G - Earnings call transcript Q3 2020

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Operator

Good day, ladies and gentlemen. Welcome to the 2020 Third Quarter Genpact Limited Earnings Conference Call. My name is Michele and I will be your conference moderator for today. At this time, all participants are in a listen-only mode.

We will conduct a question-and-answer session towards the end of the conference call.

call recorded this replay reminder, a is for being purposes. As be of of made the replay archived Genpact's call section The IR will and the available website. on Sachs, the would over I to Investor turn like to at now Roger Head Genpact. of Relations call ahead. go please Sir,

Roger Sachs

you, ended agenda then everybody, the welcome quarter, was Fitzpatrick, September our back a We on and you your and updated for follows. third some be for update good XX, to as are our will results chance afternoon, to provide walk IR financial our questions. section genpact.com. the comments. XXXX. Tiger website, strategic today's performance had our as to which earnings XXXX. we posted our come well call our discuss and outlook Today's will earnings Tiger Ed to for CEO; take initiatives. Michele, you for Genpact's and results Chief Thank Tiger Then our and our Financial through will will Tyagarajan, quarter the release, our provide an Ed Officer. President on as review will quarter overview hope of Speakers closing of call then

about last to call hour. the expect an We

actual release. Such forward-looking Some in forth to call number such forward-looking cause uncertainties statements factors differ press discuss of other in of involve materially and those statements. risks, in matters results will are are the could our that a we from today's forward-looking. These risks uncertainties set and

way to release our in believe turn we website. Difficulty] of the that, to provide me our [Technical to financial our certain that the over section during understanding management we posted GAAP the non-GAAP measures Difficulty] the enhance today, IR [Technical call of to information with earnings call refer views And business. addition, let today's to In of the will additional measures Tiger.

Tiger Tyagarajan

third quarter us for earnings Roger. XXXX for and call. thank today afternoon, our everyone, Thank you Good joining you,

Our to our essential demonstrate results continue and business, resiliency solutions. quarter providing the services better-than-expected third of non-discretionary

even transform deal our partnering the Services. growth and closely our and are with to driving new models in overall normal, to Transformation clients digital re-imagine with more operating We their business

new Our accelerated existing have and expanding relationships the quarter. wins through logo are strategic

invest the including recent at solutions with acquisition in growing builds to experience deliver center. commerce in that continue digital Something customer our We Digital capabilities economy ability and our being experience of on front end-to-end to scale,

We deliver have quarter. realigned cost performance our for expenses to our and the discretionary margin

teams. has the of been of our All on foundation global this execution tremendous by

Global quarter, constant up during X% basis. $XXX total constant $XXX currency a a revenue million, currency Specifically was the million, on X% was basis. Client up revenue on

revenue The design new adjusted need partners to on year We uncertain. to high only coming up ever, focused help last not an than us the agile with margin our new was tomorrow's of reality, Client led interlink compete With but opening business verticals. are XX% more share led at and insurance models of to has new position rate by Client quarter. portfolio client the of third current growth during year-over-year of approximately industries per than fueled $X.XX. multiple large operating income this also also opportunities complex This Global an transformations. deals a adjusted less crisis, life XX% Global based, during broad XX% now quarter goods, This healthy our areas. by consumer XX.X% and retail, tech in earnings grew inflows double-digit healthcare, diluted pipeline delivered them remains hit by pursuing compared from global digital almost and business of the the clients, hardest our revenue is sciences, Facing more environment transformation mix increasing overcome today that challenges, to effectively clients world. since many to highly them for

and with of an service processes and and with chain risk many connected driving financial change collections buying customer finance in organization. are engagements, crime centers, holistic to accounting sales example, of multiple entire operations, throughout and reimagining these supply we For banking. In

design to fourth, digital representing as that clients in customers, our see our that are financial services grew such online XX% solutions, approximately Analytics, first, which at consumption and CXO they trends every real-time an driving financial predictive change We their all the help X are technology chain, part the solutions in contributor services experiences continue to areas, fifth, for improve again, include to short- move analytics; growth Client's Services exponential trends and supply of delivery; in second, and users to Transformation analytics, both Transformation revenue and solution industry; and creates connected need the accelerated employees. Services and for to Transformation an every focus today, from was and XX%. and shift than cloud-based consulting, that growth is crimes, outcomes solutions; a analysis. services Global Rightpoint of These our and offline planning significant to and the of more Services superior key businesses. deeply experience relevant long-term of once demand business, drive our are a to third, conversation: These across virtualization human-centered

few me a examples. Let share

personal fulfillment we relevant combined from data, than care inventory more forecasting media social sales growth products data. predictive improved drive by leading to For insights with traditional accuracy enhanced digital a and through XX% company, demand

and to For leverage multiple AI, to overpayments algorithms and proprietary clients, in post-payment new RPA we suppliers. our minimize solution risk audit recover

client's client, better a our process AI healthcare. driven that on which insights platform, healthcare and machine learning and of applications amounts to produce data we models cloud-based XXX understanding unstructured run includes drive of technology deep to the our huge to domain use For our

referred customer including automate and many to One The interactions of to launch consumer e-mails advanced our service superior banks. process, of solutions customer solutions end-to-end quarter, Last nature. the complex and satisfaction exciting delinquencies, most decision more multiple more and of want in down for Genpact cycle also I drive Cora and convenient in channels, we These parts the of banking are with AI chats. faster recent resolution particularly of share updates large times, through the solutions. use collections elongation analytics to for that losses calls, deals driving had customer up resulting

