TELUS International (Cda) Inc. (TIXT) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, welcome to the TELUS International WillowTree Conference Call. My name is Jonathan, and I will be your conference facilitator today. [Operator Instructions] I would now like to introduce Jason Mayr, Senior Director, Investor Relations and Treasurer at TELUS International. Mr. Mayr, you may begin the call.

Thank you, Jonathan. Good morning, everyone, and thank you for joining us on short notice. Earlier this morning, TELUS International announced that we have entered into an agreement to acquire WillowTree. Hosting our call today are Jeff Puritt, President and Chief Executive Officer; and Vanessa Kanu, our Chief Financial Officer. At the end of their remarks today, we'll open the line to questions from pre-qualified analysts. Please be reminded that we are in our quarterly quiet period, so only questions related to this acquisition announcement can be discussed. We'll then turn the call back to Jeff for his closing remarks. Before we begin, I'd like to direct your attention to Slide 2 of the presentation that you see on the webcast and that is available for download on our website at telusinternational.com/investors. The statements made during this call may be forward-looking in nature, including all comments reflecting expectations, assumptions or beliefs about future events or performance that do not relate solely to historical periods. These forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from our current projections. We assume no obligation to update any forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on these forward-looking statements and carefully review the disclaimer contained in today's news release. Any forward-looking statements made during today's call are qualified in their entirety by the information contained in today's news release, presentation deck and other publicly available filings with securities commissions in Canada and the U.S. I'd also like to remind everyone that all financial measures we're referencing on this call and in our disclosure are in U.S. dollars unless specified otherwise. With that, I'll now pass the call over to our President and CEO, Jeff Puritt.

