HCKT - Earnings call transcript Q1 2020

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Operator

Welcome to The Hackett Group First Quarter Earnings Conference Call. [Operator Instructions] Please be advised the conference is being recorded. Hosting tonight’s call are Mr. Ted Fernandez, Chairman and CEO and Mr. Bob Ramirez, Chief Financial Officer. Mr. begin. may you Ramirez,

Bob Ramirez

and Group’s for first everyone discuss us The Hackett quarter thank afternoon, joining you to Good results.

The Chairman Speaking here on press X:XX CEO announcement Fernandez, wires over CFO. p.m. to and and of and at answer your was Rob the questions are A call Ramirez, Hackett Group; today Eastern the myself, released Ted Time.

the website at For our www.thehackettgroup.com. visit a release, copy please of

in that the or financial on We will is data on page not this any contained Relations also Investor statistical call website. release discussed the additional our place of

be begin, of and Before which making results, that the federal are statements These the projections, statements comments difficult our conjunction would question-and-answer we of factors the a in that and purposes our forward-looking future expected detailed may I securities which guarantee in involve vary. in may expectations, not be and you laws. be uncertainties statements not the particularly like information, to and estimates to of the especially be contained SEC and performance. These future about relate should are considered in forward-looking remind session, statements current predict to Actual will filings. we risks, the results accurate, following for only in with assumptions They may risk COVID-XX. light

point, I to over this At would like it to Ted. turn

Ted Fernandez

our earnings call. to quarter welcome, first you, everyone, and Thank Rob,

quarter; on also on normally call it do, detailed comments and cash some the over turn results, outlook. comment flow we to As I’ll the to operating open back overview on Rob comment with

the globe bravery exist first who us this allow to Q&A. non-stop individuals healthcare continued our of for that acknowledge the adapted able their call dedicated then substantially I our all of requirements pandemic. life, and circumstances our and dangerous I to under that however and of to those to like move the We continue. around tragic to We the associates to us initiatives the the commitment comments conditions during support quickly where wait successfully our limited the in responders normal clients defined. to ultimately respective also commitment all are work is and return eagerly commend very to remote In to would and have delivery of circumstances, client incredible dedication related of their acknowledging start globe. to our engagements review and and allowing around varying will then all by me Please market to strategy providers, spite notice on and

QX were from very Oracle did only revenues not from the also of our Overall, with in we OneStream of million up and afternoon net earnings Oracle environment. of XX% strong growth decline partially and go were to business, Now In from the up per spite disruptions our are current that is $XX.X SAP our the the both premise guidance our pandemic forma XX%. ERP as revenues from on solid QX, spite in sequentially this operating U.S. was by revenues weak growth, of growth group, we range. EEA outstrip to some pro but their legacy reported revenue share up results, EEA impressive I $X.XX, to performance, which which unnoticed offset reported What U.S. our Oracle year-on-year QX be saw groups. growth revenue from March, expected clearly More hope on we doesn’t was Cloud revenue long-awaited expected. within European

digital continued transformation Our to be initiatives. Strategy Business around and solid Transformation activity

which group expected felt the was the pandemic the impact group were most this quickly decisions sales in some March, of deferred. However, as

decision we the UK results the business to but a the see that be clarity as now challenging. to to pandemic. started to to same is shame return, demand the needed continued Europe front, due emerge, international the election delays allow some provide January of On It

the On leading our DTP our state-of-the-art of fully of of Digital Transformation the be we investments are Platform digitize strongly our and our offering made to highly development growth or to for strategic benchmark we important platform our Hackett believe all our the quantum and drivers come. IP, global leap have proprietary that two years investment side, will next-generation many platforms, differentiating

growth. Additionally, are growing software key continue our EPM also and of digital and our important rapidly also investments with momentum future RPA transformation be to eProcurement, providers and strategy drivers to our

tell continuing balance our the while allowed be operations profitable from generate cannot stock, and debt, to which you the economic has highly ability invest buy outstanding position fund sheet cash On year back to flow quarter I and our in provides how cash business. no first the a to dividend, manage important it the strong ability side, the during finish to volatile future us and our was with us acquisitions, our period. increase to solid start

perspective I the to quarter, on the with quarter. XXXX are the some operating consistent second results by growth aggressively guidelines more second turn share to year to like I to Before operating associates our that detailed we over hires, started it We strategic would using and adding prospects. of our provide Rob manage our and

