Earnings call transcript Q4 2022

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Operator

Good day, ladies and gentlemen. Welcome to the 2022 Fourth Quarter Genpact Limited Earnings Conference Call. My name is Justin, 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 A IR will and the available Web on

Roger to Please Genpact. call now Relations proceed. turn would of Investor like over I to Sachs, Head at the

Roger Sachs

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

to expect hour. We call last our an about

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

IR believe measures in to to include that, of our Tiger. the our turn site. operating provide let with will reconciliations management performance We the me reference certain of section Web call information posted today's understanding During of views financial enhance way the non-GAAP that we these to release over GAAP today's we the measures And earnings to call, of business. the useful

Tiger Tyagarajan

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

basis; share delivered tech of In a constant transformational revenue AI our currency growth, of end full are share, highlighting of income pleased our high We and $XXX margin digital with continuous tech $X.XXX up AI all per across services with tech of out X% margin billion, services our XXXX revenue of diluted X% earnings per at AI fourth and year pipeline financial adjusted up services on and We're of a X% of year-over-year large flow XX%, a a total deals. year-over-year. for coming efficiency. theme robust of XXXX, operation $XXX the them and services in of the of up Transformation many of operating our XX% most year-over-year. points adjusted expectations, year-over-year; results pervasive is clients. $X.XX, as and adjusted revenue relevance data operation therefore diluted Adjusted enterprises revenue expanding year digital of income we the seeing data basis up operating with data quarter year-over-year; XXX XXXX earnings million, calling million,

earnings up flat up of year-over-year. For digital XX%; a billion, XX% $X.XX, up services full adjusted total delivered on XX.X%, data share of the operation XX%; of currency and XXXX, revenue AI year-over-year; $X.XX up revenue per revenue income $X.XX year $X.XX we of of basis, adjusted services constant tech billion, operating margin diluted billion, X%;

drive our reflects clients and of services to of during the nondiscretionary cost, we provide full risk services a the such XXXX and improve This outcomes. mitigate variety growth, suite performance a of majority of nature our

that clients' had on XX% few chain up This services momentum XX% operation services months where businesses a rate services, half our delivered steady tech and risk solutions basis. Data we particular, XX% digitally constant globally sourced year steady wave we sole a year. tech financial operations driven deal and sales year. of services in Win our bookings. double in the including were all on almost growing our services Digital bookings including and level services during the prior and services, up growth was services a XXXX build of manufacturing the year, grew held commercial when at AI basis. supply transform X% design record and revenue the clients' billion, year, delivered industry was throughout growth. our constant of Our by across strong in and currency high represent broad digit based continue from inflows to collectively emerging segments, year-over-year. XX% transform ongoing plus grew large inflows run our approximately X% the currency deals deal to results last Full $X.X We the a

believe the the in us new also priority up during will XX% companies new We of for number a logos long XXX we accounts year, won logos These become that include term. year-over-year.

with Our initial value over XX% average $X these logos was new up million. to contract

deals. Entering around recent the XXXX, large are excited we momentum by

nicely late over months three industry all few of a has across segments. expanded line next stage with strong the Our pipeline closures sight to

are We our seeing in all and in the geographies. in and unique a across of market clients set core time a are industries themes

transformation up a their success. their and company business journey is portfolio for First, long-term from vary their to revisit on transform choices and company business, The drivers strategic set to every technology include time management, real volatility supply the modernize transition. factors to China their energy need as to and concentration such leverage risk chain and and risk predictions, data desire stack, enterprise the

that a agenda inflation time, at being item in everyone. huge a to is led for has Second, and increase dramatic cost the hurting same

than prime back. a situations months our XX% of just motivation XX% become six costs seen versus clients have in for We more

to a and for recession through global towards batten tool and However, investments. redeploy an and of is that clients operating a increasing have number out for do the same Even up efficiency. using at both XXXX To transformation I to client, new digitization declared a costs year reduce to the models deliver a largest down and time. this quote but efficiency moment term tech of want are consolidation, companies standardization, delivery, also not build long to only

industry ready separation to based as There and There have to desire heightened fewer cloud our increase of and building desire we are has process companies rich choices with work to check that differentiated getting analytics of their data. been partners technology redefine They because their data and services. domain, being is priority revisiting solutions in told in leveraging are a our a depth. a process are we for technology a partners strategic is us in There and unique approach bring domain of clear technologies in businesses approach significant and spin-offs portfolios.

