G - Earnings call 3 2023 | Genpact Limited

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Operator

Good day, ladies and gentlemen. Welcome to the 2023 Third Quarter Genpact Limited Earnings Conference Call. My name is Didi, and I will be your conference moderator for today.

[Operator Instructions]

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

Roger Sachs

earnings XXXX. afternoon, Good the welcome third results Didi. you, call September everybody, discuss XX, Thank to ended to and our quarter period for

update President genpact.com. was the will through IR well as our an section for then We hope and introductory full to take CEO; strategic chance Tiger your on as comments, to our will a our the outlook. and today's review our Mike are our Today's quarter follows: you our posted few will Officer; website, update Speakers overview will year Weiner, results you had and earnings on initiatives, walk call will financial Tiger XXXX release, brief our be of as Chief which Mike then BK and and Mike performance of agenda you next you our Tyagarajan, on follow provide our Financial to BK CEO. with questions. a Kalra, Tiger

now. We last expect about the to call

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

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

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

N. V. Tyagarajan

of all us appointed Kalra you, third for review first, February news share the our share XXXX Good I everyone, about retirement CEO joining for But announced today more BK afternoon, BK has next quarter. I've and as XXXX. as quarter this let's I announcement, Roger. been earnings the know seen my you call. exciting in words. Genpact's will few and you've thank Thank will that a

high X expectations. work remain increasing on deals saw clients short sharply other quarter large revenue we reductions. our in a total pressure that cycle advisory as project farm This focused and cost At level, being resulted in prioritize below special in

remained pace to bookings grow least are However, and on XXXX. in XX% at strong

In to results. addition, prepare production move use we as into many continue of operations. leading large we and light to Gen language This inflows the into is new as in their demonstrated models early with significant AI make embed clients progress deployment environments to

and to year-over-year We up our billion, on X% in basis. of X% Total a $XXX services digital up of year-over-year. revenue of revenue million performance operation delivered detail. $XXX million, down revenue year-over-year. more $X.XX services currency Data-Tech-AI X% constant Turning

We margin basis also earnings adjusted X% delivered points year-over-year. up of XX.X%, up XX per share adjusted operating $X.XX, income and of diluted year-over-year

converted; businesses. we Our three, at X expected, deals two, data lower one, fewer small deals; pressure longer work, health consumer build design predominantly were clients' feed services TI tech demand articles. These to care in for in solutions our services smaller financial our transform challenges and our where less and and advisory third revenue we deals ongoing quarter cycle driven by those saw projects small in grew for things: times decision than short-cycle

However, where in performance drive schedule, services this our ramping operation and our run our solid up clients' help large on operations. deal digitally digital transform are recent we wins

greater We resetting into XXXX details spending to budget visibility growth client normal of expectation revenue year our X.X% our prior spending, X.X% than currency seeing will updated typical lower constant discretionary performance, and basis year-to-date the outlook. this expectation of compared flush no a X.X% from full are expect on approximately top seasonal provide year-end on outlook. our of now Given lift year we to line growth. full year-over-year Mike

our above environment, long-term remains our a macro advantage large process expertise, quarter XX% believe continue of pipeline competitive our period embedded in the data deals demand healthy. the roughly times capabilities has This building, XX record very We challenging following high-quality and beyond rates with our levels to experience the deal in again we years last approximately X half unique these annuity-based year-to-date level. with Despite deep during and the robust the of X new half sole-sourced. Fueled AI. services be first gives We once inflows domain reached for in refining were AI a Gen inflows, signed combined Gen many over the and led the by historical our with AI. developing continued to signed wins rise new Win us our

ongoing for We believe expansion to continue half also first are of the well we growth the added pipeline, during outlook positioned compared quarter, XXXX. growth bounce the and of year our our XX in that in to the for We new a from back bookings for logos adjusted accelerating we deal. anticipated XXXX

quarter visibility short have as in of did level in we a However, growth confidence update. our revenue, same into forecasting we cycle given to XXXX, return the limited not in our currently double-digit do prior

a in our provide detailed February. call during year-end earnings early will more We outlook XXXX