entering associates the market associates As information important at the we storm, period any strong directly end gained our in decided That pandemic, well-being meant our cash quickly necessary we any priority. safety with top not further we this the while from safety affects all only the were taking critical precautions to believe to sure but the safety, make our pandemic of and of to their of layoffs started we decisions. from second very weather to provide quarter. early peace to with that We to they make which feel and were position, to avoid making resulting of least mind mid-March the knowing through the ensure would our a

to global forego solid our without with we as prepared weekly not were profitability we credit position XX, cash our March to quarter, our associates facility. as our did that the and on update first communicated needing we second in use our On weaken call we shared and coronavirus long commitment

we also the and would required that any quarter. decision-making, address initiatives understood We decisions impact prior the associates disruption proposed and existing employee-related better client the as to on our on and changes our of the third our of informed we beginning update

Rob Rob? strategy let on to details said, flow will me operating that make Rob’s following comment comments. market With our I on ask outlook. on conditions also provide results, additional cash comments and and

Bob Ramirez

Ted. Thank you,

overview I this As will and I’ll with a discussion of XXXX have cover overview during the the then quarter an of our I conclude related during an key first operating of following typically topics second I will provide financial statistics. flow will with an portion I quarter XXXX. overview results, activities for of along of call. our on the our outlook cash the do, quarter

For call, the our our or Analytics ERP, EPM regarding I and S&BT this and total of comment purposes results our Strategy EEA; International financial or of Group and Group Transformation company. the separately Group Business

Group and includes S&BT services Our practices. which America business benchmarking and the offerings, our results transformation advisory North our programs IP-as-a-Service our include executive of

Solutions Our Group EEA Solutions North OneStream of SAP our includes America and the practices. results Oracle,

based S&BT of includes groups Our and are that results EEA the in primarily our our Europe. International Group

expenses. reimbursable that note revenues to In net excluding all addition, references represent revenues please

in During include earlier useful believe investors. non-GAAP our press to measures which today. today, provides reference information non-GAAP our to we We release of financial call certain filed we GAAP reconciliations financial will measures

results from on based continuing operations. are today comments my Additionally,

year. from our with X.X% both X% through are reimbursable project no increased net expenses was to the $XX.X economic For and our Revenues to associated million affected in which of line The expenses, the in passed on is the to and operations continuing $XX.X revenues XXXX. quarter expenses, first X.X% prior gross were the prior revenues by margin XXXX from company the profitability. million QX as as guidance ratio throughout stay-at-home revenue quarter compared net were year U.S. expense Including XXXX, range. orders clients and to reimbursable March, the and Reimbursable Europe. impact when in travel-related our to our disruption for reimbursable of first compared expenses QX or primarily increased of have revenues

by to of $XX XX% strong which excess growth in from cloud ERP in Cloud, OneStream strong our practice were in to revenue, sales and first and XX%. software resulting for a year-over-year of SX the basis, from Oracle Net U.S. HANA Solutions within of was benefited a growth quarter specific SAP year-over-year driven the our on growth implementation on our practices, which practice, revenues the on of million approximately XX% basis. activity cloud revenue our mix strong is premise improved This EEA, an XXXX, EEA our also increase implementation Group from

basis, March business International essentially a total for first net quarter of discussed XXXX, of international Group to revenues XX% first as accounted $X.X XXXX, flat year-over-year Net S&BT quarter were first revenues for revenues million group’s of for all in transformation of the nearly disruption of as our in million Net our prior impact is $XX.X revenues compared company when in year. year. where the the XX% the were on previous the XXXX, quarter. the compared in was a felt. practice in to net quarter Total quarter company of expected the decrease of first XX% our Group This and prior

