HCKT - Earnings call transcript Q4 2020

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Operator

Welcome to The Hackett Group Fourth Quarter Earnings Conference Call.

Your lines have been placed on a listen-only mode until the question-and-answer session. Please be advised the conference is being recorded. Hosting tonight's call are Mr. Ted Fernandez, Chairman and CEO; and Mr. Officer. Financial Chief Ramirez, Rob Mr. Ramirez, you begin. may

Robert Ramirez

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

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

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

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

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

Ted Fernandez

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

on on the as results, turn on will will well open Rob detailed flow the operating we with it as to I overview to then call As I comment normally comments comment some outlook. quarter, cash back over do,

pandemic. those our up Q&A. acknowledge We market we requirements by individuals remote to I open work acknowledge support clients nonstop during comments. would and will strategy who it the all globe. such, continuing associates also to the and I like to quickly very of to this that delivery start to our around us dedicated continue and to will related dangerous to After review and circumstances under want adapted successfully then

about is we're momentum eagerly XXXX. forward -- we looking to look quarter This how progress, and

prior below of QX not impacted. up the SAP, of and deployment resulted ERP which pandemic enablement transformation, OneStream growth of and Business The Transformation the COVID from results the was year, the accelerated double-digit and bounce our U.S. technologies practices. disrupted in Group these and cloud first growth strongly revenue our practices. Net expectations. our has the $X.XX of end on $XX.X I me was our QX, Since announce start days. the have it afternoon, EPS This through exceeded end which of results. pro increased revenues of quarterly per to and activity the am forma and forma up end results XX% net revenues Let million I sequentially. with we earnings the the year. through QX growth led strategy support of our $X.XX, today in experienced continued profitability back we by up pro year, digital reported the pleased our But that obviously were X.X% of quarterly COVID of share was to said, sequential of the year-over-year in as sequentially available Oracle we was last lower only has year which experienced

of sales for encouraged months. were XX in year's the ahead in prior first the further are QX that U.S. We sales time

of growth that's news. include to us, our as On stable, or which sequentially our which, DTP our and front, good for investments of Quantum the and platform, all are digitize have to highly will platforms, many platform benchmarking our proprietary continue very made our The years we global IP state-of-the-art fully was offerings Hackett differentiating development important Transformation international our well to Leap, for as Digital come. of drivers be Europe IP-as-a-service the

rapidly growing cloud be transformation important other will digital partnerships and future strategy to as our drivers our key Additionally, our providers well eProcurement, continue analytics other infrastructure with growth. also and to workflow cloud automation as and of

balance debt, to invest strong reiterate the continuing identify a has such how to it sheet fund our the strong important was to Rob operations It said, provided that back in that we with us to provide year comments. ability disruption flow outlook. will strategy our start me allowed flow I manage with cash On from demand side, us acquisitions on cash ability we our conditions outstanding operating continue Rob? make has results, and buy additional no which on dividend, is business. details and and while comments and generate Rob's cash ask following to position important let the stock With to also faced. on the market to our properly comment

Robert Ramirez

Thank you, Ted.

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

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

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

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

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

reimbursable that Reimbursable no profitability. note project have clients margin revenues expenses expenses. net are to revenues primarily impact travel-related and excluding to our to pass-through represent our references all expenses associated please addition, or In

to to focus limited to growth revenues revenue Given pandemic, net the the due of and encourage trends. amount travel we on business assess investors

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

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

sequential our the Europe. year-over-year to Solutions in reimbursable sequential Ted a an improving OneStream both in the on Group when X% increase increase for which on to delivery revenues XX% our basis. demand by the driven The were year, revenue $XX.X XXXX was in net cloud revenues prior QX transformation to decrease increase we X.X% As This of when remote and the initiatives. year, revenues of by reflecting the Oracle in $XX.X Group expense in S&BT for our practice, compared X.X% the were demand and SAP, decrease the a again, the Oracle mentioned, to of model and and enterprise of was as revenues period and to throughout from increase our was growth the prior of ERP guidance and COVID-XX Net we ratio resulted $XX.X the the the were year. both net U.S. reflecting sequential million, EEA X% high declines EPM broad range. million, engagement prior an Net X% same as for disruption service continued from of in offset our Net economic practices a reimbursable enterprise throughout million applications. revenues compared compared expenses X.X% above a quarter, see a client pandemic end to transition a of affected which

