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We had strong performance in software and infrastructure above our model as investment in innovation is yielding organic growth, while consulting remained below model. As we stated last quarter, factors such as interest rates and inflation impacted timing of decision making and discretionary spend in consulting.
In under two years, we have paid down over $8 billion of debt off our peak and significantly reduced interest expense, which, coupled with our improving EBITDA, has improved our leverage metrics tremendously. times net debt to EBITDA, closing in on our expectation to reach investment-grade leverage metrics in 2026. We achieved a 4.3
We had good performance in software, at the high end of our model; continued strength in infrastructure, above our model; while consulting was below model. On a relative basis, consulting outperformed the market. We are well-positioned to drive growth for HashiCorp by leveraging IBM's enterprise incumbency and global reach.
We entered the year intent on enhancing our Software portfolio and strengthening our Consulting position. Consulting has delivered durable revenue growth through the year despite an uneven macro environment. Consulting has delivered durable revenue growth through the year despite an uneven macro environment. We have done both.
With platform-specific domain consultants and architects, we are able to bring tremendous focus to our go-to-market efforts. The customer was facing rising costs in their SOC with little automation and adequate visibility into the rising number of tailored attacks that leveraged AI. We have hundreds of customers leveraging AI access.
Nearly every business we talk to wants to leverage technology to offer better services, scale more quickly, and fuel growth without increasing their footprint. In this past quarter, we saw good revenue growth in software and consulting. These consultants also provide valuable real-time feedback to other product teams.
At Zeta, our goal is to make marketers the heroes of their stories by helping them to acquire, grow, and retain customers, substantially more efficiently and effectively than ever before by leveraging our data, implementing our software, and utilizing the superpower of our AI. And third, we're raising guidance. in the second quarter of 2023.
Our unwavering focus on increasing operating leverage while investing in future growth is allowing us to raise our 2024 outlook for both revenue and adjusted EBITDA. We are committed to continuing to grow operating leverage into 2025 and beyond. Erica will share details on these plans in a few minutes.
We now have the opportunity to leverage existing cross-functional capabilities for the development and potential launch of INO-3107. This value proposition has to be provided in the context of any competition, and it must leverage trial data and real-world evidence. G&A expenses for the third quarter of 2023 were $9.9
Consulting leaders like Accenture and Deloitte are taking NVIDIA AI to the world's enterprises. Additionally, Accenture, with over 707,000 employees, is leveraging NVIDIA-powered agentic AI applications internally, including one case that cuts manual steps in marketing campaigns for 25% to 35%. We are launching the same in the U.S.
And we will continue to leverage East Buy to propel knowledge sharing, product dissemination, and culture promotion to our valued customers in the long term. The overseas study consulting business recorded a revenue increase of about 17% in dollar terms, or 23% in RMB terms year over year for the first fiscal quarter of 2024.
For those that don't know him, Samir joined CareScout in the second half of 2023, bringing a wealth of experience from financial services and strategy consulting roles at Goldman Sachs, JPMorgan, and McKinsey. who can leverage that access to optimize quality care, affordable pricing, and personalized service. Turning to Slide 17.
With a consulting partner in the quarter, we identified several favorable shrink opportunities and have implemented specific administrative and process actions that enable us to better monitor and manage both internal and external factors. And as Ken noted, we are addressing other opportunities called out by a consulting partner.
Our AA rated financial strength represents a strong capital position, including approximately $48 billion of unrealized insurance margins over $4 billion in highly liquid assets at the end of the first quarter, a high-quality, well-diversified investment portfolio and a disciplined approach to asset liability management.
We're also leveraging our Dabir's partnership to advance jewelry consultant training, natural diamond marketing and several new branded natural diamond merchandise collections launching in the third quarter. In marketing, we're increasingly leveraging data and AI to personalize our messaging. Turning now to our balance sheet.
One consideration of executing this strategy is how to cover the tax liability on this conversion. Drawbacks: It is recommended that the tax liability generated by the conversion be paid with funds outside of the converted amount. This will make the converted amount taxable in the year that you transfer the assets into a Roth IRA.
By leveraging ERNIE Speed and our ModelBuilder, we helped a healthcare automation solution provider to train and finetune an industry-specific model that enables automatically generated medical records for doctors. And since then, we kept leveraging our self-developed four-layer AI architecture for model upgrade.
percentage points sequentially to 41.6%, slightly ahead of our guidance, mainly due to operating leverage on higher revenue. On the liabilities side, current liabilities decreased by 56 billion NT, mainly due to the decrease in accounts payable. Gross margin decreased 1.3 Operating margin decreased 0.1 NT, and ROE was 28.1%.
Our teams, in consultation with the relevant Turkish authorities, have been diligently working on finding the missing individuals and will continue to do so. So no real impact to the business, and we're looking to leverage on reducing it even further. All recovery activities are currently focused in the Sabirli Valley.
We expect to be able to leverage the A&D investments happening today at SkyWater to support numerous commercial use cases that require reliable CMOS performance and applications, like advanced computing and medical diagnostics, which are our next two fastest-growing end markets. million of management consulting fees in the quarter.
To counteract this challenge, we are adjusting and taking action to rightsize our business based on what we believe sales volumes will be in the near term while maintaining operating leverage to capture increased -- increases in sales and market share without significantly rescaling overhead. Our focus is clear.
Our pipeline has expanded nicely, largely driven by new deal inflows in Consulting and Engineering Services, which is our largest segment. Last quarter, we consolidated our Analytics, Engineering, and Applications business and now call it Consulting and Engineering Services under industry veteran, Howard Boville.
