NEW DELHI, November 9, 2024 — Genpact Limited, a global professional services and solutions firm delivering outcomes that shape the future, today announced financial results for the third quarter ended September 30, 2024.
“We delivered strong results again this quarter, with accelerating revenue growth, driven primarily by client trust in our ability to innovate across Data, Tech and AI. As a result, we are increasing guidance with 6% revenue growth now expected in 2024, up from 2% in the prior year with continued discipline driving adjusted EPS growth faster than revenue for the fourth year in a row,” said Balkrishan “BK” Kalra, Genpact’s President and CEO. “Our recent AI Day was another important milestone, bringing together more than 100 clients and partners to demonstrate our unique combination of data, domain, and advanced technologies, including AI. Moving forward, we will build on this strong foundation, leveraging gen AI and other advanced technologies to drive superior value for clients.”
Key Financial Highlights – Third Quarter 2024
• Total revenue was $1.21 billion, up 7% year-over-year, both on an as reported and constant currency basis.1
• Data-Tech-AI revenue was $569 million, up 9% year-over-year, both on an as reported and constant currency basis,1 representing 47% of total revenue.3
• Digital Operations revenue was $642 million, up 5% year-over-year, both on an as reported and constant currency basis,1 representing 53% of total revenue.3
• Gross profit was $431 million, up 7% year-over-year, with a corresponding margin of 35.6%.
• Net income was $133 million, up 13% year-over-year, with a corresponding margin of 11%.
• Income from operations was $182 million, up 10% year-over-year, with a corresponding margin of 15%.
• Adjusted income from operations was $213 million, up 9% year-over-year, with a corresponding margin of 17.6%.4
• Diluted earnings per share was $0.74, up 16% year-over-year.
• Adjusted diluted earnings per share2 was $0.85, up 12% year-over-year.
• Cash flow from operations was $228 million, up from $162 million in the third quarter of 2023.
• Genpact repurchased approximately 1.9 million common shares during the quarter for total consideration of approximately $75 million at an average price per share of $38.72.
Outlook
Genpact’s outlook for the fourth quarter of 2024 is as follows:
• Total revenue in the range of $1.222 billion to $1.233 billion, representing year-over-year growth of approximately 6.6% to 7.6% as reported, or 5.8% to 6.8% on a constant currency basis.1
◦ Digital Operations revenue growth of approximately 5.4% year-over-year and Data-Tech-AI revenue growth of approximately 9.0% year-over-year at the midpoint of the range, as reported.
◦ Digital Operations revenue growth of approximately 4.0% year-over-year and Data-Tech-AI revenue growth of approximately 9.0% year-over-year at the midpoint of the range, on a constant currency basis.1
• Gross margin of approximately 35.6%.
• Adjusted income from operations margin5 of approximately 17.6%.
Genpact’s updated outlook for the full year 2024 is as follows:
• Total revenue in the range of $4.740 billion to $4.751 billion, representing year-over-year growth of approximately 5.9% to 6.1% as reported, or 6.0% to 6.2% on a constant currency basis,1 up from the prior guidance of approximately 4.0% to 5.0% as reported.
◦ Digital Operations revenue growth of approximately 5.9% year-over-year and Data-Tech-AI revenue growth of approximately 6.2% year-over-year at the midpoint of the range, as reported, up from the previous midpoints of 5.2% and 3.8%, respectively.
◦ Digital Operations revenue growth of approximately 6.0% year-over-year and Data-Tech-AI revenue growth of approximately 6.2% year-over-year at the midpoint of the range, on a constant currency basis,1 up from the previous midpoints of 5.5% and 3.9%, respectively.
• Gross margin of approximately 35.4%, up from 35.3%.
• Adjusted income from operations margin5 of approximately 17.1%, up from 17.0%.
• Adjusted diluted EPS6 in the range of $3.23 to $3.24, up from the prior range of $3.14 to $3.18.
Third Quarter 2024 Earnings Call
Genpact’s management will host a conference call on November 7, 2024, at 5:00PM ET to discuss the company’s performance for the third quarter ended September 30, 2024. Participants are encouraged to register here to receive a dial-in number and unique PIN for seamless access. It is recommended to join 10 minutes before the call starts, although registration and dial-in will be available at any time. A live webcast will be available on the Genpact Investor Relations website. For those unable to attend the live call, an archived replay and transcript will be available on the website shortly after the call.