Financial Data and Key Metrics Changes - The company reported total revenues of $1,215,000,000 for Q1 2025, representing an 8.3% year-over-year increase in constant currency, exceeding guidance expectations [7][20] - Adjusted EPS grew by 16% year-over-year, reaching $0.84, which is above the high end of the guidance range [8][24] - Gross margin expanded by 30 basis points year-over-year to 35.3%, driven by operating leverage and cost discipline [23][24] - Operating cash flow improved to $40,000,000 from a $26,000,000 outflow in the prior year [24] Business Line Data and Key Metrics Changes - Data Tech and AI services accounted for 48% of total revenue, amounting to $582,000,000, reflecting an 11% increase year-over-year [22] - Digital operations revenue was $633,000,000, up 4% year-over-year, representing 52% of total revenue [22] - Revenue from priority accounts grew approximately 6% year-over-year, representing 62% of total revenue, with high-tech and manufacturing leading at 11% growth [23] Market Data and Key Metrics Changes - The pipeline for large deals increased by over 80% year-over-year, indicating strong long-term demand despite current uncertainties [17][42] - The company noted delays in large deals primarily in manufacturing, consumer goods, and high-tech hardware sectors due to supply chain and tariff-related uncertainties [9][40] Company Strategy and Development Direction - The company is focused on execution, innovation, and deepening client relationships, aiming to gain market share and build a stronger business [11][19] - The three plus one execution framework introduced in 2024 emphasizes partnerships, Data Tech AI, simplification, and establishing Genpact as a leader in AI-led transformation [11][12] - The company is taking a conservative approach to guidance, reflecting increased uncertainty in certain industries and a measured outlook for digital operations and Data Tech AI [17][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and highlighted a strong pipeline, despite acknowledging a changing operating environment [18][19] - The company is not seeing any deal cancellations but is experiencing delays, particularly in large deals that are crucial for revenue growth [38][52] - Management remains optimistic about the demand for their solutions and the potential for productivity gains through AI [41][72] Other Important Information - The company returned $93,000,000 to shareholders in Q1 through share repurchases and dividends [25] - The guidance for full-year net revenue has been adjusted to a range of $4,862,000,000 to $5,005,000,000, reflecting a growth of 2% to 5% [29][30] Q&A Session Summary Question: Growth and revised outlook in digital operations - The reduction in digital operations outlook is primarily due to delays in large deals, which are expected to impact the second half of the year [35][37] Question: Risk of deal cancellations - Management does not foresee any risk of cancellations as discussions are ongoing and deals remain active [42] Question: Pricing pressure on delayed deals - There is no indication of pricing pressure; the delays are purely timing-related [50][52] Question: Impact of existing customer deals on second quarter - The company feels confident about the second quarter, with a conservative outlook reflecting uncertainty rather than weakness in existing customer deals [67] Question: AI-driven productivity savings in deals - The company typically promises productivity improvements of 30% to 45% over the term of large deals, leveraging various AI solutions [71][72]

Financial Data and Key Metrics Changes - The company reported total revenues of $1,215 million in Q1 2025, an increase of 8.3% year over year in constant currency, exceeding guidance [7][20] - Adjusted EPS grew 16% year over year, reaching $0.84, which is above the high end of the guidance range [8][24] - Gross margin expanded by 30 basis points year over year to 35.3%, driven by operating leverage and cost discipline [23][24] - Operating cash flow improved to $40 million from a $26 million outflow in the prior year [24] Business Line Data and Key Metrics Changes - Data Tech and AI services represented 48% of total revenue, amounting to $582 million, reflecting an 11% increase year over year [22] - Digital operations revenue was $633 million, up 4% year over year, accounting for 52% of total revenue [22] - Revenue from priority accounts grew approximately 6% over the prior year, representing 62% of total revenue [23] Market Data and Key Metrics Changes - The pipeline for large deals is at record levels, up more than 80% year over year, indicating strong long-term demand [16][41] - Win rates for the quarter were 40%, with sole source deals accounting for approximately 54% of total bookings, up from 35% in the prior year [21] Company Strategy and Development Direction - The company is focused on execution and innovation, deepening client relationships, and gaining market share [10][18] - The three plus one execution framework introduced in 2024 emphasizes partnerships, Data Tech AI, simplification, and establishing Genpact as a leader in AI-led transformation [10][11] - The company is taking a conservative approach to guidance due to increased uncertainty in certain industries driven by changes in global trade [15][26] Management's Comments on Operating Environment and Future Outlook - Management noted a softening macro environment but emphasized the strength of execution and the unutilized nature of the business [8][9] - The outlook for the year has been adjusted to reflect delayed decision-making in select end markets, particularly those impacted by global trade dynamics [20][26] - Despite the challenges, management remains confident in the strategy and the strength of the pipeline [17][18] Other Important Information - The company signed two large deals in Q1, with over 80% of associated revenue accounted for as unutilized Data Tech AI revenue [8] - The company is committed to returning at least 50% of cash flow to investors through share repurchases and dividends [30] Q&A Session Summary Question: Growth and revised outlook in digital operations - Management confirmed that the reduction in digital operations is primarily driven by delays in large deals, which are still in active dialogue and have not been canceled [36][40] Question: Pricing pressure on delayed deals - Management stated there is no pricing pressure on the delayed deals, attributing the situation to timing rather than competitive factors [48][50] Question: Types of deals affected by delays - The delayed deals are primarily in supply chain and are significant in nature, with a focus on both cost takeout and productivity improvements [55][56] Question: Outlook for Data Tech AI customer end markets - Management indicated a strong performance in Data Tech AI, with a record pipeline and a conservative approach to shorter cycle retail deals [60][61] Question: Impact of existing customers on second quarter growth - Management expressed confidence in second quarter growth, emphasizing a conservative outlook due to uncertainty rather than weakness in existing customer deals [65][66] Question: AI-driven productivity savings in large deals - Management highlighted that large deals typically promise productivity improvements of 30% to 45% over five to seven years, leveraging various AI solutions [68]