III - Earnings call transcript Q2 2021 | Information Services Group, Inc.

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Operator

Good day, and welcome to the Information Services Group Second Quarter '21 Results Conference Call. Today's conference is being recorded, and a replay will be available on ISG's Web site within 24 hours. At this time, for opening remarks and introductions, I would like to turn the conference over to Mr. Barry Holt. Please go ahead, sir.

Barry Holt

Operator. you, Thank morning. good Hello and My name Barry Holt. is a Communications at Executive ISG. I'm Senior to I'd ISG's first everyone quarter to like welcome conference call. I'm Executive Chief Connors, and joined Chairman and Chief Michael today Executive Bert Vice Officer. Financial Alfonso, and President by Officer;

ISG Before expectations forward-looking It results and we concerning the and this may actual beliefs is a and which statements future of that not statement. potential contain guarantees and These note risks effects. of begin, forward-looking results like to materially represent read would from communication I cause to are subject future important the those statements are management uncertainties anticipated. events their differ could certain to of that to current

future results, refer forward-looking more our X-K, section contained and the detailed Form covering please in of Form statement Factors Risk results. a SEC was on to and the listing ISG's morning affect XX-K furnished other the this that risks to For could the factors that full-year

read on or supplements also Annual amendments documents with filed should Report these any and SEC. the Form any relevant including to ISG's You other documents XX-K

to ISG able to or be or ISG's subsequent reflect revise SEC's any forward-looking circumstances. www.isg-one.com copies at site free filings obligation on will You either of ISG's Web site Web to statements the undertakes at of no www.sec.gov. SEC obtain any update events or

prepared on and basis. information, results used measures performance. on periods accordance the we measures, believes not with or measures touch presentation improves considered and a in a ISG the financial are earnings, provided GAAP. between adjusted company's non-GAAP for include the constant selected of of which call, the measures this The and results additional financial for today financial discuss substitute of adjusted should company's as will isolation which in evaluate be as net data During financial Non-GAAP currency EBITDA, certain we greater will to comparability non-GAAP key provides transparency

most the morning presented turn over X-K, be please Mike? to closely Bert I'd applicable this of to now, refer to on to And GAAP non-GAAP reconciliation the our Connors, with all current SEC. the by Alfonso. call For followed Michael filed who will measures Form was the like report, measure which

Michael Connors

outstanding morning, good results, second our and provide our third accelerate high strong. morning, of excellent guidance services results, in this second-half computing quarter their Barry, outlook growing review companies in remains repurchase had everyone. was numbers. discuss quarter, an This and our and for embrace second delivered transformations, you, demand authorization. Overall, as continuing coming I digital an for will a in in fourth cloud be to we the Thank the quarter, quarter our pandemic, out share momentum. It ISG row the increase continue the and

results QX across board. were the Our terrific

prior-year, $XX versus million, and all up from double revenues of and the we regions quarter, revenues, the of XX% firm-wide the over $XX million, For million, recurring $XX digits, up delivered representing with XX% the of nearly up our XX% revenues, up prior-year. EBITDA XX% prior-year, of

basis in XX%, ISG which impact XXX adjusted our margin, NEXT is and to last reflected which account our reflect was in the our with versus EBITDA margin increasing to is year, utilization points, of approach, points of Our ISG model, consulting our solution-centric operating to continuing The improving our to our contributing at basis needs, XXX client results, XX%. our overall, and success opportunities agility expansion. NEXT up respond expansion up

QX. a and of of EBITDA, is with multiyear debt to operating Our our after balance times cash cash down balance $XX million X.X million a low, generating sheet strong, leverage $X in

EBITDA with across outstanding debt so board. again, ratio the just a debt net performance our million, X, lowered an we low, under Finally, a to to $XX multiyear

from our that's And up pervious XX% EBITDA adjusted our EPS we $X.XX Looking share, record first-half, GAAP delivered at our the pervious best. million, over of and a high. XX% up reached $XX.X per record

of the client served durable in generated increase $XX Of last that brand model. in we that generating the XXX to addition, an From million In first-half, up versus XX% cash operating we $XX perspective and trailing cash business clients, QX, total, year. XX months, XX of a and XX% million new and was year-over-year. underscoring that's ISG's over were ISG,

