HCKT - Earnings call transcript Q4 2021

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Operator

Welcome to the Hackett Group Fourth Quarter Earnings Conference Call.

Your lines have been placed in 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

Rob Ramirez

Thank joining us operator. results. Good Group’s afternoon, for you thank and to quarter everyone fourth you, discuss Hackett the

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

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

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

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

Ted Fernandez

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

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

which open pandemic. the to increased were XXXX, we in We review up after disrupted ramping Q&A. When related by started COVID aggressively be of demand, our market it only we we to will will headcount comments, then strategy anticipation

the of disruption All swift. and was significant

experiencing for QX our increased services. recognized digital and demand as that clearly unprecedented. rate is competitive, strong to transformation the related It XXXX, We have embrace digital have we consistent since that client of with requirement engagement remain our and innovation to organizations experienced need the evident of change are pre-COVID is expectation, a clearly

Before to I performance. quarterly me our our for let by their move congratulating XXXX results, associates outstanding start

year pre-COVID our up XX%, and were revenues more $X.XX, record was of our EPS XX%. Our prior pro impressive results results XX% XXXX but which exceeded forma by by our

our their performance Given the call. circumstances, of onset at wanted to acknowledge the I

the net our basis. This to on our guidance and S&BT revenues our XX% were quarterly by Moving on strongly per Groups we practices. afternoon, our a our Groups million US experienced year-over-year and EEA pro contributed up US results quarterly both driven All performance of share $X.XX, to both across above results. up reported nearly earnings and of results. strong our demand and strong of of forma $XX.X all

consecutive was utilization the margins on SBT basis. year-over-year rates, Our a quarter gross and sixth with sequentially Group up for improving

offerings expected Advisory rate S&BT and grew to Services at Consulting to Executive than Additionally, margin are XXXX. a a our at IP-based higher into rate grow higher higher continue our

strong and OneStream was Oracle by growth EEA growth. Our driven

leverage targets. to to growth momentum and allow from the business This our of well over us to for and to Executive our saw are is demand model into performance, benchmarking should along IP-based Advisory increased high also long-term to of higher contribute performance. delivery our offerings, Strong end perform services at iPaaS as well. which expected continue as of and sales profitability efficiencies XXXX We European carry – increasing first improved virtual the as margin expected the quarter with our

invest us digital our in platform develop the of reported Transformation in of are components believe digital new to investments rapidly We important our offerings, benefit expand to global relationships, and growing development growth. which and relationships made all automation differentiate process platforms these which our believe benchmarking drivers cloud, and to we mining that strategy, technology noting Additionally, across or new were of are are platform, providers our It allowing additional Leap, workflow to results. have our our all Hackett These iPaaS our digitize fully and strategy. and and important without key results areas potential future Quantum highly DTP is us and of platforms proprietary our we should worth are our relationships include the of allowing are Digital enterprise. IP the our state-of-the-art any achieved long-term growth the quarter, and transformation

balance With to identified flow our and sheet our buyback cash expand also operations we to I make Rob? following in allowed current to our business. fund from ask said, to dividend that on us ability well continuing plan has and will strategy increase the generate on cash On outlook. while our to buyback Rob We’d as to comments to Rob’s results, me details as – stock, invest comments. credit flows, additional side, strong provide facility operating acquisitions in let program. condition our our market

Rob Ramirez

Ted. you, Thank

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

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

our North IP-as-a-Service Our Benchmarking Business America and includes Executive our and results of Group programs practices. the Transformation S&BT Advisory offerings, our Services,

