Genpact Reports Full Year and Fourth Quarter 2023 Results

NEW YORK, Feb. 8, 2024

NEW YORK, Feb. 8, 2024 /PRNewswire/ -- Genpact Limited (NYSE: G), a global professional services firm focused on delivering outcomes that transform businesses, today announced financial results for the fourth quarter and full year ended December 31, 2023.

"We delivered total annual revenue of $4.5 billion in 2023, up 2% year-over-year. While the macroeconomic environment remains challenging, we have identified and begun to implement several key initiatives to improve execution. Looking ahead, 2024 will be a year of strengthening our foundation for future growth," said BK Kalra, President and CEO, Genpact. "As Genpact's new CEO, my top priority is to sharpen our focus and drive increased speed and accountability throughout the organization to reach our full potential."

Key Financial Highlights – Full Year 2023

• Total revenue was $4.48 billion, up 2% year-over-year (3% on a constant currency basis).^1,2   
• Revenue from Data-Tech-AI services was $1.99 billion, up 2% year-over-year, both on an as reported and constant currency basis,^1,2 representing 45% of total revenue.
• Revenue from Digital Operations services was $2.48 billion, up 3% year-over-year (4% on a constant currency basis),¹ representing 55% of total revenue.
• Net income was $631 million, up 79% year-over-year, including a non-recurring tax benefit of $170 million related to an intercompany transfer of intellectual property, with a corresponding margin of 14.1%.
• Income from operations was $631 million, up 26% year-over-year, with a corresponding margin of 14.1%.
• Adjusted income from operations was $763 million, up 6% year-over-year, with a corresponding margin of 17.0%.^5,6
• Diluted earnings per share was $3.41, up 81% year-over-year, including a non-recurring tax benefit of $170 million related to an intercompany transfer of intellectual property. Adjusted diluted earnings per share^4,5 was $2.98, up 9% year-over-year.
• New bookings were approximately $4.9 billion, up 26% year-over-year.⁷
• Cash generated from operations was $491 million, up 11% year-over-year.
• Genpact repurchased approximately 6 million of its common shares during the year for total consideration of approximately $225 million at an average price per share of $37.48.

1 Revenue growth on a constant currency basis is a non-GAAP measure and is calculated by restating current-period activity using the prior fiscal period's foreign currency exchange rates adjusted for hedging gains/losses in such period.
2 Total revenue and revenue from Data-Tech-AI services for the full year 2023 and full year 2022 include $0.5 million and $12 million of revenue, respectively, associated with a business classified as held for sale. ARIVA.DE Börsen-Geflüster Werbung Weiter abwärts? Kurzfristig positionieren in Genpact MB6BCE Ask: 0,86 Hebel: 5,34 mit moderatem Hebel Zum Produkt Morgan Stanley Den Basisprospekt sowie die Endgültigen Bedingungen und die Basisinformationsblätter erhalten Sie hier: MB6BCE,. Beachten Sie auch die weiteren Hinweise zu dieser Werbung. Der Emittent ist berechtigt, Wertpapiere mit open end-Laufzeit zu kündigen. Kurse Genpact 28,82 € -0,55%
3 Both on an as reported and constant currency basis.
4 Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of GAAP diluted earnings per share to adjusted diluted earnings per share is attached to this release. During the quarter ended December 31, 2023, we completed an intercompany transfer of certain intellectual property rights from non-US to US wholly-owned subsidiaries, which resulted in a non-recurring tax benefit of $170 million. Net income and diluted earnings per share for the quarter and full year ended December 31, 2023 included this benefit. This benefit is excluded from adjusted diluted earnings per share for the quarter and year ended December 31, 2023.
5 Income from operations and diluted earnings per share for the full year 2022 included a $39 million restructuring charge related to lease impairment charges and employee severance charges, as well as a $33 million impairment charge and a $25 million loss on the sale of a business previously classified as held for sale. These items were excluded from adjusted income from operations and adjusted diluted earnings per share for the full year 2022.
6 Adjusted income from operations and adjusted income from operations margin are non-GAAP measures. Reconciliations of each of GAAP income from operations and GAAP net income to adjusted income from operations and GAAP income from operations margin and GAAP net income margin to adjusted income from operations margin are attached to this release. Adjusted income from operations margin for the full year 2022 and full year 2023 was derived by adjusting total revenue to exclude $12 million and $0.5 million of revenue, respectively, associated with a business previously classified as held for sale.
7 New bookings, an operating measure, represents the total contract value of new contracts and certain renewals, extensions and changes to existing contracts.  Regular renewals of contracts with no change in scope are not counted as new bookings.

