UIS - Earnings call transcript Q1 2022

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Operator

Good morning everyone and welcome to the Unisys Corporation First Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Should After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to Courtney Hogan, Vice President of Investor Relations. ahead. go please Ma’am,

Courtney Holben

results. Good and Investor This joining Relations. released CFO. Peter XXXX afternoon operator. discuss morning Vice results and those us. Courtney Mike President Unisys by financial quarter first of Thank our its joined morning, you, this is to Chair everyone. Alt, Holben, Yesterday I'm CEO, Thank you our for Thomson,

to I'd we like cover a details. begin, Before few

the and call Q&A are Unisys the investor via website. First, today's conference being session webcast

and release guide press presentation earnings well the our find can which encourage using our to you we investor that morning as to we be on you our the will quarter relating Second, slides as performance to first website, other visit. this information discussion,

release have financial The we've Third, today's presentation, reconciled which been provided presentation. is GAAP press some non-GAAP reconciliations measures. includes complimentary measures, measures the earnings to related to the and within non-GAAP the

principles, the earnings operations. prior and not enhance are the results generally difficult under and company's or reflect EBITDA prior the consist in of and and to The and expense. enhance industry, items Management financial consistency diluted by currency. can of operating also results appropriate can cost company's provided believes evaluation the and flow, compare results and post EBITDA or These the exclude other that And of with that impact of flow free charges associated to and indicative items future non-GAAP competitors non-GAAP presentation these utilized of management these in its its of to make our use accepted companies be results comparativeness as other liquidity visibility results. Although to adjusted non periods anticipated well net profitability GAAP share, and company's often can performance each order to results compare analysts company's adjusted are per reduction of of believes the free following cash its accounting ongoing future periods, period income company its comparability performance. profit, supplemental results. Management distort enhanced trends investors that items the to retirement to of with believes ongoing cash by year-over-year measures as and the constant that

the that this call the various all more from forward-looking results with filings. to along available And on the Peter. website. Unisys materials mentioned the those like other Investor SEC to to conference actual more during are our not are deems on I’d company’s reports could information will reaffirm except Regulation For any form then metrics our on adjustments, performance. to effective complies earnings XX-Q. time, finally, as its with in financial future remind related to And is comment regarding Unisys a regarding From you only manner time these information specific the generally given. or provide see otherwise and in turn SEC and cause of that day Copies FD. materially SEC discussed such earnings please like update, These Unisys Unisys necessary I’d Such and from may or the information over and in call factors release risks color to subject I expected only guidance the our expectations. made and release in the fully earlier are statements uncertainties that now, differ

Peter Altabef

first for And discuss joining results. us our quarter everyone. morning, you thank to Good

and by increased are Our solution ACV portfolio Clients strategy pipeline prospects and is to and gaining positively expanded year-over-year. demonstrated our traction. enhanced responding

increase marketing knowledge expectations. XXXX. offerings and But Broad we line we're expect further growing were of our differentiation. is value awareness First by contracts quarter financial and our results and in with to higher anticipated ECS and non-strategic of DWS market our renewal exiting impacted timing the sales largely efforts in

signed there to first first solutions significant increase we are new done While detail insight give solutions. significantly Starting business. our encouraged financial in into for But user We provide will quarter based business year, on achieve some to growth and business. offer the business with Mike and DWS. prospects higher the digital in or I'll XXXX. higher by this the To the still and the is excited the performance. in experience our by for work enhanced be expanded goals margin workplace are

digital clients with the looking in ACV new DWS are XX% winning We to quarter. the year-over-year growing workplace contracts with transform

in our While exited the in by contracts non-strategic XXXX. financial results impacted quarter were

believed GWS, industry new the with clients. Given we for robust there opportunity significant is demand

During to quarter, office matured better we now management our under implementation or XMO We stages. others clients needs. multiple and client meet continue offering several model to the upgrade have solutions with in our experience

We integrating including increased our offerings, are service into and experience as also a automation Power Suite. within

Power interaction with with collaboration, our eliminate user while in security and are need the productivity global for regional needs Suite user improve This support. ensuring and instance, IT we requirements. For will compliance to governance automating governance compliance changing tool, end unique

helps our our enhanced their margin. progress and solution, and user productivity experience clients We helps ultimately which also analytic have our assess us improve

in HFS mentioned of market workplace solutions we multi service such are And knowledge were as recognizing an growing. broad analysts our I integration. named as Gartner, Amazon Everest, higher by sourcing is IDC, As their ISG transformation. our innovator offerings value Industry recently and digital