XXXX. of profitability executive the our include approximately recurring net in pre-tax our company revenues and of best total first practice of groups, our AMS company which practice and for XX% XX% approximately Our accounted quarter revenues, advisory and total

forma first year. compared million at the quarter, fourth quarter first was same XXXX, anticipation gross in of primarily X,XXX revenue quarter first first of in Total excluding quarter of for company company XXXX. the of previous in million revenues as of the in the revenues XX.X% growth. XX.X% of activities, the the quarter or and the Total first compared the compared cost consultant sales, XXX due XX.X% company end to to $XX.X or as prior and to forma quarter XX.X% of pro the headcount net quarter we XXXX, totaled margin net of pro XXXX, expenses was revenues the the hiring net as to as reimbursable exited the at in Total in of end period into of $XX.X quarter XXX first of

emerging margins first were on the pandemic the gross EEA was by that actions which March quarter margins year. discussed reduced by both by International was revenues year, to The in the in net XX.X% decrease in headcount-related primarily first revenues restructuring XXXX quarter driven the of disruption the XX.X% net in first of and as compared of gross to the margins quarter on quarter driven costs. first was quarter, XXXX. that primarily previous net XX% the and XXXX, compared in in prior tempered the first on XXXX, costs. the the were prior of increasing headcount-related revenues, in XX.X% of gross XX.X% S&BT revenues, quarter was by margin as

forma Pro period company diluted quarter was revenues, at our and the the forma the and prior the to net share revenues, SG&A income or in or income XX% EBITDA $X.X million XX% the represented $XX.X pro forma This quarter of in totaled XXXX the Pro compared guidance. first and as diluted $X was in same XX% quarter year of first $X.XX and million Total midpoint pro XXXX. of of per year first of XXXX, for quarter $XX first quarter’s as of forma which of $X.XX per first of compares net previous in compared in $XX to million net to net million million respectively. of million, the represented share, $XX the was XXXX XX% respectively.

return XX% for Our XXXX. quarter on was of pro first the forma equity

first when was GAAP $X.XX of XXXX, first the of GAAP liabilities XXXX of previous million first per earnings in the of acquisitions both to the results $X.XX included earnings quarter year. XXXX. diluted contingent and the a in benefit benefited quarter expenses, compared to quarter GAAP due approximately adjustments quarter by for $X.XX GAAP $X.X which first income of lower to the tax earn-out to share relating compared as to

provided in company’s to end million, previous by The in the by first partially income was XXXX at $XX cash operating at increases quarter. of primarily million adjusted quarter compared of offset the $X.X cash balances quarter net was XXXX, accounts million receivable. the the activities as the end of of driven for non-cash by were which $XX.X first Net items,

first XX as at or XXXX, end outstanding the of of to Our days compared the DSO previous quarter. end the at days of was sales days XX the quarter

second its the was paid quarter During XXXX, semiannual for of company first million the declared XXXX. which dividend, $X.X in

vesting income quarter to During XXXX, by of satisfy a stock million, of the restricted of tax total XXX,XXX the employees from repurchased we first of cost including shares. purchases approximately triggered at shares the withholding $X company’s

Our was remaining quarter the stock purchase end of authorization million. the at $X.X

QX XXXX, and due his profitability. Ted our limiting mentioned the current economic in of on XX% sequential of second to comments, to balance level estimates of comments revenue we our to Current as are given quarter, suggest from to outlook. QX, the uncertainty, declines moving to Now through quarter levels of expect XX% we significant maintain decision the to forego staffing a second

the decrease we However, do net our cash second expect during balances not to quarter.

As on a during draw intend to facility the portion down our prudent also second measures, we quarter. of credit

addition, the In quarter deferred also of Directors end. our until decision to declaration have Board dividend closer

to turn Ted priorities back to the coming market it At for to this point, outlook months. review would and over I like our strategic

Ted Fernandez

Rob. you, Thank

to entered compete destruction the It organization. beginning and have of has demand and unprecedented important influencing we services. without we automation, digital deal our demand me remind able just transformative required measures. as the to current and with transformation is dramatically in As it look is our regain the to businesses But workflow cloud an let tragic and the ground. with environment period environment that able short-term extreme innovation forward, ourselves to way equally deliver saying ensure this long-term the the emerging once necessitated enterprise our opportunity we of wrestle we to I growth our thoughts artificial The should pandemic and when we’re believe environment, offers goes the be society on their intelligence it share mining process applications, had safety

accelerated several organizations over and to to changing models new dynamic repeated and automated traditional fully are workflows linear the order enhanced is sequential at with redefining entire fundamentally and last years, an digital have and competitive. events change pace, business capabilities transformation in I business-based As Digital to remain forcing adopt intelligence. industries these

the see and we environment side, demand highly the is unpredictable. volatile On short-term