and their We in real in have technologies of XX to and appetite workforces many time are arrival generative is an meet and structurally and will the months. seen insatiable shrinking companies access, AI only such opportunities spur double for particularly that. in rising leverage countries, digital other in unable the data further and to ChatGPT last data, ensure talent, demand With skills. There technology

respond an changing As we always, to in these client agile behaviors way.

allows generate and a that The of us. value and to we represent we have across clients that invest are a in intimacy client portfolio select are multiple We growth. them priority to us potential accounts, for trust transformation believe above them significant growth journey drive building to on great our are for buying which company centers with average continuing

and grew priority of XX% our from revenue revenue. accounts XXXX, approximately During XX% represents total

capabilities as Next, positioning we source advantage to we a engagement the opportunities our in expanding depth stage to given partner to large drive of team sole operations our the able take the domain are transform deal clients' end-to-end. be multi increasing with essential of to suite market see and more

and We and deepen Google platforms solutions and design, we like Kinaxis, Cloud areas. where BlackLine, oX AWS, enterprise like specific micro like and workflow like platforms Azure technologies and to and our partners support Oracle, platforms, our specialized specific continue technology on HighRadius Snowflake, applications relationships with cloud domain SAP data in implement data ServiceNow

me bring to life examples. with Let these some

in to same of to of complete large at all time we chosen operations drive industry, cloud, tech been while the the have platform provider a their For consolidating AWS stack the automotive globally. modernization their tech

it's a medical the Our one domain been where reinvest into automotive in to all vehicle not global we insurance, the technology maintenance, leveraging company, we for on and technology of just but savings cloud initiatives. repair, cost meaningful them new the years depth relationship, large growth industry understand to deliver have and allows in functions, chosen the strategic the that consolidate first two financing

platform For deliver to we jointly a exciting a implementing then is centers. for of opportunity tech in cloud solution the for one their with range better of to the a enterprises on data the largest other as planning this take along supply will their Kinaxis chain clients. The to world, partner tech here be

small a sourcing won operations their business. cloud large For procurement enterprise, we another tech in and engagement for

mantra big of growth for the even XXXX, techs. how Another clear example efficiency for is oriented

our to data of for broad cloud underwriting of we data claims This initially and digital will domain For management a and their for functional for lead the infrastructure insurance, their their liability of up a finally, company, ensuring to divisions. global And bringing life their provider industry and a we finance, depth of to expect decisioning set and consulting healthcare modernizing spin data availability relationship is a practices, teams. one leading off that their are business by advisory operations. them sciences migrating

since quarter, improved second even XX%. to declining three which significantly of of the for our lower attrition at XXXX. fourth Our level quarter months involuntary with attrition attrition and rate XX%, in our Adjusting lowest service, the than less employees was is

declining XXXX to first The of show five weeks continues trends.

clients. levels, We and This technology have well all part our data all sustained analytics, in to delivering every across board well including globe. and the of -- for really value seen across skills, [hovered] the this digital skills

the globe and as more XX,XXX opportunities reputation many and XXXX, employer and across across globe. almost members During powerful of the the choice, X,XXX welcomed reflecting advance than to careers year ones learn full providing quarter, new for the an Genpact's we brand team

X.X% on-demand year, consecutive many over a third constant months. deliver We the million Genome several our uncertainty, deals. macro which few trading believe the will Despite currency close have than workforce our ability leveraging XX XXXX a we basis. completed to our growth platform. ongoing includes large pipeline, on us online of For next revenue confidence global total This X% hours, gives to healthy more the of the year these for of full in

also the me of a We income review outlook our expand for let our operating Mike to adjusted turn margin XX.X%. With our results over to the and to call year. plan detailed for that,

Mike Weiner

revenue, outlook which revenue, analytics highlights increased revenue Thank quarter was constant good you, full XX% Today discuss fourth on X% services currency AI Beginning $X.XXX risk you the results year basis. data a our quarter in afternoon, our then tech fourth with XXXX. currency Total our represents of or sales commercial largely and supply constant or focus current X% growth across our Data results. and of on driven and basis, cloud X% year-over-year XXXX a billion, provide X% services. performance and with everyone. for Tiger, chain, and areas, year-over-year including review I'll total our continued by and solutions and based up

services level Digital a a of represents XX% short primarily increased Services As wins. year-over-year quarter or during a on from From increased and tech recent Financial which fourth data due mid-XX% revenue, reflecting total existing manufacturing and for grew and AI year-over-year, of largely cycle XX% constant the year-over-year, data ramps the and procurement perspective, and revenue. and to commercial, tech of due deal X% currency risk tech our basis, revenue, AI rates data revenue. services large the X%, higher revenue XXXX, operations with reminder, in a declined vertical from clients. impact lower X% healthcare management services and and sourcing lengthening by supply largely increased driven demand strong cycles High both Consumer driven and sale new continued services, to existing and by chain analytics. primarily deal our leveraging engagements and X%

as divested We that previously business we successfully for sale. classified held the

is the charge operating Given the in a quarter lower our line included that other than during anticipated $XX million an we fourth net expense in recorded realized value, P&L.

