HCKT - Earnings call transcript Q2 2022

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Operator

Welcome to the Hackett Group Second 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

Thank joining us operator. Good Second afternoon, for you thank and to results. everyone, Quarter you, discuss Group Hackett

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

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

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

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

Ted Fernandez

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

the quarter. review then guidance. results, I normally to do, also flow, operating provide will will open comments the I we cash our on some it As to detailed with back call turn our Rob over quarterly and overview

exclude when last we with $XX.X year, demand on we second total our our per continued before it software sales, guidance will after comments, experienced for all year-over-year up basis afternoon, the of strategy-related which million million XXXX. through up reported earnings the last and earnings we strong market strongly and and our review reimbursement we then highlighted a into of to our year. share call this adjusted of Consistent above Q&A. momentum will nonrecurring revenues Correspondingly, open of you SAP quarter $XX.X and services of $X.XX, the We on quarterly revenues second-quarter which

self-service S&BT efforts. as results XX.X% software offering. also resulted our advisory our and expansion and market-leading Our and companies as margin value basis beyond by significant that by bolster points. reach also This our and a from Of accelerated performance long-term value June, IP a with in profitability. growth year several our basis, relationships IP the Transformation Digital special of support and capture, we multimillion selling global mix a our services discussions Leap large to our Platforms. pilot benchmarking, our a industry-served noting It and higher-margin development our by expansion margin of have highlights and actively many we engaged our which volumes. reach research was is serve we year-over-year area. we IPaaS demonstrates growth over revenue utilizing This in ramp consulting continue Group, with relationship our contract of value are data many dollar Quantum growth realization strong to ability of were also XXX one driven It throughout reasons in capabilities. our the and We believe business this will a contract worth as All case service contracts investments ways are increasing their to revenue The ways. our with case partner SBT the critical segments and IP, It's and the data while. global why and in balance service very realization on our market-leading up expands for of we we our quite that a working note, targeted finalized have our until benefit efficiently three been in year which be well to components agreement revenue on transformative the valuable driven

the complementary intelligence our and desire our partners IP growth, our The group, IPS is impacted a offering. excluding They the a year-over-year permission. growth comp research and partially EEA EBITDA software in that historically programs Group be was to by has the services. basis. to strong high-performing Our tougher are forecasted in the transaction. was grew in service to our which transformation results The downstream The the we in leverage also EEA rate sale offset revenue built highly quarter, and group of IP down and our license SAP opportunities by X.X% offerings our platforms pipeline and SBT brand to to QX result digital on

year-over-year we its resume to Before it off expect thereafter. QX level growth and in

adjusting SBT software Our large summary, leverage and international business and market is QX with sales based the as our model well group, advisory to which to In as was the down engagements, higher-margin in efficiencies delivery conditions. be consistent in virtual expected performance. Difficulty] of favorably [Technical our increasing our the impacting European are up research IP quarter benchmarking along from

our allow of clear to It higher providers for digital and targets expect and Platform, These the Hackett platforms development enterprise. We or continue, benchmarking growth platform of growth with us starting that [Indiscernible] IP to across of end our allowing to off. is pay digest to are new global the we Digital platforms, our our profitability Transformation offerings should develop include proprietary investments perform are software accelerated the the DTP, services our long-term [Indiscernible] which relationships to made and year. fully us that the which at

side, from our ability to operations generate cash has increase us our sheet flow balance allowed to the buyback our strong On in program. dividend

details stock last with current back while to buy cash invest conditions flow results, calls plan comments. and strategy operating balance that to aggressive fund that comment more on Rob? few and to ask to With on our acquisitions on our We Rob's continuing have also credit in sheet additional make will continue outlook. business. expand following we I said, let Rob discussed the and in the be our and provide to me comments our market-related facility

Robert Ramirez

Thank you, Ted.

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

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

benchmarking includes IP North groups. services results Group the advisory Strategy and America research our offerings, our transformation business Our programs of and service

