Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, thank you for standing by. Good morning, and welcome to AgileThought’s First Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour after the end of the call through August 3, 2023.

to Head call of like Franco, to now company's the Investor would turn over the Mariana I Relations.

Mariana Franco

Good joining day call. AgileThought’s for first quarter and XXXX earnings thank you conference

Officer; Senderos, Singh, Amit Financial Officer. and Manuel Officer; Chief are today Chief Revenue speakers Chief Our Executive Eric Purdum, and Chairman

statements. Before allow some be outlook, financial and and remind answers to me statements SEC. you the the may some of Such and we on our our to filings other in forward-looking and business your subject begin, of considered questions as comments with uncertainties release call the to the that today, are including the earnings company's risks discussed

also Except measures, obligation in to reflect sensitive which that or content we that way today, only remarks information is as this Today's to to and the revise peers law, any AgileThought will occur circumstances to income, accurate or XXXX. operating industry. of references adjusted required disclaims easiest compare AgileThought financial this publicly contains to after is performance as The by of update internally our include any non-GAAP time information the as track events call. XX, call how such May

can through financial webcast reconciliation AgileThought’s financial including for call Investor find conference between earnings website copy Additional also information, press This a earnings via release. provided information Relations information ir.agilethought.com, to non-GAAP in GAAP is release. associated of available you where the will replay our at be

Manuel like to Senderos, over turn our now the CEO. to I'd call

Manuel Senderos

the the of of quarter to today X.X% decline We pleasure everyone decline quarter morning, from us. of Good sequential is joining a year-over-year representing to work be $XX.X first a X.X%. finished our results with Mariana. a XXXX. thanks first here revenues to you of and and with million, for Thanks, and talk about It

a couple sales newly impacted also the March, quarter uncertainty market delayed of this by is was partially of members. half of months. uncertainty slightly by hired which our the some team in market second This projects in the delaying Growth beginning ramp-up

remember, you we at year, the our might team of almost As sales the XX%. by beginning increased

the that several under have to are Eric not also CRO, the new exiting accounts margins. grow to small actively gross have addition, a new of started do materially, our Purdum, potential In burden leadership huge SG&A and our but we

and to the an During points small XXX XX.X%, non-core year-over-year. are of first quality performing our of margins exit and before, our from been was increase the have due because quarter, basis work to of margin our gross businesses Gross also, better than of we accelerated discussed accounts expected clients. delivering

to mentioned year-over-year steady that strategy our our As have strong digital efforts earnings AgileThought improvement, revenue our previous to very X.X% clients profit become is important increased on growth million-plus gross Because and industry-leading part clients calls, sequentially. gross towards at of we work top line $XX focus annual priority X.X% potential the margin on a to and levels. the take of

half did deal expect witness a as broader as now we challenging stronger volatility and to half of second we to are across in slightly our which again, year. due activity continues That up said, industry impact macro witnessed the in an March environment. the back of the we well, other second I the pick witnessing much following demand banking vertical, verticals the environment, second starting On We in in services volatility mentioned, financial sector, quarter. the the

save also helps helps transformation more them still them competitive for revenue the across Digital and companies makes that businesses a is cost priority drive industries. growth,

our been have sales last about During talked I investing structure. call, our strengthen earnings we how to

vision generation me, by team the growth new experience, is Chief will top in efforts. out market and reporting our Revenue ensuring customer make we planned. front Eric's digital opportunity to Officer. the directly I'm we sales hiring members of to demand sure our have most market-leading by innovative and and deliver now customer-centric bring huge Eric Eric line our the as new appointing approach finally, First, transformation of Purdum, leadership each to sales us leading and

