Julie Sweet, CEO of Accenture: IT growth will outweigh macroeconomic shocks

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Jose F. Kovar

‘We believe the current macro makes it even clearer to customers that they need to change more, not less. And that two of the five key forces of change we have identified for the next decade: the need for a total business reinvention, enabled by technology, data and AI, and the ability to access, create and unlock the potential of talent , are critical to success in the medium and long term”, says the general director of Accenture, Julie Sweet.

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IT spending growth will continue to outpace any economic slowdown in 2023, helping solution providers like Accenture move forward.

That’s the word of Julie Sweet, CEO of Accenture, who on Friday told financial analysts at his company’s fiscal 2023 first quarter financial analysts call that requirements for growth, cost optimization and customer resiliency bode very positively for the New York-based company. York.

Over the past quarter, economic estimates for 2023 have continued to fall according to various reports, Sweet said during his prepared remarks. At the same time, the latest industry estimates for technology spending for 2023 continue to show robust 5 percent growth, she said.

[Related: Here Are Accenture’s 23 Acquisitions In 2022]

“So what does the current market mean for our customers?” she said. “We think the current macro makes it even clearer to customers that they need to change more, not less. And that two of the five key forces of change that we have identified for the next decade, the need for a total business reinvention, enabled by technology, data and artificial intelligence and the ability to access, create and unlock the potential of talent , are essential to succeed in the short, medium and long term”.

Accenture expects this to continue across all industries and markets with two common themes, Sweet said.

“First, all the strategies continue to point to technology, particularly cloud, data, artificial intelligence and security,” he said. “And second, companies remain focused on executing a compressed transformation to achieve lower costs, stronger growth, more agility, and greater resilience faster.”

Accenture’s strategy positions the company for continued industry leadership because of its unique strengths that clients need to navigate today and succeed tomorrow, Sweet said.

“We are able to do this because of our deep strategy and consulting experience across industries, which allows us to be a trusted adviser through different economic cycles because we bring the expertise along with the real-life practical experience they need. … And our global footprint allows us to act at scale and with speed,” he said.

For the quarter, Accenture delivered bookings of $16.2 billion, with 24 clients with new quarterly bookings of more than $100 million, Sweet said.

“[This demonstrates] our clients’ ongoing commitment to transformation and our ability to understand and anticipate our clients’ needs, whether for growth, cost optimization or resiliency, and our ability to deliver compressed transformations. … We estimate that we are going to more than double the market while offering 20 basis point margin expansion,” he said.

For the quarter, Accenture invested $686 million in acquisitions, said KC McClure, the company’s chief financial officer.

For its first fiscal quarter of 2023, which ended Nov. 30, Accenture reported US dollar-based revenue of $15.75 billion, up 5 percent from the $14.97 billion the company reported for its first quarter. fiscal quarter of 2022.

Total revenue topped analysts’ expectations by $160 million, according to Seeking Alpha.

This included consulting revenue of $8.44 billion, up 1 percent from last year, and managed services revenue of $7.3 billion, up 11 percent.

Revenue in North America was reported at $7.62 billion, up 10 percent; European revenue reached 5,070 million dollars, 0.5 percent less; and growth market revenue was $3.05 billion, up 3 percent.

Accenture also broke down revenue by industry group, with product revenue of $4.67 billion, up 4%; public and health service revenue of $3.00 billion, up 10 percent; communications, media and technology revenue of $2.98 billion, up 3 percent; financial services revenue of $2.96 billion, up 2 percent; and resource revenue of $2.14 billion, up 10 percent.

On a GAAP basis, Accenture reported net income for the quarter of $2.0 billion, or $3.08 per share, up from $1.92 billion a year ago, or $2.73 per share. That beat analysts’ expectations by 18 cents a share, according to Seeking Alpha.

Looking ahead, Accenture expects fiscal 2023 second quarter revenue of $15.2 billion to $15.75 billion, which would be an increase of 6% to 10% when measured in local currency.

For the full fiscal year 2023, Accenture expects total revenue growth of 8 to 11 percent in local currency, with earnings per share in the range of $11.20 to $11.52, or a year-over-year increase of 5 to 8 percent. hundred.

Despite the growth in its financials, investors on Friday cut Accenture’s share prices by 16.6 percent to $264.48 a share by the end of the trading day, with prices essentially flat in after-hours trading. market.


    More information about Joseph F. Kovar

Jose F. Kovar

Joseph F. Kovar is a Senior Editor and Channel Reporter for Storage and Non-Tech for CRN. It keeps readers up to date on the latest topics related to areas such as data lifecycle, business continuity and disaster recovery, and data centers, along with related software and services, while also highlights some of the key trends affecting the overall IT channel. He can be reached at jkovar@thechannelcompany.com.


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