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]

Financial Performance - Net revenues for Q2 2024 reached $1,176,212, a 6.4% increase from $1,105,524 in Q2 2023[13] - Gross profit for the first half of 2024 was $812,856, up 6.9% from $760,281 in the same period last year[13] - Net income for the six months ended June 30, 2024, was $238,937, reflecting a 7.5% increase compared to $222,353 in 2023[13] - The company reported a diluted earnings per share of $0.67 for Q2 2024, compared to $0.63 in Q2 2023, indicating a 6.3% increase[13] - Operating expenses for the first half of 2024 were $474,673, up from $445,911 in the same period last year, reflecting a 6.5% increase[13] - Cash provided by operating activities increased to $183,713,000 in 2024 from $137,382,000 in 2023, reflecting a growth of 33.8%[31] Assets and Liabilities - Total assets increased to $5,178,265 as of June 30, 2024, up from $4,805,713 at the end of 2023, representing a growth of 7.7%[10] - Total liabilities rose to $2,840,506 as of June 30, 2024, compared to $2,557,321 at the end of 2023, marking an increase of 11.1%[10] - The company’s retained earnings increased to $1,176,459 as of June 30, 2024, from $1,085,209 at the end of 2023, a rise of 8.4%[10] - Total equity as of June 30, 2024, was $2,337,759,000, up from $2,248,392,000 as of January 1, 2024, indicating a growth of 4.0%[28] Cash and Cash Equivalents - Cash and cash equivalents increased significantly to $914,171 as of June 30, 2024, from $583,670 at the end of 2023, a growth of 56.7%[10] - Cash and cash equivalents at the end of the period increased to $914,171,000 from $491,308,000, representing an increase of 86.1%[31] Dividends - The company declared a dividend of $0.1525 per common share for Q2 2024, compared to $0.1375 in Q2 2023, representing an increase of 10.9%[24] - The company paid dividends of $54,829,000, which is an increase from $50,286,000 in the previous period, marking an increase of 9.9%[31] Stock and Share Repurchase - The company repurchased and retired 2,784,988 shares, resulting in a reduction of retained earnings by $92,602,000[28] - During the six months ended June 30, 2024, the company repurchased 2,784,988 common shares at a weighted average price of $33.26 per share, for an aggregate cash amount of $92,630[207] - The company has authorized repurchases of up to $2,250,000 under its existing share repurchase program[206] Employee Compensation and Benefits - The net defined benefit plan costs for the six months ended June 30, 2024, were $10,055, compared to $8,794 for the same period in 2023, reflecting an increase of approximately 14.3%[165] - Total contributions to defined contribution plans increased from $67,046 for the six months ended June 30, 2023, to $71,490 for the same period in 2024, a rise of about 6.6%[166] - Stock-based compensation expense decreased to $27,550,000 in 2024 from $41,536,000 in 2023, a reduction of 33.7%[31] - Stock-based compensation costs for the three months ended June 30, 2024, were $18,046, down from $21,344 for the same period in 2023, a decrease of approximately 15.5%[179] Revenue Recognition - The Company recognizes revenue primarily from business process management services, including analytics and consulting, on a time-and-material, transaction, or fixed-price basis[52] - Revenue from fixed-price contracts is recognized ratably over the term of the agreement, while revenues from time-and-materials and transaction-based contracts are recognized as services are provided[52] - Deferred revenue is recorded for process transition activities and recognized ratably over the period in which related services are performed[54] - The Company uses the input method to measure progress towards completion for performance obligations satisfied over time[58] Debt and Financing - As of June 30, 2024, the outstanding amount under the term loan was $489,167, with a maturity profile indicating a significant payment of $423,724 due in 2027[152] - The company had a total of $23,302 and $23,001 available in credit facilities as of December 31, 2023, and June 30, 2024, respectively, with $9,336 and $9,108 utilized[146] - The company was in compliance with the financial covenants of the 2022 Credit Agreement, maintaining a net debt to EBITDA leverage ratio of less than 3x and an interest coverage ratio of more than 3x as of June 30, 2024[150] - As of June 30, 2024, the total long-term debt increased to $1,633,528, up from $1,256,962 as of December 