Financial Performance - Total revenue for Q3 2024 was $1.21 billion, up 7% year-over-year, with a gross profit of $431 million and a margin of 35.6%[1][3][4] - Net income increased to $133 million, up 13% year-over-year, with an operating income of $182 million and a margin of 15%[4] - Adjusted diluted EPS for Q3 2024 was $0.85, up 12% year-over-year, while diluted EPS was $0.74, up 16% year-over-year[1][4] - Net revenues for the three months ended September 30, 2024, were $1,210,949 thousand, an increase from $1,135,792 thousand for the same period in 2023, representing a growth of approximately 6.6%[16] - Net income for the nine months ended September 30, 2024, was $371,755 thousand, compared to $339,946 thousand for the same period in 2023, reflecting an increase of about 9.3%[17] - Adjusted diluted earnings per share for the nine months ended September 30, 2024, was $2.06, up from $1.83 for the same period in 2023, indicating a growth of approximately 12.6%[16] - Net income for the three months ended September 30, 2023, was $117,593 thousand, increasing to $132,818 thousand for the same period in 2024, representing a growth of 10.5%[25] - Diluted EPS for the three months ended September 30, 2023, was $0.64, increasing to $0.74 in 2024, a growth of 15.6%[28] Revenue Breakdown - Data-Tech-AI revenue reached $569 million, representing 47% of total revenue and growing 9% year-over-year, while Digital Operations revenue was $642 million, accounting for 53% of total revenue and growing 5% year-over-year[3][4] - Digital Operations revenue growth for the full year is projected at approximately 5.9%, while Data-Tech-AI revenue growth is expected to be around 6.2%[8][9] Cash Flow and Investments - Cash flow from operations improved to $228 million, up from $162 million in Q3 2023[4] - Operating cash flow for the nine months ended September 30, 2024, was $412,177 thousand, compared to $298,906 thousand for the same period in 2023, marking an increase of about 38%[17] - Cash and cash equivalents at the end of the period on September 30, 2024, were $1,022,647 thousand, significantly up from $541,004 thousand at the end of the same period in 2023, representing an increase of approximately 88.9%[17] - The company’s net cash used for investing activities for the nine months ended September 30, 2024, was $(64,708) thousand, compared to $(60,070) thousand for the same period in 2023[17] Guidance and Projections - Genpact expects total revenue for Q4 2024 to be in the range of $1.222 billion to $1.233 billion, representing year-over-year growth of approximately 6.6% to 7.6%[7] - The updated full-year 2024 revenue guidance is between $4.740 billion and $4.751 billion, reflecting a growth of approximately 5.9% to 6.1% year-over-year[8][9] - The company projects a net income margin of 10.6% for the year ending December 31, 2024[29] - The estimated adjusted income from operations margin for the year ending December 31, 2024, is expected to be 17.1%[30] - For the quarter ending December 31, 2024, the projected net income margin is 10.7%[32] - The estimated adjusted diluted EPS for the year ending December 31, 2024, is projected to be between $3.23 and $3.24[31] Expenses and Other Financial Metrics - Selling, general and administrative expenses for the three months ended September 30, 2024, were $243,315 thousand, up from $229,731 thousand for the same period in 2023, reflecting an increase of approximately 5.9%[16] - The company reported a foreign exchange gain of $4,424 thousand for the three months ended September 30, 2024, compared to a gain of $2,975 thousand for the same period in 2023, showing an increase of about 48.8%[16] - The company incurred a loss on the sale of a business classified as held for sale amounting to $802 thousand during the nine months ended September 30, 2023[17] - The company’s total operating expenses for the nine months ended September 30, 2024, were $717,988 thousand, compared to $675,642 thousand for the same period in 2023, indicating an increase of approximately 6.3%[16] - The company reported stock-based compensation expense of $22,314 thousand for Q3 2023, decreasing to $19,726 thousand in Q3 2024[25] Strategic Initiatives - The company aims to leverage generative AI and advanced technologies to enhance client value moving forward[2] - Genpact repurchased approximately 1.9 million common shares for a total consideration of about $75 million at an average price of $38.72 per share[5]

