Accenture plc (NYSE:ACN) Q2 2023 Earnings Call Transcript

And so maybe I’ll just €“ how does that all work in terms of yield then? What that means for next quarter? As we look at SNC, I mentioned that we had a modest decline, a decline in mid-single digits this quarter. We think we will be in the same zone overall in Q3, and we’re going to look to reconnect with SNC growth in Q4. It may take us a little bit more time than that. But I just want to make that connection to your question as it relates to our very strong consulting bookings in SNC. They were definitely part of that discussion and clearly part of that the reason why we are able to get the 35 clients in a $100 million, but you will see that come into our P&L at a little bit slower conversion.

James Faucette: Thank you. That’s really helpful. And then just quickly, on D&A, it seems like we’ve seen a little bit of a deceleration there. How are you thinking about D&A going forward? And what was inorganic contribution in the quarter and how should we think about that for the year? Thanks.

KC McClure: So I’ll just maybe reiterate the contribution for the year. So we now see inorganic contribution to be about 2%. And acquisitions can be lumpy. And we €“ as you know, we can’t always really control the timing, but there is no change to our strategy. In any given year, you’ll hear us kind of go up or down a bit on the percentage of contribution. No change.

James Faucette: Great. Thank you.

Operator: And our next question comes from the line of Bryan Keane with Deutsche Bank. Please go ahead.

Bryan Keane: Hi, guys. Good morning. Wanted to just ask about

Julie Sweet: Good morning.

Bryan Keane: Good morning. I just wanted to ask about the communications, media and technology group that did come in at flat local currency and is kind of a standout versus the others. Can you just talk a little bit about what’s happening there and what the outlook might be?

Julie Sweet: Yes. That’s primarily happening in North America where we’ve got comms and media and high-tech are more challenged, cutting back spending for sort of obvious reasons. And then our software and platforms business, which has been really a strong business for us for the last few years has €“ it’s still slightly positive, but has come down a lot, and I think for kind of obvious reasons that we’re all reading in the press. And so we do think this will last for a bit of time as you look at sort of some of the ways they are approaching spending in that. And €“ but it will eventually come back, and these are great companies. And we’re helping them in many places, but their spending is just lower right now. So that’s €“ I think long-term, we’re very positive.

These are all great companies. And this why it’s so great that we’re diverse, right, that we serve so many and not just diversity in industries but in markets because you’re seeing a different picture, for example, in comms and media in Europe, where it was growing double digits last quarter in growth markets where it was positive. So the diversity of our business really plays to our strength and why we’re continuing to deliver strong financial results.

Bryan Keane: Got it. Got it. And I was just trying to reconcile in my head the strong bookings, but the actions also taken to lower costs in fiscal year €˜24. What does that signal, I guess, for the demand environment in fiscal year €˜24? Should we expect slightly lower growth rates than typical as a result of the actions taken?