strategic key Turning to our initiatives. X

quarter X. to make in them of continue in We progress all

during Revenue quarter grew X% First, expanded our the year revenue. XX% prior year-over-year our accounts to of from total and approximately

paying off bookings investments our accounts. XX% in approximately priority were year-to-date are as of clients these our from Our

to to continue the term. faster long average this We expect grow over the than portfolio company

we co-innovate joint technology Second, create Three we continue to players partnerships examples. cloud deepen IP solutions. and our as with

marketplace. We and new Gen detecting, platform capabilities partnership in our at and Google learning our engineering Cloud ground production deployed drive Gen This with on efficiency our their cloud-based institutions better machine grew listed financial financial the in Global growth. SaaS and solution. into AI integrating to for and has solution Cloud investigating of financial team been AWS with AI, preventing data proprietary certifications key expanded we and precision First, solutions

an where us we we also in processes, a name drive partner to ServiceNow, base and revenue as invest commercial of India, centers cost and benefits, joint few. not we These chain new we quarter. talent represented and Through transaction-based cities talent third cloud-based enhancing Tier initiative, which only and continue Fourth, of are footprint. our to to to finally, procurement solutions in new automate just in XX% elite And with are operating but in and hubs continuing attrition. offer diverse access the sourcing, supply expanded our our X pools lower outcome insurance models,

in pipeline. in continue and teams investments recent [indiscernible] results, to our finally, And large both generate great bookings

for for XX%. was than consistent was and even than XX%, first the less the quarter attrition lower half employees with attrition period our of the rate our of the level the during with last expected, X year months and Adjusting involuntary XX% third same at attrition year. As significantly lower service,

rapid me Gen us. on the progress making you is I'm ever update huge we're than opportunity AI. Let more for confident now this with a that

focus are We are areas wide using AI less first, have models. gen new penetrated disrupt to for open service we X areas: for us and

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a gen user across We gen to our helping accounting, crimes have XX than solutions AI either and speed, software drive outcomes; improvement supply experience. third, margin in are with AI employee and undergoing management and development currently HR, knowledge that recurrent more rigorous AI clients or functions, are our testing and specific teams. financial step and we drive risk financial own training, function catalyst where to internally's example, acts chain, improvement and implementing as a For services gen

live We and to with client live. To solutions helping products XX to and have gen begun shift road either environments concept use implementing focus about nearly with conversations generate building from date, AI had on deployed verge or in parts. proof our related of cases we've execution the and maps specific pilots to X,XXX going

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believe to a term. result, As models, use of will we revenue decoupling -- over employee towards growth greater a long growth of leading trend from accelerate commercial the alternate greater the ultimately it pricing help

than the programs a to levels expertise, employees ability XX,XXX competitive Our our domain almost deep our having unlock AI now benefits have We XX,XXX trading combined in more we team gen scale, advantage with help AI. our various at represents for completed members enrolled of us as upskill certifications. with of clients

internal playground created AI where AI also experiment help employees We adoption. have our models with language gen multiple large drive to an can

XX,XXX than employees this platform. are using more Currently,

progress services the analyst report. earned highest generate ranking the HFS inaugural we recently Our horizon in was by leading where recognized firm industry enterprise their

Now CEO succession let me we plan come back to announced the today.

XX-plus Genpact has has me have and the been of for pivots for We He He are our world force our Genpact our hands-on clients of true for has time teams personal as around company. very anyone we have holistic changed I His years. who tremendous respect business, various and partner and to journey a been with best and over The strategic and the years knows execute professional the successfully will and Genpact. CEO. he and guiding along helped the better and incredible in becomes embody be shape our next than me us last an dramatically leading for that it. BK. approach leadership operational transformed at a

we leadership whole team over seamless. will Equally the transition a the years importantly, that make have built great

to of that, a As for closely involved remarks. few very course, for will, and plan the over work a BK actively me, stay and successful member I'd With it with BK like additional to transition. Board a I smooth ensure as turn of to to