XX%, positive off coal expanded basis margin impact points initiatives. income the operating leverage, adjusted of largely year-over-year due Our and cost to to operating XXX containment adjustments cycle

year fourth to quarter related As reminder, the and the our largely half of of in XXXX costs the lower transaction normal and inflation. increases a adjusted investment notably, resulted from the wins income first in higher than operating deferred wage deal impact of from activity margin level

year. of the fourth Adjusted points a interest operating EPS income driven expense higher lower as SG&A the initiatives by and basis adjusted ago. offset of negative of excludes remeasurement quarter XX an in utilization and containment $X.XX was new charge XXX year-over-year made share cost Our of higher up and margin higher basis to the FX overall was revenue performance that for quarter supporting fourth deal third benefit sequential decline adjustments. quarter. This due was down business the $X.XX was last in largely to to and increase of the led related referred percentage year-over-year, basis year-over-year. activity expansion points sale Gross in the The by of the primarily $X.XX we of was G&A $X.XX, point increase impact the pricing $X.XX, and due the was from higher Investments XX.X%, $X.XX. the of net of a to $X.XX, the in XX impact margin outstanding quarter XX% off held XX.X%, quarter moment cycle gross gains leverage. largely during partially from

effective due quarter period to year, level discrete XX.X%, XX.X% the rate compared same Our was of primarily ago. tax in to a last the year from higher benefits down

currency XX% including provide year total increased operation XXXX coming services Now billion, high services. of year year-over-year a of driven XX% a focused up increased chain, on of currency and AI me X% XX% on or and with above a represents by and revenue, year-over-year X% based solutions services was full constant revenue, our term analytics growth in and long on basis, or risk tech target. continued in which some our sales let the outlook revenue color revenue XX% cloud at currency basis, performance. Data and XX% which commercial revenue, you our basis. largely X% revenue, represents $X.XX or Total end Digital across areas, XX% data around XXXX our year-over-year total constant supply constant full

of $XXX to Clients revenues we and During $XX the from revenue than client increased $X XX% from XX% more million annual revenue greater in $XXX clients increased and the than to number more of grew than million with relationships million million. with year, $XX margin in million XX% from despite of end based Adjusted at XX% our of now high our the Outcome inflation year towards operating on higher and represents impact commercial revenue by came to attrition. consumption XX.X% outlook of wage in XXXX. models XX%. the full absorbing XX% path income at

by decline due attrition higher was to to year, The costs, compared XX wage offset and Gross the better margins off travel were basis adjustments XX.X%. XX.X% and point year-over-year cycle elevated largely during utilization. coal inflation partially

point margin to full Our year related impact gross we actions quarter includes second strategic charge a negative XX for in of basis restructuring the took the XXXX.

remeasurement and As a in partially of higher the allocation the the offset of XXXX. by our offset foreign by due higher income incurred This primarily Adjusted year-over-year largely reflecting $X.XX of count of exchange $X.XX, SG&A by higher that taxes capital at part EPS impact $X.XX, increase activity strategy from $X.XX. was of of gains to $X.XX, XX.X%, $X.XX revenue, latter driven in XX% lower was adjusted G&A operating $X.XX, year-over-year remained share percentage investment XXXX, of overall flat up leverage. of absorption

to last primarily Our XX%, compared rate full of the during tax tax level to year up effective XX% lower was prior benefits year, year. from taken discrete XXXX due

