StarTek, Inc. (NYSE:SRT) Q2 2022 Earnings Conference Call August 8, 2022 5:00 PM ET

Company Participants

Bharat Rao – Global Chief Executive Officer

Nishit Shah – Global Chief Financial Office

Ronald Gillette – Strategic Advisor and Head of Business Transformation

Conference Call Participants

Ethan Widell – B. Riley

Operator

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Startek's financial results for the Second Quarter ended June 30, 2022.

Joining us today are Startek's Global CEO, Bharat Rao; the Company's Global CFO, Nishit Shah; and the company's Head of Business Transformation, Ronald Gillette. Following their remarks, we'll open the call for your questions.

Before we continue, we would like to remind all the participants that the discussion today may contain certain statements which are forward-looking in nature, pursuant to the Safe Harbor provisions of the federal securities laws. These statements are based on the information currently available to us and are subject to various risks and uncertainties that could cause actual results to differ materially. Startek advises all those listening to this call to review the latest 10-Q and 10-K posted on its website for the summary of these risks and uncertainties. Startek does not undertake the responsibility to update any forward-looking statements.

Further, the discussion today may include some non-GAAP measures. In accordance with Regulation G the Company has reconciled these amounts back to the closest GAAP based measurement. The reconciliations can be found in the earnings release on the Investors section of their website.

I would like to remind everyone that a webcast replay of today's call will be available via the Investors section of the Company's website at www.startek.com.

Now I would like to turn the call over to Startek's Global CEO, Bharat Rao. Sir, please you may proceed.

Bharat Rao

Thank you, Raynon. Good afternoon, everyone. And thank you all for joining. Our second quarter results were in line with our internal expectations as we operated against the backdrop of shifting market conditions. While we experienced soft year-on-year declines in revenue, the prior year quarter received a large benefit of one-off revenue opportunities with the CDC, as well as general market tailwinds. Our priority during the second quarter was the ongoing ramp up of client services in several verticals by training and hiring additional agents to expand our capacity. While this process inevitably comes with a margin compression, we expect to recapture the profitability impact in the coming quarters.