Prepared remarks
Good morning, and welcome to Kelly Services First Quarter Earnings Conference Call. Today's call is being recorded at the request of Kelly Services. If anyone has any objections, you may disconnect at this time. I would now like to turn the meeting over to your host, Mr. Scott Thomas, Kelly's Head of Investor Relations. Please go ahead.
Good morning, and welcome to Kelly's first quarter conference call. With me today are Kelly's Chief Executive Officer, Chris Layden; and our Chief Financial Officer, Troy Anderson. Before we begin, I'll remind you that the comments made during today's call, including the Q&A session, may include forward-looking statements about our expectations for future performance. Actual results could differ materially from those suggested by our comments. We do not assume any obligation to update the statements made on this call. Please refer to our SEC filings for a description of the risk factors that could influence the company's actual future performance. In addition, we'll discuss certain data on a reported and on an adjusted basis. Discussion of items on an adjusted basis are non-GAAP financial measures designed to give insight into certain trends in our operations. For more information regarding non-GAAP measures and other required disclosures, please refer to our earnings press release, presentation and, once filed, Form 10-Q. All of which can be accessed through our Investor Relations website at ir.kellyservices.com. With that, I'll turn the call over to Chris.
Thank you, Scott. Good morning, everyone. I'll begin with highlights from the first quarter. The macroeconomic environment remained dynamic over the first three months of 2026. Against this familiar backdrop, employers continue to take a cautious approach to hiring, contributing to a mixed labor market. That said, conditions through the quarter were stable, consistent with our expectations. This stability was reflected in our results as we executed on our strategic priorities. Total company revenue exceeded our expectations and adjusted EBITDA margin was in line with our expectations. In ETM, staffing and overall revenue trends improved sequentially from the fourth quarter, including growth in Talent Solutions across our technology-enabled and AI-powered MSP, RPO and PPO offerings. In SET, we delivered another quarter of year-over-year growth; our Telecom specialty and life sciences and engineering performance improved sequentially. In Education, we continue to experience pressure from delayed contract decisions and enrollment declines and, to a lesser extent, weather-related closings. Across all three segments, we continue to align resources with demand and maintain a disciplined approach to expense management as part of our ongoing focus on efficiency. Contributing to stabilizing trends in our results were new customer wins that were implemented and came online during the quarter. Among them is a significant MSP program with a leading global oil and gas company across its North American operations. Kelly was selected based on the differentiated value of our technology-enabled capabilities. This includes our Helix analytics platform and AI-enabled rate intelligence which provides the visibility, benchmarking and cost optimization large enterprise customers require of a contingent talent management program. With the initial implementation of this new MSP program complete, we have clear line of sight to additional expansion opportunities. This win underscores where our One Kelly go-to-market approach is capable of delivering: leveraging technology and our experience serving global customers to win in the market and grow. With momentum building across the enterprise, we remain focused on returning to organic growth and margin expansion. Paving the way towards this next horizon is our newly formed growth office. Since it was established in February, the growth office has been collaborating across the enterprise to lay the foundation for an integrated commercial operating framework. This framework will serve as the foundation of a unified One Kelly enterprise strategy that brings the full breadth of our portfolio to Kelly's current customers and prospects. Central to this effort is the migration of all commercial teams onto a new unified CRM system, a key component of our modernized tech stack. The CRM will provide enterprise-wide pipeline visibility, enable high conviction forecasting and support cross-selling across business units. We expect the migration to be complete by mid-year as part of our ongoing technology modernization initiatives. Reflecting more broadly on our technology modernization journey, we remain on track with our multi-phase approach. In the first quarter, our team was successful in ensuring a smooth transition following the cutover of our acquisitions in SET from their legacy technology stack to the modernized platform Kelly acquired through our acquisition of MRP. Armed with the key learnings we gathered from the initial cutover, we're well positioned to execute on subsequent phases and realize the benefits of deeper data and insights, AI and automation and scale and enhanced productivity. As we executed on our strategic priorities through the quarter, we continued to evolve our leadership team. In March, we welcomed Joel Leege as President of SET. Joel is a proven industry leader with broad-based sector experience, having spent nearly three decades in staffing, talent solutions and managed services across technology, engineering and life sciences. He brings extensive experience leading complex transformations and integrations, enabling exceptional service delivery for customers and driving above-market growth. This experience is uniquely suited to further enhance SET's competitive positioning and take the business to the next level. I'm pleased to have him as part of Kelly, and I look forward to Joel leading the SET business to new heights of growth and profitability. I'm also reevaluating the leadership structure within the ETM business. This business is core to our strategy. And with this in mind, I'm taking time to assess what we need longer term to ensure we deliver on our growth objectives. In the interim, I will be closely involved in the management of ETM. I have great confidence in the team who have consistently demonstrated their commitment to customer centricity, visibility and accountability. These cultural pillars remain fundamental to how we'll achieve our ambitions and win in the market, both in ETM and across the enterprise. I was pleased to have the opportunity to see the strength of our culture on full display at our recent Impact 2026 Leadership Summit in March. This immersive experience brought together 200 of our leaders for two days of dialogue and collaboration focused on transforming Kelly into a more customer-centric, visible and accountable enterprise. Impact reflects our commitment to building on the strength of Kelly's culture from the leadership level down, positioning the company to execute more consistently as we target a return to revenue growth and margin expansion in the second half of the year. In a moment, I'll share more about our pathway toward a return to growth. First, I'll turn it over to Troy to provide more details on the results in the quarter. Troy?