the As are seeing some mature of these deals decision pipeline, in return we normal. to making

see new demand particularly wins. relationships. in well last Transformation Year-to-date, an path This several new deals is which the intelligent awarded We're solutions, logo in as expanded of subsequent great for our where Just engagements with great contract to has scope a large new also been over than few logo we size X the weeks, have medium we momentum deals, value time. as the longer wins XX%. led to that Services, to these up annuity-based historically expand operations term more demonstrates conversion seeing

that picking towards cumulative lower than a year, are we While same encouraged stage early At are pipeline are levels now remains conversions last than with normal time, record the our pipeline up. greater deals. bias still bookings at near

had double-digit combine we this with a shared revenue healthy of are of to next as I by you growth we year, the rate quarter to If number return the last quarter. fourth believe positioned in Clients maturing well Global deals pipeline,

gives industry over which low-teens accelerate their growth double-digit the in us clients in verticals Global every in Clients change horizon. the need to expanding to businesses, also Additionally, confidence our for is addressable our to medium-term of returning market, total

and demand strategies, particularly with our and clients increasingly risks, chain focused crimes cloud continue today, relevant and that Our deal environment. services. ecosystem in financial investments expanding our prove digital irrelevant in the and as to are business partner for end-to-end and they supply commerce areas solutions services, challenges X services,

Let some color on me give these. you

helping we and operations strategies that our to have scale. speed expertise solutions services, cloud. to domain more core and areas and solutions deep doubled of replatform cloud we all our cloud clients strength, First, clients implement the In and our down develop our that using on effectively strategy implement are helping

Just this solutions scale leader new help have cloud in reorganized quarter, the we to offerings a services marketplace. our cloud and under our

the and retention growth reps provide providing asset degree a visualization for As an their we cloud, for global that them. ecosystem drives sales field customer an firm, example, view analytics a to them with enabling a interface engagement developed management clients, and on superior of built XXX

in supply seeing with XX% supply more dramatic online, chain to have since agility demand shift better diversification combined build we end-to-end well. there only momentum driven clients reevaluate services to than supply our XXXX. with great is risk forecasting, significant and planning preferences consumer Not the pipeline up current The Second, more in are but their changing rapidly for as chains. required a to businesses much fulfillment, environment has and need

automation, and and supply and develop a fulfillment, completely robotic customer end-to-end orders advanced example, company, redeployed analytics and chain predictive - information process network deployed to drove For from sales flow, planning, optimize to global new the for order have improved we which models fulfillment satisfaction. we cash. We redesigned manufacturing to utilize CPG

we industry importance scientists needs. almost address Third, pervasive. and laundering and seeing anti-money areas digital deep With domain beyond of monitoring and institutions for industry, are growing the our becomes transaction expertise, fraud, experts clients in to risk team increasing financial every commerce are crimes, address the more financial these just fraud solutions as our to to of developing data as-a-service

in the and digital example, using fourth, regulatory crime accuracy customer their solutions digital shift to AI order deliver connect global payment compliance to models, improve experiences. supply the financial a machine commerce, we're for online And learning also and clients For online chain detection to and and fulfillment, bank, in planning, growth we of enhance great helping experience.

of We our capabilities experience, our TandemSeven application development. Rightpoint. acquisition the consultancy and commerce, the enhanced of experienced by followed firm mobile digital and With firm consulting acquisition customer

capabilities commerce with With innovation, office of acquisition organizations. Something domain experience have model combination Genpact's the in digital front-end the a significant The to something end-to-end Digital's deep we where with design back our and digital, work anywhere to the from digital operations in strong experience capabilities a necessity In middle many powerful world of commerce. for embedded recent and solutions a Rightpoint's bring is enhances ability already marketplace. added

not this but are We only clients embrace adapt, change. seeing

through a on This long-term business level XX,XXX needs, delivery meaningful offshore, actions, models. work-from-home remote more longer solution, remote own This considerations. transitioned but delivery model, continuity freedom just workforce early the based flexible disrupted work We a up Our of short-term to near-shore successfully over and be preferences, in onshore, type of more decisive global models service, performance. to the business no service and working regulatory plus of employee many maintaining and envisioned a a were and and productivity opens we is client degrees model. of hybrid future

to our to returning across take a continue We global deliberate offices operating footprint. to very approach

only workforce our more our on continuity Transformation Services deal, us. our to global clients. of has to new returned have long-term for a business and of months. to we this we've sales inflows, these have the health many we've drive them our safety back of objectives solutions future less capacity, resiliency helped and high global Not But and growth. delivery through framework market will I'm decision unwavering than that our XX% and revenue dual in confidence opportunities X always of our to very new the the past clients our navigate R&D China. the at including us model ahead that in XX%. based pipeline. historically The new marketing, challenges times. teams With grow of started and service Our has full proud our several taken commitment been the than ensuring reinvest to top-line of of to have and teams help continue also most come to office, demonstrated That energized been leading capture these logos, of we gives visibility, has to pressure tested the of Currently, better extraordinary us bookings

over the We adjusted adjusted that and that, we and tremendous outlook. our full now compensation call operating pleased we the I'm employees. that in With in margin year the incredibly freeze put lifted place with the me our efforts raising Ed. on income top-line of are let to also recognizing earlier turn performance, increases EPS year-to-date XXXX year, our

