WNS - Earnings call transcript Q3 2025

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Operator

Good morning, and welcome to the WNS Holdings Fiscal 2025 Third Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded for replay purposes.

Now I'd like to turn the call over to David Mackey, WNS' Executive Vice President of Finance and Head of Investor Relations. David?

David Mackey

Thank you, and welcome to our fiscal 2025 third quarter earnings call. today. the CFO, have detailing Arijit results issued on Murugesh; CEO, our today was WNS' and Sen. A earlier me call, WNS' I Keshav financial With press release Investor The Relations www.wns.com. Today's release will the quarter fiscal on for focus available XXXX. ended is on December remarks section our XX, website also of at the third results the

website. or materially from and forward-looking limited Some by those uncertainties forth XX-F. and on keep risks Such in Please call and factors company are is those include, of the expressed forward-looking. in actual not known implied cause matters could to are document that such company's that that will Form available statements these results This be unknown statements. but subject risks discussed the on set uncertainties today's differ are also to, mind to the

will can financial useful non-GAAP During certain results GAAP information this in today. issued investors. earlier which provide financial Reconciliations for reference call, of these the press be we to believe release management non-GAAP found measures measures,

of margin assets, expenses management benefits margin are defined net and operating of as follows: intangible adjusted of amortization as will is acquisition-related repair is measures the defined non-GAAP defined revenue operating revenue and goodwill assets. as discuss share-based less Some compensation, intangible excluding financial payments; impairment or

all used today's over like turn U.S. reporting ANI, benefits, the costs, terms call. I would Keshav? the transition or We CEO, acquisition-related will domestic call expenses be are income, compensation, voluntarily to program voluntarily transition reporting of goodwill with throughout defined intangible and termination also forms. Adjusted ADS These asset intangible on the excluding WNS' associated issuer Murugesh. net amortization and forms excluding costs taxes. domestic impairment, Keshav share-based on costs now related program to to to as our associated or and termination to assets, U.S. issuer profit ADS is

Keshav Murugesh

of deals constant growth, revenue X% was company QX, David. flow. sequential to and on generate strong year-over-year $XXX.X margin representing everyone. cash able In pipeline transformation increase reaccelerate more than unfavorable expand a existing currency Good business morning, logos initiatives XX net is adjusted fiscal million, you, in The QX revenue existing on of client WNS includes as on and WNS a travel reported new a basis operating expanded stable X Thank posted X.X% cost movements quarter, basis of anticipated broad-based management prior traditional as demand as well and for the and as after a at and by volumes. In and adjusting quarter, in on led This currency. constant relationships. perspective, the revenue demand a growing reduction rate online third both reductions well reported process net as added healthy. flat From relationships. offset currency increased verticals healthy basis. pipeline X.X% additions and foreign well new Versus digitally a currency remains service for Sequentially, basis a for broad-based as across offerings expansions

for only we've over these any or AI the in to and U.S. changes traditional revenue material return also decision-making or high encouraged to the single with cycles low election enable should these opportunities, past WNS conversion double-digit are no resulting that volatility, unusual in Steady growth not sales quarters, We macro deals from combined 'XX. headwinds Gen to AI. of fiscal few seen

of healthy, company help ramp capabilities large pipeline and robust the with transformational healthy, deal Currently, with WNS' potential our verticals. our large vertical, deal and we traditional pipeline to all excited the large much several deal have both to deals. in The -- our accelerate remains continue horizontal and opportunities of pipeline for the captive initiatives and about to part carve-outs across to than be ability as addition key the includes growth. revenue In remains expand geographic these large which faster addition, opportunities solution, spread strategic to

work to continue WNS moving pipeline closely are transformational and many and making positioned these good deals is remain long-term CFOs their CEOs, that client through are We progress members in we requirements with met. success. to cases, ensure the for Board confident well

well quarter, and remains mentioned the revenue timing last As deal given nature of of signings contribution the complex of these uncertain. strategic some disruptive engagements, associated as as

