G - Earnings call transcript Q4 2020

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Operator

Good day, ladies and gentlemen. Welcome to the 2020 Fourth Quarter and Full Year Genpact Limited Earnings Conference Call. My name is Towanda 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 this conference call.

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

Roger Sachs

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

hour. the expect to Towanda mentioned just As we last approximately call an

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

way believe we the to provide our operating financial during certain that call understanding management we non-GAAP performance the enhance today, addition, of to information refer views business. our In of the will additional measures

And a to to to that, today's of over Tiger. with reconciliation release site. let of section GAAP You posted in our turn me call measures Web find the can the IR earnings these

Tiger Tyagarajan

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

with our the pleased year very environment. results, are especially and of full XXXX fourth We macroeconomic quarter face challenging in the

top up of to agility that of total our our to In profitable sustainable of client's reflects up the constant us new $X.XX change $X.X drive operating ability embracing needs and of allowed a currency by our up growth. year-over-year. performance is of workforce, billion resiliency a Led our our to basis; and to of of constant centers to our line currency The meet of Our dedication Global $X.X working. diluted expanded culture full basis. global transformation revenue XX.X% and addressable buying expectations for testament X% of opportunities X% we and billion market, a all successfully the digital XXXX providing summary, many pre-COVID earnings new revenue on ways levels adjusted grow delivered pivot ahead per with bottom-line long-term and margin industries rapidly into year share in the us income our XXXX acceleration on in finally and adjusted of business. with across X% total more Client has

life retail, goods, all health year. leading to high, time, pipeline the growth and new time At same year-over-year the consumer the by insurance. of sciences, by during the led an was of XX% hit high growth revenue deals Client year care, Global plus Our tech end inflows

more During $X signed than billion. of bookings new XXXX, total we

than crisis expected, levels. to lead in As bookings year we had COVID-XX last lower total the coming impact of

levels. in strong more in normalized quarter Global However, returned pre-COVID momentum the client we saw fourth cycles decision bookings as to Client

Client four six alone, signed Global Client this quarter in growth. helped the Xx We which quarter our fourth almost result, deals XXXX signed the deals fuel XX% and fourth quarter above bookings. Global in than more were a third large bookings above As quarter

we signed. deals color some you these on few Let give me a large of

relationship First, and transform owned America, and operations Walmart will their on we Massmart. North our majority building accounting African with for and successful finance Latin manage in

and technology completely of digital create leverage will strategy. analytics new support to We ways their working growth to

global across across for initial with high a operations finally, the after and procurement consulting supply rapidly bring product accelerate intelligent now business, an and engagement, transform to drive our for cash Japan, chain introductions flow, services, will And procurement ecosystem our we leveraging core platform and into CPG to and expanding and their better leveraging finance organization. conducting standardization, distribution a and risk our and we company, Second, transformation to transformation profitability controls new the grow finance, chain tech supply partnership drive will relationships digital relationship accounting, operations maximize drive customer long-term. automation the both

the excited bookings continued Global bookings in XXXX deals and to As these throughout expanded the due pipeline. the to signed more analytics Analytics in I'm saw the services about up be up XXXX. the of services the transformation in Client Client GE of deals consulting, grew embedded year XXXX Approximately growing of growing large XXXX. digital during Transformation for value transformation types than services. segment make we consecutive declined in fastest of over fastest services engine and we Global of XXXX our XX% our are fourth transformation momentum GE and of them XX% businesses total revenue. made XX% and expected to

services of we said annuity good As transformation our based. business a also is portion before,

XX. sole relationships were allowed to X have $X with our across that best growing us clients. of to XXXX. expanded for services, traction in large our bookings transformation transformation This XX% grow this included of operation from verticals significantly is Global more relationships than broader differentiated coupled demand services clients our intelligent solutions $XX in engagements gained million of seen During we've with services digital solutions more deals we offerings many to with million client our that number revenue from with source over have meet The our demonstration These revenues of end-to-end our the XXXX, annual to all strategic accelerated XXX. than XXX that from industry expanded our annual with the Client

the As to and the C-suite we our build we clients, expand of now leader most. guidance relationships, our trusted they thought boards as seeking these a when to adviser continue are reputation especially and

called we quarters, see we our over As conversations. last driving out trends five CXO few the

