CGI Inc. (NYSE:GIB) Q4 2023 Earnings Call November 8, 2023 9:00 AM ET

Company Participants

Kevin Linder - Senior Vice President, Investor Relations

George D. Schindler - President and Chief Executive Officer

Steve Perron - Executive Vice President and Chief Financial Officer

Conference Call Participants

Thanos Moschopoulos - BMO Capital Markets

Paul Treiber - RBC Capital Markets

Richard Tse - National Bank Financial

Divya Goyal - Scotiabank

Stephanie Price - CIBC

Jerome Dubreuil – Desjardins

Rob Young - Canaccord Genuity

Daniel Chan - TD Cowen

Operator

Good morning, ladies and gentlemen, welcome to CGI's Fourth Quarter Fiscal 2023 Conference Call. I would now like to turn the meeting over to Mr. Kevin Linder, SVP of Investor Relations. Please go ahead, Mr. Linder.

Kevin Linder

Thank you, Collin, and good morning. With me to discuss CGI's fourth quarter and fiscal 2023 results are George Schindler our President and CEO; and Steve Perron, Executive Vice President and CFO.

This call is being broadcast on cgi.com and recorded live at 9:00 A.M. Eastern Time on Wednesday, November 8, 2023. Supplemental slides as well as the press release we issued earlier this morning are available for download along with our fiscal 2023 MD&A, audited financial statements, and accompanying notes, all of which have been filed with both SEDAR+ and EDGAR.

Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those expressed or implied and CGI disclaims any intent or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. The complete Safe Harbor statement is available in both our MD&A and press release as well as on cgi.com. We recommend our investors read it in its entirety.

We are reporting our financial results in accordance with International Financial Reporting Standards or IFRS. As always, we will also discuss non-GAAP performance measures, which should be viewed as supplemental. The MD&A contains definitions of each one used in our reporting. All of the dollar figures expressed on this call are Canadian unless otherwise noted.

I'll now turn it over to Steve, to review our Q4 financials and then George will comment on our full year performance and business and market outlook. Steve?

Steve Perron

Thank you, Kevin, and good morning, everyone. I'm pleased to share with you the results of our fourth quarter fiscal 2023.

In Q4, we delivered $3.51 billion of revenue up 8% year-over-year or up 2.2% when excluding the impact of foreign exchange. Constant currency growth was 3.4% in Europe and 1.1% in North America. From an industry perspective, we had growth across four of five sectors with particular strength in both health and government growing at a combined rate of 7.2% in constant currency. Government continues to be CGI's largest vertical markets now representing 37% of revenue, up 200 basis points when compared to the prior year. CGI delivers services and business solutions to support our government clients with their mission critical function such as cybersecurity, logistics, financial management and citizen services. IP as a percentage of total revenue was 22.6% in the quarter with the vast majority contracted as longer term recurring engagements.