Earnings call transcript Q4 2022

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Operator

Good day everyone and welcome to Charles River Associate's Fourth Quarter and Fiscal Year 2022 Conference Call. Please note that 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 website 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 his for Mahoney Dan, please ahead. go

Daniel Mahoney

financial results, or any statements Thank XX the statements Rob, outlook on of revenue margin CRA and the call terms good that of in Section are forward-looking note the future future and EBITDA non-GAAP Please using or everyone. including terms Act. the business, condition operating defined and statements made Exchange expect, guidance similar those concerning morning, including you, statements other during as conference this

Information contained changes for statements many materially to in forward-looking services, our general results Actual these current implied expectations is result due demand economic industry-specific and differ management's in performance important as a based factors, and conditions. from may in uncertain. or statements on those including expressed is of the inherently these of and level

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

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

it turn Paul Paul? will his over for to now report. I

Paul Maleh

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

XXX%, XX%, annual revenue. by EBITDA, expanded per non-GAAP we income, by as period for increased to consecutive million. Revenue XXXX which diluted and topped established year increased a time, and share This as Over marked XXX%, again once by record-setting a fiscal XXX% earnings fifth CRA fiscal financial net in record new revenue CRA respectively. the highs of XXXX. five-year $XXX.X X.X% set this

revenue the or share, growth achieved the a net U.S. revenue million from associated posted saved year-over-year profits currency constant CRA faster for per on diluted X.X% strong performance EBITDA, this in headwinds our than We and currency record growing non-GAAP $XX.X that with earnings dollar Capitalizing with the year growth each XXXX, reported basis. despite fiscal income, revenue. on

for our CRA's international revenue was and increased American operations X% growth geographically grew X%. by XXXX fiscal balanced as by North operations

expansion by Our was and by regulatory led which X% services legal grew year-over-year.

double-digit grew anti-trust investigations practices Eight CRAs their risk economics, four labor competition intellectual and of analytics with revenue and delivering property, and in line growth fiscal practices, and employment, XXXX. top

we our quarter, to fourth the broad-based across see For can continued say, we portfolio. strength

contributions Reported American balanced XXXX. revenue fourth year-over-year Currency by compared our respectively. revenue saw X.X% with currency year-over-year by growth basis. the which constant and fourth and million Geographically, X.X% fiscal of we X.X% quarter operations, international $X.X or revenue a reduced X.X% headwinds on North grew increased from quarter

financial and with revenue six labor risk way were auctions in quarter fourth intellectual and the the Leading property, and investigations and competitive finance, bidding, employment, growth double-digit economics, practices analytics.

economics the and quarter. the also year-over-year, impressive, expanded headwinds is which competition, strong life and antitrust sciences during fourth given largest our CRA's addition, In faced practices that practices global currency revenue

provided to economics competition in a like minutes M&A revenue quarter some CRA's a our Approximately and to antitrust highlighting practice. of fourth linked from services now would arising spend activity, I quarter. of principally few the the one-fifth given during is

records of activity percentage the second-half and declined decline since half, in to of $X.X largest half of the XX% XXXX. second activity XXXX, largest the to Worldwide XXXX in acute particularly the second representing percentage That compared the year. XXXX. since in year-over-year M&A decline the in XX% totaled a half drop decrease compared first was trillion XXXX Transaction began

competition aggregate, a and of practice year flow antitrust slowdown Yes, XXXX XX% our to project merger-related saw in to expanded in in quarter year in the lead experienced a fourth practice of ago. the the flow, than opportunities growth relative Amid lead this fourth year-over-year. quarter overall opportunities the economics including revenue both merger fueling in a and and ago, backdrop, merger-related partially relate relative practices more by -- increase non-merger-related

During the of geographies. transactions antitrust practice and worked a CRA's fourth on quarter, range across and economics competition industries

CRA deal plan supported of subsidiary by acquisition XX For parties merging example, in team The in lease of leasing leasing Societe services industry vehicle effective AOD, and involved in the a a overlaps the associated Generale. countries.

affected competition remedy the countries The of in in vehicle of merger CRA leasing analysis filings of economists support across control and team prepared preparation.

