Deloitte reports record FY2023 revenue

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Sep 07, 2023, 06:05 ET

Key highlights:

Reports record FY2023 revenue of US$64.9 billion, a 14.9% increase in local currency
Workforce expanded to approximately 457,000 globally

NEW YORK, Sept. 7, 2023 /PRNewswire/ -- Deloitte today reported aggregate global revenue of US$64.9 billion for the fiscal year ending 31 May 2023 (FY2023), a 14.9% increase in local currency (and 9.3% increase in USD) from FY2022.

"In an environment of increasing complexity and an accelerated pace of technology-driven change around the globe, Deloitte's unrivaled breadth of expertise within our multidisciplinary model continues to differentiate us in the marketplace," says Joe Ucuzoglu, Deloitte Global CEO. "This is an environment that places increasing value on diversity of thought and interdisciplinary solutions, playing directly to our strengths. Amidst transformative advances in technology and a dynamic economic and geopolitical landscape, our people take great pride in upholding the public's trust and helping clients and communities successfully navigate many of the most complex challenges of our time."

Delivering impact, embedding purpose in all that we do

Deloitte's business success is underpinned by our commitment to embedding our purpose—to make an impact that matters—in everything we do. We also draw strength from our multidisciplinary model, which brings together the breadth and depth of experience and capabilities across our global organization to address both the near- and long-term forces reshaping business and society. This integrated approach enables us to bring our purpose to life and deliver significant impact for our stakeholders.

Navigating digital disruption and embracing generative AI: As the pace of digital transformation continues to accelerate, companies across industries and markets should carefully navigate the powerful pull of technological change. In guiding clients through these times of disruption, we draw on our strong ecosystem of alliances with many of the world's leading technology providers. During the past year, Deloitte also established emerging alliances with a number of innovative tech newcomers. From cloud migration to digital transformation, and from AI-driven change to workforce reinvention, the combined power of our alliance relationships helps enable us to deliver solutions that add value at each stage of a company's journey.

Deloitte is actively incorporating generative AI into our own platforms to optimize the way we deliver services, and helping our clients take full advantage of this transformative technology. As one example of our leadership in this area, we recently announced an expansion of our strategic alliance with NVIDIA to use AI technology and expertise to build high-performing generative AI solutions for enterprise software platforms to help unlock significant business value. As we work in this complicated, quickly changing landscape, we are guided by our Ethical Technology Principles, which reflect our commitment to ensuring Deloitte's creation and use of technology are trustworthy.
Embedding continuous advantage: Widespread digitization and ever-changing disruptive technologies—along with evolving regulatory and risk requirements, talent shortages, and the need for increasingly specialized skill sets—also create challenges when it comes to how companies run their operations. Over the past year, we continued to expand our Operate services as an integral piece of our strategy to integrate it with our Advise and Implement services, helping organizations transform and advance critical business functions to increase operational efficiency, add value, and embed continuous advantage into their operations to drive better business outcomes. Our Operate delivery network includes leading professionals, leveraging Deloitte's proprietary digital platforms, working from nearly 60 centers around the world and supporting delivery in approximately 15 languages.

With the right mix of globally available and scalable, hard-to-source domain and industry talent, technology, and transformation experience, Deloitte has helped companies tackle some of their toughest challenges in mission-critical areas of business, such as cybersecurity, tax, and risk. For instance, Operate teams have helped clients respond to ransomware attacks and provide 24/7 cybersecurity monitoring, deliver ongoing efficiencies to streamline regulatory filings using AI-enabled platforms, and continually monitor multi-tier global supplier networks for potential disruptions while driving strategies to proactively mitigate them.
Powering meaningful, measurable climate action: Tackling climate change requires sophisticated solutions. Over the past year, Deloitte's Global Sustainability & Climate practice has worked with clients spanning industries and geographies to turn their climate commitments into climate action. Teams from across our businesses helped drive meaningful advances in clients' climate transformations—from embedding sustainability into their strategies and operations to measuring and reporting on their progress.

For example, we have guided clients in developing actionable paths to net-zero through Deloitte's GreenLight Solution decarbonization tool and helped them accelerate decarbonization and value creation by bringing together climate technology ecosystems in a systematic, purposeful way through GreenSpace Tech, both launched in 2023. As global business leaders reevaluate their approach to value creation to consider sustainability and a broader set of stakeholders, we also introduced Deloitte's Sustainable Value Map™, designed to help expand collective thinking about how an organization's value can be defined and improved in a sustainable world.

Stakeholders are increasingly calling on companies to report transparently on a broad set of financial and non-financial key value drivers. Deloitte is a visible leader in this area, reporting our performance against the World Economic Forum (WEF) stakeholder capitalism metrics (SCM) and aligning with the Global Reporting Initiative. We earned an A- rating from CDP for our FY22 response to its climate change questionnaire. In addition, Deloitte is continuing to make disclosures in line with the recommendations of the Task Force on Climate-Related Financial Disclosures. Together with the coalition of companies supporting the WEF SCM initiative, we have continued to advocate for a comprehensive global baseline for sustainability reporting based on the International Sustainability Standards Board's (ISSB's) standards. We also collaborate with the Sustainable Markets Initiative (SMI) on its mission to build a coordinated global effort within the private sector to accelerate the transition to a sustainable future.

