Good morning, and welcome to the WNS Holdings Fiscal 2024 first quarter earnings conference call. At this time, all participants are in listen-only mode. After management's prepared remarks, we will conduct a question-and-answer session, and instructions for how to ask a question will follow at that time. As a reminder, this call is being recorded for replay purposes. Now, I would like to turn your call over to David Mackey, WNS's Executive Vice President of Finance and Head of Investor Relations. Please go ahead. Thank you, and welcome to our fiscal 2024 first quarter earnings call. With me today on the call, I have WNS's CEO, Keshav Murugesh, and WNS's CFO, Sanjay Puria. A press release detailing our financial results was issued earlier today. This release is also available on the investor relations section of our website at www.wns.com. Today's remarks will focus on the results for the fiscal first quarter ended June 30th, 2023. Some of the matters that will be discussed on today's call are forward-looking. Please keep in mind that these forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those factors set forth in the company's Form 20-F. This document is also available on the company website. During this call, management will reference certain non-GAAP financial measures, which we believe provide useful information for investors. Reconciliations of these non-GAAP financial measures to GAAP results can be found in the press release issued earlier today. Some of the non-GAAP financial measures management will discuss are defined as follows: Net revenue is defined as revenue less repair payments. Adjusted operating margin is defined as operating margin, excluding amortization of intangible assets, share-based compensation, acquisition-related expenses or benefits, and goodwill impairment. Adjusted net income, or ANI, is defined as profit, excluding amortization of intangible assets, share-based compensation, acquisition-related expenses or benefits, goodwill impairment, and all associated taxes. These terms will be used throughout today's call. I would now like to turn the call over to WNS's CEO, Keshav Murugesh. Keshav? Thank you, David, and good morning, everyone. In the first quarter, WNS continued to deliver healthy financial results and position our business for long-term success. Despite the challenging macro environment, WNS posted Q1 net revenue of $317.5 million, representing a year-over-year increase of 15.5% on a reported basis and 17.5% constant currency. Sequentially, net revenue increased by 4.1% on a reported basis and 3.6% on a constant currency basis after adjusting for foreign exchange. Our acquisitions added approximately 6% to year-over-year growth and had no impact sequentially. In the first quarter, WNS added six new logos and expanded 36 existing relationships. Sanjay will provide further details on our first quarter financial performance in his prepared remarks. Today, the advance of generative AI and its potential impacts on business and society are being discussed and debated globally. The growth in the size and sophistication of large language models is a significant technological advance that will have meaningful and wide-ranging impacts, but there is still much to be learned in the coming months and years about its costs, benefits, risks, and applicability. That being said, WNS is extremely excited about the opportunities GenAI will create for our business moving forward. As we work to create new and innovative use cases for GenAI, it is important to remember that GenAI is a tool that represents only one component of an impactful solution. Leveraging the benefits from this and other technologies will require the expertise of firms like WNS, who can combine deep domain and process expertise, advanced analytics, and global talent to deliver business outcomes. In fact, we believe that meaningful disruptions to our clients' models, such as technology advancements, help drive increased opportunity for BPM providers, including expanding the addressable market, growing existing relationships, and accelerating adoption. Over the past 15 years, we have seen several disruptive forces impact our clients' business. such as macro, cost pressure, the internet, the cloud, the emergence of big data, digitization and automation, as well as the COVID pandemic. Each of these themes has now proven to generate increased adoption of new services and process outsourcing. In addition, we also see Gen AI as a catalyst for driving higher value services solutions, as well as engagement models. We believe that Gen AI will enable WNS to continue moving our relationships up the value chain and shift engagements from headcount-based pricing to models based on ownership and accountability for results. As a result, we will be able to better align relationship objectives, delivering great outcomes for clients and stickier revenues with increased margin opportunities for WNS. As we are seeing already, one undisputable impact from GenAI will be improvements in productivity. Similar to other disruptive technologies, we understand that this will reduce the reliance on some existing skills, enhance the performance of others, and result in the creation of completely new roles. For BPM providers, committed year-over-year productivity improvements are business as usual. At WNS, our experience demonstrates that increased productivity headwinds, driven by technology and automation, have been more than offset by relationship scope expansion and the ability to attract new clients. This is due to the under-penetrated nature of both our industry and the majority of our client engagements, as well as the need for clients to increasingly leverage new technologies to remain competitive. As a result, despite market fears to the contrary, technology advancements have proven to generate net