G - Earnings call 4 2023 | Genpact Limited

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the 2023 Fourth Quarter Genpact Limited Earnings Conference Call. My name is Michelle, and I will be your conference moderator for today. [Operator Instructions].

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

Roger Sachs

full to our and Full we and floor BK Call. finally, our Mike and IR the your that Year CEO; you've Tiger a Michelle, note to detail our and genpact.com. Today, then Fourth and strategic of our to We and cover speak greater financial section afternoon, press had and performance change earnings Quarter questions. Please XXXX high-level also time. our chance for Financial of to year during good you, comments Officer. President Mike XXXX, will on goals. welcome start everybody, outlook Genpact's long-term outlook, the forward-looking hope priorities and release expectations Thank opening today, posted our make and strategies the in read statements with Kalra, as will our predictions with statements, before our These outlook, business overview Earnings Tyagarajan, our about us Weiner, website, plans, BK over Tiger incoming will of will a this have may outgoing call, we our CEO; performance and President and are on Chief based including Conference which

certain with could filings Our financial the the risks measures. and SEC. And risk a this materially uncertainties, non-GAAP differ actual XX-Q number during results we including and XX-K factors to due of discuss will our important in call, our

our Relations And We transcript this hours. And be in These over to measures to being non-GAAP our those in available substitute be intended will replay an have the few release. Tiger. me webcast audio and GAAP press is call website, entirety a finally, the measures our are from earnings let on reconciled website results. to in financial for comparable our that, turn directly with Investor its call most not GAAP a and

N. V. Tyagarajan

us everyone, for to a overview and today CEO, and quarter BK, outlook brief incoming Good priorities call. through take thank full mute. of strategic for I you earnings financial and over for our year with Roger. joining fourth XXXX was Thank start you, call XXXX our results you the our evening, and on our XXXX. will to hand then I

a remained total currency Inflows full million. billion, XX% services year basis resulting in the and XX% points billion per currency billion, as for a year-over-year; share both per of operating new of XXXX, of up $X.X $X.XX diluted income adjusted a on $X.XX, year-over-year. Bookings constant reached record levels we revenue new the services For margin currency added pipeline exited of XX.X%, versus and adjusted driven constant reached we record and and we of revenue Win X% year-over-year $X.XX, $XX large which points earnings year-over-year on than delivered basis XX of X% of X% XX%, up a full earnings year up that share X% the $X.XX healthy, margin was XX% XX signed diluted year. near basis greater XX% income to value margins billion, we strong up up prior year-over-year; basis; up increased reported flat gross a contract total up the by revenue a with rates in year-over-year $X.XX each of year, and up deals, an on high-quality Digital Data-Tech-AI logos. basis, X% constant as year-over-year; year-over-year; or as X% Operations operations XXX XX.X%, XX reported as from basis and on

higher be number initiatives our wins, progress of XXXX. the Sole-source reflecting for on which deals typical key represented level. XX% to deal tend made year, of bookings XX% our competitive. Throughout much more below we large the

revenue. total X% grew accounts First, priority revenue from XX% and of year-over-year to expanded

and strengthened relationships develop cloud we joint partners key expanded co-innovate to IP technology with solutions. and Second,

to the in in investment new total commercial total Fifth, and for our platform. year. consecutive on-demand and large hours India. we centers fourth X Tier in reaching for deal workforce finally, earlier. XX% I continue full Fourth, team the described Genome, that XX% we and the learning XX the million cities bookings in revenue strong Third, trading of operating quarter models, generated scaled on revenue fourth with of our non-FTE drive global opened year, And X our non-FTE deals approximately pipeline completed

during turn years. over Finally, to a BK, I moment last major want the to take these call to Genpact's I accomplishments before XX on reflect

service total grew growth we chosen annual of sales number decision business and last including over a double time, in pivots, the with set process of geographic down strategic years services. in X%, that lines driven services chain beyond verticals, supply a investments significant at and with to move extend X and the of our our tech markets; AI; to and emerging finally, rate management, compounded revenue data, middle risk and and and industry office, During our front commercial important our by a decision to

see to has most my relationships I It our better cultural and not could has team. I'll has a miss endless of is be Board been not deep have to and our passion CEO. Their his to my being technology Genpact's insatiable to Board built him as excited turn verticals become them of regard phase and next without that, mentor. With of with in BK, focus cycles revenue success, the lead constant care person being occasions am generated outcomes to business, trust leadership to His interaction a our that with and and a picked the success lead my understanding bias foundation financial stewards learn of to many of our multiple AI I daily call key through on been possible would next and expansion Genpact BK. me. evolution driver and over health and journey. With he such finally, collectively the for so of clients for an services transition has next be company a want on our XXXX. I driving value source consumer driving of the strategic strong All let the $X.X And with significant efforts Genpact. our this and that our me the team's thank the and and in and inspiration of curiosity of client guide great very tireless sincerely desire the my for our billion