from of won environment. these were work-from-home selling All a

grew As by is account expansion our existing from opportunities. increasing I our NEXT XX%. ISG mentioned, Year-to-date, revenues clients

adapt we positioned second-half, our digital As to world, we pandemic. ISG strong impact services. the some digital firm we pent-up address our to clients stepping shift us that ideally in demand levels out largest diversity. meet variant enable our and coming Despite many growth enterprise is response as overall. around investments will uneven while see our demand, partners a transformation, opportunities what the areas: see quarter, vaccination more digital and help to a strengthening the market to clients adoption potential of added enterprise of this for we and continuing look and of their in digital structural of see engineering, to senior the three our Delta up our three we strengthen To to cloud business our second this cloud, the

Mosaic, include drug $XX growth media consulting, strong health In sciences, up a is Idaho, during Caesars is ever State in seen double-digit have quarter the the consumer versus the and which development lines, research our as with revenue saw all region, research, and the Among services, quarter, were double-digits. energy, organization, Americas, utilities, Entertainment, Americas global second of engagements a in QX service the FedEx. Turning XX% we our of as and Key the contract to we client PPD, delivered automation, million terrific verticals. up and from This a prior-year. the our performance, Americas. quarter

to engagement achieve we optimal awarded a global due banking results key strong was technology company and wins million a sourcing been worth industry-leading will distribution client client leading new our infrastructure million. healthcare to The and our also financial a relationship, major methodology leverage QX of our a with with The when FutureSource, $X and for ISG in One company. both $X ISG engagement technology proprietary pharmaceutical came and signed applications. win services insight a engagement knowledge. market has nearly

ISG engagement than and leveraging for valued new at has sourcing with client Additionally, positive awarded long won $X invoice with company's distribution standing the live This owner. company. more been private we and services million a a a the production new equity a ISG relationship that video is

macro in QX quarter particular, Now flare-ups vaccination U.K. of uneven the of up region, were cautious remains Europe, $XX The across like turning Delta the in to in the and places to XX% our prior-year. the million European environment due variant revenues versus the rates

Among included revenue quarter, delivered client engagements in Re, and our BNP quarter Europe the research, During first double-digit LANXESS. utilities, grew industry EMEA Fresenius, in segments, energy, insurance and consumer, banking, the by double-digits prior-year. verticals GovernX in our businesses. Nestle, and Paribas, consulting, versus Key growth company, the Munich chemical

our clients, We continue a based existing with services business grow relationship major engagement. company, million a financial expanding our to in cybersecurity global including new with with $X Germany

transformation a with manufacturers. $X.X transformation arena healthcare majority Europe, that $X for business automotive one won automotive brand-new business manufacturer We assessment contract buses digital by with In engagement a and major of a strategy. with of million the company a million in our is a of trucks, client, won the also automotive European digital we added nearly of largest U.K.'s one clients. nearly we major owned of And major

public a the prior-year, continuing the banking, sector, sectors. Suncorp, we're Tinto, Affairs, driven Australian in Key energy clients in chemical the verticals. an and Revenues Rio company and region the the seeing and Office, Asia-Pacific. of to XX% included versus quarter Finally, in by terrific industry Defense engineering growth energy Department Australian the Taxation performance in were up insurance, the services Worley, Home

valued continue We relationships at our for year. awarded leading client expand third million enterprise significant clients. ISG's award for a with we with change with global existing continues nearly mining In straight The $X a extension a this to company. Australia, relationship were management,

ongoing our our evaluation brings turning based and increasing determined and are by repurchases repurchase capital board be increase efforts alternatives consideration allocation our This million. total the to share amount current approved our believe conditions, In timing $XX shares to our we to $XX market of shareholder Now value, undervalued. this, that ISG to million. The continue factors. will authorization of other on any of authorization

cash on nearly in QX, Board approved quarter the return program. of Our to per million to payable on dividend third our I share a long $X.XX including note held $XX dividends. in close of of of of through The authorization stock of should Directors to reward $X.X XX declaration increase and shareholders million share record and at our returned quarterly shareholders commitment of that September $X.X XX. capital underscores we our common share also robust million our September a the in dividend business repurchase buybacks, shareholders,

have continues Now, let several in are vaccination me to rates client industries, uneven. lingering where markets pandemic and in turn Europe, certain effects to guidance. The on

