Accenture has announced Q1 FY23 results, for the period ending November 30, 2022:

• Revenues were $15,747.8m, up 5.2% y/y, up 15% in CC
• Operating income (EBIT) was $2,593.1m, a margin of 16.5%, up 20 bps y/y.

Q1 FY23 revenue (with reported and constant currency growth) by service line was:

• Consulting and systems integration $8,444m (+1%) (+10% in CC)
• Managed Services $7,303m (+5%) (+15% in CC).

Revenue growth in CC by activity was:

• Strategy & Consulting, low single digit growth (3% in CC)
• Technology, strong double digit growth
• Operations, double digit growth

Q1 FY23 revenue (with reported and CC growth) by industry sector was:

• Products $4,666m (+4%) (+15% in CC)
• Communications, Media & Technology $2,980m (+3%) (+11% in CC)
• Financial services $2,963m (+2%) (+13% in CC)
• Resources $2,138m (+10%) (+21% in CC)
• Health & Public Services (HPS) $3,000m (+10%) (+15% in CC)

Q1 FY23 revenue (and revenue growth) by geography was:

• North America $7,623m (+10%) (11% in CC)
• Europe $5,072m (~0%) (+17% in CC)
• Growth Markets $3,053m (+3%) (+19% in CC).

New bookings in the quarter were $16.22bn (Q2 FY 2022: $16.78bn, up 6% in constant currency, down 3% as reported). This included 24 bookings of $100m+. Bookings by service type were:

• Consulting $8.11bn, a book-to-bill of 0.96
• Managed Services $8.11bn, a book-to-bill of 1.1.

Utilization in the quarter was 91%, the same as in Q4 FY22.
Quarterly voluntary attrition annualized was 13%, down from 20% in Q4 FY22 and down from 17% in Q1 FY22.

Accenture’s total cash balance at November 30, 2022 was $5.9bn, compared with $7.9bn at August 31, 2022.

During the quarter, Accenture invested $686m in acquisitions, including those of eLogic and Sentia (cloud), ALBERT (data science, Japan) McGregor and Stellantis (supply chain and manufacturing), and Romp (Accenture Song, Indonesia)

Revenue guidance for:

• Q2 FY23 is in the range of $15.2bn to $15.75bn, a y/y growth of 6% to 10% in CC
• FY23 is of CC growth of 8% to 11%, with high single digit growth in Consulting and double digit growth in Managed Services.

Accenture is targeting 10 to 30bps margin expansion for the year.