Edward Fitzpatrick

and driven our on in XX% year-over-year, in and Tiger, was solutions Client large results third an to full I'll Global –over-year, pleased Client revenue in Services quarter afternoon, of both more growth expected shorter continued our an reported as Thank grow Performance in basis. such currency growth chain. by well cycle $XXX our financial outlook. as by see a clip. at as part for up businesses. demand as our our total better really GE than Transformation both expectations currency in Services and supply areas I'm was represented as revenue million, Transformation both constant revenue, was our good X% driven year Total which everyone. better This you, increased in than XX% the FP&A basis. than exceeded review Today, analytics reported by X% and provide performance expected revenue, driven quarter constant Global and and year to

started year-over-year XXXX. to from X% income gross last from the more million, than the year-over-year, $X in than and more XX We Global project with the driven period to third third The from XX.X%, was to due with million $X of we the period the banking due adversely resulted environment. annual the $XX million during up of $XX current The margin the reduced impacted last of $X grew year. macro revenue quarter During to that a Global but quarter the sequential by growing clients utilization XX% expanding spend of margins $XXX due expanding quarter improvement to than million XXXX. from XX.X%, This quarter onset last efficiency as the decline continue in from we was expand margin $XXX Client were million and $XXX COVID-XX. well quarter, over primarily largely relationships level Adjusted declined uncertain of and better improved included quarter, in annual of was we to basis GE revenue our second XX-month from $X better to XX, as million since bit Client million annual ended September improvement number the relationships, IT revenues the initiatives expected. revenue operating clients size million. with million points

the Gross actions XXX lower higher was work driven as driven in as year-over-year, recorded sequentially. we moving This is COVID-related improvement quarter, the revenues impact actions. our result income. the of was client earlier primarily for million year the improved sequential The XXXX banking utilization, challenges by that restructuring related points final $X restructuring markets capital by the the well set Services but related points the cost adjusted staffing to During up XX.X%, quarter margin plan. and and Transformation a a excluded XX beyond operating reduction vertical remote as for to of within our of charge we our felt was from basis approvals basis reduced

points to advantage of by as year, loss and travel $X.XX give increased bridge, To negative Adjusted cost percentage XX interest drove impact a a quick basis opportunities. year-over-year driven revenue, the well was tax and EPS basis expense higher FX of able remeasurement. up year-over-year, quarter an FX take related of X% million investments net initiatives As the largely million expenses of or a of SG&A impact points we sequential as declined by containment income basis, you or impact dial to compared $X.XX On SG&A expenses net growth year-over-year, lower total the be expense net to gain flat negative excluding long-term quarter $X XX remeasurement up of $X.XX adjusted as a last increase of a $X.XX. operating and third to the of a during offset $X.XX was during $X COVID-XX.

expectations. normalized rate year. certain was during a jurisdictional The compared and favorable largely rate discrete tax our than aligned rate year last lower with XX.X% current rate mix to effective XX.X% to the was of The was Our more benefits. year quarter income our prior due

the offset million million as cash second by of compared purchases a share cash equivalents free our $XXX repayment, flows. cash sheet million of to $XX quarter $XXX Turning million million our our million, to $XXX Cash totaled was of revolver and at $XXX and $XX the flow end dividend balance and payment.

to Our the X.XX end X rolling the ratio compared of at last net was second the quarters for debt-to-EBITDA quarter. times X.XX times

on the our this strengthening have stable in liquidity our outstanding balance approximately facility. now Given facility we market We $XX outstanding million conditions, million more of $XXX another and repaid revolving October. on credit capital

days improved in due days last the $XXX income, period payments million to reduced The lower tax in driven collections compared same adjusted during compared During and million cycle by we and improved XX time. from higher $XXX time increase DSOs improved we to operations billing the the the quarter during DSOs to sequentially quarter. quarter, to was year. an earlier generated initiative during due second operating cash of XX the The off cycle reduction the year. to was kicked

We with due Capital expect the year to to a level during revenue. quarter, compared second capabilities, to and XX-day of percent work-from-home capital COVID-XX including security. information of information revenue year, was low the a this expenditures approximately to the to for be expenditures the X.X% in full in X.X% DSO of expect our exit support X.X% related third as quarter the now investments year range. higher technology We

capital During $X.XX quarterly million the $XX This in regular dividend shareholders. of quarter, $XX included form share. we the million per returned of to of

approximately at repurchased during total shares, price XXX,XXX million also average a of of share at quarter. per the $XX.XX weighted $XX We cost a

have the X.X by shares in we at our share per of program share $XX.XX million for approximately we $XX of repurchased of price shares billion. $XX.XX October XX $X.X we XXXX, buyback repurchased this million per totaling including price at or shares million average October. repurchased initiated XX%. share year-to-date $XX.XX share reduced period, we total weighted per an in net our $XXX a Over We outstanding million at million shares Since average X.X through XX, a

million share capacity of under program. repurchase We our $XXX approximately remaining have authorized

full approximately of X.X% from expect basis to to to now Clients than GE provide up This currency now reflects stronger prior full-year outlook. XXXX range initially X.X% from grow an on our anticipated Global X%. update a me results you X% both our constant our year businesses. and with We XXXX Let to revenue

expect Clients, X% constant a growth expectation of of Global basis, For to now to currency up range on we X% the in X.X%. X.X% our prior to revenue be from

prior X% approximately We revenue our expect a to to to of decline GE of year, the X% compared for decline expectation X%.