Turning sheet. to balance cash flow and

of advantage XXXX, to us clients patterns cash operations days days historical last paying flow XX resulting in in advance $XXX reverting to rates, XX of elevated take of For to expanding from instead year. DSOs reflecting we million, from generated interest

end, impacted DSOs a remained receivable received $XXX that our of at the and prior example, in $XXX of by deterioration year in quarter early million our we aging no few and totaled At cash million The For January two accounts of of credit. we $XXX year equivalents end line in to payments approximately compared with has the end cash accounts the million part have seen days. periods, from negatively XXXX. fourth

we reduced the during $XXX to and almost debt our $XXX more shareholders total of by million than year. As capital million returned

was mature refinanced we the of second half quarter, fourth that the bank set During debt XXXX. our in to

ended market pleased as X net that our Given ratio with with borrowings. year spread our X range. X.X times, the similar We preferred our carries of are in a line rate prior times to environment, the uncertain facility debt-to-EBITDA we interest times

cash undrawn pursue our in opportunities and business, execute we growth existing capital back balances, flexibility to reinvesting acquisitions shareholders. to capital our the have to debt With continue of capacity, allocation based ample pursuing capability on returning and strategy

to expenditures a to XXXX X.X% year equated in compared as full for Capital percentage of XXXX. revenue X.X%

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

of repurchased cost a weighted of total of and $XXX also average price cost full X.X XXX,XXX shares for quarter $XX.XX during a a We price at the total million at $XX.XX shares million with at weighted the a $XX year. million of

during currently count We XXXX committed our to be remain share minimum from to returning of to to shareholders anticipate well share of a repurchases We outstanding buybacks. as buybacks cadence Our regular share dividend flow quarterly capital reduced XX% as of our allocated our operations cash through during net by XXXX. our X.X%.

Our repurchase with company's $XXX approved of $XXX Board increase buybacks. providing million of million approved availability the stock for Directors a of total existing an future us share of authorization, a to

$X.XX XX% on dividend to our an approved $X.XXXX quarter to increase a Additionally, board annual our per or basis.

dividends of quarter dividend increased first has at compounded of the began we XX% XXXX. Our paying since a growth in rate

full Finally, XXXX year I outlook. want our to provide you with

risk to and the the billion, to X% during faster all adjusted win X.X% our margin growth we continued and of weighting constant We revenue approximately a $X.XX income margin historically. of against outlook operating full basis. the total This leverage. a year. primarily year to X.X% point improvement environment. expect representing the at is is year-over-year XX.X% our client in expect This currency and scaling reflects a than XXXX currently XX strategy expectations on services billion This basis our the We pace of AI current we've tech to drive revenue done to operating $X.XX and between backdrop lined to be with X% and existing bookings of be of expect data expansion by driven macroeconomic

rate tax reported XX% XXXX. and XXXX Our to XX% compared be approximately we effective to is in year full XX% expected

share $X.XX. provided, and be and [indiscernible] we just for lower of the the related offset by XXXX X% expected year. per and $X.XX, X% to growth impact $X.XX year estimating share to due remeasurement impact the of the Given earnings million impact to of $X.XX represents of $X.XX of count the includes the FX positive $XX adjusted share higher of between year-over-year gains negative last are full taxes per year-over-year This recorded to

total forecasting are We approximately continued expenditures be expected a solutions. to percentage growth of from and revenue our of $XXX the related delivery during primarily cash income X% XXXX, to in million, XXXX. digital is hybrid in driven to by our invest expenses operations operating expected adjusted new Capital model we in in investment as flow operating approximately X.X% to as expect

you some perspective Lastly, year. how let with the on me provide progressing revenue we through see growth

the we second With of the With expect quarter-over-quarter related expect the new the through to we margin currently typical. deal half of expect we half our first follow of the let wins, Tiger. in year. a of first income during being the first growth remainder lower year-over-year back revenue to currently to the year-over-year. quarter typical seasonal higher to me the single quarter deal We that, expect less From low year. over adjusted be new ramp comparisons operating call at and and year digit throughout to to end in sequential the be see easier pattern perspective, the our growth decline wins expanding year than of recent turn expected of ramp the Therefore,

Tiger Tyagarajan

you, Thank Mike.

are with our We pleased XXXX results.

environment, As debate for all pipeline. data increased the enterprises There asset and benefit no this has become of we valuable inflows that that businesses. respond the macro most is seeing to conversations, strategically with are

and and We increased supply and analytics. of our are risk, all seeing connected commercial demand service deeply with chain, to in data the sales this focused areas

them clients power insights take future. through and intelligent derived tool clients themselves benchmarks. and metrics platform, and the harness This our XXX or the running powerful Genpact for data to empowers Our work operations clients’ our today driven to to deliver discover from Enterprise with enables of using outcomes transformation proprietary actions opportunities

also with in be global a help ESG We we initiatives named In Index our continue line being up long margin inherent sticky of performing XXXX one drive in Gender in made to leverage included operating Bloomberg relationships for to for have second year primarily with Sustainalytics. of best Equality row. a ESG recognized the were growing companies by the term the summary, as Genpact long term expansion. top We

to our We and is of services. digital by large data AI getting also and tech underpenetrated our market ability have growing in the that operation take unlocked advantage opportunities

which as new In tech fact, tech the in accounts data XXX operations borne. accounts XXXX in data will AI XX% end digital engagements of or seeds relationships. larger The out be AI priority into that logos start we up expanding future are signed

is outlook profitability term with aligned much and XXXX long Our our goals. growth very

remarks, let call are Before back me in employees my earthquake I that families. are Turkey, Genpact their to turn Roger. are affected close and the approximately thoughts With that, the there with XX devastating the by who those including our prepared

