Genpact(US:G)2024-05-09 20:08Revenue Performance - Total revenue for Q1 2024 was $1.13 billion, up 4% year-over-year, with Data-Tech-AI revenue at $524 million (46% of total revenue) and Digital Operations revenue at $607 million (54% of total revenue)[1][3] - Net revenues increased to $1,131.2 million in Q1 2024, up from $1,089.3 million in Q1 2023, representing a growth of 3.8%[16] - Full-year 2024 revenue guidance updated to $4.59 billion to $4.63 billion, representing year-over-year growth of 2.5% to 3.5% as reported, or 2.7% to 3.7% on a constant currency basis[4] - Q2 2024 revenue guidance is $1.143 billion to $1.148 billion, representing year-over-year growth of 3.4% to 3.8% as reported, or 3.6% to 4.0% on a constant currency basis[4] - Digital Operations revenue growth for Q2 2024 is expected to be 5.4% year-over-year as reported, while Data-Tech-AI revenue growth is expected to be 1.6% year-over-year as reported[4] - Revenue growth is reported on a constant currency basis to exclude foreign exchange rate fluctuations, aiding in period-to-period comparisons[21] Earnings and Profitability - Diluted EPS for Q1 2024 was $0.64, up 12% year-over-year, while adjusted diluted EPS was $0.73, up 7% year-over-year[1][3] - Gross profit for Q1 2024 was $396 million, up 7% year-over-year, with a gross margin of 35.0%[3] - Net income for Q1 2024 was $117 million, up 10% year-over-year, with a net income margin of 10.3%[3] - Gross profit rose to $396.5 million in Q1 2024, compared to $370.2 million in Q1 2023, reflecting a 7.1% increase[16] - Net income grew to $116.9 million in Q1 2024, up from $106.1 million in Q1 2023, a 10.2% increase[16] - Diluted earnings per share increased to $0.64 in Q1 2024 from $0.57 in Q1 2023, a 12.3% rise[16] - Adjusted diluted EPS for full-year 2024 is expected to be in the range of $3.01 to $3.04, up from the prior range of $3.00 to $3.03[4] - Adjusted diluted EPS for Q1 2023 was $0.68, increasing to $0.73 in Q1 2024, with adjustments for stock-based compensation and amortization of intangible assets[26] - Net income margin improved from 9.7% in Q1 2023 to 10.3% in Q1 2024[24] - The company expects adjusted diluted EPS to range between $3.01 and $3.04 for the year ending December 31, 2024[30] Cash Flow and Financial Position - Total assets decreased slightly to $4,740.6 million as of March 31, 2024, from $4,805.7 million as of December 31, 2023[14] - Cash and cash equivalents declined to $478.4 million as of March 31, 2024, from $583.7 million as of December 31, 2023, a decrease of 18.0%[14] - Short-term borrowings increased to $50.0 million as of March 31, 2024, from $10.0 million as of December 31, 2023, a significant rise[14] - Net cash used for operating activities was $25.6 million in Q1 2024, compared to $34.1 million in Q1 2023, a 24.9% improvement[17] - Net cash used for investing activities was $24.7 million in Q1 2024, down from $33.6 million in Q1 2023, a 26.5% decrease[17] - Net cash used for financing activities was $48.2 million in Q1 2024, compared to $41.2 million in Q1 2023, a 17.0% increase[17] Share Repurchase and Divestiture - Genpact repurchased approximately 865,000 common shares during Q1 2024 for a total consideration of $30 million at an average price of $34.67 per share[3] - Genpact completed the divestiture of a non-strategic business in Q1 2023, recording a loss on the sale, and classified related revenues and expenses as held for sale from April 1, 2022[20] Operational Efficiency and Margins - Adjusted income from operations margin was 16.4% in Q1 2023, slightly decreasing to 16.1% in Q1 2024[24] - Genpact forecasts an adjusted income from operations margin of 17.0% for the year ending December 31, 2024[28] - For Q2 2024, Genpact projects an adjusted income from operations margin of 16.5%[32] Expense Management - Stock-based compensation expense was $19.7 million in Q1 2023, decreasing to $9.2 million in Q1 2024[24] - Amortization and impairment of acquired intangible assets were $8.1 million in Q1 2023, reducing to $6.9 million in Q1 2024[24] Revenue Classification Update - Genpact updated its revenue classification for Digital Operations and Data-Tech-AI to more accurately reflect the nature and delivery of services, impacting historical revenue breakdowns[3][6][7]