ACN - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Accenture First Quarter Fiscal 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, today's conference is being recorded. to conference like host, to now Ms. would turn over the our I Director Investor Head Park, and Angie Managing of Relations. Please go ahead.

Angie Park

Thank fiscal everyone, our you, for joining us thanks, operator, today first XXXX quarter announcement. earnings and on

just review operator Officer. of KC from to McClure, Officer; an news Head Julie On Director Relations. our We Chair we had issued the Angie and opportunity Park, mentioned, As Investor will you and Financial hope Managing release call, you've our today's short the Sweet, Chief and am ago. time hear Executive I Chief a

the Let call. the of including me a with first then XXXX. through fiscal quickly our outline positioning, for will for business will market our overview details, with the full metrics financial income brief on agenda statement you for an KC second Julie take provide provides before our year the the Julie today's outlook and results; quarter. operational balance key and update will quarter KC along begin sheet, some

We take end up call. wrap of the Julie at before will provides your the then a questions

materially Annual call. differ news These to risks filings. we SEC on but discuss those release set could Reports Form actual the known matters discussed are XX-Q forth in unknown today's to our uncertainties, results and as and other Report expressed will are to on of and on such, subject and including this those and and risks business not our Some XX-K limited Form outlook in and Quarterly including cause from call, uncertainties forward-looking, in factors this

site investors. measures our the accenture.com. appropriate release believe which non-GAAP certain of to GAAP Web section non-GAAP reference in at provide financial will metrics, where we today reconciliations call useful or Relations our for information include our of we We Investor news in During financial

Accenture call. to presented assumes conference no update this always, obligation information on the As

turn to me Now, Julie. the let over call

Julie Sweet

XXX,XXX thanking to people for your would everyone to Thank extraordinary joining us. around you commitment by work you, Angie, world for start I and our like and thank clients. the our

living to promise how reflect human Our results day ingenuity. are this on quarter the you purpose our every again, of technology and deliver

companies outstanding reflected As XX% turning their And of some clients are more We this as our diamond our as in to trusted are added diamonds XX XX all quarter. embrace our relationships. 'XX. the and clients give growth largest partner, to bringing of Diamond new XXX. compressed transformation, more FY total context, we to clients in us added

bookings billion, $XXX QX XX%. with EPS growth margin record had bookings XX operating also $XX.X over basis expanded million. And XX% points we of growth year-over-year We clients in of with XX adjusted with

an and commitment reflects of Senior XX,XXX creating all QX our than people, our the training vibrant digital around this While for and with deliver is XX back billion in learning, to million see with equality More the to to rapidly caring we new important our focus and and our digital that commitment security, in promotion that being and degree consulting congratulate time to anticipate ready side an are in professionally people partners and adding strategy Certainly operations, paths for which market at later. to X.X on in XXX you. unwavering pandemic strategy our were personally, believe value re-skill, show on we breadth we to in a for our our decades, allows the which tight and some is people in us to allowing a magnet shareholders, business with invested with reporting results. just a of career we our in digital would to in XXX our we stakeholders. way just of we X,XXX part $XXX part promoted through experience, and people success. business selecting both talent with unique of our companies, in to The more Managing strategic capabilities and imperative us clients, first diversity demand learning overall. serve promotes predicted partners. our their our they hours decisions we of our people, because are people communities of clear executed Directors and to the $X.X process. side XXXX in including value we about launched making have ready with our capabilities, And capabilities clients. technology value who it lead that that invest to create the be our We to a our every create critical talented And strong labor scale annual from our be per work when rotate growing our want and revenue Today industry people, is cloud the inclusion and person. to and leading And people, world's will I relationships Managing industry the progress is deep go an And quarter, the XX% and and new all XXX our and technology back in that our be in us technology interactive a create value transformation. for our of our to goal to to reflected market, value. essential business. talented Director, with by a value acquisitions, clients our business appointments and we world KC, million approximately individuals Companies cases directions XX,XXX hit, in us extraordinary completed for continue hours we new with commitment across And making QX. over for

KC McClure

We of with $XX.X bookings pleased results all billion, record with our exceeded our new a thanks which billion. Holidays more on join and the for you, were taking today's very to Happy overall first time than Julie. quarter, consulting in bookings by to at previous you, setting records $X the Thank call. exceeding expectations, the us

full Our pricing results saw business, EPS the the across we revenue reflected many industry our revenue our and parts significantly of we in strength and in our first are improved all dimensions groups. business. of see on And markets, all growth and outlook. of market, quarter increasing double-digit strong results the services demand year we our Based

