Lionbridge's CEO Discusses Q4 2013 Results - Earnings Call Transcript

Lionbridge Technologies Inc. (NASDAQ:LIOX)

Q4 2013 Results Earnings Call

February 4, 2014 9:00 AM ET


Sara Buda - Vice President, Investor Relations

Rory Cowan - Chairman and CEO

Don Muir - Chief Financial Officer


George Sutton - Craig Hallum

Ben Rose - Battleroad Research

Vincent Colicchio - Noble Financial

Kevin Liu - B. Riley & Co.


Welcome and thank you all for standing by. I’d like to remind the participants that their lines have been placed on a listen-only mode until today’s question-and-answer session. (Operator Instructions)

Today’s conference call is being recorded. If anyone has objections, you please disconnect at this time. And I will be turning the call over now to your speaker for today, Sara Buda. You may begin.

Sara Buda

Terrific. Thank you. Welcome everybody to the Lionbridge Investor Call to discuss Financial Results for the Fourth Quarter and Fiscal Year 2013. During this call, we may make certain statements that may be considered forward-looking statements under federal securities laws and which involve risks and uncertainties.

Our actual future results may differ significantly from the matters discussed in any forward-looking statements. We have disclosed in greater detail in our Form 10-K filed March 15, 2013 and in subsequent filings.

And now I will turn the call over to Lionbridge Chairman and CEO, Rory Cowan.

Rory Cowan

Great. Welcome, everybody, and thanks Sara. Thanks for joining us. Today, of course, we will review our strong year end and our fiscal 2013 results and also discuss our outlook for our continued growth in 2014. But let’s start with Q4.

If you don’t have the release in front of you and Don will provide details on the numbers, but so rather than walk through every line item, I will just talk about a couple of highlights or milestones for the quarter.

First, revenue growth, of course, in Q4, as you can see, we delivered 12% year-on-year revenue growth. This follows Q3 where we delivered about 11% year-on-year growth. And so clearly, we had a very strong second half as we had anticipated.

And I am particularly delighted that we enjoyed the revenue growth across pretty much all areas of our business. We grew large existing accounts by introducing new offerings and bringing new level of innovation. We strengthened our new business pipeline both in terms of number of wins and the size and scope of these programs and also we expanded our new offerings across vertical. So pretty much anything to everything seem to break our way for us to Q4 revenue, mix, taxes and just everything went the right way.

The second positive milestone for the quarter is gross margin. In Q4, we delivered another strong quarter of about 33% gross margin. And really this demonstrates is when we have strong revenue particularly in our GLC, our language business, a margin growth follows because this has a very different dynamic than most services businesses that you are familiar with.

So third, we doubled GAAP net income year-on-year to about $6 million or $0.10 a share and non-GAAP earnings were about $11 million or $0.18 a share.

Finally, in cash flow, we drove about $11.4 million of positive cash flow from operations making in a very solid finish to the year.

So as I said within all factors, revenue growth, gross margins, earnings and cash flow, Q4 was another very strong quarter. I think we’re proving the model, solid topline growth, year-on-year margin improvement and ongoing cost management are all these drive strong converge of incremental revenue, earnings growth.

So Don will talk about the details of Q4, but let me really talk about our achievements for the entire year of ’13, really what we are seeing for ’14 as it’s a pretty exciting stuff.

In ’13, we delivered 7% topline growth or about $32 million year-on-year after a challenging start to the year. Our half two performance was driven by successes in three main areas.

First, solid sales execution across many of our top accounts, especially Microsoft, as well as Rolls-Royce and Samsung, in each case, we’ve introduced new offerings and new process innovations to these clients and increased our share of wallet, with the recent organizational leadership investments we plan to replicate this growth across other large accounts in ’14.

The second success in last year was our vertical market expansion. We saw notable increases across end markets in 2013 and this included market such as luxury retail where we won a new business with NET-A-PORTER and [Baroque] by selling our global digital marketing services to these new buyers. We also grew our automotive vertical by expanding our relationship with Ford and Volvo, and securing new business with them as well.

And in our life sciences practice, we scaled the company like Pfizer and landed new business such as British Medical Journal. We also launched our Business Process Crowdsourcing practice or BPC in 2013, which has already landed some initial programs with market leaders in another end market we want to develop in ’14 and ’15 which is information services or the financial services businesses.

So our growth strategy seems to be working. We are applying our scalable cloud technologies and our scalable crowd workforce to scalable end markets. This has been our strategy for the past 18 to 24 months and our momentum in ’13 proves that this strategy will continue to drive sustainable, profitable annual growth.

