Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights on the performance of BTS's other markets, particularly in Spain and Italy, and whether you expect growth in Q1? A: Jessica Skon, CEO: Towards the end of Q4, we observed a reversal in the slowdown, with growing pipelines in both Spain and Italy. While it takes time to win new work, the general sentiment is positive, indicating a turnaround.
Q: How sustainable is the strong growth in BTS Europe, and do you expect it to continue? A: Jessica Skon, CEO: The pipeline in Europe continues to grow, and while Germany remains somewhat volatile, the overall win rates are strong. We expect the positive trend to continue.
Q: Did the uncertainties related to the U.S. elections impact Q4 results in North America? A: Jessica Skon, CEO: In Q4, two major clients canceled their usual large sales kickoffs, impacting revenue. However, the market feels stronger compared to a year ago, with less delays and quicker deal flow.
Q: Can you elaborate on the AI-driven productivity gains and their impact on personnel costs? A: Jessica Skon, CEO: Last year, AI experiments led to productivity gains ranging from 1% to 17%. We have a conservative estimate of 11.5% productivity gain for this year, with significant reductions in contractor budgets, particularly in our assessment practice.
Q: What is the revenue model for the Verity platform, and do you expect growth in subscription sales? A: Jessica Skon, CEO: Verity operates on a per-user license subscription model. We expect the adoption and usage of Verity to grow quickly, contributing to subscription sales growth.
Q: What are BTS's main focus areas for acquisitions? A: Jessica Skon, CEO: We are focusing on both expanding our geographical footprint and acquiring tech capabilities like Verity. We are also open to partnerships before acquisitions to ensure strategic alignment.
Q: Will the canceled projects in North America be rescheduled for 2025? A: Jessica Skon, CEO: The canceled sales kickoff events are expected to return in Q4 2025, with a greater than 50% chance of being reinstated.
Q: How did BTS perform in the U.S. in Q4 excluding the impact of the canceled events? A: Jessica Skon, CEO: Excluding the canceled events, the U.S. market showed resilience, and we anticipate a stronger performance moving forward.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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