Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Q4 2022 Earnings Call Transcript

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Ravi Kumar: I think it’s how I will see it. And of course, I need more time to assess, as I said, it’s listening to with both clients and my associates. But the way I see it is the opportunity ahead of us. I think we have an extraordinary set of client relationships, extraordinary talent pool. Looking from outside, I’ve always been impressed by the entrepreneurs spirit, the bold ambitions and some very good teamwork at Cognizant. The one trend I’ve always been excited about at Cognizant is the confluence of industry vertical experience with technology expertise, a very unique spot. It’s a very, very unique spot. So I could almost see this as a way forward strength and look for opportunities, which will fit the bill. And I do believe that we have been necessary organizational infrastructure to attract employees, retail employees, attract clients, retail clients and also win large deals.

That is how I see it. The opportunity in front of us is what I’m kind of configuring and calibrating the firm to instead of actually looking back and looking forward and trying to gear up for that opportunity with what we have and what we need to build. So that’s broadly what I can say. How I’m actually trying to approach my way forward direction.

Jason Kupferberg: Very helpful. And just as a follow-up, this might be more for Jan. But how close are we do you think to fully remediating the fulfillment issues? And then just any at least directional commentary you can give us on first quarter operating margins? Thanks guys.

Jan Siegmund: Yes. The fulfillment in the fourth quarter really improved very meaningfully. And it gives us part, I think, is part of the optimism we have that we can go to clients and fulfill their needs, which as we have talked in the third and fourth quarter. In the third quarter was hampered at times by our resource constraints. So I think the improvement in fulfillment will translate into accelerated and enhanced sales activity. That’s at least part of our thesis that we have. And it should obviously lower our need for recruiting and have efficiencies and the support for all of this will make clients happier and so forth. So the underlying engine running a smoother is really a shift compared to where we were throughout last fiscal year. So I think that’s really €“ that gives us hope and gives us optimism for it. Yes, we’re not giving a first quarter margins, unfortunately, so I can’t help you with any direction there.

Ravi Kumar: Yes. So just to add to what Jan said, I think my initial few weeks, one of the observations is I think our talent supply chain is grinding well or it’s kind of moving very, very well. Some of the clients I’ve spoken to in the last few weeks have started to tell us that we can start to get some of the demand moved to Cognizant with the fulfillment starting to look good. So I’m actually very excited about the progress we’ve made on fulfillment. I think we are ready to take more, and we’re ready to continuously sharpen the talent supply chain for the opportunity with our clients. Our clients are starting to see that traction with us.

Jason Kupferberg: Thanks for the comments.

Operator: Ladies and gentlemen, that is all the time we have for questions. I’d like to hand the call back to management for closing remarks.

Tyler Scott: Great. Thank you all for joining us. We look forward to catching up with you in a couple of months on our first quarter earnings call.

Jan Siegmund: Thank you.

Steve Rohleder: Thank you.

Ravi Kumar: Thank you.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.

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