the Following the Authority. This no concluded national the clearance concerns. authorities, unconditional including U.K.'s longer Commission the decision Market previous Competition Mexican followed raise the remedies, market would competition and Authority several proposed Competition European of that and by test transaction the competition

disputes. their work, review and to clients addition support In to economics merger CRA's practice antitrust competition legal and continued

testimony CRA and intellectual issues. antitrust class and quarter, and that of antitrust delivered prepared disputes intersection and international the expert fourth the and highlight During experts reports in property actions

and the from the mixed Looking fourth market. legal more increased XX% during in broadly, legal regulatory trends CRA's services despite quarter revenue year-over-year

broader were the total quarter legal market, XXXX case filings Within fourth up X% the year-over-year. during of

X% judgments fourth Within during of the the quarter XXXX. fourth of courtroom, to the quarter down number relative the core total was

fourth insurance matters in active all engaged of was was California's code. during areas of the matters, the the State insurance to core of related provision the various specifically, lapse practice including in practice quarter, finance its The numerous

economics America. fraud during regulatory A assets arbitration The spoofing involved financial related to their the multiple in matters practice the practice fourth suspected and international work work as quarter various disputes its markets certain into assisting matters responses on financial of in redlining. lenders mortgage from including well in as or also to continued with securities alleged matters, portion significant the investigations Latin and Europe international

lending Equal patterns the assisted counsel CRA market. lenders geographic of team their and financial the a consumer client, assisted major formulating other inquiries. focus clients regulator's the regulators The analysis them legal is credit a extensive in performing against benchmarking responses to access also to of protection by policy in and

a valuation during government technology was to the contractors goggles patented its high-stakes two their matters quarter. The the damages from the with infringement advised matter soldiers' and of federal arbitration, by property litigation, arising intellectual In alignment patent retained evaluate to related sights. practice vision alleged night from of images on infringement and weapon's CRA the multiple images thermal of from

U.S. demonstrates consulted economic an of issues plaintiff's expert the floor prepared hearing provided The CRA technological Trade and Commission multiple reviewed patents value damages in significantly the ITC also the devices. property by testimony investigations evidence suit. extensive exceeded and that on the allegedly the innovations, distributed and practice in analysis claim involving intellectual International at cleaning

continues including engaged CRA's practice California's the assists clients in finance, their and a Labor internal groups. was The practice wage to annual health partner Employment the care, technology be clients variety laws clients Standards arising and and legal, performance among and CRA's efforts navigate of hour quarter industries help on equity critical to across Federal compensation employee Fair for work Labor during and promote mediation Act. to entering lawsuits a from various decisions.

matters Commission. experts or collectives Employment actions to employment classes, by and the expertise Opportunity multiple on deep and Equal retained individuals, being CRA's led brought

retained and violated example the the discrimination analysis behalf have to medical economic For center's Americans on policies. the alleged an of of statistical with Act provide to and Employment CRA age academic Disability and center, was Act,

executing focus assignments. continues and investigative, and The risk practice investigations to multi-disciplinary, analytics on matters, analytic

financial across multiple international The dollars over the of and supporting emails, flow thousands forensic undertook asset, prepared and on other that of report. hundreds professionals several work millions in factual investigative of of of stretched services team funds industry a analytic reviewed quarter, to team a During the fourth hundreds jurisdictions documentation, of misappropriation continued accounting, records, of years. analysis, financial fraud related a and and analyzed

consulting and established. In the since dairy $XX transacting fourth than trade fiber Ohio fourth managed in was management milestone our achieved the procurement Within over GDT our competitive exchangeable auctions, practice electricity more cumulatively auction's five natural marketplace during auctions the bidding trade for and in global events, trading quarter, XXX offering, XX the billion of clients quarter the events six Pennsylvania. dairy marketplace

in of gigawatts support the utility storage, energy team processes for resources. managed utility range three for including thermal electric requests of United generating resources, capacity development CRA's RFPs and of clients the electric renewable Additionally, the over proposal, a States.