and their a Gen prospects deal partners advanced and capabilities than analytics deliver address combination we solutions we specialized solutions revenue of looking continue our for more and until signed. Today, WNS into created result, large to exclude XX has contribution any to the are are management expertise, Gen This and to continue business cases, includes digital use customer AI date, As right move our from innovative our guidance skills, increasingly domain data where which AI and AI, ready. tested to requirements. expand production. To clients

verticals. We and In shipping across management freight includes XX automated enables well to the leverages configurable analyze unique massive with This Gen which platform, addition, and access, a AI production insurance or client, include as of Examples for and U.S. either well new which have assets, solutions documents, WNS we is customer built data to XX leveraging top tailored of a which another dispersed underway Gen AI-powered currently WNS to with committed. digital fiscal improve clients. instant responses engine, processing reusable have customer XX and 'XX. become a as processing AI, accuracy Gen across Gen query provide in are horizontals reading AI projected an amounts to as which extracting, XX as knowledge clients

have integrated employees AI. compliance, this also policy on agent processes. WNS improve productivity upskilling and we administration Gen and broker into invest help to of and the For well support accuracy to assets in solution in AI our X an digital end-to-end their AI as continues training Gen of as our client,

Oxford LinkedIn internal Our partnership combined with University. and learning University, Carnegie organizations training Learning with role-specific Mellon programs external in programs, like KPMG,

insights with the generating power clients to as completed. In is by domain reducing over momentum technology-enabled signings able with and combining actionable our impactful business profitable our to business we competitive Sen, Sustaining our sustainable growth by continuing WNS data remains would AI providing over ensure expansion as guidance, Gen and have to domain, turn as training revenue we reducing company single enhancing discuss innovation deliver differentiation. With digital, AI offerings, of stakeholder analytics now margin the more to opportunity. The to employees and consecutive far, courses XXXX sequential WNS value. I XX,XXX leveraging further to quarter this risk long-term decision-making, well and respect reach to operating our low Arijit the and Arijit? cost, So committed outcomes our to second XX,XXX and expect deliver enabling large data well visibility the as summary, to and call revenue growth quarter. double-digit ability should growth like for for individual also deal customer continue well XXXX any incremental fiscal to healthy results experience, fiscal outlook. total fourth high CFO, to revenue into to now trained in than enable as expertise, investments in enhanced improve as

Arijit Sengupta

were of $X.X higher more prior interest is year the result interest from came other than quarter result $X.XX QX $XX last million, is $X.X compared and third company's with and reported net volumes a revenue of million for higher were tax the primarily and and quarter, of diluted was the up XXXX balances. WNS' million cash sales. in effective increased the of to quarter. Sequentially, XX.X% year million, $X.X Adjusted to currency operating balances levels investments net QX, basis. by $X.X in driven at XX.X% These year $XX.X on repurchase. same quarter last $X.XX third broad-based compared at flat was favorable geographical of of higher the last WNS' more on Adjusted employee a decreased XX.X% QX percentage million work income third margin of net tax expense constant in share last utilization Both by XXXX X.X% quarter. a net on quarter you, in were payments, rate cash tax on and down the by Sequentially, across Keshav. million net quarter result income fiscal reversal revenue and net improvement in rate services, last favorable and mix, leverage offset from fiscal tax increased earnings debt year margin adjusted X.X% in favorable quarter. quarter and growth quarter. of operating driven operating X.X% to with and than from of tax nonrecurring and currency. currency $XX.X of revenue and of compared rate benefits by X.X% the quarter. In reductions The and adjusted unfavorable delivered incentive revenue. currency associated QX Thank is QX Year-over-year, movements XX.X% in last intangibles. Other million infrastructure Sequentially, variance $XXX.X in million lower in by anticipated the quarter offset $X.XX X% variance last as Year-over-year, of same million $X.X driven decreased profit which margins QX basis by posted demand changes headwinds primarily WNS and effective expense driven constant lower partially the the short-term from the $XXX.X last and movements. in sequentially, verticals year-over-year compared liabilities came high-margin volume of movements. The for a offset the as the tax by deferred as million was facilities. The and lower per our travel. In of expense of result last share fiscal on tax in $X.X last the and online quarter-over-quarter million QX, unfavorable which in a in was was reduced income in as currency company's recorded driven