outsourcing gains for BPM providers. With this backdrop, I want to provide you with a look at WNS's current approach and capabilities with respect to generative AI. Over the past 10+ years, WNS has demonstrated a unique ability to leverage our culture of innovation, flexibility, and client centricity to adapt and flourish. We've been able to successfully manage several key industry changes and challenges, including Brexit, SMAC, digital, and COVID, while delivering industry-leading growth and margins for the company and co-creating differentiated solutions for all our clients. We believe that with respect to GenAI, innovation and adaptability will be important requirements for success. In addition, WNS has also the foundational skills necessary to help our clients leverage the capabilities of GenAI. Our internal investments and strategic acquisitions over the past several years in technology, data, and analytics, as well as domain expertise, have positioned WNS to meet our clients' evolving requirements. Today, we have approximately 5,000 people in the company with data, AI, and GenAI skills, and another 1,000+ people with the core skill sets to be rapidly trained and upskilled for growth. These include analysts, engineers, scientists, developers, and architects with skills across data, AI, cloud, enterprise, and UI and UX. In terms of solution development, WNS has already embedded GenAI capabilities into seven of our existing digital assets, which are now enabled and ready to go. In addition, we currently have more than 75 GenAI use cases in various stages of development across horizontals as well as verticals, of which nine are currently built, demoed, and ready for deployment. For example, in the healthcare space, we have combined our deep industry knowledge with GenAI to create a medical summarization solution, which can summarize, analyze, and synthesize complex clinical as well as medical records. By leveraging GenAI to process diverse data sets, including patient histories, lab results, medical codes, and treatment plans, WNS is able to help healthcare payers and providers access critical information rapidly, improve decision-making, and drive better patient outcomes. Most importantly, we continue to believe that our decades-long focus on domain-first remains our key differentiator, and that industry knowledge will be the most important enabler to leveraging generative AI. Our role as a domain-centric partner provides us with unmatched visibility and knowledge of industry-specific processes, data, and operations across a large number of clients. Since domain expertise is critical to data sourcing and selection, model training, and utilizing large language models to create new solutions, we feel WNS is uniquely qualified to help our clients leverage GenAI to solve industry problems, as well as drive great outcomes for them. To summarize, we believe that AI and GenAI create more opportunity than threat for our business, and that WNS is best embracing and well-positioned to take advantage of this technological advancement. With respect to our full year outlook, companies appear to be slightly more cautious about a sustained macro slowdown. As a result, we are seeing defensive behaviors from some clients, such as reduced volume projections and delays in decision making. To date, this has not impacted our revenues, and we believe the volume projections they are providing are conservative. Despite these challenges, we continue to expect low to mid-double-digit revenue growth and stable industry-leading margins for this year. WNS's new business pipeline remains extremely strong. The company is executing well, and we continue to invest in domain, technology, and talent in order to drive long-term sustainable value for all of our key stakeholders. I would now like to turn the call over really, to CFO Sanjay Puria, to further discuss our results and outlook. Over to you, Sanjay. Thank you, Keshav. In the fiscal first quarter, WNS net revenue came in at $317.5 million, up 15.5% from $274.8 million posted in the same quarter of last year, and up 17.5% on a constant currency basis. Sequentially, net revenue increased by 4.1% on a reported basis and 3.6% on a constant currency basis. Acquisitions contributed approximately 6% to year-over-year revenue growth and had no impact versus last quarter. Our sequential revenue growth was driven by broad-based momentum with both new and existing clients and favorable currency movements. This benefits were partially offset by the impact of contractual productivity commitments to certain clients. In the first quarter, WNS recorded $2.6 million of high-margin short-term revenue. Adjusted operating margin in quarter one was 21%, as compared to 21.1% reported in the same quarter of fiscal 2023, and 20.6% last quarter. Year-over-year, adjusted operating margin decreased slightly as headwinds from annual wage increases and return to office costs were largely offset by operating leverage on higher volumes and favorable currency movements. Sequentially, margin increased as a result of higher volumes, favorable currency impact, including the FX losses on our monetary assets and liabilities incurred in quarter four and high-margin short-term revenue. This benefit was partially offset by wage increases and higher return to office costs. The company's net interest income expense was $2 million of net expense in the first quarter, as compared to $0.2 million of net income reported in quarter one of fiscal 2023, and $0.4 million of net expense last quarter. Year-over-year, net interest expense increased, driven by higher debt levels, new operating leases and lower cash balances resulting from acquisitions and share repurchase. This headwinds were partially offset by higher interest rates and interest income on tax refunds. Sequentially, the unfavorable variance