Group 1 - Genpact reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and up from $0.82 per share a year ago, representing an earnings surprise of 5.81% [1] - The company posted revenues of $1.25 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.70%, and an increase from $1.15 billion year-over-year [2] - Genpact has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - The stock has gained approximately 15% since the beginning of the year, significantly outperforming the S&P 500's gain of 3.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $1.2 billion, and for the current fiscal year, it is $3.45 on revenues of $5.06 billion [7] Group 3 - The Outsourcing industry, to which Genpact belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Genpact is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Revenue in Q4 reached $1,250 million, up 9% year over year [6][20] - Annual revenue grew 6.5% to $4,770 million, approximately 400 basis points above initial guidance [8][24] - Adjusted diluted EPS grew 10% year over year, reaching a record of $3.28 [8][25] - Operating cash flow grew 25% year over year, totaling $615 million [8][25] Business Line Data and Key Metrics Changes - DataTech AI revenue increased 12% year over year, contributing $595 million, representing 48% of total quarterly revenue [6][20] - Digital operations revenue grew 6% year over year to $654 million, accounting for 52% of total revenue [20] - Revenue from priority accounts grew approximately 9% year over year, contributing to 64% of fourth quarter revenue [20] Market Data and Key Metrics Changes - Consumer and Healthcare revenue increased 11%, High-tech and Manufacturing increased 9%, and Financial Services increased 6% [21] - Annual bookings increased 15% to $5,700 million, with 14 large deals closed [23] Company Strategy and Development Direction - The company is focusing on innovation, particularly in DataTech AI and digital operations, with plans to launch more agentic solutions [9][10] - A strategic relationship with Otis and NTT DATA aims to enhance operational efficiency through AI technologies [13] - The company is expanding its footprint in the startup ecosystem, focusing on next-generation AI orchestration [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum entering 2025, with a revenue guidance of 6.5% growth at the midpoint [17] - The company anticipates gross margin expansion to 36% and adjusted diluted EPS growth of 9% year over year [28] - Management highlighted the importance of innovation and agility in execution as key focuses for 2025 [55] Other Important Information - The company ended 2024 with $648 million in cash and cash equivalents, up from $584 million in the previous year [26] - A $500 million increase to the existing share repurchase authorization was approved [28] Q&A Session Summary Question: Guidance on DataTech AI and digital operations - Management indicated that approximately 75% of the business is annuitized, providing good visibility, while the remaining 25% is less predictable [34][35] Question: Increase in contract sizes related to GenAI solutions - Management noted that implementing GenAI solutions has led to follow-on conversations and contracts, enhancing the total addressable market [36] Question: Hiring pace associated with AgenTek Solutions - Management stated that there is a need for more data technology and AI skills, with a focus on retraining current staff [39][40] Question: Impact of GenAI on trust and safety business - Management clarified that content moderation represents less than 10% of revenue and does not foresee significant threats from policy changes [46] Question: Generative AI funding sources - Management observed that spending on generative AI solutions has been more of a shift of dollars rather than net new incremental dollars [72]