As WNS million WNS' repayments the and from totaled in came operating of in at XXXX, cash of in XX $XX.X December debt million, capital made company expenditures and generated in million quarter, $XX.X In third $XXX.X investments incurred million debt. and cash quarter of had count balances quarter the to the at $XX.X activities, last $XXX.X XX, million. DSO XX% head quarter. XX% other days was year in rate XX of metrics, last compared attrition QX in XX% total operating the XX and days of and QX quarter. as in respect With was the reported as last to third previous of days XX,XXX end key and year to compared third

provided low remain average XXXX. press our work XX% revised attrition X% of in a from QX volatile range, be WNS X%. $X.XXX X% mid-XX% quarter-to-quarter. to expect the levels, increased our a on quarter. In we end average the guidance billion, range visibility seat and company's during Based minus the the year office capacity basis, Billed revenue but WNS issued year-over-year to for expect fiscal full billion of to minus on minus at from rate range currency to XX,XXX We to range would earlier to minus release net today, of current guidance is the representing to reported constant X% the a basis. On in $X.XXX the

on deal Our large adjusted Full based continued range no in a the line net fiscal projections of USD project fiscal spend. to exchange XXXX is the guidance volumes INR improvement and travel of for QX. to $XXX in average to U.S. assumes XXXX an discretionary no assume for for British expected reductions QX. online pound X.XX year revenue in XX.X Top from million contribution dollar pipeline, $XXX to be rate million rate income

requirements in Our a diluted Based million share ANI benefit adjusted the a capital $X.XX relating to XX.X expected expenditures, $XX.X India. the to million XXXX be to respect quarter fourth onetime to our guidance currently facility for range of a count expects With on is $XX in approximately be million. to $X.XX. of up sale of asset in WNS includes fiscal EPS to shares,

We will now open questions. the Operator? call for

Operator

from of DB. Svensson the Instructions] line Nate first [Operator with question Our comes

Christopher Svensson

hear year. about to revenue expected nice and results next acceleration the Good

color outlook more that for So on double-digit was growth. I for high I but single low early, fiscal hoping little know to it's 'XX a

combination calls, prior like commitments, something a on et that's talked you've productivity think a ramp-downs, headwinds of year, every time cetera. I you known XX% to XX% about projects, enter in normal and

fiscal on guess hoping year read of I that normal shaping up I pieces could a next the an all are you the business, early impacted those So moving have give each headwinds maybe was year? how given versus for

David Mackey

Sure.

that, Let Nate. me take

we from not give into range only think, the productivity that are the the expect that of some you but I cyclical that or we rightly falloff as commitments back typical bankruptcy expect is fact year-over-year the basis client mentioned, headwinds we project XX% a M&A. in walking comprised on year like also and to to in XX% as clients, revenue, revenue a typically loss nature as which the consolidation in well or things

look we have the sit fiscal client, to the to we and you in are anniversary where only that walking in a the related effects will currently 'XX, reductions of unusual If year time at 'XX. X% annualized travel from this first about headwinds relative at the of point healthcare which next impact fiscal year-over-year year, the the quarter X% during fiscal online into

in time, obviously terms X%, into is 'XX below walking significantly of fiscal probably next we've in headwinds year, So headwinds we're which both about at this 'XX. unusual looking point and that the seen in at