$XXX currency, guided based range, summarize digits. all over more and me with over industries across the of all more above with than let quarter. in markets, grew double highlights few QX million billion delivery a our Now industry groups broad growing XX% the year, and local than increasing $X.X of XX Revenues services last

to for points. Operating publicly our basket an with -- margin extend We than XX.X% traded growth leadership increase estimate which be we of an more of to Xx the XX companies. continue the position to our refers with market quarter, basis of increase

expansion to significant continue We people, EPS our including drive results. We in over business, up fiscal acquisitions. in making investments 'XX delivered margin adjusted XX% our while strong of $X.XX, very

cash million and dividends. billion of free repurchases shareholders delivered $XXX $X.X we and through return Finally, flow to

acquisitions continue approximately We billion those new level With in to details, the let approximately bookings. starting high this me some turn of also with acquisitions, fiscal invest we invested in comments, expect and year. $X.X to billion $X to

XX $XX.X growth at U.S than previous representing record of were bookings $XXX million and dollars, X.X. in of record. an a X.X. book-to-bill for with Outsourcing $XXX clients were our a billion the of record overall bookings billion XX% Consulting bookings $X.X were We this X.X. quarter, billion pleased With very were higher with $X.X book-to-bill bookings book-to-bill which New at with over reflected with million. bookings our quarter, were

well our bookings service geographic growth and markets operations, technology U.S as dimensions, All as in double-digit delivered of consulting, our dollars. services strategy strong

for the quarter to in XX% now $XX were in local and at revenues. local Consulting in increase grew in operations double-digit. U.S and Turning dollars were billion, XX% and U.S Revenues XX% currency. strategy dollars closer revenues XX% billion, for Taking strong all dimension, and billion, were a $X.X and service a very quarter the up consulting, up U.S local currency. Outsourcing currency. services technology revenues in dollars $X.X our look

Turning America, and platforms, travel double-digit double-digit services. consumer currency, markets. retail markets. In led and In service, and and consumer growth in XX% Europe, capital revenues public by to was growth software driven growth currency, local goods, in retail revenue by goods, industrial XX% local services, North our in travel banking geographic grew and and

growth double-digit Italy. delivered public and growth Japan country countries, driven Germany, France Looking growth we growth XX% currency, service. goods, and in markets, double-digit led services, was by markets perspective, double-digit banking a Europe local and Australia. In U.K., closer travel markets to and capital retail in growth growth by consumer by driven in and From was revenue in

expenses administrative marketing compared margin, income were year. with compared operating quarter Moving quarter to points income a with up margin last was for the X.X% reflecting for year. same billion last last for Gross Sales X.X% $X.X basis quarter first X.X% the XX.X%, first XX.X% the in compared for the compared for was statement. the and year. the expense period last and same quarter XX.X% Operating down the was with year. XX.X% General quarter, XX QX

reflect following as continue, impacts last tax in comparisons increased EPS we our gain which investment recognized reminder, rates and results. a adjusted these I The Before $X.XX. year, and impacted an QX by exclude

XX.X% outstanding operating quarter cash compared for adjusted XX the cash $XXX compared of tax first earnings resulting of with XX the share and effective compared XX.X% for and Days of to $X.XX Free first were of last last $X.XX in by were Our adjusted additions XX $XXX from first was effective per an of last the million. service was property the days, quarter rate quarter diluted year. net EPS Diluted for of year. rate equipment in million, quarter generated last tax $XXX with year. the days quarter million, quarter flow activities days

to $X.X at $XXX in cash or And billion first average a February $XXX.XX million our $X.XX price per share over XX regards was had repurchased objective with $XXX last $X.X per to $X.XX XX, for August share to at November, of With cash in Board approximately of be of shares a dividend November billion declared over of share increase compared paid quarter, on November of year. our dividend increase ongoing XX, shareholders, a we billion million an cash X.X Our share. we XX% year. a per XX% to balance $X.X total at the we redeemed a quarterly At return repurchase represents This XX. last Directors million. cash paid authority quarterly remaining. of for Also

QX pleased So we results 'XX. start in strong very are a and summary, to very in with off we FY our are

me turn Now, let Julie. it to back

Julie Sweet

core technology globe, single the to by underpinned cloud the Thank grow you, XX% digital with compressed More to we and operate change, they and of digital find new revenue new disrupting expect moving transformation expected demand how driver build and and ways across technology and to would transform compete growth. and use accelerating, Starting be creating and to you are embracing for as continues the to KC. are environment, industries as opportunities. companies biggest their