First, an to finally, a centered virtualization and every industry; all second, experiences technology cloud-based offline customers, across delivery; above, online services from that superior creates and design to services the shift significant for predictive accelerated the fourth, solution real-time of employees. of consumption an in and move third, human solutions; analytics; exponential the growth and users

for to few agile our a our clients of Let to is drive these further fuel our and how value me responds trends growth. share allowing examples us

leveraging leading we of and reducing product are For provider and demand future supply for experiencing fitness deploying a tremendous time cycle equipment, chain new analytics, personal introductions. solution, and state designing product predictive data growth, a

are and For led and brands, competitive predictive end-to-end reimagine analytics cloud first to LIVEKINDLY, organization food a co-innovate growth technology industry. in and food to operations, create collective we leveraging media data the of plant-based drive digital a

digital and the to for to our increase a various the variety process to initiatives a COVID-XX, healthcare adverse reactions vaccines. pharma access for mobile U.K. such results, AI-based of as on the allows are trials clients, partnering rapid leveraging submissions integrating accuracy pharmacovigilance technologies building that speed we test platform For MHRA of app and vaccine and regulator to related clinical

our nature our demonstrates industry clearly XXXX the business of services. leading and the non-discretionary of resilience Our growth

of growth sets are under of response is XXXX. needs We that to market primarily highly clients. changing a in further the has the of market different expansion two expanded and that by is penetrated challenges in This driven

First, buyers services in respond services, existing clients who I centers XX five matured transformation finance want services their on much for million, journey than in more logos and whom XXXX, more we buying partnerships are are to now called accounting. increased of to second, before. change, the clients, greater to And and first than leading order to trends to all kinds of us open transform accelerate new like In with all new including more and engagement clients $X out. who added time

In our services, drive insurance, them. and of claims by We advantage and investments deepen we seeing sales continue all financial strategic services, financial great and and services commercial planning service chain data. and are in and supply to our such like digital traction accounting analysis to claims, fusion domain, and and financial mature of areas as underwriting more risk the accelerating continue we lines, in

last I a doubled as As quarter, mentioned down cloud solutions service focus service areas. we on key domain bring our have offerings our led in to

the capabilities combined Our online commercial out operations capabilities commerce. cloud. experience with clients In digital our commitment to recent pipeline our digital, meaningfully, and grow completely driven commerce the applied quarter, in chain their we bolstering strength journey the by fourth to something of we as our their supply our are acquisitions demonstrate bookings continued Rightpoint's seeing build and many our of offerings, reimagine

firm, We to already in also benefits deals acquisition analytics seeing for an of Enquero, cloud new recently enhancing technologies. We're as and solutions the connections digital closed well execute our and the clients, engineering the leading on analytics data ability develop based mile last as using industry and joint pipeline. new data

has investment transformation and began agility profitability, dialing environment. the redeployed services and reach about. spoke R&D new with quarter, costs time of operating end. the we enter flows I This margins, strong deliver to rescaled EPS in on a the Turning cash with during us client allowed allowed we for XXXX robust the to we challenging talent and front adjusted work which to By restructured fourth our the us income up in second quarter pipeline the XXXX adjusted our

in growth factors. at look we we As are of mindful three XXXX,

pre-COVID tough quarter a year-over-year comparison. expected, as First, first

markets partner we'll client's our third, a Second, we now more the our half. of and travel, business, industries very scaled as as the recently true and energy leisure down affect year-over-year and impact management of which remains restructured their responded operations banking And a focused hardest capital that for such in asset first and one the have the comparison from strong. relationship, clients them resized hospitality, hit and will

be capital a markets result, expect our As we down year-over-year. vertical to banking

expansion part markets considering XXXX. believe of encouraged back double-digit fourth we continue these of our however to by to fully during quarter of factors, Even latter XXXX. will by hit Global banking the are come capital Client our after time pipeline We revenue we the the the growth

level, over deliver that momentum At we higher in is the earlier. quarter Our that adjusted income of outlook take line indicates hit in growth margin. better are bookings that, me to expecting we and drive or that a than improvement Global therefore XXXX fourth XXXX XXXX to call operating even could through Client possibly milestone and XXXX detail. let turn in an our our the will performance to who Ed, With you

Ed Fitzpatrick

X% with and our our provide an constant then discuss anticipating. performance Client X% currency driven afternoon, than and X% Tiger, approximately chosen Revenues Thank results grew by currency $XXX a quarter Client year-over-year and verticals. bit increased our quarter many basis, of transformation higher sequentially, reported for demand fourth Global basis review on Global Beginning transformation and across X%, also total fourth revenue due our everyone. for highlights financial or outlook our both X% up year good you, were services million revenue. year-over-year, services on sequentially largely to a Today we results, constant of increased XXXX. I'll approximately by was revenue full revenues as higher

due a of banking the and planned their higher to impact quarter. margin during we GE approximately related to declined we slightly recur declined income last as expected, revenue better primarily in GE macroeconomic than clients includes revenue to was due as of set Adjusted not businesses As Global sequentially, commitments year-over-year, better fourth expected revenue activity the we operating than than did third the surge Client reminder, expected. quarter. expected, productivity the X% expected quarter discussed a XX% on revenues. XX.X% benefit

as our on R&D, last the up increases levels our both and discussed more we and fourth in we normalized global call, to well marketing quarter began to for salary sales we As workforce. investments restarted in dial earnings as