of at mentioned and the in digital more targeting between U.S. demand macro are in for demand to the investments dynamics. are pent with the double-digit a the and the environment, remains $X and summer with million. still Pacific robust We strong. environment both transformation. their Asia adjusted lockstep demand seasonality Europe of out Balancing and our uneven million $XX quarter services over demand shift outset, see and This the and with pandemic. million EBITDA the $X coming in third moving accelerating I Clients and the million of prior-year revenues digital cloud between market up As reflects recovery environment these we structural $XX growth adoption

welcome Alfonso, his to investor in and in Bert participating pleasure new my joined it's June ISG call. Now, is us our CFO, first who

your leadership delighted We our of him have contact. primary as and are investor team part as ISG to

that, with results who Bert, summarize So, financial Bert? to me call the will our over let turn

Bert Alfonso

to addressing transition David you, good CFO. my continuing new as to first Mike, the you I with thank a forward ISGs It's everyone. for you. to a I into smooth And for my dialogue very look want be Well, and Berger thank pleasure role. time new morning

continues record $XX.X million, and for second with reported up quarter the the XX% prior-year, the a basis, particularly Pacific, Americas last a and in year. XX% up quarter, at and momentum were by second in currency revenues Looking prior-year. XX% results. compared Revenues of up million versus following in up QX reported in $X.X $XX.X were Asia on million $X Reported Currency revenues XX%. constant the the positively million strong impacted million Europe, XX% versus $XX.X the quarter

last was adjusted from Second quarter year's up $X.X XXXX second quarter. XX% million, EBITDA

XX% share per the fully million $X.X of Second compared quarter or $X.XX operating with income per compared $X.XX million in share at or $X.X very increased strong $X.X income quarter to Net prior-year. million income diluted was net with in the million, for a $X.X the prior-year. diluted

fully prior per XXX $X.XX prior-year's $X.XX quarter of points net or quarter was Second per share in the adjusted share adjusted income compared new utilization of $X.X for ISG year, basis with Consulting versus up model. income the quarter. XX%, or the diluted million of reflecting impact our operating million $X.X net second the NEXT second

from to million our have support cash XX% the the net ended X.X year. EBITDA Our quarter and was We up long-term. balance by the times. the debt to with balance lowering and and quarter our quarter, $XX.X business cash, the million, million repaid debt sheet prior to strength $XX.X to over of in $X.X million, second the debt ratio million we flexibility in for continues to of our operations Net $X.X provided $XX.X

$X.X to dividends million In addition, in we million ISG in repurchased ISG shareholders, shares. paid and $X.X

Our average had outstanding borrowing XX.X quarter rate. the million last of X.X%, we year's as And down shares XX. from was June XX% for rate

some Mike. will you, Over some back who to Mike like Q&A. to remarks, turn the I'd take concluding and share to Now, call over

Michael Connors

Thank XX%, and Bert. our second beating performance revenue we you, all EBITDA summarize, up with To QX EPS revenue, expectations. in up the XX%, outstanding continued quarter; EBITDA,

net million X $XX and debt down below strong, remains times EBITDA. sheet balance Our cash, of

things we new ISG and authorization see our repurchase by dividend, double-digit we our quarterly improvement driving basis announced for spot. is ISG million, growth operating the increased profitable the in to as XXX we We consecutive Our target with strong a expect and to enterprise, all sweet playing shareholders, To digital, in $XX continue in model, point we demand quarter. share our NEXT reward the momentum our third second our quarter. a more margin EBITDA

value mission on operational As our in the clients. long-term, always, we we shareholder focused are excellence creating are our steadfast to to deliver and for

now, And the So, much over the this thank your turn operator very you for session for morning. calling questions. let me to

Operator

Thank you. Riddick will go [Operator take from question first Sidoti. We Instructions] now ahead. our Marc Please of

Marc Riddick

Hi, good morning.