We growth broad strategic our demand Applied and services are double-digit Industry across all Cloud, and markets, all Management. industries Security seeing Interactive, Change Intelligent Platform Intelligence, based priorities, Intelligent with Services, Operations, including X, growth Transformational across

life. this bring me demand to Let

the SaaS is is hybrid to leading key continuum and edge, public increasingly platforms of globe enabler along the transformation cloud and to data. across move compressed occurring the from the with First, cloud and to across the convergence the the

reinvested of improved solutions and a accelerate state-of-the-art platforms, growth chain. increase and and For the to to real warranty supply XX% and and cloud, with digital to changes, regulatory strategic working We a and to use data to system migrate modernize academic help increased next. cloud example, by teams. value its up with cloud, a We're to supplier all leading modernize over and and adapt also satisfaction tires fund save we to returns, in helping all threats, medical and with the and proactively resilience systems clinical next York be rescale potential and to IT data already optimization inventory, system customer increase a global systems, a largest its stable, years, programs helped its revenue non-clinical are business City's migrating to created secure to System, millions shift transform, X track savings innovative in information infrastructure have clinical the sales, based time to Mount mobility can cost New prevent Sinai detect Health together that

helping industry solutions deep find and Our helping customers. growth their is expertise path companies new to and

analytics advanced will enable a Platform, extract leading collaborating example, Accenture technology Automation its use other increase and business and to For to Opay deliver Group customer myWizard reduce with employee investments. Finnish enhanced experiences. Opay, from adopt greater the are Financial and agility, emerging we automation, the company Intelligent to value technologies cost, to

specializes an utilities reduce operating have make critical helping free commitment to our Dutch to We IT industries services providers XX%, services across scale. to I'm up resources to to acquire transition are to to company sourcing see and game and working platform focused forward that innovations we signed them a and Zestgroup, for and services that last and with pleased as and sustainability decisions we Germany these with zero like achieve to is cloud. environmentally the welcoming and on responsive energy energy TUGA, clients and energy from operate customers net sources. energy in to provider stay will a speed clients agendas. our help look a helping move smart at leading clients XXX working move transition together changing reliable. Services create renewables costs employees metering, time in action our accelerate It agreement up market by meter-to-cash Sustainability We carbon. clean quarter, to are in conscious talked at We other about help announce And

and operator analysis from based digital engineering with leader acquisition to traditional our security skills. platform simulation the and help through daily we're excited improve model and by the wireless of uses completed industry deep frontier the of transform to the were agile technology enter We to way next We to already. and help seeing lifecycle. power and the are engineering Industry We're design combination a to that also working development assessment a from platform an continue combining their global our all X. operations umlaut to network more working product risk with transform security communications clients Together a our of American have

the Of of technology, customers industry AI Interactive is capture their with unique our expertise. at course, new helping growth clients and with agenda data, creativity, of client's every heart our growth and is combination

with sustainable digital growth. and to group example, Versace, Limited, translate customer consisting luxury behaviors luxury rich brands global in-store that shopping Choo our Capri a and the are global Holdings Michael to digital experience For applying its Jimmy we help of Kors, fashion capabilities iconic a aligns shifting experience accelerate

German we're to along commerce pave As a strategic VW helping the entire for sustainable motor way Audi manufacturer, partner growth with journey. buying and Volkswagen precise Group, the vehicle a through continuous experiences and car rich

power for against provide access deliver by solutions as with the platform growth digital We combining all and the like to of in demand and cyber systems company Security were help against one our to lower their reduce critical their AI selected market to right insurance, leader accelerate analytics analytics loans revenue proud [ph] cyber logistics a are technologies. the [ph] power experiences seek and innovative all two-thirds advanced Cybersecurity commerce expanded while Department Security's the that products predictive new course improve provide We become today's launch be CLO, Trato them a defending ecosystem. clients. will through enhance health of also We're by customers to their well Latin experiences an federal, options to campaigns. And new by employed U.S., helping development advisor all as by Infrastructure civilian VLI, to Security edge Homeland digital our to is to clients combining services in time truckers experience. of profitable botnets Brazilian stop Agency, for business accelerate right cloud, in growth, Homeland branch Department to of executive of enables create AI. working to and critical attacks make more data care, We're product and increasing a time the its risk products by the digital CISA costs, and enhancing to logistics electronic services will see platforms an protect ransomware, shop easier cutting and We freight the for America and to the with offering security to and it malware as customers. competitive payments products, America's to more the such This migrating which at self threats,

Even as technology changes companies undergo compressed exponential transformation, continue.