not can wait this see activity quickly is we What solid do call circumstances. because I to and So our this on deferred further how current I better believe is try the of know protect it the information economy. and now. remains client concerns being will now also only is healthcare we address that and for and wait to for

that but how to and we the help we to have best that will them priorities they it by see technologies We client know wait emerging agility impacts evaluate require implement. intelligence are investments, and delivered and the

well we This intellectual Strategically reliant measured best most which allow serve U.S. any aggressive to and our the continuously. expect should financial capabilities strategically, our that competitive. the health the be serve If expedient whenever our on it and on clients normalcy around returning to is clients build take is digital that to markets to will contrast expect remain normalcy. possible. crisis as indication, and is which unmatched remotely, and we in same, clear to offerings our said, we addressing marketplace capital. increasingly transformation possible, to fully that as the as longer to our more benchmarking We all concerns and and focus return be brand With as remain digital to Europe with continue increasingly practices new digitized with will transformation focused will us

we our global leadership continue solution. additional our benchmarking will Quantum Specifically, Software-as-a-Service redefine Leap, through enhancements to benchmarking digital in

state-of-the-art the their platform from life to market clients benchmarking allows we track we efforts. allows I information effort. As benefits starting client is just of no see initiatives deliver respective platform the this there are more transformation us comparable leverage to platform. believe that with the our less and in We believe the significantly It and IP always also to say, our over

our IP software also Transformation DTP business Platform cloud allowed and and us drive unique Digital help both to clients and to to DTP solutions offerings. further IP implementation asset proven to digitize differentiate capabilities. align core change. improve our our fully to will and related our transformation a is refine We continue organization transformational configuration and

and will we programs. Leap similar given as functionality IP partners we Platforms, to Service Quantum strategic brands’ of global continue a attract Transformation improved our other we and to Digital the to existing our success initiative, add Given the believe

launch case new well that that assessment, to implementations. as initiatives and to pilot digital demonstrate brand our brings credibility capability as expect paid will unmatched business our unique further with We partners transformation

digital though that our build to even to offerings Lastly, have In alliances which capability the capability allowed the the as we highly accelerate base as with period, IP our to provide now acquisitions that the us of us strategically can well applications our which as Even global U.S., our demonstrates and in as in leverage look add grow access challenging progress are client momentum though continue software strategic well we’re to most a expanded continue our summary, to resume the we in and platforms, to business, we we IP-as-a-Service and entering partners, investments investments the for companies. growth. our and scale making growth. this leading differentiated and offerings offerings cloud scope, our

them our let by tireless that and people, our and stay me will on our encounter. to stronger focused to ever. safe, short-term we remain highly than close remind And them for we efforts, always, by thanking challenges urge asking of clients regardless As associates them their emerge the always

Those comments. conclude my

Let our the to let’s Q&A move of operator me over over call. our section it to and Operator? turn

Operator

George Our first Instructions] question [Operator from from Craig-Hallum. queue Sutton in the is

Your line is open. now

George Sutton

it’s Thank and was you. been, pipeline the then I world ever entering obviously Ted, the activity highest know QX that changed. your

you of pipeline. a give what’s happened if little us could sense to better I’m that So bit wondering

that in just much was that and has competitively? you how any simply But lost been if have or did long, won’t view how happen of for You call. mention deferrals deferred and the on of your sense much how

Ted Fernandez

activity obviously in With our are even it’s new understand to that of some activity fact high important and in these of was distracted though group that you know, last EEA which said, all, the quarter three growth first our George, over clients throughout growth the we years. with continues be that that achieved hampered to the high Well priorities. really

with which it the component So which April. significant saw executive key is some business client Those decisions. know personnel this you which thinking stable we we’ve top of Where clients also amount of where we have Strategy in before listen. to saying, and were expected not solutioning seeing businesses of of But effort. have We of we none a saw engagements I’m just are contract and what’s convert the remain I the starting, Business a above given multi-year during the a tracking, And call relatively business, in period more around that little both need interaction and are of opportunities well. happening. are advisory as Those opportunities both deferral we benchmarking March through on activity. to as entailed the will been, where bit time transformation side, decision, that the of continue a cancelled. were some decisions has deferral make our converted technology-related we it, and the Transformation hey XX their

