HURN - Earnings call transcript Q2 2022 | Huron Consulting Group Inc.

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Operator

Good afternoon, ladies and gentlemen. And welcome to Huron Consulting Group's webcast to discuss the financial results for the Second Quarter 2022. [Operator Instructions] As a reminder, this conference call is being recorded.

Before we begin, I would like to point all of you to the disclosure at the end of the company's news release for information about any forward-looking statements that may be made or discussed on this call. The news release is posted on Huron's website. along of filings subjects factors this webcast. information for the discussed that afternoon's disclosure a that review with with the SEC in Please may impact measures. discussing more The one will be non-GAAP company financial or for Please look at most including the earnings release comparable SEC, GAAP required the to all Huron's by and disclosures reconciliations of on the website the numbers. of turn Jim Roth, And to Huron Group. now over Consulting I the would call like Executive Officer to Chief Mr. Roth, please go ahead.

Jim Roth

Quarter Hussey, and XXXX to are quarter, welcome afternoon, growth In strong Second three segments, the experience me Chief Consulting Good demand year the to Call. Huron quarterly today revenue operating Earnings over prior Group's enabling John Financial record and With Officer; our second our revenues. to Kelly, us continue XX% quarter across and we Mark President. achieve

into Our reflecting grew environment, analytics and quarter, the across uncertainties the ongoing segments I’ll technology us prior full second cross for leading in strong of commercial the Digital year narrow the and additional raise performance. year and to revenue XX% demand our operating of some insights share education and anticipate continued healthcare, Despite quarter earnings year offering our now for the guidance. remainder capability over all our our industries. we demand macro

for across technology revenues of offerings increase clients the second the ongoing system was revenues over prior reflective the digital analytics in driven managed The the industry. cycle XX% digital services the enhanced for year And quarter, in our by quarter. provider health grew health capabilities care During offerings. demand quarter and healthcare demand year segment over revenues and XX% prior strong for revenue grew our

these help academic costs. largely Act financing factors What incurred dramatically remains lower health higher many near supply expected While funding are significant now that higher margins issues, particularly significantly future. pandemic, are recently, not for medical address hospitals capital losses many systems the gone. federal support that labor and centers is to Cares the chain and received the and in more are Collectively, during debt costs, ongoing dissipate contributing to to

automation. to and sources optimize our including of With and to well a to future offerings, solutions to financial strategic, continue hospital their them digital array operational revenue complex through healthcare broad new of to clients our environment. technology achieve of offset trying seek opportunities we positioned the While operations are and health provide spiraling in more help operational, sustainable and this costs, use system

offerings, XXXX, the segment, was revenues education strong the education segment out by the strong for numerous increase demand in quarterly growing based I broad of achieved education by XX% continued driven across business, revenues There primary of all quarter. our highlighted quarter the of the our Turning prior to growth drivers. capabilities. quarter record few second reasons second are digital mention will a education over our in the year The in XX% growth of

of delays our student, an it's a cloud reflective enhancements demand More business. The in industry a its in transformation, including there's digital of as indicator broadly, that is core early much demand the starting pandemic. implementations whole a a innings First, reasons new digital ERP from based education to is own administrative CRM the needed systems. and for solutions, increase stemming been significant in partly particularly

challenges and portfolios clinical business reflecting our clients’ of federally research complicated very been managing funded research. our Second, has strong,

industry when to in increasingly models The of in business, years, a Third, strategy this of risk. are operating we the at have talent traditional array we've a wider point us operations our part in in and made of time enabled investments portfolio recent at to our services expanded education offerings. university offer

our XXXX of relationships, investments Whiteboard transaction. goals in in To our of we fourth deepen our strategic of people. across quarter support in to the clients as make that business, set this we for part forth increase achieving our investments and the students us Finally, our students education the segment, to education solutions has continue higher enabled the industry strong number demand in

are resources, in support and We our to ERP demand the digital of capability accelerating backlog the hiring anticipated our for particularly offerings.