During Service quarter, provider. of both most And we in the nominated in the winner as Desk were six also we in Institute the any cases, two, categories. first were award finalists

global recently our multiple include modern by to service. maturity which service was receptivity advanced has of suite our Institute's our which desk proactive solutions, to intelligent workplace management, seamless and a Plant capabilities. portfolio our workplace certification full been experience, program, for contracts the highlighted DWS the certified Center recent Help services as device of collaboration, Desk Additionally, IT validates Support

example, logo GWS we goods. company new an consumer contract For the products global signed with technology first quarter, and during expansive engineers that a

to and financial already an cross we as with is to provide with growth a first infrastructure the specifically major client secure year-over-year, solutions, business success the revenue C&I cloud the wide a of workplace revenue digital XX% and year-over-year. that during institution selling, we C&I discussing solutions. grew during ACV, Latin quarter good which and was contract a win in quarter. example And client signed an cloud solutions year-over-year. cloud range of as our grew that was As in grew ECS quarter, X% infrastructure American and revenues drove XX% well segue up significantly also year-over-year a

that As is to opportunity we significantly infrastructure with DWS, grow believe and cloud more business. there our

and development, our in efforts focusing intelligence development are segment cloud cloud on learning operations. artificial machine we security XXXX, this enhanced capability native During application

quarter, aligning across applications hyper [indiscernible] scalar first our services. refined lifecycle with also the During aligning we micro capabilities the Unisys, and based

automation detect in problems environment. We their intelligence place, development also as and our platform. our we in leveraging are help service IT have as IT ops well analyze now to our clients data And engine service analysis

As contract and the we signed public European clients during client an company largest marketing cloud, to agility. to example, supporting the operational data global with that the migrate quarter, a center strategy a efficiency, security increasing and communications of

revenue been Turning ECS ECS, grow goal revenue stability. through has maintaining our license the to computing or while enterprise expanding solutions, ecosystem to

modernize our clients interoperability. by new quarter, to with releasing the business help of forward increased suite During a agile took clear environment operating their version steps we path development systems platform

centric our the diverse industry needs of address some solutions expanding of We key clients. our also workflow are to

transportation, call. of the our we data solution referenced travel last on in launched instance, For development analytics and expanded that cargo within we capabilities our

travel tourism During technology the first quarter, and services contract the to and we provider industry of expanded air renewed Asia. information a signed with a in

organizations We deploy a one double to scope services of their new was financial resiliency. servers, which also infrastructure strengthen signed digital and UK’s new largest their contract the

ACV supported year-over-year, our across to market C&I, by is portfolio and GWS transformation first for gaining approach client our company, revenue the contracts. increasing duration and grew X% ACV and indicate As we company was that Total although significantly TCV for undertaken during look go quarter, in quarter. grew the preference the traction the growth shorter clients noted leading wins during indicators year-over-year up I company solution of XXXX also in total given the XX%

user are within Total the of grew up targeted detail year-over-year was solutions year-over-year. sequentially GWS C&I since than and yearend. specific and doubled XX% pipeline pipeline within on XX% more increased increased pipeline company sequentially XX% that ACV.. more that grew We than XX% year-over-year cloud XX% end sequentially. pipeline doubled XX% year-over-year experience sequentially XX% more year-over-year providing pipeline and and and

contracts associated with to year offset expanded are market. expected anticipated period. pricing signed enhanced market our to competitive cost than was We growing. upside for first in and And prior our We margin is higher the gross new market solution awareness see quarter weighted Broad the related more go the portfolio activities. labor the contracts of to average increases

pipeline. size to new and analyst industry and the adviser party our generate also We're third and direct and expanding ACV. and and generate accelerate to our increasing penetration our increase teams sales quality advocacy are market grow We pipeline team our help of clients, indirect

marketing logo deploying new are clients. contracts account on with We target to strategy an value closing with our highest based a focus prospects

focused the C&I base activated year. quarter advertising through on in market last is of new cross and out, across increase DWS of strategy the have It business rolled year. targeted awareness our We is this be campaign driving fourth which Further We're effort our revenue group. digital is to end, selling launched and increase differentiate the campaigns this a half brand to our Unisys Once will underway. in to this that in this client existing from branding also expected increased awareness. second

know competitive. talent Turning all management to as highly workforce is the for we market

XX Our pre from voluntary last of XX.X%. month A pandemic attrition levels on was in increase XX.X%. first a basis quarter the slight corresponding

competitive XXXX. market. are and to Our helping voluntary initiatives the talent retention And stabilize nature of we attrition over expect the address attraction

Our programs of focus a goal resulted for for our and in mobility for quarter, the upskilling internal year. associates on the our rate fill opportunities through XX% XX% first creating above internal

increasing actively we identified and adjustments in first achieving been term We which positive inflation, respect hiring, increased focusing of goals. and short to reviewing compensation as every workforce that since the have on year quarter, and our our referral critical based in are continuing also wage strategic roles trend to With long continue XX% capabilities the XXXX. the leveraging

our ESG, increased prime to recognized Turning us be [HIS] to to upgraded in status. XXXX focus began when

gold we upgraded in that first putting year, from this an a and rating the ranked. companies quarter we EcoVadis A month, us rating, this of were XXth to to received the upgrade an of During percentile MSCI

a greenhouse gas We five was objective early our XXXX also in exceeded reduction this achieving reduction. years an XX% objective met and for emissions. XX%

turning now positive solutions. to next receptivity our goal which In conclusion, are to We our color we more quarter. on will provide zero we're net seeing

our discuss and to the more our we this important Mike in be will to financial initiatives objective. call believe have sales I'll results. do We over increase to and work to turn accomplishing that, awareness marketing With

to of first like for his Although to his thank as final CFO, the contributions this be call company all him that opportunity I role would to take in earnings position. will as his this in