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

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

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

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

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

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

from Before performance over like our I XX% totaled increase pro XX% net year prior XXXX move would pre-COVID increase diluted Forma an year over earnings to quarter of the operations the XX% XXXX. million, year. the revenues year, highlights an over year. an fiscal few fiscal fiscal continuing was when Annual $X.XX, share of represented compared XX% and to for of increase results, an forma Annual I per discuss increase of regarding XXXX. our for fourth XX% to prior fiscal Pro revenues fiscal and annual $XXX.X prior million, a fiscal net for the $XX of EBITDA were

fourth quarter ratio is XXXX the as have strong due quarter a been the year, also X.X% Reimbursable For the see high XXXX delivery million, to revenues increased of up above fourth when prior which of we on throughout to $XX.X to reduced our and XX% XXXX, demand our revenue the to compared X.X% revenues net The to the to continue end remote prior This compared is was up when range, guidance quarter. services to for significantly in reimbursable as X.X% expenses XXXX. our to our net compared compared the when QX transition pre-COVID service XXXX expense year. model. of

initiatives. an quarter a As year-over-year is revenues quarter increase prior expected Total EEA our international company International growth the the in Net net were compared fourth of Net XX% increase million, for were $X.X operations, Group same XX% when SAP an basis. continue when up to our were fourth to XXXX. Group the was prior which million, of software implementation represents when in revenues pre-COVID increase S&BT increase demand the company of This Ted Oracle compared the quarter period XX% XX% momentum driven Our mentioned, of of our XX% This prior expected the year. Digital to continued XXXX. sales. year, net the first on total revenues fourth XX% year. total the $XX.X for also for fourth the year-over-year is to our Group revenues our XX% had Enterprise quarter of compared when up than to X% and revenues $XX.X The until by to the accounted The revenues as of year. for reflecting million, prior of quarter US quarter also were the Net of Solutions fourth an OneStream fourth service also for offerings. our quarter the in of the in compared compared higher net Transformation company

net gross which or of our revenues, Executive our of Total company XX% of in diluted fourth the include benchmarks fourth in revenues of and due diluted dollar from of per quarter performance. diluted as to revenues net revenues our forma in offerings, above increases from balance IP forma earnings when for to charge the sub fourth primarily reduction of rights. consultant total end company activities at million Pro the activities, expenses, headcount headcount rates, the fourth in revenues of company’s XX.X% represents and margin The the up range. in the higher from previous up margin quarter, revenues, high were of XX.X% million, pro space million fourth from driven headcount quarter quarter XX.X% of $X.X of the quarter share by related GAAP improving – of compensation prior earnings associated office XX% was provided XX.X%, the X,XXX pro gross XX.X% the prior the increased the to net compared net subcontractors fourth million use of forma cash compared related quarter margins the revenues net net Advisory, fourth XXX quarter per prior of net million a on to fourth which the to per the million The hire multiyear compared improving demand. resulting net and same forma Pro is and company is when XXXX quarter. was EBITDA offset fourth of GAAP the approximately per million primarily International in higher in fourth the increase higher on as net share gross on $X.XX or the share, to XXXX in diluted adjusted totaled income million quarter quarter. $XX.X or the of XXXX. to $XX.X global quarter accrued end margin guidance of year. quarter impairment to sales, in XX.X% XX%, year by was XXXX, end total period in GAAP demand. prior of in year. earnings approximately $XX.X S&BT and practice company operating in of to XX.X% was by the in the the XXXX included XX% fourth share year-over-year revenue due primarily diluted Total as with in the in diluted Net receivable. to compared fourth XXXX, results fourth million quarter model. benefit resulting compared delivery tax This compared in forma the quarter XX.X% results resulting AMS or consultant the million pro requirements fourth company The to taxes the of XXXX. Total fourth net primarily to million for to Pro the in result partially increased as the incentive $XX.X compensation Our accounts increased from the income share, fourth absolute margins pro totaled XXXX, contract $XX.X offset outstanding service of and previous EEA expenses compared commensurate compares non-cash for XX.X% XXXX $XX.X with the revenues of of XX.X% as earnings and at quarter, and total as company increase decreases The $X.XX due resulting or fourth quarter the to of increased by year, revenues forma of compared in million of in accounted our reimbursable of prior of the for the increased net for were payable, was prior diluted primarily quarter included revenues contribution the accruals quarter revenues. of of in as $X.XX increasing were which increase pro year. $XX.X forma the share quarter or company’s commensurate headcount in share and appreciation $XX.X is to increased quarter or utilization exclude to with or exercise is year the quarter of GAAP year-over-year $X.XX utilization of of company a XXXX. gross increase of or the diluted in XXXX, net net payable the liabilities, earnings cost increased per is forma subcontractors up activity, pre-COVID revenues. compared per $XX.X fourth or restructuring revenues accounts cash demand. XX.X%. million work incentive IP-as-a-Service, for compared year-over-year our the by per accruals offset XX% was the of XXXX, primarily the and margin from income Total primarily to partially at increase net SG&A end revenues, due recurring of year. XXXX, $XX.X and partially $X.XX the XX.X% The quarter year. a on were incremental $X.X Groups increased end $X.X company previous as XX.X%, XXXX share was and compared of high at per revenues up increases income share previous as margins mix home emerging of up of asset of $X.XX in to of primarily X,XXX a revenues