Thank you, Jason, and thank you to everyone who made the time to join us today on such short notice. This morning's announcement of our definitive agreement to acquire WillowTree represents the next strategic step in TELUS International's ongoing growth and evolution. I'm very pleased to have the opportunity to share some details about WillowTree, it's tremendously talented team members and why we made the decision to acquire the company. I'll also touch on how we'll come together to better envision, create and implement exciting brand experiences for our clients and capitalize upon the enormous continuing market potential for digital transformation. Founded in 2008, WillowTree is a full-service digital product provider headquartered in Charlottesville, Virginia, led by their Founder and President, Tobias Dengel, the company operates 13 global studios across the United States and Canada, as well as in Brazil, Poland, Portugal, Romania and Spain. WillowTree's team members include more than 1,000 highly engaged digital strategists, designers, engineers and project managers who partner with iconic brands to design and build digital products such as mobile apps and websites. Their approach fuses strategy, data, customer-centric design and high-quality engineering to deliver differentiated and measurable digital experiences that drive customer loyalty and employee engagement. The addition of WillowTree further expands TELUS International's end-to-end digital solutions, bringing highly sought after front-end design and build capabilities at scale to complement our existing portfolio of competencies. WillowTree will enhance our ability to support and accelerate our clients' digital transformations, unlocking innovative and disruptive digital solutions to help us pursue emerging areas of growth and opportunity today and well into the future. Like TI, WillowTree has an enviable roster of Fortune 500 companies as clients, including Anheuser-Busch InBev, the Canadian Broadcasting Corporation, FOX, Manulife, Marriott, PepsiCo and Synchrony, to name but a few. Clearly, just from this short list, one can see that WillowTree's clients span a variety of complementary verticals to ours, such as telecommunications and media, financial services, consumer goods, travel and hospitality and more. They will augment TI's scale and diversify our client portfolio, including within the financial services sector, where TI has been growing rapidly in recent quarters, as well as with global consumer brands. Overall, this acquisition offers extensive cross-selling and upselling opportunities for an end-to-end digital transformation provider like TI, which will help further increase our higher-value digital services mix and revenue per team member. WillowTree's focus on profitable growth was also an important factor in our decision given TI's long-standing strategy of balancing growth and profitability. Diving deeper into capabilities, WillowTree maximizes clients' digital investments through solutions that support their entire product life cycle. Their work in strategy development includes pairing rich qualitative research with quantitative data, which brings specific rigor to high-velocity product development, an important capability to win client mandates with compressed time lines. WillowTree's strategists and researchers infuse the entire design and development process with data-driven decision-making, diligently integrating client needs and goals with a human-centered approach. When it comes to product design, the WillowTree's team has a deep understanding of technology and leverages a user-centric approach through continuous cycles of ideation, design, prototyping, evaluating and iterating. WillowTree has fully integrated end-to-end development capabilities, spanning front-end and back-end expertise with everything from machine code and website engineering to technology implementation and systems integration, using proven DevOps principles to build and run scalable, high performance and secure systems in the cloud, WillowTree leverages partnerships with best-in-class technology platforms to deliver exceptional outcomes for their clients. As an added benefit, WillowTree is also active in leading growth marketing for clients by developing and implementing data-driven customer engagement and retention strategies. This includes product and marketing alignment, multichannel campaign execution, creative services, performance analytics and other elements of successful marketing strategy to maximize customer lifetime value and digital investments. Excuse me. The combined capabilities of TELUS International and WillowTree will provide incremental go-to-market differentiators relative to our peers as we continue to execute our growth strategy. Many of you will have seen the wheel pictorial we use to illustrate TI's comprehensive end-to-end capabilities across the design, build and delivery continuum. The addition of WillowTree to TI's ecosystem meaningfully broadens and deepens our reach across the entire wheel, particularly in the design and build areas. It's an exciting portfolio of combined capabilities that we're even more excited to unleash for the benefit of our existing and prospective clients. It's one thing for me to tell you about the vast expertise and knowledge that the WillowTree team brings to the table. It's another thing to see it in action. Allow me to share a couple of examples. Since 2014, WillowTree has been a key partner to PepsiCo, helping drive Pepsi's ongoing market leadership through its digital channels and leveraging their strategy, research, product design and custom development solutions. Over the course of their 8-year partnership, PepsiCo has entrusted WillowTree to oversee many digital initiatives, including its digital workplace transformation and the creation of its Super Bowl 56 Halftime app. Pepsi has been the title sponsor of the Super Bowl for the past 10 years. Last February, they partnered with WillowTree to help create a companion digital experience for the Super Bowl that would give consumers unprecedented access to the event, putting Pepsi's front and center on a day where brands fiercely compete for consumer mindshare. Mindtree and Pepsi held a series of internal workshops to find new ways to engage fans in a multiweek campaign in the run-up to the big game. Multidisciplinary teams brought rough sketches to life through high-fidelity mock-ups. Leading up to the Super Bowl, Pepsi engaged fans weekly with more than 30 in-app content drops, ranging from artist merchandise giveaways to exclusive interactive photo filters that were built in partnership with Snap. For game day, WillowTree and Pepsi launched an in-app exclusive, the Pepsi Ultra Pass, that granted fans access to a groundbreaking, fully immersive second screen viewing experience, effectively putting them on stage with the artists during the live performance. The app back-end infrastructure was also engineered to handle the significant load. The Super Bowl 56 Halftime Show was one of the most watched halftime shows in Super Bowl history. 85% of users streamed the full show in the app, and Pepsi was the event most talked about brand, thanks in large part to the digital experience provided by WillowTree. WillowTree also helped launch Pepsi Snackbot, an outdoor self-driving snack delivery robot that brings on-demand snacks and drinks to students on the university of the Pacific Stockton campus in California. WillowTree worked with PepsiCo to design, develop and refine all aspects of the product, the mobile apps, the software and the web account portal based on user feedback. This successful pilot launch of the Snackbot app lets students order PepsiCo snacks and beverage items from its fleet of autonomous robots from 9:00 a.m. to 5:00 p.m. delivered to more than 50 designated areas across the 175-acre campus without any fees. The next case I'll share today is WillowTree's client partnership with FOX, a relationship that has grown over the past 7 years. Described as precise, personal and powerful and developed in partnership with the FOX team, WillowTree's FOX Weather app shows users the world's weather and long-range forecast with beautiful visuals in a straightforward design. Other features include live streaming and severe weather video clips, as well as widgets on users' home screens to display information like Sunrise and sunset, high and low temperatures, weather warnings and peak ahead forecasts when relevant. Users can customize their experience by selecting locations that matter to them, like the homes or family members in other states or countries or favorite vacation spots where they can set up long-range forecasts for important upcoming events or subscribe to severe weather alerts. With more than 500,000 downloads, the FOX Weather app is the #1 most downloaded weather app in the App Store. WillowTree also partnered with FOX to build a mobile experience for FOX Sports that handled 3.4 million concurrent streams during Super Bowl 54, breaking the all-time record. This app has also repeatedly reached #1 on the Apple and Google Play App Stores. Last case I'll share today is WillowTree's partnership with Manulife, which helps them reimagine the user experience for their financial advisers. As a result of the financial industry shift towards more transparent products and investment vehicles, WillowTree worked with Manulife to create Maestro, a centralized platform for asset managers, enabling them to view Manulife's product data in a unified view. So Maestro asset managers can easily access daily prices, performance, rating and investment documentation for more than 180 funds, all of which were previously spread across different systems throughout the organization. Maestro has been a vital step in Manulife's digital transformation, generating 3x more efficiency through automation, as well as mitigating risks by centralizing disclosures. The platform also allowed Manulife to launch new digital sales tools and make customer interactions 5x faster. As part of Manulife's portfolio of businesses, WillowTree worked with John Hancock Investments to integrate their digital ecosystem, connecting its social media channels and website to create a seamless end-to-end user experience and drive increased customer engagement. WillowTree's design enables individuals reading the company's social media posts to connect directly to a related article on Manulife's website, as they then read through the information, any funds mentioned in the article appear on the side of their screen, so that users can click through to find more information much more efficiently. This partnership reduced the bounce rate by 50% and increased by 100%, the average session length, monthly active users, pages per visit and document downloads for an overall 35% increase in organic site traffic. With its 13 global studios, WillowTree is able to tap into differentiated sources of top-tier tech talent. It's high onshore and nearshore footprint augments TI's presence across the U.S. and in Canada and also adds 2 new geographies in Brazil and Portugal. WillowTree's product development philosophy is rooted in a build, measure and learn framework, which leverages agile teams to deliver products that are optimized and offer enterprise-grade performance. The company deploys a unique blend of agile product development principles, frequent product releases and risk reduction to ensure product flexibility, faster time to value and a high confidence in successful project execution for clients. WillowTree uses a vertical development methodology, whereby teams slice off product functionality along a vertical. Each slice includes everything from back-end API development to front-end user interface design to deliver fully functional and tested digital products and experiences. As a result, the team's agile iterative approach enables WillowTree to reliably deliver quality products for clients faster than competitors. A well-known brand in the industry, WillowTree has consistently built world-class digital products that have earned multiple awards, including from the Webbys, [ Kon Leong ] and Apple App Store, as well as achieving #1 rankings in both the Apple App and Google Play Stores. They've also been recognized for their industry-leading digital expertise by Deloitte's Technology Fast 500, Forrester Research and world-leading business and tech publications, such as Fortune and Fast Company. WillowTree has developed an impressive company culture that drives engagement and is paramount to its sustained success. 93% of WillowTree's team members are proud to work there and 91% believe WillowTree is an inclusive place to work. The company is consistently recognized, excuse me, for its outstanding culture and diversity, including Inc. 500 and Inc. Best Workplaces, Glassdoor's Employee Choice Top CEOs 2021 and Ad Age Best Places to Work 2021. As you know, TELUS International shares this keen focus on a strong and caring culture, as well as the belief that a highly engaged team is a critical differentiator in outpacing the competition, delighting our clients and attracting and retaining top talent. This strong commitment to putting team members and customers first just as we do was another important factor in our decision to partner together and further bolsters our confidence in our successful future together. With that, let me now invite our CFO, Vanessa Kanu, to provide you with a financial overview of the WillowTree acquisition.