Roger Sachs

questions. Thank our to open up you, call to now Tiger. We'd like your

provide Justin, the can please you instructions?

Operator

And first our from Puneet JPMorgan. from question [Operator Jain Instructions] comes

Puneet Jain

environment you're annual for seeing you to assume for demand that great you're It's talk project guidance term momentum deals. guidance like strong based also like the what work, Could does about -- seeing see short and that? large for

Tiger Tyagarajan

protect their large both because a to environment good. you and changing referred we And overall, business. specific kind I the saw then, XXXX, of transformation third the and quarter would short of portfolio digital short call journey I being demand for good front quarter. Puneet, we strategic around course, and everyone, and The their term digital term to is deal of engagements end said, advisory already thing seeing one as fourth and the the I reevaluate journey and experience into on end already that last we driven and is towards the fourth slow marketing continuing out expect We and quarter, -- saw down. in of consulting the engagement are year third

that the through slower to expect year. continue We to be

Puneet Jain

And the of cost, employee and rebadging higher are such profile pursue? what's that clients seeing also typical you deals you deals cut as of mix to your look would

Tiger Tyagarajan

So a there that if Puneet, going close difference I bit in quarter, know a I bigger that have wouldn't scale to didn't more don't see in as that, a because large we strong is now. whether are probably we of the that deals XXXX from term longer and we many profile years, a on would Having you material take of our necessarily said little -- pipeline said, working for say we we say three in time too I more rebadge deals. are fourth

As we them a have will some close those, of rebadge component.

that. strategic question of So to will the as a much different, couple play term bump doing at overall quarters, a efficiency get that you pretty is see you part existing operations how And back that the to one experts shorten as we've not just absolutely companies if in reevaluate a in in you own as they global longer that. if no cost long those trajectory do business they global take reevaluate come into transaction. captive centers, reinvest leading service of of order become that initiatives, term trajectory, There their

time very feel happens. every good we that So

Operator

BMO. next question Bachman Keith comes our And from from

Keith Bachman

less think year, for how you logos previous similar finding But to existing are 'XX? more any in customers, you you you pressure retention. and at existing -- wondering this CY difference on think do the hear or economic one growth just other growth retention And the know I'd my you you in and particular signed versus Tiger, say, growth bit XXX do you I net more on 'XX? seeing to But love that renewals And lower mix the the In you for new the you CY the challenging question. and a said business first words, the how existing up are seeing between, about on cycle, algorithm. really looking logos more customers, really algorithm in to little volumes? new comment the about are on is

Tiger Tyagarajan

the our value creation. that those objective the intervention, to it of objective it incremental to more and stack renewals built. of about say, had. And to getting start let's completely slug been the analytics our added, in driving algorithm all prediction conversations to let's a our clients leads we great about five conversations before XX when start more I'll year We talk digital our leads those is the what's So value growth with clients by up, next often, we've And we more comes expansion Renewals talk clients’ on renewals. cloud, for always is scope, phrase. months. any let's movement data leads technology relationship and say, -- contingent well are over, have engines renewal being

we And for fast clients our see months looking see paid this on and the as process having a XX really renewals we So benefit to over in focus are be renewal the off. strong big environment, last because actually that paybacks. and economic

other just that's new was, about you On Keith… question your talked renewal. me, deals, on -- So remind

Keith Bachman

new Speakers] [Multiple do How logos different… deals see could which you be

Tiger Tyagarajan

look our So prior Keith, than logo talked if you XXXX. at for about higher XX% I year. new said I history, the XXX

those to environment, year to say XXXX, every this clearly We enterprise which journey see reinvest if not XX, high. on in to the apps extracting are partners, changing on growth it's at, consolidating order picking globe every every picking picking a back are stack, I because journey picking I of cloud, on in these very up days moving up where the question a they environment would to don't easy. is is are about cost up initiatives, everything functions in around industry of part and the So journey technology in XX which is again, growth picking the applies a up, trajectory, a they that four on ballpark newer described by a are consolidating that a of given the vertical. in XXX, we been journey they important It's three, look you a know of which they are up tech they

see being we not that between and that different algorithm growth So new existing clients. clients

over a We play on that's horizon. priority them our of logos just new term, those future have let's clients, -- the XXX be our out continues priority to of you and now model would clients and years on longer focus pick year sow from if say, the this to business the five, seeds focus couple XX