of XXXX. XX quarter. days or XX $XX facility the end DSO million days, the the Our quarter of during the remained sales at the end days previous to The unused credit at fourth of outstanding as company’s compared was quarter

of driven the that obligations tax During million settlement stock of $XX the $XX.XX X stock the share million, approximately net quarter. an discussed per for company’s of total average last repurchased quarter, we primarily of we shares the a by rights cost with exercise of at appreciation associated

on share million. remaining first XXth, quarterly the $X.XX paid April per Directors Our authorized second per per a of of quarterly, stock the its the Board XXXX, the paid company’s $X.XX to meeting, fourth shareholders to for be this its In $X.XX share XXXX. be at dividend declared a on repurchase increase from was declared XX% end share, most paid and At the the March in December to made dividend record dividend November authorization making annual Board of of of quarter. quarterly in Xth recent $X.XX the quarter XXXX, its was which dividend $XX.X the payment in

move to everyone I the first I of of quarter Before XXXX, the we remind costs, of would business move sequentially QX our as seasonality for like from to to relative QX. guides to

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

demand $XX net of As of million to continues in the in the be be Ted to $XX company quarter estimates conference, The million. mentioned for first revenue this total to XXXX strong. range

first estimate quarter with – revenues of Groups. We the in of $X.XX all would to be in XXXX to be an At XX% We per $X.XX. of of across midpoint, to diluted the range first increases share pro the forma year. increase the prior total three the to earnings up XX% expect year-over-year XX%, represent this quarter over

margin the approximately revenues expect gross XX%. forma We be net pro to and to XX%

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

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

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

Ted Fernandez

Thank you, Rob.

As we it opportunity me share our long-term the forward, on the and organizations. demand let our on environment growth look thoughts near-term and offers

dramatically pandemic the for mentioned increased that time. created disruption, cloud retentions’ concerns, and digital the we in and innovation talent, have that mentioned, delivery transformation As should enterprise competition deliver demand also capabilities digital transformation that applications, although short-term have are workflow in for seen experienced I us to service resulting automation model the adopt help and emerging at is heightened digital accelerated infrastructure, very compete We of accelerated is as I’m virtually believe our address initiatives. associates competitive. long recruiting the that be change their a that unlike mining in mentioning to deliver to ability demand emerging to services. it I organizations activities for our in of new broader to from years. and influencing awareness delivery model The is redefining and hope we a the – pool global This attract service these last that the candidates. also we able couple had service accelerate unprecedented demand order way process The have analytics forcing mean fundamentally all created Transformation businesses pace, Digital an remain strong

allow and talent client industry, engaged us our flexibility increase we to our sales believe our revenues We with finally continue their are in path results to to selling demanding across efforts. and IP-led and provides retain and next our partners and on our will we sales our are personnel defined increase now this development, in their that model permission platforms our and our responsibility. which delivery to base many this area. This brand we invest struggled times license offerings, IP-as-a-Service which also IP dedicated is with a all of case highly changing. that and offerings, marketing attract to In we to will the requirements delivery our greater value to order perform resources will retain because clients of hopeful associates IP bolster and a to This a normal, that travel desire of business the to include our

such As XX we’ve launching XXXX had we believe formal these pilots results. benefit further said, over contract we opportunities and/or with our proposals, opportunities negotiations, should

potential brand, highlight also and We capabilities of we the This categories. and technology leverage launch key IP providers platforms across add continue new service allow of focused programs continuously. series selected vendor unmatched around over will help possible, a has high IP. the on will intelligence and our and great Strategically, us expect assess recurring and This same, increasingly digital revenue capabilities our to to initiative is whenever strategically, offerings to that fully margin focus remain should our brand build new believe that few another which our to and with years. next our transformation digitized the to our is clients to remotely serve unique

