Exponent, Inc. (NASDAQ:EXPO) Q4 2023 Earnings Call Transcript

Rich Schlenker: Alright. Tobey, as to answer your last question, which was really about we have seen some other areas that have had some higher growth over the last couple of years. We definitely saw, as was highlighted in Catherine’s comments in the release that our transportation area and particularly that sector within the automotive was – did grow in the mid-20s as a percentage of our – that industry, I am sorry, grew there. So, that was strong in the last year. That is a very diversified portfolio of clients and experts that we have there. A lot of that good growth is being driven by the advanced driver assistance part of it, not necessarily by because clients were leaning in on just EV, Catherine did highlight one of our recent engagements there, but it is broad-based.

We definitely have work in the EV area. I would say that didn’t grow as much as we expected it to grow in the last year, which is consistent with what we are seeing from the industry and its challenges. But what we do know is that, that fleet of EVs or electric vehicles, it’s going to grow and grow substantially. It may not grow at the rate that the numbers the industry was putting out. But that is going to be a larger part of the fleet. And what we are seeing is continued complications and recalls across the client base in this area. But again, it still remains a small part of our total portfolio that’s in that area. And we would expect, even with the industry slower growth that it’s going to be a growing area for us over the next several years to decades.

Tobey Sommer: Thank you.

Operator: This concludes our question-and-answer session, and also the conference call has now concluded. Thank you for attending today’s presentation. You may now disconnect.