Arijit Sengupta

QX were our growth, add, X.X% just currency. Nate, at look to constant we at if you

our of about even guidance, you and we again X% OTA QX in sequentially assumes our client X% QX if if guidance the our healthcare And you look growth. at look the you the numbers, pare grew a well. as impact at out client, If sequential

enter So 'XX. the is part in the run when good we also FY puts sequential a us growth rate very place good

other the we that's additional can provide. So comfort that

David Mackey

that's is see carrying, been message what has And from is that that If double-digit underlying couple you single, $X $X of right? you'll really deals, the rate years, -- we've at true just rates. with challenges that over consistent million that idiosyncratic million, strip large pipeline, last high out deal the is and I that, of think $X growth sitting had coming rate the the low not the this traditional the types run obviously business million,

Christopher Svensson

I color. helpful super That's appreciate answer. the

follow-up, operating for So I about ask the wanted to margins.

bit year-over-year. So little margins up sequentially, a down

quarter, XQ. on had margins XXs to you the low in last I sort adjusted think pointed call of operating

see recovery. revenue if particularly basis on just in talk and maybe cadence year Again, but holds? And hear evolving wanted this that you light of then the expansion looks moving about of margin wondering the double-digit, importantly, expected 'XX, move really like can into year? So to single, two, full low next you see, that to about year-over-year I high how nice a cadence one, as still we margins more how into

Arijit Sengupta

mentioned Yes. our that if get operating Nate, remember last you to should revenue had we quarter, leverage, as due back margin we growth our improve.

as that investment, sequentially. And the we've is, right? mentioned revenue we in see actually improved sales, scaled margin the our So we quarter, in as in not as if quarter, is. Despite you I this have fact continue almost headwinds, our -- capacity, to mentioned last continues investments and back we scale up

should going you So range the if to -- if we at forward. the from we QX. run guidance. closer to perspective, higher And continue me should We get look be ask going XX% a should QX, ranges forward, rate on in you in we average our XX% hold XX%

David Mackey

the that, quarters wage QX as the to move the reduction see cadence closer productivity relates the profile mentioned and what that, last QX last last sorry. year. that remember, as Yes. Arijit -- across increases color should about will relative And guidance, be a commitments North we've operating across probably in of to XX% a to fourth build numbers, clients expect holding we to we in to we Nate. give full fiscal still annual from full margin prior of we're cadence to the should which will But do The leverage XX% that I year, year, years, quarterly our think that where little to to to relates the just margin and to year's year. a add we sequential do we quarter. With implies the guidance, X talked respect QX there that see to similar quarter's next some for

Operator

comes question next Our Bergin from Cowen. Bryan with TD

Bryan Bergin

And there on Can progress visibility through near-term you as pipeline or I'll pipeline? through progress progression talk you for deal. deals? closures? learnings any far the do to ask the you the out as Any just large as the about they the pipeline of called that large

Keshav Murugesh

Sure.

So question. thanks that for

the the is and pipeline. come momentum deal as I in think foremost, about seeing remarks, the areas. But are my large prepared on I across that first of interest as them in and with I in their long-term issues, that and And fact kind terms differentiation that super many business critical news taking terms a different achieve in to for us helping important we're the revenue number of fact in their want well cost different a domains we well. more in that So around understands programs have headline appreciate their they a is strategic of technology is the that marketplace. leadership resonating they their programs and that got so company, are what positioned want stratosphere, And is accretion core WNS across horizontals positive mentioned us bring believe, to we to and our to they the invested companies very message importantly, differentiation, the has so of

highest be sometimes at And is timing these of place. levels the on takes messages uncertainty other this importantly, have to the the More delivered side. where

must I with the deals. delighted we we that of these that mention on have progress been So many are making

deals of so Board very terms XX disruptive at to actually and of in this through a of fact, in key but decision. also only some their CEO final take nature members, have often hoops comfort the stakeholder the getting CFO, they the for is risk their client, these the fact they that around are such that before committees, not are internally have in and through go the large the we is pipeline. The scale, probably more and qualified these and moving uncertainty than point size deals In being impact, time, because of and

navigate like the and the that. outside adviser need entire the they deal to an contract potential in to things from of them bring help Sometimes and

this as as where we So far concerned. are is that's

In confident a the will I we to we update and terms you. are over we want of just next filings, something, when also X But close right? we X pole out close, potential position that actually or again, are probably there that in to say quarters, that lay

Bryan Bergin

double-click and Okay. weak follow-up, maybe downs known acceleration. sequential Good. Just the the ramp detail. performed that on My Can insurance to anything comment forecast? about? And you then relative on Appreciate had seasonality all travel normal nice beyond your verticals. how showed the you

client? large on change comment you can there? in So what seeing any you're Just captive maybe that

David Mackey

Sure.

