Syneos Health, Inc. (NASDAQ:SYNH) Q4 2022 Earnings Call Transcript

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And I think that’s something that’s unique about us, right? The fact that we can bring that kind of expertise in from a consulting perspective to be able to help our customers make some of these decisions around their outsourcing strategy and then being able to execute and deliver against that strategy and so we are really excited about that. We don’t — it’s not — we don’t believe it’s going to impact near-term awards. We think it’s more of a long-term growth driver. But I think it was really important just to establish that having that kind of impact with our customers is what we are all about. And it’s really, really important that we continue to grow our large pharma partnerships, right? That’s our number one organic growth opportunity and we want to continue to focus on that.

I don’t know if, Michael, there’s anything else you want to add there?

Michael Brooks: It’s still early days. So we are in discussions with the customer around their plans for the consolidation, their plans for increasing any funding if they are going to increase funding. So as we get more details, we will update our 2023 plan, 2024 plan and share them as it makes sense. It’s just too early for us to have any more information on the impact.

Justin Bowers: Got it. And then one for Jason and the team. I think you said in the prepared remarks that some of the initiatives that you have underway would result in $30 million to $40 million of net savings in 2023 and then $100 million into 2024. Is that — are we understanding that correctly that it’s net of the restructuring cost that you will be incurring this year or is that what the restructuring costs will yield this year? And then, just the second part to that would be, I think, it’s exciting that you put out an initial framework for 2024. But can you help us bridge maybe the high level, like, how you anticipate getting back to growth and expanding margins just given where the bookings are trending at this point, like, is there an exit rate on the bookings, like, implied in that forecast?

Jason Meggs: Yeah. Thanks, Justin. So on the first question, the savings that were noted are net of the investments that we are making into the business that are above the line in the programs, not the restructuring charges that are below the line. So just for clarity’s sake on that piece. And those initiatives include the current short-term actions that we are looking at around the real estate footprint and our related employee engagement efforts and hybrid strategy there, as well as just streamlining the operations. And all the things that Michael has talked about around technology and data and how we implant that into the business and the impact that has on, what we need to streamline the organization, as well as Velocity and the longer term have we have with our technology partner there as we move that forward.

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