expense Additionally, for occupy certain no leased an were by result, we X quarter. fourth gain is a quarter net as related operating XX an million other sequentially. net Gross fourth sequentially approximate points compared impairment last incurred approximately to properties basis X quarter net during to margins improved wealth year, the an primarily to fourth operating The related during unusually primarily an the lower expenses million charge impairment margin level $X.XX, a well $X.XX longer of plan improvement and charge we sequential due low other by utilization operating largely due year-over-year as to to The The gross to management better as Adjusted higher basis was to points margin decline. year-over-year transformation EPS last platform. primarily transformation was European improvement utilization. XXX driven services was also services year-over-year levels, XX.X%. quarter

in gross gross to profits generated year, and remeasurement quarter $X.XX current profit of quarter, higher [ph]. by $X.XX FX was primarily operating monetization year-over-year. higher This last land current we gain the [presets] offset income a level negative of approximately other on impact During higher related a of the

rate tax to the XX.X% to last during effective quarter XX.X% Our the was discrete items certain year, compared higher year. prior in due

the year, services. around environment, or and over revenues provide primarily economic on X% impact Despite and our was in year, total growth services for generated margin our largely X% constant Now, Client GE's due by of quarter. GE businesses. the year outlook. performance our year This of the macro at to revenue full the XX% XX.X% basis. to constant with increased by both Global reported revenues X% represented currency basis for XXXX transformation declined the current in color X% Adjusted commitments which full total some year performance. incremental operating year, the year-over-year, the uncertain let due an and on strong prior consistent XX.X% me productivity coming revenue, up a above currency during revenue, high-end was bolstered a on as income full driven year largely analytics expectation the

related We were our a to level. with particularly initially services. and operating the growth stabilize able utilization margin line in are not margins continue year. our services to the to customers prior drive were delivery to we in really and to margin maintain challenges as XX.X%, in was the work vertical challenges in Gross some year very markets in certain transformation COVID-XX approving level capital early home We pleased year absorbing year from well despite consulting able banking for challenging that as impact due of our

of declined income compared taken driven in $X.XX As X% expenses primarily a of of up XXX net expense containment as by cost year-over-year, $X.XX offset revenue, year was of This [indiscernible] $X.XX and higher partially of $X.XX. expenses operating $X.XX COVID-XX. SG&A by largely taxes basis adjusted a EPS the year-over-year, result percent travel to points increase $X.XX XXXX. by higher interest during Adjusted initiatives higher lower and

mix Our effective rate year income. XX.X the year, of slightly lower last tax compared to full XX% was during to year primarily jurisdictional due

from cash and $XXX fourth totaled to and the year the XXXX. our Turning $XXX end At equivalents at million end, sheet quarter of cash balance flows. cash million, up

to at Our was December. from net cycle XX rolling reduction days billing due by better this from earlier which EBITDA adjusted kicked rate were the to this last operating ratio year-over-year favorable XX% year-over-year for quarter the days, year. $XXX acquisition initiative improved revenue impact we typical debt outstanding capital the year of four working recent Days also Enquero up operations helped growth last higher generate the With an of we XX%. million in from our range. quarters lower impact and flow in of To off versus end primarily operating closed year, this fourth $XXX X.X million year, growth driven above last to including sale income, year of year our time the cash cash with growth XX well the with last DSOs hit from from

seen historically comparison X to XXXX, to to revert We year. cash flows this closer to income approximate X.X in we've ratio in net the to in business expect one-to-one free our level

million million During fourth payments million included $XXX the full and we at dividend full in million shareholders of returned $XX the of the quarter for year. capital to respectively. $XX and quarter year, $XX and This

of an price at of average Since of million by XX million total our million $XX shares million quarter share shares at per average per net $XX.XX X.X outstanding price the XX%. through we we've period, during per we X share February a billion. a approximately Year-to-date of share. an weighted cost cost $XX.XX our X, of year. million shares, per $X.X share average another total total of XXXX, price of repurchased buyback full at reduced share, X.X initiated at program for weighted this price Over average $XX a and a repurchased the at for million also shares million approximately we in $XX.XX repurchased a shares totaling We $XX.XX at $XXX

the With approved to increase just a the our the XXXX. Directors increase per initiated million every greater in we $X.XXXX approved, to equates $XXX dividends dividend repurchase of share share, repurchase also our of Board we Board of our remaining which authority, under since share an has annual The per have We've of currently approximately Directors our authorized capacity in dividend first quarterly share year XX% of first in $X.XX. increased or XX% dividend quarter program.

full provide for Finally, let me year our outlook XXXX.

representing on expected between total X% X.XX growth XXXX. billion our basis. expect to or revenues of to approximately a Acquisitions basis X.X%, of points contribute is XXXX. growth We Recent X% currency in contribute in basis to to X.XX company billion and total rate be X.X% activity growth XXX XXX acquisition year-over-year approximately to constant points