was a result of reduced benefits from interest income on tax refunds, lower average cash balances, and additional interest expense stemming from $40.2 million of short-term debt taken in quarter one. WNS's effective tax rate for quarter one came in at 21.8%, up from 21.1% last year and up from 15.8% last quarter. Both year-over-year and sequentially, changes in our effective tax rate are largely the result of shifts in our geographical profit mix, changes to the mix of work delivered from tax-incentive facilities. Sequentially, the tax rate also increased as a result of a one-time tax accounting benefit of $1.7 million in quarter four of last year. The company's adjusted net income for quarter one was $50.6 million, compared with $45.9 million in the same quarter of fiscal 2023 and $52.4 million last quarter. Adjusted diluted earnings were $1.01 per share in quarter one, versus $0.90 in the first quarter of last year, and $1.04 last quarter. As of June 30th, 2023, WNS balances in cash and investments totaled $242.6 million. The company had $206.2 million in debt. Included in this debt amount is $40.2 million borrowed for general corporate purposes against our line of credit during the quarter. In quarter one, WNS generated $19.5 million of cash from operating activities, incurred $17.8 million in capital expenditures, made scheduled debt repayment of $10.6 million. The company also repurchased 1.1 million shares of stock at an average price of $77.84, which impacted quarter one cash by $85.6 million. DSO in the first quarter came in at 34 days, as compared to 29 days reported in quarter one of last year and 32 days last quarter. With respect to other key operating metrics, total headcount at the end of the quarter was 59,871, and our attrition rate in the first quarter was 32%, as compared to 49% reported in quarter one of last year and 40% in the previous quarter. In the quarter, attrition for entry-level, voice-based CX services reduced significantly. We expect attrition will normalize over time in the low to mid-30% range, but to continue to be volatile quarter-to-quarter in the current labor environment. Build seat capacity at the end of the quarter 1 increased to 38,945. WNS continued our progress towards in-person operations, averaging 65% work from office during the quarter. In our press release issued earlier today, WNS provided our revised full year guidance for fiscal 2024. Based on the company's current visibility levels, we expect net revenue to be in the range of $1.296 billion- $1.354 billion, representing year-over-year growth of 12%-17% on a reported basis and 11%-16% on a constant currency basis. Our acquisitions are expected to contribute 3% inorganic growth in fiscal 2024. We currently have 92% visibility to the midpoint of the range. Top-line projections assume British pound to U.S. dollar, an average exchange rate of 1.27% for the remainder of the fiscal year. Our revised revenue guidance includes a headwind of approximately 1% for reduced volume projections from certain clients. As Keshav mentioned, we have not seen this reduction materialize to date, but in a weak and uncertain macro, it is not surprising that clients are being conservative related to their future volume commitments. We have incorporated this lower estimate into our guidance, consistent with the company's visibility-based approach. Full year adjusted net income for fiscal 2024 is expected to be in the range of $211 million-$223 million, based on a 82 INR to U.S. dollar exchange rate for the remainder of fiscal 2024. This implies adjusted EPS of $4.21-$4.45, assuming a diluted share count of approximately $15.1 million shares. The midpoint of guidance represents more than 12% growth in EPS. With respect to capital expenditures, WNS currently expects our requirement for fiscal 2024 to be up to $60 million. I would also like to mention that beginning this quarter, WNS has changed our segment for financial reporting purposes to align with our new SBU structure. You will now see revenue and margin contribution by SBU in our company metrics file and relevant SEC filings. We'll now open the call for questions. Operator? Ladies and gentlemen, if you wish to ask a question at this time, please press star one one on your touch-tone telephone and wait for your name to be announced. If your question has been answered or you wish to remove yourself from the queue, please press star one one again. In the interest of time and to enable everyone on the call to participate, please limit your queries to one question and one follow-up. Please stand by while we compile the Q&A roster. The first question comes from Bryan Bergin with TD Cowen. Your line is open. Hi. Thank you. I wanted to start on demand and the growth outlook here. Understand that your actual volumes have not been impacted yet, but can you give us some more color on the industries that are providing the more conservative forward volume projections? Also, how broad-based is the slower decision-making comment? Anything more you can say on that? Sure. Let me take a first cut at that, Bryan, and Keshav and Sanjay can contribute here. you know, when you look at where we're seeing the volume slowdowns, I think it, in terms of the commitments from clients, it's the places you would expect. We are seeing it in the OTA travel space, we're seeing it in high tech, we're seeing it in shipping and logistics. This is a very similar pattern to what we saw during the pandemic in, you know, in terms of conservativism. Obviously, the way our contracts are structured, clients have a pretty significant incentive to be conservative, in that if they give us projections and they're not able to meet those projections, they're on the hook for paying for resources. I think this is just a function of the environment. Certainly, you know, we would prefer that these