Balkrishan Kalra

I express the behalf entire it immense for our as be leadership. an want And to honor Genpact Thank CEO. consider you, next your selected gratitude to Tiger. I on team, Genpact's of

CEO you this role on been As step year. forward foundation into the excited have with building to to talented and many days. our the know, I team strong Tiger I that next leading early I'm since established. of Genpact look has early

is several temporary, remains the partners clients, macro months, Over us are right and now and next focus confident of to headwinds listening business model the environment. I'll The business our for reviewing current investors. every am time be and the spending robust. the our I navigating employees, aspect

our XXXX. our global of with dedication are key our to underpenetrated stakeholders. high-growth and line well unparalleled to expect And participate all drive team, We growth in positioned in We see sustainable improve long-term we for top market. extremely

call quarter With that, the in go detail. to more let turn over me the to over Mike

Michael Weiner

good wins. to and short-cycle expectations, you, escalated our X% declined Thank review revenue left you Total consumer both pressure X% performance which due spending BK, total reflecting services Services booking I'll third latest basis revenue, revenue, Gold and XXXX both represents and year up regarding discretionary and a This related as Financial ramps that afternoon, on full and on-time basis. both constant operations and tech our thinking constant deal revenue, and represents on with care X% was increased health quarter recent outlook. on basis, everyone. year-over-year services $X.XXX our September largely was our billion verticals. during of Digital a provide results to currency reported XX% below to currency a for revenue, currency as-reported which basis. large total reported Data-Tech-AI of year-over-year, related constant XX% as an Today, incremental of

discretionary recent tech from increased held vertical ramps as short-cycle Care on increased to had divestiture year-over-year, spending previously for impact the we From sale recent Health declined million wins, of pressure business reduction priority period XX-month classified number services and third to partly related XXXX, well of the year-over-year, year. lower-than-expected Hitech revenue XXX in X% due spending. than low grew XXX. growth-oriented largely year. we $X and offset annual client of digital and driven deal from by discretionary with our by scope and manufacturing as X% greater year-over-year, marketing offset the primarily September the relationships the disappointing largely as Despite quarter projects to a a performance partly of ramp-ups client mentioned the XX, impact global news top by earlier line Hi-Tech during last financial tax perspective, large Consumer X% to clients' of a due ending

from XX due was and XX $XXX $XX and million XX.X%, general margins points to XX higher XX to with gross X income points Additionally, clients million basis margin increase clients revenue annual to sequentially, X. efficiencies. expanded largely and more greater year-over-year operating basis up than operational from than Adjusted

last reminder, As quarter sale in year-over-year, included expanded cost a performance business year been the third year implemented for positive in year. Gross reflecting margins held the third quarter management as the that actions XX our the primarily the divested. impact in points basis last has earlier designated from

of development XX quarter points, margins research the leverage. utilization operations was as Sequential by the largely basis points and second absence business divested, improved wins. and primarily due investment improved the year-over-year basis XXXX. to greater revenue recent sales offsetting third marketing was approximately and of up of quarter both in gross and due offset improvement mix expenses was that reaching driven Year-over-year deal from better of to Sequentially, by higher revenue, XX%. XX nonstrategic of the to of SG&A in largely impact ramping improvement large a related and percentage digital sequentially, operating

was third increase count from outstanding offset quarter The a effective XX.X% was Our was U.K. tax last primarily rate positive EPS the X% statutory effective tax Adjusted by from compared up largely the our income share increase $X.XX, of of tax impact our year-over-year year-over-year by partly of due jurisdictional of recent $X.XX changes increase during $X.XX rate. last $X.XX, income mix to a in XXX%, adjusted from impact year higher operating and in lower in XX.X% income year. driven rates. to

balance Turning and to sheet. flow cash

third During to days. we same our in decline from sequential certain compared driven the cash be similar expanded where $XXX end was to the DSOs on million XX by of early cash generated the the during expect of collections year We days period was a last to operations year. delayed to quarter at quarter, X October. now million The year-over-year $XXX received by DSOs in related basis, increase level. a the accounts a in On

