Latest news with #costmanagement
Zawya
11 hours ago
- Business
- Zawya
New Bain & Company Analysis reveals Zero-Based Cost Management can cut costs by up to 25% and boost shareholder returns by 150%
Middle East – Bain & Company's latest cost-management analysis, The New Case for Zero-Based Cost Management, explains how a clean-sheet approach to cost discipline helps companies offset rising costs, free up funds to reinvest in growth and resilience, and widen their lead on competitors, even in turbulent times. Zero-based cost management enables leadership teams to rapidly shrink the firm's cost base as much as 25 percent and redeploy savings to spur growth, expand operating margins, and boost flexibility and competitiveness. Bain's 2025 Operations Reinvention COO Survey finds that two-thirds of global executives say new tariffs are forcing them to accelerate cost cuts and price increases. Bain's analysis of 5,000 companies globally shows that sustained value creators, those delivering both real top-line growth and positive economic value added over the past decade, have outperformed peers by 150 percent in total shareholder return. These leaders embed profitable-growth capabilities that hold up throughout economic cycles, industries, and geographies, underscoring the role of cost discipline in long-term outperformance. The brief describes three levels of cost management: Benchmarking and setting targets – the brute-force approach most companies use, with cost reductions that typically last only one or two years before creeping back. Redesigning the work – some firms deploy zero-based redesign (ZBR) to reset how work is done, strengthen capabilities that provide competitive differentiation while streamlining functions that are less critical, and tap generative AI for larger productivity gains. Embedding a cost-management mindset – the few winners that sustain gains treat cost discipline as a strategic priority, build capabilities in people, processes, and technology to create and sustain impact, foster a culture of ownership and continuous improvement, and use zero-based budgeting to reallocate scarce resources to their most productive uses. The most effective companies share a distinguishing feature when retooling costs: CEO and CFO engagement in a full change management effort. These leaders acknowledge at the outset that cost management requires new skills and a new mindset. They play a major role in shaping the goal and ambition, and design programs that address the potential barriers to change. Finally, they build the strategic case for change, instead of just implementing it. In doing so, they bring the organization with them. Businesses face an increasingly unpredictable future as costs mount and risks multiply. Those that embrace all three levels of cost management will be able to navigate near-term market shifts, even as they gain a competitive edge for the long term. About Bain & Company Bain & Company is a global consultancy that helps the world's most ambitious change makers define the future. Across 65 cities in 40 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today's urgent challenges in education, racial equity, social justice, economic development, and the environment. We earned a platinum rating from EcoVadis, the leading platform for environmental, social, and ethical performance ratings for global supply chains, putting us in the top 1% of all companies. Since our founding in 1973, we have measured our success by the success of our clients, and we proudly maintain the highest level of client advocacy in the industry.
Yahoo
7 days ago
- Business
- Yahoo
Agora Inc (API) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic AI ...
Total Revenue: $33.3 million in Q1, up 12% year-over-year, excluding certain low-margin products. Core Revenue: $18.6 million in Q1, growing 17.7% year-over-year and 6.9% sequentially. Shengwang Revenue: RMB 105.5 million in Q1, up 6.7% year-over-year, down 13.7% sequentially. Gross Margin: 68% in Q1, with a 0.6% year-over-year and 1.4% quarter-over-quarter increase for continuing business. Net Income: $0.4 million in Q1, representing a 1.2% net income margin. Operating Cash Flow: $17.6 million in Q1, compared to negative $6.5 million last year. Cash and Equivalents: $388 million at the end of Q1. Operating Expenses: Decreased to $26.5 million in Q1 from $32.6 million in Q2 2024. R&D Expenses: $14 million in Q1, decreased 22.7% year-over-year. Sales and Marketing Expenses: $6.2 million in Q1, decreased 8.5% year-over-year. G&A Expenses: $6.2 million in Q1, decreased 25.6% year-over-year. Share Repurchase: $116.4 million worth of shares repurchased through March 31, 2025. Q2 2025 Revenue Guidance: Expected to be between $33 million and $35 million. Warning! GuruFocus has detected 7 Warning Signs with API. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Agora Inc (NASDAQ:API) reported its second consecutive quarter of GAAP profitability, driven by double-digit revenue growth and disciplined cost management. Total revenue in Q1 was $33.3 million, up 12% year-over-year, with a healthy business expansion and net retention rate recovery. The company launched its Conversational AI Engine in China, which is in public beta for the US and global markets, showing industry-leading performance. Agora Inc (NASDAQ:API) introduced a Conversational AI device kit, enabling manufacturers to add AI to IoT devices, reducing R&D costs and time to market. The company achieved a positive operating cash flow of $17.6 million in Q1, a significant turnaround from the previous year's negative cash flow. Shengwang revenues declined 13.7% sequentially, mainly due to normal seasonality and reduced activity during holidays. The dollar-based net retention rate for Shengwang was 85%, indicating room for improvement compared to Agora's 96%. Despite profitability, the net income margin was modest at 1.2%, highlighting the need for further financial strengthening. The competitive landscape in China remains fierce, with lower margins compared to global markets. The timing for massive adoption of Conversational AI remains uncertain, as product-market fit varies across different verticals. Q: What are the key areas for future growth in AI applications, and how do you see the demand trend for China and overseas businesses? A: Bin Zhao, CEO, highlighted that Conversational AI is a major focus, with key use cases in education, IoT, and call center services. Jingbo Wang, CFO, noted strong growth in the US and global markets, particularly in live video-based shopping and entertainment apps. In China, demand is recovering, with stable pricing and less regulatory impact. Q: Can you provide more details on your strategy for enabling overseas e-commerce platforms and the shifts in AI-powered real-time interaction capabilities? A: Bin Zhao, CEO, emphasized the focus on improving video quality