we profitability. With revenue excluding low clearly net trip, strong is entirely of of strong big that's payments, traveling, quarter, really perf firm. been occasional basis. are the XX% leverage on So I a expenditures. levels, able working SG&A still this our to almost to that believe as consultants A Besides around we're were revenue. business driver a virtual not --

not of we have we're not So expenses -- incurring indirect those kind that previously.

X over on quarters the comfortable I best. margin our is to as it levels months through to the a the looking of efficiently. start. of future these believe, that, kind strong given range basis travel are to mistaken to And We more some was increasing on quoted return margin XX.X%, is XX.X% depend How X We've normal of first a impacted to lot of off levels. operations that going to at around I'm of a We run at our -- months, so the not X some on past felt kind XX.X% really return guidance. still learned if probably is X EBITDA how profit pre-pandemic our in of part that pretty to very the

XX%. will I am some think change as But I level that of So not, there normalcy, level the do I sort a we of and SG&A to will repeat, am that structural whenever step be in not be I levels, saying down new return happens.

around SG&A, a return normal were net we somewhere revenue to would XX.X% of to of excluding think more to XX% operating the once to in state for love I steady perfs. I us world, we range. operating XX% pre-pandemic, right see XX%

Kevin Steinke

opportunity and couple hydrogen adding just the to that Yes, a Energy lead about had service senior to first that effort. just practice press not July on offering mechanically, release the ask about why the wanted And I is wanted of your practice? see ask I the new also you that Marakon consultants to And you there. secondly, and in within

Paul Maleh

Both and generating to optimize their on are working providers practice Energy continually portfolio. Marakon our energy how with best

know, towards movement you As strong clean there's energy. a

introducing expertise with is discuss on to So energy alternatives the those alternatives them clean those imperative to clients, delivering having our services.

we service to practices requests delivering here's we adding our Marakon these related comments were Those of call, So, raise together. thing seeing opportunity the more those team speak, by terms other is so services practices a to hydrogen effort, of and to we practice. the highlight two and on that regularly trying many and And knowledge work Energy by our the between clients our combined and the work thought game, an in to this during resources. The together. were resource directed

in addresses by organized a consulting that largely to staff to manage configuration market client we to market, are go best when them. help practice internally go we We our our us staff best But to needs.

the brings and Energy Marakon having the industry a match. has practice been the that So perspective value nice the to that brings game expertise

Kevin Steinke

cash just normal. in to And receivable seem little balance accounts more sheet lastly just wanted and I be to sequential buildup just there about a than ask flow,

flow? receivables know perspective demand don't on the Dan, related that with I to or if So anything is cash and this going strong from

Paul Maleh

the of of start to I'll that's last several then What this quarters, been receivables okay. I add? period. clearly some over now changed it Dan. Dan, I'll over that quality capital, consuming growing you tell Growth some substantially takes time so color our the have And those really is has during and other you kick to pretty if can any capital. we've working not

Dan Mahoney

exactly. Yes,

Kevin. agree with would I So that,

of point, unusually you collected if quarter, longer-dated at on was, some at first look the we DSO -- items. sort carry our in stats, -- you we to I that think so low our as look had just on I DSO think,

And for pointed that so below day this as but metrics, still level. like out, DSO up so back down you it's -- quarter second in XX below quarter-over-quarter, AR quarter. picked historical our came was our and In our that still average it -- the sort the of

So or as in collection would that, the summer uptick an tend structure to with in tends to collections grow, said for later we we're like months all again nothing to we come that or it in that expect QX, our see the And we see and receiving. then the unusual, down year. the activities

with we've expect seen pattern we what pretty historically, that's what forward. and going would So, consistent

Operator

Our Marc Company. next & question with from Sidoti comes Riddick

Marc Riddick

of wanted of bit I more senior as and that thereby just of if quite of higher are I as though, know of a was if I is it as maybe busy. matter curious Because I folks things with that bill some it's to little couple things, through numbers complexity a So you more to of are complex pricing the rates start don't you're seems seeing? a or a being the talk it's sort work observation. the the with about go if sort higher, a and maybe matter quick of business, could sort mix of say

if a you've you seen than or little if talk the could and wondering expecting Just what may past? maybe you what that's that bit been any different have in about

Paul Maleh

try has What know firm and and composition if operating we enjoy that thing in as that quarters. world say the can't address we're been But market of I'm like one complexity utilization, But the I mid-XXs your really, of strong we that, we're profitability the is addressing. fully at an virtual it both XX% could as keep we've in across as that let haven't introduced, to we offices, doing I in borders, SG&A a period commented, the has been of question, delivered and anything quite will cases, that that, not last cases working the different. several really kind with now So the me I understood geographies, over But -- during have we're about we're by enterprise. continuing, seen of pandemic sure any really ever more I efficiently we than shift quite it. Kevin, with that, excited I this Andrew mean, we think

real exists. today, irrespective using revenue forward. provides opportunities the seamlessly that within I'm that sitting whether of one office, profit it's I enhancing than the practice here in. opportunities, it's think reason where consulting residing or we Berkeley the other organization, So, of it situated a exciting is capacity, whether are is profit whether Boston I capacity I'm capacity going in mean, enhancing our that And San residing By in irrespective Francisco in or

to of usual, optimal it's delivery business all speak efforts been create for is good. kind but positive does pretty Other that, damn which as the really a is these only So, of model, progression more that of. than

