CGI Inc. (NYSE:GIB) Q4 2023 Earnings Call Transcript

George D. Schindler: Yes.

Operator: [Operator Instructions] Your next question comes from Daniel Chan from TD Cowen. Daniel, please go ahead.

Daniel Chan: Hi, George. I just wanted to dig into a point you made earlier about the backlog. Can you give us a sense of where you are in converting that managed services backlog into revenue? And these expectations both for organic growth to accelerate from here as that backlog gets converted, or have some of those macro factors that you pointed out kind of temper that expectation?

George D. Schindler: Yes. That the — I think your last point is a true one. We’re seeing some of that managed services from the beginning of the year already come into some of the revenue, but the, it’s being counteracted by some of the macro trends we’re discussing. Having said that, we just had 60% of a very strong bookings quarter 114% come in to the backlog. And so, that will be working its way through over the next couple of quarters. So, it really is going to be, like I said, I think the tailwinds will more than overcome the headwinds as we move through the year. But point in time and when that happens that’s something we’ll have to stay close to.

Daniel Chan: Okay. That’s helpful. I also wanted to double click on a point you made earlier where your new businesses bookings were 37% this quarter, and that’s the highest mix you see in this year, which is great to see. So, anything to call out there in terms of the new business mix being so high, which seems to be counter to what we’re seeing in the macro without the uncertainty?

George D. Schindler: Yes. I think it’s really a matter of the investments we’ve been making in getting our story, our message out to the market. We’ve got targeted campaigns, to bring the value proposition we have to both new clients but also existing clients in new areas that we have not worked in. And so, I think it’s just a realization of some of the investments that we’ve made over the past a couple of years.

Daniel Chan: Okay. Thanks, George.

George D. Schindler: Yes.

Operator: There are no further questions at this time. I’ll turn it over to Kevin, for closing remarks.

Kevin Linder: Thanks everyone for participating. As a reminder a replay of the call will be available either via our website or by dialing 1877-674-7070 and using the passcode 584974. 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 1905-973-8363. Thanks again everyone, and I look forward to speaking soon.

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