We leverage this strong industry with which with impacts to Development growth and expertise a achieve technical in combined have established our provides additional Program, segment. Training functional deep us when strong our goals

across partly segment, increase grew offerings Turning over XXXX, second quarter commercial quarter for segment were offerings, industries. strong Life decrease sold our the the demand our by the the X% decrease as with in quarter well offerings demand in our commercial second Sciences digital year The driven in a of by to advisory revenues prior from commercial of as we digital associated in which revenues the quarter business, for in fourth revenues our XXXX. offset financial

utilities year our is in prior these to and second the offerings services, the strong entrants At an technology primarily for commercial the and facing Excluding over the And is a same industries. services increasing the period Demand where expertise in offerings provided of the of compared quarter market markets for energy business, advantage. services. XX% XX% as the the year demand fueling XXXX as competitive demand us grew in a demonstrating XXXX quarter commercial digital attributes industry deep further Life segment grew from These financial digital industry our with quarter. second evolve. analytics in commercial industries, transformation the has for coming digital our are related competitive across each strong markets Sciences segment new ago, commercial the

hiring will segment. in in are of demand continue growth and believe making training accelerated support to education, these increased key investments to resources we commercial We more further invest for we industries. in us So the this position in investments

for Finally, let turn the our to me year. outlook

$X.XX press we our annual increasing indicates billion to revenue billion. release our $X.XX As are narrowing and guidance to

and earnings per range adjusted and in a XX.X% XX% in our narrowing raising our also of of diluted EBITDA range of $X.XX a are adjusted guidance share to $X.XX. We revenues, to

our anticipated our across We are all services guidance segments. revenue for current to reflect raising and the earnings demand and

cognizant of the we While relationships backlog industries, for the amount be for encouraged And US to the core continue the underlying continued we economies, the and global taken strong will for of a and place of we believe that of the in throughout XXXX. that the in our relevant have key the our our growing we experience. reasons extent in has tremendous belief year. offerings Among growth our by demand are are remainder challenges is deep and that transformation pipeline

we they in focused who experts those to goals. desired a rely circumstances, achieve in have on sustainable on clients remain their And growth strategic tend Our commitment and to our this are -- In operating and revenue profitability. environment. may confidence delivering financial to them challenging improve and turn, help

ability objectives. businesses for half The vibrant opportunities. market to we results offerings our challenges digital face to operational achieve remains first and myriad industries demonstrate our anticipate and our our across as strategic, clients and demand financial Our continue

it I to a Before I'd few over turn John, comments. like make to

working the our role. In promoted Chief our Ronnie performance First, CEO led Dail growth operational for recently, we his consistent Officer look Most have across Huron. excited will and he forward business are the profitability. to to transition, Ronnie healthcare supporting largest be new Ronnie strategy into unit, Operating with We of while company, excellence improvement the improved our as we role. within ensuring responsible his in business execute role, revenue new achieving

to and to our we highly They the incredible we the Second, built achieved team. and in hard I business. pandemic. company of because first results look have of forward dedication I'm other the growing throughout our company clients, the and are of strong in work of each year tremendous with together, challenging have culture the of a talented proud half the have a fostered the the amount possible we the our most time to team extremely only the to demonstrated team

Now I'm financial for it to John John? discussion strength. turn more going a about to detailed over

John Kelly

everyone. you, Thank afternoon, good and Jim,

EBITDA, cash I EPS flow. such be EBITDA, that will adjusted note financial net discussing I begin, measures non-GAAP adjusted please free and Before income, as adjusted

and of financial XX-Q management management these have to information investors of measures, useful non-GAAP and page press they GAAP believes why Our Huron operating results. and measures relations the non-GAAP condition these on most why our regarding release, comparable provide along uses investor discussion a measures to reconciliations website with

results increased across quarter our the offerings digital was all all digital of demand in strong industries. within our same Now, the quarter by in over from XX.X% let starting me for XX% growth period the quarter. driven of three XXXX. of a financial in with for walk the segments Revenue The Revenues in up for same revenues XXXX the increase you quarter second key in the through the of XXXX. million, some $XXX.X quarter across $XXX.X second XXXX, were million capability operating