Thank you, Jeff, and good day, everyone. I will echo Jeff in saying that we're very excited to be announcing our agreement to acquire WillowTree today. WillowTree has established itself as a strong industry player and a very successful business model with a financial profile focused on profitable growth, much like TELUS International since our inception. WillowTree has demonstrated robust financial growth and performance with 2020 pro forma revenue of 94 and 2021 pro forma revenue of $140 million, delivering 50% year-over-year growth. For the first half of 2022, WillowTree kept the momentum going, generating pro forma revenue of $94 million over 6 months, representing 48% year-over-year growth while maintaining a healthy profitability profile of approximately 20% adjusted EBITDA margin. WillowTree is able to achieve this growth while keeping capital expenditures as a percentage of revenue in the low single-digits, driving meaningful free cash flow conversion that will also help to support TI's rapid deleveraging. WillowTree's focus on higher-value design and build services leads directly to their superior annual revenue per employee of approximately $190,000 per employees, far ahead of Accenture, EPAM, Globant, Endava to name just a few names that you might be familiar with in our ecosystem. The integration of WillowTree will be top of mind in the coming quarters with particular focus on accelerating our joint go-to-market capabilities. Specifically the cultivation of our joint cross-sell and upsell opportunities to existing and new clients alike, which will help to amplify revenue growth while keeping our steadfast focus on profitability that both our companies have become accustomed to. We don't expect there to be redundancies between the 2 workforces. And currently, we don't anticipate any adverse job impact as a result of this acquisition. There will, however, be cost optimization opportunities to be derived from scale efficiencies as we grow the business. And TI's platform and resources will help to support the continued and accelerated growth of WillowTree's business. Looking at the key transaction details. WillowTree is valued at an enterprise value of $1.225 billion, which is reflective of profitable, high-growth, privately held digital companies focused on premium front-end solutions. The enterprise value is inclusive -- pardon me -- is inclusive of $210 million of assumed debt, of which $125 million will be settled in TELUS International subordinate voting shares, approximately $160 million will be reinvested by certain eligible management team members and settled subject to certain performance-based criteria with the remainder being settled in cash at closing that will be financed from upside and extended TELUS International credit facilities. We have committed financing in place that will extend the maturity of our credit facility for 5 years with consistent terms as our existing facility. Immediately following the closing of this transaction, TI's net debt to adjusted EBITDA leverage ratio as per our credit agreement is expected to be approximately 3x, which is comfortably within our target steady state leverage of 2x to 3x. As we have demonstrated in the past, we expect rapid deleveraging driven by our combined robust cash flows to support debt paydown, which you've seen us successfully do each quarter since becoming public. We anticipate closing this transaction in January 2023, subject to customary closing conditions and regulatory approvals, including antitrust review in the United States. Before we open the line to questions, I'd like to remind everyone of our quiet period as we're scheduled to report our third quarter results on November 4. Therefore, please limit your questions today to the WillowTree announcement only. Also due to the limited time we have this morning, we may not be able to get through the entirety of questions for which we apologize ahead of time. And we'll look to answer more of your questions on November 4 during our quarterly investor call. With that, I will hand it over to Jonathan before we turn the line back to Jeff for some closing remarks. Jonathan, over to you.