Clients, be revenue in basis. on Global a growth of expect to X% range to or X% the to constant we X% For XX% currency

provide historical to on up the ramp and me year. perspective to quarter we some see year. Similar throughout decline on the Let key first the pattern, the current growth in in our then expect our each Client low-single we revenues expected progressing a quarter, thinking how digit throughout provide to Global sequentially

due given anticipate X% quarter for will year-over-year to X% our first Client in The Global very year we year-over-year performance of first growth revenue the to comparison strong XXXX. be quarter that first the toughest year last

seen quarter, entering a high in A year. not second the in coupled greater quarter to quarter with confidence during impact robust Client this fourth growth pipeline in the represent highest with up in of digits year step decline meaningful coupled revenue given sooner. in of year-over-year expected by last revenue we've of if approximately that XXXX, signings of to the are the sequential level place large bookings We growth, us double-digit XX%. we quarter, which the deal expect caused will even that to took XX% COVID-XX to quarter GE the growth fourth Global see single revenue any a second the gives revenues expected return

stable As we we GE revenue mentioned be on relatively to our call, quarterly prior expect XXXX. throughout levels

to to operating our We return investment profitable driving expect objective long-term with appropriate activity. growth expansion, adjusted balancing deliberately margin strategic of

we're have in such, R&D adjusted first operating for to XXXX, we largely the improve of We're our year gross our XX margin and margin in by similar expect XXXX adjusted while seen in to quarter sales operating to be by As XX% approximately driven expecting same expecting time income Due see to the range, XX% and margin. more we we improve seasonality XXXX years. two currently in basis improved to XX% in approximately full the marketing. at the investing last our gross points margins business, to a

effective the rate by XXXX in to approximately of expiration from primarily Our driven be XX.X%, expected zones XX% tax is up to in India. XX.X% XXXX special economic

expect zone reduced mid a to as XX% special the in expirations economic We time. over continue rate tax to stabilize our effective range

negative year to rate per of I and be per the share just adjusted in FX of of between a recorded provided, share $X.XX XXXX. and approximately due Given to X% higher a includes the negative tax represents X% outlook earnings impact growth of $X.XX. impact gains year-over-year estimated This XXXX the $X.XX and to $X.XX for your full

repurchases This to earlier. is net agree million historical forecasting approximately executed with as This to mentioned flow to longer X% flow adjusted lower net home end this Xx the of operations work calculation. income to We our income our expected approximately million to year cash approximately to or outstanding XXXX. as X.X% average Capital percentage mix We're percent X.Xx of our from with than have through some to range. expenditures X.Xx X.Xx XXXX a as term. X in revenue approximately line from I historical free is impact we have share equates February in expect of shares, $XXX $XXX cash from assumed we for be

on solution to prior methodologies to to lower going In during historical do expect of largely digital beyond. update than addition, capital saw We as to from and let expect forward. you incurred, turn over and to since through to our Tiger. we continue some our estimate We'll and periods. this X% agile progress approximately reduction be in have XXXX call the expenditures we developments X.X% we me range migrated continue With the expenses XXXX rates that, XXXX back

Tiger Tyagarajan

you, Ed. Thank

and without model the we adopted quickly level distributed productivity XXXX, challenge to global sacrificing a During or rose service delivery performance.

non-discretionary the strong new global the preserving made disruption last growth year opening AI, our The lead by experience in delivered and and services our strategic while industry over in Our a nature of the few drove data automation choices and our caused leading intelligent digital for great our cloud. margins. operations years. The is COVID-XX for execution services domain plan unique that transformation solutions doors and wrapped and incorporate all analytics,

real employees, have client leadership real-time achievements XX XXXX awards HFS. connecting and analysts digital addressable being communities. financial by the our for data number industry importance process all reinforced and recently of investors challenges and deriving recognized serving by from four stakeholders, and this to clients, are problems, research ranked our transformations able our XXXX total further speed insights, been with in beyond. as that by in one analytics has of make predictive Viewing actions Our accounting of domain and to specific information XXXX we most up position market industry expanded decisions all

we the plus XX workplace. in years, last inclusive and made diverse have great promoting Over strides a

by team of board for team our builds more leadership being XX% XX% now clients. of our Women represent best than diverse senior our workforce, many held global held our of that We the belief have long the our seats and solutions women. with

retain build and priority programs top During a drive a talent. to great racially our professional always been the Providing us. year, opportunities has we actions priority as attract, global also new and identified workforce to equity high growth to change, for diverse various including elevated racial

and redeployment platform match redeployed. employees hours digital Our more investments this than XX,XXX million in proprietary genome by to talents year, XX% increasing our and XX with more platform flexible trading off learning hours our year-over-year than paid

as the non-essential become carbon footprint, have our a single of our eliminate plastics corporate priority. more initiatives use focused use and We're increasingly We minimize on driving sustainability operating facilities green. to make

sustainable as have for and consecutive the chosen received & Genpact Sullivan a sourcing Institute by in sustainability. Energy Our practices the leader Research recognition year, third and was Frost