So relative That in the is fact limiting that. opportunity. that to comments us, reason were uncertainty our around and the outlook to exactly for

are know on highly engaged clients with many that issues. We we

XXXX. with in the cases to using are reduction, aligned make strategic do, way cost is with are reductions the of to XX% that that which we’re demand of you and the when implementations some look will experience estimating many fact, of work decisions clients the to of In affect cloud some balance at are to have of the the the capital nature cost management, deal which directly make going transformation. They XX% need through to the working erosion that is that clients clients some they to we

we transformation some we of be growth considered side, it’s recurring off expect revenue I it clients side, strategy if revenue will the be totally deal have is that they on of the minor just going has So some But that seen to business transformation have We’ve expecting to have deferral on boy, continue – But with said the seen have? delay they especially the take to technology strategic said let’s is with through with clients. the somewhat. you That that that we we level scope continue been really And up in commitments. demand on of more in the dealing or erosion we’re the their change the that as work have see that or cost How is with some mean seen most to where that reduction, business agility. said, side. and decision-making.

by to them that best will client art we So information type and possible that do and provide on vary decisions require lot the with make. of the the to through industry said experiencing to to the the or clients the assess to have own, will the these we of wanted to and are and end a the basically volatility their efficient having client efforts, will things be we more they the that we are guess decide continue that’s allow define of That by and monitor quarter.

George Sutton

supply you’re consulting the is Now prior back are took cycles bigger The longer would need working component back difference in to if the a okay, and cycles, environment. is chain. my total cost broaden prior and management also and reduction, strategic your we of and to Those sense say, strategic in to I clearly piece transformation discussion going were operations are to then, look this areas capital that evolve. be

over that So issue to part customers going ultimately the their a to relative Is of such Is of in are point that period that near period. This at some in it? happened were future? time. way needs a in condensed think able the to a decisions fair happen all has of the realize those

Ted Fernandez

the needs productivity to fact, issues and haven’t greater, related with when going they’re most you think cases, significantly And especially their cost in some the through of is, have to mean year. I changed. I think it George. look, deal they’re in of balance of the

and and be and where feel to the would. allow normally a work manner one the the safely We’ve support happen able that Well, as to allow to we they the do engagement So people they around impediment? to and what’s know. the in biggest activities interaction those to return got

which So the they industries of with priorities The and requirements. inhibiting are is you. will of which I guidelines, the of do elimination the reduction expecting, some the or improve along some are the of with lockdown agree But what I many think going only not and client going to they are the be away, can are and Two, priorities able one, to enhanced. the if decisions are and to be across return for cycle requirements, allow engage open shorter those the board where we clients happen.

So and these structural but well-suited that comments clients remain also demand to I that that’s the demand some expect I of transformation, why and as we’re to make think to have normalcy. help optimistic demand, experiencing the some of with very to reminded able to issues, level the we our about and wanted first sure everyone the we resume return coming from be activities been digital

George Sutton

Rob, Ted, it. thank Got you. safe. Stay

Ted Fernandez

George. Thanks, Likewise.

Operator

question Andrew Blair. from from next William The Nicholas is

now Your line open. is

Trevor Romeo

Trevor actually This for in Romeo my for call Thank you evening. taking good Andrew. here. is Hi,

side the bit on more just if touch First, wanted to cost a could. I

You to mentioned staffing plan you current levels the quarter. second maintain throughout that

severe Just within there the... for decision other need that these any stance, to would of deferrals or long how any and are how to you reevaluate levers last sense

Ted Fernandez

as to by think was I to directly the with associates basically one, said layoffs sure level comments, we were especially understood. driven I we really make that our of was uncertainty not opening barely in my were decision mind, that really, the pandemic, any as providing much peace made that of limit

I But much that a health us the make decisions now have We of quarter. the call better idea made a many we those did idea, scenarios our like the organization to right and associates modeling commitment of any made that what through make information. is, is. of easily, a not have much commitment of we those have would disruption was route, better allowed we think second us we the our Could normal had taking earlier? until series that challenge which all would it I safe decision answer to by we economic and believe just for versus and a people. The of collectively protect our to that much better thing some anticipated

reevaluated We have were quarter. second decisions defined be that. would We we as those that exiting said the

before once the the in decisions, think us what June, make, as and then any layoffs be call, start but decision-making May to maintain will we to any still our commitment see to the I would we any, quarter, through third we like and that that balance tell to if limit the on we of we do able associates quarter. client need to the said