And let’s talk about our goals for ’14 and really it’s pretty much more of the same which is just sort of capabilities expansion, new buyers, new markets and new web aggregation capabilities.

So let’s talk about these three things. First, crowd-enabled services with language at our core, our strategy of applying our global delivery skill for the need of the marketing buyer is really working.

The client results were impressive as you have seen in Q4. When we talk about increasing the quality and relevancy of clients marketing campaign, it isn’t just delivering the right message to each geography, it’s about creating and delivering the right message to each geography. It’s about creating and delivering the right message to each user, to the right user, any time, any geography, any medium, any platform and any device.

For our clients, this means faster time to revenue, higher conversions and lower total attracted cost. For Lionbridge, it means strong new business momentum, recurring less lumpy revenue streams and higher margins. We successfully executed our plan to penetrate the digital marketing market. And in 2014, we’ll extend this success by investing in sales, technology and operational processes to build on the success and establish Lionbridge as the leader in global digital marketing services

The other application of our crowd model is in the information services space. Here we’re weaving together our crowd-enabled services and our task automation platform to meet the data validation needs of large enterprises, what we call business process crowdsourcing.

The momentum for this offering continues to build and we ended the year with several multimillion dollar programs that we expect to scale in ‘14. We expect this to be another growth driver for us in ‘14 as we ramp initial projects into multi-year programs.

These new offerings are scaling on plan. There is lot of learning what we have to go through, lot of learning for our customers as well but we have great partners in this endeavor. And both marketing and crowd offerings are true examples of our ability to our scalable crowd workforce to scalable end markets. That’s the first theme.

Second theme is really new business even within our traditional translation segment. A few weeks ago we announced about $35 million of new business wins or about $11 million to $13 million of annual recurring revenue once fully ramped. This includes a $50 million win at Renault for we’re now the translation partner for all after sales support across 33 languages.

This is about an $8 million five-year program with Bosch and a multi-million dollar expansion with existing client that has consolidated their translation with strategy with Lionbridge. These wins are noteworthy for a number of reasons. First, the rate and pace of wins in the last half of 2013 far surpassed what we traditionally see at year end.

Second, the deal sizes are larger with long returns. This really is becoming a scalable outsourcing, traditional outsourcing market. And third and most importantly, it reflects a need for global scale power based language technology. Over the years, we built the industry’s most robust, broad based workflow in translation automation platform. This platform provides a compelling alternative behind the firewall client server technology that’s really quite common in our industry with most of our competitors. And these new wins illustrate the power of the superior technology and the caliber of our global delivery themes.

So the third theme for 2014 is really new demand models within large enterprises. So Renault and Bosch wins are great examples of centralized large scale opportunities where our enterprise sales force really shines. We provide technology-enabled solutions, configured for the specific needs of a large global enterprise and those brands with their recurring specialty needs.

At the same time, we’re also deploying new online sales model, captured a decentralized spend with new buyers with -- with the new buyers with departmental needs within the enterprise. And this could be an email campaign and eLearning video or a CEO campaign.

To address this opportunity, we introduced Lionbridge on-demand during Q3. It’s an online model, first to market, sale and deliver, productized offerings around certain content types. With on-demand, client can choose a solution, up above their content and complete their multilingual projects rapidly all along line at a simple click. No sales person, no procurement processes, no time constraints.

At the end of 2013, we began to see a growing number of programs flow through on-demand. We expect this to ramp further in 2014 and to provide additional revenue streams for all of our OpEx. Throughout the year, we’ll be configuring all of our offerings for an on-demand sort of drag and drop our model.

This would be everything from GMO, to video, to traditional translation. So we’re on path really for many millions, less than six months after launch. So we’re very, very excited about this offering and complements our existing enterprise sales force. In addition, we’re finding that many of our enterprise customers really want to procure this capability so they can capture all of the leakage over this spend. It really doesn’t go through a centralized shared service.

So in sum, 2013 was a good year, letting us up for a strong 2014. The strategy seems to be working. First, we’re committed -- recommitted to the crowd early almost five years ago. As a result, we have a fully scalable technology platform as a proven alternative to subscale inside their firewall technologies.

Second, we committed to the crowd early and we’re now applying that model to enterprise applications that need an on-demand professional global workforce. Third, we are augmenting our episodic technology product business by focusing on new opportunities from hopping buyers, within existing customers, to new markets like luxury retail, automotive and financial services. The scalable cloud technologies, scalable cloud workforce apply to scalable end markets. So this will serve as our growth for 2014 and beyond.