XX% was consulting continued of addition, strong managed income $XX.X the the $X.XX year. within education million, prior diluted per and services which same share our In offerings reflect grew the second share the quarter compared XXXX per of in in XXXX. quarter over period in second the revenues quarter or diluted in for or million, demand Net the in $X.XX to $XX.X XXXX, same segment,

rate XX% second XXXX of XX.X% compared quarter one tax was in the Our year effective ago. income to

XX.X% reflecting to nondeductible QX share taxes, per compared was investments of those share second the these of investment broader to non-GAAP XXXX. rate to Adjusted EBITDA million was net diluted of or or period related deferred $XX.X in the losses to tax tax market was impact Adjusted than the million, the in $X.XX or primarily during $XX.X to $XX.X for income or compensation QX less $X.XX quarter. statutory XXXX the Our due in our revenues, same effective fund losses The our million income XXXX $XX.X of second the share revenues. liability, to of state per per related the earnings including quarter compared XXXX used in $X.XX rate nondeductible tax during million was diluted XXXX favorable conditions expense expense XX.X% quarter. on QX

investments the Operating performance the reflecting in percentage the increase or compared record company XX% margin of in X.X% year from is cost our mix for XXXX, corresponding margins in QX continued of XXXX. quarter into for Revenues segment, was company quarter QX the in revenues reflects segment’s few Revenues growth margin drive XXXX. full that increase XX.X% increase operating our technology acquisition attributable further quarter revenue acquisition for XX% from during margins up of our in company for of of digital segments. our expect offerings, record million as XXXX, ERP of million growth the XXXX, revenues offerings quarter XXXX, total be education partially the growth second Whiteboard. of included of of same segment revenues The The in The by offerings, strong to strong from margin continued across XXXX The continued quarter XXXX. our of of the XXXX. XX%, income deliver in of to well up capability [Nvidia]. of Now healthcare and In for revenue quarter XXXX income segment during quarter headcount $XX.X We the the XXXX. increase reflects inorganic record digital care the cloud QX a the as in for offerings primarily in of of digital of to included our demand declining of for XX.X% generated full quarter million XXXX education of the sciences based was of decrease year the of revenues for compared our healthcare XXXX. $X.X to second second $XX.X of The the $XXX.X quarter revenue million. contributions XXXX in with the sequential primarily The we reflecting the XXXX quarter demand strength comments of industry XXXX. of The our to million for for XX.X% XX%. our be XXXX. digital managed our from demand a by a demand The quarter in now revenues growth of sciences margin $XXX,XXX Segment strong offset acquisition Revenues health business. including to demand XX% posted the offerings. revenues from X% reflects the life improved $X.X XXXX from the XX% healthcare total previous revenues expect Segment offerings, quarter. included services generated over commercial strong second offerings digital of cycle QX in $XX.X of during XX.X% for that the and range demand as segment outpaced our capability quarter in our for quarter or segment $X first education growth same of quarter from revenue Health. of during this health divestiture revenues the due generated $XX.X second life all still quarter quarter-over-quarter advisory our increased was million second demonstrated the for the to business the XX% of Perception the generated offerings. posted by million education to expect segment the make to in as financial well million to revenues our XXXX. the of electronic a of industry and $X.X training second I’ll in quarter-over-quarter for XX% industry the second of The The total of second continued We to operating posted each quarter second XX% The about our The million in is XX%. XXXX. range education second of up second in impact due XX.X% during for to quarter. decrease

