Science Applications International Corporation (NYSE:SAIC) Q4 2023 Earnings Call Transcript

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Unidentified Analyst: Yes, that was great. Thanks for that Prabu. And then sort of as a follow-up, recently, you guys have announced some hires around the Navy and Army business units. Just sort of wondering what you guys thinking is around that, what were some of the whole capabilities that were brought to the table by some of the recent business unit hires? Thanks.

Nazzic Keene: Nazzic here. Yes, thanks for noticing that. One of the critical elements in our type of business, services business, is the caliber and the talent and what the people bring to the table. And so very proud of over the course of the last few years, we’ve been looking across the organization to do a few things, where it makes sense, bringing some new talent with aligned to our priorities, aligned to the growth priorities, the margin priorities and most importantly, our customer priorities. And in many cases, look for the opportunity to develop the talent that we have in efforts like rotations to get additional skills in the company. And so as you commented on those two portfolios, we’ve been able to accomplish many things exactly on those fronts.

So we’ve got some great talent that has been able to do some rotation and build out their skill sets and become even more valuable leaders for SAIC. And we’ve had the opportunity to also bring in some talent from the outside that strengthen our team and make us a better company and also deliver stronger solutions to our customers. And so we take advantage of those opportunities when we can to ensure that we have the absolute best talent, the best leadership in the industry.

Unidentified Analyst: Okay, great. Thanks for taking my questions.

Nazzic Keene: Sure. Thanks, Rob.

Operator: And your next question comes from the line of Seth Seifman from JPMorgan. Your line is open.

Unidentified Analyst: Hi, good morning. This is Rocco on for Seth.

Nazzic Keene: Good morning.

Unidentified Analyst: Going back to the prior question, what sort of changes are driving the increased recompete win rate as well as the run rate on €“ win rate on new businesses?

Nazzic Keene: So this has been an area we’ve shared some of this over the course of the last many quarters. There is probably nothing that motivates the team more than losing. So we had some losses. Several quarters ago, you guys saw them, we felt them. And certainly, we try to take advantage of situations where we can do better. So I would say that a couple of losses really kind of accelerated some things that we were already doing. And of course, we’d love to win. This is a team that loves to win. So across the board, we have been doing some good sole searching on what we did well and what we didn’t do so well and have corrected those areas. We’ve talked about briefly, on my last question, the topic of talent, and we’ve been able to bring in some great new talent to strengthen our sales and business development teams.

And we have been laser-focused on on-contract growth, helping our customers deliver on their missions. So I think those are certainly some highlights, but I will tell you this is something that gets my attention on a daily basis, Prabu’s attention in the entire ELT really looking at what are those must wins inside the company, ensuring that we’re dedicating the resources to those areas of the opportunity or those areas of the pipeline that we have to win. And as Prabu mentioned on the last question that he addressed is also being pretty focused and disciplined on what we pursue because there is so much opportunity. There is so many RFPs. There is so many opportunities for us to make a difference. But to those €“ to the extent that we can focus on our key accounts and the GTA areas and our core areas of focus, we’ve been a little bit more differentiated in how we focus our attention and our money.

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