Keith Bachman

Tiger, you from then you placing do to there's the actually question announcements try if occurred the doing automated or technology? in couple of want that AR and more risk technologies risk on, of AI potentially go of an opportunities And of practices? in to of advent fashion, incremental to that, companies maturation weeks. new last you My about collection, seeing just what you How focus a some lot more software and/or or enhance are offering by new as I is collections up think say, follow-up the your on bringing mean similar. AR competition

Tiger Tyagarajan

both it, in know you that's industry, that and technology to know is client you give our they has belief technology there digital to service cases, end-to-end if domain which incorporating the clients understand around real clients to real what our adds understand leveraging operations that What's our you incorporate that you to our see partner. can the offer as very traction new that is In run. technology, seven simple now eight for about that belief clients because in be our we technology, how the or to it of into traction incorporate their find is only to our Keith, role to always deep don't we've in the you use the data. the a it, always implement technologies. us how needs answer, journey into in with understand And it value is beginning happening been it the we've right we real but if they years been operations, said base, that us a done, bring It's if if on us because exactly are to this if in why so

of the solution, if HighRadius the with than is what years the HighRadius great our old examples we've client. relationship into for a is right some working it of that been you thing it's with four it's AR new, and not is, gave that's incorporating Our And that. example more

a leverage they see need these technologies us client threat it's as in not we help leverage them actually coming people to So opportunity. a the them. us, to It's an them, because real like to find opportunity, way a has

Operator

question And Koning our from W. Baird. comes Dave from Robert next

Dave Koning

processes, about new to been be little could on have where examples the to either as actually have your job of we on you clients Maybe about you you you seen stuff. I that's coming it know or question and done to try piggyback And in an you been any technology you've examples technologies. into And integrate nice examples it a Keith’s this and said, of being see you've saying, talking press, headwind? Do ChatGPT growth. a could any a integrating you've of hey, a process, you do have ChatGPT? benefit, accelerator

Tiger Tyagarajan

integration. to full it's think early too just a expect I

and that a data Having So and like must ChatGPT is opportunity do But that, to operations get other AI the no. client our technologies needs think that of the number AI that specific. I there's has the not it to services. full not generative generative clear into actually address. real wouldn't It's technologies that happen. expect particular the answer seat don't we domain it's it's but said step that to very happen first a that, to would is generic, in to and that, expect bring now, a just integration

undergo. of an does in ChatGPT's incorporate needed the answer be is into for an that, need that be it's positioned actually, it whole operations to data part order a infrastructure needs create what to And a insurance us needs because of ChatGPT answered to who specificity of to to question for like whole a slew that jobs in there's backend on And the to look process. training the able claim the And people going specific ChatGPT that like. that, to automotive domains. best data train of do So claims to be to state you ChatGPT Michigan

and of people real get it just opportunity. We XX,XXX figure of see across company incorporated. we So pilots where out participating kicked can off the hackathon ideas a a major and cases to use

Dave Koning

about data grow maybe stable. probably my would it to And fair you that imagine the through a question acceleration apps operations to expect up. through the the digital be year, the that and business, year? a Is follow have business the digital way and second whereas stick hockey AI I more think tech faster business than a of more this year, the will

Tiger Tyagarajan

Absolutely.

the in that business you single And data earnings revenue so consistent cadence it, will than rate and AI have growth with the and much operations digital of the associated or more business. think the pattern tech when be we digit that about low

Operator

next our Wilson Jesse from Blair. question comes William And from

Jesse Wilson

Jesse on Puneet's to Maggie. on This for earlier. up is follow I wanted question

of short is marketing digital you those consulting term earlier? So what engagements exposure to Genpact's experience, types mentioned

Mike Weiner

environment the of growing business. don't that Tiger So and in that we this have the percentage revenue earlier, notional total one of of seen general talk our our as on not incredibly emerging building about in size of macroeconomic a marketers a of you've But really indexed large in is We exposure almost it. business said tremendous It's it revenue comments performance kind seen. we've the with the there.