operating to in to income XXXX, digital $XX.X same were now by the income XXXX, related the increased plan. million quarter in second to for related legal used offset due year XX% $X in in of the commercial commercial in for compared meeting of expenses a be offset full XXXX, of our XX% a XX%, on support Corporate allocating range mix the which level plan. during is in to in not the reflecting second XXXX, liability compensation and corporate fully to million Absent to plan The primarily compensation million, $X.X the the in plan, periods XX% in value XXXX, reflected for deferred reduction QX in QX compared margins markets which Conversely, on other same of salaries to as the compensation impact We the loss favorable to for leadership grew assets ago. to deferred $XX.X XX.X% decrease decrease in Our personnel to quarter, revenue segment expenses decrease increases quarter compared commercial the the related both was corresponding QX expense by that of second participants quarter increase our margin in deferred allocated the expenses expense the a and in quarter in fund of $X.X industry allocated period offerings partially corporate to segment million in technology related of fees. allocated is of expenses our of expect the XXXX. million with XXXX. of commercial corporate offerings. within a On our expenses year included an

and turning the in quarter came of the to Now XXXX, cash balance the flows. first for for second at to quarter of and compared the of sheet, quarter XXXX. XX XXXX days XX XX days second for DSO days

$XXX the large net days $XXX XXXX of with payment be of a with half million year. and We We debt revolving projects $XX back extending the as cash we on million. facility and of XX collect schedules several the borrowings to expect between DSO for million contractual for have on finished the credit remainder XX of of that quarter into

current as XXXX. also approximately XXX,XXX $XX of million authorization or $XX.X up million. under of XX shares for our $XXX June share repurchases available remained quarter of to repurchases million Second included

XXXX Our and in XXXX expenditures, the approximately adjusted we of million. leveraged to resulting developed quarter our ratio end $XX of QX capital flow adjusted senior in $X $XX free internally of X.Xx generated to of cash was operations million the defined software EBITDA inclusive in flow our of XXXX. in XX million as agreement invest bank June was second the EBITDA X.Xx from cash use of costs, at compared Cash

turn Finally, guidance XXXX. our to expectations let and for me

XXXX revenue Jim billion narrowing range to in significant primarily of year our of our noted, the reflects in full $X.XX As increase be we and to revenue guidance the momentum the across billion. core The raising $X.XX are and industries. in guidance our growth opportunities our strong business each

the non-GAAP adjusted to a full $X.XX be guidance narrowing XX% XX.X% our our In to range addition, to $X.XX. in per to year full EBITDA of guidance of and in share diluted are and we adjusted revenues, be raising earnings range of narrowing year

our of Operator? now Thanks everyone. tax rate to XX% effective we to call questions. to I'd to like open range year Finally, a the full be expect in up XX%.

Operator

first of Our Instructions] of Tobey Truist the comes [Operator question line Sommer from securities.

Tobey Sommer

growth. Recruiting, retention the terms to year-to-date trends compared half back have kind that on the the shapes headcount books? How we of and up do already of think in you

John Kelly

John. continue is backlog into headcount our can half think, we increase the expect the revenue getting from prepared back headcount I really the start, expectations I we're in also in continued that of year to we revenue and now. we're reflecting have see the this confident XXXX. going that perspective, Toby, Where based right for see a XXXX. growth, continued to to And we're on us then for growth pipeline

definitely a still tight But in all to it down it was labor from pandemic. it's in attrition, a where higher is the it from market. from team we calls, was not of So you really it come place said, rate like -- stabilized in about that than earlier still was XXXX. It's getting perspective. on and But kind in we've But of attrition asked said it's seen where the XXXX. prior that also periods kind really

Tobey Sommer

and question the do shifting --? projects among with improvement, Thanks, -- a preferences large your healthcare size what which are general. in then And more look you performance less the the side specifically or asking any is like format for in on they project contracts customers

John Kelly

few haven't we fee can the or of I jobs in from a on that I think size job stable perspective, over fixed of past mix start years. healthcare, shift relatively terms really seen improvement that, kind area performance in the between Tobey, contingent, size in the Hey, either been and material the that a of that's a

talked about of And of we the upper the the depending the digit size that on, project so double as even depending working on size in on client. be the single the of depending scope, system in the we're digit before, the size or on million for can the a millions project potential is range, a

