Genpact(G) - 2024 Q4 - Annual Results

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]