Endava plc

Good morning and welcome to the NDAAVA fourth quarter and fiscal year 2022 results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I'd now like to turn the conference over to Laurence Madsen, Head of Investor Relations. Please go ahead.

Thank you. Good afternoon, everyone, and welcome to NDAVA's fourth quarter and fiscal year 2022 conference call. As a reminder, this conference call is being recorded. Joining me today are John Cottrell, NDAVA's Chief Executive Officer, and Mark Durson, NDAVA's Chief Financial Officer. Before we begin, a quick reminder to our listeners. Our remarks today include forward-looking statements, including our guidance for Q1 fiscal year 2023, and for the full fiscal year 2023, and statements regarding our perceived opportunities and anticipated future growth and geographic expansion, our expectations regarding digital transformation of businesses and industries and other industry trends. The necessity of digital transformation for many companies and end-users' ability to benefit therefrom potential technological advances, our expectations for future partnerships and abilities to expand our existing relationships, anticipated client demand for end-to-end services, our ability to attract and retain employees and be an employer of choice in multiple geographies, and our ability to execute on our sustainability objectives, as well as other forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Actual results and the timing of certain events may differ materially from the results or timing predicted or implied by such forward-looking statements, and reported results should not be considered as an indication of future performance. Please note that these forward-looking statements made during this conference call speak only as of today's date and the company undertakes no obligation to update them to reflect subsequent events or circumstances other than to the extent required by law. Please refer to the risk factors section of our annual report filed with the Securities and Exchange Commission or the SEC on September 28, 2021. And in any subsequent filings, we have made with the SEC, which contain a discussion of important factors that could cause actual results to differ materially from those contained in any forward-looking statements. Also, during this call, we'll present both IFRS and non-IFRS financial measures. A reconciliation of non-IFRS to IFRS measures is included in today's earnings press release, which you can find on our investor relations website. A link to the replay of this call will also be available there. With that, I'll turn the call over to John.