not pulled indexed huge think But again, general it. as don't But So going well has it's accordingly I revenues It's of goes demand a to business. that, back our the to piece anywhere. it. from very

to in going back relatively half in the the come it's particularly year. think strong I of second

Jesse Wilson

Obviously, for question year. guidance is you then, for expansion And on a this follow-up margins. Mike,

the normal medium or about thinking for potential be So forward? about steady a you of the how should term, are going cadence kind state thinking we

Mike Weiner

becoming goal done mean June our about No, Investor other margin, it we our they've at of our tech than increased as factors, well I data margin the think you a and number greater at how our company, historically. at drivers at more when that that particularly meaningful scalability margin the business the as if more right, talked about to AI looked a and we of of and looked has been clip right, Day, grow to

it points So We about basis basis. going to through XXXX us within per our continue drive to we're think no. Is that it from going guidance. strategy to how our Still it an think see annum? We'll showing to XX I be think that that's annual perspective. on goes

Operator

Company. question comes Bergin next from & our from And Cowen Bryan

Bryan Bergin

seeing client in I ask different on now? really right there Are behavior activity US location wanted client different based on Is any versus demand to any you location. seeing Europe? the you're based

Tiger Tyagarajan

I seem no, interesting. are about remarks, as prepared Asia. the we Europe across that global in pretty Actually, headquartered companies be in themes cutting actually a well to Brian, not. talked my is Canada, the the of It global themes that called out Even fact I US, number as

to and that doesn't can pull different there So I this seem out distinctive versus be that say another. geography in this strand of is

Bryan Bergin

And margin. then on follow-up a

hearing deal leverage? into So anticipate I improvement for do gross asked How pipeline. to the about margin because potential And between versus XX expansion I I'm the just SG&A the wanted of in attribution basis year. points dig this you XXXX large optimism

potentially that you in margin So like investments work initially gross things I'm as ramp. could not sure if there against

Mike Weiner

Yes.

You exactly right. it got

happen, ups gross cycle. on have right? large as and grow. part as expense cadence on, disproportionately early will the those which is them early we revenue perfectly, deal So our of we'll margins have investments greater So Remember, in investments line ramp our dilute

more the leverage But to about and think SG&A linear. XXX% much the get way will We it. correct that's that's

Operator

Tandon And Company. Mayank from question our next from Needham & comes

Mayank Tandon

to your sales revenue your wanted what you some just hit expectations to in in terms just terms sales I given force. Where thoughts the your are And of today up ramping get of on demand, are the on Tiger, optimism headcount? force the growth targets?

Tiger Tyagarajan

because finished very our just good it's actually, And question. entire assessment great force. a a we timely sales it's of Mike,

expect, do the towards year the any various the year. good to of enterprise As really force verticals. of size think We sales of industry good and our have the would coverage, we end beginning scale you and across

the where that we very space the into see the example demand. as demand semiconductor literally to months that back force from are sales through moving we went challenges. that weeks where nimble see XX benefit A force also reallocated of of great less chain and XX, sales two was in in big We at the about we world got space semiconductor supply where

about I the of that have number we happen as on and the we of into new on incorporate through of in people year. and situations, do always terms the to of What I that. some programs say go get And technology to we growth continue immersion to technologies, think well of on in intensity different of are type programs nature the expect that partnerships client number numbers, those one of that has solutions, the we the and So positioned. which technology the a are course, services, the talked our is, the people of I we a And given of those around different would ready strengths. changing including continue total services, training services, we our partnerships, been

Mayank Tandon

for this of follow-up, as implications revenue? investments, have tech do companies you in it I announcing Does any tech just do a to large on any the quick a to that as just where term, then AI you that for against And might you think are in wanted And digital more your about positive that? rely exposure exposure see data the ask you be your they layoffs. short actually working implications you might there or and general,

Tiger Tyagarajan

reason conversation, year of changes as us. a use, Having for lot I we to has undergo support. waking sales two two cities is that there segment may enterprises there a support XXXX one is those new I of resources many probably the And years. pie it us to of a right tale over entire are are players. efficiency terms six that that. In called us. actually the always or space a done last are a benefit the intensity there still we is of situations shrink fast that That and is digital our up That up guess, word opportunities just a sales have It's realign cities. we the and it's very sector back that language of a the waking of bunch a many sector. for things few actually, benefit of the a that, is, that, the some do throwing productivity. with we would been, many, one for tale surprise, fast again, for growing and said being are industry, the have a the in about into months no obviously, force therefore, getting relationship where of to It marketing of said up, net, Having And language two high and growing where for

