Science Applications International Corporation

If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, again, press star one. Thank you. I would now like to turn the conference over to Joe DiNardi, Vice President of Investor Relations. So, you may begin.

Good morning, and thank you for joining SAIC's third quarter fiscal year 2024 earnings call. My name is Joe DiNardi, Vice President of Investor Relations and Strategic Ventures, and joining me today to discuss our business and financial results are Tony Towns-Whitley, our Chief Executive Officer, and Prabhu Natarajan, our Chief Financial Officer. Today, we will discuss our results for the third quarter of fiscal year 2024 that ended August 4th, 2023. Earlier this morning, we issued our earnings release, which can be found at investors.saic.com where you will also find supplemental financial presentation slides to be utilized in conjunction with today's call and a copy of management's prepared remarks. These documents, in addition to our Form 10Q to be filed later today, should be utilized in evaluating our results and outlook along with information provided on today's call. Please note that we may make forward-looking statements on today's call that are subject to known and unknown risks and uncertainties, that could cause actual results to differ materially from statements made on this call. I refer you to our SEC filings for a discussion of these risks, including the risk factors section of our annual report on Form 10-K. In addition, the statements represent our views as of today, and subsequent events may cause our views to change. We may elect to update the forward-looking statements at some point in the future, but we specifically disclaim any obligation to do so. In addition, we will discuss non-GAAP financial measures and other metrics which we believe provide useful information for investors, and both our press release and supplemental financial presentation slides include reconciliations to the most comparable GAAP measures. The non-GAAP measures should be considered in addition to and not a substitute for financial measures in accordance with GAAP. It is now my pleasure to introduce our CEO, Tony Towns-Whitley.

Thank you, Joe, and good morning to everyone on our call. I want to start by thanking my colleagues at SAIC for the warm welcome I've received over the past several months and for their level of engagement and enthusiasm towards creating the very best future we can for SAIC. In particular, I want to express my appreciation to Nozick The strength of our culture, our commitment to inclusivity, and the focus on our customers' missions are true differentiators for our company, and they exist in large part because of Nasik's efforts in recent years. And as I've already discussed with many of you, SAIC's progress during her tenure has set the table for this leadership team to do exceptional things for our employees, customers, and shareholders. I've spent much of my time since becoming CEO listening and learning and then forming and testing certain hypotheses to solidify a growth strategy for the company going forward. While this process will continue, I want to share some early observations related to four strategic pivots our leadership team is focused on. Specifically, our solutions portfolio, our go-to-market, our culture, and our brand. Since my announcement as CEO, I've come to understand the value of SAIC's brand. Over the past five months, I've received congratulatory phone calls from senior government, military, and business leaders, as well as SAIC alumni. Many characterized SAIC as a national asset and informed me of the company's deep legacy of tackling complex, large-scale national security challenges. As the threats and opportunities for our country have evolved over the decades and will continue to, we at SAIC must ensure that our customers appreciate the breadth of our capabilities so that we can capitalize on the value of our brand. On culture, we will operationalize an enterprise-first mindset while driving a stronger sense of entrepreneurial execution. While we're still finalizing how best to implement our plan, I would expect it to include additional changes to the design and execution of our incentive compensation model to further our culture of accountability and align our objectives with shareholder value. On innovation and solutions, I believe the capital-like business model we have committed to is the right one. However, this increases the importance to SAIC of differentiating itself in the market with the best solutions. solving for where our customers are today and where they will be in the future. We must ensure that our portfolio is mission-relevant, scalable, differentiated, and aligned with our strategy to drive sustainable organic growth in our key markets. This view drove the decision to hire Lauren Nossenberger as SAIC's first Chief Innovation Officer, where Lauren will be responsible for operating our innovation factories, managing our technology roadmaps, and ensuring that the investments we make maximize differentiation and long-term value. Lauren joins SAIC from the United States Air Force, where she served as the department's CIO. This role, combined with prior commercial and private equity experience, makes Lauren a true triple threat, and I am thrilled to have her on our team. In my first months as CEO, I have been impressed by the degree to which our innovation factories differentiate SAIC in the market as evidenced by specific customer feedback on competitive procurements in recent years. I am confident that under Lauren's leadership, SAIC can further develop our portfolio of solutions and increase pull-through of these differentiators across our business lines. On go-to-market, I see opportunities across the lifespan of business development and capture from early stage shaping through leveraging of our factory differentiators to premium proposal submission and impactful customer program execution. In order to prioritize the quality and pace at which we execute these opportunities, We will be establishing a new enterprise business development function responsible for standardizing and optimizing our go-to-market strategy across our sectors. This function will be centralized and report into our new EVP of enterprise operations, Tim Torito, who previously led the creation of the Microsoft federal entity and their business development and capture organization. Tim will be responsible for instituting enterprise guardrails to drive greater rigor in our sales and delivery processes in conjunction with our sector leaders. Given the audience, I will provide my initial perspective on what all of this means for our financial strategy and performance in the coming years. I believe the framework that was provided at our April Investor Day is appropriate and one that I support. However, as Prabhu has mentioned previously, our internal aspiration is to do better. We, as a leadership team, are aligned with a goal to establish a new normal for SAIC's sustainable organic growth rate above the 2-4% framework we provided in April, while delivering increased earnings and free cash flow. We will share more detail as to how and when we get there at our 2024 Investor Day, but it will be a multi-horizon approach with an initial focus on enterprise-wide mechanisms and processes to drive improved business development and capture execution, as well as an increased focus on quantifying, targeting, and prosecuting on contract growth. Finally, on my view of M&A, it is my belief that in order to be an effective acquirer and create true long-term shareholder value, a company must have a proven track record of maximizing organic growth from its own portfolio. As we demonstrate success against this goal going forward, our capital deployment philosophy remains open to additional M&A and with a healthy skepticism towards larger transactions and a focus on shoring up our solutions portfolio with new technology as well as maximizing long-term returns. I am incredibly excited to be a part of the SAIC leadership team and I take great pride in the opportunity to lead such a storied company. I now turn the call over to Prabhu to discuss our financial results and updated outlook.