Thank you, Lawrence. I'd like to thank you all for joining us today, and I hope you're all well. We're pleased to be here to provide an update on our business and financial performance for the three months ended June 30, 2022, and for the full 2022 fiscal year. We continue to be in a strong demand environment, despite continued global macroeconomic uncertainty and volatility. Given the current environment, I'd like to highlight that we remain focused on leading companies with strong balance sheets, helping them to be more agile and react faster to market changes. We see them continuing to invest in driving change, while our exposure to startups and the crypto industry continues to be low. For the quarter and the full fiscal year, ended June the 30th, 2022, I'm pleased to report Endava's business remains strong across all our verticals and locations. Before going into the details of our latest results, I'd like to start by putting our growth in perspective. It has been just over four years since we became a public company. with our listing on the New York Stock Exchange. And it is with great pride that I look back at our accomplishments since then. Since we listed in July 2018, we have tripled revenues from 217.6 million pounds for the fiscal year 2018 to 654.8 million pounds for the fiscal year 2022. At the same time, we have significantly progressed our object of diversification, moving from a concentration of 79% in the UK and Europe in fiscal year 2018 to 62% for fiscal year 2022, and seeing North America grow from 21% of revenue to 35%, and rest of the world commence now at 3%. We've also diversified our delivery footprint, which moved from 82% of our people in Central Europe to 76%, most of which is in NATO countries, with LATAM now 17% compared to 14% in fiscal year 2018, supporting our near-shore delivery for our growing North American business. Our total headcount has grown by 146% from 4,000 819 in June 2018 to 11,853 in June 2022. This strong headcount growth came with a solid increase in revenue per operational person from £55,000 in fiscal year 2018 to £69,000 in fiscal year 2022. A very strong trend and a real demonstration of the growth in value delivered to our customers by Endava. It is worth reflecting that at the time of IPO, we set a medium-term adjusted PBT margin target of 17% from a fiscal year 2018 reported figure of 15.4%. Since IPO, we have annually achieved an adjusted PBT margin in excess of 17%, and we ended fiscal year 2022 with a margin of 21.1%. As we look to the next four years, we aim to continue this level of growth with revenue tripling again. We will continue to diversify our client footprint, both in the geographies we operate in and in the industry mix across the business. Driving the shift is the acceleration in our target industries driven by new and emerging technologies. As we scan the horizon for technologies that we believe will have a significant impact on our business, we are building a picture of how technologies such as autonomous vehicles, cobots, and frictionless payments may have a broad impact on multiple verticals. We believe 5G technologies, as well as new devices providing broader access to the metaverse, will revolutionize the experiences individuals will have bringing people together in ways that will enhance the requirement for seamless commerce experiences. Further forward, we see an increasing impact on our verticals with the broader adoption of language prediction model-based AI integrated alongside traditional technology, leading to innovation in human-centric tasks that require deep understanding of language. We will also continue to further diversify our delivery footprint to see a higher proportion of work delivered from LATAM and Asia Pacific. Together, these shifts will enable a more balanced, scaled, and impactful operation, making us even more attractive to the large enterprise customers that we target. Moving now to this current quarter and annual results. Endava reported revenue of £180.4 million for Q4 of our fiscal year 2022, representing a 35% year-on-year increase from £133.6 million in the same period in the prior year. We ended the quarter with an adjusted profit before tax for the period of £36.2 million, representing a 23.5% year-on-year increase from the £29.3 million in the same period in the prior year. Our strong revenue growth continues to be driven by both the expansion of work for our existing clients and the acquisitions of new ones during the quarter. We continue to scale existing projects and accounts to drive the growth of larger clients and increase the spend by these clients. We ended the quarter with 732 active clients, up from 615 at the end of the same period in the prior year, a 19% year-on-year increase. Importantly, we continued growing the number of larger clients, with a total of 134 clients paying us in excess of £1 million per year, compared to 85 in the same period last year. representing an impressive 57.6% year-on-year increase. Additionally, the average spend of our top 10 clients continues to grow strongly and was up 21% year-on-year in the three months ahead of June the 30th, 2022. Moving on to our results for the full fiscal year 2022, we reported revenue of 654.8 million pounds representing a 46.7% year-on-year increase. In the last fiscal year, we grew nicely in all our regions and verticals. Our strong revenue growth continues to translate into strong profitability, and we ended the year with an adjusted PVT margin of £138.3 million compared to £92.1 million in the fiscal year 2021. Today, I'd like to highlight some of the work we're doing for our clients in the financial sector. In the banking sector, there is a strong move towards the provision of extensible API-based platforms rather than large single-purpose monolithic applications. API-based platforms increase organizational agility and allow banks to offer an evolving range of services through a single integrated platform. and better compete