Our global teams are passionately engaged in their meals Million’ communities a through a ‘Feed variety to of underprivileged programs. project communities An program example is providing our volunteer a globally.

for to creating good, We that strongly committed communities. and builds sustainable, are resilient leveraging greater technology the meaningful transformation companies

in We and named Institute ethical the the world's by company are most Ethisphere be proud XXXX. to XXXX

annual in deliberate bringing we expansion part clients in XXXX, We and our to targets intelligent continue in regular and be years. an our Global we on expansion. above to elaborate grew which the are the environment. and governance services last to teens, bottom-line operations across performance long-term extremely we our improving our XX pleased and part addressable Global we and solutions to on more our to of sets of we updates top are We formalized the stage social total buying ESG macroeconomic with We Client growth our delivering return in margins. before, provide with I Client double-digit sustainability low operating and report on environmental, growth market, our during we and ever progress more operating efforts, to XXXX of been couldn't as that continue In where adjusted over publishing of our initiatives challenging believe are working summary, will continue for income have see latter than transformation an double-digit our more margin well-positioned all journey centers

turn While act continue Roger. me we clients transform have they as by accomplished With trusted advisers excited our a ahead as the call to lot, themselves. to the that, to to back we are opportunities let

Roger Sachs

please Thank instructions. questions you, you call up now to your Towanda like would can We our the for open provide Tiger.

Operator

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

Ashwin Shirvaikar

So you of both Global describing growth. timing if the not of in fourth sooner, phrase used Client quarter the

you more some discretionary the velocity, So what what just factors about drive converting drive level higher bookings for sooner? of a would the about is greater revenues Are of that this that talked this are you looking that? with work,

Tiger Tyagarajan

So in to bookings which we a very saw with decision-making. demonstration velocity of about. we pleased the And to we Ashwin is quarter, the think we the talked fourth of that decision-making are very, would fourth back quarter that what we normal led call

outline are strong. strong, our is Our inflows

next or continues if to So we the go we that in bookings forward. up our saw being lead momentum revenue ramp quarters, through a in quarter as that see QX fourth pulled and the three four we that

to up. your be in same for cycles. to course, engine lead Those we services And continue movement So, us. transformation question, shorter we starts because answer to the are continue see the continue the the see a ramping there pipeline, to momentum, pipeline is of and that then

could very we're the well. quarter So about when fourth quarter, said fourth earlier I last I it feel now time, Ed little both quarter. than the would as and a be we good unlike fourth say, And saying

Ashwin Shirvaikar

it. Got

more provide company could can on like seems metrics be financial provide Anaplan great. relationships, Enquero Okay. very solid data to combination, a seems meaningful details then incremental visualization any engineering on and Tableau that you And info the would you have any

Tiger Tyagarajan

known two Ed turn little really past. to company captured for I'll for and itself the almost So us bit excited. stands the But, talk worked now. lot We've We've company them the I'll of financials. and the years a in what maybe the got with about on capabilities you a

verticals supply are online, on two in together that's we out. and of joint Anaplan of can bring commerce, And they in common called and got of already value same us what in So that moving that chain, to already the we to you digital the seeing area platform and in area to of know the as the so team, the in clients area of month the of the January, Tableau they've we propositions us, the clients us around a know the such we And serve known set serve. together. that

cloud cloud platforms is it's helping So the disparate the across clients that have to the the access then on that fact exciting cloud they data on build cloud and the and visualization analytics the moving and here. technology part

Ed Fitzpatrick

On the aligned do the it first will still but kind be might first going accretive, the fastest business less being just strength. be guess expect we we integration, that accretive, less we thing of as accretive I our about bit year year as profitability strength to one to our little you financial there. of a little will from to side, and growing just Ashwin, other bit then is the analytics with talked being add I it about be largely it the talked a and add grow is,

So this feel good one. really about

Operator

next the Nolan line from Maggie Our of comes William Blair. with question

Maggie Nolan

Nice do the quantify capital of and the your about of to markets thanks expect initiatives, or ESG that importantly, you outside business account? headwind for banking you Can you're making client sharing that. in progress hear rest perform to how the maybe more from the the

Tiger Tyagarajan

Yes.

Global client business, cetera. way three that the this than driven capital percentage the to situation. unique you good take our Global side. our therefore, we've is we so run would many and it, Client we want described, pumping better restructured points restructuring, reevaluation And past, to overall And their by that? like partner to of and the Client are if they et I business all what just was to add And on markets the two in be came times of operations, out, clients, Ed, we verticals growing, growth impact say is on very even in. you the would the a banking the the any So table, it their done

Ed Fitzpatrick

that think was that, of capital the slot. XX% as I probably, a down probably key banking, I markets year-over-year, Tiger, will the result be in to XX% think comment,

So the rest the growth of do XX% the over good businesses, can math, feel you the you about in all really comprehensive verticals.