I that, into last volumes take With travel, sequentially, consistent the include but we me to Let the what in right. respect remains with talked QX volumes QX Bryan. say guidance those and in would does overall that quarter, that about reductions

we have in pressure to do So QX QX. relative

We have company baked right, the the of pressure online perspective, for risk is news revenue. a OTAs in. The QX represented good in QX, only relative to X% from example, travel

digitized in So of terms risk of the bumping low, bottom the that down where make but the as journey. travel And shift hopefully, we're them is as towards level volumes. getting to opposed we're traditional we potential of solutions, clients types kind online exposure and position here advanced and should to think a of help the these AI to with be to and good that very AI traditional solutions kind in we bots along Gen

QX Keshav insurance either in healthy But administration in digital policy large leveraging his their Gen journey, of AI. or one the insurance of and the including a related the guidance to in clients prepared On our terms of remarks, large the the policy that QX acceleration X relationships, actuals side, insurance good about administration journey in nothing captive. spoke U.S.

different So actually a is from completely this coming client.

Operator

comes Jefferies. next Thind Surinder Our with question from

Surinder Thind

you healthy, and context the It just what next idea characterize real the think it's been on with that Can sales or view around the to normal the hasn't perhaps the the change. point? like of start your how over there any evolving this at maybe is but just that material I'd cycle sales historical and commentary like sounds deals see cycle quarter you X? you

Keshav Murugesh

and take more Arijit that, Dave I'll and have So add color. I'll

that normal the is itself terms happening. of in thing X cycle for things first the sales deals, think are there I

subdomains, with are getting deals, around partner normal cycle who to may right? a dipped also months, in to normally disruption changes you happening it have of the sales the are momentum the not of they of the macro X think of help talking with technology that the actually fact people the understands is be of concerned clients, about, And left world new things in dipped I one their around comfort a terms for toes that whatever. and the journey in attempt more the understands the also is some and starting And the particularly leadership of to them whole lot terms and means first-time it's the in out that AI prospect some on to model that these outsources, unless Gen that changes importantly, well have not and this is in difficult their do the looking that of to yet are accelerate people the for have or they're business transformation the digital assume work X becomes deals whether first. who domains Gen particular, fact AI, AI toes right? And they the programs lot is AI and very that cost

that in around reason that desire adding in AI as the the the to an customers a come companies also important momentum deals of WNS from our and changes scores is the the to through And macroeconomics industry Gen world the as So as first foremost. area, of digital the view. point with wanting a space actually that to highest well is for all just to model be as many continues taking point smartest most specialism place a align from outside seen and in with domain probably sales partner, view, more the be want pipeline. I helping as underline funnel well the to actually

for You end-to-end very domain strongly specialism. we've in years together, invested that know

a has of models that models. the transformation has and is and been help The the technology And with with very become as data investing strongly, leader partner platforms that well I investing initiatives very, seeing is analytics and for a in par second guide them as will thing programs, growth, that use that them That something around WNS is now of course. their cost in we're leadership kind their actually lot them who that where that the business to their of can of -- all most the built of this tell that's scores in uncertainty, a people all gives horizontals, pipeline. And all with healthy these know importantly, in and this want comfort work the partners being are era across very trusted time, to the space, who and that's and WNS pipeline some is you and their where that with is verticals disruption digital can pipeline a the revenue in geographies. of manner how new core new is