Our Capital to the revenue of debt-to-EBITDA a quarters X.Xx. approximately for ratio percentage net X last was rolling as expenditures X.X%. equated

Now let year outlook. me regarding thinking our with latest full you provide our

clients translated earlier, project during the This into remain time, project short-cycle than we discussed Tiger the we we levels where and recognized period. towards skewed in by near-term gains. on prioritizing discretionary third anticipated. focused large more on become spending savings bookings revenue resulted transformational revenue is same This revenue over multiyear As efficiency driven saw lower as deals At cost less remain quarter. dynamic cautious a large of deals

approximately remainder as in we by the XX%. year-over-year expand of increase growth This outlook result, as be well for of XXXX prior Data-Tech-AI billion, to the outlook revenue expect up currency line year-over-year our services is investment The As adjusted of for revenue from a driven on mix XX.X%. primarily operations now lower basis is the full digital revenue anticipate our growth operating year points revised greater margin in top our year. We by year now X.X% full a to constant income to basis. of representing $X.XX a XX

We expect a bookings compared contribute higher large in the quarter quarter. to recent to the fourth our revenue third deal

Given initial year. these that delivery, compared continue XXXX to relatively onshore of flat full have to we margin to many year last expect slightly be gross to down deals

of end into range. the year we to our rate full expense, now Taking expect our XXXX lower tax effective be XX% to account at tax year-to-date XX%

prior earnings generate adjusted we share DSOs to growth lower the year $X.XX, to expect Given to expenditures million capital outlook, now the percentage we revenue Due full range X%. adjusted a full $XXX approximately and total year-over-year $XXX end operations at now low million. year expect from per updated flow operating of our now full to expect compared of year. outlook approximately representing be income, XXXX of the expected our to as We of of cash be to the for approximately X.X% anticipated X%

of the a we confidence discussed, not did quarter. visibility XXXX, to same limited we have when for last double-digit in level as growth spoke Tiger As given short-cycle do revenue, we in in calling our

to XXXX. accelerating continue believe positioned in growth for we said, That well we're

finalizing forecast provide with early we'll weeks, Over the our in and several guidance earnings February. you our specific XXXX next call year-end during be

the said, With turn that call me let to Roger. back

Roger Sachs

We'd now up instructions. provide the like Mike. Didi, for open our please your to you, call Thank questions.

Operator

Instructions] [Operator

JPMorgan. comes our question And of Huang first from Tien-Tsin

Tien-Tsin Huang

Tiger, it's amazing been an run.

speak of hear era we'll So chance I course, the this get I'm just the second get on But maybe it's to hard BK. as of for a congrats here. quarter yes. I And here end to Well, into an that February, come guess, sure but that a congrats news. to business again. let's get do well. --

short deals. this on common been Tiger, large Just reserve theme, throughout thinking that a the been the hearing comments are pretty as as season. cycle about well It's we've --

you love sounds that a I've bit So maybe out. thoughts the ACV lot short trying been to backlog to the cycle TCV. the it understand on versus your like talk work filling can dynamic is a better of little for strong, because that about isn't but I'd companies. hear

that be of bookings in the So this that year. an having or must impact level on year convert

walk that anything dynamic? through to us So

N. V. Tyagarajan

year, slightly of across X-year projects annuity that our average range short So the you. out And your put on thank are business, et TCV. X exactly And to in very nailed all, with ones know, the short-term cetera. TT, Typically, as terms months, challenged. you magnitude And the above the that heard months, that X closer X industry. X the X And we've cycle, the those been actually on years. then months, is we have multi-year order are you the first that itself. of dynamic question in answer long-cycle deals strong seeing which It's is

sets for but dynamics nicely is we growth see Data-Tech-AI the industry. which fact, particularly our stage least we then digital operations, talked that XX% also the our half at we bookings happens In -- the of half the long were don't for What the we're about, Data-Tech-AI term, you in because of across the short dynamic that's And impact on want bookings add get that except nature, year. is cycle do done haul. really nicely revenue Mike, for coming The it to not anything? translates seeing. for through long immediately to both