Powering business growth

Among Deloitte's businesses, Consulting revenue grew fastest at 19.1% in local currency, followed by Risk Advisory, which grew 17.5%. Among the regions, the Americas grew the fastest at 17.5%, followed by EMEA at 12.6%.

Consistent with the critical importance to society of the work we do across our practices, we strive to execute with the highest ethics and integrity and set the standard for quality in everything we do.

Audit & Assurance continued its commitment to delivering high-quality audits with integrity and professionalism and upholding Deloitte's vital role in the effective functioning of the capital markets. Our practitioners have supported organizations in navigating the changing landscape of stakeholder needs for more holistic reporting on their business model resilience and broader societal objectives. We delivered a broad range of environmental, social, and governance (ESG) services, including materiality and gap readiness assessment, disclosure preparation, and assurance. We have been recognized for our leading-edge technology and innovative culture, with Deloitte Omnia's ESG capabilities receiving recognition as a data-fueled solution that helps us transform ESG information into insights for clients and deliver with greater quality, effectiveness, efficiency, and perspective. Audit & Assurance revenue grew 13.8% in local currency.
Consulting made bold investments in digital capabilities over the past year, enabling our practitioners to help clients address the challenges and opportunities raised by disruptive technologies such as generative AI, 5G, quantum computing, and the metaverse. We launched Unlimited Reality to guide clients into the era of spatial computing, creating their own metaverse solutions to simulate the future of business, as well as a Generative AI practice to help them to exponentially enhance productivity and accelerate the pace of business innovation. Additionally, Deloitte has been ranked the number one consulting service provider worldwide by revenue, for the sixth consecutive year, in the Gartner Market Share report. Consulting revenue grew 19.1% in local currency.
Financial Advisory practitioners served as trusted advisors to clients, creating and preserving value in a complex and constantly changing environment. Our Mergers and Acquisitions practice continued to grow despite market volatility, and our Turnaround and Restructuring specialists helped companies navigate banking industry turbulence. Our Forensic practice pioneered digital and AI solutions with public and private sector organizations, addressing financial crime and navigating fraud, waste, and abuse. We have advised clients on strategies to drive sustainability and climate solutions, model net-zero transformations, and strengthen stakeholder trust. Financial Advisory revenue grew 4.7% in local currency.
Risk Advisory continued to drive transformative change for clients, focused on solutions to address the ever-evolving global risk and regulatory landscape. Our Cyber business employs leading-edge technology to help clients protect against, and respond to, an array of cyber risks, while also building business strategies that embed cyber and enable businesses to stay ahead of those risks. With our latest Cyber offerings—Managed Extended Detection and Response and Digital Identity—we bring together experienced practitioners, processes, and market-leading technology to embed 24/7 vigilance globally for clients. Our Sustainability & Climate offering gives practitioners access to leading-edge technology and smart business solutions while helping enable organizations to succeed in a low-carbon, climate-resilient world. Risk Advisory revenue grew 17.5% in local currency.
Tax continued to support clients with their increasingly complex tax compliance obligations, while helping them to understand and navigate the impact of the rapidly shifting regulatory, geopolitical, and economic landscape. Among these complex shifts, the Organization for Economic Co-operation and Development's (OECD) proposed Pillar Two rules to address the digital economy and the digitalization of tax authorities are driving demand for a range of advisory, compliance, and technology consulting services from multinationals. Our practitioners also supported clients with the transformation of tax operating models, including the need for data quality and access, and helped them anticipate the jurisdictional tax implications of M&A activity, supply chain reconfigurations, and other important business change events.

Legal helped clients navigate the pace of regulatory change, which has resulted in more complex legal issues, along with the pronounced impact of digitization on legal solutions across their organizations. Deloitte's Legal practice also continued to work with clients on workforce policies to accommodate the now permanent reality of remote and hybrid working and to navigate employment laws that could affect employees' rights and well-being.

Tax & Legal revenue grew 9.1% in local currency.

Grounded in our values, supporting our people

From equity in education and health, to inclusion at work, to meeting urgent needs related to humanitarian crises, we actively engage in addressing and creating solutions to the most pressing challenges facing society. These challenges are deeply human, impact billions of people, and require long-term, transformative system solutions. They cannot be solved by any single individual or organization. Deloitte's approach is to help lead the way and inspire powerful collaborations that enable our people to work with clients and communities on shared solutions.

Strengthening society

Over the past year, we have invested our know-how and resources, including our people's time through pro bono work and volunteering, to tackle systemic problems in communities around the world. To further scale and accelerate these efforts, Deloitte also made a worldwide commitment to invest more than $3 billion over the next 10 years in societal impact.