[Operator Instructions] Our first question comes from the line of Tien-Tsin Huang from JPMorgan.

WillowTree is based in my hometown. So it's pretty cool to see, got to say that upfront. But just quickly, Jeff, on cultural fit, just diligence there. I know it's been held by private equity for a little bit. But just curious how you got comfortable with that beyond what you said already? And just with client overlap, I just want to make sure I understood that. I heard complementary, but what's the opportunity from a client overlap or the complementary comment that you made? And is there any customer concentration? Sorry for a series of questions.

No. All good. Thanks, Tien-Tsin. Great to hear your voice once more. I had no idea Charlottesville was your hometown. I had a chance to go and visit there for the first time as part of this process. I never even heard of the city candidly before I went there. And man, is it a hidden jewel on the Eastern Coast of the U.S. We share 5 clients, that's the overlap. We've got over 600 of ours, they've got about 50 plus of their own and 5 of them in common. Their concentration is remarkably low, which continues on a consolidated basis post-close to improve our concentration mix materially and the complementary nature of it really is from a domain industry vertical perspective. And in terms of culture, as I know you know having spent so much time around us over the last few years, that was very near the top of our wish list, if you will. And Tobias, Mike and the rest of the leadership community at WillowTree really felt like family, almost like the first moment we got together. I've had multiple opportunities to spend time, one-on-one with Tobias, 2-on-one with Tobias and Mike. And through several interactions, I'm excited about our shared values, our shared vision for our businesses, for our shared industry. And we're pretty darn excited about the opportunity to combine what we think is going to be a truly differentiated and irresistible powerhouse across the design, build and deliver ecosystem. So early days, obviously, we're signed, but not yet closed. But I can tell you it sure feels like we're already going to be sitting down for Thanksgiving dinner together on a regular basis.

And our next question comes from the line of Stephanie Price from CIBC.

I was hoping you could talk a bit more about WillowTree's growth rate and the additional cross-sell opportunities that you see with the acquisition?