commitments be stable to increasing in nature, but given the macro, it's not surprising. In terms of the demand environment, I think overall, the demand environment remains extremely healthy. We just wanted to call out here that we have seen for a handful of clients, and it's not specific to any vertical or any geography, you know, delays in decision-making, pulling the trigger on moving forward with an initiative. Don't view this as a, as an overall trend at this point, but just did wanna call out that we are starting to see some of that. Yeah. I'd just add, that, you know, we are actually continuing to see a very healthy pipeline, as I called out earlier, Bryan, one. Second thing is, we're seeing lots of new deals getting added to that pipeline. As Dave said, you know, because of, you know, the current macros, maybe one or two, you know, delayed decision, kind of, cycles taking place with one of the clients. More importantly, we are seeing a lot of conservatism in terms of people providing volume projections. The core is people, you know, clients are flying up and down, interacting with us across the globe. Our people, you know, are flying around and interacting with them at a pace never seen before. Overall, I am quite happy about the quality of the pipeline and the fact that in this macro, while transformation continues to be very, very important, we also think now that people are starting to look at the cost-saving initiatives as well, which is also adding, you know, to this pipeline. A little watch. Remember, when we went into the first quarter also, we saw similar trends, but, you know, the quarter actually has delivered far better than our earlier anticipation. Okay. Makes sense here. Conservatism makes sense. follow-up here on Generative AI. Just obviously, it's very early with all of this, but how are clients viewing WNS as a partner in this type of work? And what types of investments do you need to scale? I hear you on the solution development you've made internally, but I'm just curious what the nature is on those external client conversations. And then on the investments, do you see this as an opportunity to lean in incrementally on capability investment, or is this just more so in the existing run rate of what you do in your capability investments? Yeah. Great question, Bryan, First thing I'll tell you is, clients are extremely comfortable that they have a partner like WNS, you know, who has invested so solidly, first of all, in terms of domain, in terms of, technology transformation, as well as analytics over the years, and have led the way in terms of, you know, their own transform models over a period of time. I think the comfort that we are operating as an extension of their enterprises, and therefore we can lead them in unknown areas, you know, around Generative AI, proactively, is a big, big comforting factor. That's the first thing I must tell you. In many of my conversations with clients, I'm also realizing that a number of them are wondering why there is so much of hype on this particular area, right? The reason for that is because they say: "You know, you guys have led us through all the other disruptions that we have seen across the years. We are super confident that, you know, you will lead us through this one as well." It is not that any of them want to dramatically, you know, change their models overnight because there is a generative AI kind of outlook out there in the marketplace. What they're looking for only is comfort that our partner understands the space, can integrate it, you know, quickly as, you know, the space evolves, and can help us in terms of faster go-to-market, you know, higher productivity, you know, all the other good things. From that point of view, we are very comfortable. We spoke about, you know, a lot of initiatives that we're driving, you know, in-house, and some of the areas that we're focused on that will start impacting our internal, I mean, our existing clients at this point in time. We are also excited about the fact that a lot of this is now going to help us penetrate that 75% unpenetrated, you know, BPM space, right? Therefore, we'll have to watch this space because we are excited. We will keep making announcements around things that we are doing there, but it's going to be in a very measured manner, and it will be all around not only helping every one of our clients, you know, with the opportunity around generative AI, but also getting after new areas that we think are now getting opened up, as a result of our investments in this space. Maybe I'll just add over there that, you know, specifically, there will be certain acceleration of the investments, specific in the, you know, GenAI as well as the AI area, what Keshav spoke about. This is a time not to, like, shy away, but, leading those investments from a need of, you know, our perspective. Accordingly, maybe, you know, we start seeing quarter two margin to be a little bit lighter than quarter one, compared specifically along with some of the, you know, the return to office and some of the short-term revenue with the high margin what we saw in quarter one. Yeah. Just to add to that, Bryan, just to give some folks some color about what we're seeing in terms of activity levels and inbound questions from our customers. We are currently in discussions with more than 20 of our clients about specific GenAI use cases. At this point in time, we have secured commitments from three of those clients to implement those use cases. We are seeing people come to us, as Keshav mentioned, to help them with this journey, to understand what it means for them. I think we're in a great position to be able to lead them through this journey. Okay, thank you very much. Please stand by for the next question. The next question comes from Ashwin Shirvaikar with Citi. Your line is open. Thank