David Koning: Yeah. No, it sounds good. And maybe just as my follow-up, what would be the callouts, like when you change the U.S. GAAP, what are the callouts there and will EBITDA or EBIT or anything change in ways that we should kind of think about?
Robert Dechant: Yeah. Karl, why don’t — I think that would be a perfect one to throw over to you.
Karl Gabel: Sure. Thanks for the question. We’re in the process, David, of like evaluating the changes. So we’ll not comment on that right now. But there are items like, for instance, lease accounting and things like that, that are different between IFRS and U.S. GAAP.
David Koning: Maybe another way maybe to ask it is will the bottom line — I’m sure within some of those components, things will change, like I’m assuming EBITDA maybe is a little lower, D&A is also maybe a little lower, so net. I’m just wondering kind of the net EPS going to just end up being pretty close.
Karl Gabel: Sure. It should end up being pretty close. Again, we’re in the process of changing the line items like you’re saying, could change. And it could change the net number a non-material amount. But we’re in the process of evaluating that.
David Koning: All right. No, that’s great. Great job.
Robert Dechant: And Dave, just kind of last on that. When we got here, and I’ve talked a lot about the vision that we set out. The vision was a growth company, great brands, all of this stuff. But the vision we put ourselves on, we were going to be top quartile on an EBITDA standpoint, from a profitability standpoint. And that’s always been a bit off, right, as we’ve talked. We’ve had a lot of exposure to U.S. and kind of repositioning and getting our footprint, looking how I wanted it, the vision of what we — and we just keep layering in and layering in those areas. And I will say, where we are right now, I feel like we are right there. And so we feel like we have now moved our business in not only a growth engine, not only with great clients and great service offering and a great moat around our business, but I feel like we are now moved squarely into the top quartile from a profitability standpoint. And I feel really good. The whole team feels great about that.
David Koning: Yeah. That’s great, guys. Thank you.
Operator: Thank you. And our next question comes from Arvind Ramnani from Piper Sandler. Your line is now open.
Arvind Ramnani: Hi. Thanks for taking my question. I had a couple of questions on your kind of business that’s exposed to kind of transactions or kind of more like volumes or no, few were like, more like sort of variable in nature where your contract is in place, but you’re getting paid based on kind of the volume that your clients are seeing. Is — are you able to quantify like directional, is it like more like 10% or 20% of your business? And have you seen sort of a pickup or a kind of pressure on volumes in that portion of the business?
Robert Dechant: Yeah. Thanks, Arvind. Look, our business is all volume driven based. I mean, it is — and again, our clients will pay us by — for lack of — for just simplicity thinking about this, they’ll pay us by — for an agent, kind of per hour around that agent. They’ll pay us per transaction like per call or per minute. That in the connect side of our business is really the operating model, the financial model there. So in each scenario, volume matters. Clients will say, I need X number of agents, and we’re building those. And their math is they’re forecasting that based around their volumes and what they predict the headcount they need. Other clients, they say, we’re going to give you X number of calls or X number of minutes, and then we have to go determine the headcount.
But at the end of the day, those are volume-driven. And so when I look at our — so directly to your question, the significant part of our business is driven by those volumes. Now, when I look at our business and our great client diversification, you have puts and takes. You have winners, and you have those that are — their businesses are struggling right now in today’s world. And so I think that’s where we think we are structured well with our business, with our client relationships and that diversification to continue to grow our business, to grow it strong, above where this industry is growing because we have that, call it, resiliency built into our client portfolio. And then we do a really good job operationally. And so even inside those clients, we take market share from our competitors, which even if they’re in a down environment like I highlighted, we’re able to — we go down a lot less than many of our competitors.
And at the end of the day, you put all that together, I like our growth trajectory.
Arvind Ramnani: Perfect. And then in terms of like new logos, I mean, clearly, like the work you’re doing with existing clients, that’s going to drive the bulk of this year’s business or even next year’s business. But like new logos kind of has some kind of impact on current year, but they’re more like two years, three years out when they really kind of scale. Are you seeing kind of increased traction sort of given kind of the work you’re doing with some of your clients around the BPO 2.0 or some decisions making sort of slowing just because of the bad environment? Just trying to figure out the velocity of new deals and how it could impact revenue like two years out.
Robert Dechant: Yeah. So I think right now, a lot of the big companies that have had layoffs and all, large layoffs, their decision-making has slowed or now they’re trying to assess their go-forward strategies with a lot less headcount. And so I think in the short term, those things have tapped the brakes a little bit on that. I absolutely expect that to start picking up, the pace picking up as they now sort through what their strategies are as they’ve taken this headcount off. And as — and I believe this, and I — one of the top leaders in this industry, and he’s been on the client side with very, very large global company, one of the largest outsourcing spends and validate it in these environments. The solutions are, we have to do more outsourcing.
We have to do more offshoring, and we have to now look at what types of technologies we can deploy, AI-based technologies, RPA-type technologies that can take workload out. And so I think that, that will provide a good tailwind to this industry here as I think the rush of downsizing kind of starts stabilizing.