with new FinTech entrants to their markets. An example is the move by a number of banks to offer a range of integrated digital-first banking services. Our proven skills in developing flexible API-based solutions have allowed us to work with a range of organizations on their journeys to create application platforms for their businesses. For instance, we are working with a top U.S. bank on building a full suite of software design, engineering, testing, and integration services for a new cloud-based digital banking product that will eventually offer a new generation of lending and deposit products. We're also working with Primus Bank, based in Virginia, and servicing individuals and SMEs. Primus embarked on a greenfield implementation of a digital core platform. And this new cloud-based tech stack will allow for broader product offerings, greatly enhanced speed to market, and expanded geographic boundaries. We are helping them with this transformation effort by providing solution architecture, system configuration, engineering, and overarching domain expertise. First Bank. headquartered in Colorado and serving the Southwest region of the US, is undergoing payments modernization and is leveraging Endava's domain expertise to guide their product strategy and technical approach to the work. In addition, First Bank is leveraging our architectural and engineering expertise to execute on implementation. In addition to working directly with these financial institutions, we are also partnering with companies such as Backbase and Snowflake in order to facilitate the modernization of these banking platforms. We help the asset management industry address the challenges of fee compression, flattening returns, regulatory pressure, and evolving distribution models by enabling their platforms to be future-proof through designing and building real-time data platforms, self-service reporting solutions, and advanced trading analytics, which together facilitate enhanced predictive decisioning for the front office and enable rapid automated reporting to clients and regulators alike. We're working with Royal London Asset Management to establish their central data platform to provide a cloud-based central data spine that acts as a central source for all the firm's data needs to serve the business for years to come as regulation and products evolve. With Yanis Henderson, we are consolidating reporting onto a modern cloud-based platform which delivers self-service efficiencies and data visualization to gain additional insights across the business operations. Market infrastructure providers are having to modernize their platforms due to the ever-increasing complexity and real-time demands. Some recent high profile outages are forcing the industry to modernize technology stacks. This is forcing large legacy replacement as well as innovation brought upon by crypto tokenization of assets and the more forward thinking incumbents driving ahead with blockchain tokenization and expanded offerings based on digital technologies. We have been designing, building and evolving an award-winning cloud-based derivatives trading platform for TPI Cap, a world-leading provider of market infrastructure and information. Branded Fusion, the platform encompasses everything from market connectivity to tailor-made matching engines and algorithms to high-performance UI for a consistent responsive user experience for brokers and clients alike. We also have a rich heritage of working with hedge funds, helping with their innovation in gaining competitive insights through the front office decisioning process. We work with quant firms on data warehouses, supporting third-party structured and unstructured data, trading strategies, and modeling sitting at the heart of their business. In the US, we're working with a leading alternative investment firm, helping define and drive their data strategy alongside the modernization of their core architecture. Our experience and credentials in the financial industry continue to gather momentum, and we believe we offer our clients the ability to differentiate their offerings despite the rigid frameworks and controls that they need to operate within. Over the last five years, 88.6% of our revenue on average was generated from clients in the previous year. We take client satisfaction extremely seriously, and we have in place a customer satisfaction program known as CSAT that reaches out to our clients and allows for systematic feedback. We have a dedicated customer experience team who analyze and manage the feedback to constantly help create the best service experience for our teams and clients. Our latest CSAT survey reported a 95% likelihood of repurchase. We continue our geographical expansion and diversification. While competition for talent remains intense, we remain very successful in recruiting the people we need and our attrition rate remains low. We are continuing to expand our team in LATAM with strong recruiting in Mexico. and we recently opened a new office in Cali, Colombia. We are also moving along with our global expansion and expanded our footprint in Australia with a new office in Brisbane. We have an ongoing commitment to make a positive impact in support of our people, customers, and the communities where we operate, and we are delighted to share an important milestone in our We Care sustainability journal. we have been awarded a bronze medal by Echavardis in recognition of a very good ESG performance, placing us in the top 50% of companies in our industry. In summary, as demonstrated by our financial results, demand for our services remains strong. We are successfully navigating a challenging global macroeconomic environment and remain excited about the opportunities in front of us and confident in our ability to execute on our objectives. I'll now pass the call on to Mark, who will walk you through our financial results for the quarter and provide guidance for the coming quarter and the new fiscal year.

