Summary of Information Services Group, Inc. (ISG) Fourth Quarter and Year-end 2020 Earnings Conference Call Company Overview - **Company**: Information Services Group, Inc. (NASDAQ: III) - **Date of Call**: March 12, 2021 - **Participants**: - Barry Holt – Senior Communications Executive - Michael Connors – Chairman and CEO - David Berger – Executive Vice President and CFO Key Points Financial Performance - **Q4 Revenues**: $66 million, up 8% sequentially and 5% year-over-year, excluding billable travel and expenses (T&E) [8][23] - **Recurring Revenues**: $22 million for Q4, up 17% year-over-year; $82 million for the full year, up 10% [9] - **EBITDA**: $9 million for Q4, up 11% sequentially; EBITDA margins rose to 14% [9][10] - **Net Income**: $1.4 million for Q4, with fully diluted EPS of $0.03 [24] - **Cash Generation**: $7 million in Q4, record $44 million for the year, with a net debt-to-EBITDA ratio of 1.2x [10][25] Business Strategy and Model - **ISG NEXT**: A new operating model focusing on two areas: ISG Digital and ISG Enterprise, aimed at enhancing growth and profitability [17][18] - **Digital Services**: Over 50% of Q4 revenues came from higher-margin digital services [10] - **Client Engagement**: 722 clients served in 2020, with 224 being new clients acquired during the pandemic [11] Market Trends and Client Behavior - **Digital Transformation**: Clients are investing in digital technologies to adapt to the pandemic, with growing demand for cloud adoption and network modernization [12][20] - **Regional Performance**: - **Americas**: $38 million in revenue, up 8% sequentially [13] - **Europe**: $23 million in revenue, up 10% sequentially, with strong performance in insurance and manufacturing sectors [15] - **Asia-Pacific**: $5.5 million in revenue, up 30% year-over-year [16] Future Guidance - **Q1 2021 Revenue Forecast**: Expected between $63 million and $65 million, with significant margin expansion anticipated [21] - **Long-term Outlook**: Anticipated EBITDA margin expansion of 400 basis points over the next two years [19][54] Risks and Considerations - **Pandemic Impact**: Continued uncertainty in Europe due to lockdowns and potential impacts on sectors like travel and hospitality [20][40] - **T&E Revenue**: Expected to remain near zero for the first half of 2021, impacting year-over-year comparisons [22][57] Additional Insights - **Client Satisfaction**: Increased client satisfaction scores despite remote working conditions [17] - **Utilization Rates**: Consulting utilization improved to 73% from 66% year-over-year, driven by the new operating model [25][56] Conclusion - ISG demonstrated resilience and adaptability in a challenging market, with strong financial performance and a strategic focus on digital transformation and recurring revenue streams. The new ISG NEXT model is expected to drive future growth and profitability, despite ongoing pandemic-related challenges.

Information Services Group, Inc. (NASDAQ:III) Full year 2019 EMEA Index Call January 29, 2020 9:00 AM ET Company Participants Steve Hall - President, EMEA & Global Leader, ISG Index Barry Matthews - Partner Managing Director, Northern European Business Owen Wheatley - Lead Partner, Banking & Financial Services Wayne Butterfield - Director, ISG Automation business, Northern Europe Barbara Florschuetz - Partner Managing Director, ISG, DACH Business Conference Call Participants Neil Steer - Redburn Partners Op ...