of that, very up opportunities clearly the be things by our earlier, of we that continue we we the that invest with happen beginning hope on our level we’re kind just previous up quarter, into some mentioned if client and assistance the the is that will suited seek a profitability decision-making. is significant in and that drawdown of improve we dynamics think do; determined answer this to to the all the open those measure. and will certain expect investment And simply – we that to fully as do we can QX to have we made we that Could be back things that a clients QX, are But by just from operating So and the question, of that in know there. of flow. XXXX. expect be regain improve, expect cash line credit a first, also also summarize, prudent business to can What we to in but

days our But and we protection unusual, before XX lot these of believe thought more associates that do at profitably expect that. we were we deserved to first business So least circumstances conservatively the decisions, clarity we’ve the always and a required and we through this run pandemic. made any

Trevor Romeo

focused the you. just you’re follow with end as deferral strong up, of And toward your moment. Thank helpful. still into decision. you touched weathering you go the kind to imagine an But you deployment plans balance about over I great. updated at the you M&A just sheet. I of the on mentioned, would a being pandemic settles? kind there. capital you dust on talked That’s came storm know for very could And option the of Okay, the dividend the once environment then

Just opportunity wondering it priority you right kind of your M&A the if forego where that and for made the dividend list in sits would sense?

Ted Fernandez

Well we that clearly acquisition we any believe those facility. it that would us a was or not, of credit reason be to scale, an did If to use separate. our see

separate look, our priorities, be to So we all in previously other those two. at look we continue to to had to we constituencies. then of and Relative we of want opportunities as to mentioned. care And fact, acquire, evaluate take the able

our current able go. that goal dividend information most also of was all. declare the that So we having better defer address be to prudent simply decision way without to not them is to instead to But thought

to both XX will So we’re the continue they to and that if in you – both understand better to wait, buybacks to the how more realize address and decision-making, normally of first additional We silent. reengage clients since want call of how the then buyback and continue it any would days fully you market in quarter. that activity. expect reengage third market, basically majority quickly we just are activities with fourth happen saw first now our answer and I decisions us, the were were quarter. Also primarily we related the net that vesting to quarter with fully for to then buying us, not profitability dividend The

expect don’t that. from any we cash expenditure So

want a with it will finish position to correct, how and achieve second we we’re profitability quarter kind the to then stronger, if what then are address entirely be better we we levels of cash we as today, want So dividends. the and

options. several have we��ll think I

Trevor Romeo

understood. Thank much. Okay, you very

Operator

from with Jeff is question Martin ROTH Capital Partners. Next

now is line Your open.

Jeff Martin

to you in stay experienced more of Hey, are Has engaged what touch Hey, it of been difficult on to you engaged? doing your them and is and engagement? with Could how Ted. you’ve what their for clients level Rob. staying front stay strategy

Ted Fernandez

first all, obviously Well of it’s changed.

is no, their So your to harder answer harder clients – it’s priorities. the with discuss and not connect

to their them. believe prioritize how So decisions I more assist it’s and really about ability that they really our

think So I it’s different.

our the clients with remains high. So, engagement

to do implementation of remote the cloud significant from we would and fact, did all that today we delivery significant, In important successfully. virtually transition is to we it’s that call model because what very remote very mention very, delivery the a work

Quantum to to then Leap, and of approaches think and we that provide announced us it, initiatives brand cost not press, the clients you’ve issues with some in supply the week. around new out to we research call, previous So one a gone we to seen different help. are clients only do to the and the some a we facing, of if have recently our very, the feedback offering, and some that allows submit mentioned how in only want should specific Strategic by that be recent again, very that offering way than I relative a and disruptions, decision-making the call results but our chain our analysts if the specific day capture decisions not allowed decisions, in the utilizing less taking could of less than data of

and at so the clients and level, tool just by little it very was prize slightly of a bit a way built. and we with that So with size efficient a a information doing quick priorities identify less helping different

research IT, clients. managing managing we’ve our our very think with with to aligned campaigns, across looked we and chain, all strategic been reductions, and talking engaging supply to aggressive initiatives, talent cost alerts them and So our

they the accelerate obviously spend to when through will we to their glad inhibitor So level and the they have prioritization also are but spend, end be want with continued that only of the of very ability determine clients and April. how

Jeff Martin

behavior noticeable of in any the trends Were of April? Okay, client between there of and April start that’s terms the end helpful. say