Commercialization In the the practice. Life launch mainstays of quarter, remain last oncology strategy were therapeutic in work and of continued client Sciences categories. product CRA's our work also but our active strategy expanding we consulting area across other we the in

manufacturer has drug. working been practice pharmaceutical access a market the with new life anti-fungal for pricing example, a and on For our sciences

physician-level physicians We with strategic and are econometric building research modeling. a and data, market recommendations place health foundation -- of on hospitals, plans, analysis and of our patient

bioStrategies CRA's also extremely I'm late important In announcement Group. addition the made regarding by practice to of we November in to work, is excited the acquisition

products to Our to Based technologies. are this at Sciences of On colleagues everyone developing behalf focused colleagues. a welcome I and in position bioStrategies map Life healthcare in on better of extend CRA the Chicago, practice XX to our group geographic new from and clients serve the strengthens our Midwest. strategies commercial for warm CRA, want new

million a for work during currency the reported million million fourth Recapping for for quarter constant our important grateful their address $XXX.X CRA year I'm to the throughout and adjusting record my of our $XX.X headwinds. revenue fiscal we their most clients after of financial Overall, all colleagues $XXX.X on currency performance, as hard challenges. basis helped XXXX or

basis. was $X.X EBITDA constant EBITDA XX.X% currency currency after non-GAAP a for or constant on headwinds. on currency $XX.X million margin Full-year was basis of adjusting million Non-GAAP a XX.X%

Our fiscal marketplace. XXXX performance in demonstrates strength the continued CRA's

generating consulting new our in talent and increased headcount. invested have We

sales year-over-year. the We flow project increasing fourth XX% also our by lead continue quarter to replenish with in pipeline roughly

trend of growth. to as profitable of we positions XXXX extend our us beyond, for well All look broad-based and this

Before and refinement referenced as I basis constant a this want was can this management morning's for that I we performance our comment provide approach the reported evaluating a CRA's approach to XXXX, Since we We on financial guidance XXXX, guidance for to the when performance. financial that on transparency to earnings operating believe coming control. that provides highlight fiscal in currency have announcement. year comparability provided our financial

basis was EBITDA investor and gains EBITDA results over Under from quarter Reflecting a and the both several this XX.X% of of non-operating for first 'XX with the we non-GAAP revised constant fiscal on on XXXX, the years, foreign currency of effects of 'XX. financial CRA's and definition, exclude non-GAAP each to arising past be our years our margin currencies. communications will losses presentation modifying starting

on a for fiscal XXXX to a constant as expect million XX.X% we $XXX EBITDA margin the range revenue $XXX this to and of With to range currency backdrop, million basis the of relative non-GAAP full-year a in XXXX, in XX.X%. fiscal

can affect short-term in with performance we around and mindful While remain uncertainties business. strong health, XXXX, conditions our we macroeconomic, from are CRA's public pleased arising that political business, challenges

call few With that, for additional the Chad? then comments. a Dan Chad I'll turn and over to

Chad Holmes

Paul. Thanks, Hello, everyone.

update to want deployment capital I during you initiatives the on quarter. our

revolving our the During quarter, prior our to $XX outstanding year-end repaid zero, as of our borrowings we in we credit bring done line of debt have million to years. under

$XX.X Our at million XXXX, quarter cash $X.X balance to end outlays by million. talent for quarter our year the in The the cash with of fourth during connection million forgivable $X.X increased loans investments. so of

amount bringing also $X.X full-year We the spent expenditures million. $XXX,XXX on capital to

XXXX, For with real expenditures million to $X expenditures estate. million $X we increase on primarily fiscal year-over-year related the expect to to capital spend on

dividends quarter. to fourth in during our million $X.X paid the shareholders We

XX% net year, half of and represents adjusted cash adjusted to combination of of repurchases and our stated million to operations our full we the shareholders. For through a dividends. our of from total CRA's operations exceeds previously from XXXX returning aim flows quarterly shareholders cash of share $XX.X a This flows returned

program. share CRA's expansion, repurchase authorized of an $XX.X approximately today, have Directors under value shares earlier our additional common in program Board of existing million share an With our repurchase expansion this announced of available $XX As of stock. million we to

XXXX, Taken shareholders. outlook, fiscal demonstrate capital confidence look to long-term CRA's for we while to simultaneously profitable together, growth our capital in allocation continued our decisions the as business invest in in meaningful returning