capital the back that point we're year the feel also almost business we capital like that QX as we're So last markets, markets call, but except don't Tiger really in kind and every on bank where at know what of it's building. good we're to banking said,

we go as well capital in as through growth, with sequentially banking XXXX progress that and see we'll markets. hopefully, So

Tiger Tyagarajan

latter the And markets good that. the in banking good in inflows us the refresh capital feel all up and of XXXX on therefore, I really team can and about of build part in the just so pipeline was really of the

Maggie Nolan

lot announcements like had you've Massmart additions about also highlighting strong logo markets. new highlighted in you've And relationships, a But successful client total then, addressable growing expanding you're announcement. a of the and

as the you've new kind in that additions? existing you over of look from next years, come from you past? is versus what wondering, how much that expect client logo seen do I'm couple different the of to base growth And So

Tiger Tyagarajan

relationship, be for take relevant there gazing, of it's client are I years don't even ourselves things because you adding this don't done, them. capabilities a clear are that is can but us XX if more we our Maggie, after to client, things we would one, Number crystal noticeable. the three I also that table still wants are so, is that and bring that to the to more think any I bit little is, so, ball to and think say very

So we with after continue years. even grow client XX to

runway logos, will that that about those before, growth. much the that XX new before. were logos bigger a to be And X that and the long-term not And XX outsourced never element haven't called year I the but I'd growth logos talk out logos new for very XX when outsourced talked growth a Number expanding. new stage client set I'm of So new we logos And keeps talking trajectory. number, the that's logos, I just about add new two, about. first new

any change clients clients longer runway is our and So just longer. this proportion about that just or It's that new cadence the from hasn't existing because getting in fact changed. less is

Operator

question with comes JPMorgan. from next Jain Puneet Our

Puneet Jain

Can like cash share recent any margins, ramp percentage some year, for or the other that's contract from the down banking as or to and considerations use considerations this relates subsidies budget? you any cost going margin to Indian of it

Ed Fitzpatrick

away, didn't item operating third and to We last had as was away. gain the the it. don't you Okay. that needle And income big piece I that land We XX% income gross replaced don't overall is, the export XX% progression all strong. two our company expect the the we on on give to and periods, we other XXXX. and we the went with and of This with went subsidy year holds talked effectively then, take I I'll we margins being was about Last start that largely from this can year me profits impact true. the recall, and think prior year. have one, missed that yes, margins. expect replaced, the that by XXXX then last move other is the the consistent I'll first subsidy probably piece, which had banking tell cover in you year, export the

operating going We well next to year SG&A drive leverage in continuing expect to continue as margin. that as the

be expect Tiger, operating and level the So the seen anything past else? going that at item, the forward. other year. in big that a takes income Those Anything to give are we've don't biggest that we that else, piece, in two

Tiger Tyagarajan

add If can. if once and Ed, understood you that, answer No. Puneet's to can you question, I've I it, if

I the I either it our budget, material Is is relates positive fair? the Ed? on anything side. specifically out as think or there that would we that that, Is true, the think on impact call Indian industry don't to

Ed Fitzpatrick

fair. That's

Puneet Jain

and you working result or what delivery transitions, of from the demand? economy in expect changes from offices And home a are during as required model Maybe do employees gig site on terms long-term versus supply of in services delivering support model? even for

Tiger Tyagarajan

really And knowledge lot can a new demonstrated, that ways. with logos, clients, be to remotely of the of that as well you in new can of of which One, I And industry a transitioned about ramifications to said, transfer, obviously answer us. is happened intensity would if X new anyone XXXX; -- it is done. value. actually a that demonstration done not two And the By in just probably we've this anywhere of the there's speed, anyone I what forward significant number services means model. in think the knowledge has question pretty well. terms without as I has way, your be going terms at that a Puneet, that transfer, people. XX,XXX in portion will and look And be that So as do me, you visiting can

teams one from them gone. of conversation can where work in business, resistance, barriers in done a you their our used every be The have this some saying has their situation year, a And our teams is which serving where for every also of often working working doing operations all when and clients from work. second home, in complex is, really the from home cases, to be one of

Who is One is up why the there the total goes that debate can are apply? best which to work I what? the changed it. best conversations. of This dialogue. about reasons What sequence? Those think the does has is where. be is market and big do The addressable that is change a is way What what to technologies are actually, the completely the from debate no COVID-XX done

Operator

next Our line of comes Bank with Bachman the of question from Keith Montreal.