Key Financial Highlights – Fourth Quarter 2023

• Total revenue was $1.15 billion, up 4% year-over-year, both on an as reported and constant currency basis.^1,2   
• Revenue from Data-Tech-AI services was $507 million, up 3% year-over-year (2% on a constant currency basis),^1,2 representing 44% of total revenue.
• Revenue from Digital Operations services was $639 million, up 5% year-over-year (4% on a constant currency basis),¹ representing 56% of total revenue.
• Net income was $291 million, up 225% year-over-year, including a non-recurring tax benefit of $170 million related to an intercompany transfer of intellectual property, with a corresponding margin of 25.4%.
• Income from operations was $163 million, up 27% year-over-year, with a corresponding margin of 14.2%.
• Adjusted income from operations was $203 million, up 9% year-over-year, with a corresponding margin of 17.7%.^8,9
• Diluted earnings per share was $1.59, up 231% year-over-year, including a non-recurring tax benefit of $170 million related to an intercompany transfer of intellectual property. Adjusted diluted earnings per share⁴ was $0.82, up 17% year-over-year.
• Cash generated from operations was $192 million, compared to $230 million in the fourth quarter of 2022.
• Genpact repurchased approximately 2.2 million of its common shares during the quarter for total consideration of approximately $75 million at an average price per share of $34.27.

Capital Allocation

• Genpact's Board of Directors declared a quarterly cash dividend for the first quarter of 2024 of $0.1525 per common share, an 11% increase, payable on March 26, 2024 to shareholders of record as of the close of business on March 11, 2024. The newly approved quarterly dividend represents a planned annual dividend of $0.61 per common share, increased from $0.55 per common share in 2023. 

Outlook

Genpact's outlook for the full year 2024 is as follows:

• Total revenue in the range of $4.57 billion to $4.61 billion, representing year-over-year growth of approximately 2% to 3% as reported, or 2.1% to 3.1% on a constant currency basis.¹
  • Digital Operations services revenue growth of approximately 3% year-over-year and Data-Tech-AI services revenue growth of approximately 1.9% year-over-year at the midpoint of the range, as reported.
  • Digital Operations services revenue growth of approximately 3.1% year-over-year and Data-Tech-AI services revenue growth of approximately 2.1% year-over-year at the midpoint of the range, on a constant currency basis.¹
• Gross margin of approximately 35%.
• Adjusted income from operations margin¹⁰  of approximately 17%.
• Adjusted diluted EPS¹¹ in the range of $3.00 to $3.03.

Genpact's outlook for the first quarter of 2024 is as follows:

• Total revenue in the range of $1.108 billion to $1.114 billion, representing year-over-year growth of approximately 1.75% to 2.25% as reported, or 1.95% to 2.45% on a constant currency basis.¹
  • Digital Operations services revenue growth of approximately 2.8% year-over-year and Data-Tech-AI services revenue growth of approximately 1.0% year-over-year at the midpoint of the range, as reported.
  • Digital Operations services revenue growth of approximately 3.0% year-over-year and Data-Tech-AI services revenue growth of approximately 1.3% year-over-year at the midpoint of the range, on a constant currency basis.¹
• Gross margin of approximately 34.5%.
• Adjusted income from operations margin¹⁰ of approximately 16%.

Our outlook for the first quarter and full year 2024 reflects foreign currency exchange rates as of February 7, 2024.

Conference Call to Discuss Financial Results

Genpact's management will host an hour-long conference call beginning at 5:00 p.m. ET on February 8, 2024 to discuss the company's performance for the fourth quarter and full year ended December 31, 2023. Those who wish to participate can register here to receive a dial-in number and unique PIN to access the call seamlessly. It is recommended callers join 10 minutes prior to the start of the event (although you may register and dial in at any time during the call).  A live webcast of the call will also be made available on the Genpact Investor Relations website at https://www.genpact.com/investors. For those who cannot join the call live, a replay will be archived on the Genpact website after the end of the call. A transcript of the call will also be made available on the website.