Michael Connors

Marc. morning, Good

Marc Riddick

get quite into. there's bit So, a to

good a strong you're off very sounds quarter a and certainly like in the start to commentary. So, it guidance

as wondering not about the to think little how think and just well? if a as through of as you about flow as, talk quarter, terms kind in but the how as pacing far So, things how far about should of could should bit we we utilization demand, maybe

Michael Connors

of all, questions. a There's Look, second-half keep good. first very Marc, things thanks So, the to looking the in mind. I for couple is think of

Third clients, Europe, a of time course, quarter vacation little with the slower. in is gets so it all

in U.S., less clients. is We as all having utilization On that, guiding double-digit in with else world growth. right balance which this flat we're to our said situation. take with quarter are because have expect vacations pandemic now, well the targeting, But why toward you in third again, be to the keep an Asia-Pacific, that's we situation, on in to we slightly be what if the Europe eye utilization, tends teams everywhere QX, relatively Europe which the robustness of

to of So, [seven] expect has front a it. in that still we something see [Ph] do

still quite but but less our So, operating than more strong there. just and slightly involved that's us X for utilization seasonality in new should with X, Qs we be saw model, what

second-half see So, the unfolding. that's how we

Marc Riddick

date then thanks what for wondering end going was overall, on the to I on partners three there might senior on are, great. And see and headcount, bring us you if color the added. year? being we could where Okay, through of the we the up

Michael Connors

normally all, technology. in numbers. do, in, we the in operational IT digital then into integration market. do let have really engineering of but and comment digital of we and partners, players we Bert that three first first not really just well, Yes, brought me you engineering, that on engineering the the which all, role, One the we give headcount brought industry define But, around as technology of and I'll

forth. like and so, manufacturing pharma, that chemicals, playing automotive, and in we so mostly industries see And out and and

important area. that's So, an

ops, and cloud cloud, is of we is cloud is more kind course, to very area we're around we helping cloud senior call Second, us cloud, heavy more forth. it. so is cloud moving readiness, And and our and course, designing as of And strategy up with the of thirdly, transformation. into call this then, we're another so develop enterprise it, around partner, implementation beefing operational we models, digital digital know, and and

comment three on headcount? So, partners. Bert, that's want kind on of are you where those we the to

Bert Alfonso

X,XXX, second in up in at QX, We headcount that's in Yes, really, from the back-half quarter. the about continuing to second have increase had in we some reflects similar be in quarter. and X,XXX the the about that about where were at and number we look the growth business. to We

Marc Riddick

And the if wondering benefits little are NEXT. we're seeing margin certainly great. was about bit you'd then, and talk benefits the the clear, I -- Okay, a of pretty

a that of you your could to sort of so I And So, background wondering if out? as give Thanks. was the maybe -- own what how is thoughts benefits to NEXT? little rolled has as more

Michael Connors

Okay.

has the last Enterprise. this we on And kind world anywhere can our And strategic And back our model, you our this Digital grouped into dating and move is put two model, year. buckets given is to kind those ISG skill talent we quarter, our part, will, in and with the frankly, if in last -- working a our of leverage we this is way our which Marc, now, our second of been, any globally. sets ISG is that day. strong colleagues essentially now work-from-home So, very iFlex business on

that take because Or a a major be in physically all Germany, Australia, experts and with Thursday can United Seattle, in with automotive of in Friday, client if And from the our participate need don't digital out and United our have States, have with Wednesday from transformation in in we piece work we digital States, can experts, to automotive they Europe on the if manufacturer, can work on of can and site. and So, the a home. a with a digital manufacturer transformation over Microsoft, engineering manufacturers on Tuesday, Monday, they or here Munich. -- of major and with teams then in cybersecurity, we they work

we're this by simplifying leveraging that's on fronts. that's Enterprise. we how And what's how and ISG into this the are expansion our Digital taking So, leveraging model, really that is NEXT, ISG multiple really

basis of I to and off improvement one, know, you are As our way this committed our moving over of there. points on two year, years, XXX in we year XXXX certainly well

Marc Riddick

bit you strong shareholders to sneak you maybe capital was Then about flow and some target pipeline potential wondered, at has commitment the a give I I of you're an one, some fine. from to could wondering one talk maybe encouraging. and an what might as in acquisition that little update I to been there, That's return perspective, if to, the very could things areas? and you. is certainly looking last cash Thank see

Michael Connors

Yes, okay, Marc.