Thanks, John. Endava's revenue totalled £180.4 million for three months ended June 30th, 2022. compared to 133.6 million pounds in the same period in the prior year, a 35.0% increase over the same period in the prior year. In constant currency, our revenue growth rate was 30.9%. Profit before tax for Q4 fiscal year 2022 was 32.5 million pounds compared to 18.5 million pounds in the same period in the prior year. Our adjusted profit before tax for the three months ended June 30th, 2022 was £36.2 million compared to £29.3 million for the same period in the prior year. Our adjusted profit before tax margin was 20.1% for the three months ended June 30th, 2022 compared to 22.0% for the same period in the prior year. Adjusted profit before tax or adjusted PBT, is defined as the company's profit before tax adjusted to exclude the impact of share-based compensation expense, amortization of acquired intangible assets, and realized and unrealized foreign currency exchange gains and losses, all of which are non-cash items. Adjusted PBT margin is adjusted PBT as a percentage of total revenue. Our adjusted dilated EPS, was 51 pence for the three months ended June 30th, 2022, calculated on 58.0 million diluted shares as compared to 41 pence for the same period in the prior year calculated on 57.5 million diluted shares. Revenue from our 10 largest clients accounted for 32% of revenue for the three months ended June 30th, 2022, compared to 36% for the same period last fiscal year. Additionally, the average spend per client from our 10 largest clients increased from 4.8 million pounds to 5.8 million pounds for the three months ended June 30th, 2022, representing a 21.0% year over year increase. In the three months ended June 30th, 2022, North America accounted for 35% of revenue compared to 37% in the same period last fiscal year. Europe accounted for 22% of revenue compared to 21% in the same period last fiscal year, and the UK accounted for 40% of revenue unchanged from the same period last fiscal year, while the rest of the world accounted for 3% compared to 2% in the same period last fiscal year. Revenue from North America grew 27.0% for three months ended June 30th, 2022, over the same quarter of fiscal year 2021. Comparing the same periods, revenue from Europe grew 42.6%, the UK grew 36.8%, and the rest of the world grew 63.0%. We grew in all three of our industry verticals during the quarter. Revenue from payments and financial services grew 34.3% for three months ended June 30th, 2022, Revenue from payments and financial services accounted for 51% of revenue unchanged compared to the same period last fiscal year. Revenue from TMT grew 32.5% for the three months ended June 30th, 2022 over the same quarter of 2021 and accounted for 25% of revenue unchanged compared to the same period in the prior year. Revenue from other grew 39.1% for three months ended June 30th, 2022 over the same quarter of 2021 and now accounts for 24% of revenue unchanged compared to the same period in the prior year. We now turn to our adjusted free cash flow, which is our net cash provided by operating activities plus grants received less net purchases of non-current tangible and intangible assets. Our adjusted free cash flow was £43.4 million for the three months ended June 30, 2022, compared to £32.6 million during the same period last fiscal year. Our cash and cash equivalents at the end of the period remained strong at £162.8 million at June 30, 2022, compared to £69.9 million at June 30, 2021. CapEx for the three months ended June 30th, 2022, as a percentage of revenue was 2.1%, compared to 1.2% in the same period last fiscal year. I'd now like to move on to some highlights for our fiscal year 2022. Endava's revenue totaled 654.8 million pounds for the fiscal year 2022, compared to 446.3 million pounds in the previous fiscal year, a 46.7% increase over prior year. In constant currency, our revenue growth rate was 47.6%. Profit before tax for the fiscal year 2022 was 102.4 million pounds compared to profit before tax of 54.4 million pounds in the prior year. Our strong revenue growth continues to translate into solid profitability. And our adjusted profit before tax for the fiscal year 2022 totaled £138.3 million compared to £92.1 million in the prior year, a 50.2% year-over-year increase. Our adjusted profit before tax margin was 21.1% for the fiscal year 2022 compared to 20.6% for last year. The year-over-year improvement in our adjusted profit before tax margin is mainly due to continued positive pricing environments and control of SG&A expenses. Our adjusted diluted EPS was £1.93 for the fiscal year ended June 30, 2022, calculated on 58.0 million diluted shares as compared to £1.30. for the previous fiscal year calculated on 57.1 million diluted shares, up 48.5% year over year. Revenue from our 10 largest clients accounted for 34% of revenue for the fiscal year ended June 30th, 22, compared to 35% for the previous fiscal year. Additionally, the average spend per client from our 10 largest clients increased from 15.6 million pounds to 22.3 million pounds up 42.1% year-over-year. We grew in all geographies on a year-over-year basis with North America up 62.8% year-over-year, Europe up 27.8%, the UK up 44.8% and the rest of the world up 59.0%. On a year-over-year basis, revenue from payments and financial services increased 46.6%, TMT increased 35.1% and other increased 61.2%. The year-over-year growth in other came mainly from mobility, retail and health tech. Our adjusted free cash flow was £107.2 million for the fiscal year ended June 30, 2022, compared to £82.7 million during the same period last year. CapEx for the fiscal year ended June 30th, 2022 as a percentage of revenue with 2.1% compared to 1.2% during the same period last year. Our guidance for Q1 fiscal year 2023 is as follows. Endava expects revenues to be in the range of £191 million to £193 million, representing constant currency revenue growth between 22% and 24%. Endava expects adjusted EPS to be in the range of 50 to 51 pence per share. Our guidance for full year fiscal year 2023 is as follows. Endava expects revenues to be in the range of 840 million pounds to 850 million pounds, representing constant currency growth of between 23% and 24%. NDAVA expects adjusted diluted EPS to be in the range of £2.35 to £2.38 per share. This above guidance for Q1 fiscal year 2023 and the full fiscal year 2023 assumes the exchange rates at the end of August 2022, when the exchange rate was one British pound to 1.17 US dollar and 1.16 euro. This guidance seeks to take into account potential macroeconomic headwinds. This concludes our prepared comments. Operator, we are now ready to open the line for Q&A.

Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then 2. At this time, we'll pause momentarily to assemble our roster. Our first question comes from Brian Bergen from Cowan. Please go ahead.

Hi, thanks. This is Zach Azeman on for Brian. Just wanted to pick up on that last comment on the macro considerations that were embedded in the fiscal 23 guide and hoping they can provide some more color there. Was there an extra level of conservatism embedded in the guide just given kind of the the lack of visibility in the second half of the year, and perhaps just some color on the revenue trajectory over the course of the one half versus the second half of the year.

Sure. Thanks, Zach. Yeah, I mean, we did look forward as we were putting the guide together and just take into account the fact that there's increasing macro uncertainty out there, and therefore, you know, just pulled back. a little bit to a sensible level. I have to say that today, in terms of the operation of the business, we're not actually seeing any of those impacts. We're still seeing strong demand coming through. But looking out 12 months, I suppose nine months now, we did take the view that we should just scale it back a bit. Anything you want to add on that?

Yeah, I mean, Zach, we have our normal sort of forecasting process where we look at contracted and committed and pipeline. The visibility remains as it always has done, which is strong, you know, six months ahead. So, you know, we have confidence very much into March. It gets a little bit less visible, let's say, you know, that six to nine months. But the guide sort of reflects that.

Got it. That's helpful. And just to follow up on gross margin, just hoping for more color on perhaps the considerations for the fiscal year as we think about pricing and wage inflation and the dynamics going on there. Any color on that front, please?

Sure. I think there hasn't been much actual change in terms of the outlook for wage pressure and pricing. I mean, our Q4 gross margin basically reflected us building a bench. If you think back, we've come out of an odd time with COVID, et cetera, where we had very strong demand and as a consequence had a pretty low bench. And we believe that we need to rebuild that bench back. to levels pre-COVID. So the gross margin that you're seeing in Q4, where we're at 37.8 on an adjusted basis, basically reflects about a percentage point of rebuilding that bench. And we anticipate, and it's included in the guide for Q1, we will still continue to build that bench up to the levels that we saw pre-COVID. So I think in terms of the near-term outlook, we'll see a gross margin stepping up from Q4. But as we progress through the year, certainly the second half, we'll be in a 40%, 41% gross margin.

Great. Thanks very much.

The next question comes from Mayank Tandon from Needham. Please go ahead.

Hey, Greg. Good morning, guys. This is actually Kyle Peterson from IONC. I appreciate you guys taking the question. I just wanted to touch a little bit on wage inflation and attrition, a two-part question. Has that changed at all? I know it looks like you guys are rebuilding the bench a little bit, and I appreciate the color on that. how much of the gross margin pressure, at least in the last two quarters, has been, whether it's wage inflation and merit increases versus rebuilding that bench?

Sure, thanks. Yeah, I mean, the wage inflation and attrition pressures that were running as we were at the height of that growth six to 12 months ago has definitely come off the peak. So wage inflation is actually pretty much normalizing to historic levels, and our attrition is falling again. So we were around 12.7% in Q4, which was down on the position we had in Q3. So from a staff point of view, actually just adding recruitment to it, you know, the access to good people, the wages that we're paying, and the attrition levels that we're experiencing are normalizing back towards pre-COVID levels.

Great. That's really good to hear. And, you know, just a quick follow-up, particularly on the UK revenue, I guess look to the little light on a sequential basis to us. Obviously, I know the comps are pretty tough from last quarter. Is there anything else going on there, either in a macro or demand perspective, or is that just kind of tough comps and looking at it sequentially is a little wonky quarter to quarter?

Did you say UK revenue there?

Yes.

No, I think the year-on-year growth was 37% in the quarter. Demand remains strong. So I'm not seeing the slight slowdown that you're referring to.

All right. That's helpful. Thanks, guys.

Thanks a lot.

The next question comes from Maggie Nolan from William Blair. Please go ahead.

Thanks. Hi. I wanted to follow up on that gross margin question from earlier. Last year, you kind of successfully balanced that gross margin decline with some declining SG&A as a percentage of revenue. Can you give some insight into what dynamics you're expecting for the coming fiscal year on SG&A in particular?

