BAH - Earnings call 2 2024 | Booz Allen Hamilton Holding Corporation

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Operator

Good morning. Thank you for standing by, and welcome to Booz Allen Hamilton's earnings call covering second quarter fiscal year 2024 results. [Operator Instructions] I'd now like to turn the call over to Mr. Nathan Rutledge.

Nathan Rutledge

Good morning, and thank you for joining us for Booz Allen's Second Quarter Fiscal Year 2024 Earnings Call. an this read morning. had we press you've earlier issued hope opportunity the to release We

We our now website also and have provided are on presentation Slide slides on X.

results about Executive Chief and Officer. Matt President business talk President Vice Officer; to Executive Chief today Rozanski, our me and With financial and are Calderone, Horacio and our Financial

future expressly and discuss and in differ their cautionary events discussed to in publicly events as no results filings unknown may of statements, the foregoing the some shown disclaimer in update only that and by performance financial speak required on As future future that qualified undertake revise results forecasted otherwise. risks, our forward-looking in of we new or Slide cause date this this and by statements will SEC on and made. mind statements entirety relate and obligation information, or to or are of X, actual call. whether result as from the All our we Except as to other please keep a known may morning forward-looking items law, materially involve are any factors uncertainties forward-looking

other call, fiscal second and now to CEO call and other reconciliations will XXXX financial most explanation Rozanski. to my the of investors. the turn quarter release Horacio year to for over today's non-GAAP and believe some provide President, information adjustments measures GAAP discuss our in It pleasure measures earnings our metrics, slides. non-GAAP During is we also and comparable our useful we an which We of measures include

Slide on now are X. We

Horacio Rozanski

events. Matt market-leading the have everyone. for But joining and privilege done Allen's the I by we like world discussing Booz another to quarter open context work good putting Thank and our in get of performance. morning, in have call. this Nathan, call you I you, with past I that, Thank of times the you of several to before Today, as would the

murderous safe Hamas of shocked in was Booz victims On October with by Allen, a the We the world people by families. with return side solidarity protection and their attack, the terrorist perpetrated Israel, of U.S. condemnation and of mourning government pray hostages X, the in civilians. would and Israel's Israel. in for stand We, all stand at by of on defense the the the Hamas, support of side and all in

in do done to Allen we In spaces the we Palestinian have afraid region. the for loved what both Israeli their weeks, support our intervening mourning Booz colleagues best, creating living has or listening sessions, conducted in ones and

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this it to X you I was felt morning, share for This reasons. important with

decade. people our exceptional our reminder the missions for decade foundation yet response remind are from events happening; hope internal to our ever like of unique deterring Allen. of the us and because horrendous second, these bringing is of technology this leading-edge in things They because and First, critical unshakable urgency preventing and another culture Booz work, the of the performance of after

now performance. turning to So

quarter of outstanding. Our was second XXXX year fiscal

second strong and our a Booz industry-leading organic revenue quarter. having team once On we emphasize line backlog. importance bottom last Our of record call, delivered strong Allen earnings growth, the again a

now about the the expect the year to with as fiscal business persists. our built even significant we succeeded. second half We resiliency uncertainty plan show We for momentum the year. this Our fiscal in exceed of the enter and federal original results budget

for to XXXX. As and on pleased we to announce through our minutes. our guidance line a bottom result, top deep also few are performance Matt increase year in it will dive and fiscal an a a take you

and connect goal to for our My performance is with today objectives. our financial longer-term strategy

We are XXXX the halfway outlined and of deep X-year through the thesis into in investment implementation VoLT. late

So to this to self-appraisal pause like a and a our seems stock good progress. moment take to offer of

an Day going by our we October Investor point, to we begin I'll At in at what saw said that extraordinary XXXX. back opportunity.

our us technologies take transform opportunity our level positioned accelerate to our cyber, AI, XG such to over and shareholder leadership this to And to quantum drive government as how outstanding our first said and emerging expected industry value. to the rapidly advantage maximize We mover to decade. we next operates this growth,

time, included that a centered At laid in in thesis billion in to growing revenue EBITDA the $X.X on to annually, $XXX XXXX. accomplish by out approximately growth EBITDA to envision adjusted X% XX% that path of range above-market fiscal multiyear adjusted also about fiscal margins year XXXX in $X.X We the mid-XXs. billion this we X% organic investment million goal year the from to

