CGI Inc. (NYSE:GIB) Q1 2023 Earnings Call Transcript

George Schindler: What’s interesting about that, it’s really a combination of things. One, the December quarter, we don’t tend to have people start in a December month because, typically, they’re taking a week or two off. In Europe, maybe even two weeks plus. And so, that’s not our strong hiring quarter. But it really is also that shift. And you’re right, there is the shift from that T&M body-based business to the managed services outcome-based that comes with some people already, and then the intellectual property. So I would expect to see our headcount moderate a bit compared to the prior year where you know that the SI&C was extremely strong. Overall bookings, though, interestingly enough, the managed services comes with typically longer durations.

And so, the bookings, I would €“ just looking at our pipeline, the deal size is up €“ duration is up, but the deal size is up. So, still have to close the deals, but that’s what I see. So, I think it’s not one-for-one with the shift, but the shift does play into that, for sure.

Jason Kupferberg: Just on the book-to-bill, would you expect that to soften a little bit in the March quarter?

George Schindler: I can tell you that the pipeline continues to be strong. The conversations are fruitful, but you can never predict that. That’s why we always say look at the book-to-bill on a trailing 12 month, not on a quarter by quarter basis because, by definition, bookings are lumpy.

Operator: Mr. Linder, there are no further questions at this time. Please proceed.

Kevin Linder : Thank you, Julie. And thanks everyone for participating today. As a reminder, a replay of the call will be available either via our website or by dialing 877-674-7070 and using the passcode 308479 as well a podcast of this call will be available for download within a few hours. Follow-up questions can be directed to me at 1-905-973-8363. Thanks again, everyone, and look forward to speaking soon.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for joining and ask that you please disconnect your lines. Thank you.