you. Good day, gents, and congratulations on the quarter. I wanted to ask about the new organizational structure implemented at the beginning of April. Are you beginning to see the benefits that you expected, or is it too early? I mean, in terms of just looking at growth profile, looking at demand, looking at responsiveness, what metrics are you using? Any kind of early update that you can provide would be great. Yeah, thanks, Ashwin. actually, it's, you know, early days at this point in time, and, what I can say at this point in time is, I think, the new org structure, you know, has actually been digested well, has been implemented well, has been accepted, very well. We can see that, you know, as far as the four SBU are concerned, the impact with clients actually has already started being very positive, because now there is much more focus on a global footprint, of, you know, every client. Sales is now handled globally, and therefore we're seeing, you know, some larger global deals enter as a result, you know, of this, organizational structure. Similarly, we are also seeing leadership pipeline inside the company obviously increasing because, you know, you're having an end-to-end, you know, P&L responsibility with four senior leaders inside the company. That obviously generates a, you know, a different kind of behavior, including a lot more aggression in terms of focusing on their specific areas. At the same time, the clamor for investment within each of those SBU structures, you know, in some of the areas that we have traditionally invested in, but also all these new areas, including the need for, you know, tuck-in kind of M&A, you know, and capital allocation, is also, you know, emerging at a very logical pace, I would say, as a result of this restructuring. While it's early days, I'm very satisfied with the, you know, outcomes that we're seeing, you know, already in terms of much higher client centricity, much more focused activity around the sales pipeline, much better understanding of clients' needs in a transformative, you know, market. Finally, a much deeper understanding of how to invest and maintain and grow margins in a, you know, very transformative, you know, macro. Got it. Got it. That's good, that's good to know. The second question is, as I sort of look at the updated outlook and the updated visibility number, you know, I'm kind of trying to see what changed. On the positive side, there's FX, there's 1Q beat, there's the continued seeming continued strength in terms of flow-through from signed deals. On the negative side, you've already reflected the lower visibility. Are there other factors that perhaps I'm missing, maybe at a segment level, like, you know, I see the BFSI strength, for example, any, you know, any overall color in terms of additional points we should be thinking of? No, I think, Ashwin, you have covered, you know, all the specific points, whatever is there. You know, other than just want to highlight that, you know, this visibility, just want to remind that, you know, also factors based on certain of the short-term revenue, based on certain acquisitions, what we have done, but with a very high growth opportunity over there. That itself, you know, has a couple of percentage point, impact on the visibility, right? Still, it has gone from 88%- 92%. I just wanted to remind that this does not still include, the short-term, revenue, where we don't have a visibility, as we go forward. Yeah. I think to Sanjay's point, Ashwin, this is pretty much business as usual for us. If you were to look at kind of what's really changed from a couple of months ago when we provided guidance, we obviously had revenue come in stronger for Q1, which is a positive. The only other thing that's changed is we've baked in that 1% headwind from the lower volume forecast that we've received from clients. Again, I think that those will hopefully prove to be conservative in nature, other than that, this is business as usual for us. Got it. Okay. Thank you. Please stand by for the next question. The next question comes from Mayank Tandon with Needham & Company. Your line is open. Great, thanks. Hey, guys, I'm on for Mark today. Thanks for taking the questions here. Just wanted to ask about those new logo wins, the sixth this quarter. Could you guys talk a little bit more about those in terms of the size, scale, and what verticals those were in? Sure. I can take that. you know, we usually don't discuss the size, but I think when you look at the six new logos, one of them is what I would consider to be transformational in terms of the size and capability to become a top 10 customer. Very excited about that specific opportunity. With respect to the areas where they are, again, kind of reflective of our overall business. The six logos, we've got two in banking and financial services, we've got one in travel, we've got one in insurance, we've got one in retail manufacturing, and we've got one in healthcare. Again, sixe logos spread across five different verticals. You know, I would say three of them good in size, with one of them with the potential to be a very meaningful contributor to the company over the next two to three years. Got it. That's helpful. Thanks for that. Just a quick follow-up. You know, are you guys seeing any difference in terms of demand, between your larger versus smaller customers over the past few months? I'll take that. You know, frankly, like I mentioned earlier, we are seeing, you know, we're continuing to see excellent conversations with, you know, every one of the clients and prospects that we have. We're continuing to see a lot of travel up and down in terms of, you know, what is the art of the possible in terms of clients' transformation agenda and how the business can help them. The pipeline continues to be healthy and continues to fill up extremely