David Mackey

history you think, the I healthy macro And of was the and doing space if what at extremely of prior companies acceleration a WNS' well obviously, we rate, pandemic, to was growth saw track when were kind the in just right. and the record, healthy Surinder, look good

in positive needing million, to deals, ability relationships existing to $X change wasn't environment, to their remain to traditional ability our a cost million $X the their models, about $X million, healthy our about reduction. processes change in order all it expand macro even was needing It to So customers was close competitive. means which

and through And you'd if perspective, haven't through to first you X now ability in the a changed. that happened our get sales close forward of the challenges move fundamentally we've this more and the see fast peel fact, from macro relationships pipeline under did than we and to cycles deals we've new idiosyncratic those of quarters you look logos the year, you over year. covers signed had, last that issues the past those is some at that last and what them the expanded more I if think we've of If couple have years

been close traction macro some despite in there's So the positive deals ability point, actually of to our political in the Keshav's environment. challenges to

Surinder Thind

That's primarily you of of for are some matter in Gemini Gen that of building the solutions, we then I should or in unique some models or like an it's color AI that think like positioning And it maybe up you've of we about assets. leverage? Or terms digital that think provide -- is that partners, there when so XX and with you the can you mentioned whether with OpenAI think integrated sense maybe something build-out proprietary new additional guys the combination just part helpful. following new you are -- where of capabilities, about Any just these Llama the can strategy? solutions that? or How large of

David Mackey

Yes.

a Surinder. end I are of day, components those the can think right. certainly developed but it's the part that integrated are have technology of we the third-party proprietary, of combination, assets digital be -- there At solutions,

been So that the using not we've reusable customizable bottom we've only create to multiple in those that partnered, doing and do created across domain is something but we an and take able clients. line asset clients, it's specialization capabilities, is that what it's best-in-class whether put what we're is whether is we're or them for something those enhance them,

have to things stand-alone requirement, specific able like We that do can asset assets flexibility sell not as trying in that these we know it's an we're then asset. that a be created we've we modified these and go need So be and to a customer's that. to to create to that

brand would were ones verticals you WNS look of if both and to across assets, third-party at XX the So names combine state-of-the-art as mentioned. as they see digital some proprietary technology and you you like that both well that cut horizontals the

Operator

with Our next comes question Maggie from Blair. William Nolan

Margaret Nolan

changed expansions? engagement a was you nature of the these share of obviously, about you the the things So there seems higher uptick. Can But the expansions an that mean, is of detail bit think idiosyncratic in it healthy majority expansion quarter clients? number I of are wanted with some the ask to like and enabling that referenced. on the overall, I of you in has client level client relationships. of business a any Or your base is anything

Keshav Murugesh

Maggie, a question. great that's

a that lot WNS that, metrics I any is think every the think we time. in terms year, client to a point across and importantly, that of detailed fact each I all lead of and client and recognize to working of don't go breadth engagement is, think enhanced and important every we a as this in implemented pipeline, growth for in I time resulting of make time the attention to strong the company through we went our last of period to one a philosophically, the over surprises relationship people really of one gets of of our want first a perfect interact of any spent very actually on a management storm in to track required us models, foremost, after that And actually kind the has want it's new sure to kind clients, first clients, in existing that. And across therefore, that will and length models relationships right. processes, we programs. of that of We've of allowing but lot and at interesting result increase our more which see very,

result confidence So even result about see, we, next how actually our a great of that that right. strong is year. And think the outcomes that, benefit in I it is starting are I will think, us to as for

David Mackey

is about consistent with Gen traditionally is AI because commitment that the clients automation get with that think the number at into we've RPA. as are have that I look to I fundamentally part is that our and things addressable expands previously. And is them it kind market have dealing we to here that a I move what with and land-and-expand things to within been been give are labor. But obviously, with give of done previously the dealt got pieces here we we've of clients then I differently is part productivity back of clients actually willing pieces expansion pressure we've what And have and AI thing our capability to our the we We've important, downward with in of manage demonstrate additional always wouldn't things because the that the they you're Maggie, to of that approach we're client as that is enable new us technology automate automating in they been think other you're that think environment. And automate pieces that's seeing existing do areas. is talking and business, us of business, of part wouldn't model considered us it let to that there -- while capabilities the think other increasingly about you business and how allow talked very that's some dealing willing to that that's that certainly, seeing that different. other we've narrative goal been