Keith Bachman

any Is or is there? I'm good you into anything bit there and I That's questions. that I the or I see unusual there changes book-to-bill really The that revenues? outcome. But elongation a is, terrific the how were happening two that filtering and on the was if about pretty you the number. see, mentioned XX% have wondering, P&L understand work just have any to What is could up trying wondering is QX. two was you questions a you bookings fulfillment should of be I little is in how year-over-year talk first, XX%

very QX looking You as talked being robust well. about --

And to have or on have I understand follow up either risk provided through the how a then work. term if more side could. I revenue much of tension guidance trying Just you near

Tiger Tyagarajan

that long material book-to-bill. and our Yes, cycle, I that Keith, operations we said, we don't well. services sign on as our relevant transformation look certainly portion in at of not on intelligent as contracts It's multi-year annuity

is I is it convert not not What after revenue, into we drive. way is that of there nothing December no booking expect, record -- quarter, between is back-to-bill pretty cetera. the that that about we up normally the it. ramp et there into So something would as measure Then is track difference got booking one real unique a say January, a and and good would out would

go So I to Ed, would of comparison year. to And through QX, just growth itself trajectory, add climb has last normal cadence, just which have it want a will say, normal we then you that. QX of up, to

Ed Fitzpatrick

Yes.

of one relates think the I to questions visibility too.

a we'll that's consistent, a in booking visibility come required, then compared the a in to but we're level backlog So And not XX%, of XX%, bookings a that year, gave expect terms that we see coming with range and year into good delivered you. often revenue to good. up feel is bookings, be to uncomfortable growth easier revenue of

So range a the upon pretty one. trends based that good, is revenue good

Keith Bachman

mentioned enough. out explain hoping Then, a opportunities are you, think my was Genpact? the particularly really Okay, other within expands, you're that think TAM interest key question where TAM Tiger, you follow words, you think has do serves and the the flush fair times your of that? has expanded In for you you. really where and as that TAM few Thank that could on is that you you just why expanded,

Tiger Tyagarajan

Great question, Keith.

when say I'm are to saying that referring only areas expanded, by TAM us. start relevant I'll I So is for

the TAM of that definition serve, our That's of are that we But TAM. would lots that's and focus are I'm our focused expanded on. services independent That COVID-XX, industries I the through that other the of reasons, for COVID-XX. have that's for and There's definition TAM So is, and TAM we because TAM us. sure variety not has of accelerated of some COVID-XX there. a of some that is a some

underwriting inorganically. batch started those And knew went we then in and accounting like supply on. organically, Those acquisition we investments claim vertical sales and back, years claims as Those on and from in lines and and have so right is XXXX. we analysis services the that have to an investing our and services, services, strength insurance chain choice was make things. procurement. years and through as a financial in follow example through as, set planning So, service played both as well and services really Barkawi this insurance of supply four our and services, and One, deliberately commercial a financial finance a about as back, we made chosen and three chosen three chain and services,

services. of four reimagining about think important clients all all have at those, those become even look of more those you of If four for each to

is, the Two, third is collapsed. finance high-end even investments and And digital should digital And people. in relevant the we've Those Rightpoint, become if of reason really too in next chain. digital us again, collapsing. gone analytics it to work are of more one technology supply can why accounting, our and door clients when to my is cold me. be analysis, And be is finance, question, acceleration analytics commercial And really actually by or barriers It's that and work, have Because you think very one transformation that days chain yes, and well. it their accelerate and those you it's investments supply market of it. experience transactional the partners management, answered want are journey Puneet's one. and have a going can sales talking I done do the that the significant done the should about technology basically you and market partners for dots And need Genpact, digital planning to which Financial say, order technology the the including investment three I that's they online. it are the an client of through. to every expanding you're need really they between would to that market do the transformation, So someone us. finance done, connect acceleration undertake a when other

Operator

comes Cowen. of line question Bryan the next Bergin from Our with

Zack Ajzenman

for in this Ajzenman Bryan. think is I Zack

On normal on were as the it you than stands of also, maybe deals the in maybe the on of could started in deal color terms more update today? mix Can sustainability the early greater a stage mix And large little you last mix a demand? lift pipeline pipeline, quarter? the an as provide provide

Tiger Tyagarajan

start good add questions Ed really have that. And Both questions. I'll I'm going Zack, then and great to to off

then large So levels, in pipeline as expect, the third ratios after quarter would more in has was muted quarter the muted, addition what but the second now would back and normalized mix we for given back so as call years the The deals well, come was as a does that versus will transformation in little in the you we the Ed, pipeline. half there. than are deals X.X of the stage you seen as expect the similar come always it in of and we've on. the the a being ratio to but of continue, quarter that, tad first have normalize probably higher that stage maybe now late deals, do we digital it's don't discussion change on expansion want to And earlier and to one particularly question time, early acceleration a in of any add see of more deals of and early that. large deals slower far has quarter I second to

Ed Fitzpatrick

Yes.

going the quarter about into of hurdles, and talked nice booking being we numbers saw. we stage those deals that looked fourth given the different a that we third we for got lot think mix I pretty like late

the like of [ph], refocused places an and it's because early or good more usual two, on late. you terms if In in mix good. it As [mean] were week, vertical, the earlier kind by is little in reverted of looks to pretty looks a -- will terms early it banking right, as we thing, at but we looking than a varies this It are bit one that's but example.

