WNS(US:WNS)2025-04-24 13:02Financial 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 in Q4 was 21.4%, compared to 20.9% last year and 19.3% last quarter [19] - Adjusted net income for Q4 was $66.2 million, up from $53.9 million in the same quarter last year [21] - Full year adjusted net income was $208.7 million, down 4% year on year, while adjusted EPS was $4.55, representing an increase of 3% [24] Business Line Data and Key Metrics Changes - The company added nine new logos and expanded 50 existing relationships in Q4 [8] - The revenue decline in fiscal 2025 was attributed to customer-specific headwinds, including a large healthcare client loss and volume-based ramp downs in the online travel space [12][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 healthy demand for digitally led business transformation and cost reduction initiatives, which offset unfavorable currency movements [8] - The online travel segment accounted for only 3% of company revenue in Q4, indicating a significant reduction in this area [66] Company Strategy and Development Direction - The company announced the acquisition of Kippi.ai, enhancing its capabilities in data management and analytics [9] - The focus is on combining domain expertise with AI and data technologies to create new services and solutions [10] - The company aims to leverage its industry-specific knowledge to help clients harness data and technology for business transformation [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding client demand, noting that clients are accelerating their digital transformation journeys despite macroeconomic uncertainties [30] - The company begins fiscal 2026 with 90% visibility to its revenue guidance, projecting 9% growth on both a reported and constant currency basis [17] - Management highlighted that the business model remains fundamentally defensive and recurring in nature [17] Other Important Information - The company generated strong free cash flow and engaged in aggressive share repurchases during the fiscal year [13] - The company transitioned from IFRS to U.S. GAAP reporting and was included in the Russell 2000 and MSCI U.S. Small Cap indices [14] Q&A Session Summary Question: Can you talk about broader client sentiment and spending behavior? - Management noted that clients are cautiously optimistic and are accelerating closures for digital transformation projects, indicating a strong demand for cost reduction initiatives [30] Question: Can you provide insights on the growth outlook for fiscal 2026? - The company expects a growth range of 7% to 11% for fiscal 2026, with a 2% headwind from previous client ramp downs [25][33] Question: What are the characteristics of the large deals signed? - Both large deals are five-plus years in duration, focusing on mission-critical operations in banking and corporate travel management [54] Question: How is the hiring plan structured? - The recent increase in headcount is aimed at ramping up for large deals and future growth, with a focus on hiring high-quality resources [78] Question: How many clients are currently using GenAI? - The company has deployed GenAI solutions at around 20 clients, with expectations for increased revenue contribution from these technologies [80]