represents revenues currently year. the a basis company which to operations, U.S. up X% quarter fourth the for and X% of were sequential XX% our of when net pre-COVID fourth prior total down quarter on compared Our the

reflects the in decrease be and we compared now More demand. year-over-year revenues an expected. basis that decrease net believe first flat international Group continued accounted year. the client pre-COVID net a the fourth Net on of revenues of with company to a quarter in the XXXX, XX.X% XX% in as International have XX% importantly, the Total to for which engagement prior quarter as the a for XX% of opportunity million, X% our of company and improvement $X.X when compared prior of total revenues we U.S. were and in sequentially quarter

was income forma to travel-related our quarter compared decreased XX.X% pro contribution margins income share was assets taken from right-of-use the results selling XX.X% to down see was company model. primarily previous for quarter of The of was driven primarily in our operating million for the of forma last and of approximately $X.XX the marketing headcount consultant levels. virtual and XX.X% to or increase quarter quarter forma XX.X% the International in by to of which in XX.X%, fourth year XX.X% to we improvements costs. year. of million improved quarter quarter transitioned a forma in improved reduction XXX XXX of end share, diluted earnings margin million, quarter and as per $X.X totaled in as quarter was net lease previous of of share year excluding of at million of sequential Pro gross up delivery Europe activities GAAP a the earnings XX.X%. The SG&A company quarter net forma was GAAP the approximately approximately dollar actions of quarter the the of from of the high revenues for in by XXXX severance sequentially end driven million company share levels. XX% XXXX XX% which $XX.X of the executive from the revenues up as net the in revenues up our primarily of XXXX results ongoing million balances $X.X adjusted the of in prior compared year to was in pretax revenue the asset at and Total was as compared to was $XX.X compared taken of due per The million pre-COVID of Total EBITDA on remote of $XX.X AMS revenues $XX.X of in from gross response the year-over-year XXXX. for the office or and to and by actions of revenue on in XX% as charge, to sequentially gross included sales, recurring fourth disruption to driven restructuring net absolute $X.XX year. impairment prior when company revenues impairment down move to utilization prior million and our headcount for margins million compared to XX% of The of in fourth $XX.X and advisory, down company to decreases forma or or and IP-as-a-service by the transition sequentially pandemic. million leasehold pro decrease of the above XX.X%, This the of XXXX and workforce million fourth year. or reduce end sales net in the cash in $X.XX levels. revenues in XX.X% year-over-year income over at $X.X or net $XX.X compares account fourth pre-COVID in as costs and fourth models the million end net the fourth of to a earnings of which XX% diluted include quarter is primarily was up quarter the or primarily again pro pro margin compared on asset previous or resulting EEA net cost XXXX quarter $X.X and of in reduction per in net by groups, the primarily for the the year-over-year for revenues comparison reimbursable year. million prior XX.X% equipment GAAP gross earnings fourth net the a compared company net sequentially the net primarily increase second the represents and or XXXX. forma The year. company's result Our resulting the total margin $X.X to of in of our increase up per total from estate-related practice S&BT the was driven impairment net to by is totaled as prior to $XX.X $XX.X the revenues diluted and the as and million revenues compared as or global $X.X million year staff XXXX decrease at the end margins as total from property, to of quarter. as share $X.XX due of net we XX.X% compared quarter. staff quarter the $X.XX to XXX in of XX.X%, prior revenues receivable. as XX.X%. Total revenues per of continue the XX.X% the XXXX year. pandemic. million Total net pre-COVID-XX diluted range. a accounted was XX.X% the guidance in fourth to the the of company was prior XX.X%, $XX.X Pro of or expenses, other net as compared quarter previous million pro resulting XXXX XX.X% revenues real have fourth revenues included compared $X.XX of previous Net or operating space comparison the XX.X% quarter the reduction to to XX.X% and and cash XX.X%, taken from fourth net from on and and Australia quarter $XX.X resulted were or non-cash The of operating the in restructuring the net prior and provided activities the items related $XX.X revenues previous in primarily fourth quarter charge, revenues demand,