We $X.X capacity billion prioritizing acquisitions. total continued deployment, strategic investment to small for billion in capital to future $X.X midsized and growth,

our investment are of period. at we put, midpoint our Simply thesis expected ahead the pace of

XXXX our in the the done of this above have well range. XX.X% revenue fiscal fiscal margins the investing X% and organic target original half business above and we expectation. in And Our maintaining is year growth while 'XX of first year in

billion are adjusted required. to $X.X an us our performance has sheet. less initially expect Today, achieve path with goals target put our a Our the far even stronger balance fiscal capital extraordinary organic we would we to we EBITDA reach importantly, EBITDA billion And while deployment than pleased to adjusted on thought year $X.X XXXX. building reaffirm by range to of be

additional us next $X beyond. are baseline months had sheet $X This shareholder to which the $X.X our to create we of decreasing now, with approximately and deployment balance capital we billion, anticipated. to less XX is over capacity As expectations than billion the value initially billion provides

and investing serve markets avenues. the world, with clients the velocity, budget creating stands results we shareholder the These VoLT rewarding our become and As strategy Allen rapidly outstanding technology. And to are positioning more we growth the distinction in federal volatile leadership to for value. keys growing the Moreover, is future the financial these XX growth in working. our to demonstrate superior moved implement. Booz talent and months, VoLT coming while years, are over and past

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transform of new technologies. the leading use set also missions through We out scale build that to and positions

our are Today, becoming our aspirations reality.

Let X me examples. offer

the to First, greater speed deliver AI and proves rise of meteoric our scale. readiness a

of every across to As great accelerated demands are respond competition, clients' complex our positioned the of we government, adoption federal power needs. to AI facet

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tradecraft Allen to edge. cyber at example Booz a combined task, our our transform infrastructure. of The a Thunderdome of all with to we CISA's illustrate recent demanding and the how zero critical historical ability VoLT's leading to strengths tech this and our of the across Booz commercial to understanding Allen and award technologies key Cyber leverage our Allen's puts is of effort we at implementation architecture the second scalable in continue very well. businesses $X.XX of Department This into our and existing stay Through partners, center Booz ingenuity. billion trust talent Thunderdome successful business this complex technical work, is mission solutions. Defense's implement

continue we and extend to expected This of this we across scale the this elements in solution As federal to VoLT whole opportunities create is government action. beyond. work, to

Booz the grow of have towards close, results and we federal progress past today uncertain. The our market increase made months. resilience our environment To ambitious extremely XX we Allen's shared over goals am I more the budget proud as

position our the a to enduring impact taking most missions. new level leadership across critical and increasing our and are We

and people amazing to of work nation. Their better optimism over The clients world. about to invigorates Booz the that, change Matt, our Allen empower passion and make you. people on the world our the It behalf we And my relentlessly, me can of relentlessly with to belief that with future. fills safer

Matthew Calderone

delivered of Allen thanks and Horacio, our exceptional Booz you, The Thank to another you call. for team quarter. joining all

in for in serving clients' hiring of year Our shaping well remainder demand up this success to on and across beyond. talent important, in portfolio contracts sets deploying very mission, and and and capturing most opportunities, the our fiscal the us

on clients, our Booz our delivering shareholders and year. Allen for itself people year after and quarter quarter after prides our

We fiscal a our to to XXXX are raise be position year in today proud guidance.

thesis. long the continues X-year we expected Horacio team noted, goal where Our And and the ahead investment build term. resiliency for against are our momentum of be to as we dollar in both adjusted to EBITDA

quarter revenue Now approximately our expenses year-over-year. year-over-year excluding the for XX.X% to to billable of was specifics revenue to $X.X XX.X% year-over-year billion. Please grew let's up billion. second X. the quarter Organic performance. Total into approximately turn XX% $X.X dive Revenue Slide increased

continues to be driven and strong our solutions headcount demand performance Our services growth. by exceptional line and top for steady

are strength all Our portfolio. Across embracing across of leaders we to results strategy. seeing business markets, our continues the the exhibit VoLT the

the is is this business thriving Our fiscal second broad-based. year. defense revenue last up in to XX%, approximately quarter compared with Growth market

missions. We and tradecraft continue to critical national technology to bring

roughly board. Our XX% the Civil business revenue across strong up with year-over-year, performance was

almost significant year evolving grew first are progress We the have entirely this very number half cleared hiring and had of our portfolio. leaders wins the in and and business a made contract. new of the Our X% intelligence classified has by of encouraged roll-off talent large, year-over-year in a absorbed the

quarter reflecting fiscal revenue the XX% Finally, business, commercial declined, accounted year-over-year, last our the divestitures disclosed X% for approximately which of global in year.