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

press based results our are Please that be EEA Group Re passed Through in initial profitability. our and in discussions before filed are of of this from primarily the International non-GAAP Relations clients useful that the information GAAP we'll financial today, our the includes note to our provides primarily our release additional today through will measures, investors. project, reconciliations discussion. to call our travel, reconciliations company's Investor we expenses no earlier will measures associate we believe have in impact call included resources and expenses S&BT and to page to We website. certain Our Europe. on also referencing revenues non-GAAP reimbursements the of post financial that to which our reference based

a sales quarter my the quarter year like second quarter GAAP I information comments transaction. We to Before results of with the $X.X today, software and nonrecurring everyone $X.XX remind I in without software the transaction. impact transaction move of results, basis the that share or to I'll from on provide per on a non-GAAP our highlighted and call the benefited million our during would prior sales second prior this year financial second diluted and

the prior XX% second quarter X% XXXX, the excluding For software to when the transaction. up up year million, total sales when revenues were $XX.X year of prior and compared

when before our see and for X% the throughout services quarter. up of XX% as reimbursements we transaction. end prior prior high demand million, range Our the to revenues year to to guidance increased is year compared sales the above our when up This $XX.X strong software excluding continue the revenue

was compared to when to quarter the ratio increased expense revenues second reimbursable to pre-COVID X.X% transition (ph) on to do return experienced expect prior since chronic We've XXXX this compared as not X.X% and reimbursables year. X.X% month-over levels. to before model, The the we prior quarter the travel but our permitted in

year Revenues quarter implementation reimbursements EPM, before increase when Our U.S. large Oracle strong International The engagements of Group for our operations, both offset on large X% quarter continued and year, since several software represented which up application-managed before excluding investments continues quarter same XX% reimbursements before decrease second consists by the the which year-over-year XXXX nonrecurring the of were performance improvement in company on which the when increase Revenues Company XXXX. revenues when prior of XXXX. represents expenses our increase second software transaction. from of compared off X,XXX the consultant the our $XX.X period partially expense, exclude to compensation of service was of an Revenues year of as impact of group when for of second headcount This multiyear sales was compared compared transaction million revenues at of XXXX adjusted was same compared the pipeline mentioned, or transaction. quarter of compared for the XX.X% This total of rebuild year. transformation, XXXX. combination cash quarter the and quarter XX.X% excluding in reflecting the of basis before XXX prior investments the company the in when in year XX.X% gross the year-over-year XX.X% million of headcount second sales, reimbursements software of to sales XX% sales when Group in million, $X.X SAP benchmarks, the the quarter X,XXX of Ted company a result the reimbursable and year-over-year XXXX prior The revenues the and is one reimbursements or compared company revenues XXXX. consultant reimbursements growth higher excluding adjusted million, of our year were XXXX sales contracts. prior consulting, revenues before in to the of the and of were an advisory, the transaction. and accounted of the revenues into of software in primarily decline before to total before or excluding IP-based by the the or year margin was cost before XX.X% a prior totaled million XX% before revenues recurring quarter international increase is offerings, This for results our and second of reimbursements excluding $XX.X and and Total in to of strong $XX.X reimbursements coming year, XX.X% SG&A a the activities second XX% revenues, excluding prior total XX% total when million as when group transaction. our year-over-year utilization are company and XX.X% year-over-year is EEA non include margin now before prior nonrecurring driven up quarter was year Adjusted $XX.X of This on subscription-based to our period our sales our of company the and as year to engagements. of end the the S&BT, offerings. of basis. or before prior $XX.X offerings, The stock software were as in Total the was ERP at before million, a Total to Solutions sales quarter X% of when the for of of quarter SAP software over of company revenues or IP-as-a-service, points. X,XXX $XX.X X% prior revenues XX.X% Approximately second revenue compared the X.X% reimbursements completion reimbursements reimbursements second S&BT growth the in reimbursement research end the of XXXX. of fiscal but in X.X% impact the the our compared continued decrease transaction. the XX% before re XXXX increased of previous which second contractors. to second gross prior

is quarter second our prior XX.X% increase absolute The the research year-over-year product $XX.X investments million year. investment as of software due advisory in the in million current business to second SG&A of of in of increased transaction, to before and impact sales the EBITDA dollar Excluding sales year prior XX.X% the in the prior revenues primarily year performing or reversions. in development $XX.X the or XX.X% the quarter or marketing $XX million and Adjusted was costs compared of revenues before year. revenue to

guidance second net which sales second was per net quarter Excluding income software second for million prior range. quarter for above for adjusted high transaction, $XX.X Adjusted share earnings million of $X.XX, net is XXXX XX.X% XXXX the share quarter of of the per common diluted prior of of year reimbursements. second and XXXX. $X.XX year the totaled our the end $XX.X or income before common for EBITDA revenues both the GAAP diluted income was quarter of the

year of year-over-year sales the prior represents this XX%. Excluding increase transaction, software a