In particular, I would like to highlight the solid recovery has been valid in the growth of our overseas test prep and overseas study consulting businesses, which have recorded steady increments in revenues and enrollments. But I think we do have the operating leverage in hand.
We will also, for the first time, have the ability to leverage advanced player tracking data to refine and enhance our leading AI enabling betting and streaming products and services. The sports rights impact in the quarter was mostly offset by the operating leverage we delivered across the rest of our call space.
We expect gross margins will improve over time as we realize the benefits from lab automation, leverage investments in a lab infrastructure, and see an increased mix of rescreened patients. We continue to expect leverage across the P&L this year, especially within G&A. You get a ton of leverage by adding these reps.
The overseas study consulting business recorded a revenue increase of about 26% in dollar terms or 31% in RMB terms year over year for this quarter. Sisi Zhao -- Director, Investor Relations Just roughly, our key business lines, like overseas related, including the test prep and consulting will grow roughly about 15% to 20% range.
I'm with Western Avenue Advisers LLC, which was hired in April as an investor relations consultant to the company, following Sara Buda's departure. Ultimately, as we progress through 2025, we expect revenue growth to accelerate and more revenue to drop right to the bottom line as we improve operating leverage further.
MicroStrategy is well positioned to gain competitive leverage in winning both of these areas of growth. Much like we have done with cloud hyperscalers, we plan to openly partner with and leverage the technology investments in these companies. Rather than invest heavily to build our own models.
Third, our company is strategically positioned to leverage our scale and competitive advantages to help weather the highs and lows of our category and general macro pressures. Our leverage ratios remain below our target with our adjusted gross debt leverage ratio now measuring 2.3 Turning to services. times or 1.8
Continuing with GBS, we're bringing together the best capabilities of our Analytics and Engineering and Applications business, now called Consulting and Engineering Services, with industry veteran Howard Boville as our general manager. Now, we do have operating leverage with working capital. Moving on to security.
Reflecting on the significant improvements in SkyWater's operational execution and financial performance over the past four quarters, we are demonstrating important progress toward achieving the strong revenue growth and operational leverage objectives communicated since our IPO a little over two years ago.
And number three, reduce leverage to the low to mid-6 times is a major priority for Macerich. Based on our plan, $500 million of new equity reduces leverage by two-thirds of a turn. And the final 65 basis points of leverage reduction is accounted for in that $500 million of common stock issuance as a placeholder.
In Europe, our differentiated capabilities continue to create significant opportunities for our clients to leverage the top talent on their most complex business and technical challenges. We ended Q2 with more than 47,000 consultants, designers, engineers, and architects, a decline of 4.8%, compared to Q2 2023. That was good to see.
Consult with a Fortune Financial advisor for personalized advice on maximizing the growth of your recovered funds. Aligning withdrawals with periods of lower income can reduce overall tax liabilities, leveraging lower tax brackets to your advantage.
And finally, in Europe, we extended our long-standing partnerships with Credit Agricole, the deal renews our payments relationship with one of the largest banks in the region, while continuing to embed comprehensive marketing, consulting, and loyalty solutions. These examples, like many others, are true partnerships.
Nearly 90% of PALs are now digitally originated, and more than 40% of retail applications are now initiated by a financial consultant, compared to less than 5% just a few years ago. We know that relationships matter, and we're investing to give more of our clients access to a dedicated financial consultant. Please go ahead.
Enterprise and individual developers have swiftly transitioned from the fear of missing out on this opportunity to leveraging foundation models like ERNIE to build AI applications. Leveraging our technical expertise, we can now integrate GPUs from various vendors into a unified computing cluster to train an LLM. and ERNIE 4.0.,
For example, a leading international retailer was able to leverage Relational Migrator to dramatically accelerate the migration of Oracle. As one example, a large global management consulting firm is using Atlas -- Atlas Vector Search for an internal research application that allows consultants to semantically search over 1.5
This rebranding allows us to leverage marketing investments and capitalize on the strength of the Spartan brand name. The year-over-year increase was largely due to net sales leverage, productivity improvements and net price realization, primarily driven by lower floor plant costs. Residential segment earnings for the quarter were $32.6
We believe no one is better positioned to help the restaurant brands leverage the power of digital commerce and data to drive guest lifetime value and operational efficiencies. As we look forward, we believe we're still early on in the industry's journey in fully leveraging the promise of digital. million, compared to $3.1
Our pipeline continues to grow, including a higher mix of a number of deals in consulting and engineering services. Specifically in consulting and engineering, first, we expanded our enterprise application capabilities that help clients leverage AI, driving increased bookings. We play a pivotal role in driving global commerce.
Our margin enhancement initiatives began to deliver meaningful results late in November and leveraged our top-line growth to achieve restaurant-level margins of 15.4%, up 100 basis points to last year. We effectively leveraged our strong sales and delivered improving margins, while also investing in food and marketing costs.
In landing with multiple platforms, many of our customers have leveraged our capabilities across key cybersecurity buying centers such as network security, cloud security and security ops. Enabling over 1,000 IBM security consultants on the entire Palo Alto Networks portfolio will allow us to drive platformization in an accelerated fashion.
You heard me say this before, but creating this market will take some time, but we're seeing good traction in building the ecosystem, which will ultimately be crucial to drive the next step of digitalization of enterprise and society, leveraging the capabilities of their mobile networks. Joe Zhou -- Barclays -- Analyst OK. Thank you.
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