The robust. bookings. award to remains on Moving environment

our The second quarter for bookings. strongest is historically

contract. net billion. full quarter, $X.X bookings approximately the and billion the includes value DMAC This $X.XX the This billion contract $X.X Thunderdome award of awarded recently billion $X.X of totaled

of record book-to-bill September the $X.X as grew billion book-to-bill Our Funded to and year-over-year. a with Total ago XX.X% XX.X% line in backlog backlog X.XXx. priced was up X.XXx, to period backlog and increased Unfunded trailing our $XX $XX.X XX billion. second X.X% XX-month a to options dipped year billion, billion. grew was $XX.X same to quarter XX.X%

a Looking execute of pipeline we to on opportunities. rich continue forward,

$XX.X fiscal and awards the and Our the up last stands medium-term to qualified near-term compared objectives. at time billion. to have and pipeline In XX% year our both year we is this XXXX pipeline growth sum, support

more than the talent end XX.X% people headcount to higher grew Turning and was XX.X%. increased continues now Allen XX,XXX strong These a top to Client to staff headcount contracts headcount. year-over-year Booz on Hiring, of deploying priority. be September. a at Total efforts have we today, basis. remain are increase onto positioned client yielded a of since posture. target growth staff full client the X% beginning the fiscal Therefore, of our X% headcount in year year X% exceed a growth. and we well to staff to in onboarding

bottom with million We in the our the year to adjusted the quarter. second line X.X% in higher is now This in Moving second EBITDA for quarter $XXX the earned last than expectations quarter. line. and

on remains focus principal Our growth. dollar EBITDA

margin approximately the than lower same XXX a year ago. EBITDA period adjusted XX.X% of basis was points Our

higher the quarter contract billable in shift the in On diluted cost due were business. margins a reimbursable expense to ratio work towards a small in our and growth by rapid defense basis, mix a year-over-year

which and continue term well, in exceptionally to costs execute us long and results the invest allows contracts both term. manage financial near deliver for to the We

year, of a slightly This quarterly compared we recent to do flatter margins years. pattern expect

in expectations X.X% net roughly income year-over-year to Diluted our per share year-over-year flat at the net Adjusted $X.XX. $X.XX. for per to Adjusted was share year-over-year diluted million. quarter declined quarter. Second This earnings earnings to million. $XXX was declined grew $XXX X.X% X.X% income with line year-over-year

The million of This offering $XXX that cash includes in Moving operating $XX.X of investment-grade $XX.X flow ended bond million the August. now second used of we for negative was proceeds We sheet. and million. from quarter for successful balance on the CapEx. with executed to Free the cash $XX.X the activities million result hand. quarter

the in with July, out previously Department we that Note Justice. settlement of paid discussed the

the our quarter, payment, that XX% and business. to flow outflows operating cash rapid remained high for Collections up investments almost was year-over-year. continued growth cash in Excluding solid the were due but

Our was net of and debt leverage EBITDA. at second $X.X was ratio net approximately the adjusted end our the X.Xx billion, quarter approximately

X. Turning to Slide

$XXX am average December approximately share returned quarterly we cash quarterly of quarter, $XXX.XX share million million record in I that second stockholders of dividends. $XX of be per Board and our will X in of the capital Today, repurchases price included an During announce This million per $XX a approximately that pleased of share to November to $X.XX at XX. has approved dividend to as payable on shareholders.

As year the point marked Horacio our thesis. both noted, September investment of of our fiscal midpoint XX halfway the and current X-year

bookings, team our our last to government could prouder year things be of to and On headcount quarter for not be leadership highlighted that growth, potential second performance: Our call, performance we our would date. shutdown. second quarter X key the full a

strong the both uncertainty the we in government shutdown. exceeded and of funding bookings about Thus, government multi-week beyond built the headcount growth have Our updated is there and possibility but incorporates still November. our a quarter momentum guidance expectations,

We our guidance shutdown to assumption the X- of partial into built have a ranges. government X-week

