Operator: Your next question comes from Tien-Tsin Huang with JP Morgan. Your line is open.
Tien-Tsin Huang: Hey. Hi. Thanks for taking the question here. I just wanted to also hone in on the booking side. You, Mike, you talked about not depleting the pipeline and demand is still good, but visibility obviously is driven somewhat by macro. Is there wiggle room if large deals slip or if project work gets pushed out for you to still see that inflection that, that you’re calling out here today? And also similarly, just want to better understand, you mentioned better economics, including on uncompetitive takeaways. I’m a little surprised by that given the cost focus of clients, so just curious on what’s changed there, if you don’t mind elaborating on those two things on bookings? Thanks
Mike Salvino: Tien-Tsin, thanks for coming to my call. It’s good to hear your voice.
Tien-Tsin Huang: Glad to be on. Glad to be on.
Mike Salvino: Absolutely. Okay, so back to your questions in terms of which one do you want me to go to first?
Tien-Tsin Huang: Either one that’s easier, I kind of rambled a little bit. Just thinking about the wiggle room, maybe starting with that and even if things get pushed out a little bit, maybe on larger deals or project work. For example, it sounds like you got a good backlog. You feel good about the fourth quarter, so…
Mike Salvino: Let’s just, yes, 100%. Let me start with that one first. So when you think about wiggle room, I mean, look at what we’ve done on the revenue on the back of 0.83 and 0.87. So when I €“ when I look at that 12-month trailing book-to-bill, I can all €“ I can go all the way out five quarters 0.92, 1 €“ 1.02, 1.02 , 0.87, 0.83. Why am I doing this for you? There is wiggle room, okay, in terms of us making sure that we can sustain that revenue, okay. And like I said, the 1.34 is nice because that means that we’re going to be executing against all that, all that bookings come Q4 and then into FY 2024. So the backlog doesn’t have to be perfect for us to get to that flat to 1% guide. Does that make sense, Tien-Tsin?
Tien-Tsin Huang: It does. It does. It does. It’s important to go back to those.
Mike Salvino: Okay. Yes. And then your second question was…
Tien-Tsin Huang: The better economics market that I think you mentioned, including on the takeaways?
Mike Salvino: No. This is clear. So when I say that, it’s ITO. Okay? And if you think about what’s happening in the space, our competition is struggling a bit. And what’s interesting about the market right now is I remember those days. So when I took over DXC, we were the ones that were struggling in terms of customer satisfaction, in terms of our balance sheet, in terms of our free cash flow, all that stuff. And if you go back to 2023 that’s not where we’re at anymore, all right? And I’ve talked on numerous calls that we’re now the safe pair of hands, all right? And you’re talking to a CEO that literally likes the GIS space, all right? And as always said, that is key to what we’re trying to get done because we do think it can generate cash.
