Cash & Acquisition
Q: How are cash used for ITI and repurchases?
A: Management explained that the ITI acquisition was completed for $26M in cash, and they have been aggressive with share repurchases—about $160M so far and planning an additional $90M—to optimize capital allocation.

Operating Margins
Q: What is AOPM outlook and SG&A guidance?
A: They expect adjusted operating margins to stabilize at around 19.3–19.4% with SG&A investments remaining modest after earlier strategic spending.

Share Count Impact
Q: How do repurchases affect the diluted shares?
A: They indicated that repurchasing roughly 4.5–5M shares will reduce the share count, with the full benefit expected to be reflected in next year’s diluted figures.

ITI Strategic Fit
Q: How does ITI complement data management?
A: Management noted that ITI deepens their data capabilities and expands their Global 1000 customer base, enhancing the breadth of their data management offerings.

Gen AI Monetization
Q: How will domain LLM be contracted?
A: They plan to integrate their proprietary insurance LLM either as part of an outsourcing engagement or via licensing agreements, leveraging it for operational efficiency and cost benefits.

Digital Ops Outlook
Q: Will digital ops sustain strong growth?
A: Management believes that demand remains robust due to clients’ drive for cost reduction and business transformation, ensuring continued strength in digital operations.

New Client Wins
Q: Are new client wins boosting future revenue?
A: They reported signing 39 new clients in the first half, with most revenue benefits expected to materialize in 2025 and beyond.

Analytics Performance
Q: What are analytics tailwinds and headwinds?
A: Growth in healthcare payments and data management is strong, though marketing analytics remains a slight drag on overall performance.

Gen AI Deal Conversion
Q: Are Gen AI deals large or small?
A: The pipeline shows a bipolar trend with some deals being substantial when bundled with outsourcing operations and others smaller as stand-alone implementations.

Model Monetization Impact
Q: Can domain models capture more economics?
A: They believe their deep industry expertise gives them a pricing edge, allowing for retention of greater economic value from their domain-specific models.

Backlog and Pipeline
Q: How strong is the pipeline and backlog?
A: Management described a healthy, robust pipeline across verticals, with significant backlog implementation planned for the second half of the year.

Restructuring Impact
Q: Did restructuring affect headcount growth?
A: A one-time restructuring cost of $6.2M impacted headcount growth slightly, but this measure is non-recurring and not expected to continue.

Insourcing vs Outsourcing
Q: What about in-sourcing versus outsourcing trends?
A: They noted that while clients use various models, their technology-led approach remains highly competitive and effectively complements in-house operations.

M&A and NVIDIA
Q: More M&A? How about NVIDIA’s role?
A: Management confirmed an openness to selective acquisitions and highlighted a strategic NVIDIA partnership to ramp up AI capabilities, expecting tangible benefits from the collaboration.

LLM Training Process
Q: How are proprietary LLMs trained and licensed?
A: They train their LLMs using data available from multiple client relationships—data they have permissioned—and the resulting IP is jointly owned when deployed, ensuring tailored, industry-specific performance.