The company reiterated its guidance range but stated that revenue will likely fall on the lower end of the guidance of 18% to 22% year-over-year constant currency revenue growth. This is attributed to clients being cautious and delaying project implementation. However, profitability is likely to be on the higher end of guidance (20.5% plus) due to offshoring and other factors that reduce costs for clients.
The company has won many deals, but the implementation has been delayed, especially by European original equipment manufacturers (OEMs).
OEMs are being cautious due to global economic uncertainty and are unsure when deals will be realized.
To ensure projects are delivered at a lower cost to clients, the mix of projects has shifted, specifically with an increase in offshoring.
The company expects that demand will pick up in the medium term and that there are significant growth opportunities.
The company believes it can at least double its revenue with its current clients.
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