Financial Performance - 2024 net revenues were $4.77 billion, up 6.5% year-over-year, and 6.7% on a constant currency basis[5] - Data-Tech-AI net revenues were $2.23 billion, up 6.9% year-over-year, representing 47% of total revenue[5] - Digital Operations net revenues were $2.53 billion, up 6.1% year-over-year, representing 53% of total revenue[5] - Total net revenues for the year ended December 31, 2023, increased to $4,476,888, representing a growth of 2.4% compared to $4,371,172 in 2022[22] - Net income for the year ended December 31, 2023, was $631,255, a significant increase of 78.5% compared to $353,404 in 2022[22] - Earnings per common share for the year ended December 31, 2023, rose to $3.46, compared to $1.92 in 2022, indicating strong profitability growth[22] - The company expects net income for 2024 to be $513,670, a decrease of 18.6% compared to 2023[24] Earnings and EPS - Adjusted diluted EPS was $3.28, up 10% year-over-year, while diluted EPS was $2.85, down 16% year-over-year[9] - Adjusted diluted EPS for 2025 is expected to be in the range of $3.52 to $3.59[10] - Diluted EPS for Q4 2023 was $1.59, with an adjusted diluted EPS of $0.82, indicating a decrease from the previous year's $3.41 and $2.98[36] - For the year ending December 31, 2025, the estimated diluted EPS is projected to be between $3.04 and $3.11, with an adjusted diluted EPS forecasted between $3.52 and $3.59[40] Operational Efficiency - Cash generated from operations was $615 million, up 25% year-over-year[9] - Operating income for the year ended December 31, 2023, was $630,857, up from $502,151 in 2022, showing operational efficiency[22] - Adjusted income from operations for 2023 was $762,938, with an adjusted income from operations margin of 17.0%[33] - The adjusted income from operations for the year 2024 is expected to increase to $813,936,000, up from $762,938,000 in 2023[34] - Income from operations for Q4 2023 was $162,732,000, with an adjusted income from operations of $202,992,000, reflecting a margin of 14.2% and 17.7% respectively[34] Cash Flow and Liquidity - Total current liabilities decreased from $1,317,932 in 2023 to $963,739 in 2024, indicating improved liquidity[18] - Net cash provided by operating activities for 2023 was $490,812, compared to $443,670 in 2022, reflecting a growth of 10.4%[24] - Cash and cash equivalents increased from $583,670 as of December 31, 2023, to $648,246 as of December 31, 2024, enhancing the company's cash position[18] - Cash paid for interest in 2023 was $47,989, down from $51,147 in 2022, a decrease of 6.5%[24] Future Projections - For 2025, net revenues are projected to be in the range of $5.029 billion to $5.125 billion, representing year-over-year growth of approximately 5.5% to 7.5%[10] - Gross margin for 2025 is projected to be approximately 36.0%[10] - The company expects an adjusted income from operations margin of 17.3% for the year ending December 31, 2025, with a net income margin of 10.7%[37] - The company anticipates a net income margin of 10.1% for the quarter ending March 31, 2025[41] - The adjusted income from operations margin for the quarter ending March 31, 2025, is expected to be 16.5%[42] Dividends and Investments - The company declared a quarterly cash dividend of $0.17 per common share, an 11% increase[7] - The company plans to invest $55,421 in property, plant, and equipment in 2024, up from $50,614 in 2023[24] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[20] Stock-Based Compensation - Stock-based compensation expense for 2023 was $88,576, an increase from $77,373 in 2022[24] - The company reported stock-based compensation expenses of $24,726,000 for Q4 2023, which is projected to decrease to $19,107,000 in Q4 2024[34] - The estimated stock-based compensation expense for the year ending December 31, 2025, is projected at 1.6% of total income[38] Exchange Rate Impact - The effect of exchange rate changes resulted in a gain of $8,033 in 2023, compared to a loss of $88,368 in 2022[24]

Moves beyond generic AI models to domain-specific autonomous agent-led delivery   NEW YORK, Feb. 5, 2025 /PRNewswire/ -- Genpact (NYSE: G), a global advanced technology services and solutions company, today announced the launch of its Agentic Solutions as part of its pivot to reimagining delivery. Genpact's Service-as-Agentic-Solutions will accelerate innovation for enterprises by fundamentally changing the way services are delivered, enabling business operations to evolve from traditional, linear models to ...

Core Insights - Genpact has been recognized as a Horizon 3 Market Leader in the HFS Horizons: Generative Enterprise Services 2025 report, highlighting its ability to deliver value to enterprise clients adopting AI and advanced technologies [1][4] - The report emphasizes the importance of Agentic AI, Services-as-Software, and AI-driven ecosystems, which align with Genpact's strategy to drive innovation and outcomes for clients [2][4] Company Highlights - Genpact's AI Factory, recently announced as the Genpact AI Gigafactory, is designed to help enterprises rapidly scale AI solutions from pilot to full-scale production, showcasing its strong value proposition [3][4] - The company is positioned as a trusted leader in generative enterprise services, consistently delivering transformative outcomes through advanced AI capabilities and deep industry expertise [4] Market Evaluation - The HFS Horizons report evaluated 40 service providers based on their value propositions, execution, innovation, go-to-market strategies, and market impact, with Genpact standing out in these areas [4]

Unique combination of Genpact's deep industry expertise, proprietary Agentic Solutions and responsible AI framework drives accelerated AI-led transformation Aims to create pool of over 25,000 builders of AINEW YORK, Jan. 28, 2025 /PRNewswire/ -- Genpact (NYSE: G), a global advanced technology services and solutions company, today unveiled the Genpact AI Gigafactory -- a first-of-its-kind AI accelerator designed to help enterprises rapidly scale AI solutions from pilot to full-scale production. It addresses ...