WorldClimate: Our environmental sustainability ambition, WorldClimate, consists of a two-pronged approach: actions we take and actions we inspire. Recognizing that collective action is required to effectively tackle the climate crisis, and building on our sustainability and climate practice to serve clients, Deloitte has committed to science-based 2030 greenhouse gas reduction targets and to setting long-term targets as part of our journey to net-zero. We are also extending our impact beyond ourselves by empowering our people, influencing our suppliers, and engaging across the broader ecosystem. We are embedding sustainability into policies and practices throughout our organization and measuring performance against our goals. For instance, we are actively working with our supply chain on setting science-based greenhouse gas reduction targets.
WorldClass: Our WorldClass  ambition is to impact 100 million futures by 2030 through programs and collaborations with leading education and skills building organizations, working with clients, governments, innovators, schools, universities, and nonprofit organizations around the world. We invest our people's time, provide volunteers, and donate funds to support millions of students, teachers, and education leaders worldwide. We are scaling solutions that have helped to propel more than 57 million individuals forward since 2017. For examples of Deloitte's impact, our original documentary series features four young adults from different continents sharing their stories and aspirations for the future.
Helping those impacted by conflict and humanitarian crises: During the past year, we were reminded of the collective impact we can make when our people around the world come together in common cause, providing help to our colleagues and those impacted by humanitarian crises. As the war in Ukraine continues, Deloitte and our people have demonstrated unwavering solidarity and support for Ukrainians, including providing financial donations, pro bono services, and volunteer work. In response to the earthquake in Turkey and Syria, funding from Deloitte, along with other donors, has helped address critical immediate needs for first aid, shelter, food, and financial assistance.
Deloitte Health Equity Institutes (DHEIs): During the past year, we launched DHEIs in Europe and Spanish Latin America to complement our established DHEIs in Africa, India, and the US. Each of the DHEIs advances an array of cross-sector collaborations, philanthropic investments, and research activities. In addition, Deloitte is honored to be a signatory of the Zero Health Gaps Pledge, the first global, multi-sector, CEO-level pledge to help advance health equity, which was launched by the Global Health Equity Network at the 2023 World Economic Forum Annual Meeting in Davos.

Supporting our people

Deloitte is also focused on supporting and developing our 457,000 people around the world, including continuing to provide career opportunities, resources, and an inclusive culture to help our people thrive.

Learning & Development (L&D): With market realities and client needs changing rapidly, driven largely by advances in AI and other technologies, L&D is key. We continue to evolve our approach, with a focus on promoting agility, strengthening capabilities around critical challenges facing clients and our global society, and delivering tech-focused upskilling and reskilling that rides the wave of innovation sweeping across so many aspects of life. This includes skills training around AI, cloud, cyber, and ESG, as well as "hiring to train" programs in which future Deloitte professionals earn the credentials and on-the-job experiences they need to succeed in future roles. We have continued to expand our investment in the global footprint of our Deloitte University Leadership Centers around the world. Since opening the Westlake, Texas location in 2011, we've launched five additional facilities around the world: Brussels, Hyderabad, Mexico City, Singapore, and Toronto and have new sites under construction in Beijing and Paris. In 2023 we also broke ground on a significant expansion of the original facility in Texas.
Diversity, equity, and inclusion (DEI): Through our global DEI strategy, we seek to provide a workplace culture founded on respect and characterized by inclusive behaviors and an appreciation for all forms of diversity. Our global strategy is built around core pillars, which were recently expanded to include disability inclusion and neurodiversity. Aligned to these pillars, this year we became a proud signatory of the International Labour Organization's Global Business and Disability Network Charter.
Mental health and well-being: We believe that supporting mental health and well-being is critical to attracting and retaining the best people and helping them be their authentic and productive selves today and into the future. In January 2021 we introduced a mental health baseline that sets clear expectations around mental health at Deloitte in every country in which we operate. As of March 2023, all Deloitte member firms had successfully met the baseline. We are proud to be a Founding Partner of the Global Business Collaboration for Better Workplace Mental Health, a global business-led initiative designed to advocate for and accelerate positive change for mental health in the workplace.

Note: Deloitte's 2023 Global Impact Report will be released later this year.

About Deloitte

"Deloitte," "us," "we" and "our" refer to one or more of Deloitte Touche Tohmatsu Limited ("DTTL"), its global network of member firms, and their related entities (collectively, the "Deloitte organization"). DTTL (also referred to as "Deloitte Global") and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.

Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society, and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte's approximately 457,000 people worldwide make an impact that matters at www.deloitte.com.

About Deloitte Legal

Deloitte Legal means the legal practices of DTTL member firms, their affiliates or their related entities that provide legal services. The exact nature of these relationships and provision of legal services differs by jurisdiction, to allow compliance with local laws and professional regulations. For legal, regulatory, and other reasons, not all member firms, their affiliates or their related entities provide legal services or are associated with Deloitte Legal practices.

SOURCE Deloitte