Arthur Turslove

Arthur Turslove asked for an update on the underlying software business, particularly its strengthening trend. He sought reassurance on the growth outlook, given the Q4 guide, reduced CapEx guidance, and restructuring. Finally, he asked for clarification on the cost savings, specifically if the 1% organic growth headwind next year implies abandoning business lines while the rest of the business maintains its current growth rate.

Answer

CEO Jennifer Scanlon highlighted the software and advisory business's 6.4% organic growth, with software growing nicely and expanding margins, noting positive reception for ULTRA releases and industry recognition. CFO Ryan Robinson confirmed that the Q4 guide, CapEx timing, and restructuring are unrelated. He agreed that exiting ~1% of business would create a 1% organic growth headwind for one year, but the underlying growth drivers for the remaining business are unchanged.

Arthur Turslove asked about the underlying software business's strength, given the project business's good performance in Q3 and the full-year outlook. He sought reassurance on the growth outlook, noting the Q4 guide, lower CapEx, and restructuring. Finally, he asked for confirmation that cost savings involved abandoning business lines, leading to lower organic growth next year, but with the rest of the business growing as this year.

Answer

CEO Jennifer Scanlon highlighted the Software and Advisory business's 6.4% organic growth, strong software growth with operating leverage, and 790 basis points margin expansion. She noted expanding software growth rates and positive market reception for ULTRA releases. Ms. Scanlon clarified that the Q4 guide, CapEx timing, and restructuring are unrelated. CFO Ryan Robinson confirmed that discontinuing service lines (approximately 1% of revenue) would create a one-year organic headwind, meaning if 6% growth was expected, it would directionally become 5%.