So now, I will turn it over to Don for the numbers.

Don Muir

Thanks, Rory and hello everyone. Today, I will walk you through a review of our very strong fourth quarter and full year 2013 results, and I will provide an outlook to Q1 and 2014. Let me start with Q4.

Q4 revenue was $127.5 million for the quarter. This is a year-on-year increase of about $13.6 million or 12% from last year. The year-on-year growth was broad based across both our GLC language segment and our GDT testing segment. Fourth quarter gross margin was about 33%, marking strong year-on-year growth across all segments as well.

GAAP earnings roughly doubled year-over-year to $6.5 million, or $0.10 per share for the quarter. Non-GAAP earnings were $10.9 million or $0.18 per share for the quarter, up $0.08 from last year's fourth quarter.

Fourth quarter cash flow from operations is approximately $11 million for the quarter and we ended with $39 million in cash. So in all key financial metrics, revenue, margins, earnings and cash flow, Q4 was another strong quarter and was a very strong finish to the year.

Now, I will discuss the details of our full year results. For 2013, we generated revenue of $489 million. This is an increase of 7% year-on-year. We achieved a number of customer successes in 2013. We saw strong year-on-year revenue growth from out top clients, particularly Microsoft as well as Rolls-Royce. And as we said, one of our initiatives in 2014 is to grow our share of wallet in some of our other top accounts as well.

So our top 10 accounts will continue to be a focus area for us as we continue to see growth opportunities. At the same time, we had several impressive wins at year-end. So, I think our growth in 2014 will be well balanced between new and existing clients, particularly as we ramp some of the new programs throughout the year.

From a segment standpoint, most of our growth in 2013 came from our GDT testing business, which was primarily attributed to our ability to scale a large testing program, which utilized the global infrastructure of our language business. Our GLC language business was relatively flat in total for the year, up 2%. But it was really a tale of two halves.

GLC had a challenging start to 2013, with some episodic revenues as several product translation clients pulled back early in the year. This was fall based, strong rebound in the second half of 2013, with second half revenue growth of 9% year-on-year.

Looking ahead to 2014, we expect that solid half to revenue momentum in GLC to continue. So, our growth from a segment standpoint in 2014 will be canted to GLC and should be a solid mix of new and existing business.

This brings me to gross margins. For the year, total company gross margins were 31.6% for 2013, showing an almost 40 basis point improvement from last year despite a challenging first quarter.

Margins in our GLC language business were 32.8% for the year. Margins in our GDT testing business were 31.2%, and margins in interpretations were 17%. SG&A increased about $6 million year-on-year, particularly in the second half as we invested in some new business programs towards year end.

Moving down to P&L for 2013, other expense was less than $900,000 for the full year and was actually about $100,000 favorable in Q4. As many of you know, the other expense line is primarily driven by the currency impact of quarterly balance sheet account reevaluations. So we continue to manage our FX exposures quite well.

For the full year, we recorded tax provision of $1.6 million. This compared to last year when we had a tax benefit of $2.9 million. Going forward, we currently expect our quarterly tax provision expense to be about $750,000 in Q1. And then settle in somewhere in the mid-20s as a percentage of pre-tax earnings for the remainder of the year.

We drove record GAAP net income in 2013 of $12 million or $0.19 per share, and that includes full year restructuring charges of about $5 million. For 2013, we expect restructuring expenses of about $2 million to $4 million for the full year and maybe a bit more if we see an opportunity.

Non-GAAP adjusted net income for the year was over $27 million, or $0.44 per share. To remind you, our non-GAAP net income excludes stock comp, amortization of acquisition related intangibles, restructuring and other charges. So we had strong execution all round with solid revenue growth, margin expansion and earnings growth as we exited 2013.

Moving to the balance sheet, we ended the year with about $39 million in cash, even after funding our acquisitions, investing in the business and funding about $5.2 million in share repurchases as we generated $29 million in cash flow from operations in 2013, one of our strongest years ever.

Our year-end bank debt was $27 million, yielding a year-end net cash position of $12 million. Regarding our uses of cash going forward, I would expect a solid balance of funding strategic investments, pursuing M&A opportunities to complement our organic sales growth and funding share repurchases.

Cash flow is strong and as you remember, we renewed our bank loan in 2013, with $100 million of borrowing potential and favorable terms. So we have strong cash generation capability and considerable balance sheet flexibility. DSOs of 50 days, a slight decrease from last year, and very impressive for a company that collects receivables in over 26 countries.