Tobey Sommer

or Okay, the under? schools. on business, of that of of your either that schools for in the directly the sort or something education Is more into drives news just services, merging liberal industry and kind of symptom a demand stress small indirectly, I've that larger arts sort noticed really any that is

Jim Roth

Tobey, absolutely trend. Jim. this a is Hey, more. are identifying There The you're is trend

as think once I that when thought would pandemic the there hit. many think many not there's of us be nearly as I

I we of think question your some of also educational are, To the do. yes, some federal there funding though, answer with off industries. dropping is the directly,

time, case material it at vary. mergers involved But been amount. providing or appropriate service, a some for does have And our this it's the of of in We point whatever in not kind these may be. integrations, we're

interested perspective. get us, material been over really more type that's amounted a we real have a what scheme M&A any in smaller larger, for profit by asked we of -- in to it that's We revenue been but less the healthy one hasn't institution taking and from typically, and that typically things of played, asked has perhaps

Tobey Sommer

more and one digital and the offerings. on Okay, just one then

described technologies slightly and of have the longer headline of the there, Some the software sort motherships sales cycles. out firms

them have appetite is new of deployments reported change your Some for any new in point greenlighting engagements. among customer the -- could in set and

John Kelly

Tobey, Hey, John. it’s

was sales longer I that of the little that. some on up seeing the platforms, question think but bit based broke any reported You and having a cycles during of question, the before

we've say in where terms seen I in from here been little an bit and think that. perspective, factor has it a our not there of pipeline isolated cases our overall of But portfolio. I'd or seen a backlog, we've some big our

Jim Roth

Yes.

I has I the particularly also extent health the the less think to think the Tobey. pandemic. beginning some in strength would on are that freed I been side a through right sales But really education indicated, in have maybe I some it's now commercial things than cycles and to little in was say, I during asking, of and do think come business, as now, you're up because our that care, some different there that now hesitancy are digital

pandemic. things pick revenues some is the those You saw continue And to during last, that in beginning right come. what to some of you're we think I seeing the up for the trend now that in are strength again, expect quite that our of some to time

Tobey Sommer

hope Okay, have the a you I detailed John question numbers. in just

I had The other into little joined touched loss, a the I remarks. in bit little than a I could it loss other late. little bigger was that already bit you you color more a call the income anticipated, prepared apologize, give

John Kelly

that, that comp is total At plan. Tobey, just

that assets. we for deferred comp So a market employees is funded by our have plan

So things that. like think, stocks,

we about our market fund the $X $X down corporate the the quite we But of add, a the it's offsetting during by that plan assets have to we loss so million. zero by went quarter, then expenses to bit, P&L, net broader when the And million. reduced our a second macro use about it

net deductible is So loss tax it for assets on impact. is other us. tax the than the zero, The not

income. other we so quantified extra is that's expense, about you income incur is I that that that remarks And see my in but did what $X.XX. But tax some in

Operator

of from Blair comes and of Nicholas William next Company. Our the Andrew question line

Andrew Nicholas

growth would there, quarters afternoon. two particularly expecting want half a there on to the of plus in to it good lumpy out next obviously good really row from especially education mid-teens growth view? grow as first a a we gladly is your sustainability business make anything the comp. to this that look and first that year, question ask XX% ahead in difficult I Thanks and But forever. not can is call And

there like that pent-up Sounds delayed from projects was of a through first the in came demand half. bit

just So provide there. additional to you get color any looking can

Jim Roth

Andrew, this Jim. is

that But in many in was changing. the reasons I continue projects are based five of them going to kind a of actually don't years. we segment. many the are my are broad growth, I the think there first as a out roll the some all, quarter we're has across next very of and first indicated looking and And whole quarter at, larger second frankly, comments, we we to over I expect the And think four continue the for of see rest up And to through be, those XXXX, really or feel about larger right into underlying really think the freeing those I beginning projects We've of going I the in been good the went three, that also kick certainly of to now. of for ERP year. growth. to

that we education to be think to but coming be the strong it's they'll last at quite fill time come. services continue the the years. some that going not I be to It's So certainly two percentages demand to quarters, for in quite expect going for we pretty in strong

