Francois Bourret : So what we’ve done for this — the guidance that is currently in the press release is on a full-year basis. And instead of trying to be over accurate in the — with the midpoint, we’ve just narrowed the range for the full year.
Operator: And for our next question, it comes from the line of Vincent Colicchio of Barrington Research.
Vincent Colicchio : Yes. I’m curious how hypergrowth performed in the quarter relative to plan and sort of what level we’re at now with that business?
Shelly Swanback: Yes. So hypergrowth has really played out as we expected. At the beginning of the year, we talked about it coming down to about $300 million, and that’s where we expect we’ll end the year. As Francois said, from a Q4 perspective, obviously, hypergrowth year-over-year played a material — with a material factor in what — in our guidance for Q4. And is there anything else you want to add, Francois? Just no changes really there.
Francois Bourret : Just a bit more color on the impact on our Q4 year-over-year. So the $48 million revenue decline, $40 million coming from hypergrowth and the balance is really the seasonal work that Shelly talked earlier. So those are really the 2 items that — and again, the hypergrowth is aligned to our expectation. And ultimately, we were hopeful that the healthcare season would bring us in line with last year.
Vincent Colicchio : And how would you characterize pricing and clients in terms of — no pun intended, looking for better terms?
Shelly Swanback: I’d say — I mean, I’d say pretty steady. I mean it continues to be competitive. Obviously, I think our conversations are a lot around really reducing any impediments for adding new partners, right, for getting started and that tends to be more about the conversation than new pricing or new terms per se.
Operator: For our next question, it comes from the line of Cassie Chan of Bank of America.
Cassie Chan: So I guess I just wanted to ask, if we sort of look forward into 2024, are you expecting 4Q to kind of be the trough and then maybe sort of a sequential improvement throughout 2024 given certain temporary headwinds that you’re expecting to abate and maybe some improvement you’re seeing in other parts of the business?
Francois Bourret : Cassie, it’s Francois. So as you know, and consistent with prior year, we do not provide guidance about 2024. And even now with the lack of visibility we have with the macroeconomic environment, it would be premature to give you any insight into Q1 and 2024 holistically.
Cassie Chan: All right. And then in terms of the healthcare, public sector, and financial services verticals, you said that grew organically, I think, 7%. What are you guys anticipating for 4Q for that? And just remind us again for telecom, how big is this sector or vertical for you guys? And what are you expecting for that to grow in 4Q?
Shelly Swanback: Yes. So the first — for first to your question on the 3 verticals, yes, Francois did say that they grew 7% in Q3, and they will grow low-single digits for the rest of the year. And we feel good about those verticals. We continue to have good opportunities in our pipeline for all 3 of those verticals. We also have a large client that will go live in pub sec at the beginning of next year.
Francois Bourret : And on the telco, just adding a bit, so you asked what is the size of the telco, and we are holistic in our portfolio. On a full-year basis, obviously, depending on the quarter, it will range between 10% and 15%. And right now, we’re seeing our telco vertical being relatively stable year-over-year and for the reason already mentioned by Ken.
Operator: Our next question is coming from the line of Joseph Vafi of Canaccord.
Joseph Vafi : Maybe switching away from the macro for a second. There have been a couple of really big mergers in the sector. Just wondering what you’re seeing as a result of those mergers? And then a quick follow-up.
Shelly Swanback: Yes. I mean, I think we definitely have some client opportunities that are a result of our clients wanting to diversify their partner network. And I think we’ll — I’m hopeful we’re going to continue to see more of those because of our offshore expansion — offshore and nearshore expansion because now we have more options to offer our clients. And we have those locations open now, and we’re ready to go. So definitely seeing some opportunities in our pipeline that we’re working on currently.
Joseph Vafi : Okay. That’s great. And then I know you mentioned doubling the Hyderabad headcount. Is there any specific technologies or specific — anything functional area, verticals or something that you’re seeing demand from to double that staff?
Shelly Swanback: Well, it’s really across the board. I mean — and just for — to be sure it was clear, that’s for our Digital business. And so the great news is we’re expanding — Dave is expanding that team really to support all of our partner practices, probably to varying degrees, depending on the work, but it’s not for one particular partner. We also have offshore capabilities in our analytics practice as an example. So this is going to be a major strategic focus for Dave going forward as well, and we’re making great progress there. We’re excited about that.
Operator: Thank you for your questions. That is all the time we have today. This concludes TTEC’s Third Quarter and 2023 Earnings Conference Call. You may disconnect at this time.
