Carlos López-AbadÃa: So, Philippines is an important leg on this tool of competing in the U.S. We are the — we have the best infrastructure in the world, second to none on near shore. And we’ve been very successful in selling that and selling customers — selling customers using that. The Philippines is another capability that is very important in the U.S. market. Now we’re very small in the US market, so could we have grown much more with just the nearshore? For sure. But these — as I mentioned, a number of customers, existing customers have been asking us and an offering volumes for us in the Philippines, we serve them. And that’s an incremental business for us. And also in terms of new customers, we’ve closed a number of customers recently, but also we have significant customers in the pipeline that will put us in a very favorable position to win their business having that capacity.
Operator: Thank you. And our next question today comes from Vincent Colicchio with Barrington Research.
Vincent Colicchio: Carlos, I’m curious your high value sales, did that increase in the mix year-over-year and is it increasing in the sales pipeline versus the prior quarter or the year-over-year period as well?
Carlos López-AbadÃa: Yes. Thanks, Vincent. Are you thinking in terms of high growth verticals, or are you thinking anything in particular?
Vincent Colicchio: High value sales, you used to talk about high value sales, automation, things of that nature. But business that’s higher than average in terms of margin?
Carlos López-AbadÃa: Yes. That tends to be fairly stable. The — one of the things that we’ve seen in terms of sales, and I think part of that is putting additional focus on sales. We’ve seen that the margins and the quality, if you will, of even more traditional services have been moving up as well. So as important as is in the high value sales, because exercises technology, positions us well, give us credentials with the customers, et cetera, et cetera. We’ve seen both the high value and traditional sales improving in terms of margin. The — which I thought — I asked the question — which I thought I’ve been asked the question by a number of investors recently in terms of high tech and high growth verticals with all the news on the press about layoffs in high technology et cetera.
So to take the opportunity also to answer that, we’ve seen from year-on-year, from last year to this year, a less decrease in terms of those high growth companies. Having said that, within the year we’ve seen increased quarter on quarter on quarter. So it’s a positive trend through that. So last year, for example, we had this quarter around 35% on the — in terms of these high growth verticals, in terms of the percentage of sales. This year we have 20%, but we’ve seen 12% in Q2, 20% in Q3 and we expect already just with the sales that we have closed and we’re closing a higher than in the 20s for Q4, which indicates that if there was a decrease year-on-year, it’s clearly increasing quarter-to-quarter. The thing I would point out despite the fact, I mean that, you’ve seen a lot of the news these days on the layoffs and challenges in high tech companies.
We did take the actions. We saw the problem coming, not necessarily on just those sectors but seeing the way that 2022 was shaping and potentially 2023, depending on the uncertainties that you see in the world. We took action early in Q1 and Q2. We took the pain, we took the cost and we’re beginning to get the benefits. So in that sense, we perhaps were ahead of the curve compared to those high tech announcements. Did I answer your question, Vincent?
Vincent Colicchio: And Sergio, one for you, if we assume no change to currency rates between now and year end, how much would the currency headwind be to your nominal revenue in €˜23 versus €˜22?
Sergio Passos: Sorry, can you please repeat? It kind of cut a little bit.
Vincent Colicchio: Yeah, I’m looking for some help in terms of estimating the currency headwind to your nominal revenue in €˜23 versus €˜22. Any help there?
Carlos López-AbadÃa: You mean expectations of sales rate?
Vincent Colicchio: Yeah.