Michael Weiner

just growth we're that in and I'd regard what third out how you actually that itself the as about manifests year-over-year said, play quarter the What for is projected with it well. to bookings financials you Tiger, to add and the thinking how XX% Yes. quarter if fourth

business which the to expecting reflected digital of business majority were X%, grow, earlier, vast it large as is of continue there. Our there grew you and as, half to in said and we're about AI operations the Data-Tech the deals as well

and tale up X the you majority it seeing Data-Tech the non-annuity make the a off pressure some cities projected into of shorter with transformational discussion near-term incredibly of wins the the deal strong pipeline So third that quarter. is kicked that and as large fourth with in we're AI vast

Tien-Tsin Huang

Great.

So can 'XX maybe -- you budget you catalyze side there in this helps. imagine stage, the But are calendar short just it's if we're too year there can acceleration mean this sense. that to that? the catalyze the and Is over I 'XX. But that sometimes call. assuming short-cycle so pricing? around probably early maybe your to what on Is work done I anything of makes be at my for? do anything heard follow-up. quick the I no flush comments looking And year to changing

Michael Weiner

with signings kind in this and the for the it business and of as XXXX us pipeline including think act both these thinking year. Obviously, X any Yes. of And with thinking a talked of that growing basis a how had comes about the it about earlier. really, points base just remains about But grubbed. Data-Tech-AI will without of key large key really operations regard the our had today deal we're particular with variability our digital there's strong we it incredibly number from few specific entering business. about numbers the strong we the business to quarter. A we're a we the we Data-Tech-AI There's variables -- way the getting fundamental

Data-Tech-AI there. to up large we mentioned ramp But demand So that The there's seeing that I component now. and specifically, right continue year. deals into we also are will having huge it could what next through means what earlier, do

see huge are generative a into terms associated budget Specifically, there's year. flushing any didn't traditionally AI next hearing not we generative of with So particularly see the opportunity the into in in the that we and budgets degradation we fourth third while going quarter,

with that engineering our when our So particularly you tailwind go year a data dollars certainly. what investment to for help the level this are nice that's in us be above huge going we through, had drive as we're those going next about in focus us I it, after year, think think solutions, to growth on to the Data-Tech-AI help go we

N. V. Tyagarajan

moment the closer rolling mode in up said production. can replication The what terms you and of is which to And production of XX conversation of gen back gets X the that pretty specific are and those more replicate lapped we are to the have gen start the just I offerings into a the And already into Mike some get that you about, it imagine, projects as quickly. we've to can We actions on solutions, add finally in AI now talked pilots AI getting if taken. closer out and progresses, full of of board the and mode. X

a that expect to be we So tailwind.

is AI the all big begs engineering itself, for they our whether on actually the one. data Mike's Second, a clients that's up, lined data generative comment question have why and

geographies are we engineering specific and uplift. centers compete the data our where actions we most the in be year. enter of we resource see into the Data-Tech-AI tailwinds terms expect We this industry verticals those year doing of And one as to mine and in allocation this specific

Operator

of comes rejoin. David, Koning please question David next from Baird. Our

Nolan Blair. question from Maggie next Our comes of William

Margaret Nolan

non-FTE your widespread being within priority of bit. great giving. high accounts regularly color and percentage comment how adopted could been is traction kind you you of on work that that to the of hoping you've particular little was provide have It's within those I little you a bit that accounts. a Can that give

N. V. Tyagarajan

that the the And XX%, in have get that revenue heard At it's least question. Maggie, over we'd get term, a like we higher great, of penetration there bookings of commercial a So accreting. is seems we'll last of to be great is in its than alternate accounts, I remember, that keep our to you average. non-FTE level, faster And tolerability priority because high the at our the that to than long XXXX you XX%. is terms commercial that therefore, tracking that of higher penetration XX%, and as we Within models as total very reiterated there said models, penetration which quarter, my non-FTE horizon, remarks. pricing models company

than The company drive be supply higher right pricing when it's able value non-FTE you with in very to combined all chain. put don't but with do is ability you to And away, exact real have order accounting, of financial give of relationships, drive is simple, smaller enough be can that tremendous, management, scale a able and to we and value when the you often together, tracking you to reason the participate wouldn't that creation. number, average kind in value-based I the that pricing our the and