About Genpact

Genpact (NYSE: G) is a global professional services firm delivering the outcomes that transform our clients' businesses and shape their future. We're guided by our real-world experience redesigning and running thousands of processes for hundreds of global companies. Our clients – including many in the Global Fortune 500 – partner with us for our unique ability to combine deep industry and functional expertise, leading talent, and proven methodologies to drive collaborative innovation that turns insights into action and delivers outcomes at scale. We create lasting competitive advantages for our clients and their customers, running digitally enabled operations and applying our Data-Tech-AI services to design, build, and transform their businesses. And we do it all with purpose. From New York to New Delhi and more than 30 countries in between, our 125,000+ team is passionate in its relentless pursuit of a world that works better for people.

Safe Harbor

This press release contains certain statements concerning our future growth prospects, including our outlook for 2024, financial results and other forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in such forward-looking statements. These risks, uncertainties, and other factors include but are not limited to general economic conditions, any deterioration in the global economic environment and its impact on our clients, technological innovation, including AI technology and future uses of generative AI and large language models, and our ability to invest in new technologies and adapt to industry developments at sufficient speed and scale, our ability to effectively price our services and maintain pricing and employee utilization rates, general inflationary pressures and our ability to share increased costs with our clients, wage increases in locations in which we have operations, our ability to attract and retain skilled professionals, our ability to protect our and our clients' data from security incidents or cyberattacks, the economic and other impacts of geopolitical conflicts and any related sanctions and other measures that have been or may be implemented or imposed in response thereto, as well as any potential expansion or escalation of existing conflicts or economic disruption beyond their current scope, a slowdown in the economies and sectors in which our clients operate, a slowdown in the business process outsourcing or information technology services sectors, our ability to develop and successfully execute our business strategies, the risks and uncertainties arising from our past and future acquisitions, our ability to convert bookings to revenues, our ability to manage growth, factors which may impact our cost advantage, changes in tax rates and tax legislation and other laws and regulations, our ability to effectively execute our tax planning strategies, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, political, economic or business conditions in countries in which we operate, as well as other risks detailed in our reports filed with the U.S. Securities and Exchange Commission, including Genpact's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings are available at www.sec.gov. Genpact may from time to time make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. Although Genpact believes that these forward-looking statements are based on reasonable assumptions, you are cautioned not to put undue reliance on these forward-looking statements, which reflect management's current analysis of future events and should not be relied upon as representing management's expectations or beliefs as of any date subsequent to the time they are made. Genpact undertakes no obligation to update any forward-looking statements that may be made from time to time by or on behalf of Genpact.

Contacts

GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data and share count)
		As of December 31, 2022		As of December 31, 2023
Assets
Current assets
Cash and cash equivalents		$                           646,765		$                             583,670
Accounts receivable, net of allowance for credit losses of $20,442 and $18,278 as of December 31, 2022 and 2023, respectively		994,755		1,116,273
Prepaid expenses and other current assets		137,972		191,566
Total current assets		$                        1,779,492		$                          1,891,509
Property, plant and equipment, net		180,758		189,803
Operating lease right-of-use assets		198,366		186,167
Deferred tax assets		135,483		298,921
Intangible assets, net		89,715		53,028
Goodwill		1,684,196		1,683,782
Contract cost assets		216,670		202,543
Other assets, net of allowance for credit losses of $3,198 and $4,096 as of December 31, 2022 and December 31, 2023, respectively		304,134		299,960
Total assets		$                        4,588,814		$                          4,805,713
Liabilities and equity
Current liabilities
Short-term borrowings		$                           151,000		$                               10,000
Current portion of long-term debt		26,136		432,242
Accounts payable		35,809		27,739
Income taxes payable		45,306		38,458
Accrued expenses and other current liabilities		791,007 Werbung Mehr Nachrichten zur Genpact Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 04:25 - PR Newswire Mid Wynd International Investment Trust Plc - Total Voting Rights 02:00 - PR Newswire Bank of America Corp. - Notification of Filing of Documents 30.04.24 - ARIVA.DE Redaktion Verhaltene Kauflaune bei Siemens-Aktie (178,00 €) Paukenschlag in USA    Cannabis-Neuregulierung durch DEA sorgt für Kursexplosion! weiterlesen» Anzeige wo-site-teaser-box-16809_site-teaser-box_2024-05-01_09%253A00%253A00_2024-05-02_09%253A00%253A59