Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| So I think -- and that's something that we have also talked about in some of the content that we have released, that we expect generative AI and AI-driven models to essentially help us improve the quality of customer experience arising from better tools being available to agents to be able to respond |
| See the issue that we have at the moment is whilst we've got -- and I'm very happy that we've been able to secure the kind of wins that we had talked about |
| Despite increasing cost towards upgrading our technology and security, additionally, as we expand our offshore/nearshore mix, we should continue to see improvements with our adjusted EBITDA margins over time |
| We are improving our internal processes to make us more agile and proactive in managing our cost to align with revenue movements |
| Although it is still in the early innings of the transition, we are seeing positive signs that this organizational shift is benefiting starting from an efficiency and a pipeline conversion perspective |
| In fact, our momentum from the first quarter continued into quarter two as we successfully ramped up services with new clients and worked on increasing volumes with existing clients |
| I'm happy to be here and excited to play a role in the company's growth as we look forward to a promising future ahead |
| Turning to Slide 8, you will see in the first half of 2023, we have been able to sustain a healthy adjusted EBITDA margin despite the decline in revenue base compared to the prior year period |
| We are grateful to be recognized as a leader in our industry for the way we treat our employees and the impact we make when it comes to new innovations |
| We are able to provide a compelling offer that can reduce a company's expenses, while simultaneously enhancing the overall customer experience |
| With cost reduction being at the forefront of many discussions with customers, we believe the investments we have made to expand our nearshore and offshore services positions us well |
| The investments we've made in our platform over the past 18 months have really begun to take hold, and it's great to see these investments translating into a better customer experience across the board |
| While I'll dive into further details about our growth initiatives later on, it is encouraging to see that we have been able to sustain margins despite the decline in our revenue base as a result of our strategic divestitures that we have already made and plan to make |
| We expect our reputation for success to benefit us as we continue to scale our sales pipeline |
| Overall, we continue to provide best-in-class services to our customer base, and I'm proud to report our data showing us in top quartile of performance with our top 20 clients |
| We firmly believe that we are well positioned to capitalize on the opportunity in the long term and weather short-term headwinds |
| Overall, I'm proud of the progress we have made in the second quarter |
| The improvement in gross profit and gross margin is primarily attributable to lower employee cost, resulting from a higher portion of service delivered nearshore and offshore along with proactive pricing adjustments to account for the [inflationary] (ph) environment |
| This has played a crucial role in improving our cash flow in the current interest rate environment, and we expect to continue deleveraging the balance sheet going forward |
| We are always proud to be recognized by our team's hard work, innovation and workplace culture |
| If you look at the momentum we've already generated in the first half of 2023, we have more than doubled our new logo wins from 2021 and have already reached 75% of the total new logo wins we had in all of 2022 |
| But in that time, I've been impressed with the team's determination and rigor |
| As a result, we received a rating of A or 97 out of 100 from Security Scorecard, exceeding our industry average and continuing on trend upwards |
| While these high ratings are not new for us, the continued improvement and commitment to investing in this kind of business serves as a reminder of the premium we place on the security of our customer data and platform |
| We are happy to have his extensive experience and leadership on board as we enter this next phase of our growth strategy |
| Notably, many of the conversations were centered around the broader impact of artificial intelligence and how we can better leverage this groundbreaking technology to deliver enhanced customer experience |
| Adjusted EBITDA margin increased 20 basis points to 8.4% compared to 8.2% in the year-ago quarter |
| Gross profit margin increased 130 basis points to 12.8% compared to 11.5% in the year-ago quarter |
| And if you're able to deliver value, how do we ensure that we and our customers, both partake in the benefits arising from that |
| Alex Paris Very good |
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| Please note that second quarter typically is a low-margin quarter, given it has lowest count of working days |
| With uncertainty persisting in the global macro economy, we are seeing longer sales cycles and delayed decision-making with current and potential clients |
| I would expect that kind of holiday ramp, holidays, so getting into the holiday season that essentially increases the volumes is going to be a bit softer this year |
| At a consolidated level, including discontinued operations, adjusted net income decreased to $1.5 million or $0.04 per diluted share compared to $6.3 million or $0.15 per diluted share in the year-ago quarter |
| Bharat, you said in your prepared comments that in this current macroeconomic environment, we're seeing longer sales cycles and delayed decision-making, which is not surprising |
| But what we do see this year is that the holiday season volumes that we normally saw getting into quarter three are looking a lot softer |
| Please note that much of these declines were expected as we navigated the transition of our asset base and focused on higher-margin offerings |
| So to that extent, typically, quarter two for us in the past has been a lot -- has been softer, leading to stronger quarter three and quarter four |
| So I would think that the traditional increases that we had going into quarter three and quarter four might be a little more muted this time |
| But I don't think equally, we would have significant decline either because of the investments we're making |
| We don't foresee any major drop in our margins because of the operating efficiencies that we are currently driving, which we have done in H1, and that is what has resulted in our margins in H1 |
| And then last quarter, I think we talked a little bit about inflation and its impact on your business as well as the impact of your -- on your customers |
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