Given margin estimate we full-year up operating our of third our XX.X%, adjusted XX.X%. strong results, from approximately quarter now be prior to expecting are

in we up R&D dialing As normalized to more investments and levels. our are marketing mentioned we selling and the fourth quarter earlier,

beyond. XXXX We margin expect our path improvement to to deliberate of return and in

overall also with I'm share now terms with business from how We've only Comparison approximately and per $X.XX drive up This prior declines, to we're are talked resiliency generating be performing pleased $X.XX industry X%. but clearly to outlook, demonstrates for improved is global $X.XX, of per to of services. GDP steps took teams our and year business our our full our in to estimate to many model. contain nature the earnings of adjusted this seeing business U.S. between growth, Given estimating year the decisive share shrink utilization about not often the really top-line and the climate, expected $X.XX. the to X% our and in the while costs. recurring nondiscretionary of

growth that, our result, on margin positioned a focused EPS are adjusted and call drive well the XX operating we year-over-year. attractive As turn adjusted drop me basis continuing going back is forward. And to Tiger. to With expected let points to only fully

Tiger Tyagarajan

Thank Ed. you,

Our our year culture of demonstrates embracing performance agility this change. our and

Global with we who operational the outlook among We being structure time, and reputation innovation X% of the in constant full-year our to client At a be cost partner, Client same allowing year's of best the to achieve innovation, investments align trusted flexed our We leads industry. close year excellence. given our the with better frontend margin evidenced growth have currency while environment pleased approximately transformation will us by expectation, to have a centricity, and increased in activity particularly filing to adjusted I'm back to our date. growth R&D. in as original changing step-up the our trajectory, income patent an this bringing operating believe

Global low-teens see to a expectations growth continue double-digit medium- we towards Client to long-term look future, unchanged to we our be rate. As the at

after drive than With our the of with chain, confidence journeys strength digital beginning clients. change; of level Our to great supply few of financial few we Roger. pause and and differentiation transformation seeing: have extremely choices million risk, today's X, our strategic proving by a in we come greater $XXX brands; strategic continued such relationships testament are and a commerce the X, are call crimes of growth X, and $XX new million compete the for and acceleration CXO transformation last deal beyond. well me clients; over momentum organic years X, we months. world. signals our turn our conversations value experience to to an X driven business to logo closures increase is the our back and a continued feel be and services acquisitions, for wins through The the a to stems an relevant XXXX in large digital of from and investments back We hugely made positioned as have let in to model, we drive The that, heightened

Roger Sachs

Tiger. you, Thank

up open Michele, instructions? provide Now, you our please to questions. to call can I ask for like the your I'd

Operator

[Operator Shirvaikar from line of Citi. Instructions] with the Our question first comes Ashwin

Your line ahead. go Please is open.

Ashwin Shirvaikar

Great. quarter. Congratulations. Hey, guys. Good

Tiger Tyagarajan

Hi, you. Ashwin. Thank

Ashwin Shirvaikar

conservative. assuming lower about at that and XQ not the margins. first is, Are glance, it should the though. What decal are there you're we though Hi. a consider does as It am the I that top-line like seem But at in right missing? you I know also brought question factors a up away? least seems apparent quite full-year outlook for outlook. I this had year

Tiger Tyagarajan

No, of all… Ashwin, I mean, First

Edward Fitzpatrick

ahead. Well, Tiger. yeah, go I think - Go ahead,

Tiger Tyagarajan

that conclusion. kick would Ed, much just add and doesn't Ashwin, say, then are I we you to it off, can uncertain to in an take it. environment. me come to It let Just

is that looked by we are like ramp-down and that set at some had think X, And of GE, and clients of some number benefit some that it the which of work the a face. we clients I clients, to is going of X, the don't GE quarter So we we banking environment a QX. some clients through and in driven Number of gets COVID-XX, our to the surge environment did in a partly particularly, reflection we had X, as repeat. completed want environment of, other assume for

in We cycle, So rolling business, that about cycle, XX-month about really in a annual our think X a to quarters. the important think I really an Ashwin, case, we our quarter more most thing, any think is don't quarter. business

So many necessarily I around that, QX. anything wouldn't Ed, Those want easily. to as… on want quite to move draw numbers hit add as between conclusions too you - to well to QX and

Edward Fitzpatrick

I mean, I just compares also for year-over-year think also the too of was the last growth tougher. QX year in too, right, robust

Ashwin Shirvaikar

there again… Right, right, was once conflict, some

Tiger Tyagarajan

And we again back - R&D, back well of the have we for brought on our early compensation both have sales the And or had that through we've which margin we as dialing regular started salary days we COVID-XX. our as and dialing and of up marketing middle. went in quarters paused stopped, increases the as two

Ashwin Shirvaikar

of I flow sustainable be were from so And Understood, the of you revenue there factors call conversion cash And from with first thing the kind onetime pretty that. also if reflective that this that all where on. to kind type ops it other standpoint is and but or strong. you can understood. is then affected wanted of out, ask Got basis a on any of a

