BigBear.ai Holdings, Inc. (NYSE:BBAI) Q4 2022 Earnings Call Transcript

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Julie Peffer: We don’t specifically give guidance out on headcount, and specifically not within one area. But I would say we are really focused on where we think we need to invest both on the on the standing side as well as on the analytics in terms of opportunities within the best customer sets. And we’re looking to, do two things. One is to pursue opportunities into adjacent into adjacent customers that, we haven’t had a position in. So our business development resources are critically important to that growth opportunity. But we’re also looking to continue to grow within customers that we already have. And so, that often falls on the program manager side of the house as well. So I think the way we handle that growth is, a two part answer, but it’s not something that we typically give guidance on.

Amanda Long: Yes, I think the only other note that I would make, in addition to just the comments that everybody sells is that we have a strong partner channel as well. And it’s a space that we’re growing, right. So when we think about sales, but I would also encourage you to kind of also think about it from an indirect standpoint and channel, we have a growing degree of interest in some established relationships already there. So for us, it’s not just about direct sales. I hope that helps.

Unidentified Analyst: Yes, thank you. And my second question is, should we assume first quarter to be the lowest revenue for the whole of the year, and then it builds from there?

Amanda Long: Julie, do you want to go ahead and take that one.

Julie Peffer: I can take that. I would not make that assumption. But again, we don’t get quarterly guidance. The nature of our business is that sometimes it is lumpy. And so when we give guidance for the year, there is a reason why we don’t give that quarterly guidance, we want to make sure that, we’re offering the best perspective we have on the year, but it can be lumpy, and it can move around. I mean, as I mentioned, we had contracts that got delayed at the end of fourth quarter that came in in Q1. And so that’s going to cause some lumpiness in our cash flow. But bottom line is, it’s just not something we’re comfortable yet. We may get to a point where we get there where we start to get quarterly guidance, but we’re just not quite to that level yet.

Unidentified Analyst: All right. My last question is about I mean, do you see analytical cyber engineering growing faster this year?

Amanda Long: So just to make sure that I understand. Are you talking about comparison between the two which will grow more? For

Unidentified Analyst: Yes.

Amanda Long: So this is something that and Julie you can add on that for me, right? We’ve been talking about this, for the past several quarters is right. Our analytics business, which is a higher margin business, for us an area where we’re seeing a lot of growth, right continues to be a part of our business that we expect to drive, right, a lot of growth for us overall. That being said, right. I would say, C&E is projected to have a good year as well. But I guess, Julie, I don’t know if you’d add anything or not?

Julie Peffer: Yes, I would just say, I would point to our performance, which you’ve seen recently, which is, we’ve clearly been focusing on a shift of our revenue mix toward that higher margin analytics segment, technology lead services, right. And so we’re pleased to see that in Q4 we had 39% growth in that analytic segment. And we expect that that that helps us drive better profitability in the quarter and in the back half of the year as well. And we expect that to continue into 2023. So yes, we do expect the analytics segment to grow faster.

Unidentified Analyst: Thanks a lot, guys. Thank you.

Julie Peffer: Thank you.

Operator: And we have reached the end of the question-and-answer session. I will now turn the call back over to Mandy Long for closing remarks.

Amanda Long: Thank you all so much for joining today. Appreciate the questions and the discussion. As I shared that I, I continue to be genuinely excited about BigBear.ai, our potential our future and we are doing all the right things and have a very clear focus on long-term and sustainable growth for the business. We appreciate all of your time, and we look forward to speaking with you again next order.

Operator: And this concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.

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