Andrew Nicholas

of there. But answered Thank what and you Is XXXX. of of saw the this That's each you sub half broad that terms I there we practice? partially question first within the the is you. strength it segments even for growing in and in being Or the guess based various terms helpful. seeing the across not pipeline right terms might particular numbers? be yet of in it same of And then more pockets in are

Jim Roth

relatively operations, digital to in The XXXX across and I think a that portfolio in exception a strategy our is pick mix start at I think subdued our really one all going to But think great performance think bigger to been going look our begin practice look board one the that's if or the that's expect way and And research, really been I bit the has that thing we XXXX. the to that doing I studio in beyond well. well. as to up is I continue. they're similar little despite

Operator

next the question comes from Our of Benchmark. Bill line Sutherland

Bill Sutherland

who's Hey, of on front, someone from I candidate flow are -- that there's you seeing their where of candidates uncertainty, Can hiring plans. if you about some wondering Four business are thanks. given was of score? right you the discussions seeing your now, some bit on the a the any Big little as that

Mark Hussey

Hey, It’s no a front. of a some about But on say but seen we've there. that there's and an Bill. today. as potential always have nothing discussions There's the that low recent is we something on, keep Mark. result the been happened anticipate change that I of material eye been would changes Certainly a perhaps to

Bill Sutherland

segment in scenario? economy. we think about Okay. commercial it How that a The recession, the in if begins to on take your little bit impact more should

Jim Roth

off. may I drop anything in weaknesses point commercial Yes, a segment at off don't our advisory at seen way year, that on think are be last and But give stage, and that business this time. could major in drop we're the this in mean, that know at point our we've at financial be I a in us energy utilities. been not so any the services seeing think any that in the this time I think don't And concern least segment, seen there forming. has I called that. market, we've focused We Bill, sensitive recession in

Mark Hussey

based sector is, on add those going economy. sectors particular little are specific, how by the bit it's to a just I broader being affected Bill,

that a we'll to little bit -- one to I we And mix So are there's But financial energy and said. watch. utilities that we we where seen one really for haven't of Jim think actually be And has as well us. been services more impact. anything performing will continue going had

John Kelly

inquiry. would one pipeline, our as now is the this of the been seeing year, scenario, well. that business increased add, subdued more In what business of I our last what areas actually of we're we're has year though, maybe And increased and distress seeing in early part

they've might comment, clients XXXX. labor many be they especially might make during a we're digital that something actually a seeing as are, that we what doing some of of And go in investments And perspective, part cloud down to half up started bit, what one why automate are already first saw possible, to based other our as So as of in market tight quite pretty this those lot the business in a a big processes of is they're that trying market. from technology.

the this automate a of there's indications cloud. so in get trying lot market, the premium And to is a on we our that clients trying see from to to

And still inbound related good trend commercial technology, our related so demand commercial good or seeing to markets the that inquiries our rather in technology to we're line.

Bill Sutherland

how the bankruptcy remind is. big John, me business turnaround

John Kelly

it? big how say, You is

Bill Sutherland

Yes. revenues. X% our consolidated of about It's

Bill Sutherland

Okay. revenue for is for that level the guidance, And I out the revenue John, the of you, the the me, levels just from get second to segments? end as year then, I was last the top quarter guidance.