and and technologies We emerging are investing to future take anticipate are the advantage to clients to with innovate compete our we win. of and working

for powered results quickly and into can so is Accenture clients. of R&D Our by research Ventures part across business we real our extends translate Labs and that our every

shaping are emerging the center, for enable for explore we fans working value working leveraging which applications how ESPN made Dollar digital clients. Kong the has platform with We've to at while explore can integrated innovation edge in been supply to language, and modeling U.S ESPN participant blockchain the Hong ways across currency partnering with the For From new technology. early an extended to Smart in digital with to And example, technologies in the identity, of settlement innovator years chain asset the our in burst Exchanges enterprise, early Clearing markets, Limited new now bank the eye, experience using key a investments been applying we've creating Foundation to reality. metaverse public are build Digital a in recently sports central a we've technologies into with innovation Contract. digital and the globe, financial

at deploying first. innovate In on cutting fact, often we by technologies Accenture edge them

have including virtual meeting created onboarding largest for enterprise reality we immersive rooms and proud one collaborative and are XX,XXX what experiences. learning, to call Accenture the and Floor and the deploying are campus Nth a have Park, to metaverse headsets We virtual over

in world. with digital immersive and learning a our connection experiences provide environments people human an VR Our

to reporting and World to trust International a new website. how we us Project, share XXX TCFD and continuing in GRI on working We Forum the you'll Standards our progress, client clients With forays And and the this builds we all our core framework, find for Carbon takes make our and in metaverse Economic you, is we're shared CDP we digital products degree strategy, well how tokens, shape. value with stakeholders. our operate early to measure Many of value. we examples present success. our standards, to are Global new is and experience, the helps by new Council SASB, one that the we tool, new our additional We've enabled UNGC report Accenture these It to believe explore reality metaverse new measuring conduct against reporting comprehensive responding are Force values goal and their to way commerce Disclosure experiences degree into growth their Climate-related and the how on the or WEF, available principles help reflect our doing. our and also reflects as culture XX goal of Sustainability reporting create this XXX digital Disclosures, with Financial interests through three enabled the non-fungible NFTs, by IBC because transparency shape to while the all ESG ways metrics, virtual ESG to our which our our progress. our achieving This place, Initiative Task today, also Board, Back success expanded Business are Reporting data goal all Accounting purpose, proud by KC. more

KC McClure

Julie. Thanks,

to Now, our outlook. turn let me business

range currency. an quarter of billion XX% will second expect assumes be about the estimated revenues the X% to we fiscal and of to impact negative growth This $XX.X to the local 'XX reflects quarter billion. to in fiscal in $XX.XX XX% 'XX, compared second FX be the of For

X% fiscal For be few rates in last 'XX. the a will the trending the now fiscal on weeks, dollars year 'XX, on we have how compared U.S expect to of full approximately been FX based the over negative impact result

to range we an assume in fiscal fiscal which full inorganic the of to currency continued 'XX, to XX% of revenue the 'XX, local in growth expect For contribution now X%. our XX% be over

continue expect we XX basis to fiscal 'XX to be XX.X% XX.X%, over to XX 'XX year For to point fiscal operating margin, a expansion results.

continue the tax rate annual We XX.X% fiscal in XX% be in tax This adjusted of XX%. of to range expect to 'XX. effective compares an to rate to effective our

for share, to or our now $XX.XX over XX% For be XX% growth earnings 'XX we adjusted year 'XX fiscal of per fiscal to results. the expect range EPS full in diluted to $XX.XX

flow For range to property the flow approximately 'XX, and be free we the the cash of be $X.X be to of billion, billion billion. and $XXX billion $X.X full to fiscal million now $X.X equipment operating cash in range additions $X.X to in expect to

to to X.X. ratio reflect free flow free cash net flow very a continues to of Our strong cash guidance income X.X

as least Finally, to as let's it we $X.X take questions. open to to Angie? ask to through participants the a possible as portion each that and you continue shareholders. billion your those dividends to question. to we would call? committed of ask and KC. that, you substantial share expect Thanks, a instructions at would repurchases many up, follow-up returning Angie to our one keep provide can for remain the on return Operator, cash we With Park question allow so I

Operator

go first Tien-tsin ahead. Of line Instructions] the Please And the Huang from from JPMorgan. comes course. of [Operator question

Tien-tsin Huang

[technical so here in you growth $XXX really much. Thank remarkable difficulty] Yes, million.

of you difficulty] on I the with difficulty] what the … difficulty] compressed [technical number to more growth [technical think that's ask and surprise got [technical transformation largest

Julie Sweet

but think it. a I you, I think we we having trouble I Hi, little were hearing -- Tien-tsin, are got

You delivery our -- want are over over what to drove the million? know delivery $XXX

Tien-tsin Huang

it. You got

KC McClure

that's I what thought. Okay,

all, first you. morning of So good to

all delivery that our want you when you start the that to industries across bookings. terms our everyone really based when our services. our say revenue And overall really I It quarter, better. would all of of with was markets, is So back, in of and did over peel production broad -- this first thing you

have we So our based broad delivery over also bookings. in

also well, through bookings on all over help deals us more demand extra to clients And $XXX to have flowing from midsize bookings our in importantly, you coming the we the the able larger production, so and down did It that across, broad growth this we the with that our drive production, we million. see demand, bookings, was meet revenue really And XX smaller way based bookings. to that people were work so the deals. had able And And then Tien-tsin. here really because on revenue.

