But I can’t really unpack it for you more than that. And then on M&A, I guess I’d say that where we’ve got strength in commerce – some of our CRM agencies, we’ve got strength in commerce. At Mediabrands, where we’re using Acxiom data, empowering the unified retail Media solution, we’re seeing that grow well, as I called out, we’re seeing adoption across a number of clients, but incremental scale in commerce, in the digital transformation area, I think in digital services, an observation, I guess, would be that deep engineering capabilities and scale are growing in importance in those areas. And so when I talk about our asset mix, you’ve seen where our strong assets that are very future forward have meaningfully benefited the Group as a whole.
So that’s a place where we see the opportunity to both get bigger, be bigger, and it’s where there’s demand on the client side.
David Karnovsky: Thank you.
Philippe Krakowsky: Thank you.
Operator: Thank you. Our next question comes from Steven Cahall with Wells Fargo. You may go ahead.
Steven Cahall: Thanks. So, Philippe you talked about strong long-term performance expectations at Data and Tech and Healthcare and Experiential. So I was wondering first if you could just talk about how Healthcare is performing year-to-date in line with that comment? I think Data and Experiential were both kind of flat organically in the first quarter. So should we also think that those will probably accelerate as you move through the year? And that’s part of what gives you that confidence in the organic guide, despite some of that creative work moving off? And then, Ellen, could you just talk to your expectations for working capital in 2024? The last couple of years, net working capital has been a pretty big drag. So I’m wondering if you have any guidance or expectations for that and for free cash flow to start to improve in 2024? Thank you.
Philippe Krakowsky: Sure. So, on Healthcare, I’d say IPG Health, in all likelihood, largest in the space, recognized as a leader in the space, to your point, accretive to our overall results for some time, and very, very broad penetration. We work with pretty much every major pharmaceutical company in the world. There’s opportunity there because we’ve got a range of agencies inside of that group. And as long as you are servicing the client in a, without any sort of direct competition at the drug or therapeutic area level, there’s continued opportunity there. And then we also have Media competence embedded there. Data and analytics, which we’re obviously looking to connect more closely to those horizontal enterprise-wide capability layers that we’ve been putting in place.
So that represents opportunity. So I think that Health performed well, and we continue to see that as something. We also have Healthcare inside of PR, we have it inside of our Media operations as well, large Healthcare clients. I’m not sure I’m tracking to your question around Data and Experiential flat, because we sort of, they sit in different segments, as we’ve always said, the Acxiom data and capabilities are very closely embedded to the very strong Media performance because it informs the product and the way that we deliver in that space. And then on the sort of Experiential side, which is in the smallest of our segment and specialized. We did talk about the fact that we’ve got a couple of those brands performing well and one of them which did not have a strong quarter.
But I’m not sure that I can get to where you see that as flat or how that is going to inform our view. I think we still see those all as areas that are secularly as it were stronger and should continue to be accretive to our growth.
Steven Cahall: Yeah, the question was kind of, do you expect those to accelerate a bit this year, assuming that creative is probably going to decelerate a bit?
Philippe Krakowsky: I mean, look, they have been, and as we said, we see them continuing to, we see PR performing well as well.
Steven Cahall: Great. And on working capital?
Ellen Johnson: Yeah, as far as working capital, it’s an area of focus for us. It always is. We’re very consistent to our approach, very disciplined, starting from when we take on new clients to how we manage payables. As I talk about very frequently, it’s volatile whether you get paid on the 31st or you get paid on the 1st, it creates volatility but doesn’t really impact the underlying result. That said, if you look at our use for the first quarter, as I mentioned in my remarks, it’s probably the lowest in about 15 years. So I do expect this year to be a much more normalized result.
Steven Cahall: Thank you.
Philippe Krakowsky: Thanks, Steve.
Operator: Thank you. Our next question comes from Craig Huber with Huber Research Partners. You may go ahead.
Philippe Krakowsky: Hey, Craig.
Craig Huber: Hi there. Good morning. Two questions if I could. Can you talk a little bit updated thoughts on about AI and the opportunity on your side for more efficiencies but also enhanced products and services you guys put out there. And I guess on the same token, do you feel that it might be an added competitive threat out there for third-parties entering the space, perhaps hurting you? That’s my first question. And then my second question just gives a little bit more meat on the bones about what happened in Asia here. Obviously a tough quarter as it’s been for the last five quarters, a little bit more, what’s going on there? Thank you.
Philippe Krakowsky: I guess maybe we’ll do the latter first, because it’s relatively straightforward. You see the size it represents relative to our overall. So in absolute terms, in a small quarter, you’re not talking about a huge dollar amount and it was just small. There’s no one event that took place. It was a lot of smaller cuts with a broad range of clients across the region. And the exception being India, where we have significant scale and a lot of very strong agency brands and capabilities. I mean, I’m not sure, Ellen, if there’s anything else on Asia that.
Ellen Johnson: No, I think you’ve covered it. It’s 7% revenue.
