Vertiv Holdings Co (NYSE:VRT) Q4 2022 Earnings Call Transcript

Giordano Albertazzi: Well, as I was saying, it’s — we can have a very sharp eye on all the signals in this moment in which the order dynamics are very dynamic. As we explained during the — as we were going through the deck, we have no signals in this moment that would tell us in this moment. I would tell us that there is red lumen behind the colors that you see here. But again, well, we keep our eyes wide open in case of something changes. When it comes to the EMEA, we see it more of a change of mix between cloud hyperscale and colocation, as I mentioned, in one of our — in my comments earlier. And again, simply a change of mix between what the hyperscalers and cloud providers build for their own direct infrastructure vis-à-vis what they leave and the color may flip. I would not read dramatically into that. Just saying, hey, EMEA is going through the same type of order normalization that a signal and mentioned already, and we’ll see how that plays out.

Lance Vitanza: Okay. And then just lastly for me. You mentioned — actually, I think it was David who mentioned that with E&I that there might be a need for some more tactical work there. I was wondering if you could flesh that out a bit. And then with respect to the backlog, I think you said the backlog was up like 100-plus percent. And wondering, if you could break that out a bit in terms of U.S. versus EMEA versus Asia Pacific?

Giordano Albertazzi: So, we may not have time to go into the details by region here when it comes to the backlog. But I must say that we are very, very happy about the sales leverage that we are obtaining, expanding the — adding the E&I portfolio to the broader Vertiv go-to-market. And indeed, if you will, we’ve been also quite surprised by how strong the market reaction has been. So with that, as David was mentioning, we are expanding capacity. We are expanding capacity quite vigorously specifically for E&I. The rest is about accelerating the integration, making sure that the same rigorous executional approach that we are instigating for Vertiv as a whole is applicable to E&I and continue to drive price.

Operator: Thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Giordano Albertazzi as for any closing remarks.

Giordano Albertazzi: Well, thank you. Thanks to all of you for joining our call today. I really appreciate the support and very much looking forward to reporting out on our Q1 2023 progress. So, stay tuned, and again a big thank you.