NEW YORK, Jan. 13, 2025 /PRNewswire/ -- Genpact (NYSE: G) will report its financial results for the fourth quarter and full year ended December 31, 2024, after the close of the U.S. financial markets on Thursday, February 6, 2025. Following the release, Genpact's management team will host a conference call at 5:00 p.m. ET to discuss the company's performance.Participants are encouraged to register in advance to receive a dial-in number and unique PIN for seamless access. While early log-in is recommended, r ...

Group 1 - Genpact has entered a multi-year partnership with BJ's Wholesale Club to enhance agility and support growth plans [1][2] - The collaboration will focus on improving operations through strategic technology investments and optimized processes, with ServiceNow as the core platform [2][3] - BJ's aims to drive automation and innovation to enhance productivity while accessing top-tier talent and technology [3] Group 2 - Genpact is a global professional services firm with over 125,000 employees across more than 30 countries, specializing in digital operations and data-driven solutions [4]

Investment Philosophy - Success in equity markets comes from finding an investment approach that aligns with one's personality and analytical strengths [1] - Maintaining a significant portion of the portfolio in index funds while focusing active investments on carefully selected opportunities [1] - A practical, down-to-earth approach to investing, emphasizing straightforward value investing principles combined with industry expertise and patience [1] Market Focus and Strategy - Expertise lies in identifying value opportunities, particularly in small and mid-cap spaces where market inefficiencies are more common [1] - Focus on industry leaders in out-of-favor sectors, quality companies experiencing temporary setbacks, and businesses with strong balance sheets and robust cash generation [1] Analytical Approach - Focus on balance sheet strength from a credit perspective, near-term cash flow generation, next twelve-month earnings forecasts, and book value analysis (particularly for financial sector investments) [1] - Avoids reliance on complex and assumption-sensitive DCF models [1] Professional Background - Over 10 years of professional experience in financial sector consulting, specifically working with banks, insurance companies, and payment firms [1] - Specialized knowledge helps in identifying opportunities that others might overlook [1]

Stock Performance - Genpact Limited (G) stock gained 36 1% in the past six months outperforming the industry growth of 23 4% and the Zacks S&P 500 Composite rise of 7 1% [1] Financial Results - Third-quarter 2024 EPS of 85 cents surpassed the consensus estimate by 6 3% and grew 11 8% year over year [1] - Revenues of $1 21 billion beat the consensus mark by 2% and increased 6 6% from the year-ago quarter [1] Business Overview - Genpact is a dominant name in the Business Process Outsourcing services market offering industry-specific solutions in areas such as industrial IoT user experience supply chain management data engineering and more [2] - The company integrates process analytics and digital technologies with domain expertise to win customers regularly [3] Growth Strategies - Customer base expansion tight cost control strategic buyouts and aggressive share repurchase are expected to fuel long-term growth [3] - AI presents a significant growth opportunity with the company's Digital Smart Enterprise Processes (Digital SEPs) enhancing client performance using AI Lean Six Sigma and experience-centric principles [4] - Buyouts like Rage Framework and Tandem Seven have expanded Genpact's AI product portfolio [5] - Genpact Cora is an automation to AI-based platform combining proprietary automation analytics and AI technologies to boost clients' digital transformations [5] Shareholder Value - The company repurchased shares worth $298 2 million $214 1 million and $225 4 million in 2021 2022 and 2023 respectively [6] - Dividends paid to shareholders were $80 5 million $91 8 million and $100 million in 2021 2022 and 2023 respectively [6] Financial Health - Genpact's current ratio at the end of third-quarter 2024 was 1 85 higher than the industry average of 1 08 indicating strong short-term liquidity [7] Industry Comparison - Genpact carries a Zacks Rank 2 (Buy) [10] - Other top-ranked stocks in the Zacks Business Services sector include AppLovin (APP) with a Zacks Rank of 1 (Strong Buy) and a long-term earnings growth expectation of 20% [10] - Climb Global Solutions (CLMB) also sports a Zacks Rank of 1 with a long-term earnings growth expectation of 16% [11]