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Mike Thomson

GAAP Thank to And today good and Peter. results. refer you, everyone. My non-GAAP I'll discussion morning both

earnings As a reminder, reconciliations materials. in our available metrics are of these

designed the in expect of strategy gain half awareness traction. our significant for to solution expanded the of year by and enhanced second highlighted, increase XXXX and momentum a to encouraged and the portfolio. beginning new increase of business Peter year-over-year marketing quarter, and differentiation We're in initiatives selling signings our and our are we as accelerate to is the that As result

on focus market to profitability revenue into efforts of course translate and improved growth and our expect XXXX. the We XXXX over into to our go

necessarily forward the with a the reflected momentum. revenue our into line believe positive private profitability clear manifest elements said, a reported longer in And not that revenue with known objectives. Our of double a line the is than financial ECS impacts expected expectations excitement for that walked was are year-over-year, had in beginning anticipated I'll consensus generally than as quarter. That call, the DWS path results XXXX. in which a were compares specifically financial these we contract the field felt currency that label quarterly and momentum by and This I our exited On solutions our to at XX.X% and constant highlight internally itself be being not strategy digits duration externally to expectations signed the headwinds, and year-over-year impact contracts as better the is strategic account last renewal declined term expected. we quarter to internal indicated for estimates, our about for down on long million Starting than service roughly timing, currency. better up originally and for Neither in contract impacted down few basis our being explicitly was through was the do we was year-over-year expectation. quarter which due low which $XXX revenue revenue, slightly results. ended in XX.X% with this our year-over-year

the contracts wallet offerings million the expanding experience we're result into ECS solutions lower reminder, new clients. business year-over-year established, being scheduled rates rest moving base aggregate in our opposed grow that a increasing to phase increasing year-over-year. transformation year through XX%. due on the our for integrated renewal in emphasis DWS now the first share we of an QX the being with $XX as revenue was which scheduled next market of to is With bring share market approximately for of awareness portfolio respect renewal to over our to signings our quarter QX to The by for and existing is fewer themselves As to for expected down in remain revenue renewal

productivity. In of addition, to roll in of of insight enhance we'll of continue exited the remainder client's off of our delivery also the the will revenue and of as will the million by first an had which the feel $XX we million in our year year, in contracts we to this solutions of that the we impact which second on enriching well continue non-strategic the quarter, XXXX, listed remainder the million $XX Throughout quarter. impact expect impact $XX

work one full not million, begun impact did New fully mature growing revenue Resulting business DWI’s growth has but down revenue the the exited. total that the million of the yet and decline. was offset in service field key drivers was $XX the of of quarter company $XXX which was year-over-year

impact contracts, service X% the field year-over-year. DWS of revenue these Excluding grew

and contracts, the as the as that serves proof are our This value to solutions, service clients signed margin mix is includes AWS end of up indicating ability we chain a move our top suite of that which and multiple and We demand higher line provider. new to end to full offerings. our aligned logo our growth encouraged and to recently market portfolio start higher us seeing also that full are prospective strategy to a point shift a

early encouraged our at While we you this longer field based transformation to heritage we term core of remind contracts is this that business. that service the of our relate are on business stage

years. several is to the existing base renewal that opportunity convert schedules occur the next over So directly tied the to

our grow revenue demand with to year-over-year, believe market. exited and segment represents pipeline. increase beginning revenue our compete capabilities to grew quarter expand Excluding for C&I momentum million those and of we the capabilities. our highly now cloud one growth cloud The to year-over-year advisors highlighting driven both opportunities by and to was this of ECS see total than C&I We're impact. XX% competitive to revenue our party X% continued revenue. we differentiation X%. analysts as in we revenue Similar and DWS the penetrate was will total business. in expanded the industry $XXX for the cloud growth in was growth the was company continue to segment within the continue DWS by third awareness The our which efforts enhance segment The and solutions, The contracts we and to our more company year-over-year quarter, driven

