Genpact(G) - 2024 Q3 - Quarterly Results

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]