Edward Fitzpatrick

pleased going the progress. that. going a much capital to to But is bigger be quarter, during But the with of happened mean, in normal would this improving for right impacts, in a for even working quarter the growth cash also part teams year macro lead an that. right. I'd which to credit that flow working capital just right, normal, year-to-date is obviously, be which I I to is full happy and full XX% we're for year, cash so likely terrific a would growth outsized think I take is than the think growth year. likely DSO a that QX, that. the year flow is indicate now, our to tremendous. with, impact it over for for based that I'm be like upon picture you of normal less Right to

be with and net I to ought clip in double-digit said, cash as for we typically, line So in with growing around right, flow. income

we're the the that part - balances, of is biggest excess year-over-year in receivable by growth of being So of the that part to working related well biggest driven comparisons. capital, that

Ashwin Shirvaikar

Got it.

Tiger Tyagarajan

But, some well. credit execution will take Ashwin, for well, we as

Edward Fitzpatrick

I [indiscernible] in that.

Tiger Tyagarajan

with We the performance. flow cash pleased are very

Edward Fitzpatrick

Yeah, yeah.

just… Sorry, I was

Ashwin Shirvaikar

Right. No, guys, that's okay.

you. Okay, thank

Thanks. deserved. Now, that's well

Tiger Tyagarajan

Thank Ashwin. you,

Ashwin Shirvaikar

bye. Yeah,

Operator

of Thank comes our the with line you. next Koning Dave Baird. from And question

is go ahead. Your line open. Please

David Koning

guys. Yeah. great Thanks and Hey, job.

Tiger Tyagarajan

Hey, you. Dave. Thank

David Koning

so do kind work guess, the Yeah, X - and margins all, kind months just into I so of maybe, crisis, of really, pick that first this? to observe been we're COVID now the of you to kind And to that have about or what able the you're see what question up, benefits off? through is, to you long-term headwinds revenue yourselves starting and this seeing of X

Tiger Tyagarajan

I asking. to guess, So, Dave, say benefits you're what that's are COVID-XX. And, be not I there of wrong it will think that

and and has of the all available. think business digital flow leverage things. of information have using of think technology, the for number flow, I technology, learnt all the for been we've both for - I a doing world which work collaboration transformation, businesses One,

change have of a ever path dramatically. has the learned, our on to I think that lesson And great going think the think learned. change. would have that's be clients has accelerated don't world I And that learned, that I we

assuming And to that clients have that not we of taken not we we and be solutions that normally predictive accelerated not accelerated is time, that serve, and any of at X good, staring moving pain. years, and change all an make an analytics, the and for The world path insights being we the information mistake do uncertain services through would how change on here. are middle access in of demand and has anywhere to digitization can going any but an cloud, at device. are happened from transactions that the that So of of the on businesses of are now the let's serve, are that able

think bit two a of it's a tale cities. I of - a So there's little

the to think the crisis, match there's get come of and of actually say, yours, collaborative As to mix way ability would that; it and I forward more world all actually looking and you and vaccine out, more we run and normal do one can so world take businesses more the much much, all decision we the making. from really with much that where back pools, a through let's speed have to learnt used so a is to the comes delivery, so hybrid hybrid learnings

deliver our So, ability things value to online match. again to lots things opportunity the extent that and clients. an to going is the learning lots impacts And It are find impacts of will the successful, I'm to technology. mix acceleration, sure which to great an ability that that. our so be to that leverage like of It world impacts

David Koning

maybe Something contributing. you Thank were quick great. in you I it much acquisitions as comes just Rightpoint, one just anniversaries was how expect in Digital QX? do just think QX, - how And Rightpoint one, Great, on and and I think, then, much out?

Edward Fitzpatrick

the Rightpoint kind The of No roughly XXX change, before, almost for said as equally. was of right. of impact year. Rightpoint, about company points think, about growth impacted we consistent full we with I what basis The both talked

is you're in. And So I November, at percentage when anniversaries that changed came all. think, end that of right, hasn't Rightpoint

right. you're So

David Koning

guys. Great thanks, Well, job. Okay.

Tiger Tyagarajan

Thank Dave. you,

Edward Fitzpatrick

Dave. Thanks,

Operator

Huang Thank from next of question comes Tien-Tsin you. the line And our JPMorgan. with

line open. Please is Your go ahead.

Puneet Jain

in my question. Puneet this is taking for Thanks sitting Hey, for Tien-Tsin.