we a So that obviously, the of quarter. pleased delivery were second very into really big with base then first that And why the see revenue in part, quarter, increase. overall is we and coming broad the our full year

Tien-tsin Huang

difficulty] Is it. XXX bigger XXX difficulty] just Thanks in difficulty] follow-up [technical degree? [technical Got hear lot becomes the me of here. difficulty]. difficulty] [technical a maybe hope My Julie this difficulty] you for care been okay. difficulty] of [technical [Technical [technical about pushing [technical a factor that degree can part hearing that

Julie Sweet

think it's And that no, are great a couple Yes, of there's a going I question, things Tien-tsin. on.

your So sustainability, we the understand position example. clients for for on asking our more proposals, first to of absolutely requests all, of see in

at very -- -- much in XX the least this, about formally for clients, it we’re been asking that our But last also they we they're in RFPs. we're and the are So months important a lot focused. conversations we've that see seen we've trend more with having it's that

to we about so when important it's them. And talk it,

action. now, degree it a having it, so, we already for you We that right. this And strategy based to the do when look saying, year the achieve over think were this. the is how biggest were conversations launch clients XXX launched value we have move we ago world I from was with issues, on in because around we commitment And our clients, to

with things world be work our to equally are doing centers eventually and the software And there's on of also so matters clients and part green much so want matters of more partner are to that to IT XX% them, it them IT the around that is, sustainable have right? -- committed, able to software, using that companies like development. renewable It we'll -- energy, that we're therefore

We also And of services trying see which and so a value. we see examples they're formally. sustainability see definitely our informally. it the some it's heard it terms important, it is We today. in buyer why to of you So are what do,

Tien-tsin Huang

excellent. That's Thank you, guys.

Julie Sweet

Thanks.

KC McClure

Thanks.

Operator

our Bryan line with next of Cowen. go Bergin ahead. from question the comes And Please

Bryan Bergin

Hi, morning. you. Thank good

market So uptick share curious the rates you in win about of or there that has an in this if driving I'm level rates seen market quarters, is growth? gains. with you've the overall talk consistent win often inflection demand over significant last been the few a in

Julie Sweet

Bryan. latter. It's the morning, Good

So And after good let feel good me we start When But felt record seen peel about all and I'll and with good we've bookings what year, bookings will the thought coming And consistent win quarter. saw quarter, our Even in quarter. just come our to that's we -- the bookings really we across about saw pipeline, that quarter. our into statement the we really for the back through. lower fourth maybe talked were pipeline. we bookings -- seasonably are first that, you services. even record a this about we in the obviously, rate. really with But markets I say even a

Bryan Bergin

next on my headcount million path a we Okay. seem a hit And to so would years here over the so. think you're it people X follow-up, then about progression, when or

going to talk can of get So how you do had just gotten do about global strong were resources. as even you've what to larger, you what you thinking enable across so are as to you've you to And need about larger? differently execution many the more

Julie Sweet

a Sure. Bryan. question, That's great

One I the Let is business. on. manage there's focus three how take we And that. me things to think

scale. on back next time, March take to we to was focused model, to we reasons one X, when gen reorganized the us geographies just announced at XXXX said So enable growth to our you we of the explicit

fundamentally be to driven but by and that's so be a And you enabled business. to people because us to able also of need still people. a It's lot we're assets, close clients

really the we're to into to later, it more a scaling. X at by But agility And where agile. first we allowed has which also, it and been structure time. the be change place be we it's right, created you'll Accenture that huge in now, addition that Cloud are remember, us same so months And our the put we Like where scaling, helps simplifying us success.

So in we business perspective, first, of an it's manage our having and simplified business. -- how organizational terms our

is The piece the second focus experience. on employee

Our at is of see lower that -- And of the the we And on our drive attrition are again people, and we caring executive India, last above. and focus is our the our our professionally. you'll at attrition, how culture. is leadership how And significantly important personally very And the it one in is able of end to of part and which scale have our piece, a is very believe, for and we this culture. essentials our because in we pyramid lower people. much eight

the in notice You script driving what that launched our we're metaverse talked today. That's we how about culture. another our of we've way and

constantly are innovating. innovative We --

many experiences which experience, So builds world as people in where can connects a immersive people, right, we connections. which have this physical today, created

then you're And and how how staying develop so are We to our them omni focus our the and the our build close the we about leadership clients, and being manage connections scaling. culture. constantly connection and smart it when and absolutely critical promote innovating on people we and to call

Bryan Bergin

you. Thank

Julie Sweet

Okay.

Operator

Lisa And Ellis from we of do the go ahead. Please question with have a line MoffettNathanson.