as in going My it way too we large deals. regard, as consider raise that view we the do if complex or the good. comfortable the of this feels that time, only the level, XXX. to to deal be XX down from deals, come of over that's more a what my from XX to current we were on get in joking continues pretty think they is more earlier customers large view that week I percentage So to increase And level

I think right that's trending way. in the

Zack Ajzenman

stronger out level that in more was then uncertainty. prudence performance mid across turned to Got XXXX XXXXoutlook? arguably, formulating And in it. be asked the the context, follow up consistently one of just the that we there what on guidance, and was And what

Ed Fitzpatrick

consistent. methodology our I is think

think I XXXX was a crazy year.

as or from stability we were is we everybody as everybody do said, back true. we we bar able But expected. and business after as meet step kind the what was as quarter. away took a out in of our then reset had of second after reassess quarter came okay, and the we to the gate I the growth out obviously forward, the giving we to not can kind we faster And than of stepping first guidance think have expected. great we exceed And went revenue of showing

pipeline of reverted same using bottoms So again backlog I we've the the to business-by-business norm unsold percentages, up. processes on and think there

similar and range top the is So consistent bottom-line. process, and

the to think be. it we back going we're So should way

so we it's fully our And but way week, will, talked about if well or a we're hit, Now, we that kind But in earlier in of QX environment to expect favorable guidance on about back -- getting it as this talking returned not the path world team. to to the contemplate significant it's be. the another you more wood continuing doesn't change we knock BAU, the wanted to -- gotten down hasn't were we'd the improving see. that as

add I that's to had, all to anything I more that? Tiger think

Tiger Tyagarajan

just any any contemplate contemplate other been well. change at would same significant it I as really time, doesn't current -- it have shock in environment, No. administered doesn't the but

Operator

Mayank with of from [Operator Instructions] the line comes Our next question Tandon Needham.

Mayank Tandon

versus the the pervasive being you now, based especially pandemic, in client base? been have you from was asked the Is effect answered. differently becoming of pricing? structured about across the acceleration I more just transformation Are given context Tiger pre-COVID and questions my have But curious, that level of Most in your talked noticed, outcome services? now contracts

Tiger Tyagarajan

agenda would a Mayank, great question. that it's actually been we've years I now. for many saying start pushing by significantly

fair therefore, COVID-XX about be based you necessarily it in and actually cost what accelerated. that, has had you to pipeline, our now Having say based, outcome can it a be numbers no based outcome about pricing more that do to in we're a It's pricing enter pandemic of the that that impacting overnight, transaction going the XXXX, based wouldn't those its The the But by outcome with journey. that's for become the fundamental, an with journey cost. book. the greater of a book work up. of have just less still it's about no It's non-FTE supply much have to longer got our opportunity that labor not opportunity higher driving to those planning to being management, based even It's analysis, input. It's long order pandemic, or arbitrage nature before. the to the customer. financial And I more than that and do contracts the is got front-end actually go, value COVID-XX based of before were And said when say therefore, So would the elements done enter that's enter way the pricing; even contracts would say is seeing. them. the growth based going It's goes chain, realm do us that realm longer outcome to to still continues. drive. has of the accelerated you I outcome realm of of when when customer you

Mayank Tandon

Got just margins maybe for margin potentially items the structurally the it. and of than Do travel, pre-COVID? that would thought business structural hybrid not back, et work cost And sales, then, long-term given given cetera. environment of you think the the come guidance, looking have And mix again, some more you I'm nature be outlook. could but might better short-term for of maybe less not also what

Tiger Tyagarajan

don't this think and careful. call. require to do remote think wrong investments. but decision. privacy I question, the earnings be we When great facility you that's And and are does requirements And that think we've costs. inside I in and would Mayank, math that first think all, So clients. up work, prior it infrastructure making of the model their own I done seen very think think I environment would I I on an discussions, before, And do all would in and a requirements, discussions as and we reduces you themselves of infosec the said a do I've go one disservice about drive secondly, modeling of Because sure remote ourselves as should many up fact a the businesses home security us I assume a had we've from the we go basis those well have of careful significant not clients and with and very, we've I aspects. work

mental answer Therefore, home. workforce goes need et of is substitute more those away. distributed together, marginal because When I you ever health as whole many away. when therefore saying bunch just it's think things I by of you virtual cetera, before don't conversations. replaced real by building doing, are issues think doesn't teams is bringing exercises, to from for all costs estate mean needed, it's travel that one stress, many than to more to meetings, don't math eliminated Second, better. goes cost becomes more incremental more simple travel simple do people an watch don't of going got a gets be culture work of

Operator

queue. turn in further to like over I showing now Roger to back remarks. the call questions not would I'm for the closing any

Roger Sachs

today next Thank you, you our everybody, we speaking with call to for forward quarter. again look and joining

Operator

conference today's your call. concludes for participation. this Thank gentlemen, and you Ladies

disconnect. may You now

Genpact Limited (G) 10 Feb 212020 Q4 Earnings call transcript