for live commerce and gaining new customers. The company is also concentrating on Conversational AI, with many customers nearing product launch. The key to growth is achieving product-market fit in specific verticals. Q: What is the expected timing for the massive adoption of Conversational AI, and how does the competitive landscape in China affect pricing and gross margins? A: Bin Zhao, CEO, explained that product-market fit will occur gradually across various use cases, with no specific timing for widespread adoption. Jingbo Wang, CFO, noted that while China is competitive, the focus on high-value use cases and technical optimization helps maintain stable gross margins. Q: How is Agora addressing the demand for AI in education and IoT, and what are the growth drivers in these areas? A: Bin Zhao, CEO, stated that education, particularly language learning, and IoT, such as conversational toys, are key areas of focus. The company is working closely with developers to create compelling products that meet specific industry needs. Q: What are the current tractions and strategies for live shopping and interactive features in emerging markets? A: Bin Zhao, CEO, mentioned that there is clear demand for live commerce, with efforts to improve video quality and gain new customers. The company is focusing on local live shopping platforms, which are less impacted by international trade tensions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
19-05-2025
- Health
- Associated Press
Greater Good Health Appoints Value-Based Care Expert Derek Chao, MD as Independent Board Member
EL SEGUNDO, Calif.--(BUSINESS WIRE)--May 19, 2025-- Greater Good Health, a premier partner to risk-bearing organizations in managing total cost of care, is pleased to announce the appointment of Derek Chao, MD as its newest independent board member. Dr. Chao, who currently serves as the Chief Executive Officer of Optum West, brings more than two decades of expertise in value-based care strategy. He has held multiple key leadership positions at Optum, DaVita Medical Group and Healthcare Partners. With a proven track record of driving growth and innovation, Dr. Chao will play a pivotal role in guiding Greater Good Health's strategic direction and ensuring its continued success in delivering high-quality healthcare services and managing total cost of care. This press release features multimedia. View the full release here: Derek Chao, MD joins Greater Good Health Board as Independent Board Member 'Derek's experience in guiding all elements of value-based care is invaluable as Greater Good Health continues to scale and drive medical cost management,' said Tyler Jung, MD, Chief Medical Officer of Greater Good Health. 'A trailblazer in managing the true cost of care, his clinical background as a nephrologist and hospitalist, coupled with his deep knowledge of the key levers in managing complex populations across the country, make him an incredible fit for our team.' Greater Good Health Chief Executive Officer, Sylvia Hastanan adds, 'I am thrilled to have Derek join our Board and I know that his impact on Greater Good Health will be significant.' Greater Good Health is a clinical care organization that enables longitudinal care through value-based care to optimize medical cost management. Through its nurse practitioner-led models, it is directly solving the challenges of rising medical costs and an increasing primary care physician shortage across the country. As part of its comprehensive suite of services, Greater Good Health partners with health plans in access-starved markets and operates its own primary care clinics for seniors. 'Across the industry, healthcare organizations are struggling with medical expenses, total cost of care and sub-optimal outcomes, and the team at Greater Good Health has demonstrated an unwavering focus on pragmatically solving these problems,' said Dr. Chao. 'Our shared commitment to expanding value-based care makes this a natural fit for me. l look forward to collaborating with the Board and management team to drive strategic initiatives that will enhance Greater Good Health's impact on our healthcare system.' About Greater Good Health Greater Good Health is a premier partner for risk-bearing organizations in managing total cost of care. The company is enabling and expanding access to value-based primary care through its innovative suite of clinical solutions and its own primary care clinics for seniors in underserved communities. Greater Good Health's proven Nurse Practitioner-led model reduces unnecessary costs, improves clinical outcomes and delivers a best-in-class patient experience. For more information, visit View source version on CONTACT: Matt Gagalis Chief Commercial Officer Greater Good Health [email protected] KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA INDUSTRY KEYWORD: MANAGED CARE HOSPITALS HEALTH SOURCE: Greater Good Health Copyright Business Wire 2025. PUB: 05/19/2025 10:43 AM/DISC: 05/19/2025 10:42 AM
Independent Singapore
15-05-2025
- Business
- Independent Singapore
ComfortDelGro's Q1 2025 operating profit jumps 45.5% YoY to $81.5M
Photo: Comfort DelGro SINGAPORE: ComfortDelGro has recorded its eighth consecutive quarter of improved financial results, thanks largely to stronger earnings from its international operations and tighter cost management in Singapore. For the first quarter of 2025, the public transport operator posted an operating profit of S$81.5 million — a 45.5 per cent jump compared to the same period last year. The company's revenue has also risen by 16.4 per cent year-on-year to nearly S$1.17 billion. The company pointed to the renewal of its London bus contract as a key factor behind the strong showing. It reported that new contract terms have led to better profit margins, contributing significantly to overall performance. Back home, ComfortDelGro said efforts to streamline operations and control costs have started to bear fruit, allowing it to maintain profitability despite a more competitive local transport market. Notably, overseas operations now account for more than half of the group's total revenue — a first in the company's history — underlining the growing importance of its international business in cities such as London, Sydney, and Beijing.
Bloomberg
09-05-2025
- Business
- Bloomberg
Japan's Defense Firms Plan to Pass on Tariff Costs to Customers
Mitsubishi Heavy Industries Ltd. and Kawasaki Heavy Industries Ltd. aim to pass on costs linked to US tariffs to customers to limit the impact on earnings. Japan's leading defense contractors didn't factor in additional costs from levies in their forecasts for this fiscal year. Mitsubishi said it sees no material impact from tariffs, with its energy unit and the aerospace and defense business driving profit growth. Kawasaki expects price hikes to have a moderate impact on its power sports and engine unit.