well. As I mentioned, in addition to the transformation agenda, we're starting to see also people wanting to look at now the cost saving agenda as well. Overall, we actually think it should be, you know, positive for us. The only change that we're seeing is clients not wanting to commit, you know, volumes and, you know, get committed at this point. I think that's much more to do with they're trying to figure out how this whole, you know, macro is going to play out, what's going to happen with inflation and therefore, you know, impact on their own businesses. The green shoots there also is that in the last few weeks, we have seen that countries have started announcing, you know, better control over inflation. You know, I saw that the U.K. also announced, you know, better numbers on inflation yesterday or the day before. We, we are expecting that over a period of time, this will all play out once again, positively for the, for the sector. Generally, I think, you know, the sector is very much insulated from all of these issues at this point in time. Right now, it's much more of a projection issue from a customer's perspective, less from our end. Yeah. I just want to reiterate to Keshav's point. When you look at the first quarter performance, on a constant currency basis, six of our eight verticals grew at over 20%. Of the two that didn't, one is healthcare, where we had the significant ramp down of a large process. Keshav's point, what we're seeing is that the demand for our services is healthy and broad-based. You'll see a very similar profile if you look at this by geography and by service level as well. Yep. Okay, awesome. That's helpful. Thanks, guys. Nice quarter. Thanks, Sam. Thank you. Please stand by for the next question. The next question comes from Puneet Jain with JPMorgan. Your line is open. Hey, thanks for taking my question. A quick question on GenAI. For the new clients or processes that you expect to come your way, driven by GenAI, who's servicing those processes right now? Like, will those be competitive wins, or you think like, it can result in increased outsourcing by clients? Actually, it's a combination of both. See, for them to make changes on existing is going to take some time, right? I think all they're doing there is getting comfort around the fact that, you know, how we can lead them in some of those areas and what benefit will be available to them, and, you know, and how, what are the processes for getting that done. I think some of these conversations are also emerging and the, you know, POCs being discussed are also around new opportunity areas, which I think is very, very exciting from our point of view. See, Puneet, the thing I want to mention is that, you know, this obviously is something that everyone is looking at as, you know, one of the biggest democratization forces or drivers for the future. Everyone wants to be, you know, on this journey, wants to have a solid partner, you know, whom they trust, and who works, as I keep saying, as an extension of the enterprise to help them get there, and are also looking for new proactive ideas from people like us in terms of that 75% area, which is underpenetrated, where we actually believe that they can, you know, start models using some of these, you know, technologies to go after areas that they have kept insulated, you know, from the industry for some time. That's how, you know, it is emerging. Let's wait and watch the space. You know, from our point of view, it is, you know, helping our clients understand that in some of the current engagements, we will actually introduce some of it and, you know, how we will share the benefits of it and how we will then take it into other new processes and how we will move the model to a completely, you know, outcome based or a different model, as a result of which they are only focused on the outcomes and less on how we do it. Got it. For this quarter, in your revenue breakdown, it seems like North America was softer than other regions. Can you talk about what you expect there, specifically, given that there was, like, a large insurance client that was ramping up in North America or is expected to ramp up in North America? Yeah, I know maybe, Puneet, I'll just take that. You know, it was softer because if you recall that, you know, there was a one large healthcare process ramp down, and it was one of the reasons, because it was a North America client. Having said that, you know, on the insurance side, as well as Dave just spoke about, the growth has been across. If you see all the verticals, you know, which is more than 20% growth over there. We believe as we move forward, you know, the growth is going to be widespread across, including North America. Is that healthcare client like that headwind from that, is that completely in numbers by now or expected to be a headwind on sequential basis going forward? No, at this stage, you know, it's already, completely done, you know, as we speak, for quarter one. Got it. Thank you. Thank you, Puneet. Please stand by for the next question. Next question comes from Vincent Colacchio with Barrington Research. Your line is open. Yes, Keshav. I can see the Generative AI being a, you know, creating a bigger opportunity over time. In the near term, if I'm in the client's shoes, I've got to have some confusion about, you know, how to invest my dollars, if Generative AI is going to provide all these new opportunities. I'm curious if, you know, is this impacting sales cycles or, you know, just client interest in moving forward with certain projects? Generative AI at this point in time is a hot topic of discussion. I think most clients are building comfort around, you know, how we are going to help them prepare for the journey. In many cases, we are proactively discussing many pilots with all of them in some of our existing processes