Operator

Thind question Instructions] our Jefferies. Surinder next comes from [Operator from And

Surinder Thind

color for start those new deals? conversations this conversations, ago? or I those much And I months year if light three what my that I new the can winning time deals in you started ago, months transacted, cost you some are what around guess mean on the point for guess you urgency question, mining how of being first ago, to XXXX were a around the be like deals provide line maybe urgency to for at of initiatives. especially you conversations look comment sis months nine if larger the is

Tiger Tyagarajan

about I about, course, about more it's I chain, the in six, of about depending meanwhile, stages to supply to are some back have in late to client, with, The the and rebadging. the makes deals. the to I where technology deal to of closer. people not A conversations That nine, have energy more and having cases, larger they I XX side large, from complexity on Ukraine, in to questions, that many cases, the China, from makes stack, point talked closer be urgency them, other complex, multifunction, talked about progressed regulations, of believe to the answer some in the all getting about had months decision. of it some makes the to industry, we now number started And a deal some less it in they're deal inflation. involved these is talked client of the issue in talked and

finally get continued the later So would wagons more it later longer signing of it. journey. conversations one you as pipeline, we to into the get always I very takes, in of have the good what of is the and confident then And actually it's circling plane progress complex of and because the those every in this what news more have complex that's stage landing say an The make environment. is, a more and kind planned we are it is for we obviously and the good

The as for a that with long variety go in right buying we they And other to have as data same in were point decision centers the decision client at cycles. of side of because have the the at in and variety speed expanded, payback is relevant Those is hit house, faster services, cycles they important. which in to time, is haven't solution eye. AI, tech tends continued a that the be of bulls we

is AI talked every balancing So being thing look again, of of it's operations last I percent. remarks, tech my subsequent I'll back to four agreements say tech more digital engagements AI this And the we to at ends years when engagement, tune data XX-odd up three over the about data the both. and prepared a of end question

beauty the and new logos business. four plus over AI XXX engagements a and rest data sign see will let's years, have of them which data of them AI tech XX you tech digital is when operations next our means all which are and So that follow-on assured the of

Surinder Thind

that a color narrative this any on that clients And there quicker then their how on the the at higher stage, are being follow-up, complexity for are on by mean And that out there's maybe or ROI of what a as of looking taking oriented. terms is investments. I projects you're projects the in

call, revenue So like? do you that a up to the a guess, normal projects to if just for more does out call order delivery versus strategy client. for but implementation benefit what might the I you the or roadmap or whether roadmap And I look impacts, guys, change I'll get would bit of whether what timelines get that the chopped certain, projects

Tiger Tyagarajan

up in quarter -- cases, phases. cases, about quarter earnings class, the three into complex the the get prior actually, to deals the I talked quarter earnings great again, this, calls. a there in both and okay clients can do dollars you Having question. or in we and are including not to little because three And couple payback go the the swings. some at is, break are a operations because rebadging aligned said in a generates third. a And order work. fruit, So some the I pieces a investment and and calls, everyone to all we both three think particular Larger think, two that shot, take deals, spending break and who rebadging, actually it broken then them whole time in They and bigger which the up for is longer not low said, up second hanging one there exactly for first doesn't get prefer what that into that, cannot get get often exercise, and idea in you probably

So there way that I everyone. in the fits would question. one standard the different are colors size answer no There's

flex of and seen think adjust day. we've I what solution agile always the the be has is us ability above. to create and all to right the won And our

Surinder Thind

ramps point? change guess is I to or that, different revenue it ways just clarification Tiger. the that And to Does the a end get just on same

Tiger Tyagarajan

the details. changes I revenue Obviously, ramp. don't it development think

require investments upfront, that little got require larger said when it will digital deals a it's then bit investment. on and we do and Mike think I operations complex rebadge more

as the a rebadge it the on is So ramp relates revenue rebadge side. deal to pop that beginning. a changes margin versus deal, ramp where slow the ramp, gross slow you the a slow the revenue in ramp margin a profile get And in

said, So And of it's that we not the different past. a I the mix good from as of above. have all

of So difference revenue therefore, that. on ramp necessarily call out in any I wouldn't account

Operator

And remarks. to Sachs no would now thank questions. to back over Roger closing like for turn further I am you. showing I And call the

Roger Sachs

joining for quarter. again look forward I and everybody, you us to Thanks, next today, speaking with

Operator

today's call. conference you This concludes Thank participating. for

disconnect. may You

Genpact Limited (G) 9 Feb 232022 Q4 Earnings call transcript