Thank you, Chris, and good morning, everybody. I'm pleased to report that we started the year with solid execution and results on a number of fronts. For the first quarter of 2026, revenue totaled $1 billion, which was down 10.7% overall versus Q1 of last year and was favorable to our guidance. Excluding the previously disclosed discrete impacts, driven by reduced demand from the federal government and three top ETM customers, revenue was down 3.3% on an underlying basis, which was improved 60 basis points versus last quarter. As a reminder, a brief update regarding these impacts. Federal government demand largely stabilized in Q3 of last year with a slight sequential increase this quarter mainly from the government shutdown and seasonal impacts in Q4. For the three top ETM customers, one stabilized at the current reduced demand levels beginning in Q3, one fully ran off in Q3, and the largest one remains one of our top customers and has stabilized across Q4 and Q1. At the segment level, underlying ETM declined 0.4% versus the prior year quarter, which is measurably improved versus last quarter and exceeded our expectations. Each Talent Solutions specialty grew versus the prior year quarter. In staffing, we saw a net underlying decline of just 1.2% in the quarter and year-over-year growth across February and March. Overall underlying ETM revenue has been relatively stable across the last five quarters. Education decreased 4.8% year-over-year in the quarter, reflecting the prior year delayed new contract decisions, elevated weather-related school closures, and overall reduced demand in key markets due to enrollment declines. We expect Education to deliver sequential year-over-year improvement throughout the remainder of 2026 and a return to growth in the second half of the year as a result of new business wins, successfully defending several key renewals and continued penetration of our therapy offering into new and existing clients. SET's underlying revenue declined 6% in the quarter led primarily by near-term demand pressure within the technology specialty. Consistent with ETM and Education, we are confident we will see sequential year-over-year improvement each quarter in 2026 with science, engineering and technology contributing most strongly in Q2. Reported gross profit was $196.4 million, down 17% versus the prior year quarter reflecting the lower revenue volume, along with employee-related costs and business mix changes. The gross profit rate was 18.9%, a decrease of 140 basis points compared to the prior year quarter. Approximately 50 basis points of the decline is timing related, which we expect to normalize over the course of the year. Our overall gross profit rate improved 10 basis points relative to Q4 and the year-over-year decline improved similarly. Versus Q4, both ETM and SET saw improvement in their gross profit rates and year-over-year declines, while Education saw rate pressure in light of the revenue decline, cost timing and mix. We expect to see gross profit rate improvement overall and in each business unit in Q2 and over the remainder of the year. We continue to make significant progress improving our SG&A expense profile with reported SG&A expenses of $199.3 million, a decrease of 11.7%. On an adjusted basis, SG&A expenses decreased 10.3% year-over-year, reflecting the continued momentum with our structural and volume-related cost optimization efforts. Over the last three quarters, the year-over-year decline has averaged over 10%. Additionally, core adjusted SG&A expenses, which exclude depreciation and amortization and incentives, have declined sequentially each quarter since Q1 of 2025. In the quarter, adjusted SG&A expenses decreased across all the segments as we continue to drive durable and sustainable efficiencies in our operating model, through technology enhancements and process efficiencies, including leveraging AI. We also continue seeing benefits from realignments within the ETM segment and integration of MRP and other acquisitions within SET, all of which are progressing well. For the year, we're projecting a net year-over-year decline of approximately $25 million in core SG&A expenses despite investments being made in technology, the growth office and other areas. The structural and durable changes we are making will allow us to scale more efficiently as we pivot to growth, thus supporting our expected return to margin expansion in the second half of the year and beyond. Our reported loss per share was $0.17 for the quarter. On an adjusted basis, we delivered earnings per share of $0.03 compared to $0.39 in the prior year. For our adjusted results, in connection with our various efforts, we recognized $9.2 million of charges in the quarter. Integration, technology modernization, organizational realignment and restructuring drove $5.2 million of the charges. The balance is related to costs associated with our controlling shareholder change, executive transitions and initial steps we have taken in our real estate rationalization efforts. We expect to continue incurring various charges throughout 2026 as we progress on our technology modernization journey, reduce