Core Insights - Genpact Limited reported total revenue of $1.21 billion for Q3 2024, reflecting a 7% year-over-year increase, consistent in both reported and constant currency terms [3][4] - The company achieved a diluted EPS of $0.74, up 16% year-over-year, and an adjusted diluted EPS of $0.85, up 12% year-over-year [3][4] - Genpact's CEO highlighted strong revenue growth driven by client trust in innovation across Data, Tech, and AI, leading to an updated revenue growth guidance of 6% for 2024, up from 2% in the previous year [2][4] Financial Performance - Total revenue for Q3 2024 was $1.21 billion, with Data-Tech-AI revenue at $569 million (up 9%) and Digital Operations revenue at $642 million (up 5%) [3][4] - Gross profit reached $431 million, with a margin of 35.6%, while net income was $133 million, reflecting a 13% increase year-over-year [3][4] - Cash flow from operations improved to $228 million, up from $162 million in Q3 2023 [3] Outlook - For Q4 2024, Genpact expects total revenue between $1.222 billion and $1.233 billion, indicating a year-over-year growth of approximately 6.6% to 7.6% [4] - The full-year 2024 revenue guidance has been updated to a range of $4.740 billion to $4.751 billion, representing a growth of approximately 5.9% to 6.1% [4] - The company anticipates adjusted diluted EPS in the range of $3.23 to $3.24 for the full year, an increase from the previous range of $3.14 to $3.18 [4]

Core Insights - Genpact has achieved the AWS Generative AI Competency in Consulting Services, highlighting its expertise in implementing generative AI at scale for clients [1][3] - As an AWS Premier Tier Services Partner, Genpact enhances its offerings in AI, data, analytics, and machine learning, positioning itself for enterprise-wide AI transformation [1][3] - The firm provides end-to-end generative AI consulting services, enabling organizations to accelerate AI adoption and improve operational efficiency [3][4] Company Overview - Genpact is a global professional services and solutions firm with over 125,000 employees across more than 30 countries, focusing on creating lasting value for clients [5] - The company serves leading enterprises, including Fortune Global 500 companies, leveraging its deep business knowledge and expertise in digital operations, data, technology, and AI [5]

Core Insights - Genpact has been awarded the Celonis "Best Use Case Ideation" for its sustainable supply chain solution aimed at reducing waste and improving efficiency in manufacturing processes [1][3]. Group 1: Solution Overview - The solution, developed in partnership with Celonis, allows clients to transition from disposable packaging to reusable alternatives, effectively minimizing waste and enhancing operational efficiency [2]. - It addresses four phases of the reusable asset lifecycle: planning with real-time insights, tracking asset locations, coordinating data across complex supply chains, and streamlining reverse logistics for pickup requests [3]. Group 2: Industry Context - The current demand in supply chains is for sustainable, agile, and efficient solutions that address waste and optimize operations across diverse ecosystems [3]. - Genpact's use of the Celonis Process Intelligence platform exemplifies its commitment to creating environmental and operational value through advanced technology solutions [3][4]. Group 3: Recognition and Collaboration - Genpact was selected as a top-six finalist from 115 entries in the Celonis Ecosystem Hackathon and won the award at Celosphere 2024 in Munich, Germany [3]. - The collaboration with Celonis is part of the Celostone program, which aims to enhance sustainability measurement, improvement, and reporting across businesses [4].

Core Viewpoint - Genpact is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended September 2024, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on November 7, with a consensus EPS estimate of $0.80 per share, reflecting a year-over-year change of +5.3%. Revenues are projected to be $1.19 billion, an increase of 4.5% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 0.54% lower over the last 30 days, indicating a reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Genpact is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.04%, suggesting a bullish sentiment among analysts [10]. Historical Performance - Genpact has a history of exceeding consensus EPS estimates, having beaten expectations in the last four quarters, including a surprise of +8.22% in the most recent quarter [11][12]. Investment Considerations - While Genpact is viewed as a strong candidate for an earnings beat, investors are advised to consider other factors that may influence stock performance beyond just earnings results [15].

Core Insights - Genpact has been recognized as a Leader for the thirteenth consecutive year in the 2024 Everest Group Finance and Accounting Outsourcing (FAO) PEAK Matrix® Assessment, highlighting its expertise in finance and accounting and innovative use of data, technology, and AI [1][2] Group 1: Company Achievements - Genpact's ongoing investment in advanced technologies enables enterprise clients to innovate and leverage data and AI for business value [2][3] - The company has strengthened its capabilities in enterprise risk management and financial planning and analysis (FP&A), enhancing its transformation advisory services [3] - Genpact's Leader ranking is attributed to its ability to combine F&A expertise with technology and AI to deliver tailored solutions [3] Group 2: Service Offerings - Genpact offers industry-specific solutions with embedded consulting capabilities, focusing on F&A and digital transformation services [3] - The company integrates Enterprise Risk and Compliance (ERC) services with F&A, providing comprehensive solutions such as controls transformation and regulatory compliance [4] - Genpact has launched a generative AI Center of Excellence to co-create solutions with clients, focusing on anomaly detection and information summarization [4]