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

a of that it offerings. critical iPaaS We also component know is our

DTP application our transformation clients asset continue also offerings. benchmarking to solution software transformational core digitize to platforms organization implementation related IP to fully design differentiate change. configuration proven drive a our Advisory, us and align Executive digital to our transformation capabilities. allowed DTP cloud enhance solutions will and iPaaS, our and digital unique IP We and our further to help is

discussing trying element the be We the to on are capabilities solution targets now the side, of of the unique of we’ve to seeing some consider define. a some some been of iPaaS we’re relationships and that

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

acquisitions base we which at and business, we strategically look IP though and have capability, growth. scope, even scale our or client and that our we alliances the continue believe leverage Lastly, grow can offerings accelerate that the to our to for

year efforts my always, me short-term our our in tireless focused As them clients, encounter. thanking and light on them comments. challenges our highly to people, especially any close congratulating let for by associates up always outstanding an conclude urge on and their stay we may Those by

over Let to to let call. move operator section the on me and us of Q&A it turn our the

Operator

Thank you, sir.

with Group. Craig-Hallum Our Capital first from question open. comes your Sir, George line Sutton is

Unidentified Participant

guys, is George, on [James] for Hey this quarter. great [ph]

every just obviously lot of challenges seeing of a labor we’re So supply bunch a now facing. inflation, chain headlines, shortages, day issues, are businesses that

to Now of sort the you because help coming some of what in I clients to hear environment. position solve, within the new curious guys just help or sort you to existing be them top of are of unique current a think kind challenges are to

Ted Fernandez

higher you Well retention, can operating issues, clients’ supply performance. as on all place pressure wages our imagine, chain

said the seeing technology, always technology unprecedented answer introduced address comes of workflow we’ve say, from So, being the of of those which, we always you performance issues, we’re such XX% the of automation, we deployment a pace believe marketplace. of an as – way the into

that properly if or properly consider in remaining take other order clients of to to technology the for they implement. decide advantage is that organized piece full to – the The they’re

help our what’s Our be do clients well. and incredibly and which think organizational We implemented remain what’s what to help clients competitive. that and oversold understand being missed, can job we changes, technology considered to is is

make in, – strong But creates kinds ways, in that business, organize are demand of how just these you’ve those But us. They and with come that different investments. do understanding taken digitizing of the for a lot your environment new are tactical a of this kind we that by sure leveraging pressures of productivity to So, those it’s innovation to pressures James addressed requests. advantage technology, that. very technology then type primary

Unidentified Participant

obviously Very Or on growth the larger helpful. that sizes? from whether of sort compared some more deal would XXXX. across just last and is helpful. new business just coming year growth color to And could you then some I color entire very there existing clients, guess, be clients, encouraging provide

Ted Fernandez

they Well, effect – corporate But are Services, that Benchmarking it in the years. that We with that we always telling then know, spread that call believe is we’ve to and we we because XX or last in you number – Services be our broader people through a and we worked of a network Advisory the they client lot by of the or And Advisory something or ways. our more over first these and Services, excess back start enterprise. the are little network to Implementation Benchmarking Consulting track – lot executives, of different five the globally. talked Hackett our there’s a across people we clients seem that believe of that utilize not, just and XX,XXX