So, in summary, we delivered strong financial performance in 2013, as revenue grew 7% year-on-year with particular strength in the second half across all segments, we have a growing base of new business, we delivered strong margin growth, with an impressive improvement in the second half.

We generated strong earnings and cash flows. In 2014 we'll build on this strong revenue and profit momentum, while managing varying product cycles of some of our translation claims.

For Q1, we expect revenue in the range of $120 million to $123 million, as many of you know, Q1 tends to be a most challenging quarter of the year from the both the revenue and margin standpoint, and while we were delighted with our strong finish to 2013, it is likely that some potential Q1 revenue from a few large clients got pulled into Q4. So this topline range for Q1 seems appropriate and we expect our seasonally strong Q2 ramp will continue this year.

For the full year 2014, we are reiterating our expectation for topline growth of 5% to 10%. We had a very strong finish to 2013 and 2014 looks to be strong as well, with a positive balance of revenue growth from both new and existing clients.

We also expect gross margins to improve upwards of 50 basis points for the full year 2013, gross margin of 31.6% as new programs ramp throughout the year. As revenue volume grow and margin expansion, should lead to solid profit growth in 2014.

Now, Rory, back to you.

Rory Cowan

Great. Thanks, Don. I think you got a sense of our enthusiasm for '14 and we are investing in a variety of customer acquisition models, drive revenue growth across a variety of end-markets and buyers. We're delivering meaningful operating leverage as our top line growth and our 2014 new business momentum is building.

So, with that, we'll turn it over to questions.

Question-and-Answer Session


Thank you. (Operator Instructions) Our first question comes from George Sutton. Your line is open.

George Sutton - Craig Hallum

Thank you. Great third quarter in a row, guys. So those of us who've been around for a while have gotten used to consumer tech product cycles, kind of driving this business, so one good quarter, one bad quarter, et cetera. That seems to have changed and I just wanted to make sure, I understood, how much of your business do you deem being driven by those consumer tech customers and specifically some of those product cycle, the cyclicality of those product cycles?

Rory Cowan

Hi, George. Thank you. First, you're right, I mean, traditionally, we've sold to the product buyers, the VPs of Engineering, VPs of R&D, or their globalization product departments. Those tend to have product cycles and traditionally, we've had the seasonality as you know, it's been really Qs, two and three have been strongest, Qs four and one have generally been a little bit of the softest, that's sort of how it's gone.

This year and I think as we've brought in some new end-markets which I think is really a part of the theme here, as we're actively focusing on marketing activities and other demand within the enterprises, is just less product driven.

Now, we still have a good -- is it 40% of the business, is it 30%, is it 45%, you tell me, I'll having categorized what the product is, what medical devices and website upgrades and things, so there's still a good chunk of the business is episodic as what we call it.

I think that we're seeing that we still have the seasonality we've talked about, but I think it's been less -- it's less pronounced than it has been in the past as we make progress toward diversifying our revenue streams.

George Sutton - Craig Hallum

You mentioned specifically the rate and the pace of wins and I wrote this in capital letters, so I think you expressed it significantly as far surpassed historical levels? Can you just give us a better sense of what exactly you were seeing in Q4 that was so different in -- was that driven by industry changes, internal things you've done, distribution changes, just curious if you could help us there?

Rory Cowan

I think it's a couple of issues. First, I think that the industry, it's just a little tutorial here, as you know this industry had traditionally been a fragmented industry with two or three big player’s worldwide and large in-house operations, on lots of fragmented players country by country.

As the world has gone increasingly digital and as releases are now simultaneous, customers have found that they not only need our scale, but they can get great cost advantages by centralizing their spend.

So I think a fair amount of our wins, of the growth that we're seeing, it's just through vendor consolidation, I think that's the first change. But isn't project-by-project, its multi-year contracts, with one or two major suppliers, I think that's the first thing that we've seen.

Second thing that we've seen, is as we move into new marketing-oriented buyers, once you move traditional platform you can now manage the world from one location while having each country manage local marketing campaigns. So companies get to remove local costs and centralize that, that’s the second theme, marketing seems to be centralized.

And the third theme is the offerings by integrating language with other offerings were being exposed to sort of lot of opportunities. So customers are now getting comfortable combining email management with localization, combining Microsite creation and maintenance with localization and translation. So I think it’s vendor centralization, it’s marketing initiatives and it’s also our combined sort of value chain expansion deals with business school term are that’s really making these little bit larger opportunities for us.