As the improving to market we we XXXX, of we of look trends the exited benefit expect progress. currently contracts move go see the business more as in the the to significantly from rest headwinds new revenue initiatives beyond and to begins to

be to year revenue last over high year, renewal anticipated full our on schedule. highlighted to single As or expect digits ECS due call, low we digits the double down year

revenue be is XX% half back ECS approximately of split Reporting XX% overall XX% Our total half still expectations is revenue the XXXX slightly front of company pipeline in detail X to in are revenue year X.X half provided XX billion and and as first these Peter second our billion of half, approximately down be at expected second license end. the quarter. earned expected ACB March The well versus ECS and as segment at was and year backlog to as the backlog. full

for As over level. expecting respect continue prefer term to We're have amount yearend be And we've backlog the our that clients been flat course to I shorter of increase also with backlog the would over contract revenue. versus this noted, had the the backlog contracts. same to impacted year year consistent duration reasons of aggregate XXXX noted

believe to we the and we're have we've X.X the the of low intensive shorter second the we lead billion are growth quarter in conversion than accelerated revenue digits in addition, we timeframes, quicker that second total approximately of the in XXXX. company with revenue quarter implementation in seen slight solutions the convert will to backlog Of in the the backlog which single shifting XXX revenue into past. half this in Factoring of towards In in decline type year. second likely less million year-over-year capital expect will expect of revenue all

more means at X% be inherently there's to full to our low X% achieve year that work guidance goals, XXXX end of our to this growth. of While the be done we're still to expecting revenue year-over-year

Moving I've to primary ECS highlighted through with to being the profitability and profitability. just in also results quarter, ECS The the DWS driver. revenue flowed

margins gross XXX points DWS year-over-year First year-over-year. gross XX basis ECS and margins quarter basis points decreased decreased

costs reminder, are ECS and throughout a to year. fixed As year both year relatively the

the of cost support components that costs. platform the development key Given amortization software are labor to the of and

have profitability, which license significant case the So renewals first was can impact the on timing the a quarter. of in

higher we revenue of ECS forward we Looking And each expect expect in evenly cost similar this of to remaining million be XXXX. to be than time be across split quarters basis the XXXX which are in points expected in in in charges XX XXXX, to approximately that with the quarter are being In as resulted expected took XXX relatively nature associated we C&I and gross QX. year-over-year. the in margin one in three for down segment contracts

the increased impact these of basis Excluding points C&I year-over-year. XXX margins gross

the quarters the in subsequent last of of as year. we the the We expect quarter in that the and taken beyond and in impact move quarter, work charges the C&I to some benefit recognize in began we to of second margin are increase optimization XXXX starting we

negative adding across non-GAAP focused to optimization gross our EBIT was on and As X.X%. scalability to solutions, margins work DOM adjusted which profit margin, is time. over total was profit a flow company improve Segment reminder, primarily through and operating expected And X.X%. efficiency our to automation standardization which is which margin, increasing ongoing and

attract to an last as charges on impact, call ECS on strategy, in our quarter, anticipating in to to market. that context profit the within the drag license addition we're arose had required investing well the retain our labor earnings of the talent overall competitive market investing the initiatives and C&I we noted top While go during continue operating as highly as a we to support

C&I to revisit with and to we're us have increases. increased where clients had other in are pricing pricing cost quarters those We coming in and some of the and receptivity year. acknowledging profitability with to macro labor seeing macro those successes cases working contributing pressure expecting economic recently the DWS to in clients engaging and We're conditions offset factors of improve internal in

the Given and fourth the be down and expect non-GAAP expected this metrics in expectations, translate margin operating GAAP ECS these we percent the non year-over-year our of of approximately reaffirming to basis margin EBITDA year-over-year margin total being quarter. schedule, these the ranges. third we to adjusted be profit company in points of then XXX second towards to quarter. currently we’re And EBITDA XX%. XXX renewal Based up to XX% low end year margin operating with X.X% on guidance these full revenue, to XX.X% profit We to to adjusted two as expect and guidance

and loss diluted net of As or per the revenue diluted $XXX.X versus our items year per $X.XX net income or profitability per $X.XX million cents prior period. cents improve The of loss $XX.X the share $XX.X expense in of or share year. we've in a $XX.X share as diluted million million discussed significantly million year $X.XX a diluted loss $X.XX period, or in non-GAAP prior this of lower versus share net non-GAAP result resulted of net pension per

in and CapEx our with development being the million, year-over-year. to lower We CapEx strategy improve optimize execute cash offerings light $XX quarter class cost. cash we free our which flow to better continue best $XX XX% year-over-year. million flow or solutions was enhance million lower to was The focused on integrating continue and are benefited this quarter in on capital $X

evenly million the this optimization expected taken we year. this the million of to amount in reminder, fell quarters associated completed program over are actions $XX million a As we into of payments the fall first and XXXX, remaining in approximately roughly remaining with the $XX quarter to remaining cash expected in $X

additional qualified for remains benefit expect and healthy balance, we our make which plans defined leverage pension did excluding U.S. have we for deficit net cash a to low, Our the contributions. not

needs. working traction $XXX progress a of approximately We're revenue the We already Our the quarter. end momentum balance into focused on many on and Stepping back year. financial our our challenging this net of enhanced that full leverage comparisons were is at in And don't cash our our reporting we're X.X quarter, capital million metrics the our seeing is remainder tells about year-over-year, double of excited to this expanded believe while as we're the of with the times profitability making we're over strategy. we've converting the picture the relation and solution seen portfolio. improved highly the and