So, know, look, active you as front, first on the very we acquirers. acquisition are

also, if but the our around digital quite are all will, all of know, be active out transformation. opportunistic. are our tend to areas. But market Those focused are we And as there, speak anything very the strategic from we're importantly, the streams, a pearls nothing areas. focus recurring a the as on acquisition strategy." you in in hunt around things business transformation pricing But there our there. active recurring, are kind in is acquisitions the disciplined very of things those We digital, more overall of course, business and, we transformational imminent. revenue there. "String of And or standpoint, if we around call we are We transformation, in of kind and always And, that area

Marc Riddick

you. thank Okay,

Michael Connors

Marc. you, thank Yes,

Operator

you. Thank

NOBLE go our Gomes question take Please from ahead. Capital. at next now will We Joe

Joe Gomes

and Thank for you questions, my excellent quarter. Good morning, gentlemen. taking

Michael Connors

Thank Joe. you. morning, Good

Bert Alfonso

Good morning. Thank you.

Joe Gomes

Automation you win big about in quarter, opportunities a to Last business the unfolding. to one, about seeing into how digital you bit the know this ISG little So, talked Wanted the momentum or was more talk big business. Are win there. want first succeeding I translate period? that the that for

Michael Connors

Yes, is digital of our ISG for double-digit scenario the that well, XXXX. performing balance businesses. of a of in so all it first Automation, all, we exceedingly on is as Joe, see And continuing

digital for it segment our during would and what literally is this you just why mean be them on broader things for small a I of business, talent digital, future, if "Digital believe the hottest going the is over ISG. Digital our bringing that is about deeper the answer much, if than and overall, are because, area, in know, some additional and we our think overall I much that's hired into call is quarter the And is probably I'd how "Automation." that. area whole revenue." in Automation And as Joe. And fire. Our you invested foreseeable of business to well that's organization, way, now XX% we revenues So, you all that, will, say we

Joe Gomes

the some and continue And build know have you with kind got to this being Okay, But is just, great, or but reason there wondering of cash the point? buyback. if cash thank debt continue conservative and you for what outstanding that at that. you rationale of do dividend behind capital is there, I just to that? you is any guys the some your you build in just

Bert Alfonso

over consequence several to us that fact the how quarters. generating buying cash terms the capital the is of Certainly, returning that gives Board from the back optionality million last Yes, regard. of and a I buildup that doing, shareholders, that business more that really $XX authorization more the and shares approved, in we're cash well the is operations mean in strong

metrics, I from we're On much with interest X.X% the rate financial side, the was very we're [Ph] rate, Having our as [paying] X%-plus. mentioned, to better debt pleased down today. interest

we So, that's to leverage decent a level still think have.

lowest In it's the many fact, our in years. leverage is been

So, about the perspective do discuss from that with think it's do that something Board. we we and

grow capital the business opportunity add itself. value. And to, to in inorganic right way on shareholder way the to do presents we if said, in as So, plan Mike that deploying an opportunistically the

Joe Gomes

more you're ISG model the seeing to And NEXT have that. seeing move Mike, thank fantastic to one may. from or of adopted. replicate just model? guys mentioned, you trying for competitors results as your I if you ISG your you closer NEXT that Okay, Are you any

Michael Connors

time, others that connected. from call from That's a Joe. beginning had I very of we imitation stay won't And particular, but are, our peers. of how to are number I We've iFlex calls well see model, in good say note. take is a understand would Trying course, very them yes, sometimes "Competitors." our we question, to to works. They some flattery. time

now us depending the that travel clients on-site to they of of et see U.S. have world. have model spotlight kind a see think works been COVID. little I do break to later COVID XXXX, variant some we cetera. firm born of year, yes, back We virtual, the established how essentially you probably kind in able there's less the the have model. costs, been that we this don't But a a what can do virus beginning we the very we eat, did have to they costs have may before around wanted they was way on virtues founded essentially So estate what real that on when to we've that in the adapting are was put that company before And of Whereas the big is

to things So, we think our do yes, model when model take going working but note. XXXX, happen, is hybrid be into others expect a those I it and

Joe Gomes

congratulations that. second-half looking Again, the for on you quarter, the year. forward the to Thank of

Operator

Thank you.

take We Capital will question at Stonegate next ahead. Markets. Rodriguez go Marco Please our now from

Marco Rodriguez

taking Good you questions. Thank for my everybody. morning,

Michael Connors

Good Marco. morning,

Marco Rodriguez

the transformation driving you existing the if up growth XX% other they're to discuss Can that wondering or presumably are just here, is that? you prepared I of along growth, was you the maybe clients type Can done your pick digital down on types maybe your comments in digital doing of Is about had perhaps could Mike, services already bit cloud maybe I written I they're maybe most the existing would a parts expand trying your clients. believe what services? more have I spreading client their remarks, of little it about talk if business? of to sort of different transformation the correctly,

Michael Connors

Good question, Yes. Marco.