George Sutton - Craig Hallum

That’s very well put. Thank you. Last from me if I could, Don, you mentioned new business programs at year end caused your SG&A to be a little higher. Can you give us some specificity as to what that spending was?

Don Muir

Yeah. Typically when we signed new business so we have new programs, we’re going to be ramping some resources ahead of the startup of those programs and we had some of that throughout the year as well. So we were making some investments in some G&A infrastructure in sales and marketing.

George Sutton - Craig Hallum

Perfect. Okay. Thanks guys.


Thank you. Our next question comes from Ben Rose. Your line is open.

Ben Rose - Battleroad Research

Good morning. With regards to Microsoft, I know it’s obviously a very strong relationship for the company, Rory could you comment on the outlooks for joint projects between Lionbridge and Microsoft coming into the new year specifically the extent to which you are involved in their crowd offerings and just any kind of -- excuse me, update on the search engine relevance work that you are doing for the being, search engine?

Rory Cowan

Yeah. Right. I’ll comment on the next step, clearly that’s a very deep and long standing relationship. Just to remind, there are a lot of new colors, lot of new participants on the call here. Microsoft is our largest customer. We touch them globally. We have a team of about 25 or 30 people that work with Microsoft in many countries and many divisions.

So it’s quite deep. So we work with them in all sorts of offerings as well from core localization to search relevance testing to all sorts of other activities. And then I could say it’s a well disclosed in our filings. We feel very comfortable about the future of Microsoft although I will say when you talk to everybody as I am sure many of you have, there is a lot of nervousness about a new CEO coming on.

So I think there are lots of reassessments, not reassessments but may be just some reflexive moments there for a group that really have all grown up together or leaders that we work with. So we're feeling, we’re feeling very good about our Microsoft relationship. I think there continued to be other opportunities for us there.

Ben Rose - Battleroad Research

Okay. And just a follow-up question on the Renault contract that you mentioned. Is that primarily a language translation effort or is there any kind of additional color you might be able to shed on that particular relationship?

Rory Cowan

No. What's heartening about that is that is a core translation of our opportunity that was a combination of our cloud technology and our core language sophistication sold in France and delivered globally. So it really all the things we've been doing for the past couple of years came together for that specific win, so that feels very, very strong.

And now with these larger projects, of course, the start-up time takes a little bit longer than we’re used too. The good news is when we are episodic and project based, you’d close something on Monday and you might be having a kick off the following week or the following 10 days. With these larger programs, you close something that might be two, three or four months by the time you get the various operate technologies and people and [loss rates] and everything working together. So from close to ramp is a little bit longer, but than these are far more sustainable opportunity. So it's becoming -- it feels much more like the traditional outsourcing business now.

Ben Rose - Battleroad Research

Okay. Thank you very much.


Thank you. Our next question comes from Vincent Colicchio. Sir, your line is open.

Vincent Colicchio - Noble Financial

Yes. Rory, I’m curious, what was the contribution of the top 10 in the quarter and I'm curious if there are any areas of weakness within the top 10?

Rory Cowan

Top 10 in the quarter, we're getting it up on the screen here right now. And the quarter is about 58%.

Vincent Colicchio - Noble Financial


Rory Cowan

And any weakness? No, it’s pretty stable relative to size, I mean there are normal ins and outs I think for the year. We have that Department of Justice contract on the screen here that there is some sequestration in Q3, which maybe blend into Q4, but nothing to worry about of course.

Vincent Colicchio - Noble Financial

And Don, you've mentioned that SG&A was up, regarding some investments. The G&A side in particular was higher than expected. What cause that and should that level be the number we used going forward?

Don Muir

Yes, I think that's a pretty good number used going forward, Vince. I wouldn’t deviate from that too much. I think -- as I said, we did make some investments and we’ve brought in some new management talent. So it's a prudent investment.

Vincent Colicchio - Noble Financial

And Rory, to what extent is Rich Tobin helping build the pipeline in GMO business. And do you expect GMO to grow as fast next year as it is good this year?

Rory Cowan

No. I think Vince, Rich Tobin remind everybody joined us as the COO and General Manager of our core language business here. And I traveled with Rich week before last in Asia and then he is now been to the vast majority of our offices around the world. Rich is bringing new ways of thinking and new ways of positioning our skills. I think that he is very, very impressed with the deep and disciplined execution that we’ve developed after years of dealing with technology buyers and applying that to marketing buyers that he feels very comfortable on leading us into this new market and supporting these initiatives. He has been traveling and meeting with customers this week. So, I think in general, we’re looking forward to a very positive 2014 in growth of the marketing segment.

