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ICF's digital modernization strategy has two main components

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It’s been about three weeks since ICF integrated its recently acquired SemanticBits. SemanticBits is a provider of open source software services for the federal government’s digital modernization efforts.

SemanticBits’ primary customers are Medicare and Medicaid Service Centers. The agency has relied heavily on the use of open source technology for many of its efforts in areas such as customer experience and using technology to detect fraud, waste and abuse in the healthcare system.

ICF was already busy building part of its business focused on so-called low-code/no-code software, software hosted in cloud computing environments and licensed to users.

“What[SemanticBits]brings to us is providing scale on the open source side of the house. Combining these two sets of capabilities, we are able to provide the kind of solutions our federal clients are looking for. I think we can cover the entire waterfront, at the forefront of digital modernization,” CEO John Wasson told me.

Digital modernization revenue on a run-rate basis now totals about $500 million, split roughly evenly between open source and low-code/no-code, Wasson added in the interview.

SemanticBits is ICF’s third acquisition in less than a year, following acquisitions of Creative Systems and Consulting and Enterprise Science and Computing late last year. ICF’s acquisition of his Incentive Technology Group in 2020 represents the beginning of ICF’s acquisition push in the low-code/no-code space.

As Wasson pointed out in our conversation, digital modernization is one of ICF’s five major long-term growth drivers in federal business alongside public health.

These areas also highlight the interdisciplinary approach that ICF sees as key to its continued expansion and success.

Headquartered in Fairfax, Virginia, ICF seeks to combine teams that know their mission domain and customers intimately with other teams that provide their technology skill sets.

Wasson describes the ICF in several aspects, from program design, strategy, policy, and helping modernize IT agencies’ use of efforts related to the first three mentioned in this sentence. said to be positioned.

“Ensuring that both technology and domain aspects are part of the solution and part of the effort, and engaging both to fill in the blanks will lead to differentiated and more effective solutions.” I see, said Wasson.

Total revenue for the second quarter was $423.1 million, up 7.8% from the year-ago quarter. Services revenue (sales excluding subcontractors and other direct costs) was $363 million, an increase of 8.9% year-over-year.

Earnings for the quarter increased 10.3% to $44.1 million, Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).

ICF Raises Full-Year Revenue Guidance to $1.325 Billion from $1.275 Billion in Services Revenue, Showing 17% Growth at the Midpoint, with Total Revenue of $1.76 Billion to $1.82 Billion indicates that it is in range. The company also expects his adjusted EBITDA to be in the range of $186 million to $198 million, which means his services revenue margin will be close to 14.8%.

ICF’s second quarter financial statements were accompanied by an updated corporate citizenship report. It is a document many companies release to detail their contribution to a larger social goal, such as improving their communities or the environment.

ICF committed 86% of last year’s $1.55 billion in revenue to environmental and social initiatives in areas such as health, education, development, social justice, reducing energy consumption, managing carbon footprint and protecting natural resources. We believe that we have contributed to bringing about a positive impact on

Asked about what the report tells current and prospective employees, Wasson said, “The mission-oriented nature of ICF and how these key social, economic and It captures the impact that can have”.

This is the basis for ICF’s pitch as a destination employer and ties into issues people care about, Wasson said.

In ICF’s earnings call with investors on Aug. 3, an analyst said James Morgan had been appointed as chief operating officer (COO).

This is a change from Morgan’s previous role as Chief Operating Officer in early 2020, after nearly eight years as ICF’s Chief Financial Officer.

Wasson said Morgan’s new title is “a better reflection of what he does” for the ICF.