Before I that, to the remain turn last call back our like the my their connected and over and from over over role. thank our just look all the I With investors engagement for discussions to Peter, stakeholders call of to new several I'll years. I've to enjoyed turn forward Peter. back

Peter Altabef

Thank the With questions? please Mike. call for Operator, can we you, open that

Operator

time the Bourgeois roster. with we'll Ladies and question session. Instructions]. [Operator Please first this from to Equity DeepDive your go at And We'll the comes Research. our today assemble gentlemen, answer pause question. question Rod momentarily from and begin ahead

Rod Bourgeois

they margins. renewals license Hey, had you be and clear not soft. weighed conveyed surprise Great. your And revenues path that and there. forward that Thank previously would But you. were a on so definitely really

going the knowing in those were we sales factors, hearing progress and and interested your bookings most report, about timing So into your results. marketing

big don't underneath also jump drove the just bookings over the three last But I that seemingly growth what's ACV And want also and bookings I read much XX%. to pipeline in months. into your want to too sales what don't So miss of year-over-year growth. the

increased amount composition revenue what's be if pretty and the of Specifically, pattern deals. drove the increases? and increased a know, deals pipeline would Or also the and of characterize you that the large if of recently just to diverse helpful happening set composition you're, Can it you bookings of the you your is there ACV -- were can pipeline? can ACV a an of characterize abnormal improved in there? So function

Peter Altabef

revenue, me thanks Rod. the it And This let I in With guess, Yes, take questions. let the you're exactly me order. try respect to is right. for Peter, to

kind teens was we was So look of terms the in the revenue revenue a against currency the at decline if became when you low which of situation, of beat as And we look the had a analysts at us, year-on-year whole. number surprise, expectations actually XX.X. forecasted, actually our actually currency not our went what that

clicked And portion the really to came expected. of we revenue by way clear true, with we of So respect that's revenue. in, on as the path side, kind the forward

revenue than the portion clear clear higher So drove at we forward was in year-on-year path anticipated. and was the what we slightly paths declines actually the of revenue

So wasn't we're higher revenue by side. really a it that's, cover respect why surprise, the the no But there guess profit. surprise on much. side, don't I'll that's were to we I have sales With

now. software dependent subcontractors. with subcontractors Two We'll had three those solely the did glitches. development offs Now And it. were were some we taking of later. We profit pretty those contracts where you in those by write have didn't much space, on didn't, our And largely we're raise driven side. the deal surprises time on one three those surprises, negative were infrastructure cloud that

And it's we significantly was, a acquire CompuGain. to development. lot of our in last that to meant do the quarter those of anybody on to cloud contract. a application the or was decrease subcontractor a not issue. devoted was the increase acquisition was doing, ours. of reliance on CompuGain one surprise infrastructure future, cloud things One to application in to It subcontractors this fourth was in year that capabilities shouldn't specific resources of and team, It the application frankly, also substantial of which be it But call

us those you write off in forward losses increase different Rod efforts. is of to respect look in first put And With you specific The did that did in quarter, our be C&I. pipeline going type that the DWS acquisition that XX% how the behind CompuGain we is our intended when on things take in TCV. The on of we and we insight development the asked, position really which ACV? those increase about what contracts. the does like X% was obviously is contracts the us that expected software three question of kind So into the when get the -- think to to a the materially entirety of

Let then color. mentioned provide me what some more comments of opening I review and my in some

DWS So let's at first. look

DWS So versus the TCV. on evaluate ACV

a giving for a on went have went a in the year the actually an more for we're again for And up you expecting was up court the simply example, number X% As that's change detail year. about ACV. a lot useful as not this while, TCV quarter been XX%. more is mentioning We We the ACB the XX%. think XX% We year, of that the we're a give for for through the the to just TCV ACV ACV percentage call.

the it's our you That's a length or is as contracts of that the average would [indiscernible]. situation. down. world, although SaaS happens, license if the becoming TCV So numbers will, you true necessarily to in us ACV contracts that the see of numbers a well, Type in more, as of And for SaaS not begin going industry

numbers giving increase of that why, we increase we And see really the we for numbers lot pipeline we a And XX% and look pipeline, on year-on-year the that's the in qualified when are the the giving good. was qualified so XX%. increase That's of you ACV. look at when XX%. sequential detail was reason pipeline are the increase was the pipeline, the I'm But DWS all year-on-year DWS at ACV

that more and underneath offerings, the look the you we XXX%. sequentially has when increased newer the Now will to experience if than margin, Rod higher pipeline year-on-year number or

will. to while generation it of it what of a exactly revenues we next get little into that's yes, DWS, the majority Will our the So take want.