On significant government volatility. but raising even year we continue hope are we with shutdown. a plan is front, guidance of full It this certainty, for to multi-week this partial that assumption for

to to expect revenue XXXX me the which will updated XX% guidance. At Please billable turn of XX% line, expenses you of now do fiscal now be we Let the Slide And growth through expect top in to take will we X. our organic. second half. decline year XX%. XX%

still guidance unchanged. Our in XX% is adjusted range. XX% to margins EBITDA to high be the margin We expect

for been anticipate recent flatter will second ramp-up capability As half. years, and I of investment with our noted in year be even has profile full building it traditional earlier, than talent in our in margin we the the

We to approximately our EBITDA billion dollar between and XX% XX% or growth are adjusted raising guidance $X.XXX year-over-year. billion to $X.XXX

increasing share. our to per are We range to guidance $X.XX ADEPS $X.XX a of

higher $XXX payments includes are million to This operating connected the cash interest recent $XXX million. at maintaining of bond guidance issuance. between our our We flow and impact

growth million in working. We now $XX In cash free million our expect CapEx business be and is strong flow strategy to million. to is of $XX range $XXX of our approximately sum, and the

investors. open Our management for and work we team questions. the doing, we people, line great value clients and for is our feel, With our our excited about are the that, are let's momentum the the creating we operator,

Operator

[Operator Instructions] comes Mariana question Perez from line first America. from Mora of the Our of Bank

Mariana Perez Mora

growth situation? all that on like expansion the It this AI. the you really discuss a impressive So much edge. how my dependent this at timing to you question was And to was around I'd see you see have applications budget AI of is there. And how or the on

Horacio Rozanski

this talk a in civil that also and this we about $XXX And the doing proprietary our us in of talent, Mariana, growth you year it's on in across and our And is some broad-based. the our I to over Booz coming calls business forecasted $XXX is are AI these and that years. set growth are well. We AI we is into million work Well, the think talk the dual-use think to range, as do see ago, I product technology hear accent conversations from bring with apart. saw, be good missions frameworks and agencies million a solutions on some we of business in significant you work commercial lot, we our to that with that work Argentinian partners unique work we to Allen couple the the the not as weeks one. only had Helix know our intelligence we're But morning, defense. early the these have growing

are the very about bullish we So future.

what's budgets, Hill. happening closely about we the on very at To are question your clearly, looking

potential increase. that need our won't but competition guidance across to We need the it at Matt out, fact agency will are, happen, realistic shutdown. budgets about federal this As every a And compress be about be government future, realistic the hope we point, to making we for for into the in pointed that. if we the resources

of to perspective, of reaffirming our VoLT our that, we're and missions enduring where put the why capabilities both on said in that's we're we're deliver and having unique raising ahead investment thesis. us Now pace multiyear from that bringing key guidance has middle

where we are. really feel good So about we

Mariana Perez Mora

of your certainty? from upside budget have in in these early have the growth how has from So term do near year? were And you insulated budget, like to -- much said otherwise, a much term if how near the call like it, you next

Horacio Rozanski

predict it's -- accommodate we to It's range these more hard and broader to been precisely. that's than in in past to years as We've a that the incorporate tried why guidance range really way to a scenarios. is opposed the it's --

we've that to we're of point ability because And best is as work business. been maybe passed had for seen, around the you saw that we've against we've growing Booz we this fact long the last my as a I to you first the since and half half. possibly in think IPO, I've really the least latent thing at the the best lot at success time, is had. as demand in had the first now, probably to I the growing a Allen. well years know, mean, that's -- we're budget XX-plus December why I've underlying

in we to the the are So the of there's building metal. challenges, momentum but pedal in business in We're clearly, business. funding resilience anticipation

Operator

comes the question Bert next of Our from Subin line Stifel. from

Bert Subin

lower said you you're is question rise utilization And just growth does Mariana's AI? flip I across that Just business we 'XX? beyond staff. to about broader end something the utilization relative Those the expect how that headcount your can bullish, pretty to think you opportunity your At workforce quickly? make to know that should across of How quickly and Horacio, sales you revenue FY but event, for just follow indicated around provided your there. up to AI Booz. AI expectations data expectations client-facing

Matthew Calderone

we think not you It's Look, arranged business told that have the because apples-to-apples it versa. I supporting we and and many a first. AI revenue you are from I'll projects purely showed Bert, you, we on practitioners said, take how perspective vice as AI we projections AI have.