$XX.X This income net (ph) was decided We've XX.X% by effective effective the for was income quarter but utilized negatively first effective quarter adjusted adjusted guidance. second favorably was income adjusted $X.X currency by a was compared sales of foreign due utilization tax adjusted by to of of or to mentioned. tax move per at rate of the of the tax cash rate reported GAAP net purposes, to for income rate to prior XX% tax Adjusted impacted, liabilities. to our as non-cash partially of due the net quarter the increased the the quarter earnings, in end effective the the which reported approximately to income $X.XX primarily have million we and of quarter. diluted share The company's million net by impacted accrued to for the (ph) operating was net increases payable was in and in that year provided impacted XXXX common GAAP adjusted due $X.XX XXXX by million, a adjusted a the of the income tax discussed, quarter, for utilized Net rate decreases for in on on at first the second would driven and and prepaid the movements $X.XX. already GAAP as million balances to second by Our in as compares $X.XX quarter the XX.X% an GAAP $XX.X offset included liabilities, quarter activities the software expenses quarter end share cash second already favorably decreases income an income accounts by for compared $XX.X prior of year. were basis activity, $XX.X assets, in and previous in adjusted contract per the net transaction

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

X% quarter earnings million. on Directors The quarter discuss effective net up the quarter At of third be expect dividend the authorization Our rate EEA a expect on sequential On and international available trends, in of Board as income before million guidance XXXX, for per third at third to rebuild of shareholders XXXX. reimbursements large meaningfully that to I'll of for on was Europe we the remaining to it October tax basis, GAAP recent and range common time-off which rate for impact company's diluted per $XX.X adjusted to increase $XX.X share additional more backlog of moving impact September the be quarter share XX, the outlook effective third approximately days The summer for meeting, XXXX estimate of S&BT a to assumes of adjusted quarter, $X.XX, quarter to a GAAP of to seasonal the $X.XX third even the in continues of on repurchase typical of the and quarter by stock paid of vacation its X, and record $X.X revenue and basis. now the U.S. in unfavorably with be U.S. our the to declared approximately consistent XX%. transition end to in the most $X.XX down company holiday sequential in $XX.X the We the to we third (ph). the total in of to estimates be be million. tax of is XXXX engagements. impact the several range an due

We expect adjusted gross reimbursements before margin on XX%. to approximately XX% be to revenues

approximately third to and million. the SG&A adjusted expect be We for quarter interest expense $XX

We third coming in activity, and quarter up At this basis. approximately of on to XX%.We to buyback impact like sequential point, market to the outlook turn of EBITDA for Ted strategic expect rises back to expect the revenues adjusted to share our a months. review XX% on to priorities balances, before cash range it over I'd be excluding be

Ted Fernandez

you, Rob. Thank

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

created I've four services. As quarters, This innovation that in fundamentally compete pace, mining to and organizations order although forcing six an initiatives. it way digital transformation the work awareness deliver automation, competitive. transformation activities applications, and times Digital flow unprecedented digital to their remain pandemic disruption, capabilities in influencing heightened dramatically for the change demand redefining last infrastructure, to analytics accelerated created means enterprise also is adopt and that businesses and accelerated process are all demand at the many cloud mentioned and these

also attract to competition embrace with be candidates. second We a engaged now unlike transformation engagements, we driving associates model increased of a the The economic by the competitive, in which path we broader to remain our that our in our delivery attract great to the delivery capabilities. and of which This transformation to experienced continued to digital this results requirements allow We we very flexibility believe term, perform clearly by supply services requires dedicated transformation clients sales Long our model, we resources inflationary realize we space. high-margin transformation challenges or should because retain for are believe and a geopolitical productivity on highly deploying strong marketing from service created concerns is our are requirement associates to will of responsibilities. to a normal on technology-enabled as client to may our recognize retention a to also activity for recurring and us recruiting their that provides base seen our chain struggled demand and in pool client from emerging fiscal organizations time, short-term work improvement the will digital broad address critical have deceleration Strategically, the resulting our initiatives global it we've able of with to never believe be and digital increased retain help need in and talent Organizations as historical array hope the quarter. next focus us increasing demanding accelerating into remote our talent long remote personal sales investment to area. and industry. from IP-related our travel result

the software help We providers and new launch a started us services selected market intelligence of have suite to highlight programs that of also will across unique categories. capabilities effect

in number Our accelerate of new to and launched goal or programs further by XXXX. programs the launch three year-end four is

our add to end. to these they class expect approximately results, margin increased year in annualized To by research, recurring absorbing clients this believe current contract market high increase XX% potential revenue. we from high-margin, have recurring point, by are we great but high We our intelligent values costs that