So we spent a great deal of time throughout diligence sort of evaluating both their historical growth rates, which have been really just remarkable and best-in-class, and evaluating their customer base and ours, the services that they're selling to their clients [ and reach ours ] and the opportunity for cross-sell. And we are, once again, very, very excited about the rich opportunity for we to be selling our services into one another's customer base. Again, early days, but sure feels like a marriage made in heaven in terms of the rich opportunity to be bringing their expertise, particularly around design and build. I know Stephanie, you'll remember from gosh, our IPO Roadshow, never mind subsequent earnings calls and Q&A. Although we have a capability of consequence at scale across all 3 elements, I have often confessed my ambition and desire to really turbocharge our design and build firepower, in particular, and that's exactly what this capability brings to the table. And so together, I think that cross-sell, upsell opportunity is going to be pretty darn exciting.

Our next question comes from the line of Ryan Potter from Citi.

I guess just one quick question to start is, I guess what has organic growth looks like for WillowTree? How much has it been from acquisitions or is it pretty much all been organic? And then just a question more so on continued kind of revenue mix and kind of delivery mix. Could you kind of break out the exposure in terms of like vertical concentration, geographic concentration on top-line, as well as like where the slurry mix is most concentrated?

Ryan, it's Vanessa here. So I think we did talk about WillowTree's historical growth rates. The growth rates I mentioned were actually pro forma. WillowTree has done a number of small acquisitions themselves. So they're not new to M&A, but the growth rates I mentioned to you earlier, 50%, [ 48% ] are on a pro forma basis. So you can take that all as sort of the organic growth, which, again, to Jeff's point is very exciting when you look at sort of comfortable companies in this space, not many are growing at that growth rate. But in terms of overall diversification, whether it's by vertical, geographically or otherwise, you did hear Jeff talk about the -- where we've got -- where WillowTree has a presence today, certainly, that is very complementary to where we, TI have a presence today. So we're looking forward to the expansion of that geographic base. And then from a vertical diversification perspective, absolutely, WillowTree brings that to the table as well. So again, very excited to bring together these joint capabilities. And I really do think that as we broaden the vertical base, we'll see less -- oversee more diversification, less concentration, particularly amongst the top 10 clients as well as we just mentioned earlier.

And our next question comes from the line of Divya Goyal from Scotiabank.

Jeff and Vanessa, exciting news here. I had a question on the company's product suite specifically, like is it -- does the company have any IP proprietary products? And if you could probably give some color on some of the recent acquisitions WillowTree made itself?

Thanks for the questions. They do have proprietary IP, both in terms of the applications they're developing, much of it, obviously, is owned by the customers for whom they provide, but they have accelerators, they have the ability to reuse and repurpose much of that capability. Although their revenue model is not based on a licensing recurring revenue, if that's what you're sort of looking to, again, it's still principally based on time materials, service and projects. In terms of -- forgive me, the second question you asked just now, I've lost the thread. Forgive me.

That's okay. I was just looking for some color on some of the recent acquisitions that the company has closed itself?

Yes. Sorry. Thank you. I'm having yet another seniors' moment here. 3 small ones over the last 3 years, that has really sort of lend themselves to helping they diversify access to talent in different markets, particularly in Brazil, for example, as well as sort of capabilities and accessing additional customers in adjacent verticals. The details of which, I think they've got published on the website. Happy to share further with you offline.

I would just add, Divya, that there were tuck-in acquisitions to Jeff's point. So from a materiality perspective, just keep that in mind.

And our next question comes from the line of Cassie Chan from Bank of America.

Congrats on the announcement today. I just wanted to ask what do you guys bring to WillowTree to continue to grow their business? And are you kind of leading to the question of like, are you expecting the current very attractive growth and margin profile of the business to kind of be more like [ TIXT ] going forward? So on the growth side, maybe in the 20% range and margins may be a little bit higher given some of the cost leverage opportunities that you guys mentioned before?

Thanks, Cassie. We are excited about helping the WillowTree now powered by TI, the nomenclature that we tend to use with acquisitions to support and amplify accelerate their continued growth. And as Vanessa mentioned earlier, accessing our scale should help further amplify and accentuate the profitability profile of the business. So on a combined basis, we think starting out this time with a business that is already growing more quickly than we just given the relative size and in the same ZIP Code of our profitability profile, it's not a fixer-upper, so to speak. We're off to a running not [ standing start ] and excited about the combined capabilities. What we bring to them, I think is among many things, including access to 600-plus clients or, I guess, 595 plus clients since we share 5 to do even more together, selling their capabilities into our customer base, as I said earlier, access to our balance sheet, access to some of our best practices. And they have, by design, no pun intended, really focused on the design build elements of the design build, deliver or run ecosystem, and has stayed away from the run and deliver part of that. And there too, we think there's this cross synergy opportunity for they to be inviting we, TI's best-in-class scale, deliver and run capability into their incumbent accounts. So the opportunity to be working together literally cross-selling to one another is where, again, we think we're going to find some significant exciting accelerated growth opportunities.