31, 2023, representing a growth of approximately 30%[158] Impairment and Allowance for Credit Losses - The allowance for credit losses increased to $12,638,000 in 2024 from $6,521,000 in 2023, reflecting a rise of 93.5%[31] - The company recorded a charge of $1,338 for credit losses on deferred billings for the three months ended June 30, 2024, compared to $147 for the same period in 2023[97] - The allowance for credit losses on accounts receivable decreased from $18,278 as of December 31, 2023, to $16,833 as of June 30, 2024[95] Business Strategy and Operations - The company divested a business in December 2022 as part of a strategy to focus on services with greater growth opportunities[130] - The Company adopted ASU No. 2023-01 regarding leasehold improvements effective January 1, 2024, with no material impact on consolidated results[90] - The Company is assessing the impact of ASU No. 2023-07 on segment reporting disclosures, effective for fiscal years beginning after December 15, 2023[93]

Revenue Performance - Total revenue for Q2 2024 was $1.18 billion, representing a 6% year-over-year increase and a 7% increase on a constant currency basis[5]. - Data-Tech-AI revenue reached $546 million, up 4% year-over-year, accounting for 46% of total revenue[5]. - Digital Operations revenue was $630 million, up 9% year-over-year, representing 54% of total revenue[5]. - Net revenues for the three months ended June 30, 2024, increased to $1,176,212, up from $1,105,524 in 2023, representing a growth of approximately 6.4%[14]. Earnings and Profitability - Adjusted diluted earnings per share (EPS) was $0.79, reflecting a 10% year-over-year increase[5]. - Net income for Q2 2024 was $122 million, up 5% year-over-year, with a margin of 10.4%[5]. - Gross profit for Q2 2024 was $416 million, with a corresponding margin of 35.4%[5]. - Basic earnings per share for the three months ended June 30, 2024, increased to $0.68 from $0.63 in 2023, marking an increase of about 7.9%[14]. - Adjusted income from operations for the six months ended June 30, 2024, was $380,293, compared to $364,952 in 2023, indicating a growth of approximately 4.2%[25]. - The adjusted income from operations margin for the six months ended June 30, 2024, was 16.5%, slightly down from 16.6% in 2023[25]. Cash Flow and Financial Position - Cash flow from operations increased to $209 million, up from $171 million in Q2 2023[5]. - Net cash provided by operating activities for the six months ended June 30, 2024, was $183,713, up from $137,382 in 2023, representing a growth of approximately 33.8%[16]. - Cash and cash equivalents at the end of the period for June 30, 2024, were $914,171, compared to $491,308 at the end of June 30, 2023, showing a significant increase of about 86.1%[16]. Guidance and Projections - Genpact's updated full-year 2024 revenue guidance is between $4.656 billion and $4.701 billion, indicating a year-over-year growth of approximately 4.0% to 5.0%[7]. - The company anticipates adjusted diluted EPS in the range of $3.14 to $3.18, an increase from the previous range of $3.01 to $3.04[7]. - The company projects an adjusted income from operations margin of 17.0% for the year ending December 31, 2024[29]. - The outlook for diluted EPS in 2024 ranges from $2.69 to $2.72, with an adjusted diluted EPS forecasted between $3.14 and $3.18[32]. - For Q3 2024, the company anticipates a net income margin of 9.9% and an adjusted income from operations margin of 17.2%[33]. Share Repurchase and Other Financial Activities - Genpact repurchased approximately 1.9 million common shares for a total consideration of approximately $63 million at an average price of $32.63 per share[5]. - The company recorded a loss on the sale of a business classified as held for sale amounting to $802 during the six months ended June 30, 2023[16]. - The company experienced a foreign exchange loss of $3,291 for the six months ended June 30, 2024, compared to a loss of $723 in 2023[25]. - Estimated stock-based compensation expense for 2024 is projected at 1.5% of income from operations margin[30]. - The estimated amortization and impairment of acquired intangible assets for 2024 is projected at 0.6%[30].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period ended March 31, 2024 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission file number: 001-33626 GENPACT LIMITED (Exact name of registrant as specified in its charter) Bermuda 98-0533350 (State or other jurisdiction of ...