perspective. investing because probably of supporting innovation, who capabilities, utilized the building folks et staff just lot our significant Our of of business in set but business. there, than we're staff, a training see those AI from folks we from a growth that upskilling governance broader cetera. from the have less a are the are amount rest AI not There significant model, technology and we're driving that But

mention, it, and to in to at I'll it's we're fact, Mariana's both also and being your just and thing the seeing you we we extent having that, Increasingly, happens. large Event, when the is integration digital, engineering of do cyber, we're AI is problem, AI, relevant for into cyber a to which question other mission not the now bundled because bundled highlighted success procurements. that for And the requires The protect to AI it to hardware but enable for together if complex AI is some it. about think for that

software got system. You has it to type Oftentimes, and into into it be product. hardware to integrated some network of a integrate

traditional think technology a just business It is AI broader really wouldn't base we large. I about the perspective. and So impact a across into from of integrated with is have our having stacks being much the

Horacio Rozanski

workforce what has, on that we're to is like putting start the we the One investment having. because that much stay Let we is a small and exponential, of that so point said, these -- the Allen me and that to add of then really opportunity talking of success I'll can we which institution we we exciting. the wait there, a relatively ahead position points resources very single into and give that lot you ones go AI Booz us to and buckets, can about. are technologies, modest as we to all AI the an we resonates. trend, to small that's to unique And point, P&L really ahead our level look ability plan -- of of the way to flex the we're game as the and early that that in power our if at is still X Matt you opposed we're and which that and pretty point us the is gives we at intergalactic in growth level back second And the the manage

Bert Subin

Horacio and Super Matt. helpful,

your more future Just directly that about but sales continues much least to related percentage something slower is be G&A a fall your Matt, we a thinking over margin of Or at that not and your for growing you, expense, the time? to certainly sales Can expect follow-up as than is to growth. cost an normalizes maybe expansion? for engine maybe that structure, AI, partially

Matthew Calderone

I the modest, really, It cost of could shifting generate been to hyperscale intentional the the business. investing and Horacio the said, money we're we're investment from in has relative this few more into a infrastructure AI margins, our there. past some but over is but investment as scalers, lot years, of mean,

growth very side structured business all So in capabilities in led it want. can corporate clients possible by intentional effort our and has the as to become a the invest on the been leaders of and efficient so in as business our we

Operator

Our next of Sheila Kahyaoglu Jefferies. the line comes from from question

Sheila Kahyaoglu

think is in to about could across outlays? the much customer first to of your if top expectations really growth, acceleration. on remind great another of in the growth maybe that bases defense DoD half, due you year start improving the line. terms the XX% organic we results, up your organic XX%, And When that, just different for How us

Horacio Rozanski

across It's while start. business: the the the changes look the of and plus really entirety Matt absorbing XX%, add. say Intel, When X contract I'll broad-based. portfolio. Sheila, following. might you civil want XX%, growth to defense, I'll in our percent

dynamic. cylinders all on all one hitting are not It's of It's program. not across piece. It's not this. We one one

important uncertainty to the we raising attributable point, funding fact numbers in we're The momentum the shutdown, government while the for accounting evident in picture. is mean, us do and the both the see is is that to increased it's in giving I general, a because momentum resiliency. and in all VoLT. for equally think VoLT guidance I your resiliency potential and

this, to have missions aggressively against At clients It our of dynamics priorities. because is cycles because the and key we perhaps anticipation. the uniqueness maybe tightly in to But which get both invest fast going and offerings to our that get for that. are perhaps create pull we so the of back this we time. we our we're tight like continue we're support, that other it's moving geopolitical growing seeing a clients can of continue and interrupted of we In both environment still in seen workforce point, the if budgets or running see period the protect

So we we're defense is are really I all the to transformed bringing said, particular, mission. get to I along the of every excited lines of across technology where like mean, the to way defense, about growing part is and in XX%, business it It markets is grow in only our to nicely.

