Accenture plc (NYSE:ACN) Q4 2023 Earnings Call Transcript

Julie Sweet: Yes. So, Jason, let me just kind of give you a little bit more color on guidance, right? So, as we mentioned, we’re not assuming in our guidance any improvement in the macro discretionary spend, but we’re going to pivot two years of growth. So the macro is going to be kind of this, you know, it’s not going to help us or hurt us this year is kind of what really essentially what we’re saying. In terms of, you know, color, I’ll kind of stick to what we have in the type of work, maybe is the best way of thinking about it. And again, I think just consulting, it’s going to build as we go throughout the year. And overall, I think, it’s important to know that we are going to build in this environment. We’re going to build as we go throughout the year.

Jason Kupferberg: Okay, and then on — just on bookings, any thoughts on the first quarter or the full-year? I know there’s some seasonal elements that typically consider in the November quarter? Thank you.

Julie Sweet: Yes, sure. So let me just talk about maybe a little bit of bookings. You know, in bookings, we’re going to start with the fourth quarter. I mean, if did come in a little bit lighter than we expected, and they can be lumpy, and we saw some deals, kind of, push out. Of the quarter, when it came to small deals, we didn’t see any change in the discretionary spend environment. And just to reiterate that we’re really pleased with the 21 clients that we had, over $100 million. Julie talked about that, if just reinforces our strategy to be the client’s transformational partner of choice and to be at their core. And lastly, as it relates to ‘23, you know, we look at bookings that we’re rolling for quarters and I mentioned this on managed services, but just overall we’re at a 1.1 book to bill, which I’m really pleased about for the fourth quarters.

And then for next year, looking at ‘24 Q1, you’re right, it’s seasonally a little lighter for us. However, we have a solid pipeline and we do expect that FY ’24 Q1 bookings will reflect growth over FY ’23 Q1.

Jason Kupferberg: Thank you.

Katie O’Conor: Operator, we have time for one more question and then Julie will wrap up the call.

Operator: Thank you. And that question will come from the line of Bryan Keane with Deutsche Bank. Mr. Keane, your line is open.

Bryan Keane: Hi, guys. Good morning. Wanted to just follow up on strategy and consulting. I know that that was an area that we were hoping at one point during the year that it was going to turn back to positive growth by the fourth quarter. And then I know we didn’t think that was going to happen as of last quarter. So I’m just curious, as we go through the year into fiscal year ’24, when do you think S&C might turn towards positive growth?

KC McClure: Yes. Thanks, Bryan. So, look, in terms of our full year range, at the top end of our full year range, which again, always where we try to be, it does reflect S&C reconnecting with growth, and that clearly is our goal. Now when — really the pace is going to differ by market, right, so it’s hard to tell exactly when it will be throughout the year. Of course, we’ll update you as we go through. And North America is our biggest market, it will be a bit more challenged.

Bryan Keane: Got it. I’ll leave it there because I know we’re at the end of the call. Thanks so much.

Katie O’Conor: Thanks so much. Take care.