Tiger Tyagarajan

Puneet. Hey,

Puneet Jain

not deal again you of activity saw everywhere, we what earlier. back So that mentioned this time in and Tiger rising improve now decision making clients enterprise you lockdown cases a around attribute and many given somewhat uncertainty Are countries continued March April? in shock delaying like versus ready to with would go

Tiger Tyagarajan

different, No. Puneet, right. the very is world

to work actually said, I as home. services our businesses clients predominantly and in about was everyone a find let's up then, each home, XX% Since a their clients, go I'm talking world from had rush we to as deliver way time the or you If and the other running to clients order environment. that to home, ability and to delivered remote our our to back well from our to infrastructure continues working we've been and to, as call first it, business be from transactions in March set the of

now chances many action deal no people and you it change. Other than been countries, world push to you if the this in coming continuing out needed with had in plans second wave, have maybe what there's year. than office when any no that, back to is new described other doing, for of there deals order as So to the

So So have impacted therefore, work-from-home, how client with a huge and doing say going from significantly and home difference. making. home? deal I teams that's that's leaders I already would working And distracted what because with our not they're into been decision do

that lot of pre-COVID that at thing time other decision an The would our in a things clients belong that was era. I making pipeline to with era impacted call, the

Now we're change that it's that us, it's want sitting drive continues. in they thing and to with tough people the discussed have pipeline, on that

parts are situation now deal wave a think it's X. in wave with compared different very X, I of we at So world some the to as

Puneet Jain

like someone Assuming continue service makes It over the there from when And like higher is of That benefits medium-term? think we the office? any not about profile world, should does. be work-from-home? it. like there'd delivering are home were quarters margin expected mix that Got How versus sense. in post-pandemic from margin to this

Edward Fitzpatrick

work-from-home in forward difference how impact We'll a there plays in going out structure benefits regard. from the and going haven't everyone's the we kind see money profitability. maybe saving But you're be the forward Yeah, we what different big looked and - going office. to was at big costs, seen of like, as of in information, home it, work information we technology cost the connectivity, on, office. near-term from a security, we've versus at including that But looked that not opportunities working from in that all working are terms initial see thought on don't

I knows it's the couple big - everybody one is the for part of most has last quarters. one that traveling about think travel. the No for been

to that supposed return. that's be we'll So something

roughly, us, of almost spending XXX it's For year-over-year. lower basis points,

will partially that come in to that's back in XXXX. So XXXX. one that the back extent But will not it the come we it that was expect

Puneet Jain

Thank Yes. you.

Edward Fitzpatrick

really I time Services thing growth, high in remarks. about is of took other the The the at sizing utilization will saw Utilization revenue at We I delivery levels, my while the team. right. is down we mention talked prepared Transformation same

where in point analytics, them point of quarter terrific getting to a at you levels, where that's where people the a got place the pound deliver to are So we places get me - growth place where high so the make some to talked wise, a penny growth to there's like too we going realization almost saw heard want about don't we be foolish, really drive sure and we as forward.

maybe But, you good, almost in that a at we're will pleased with we're So certain level is if too areas. at that that. looking

Puneet Jain

Thank you.

Tiger Tyagarajan

Thanks, Puneet.

Edward Fitzpatrick

Puneet. Thanks,

Operator

comes And our from question with Maggie of line William next Nolan you. the Blair. Thank

go is open. ahead. line Please Your

Maggie Nolan

quarter. Nice Tiger. Hi,

Tiger Tyagarajan

Maggie. you, Thank

Maggie Nolan

Tiger, you pipeline over that? you the in had then expect quarters? conversion. pickup Can driving what's few next mentioned to about that talk continue you trend And do a

Tiger Tyagarajan

people there is, how So said, say, wait, said, close this was what to actually that's settled that number deal make card could Maggie, we the a would fraud, with pause, Once I basically if of you're sure particularly watching when new almost, and I that could that deals, world. do a a exception, actually make environment. could clients driving down, on books, people that what's could let's in people for, credit without work-from-home know sure you as large transact,

some was this, needed now In do all as conversations want done actually, and people world having, that today's else. I to sure cetera. want few to the long Once chain the cases, this went okay, in done, et want do people were valid make down, conversations were now prioritized, et supply when to be cases, many something work, in to continued accelerating faster. and that to I people don't cetera, they settle I and pipeline, get through You as because actually, say, say back those in a cases, that they

earlier how dealt a it. do with to is no it it's question, bit I've is So more It with little the world? this deal okay, I

to Now, actually would I help And need And to let's requiring of that digital take say, has that I taken client decided the to industry. to decision way, accelerate run of business irrespective XX% just my what its base that's has do by I transformation, want better? I need our It do that the to XX%, a for forms, a that capability, but mean, in others is change you like wait depending change. because industry, need digital the partners than and different now stay accelerate journey. to rather you change, that transformation means also does on X-year and us here number

Maggie Nolan

the And opportunity may were about you new in for then clients? said the accounts you weeks how these awarded Can meaningful these large here. long-term or talk think X Are these of become? last couple you I deals

Tiger Tyagarajan

client I new of Yeah, is existing one a X are another to go back of client. say, I would them we the clients. client. had new them a was quarter, if And previous

pandemic, as I said, new deals. the on through we've logo including wins had So large

the and on. virtual we ended, hiring and during started so and deals fact, virtual and in transition In pandemic are

So relationships, deals have making both new progress. we deals as large well existing as

belongs ended XX% make higher as higher that didn't after they actually because have the pipeline. about didn't companies types mature overall Now, definition, are described client to of make through by up in sense, And time that industries, take have I our early they will does mature, our but else to of sense stage a COVID-XX. they also that only the to some to that those belong those either of as progress distressed pipeline, priority. became because industries, things basically base that deals are come And thankfully, in something deals bias they because replacing less

Maggie Nolan

you. Thank

Tiger Tyagarajan

Maggie. Thanks,

Operator

the And next Cowen. of Bergin our Bryan line you. with Thank comes question from

is line open. Please Your go ahead.