So, what Hackett call comes a of from that, our majority we network. business

performance trusted answer. credible the issues. is, way picked attract we me efficient clients, research – art And out way then directly picks you up And know, a addressing from Class. come we that Hackett clients. different the seeing someone base. some one last that of out research put or who good, around the Digital of across as that not the attract normally Tell new what we who it’s World asked throughout question of offerings, to most types of what’s the if that’s all global And way response So research improvements who’s to our mediums how the has possible call with someone what the been year. to these about The believe somebody you’re to we’ve talks get it’s that defines the our phone through client on then we we up exposed we’re good

any excess believe – mentioned in be single in of we in times. year, XXX will We

think – we by of out, that business mediums being also sorts us world, both allows we technology, our we- are continuously to able So that that business when putting pretty and be up information the economic picked it’s all efficiently. around different to promote that

combination that’s to the big, all have an – a and know the returned to to of efficient, with have highly work a someone directly been pace, exposed base, they favorable of way the that three, base had the but big collaborative are So, us. those experience Hackett

Unidentified Participant

you. And Would Got able the quantify just last the then you quarter? OneStream me. from one contribution and the for practice to Oracle in be

Ted Fernandez

it little quantify very it And to suffice the the information – But growth just a that can’t at provide level. since high we’ve we reported to that I don’t quarter. provide grew say, in bit probably strongly, more that level then consistent with color. overall

of – XXXX throughout know, little the since this breather a you middle took year, that As that throughout bit quarter. our been even pandemic, know of that but clearly, just SAP Business the has you on a fire business for

in And Oracle driven and is so the EEA from primarily from the OneStream. performance growth

substantial. very it’s know, you So

Unidentified Participant

again. Thanks, guys. Congrats

Ted Fernandez

you. Thank

Operator

Colicchio Vincent Instructions] Our [Operator Research. from next with question comes Barrington

open Your line sir. is

Vincent Colicchio

America, what does know people markets? the in the mix get India and What’s to labor markets I you’re Yeah. did to increase you right like? in And labor the think your South know, you are like? know look dynamic looking I those offshore two quarter? easily you – able expand the in. Are you Ted, dynamic offshore looking Uruguay

Ted Fernandez

Western but now The that of beginning or number and nearshore, go were US is the answer billable Europe, to back consulting or is XX%. of that XXXX, approximately XX% offshore if our approximately resources outside the you

little fold that on So are us leveraging years over engagements us those sensitive. in few resources. a last helped the that for has those competing that move And allowed engagements that to are in has – be also the been more resource – and pricing offshore winning larger very businesses on in very Bringing significant. it’s across competitive bit –

So, contributing been meaningful strategy our to on reporting clearly a the part and it’s of of some that today. we’re success

Vincent Colicchio

inflation escalators you also are through increases of in your any your that, you building some of part increased pricing? contracts? able to through of are And about pass And cost thinking

Ted Fernandez

No, believe through and that two some we’ve same we price those increases, portion we’ve that mentioned, period – put just are increases. we realizing I over of

XXXX. of So in part middle it’s of the improvement seen clearly been And since that that you’ve XXXX.

So, order own, more, to no, in people the marketplace they understands realize that it costing if their environments. it call to talented in want is you get

So circumstances contributors it, so we’ve our of one has pricing light favorable in to let’s had – we been the those performance. another – of it’s put for

Vincent Colicchio

earnings XX%, believe XX% to if targets. – your And your you financial – referring X% to should if or you XX%. in I had have were I revenue And to to is you ‘XX. you end? longer-term your and to that you’re financial EPS? remember is right to mentioned – you revenue, able the the the And The referring high targets referring be to on number and that Were just achieve EPS correctly,

Ted Fernandez

we’ve take our what that wanted business I’d XX%, that, back then the to our we Yeah. what sure indications And – if that – people lot The to combo be if at to at the the leverage – you is of – higher I drives so – wanted go knew QX can are what in you performing end we that and in the then what you higher into it end reported make and should – of I of a that we the a that. look X% provided drive in model. guidance that

to upper that the EPS side as well. it upper So targets then would – move

the all is today, the of as XX%. year combination discussing demand, execution, and business, our recurrent look, our the things so of growth – the improved during services increases in more example, Transformation and reported a were you a we’re our – Just without, a strong leverage so what and we word excess of to IP-based and Business sales forget that we then sales don’t this recall mean people that large our that but the overall or experienced as quarter, I we the of in know Strategy services, contract way guiding our maternal which – benefited comment, results part Advisory Group, the that knew we’re second is with from annual in for our quarter value of Executive which just IP

why just just seeing Vince. that’s seeing activity that we’re comment, we’re favorable made and – we So,

Vincent Colicchio

Thank you. quarter, Nice Ted.