So, they with clearly we're base, current trust the seeing look, client us. what

a relationship with established we So, trusted these pretty clients. significant

if it with us I moving robots, say change is other in that's lot their key efficiencies and of of is that's in So, occurring, in of organizations. do the call businesses, but home or ask change from automation to models, whether it whether areas, well would the work we digitizing workloads from our of a industry it's change, a in all enterprise whether their parts area, as of cloud, they terms that's banking, such more inefficiency one clients the segment consumer lot happening changing the name and And it the and more those to creates a processes just few. insurance whether in little whether pre-COVID They're was more simply cloud in health accelerating areas, and care what areas to like expanding in and importantly, engineering. a I adoption, cybersecurity, digital it

And been assignments. To think of companies, I a XX, and all to so, two change, in of in month take one occasions, this or remarks. prepared six, and be change and kind tend put these we've major my enterprise I examples those pipe identified wrapper asked around XX on many

allowing advisor and them. are our as where So, that to with is a expand trusted expanding, clients us

Marco Rodriguez

rates the focus for of gross be margin margins, XX% a slight adjusted very new obviously helpful. may is standpoint of bit. gross the this there and revenue year-over-year, All the year-over-year obviously the better this little in margin down a solid revenues, utilization lower terms then range, line, aspects than at very shift looking you guys you're main know margin of the instead But during I that? of did at bit EBITDA. where right, up have the that growth just And from With off higher terms kind a quarter, a in you in but model, was of structural gross level performance

Michael Connors

in terms. put I No, Marco, those wouldn't it

some in actions last seeing depth perspective. virus, you're firm economy what a shut the cost year the from of part think the of strong down. is control took was that The when completely I pretty

actually has were voluntary reductions, a really business responded there got that salary so, And in luckily, some furloughs our were positive and way.

see quarter. you back of those second some coming So, into this costs

used think So, anomaly you're right? go back you time, little of our there more that structure. think of a over of margin an to might as I in terms of to one there's that bit time, at we'd what

Marco Rodriguez

it. in they'd And terms then, the biggest high-level maybe of think any kind helpful? saw for you Got are revenue your discuss, of there, do question, sort that particular regions, you for a reasons if differences Mike, of have driving they where the growth can opportunities be

Michael Connors

U.S., companies, So in say if it's tier another U.K., for South have delays it's banks, if in in I the hot, the catching they then Europe transformation. on over will digital Nordic or French, automation, course, companies. Australia digital up, is area And And Asia-Pacific an forefront, the And example, it in digitizing as you in region, in resource second have it's be hot Europe I digital. lockdown form been hot mining in or number was of would would of the a you've that the that got the Germany, at to the lot go cloud, everything normally It's hot in a in you around world, the processes, of is and not major U.S. certain months one Region. and was off. the is in it is

year still up. gearing growth are very of region, year, the places journeys. in And Sydney we're this the move Melbourne and And things So, know know on in going they've also next see like digital as you're got with Asia-Pacific. you they that to seeing beginning to into up you loosen in saw and their on think region large I back a you're quarter see, I digital, that that that in half will seeing, during lockdown. in companies But faster that the

informed So, and perspectives all more emerging? that are is But as our and has around not, that who's understanding course in why are that business probably and well. emerging transformation, different transformation, better have it's double-digit change market would research clients trends characterize want that of who so enterprise staying terms in the the and I hot, world. be suppliers our in then areas, parts growing more the those a the of And insight, regard our been would digital research, our accessing significantly, research how to who's of they're

So areas. those be would the

Marco Rodriguez

then if it like of the following-up bit it repurchase, the also sequential Got just quarter, bigger share And do question this I guys of a seems cash. of into you about share the quick share with in question a bite it. building last you might, repurchase on And and decline kind prior the was had kind normally than count. on little dovetailing a

was far I a trying repurchase, you where had think last XXXX, the on share get tender offer sense just allocation as as a to large it capital decisions.

of at year, next second-half maybe into early As look the year? and this you

Michael Connors

Yes, we we're I cash. what previously, think generating talked what seeing about is, you're which is more

by as good how stream income dividend in the shareholders. about we And board a so, terms the in last quarter, to allocation, Obviously, was that capital felt had give back approved we was to the think we an way our ongoing see share that initial to repurchase, we're of and shareholders. we

levels have So, of And continue of as the operate shareholders. forward in I going more, that to higher how than generate return to can past. we would of we it we think cash we had think as to generate would as just we options more cash you

Marco Rodriguez

a thanks time. appreciate it, guys. your I lot, really Got

Michael Connors

Thanks, Marco.