our fixed cost structure, including real estate costs, and expand upon our various optimization efforts. Adjusted EBITDA was $15.8 million, with an adjusted EBITDA margin of 1.5%, which was down 150 basis points versus the prior year quarter and in line with our expectations. The year-over-year decline improved 20 basis points relative to Q4. The revenue and gross profit declines drove the decrease versus the prior year with the significant SG&A reductions partially offsetting. At a segment level, similar to the gross profit rate, both ETM and SET improved their margins and year-over-year performance versus Q4, while Education saw pressure in light of the revenue and gross profit declines. We expect each business unit to show sequential improvement in their adjusted SG&A margins in Q2 and on a year-over-year basis as we progress through the year. Moving to the balance sheet and cash flow. We utilized $25.4 million of cash from operations this quarter due to the timing of working capital requirements. Total available liquidity as of the end of the quarter was $252 million, comprising $26 million in cash and $226 million available on our credit facilities, providing us with ample capital allocation flexibility. Total borrowings of $130.5 million increased versus the prior year-end, reflecting the working capital needs during the quarter. Our debt-to-EBITDA leverage remained near 1 at the end of the fiscal quarter. During Q1, we maintained our quarterly dividend of $0.075 per share. We remain confident in Kelly's strategy and cash flow generation capabilities and are committed to opportunistically deploying capital in pursuit of attractive returns for shareholders. As we turn to the outlook for the remainder of 2026, our expectations are unchanged relative to the initial view we established in February. Our expectations assume no material change in the macroeconomic or industry dynamics in the coming quarters. For Q2, we expect to show year-over-year improvement relative to Q1 with an overall revenue decline of 7% to 9%, which includes at least 100 basis points of improvement in the underlying decline. For adjusted EBITDA margin, we expect at least 2.5% representing at least 100 basis points improvement relative to Q1 and a significant reduction in the year-over-year decline relative to the past two quarters. As we progress through the balance of the year, assuming no new material impacts, we expect to see relative improvement in our year-over-year performance each successive quarter for both revenue and adjusted EBITDA margin. That should translate to modest revenue growth in the second half of the year and a roughly mid-single-digit decline on a full year basis. For adjusted EBITDA margin, we expect to see measurable year-over-year margin expansion in the second half of the year and a modest increase on a full year basis. We are excited about the momentum we are building and the opportunities that lie ahead in 2026. I'm grateful to all the Kelly team members for their unwavering commitment and resilience as we position the company for growth and enhance profitability over the long-term. I'll now turn the call back to Chris for his closing remarks.
Thank you, Troy. As we look ahead, we remain firmly committed to executing on the priorities we outlined in February. Rooted in the strategic pillars I shared shortly after joining Kelly, these priorities will continue to guide our actions and progress on the pathway toward an inflection point in our results. Growth remains our top priority. The growth office is taking shape and beginning to enhance how we go to market as One Kelly enterprise. With the leadership transition in SET complete and organic growth drivers gaining traction in each of our businesses, we have a clear path to improve top line performance as we move through the year. The strength of our pipeline and the steady stream of new wins coming online reinforce our confidence that our go-to-market approach is working and that our ability to convert opportunities is accelerating. On efficiency, we'll continue to align resources with demand while reengineering our cost base to drive structural efficiencies and enhance profitability. Our technology modernization initiative remains on track and our enterprise AI strategy continues to unlock productivity across the business. In our culture, the energy and alignment our team demonstrated at our recent Impact Leadership Summit reinforce what I've known since I joined Kelly. Our people are deeply committed to the success of our company, our clients and the talent we place. We'll continue to build on the momentum with an emphasis on customer centricity, visibility and accountability across everything that we do. We remain on track to deliver our commitments and achieve revenue growth and margin expansion in the second half of the year. There's much work ahead, but I'm confident in our plan, our team and our ability to execute. We look forward to capitalizing on the positive momentum we're building together and unlocking Kelly's full potential for the benefit of all of our stakeholders. Operator, you can now open the call to questions.