Now focus accounts that the growth. on will in the become we ready and pieces accounts structure, our carefully team structure customers place strong continue have keep large disciplined a to foundation with in that our industry-leading to have sales can approach guide on focus delivery are those people new to and and AgileThought's all we margins. Eric's

in established logos opportunities the During and new some more first added four several our we opened clients. quarter new of XXXX, of

logos, is it continue growth see will in for clients. to we exciting our much of have but add We still to also the how most right space logos,

a wealth years. trajectory. XX which projects on the is good businesses of in small eight the our is A a vertical, one area of financial over and on US into or client good specific top and have Starting management We technology areas geographies. the for example our has clients record with in services other companies been and growing client one

them the a modernization market. regulated highly of departments is high different with program that a in We are helping priority multiyear essential to

data a is complex initiatives. faster points among processes, enable internal This and decision-making that systems incorporating initiative third-party numerous other integrate will to more strategic

continue kind by operational represents their and want multiyear customers. the be to strategic cultural Agile efficiencies. of helping we the we methodology, where changes and embracing creates more to for efficient provide This client experiences are long-lasting employees contribute We creating, to initiatives, business to partnership helping better which drive

more While create value jobs, stable we it adds companies. more and to both

title everything, changing, constantly digital reimagine which continuously to The it yourself. including world makes is

environment, other are is to with example A latest to trying working bank, in revolution. the AI technologies good changing this always stay keep to ahead. the companies invest this up As many

time education science have to for years and everyone has business. their been business At AgileThought, and the make we turning come investing to AI a where it part several of from want now, to are but AI in

we launch our clients demand clients guild. AI help AI from increasing an have seen them, how to and understand to have decided potential Applied We and can

Applied on digitally focus intelligent able helping now, guild. was AI-first we of and an AI clients imagine the to data guild, will and approach. Up to businesses human-centric part platform-driven our this better and AI With using be reimagine

guild but three is have AI learning. Generative are AI, AI already XXX main there nascent, machine AI will in Generative space. bespoke practices. Applied causality and Our companies this

And companies has unicorn reach so far, seen it six status.

allow engines This wave use and every on tackling expanding everything in space rapidly to leverage AI, motion companies animation from it. the in for capture the to is will cases space generative search

group with laboratories. We working a are of company the currently analytical health a care sector, in

that use. like automatically trending with in relates large using are to ChatGPT-X conversations offering language We models their relevant generate content

results to revenue offering, and a screening in clients. it real-time and post client our for know its it traffic is trained understand for produce website We the constantly and increase in website. which our This to and post significant additional will engagement, translate the in blog ultimately news

a engagement and believe customer the a finance be that In we of customer are some medication and from the that industry Gaming launch gaming valuable And today's care and a probably businesses. leader industries design most matter. experience decided capabilities in for to to variety to retail, applied health world, and gaming can and principle of We of is the guild. gamification

apply constantly the we seven gaming work the years AgileThought it in and the for now, size has practice verticals working of been industry to growing on. in expertise complexity gathering and the rest to enough

solutions to exciting player non-gaming development from this and will our gaming Gaming commitment clients, and industry provide gate Our guild field. understanding in to or deep metaverse. and guide succeed will with thrive of to tailored our support the That and excellence evolving rapidly gaming

bringing by As to our latest their always, into enhancing we look relationships clients businesses. forward the with technologies our

that, turn our to With CRO. over Eric I it Purdum,

Eric Purdum

like telling practices. little bit and in Manuel. you everyone. global and the about Thanks, And happy XX for multiple and to to by start myself. worked I'm I've a to ran digital transformation businesses here built industry today. over hello in years be I'd been

During business have managed units centered IP led around engineering management, services, and others. custom application this management I many product time,

was team management, delivery DXC to I Prior and transformation offerings, marketing, of at a Luxoft, Solutions of the programs sales, product Head the Banking delivering AgileThought, I into digital team scale. to consisting engineering global at where Global unified helped transform joining

on a market focus clients' saw investments period. map transitionary key items. through in Let's their our in our and AgileThought growth both softness five going they we some and in and now operates units, clients March, road Starting all are industries. initiatives

for the rationale EBITDA and their Some was due this own targets of miss to losses.