Sheila Kahyaoglu

super helpful color. No, that's

Matthew Calderone

clearly. not resiliency XX% because gives underlying us really growth above the the excited year, depth has out it's budgetary the that we're quality to that, environment. said, organic But the as in of it the XX% market, but growth dislocations to us It's just for Horacio growing the ride of the momentum, and potential

Sheila Kahyaoglu

working how see the I Can talk improvements expect the and Matt, on to another And the follow-up receivable balance we of you, should should capital balance we that sort you here for cash. terms progression? revenues, if just about from that How may. in accounts impact also of

Matthew Calderone

of take in Sure. I'll parts. a that couple

now. calls talked First, couple cash the and a about takes puts you've and of on for

generating positive side, profit. certainly we're On more the

pay The are I one interest there higher our driven has days. And headwinds. to settlement, declined, XX our collections. improved in consuming growth, within expense. we're cash taxes mentioned, by required as example, to mean, businesses just working you XXX, are and we outsized obviously, CapEx capital you Our give to DOJ we've higher support it. growth small But

so question collecting. some we're to we're at on as our balance, the because sheet you're unbilled you've faster getting outstanding them than that of receivables I of think And we're balance our paying typically asked previously. the receivable growing, With respect

working audits. in -- a past your is are tied -- up that of meaningful with We portion

going both project and well be DCA that. We to are that we and and try working when It's this things DCMA, but quickly how be multiyear well. at to going with ability will resolve likely no time, process, And are to have a to resolved. what's

Sheila Kahyaoglu

And of just called line, on that I million the the provision. $XX you the reduction think from out revenue

should be those positive conceived think So retrieve about how those as Is payments. you it? of as that to sort

Matthew Calderone

with in quarters, of relative it -- and years puts we I changed reserve resolve results our 'XX takes to made [Indiscernible] to our couple 'XX as mean Yes. these. we over the going there do and but to the work of to audit, couple of that particular next audit be has next are

We're any So future it was not a positive this making quarter. about predictions quarters.

Operator

Our comes next question of William from from Blair. the DiPalma Louie line

Louie Dipalma

longer are you Has signaling been stock capital capital lower more Liberty-sized with deployment program and Matt, another VoLT buybacks are you extra interested acquisition? Horacio and your forecast the capital and fiscal 'XX. selling so no venture so successful And in through your price is now? high that you

Matthew Calderone

I'm of rounding obviously, a Liberty. different don't M&A at remains question, from scale world for in but much your mission priority bring the more the tool out us. an and It's very our It Strategic To value interest of a environment. not a ability out for market place important question. Horacio X get investment of investments, we're different was be kind start. I'll political getting comment. scale. robust you to in a macroeconomic the the rate Thanks I place. much to thesis when we mean, and sure was put ago, less M&A Yes. want years risk. was venture that tend technology lot our to at to they

again, for the next we're exclusively, one. and Liberty the I looking absolutely do So acquisition would

And prosecuting. tuck-ins over We've next accommodate we're midsize the small sizable to significant billion billion got activity can $X XX still a that pipeline M&A of to amount of range the months. of a $X.X

billion flexibility think patient, the to disciplined target adjusted as remain can performance. we've capital a anticipated EBITDA our But slightly it than approach. XX for create in in really always, I just first in to of going additional us We're deploying $X.X And to the testament we shareholders. deployed lot while as over only months. that value investment meet gives thesis, the organic less a

I of So in a just any read It's change reflection not would where into we our are. strategy.

Operator

comes von Cowen. line question Cai Rumohr next from from of the Our

Cai Von Rumohr

Good quarter.

So Matt, you What mentioned and force billion $X.X the $XXX guys on CDC space that award you did of award? on booked you Thunderdome. $X.X billion million the billion the the book $X.X

Matthew Calderone

believe all incrementally Cai, the the said we in award be I award booked DMAC as and awarded. is Thunderdome I booked Yes. we I going space CDC, well. all to believe remarks, of the

there. So we only billion of $X.XX the booked $X.X billion

Cai Von Rumohr

near-term comment Got bookings we you out there? about more at it. big prospects? contracts task In can still And are looking orders? Or particular,

Matthew Calderone

It's to combination, environment quarter some these Cai. then predict uncertainty. can because always hard of know, slip creates and terms protest things in the you quarter as awards a by It's

Looking in awards don't historically we're couple quarter. happen. have next ahead, are a portfolio of significant next going recompete I months. large don't We the quarter not There have a or that stellar a to the think risk amount of may may XX in

shape LTM we're is from qualified talk individual year-over-year, a So the know, as more which is almost says really in our you quarter X.Xx. LTM good And and more pipeline, we of perspective. XX% about than each why this demand importantly, up

Horacio Rozanski

down. team chance color the going the our had after. not to little say clients actually work is slowing into Cai, to would give that, on core technology to a needs just to we're picture the talk for about and talk demand mission I accelerating, you I've about that

quarter, Matt significant on demand [Indiscernible] as predict it's strong. very disruption while bookings budget impossible said, the picture so is almost given any to And