Ted Fernandez

Vince. you, Thank

Rob Ramirez

Thank you, Vince.

Operator

Jeff Markets. next Capital ROTH from comes question Our Martin with

is line open. Your

Unidentified Participant

Hey, Jeff is on [ph] for This today. guys. here [Ray]

Just a couple of had questions.

trend of I specific been So for key to year. that third And Can that engagement how the in rose quarter bit trended? you like has trend mentioned been – it broader X% over drivers was. XXXX a beyond are you’ve a there has little talk And seems digital client the that transformation you it it experiencing? this believe

Ted Fernandez

put holidays, our in Year’s, and we lose check X% primarily New ask XX% Rob is Between US, approximately given quarter, me, checking. in then, that US. quarter, on the to correct X%. fact you First of third that from we when trend available of talk the guidance, and the to context some days when we just fourth quarter that And all, Thanksgiving I’ll in you’re are we the if revenues of go about on the the to double recall, the provided Rob

be closer he’ll stop number So if range, to to the think be me, I but it’s he’ll but wrong, confirm it’s going X% that is going to number X%, it. to X% in some

were the it into guidance our we we’re continued into fourth given over basically it So – experience when trend revenue able the that to carry loss sequential it days, quarter, mentioned, into we you what the quarter. – and available – look demand is momentum, that, us that the into that that third QX, that And you of those with looks XXXX. infers at to with experiencing that the

So, look, it’s – it’s been favorable.

that the engagement, commentary know changed to from just from delivery mid our talked client the of still, Ray? simply Since end you demand or from, have activity XXXX. if even we’ve strong it we’re but recovery engagement model about your way So and the now though – you We that of obviously they’re specifically very and or of the call client we beyond describe it’s virtual third quarter we’re offices, – favorable describing – high. XXXX recovery want recovery, a clients client of that through as of really question, believe a which to that answer as client it remains we’re Does not environment. ourselves engagement in most

Unidentified Participant

accelerate trend are any you. going helpful. that XXXX And into could definitely initiatives actually, there strategic Yeah, and that XXXX? Thank

Ted Fernandez

– – one in have one which to relationships very Well many the stages. expect to in working word ‘XX had the we expect use that the as has all that that been mentioned, contribute ones us, we and – we iPaaS we’ve the been hard, related I – I’ll but percolating, they’re

relationships start in we So materializing to that speak the expect XXXX. fact continue to to that’s why those we

think – commentary. it’s that rather think, one that – to which I new important was second I note, The

part that very cloud on had came ability to recall, if business feedback they the has they large take year. Their of wanted to Research with vendor with clients And related marketplace the support in, from them got feedback you that of research our to or in one evaluate corporate a which Advisory technology companies, initiatives. latter was research we that, support relationship very historically. Our result the to enterprise and really significant we provide of is and the as focused a related been significant. And infrastructure significant was, with initiatives believe and client, our help client the competencies which

my say you So, see throughout series could that launch very hiring XXXX, individuals. those And mentioned are I in make in two. we which of believe – are us to you’ll vendor have see would an space I a a intelligence us as significant investment we new and comments. make started very in will be programs

think add is have Our with I new. third fact to relationship may of Anaplan, you seen be the a that one in we announcement cloud our that the implementation continue some partners, release could

side, strategic evaluating some the couple on on also side. others, a enablement the some implementation We’re

sides of So two it, got – just our think business. about we two

that’s all potential. first ones and are well we new time growth over time, – we quarters, these I we one them is a few these think the last And So, script which and mentioned drivers. the mentioned our I the vendor all for but – what important this haven’t intelligence and hired on activities that’s mentioned meaningful why believe has

Unidentified Participant

you. thank Great, super That’s helpful.