return our they the dollars competitive Also, into pause due to to This industries to their investment. pressures, pullback across investment clients on take some and economic across was all look of maximize were deeper a spending felt landscape. how

and further as those one shift savings, the earlier. that the of that again is technologies second Manuel TCO new seeing already approaching, mentioned have being initiatives, and digital AI, towards we are significant around transformation ROI digital example Now especially industry commencing a strategic with adoption half

our each business in are has And as solving existing of clients as depend the market in their AgileThought, client units, and we half. seeing to second mature these challenges key relationships on our relationships

business abilities the is We have exceptional understand continued our how those understanding worked their solve them and the these investments clients of importance initiatives to deep and of their of help through problems to with choice many delivery real AgileThought industry. for

have To second growth three solidify the focused half, on we of the areas. key

a growth interaction internal continuing client-centric transformation go to become to companies with among the different Unified are most and we our culture industry In and sales for top the to workforce. of culture cases, First, through focused. a drive stage deliver need growth structures

the of the organization. our responsibility want worked moment at of thinker great entire to the interaction to ambassador This a for every they sales customers it moment We is AgileThought, not us We've time. the our Agile our hear put, brand team, us is is everyone about to to This accountable service. every for from been but what just with clients process. deliver we've our every have is with our Simply and we values. the the become a but company experience an in doing encourage

new through to with create the operate to relates understand Second, clients, clients XXXX which and and and business million we in our ability and AgileThoughts, proven plus how prowess problems existing focus solve problems. become growing committed industry directly to exponentially hyper our into with and them they these their us as have $XX can for XXXX. carefully deep the potential revenue on selected technology to to relationships This

key and make Manuel accounts accounts growth do from and to industry-leading not also delivery expensive exits as focus before, see will strategic deliver. on detract that, on to conjunction continue or to as we In are our profitability. that accounts we These spoke

accounts and industry. our Third this people have and in attract the of We recruiting some best top the continued in that the personnel. in that bringing the talent technical is continues foremost investment been for talent from industry to why sales This truly over been what continues to seven delivery finally, we retain is and and that believe have XX. with drive XX us clients. have years to more our accounts for for exceptional over or AgileThought us to five have with service

facts Let and through our make current markets. me units half revenue and across accounts some through will of key numbers XX% one, on profitability. walk five Number of walk about with show focused then AgileThought the our is additional numbers. good These our diversification the around accounts business, that good Amit market of

two, towards Number all organic accounts. becoming revenue show over the strengthen their growth nine continue in generating over has AgileThought that months million portfolio last $X accounts, and to XX-plus XX million good

an identified become $XX-plus that focus also also to accounts. accounts potential have to have We million the on additional XX

to maximize three, Number remaining restructured profitability. our the being of are accounts

that company is pipeline was in the number where grow key year second into half to driving business the And year XXXX. in Based this and growth position at prime is the four, growth time. that fiscal facts, AgileThought larger the these finally, half last the than continue a times and fiscal is seven on second

I to call our financial insights will Singh, provide Now, who our Amit will into additional the turn over CFO, results.

Amit Singh

good morning, everyone. and Eric, you, Thank

decline $XX.X Revenues Let by will representing XXXX. of results first year-over-year our sequential the me the XXXX of guidance summarizing then for X.X% and X.X% start million, the discuss were our I decline. for quarter year. quarter first

the by projects before being discussed Eric, this around of impacted our and in postponed. revenues started As volatility some quarter mid-March, that market resulting in Manuel by were

In volatility market sales to leading addition, ramp-up team of our newly a members. this is delayed hired

also profitability continue Our this and as quarter exit work. our non-core we decision to growth revenue focus on long-term to impacted

on not decided exiting are do mentioned, to become to we manage. small Manuel expensive accounts, large SG&A quarter, other also during potential clients which Eric and As non-strategic start have to the but very this

and profitability. the of we I robust focus we during just of year-over-year gross result improvement. the On already gross margins XXX delivered improvement projects margin have levels. gross X.X% XXX this to in to our on above of gets average is sequentially. continue basis during representing up governance improvement improvement The gross to basis and this until margins, quarter is the industry-leading led expect gross XX.X%, gross The X.X% first to XXXX, This the margin point a talked profit points XX%, being we closed quarter our margin year-over-year place. on sequential strong in and and process deal improvement we about

months both This our increase and increase SG&A, to in sales, of three XXXX. XXXX a began investments and the strong early material in first the our In due year-over-year. we XXXX, late was that delivery sequentially mainly to in people function had

in $X.X previous down million down negative same of income the XXXX same XXXX. of operating for the from the net totaled million, million for negative Adjusted period $X.X Adjusted year. was negative income of million, from $X.X the the $X.X in first quarter quarter quarter