Lisa Ellis

so, Because Can to your And it Thanks you morning. you. there call taking well Good are able of inflation to a affecting cost might Thank to how inflation? if you're about Specifically, clients? revenues? that out A inflation my macro couple me. tailwind on labor other from you're seeing through factors is you questions pass question. -- Hi. is for talk as on business?

KC McClure

-- maybe, in, it there's with wage Yes, clients. start our maybe increase maybe with in terms -- I'll Lisa we'll take then add you But I'll and we're start maybe if inflation, from and from Julie, what a of can seeing perspective.

obvious is the across clients state all market. industries to minds, So, globe, in it's all on wage it's tight occurring a are experiencing our and inflation all and labor the our

inflation as in we really continue us by skills, that it and for geographies will we to varies for have expect certain our wages, we and it to continue. to business So the that market increases in relates wage see for

doing. quarter are costs. more that from out, It's thing We're that doing? but work pointed to pricing the pricing focused do. we this with that on Lisa, different have pleased So we what not our one clients so other to very record what had are absorb other our on we higher And we were we improved bookings, labor

to one that our to as and some And that time P&L, point of lead to so operating basis to see. we that points QX, the to improved result contraction we going out it's It compensation margin expand us XX expect margin through going for although to full in want year. just flow I pricing just for things the even to higher the continue to by that's XX some take in for may

what means our I of just on over to And she's us, thoughts for that's own as what Julie bit to mean, it hand talking I'll a P&L. give with glimpse on maybe it run clients. So thinking a we our and some

Julie Sweet

great. Yes,

products. And so, we're managing There's wage it's -- inflation, all obviously different there's look, aspects, on inflation.

terms us, being be And how in XXXX going many industries, develop in about industry is what and a to like that. pass inflation they're pricing, uncertainty because to cost the able improved laser-focused really right, it efficiencies clients the is growth, a of of on while takes lot to because or on and is, they right. can't we It do for see varies by extent impact. of -- doing the there's so our And

well, And efficiently. drive helping of the so also it things, that demand but for is both as helping do them some grow,

Lisa Ellis

follow-up maybe And Terrific. then for Tien-tsin's follow-up, question. on a just Thank you. my

demand level time. a you handle the clearly, good even on of very seeing guys sort all So of have you're it the surprised is

some you marketplace. in about out what's give happening the if like color senses can So what your what's around just happening,

across very industries based You geographies. across it's broad said

of of of And narrative from demand? driving dramatic happening so -- your differently Thank than what's just perspective, what's even sense a expected maybe sort in terms in X increase months ago or you. you differently that's

Julie Sweet

Sure.

the big a is think it aspect of I embracing speed. for need

to clients we're say, pull about take at you okay, of to on had faster. Monday we journey, go on up wouldn’t some to that a this that think companies to and just I do speaking time calls It's with, call been than more the to who as so -- so their faster, do we've can same transformation, couple willingness and recently also harder it, faster. they're got have forward I we and and a I We've And to doing go doing platform, fast, this, speak, going the impact need past time cloud me see in right. so ahead. thought X. go continuing faster. go and really the what there's And can And Wave are for just the I some see more to a week, but of data they into even okay, the cloud working replatform, more it, seeing I company CEO compressed was side one I even so they're point, major of you to as get of go talking companies are come we we're only where getting kind can now I now those seeing his because want faster, we that

the seen just to this steps demand. is, are point transformation opportunities helping this the we of compressed was compressed it expand. predicted going think as is about And first talked to third be so, the the sort next really remember, industries, first is And the the clients. the in But of to the transformation, speed, see embracing by in of it's a been more we And round you begin it power being to round. what of that continue we cloud, is do only that and change and -- of about drive

do need for And it's and of think replatforming around so competitively. I speed a the the mostly of recognition value

Lisa Ellis

and happy you holidays. Thank Terrific.

Julie Sweet

holidays. Happy

Operator

question of Kupferberg have ahead. from line Bank And Jason Please we with do of the America. go a

Jason Kupferberg

Maybe Happy a some these to Thanks, questions. holidays. on numbers. line little follow-up bit top guys. on more Congrats of these

pipeline You QX strong robust the still very mentioned remains after the bookings.