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

Given cash during credit unused $XX company's quarter. our million the strong balances, fourth facility remained the

quarter, satisfy triggered of restricted employees withholding purchases $XXX,XXX, cost of cost vesting shares. stock the approximately at by During tax we XX,XXX an share for company's to per average or a including the $XX.XX repurchased of of shares income total the from

Board authorization dividend dividend In quarter. fourth December from share, in of recent be million. to authorized quarterly April paid November of Our end Directors share made XX, now XXXX, funded, At $X.XX a paid also per increase X% in remaining stock declared dividend Board repurchase I second this at on of the and quarterly to the the per to for March of the making our meeting, its the $X.XXX was in $X.XX of per was was the the company's $X.X fourth the for quarter XXXX. a XXXX, its to most which guidance declared move its of $X.XX quarterly paid annual first X, shareholders record be on first share XXXX will quarter dividend paid XXXX. that

do of the I remind costs as from QX to business to remind everyone you, like would so, sequentially seasonality QX. to move relative I our of Before we

buildup U.S. of years, Specifically, our sequential vacation of the consistent guidance in the with quarter previous guidance reflect first quarter increase accruals. first XXXX sequential in provided taxes will and payroll-related

the XXXX to of $XX net that in Ted be for quarter first current the As of the economic continues and company's from range although the will high, to revenues be in mentioned $XX comments, million uncertainty pandemic his million. suggest estimates

sequential EEA to be down. We to for and up revenues S&BT expect be and Europe

would in we quarter revenues of earnings I to the when expect up first pro basis. in revenues up be XXXX. be $X.XX and international to U.S. per As first which to sequentially of be and on a be when quarter to We $X.XX, compared to of diluted the previously down estimate flat to forma mentioned, pre-COVID compared XXXX share year-over-year range flat

to to net be We expect XX%. approximately forma gross pro revenues XX% margins on

to and We $XX quarter interest approximately for be the SG&A million. expect expense pro forma first

to EBITDA range of quarter revenues XX%. on be first net to the pro in forma XX% approximately expect We

review the priorities tempered outlook months. excluding to XXXX to to balances, back buyback be restricted cash of coming our due this the of payment expect bonuses performance-related to net the to over impact triggered and the share shares. strategic by would I Ted like withholding point, market of tax activity turn of and At payment income vesting We for employee it

Ted Fernandez

Rob. you, Thank

our at that goes demand our mining It share further that forward, the extreme the analytics artificial applications, by influencing on clear, activities rapidly clearly adopt demand improve capabilities long-term organization. that infrastructure, on remain the business. are will which been fundamentally in we created deliver period safety growth short-term and process Digital and unprecedented enterprise thoughts emerging saying me to workflow As digital without believe what that it look required environment, an opportunity pandemic, to and to these organizations way has is accelerated offers let the pandemic our the and their prospects now transformation automation, but competitive. our businesses ensure innovation dramatically are the where also pace, necessitated it measures, evident all transformation cloud change digital has the disruption we for order redefining era is accelerated compete intelligence an forcing This and means new and and services. long-term

model the which next side, to Broadly believe the demand pandemic. that both and continues normal to understand the benefit immunity demand vaccine side, to short-term our our reduces expense will the future must the delivery improvement, speaking, continue results. now they On adapt result disrupt virtual to means through to clients is all and virus from acceleration until protect on sort the delivery the we herd must cost, all means improve changes, this transform we as the and while our environment the able should and us. of will overall sales organizations continue This lives

position pre-pandemic and profitability. levels to should and us requirement. allow year momentum return our delivery to into market growth we target us well XXXX to and new this acclimate of model clients next sales service experienced continuing Specifically, should the as and increasing is normal This the in in our QX

desire IP value to in our license potential partners increase bolster brand an case transformation efforts. from business that digital see to Leap and and to continue and interest their to Quantum our we Additionally, selling development permission platforms

our digitized capital more half our to new XX near-term of us pilots strategically, launching capabilities build will same, have continuously. now possible, with and serve increasingly in practice contract to or which with around platforms. clients and the remain remotely We our fully benchmarking should This offerings transformation IP, than our opportunities best continue them digital focus Strategically, to focused and over whenever allow intellectual unmatched and discussions. formal proposals, with is our on brand

we Specifically, Software with Leap, benchmarking service as This benchmark information to effort. allows enhancements leadership also digital deliver life to our redefine IP the believe and allows of platform a more continue solution. to through their there Quantum our our client in global clients platform our significantly transformation leverage us market. We respective It over initiatives comparable effort. is no track less the in