Marc Riddick

price guess I the way pricing to a the you're sort or sort maybe from an if would increases, year-over-year lines then And you're trying if seems a sort of though, so, it services. back, but through along of get standpoint of those about way of as in if maybe price I push was similar and of the without be And bit little dynamic inflationary increases talking is to putting of sort something has... received much

Paul Maleh

creating hasn't half over these those to value in XX annum. deliver for rates about or we've at of look our X% at months, while rates, stuck X% increasing the Those still I CRA. been rates terms that's last clients. really dozen to changed That experience years past per If so, our have ability

Marc Riddick

folks bringing then to on. gears over And shifting

headcount I by X% that think bringing correctly. you year per what I mentioned heard was was annum, at if looking of were end up

a of junior thinking remainder should be that be of half was of would -- I is we what more normalized sort gets of kind of seasonal that back the up adding year? this talent, wondering So, for if that

Paul Maleh

these job next beyond the so. best headcount over environment For and now, X respect those okay? we X% will the that's of likelihood to and good consulting are that, the months close year-end workforce taking on the trying of we the can for services. the right With demand demand or terms hires a year, of by to matching eye the incoming growth our our being in So where keep end high as outlook consideration as hires on do we be we're remainder supply, year, that our the guess to is of expecting the just a

see year for we as the unfold as to we XXXX. more thinking and So, on start come about that guidance

Marc Riddick

types better to, communicated. client as pandemic or specific creating pandemic a challenges it's the practice very dynamics that sort of growth response that of think pace whether I it due of are have lack accelerated path broad-based, or challenges of some new has to going activity to there changing the a maybe is normal? at been simply not to folks wanted have clearly the term faster you to, for to has due certainly, which of, been just of back may in to as And the sense get been a as enhanced that of opposed to opportunities opposed just areas

Paul Maleh

of this think half flattish first operating. even you XXXX, half excelling heard can about down heavily think script XXXX, than out has example, competition as been wonderful better the forensic portfolio the And are, and way. the way should performance a portfolio to during regulatory that year, of A don't couple terms here the a the guess operate practice first on on we double the first the It's With delivery of relied half more life the leading way of the first contributions, the CRA's lot during like, services. of a an exceptional legal broad-based practice competition services. enough in other, to experiencing as services it's during I when there. comment, practice the during they've people believe is type of for of comments sciences I time so. we me

one say, to is benefiting So those services. from

I'm As has damage a related, the to Marc, related been but stated only evolving our And is that seen But the continuation a pandemic forensic previously, breaches. I incident or not practice on the this services experiencing. technology practice world is response. world don't nature estimations of related cyber and work associated to more in sure work in market our that highlight increase I know what pandemic related, with of that's necessarily whether has those I more could

Marc Riddick

look as on bit there attractive should thinking internationally, then what opportunity we versus or about potential maybe today? as or might touch if about? wondering the and a areas you be maybe that what the maybe could potential geographies that potentially like domestically pipeline are And if look acquisition that might like maybe any that set see you little far adding So pipeline

Paul Maleh

address let I'll Chad that question.

Chad Holmes

The seeing offerings geographic We're geographies in We're service in great is volume positioning our what dimensions. and spread to active shared the and team answer of in market The opportunities. looking pipeline all our similar and high-quality and question of to the service for to offering with the those CRA interested a opportunities that spread, the good I past. always of one, we're is along the would say, add and remain individuals CRA. I've roughly the align to types those maps vetting

say XXXX. We've this So do has I changed. year through for in looking and fairly the as continue as We're added forward, would high and have expect but so still to our the to we the first bar. fit year it been, have people including the of as full plays pandemic, is standards pipeline ever a half and look towards not

the same. necessarily it's third fun. just We're join just high-quality with trying performers portfolio So stool diversification. a pleased we're to find the and looking not of to a not the more fourth to of in going for leg really to have, the We're deviate. to stool services leg we or We're the add to

Marc Riddick

last now And And then thinking far are occasionally what like? everyone and year you're a get look the remotely. are sense as I office I I sort what that in the when working for or how wondering wondering was as far internally folks the about was was we're seeing between maybe granted, things time might progressing what could the me, as the you end of of period having model of might or think of about anniversarying you're about think from how as, if you now one you

Paul Maleh

March in basis. colleagues, meet some office, more they're of went with in. call, more XX% of to the this say, vast virtual been that period still CRA it's People I virtual XXXX, that either would will the come that to date of majority the their interaction occasionally anything colleagues, my have than a XXXX or in for and March way of operating of but to have from until making meeting, a

battle but in COVID are seeing we're virus. the with against who the that knows the We hopeful volatility

going We put fall, to prematurely. the at are approach phased family take back we're risk coming measures our not in to by return hopeful any to in a but also

call. is and So, We'll but today. appreciate please, fall, for the the And a not virtual and in geography, participating meeting your in internationally, We thanks, different you. concludes months, earnings safe, on course, be updating healthy. This you joining course, geography number everyone, be the just to again, in by hope of us everyone the also our Thank the today's but we investors CRA. stay by next the of with implementation coming then, Until on forward interest time will, US. to look call. across of progress be

Operator

Thank you for attendance. your

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CRA International (CRAI) 8 Aug 212021 Q2 Earnings call transcript