Margaret Nolan

are you ahead, or helpful. work? M&A about and to Okay. that some of And you think then how the That's as year strategy thinking about putting your fiscal, calendar cash

Arijit Sengupta

Thanks, Maggie. that. take I'll

capability. So look, an I think we clear have for acquire will -- perspective, been very always M&A we from that we've

There continues. and on, that multiple evaluating that So those agreed certain areas are identified we are have opportunities in of philosophy we sort internally areas.

overall capital a in continues. Of line with continuing, is course, know something that in a of the from sense, of sort activity where timing But imperatives goals will, company, that's we've our as is have and perspective, we acquisitions course, once our philosophy one and we outlined strategic that -- of conclusive. you tuck-in let a that

that's yes, are. we where So

David Mackey

But I not at that the right right the what right not fit, the to approach we're it. to if think has been price, just asset said, that's add going it's Arijit do the to also

to force remains it. it's that to offerings. holes plug and want the we impactful. help capabilities consistent the at we're assets not day, not But be right improve the think philosophy of fit, terms of I going find And So end that company. in our to the We in our want with if

Keshav Murugesh

one areas the that have think the higher have all we that company mention have take just level. past a messaging the clients to the recent been value-add all that here, I acquisitions in done which the I'll helped in thing our is to And different

We our first not and we company, to the work of make inside sure a foremost, offerings that, in have last strong year wasted as inside done lot order seen core and have are of the consistent. crisis and

been have that added have created new offerings organically. We

Ajit potentially verticals. value Gen whole that acquired whatever is over targets AI to and last X really the do all up move quarters. And chosen said, carefully X capability, few but strongly right, data in we essentially delivered chain analytics, add will the around the we few consistently very M&A last very AI, or years Our more have like this

Operator

Puneet from comes question Jain next Our JPMorgan. with

Puneet Jain

step as of increasing companies Keshav, last the AI AI about AI next cycle? for where been of over the and a lot like mean does X Agentic What evolution clients adoption hearing AI months, in Agentic overall. and generative we've yourselves adoption like in are the

Keshav Murugesh

Absolutely.

is in a inside not point still adopted this manner that have company, bake our Short we from in operations. used of these of you in lots and are this constantly lots time as It investing aggressive because of because some will a all of in of that, that have for longer and I for is core are of try lot. to efficient many navigating in like across are hallucinations tell talk lot reality as that other term, in and there activity over order tailwind that company, some industry with term, order in, also line. say become drive that spoken we we opportunity AI. But Agentic a some movements being the this next a this be we technologies is has impacts therefore, sure to would will still constantly with and the and an be navigated. I a all Street, offerings of and behind productivity building area and make top far time, to AI all years, company. these introduce it years, will numbers investing again, using and actually, this creating expect that are this it, all will the And the that. Long right are we areas it. partners that's relationships X we term threat WNS. our know And model there's about So an to create opportunity at made be of this the working things we the clients to the the you I grow other as of a test how there losses in can being been effort to our the some in of to terms point that of then in term, model beyond external Agentic company into this that bring and more that inside of at result and is order

Puneet Jain

get to WNS? well like new wave And like transition like for investments then be to second, reporting, think the to there given should as normal GAAP in like about this how we as all margins required a new for meaningful participant your

Arijit Sengupta

that. we think covered I So,

I From I very comfortable XX% run a in a earlier perspective, XXs, well. are think mentioned we basis. think we margin as on ranges high the rate

you QX, see we we XX.X%. in where If are are at

run also us guidance primarily acceleration mentioned, driven we operating get due ask As margins, back. But an be leverage Agentic implies a range be market XX.X%, investments XX%, the in XX% around to in forward. significant bakes ability going And lead capability, growth perspective, we'll to continue if as we on QX to perspective. AI the to including the from from the that you -- rate our