Got it. A quick follow-up. I felt like there are clear synergies with kind of the digital transformation segment of your business. How does it fit in or even maybe accelerate the strategy with some of the other parts of the business, like the digital CX, content moderation, AI, data solutions?

So again, a great question. I can tell you, as part of our confirmatory customer diligence discussion, our TI capability around content moderation and data annotation among other things was explicitly referenced by a few of the customer representatives with whom I spoke as part of that diligence exercise, not a capability that WillowTree has today, but something that, as I just mentioned, their incumbent customer base are looking forward to learning more about through this process, the minute we're closed. So again, I think the adjacency, the synergy that exists between the service lines, the capabilities that TI has created a first instance now in combination with WillowTree is going to be quite irresistible.

And our final question for today comes from the line of Daniel Perlin from RBC Capital.

Congratulations. My -- one of the things that stood out, just kind of quick math is when I look at like the revenue per client at this company, it's almost not quite twice as much as what you guys are generating, but pretty doggone close to it if I did the math right. So I just want to make sure I understand what they're doing differently that's enabling them to get that premium versus what you're able to do in the market? And then secondly, if you could just comment around how you got comfortable with the price paid here? Obviously, the growth rates, Vanessa, that you gave suggests that, that multiple should be pretty high. But just in the current market environment, I just wonder how you guys got comfortable with the price paid?

Dan, why don't I take your question and then Jeff feel free to top up. You mentioned revenue per client, I don't know if you actually meant revenue per client or perhaps revenue per employee just because sometimes on a per client basis, you may not be getting a true apples to apples comparison. So the revenue per employee that I referenced earlier in my prepared remarks, there are about $190,000 on an annualized basis. That is, if you look at the ecosystem, and I give certain examples of similar assets, EPAM, Globant, Endava, et cetera. I also named Accenture as an example because I know many of the analyst community are familiar with Accenture's revenue per employee. And you can see that WillowTree eclipses that, $190,000 on an annualized basis far superior to our existing revenue per employee. And I think Dan, that speaks to the premium services that they provide. Again, that's why we're very excited about acquiring this business because that obviously is going to help us as we amplify those cross-sell, upsell opportunities to also get an uplift in the overall total company revenue per employee profile. And in terms of valuation, pardon me, absolutely. I think the valuation that we've paid is actually not dissimilar to private companies in this particular space. Digital assets of this kind typically do have higher valuations. And when you look at WillowTree's financial profile, the revenue growth that we've talked about at very healthy EBITDA margins with very, very healthy free cash flows, we feel pretty comfortable with the overall valuation. And then the other thing I'll add is it's not just the valuation of the stand-alone business, it's also the revenue synergy opportunities that we see in this business going forward through the amplified go-to-market that Jeff spoke to.

Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Mr. Puritt for any further remarks.

Thanks, Jonathan. So if you're keeping count, the acquisition of WillowTree will be TELUS International's 10th since our company's inception in 2005. And as you likely have come to know, we have a successful track record of thoughtful and well-timed transactions that have, without exception, contributed meaningfully to our growth strategy, provided exciting career opportunities for our talented and engaged team members and delivered meaningful incremental shareholder value. I'm proud of the remarkable growth we've achieved over the past 17 years from 1,500 team members in the Philippines to approximately 70,000 in 28, soon to be 30 countries. We got here through a combination of organic growth and by judiciously selecting our acquisition targets, seeking out firms that share our vision for excellence and recognize the critical importance and competitive advantage of fostering a strong and caring culture. We look forward to formally welcoming WillowTree members of the TI family on closing and to kick off what I'm confident will be a dynamic, rewarding and fruitful partnership. Thank you all once again for joining us today. Vanessa and I look forward to connecting with you next week when we release our third quarter results on November 4. Be safe, everyone. Bye for now.

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.