work to afraid built it can We do, and trying I we experience base next we're of generation embarrassed to pretty interestingly, convert have we're to of a having large is will we We're we're about the newer tell time what as in not better a But hard older expected. not as that not learning stuff. selling new not it. we're we're a DWS what of new existing clients you That the than better, we of is services clients. simply

the clients seamlessly. more expected We to existing convert

base. kind of the typical pricing. And bones clients are us, of those with not that change to market, from And client it's they bare not existing some want of That's of typical of because honestly pricing. that the do

having that That a we moving much the success it. that growth more than year. and revenue we're direction. the more of challenges we want little in the sales in revenue that sales are But think the is we're means growing And for right all So growth and slowly market. indications their

side DWS So that's of the that.

pipeline C&I both sequentially. XX% let's the by which ACV once increase which based of cloud increased be new by that evolution qualified team weighted of it, in the piece in signings, the And heavily you qualified cloud cloud to infrastructure. then is XX% and business we sequentially And for that's again, is that. more generation C&I than and evolving have And have year-on-year, quarter cloud XXX% now in infrastructure if again was On XX%. the that CompuGain. The of infrastructure, the that portion that increase the larger. the we year-on-year will more we are we for still is traditional dynamics, it's substantial space. side helped pipeline acquisition And helped cloud a a at it's of same are the again, are, And more of look that that advice, next a team, pipeline

So it's on. journey. a it's And that I that we're about And journey excited journey. a we're think

Mike Thomson

answer like a pieces in And just And pretty think probably got deals element, of detailed Hey, Mike. specifically other your Rod, the one you Peter abnormal question, I I mix. no real gave it's to most there. would address

And that I and thought. think it, similar mix. the out of point are I gave as a and call the the expected I we rundown is good the size consistent with you his deals Peter guess what on to would DWS the it's that the offerings in full seeing to side, application forward development We're experience within the clients C&I. looking suite of the take I we're didn't our seeing are world play. in we you really think

encouraged we're So certainly by that.

We early have lot regards work advisors and a in and to the in third still that of to work the with of party some industry do. left growing analysts pipeline. stages We're

lot and certainly the left been looking certainly slide of there. that deals we've the doing done and solidifying the we're So to be size the not work that There's encouraged on of number a type the the downhill that shift strategy this. both we're for. mix deals, of on of by But the I'm saying we're work all

sense. you that a So hopefully, gives good

Rod Bourgeois

deals? a follow deals Thanks of really helpful. quick you are that's just can in sole I source most competitive your Now, pursuing up, these that color. that Or as bids? for And are pipeline winning and

Mike Thomson

be Right, Rod. so a larger of competitively deals the the pretty proportion you the they our When world, the expansion can large that new look now, right size, tend of majority look on new depends it at at source. source, larger say kind bid. when in sole deals, logos, deals of would I are our signings extensions. sole you be to logo smaller And that

Rod Bourgeois

it. Got clarification it. And then Got given. getting questions final I'm a just and on, then that

is to than year So revenue due I or client of the clarify in guidance DWS lower softness renewals or for the wanted due early to tracking year, expected both? range end that weaker traditional just to the the the the license to

Mike Thomson

contract. knew when gave we Rod, knew about Yes, look, DWS guidance about I schedule. that we we And obviously equity think the renewal the

little mind, So you're around base a Peter client transition than the the or quicker you're journey, when point that existing Because made in you're, new of a logo. appetite, conversion, on a their it's that converting, indicative my taking right? it's and more client

little the longer, selling and of logos on the some we're still selling marketing the so And new campaign. stages the a motion on earlier in

a taking that's that's, So than expected. longer we little

just can't three have your right, you And designing in recover it so QX, revenue. you've logos to you QX, time that don't of and convert that new to been enough four, aspect in

obviously in Good we're seeing good the the news news, So it pipeline, bad the news. ACV. TCVs,

the The of bit is impact, bad transition a thought news the to we time. add in looks of because you your be. it aligned So have little the revenue future would duration where

Peter Altabef

guys just Mike's our I the Journal up Yes. new economy when I the quarter everybody recurring at have came But in exactly want in the slide obviously the first comments, mix that. services at the to thrive, which just sign technology. to us do which nine with revenue And business revenue business, Rod, deck the of of with, Wall on in got of you U.S. our or our our XX% Street we have, profile, to look in follow to is mean, contraction is has And, for the to Post look right. of you revenue, that is out there's new logos, Washington do new and expansion,

not So proof a economy's nobody some technology of business, questions recession we're revenue health. recurring thing. you not as not we're is. the But in XX% terrible services a is and have to When our having

Operator

CJS question gentlemen, ahead your Securities. go Tanwanteng next Jon our from question. Please comes And and with from ladies

Jon Tanwanteng

FX, noted Hi thanks is, my for of lower taking headwind of the was it actually how big pretty was going that first guidance mean, guys, wondering in questions. the a one range My because you I I much QX. towards

and the guidance? of for So up is your the the of expectations showing in year that rest much how