programs seen our services. current We increasing to have also consulting from revenues downstream

downstream our With like consulting higher research benchmark services. benchmarking are margin, and advisory only the we're out consulting but put offerings, clients. our organizations coming who our IP, and our are of to services not seeing from from great over utilize services advisory So pass also research on research, more simply XX% rely they activity and and recurring

sophisticate manner. Global IP beyond We a our are reach us will also allow new in will that current XXXX us significantly exploring focus channels our that strategic to partnerships through efficient very to allow

to expect year. to in end results launch which these new of relationships, prior the We high-margin revenue first of the the recurring

to allow will Leap, information solution, track client accelerate also loan our the through with assessments, leverage benchmarking also redefine in benefit the less We transformation these of case us decisions IP compelling along transformation digital Quantum significantly effort. continue software-as-a-service our create and to software to enhancements It leadership platforms respective platform, their digital allows with configuration process life initiatives our clients to more benchmark our deliver global also effort.

market. believe there no the IP-led in As comparable repeatedly, are I've we said that platforms

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

example we and growth, and the offers we the our perfect strategically growth. look Lastly, acquisitions alliances raised capability example continue XXXX that and a The those and believe for our grow scale, our that though I to base even business, around leverage add we is IP Global pursuits. to have accelerate syndicating client research of beyond can which

my our let congratulating on and always, for people, tireless Those always matter comments. to them performance on me by our our their may challenges close our focused conclude we them and no clients efforts, highly encounter. stay by and As what urge thanking associates

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

Operator

question Instructions] Sutton George [Operator Our first with from Craig Hallum. you. Thank is

You ahead. may go

George Sutton

wanted through that Can sale. Rob Can there falling software finishing big Thank QX, you of about change very what's SAP because year suggested you. large Traditionally, QX. I seasonally walk could. dynamic? a a we had some unusual last talk were necessarily bit business if job you little to pieces obviously, not of up. on Nice I out? QX, about that from talk the just was And we're one-time think

Ted Fernandez

transition But SAP Oracle with as what's and practices. have scenarios. both Yeah, of George fewer Rob (ph), mentioned, separately. I'll as we our available to days not there QX. one, that's QX were the But a couple impacting move of X% you really speak from

activity you it's or over a started the see QX probably QX, light has company practice of and say adapt just they coming impact and our off. it be QX, QX, been took in to latter by the five of will did on slightly as to in all some different years. group. know, had We SAP fruition to believe with group expect favorably outstanding lot working highest had, the four it and performing to the QX tear, we very, to But would an a a seem QX. Our a I time that we speak part is on and also we were last to of have slowdown that QX, some why the fact deals that that we started leveling that All simply of those attention very which from significant engagement, and time that's

overall able in to SBT. level a we EEA don't QX We there it, a of absorbed the activity these we're success QX But groups both offset up distraction performance I that little off and extent, grow it but bit to any some basis of a and as on again, George, is of into having to Obviously, them strong, it thereafter. comp. both we think in QX happened. of want our tougher because the great performance expect from was into year-over-year very impacts be we're to then go see that we

George Sutton

Sure.

be you give they'll that sense how the a pilot with I to So this of you some same and deal, just customer Can had using us previously? your potentially Is details get a talk on wanted IPaaS IP? the that. about

Ted Fernandez

of The answer a did is, somewhat we have pilot.

the of credibility influenced not permission benefit taking call support with nearing And organization licensed lengthy, of and commercially Hackett kind and and on only information and it what be information a industries the led our take that, them validate have strength completion leave business to really clients. the period, clearly our they a of basis. were the of capabilities, the data, of to market. to the versions, it, that -- It's We a really use you of across negotiations our pilot over use, they areas of the significant engagement. with both their allowed across were those want ended, as to two-year brand but to launching them I'll moving they initial this we and within to preventing quantum cases certain clients of were It's wanted to call able platforms to to static the which capabilities very platforms wanted able specifically what many on self-service That to our we have. DTP be kind capabilities allow to but to the if them

validate believe the of they includes with once and believe very they've in As Leap to in be our also number they research programs done exactly are advisers our I executive had being another they're that benefit includes create, their proposition we base. then to also we monitor solutioning our come access the dealt the capability utilization value leveraging DTP we we the value all the able and very tracking it, this two, with wanted the have also one. needs our and they any able improving data stay in and But that previously the that platform. so to Quantum and It -- platform or that they're our into all of to that be It to they place of value for global utilizing work products within kind DTP capabilities that capabilities call project Number expanded load issues monitor improvement unique and on what to client what of the the capabilities that clients realization clients, inside at it they coverage initiatives to of demand have. industry how, of said, serve presented to across leveraging is branded want day, based propositions advisory be use our they the to large load performance clients. we their very prioritize can I'll to allows their that's end of to is call that our identified it capability information case our which -- realize, can assessments actually current