Financial Data and Key Metrics - Total revenues for Q1 2024 were $1.13 billion, up 4% year-over-year, exceeding the high end of the guidance range [7][8] - Gross margin was 35%, exceeding expectations due to operational efficiencies and better-than-expected revenue performance [8] - Adjusted operating income margin was 16.1%, in line with guidance, reflecting investments in top priorities [8] - GAAP net income was $117 million, up 10% year-over-year, with GAAP diluted EPS of $0.64, up 12% year-over-year [23] - Adjusted diluted EPS was $0.73, up 7% year-over-year, driven by lower outstanding share count and higher adjusted operating income [23] Business Line Performance - Data-Tech-AI revenue, representing 44% of total revenue, increased 3% year-over-year, driven by finance and accounting, supply chain, and risk service lines [20] - Digital operations revenue, representing 56% of total revenue, increased 4% year-over-year (5% on a constant currency basis), primarily due to deal ramps from last year's large bookings [20] - Outcome and consumption-based models expanded to approximately 19% of Q1 revenue, up from 13% in Q1 2023 [21] Market Performance - Financial services segment revenue increased 3% year-over-year, driven by large deal ramps and growth in financial crimes, partially offset by pressure in discretionary tax spend [21] - Consumer and Healthcare segment revenue increased 5% year-over-year, due to large deal ramps and growth in supply chain engagements [21] - High Tech and Manufacturing segment revenue increased 4% year-over-year, driven by new logos in digital operations and Data-Tech-AI, partially offset by descoping of a high-tech priority client [22] Strategic Direction and Industry Competition - The company's 3+1 Execution Framework is driving early results, focusing on partnerships, Data-Tech-AI, simplification, and internal transformation (Client Zero) [8][9][15][16] - Genpact strengthened partnerships with AWS, Salesforce, Adobe, and Microsoft, leveraging AI to transform finance organizations [9] - The company is aggressively driving go-to-market engagement in Data-Tech-AI, with a focus on generative AI, leading to increased client conversations and revenue [9][14] - Genpact is building responsible AI centers of excellence for clients, helping them automate operational finance activities and other processes [13][14] Management Commentary on Operating Environment and Future Outlook - The company increased full-year revenue guidance by 50 basis points to 2.5%-3.5% growth, reflecting Q1 outperformance [16] - Gross margin outlook for the full year was increased by 30 basis points to 35.3%, while adjusted operating income margin remains unchanged at 17% [17] - The outlook does not assume any improvement in the macro buying environment, with revenue upside from Q1 being flowed through the full year [17] - Management highlighted early signs of improving execution and momentum in generative AI-related revenues and bookings [14][17] Other Important Information - The company repurchased approximately 865,000 shares at a total cost of $30 million in Q1 [25] - Attrition rate for the quarter was 23%, in line with Q4 levels, with adjusted attrition (excluding involuntary attrition and employees with less than three months of service) at 17% [25] - Days sales outstanding expanded to 91 days from 83 days in 2023 due to collection delays and higher payment terms in new accounts [24] Q&A Session Summary Question: Long-term revenue targets and macro environment - The company is focused on 2024 execution and will provide updates on long-term targets as the year progresses [31][32] Question: Generative AI traction and business size - Early days for generative AI, but significant client interest and momentum in bookings and revenues, though still a small portion of overall business [35][36] Question: Q1 outperformance drivers - Outperformance driven by better execution in digital operations and Data-Tech-AI, particularly in finance and accounting supply chain projects [37][38] Question: Sales team changes and attrition - Positive reception to organizational changes, with excitement and improved execution, and hiring of over 50 senior leaders in Q1 [40] Question: Visibility into Q2 and full-year growth - Prudent guidance for the second half of 2024, with no anticipated improvement in the macro environment [43][44][45] Question: Productivity commitments from clients - No increase in productivity expectations from clients, but interest in AI tools and learning about their implementation [47][48] Question: Go-to-market changes and gross margin drivers - Sales and go-to-market changes are ongoing, with simplification efforts yielding results [51][52] - Gross margin improvement driven by lower severance costs and large deal investments, with a sequential downtick in Q2 due to annual compensation refresh [54] Question: Win rates and operating margin - Elevated win rates (62%) driven by sole-sourced deals and follow-on engagements, with operating margin held constant due to reinvestment in growth initiatives [57][60][61] Question: Outcome-based pricing and discretionary work - Outcome-based pricing models are showing higher margins than FTE-based pricing, with a push to decouple revenue from FTE headcount [64][65][70] - Over 70% of revenue is annuity-based, with discretionary work primarily in Data-Tech-AI consulting and project work [67] Question: Demand environment and execution - Record pipeline levels across segments, driven by increased agility and partnerships, but no meaningful improvement in the macro environment [77][78] Closing Remarks - Q1 was a solid start to the year, with revenue and gross margin above guidance, and early signs of improving execution under the 3+1 Execution Framework [81]

Revenue 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]

AI and Digital Transformation - The company expects AI technology to significantly impact its industry and markets, presenting competitive, reputational, and legal risks[10] - The company's approach to digital-led transformation combines domain expertise with AI, digital, and analytics to differentiate itself from competitors[16] - Many client solutions are based on Genpact Cora, an AI-based platform integrating automation, analytics, and AI technologies to drive digital transformations[18] - The company's AI-based platform, Genpact Cora, integrates proprietary automation, analytics, and AI technologies to drive client digital transformations[18] - Digital Smart Enterprise Processes (Digital SEPs) leverage Lean Six Sigma methodologies and advanced domain-specific digital technologies to improve client business performance[19] - The Enterprise360 intelligence platform uses AI for prescriptive actions to identify transformation opportunities and unlock operational excellence[21] Revenue and Financial Performance - Digital Operations services revenue in 2023 was $2.48 billion, representing 55% of total revenue[21] - Data-Tech-AI services revenue in 2023 was $1.99 billion, representing 45% of total revenue[22] - Financial Services segment revenue in 2023 was $1.23 billion, accounting for 27% of total revenue[32] - Consumer and Healthcare segment revenue in 2023 was $1.57 billion, representing 35% of total revenue[34] - High Tech and Manufacturing segment revenue in 2023 was $1.68 billion, accounting for 38% of total revenue[36] - Digital Operations services generated $2.48 billion in revenue in 2023, accounting for 55% of total revenue[21] - Data-Tech-AI services contributed $1.99 billion in revenue in 2023, representing 45% of total revenue[22] - Financial Services segment revenue in 2023 was $1.23 billion, making up 27% of total revenue[32] - Consumer and Healthcare segment revenue in 2023 was $1.57 billion, accounting for 35% of total revenue[34] - High Tech and Manufacturing segment revenue in 2023 was $1.68 billion, representing 38% of total revenue[36] Operational Risks and Challenges - A substantial portion of the company's assets, employees, and operations are located in India, exposing it to regulatory, economic, social, and political uncertainties[10] - The company's profitability may suffer if it fails to price contracts correctly, maintain employee and asset utilization levels, and control costs[10] - Wage increases in countries where the company operates could reduce profit margins[10] - Currency exchange rate fluctuations, particularly in the Indian rupee, euro, and U.S. dollar, could adversely affect the company's business and financial condition[11] - The company is implementing a new enterprise resource planning system, which may impact internal controls, business, and operations[10] - The company faces risks from wage increases in operating countries, which may reduce profit margins[10] - Currency exchange rate fluctuations, particularly in the Indian rupee, euro, and U.S. dollar, could adversely affect financial performance[11] - The company is implementing a new enterprise resource planning system, which may impact internal controls over financial reporting[10] - A significant portion of the company's assets, employees, and operations are located in India, exposing it to regulatory, economic, and political uncertainties[10] Leadership and Talent Management - The company's success depends on retaining key senior leadership and managing the transition of its new Chief Executive Officer[10] - In 2023, the company promoted more than 13,000 employees and filled over 40% of open positions with internal hires[41][43] - The company's Genome learning framework and TalentMatch initiative aim to reskill employees and match skills with future job opportunities[43] - Balkrishan Kalra was appointed President and CEO in February 2024, having