On the end your Part 2, I apologize for that long winded answer, Matt, but that was something that we’re excited about. On the analytics side, that’s stable stakes. But the question is, how good are you? So you have to have the analytics, but where we think we’re differentiating those difference is using AI through analytics, where you can, a, not be so reliant on humans, so you can scale it more cost effectively, but instead of surveying a low percentage of calls, you can survey 100% of the calls and then use those analytics, those AI analytics to find better insights acne [ph] insights. And we think that we are the stable stakes, but within that there’s going to be those that can build it as a strong competitive advantage, and I think we’re in a great position on that.
And Taylor will view on Part 3.
Taylor Greenwald: Yes. So like Part 3 related to the progression of the year and how we see some of the new wins rolling out. So if we look at revenue from Q1 to Q2, we are going to have a similar seasonal rent as we did last year, maybe just not quite as strong, but I think it will be very similar to last year. And so revenue from a Q2 perspective will be down slightly on a year-over-year basis. But with the wins, the four wins that Bob mentioned we won Q1 and then we have two additional so far in Q2, we’re going to see revenue ramping so that Q3 will probably be an inflection point on a year-over-year basis in terms of revenue growth, and then we see the contributing nicely to Q4, and we will return to growth in Q4. From a profitability standpoint, profitability often following revenue.
So on a year-over-year basis, the profitability will be down slightly as rev will be down slightly in Q2. But we’re also ambitious with all these deals that we’ve won and ramping, we – as you know, we expense our training costs as they’re incurred and we defer the trading revenue. So it has a negative drag on margins initially. So we’ll see some of that impact in Q2. But as these deals ramped and revenue grows and some of the training costs behind us, you’ll see a nice progress in margins in Q3 and Q4. And we always see a nice trend between Q2 and Q3 anyway just because of some of the seasonal training, which just falls off between Q2 and Q3, and we’ll see that again this year as well.
Matthew Roswell: Okay. Thank you very much.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Ryan Potter of Citi. Your line is open.
Ryan Potter: Hey, thanks for taking my question. Just to see the two deals that you mentioned in 2Q and with some of it coming from your Gen AI capabilities. But could you give an update on where you stand with your planned investments and rollouts of into Gen AI and various capabilities around that? And I guess what has client adoption been so far of Gen AI are we still in very early stages? Are most clients starting to ask for some Gen AI embedded into your current services? And tagging on that cadence question, how do you expect AI to kind of help you through the peak volumes even in 2Q.
Bob Dechant: Sure. Really good question, Ryan, and I appreciate that. So Gen AIs, it’s early, yes, very, very early. And so we have pretty much over the last quarter, and I believe I have this in my remarks that we now have 15 opportunities sitting in that pipeline. Some of those are embedded base clients. Others are kind of like this new win that we had that you’re asking us to deliver around that. But there’s not one – there’s not one only solution, might, it’s not like everything is voice bots or everything is chatbots as it relates to AI. Our clients are looking at us to kind of multiple facets around how to deploy AI to improve, either take cost out or improve the experience and improve the number of interactions that we can do.
And so we’re early on those and there’s different types. And so as it relates to kind of the impact it’s having, here’s what I do know. Gen AI is not really taking any volumes out of any of our clients’ business, but it has the potential to complement. It has the potential to move the actual human interactions to very complex and take the lower cost ones of. And if we can do that and we can use technology and create a high-margin business on that, it creates, I think, a powerful business model for IBEX. And so that’s kind of how we’re thinking around this. As it relates to – is any of this really changing the ability to maybe not ramp so much during peak season. My team and I have actually been out in front with quite a few clients where we have kind of building call deflection solutions for them where they don’t have to hire that many folks, and we do that.
Now I think those will take hold probably for next year. I think they got a lot of interest on those for this peak season and probably didn’t have the time to get there. And my belief is as we turn the corner here next year around; you’re going to see maybe some of those solutions being implemented and some pretty good technology scale solutions that will be delivering.
Ryan Potter: Got it. That’s helpful. And I guess on the excess seat capacity you guys have kind of called out. Can you comment on how much of that seat capacity is kind of left to sell into? And are there certain geos where you have more capacity than others? And I guess, in terms of CapEx, CapEx has been relatively low as you’ve been selling into seats already built, but can you comment on eventual additional buildup you might need and how CapEx might trend going forward and then how you decide on the organic versus inorganic growth?
Bob Dechant: Sure. Taylor, let me take the first part and then maybe you can kind of talk around the CapEx. Let me talk a little bit about the utilization around the geographies and such. And we – and I think you can see these in the growth rates of our regions that you’ll see. But our offshore regions have been growing pretty aggressively. So we’ve been building a lot of capacity in those regions. And then our nearshore regions have been going not quite as fast, a fast rate. So if I look at it right now, we have plenty of capacity in the nearshore. That’s why I’m excited about the one win that we have large client in Jamaica, because I don’t think the big chunk out of that, and that’s – should have strong margin flow through to margins.
