Largest Client Growth
Q: How is growth with your largest client progressing?
A: Our relationship with our largest client remains strong. We've won multiple large pieces of business with them this year, scaling operations in every country where we operate together and expanding into two new countries. We're supporting them on vital initiatives like investments in Generative AI and trust and safety. We expect our revenue growth with this client to outpace the rest of the business, and their revenue concentration is likely to increase over the next few quarters.

Pricing Pressure and Margin Impact
Q: How are pricing pressures affecting your margins?
A: In pursuit of growth, we've made the strategic decision to be more aggressive on price. While this strategy has returned us to accelerating revenue growth with the possibility of achieving double-digit growth by the end of this year , it has also impacted our margins. Despite this, we continue to have the best or among the best EBITDA margins in the industry.

Investments and EBITDA Guidance
Q: What's driving the lowered EBITDA margin guidance?
A: The majority of the decline in adjusted EBITDA margin is due to investments we're making for growth. We're investing in people and facilities to support new business we've been awarded, including new office space, ramping up recruitment, and heavy investment in training. These investments are already underway and will contribute to revenue growth in Q3 and Q4, as well as into 2025.

AI Services Outlook
Q: What's the outlook for your AI services business?
A: We're seeing a return to sequential quarterly growth in AI services. We expect to achieve year-over-year growth in the back half of 2024, driven by new generative AI initiatives at our largest clients and success selling into many other generative AI companies. The demand has increased markedly in sophistication, requiring recruitment of people with master's degrees and Ph.Ds to rate the accuracy of large language models.

Nearshore Growth in Latin America
Q: What's driving growth in your Latin America operations?
A: There's been huge demand in the last 12–18 months for nearshore delivery. Clients are looking to reduce costs while staying in the same time zone and gaining bilingual coverage. Some clients seek alternatives to overexposure in the Philippines for English language support, making Colombia and Mexico attractive options. We believe we'll have a triple-digit revenue business in Latin America this year.

Competitive Environment
Q: Can you elaborate on the current competitive pricing environment?
A: In new deal pursuits, we're seeing buyers have more pricing power than before. This may be due to the industry's slowed growth rate and excess capacity in the system, with some competitors slashing their rates. While we've historically priced ourselves as a premium provider, we've had to price our offerings more competitively to drive growth.

Shifts in Customer Demand
Q: How has customer demand changed, especially among large tech clients?
A: After clients optimized costs in 2022, we've seen renewed excitement in areas like generative AI. We've capitalized on this opportunity, selling our value proposition to clients returning to growth mode. We're moving up the value chain, providing more sophisticated services like sales and lead generation, Tier 2 and Tier 3 support, risk and response, anti-money laundering, and know-your-customer work.