Ted Fernandez

some is new. think the god, March this decisions No, I were, of

little where where felt little with of in quarter will so initiatives bit call of transformation strong that I more of we end we a it bit disruption. some through a deferral business saw March, the the the the limited continued of those of obviously more And technology very

be we’ve any launch, and able these information and want or that deployment clients to clearly So to no, difference the hold. decisions. discussions a will in April and see we these May priorities one consider on assessment before understand we say would how actually to be chance going June, was we is better we’re And an now had capital personnel and to that with the it I was get prioritization. make

Jeff Martin

cloud able to quarter? the whether the Rob, discern or XX, revenue growth Okay. I for And X-X then XX, you said in wasn’t X-X,

Bob Ramirez

growth actually quarter. SX OneStream good, an had I obviously higher said some We higher are off emerging it’s area don’t increasing had coming Cloud, X-X, our the in and this in smaller in count number. normalized there’s the actually in Oracle growth We but level. working off is HANA Group of numbers –

Jeff Martin

Okay.

a quarter? the growth cloud give for you number total did Now,

Ted Fernandez

EEA in if did up was what, not, XX%? total, but We

Bob Ramirez

XX%.

Ted Fernandez

driven strong. what very were was prem that it so very If was from EEA the XX%, Those all very, Oracle it SAP, cloud, implementation and virtually of was growth very by call of up I’ll drag on next-generation OneStream, strong, little.

Jeff Martin

to increased automation to as theme Okay. and Are opportunity? this. I be do have you that come of seeing we increasing then interest think an going the And process what see as robotic is out you Ted, there

Ted Fernandez

interest the I we dabble, narrowly narrow able don’t understating those it to when to continuing tactically, We to that for have their that’s clients believe the it I are want because to broader deploy market enterprise opportunity – increased continue the too be in and We be software broadened address see to applications. or out. to more will they offering to going for believe see call RPA and really issues. and providers ability ability to not address articulate broadened still software –

application that ends you providers; the enterprise the then relative whether to and from But initiatives. providers ends that’s workflow providers, up software implementation up emerging emerging when to RPA stand-alone or through consider software functional war relative that large being automation, for whether directly the started. that Now opportunity has further ERP or that’s

broad workflow when that being being all to just enterprise that applications. was defined So RPA that automation consumed speak by opportunity you is across RPA, understand

you’re but very may you the So have narrow that seeing others, would providers space. to it’s are Oracle that meaningful, solution more software in than from see expected point the know, Workday you in emerge SAP or and through and

Jeff Martin

wishes both. and to your you well time for Thanks

Bob Ramirez

Jeff. you, Thank

Ted Fernandez

you to Likewise and your team, Jeff. Thank you.

Operator

question [Operator Research. Instructions] from is Barrington Colicchio from next The Vincent

Vincent Colicchio

the weakness the Hi it Ted. tied broad-based or is verticals? Is issue? extent that certain verticals what it is sequential certain to are To

Ted Fernandez

It the specific. was really really client Vince. was broad-based, No, answer

neutral, in their been have of has activity some had relatively but more initiatives. where proceeded fact, increased some initiatives, our to stop the volatile some In and some verticals, have

different no, impact think the So to as the no see is the way S&P you’re to broad-based, I this going XXX continue report. companies

Vincent Colicchio

is, I terms you terms, trying clients say of would looking guess maybe what a or pricing? – for better payment how meaningful in length financial I’m characterize amount of seeing are you better And to

Ted Fernandez

have mentioned no, think come as in an efficiently But mean being for able some I and pricing. you is deliver outcome them key can. real I the to as quickly

the on overall more your deliver to to rates. cost that they’re focused try to outcome to ability So attribute directly than or

Vincent Colicchio

capital the quarter? was what Rob, Maybe Okay. spending

Bob Ramirez

$XXX,XXX, Vince.

Vincent Colicchio

Thank me. for it that’s Okay, you.

Operator

At over turn this now like questions. no Mr. to further show would Fernandez. I call I time, to the back

Ted Fernandez

to like we first call everyone Thank thank for report quarter. would participating again when I our quarter updating second everyone look forward and to the in you.

Operator

today’s participation. call. you This Thank concludes for your

may You time. this disconnect at

The Hackett Group, Inc. (HCKT) 10 May 202020 Q1 Earnings call transcript