Bryan Bergin

you. guys. afternoon, Thank Good

Tiger Tyagarajan

Hey, Bryan.

Bryan Bergin

- in slope wanted the hey XXXX. wanted I ask ask I fiscal on recovery to - to

more Is of the by assuming? of maybe double-digit Tiger, in function pace there ramps but recovery? a you're in I deal progression think Client pipeline, Or was come commentary it here Is large on So confidence obviously sooner? this these growth this could the positive you that some greater that Global return maintain the deal this XQ. of

Tiger Tyagarajan

is No. Actually, very Bryan, mathematics, of natural business. our unfortunately, it

So deals business. had a called the I'll to fact a Deals quarter-and-a-half mature already our of paused. start slightly a pause, where business the through say were saying pipeline. because is to that close let's the a by out - long quarter-and-a-half, cycle you I

kind supposed to whatever that period, - - back through a flows was the didn't back replace is normal XX-month getting when What is was into of normal, Now, happening In to can't impact revenue that obviously pace happen paused. over comes period. to you happen. what not

that's have time those in, so X. deals as the then mature. new take come I X, to So that said, of some stage, early

I'll say we as comparison into had comparison, one first that works. COVID-XX. COVID best We And or of that's before XXXX a So is QX. that mathematics amazing which the the then quarter is natural how we a post-COVID will of of last an this thing be the And to year, happened. to next the and X, going quarter have before when quarters kind our COVID, compared is get through

obviously, But get we you - maybe the year. we Ed? obviously, to more detail So February. can describe as we'll cadence next But as get Bryan,

Edward Fitzpatrick

that ramp to in - year, just sequentially good to So GC, revenue, quarter growth year, it we to as comparison the was by rates at when up quarter quarter. interesting growth what prior you is XX% we ramp and do XXXX to quarter. more for Tiger not each in terrific to the with of is and also Tiger Tiger, in the he How the are right? QX fourth to watermark just added ramp mentioned growth because time about GE, terms year-over-year sequentially, do way high going we expect in last expect look for progress of color but it, the that a Yeah, throughout quarter, growth year-over-year providing right. the We said growth this to color, GC get

now but in we're doing looking I'm pipeline, at as up So bottoms historical planning our it, looking we're We're the percentages. process, at at modeling. doing the planned looking the unsold

each to more QX up QX the typically sequentially to through then, to X% in somewhere And back in to from with that's thinking, QX a to are XX%. we'll come So to going X% that as we'll expecting But X% we QX, to I'll decline see expecting a reduction sequential traditional build change. it not quarter view QX or from and give of from February preliminary we to see specifics. QX our we're call you in - of general, kind see

based and a we So is forward, sequential increase GC think quarter each expecting flat, going for down upon year. typical. given where to that We're about just expect to XX% QX in single-digit QX, easier be right. this QX? are compare, We we we what I QX does that the mean an QX, QX X%. year had that maybe last grew, decline in or increase is roughly then X%

we're you and there get expect year we'll What And by flat that to QX we double-digit. that that double-digits expecting to QX, level. at So then will down Again, meaningfully be this had more then all that's expect to closer be not next that year a is mathematically February roughly QX, QX, up get than at kind to in QX. they to in the to that get the GE specificity. ramp means expected be to because GE that talk GE as where how we will high the year more going mid-single-digit around are where and pipeline for upon I time QX On upon wins the of go this heard we GE next we're watermark QX, year, GE we into is get more GE, from of we with XXXX. quite down about improve think, get similar on have, be to we down is to color just this likely by bit up. a Tiger details based But end with to year, in more based still will the

rate said then run in each when we roughly because point we next the year, forward, the QX So that'll QX going XXXX. at to be to expect be I and be will a flat, it'd down double-digit to of that for range, get improve somewhere quarter

that aligned kind growth a to bit year roughly the just this described of right. we're comparisons. but X.X% we We'll year that We gave we'd second a for a detail higher because What than largely in the I to that trajectory, the year, you So it. with We'll year, end I half space the year-over-year X.X% means the at does the X%. lower different of lot mean be way upon totally should said of It be Global next of begin I growth, year based think, likely X.X% Clients? there. in

provide to a there. - Tiger, think that I would color of lot that's anything could, add

Tiger Tyagarajan

deliberate Bryan, basically, perspective, in double-digit And steady back we deep we Global that. in from back deliver set what a the No. it have margin says our are return And line to very growth. of to have a confidence end, medium-term still and cadence we is, low-teens sight to as Client we

So pretty in the we COVID-XX. now about, for that are, world. It's solutions we actually really amazing fact, of where relevant of good before we have these choices some feel made we some today's is so

Bryan Bergin

Okay, thank you, guys, that for all color.