So how in to levels? should outsourcing we the relative quarter be bookings consulting QX growth about thinking and second both

KC McClure

pipeline for year. Holidays Thanks, of the the feel you and do the about We for Jason, to our -- and quarter remainder good too. second Happy

be bookings lumpy. can So, but

would nothing I good. project within really other there's of outsourcing both the consulting, that we our But So for the across against services to, Jason. obviously do feel and all those one markets QX, or and and way

Jason Kupferberg

Okay.

got it. it. Got Okay,

also, will backlog I'm been and Thanks, to outsourcing And lumpiness. sizes any wondering project for on revenue. into for comment to revenue if conversion fiscal we just 'XX? of then there's average anything that noticeable change account some regarding want have So full cycles may growth year you And in of or consulting again. in updated assumptions

Julie Sweet

Sure.

conversion. the really change it mean, anything depends durations probably what full service of And in the Jason, seeing we're or no change, of seeing terms outsourcing double even work I there's strong on growth. work on then we selling. comment year, all see. just year. in in digits, to the mix we're individual obviously, the the duration than at saw, there's And what that within we every that type those just for the of So Consulting, I'll mixes. of a we're beginning no now, double-digit stronger of type But or

Julie Sweet

delivering are obviously, Yes, reminding that small deals and our when were earlier, what in across right. it's over probably exceeded said And also revenue, right, KC quarter expectations sizes. all worth

really it -- it's based. So broad is

Jason Kupferberg

again, guys. Okay, appreciate all that. Thanks,

KC McClure

Sure.

Operator

DeepDive we from Please ahead. Equity with Research. question a the And Bourgeois go have Rod line do of

Rod Bourgeois

et more like specific maybe that Automation, and providing getting have a most this the uptick offering the the on go showing color offerings? beyond again little newer everything results could can of Industry good weigh is more on uptick is be than I offerings offerings, relative -- like If there that guys. if lift is you the from just Thanks. the certain Hey, know color wave? you're it'd amount others? it to I'd X, newer the of the a here. which question. your you I Cloud, and newer one that's mean give against Congrats your Or you're are cetera, could comment helpful comment getting on growth you offerings

KC McClure

Sure. little double-digit all like you'll But on I'll hand very Security, of add over mean maybe you to what or Cloud, Thanks, all I they're growth. give she'd bit numbers is strong more Rod. anything and on they're to Interactive some it at X, a color, Industry the scale, to. see strong Julie

other another of individually. there's the really our out strategic not mentioned so, commentary Julie also And I of call. within her would list what the at beginning priorities call

So anything color? go I in won't through want terms add But be Julie of this redundant you to is and there additional again.

Julie Sweet

sure. have scale, mean, you right. of to all, remember first Well, just I so

So First Accenture was Cloud business. a $XX billion

billion right. $XX overall, is business billion business cloud down $XX Our business, is

last So that's what we announced quarter.

growth dollars, is strategic across big And so adding of when priorities. cloud obviously double-digit is each but the very strong,

it then a the the scale. the and would the to driver enabler. you this, it about look at is AI the the But, Because obviously, be will enabler, is is different So look, right? cloud, Think be differentiator for cloud clients. cloud have our data

things script saw use a the saw so in together, many And gave to today. data, able of you I that the got many, handle that to be that bringing And in to so you've to the AI. of and we your then really the get right, examples got many right, examples, cloud, these you get on

cloud, And migration [ph] so the SaaS through first products. of the both big step in replatforming and is, course,

then have across that goes it's I you mental So model, of think that organization. the if kind just and helpful

Rod Bourgeois

Thanks. explained. Well

Angie Park

question. Next

Operator

with And Togut ISI. a we have Please question go from Evercore David ahead.

David Togut

sustainability innings this Interactive? I'd Can compressed superior the to the on congrats transformation. ask proof of us transformation, Cloud you're largest the of give points results. like some especially First practices of you still and morning, some that these about and Good early in digital your like in

Julie Sweet

Sure.

right. So a few things,

about are their every much on about base XX% quarter their So at on platforms really is sort we Once the you and compressed the get XX%. -- you still of to and SAP right? moving part kind that's they're And see own to do of behind, a at leapfroggers So you transformation. cloud, working look like wave, build of bottom have wave where leaders third right, you around of from still to of technically, installed that research, having you The to of a you've are lot Oracle, than at we maybe data. what right? performing They're if that last waves. those that well compressed right? at company leaders look organization. to about leapfroggers. a average you we do cloud shared doing XX% just are just -- digital cloud, the compressed have you are But if cloud, terms this is moved all So core, and sort -- right. on percentages transformation, and look better lots moved, really our below your only the a of those Then that's got coming we what are and little the where these move still we more you estimate see the bit itself, XX%-ish, of workloads of if the about in And are talked look transformation with

to a to into talk re-platform, So, lot right? to will you partner. ahead, this to to their right. clients it, people able get accelerated, get your we up Once continue in years under be -- then much. of a data journey. only our see move, lot hard control, you as to really multiyear that it hard transformation hard will we're the and about really that. being there's months. for of opens then it's I a be thinking, work It And and of and And But do do That's tell is so pandemic privileged really

David Togut

Thanks that. for

in I mean, I X do supply Just supply globe? will got of Industry problems with terms of as -- comment as on huge supply this how last a are quick you the chain problems business? around you long follow-up, could chain mean, currently. the clearly, growth the you innings where we've of look you think the