Questions and answers
Our first question is going to come from the line of Marc Riddick with Sidoti.
So I wanted to start with some of the cost improvements that you've been working on? And maybe you could talk a little bit about the — I believe it was $25 million in core SG&A reduction expected. Maybe you could sort of touch a little bit about some of those efforts and maybe the timing that we might expect there?
Yes. Thanks, Marc. Look, I'm really pleased with the progress that you're seeing as we really look at driving expense reductions across the enterprise. This is one of the priorities that I outlined right as I joined Kelly: our focus on reengineering our cost base, matching resources with demand. And you're seeing us come through and really delivering on that commitment in the first quarter through that disciplined execution. We saw that in the 1.5% adjusted EBITDA margin as well, which was in line with our expectations. It improved 20 basis points year-over-year in comparison to our Q4 trajectory. And as you've heard us talk about and Troy reemphasize, we're going to continue to see that sequential incremental improvement on the EBITDA margin side as we go throughout the rest of the year. Maybe ask Troy, if you want to comment any further on the specific $25 million impact for the rest of the year.
Yes, sure. Thanks for the question, Marc. We began taking actions, as Chris noted, throughout last year and really accelerated in the latter part of the year in response to some of the elevated revenue pressure but also just with the integration efforts that came with the acquisitions and the cutover to the new technology platform, which consolidated the acquisitions in December. So it's really the manifestation of some of the realignments that we did last year and then the integration efforts as we progress into this year. We're continuing to look at both durable structural changes as well as volume-related changes so that as we pivot to growth, we can scale much more efficiently and really drive that EBITDA margin expansion.
Great. And then actually, I guess, maybe picking up on that part of the commentary there. Can you talk a little bit about the timing and milestones that you're looking for, for the remainder of the year on the technology activity as well as, I guess, maybe timing of ERP that we might see going forward?
Yes. We have another phase expected in the beginning of the fourth quarter of this year, where we'll migrate the platform now to a broader enterprise platform. Right now, we have the acquisitions, MRP and the prior SET acquisitions all consolidated on the platform, but that was designed for those smaller entities. We've made some foundational changes in the platform that we'll migrate all of those onto — call it the enterprise platform. We're migrating our enterprise human capital management so all of our FTEs will now be on the platform and we have some other smaller changes, migrating some customers on a prototype sample basis to go through some of the Kelly platform migrations. We're also going to continue working on some of our solutions billing capabilities, which are more complex, non-staffing related capabilities, and then work to bring the majority of the SET business onto the platform early in 2027.
And Marc, just one thing to add on our CRM. The most important near-term milestone in the second quarter, which is on track, is the deployment of our HubSpot CRM. It's the consolidation of our CRMs across the business units. We're going to migrate all of our commercial sellers onto the CRM by mid-year. And now having the growth office and Pat's leadership to be able to drive that, it gives us the enterprise-wide pipeline visibility and allows us to pursue the go-to-market and growth objectives we've been outlining since we started.
That's very helpful. And then last one for me, just maybe touch a little bit on the demand drivers that you're seeing from customers, particularly the technology demands. Maybe you could talk a little bit about sort of how that paced through the quarter and maybe just what you're seeing overall as far as whether the data center impacts, AI impacts, things like that, what you're seeing now versus maybe the beginning of the year and sort of how that's been progressing?
Yes, sure. First, some of the near-term pressures you're seeing reflect some difficulty in our year-over-year comps particularly within SET, as we look at 2025, which is why, as we've talked about across the business, we continue to make sure we've got resources aligned with demand and now under Joel's leadership, we'll be very focused on getting back to market growth. That being said, we're actually seeing some encouraging signals, including a net positive consultant count improvement in March. As we exited the quarter, we also are seeing that April is tracking quite similarly. So some positive momentum there. We also saw some sequential improvement in some of the businesses that we mentioned in our prepared remarks. We're really pleased with the progress we're making in the telecom space. That is being driven by outsized demand in the data center space where we have differentiated capability, and we are going to continue to see that demand play out in the market where we have customers across the supply chain who need total talent management solutions and the technical solutions to support the investment that's happening in the United States and around the world.
