Thoughtworks Holding Inc. (NASDAQ:TWKS) Q4 2023 Earnings Conference Call February 27, 2024 8:00 AM ET
Company Participants
Guo Xiao - Chief Executive Officer
Erin Cummins - Chief Financial Officer
Rob Muller - Global Head of Investor Relations
Conference Call Participants
Bryan Bergin - TD Cowen
Moshe Katri - Wedbush Securities
Tyler DuPont - Bank of America
David Koning - Baird
Matthew Roswell - RBC Capital Markets
Paul Brecht - Wolfe Research
Rob Muller
Hello everyone and welcome to Thoughtworks earnings call for the fourth quarter of 2023. We will be recording today’s call, and during the presentation, all lines will be on listen only. Joining us will be Thoughtworks President and CEO, Guo Xiao, and CFO Erin Cummins.
The earnings press release was issued earlier today and is also available on our Investor Relations page at thoughtworks.com.
Some of the matters we’ll discuss on this call, including our expected business outlook and anticipated costs and benefits of our restructuring actions, are forward-looking and as such are subject to known and unknown risks and uncertainties. These include but are not limited to those factors described in today’s press release and discussed in the Risk Factors section of our annual report on Form 10-K and other reports we may file with the SEC from time to time. These risks and uncertainties could cause actual results to differ materially from those expressed on this call. These forward-looking statements are made only as of the date when made.
During our call today, we’ll reference certain non-GAAP financial measures. We’ll also provide growth rates in constant currency as a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. We include non-GAAP to GAAP reconciliations in our press release furnished as an exhibit to our Form 8-K. The non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. Thoughtworks assumes no obligation to update or revise the information presented on this conference call.
I will now hand over to Xiao.
Guo Xiao
Thank you Rob. Hello everyone and thank you for joining us, and thank you to all Thoughtworkers for the extraordinary impact they deliver every day with our clients.
2023 was a challenging year as we navigated a difficult macroeconomic environment. It was also a year of transformation and investment in our business. Last year, we embarked on the biggest change as a company in 20 years. We began the restructuring of our business to establish a new operating model. We’re pleased with the resulting cost savings in 2023 of $81 million on an annualized basis. We centralized our operational functions to reduce costs and drive efficiencies. We set up a global digital engineering center. The DEC helps us respond faster to clients, support the continued shift to offshore, and to manage utilization which continues to improve quarter on quarter on a seasonally adjusted basis. Finally, we organized our regional sales teams around an industry-based go-to-market so that we can build expertise and specialization in specific industry verticals. We began this restructuring during the third quarter of 2023 and we will continue the transition in 2024.