Vincent Colicchio - Noble Financial

And, Rory, related to centralizing the purchasing of translation, are any of your larger competitors doing the same and does that puts you at risk with any clients?

Rory Cowan

Yes, I think that everybody is realizing that this is now a business of scale. You will clearly get an occasional customer that will decide to focus on smaller local providers because they don’t have, perhaps the organizational discipline or the release cycles of the more sophisticated global players will have. But I think this is just a trend of the industry. The deals are bigger and the deals are competitive. But I will say, I think this combination of crowd and cloud technology really puts us in good step.

Vincent Colicchio - Noble Financial

Okay. Great quarter, guys. Thank you.

Rory Cowan

Great. Thanks.


Thank you. (Operator Instructions) I do have a question from Kevin Liu. Your line is open.

Kevin Liu - B. Riley & Co.

Hi. Good morning and congratulations on the strong quarter. First question I had, you guys talked about kind of your normal Q1 seasonality a number of times. Last year, you obviously got off to a slower start in terms of just project starts. So, I was wondering if you could comment on what you’re seeing to start off fiscal ’14, has it been similar in terms of strong bookings activity but maybe projects started later on, or are you actually seeing revenue pickup necessarily in the quarter?

Rory Cowan

It is a little early to really comment on the specifics of the quarter, but you’re right to ask. But it feels as if, we’ve got some good strength across the end markets here. Just as Q4, as Don mentioned, we think that we might have pulled some revenue from Q1 into Q4. But we always find in March that as the demand builds and as budgets are released, the market begins to grow quite aggressively. And so really, you get Q4 and this is really the only quarter that it’s really, I call it a 10-week quarter because nobody starts until middle through January and those last two or three weeks of March relate to term in the quarter.

And so it feels pretty firm based on last year’s experience, we’re managing with much more granularity. And it just seems that there is a firmer demand environment for all of our customers there and it’s really just a question of timing of these projects rather than primary demand.

Kevin Liu - B. Riley & Co.

Got it. And maybe as it relates to normal seasonality, you also referenced Q2 tends to be the strongest period, obviously that wasn't the case in fiscal ’13 as you guys had a very strong second half. But would you expect it to return to a more kind of normalized seasonal pattern, or do you expect second half to continue to remain the strongest piece of the year for fiscal ’14?

Rory Cowan

It’s hard to say, two quarters does not an annual trend make. I think we just executed really well in Q3 and Q4 and also the demand was there. So, I think in Q3 and Q4, this year, I think we are running a better company than we ever have. And I really don’t want to really have you guys change anything as we look out for the year until I really tidy up the year and there is no reason to be heroes here. I'm feeling good about the year. But if I can get two years like this one together with these metrics in place then I may feel comfortable changing my opinion of seasonality.

Kevin Liu - B. Riley & Co.

Okay. And then I don’t know if you guys have looked it at this way, but maybe kind of the midpoint of your guidance. Would be curious as to how many points of growth you would expect to come from some of the newer initiatives you have like the GMO and Enterprise Crowdsourcing versus just a core translation and testing businesses?

Rory Cowan

It may be that a lot of the new stuff replaces some of the lower growth in just core translation capabilities, because as we begin to focus on more marketing activities here, or you begin to see more features or capabilities whereas core translation is becoming increasingly automated. I mean, we’re doing that. We‘re giving people more words for the same dollar just given how sophisticated we’ve become, so that’s a very good question to ask.

I wouldn’t want to put basis point or individual growth points to each just to get, Kevin. But maybe as the year unfolds, we can think about how to present that to you. But right now, I think that the core business is running well. It’s becoming more efficient and it is competitive. The new business is also running well and it feels to be less competitive.

Kevin Liu - B. Riley & Co.

Great. And one last housekeeping one, perhaps for Don, just wondering if you have the breakout for Q4 by revenues, by segment?

Don Muir

Yes. Sure, I will do. For Q4, GLC was $83.8 million, GDT $38.6 million and insurance was $5 million.

Kevin Liu - B. Riley & Co.

Great. Thanks a lot.

Rory Cowan

Great. Thanks guys. I think that’s the last question on the screen here. So we can all sign off. Thanks for joining us on the call today. And as always if you have any questions, Don, or you can really connect with Sara and then she can break us both out of whatever we’re doing today. So look forward to talking to you. Thanks a lot.


Thank you. That does conclude today's conference. You may now disconnect at this time.

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