as well, right? Understanding fully well that that is how you build trust with clients, you know, that you go proactively. You sometimes cannibalize a little bit of your revenue to do it, but also go after larger, you know, spaces inside the environment. Today it's a lot more about discussion and, you know, proving the concept with them in many areas because just in. depending on the process and the sector, there is still a lot that they need to get comfortable with as clients as well, you know, when generative AI is deployed. You know, helping them drive higher productivity gains, reducing their cost, is frankly a no-brainer, and we can actually go and do that. That's what Dave was talking about when he spoke about, you know, some of the pilots, the 20 clients, the active discussions, blah, blah, all of that kind of stuff. Longer term, I think what is going to happen is these generative AI solutions are going to get integrated into the core of WNS, right? As we have any interaction with a client, it is going to be all about a GenAI driven kind of a solution, which allows us to take an end-to-end view of a process and take that out. As a result of which, you know, clients will obviously see, you know, significant change in terms of, say, efficiency, productivity or whatever. From our point of view also, because a lot of it could also be reusable, the ability for us to use it to go after larger pieces of business and at the same time dramatically over time, increase our margin impact also is high. I think this is an emerging space. It is, you know, it is today a situation where we are giving comfort to our clients, proving the concepts and then slowly making the announcements to the market also about how we will, you know, deal with some of these things. Quick follow-up, on your, acquisitions, of Vuram, Smart Cube and OptiBuy. Is there any meaningful variance, in any of those this quarter versus expectations? No, I think when you look, Vincent, kind of the business models that we had put into place and the expectations that we had for these assets, they're performing well, they're performing as expected. They're being successfully integrated into the company's operations. I would just say at this point in time, the acquisitions are doing exactly what they thought they'd do. I'll just add one point, you know, at the time we did some of those acquisitions, Generative AI was not such a hot topic, and today they are now, some of these acquisitions are at the center of a lot of the dialogue and interactions and building a lot of comfort with clients. Okay, thank you. Nice quarter, guys. Thanks. Thank you. Please stand by for the next question. The next question comes from David Koning with Baird. Your line is now open. Yeah. Hey, guys, thanks so much. I guess one observation, I mean, your sequential growth in Q1 was actually far better than normal Q1. I mean, just great momentum there, I guess, relative to even normal. Does that mean Q2 might be a little slower than normal sequential progression? You gave a little comment about, you know, some of the delayed cycles and employees were kind of flattish. It looks like you're preparing for just a little slower growth than normal after a really good quarter. Is that all a fair way to think about it? Yeah, you know, you know, at this stage, you know, as we provided the guidance based on the visibility, in what Keshav and David was talking about, some of the conservative forecasts, you know, what the clients are providing. Based on that, the quarter two, we expect to be slightly up, as compared to quarter one. Having said that, just want to remind that, you know, still does not factor the short-term revenue where we don't have visibility. It does not factor some of the forecasts where client has not committed, yet, and when exactly what we saw in quarter one. When we enter quarter one, it was a similar situation, but as volumes and the volumes keep on coming up as we were nearing each of the month, so we'll have to just wait and watch. Also, just wanted to add over there, which was factored in our guidance earlier, and then the transition of one high-tech client from an onshore to offshore. You know, that is already part of the quarter I think, Dave, to Sanjay's point, you know, when we look at the sequential numbers, we've obviously expecting, you know, a more modest growth rate as compared to what we saw sequentially from Q4 to Q1. That being said, you know, we significantly outperformed what our expectations were for Q1. I think some of this is the nature of the assets that we've acquired that have less visibility but higher growth, right? I think when you look at the numbers that we provide between that and the conservativism that we've baked in from our client forecasts, what you're gonna see is more upside to our numbers than you've historically seen, but less visibility to those numbers. Our hope certainly is that as we move throughout Q2, as Sanjay mentioned, that we'll continue to build on that number. In terms of visibility and in terms of what's baked into our guidance at this point, it does show a slowdown in the growth rate sequentially from Q4. Yeah. Yeah, that all makes sense. Just to follow up, in the new segment guidance, first of all, some cool new industry acronyms. Those are kind of interesting. I like it. Also there's a new line called, less reconciling items that used to be kind of $2 million-$3 million a quarter, kind of going back for a lot of quarters. The last few quarters, it's kind of ramped up to $7 million-$9 million of a headwind. What is that line, and why is it higher now? Yeah. If you look at what's showing up in the reconciling items, and you'll see it in both the revenue and the cost line. On the revenue line, what is in there, because if you look at kind of how the SBUs are laid out now, in addition