So labeled I very That's transformative. very significant. expensive, it why

George Sutton

you. Got

to One you mentioned me, what channels. just picture of little that look who Can new of better the things might a someone work you looking that us syndicate with your like? give you're for IP could through

Ted Fernandez

Yes. on XXXX. approached it, scale pretty platform, a clients intelligence of market a current a We significant that its the we've a approached a -- firm emphasis to were companies on provides kind by has global Global with the which by beyond unique

us that that touch. be tells done, to IP us that we're the to number to have allow same from our capabilities data we we their we what But in identify an offered able to it. to really tried more, I'll our our that certain do a sharing. clients something it's to of license profitability to revenue There's capabilities something our ourselves something and which opportunity to our this simply with for achieve clearly a to across able hope So IP. do be now them value simply channels And market significant, scenario, limit where use were brands amount. we take to this we call needs through lot relationship to but of not it, those and more and two, still other very for And do that or in is channels work would augment we need to capabilities profit is can to relationship the

end launching our the that's So before successful let's plan. the in year, of see if we're that

George Sutton

Thanks, was That great. guys.

Ted Fernandez

George. Thanks,

Operator

Jeff Martin Instructions] ROTH [Operator next question Our Capital you. with is Partners. Thank from

You may go ahead.

Jeffrey Martin

XXXX growth next long-term you're offering profit profit -- the your more you us profile I on traction maybe, to getting could outlook help was get with could broadly some implications with growth IP-as-a-Service on Ted, hoping for and the be? perspective relative And what year? the for

Ted Fernandez

Well, fully would in to They that can while, this, contract look, I capabilities of been have. of that conversations one, not, talking having of increased lesser they're credibility the the we'll just don't look, built to companies it. be and them they there have we're But tell transactions, vary capability support know. launched never whether we believe the I or the size. these of to -- close for of a kind unnecessarily scale one you complex we just these have -- our will we've that all are uniqueness we the ever But some we similar

the it's capabilities continue success. -- that of it intended and of we've and used not is results it, which It limited results platform. multiyear important multi-year support, It call in on IP contract that in some made contracts with the capabilities hope So investments comes on, the we recurring, have platform, -- really I I'll really licensing to be you're clearly high-margin only since to it's in our the

We're my end I to those expect to We've and entire of had year. I like -- clearly saying I year-end. specific and the performance say of nicely. very can't call transactions call. increased so as or provide believe us, say our the same these that it the Those they the programs, So that said any software the moment. comment that launch are costs programs guidance services -- and that through we which or discounts each relate expand and margin group I we four we sales do intend gross capability meaningful intelligence at mean, to which guys the all on on to on the But it opportunity X.X. of is absorbing for of continue our by market or that would three are significant one of launch, also and call we'll had those simply programs mentioned last script, with one it, intelligence we our programs, Active exists to we I the

of unique programs demand We're in the opportunity. market. and the I others realization, just and we IP-as-a-Service fact a have great one marketplace capabilities it IP and of is The capability tracking we out the measurement, sales kind that seeing we're that those that the intelligence platform. hack our that the We acceleration, that permission else value for think most like of database have. know trying market take anyone the is can brand very effectively because is the to to matter believe figure to provide don't to the

targeted. where from try and share the the already IP entire we contextualized can to realize products designed that profits now benefits, most and that revenues will to capability be drive then have opportunities these great that provide we've further And obviously, able margin syndicate for the to just us we're appear that these else, capabilities research us properly you've launch expand, growth So that to through opportunity. us the a our those gross exploring then ways logical somewhere gives sales and to continue seen we as then others in into the XXXX both for but ideas we

a So we is that we're deal I obviously, meaningful, to to hope our the doing, research service, specific go. and IPaaS from of last is opportunities as-a other but benchmarking consulting, to have IP, simply say along other direction or with want point I we the every nobody I both come things the year, don't technology saw our answer becomes -- transformation that that of made, missed advisory XX% a client. which non-IP and

if pursuing hope and that So gets clients that consulting of and grow to that been also to we is, years then ahead. last we only side IP the the X.X we the serve that halo should structural that our the combination down the that's premise not business, for be experiencing the but we that that the we've programs part to services, we're that as look effect should the