Marc, I'll just add, across the business we saw improvement as we progressed through the quarter. In Education, we had some weather-related impact that was largely concentrated in January; that was maybe half the decline in the quarter specific to that. And in ETM, I commented in the prepared remarks about pivoting to growth in the underlying staffing business as we exited the quarter. So we feel good about the trends heading into Q2, which is reflected in the expectation where we'll see our call for down 7% to 9% overall and at least 100 basis points improvement in the underlying decline.
Operator instructions. Our next question will come from the line of Kartik Mehta with Northcoast Research.
Maybe taking a bigger picture look at Kelly today versus prior downturns. Can you just discuss maybe how you think structurally, the company is different today than it was before? Maybe in terms of customer mix, customer relationships? And obviously, in terms of how the company has changed in terms of business mix as you've gone more into SET and higher-margin businesses?
Sure, Kartik. As I step back and think about what differentiates Kelly in the market and how that's evolved, all of the steps we took over the last few years to get scale and capability in higher specialized areas were the right steps to take. We have the scale and the breadth of capability to compete now in all of the end segments that we're in — we didn't have that a few years ago in areas like technology. We also have a much more robust RPO offering through the acquisition of Sevenstep. And we have a leading total talent management solution with the combination of the strength of our MSP offering and RPO offering together. As I think about what needs to differentiate Kelly going forward, it has to be our focus on our customer and making sure that we're bringing all of that capability to our customer. We're doing that in large part through better execution and the operating framework we outlined: focusing not only on our go-to-market, but also the way that we show up more holistically as an enterprise, One Kelly, to all of our customers. The establishment in the first quarter of the growth office was the next step in that journey. Driving the operating framework within account management, how we sell and how we deliver across large customers is really important. That focus is going to continue to be what will differentiate Kelly for many years to come, and we're already seeing the roots of that with some large customer wins.
Maybe Troy, just on that point, you've done a good job of taking cost out. The company seems more efficient. And I'm wondering how you think about the incremental earnings power when we get back to kind of—to growth in this industry?
It's a good question. That cost reduction I noted was net even of some investments that we're making in the growth office and other areas. So you'll see some of those cost declines moderate as we go through the year and pivot to growth, but we'll be able to scale more efficiently. We're expecting to achieve our expectations for the year. Margins would be back above 3% in the back half of the year, which is where we were in the last half of 2024 and the first half of 2025. And then, as we continue to grow more, we would expect to expand further from there in a very efficient and effective way.
Our next question comes from the line of Kevin Steinke with Barrington Research Associates.
Great. I wanted to just follow up on the discussion about the core SG&A expenses to make sure I'm understanding correctly. I guess with core SG&A, I believe you're equating that with adjusted SG&A. If it's down $25 million year-over-year in 2026, if I'm doing my math correctly, it appears that the adjusted SG&A expense on a quarterly basis will kind of flatten out for the rest of the year at about that $192 million level that you saw in the first quarter. Is that — am I thinking about that correctly?
Yes. So that's right — that's total, yes. So $192 million would roughly flatten out. The reason why I focused on this core measure, which is not something we've talked about previously, was we had a lot of movement with incentives last year with the challenging environment we were operating in. There was a reduction to performance incentives throughout the year. This year we're expecting to perform measurably better and we would expect to return to some of those incentives. So if you strip that out and focus on the underlying wages, facilities and other more stable items — and the durable structural reductions we're targeting — that should flatten out as we progress through the year and we get the year-over-year benefit of the actions taken both last year and this year. And again, that's net of investments that we'll be making as we pivot to growth.
Okay. How material is the change in incentive comp that you're expecting in 2026 versus 2025?
It's probably a $20 million to $25 million swing in total SG&A between the years, something in that ballpark. It will be subject to ultimate performance. Each business unit has different incentives tied to their specific performance, so you can get some variability based on how individual business units perform.
Right. Okay. That makes sense. Yes. So just following up on that, then I think you commented that you expect gross margin improvement throughout the year. What would be driving that? And it sounds like a lot of the adjusted EBITDA margin improvement that you're expecting would hinge on the improved gross margins. Is that correct?