to kind of the normal, you know, eight verticals that we would talk about. Travel, shipping and logistics, healthcare, we also have procurement that's broken out separately because it's run as a separate business. These reconciling items on the revenue line are really two things. One, it's the duplicate revenue credit that comes from procurement, and the second is the FX gain and loss line. Those, because we can't specifically allocate them to an SBU, sit as a reconciling item. On the cost side, you'll see that same procurement duplicate revenue credit show up with the cost. The second piece that shows up in the cost unallocated is unallocated facility costs, so seats that aren't being used, that have been returned back to the company by the SBUs. You're gonna see that number move around on a quarter-to-quarter basis. But overall, that hopefully should give you some color in terms of what that reconciling column is in terms of the revenue and margins. Yeah. Thanks. Gotcha. Appreciate it. Thanks. Thank you. Please stand by for the next question. The next question comes from Maggie Nolan with William Blair. Your line is open. Thank you so much, and congrats on the results. I wanted to ask you, what have past technology waves meant for your value proposition as a company? That's a great question, Maggie. I think what it has done is it has kept enhancing the impact of our domain specialism and our core differentiator that we have always spoken about to clients. Every time there was a change in technology. T he fact that, you know, clients were working with people who understood the core of their business first and then integrated, you know, these technologies to deliver a higher value proposition in terms of impact, efficiency, cost, and other things, actually has been really, you know, the core. I would say for us, it's essentially the fact that, you know, it has enhanced the our capability around domain, and the fact that people now realize how important, you know, domain is in this business, while you should expect that technology will keep changing and will only keep getting enhanced and better across time. Yeah. I, and I think from a business perspective, Maggie, we've spoken about it to most of you folks and most of our investors at this point as well. What we've seen historically is that while technology creates certain headwinds to our business, right? We used to talk about WNS having 2%-3% year-over-year headwinds built into our contracts. Technology terms like RPA, like AI, like machine learning, have accelerated that productivity that we provide to clients into the 3%-4% range. So we know that when we leverage technology, some of that benefit is gonna go back to the client. We've also seen, and Keshav spoke about it in his prepared remarks, is that what this does is it opens up new areas for us to get into, both within existing clients as well as the pressure to drive new clients to look at outsourcing. While we know that these technologies will create some additional headwinds from a productivity perspective, we also know and have seen consistently that what it does is drive increased demand, and that's why when you look at our business, despite the fact that productivity improvements have been increasing, we've been delivering progressively higher growth rates in the face of those higher headwinds. Yeah, I think I just wanna underline that last statement, Dave. You know, the fact that if you look at our results over the past few years, when technology, you know, kept getting unleashed and introduced and we kept absorbing it, our revenues actually grew from single-digit numbers to consistently double digit and, you know, increasing in terms of growth. At the same time, in spite of giving so much gains back to clients, our margins actually have significantly grown over this entire period. That is the opportunity, and the fact that 75% of this industry is still not penetrated, is, I think, the biggest opportunity coming from this new paradigm. Thank you. That's great to hear. Then for my follow-up, you mentioned travel seeing some conservatism. Can you just kind of walk us through what you think travel can do this year? Can it return kind of closer to pre-pandemic levels, or how is your outlook specifically for that vertical? Yeah. I'll... Sanjay. Oh, you wanna go ahead, Sanjay? Go ahead. You know, from a overall travel perspective, definitely, you know, at this stage, if you see the travel industry are still, like, come back at 90% of the pre-pandemic level. From a WNS perspective, you'll see that, you know, significantly we have shown that growth, which means that, you know, it's not only just about winning up the new clients, but expanding the relationship with our existing clients over there. But at the same time, you know, the corporate travel still is, you know, come back only by 60% of the pre-pandemic, that's why we believe that there's an opportunity of that volume. From WNS perspective, we still believe, 1.5% - 2%, you know, that upside potential is there as the volumes come back. That being said, the travel business, as Sanjay mentioned, is extremely healthy today. I mean, if you look at our first quarter performance, we grew 8% sequentially. We've grown 18% on a year-over-year basis. Our travel revenues now are well above where they were pre-pandemic as a company. To Sanjay's point, we still do have roughly 12 clients, and they're mostly in the international and the business travel areas for the airlines. We have about 12 clients that are still running below pre-pandemic levels, and the opportunity there is somewhere between 1%-2% of total company revenue, if and when they do get back to pre-pandemic levels. Great. Thank you. Thanks, Maggie. I show no further questions in the queue. This will conclude today's conference call. Thank you for your participation.