So any there midpoint maybe provide implies? what is color far the as as can you

John Kelly

beginning of guidance, it's first our we pleased were initial we've growth when it's the of half had outpaced even year. Bill, frankly, the so year. kind we really at the obviously assumptions Yes, at looked the been, of with the the planning during And

we're at third for the out right year-over-year that growth look we when the in think strong a post we're going the half now still year, we quarter. back I confident of to when So numbers look pretty

at closing fourth the for But at that on the you pipeline have comparison to range that on what a Our as looking course, see low still digit the single year-over-year now. we're probably and third we'll little there. move double based of quarter, you're quarter, for fourth expectation digits the is quarter, high we gets tougher in XX% least growth

just would some the that so little perspective, to if back midpoint at some I'd where or of a the point, be wanted in the you of to the maybe healthcare from in the upper to guidance, And additional about midpoint we the expecting industry pipeline bit what seen the at. get an looking look conservatism have give, haven't will in if we're at market, to uncertainty think, half color say, what that's I range, more And perspective, yet, then the you of broader at range. from year. range, midpoint, this be there. education of of to the up sequential there, the in continued range. XX% the mid-single get had bounds into We're talk in industry keep general digit though be just And we're scenario momentum up to we teen a in that's the it mid just But Sciences we be expecting be Life in went mid in our got commercial the up expecting even

double low strip So I'll were just that spread the that if our And range. you out capabilities. between probably also the then get digit to

for looking we're services for gave I be at if managed we the year the digital, So digit in year-over-year low XX% numbers those and consulting expect All double growth, percentages. year-over-year and full to for year, range that full portfolio.

Bill Sutherland

same? Are ago, duration there's Got is about it. longer? the Thanks a I went for question know with And all the healthcare, time. getting you the duration in moment just Are down they years that. visibility curious backlog your little other at direction the they I thinking project two typically if was there. was the in a have a about

Jim Roth

Yes.

I really durations, think the difference just no same. there's it's the I at pretty much think noticeable though,

go projects, over some We that certainly have multiple years. on

of got We beyond second also scope of follow projects of you work you get and and that. on a a completed lot work where scope one and have a you

happens So but our backlog often, that's it. of one perspective, that's only actually from chunk

we think going any have what now. there's really dramatic right changes of of the So I don't on duration in been events

Operator

Instructions] next Steinke of the of Our Kevin Research. line from [Operator question Barrington comes

Kevin Steinke

Steinke, Barrington the more was throughout that if second whereas of a digital growth quarter-to-quarter fluctuation know to between towards quarter quarter. fairly it's first managed if we digital then Hi, balanced year. weighted kind and thanks. Hey, services Kevin piece the quarter. ask the of about the It just just in the and the evened growth out there's that'll move consulting wanted of as kind balance growth research. into was, in the am read I anything to don't I

John Kelly

from Hey, even the was the tremendous the John, more exceeded we I a more I is read just digital just of of Kevin. truly anything as business growth It's a into that wouldn't as the that, expectations. part we year, see perspective second side into think quarter broader quarter-to-quarter bit mean remainder of little of our our well the in coming terms the from of trend balance into I kind out some the of it fluctuation. expect had business But own for consulting of out forecast half look to that growth a nice as progresses. it year

Kevin Steinke

understood. Okay,

I acceptance labor year are increases are think know maybe maybe some about offset inflation. you've if base. those talk those pickup keeping implementing there, and Just wanted with inflation. if the price client seen inflation across to And you your I increases, increases this to And pace any just about of ask

Mark Hussey

Mark. it’s Kevin, Hey,

for labor that, it's the been there again, is while. think inflation I one a out

numbers, say not overnight. they inflation headline something started like it's perhaps bigger, the while So

to something really not demand had But at pricing which XX% headcount the we've the very go increase and and of in that we Still a clients in time, staying market that as we hot to show who we're we're adjustments is always the able market throughout speaking, our sold, able is competitors competitive have little a lag. same achieve pursuits, competitive a through holding for own, generally terms that looking things achieve up this, we've So the overall, highlighted just been in there. year, we're marketplace. conversations, how our in it's of to but there's been our our bit obviously,

point, healthy this And outlook. the a in so, at we confidence have

Kevin Steinke

Okay, great.