David Mackey

Yes. Essentially, no Puneet. change,

that the business. of I historically big GAAP. point, investments is kind your which transition XXs, the is margin seen, point see U.S. from XXX from of the difference low IFRS To to roughly impact can profile is people construct of the which the basis the those make within think have correct, run we we how what you in

Puneet Jain

Appreciate it. for reporting. And congrats GAAP

Operator

question from next comes Baird. Koning with David our And

David Koning

affecting question, of pretty of average fiscal growth that of X%, Nice it going QX kind grow, actually sequential back year, of the it? to the really in it sequential? that looks you're QX a there's kind job. that these my sequentially. better even guess think look just I normal. now of in like usually That's sequentially. Is back, that Is maybe some of what about it way kind you're to you X% and of looks are are the past the to kind first little like guiding than kind I rest normalize way the -- headwinds you not is anything

David Mackey

Yes.

think you're have and is on so, QX any Dave. I QX to from you seeing QX, idiosyncratic think I from basis a issues. what these mean to QX of I don't sequential

the sequential it's online challenges migration from a of basis it's whether the for I us. And earlier, unusual when most the behind year, Internet they're client talked headwinds issue, next the the are of majority the whether travel part, about X%, the on these of on-site behind whether us which client, healthcare as kind So from year-over-year are a offshore, about into basis. it's mentioned walking to we large

you're not into fiscal showing well. showing see good but you for as healthy start what as that think you going up to number sequential start move is QX, of I should see to only example, So 'XX, year-over-year that to up, number

David Koning

type that did all 'XX? then GAAP? And conversion 'XX around switching Yes. mean, the QX. the I X in No, kind in there was help U.S. I And in any strong one of was something in cost there's One about -- you of actually from is, accounting. 'XX maybe super U.S. were nonrecurring that guess flow kind fiscal is, of other great. reason? that's the different any of expenses Was GAAP given questions that expansion cash the margin

David Mackey

Yes. No, I don't think so, David.

I quarters year. think X in under of first for fiscal the this QX, we U.S. GAAP were

from that nothing quarter cash are this a there's numbers So perspective. unique the in

generation DSOs. really was reduction at it the If you in want drove look in the healthy what cash to the quarter, the

year. all year, a nonrecurring healthy reduction expand, what's amount. With drive on XX% spoke in margins run line, about. we've had adjust year. will client, you as level. it's look the coming to DSOs we Arijit you the move if have back, to coming but SG&A is roughly have the didn't SG&A the typically us as SG&A we Similar the the run come now had Related what half revenue So kind challenges. issue large year, down, when only as not half should nonrecurring that coverage helped of level. And because back, what to which first throughout throughout took said, those really at helping first next be is about sequentially, As accelerates, you of it top SG&A margin only healthy the being think the the improving the to respect talked do us hit, not we've margins And especially of We kinds dragged normal margin right? year, the also on the expense healthcare have we we the always the cash the good move with in with as drive we We've DSOs on I profile, revenue growth those cadence cash. That of this side, really are coverage the cash issues the year. XX% in XX% that

and that normal cadence should But in to show profile we So year-over-year year. allow accelerating margin on to should basis, improvement a a top addition more kind us across normal be a growth. line of hopefully the margin to some

Keshav Murugesh

of of want we just about for a pipeline about the growth, excited the revenue hold momentum, more of technology, that, all and our this, as to whole result investing we're are digital our excited to needs I not the sales, add, customers need while as are to And the areas we're branding analytics, going these investments back keep marketing, far as concerned. in and stack, and around

new that because these very to interesting not of while we lots disturbance have terms expect that in brought a of margin want we areas each into mention just and So create in I in will These talent of it we term. in the quality areas will invest demonstrate much to and profit areas. invest in, higher are these of order company momentum a we the are other in for revenue saving areas to long

WNS (WNS) 23 Jan 252025 Q3 Earnings call transcript