As interest from IP. leveraging have I mentioned, platforms experiencing been previously increased potential partners have strategic we and in our

platform transformation asset We IP our cloud clients also and our and design continue solutions is digital and a configuration to related implementation improve capabilities. transformational allowed our DTP software drive to DTP further differentiate digital organizational solution of to and to proven IP core refine us change. unique offerings. transformation applications our digitize help and align fully path

on with on investors added last the both of As so that a these to of familiar Investor Relations page XX-minute our demo have our mentioned I our more platforms. market-leading become can capabilities we website call,

our making. power investments as entire the summary, disruption validates strategic actively client of demand pursue these accelerate actively will and grow then positively ones to this for sound well with growth. positioned resume the scale and most to of can business, and economic our as brand we we which address leverage to that our the almost we are financial continue focus we along our we us our subsides. base also believe This growth We're alliance at to our offerings we to to capability the though have even are we continue look the challenging focus encouraged Lastly, and offerings such allow the the our position and In the our see continue IP believe year. have to and events scope acquisitions faced

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

we that down I and as to such and to overall our meaningfully capabilities an the obviously it it let maintain terrific most with such extraordinary entire allowed well think and at at organizationally have flow it's conclude taken organization, that cash our transition year really operator, difficult us from organization has me basis over look through on and even see to of we're and these as results flawlessly effort just easy move year-over-year call. a Q&A also the a the as the and believe into the our look balance exit really ignore comments, momentum fact the generation to Operator? turn as times. Those section my I the of sheet let's

Operator

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

George Sutton

about, X Nice side, results. into improvement. talked demand going acceleration due the Ted, on you to year

model being components? you more you of put the On other Can on your bit those about sales efficient little talked a in both new this environment. more meat hand,

Ted Fernandez

by Well, meaningful how that transformation itself already there and explore accelerate all -- pandemic simply well further took organizations is in doubt leveraging it. And to has and into was XXXX all demand digital what really really that just that they're technology. forced no coming

and Because all we clients the the our -- right? George, disruption the only inside changes that ours, in to consider also organizations that still increase. So have the are and that going safety associates of all to means of we communities. that need to concerns like of vaccine the said, system, engage our for for all also of I and for concerns natural and our have of

desire building their what that, to then are they're we to to to will we're take, relatively consider, on have an be shut they're to discussions, environment and it's X capabilities, be remote understand just I you engagement, call and side, Then to -- emerging how flip going that still ahead. even where such XX, delivery still transform to what's advantage clients technology, think happening the state a client. the though look, disrupted continuing economic be the are did, other will There construct, take you that to for In of same And of headwinds With why sales cases, you the also lies normally here, and down the my that that moving think saying, in said, constraints fraction and around able more of what what's carrying deployment increase. is travel that kind accelerated serve will organization, virtual to if I virtual consulting on the created the solutioning those we're our I is technology, some client. always continue is activity, the But to in have is mind, everyone, is that senior So market going to and this, to side become considering, like that And element stock our we we've me, our has dealt would even said, and the the to the some to including how the with the a I'm be XXXX. most of this the is people. your people face-to-face brings significant XX demand between driving an client normally today, to this when me, X activity, comfortable we ask faced, has about pace. that improvement of the in fact not and personal well but this in clients empty. and it's X mean, balance cases, with And interaction operating almost significant X% to we in close some in of only see somewhere are that to digital today much and fact Well, work-from-home and the it what model the the Demand within engagement ensuring of believe or us as incredible has all XXXX. want happen professional your lives. at acceleration, -- sides it down. level of everyone's don't today this. with executive. because continue what's us some that then work solutions, means both the that it, XX% pretty while to to And see expenses of continues office which that's what continues facing everyone meeting, consider even further also And spend just a consider in you X%, and model to if that's of activity, price out is were head executing of -- with you has on that when delivery will well. -- that engage the continue as expenses and opportunity of doing going operating -- engaging that, it that benefits virtually. going we and many has that wrap comes significant

come but strongly, how a were which other great leverages -- of kind when our happened deployed, this insights like ideas would doesn't virtual how you're that larger, So I capability. like would George, seem It business our not are, this people one so which and from many very in just and shutdown as also and relevant ours also IP feels it's I make is to benchmarking take environment. point, size we're always unique

we're they think, the was consideration it affect a of third as experiencing that go add will would I how and almost will, favorably forward. our I So things business we as