Mike Thomson

Yes, know the annual guidance QX, know guidance. Jon? Hey, noted the softness was also to due as And the our primarily headwind. expected we good elements two question. is Look, in you as you on

conversion. the in the than your more So down selling low and of driven the just a base I lower indicative of a to revenue. probably and just longer at get have or it little that motion, logo guidance traction think more that cycle, new takes the that looking much fact selling it's continued the the our end is range tamping

that the get You very back little the year, time really through logo half sign new one logo get of revenue in or these you of you no the in contract, by contract new transition. year for

noted new of again contract of end thought opposed a as And to is is the the than shooting here contract of we shift kind would guidance to that really the reason the as and portion at so And I digested. have that into logo are aspect, how change lower being Peter conversion our renewals seems like of bigger mix mid it new conversion. range we offerings it aspect be. the And the tie think, that for

So where that's we're really at.

Jon Tanwanteng

Thanks, Understood. Mike.

I Second, to as for the the just I we be that increase of of be know think, expect the to in shorter terms mentioned second that's opposed year that. to in Or continue backlog number durations? the by should backlog, you year, pressured expectations you've that it is make sense half to case, backlog? SaaS to the reason probably for ACV? one If transition give a prime of Peter the total more does

Peter Altabef

Yes, about it's say you as we've funny, that's been chatting well. internally, Jon something that

duration is, always is that SaaS And length the XX% TCV and the Peter quarter, XX% roughly Certainly, something of in component may in in lumpy. that the that line backlog which rest the in for mean, that it why about couple trend. But of of to emphasizing emphasize for the the threw the that, have that really deal. So of is type a of take exactly have the of you're you lot statistic it as ACV little seen now. deal, along mimicking enough just the a business. causes starts construct right subsequent duration more in pressure both number is total, as we this technology the kind I that ACV that feel We've the like a a been year, feel lot bit out style. certainly like out quarter, quarters to the more starts component, interestingly a well

some thoughts we certainly maybe chat we're into on something So from our you that bake offline and considering and Jon, as can more well. logic and that get

Jon Tanwanteng

all. the of macro forcing one And change Europe people obviously Okay, just for aggressive, be last any had got lot you're may any know it. the the there? seeing competitors me competitive out to a be in I your more operations, thoughts become at on your then just what environment Eastern

Peter Altabef

it's a that's Jon. simple Yes, a question. not great question, And

Ukraine. places. any not either Russian try few clients. to Europe, do don't we have base associates On any don't We it in any Eastern and Russia We a have I'll or not did based in clients. have divide So obviously Ukrainian

in first said, of that I a the Russia because in have have question tell of that is us, place. Budapest the were a our we in in recruiting will So Hungary. Budapest, are it and leaving That you, that really of, geared off things was there And what we scale not for facility. never we facility

of are invasions, time there IT them some in the the the As were something them about some leaving. have of beginning of XXX,XXX stayed, of Ukraine you may at professionals know,

board So join obviously, effect probably them a of and respect the of kind at looking expected. reasons, refugees we of our well, in the our them as out all company. had for all That's largest with that bring has kind were to We're on as that from teams have the to that engaged been in play seeing markets bit markets assisting broader sorts

invasion. would I any say that yet from Europe in So significant seeing the we're not effect

Operator

next -- comes question And our from

Peter Altabef

to because [indiscernible]. If I half anything question, back there it happy you the I more other I'm missed was discuss but apologize, want that of to

Operator

and go your question. gentlemen, Galinko Matthew please with Maxim next from question Group, ahead our comes Ladies from

Matthew Galinko

for something went my on Thanks with scope an or the I question. contract Oh, good off to it took you able the was ECS for of you across that that I up think referenced started pick and along that start deal morning. that guess taking DWS. Did broad the were C&I way? customer

Peter Altabef

of of what ECS an that a and next workplace doing of And the next and that have to as relationship, The started it has when in started what as scope XXXX both it's relationship, relationship next in contract the digital cloud solutions. generation or been solutions mentioned, a been of I company. sheet, the our consider organically generation us we part services inorganically, we balance really was for of good kind we invest readjusted really

in So picking in XXXX. and starting XXXX dramatically up again

front consider I world, world And of would I both We smartly. cloud into very really of doing have those catching the DWS we're and to up in what frank. moving end doing the been think the be

and So caught world DWS. I cloud the need we're of in I and think we've the be where kind we to believe forefront up at of

an think doing areas, to And bring we're of value both clients. existing things lot client. for In very our ECS in those clients. that So we solutions we our of And is the we are was this one taking a think competitive. those of we case, existing

hey the C&I about bunch a said, have And relationship. great to that got taking we And ECS financial we added those kind from parts scale a of we existing the of Latin were large it's or of an country. value and we the we other the a cross so DWS to C&I good example ECS, It's client American a, and discussions more selling, the institution. then stuff. add And call it to client. opportunities to and it's how able And example. really It's but adding really them DWS bringing a great would