Core Industry Insights - The Zacks Outsourcing industry has experienced significant growth due to economic, technological, and business factors, including cost reduction, remote work, cybersecurity awareness, and trends in AI and ML [1][5][6] - Outsourcing involves delegating internal operations to external resources to enhance operational efficiency, primarily serving small and medium-sized enterprises [3][4] Market Demand and Trends - Strong market demand has been observed in the outsourcing industry, with revenues, income, and cash flows rising over the past year, benefiting many players to increase dividends [5] - The demand for business process outsourcing services remains high due to flexibility, lower costs, and improved service quality, while IT outsourcing is also robust, driven by a shortage of in-house engineering talent [6] - Increased public awareness of cybersecurity threats has led to a rising demand for outsourced cybersecurity services to mitigate risks and maintain compliance [7] - Innovations such as IoT, cloud computing, AI, and ML are reshaping the outsourcing sector, enhancing efficiency and competitiveness [8][9] Industry Performance - The Zacks Outsourcing industry has underperformed compared to the broader Zacks Business Services sector and the S&P 500, with a growth of 35.3% over the past year compared to 39.9% and 42.3% respectively [10][12] - The industry currently trades at a forward 12-month price-to-earnings (P/E) ratio of 25.2X, slightly above the S&P 500's 22.01X and the sector's 25.22X [13] Company Highlights - **Broadridge Financial Solutions**: Growth driven by improved segmental performances, particularly in Investor Communication Solutions and Global Technology and Operations, with a Zacks Rank 2 (Buy) [14][16] - **ExlService Holdings**: Revenue growth supported by a data and AI-led strategy, with strong performance in healthcare payment services and digital operations, also holding a Zacks Rank 2 [17][18] - **Genpact Ltd.**: Revenue growth driven by strong partnerships and a Data-Tech-AI approach, with a Zacks Rank 3 (Hold) [19][20][22]

Core Insights - Genpact has launched the Finance Data Hub, an AI-driven solution that enhances CFOs' access to reliable data, improving decision-making and operational efficiency [1][4] - The Finance Data Hub consolidates both structured and unstructured data into a single platform, enabling near-real-time access to clean and reliable data for advanced analytics [2][3] - The partnership with Databricks allows finance professionals to leverage AI and machine learning, optimizing performance and enhancing compliance with evolving regulations [3] Company Overview - Genpact is a global professional services firm with over 125,000 employees across more than 30 countries, focusing on delivering outcomes that shape the future [5] - The company specializes in end-to-end finance and accounting solutions, helping enterprises optimize operations and support strategic decision-making [3][5] - Genpact's commitment to innovation is exemplified by the Finance Data Hub, which aims to help finance leaders transform operations in a rapidly changing business environment [4]

Core Viewpoint - Genpact is positioned well for potential earnings beats in upcoming reports, supported by a strong history of surpassing earnings estimates [1][2]. Group 1: Earnings Performance - Genpact has consistently exceeded earnings estimates, averaging a 7.01% beat over the last two quarters [1]. - In the last reported quarter, Genpact achieved earnings of $0.79 per share, surpassing the Zacks Consensus Estimate of $0.73 per share by 8.22% [1]. - For the previous quarter, the company reported earnings of $0.73 per share against an expected $0.69, resulting in a surprise of 5.80% [1]. Group 2: Earnings Estimates and Predictions - Recent changes in earnings estimates for Genpact have been favorable, with a positive Zacks Earnings ESP indicating a strong likelihood of an earnings beat [2]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [2]. - Genpact currently has an Earnings ESP of +1.04%, reflecting increased analyst optimism regarding its near-term earnings potential [3]. Group 3: Upcoming Earnings Report - The next earnings report for Genpact is anticipated to be released on November 7, 2024 [3].

Event Overview - Genpact hosted its AI Day event on October 10, 2024, in New York City, bringing together clients, partners, and analysts to discuss advancements in generative AI, machine learning, data, and analytics [1] - The event, themed "The AI of Now," focused on turning AI innovation into direct business outcomes [2] Key Themes and Insights - The event agenda covered four key areas: the strategic value of AI in finance, AI-led value creation in client operations, the predictive supply chain, and fostering an AI-first mindset at Genpact [2] - Genpact demonstrated how combining domain knowledge, data, and AI can transform business processes and drive superior client value [2] - Industry experts highlighted Genpact's commitment to operational excellence and cutting-edge innovation, with real-world case studies showcasing AI in action [2] Industry and Company Context - Genpact is a global professional services firm with over 125,000 employees across 30+ countries, specializing in digital operations, data, technology, and AI [3] - The company serves leading enterprises, including Fortune Global 500 companies, leveraging its deep industry expertise and advanced technologies [3] - Genpact's AI Day provided insights into in-production AI use cases and the integration of advanced technologies with industry experience to support client growth [2]