Just want to follow-up on analytics.

where Can penetrated talk in across can think that So about you're this yet? and you gotten business where growth other areas with has the certainly haven't you. been engine most cross-sell into just for really you that verticals we or a good other you

Tiger Tyagarajan

pretty So, actually, for of Bryan. about one analytics That's the us. interesting things pervasive, most it's

predictive services, of in better of match transactions, years credit demand manage then, that financial So business prediction it's that's fraud, then, as is start in to And management, business. scale real-time let's supply. we for space. space, the well for with scale management a forecasting making we laundering, better actually What consumer as many the a and for better analytics better are into institutional been supply you world prediction forecast decision all, the receivables, risk. analytics, up, ability of first receivables working ability with demand across - for And better us, money of to on starts the move inventory, supplier quality both capital that better those two And the seeing has helps it true And now. in range a are today. chain,

to have better insurance, insurance getting deals a actually move are price. faster, You you worth chance the predict of better closing because a which ability to

to the going very business help use outside to in of that, digital as finance along CFOs, company, technologies one And forecast company better, a digital analysis of and after data there of company can bullish intersection data in are from with we are planning leaders with shine. domain, a real-time and the really group, of understanding and So, we analytics, help they deep leaders get more finance, plethora space run but the technologies of just through the so world, insights, where and business to all then technologies, is space and and accounting very digital you more that space, and the provide within plan and the better, about the and that's the differently. after of that financial to to feel and the both realizing and

Bryan Bergin

you, guys. Thank

Tiger Tyagarajan

you, Thank Bryan.

Edward Fitzpatrick

Bryan. Thanks,

Operator

comes [Operator Instructions] of our you. with Thank line And Needham. Mayank Tandon next a question from

Please Your line open. ahead. go is

Kyle Peterson

taking our evening, good Kyle questions. Hey, guys. Mayank. Peterson is This actually for Thanks for

Tiger Tyagarajan

Hey, Kyle.

Kyle Peterson

on-site. to we touch bit April? versus I like shift see between delivery XX% now lockdowns to saw what - about like to remote additional of right were think be kind versus, I the movement? laptops and think of is more we March approvals, guys mentioned want remote you would and Just in think, second is of able wave of a that you just to XX% restrictions Do last guys on How you delivery little quickly a XX% and client if

Tiger Tyagarajan

Oh, an one, that's easy Mayank.

first that from let's playbook methods are established. home. dealt going I We work with portion is a now China said, as the with to well As group right is China. That's established. established. went start from that work established. in The footprint in-the-office predominant work The And is of China. now technology to The home

then, to right and for whom from than work Latin with U.S. is from work clients our our So anything in China with it to very work-from-home office as Again, as from we to is for deal to the flip scattered easier ability react home, balance we is the that well America, easy. to us shift some between some March. of India, Philippines, serve way way, And now dealt

given work Latin considerations they from certain in banking, the have. work office, it we home, regulatory that be to and be client, to done Now, some might possible. the India, do portions footprint, because Philippines particularly in not there that that done be are of work America office, U.S., supposed particularly the were If where requires that in

into good So set India, it's the that count well came back, move, protocol in a with if that all down up, action “Can very who month it client to a to well-oiled to laid I arose you work-from-home?” we back working the about, as people more a and settled months But X - less office plans the would like had “Will about, be well. we expect allow move almost the rhythm. and good mean, to a checks, machine to you the well look at with it moved case It's work-from-home?” been it's distancing, allowed social with protocols out, that temperature India

Kyle Peterson

vetting identifying, some right about switching and integrating the these capital you color. how I Great, transactions and helpful guess, the allocation, more front, if And kind M&A going describe of are that's maybe virtual particularly guys just to are just environment. in a how in could then, of you over pipelines just now, a looking

Tiger Tyagarajan

services, M&A are made that's and So, been I'll choices. have very with want on for the by kind are some strategically we And bring our are where allocation years of looking many start we going. is the understanding we And for, Look, going, that choices see I of I'll add good in we capabilities what strategy have we the on we've now seem the think Ed pipeline solutions of capital clear market capabilities how where to color puck some with today. what integrate do choices even of a our the want, driven identification to have of terms the in and focused clients do and been good pipeline itself. that of very

to going continue of And integration and possible. be effort things by some to is all that's discussions take virtually. already virtual. virtual And all already expect, given industry we discussions. the virtual analytics, driven that are we verticals. we've something choices digital pipeline That would services have specific to where that now, And doing given Something diligences our in with engineering, the the So bolster I Rightpoint we business, great that capabilities, But Digital. think fair They're and it's we conversations, the They about, due that around talked world are very that you a those did specific of continue into planning. things data data robust, around specific and will had. say cloud all capabilities

teams, it virtual, are are our and are teams Digital works. Genpact Something - are We our teams And teams Rightpoint virtual. virtual

You should have discipline.

have You have to execution.

we have You all have a And have that. to of playbook.

approach of good One it with the execution mindset we all these that systematic Ed? that, seems about things a to of is help.

Edward Fitzpatrick

other the thing Yeah, a are only at add to I'll been levels EBITDA our now. few debt lowest net the they've look, in lows years is,

So there's dry for to attractive of M&A, plenty execute powder share to and/or M&A, repurchases. us

we'll this think pretty forward. a good play I in place we're So, and

Kyle Peterson

quarter, guys. not Mayank you, All right. Thanks for Mayank, - the Kyle. color. oh, Nice Thank

Operator

Roger would And you. further this at time. to Mr. And any no further I'm Sachs Thank like to over questions remarks. the showing I conference turn for

Roger Sachs

next speaking Thanks today. And again quarter. we joining for with everybody, forward look much. Thanks, to you us

Operator

great Ladies a the Everyone, day. in does all you and participating program may gentlemen, thank This conference. conclude have disconnect. and you for today's

Genpact Limited (G) 3 Nov 202020 Q3 Earnings call transcript