Dan will a for call comments. to I that, final Dan? turn over few With the

Daniel Mahoney

Chad. Thanks,

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

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

and impacted was of entertainment including in commissions expenses administrative fourth a XXX, attributable by This X.X% increase for the a This XXXX at headcount end revenue ago operating increase travel with senior In reported XXX an compared of of terms the services officers, was XXX year X.X% this consultant other at Non-GAAP junior expenses, to primarily to and quarter non-employee XXX XX.X% selling, year expenses other with fiscal consisted of the staff. of fiscal and quarter's and consultant headcount, experts we ratio. the year compared XXXX. fees. represents excluding ended professional XX.X% XXX the staff, general higher which

fiscal For full-year fiscal with for year ratio the full compared the XX.X% was XX.X% XXXX, XXXX.

rate The attributable compared compensation. the The on for basis fourth the to of with lower the fiscal for a of on effective a XX.X% in XXXX quarter XXXX quarter accounting a non-GAAP arising quarter rate was from tax largely the basis fourth for XXXX. benefit was stock-based fiscal fourth non-GAAP higher of XX.X%

Turning days to capacity equivalents available the of and $XXX the fourth on XXXX the line and the further days was XX billed quarter third $XX.X total in unbilled. liquidity fiscal of balance in million XXXX. XXX of cash XX for quarter sheet. cash compared credit with million our $XXX.X of We quarter consisted at end fourth of the fiscal quarter the of and DSO a days at DSO a of million. of fourth the XXX with days of of concluded end

That now will the remarks, for call prepared Rob, go concludes our ahead. open we please questions.

Operator

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

Daniel Maxwell

Daniel this Hi on Andrew is for Maxwell guys, good morning, today.

in hiring? wondering well things what 'XX. be between detail little could that as growth any to can give a if give on 'XX I practices give you university on and how detail about concentrated versus thinking in kick off, can you as Just growth you're in And after breakdown was might experienced strong you headcount

Paul Maleh

Paul. Sure. Good morning, is this

for that us year the about XX% some of our joining the to starting a Right portions take and the year headcount the already on to I'll what our made -- try this match be demand to There that projection. best services. ended supply XXXX to headcount at are already decisions in the is we going labor of the of year-over-year we're been growth and do will close So on headcount, have summer. as now, pass a goes try fall

lot the you seeing services of kind that undertake market that on broader really an starting referenced a to offset in are but Those place that we the of headcount. of of a depends strength, but terms to university of that, in the replacements rate number, good can those at hopefully, to grow hires exact year-end that attrition firm we're the and on continue labor we we're any deliver and

the via any oriented year, the acquisition, particularly In any large of we hires are that absent do that Lateral university come at of towards the route. CRA majority hires individuals. typically senior-level revenue-generating

of going via majority to the hires Daniel. are coming university, So be

Daniel Maxwell

that's thanks, Great, helpful.

Paul Maleh

with top antitrust and respect of contribution will the up you. for life firm's The rest their to that majority being I'd economics, And roughly going sciences, the finance to competition line. hires the practices those didn't of and make XX% as revenue revenue. forensics, four practice, practices The firm roughly to of to across realize, four are now I proportional that answer my come our the respect, with finish be

Daniel Maxwell

for the that. all parts Thanks helpful. that's of Great, hitting

Paul Maleh

Sure.

Daniel Maxwell

on comment and impact those and on baked are of macro margin any you assumptions in may be low into guidance upside the estimates. downside For guidance follow-up, the can of just would high or wondering the ends range broadly you my from expect if flow-through terms that

Paul Maleh

a with the it in don't of factors. with to weather only to one be I It's read uncertainty will minutes wait respect change. how like the macroeconomic few think just Sure, New who I sort England, and would our voices here

stepping we So CRA the pretty periods resilient to To all with time. how factors has have different and of been I date. during could different right now, are larger practices forward CRA observe responded date, hitting

With to always M&A I lot respect a So to, portfolio I won't about seems ask the volatility, say people activity. know of have downturn. weathered that

remains strong, still revenue particularly market M&A earlier. broader that Our given relatively the statistics cited we

and regulatory thing continued rise enforcement of to is antitrust cracking that environment. antitrust the change services technology enforcement demand sector. financial across in That one the general benefiting here and to we there. whether and not the from are in abroad doesn't changing market I'm expecting are it be or clearly United The is States Regulators various down seem the and sectors,

So firm Lead we're eye to I'm that the first general keeping couple performed also flow has of that the the been we've date. continues on trend way factors, the months of enjoying. fiscal all with happy into 'XX our

in So more Daniel. to come on area, that that

Daniel Maxwell

from Thanks it that's a me. Great, lot.

