WNS(US:WNS)2025-04-24 23:47Financial Data and Key Metrics Changes - In Q4, the company reported net revenue of $323.3 million, a sequential increase of 1.3% and a constant currency increase of 2.6% [7][18] - For the full fiscal year, net revenue was $1.266 billion, down 1.5% on a reported basis and 1.7% on a constant currency basis [12][22] - Adjusted operating margin for Q4 was 21.4%, up from 20.9% year-over-year and 19.3% sequentially [19] - Full year adjusted operating margin was 19.5%, down 110 basis points compared to the previous year [23] - Adjusted net income for Q4 was $66.2 million, compared to $53.9 million in the same quarter last year [21] Business Line Data and Key Metrics Changes - The company added nine new logos and expanded 50 existing relationships in Q4 [8] - Full year revenue growth was driven by new logo additions and existing client expansions, despite headwinds from client-specific issues [15][22] - The company recorded $1.3 billion of short-term high-margin revenue in Q4 [19] Market Data and Key Metrics Changes - The company experienced a loss of a large healthcare client and reductions in travel volumes, impacting revenue [12][18] - Online travel revenue was down to 3% of total company revenue, with no improvements baked into fiscal 2026 guidance [70][72] Company Strategy and Development Direction - The company is focusing on digital transformation, AI, and data management, highlighted by the acquisition of Kippi.ai [9][10] - The strategy includes a tuck-in M&A approach to enhance technology and AI capabilities [11] - The company aims to leverage its industry-specific knowledge to create transformational AI-led solutions [10][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about client demand, noting a consistent theme of urgency in digital transformation and cost reduction [30][31] - The company has 90% visibility to the midpoint of its revenue guidance for fiscal 2026, projecting 9% growth [17][25] - Management acknowledged potential volatility in client behavior but emphasized the defensive nature of its business model [16][32] Other Important Information - The company generated strong free cash flow and engaged in aggressive share repurchases [13][24] - The attrition rate increased to 39%, up from 33% year-over-year [21] Q&A Session Summary Question: Client demand and broader sentiment - Management noted that clients are increasingly focused on digital transformation and cost reduction, leading to accelerated deal closures [30][31] Question: Growth outlook for fiscal 2026 - The company expects a 7% to 11% growth range, with a 2% headwind from previous client ramp downs [33][34] Question: Cadence of growth and margin expectations - Management indicated that Q1 is typically soft, with expectations for sequential margin improvement throughout the year [40][41] Question: Characteristics of large deals - Both large deals are five-plus years in duration, focusing on mission-critical operations for clients [56][57] Question: Travel volume sensitivity - The company has a robust pipeline in travel and logistics, with no significant downside risk anticipated [67][70] Question: Hiring plans and geographic focus - The recent increase in headcount is aimed at ramping up for future growth, particularly in client-facing roles [82][84] Question: Use of GenAI across clients - The company has deployed GenAI solutions at around 20 clients, with expectations for increased revenue contribution from these assets [86][88]