Genpact Reports Third Quarter 2024 Results

Genpact 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 1
• Data-Tech-AIrevenue was $569 million, up 9% year-over-year, both on an as reported and constant currency basis,1 representing 47% of total revenue.3
• DigitalOperations 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
• Grossprofit was $431 million, up 7% year-over-year, with a corresponding margin of6%.
• Netincome was $133 million, up 13% year-over-year, with a corresponding margin of 11%.
• Incomefrom operations was $182 million, up 10% year-over-year, with a corresponding margin of 15%.
• Adjustedincome from operations was $213 million, up 9% year-over-year, with a corresponding margin of 6%.4
• Dilutedearnings per share was $0.74, up 16% year-over-
• Adjusteddiluted earnings per share2 was $0.85, up 12% year-over-
• Cashflow from operations was $228 million, up from $162 million in the third quarter of
• Genpactrepurchased 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:

• Totalrevenue 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 revenuegrowth of approximately 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 revenuegrowth of approximately 0% year-over-year at the midpoint of the range, on a constant currency basis.1
• Grossmargin of approximately 6%.
• Adjustedincome from operations margin5 of approximately 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 approximately9% 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 revenuegrowth of approximately 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 revenuegrowth of approximately 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.
• Grossmargin of approximately 4%, up from 35.3%.
• Adjustedincome from operations margin5 of approximately 1%, up from 17.0%.
• Adjusteddiluted EPS6 in the range of $3.23 to $3.24, up from the prior range of $3.14 to $3.18.