Cai Von Rumohr

X.X book-to-bill. Well, last year, a you had

we strong QX better, particularly So that a this then very, opportunity it there Is little going weak is second And which got near zero was weak. very a to that better. look Or should could the QX? below norm this year. we be for we be very get clearly X, but that any quarter, bit

Horacio Rozanski

cycle. is because year, happen the always money the and fiscal second the strongest the Allen budgeting quarter way government the in the I first think that I'm I this think want -- the But color do last I'll Matt one. quarter sure quarter, the on for outlays think obligated is way just on of of this I of will all, start. to which through Booz --

will been case always So -- be. that continues that that the has to

less over of jobs As you've actually the quarters big rest when they're on predicated the awarded. the years, these because few seen will predictable get are last

a really in year. this pipeline. directly, I as take not and said, over last into there's process really It every -- in Matt that lot is is And year It $XX pipeline. would billion the translate changes year the

of to we could would quarter, like some certainly So to backlog those have necessary -- this hit this But we them way, we at would either grow. continue to. things the year,

to we have momentum We to have done. get and to that the people grow, . here continue the

Matthew Calderone

leading our at book-to-bill, measures, in look right? you as ever talked and by if almost is the not side, putting indicators good and a forward. about looking pipeline backlog we're been, proposal Cai, historical the just shape which backwards, the the as we've we Yes, demand but On

that ahead well. we've side, than the the the of On the first be -- quarter, X% in supply of the year, pace wanted And headcount of more XX%, to for which headcount really the at business staff end over our typically growth. of our us X% X% we're was puts managing client consulting to up the half

partial when lot for I both to to a in hours, XXXX time of there, us lost make we X-week it meaningful limited had a were We at the aggregate, scope time the And and billing which bottom line. XXXX $X.XX about the to was smaller up over of amount scale, did. remember, why to But we was and And assumption that But what shutdown a size, was you. a that's holidays, out which we think last $X.XX in right? in the in we're occurred in for. to at quantify just volatility that of X- cost built of shutdown preparing government that's this shutdown, there's said we

the assuming X So time we're this to impact will be that. Xx

again, assumption, we in raised top So in plus context and the adjusted government just shutdown that EPS where of a put our line X%, spot. X% EBITDA overall X% the guidance, we're great

Operator

Wells from Fargo. from Our line Matt [Operator comes next question Instructions] the Akers of

Unknown Analyst

[Indiscernible] Matt. on for is This Eric

you the September. focus running end wondering if Just off, box of maybe shifted kind around see that's of headcount with

other think know Do like how and shifts people many program. to lost? XXX it's able the you on to I like were how are work about retain and you many

Matthew Calderone

But this team them this doing in that impact XXX mission-critical even left more -- We remarks, And numbers than X% on have year. kept we activities. as X%. that We contract. at of for the small completely almost contract many said encouraged redeployed of by that said my absorbed, I'm mission-critical seeing we've X% just people Booz half had Yes, we wanted We're we about quarter. to the loss. to about and we we're Allen. prepared from said pulling the up, There's on work go really I to headcount contract

script, range. been our I historically, organic to why that's exceed X% to So we're X% objectives. in growth what to the we likely maintain need said the And that's

Unknown Analyst

the the I with going updated guess you Do that from Section XXX see impact IRS. from guidance any Okay. more on forward? one

Matthew Calderone

No.

Operator

back would to like this At the conference Rozanski for I time, over remarks. now turn to closing Horacio

Horacio Rozanski

I you thank here see resilience the ahead the of momentum questions also opportunities you, our all for are And are about of and investors. your being our Matt and for this we excited we for hope and Thank people, successfully morning. the business. all Gigi, and in and I clients that for conveyed for our how our both

how industry on lot call out and Booz artificial by me In from indulge is to transformative to our on good close a available called calling publication this our intelligence. like annual it's from is website, you'll to year now moment, If innovation experts I'd it AI, Allen centered which get our you for partners, and and Velocity, a harness year's ubiquity on for the Velocity, capabilities, this the fully of more. hear

you and we it, thank hope for again feedback. hear great you'll love joining, would And day. and reading your I note, that a have enjoy So on to

Operator

This concludes you for call. participating. conference today's Thank

now may disconnect. You

Booz Allen Hamilton Holding (BAH) 27 Oct 232024 Q2 Earnings call transcript