Margaret Nolan

of impact current to is longer-term quarters? cost can the margin margin anticipate kind you next the do that going couple or where the optimization an dynamic have then cycle work with gross come projects short operating in over margins, And this versus on the on of

Michael Weiner

separate going with margin. are that on our gross it's X there's associated Well, dynamics

we when offshore onshore we the margin to it have ramp-ups, when large these and tends a business know, perspective. gets term particularly effect take delivery deal from and to near accretive the dilutive gross in a have on you As move

AI is slower have gross revenue that a With tech on when and on margin us disproportionately we margins our as well growth, benefit countervailing view that the data gross basis.

those that think year in with with flat into in said, the directions. a recovery next and be I they'd with counter X Data-Tech-AI, on different going our go-forward relatively So things going projections basis

Margaret Nolan

your Congrats, Tiger and BK on announcement.

Operator

question Citi. Ashwin next of Our Shirvaikar from comes

Ashwin Shirvaikar

would you. pleasure ops at the been you long with digital as the BK, digital the working well Data-Tech-AI like would congratulations I be business I quarters, a things and look and shrink right, And still, have without of XXX for still kind sequentially on And working should growing range of question don't Tiger, imply it's December. XXX, should know, And very Data-Tech-AI you. most guess forward a that, look kind is to with deserved of budget imagine, without Guys. to congratulations, right? so the, and sort flush ops, I run. even I can that

line? when the kind comment. carryforward they from less, What think of visibility to on try I you or to kind that worse? of quite double-digit just not color I are want by Is So comment of better more get do the a of of type thoughts better of Any have that, there? mid-single-digit kind

Michael Weiner

things let So me kick off. There's X to really unpack there.

on off a of fourth a basis, into your operations is on year-over-year perspective. basis. notional also quarter fourth quarter tough both comp correct, the dollar observation, quarter XXX% that digital third sequential So regarding from percentage

of we provide that full digital deals large the and build going So up of quarter. definition, other the I'm So the earlier, the for that have into okay? Data-Tech-AI gone we've as correct, by ramp-up through we the with a some right? going -- year, on with fourth the operations business next said said our we the business to year, comments full that ramp nice that on will space

offering. of our being Data-Tech-AI our Now are with Data-Tech-AI budgeted that and some going right? propel we're We if that's there, utilize generative to of numbers particularly to then the solutions the think with business. regarding that talking business, some particularly think digital you again that out about AI, about, drivers we're that those able our engineering -- data help

Does next than that day, the about than of year it additional is we'll end where less our -- in that's it double-digit the variable that somewhere at provide a We'll think But the right? environment? information early So to so it the had there between have remain thing less ultimately improve? out creating see we would about, the full XXXX initial normal our February. that it logic a little guidance, macroeconomic to year but obvious Does that little the will goes. visibility dictate be we Does have deteriorate, stable? view other

N. V. Tyagarajan

X things one would Ashwin, one onto third -- Mike off on finishing into the big we So that actually, as that add, things of operations. said, on quarter is was of third the pleasing the what second expected had going ramp ramp go had that the aspects is -- our the most that discussion wins Ashwin, of the in quarter quarter quarter, we I operations delivered had and of would all probably the confidence exactly even digital has digital the I one through we going that the what the of And add quarter that we've business to X.

this really the environment, with that are we a of thing come it's comment at all in just through. actually confident, ramps hasn't solid. natural types to But paid your with risk even really even So really, not so it's associated those

Ashwin Shirvaikar

And was had. next going that sort the that's you Right. of regards where expectations I to to with go

by if more the there You're I of broad not to classification granular rebadging type there with delays seeing decision-making deals. by geography? and deals delays I regards you're mean, are types seeing seeing be details know with for. necessarily what regards -- to confirm, of short-cycle you're just discretionary, but with? you be would sort can to Any is What you vertical,