Paul Maleh

Thank you.

Operator

Our next with Marc with Sidoti Please question is from proceed your Riddick question. and Company.

Marc Riddick

Hi, good morning.

Paul Maleh

Good morning, Mark.

Marc Riddick

I wanted So to go over.

me the a couple challenge. of I was of the we pickup folks headcount, you're which of for a Just kind sort -- out talking certainly at about of the that is the cover sort talent trends jumped lot acquisition a that we on of some indicate positive of sort about. thinking areas the views that of of major

you maybe how imagine that inflation this wasn't or bit wondering could a And about, would I the bit kind talk I the, about so add could talent, about it was should maybe think environment. a little you but we pricing maybe talk to little that of expensive

Paul Maleh

it shot. give I'll Sure, a

on your based proposition You the for long-term think you always what is hire value firm.

firms at based and best is any in point brightest those the CRA, livelihood For on like the hiring varies. time availability of individuals individuals and our

I'm is are going value-based continue have will and to we about on take if take it NPV not volatility going just may too of decision that it. any positive our short-term kind that pool colleagues, thus worry to to profitability short much of we're projects. opportunities it's makers because So it term these enhance cause to we

I market, gone mitigate calls. we've largely given to that shake but we've deliver to past see we're rate The to been professionals able of slight way will a more the cost the up, As cost and services been our the where labor increases that to we on has more helps mean, into senior to leverage in that some pressures. has softness out to earnings services. being the labor of professionals By costs if that higher deliver thus matter, labor our those talked able junior relative trying through about of broader introduced date, offset we're also

see you from higher as margins ever 'XX actually as to But 'XX were achieved fiscal profitability relative fiscal we the firm. have than margins and can identical XXXX, in XXXX and a were the 'XX,

mitigation. good I to think doing that the pretty we're continues cooperate. on job future So a Hopefully,

Marc Riddick

I little how to the to was clarification leads broad a actually that in see wondering entertainment if having maybe that a that maybe of to the this going bit as commentary how out bit appreciate maybe a next in wondering -- out see and about clients to having guidance. maybe if sense was the the the I that could of talk just And the comments pickup. you is face go prepared kind into and ties the margin more and face have I little expectations I'm guide our of you and question, into where to talk you're flows to and in sort of you're as there, activity of view levels expenses my far kind 'XX? and currency maybe heading of maybe flowed some that maybe range thinking around that and travel for about and we're into setting or you far remarks where some as that relative as how seeing what pre-pandemic also you

Paul Maleh

think easy let a me what really Well, question. answer, is first I

levels. pre-pandemic of terms in said You

levels profitability XXXX. of March are prior consecutively Our to that been enjoying they now record than several And 'XX, years. for were margins are, we higher March have markedly

mistaken was fiscal my on So spend the I'm for half to margin provided of is not forward-looking on that the what the just going margin same more have If of we guidance the XXXX. for 'XX I'm the roughly in to it. going-in second as try answer

unknown. out, of senior heading can largely uncertainty interact that but in a with for seeing have is so of we but our marketplace, clients, also begin just terms sort we clients into also I'm and XXXX. not interact look, in interfered in we hoping because that which meet get to with the of that begin prospective has with uncertain and to with that our our more environment remains services, demand We the COVID stable our ability talent recruits to

and too be near marketing With a think incidentals respect or travel we're CRA. I of that CRA's to don't doing could much and anywhere at meals sometimes client SG&A. outreach driver

I'm are So out if business support this higher going colleagues see with to SG&A gladly seek levels. and to and kind go them my opportunity willing the out of opportunities,

I opportunity, forward, comfortable the going the last roughly have years. I'm with really always yes, there Do same but think upside opportunity, range. couple is it's there in of we for the as position upside So that an an been is