previously led the Consumer Goods, Retail, Life Sciences, Healthcare, and Financial Services businesses[60] - Michael Weiner has served as CFO since August 2021, with prior experience at National General Holdings Corp. and Ally Financial[60] Client and Market Dependence - The company's revenues are highly dependent on clients in the United States and Europe, as well as clients in specific industries like financial services and high tech[10] - The company serves approximately 800 clients across various industries and geographies, including about a quarter of the Fortune Global 500[37] - Revenues are primarily derived from Fortune Global 500 and Fortune 1000 companies[53] - The company serves approximately 800 clients globally, including about a quarter of the Fortune Global 500[37] Global Operations and Infrastructure - As of December 31, 2023, the company had approximately 129,100 employees working in over 35 countries[40] - The company operates a global network of over 90 delivery centers across 25+ countries[47] - As of December 31, 2023, the company had approximately 129,100 employees across more than 35 countries[40] - The company has a global network of more than 90 delivery centers in over 25 countries[47] Intellectual Property and Innovation - The company has a portfolio of over 60 patents and pending patent applications globally as of December 31, 2023[50] - Over 200 trademarks are registered in various jurisdictions[50] - The company holds a portfolio of more than 60 patents and pending patent applications globally, along with over 200 registered trademarks[50] Competition and Market Position - The company faces competition from large multinational service providers, IT service providers, and niche AI/digital technology firms[51][52] - The company faces competition from large multinational service providers, business process service providers, IT service providers, and niche service providers[51][52] - The company's competitive factors include deep industry expertise, innovative digital offerings, and global reach[53] Regulatory Compliance and Legal Risks - The company is subject to GDPR and other global data privacy regulations, including the EU-U.S. Data Privacy Framework[55] - The company must comply with U.S. financial regulations such as the Gramm-Leach-Bliley Act and the Fair Credit Reporting Act[55] - The company is affected by evolving privacy laws in regions like India, Africa, Asia, and Latin America[55] - The company is licensed to engage in debt collection activities in all U.S. jurisdictions where licensing is required, and is regulated by laws such as the Truth in Lending Act and the Fair Debt Collection Practices Act[56] - The company is licensed as a third-party administrator in 43 U.S. states for insurance processing activities and holds entity adjuster licenses in 24 states[56] - The company is subject to economic substance requirements in Bermuda under the Economic Substance Act 2018, requiring adequate economic substance in Bermuda for certain activities[56] - The company's hedging activities and currency transfers are restricted by regulations in China, India, Malaysia, the Philippines, and Romania[56] - The company is classified as a non-resident of Bermuda for exchange control purposes, allowing transactions in currencies other than Bermuda dollars without restrictions on fund transfers or dividend payments to U.S. residents[56] - The company's content moderation activities are influenced by U.S. laws such as Section 230 of the Communications Decency Act, which may evolve and impact business strategies[56] - The company is subject to U.S. foreign trade regulations, including export control, customs, and sanctions regulations maintained by various government bodies[56] - The company is subject to regulation in multiple jurisdictions, including the US, UK, EU, and other countries where it operates, with potential penalties for non-compliance[54] - The company must comply with privacy, data security, and breach notification laws in the US, including the Gramm-Leach-Bliley Act, HIPAA, and state-level laws like the California Consumer Privacy Act[55] - The GDPR in the EU imposes strict privacy and data security obligations, with increased fines for violations and restrictions on data transfers outside the EEA[55] - The company is licensed for debt collection activities in all required US jurisdictions and as a third-party administrator in 43 states for insurance processing[56] - The company must comply with Bermuda's Economic Substance Act 2018, requiring adequate economic substance in Bermuda for certain activities[56] Tax and Financial Incentives - The company benefits from tax incentives or concessional rates in service delivery centers located in China, Costa Rica, India, Israel, Malaysia, and the Philippines[56] - The company benefits from tax incentives and concessional