N. V. Tyagarajan

comes you that are project group. you more because guess industry peer the Yes, the once to work the talk to those don't get whole you leaders actually, to and easy probably set financial of spend firms, the projects agree I'll I banks as this with the on we that Technology seeing the firm money ones allocated, the more be project completed, would as want if decide next any of the let's say, of and services and projects. up, would take because next teams it and where question see

the of So set instead means by domain, projects in x x spend that don't to come the dollars, who build same of et products to -- spending the people cetera. divided utilize new we'll build those expertise X. That billion

people example. into don't number those to great sit have taking because the other that clearly with for retail, idle. one move decisions a really a taking in banking, happens, and everyone people Those But those in decision manufacturing consumer advance in those That's tough It's projects goods decisions. take people. are of moment we teams been

Another digital would improvement the front of in be experience improvement end marketing. marketing of

coming are is under is et end the really X flushing cetera. budget the the get immediate? the the to Those payback asked, and under of, those of and of are we not Some get as lens that available, needed year, particularly radar this questions

seeing where to all. I those examples. a give you improve need Supply we're I driven seeing are get chain. macro where chain at not degradation. of chain, a X factors. we I'll supply not all examples example great my need my any to by that are So diversification supply

examples data for any are AI. my get X gen be degradation. ready would X Another where seeing not we

Michael Weiner

we go Tiger, add our us for that, to pipeline work that work of hard converting so that quickly with it's nice too, revenue. XXXX. a that's the that driver to pipeline reduced, The going Just be, as into on increases, quality pipeline associated again, has not actually type into We of to increased.

Operator

next Bergin comes Cowen. Bryan Our TD of question from

Bryan Bergin

My on here. with congrats on Thank promotion retirement. a is the Good BK, you, one first Tiger. clarification. work congratulations

clear. I nothing sounds it crystal to changed. want So just really there's be digital The like ops,

about good You ramp. the feel

were about you would 'XX. you as So in thinking grow what

about that here, on is but the Just were business? change business out ops flattened start. just the has there how on DTA any to digital be Fully you to clear, feeling the understand

Michael Weiner

quarter a well. operations we base continue seen asked no We've to degradation. digital for said as we'll the year. fourth projected terms into and and provide played What ramp worked talked really, ago, and I the out quarter about in has earlier, that's -- Ashwin I And No. out of in last next already our moment exactly has would first second degradation quite

Bryan Bergin

And good. expenses. Okay. on Very just then the margin

So obviously kind you're into I about efficiency need mix guess, how able investments? costs, reduced leaning just offset, versus as you're can you aspect this, talk to you're of here but balancing the growth for of the

Michael Weiner

do. investments In in investments future. on from away growth our particularly not cohort that not pulling comments, Data-Tech-AI efficiencies we articulate, very and those not prepared work not investments. that to -- We're pulling natural my for Yes. down We're or There's away cycle, in I pulling the of business, from But the small sales we're particularly and from it's simply. R&D. marketing we're tried

Operator

Instructions] [Operator

question & next of from Needham comes Our Mayank Tandon Company.

Sam Salvas

Great. This for today. is Sam Mike on

new quarter? was one verticals see. had logo this additions quarter logos which strongest to quick talk you The XX Just this new good from Could about a guys me. the

N. V. Tyagarajan

had we the Actually, know Mike, prepared withdraw versus is or half in come actually if of nicely back reasons we very good reason are first it pleased X we technology distributed And the the quarters. across in a X bounce year, my reduction because for all our some all smaller, verticals. And all was of down the what you called faster-growing that with reports half. remember I the companies saw first the that for that X in prior

replaced Got Asia as across clients larger across whether verticals all well, or America. it's other geos and by Europe, interestingly, North

Operator

questions back now Sachs this to would to I'm time. showing it further remarks. Roger closing at I like for no turn

Roger Sachs

look to February. for everybody you speaking forward Thanks, us joining we today, early and to again in

Operator

you conference This Thank now you may disconnect. concludes and participating, today's call. for

Genpact Limited (G) 8 Nov 232023 Q3 Earnings call transcript