EPS on XX.X same negative $X.XX $X.XX year was average the shares quarter the the diluted compared shares diluted million of the of Adjusted quarter diluted on for quarter, based quarter. first XX negative average for previous million for for XXXX to the based

We the continue be priority will focusing to top it year. for have on accounts, and and strategic been profitability our

optimization for line reduce gross a year to top the launched adjusted been by all and XX% efficiencies the SG&A recently is to us allowed income to gross than our than SG&A expected. we has also company more a addition on across identify helping our improvement has full significantly and to among year we higher full This teams the margins, efforts initiative our along forecast and analyze with operating collaboration target In previously us our margin plan. and

March up to XXXX, million. Moving sheet, of on cash XX, to our the cash as balance $X.X added and equivalents

million During debt $X.X as repaid $X.X $XX.X Total unamortized We paid was million debt-related cash expenses. the million. debt, approximately XX, of of interest issuance first quarter, million. expense we and additionally and of debt March net $X.X XXXX, costs of

like would to on Now, our I give activities. update financing an

As disclosed, and agreement April you covenant regarding as which financing forbearance we our million are our $XX payment both XXth, on compliance in agreement, and million default. previously into entered agreement, $XX credit to a

in The are terminated extending active its by force. on XXth, terms regarding with forbearance May such agreement, we discussions lenders, our

continue strategic also with We work all and legal financial advisers, in to alternatives. our evaluating

extension at if that agreement recapitalization we we can no such Although acceptable be remain plan confident, reach there on can assurances or terms, an all.

appreciate; discussions we at unable As these on I time. of to trust, you comment can this are any

improving about remain growth let's XXXX. outlook the Now, talk for we'll our year and working full acceleration, We revenue year-over-year. profitability towards focused on continue our executing

focus continue projects, and us non-strategic industry-leading and margins. right also will that We accounts strategically selecting will to the small growth on deliver help exiting while non-core customers together and

second new with towards the quarter completed year. we Our current the to as revenue ago, successful efforts to growth half all second of members, which, sales team exit announced a business, strong be should the couple lead of quarters during the of non-core the should ramp-up along of the year, the

year-over-year for the We XX.X%. We year gross revenues now XX.X% year in of XXXX the or full million organic X.X% margins expect to of growth. full now $XXX expect range

full Additionally, expect as profitability, of adjusted XX.X% a at at million, income XXXX year-over-year our on result $XX.X we growth. year to focus strong be implying operating least the least

I'd for Thanks, everyone, the call remarks. back call. like closing for in Manuel, the any to to participating turn

Manuel Senderos

to positioned out world, make for the the growth conclusion, strong In very transformation bring of demand digital across the we the Amit. believe are long-term. well you, sustainable we Thank most and

the can anything liquidity. to questions-and-answer that with to Q&A note, we not in the our over And will begin we operator, the like I'd session. to forbearance the financing related call and that, discuss turn session, A so

Operator

the from Maggie Instructions] Your first Blair. of line William from Nolan comes [Operator question

is open. line Your

Maggie Nolan

morning. to With for logos new you new year? to of prospects additions, the financing client feel the of do impacted activities how Good And your ability have respect Hello. adding add the the course over logos? your rest new about

Eric Purdum

question. So, good take that I'll Eric morning, this Purdum. is

so good far have actually adding done logos. new we So, very with

think to in additions QX. did Manuel I we spoke already our

this up at logos new looking XX in possibility are a of year. QX We to of

new So far ability year any seen so degradation news we on of the not the based a add this actually to refinancing. our logos in have on

Maggie Nolan

in terms margins perhaps year the expect, you given cadence but be could of you. the the of over back that the also expected dynamic the Thank you margins, than of to Amit, non-core have the the roll-off course stronger And on half of annualizing. comment that the half, first is you revenue that