George Sutton

about cloud. the making on very they're how article had to Barron's talking the Oracle, So wonderful a effectively shift

Oracle. then other with well you're in Coupas about talk SAPs thoughts seeing that I very OneStreams? and folks the And obviously like could terms other any aligned specific relationship? of progress that if You're wondered you partners, and on

Ted Fernandez

article that's with providers, hybrid Google, that are they're mean, cloud with Microsoft Well, which X Oracle. it. compete really offering today trying infrastructure And of AWS, has aggressively Oracle their the to more and elements kind Azure, I HyVM how to

on-premise to for we the transition for clients, offering transition which get and cloud to their that from chance the this of you're full means are actively to what we us, yet To it after that, believe and to in it Obviously, work they a XX% us the Oracle engagements for activity, seeing leverage that's help pipeline on-prem then a it. NASDAQ maintained in significant, fact they're that move are our a that that's we're us. efficiently the to that That that When that you means marketplace expect how then aggressively configured actually participate fact applications cloud tech market have well I that's -- these level cloud, in they're positive. they the related take the to that competing look apps of the compete to us, is hot environment. very companies a and migrate deployed but new continuing about think application you client, talking spaces. now many as we're is company doing and When for on is So as and today, how that more -- is and and so take supported that the and shrink. at like environment big

George. for for well it bodes as Oracle, should bode well, So us well

Operator

Instructions]. [Operator

with in question ROTH Martin Jeff the Next Partners. from queue Capital is

Jeff Martin

specific it question the for if would drivers Ted, developing better-than-expected, quickly you a helpful. guidance of in I more couple comment high than But any of that, were relative your you trends it by guess, Wondering or be on Some for of you came thought? there beat end there can A million. Rob, things well. as to insight QX,

Ted Fernandez

SAP our -- George the market the the very, been we cloud activity of focus Jeff, HANA was the principal strength healthcare in of us, strong. for application has The I that S/X especially in, product Well, mean, Group, groups. very, some

outperformed. clearly outperformed. group my as also opening I Oracle the in mentioned of that ERP But -- portion So comments, Oracle

Our OneStream Group also. again obviously, continued much numbers, smaller to but distinguish aggressive with growth, ourselves on

was in that So transformation enabled activity it comments. was with along my then which also

technology initiatives. it's these pulling transformation So

also EE out on business of business, And were side so the helped the the business. seeing transformation side we it both it the of and strategy and

Jeff Martin

flow back that Do forward. spend Hackett? with insight pulled the bring all that levels relative of comparisons, get to wanted then you the you year, of to kind on to business there to that? to does acceleration, of were lot eventually through doing And obviously, and a of relevant? digital essentially QX, last Okay. XXXX, in transformation expect organic time in growth in lead that some a long being Is not the itself the How QX

Ted Fernandez

acceleration, you Jeff, to as that the necessary you business. were to greatest conduct to home it, increases The if happened want and immediately know, work virtual, from from continue call

infrastructure-as-a-service others So AWS, companies benefit you from Oracle that the saw like Microsoft, activity. and

side. execution in dealt saw You the with also that anything that

explode should of of was significant it continuing the that products improving. do that my investments strong, forward. the infrastructure pull I then and mind, the I though, into saw that creates in should some what there said pulled then was So forward by pulled was And application you the the environment. then Teams think it forward prevent things of throughout Zooms facilitate believe, use. application you did if of in don't in the app only should from put work follow weeks. But but followed the call infrastructure to what follow. follow the side what still I home of the place all I'll be, some had was the the these to be believe happen. activity to not was distractions It space some enterprise it, and to be that side, much the on that natural Because and virtual basically business businesses, which that operations actually of within necessitated

the activity believe say some would is but apps on see disruption, the 'XX there our which pull was I more that I forward. on the accelerated wasn't believe, core organizational related, and to forward the should that infrastructure related, you business. that subside. There So in now that enterprise pull change do as pandemic I was follow

Jeff Martin

average Great. size then the then you it didn't Cloud catch average maybe within the give growth on question, number for you And gave an Okay. but deal you and did I Oracle And could pipeline? last it, comment deal if also size quarter?