Operator

you. Thank

Barrington our Research. go next from question will We ahead. Colicchio Please take of Vincent

Vincent Colicchio

Yes, Mike. good Nice morning, quarter.

Michael Connors

Vincent. Thanks,

Vincent Colicchio

service the in and if quarter me, would Just and of upside so what a cause versus the by the expectations region few for line? your upside the majority

Michael Connors

of accelerating combination sector in in business informed more one, number as out research regards, the market. happening the were our sector, of kind Health some two, digital and particular, transformations the consumer was of number in red hot in be to insurance Sciences sector, at wanting pandemic, the look about was least the so drove growth, clients revenue Yes, what the coming more the

our that they're manufacturing looking model took signs we at and in us. and automotive in And call these and solutions and off if for areas what everything, see to and and in to will, we're understand a you those service the that them, when a European so to want "Digital began products they sourcing lot off over So, for how clients, as of can industries in them like market, can help beginning play engineering," pharmaceutical, of and then we begin part take clients you to structuring I then there say still with where say at would other down in also we there, had region, really slow during and research. significant Australia growth And is the and which events. as down saw have around clip to mentioned are I from quarter would home would the expanding, emerging quarter off network business, little anticipated and for digital, of that some work model took than an acceleration I faster in a the been

Vincent Colicchio

margin? in market quarter the maybe Thank is wage you. you the affecting what labor are have impact And in tight And seeing on an that terms that of and inflation? does

Michael Connors

we brought quarters. quarter, certainly if quarters, then a we look recent think, the you this in and of I in number people look have in we brought during some back more additional quarter, So talent

So, add stream to the get we for that going be forward. certainly of continued ourselves that a to But anticipate, that'll growth kind bit cost. ready little of is able

view, that we we in had attract the On front, need. have the always the talent ability, our to talent

turnover in historical to noise despite people the marketplace, remain the next. place regarding rates all lows, from one the moving at Our

to been that they've idea teams that -- we pre-COVID, want able they Our do COVID. to work, now love they always love flexibility the the where have where work, to

ability to indicative partners of before we have which that in quarter, never one areas think so, and in it's quarter, we during significant be the attract to And we in three brought I think done attract talent, remains. And able talent. the our top

So, feel least we ISG that. not I very during standpoint, an Vince. about inflation, at this quarter, say there's good that wage from would

Vincent Colicchio

pipeline could deals? with for that that work? clients And small then new clients substantial remained new remind and us the How usually you does start-off

Michael Connors

start in. start clients are the during join in during number clients and new almost kind months. $XXX,XXX into they clients. over or small is it quarter, them. new they we what prepared said, they And of normally and growth turn normally the and about of Not have remarks, where build had of a XX all up -- million they in think in And what we hope as small, dollar quarter was happens the significant they then the and particular so it $XXX,XXX XX% think was But quarter. we I Yes,

So, continue our kind hope that ability first strategy. I digital they like of through attract to XXXX. They will would clients our like that ROI. new And

that view how is of that would Vince. that I kind one, So,

Vincent Colicchio

my Okay, thanks for questions. answering

Michael Connors

Vincent. Yes, thanks,

Operator

Thank you.

for So, looks is we all questions that that have like the today.

any like speakers to call So, closing. I for turn to back would the the

Michael Connors

you. Thank

you they the and our quarter environment confidence advice just second been our their in to you and your our support close delivering for saying clients as professionals us really great firm. above journeys. going Let all up call let in There's And Stay support to for these our helping me of no the really best clients the continue this have and worldwide for remotely all difficult deliver of results. rest to in terrific day. by and our thank passion beyond everyone, to and thanks on digital well a continued serve

Operator

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

disconnect. You may now

Information Services (III) 9 Aug 212021 Q2 Earnings call transcript