Amit Singh

trend So growth are towards we How you? margin Thank, go to expect as our the year. Yes. of Maggie. should end the up you

flattish looking So gross numbers. improvement. margins little little quarter-over-quarter, increasing. in still from a should you you decline margin be could witness But all -- margins. a or QX see QX the on, will there see should into the We're

in much margin prepared said remarks, new we I level they the are are already the deals signing, above that the that we current As reported. have

-- deals as seeing improvement. margin revenue, into converted you those as So should those gross get start deals

the And should side, the SG&A happen thing same on too.

put discussed the in plans remarks, that optimization SG&A should are as into year. being they results prepared the through I move delivering start we place, the As

adjusted as forward should the the you move year. second trend quarter margin overall end upwards operating of the So, from towards

Maggie Nolan

for update. you Thank the Okay.

Operator

Partners. from And your comes line Alliance Kinstlinger Brian next from question Global of the

Your open. line is

Brian Kinstlinger

Great. my much taking Thanks questions. so for

if is delays about had is how identified new this clearly of million assume does revenue what contemplate the quarter so cancellations? or your last percentage Obviously, business revenue signed the better regards of wins? commitments, think contractual quarter additional with at to it -- or from and And form one in guidance. does I it to all, you, adjustments visibility you in guidance, XX% $XXX visibility behind

Eric Purdum

good So, is morning, question. This this take Eric, again. I'll

million $XXX be which in months the about solution an excellent that to five ability our in the confident only is think XX% to into I year. we about earlier, position we're talked So

the We're of of the confident that XX% number. very solution remainder very year. we'll we're confident number that throughout So

Brian Kinstlinger

Great, the -- delays or are from sector? cancellations and -- feeling contemplated, from you is banking or that's at you that are all is especially behind

Eric Purdum

starting some out of uptick back So, to to softness into earlier projects coming we the and in the see able did the prepared of We drive year, forward remarks. some the talked as the second beginning go that into see from at -- to we about but some scope now we do are push projects we're clientele, those and our fruition half. are not as key we of now

in some come we're So we staff those and to softness can But did see those hit to online sure targets. to back beginning accordingly again, see projects QX. starting the of make we

Brian Kinstlinger

And you. Thank then projects, generally that new customers in regards or was weeks logos two in did was to ramp it the it delays, that were expected to maybe not. stopped that the existing last

Eric Purdum

it's but we our From delay I a knew four sell our with I logos a of good of in QX. but new time, relationships So only logo obviously in see we ahead initiatives. perspective, because of combination in of an they both, new that, say started uptick clients, as think to these QX, some would we

determine you down tell what the But hard the that is new I to for would it's at slowed the in logos. of initiative rest So all if very QX is market us the uptick promising year.

Brian Kingsley

last for Amit. One question Great.

the there is in how quarter low or to understand SG&A going to thought. I example. costs, at half bit SG&A, of trying of it there would after off. year some get a items was you higher think this for in of Is I'm the the than second hiring Looking falls first non-recurring any kind just one-time have

Amit Singh

Thank definitely. No, you. Yes.

at hires So and team of happened that the came as beginning sales of in that year, delivery, then our people lot in hires time. you all related a know, in of we around did the function the most

expense was much So, very quarter. most first that related to of

have to going here, that, it, call as related not we're from move So going expense, that incremental we expenses forward. to

And then on center, each very exercise of for SG&A that, a through cost of top we driving diligent efficiency. went

you So can guidance that around percent. that keeps as as XX-ish that income around to but a you that the number from percent should operating down get of we we the year, adjusted and SG&A move coming through provided, revenue mid see

I'm and year. just I about a company -- think this talking not as

below a And to as there's XX-ish to As a a near company build percent to path front in future of revenue? up percent us of the percent from in as then very hopefully we scale we a strong move XX% SG&A forward, of even low bring SG&A very revenue? as that get as

Brian Kingsley

Sorry, just to be clear.

of first when million least SG&A $X just the right? quarter. the about you do in math, lower You're rate back-of-the-envelope run talking at Is than that

Amit Singh

Yes.