Yeah. So SG&A, we've done a very good job. historically in leveraging over it. So part of the, if we refer to Q4, the PBT, we kept our adjusted PBT margin of 20.1%. As you pointed out, Maggie, we had a slight dip in gross margin, but SG&A was pretty low, about 15.5%. There are sort of one-off reasons for some of that, but we expect the SG&A to sort of pick up. As we go through FY23, there'll be increased spending on sales and marketing. And we anticipate also some corporate development activity as well. So the SG&A, I think, is a low point at 15.5% for Q4. I don't anticipate it being at that level going forward. And I think the Q4 gross margin that we reported for Q4, I think things will pick up from here. We'll see a little bit of near-term growth Our pressure is we will rebuild that bench, but I think this is a sore low point, and we will rebuild back to a 40%, 41% in the second half of the fiscal year.

Okay, thank you. And then, John, you gave some comments about the client portfolio. It seems like there's an emphasis on maybe growing some larger accounts. You talked about low exposure to startups. But can you talk a little bit more about how you're assessing risk in that client portfolio areas like where you have about, you know, a quarter of revenue tied to private equity?

All right. Can you just repeat that last bit again?

I'm trying to reconcile kind of you mentioned the low exposure to startups amongst your client base with comments you've made in the past about how you have a roughly a quarter of revenue tied to private equity?

Sure. Okay. So the PE firms that we tend to be working with are the larger PEs who essentially bought large companies and are putting them through a transformation program. So actually, you know, in the payment space, in the insurance space, and some other sectors, they're actually fairly large businesses, or in some cases, very large businesses that have been acquired by some of the large PE firms. Whereas startups, we think of as being businesses that have been around for five years or so or less, and actually our exposure to those businesses is pretty low.

That's helpful. Thank you.

Thanks, Maggie. Again, if you have a question, please press star, then one. Our next question comes from James Fawcett from Morgan Stanley. Please go ahead.

Great. Thank you. I wanted to ask a couple of things related to engagement and then hiring generally. Can you talk about if and how your customers are responding to kind of the volatility in FX rates and if that's impacting how they're evaluating project scope and details, if at all.

We're not seeing any client sensitivity to FX rates and their decisions on progressing with projects. I mean, a lot of our clients are very global organizations by nature. And so they may switch from investing in a project in one currency to another, and we've seen a little bit of that, not that much. But actually, the sensitivity to FX rates doesn't seem to be impacting their decision-making on whether to progress with projects. I mean, the environment that we're experiencing is that There are a small number of clients who are trimming or delaying, but that's balanced, more than balanced by others who are accelerating their path to production and growing spend with us. And we're not seeing under the surface of that any particular geographic sensitivities. We're not seeing sensitivities to FX rates. Just across the portfolio, across the industries, we're seeing that effect happening.

That's helpful. And then on the hiring side, I think you made a comment that you were seeing wage inflation and that kind of thing return back to normalized levels. Can you just give a little more color on the hiring environment more generally? And is roughly 30% headcount growth still the maximum you'd feel comfortable with? And how are you thinking about your current recruiting algorithms?

Yeah, so in terms of hiring and the rates that we're paying in the market, it is normalizing, stabilizing back to pre-COVID levels, i.e. before that surge of activity that was driving high rates, high changes in the market. And we're also seeing the effect of that more normalized environment on attrition rates, which are dropping again. In terms of the range at which we're comfortable growing our headcount, we do see 30% as being a sensible max. We had a short period as we accelerated out of COVID where we pushed it above that level, and that was because we had a more senior organization, because we've grown slower for a couple of quarters as COVID hit, but we carried on promoting people. And that gave us the ability to just surge a little bit past that 30% headcount growth during that period. But that is no longer in the bag. And so we see 30% headcount growth going forward as being our sensible organic growth maximum. That does convert to slightly higher revenue growth because we see rate rises coming through with clients still. And so our maximum organic growth pushes a little bit higher than that 30% headcount growth.

That's really helpful. Thanks a lot.

Thanks, James. There are no more questions in the queue. This concludes our question and answer session. I'd like to turn the conference back over to John Cottrell for any closing remarks.

Thank you, and thank you all for joining us today. As you'll have noted, demand for our services remains strong. We've seen good demand right across all our verticals and geographies, and so we remain positive about the business position despite the macro uncertainty. We look forward to speaking to you in a month and a half or so on our next earnings call. Thank you.

Conference is now concluded. Thank you for attending today's presentation. You may now disconnect.