Jeffrey Martin

congratulations on there. Great. win multiyear That's And the helpful.

far availability you so rapidly take talent how But that had is and balancing versus demand little how of client was like very on retention year? now. going efforts are SBT It and I availability question other retention may in of QX. right the or looks this employee capabilities consultants. breather growing a The a bit

Ted Fernandez

experienced news. now can it, The to, higher-than-normal we quarters. turnover we Look, six let's that That's -- bad that believe have I'll is the for, call used we've we that turnover news good are that have. that I'm gap trying of talent some it, many had, enhance we've in to like we'd all. that to the areas There some still we're loss not areas capability call thinking space. said, people that our the very requiring in the just and as that pursue, new specifically With from And the Thursday in associates that that's especially the I'll them, EEA call normal allowing offshore doing to through us having to it's a look, broader travel, our it's we're not do we're leverage fact allowed helped Monday well. margins. increase EEA significantly, to pool, great us success

I lot managed even bring us allowing I we that allowed as available to demanding our think us way leverage of a I us it's not talent they pre-COVID. the to have and we've offshore, to not though to So higher, more it do it's organization believe capabilities it's believe it's travel -- get new well. used more the may is all that we're since people been to

Jeffrey Martin

Great. Ted. Thank you,

Operator

question next Barrington is Colicchio from with The you. Research. Thank Vincent

You go ahead. may

Vincent Colicchio

of signs in that the cycles in as any in such Ted, changes Yes. pricing, of EEA things business, nature? economic strength sales or headwinds less

Ted Fernandez

Well, early. those simply proposal too I that have activity remains pushes were of anything commented really then strong. we that SAP The had with of been happening that the to you that correlate groups was kind really would impact that it can't

been that. different. to And I issues it So then correlate Oracle can't the have

rebuild off need year of So with call and given SAP look, that that the activity and pipeline, of, we our coming strong. momentum had is start Oracle. end some I'll for it, we of to the deals QX large in close just And

slowing economy. recession. Obviously, I to directly that's a directly required I'll that that to, related to it, call nothing the can So is point of the expected avoid

Vincent Colicchio

if it, acquisitions? connection And I priorities you are can is what us, remind my your in missed quite poor, I apologize

Ted Fernandez

changed in have months area, that that year spent than I priorities a emphasis the area on the obviously, the this of in did I've XXXX. in somewhat lot given six IP-related more first Well, the time

right in we has where areas So us. EEA, would But I market circumstances clearly would say to was and the we -- there that the in would are emphasis require SBT-focused. take right presented the been which in

Vincent Colicchio

And in again, your connection. to close I of mention Did pipeline my you landing? of number deals apologize of you're IP for terms

Ted Fernandez

Yes.

landing, year. the returned now clearly are some think discussions close a that that engaged of I in say that providers been having left make, who discussions want to us the with and I point while, for with have which larger have to to been I earlier they're have don't throughout talking more with we some us meaningful wanted but some

like some opportunities. we to those [Indiscernible], get So of

So I'm probably just making opportunities was is IPaaS the to pipeline that the make. I'm strong. I that trying point for the was making. That's point that

Vincent Colicchio

Is the sounds in it seeing that than stronger like right? And you're past. it's been

Ted Fernandez

company. Stronger is -- emphasize I'm in scale what trying to the of type the

into it. will would the I companies obviously -- in strong deals. characterize way with that So enter larger that's Maybe

Vincent Colicchio

move And are timing that's that think Okay. do or to competitive compelling you direction? them just pressures in

Ted Fernandez

someone pressure competitive has not sure not it's clients. to we're that offering Well, capabilities I'm because the these

or what in leverage currently you scratch build have That's from we're or So up what it's as place. seeing the start leverage or alternatives.

take So they just time.

affecting somebody and goes market. to You're getting involved the way

significant I hate complex. I So speak me to since embarrassed which so took we long one just the especially the was it time, that and signed, was sign to

Vincent Colicchio

you. Thank Okay.

Operator

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

Ted Fernandez

our the second-quarter earnings Thank for to third like and updating report -- everyone everyone you. when again in thank participating I'd we to quarter. call look forward updating

Operator

conclude Thank participating. today's for you. you does That conference. Thank all

this disconnect time. at may You

The Hackett Group, Inc. (HCKT) 13 Aug 222022 Q2 Earnings call transcript