so all, percent But So quarter you we're you're SG&A would quarter second as parts revenue looking in of of your see first see revenue, of third lot -- going And going to and still, is as as SG&A up SG&A fourth a -- put SG&A, you quarter. overall, in significantly remember, a there's third moving you quarter. at in a and lot to you're pick like a revenue be fourth there. declining to quarter revenue point, as will

Brian Kingsley

Okay. you. Thank

Operator

next And comes from from question your the Josh line Cantor Siegler of Fitzgerald.

line Your open. is

Josh Siegler

taking from question. Hi, going I guys. of year? that Is of productivity to in for half to expect this the increase see first an guess in kick personnel? really back off do all, sales Yes. my your Thanks you when

Eric Purdum

This Brian. is Eric,

So I'll Yes. question. take that

back earlier pipeline in our increase line we you're when made is -- the QX starting is sales we to XXXX a six we normally so it we to and and So call, that's uptick we times well. was three half. investment that our Xx, last new starting in top in off ramp pipeline we start as pay where year. number, the second see personnel to That hire revenue as now mentioned where seven to a month see in contributing Like our to

half bringing that why numbers higher. we really to to So the looking is are those second as

earlier, we like on too, the a we're on we delayed And few mentioned the based market what based also right, keep ramp, conditions. in months did in mind, seeing

now there. to few a see that yes, things absolutely, the second starting we're to there's pay-off keep mind But in So in half.

Josh Siegler

helping in AI you're conditions of more spending is the margin of AI offset throughout seeing cautious front, increased demand and I'm your verticals. it. on that generally, to and And then interest the curious some Got generative this

that, on If comment be would you helpful. could that

Eric Purdum

Sure.

and all the So and around absolutely, I AI now. and read see right news, excitement us all the on going think of we activity

Our and look base facilitate at business, the how across base board. those your a And customer discussion our data, of as new can right lot and There's at better is AI look client decisioning different, conversations a are no now more right? better very base efficient some of client about help a active well. within our logos a

I increase see So our presence AI as into you'll us certainly continue and go we to think fiscal into the half second XXXX. year

Josh Siegler

Understood. Thank you.

Manuel Senderos

welcome. You’re

Operator

next line your of Mayank question from comes Company. & from Tandon And the Needham

line Your is open.

Mayank Tandon

morning. to projects, ability wanted given your and business, currently? Good just situation about in employee to people hire And related terms the you. given key ask Thank of just in I you attrition issue? that your the have of to be seen key also sort would what the liquidity for morale

Manuel Senderos

Yes. Thanks for the question. This is Manuel.

we So that no, is think good. the actually morale

quarter, beginning of first came from levels the Our XX% see year, from year significantly even same we continue last last lower. to levels almost attrition and the trending down to

low So teens on QX and still for QX. attrition

So we about we're work is that go that type that that -- people the the opportunities doing, working are the times think through the we're and all in we difficult that. as generally holding we're capturing on. excited this and even up morale of of But clients refinancing

on good front. we're think I So that

Mayank Tandon

completely, cow slow also don't off that's you that's run time study Okay. if helps sort profitability, of that had sort the revenue. already the revenue, situation. which least of I of a in And another which liquidity I more recall, that revenue, and had if gives know have ship maintenance the not I margin still could certain you traditionally at the wind question of sort some was IT maybe more down higher then services something on in Is I you assume would business. If of cash resolve down, your to you bag just

that. curious Just on

Eric Purdum

Eric. So this. I'll take This is

it all we right, I And XQ mentioned look have where from really off get but before, to think sides. we your So it at point, I completely. runs again, like

at We us also it well. to revenue have costs that look to how much support as

our the team not tell we're you has the but cost each making profitability at excellent of decisions expense us across So only and And -- to account. revenue, support what board, the I the looking those an of would is line job done that very that strategically. top account

it right may right where to exit you the but a see revenue some sure controlled fashion doing we decisive us with do the make profitability. very on revenue, So we're and

Mayank Tandon

you my it. taking for Thank Got questions.