rates in service delivery centers located in China, Costa Rica, India, Israel, Malaysia, and the Philippines[56] Corporate Social Responsibility - Over 62,000 employees volunteered in 2023, supporting causes like mentoring, food security, and environmental initiatives[45] - More than 5,000 employees participated in payroll-based charitable donation programs in 2023[45] - The company's corporate social responsibility initiatives include over 62,000 employee volunteers and 5,000 participants in payroll-based charitable donation programs[45] Reporting and Governance - The company files reports with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K[57] - The company's executive leadership includes Balkrishan Kalra as President and CEO, Michael Weiner as CFO, and Sameer Dewan as Global Business Leader for Financial Services[60]

Genpact Limited (NYSE:G) Q4 2023 Earnings Conference Call February 8, 2024 5:00 PM ET Company Participants Roger Sachs - Vice President, Investor Relations Tiger Tyagarajan - Outgoing President and CEO BK Kalra - Incoming President and CEO Mike Weiner - Chief Financial Officer Conference Call Participants Puneet Jain - JPMorgan Keith Bachman - BMO Maggie Nolan - William Blair Ashwin Shirvaikar - Citigroup Bryan Bergin - TD Cowen Sean Kennedy - Mizuho Moshe Katri - Wedbush Securities Surinder Thind - Jefferi ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $1.14 billion, up 2% year-over-year on a constant currency basis [7][21] - Adjusted operating income margin was 17.2%, up 10 basis points year-over-year [7][23] - Adjusted diluted earnings per share was $0.76, up 1% year-over-year [7][25] - Full year 2023 revenue outlook revised to approximately $4.45 billion, representing a year-over-year growth of 2.5% on a constant currency basis [8][28] Business Line Data and Key Metrics Changes - Data-Tech-AI services revenue was $500 million, down 2% year-over-year [7][21] - Digital Operations services revenue was $636 million, up 6% year-over-year [7][21] - Revenue from priority accounts grew 6% year-over-year, accounting for approximately 64% of total revenue [11] Market Data and Key Metrics Changes - Financial services revenue increased 6% year-over-year, driven by large deal ramps [21] - Consumer and healthcare revenue declined 2% year-over-year due to pressure on short cycle growth-oriented digital marketing projects [21] - High tech and manufacturing revenue increased 4% year-over-year, primarily driven by new logo wins [21] Company Strategy and Development Direction - Focus on large transformational deals prioritizing cost reductions, with bookings expected to grow at least 25% in 2023 [6][9] - Continued investment in generative AI, with over 90 specific solutions in testing and deployment [14][16] - Expansion of partnerships with cloud technology players to co-innovate and create joint IP solutions [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted increasing pressure in short cycle advisory and project work, leading to lower than expected revenue [6][8] - Confidence in long-term annuity-based services remains strong, with a record high quality pipeline [9][10] - Management expressed cautious optimism for 2024 growth, with limited visibility into short cycle revenue [10][30] Other Important Information - Attrition rate for Q3 was 25%, significantly lower than 36% during the same period last year [13] - The company added 32 new logos during the quarter, indicating a bounce back from the first half of the year [10][64] Q&A Session Summary Question: Comments on short cycle versus large deals - Management acknowledged strong long cycle annuity deals but noted challenges with short cycle projects impacting revenue [32][34] Question: Catalyzing short cycle work - Management indicated that while there are no immediate plans to catalyze short cycle work, generative AI budgets remain stable and could drive growth [36][38] Question: Non-FTE work traction in high priority accounts - Non-FTE commercial models penetration is at 16%, with higher adoption in priority accounts [42][43] Question: Impact of current dynamics on margins - Management discussed the dual dynamics affecting gross margins, with large deal ramp-ups having a dilutive effect in the near term [45][46] Question: Visibility on Data-Tech-AI and Digital Ops - Management confirmed strong growth in Digital Operations and acknowledged weakness in Data-Tech-AI going into Q4 [49][50] Question: New logo additions by verticals - New logos were well distributed across all verticals, indicating a recovery from the first half of the year [63][64]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period ended September 30, 2023 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission file number: 001-33626 GENPACT LIMITED (Exact name of registrant as specified in its charter) Bermuda 98-0533350 (State or other jurisdictio ...