Julie Sweet

been the longer time, always term like ports -- look, all up but there's are the Because, not, talk fundamental immediate with sort of there's has cost issues in how of most shifts build our clients There's of do kind from the going supply that's chain problems you issues, that terms how Well, the do to world, the we in about snuff of right? right? resilience, around the which the moving -- on, resilience. get to markets you

I come work is important, just really some like have I Yonder But only it's chain kind think always year. new go The to platforms where of online, we And Blue the or -- so, multi were. of newer Luminate back supply technologies the SAP. of

years, last the couple As supply chain of for work in right.

the the just they're get to so starting momentum And really implementation. and

the would early a it Gartner so very, directors and I That's a frontier. supply the XX% said transformation still. it's is big had biggest the of very survey very believe focus. opportunity. we're work innings innings we the It's early why same think And next XX%, call manufacturing. very, chain mean, I say I that digital with or in But

David Togut

Thank you. Happy holidays.

Julie Sweet

Happy holidays.

Operator

from comes line ahead. the next Friedman our question And Susquehanna of Jamie with go Please

Jamie Friedman

just the what did, are travel morning. Good it. missed about -- if point? at to Good And they apologize, fiscal 'XX way you for I was don't I here. finish Hi. this think yet. I oh, year. terms Nice I work anyone But travel contemplating KC, if asked of in

KC McClure

had change Jamie, the we to year. on at travel, beginning no the of that the assumptions it's

the again travel, an which from to in continues for you there's revenue we travel of in our to have So reimbursable changes, And revenue travel, know. the no components back estimate. assumed. continue travel, to at we'll to don't And if expenses let it then of year, that year of be and guidance beginning the half two difficult forecasted have outside we terms to contract the our travel clients, of accurately uptick in

Jamie Friedman

last Are clients? know say do or IT then those And than either a those Julie degree? calendar? make of rising it the any early but KC, it budgets to I lot that. Is 'XX have you time, was your your pace calendar different for what Thanks view on weather own you'll for --

KC McClure

I budgets are mean, when getting of is kind the this that say just finalized. would I

much have is, is is get they into next So our January. insight guidance finalized quarter strong which reflected because we're in But we'll continued seeing more demand. what

Jamie Friedman

Got much. very it. Thank you

Angie Park

the Julie Operator, call. then Right. more have question. for up And time we one will wrap

Operator

go Of Bryan course. And line Please that the ahead. last question of from Deutsche Keane then with Bank. comes

Bryan Keane

holidays. Happy guys. Hi,

did fiscal I the all of XX first it adds? diamond you surprise in ask the in jump was, to XX The year. client and question was I quarter, think want last

a Accenture sales clients? are specifically already people to larger larger trying grab your think just of you to even working you environment not, is that the you're knocking to that So clients for those to something function is number get that Or door, be guys? would sense force a they're demand just clients just is doing that with and down continue the with diamond would these you add the of

Julie Sweet

faster. because level about builds right? Yes, this that clients as a year. first we function the we've the function million the taking to of we've change compressed and right, have it's see first bookings where continue change, of do need clients that how more trend, go a to really had recognize that's $XXX X what do, months of to after they more been fiscal more it's bookings. they about, much It's that months talking on pandemic, from X in that been talking And And what we over transformation, clients really building of

So that's really we function. what see is the

Bryan Keane

tougher imply versus much rate for be that half. a comps? And Can the for looking the back just think, it in a back XQ was Got then growth, about Got the KC, for of does would back constant 'XX? it. currency just Is And to the then that at talk I different it. when I above what XX%. number the quarter. conservatism Obviously, half guess, for XX% growth you half street the revenue numbers expectations on the guide, some year. obviously the for XX%

KC McClure

half year strong back the guidance of low half back and organic the at that business the continuing back the really first it's implies end very in range, the our year, the end half half of the across build still of and -- overall. implies that year. the very double What coming of the is our in upper Sure. also year, digits of in of it's which of a growth the half the strong And back out

Bryan Keane

specific function demand nothing of just any half, it's the call out the in a weakness to back in lays how terms of But you but see out?

KC McClure

Correct.

Bryan Keane

Holidays much, again. Got and Happy it. Thanks so

KC McClure

you. Same to

Julie Sweet

Bryan. Thanks,

Okay.

I that our think was last question.

continued thanks really to for we of earn it. appreciate day for it our really across shareholders people So again thank thank every and joining the your trust. globe. work call. today's on And us you We incredible And all you to to our

safe, all healthy season. to a best So for and wishes holiday joyful

Operator

at ladies gentlemen, March today's XX will available after today through replay And and be conference A.M. for Eastern midnight. XX

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Accenture (ACN) 16 Dec 212022 Q1 Earnings call transcript