Manuel Senderos

to on add think that actually profit Just I quarter-over-quarter. the highlight that, improving me is for gross is

So even as wants QX, from key gross us But top you profit a super see at so us, obviously, look this for even time. QX to is X%, gross profit internally, about the to that's indicator market grew at sequentially line. for important

Amit Singh

for growth you the also, if year, the And the guidance digit. yes, at full look revenue is mid-single

We are guiding to adjusted operating profit above XX% year-over-year.

you as that's making, on what on revenue, right? we the focus just profit to are the that highly end, revenue? profitable matters I a company. want to So I the you or operating decision do generating mean, in sometimes want all in all, do we focus think is Because are

Mayank Tandon

you much. Thank so Understood. Sure.

Operator

[Operator from Genuity. from Your question comes next Joseph Canaccord Vafi Instructions]

open. is line Your

Joseph Vafi

on you welcome the then logos? a that new and just Could existing morning what -- board, us, quick is Good you And if half second ramp remind you follow-up. and everyone. between coming could look think you where at there, and from where visibility you Hi, break Eric. break ramp down if

Eric Purdum

Yeah.

the our this So it second it were the of in projects as of think decision-making organic is exact I because would our delayed. I customer change fundamentally the goes numbers think some softness base. majority And would There that say growth again, we half. that year some QX. these fact will around But roll in into was not I to quoting back

up. starting some back again, we so see client relationships And we're multiple really years. have that And at very mature ramp go to Agile that

on But doesn't driving of focused in QX. we'll not for is implement top will to. the supplement get revenue mean So or logo line new us, that because that that's where that that we're some that additional

I XXXX And still organic that So impact But our it is year think again, grow fiscal this to point. at we'll of well. logos. a new as continue really majority will the

Joseph Vafi

Do mentioned Okay. I Eric, do cohort the know than grow I budgets. grow That's or And I you clients -- your think point are this of million to do largest then their to given necessarily think, contribute you think really at they slower helpful. that's that growth, probably size overall customers $X in growth not could IT mean they large, level. you going at those that largest the like of

Eric Purdum

No, I actually…

Joseph Vafi

Sorry, go ahead.

Eric Purdum

they'll quite actually a bit. I contribute think No,

the opportunity are a base, about there's that we customer -- them if with that we've IT lot think facilitate there, new great buyers done go in about at business each accounts. to right, So to the clients of customers But you those we today. in net lot untapped that those to and base and already large talk do that with a of new we enables have facilitate services of us work

is tell think to of would focused I what organic there's I grow. a because base So that hyper client we're existing on certainly do you growth that within lot our opportunity

generating done add the buyer there if well that goes go to company talk company a or into work we've and a really new would opportunities. already you're delivers thing us, I long is way more in about net like new one a a to

really is, organic reality XXXX. us us into the think help year bringing new those this grow on will year tap growth fiscal to be with I So, the logos

Joseph Vafi

perhaps levers quick are things to more balance guess, sheet of Okay. I pull on and you Kind the any Thanks right now? to having then one. relative utilization there one ask a other without I'll lot. that have capability to higher or given just more constraints, Maybe

Amit Singh

I think take can that question. I

been, business more more digital call exiting I high-end our doing it, work. think overall as by non-core, have we and improving

employee per improving materially year have revenue from year call over just like $XX,XXX, now a ago, billable above revenue metrics it, being the gone one seeing billable are where last, we $XX,XXX You $XX,XXX. per to employee

So, for work remains -- we are are I think I now highest as in per ideal is, one of -- driving revenue mid-XXs the and which we that the the think, low our doing, of company, But a the employee. that level, company. we utilization billable to are level type

that our headcount has taking of billable quality, at having little non-core. because higher to higher been per direction company forward. exit the So, it that revenue deliver But impacted Obviously, of a overall, moving more employee steps revenues is the recently making is without in of the necessarily is more the level. us

Joseph Vafi

Got it. the luck Thanks. financing. good with And

Amit Singh

you Thank much. very

Operator

questions time. turn further management back I for final closing some no at now are to this comments. there will over And it

Manuel Senderos

I just coming and on is This we going. Manuel. to really your call. appreciate questions clarity most answered give where we're everybody of to more I our hope

much. thanks So, very

Operator

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

disconnect. You may now

AgileThought (AGILQ) 12 May 232023 Q1 Earnings call transcript