Matthew Galinko

think Thanks, that's existing opportunity that to or And as to take topic. up you extract the follow a guess that I cross that of and selling I helpful. of is guess, customers sort lower the higher solutions? clients or legacy more DWS wallet see fruit value kind to, as to Do bringing hanging bring value of more opposed that to sell existing solutions? you cross as

Peter Altabef

C&I in year company then did we invest just we take So new the of only again, a significantly, let but moved COVID And we follow these kind that role, evolving to and one then, I'll also because were Mike’s level, new minute. in we Yes, for a things big Mike right? not at last the starts solutions, it's of through Monday. the critical which on these, pretty But during what client was changed that a also not of a to one company. client, have. was charged the but ECF and and executive, we one that so an that had it organization executive commercial things to lead, and client face the for lead, lead really DWS we a operating as create one selling of the entirety And one with dynamics was the really did

you, I selling reality we more going when And progress But explain It's you is, part little cross our will takes think selling, selling, he's Right the that we're have. something use the So it. we to in do units making term role while progress not about important make get an that a it. it it's I Mike's our that But that future. right. first. everything immediately think we happens think done. team. on of new it is tell I And talked And on to we it's I to

Mike Thomson

already we NPS answer it's Look at, a easier is, And wonderful the doors ajar, perspective questions. work doing of Yes. for clearly have thanks I you're the from score. short the guess Matt, in there,

selling, to getting to want come at looking really already like unit and And segment another off not from our they richer in don't come embedded our just to happens what it's right, opportunities we're bring So I to our just cross offerings. solutions or succeed. doing. it callous, help it's across business And clients head

So it's in And at. the, we're currently about is or certainly the something amount XX%. that that frankly, we looking that have vein penetration roughly

versa. of pretty and vice XX% component DWS our level that's C&I it, of some across So the consistent have board. And clients to

you do they a our they bases, good we've we've that bases. you you've acquisitions if have opportunity Matt with pretty completed, three to that So that, client all well, so then duplicative really recall, of and And couple client got weren't the acquisitions if done, there's that.

the clearly a So than that is dialogue it opens is opportunities on a lot in regard easier have logo. it ability well up new to that and is

So you color. more hopefully gave I

Operator

Please your And Genuity. ahead our next Joe go question comes from question. from Vafi with Canaccord

Unidentified Analyst

question Good morning. This is [indiscernible] on for Joe, for thanks taking our here. Yes.

to able If as to these have considerably pressures Thank room price intensify How the deals there? you pressures. you're you that the much progresses? do you. cost mentioned You accommodate think year

Peter Altabef

Jon’s question. And got half great the a to. that's I second never think that I question that of was I Yes, think

much talking for So it. thanks very about for,

really more the were towards part of that's our I reason. to and kind I that XX.X% heard think Mike you was part year, the higher we for and X.X% say that the pointing about that, the we of guidance lower think of were,

base data is job merging as limiting the attrition you compare industry inflation, talent, out XX%. the And at see to XX look is at months to industry the we're you that somewhere of of kind So battle last of that of as XX% I is when is think doing an attrition, the a XX.X%. wage look we have, at we our for good kind actually I around

a average than there. So and below it's pandemic. it's But little it half percent we're higher a a pre clearly industry was

to not So It's and adding just training the it's inflation. acquisition the costs. cost But that's too.

might of the I the expectations. little increase I others us So I a think that's be end little the that and careful think, and think that. we're do you're of of all And industry seeing one you're the lower being seeing I margins, reasons that on kind at a saying think in margins wise,

So we still good that helps. are for being margins. I expect the healthy us. we're think for Those hope us a little I done side. numbers But on historically. cautious they've And this margin

Unidentified Analyst

you. thank Yes,

Operator

with I'd floor today's like over concluding And management turn ladies question to session. and back remarks. any for be that closing gentlemen, and the will answer to

Peter Altabef

everybody Peter, is is today. tell, call, like thank that I that and a I that not And call. to the want little to ran again, this telling I to know end this So thank longer on than have we staying everybody expected call with end lot of a would for obviously going to the

So after shareholders. or and we with discussions to forward look shareholders prospective analysts on both

going progress you'll talk real of job he's for the expectation think my in COO in thanks for have have we welcoming call. the find lot say my remarks, to much that to CFO a I do to we're position that very, then to of opening want And that to forward, going Mike discuss great role his appreciation and proud the I I continue very to my to CFO in the also welcome about. and Debra company on did with very and we again as staying made. as McCann

Operator

end with today's for gentlemen, today's call. and we'll We Ladies presentation. you that conference joining thank

may disconnect your now You lines

Unisys (UIS) 28 Apr 222022 Q1 Earnings call transcript