Marc Riddick

to to authorization. the the seems historical it approach, fairly consistent then the announcement be up of capital though be And great. adding as use cash the as well with returning Okay, share you're with shifting of a practice lined and repurchase as of to shareholders multi-prong to

picture. So, since seeing the that's I least us could or months valuations little wondering potential side in bit a if at talk to spoke, acquisition as last if sort can there, changed what or last was pipeline much as six about you Maybe the far about you the maybe we so. of of maybe you're talk the

Paul Maleh

Sure, I'll that on things with then front. a over start to and I'll Chad words kick few

value Our commitment of the to CRA maximize strong. share per long-term remained

to because dry fact, no in that of if presents capital a $XXX I not by lack CRA time means projects at constrained, million forego having my I am of any NPV right itself. can have at capital, point I positive opportunity in powder Here access that of the

capital I years shareholders, substantive continuing ahead. our back quarters to and So we returning been in that have see the and

join company. With excited more this respect our that been than now, robust talent just is select funnel the It's to today. really it right our really to never the efforts has talent any to pipeline, right I'm

with provide pipeline. going little he in can a maybe Chad over it the senior more color turn to to talent of So I'm that, terms

Chad Holmes

and Thanks, good Paul, Marc. morning,

Marc Riddick

morning. Good

Chad Holmes

and in about for to CRA you always be talent. calls, talked know, have been to as and and looking So, prior we're continue we've the team as active the hire quality market in to individuals

see to individuals track and CRA's extended a performance strong over who been time. to this period have high-quality strong record drawn of of flow of continue consistent We

it's is As Paul said, been. as our rich pipeline as ever

remain going what's healthy despite they the valuation, financial markets. broader Regarding on in

remained disciplined strategic opportunity, opportunities, elements have we when the So and can our filter we consider primary talent overpay. cultural including financial valuation and not have business those evaluating fit, assess good hurdles and opportunities. fit, we identified once then have remains we A when a mindful to we're acquisition cleared

you across So active and year, see able which we biggest XXXX. through outflows many We investments spent our offering. the offering, to practices, were towards we our the that is of make legal last can were that throughout the majority directed probably regulatory

So and a would pattern, invest for in it's XXXX, roughly going expand I opportunities clients. solutions the we're been contour actively to proportional. expect our business, similar be good to to provide those our looking

Marc Riddick

Okay. you very much. Excellent. Thank

Operator

Our with Steinke Research. your next proceed Barrington is Please with question from Kevin question.

Kevin Steinke

morning. Good

guess is of to just that merger-related what So kind growth, it on Can what slowdown the mentioned the driver gaining are the practice. there, quarter about driving in lead the a that some Certainly about you are or you demand? wanted I share, that and in factors flow you'd little market touched flow competition of more leads. lead antitrust impressive talk you driving you bit economics talk the highlight is I a key despite XX% enforcement, growth what's antitrust with

Paul Maleh

morning, Kevin. Good Sure.

been North and They America year not about of about talk practice. because praise our my we're by Europe comparables start here saying we in have for that practices, year. when setting do record of year to practice I bowels easy sort my after after to Let competition performance of levels talking colleagues me

when been that first, grain M&A levels, of for talk flow practice marketplace declining in the that quarter-after-quarter. with at a salt lead So QX in I that take they've about in high

getting share the of fair not M&A here us contemplated, activity the I'm in So both abroad. being worried too and a about States

for for the company companies, we've companies, in for of conducted Secondly, we're continuing Europe the being of better and been in firm. go-to-provider the major here for similar and United institution major that inbounds States investigations seeing financial type type the a technology

anytime the with It's ascertain will pleased of I'm growth colleagues. pretty practice So our hard practice of when revenue, the XX% to into timeline competition just projects, you a excellence of those of always that. it turn the a year-over-year have but turn those for into leads speaks to magnitude

Kevin Steinke

increase you of just more And in least economic some a guess any call practices, the face again, any that the business of factor trends, point where or competition, across Great. uncertainty maybe it in on you and touch demand I that quarter. out fourth broadly able maybe That's demand. driving of firm broader that in it's just four you project XX% is your again people like the in impressive flow pull to the quality top feel being antitrust just other mentioned the could across you overall or outside to lead the they're at or