Ted Fernandez

Ray. you, Thank

Unidentified Participant

then talk And got Unfortunately, about did from in. something hear a had inflation you’re the pricing? opportunities talent? with that the to current little in And did employing seeing call. to much dial you bit also strategies to what’s you and I pricing then offset dropped the environment? retain wage can acquire the you I Are call, any But, back – the both improved

Ted Fernandez

You realizing – well couple we put earlier, little last didn’t of Ray, think and XX did through you that And me months, mention that a had increases. pricing – we you those over the favorable. some pricing we’re hear was we a if

think think important employee the are ability retention we the the comments. and family we pre-COVID. headwinds I family the next an And ever by primary we becomes not work a on that that responsibilities travel Monday understand will travel for in talent some or were a of had for individuals more retain that imposed on to this and from ability Look, home, number have. had a of expands said On will environment, of headwinds competition people structural, or those as have some that we post-COVID aircraft to significant, out requirements you And to of the issue we home or we a But experienced attract. it’s back time, equally pretty what and – pre-COVID I an come it the facing normal that same than that were and on turnover were our cases, that Thursday majority knows that the who requirements we pre-COVID. significant, large where on period business people change at a this a come reason our some our start the get were nearly in Friday. are longer would know becomes

attend manner. Same serve to making – us can is, those that not What that resource that the And people we mentioned that number individual, that think niche to, the clients, to are spending, opportunity way come the will I them I arrangements, people on getting clients. client and clients a for we the deploy when work. reasons. the well to actually We learned reimbursable and increased how – site. come an requirements. as who to deploy best may flights or a the number is well. to talent increase accrue optimal the We’ve – One, But means combination tried be meeting globally. flexible from globally our have as we of to attract of family can attract traveled, serve have significant of some of a their our but want expenses over were also virtually, one, primarily to have I last Again, be to do effective find those of getting very the as of number in provides those For pay office that things will offshore and come one, utilize nearshore very we’ve they on that our want much to that responsive had our eight for people combination their and the to to personal benefits of they pool think meetings through meeting the resources, with clients think had may time not people will that and efficient more or favorable.

outstanding we ability with you’re environment fight great But an think client. great we flexibility, big, not a you’re where of playing for work we’re role the to to talent. provide clients, work lost, meaningful people. with too a and So, team expect on we And great

don’t And talent to us environment to know allow will will think favorably know able all of both other, immediately, You to more people question you are so reach have. they success, some and it’s be me so We any as can because they things that and if correct, know back accrue good. us. retain leaders terms favorable virtually was work – provide – and or we they far, each the those on that demands in absolutely it pre-COVID. know our – personally, and with that other than well to talent ability and they of we’re deal and as critical the hope cost a flexible but attract to We hear

Unidentified Participant

with over interests pretty from I strong question, there And the XX IP-as-a-Service contribution developments that potential you. respect one maybe any if offering or IP-as-a-Service? months. you can the past can. any thank to seen then developments recent anticipated has Are share Great, more

Ted Fernandez

and new under the quarter, that Well, had cloud that we’re clients during – that IP-as-a-Service we’ve – third couple new the that are I’m we inquiries didn’t in, those just increased any the first coming our or we in per but remember, But a infrastructure, recent month I let’s but say, contribution and was throughout ideas going year third have you having been new, across XXXX. the in quarter activity have to so the quarter. clients when quarter. per those X the say to let’s say, believe impacted have from that serve at quarter, in this call I’d came said that on we we results significant X since We as know will that quarter, no, you going revenue know have the relationships last we quarter, that we working look to just over say with per expand infrastructure

Unidentified Participant

so thank it. Great, you much. I appreciate

Ted Fernandez

Thank you, Ray.

Operator

There turn to are like the over Fernandez. call the no now back Mr. to would in questions queue. further I

Ted Fernandez

you, Thank operator.

Thank our and you congratulate catching – night. an we everyone our fourth call quarter. quarter outstanding up on first associates and good thank Let look on earnings with to report for participating XXXX we forward me again everyone first, again and when the

Operator

today’s conference. for Thank your concludes participation. you That

time. You may this at disconnect

The Hackett Group, Inc. (HCKT) 23 Feb 222021 Q4 Earnings call transcript