Ted Fernandez

was Oracle XX a side We versus was up did the ERP on of growth. to XX XX did We that side to ERP. EPM not comment EPM XX side our We Oracle probably strongly, say down. now to to be but the ERP on mix Cloud that Oracle have

the still multi-tenant ERP. So East to you're be in Oracle's us is will what's seeing we're you Coast. We And -- several seeing the it. Oracle expand deals options that that lead in capability, as pull-through XXXX. driver have Oracle into considering driving we a to is of what we're and is desire The believe know, looking available that

Jeff Martin

average size? on Okay. what comment And then deal about

Ted Fernandez

don't something, do Rob have I you -- on? Oh,

Robert Ramirez

particular... this on depends It

Ted Fernandez

multi-tenant there deals I -- to have we the we're meaningful larger going I'm were change. seen clearly say Yes, wasn't any mean, deals. seeing -- doing we that

at pulling HCM we larger look when market ERP, than we client, by we experiencing to clients large in going total some year were yes, we deals, are have those if clearly a were deals ago So it more at list through of you I of increase separate. in front ERP, another. seeing have deal through pull deal I can that multi-tenant size. but HCM give the We're of kind EPM, and me, don't that a that deals EPM, kind

Operator

with from Next Colicchio question Research. is Vincent Barrington

Vincent Colicchio

pretty your down Oracle much. was backlog I run know

process that are You in the of rebuilding Ted.

had we Where now end quarter? decent of quarter. Oracle You the the stand at a

Ted Fernandez

activity. pipeline still ERP now EPM Jeff, I and to as And told with lion's the take Significant share just underperforming. continuing

combination would So underperforming EPM that EPM deals together. we there, we have seeing overperforming, the traditionally because ERP the deals aren't standalone you're just of simply being have

success ERP So out our on increasingly broadening becomes our dependent capability.

Vincent Colicchio

EEA? some for could and And then us if between QX. is the SBT outlook you U.S. flat differentiation Curious give

Ted Fernandez

you...? why don't Rob,

Robert Ramirez

S&BT... that said We

Ted Fernandez

They're both expected to be up.

Robert Ramirez

yes. Internationally,

Ted Fernandez

therefore, allow year's opportunity exceed and allows what And us to for that allow would that's flat, efficiently, provides we're our results that is then -- And service well, more to delivery the will last in be that us flat. model QX. --

Vincent Colicchio

sorry. I'm

you So be they're both to expected up, said?

Ted Fernandez

down. with expected Europe to up Both be

Robert Ramirez

Correct.

Ted Fernandez

which down, primarily international is Europe. With

Vincent Colicchio

I'm the you? move year? gives And pipeline as of it business -- the seeing confidence you're curious that Is types then, Ted, in and conversations, throughout you that front the opportunity what the we conversations of of of improves conversations tone with

Ted Fernandez

pipeline sense. that in broader reengaging, engaging client are a way a the Yes, clients well me are hardest of to have as industries just that number is and as positive conversations a which been very activity, sign. Even is some hit the of

model. profitability, really really could Both allow delivery things long-term think to I prospects along it's us are us of activity with we're comments. mentioned to XXXX's allowed efficient those that in just opening more targets, return my -- that a experiencing we long-term and to growth as So

Vincent Colicchio

overall EEA? SBT this spend was So was in quarter. broader and the Would you say both that

Ted Fernandez

Yes. months, time activity yes. that we Absolutely. both groups, when was the versus first The in the U.S. that's was and -- in ago, up year XX across total a the said

Operator

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

Ted Fernandez

Thank you, operator.

thank me quarter. for when quarter report you we the everyone call Let forward fourth look first participating and updating our again earnings in to

Operator

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

You may time. this disconnect at

The Hackett Group, Inc. (HCKT) 24 Feb 212020 Q4 Earnings call transcript