Paul Maleh

was in arena with services Sure. practices during The majority noted we of our driving practice. regulatory the two growth as legal that largest competition the inbound inquiries QX resides the in forensic

quality the two medium always out but they're practices of there. opportunities again to been those is the good largest surprise, job no also of conversion and fruition. to our uncertainty timing the largest think So I hard lead to revenue bringing done The to a of those date to it, the lot pretty And with work, a but are projects hustling. long there of the it's flow individuals have there, over we've term of the the getting just to contribution yes,

Kevin Steinke

All right, great.

expectation, maybe margin levels XX.X or to terms there. expenses feel reasonable excluding commissions a XX.X% where about SG&A What of XX, it were that, do are the is is guidance you that so around in like you the somewhere out? still In thinking about,

Paul Maleh

find higher and that I'm percentage revenue of the could around XX% range on, the XXXX XX%, that be range, XX.X% within we're jumping may some to it the to XX.X% range, the our the or in is steady could range. that with of beyond. is SG&A think Variations just goes higher just marketing I because it not also expense but unique volatility really opportunities drive state also so quarter-to-quarter for comfortable be we but

manage to. to sweet think is we're I try a to that spot, going

Kevin Steinke

great. right, sciences. about I to All ask life also wanted

quarter. mentioned You in the growth fourth

so And tuck-in largest XXXX side. you your consulting flow did would be comments as life -- more again they're there, look helpful. there acquisition, well, management I the on know what's does and a just on What any practice the going sciences into lead outlook what a tuck-in but like

Paul Maleh

flow robust been changes talking lead about but there in in life in the the The I practice. no structural were arena was sciences, as -- legal has as positive. that not regulatory yet Sure. we

here, and their that to our continue So are looking we're as performance XXXX contributions that. in the I delivered begin supplement just expect to and people all always we XXXX

inclusion buyer individuals, additional XX just an us excited which also to but the us gives for from. those has from The home really it of group geographic strategy recruit not

Chicago now talent. top to location a for So us place becomes

the thing that sciences life a in terms lot Chad area. in talent that referred was talent other of the on, funnel that elaborate And but he of didn't to, that is

So to make quarters. work benefits for we're run. optimize us the and sure term make from trying one CRA they're near just trying No to fits, they sure long are good through, right in

Kevin Steinke

it quarters? as easy as out for something as if and just recast come have wait historically I and foreign we don't really recast just just don't adjusted Great, that's those the I excluding Dan, to question, to is the of numbers wanted then or just the maintaining currency EBITDA gains numbers to helpful. losses. tax kind rate the that's we'll margins know the And lastly, exclude a know historical if to

Daniel Mahoney

Yes, Kevin.

it is, net adjustments way our taking investor adding you refer by would of accounting gain that reconciliations already there, to. new have into or that well in this is those that income, of if a also definition. basis both the tax number reconciliations is follow on it sets which excluding because line the our the you're morning loss you our annual non-GAAP we we and FX starting with deck referring to as simple the under posted back recasted which I effect, So historical include just back for numbers as presentation that an

you look can, So that's to. another resource, you can

Paul Maleh

And range of shareholders our our was over one we currency hit foreign during Yes, that make month transparency QX guidance prompted for foreign comparability the much for guidance year. us our with change us exactly for the the QX. confidence mid-point at quarter earnings that pretty quarter-over-quarter and adjustment would expectations this updated call, and really quarter jumped When and quarter. into those profitability exchange, just was two it I months, in high on with the for impact the our we line just the that that our it had grew for out last for and profitability, for but to

Kevin Steinke

certainly the line I that, a looks Great, better you definitely, agree. item. lot volatile forward, that's of exclude think sense And helpful. that bottom and It I exclude when to going makes

color. So, thanks, All Well, questions. right. taking I that appreciate thanks for the

Paul Maleh

coming Okay. on Thank investors be and your the in with for appreciate to our quarter and progress in you, We'll first meetings Kevin, interest time in CRA. We updating look everyone joining weeks to months, call. and today. and our us forward thanks participating you virtual we on

With that, you. concludes that today's Thank call.

Operator

This concludes today's conference.

participation. your we and lines your you this for disconnect thank may at You time

CRA International (CRAI) 2 Mar 232022 Q4 Earnings call transcript