Yes, that's generally correct. As we pivot to growth, we'll get some lift on a relatively flattish expense base on a run-rate basis and then with the gross margin improvement. There's a little bit of timing — I commented on that — just how some of the expenses played out this year versus last year, particularly employee-related expenses which we saw some pressure on exiting last year. We were up 10 basis points quarter-over-quarter on gross margin despite some of that timing pressure. As we benefit from mix, as we grow and pivot to growth in some higher-margin areas, that will benefit us in the back half of the year. We are also seeing a little bit of movement on perm fees — it's still a small portion of revenue but we did see a little bit of benefit from that, particularly in SET in the first quarter. That helps gross margins and ultimately EBITDA as well.
Okay. That's helpful. Just a couple more. You called out lower student enrollment in the Education segment. How meaningful is that or how broad based is that as you look across various school district clients?
We remain confident in the Education business. It has significant differentiation; we're number one in the market. We continue to see historic fill rates across the U.S. where we're serving 9,000 schools. Some of the factors that came together are temporary in nature. We saw weather-related closures and some budget constraints stemming from enrollment declines. Where that had the biggest impact for us was in Florida, where we serve some of the largest school districts in the United States. That concentration was a one-time hit and that demand has now stabilized. We're focused on the 70% of the market that is still not benefiting from an outsourced K-12 substitute management relationship with Kelly. We are selling around the country and feel very good about some of the large renewals that have been opened this year. We'll continue to sell more districts around the United States and continue to focus on bringing in more therapy services across that K-12 footprint, not only in Florida but around the United States. So we feel really good about the opportunity in Education and where that business is going to be as we go through the rest of the year.
Okay. That's helpful commentary. And just lastly, I want to ask about the organic growth drivers. You mentioned organic growth drivers gaining traction. If you could provide a little more color on that? And related to that, you mentioned the strength of the pipeline. Can you maybe talk about how broad-based that strength is across your various businesses?
So first, the growth office has been moving quickly. It's a foundational quarter for us as we begin to put in this integrated commercial operating framework. There is work underway aligning incentives for commercial teams, account management, and putting more rigor around pipeline management and account planning. We'll move all of our commercial teams to the new CRM platform, which will give us the visibility needed to drive the business forward and ensure resources are in the right places to close deals and deliver excellent service. The strength in the pipeline continues. We see a lot of demand for customers looking for total talent management solutions; the robustness of our MSP pipeline is very strong right now. You saw that in the big oil and gas win we had in the quarter. That was not price-based — it was a differentiation around our tech stack, our reach and the differentiation of our core offering. We continue to see more large global customers coming to Kelly for those total talent management solutions. Our telecom and engineering pipelines continue to be very strong in SET. We have an opportunity to continue to drive more pipeline in our technology business. In K-12 staffing, our pipeline continues to be very strong for net new school districts, and we've seen a nice jump in the number of therapy opportunities tied to some of our larger school districts. At a high level, that's how I'd characterize the momentum we're seeing, and Pat in the growth office will continue to drive this through the remainder of the year.
Our next question is going to come from the line of Joe Gomes with NOBLE Capital.
This is George, I'm filling in for Joe Gomes this morning. First question: What have the Hunt companies brought to the table so far?
As you would have seen in our filing and with our upcoming annual meeting, the Board has nominated 11 individuals for election, and three new members will be joining. I'm really excited about the extensive experience the Board brings to help with strategic execution and long-term value creation. Our new Board members bring experience that will help with our strategic execution and long-term value creation, and I'm personally excited to work with the new Board. The Hunts have expressed their support of our management team and the strategic direction we've outlined. There's been no change to our business strategy, our client relationships, or our operational approach — we're all focused on driving shareholder value, and we're excited to bring in this new slate of directors.
All right. Great. And the early days of your new Chief Growth Officer, Pat McCall, how have they been?
They've been really good. We've been setting foundation for the commercial operating framework. There's a lot of opportunity for Kelly to show up as one global enterprise to our large customers. We're putting in stronger account planning, more rigorous pipeline management and other foundational elements that will contribute to growth. We're excited about what this will mean for our future.
Thank you. I'm showing no further questions. I would like to hand the conference back over to Chris Layden for closing remarks.
Great. Thank you all. We'll see you next quarter.
This concludes today's teleconference. Thank you for participating, and you may now disconnect. Everyone, have a great day.