Financial Data and Key Metrics Changes - The company has seen strong momentum in revenues and expects significant acceleration in the second half of the year [5] - Margin growth has improved from approximately 4.6% in fiscal 2023 to 5.1% in fiscal 2024, with a midpoint guidance of about 5.5% [27][24] - The company aims for a long-term margin improvement of 20 to 30 basis points annually, which could exceed previous peaks [34] Business Line Data and Key Metrics Changes - The company reported a retention rate of over 98% in the first half of the year, with a target of 95% to 96% [13][16] - The international business has consistently outperformed the U.S. business, achieving double-digit growth [36] - The U.S. business accounts for two-thirds of revenue, with a steady state of new business wins coming from first-time outsourcing [44][48] Market Data and Key Metrics Changes - The company anticipates a moderate tailwind from the return to office, with growth in the Business and Industry segment [66] - The international segment has shown consistent margin improvement, with margins ahead of 2019 levels [43] Company Strategy and Development Direction - The company has shifted to a growth-oriented model with a focus on hospitality, decentralizing operations to enhance customer service [9][10] - Strategic actions include realigning incentives to focus on net new business, which is crucial for growth [9] - The company is leveraging technology to improve efficiency and throughput in service delivery, particularly in collegiate athletics [55][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook, citing improved retention rates and a strong start to the year [5][6] - The company expects to exit the year with an organic growth rate in the 5% to 8% range, with an exit rate around 8% [21][22] - Management noted that the current economic environment presents both challenges and opportunities, particularly in the context of outsourcing trends [46] Other Important Information - The company has experienced a $200 million foreign exchange headwind for the year, with potential upside if rates stabilize [68][73] - The collegiate sports sector is evolving, with increased funding requirements leading to opportunities for enhanced service offerings [55] Q&A Session Summary Question: What is the outlook for customer retention? - The company is on track to achieve or exceed its 95% to 96% retention target based on strong first-half performance [13][16] Question: What factors are driving expected growth acceleration in the second half? - The company anticipates an exit rate of around 8% due to reduced rebid activity and improved retention [21][22] Question: How does the international business compare to the U.S. business? - The international business has shown consistent double-digit growth and is expected to continue outperforming the U.S. segment [36] Question: What is the impact of technology on service delivery? - Technology is enhancing efficiency and throughput, particularly in collegiate sports venues, which is expected to drive revenue growth [55][56] Question: How is the company addressing foreign exchange fluctuations? - The company has accounted for a significant FX headwind but remains cautious about potential fluctuations in rates [68][73]