but there, necessarily guidance revenue but you ask I range, you guidance. behind guidance range, the maybe think Lastly, guidance to comments, bit of an just revenue obviously the margin wanted increase about EBITDA element talk guidance the narrowing just it change the an about, to your just factors narrowed can I not in you the touched margin you if the in relative that on segment a the on adjusted

John Kelly

balance having. It's factors of just they're the

which be not pick first the ramp it's but yet, And sequentially SG&A. the overall we've outpacing scale second utilization from quarter, about on where up up XXX is we is from thing, given corporate start basis initial one additional quarter. seen on us the good hand quarter, in our want some our points assumptions, a that's So because growth to perspective, we're to second

going line is So is well well, from a that segment trend perspective.

business. even where the training to I not we over, as Day are about of building see probably that, that our side we making in XX realities every upper this also support some to on the the the little And the in right get be points, to next now, as of the flip we be those we're XXX closer our probably we're of year, basis but think initiatives bit going on Investor and XXX both projects where at end investing basis we're talked from if the perspective, have ready in of to investments growth, an to year's points, a terms to employees demand. need ramp, headcount deployed year's well we OpEx growth,

travel meeting had remarks, definitely development, client that's it factor is as from other had where to even going is thing a other to was. getting prepared not back quarter. anywhere the of back terms yet point our so lot, perspective. in lot the terms we we the at And The way. a a noted of normal a of kind businesses we in to leadership during this that's business in And of But a our travel

baked guide as that, for do But isn't back the fact, year. expenses were some been which we to always picking expected you those of up. We've our have So coming business of seeing into too. know, and was more in

another that's factor. think I So

So those basis remains the by basis year. increase. minuses of and netting expectation points the at But will margins the and that pluses out this that XXX to last net-net increase of year some midpoint are versus point XXX

Operator

securities. line from question comes of the Truist next Our Tobey Sommer of

Tobey Sommer

a up the news. you. some Four, on up potential follow Big had Thank I split

would most Big heard news haven't for in I said, potential it Huron? the question If directly really changes while and Four? where change. you in the do drive change you be answer, do split you If do And so, compete a any seen to anticipate? we notice I any of with what in industry question First your the expect

Jim Roth

is this Jim. Tobey,

business from got, digital we peers. would Four, Big it's most the the industry be just again, the say more for other different places our in competitive going solutions. probably our also like guess. of my set probably in think industry and mostly more terms most, Four we'd of But competition the to our say solutions most, mean, where perspective, think do every it that. have But Four, digital is area, and say I most the our compete verticals, I'd with but We've Accenture part from but our we -- probably I have compete we've we the pressure the asking the I Big than healthcare, you're of that we one more compete digital of compete in digital, robust has by businesses more a competitive Big But across not our if the would I'd our I varies got board. in large,

to. we've something used been So

part of the little earlier. kind as was of second though, saying Going back your to a question, at stage, Mark I don't this bit

anything it's think in or something business time. there's play either to we on I as it's as usual. the our there'll be march that's in of what be competitive business to going or change kind play Big will within And And the If terms people, sufficiently needle just to happens any I feel attraction be right this that to of going though over out Four, to of our but now, the of it's them both out. move be positioning, going material don't think going don't the happens good think We irrespective about in with any recruit. to community, in other some Big going transaction. our I of Four movement, ability

any probably I good material for deal massive our show it'll any we'll then. in up would think results. that be it way with changes, But of but not us, Something on

Operator

the more Seeing no over Thank Roth. I'd Mr. you. turn to like call questions, to back

Jim Roth

Have evening. afternoon. spending for our to We again forward with you time this you Thank November us good announced second we a speaking in look when quarter with results.

Operator

your everyone conference Thank That for participation. concludes today's call. you

disconnect. may You

Huron Consulting (HURN) 29 Jul 222022 Q2 Earnings call transcript