Balkrishan Kalra

Tiger, Thank afternoon, good you, and everyone.

role, of the and we the by I incredible start add our to humbled clients, that Genpact significant make me lead people have designing, XXX,XXX implementing and that have the path Genpact. for stepping our accelerating to been saying some team of growth. assessing and the us team biggest to Let carefully value talented towards I excited running leadership senior firsthand put mission-critical the around dedication and world's for world pursue up strategic I'm our on the operations CEO priorities seen the must into preparation we brands. In

that we high execution realize As outlined billion I reach I'm market, CEO XXXX, macro that at goal as is the us full full no $XXX we accomplishments delivered we and Data-Tech-AI XXXX. challenge team our but to also is environment above that our to of the moment doubt I on well economic represent say long-term Operations improve as a reflect and potential. Digital #X the the a growth whole. very ago, there industry must proud must in a rate single-digit sure currency make growing and X% My together our growth constant potential. a

drive will about of member to more team, and to have deliver view long-standing where accountability we throughout organization. In to point with simplification and a clear solutions. more changing I the focus to speed bear laser-focused of the execution. and we We need be our increase having the holistic XXXX, Genpact a and can on improve As are by technology clients we bringing data growth-oriented conversation sharpen

speed increase drive and also will We simplification accountability. to

examples. Let me couple of you give a

sales go-to-market have organization we segments into vertical client mirror and structure, roll unit we to from XX report leadership it our organization X that moving highly our matrixed First, externally. leaders and simplified

operate under time prioritizing, these more to have we by clients with to build we technology the tech particularly ours, since accountability, XXX data, partner with improved our of I'm number days, leadership announcement, and and a theirs senior XXXX, AI changes in our our met spending Second, in first matches continuing execution and already future, sales days increase am committed of to my data, clients Both leveraging will strategy. B, them clients buy. driving as with how and and team. first have in XXX-plus AI-first and shape one further speed which a, inform clients leader, I XXX unified meeting principles. the I to Data-Tech-AI. In my

XXXX, will profitability as will better, improving overnight. full and Genpact. I marketing, we accountability our invest X That leadership done just our last fill invest areas: and relationships have number greater Reaching identify partners. operations, gaps mentioned the usual, and important be our clients, revenue will across is further the as slightly driving We will holistic the in investment. organization. And finance, key cloud continually to thereby in a acceptable. for relationships I'm what doing our position our and past, across time workflow not have execution a improved relationships unique deepening take leverage providers, platform are business industry to moment to happen a we and few deliver In in require strengthening doing c, continue of to and and as potential expertise, broad partnership only CXO want technology well we committed maximizing I to It to and that solutions. in plan and application to made quickly. our team and months to various clear in to said, not additions I talent believe growth domain deliver AI-first. ago, and to partner and data access performance partnerships specialized, our we enterprise with improved with

and AI Second, moving quickly that are operations to all bring embed to market. we solutions investing well. AI-first our in make to as our internal we

Chief our progress. production have testing team our X,XXX embedding with deployed center we will London in conversations, Last in continue we than the and XX,XXX charge members GenAI, innovation client either Technology than lead year, environment in or XX more time, we had clients in first use internal GenAI regards cases of AI in launch programs, operations. With going on Officer, make more a AI GenAI first the XX than solutions For live. the to Transformation Genpact enrolled who rapid and and to training appointed AI more

our overview more I a to provide through upfront. XXXX and high-level go to now Mike would Turning like will outlook, details, but

in gross keep XXXX foundation at year full as-reported therefore flat the X% bias to and roughly future building as our XX%, setting we reinvest XX% margins revenue. and on on year, a portion be to of will be margin for achieve to able With are any X% for year upside to basis. On we expect the strengthen we future course growth the regard upside guidance of over revenue growth, are our drive profitability, revenue we First, a to growth. respectively. our XXXX AOI at business of revenue year-over-year the to into back the will

hand about it I Tiger. I say want words Mike, to few over Before a to

scale capability all inspiring. a of for exceptionally finance I Tiger and to want have the is We always behalf procurement for have Genpact, all platforms supply will of Genpact, dedication like in be for through commitment shaped and unparalleled at His the few. act of name and us Genome like clients leaders at and is to us XX domain the past of years. one On building his chain, of do enormous guide been thank leadership. to focus to to company the his our fortunate teams a world's He accounting, as Tiger and lead on

Mike. on the reports that I I capable in coming me louder words. confident are by speak believe also saying that, revenue potential, we providing said, over to of. Finally, that more growth call the will to progress want our than understand turn and achieve quarters. With and the point, I I to to That And that we want delivering you that actions to full let profitability, you I'm details conclude that look forward know we

Michael Weiner

last analytical Thanks, and ability few named as Genpact's I due classified to energize accounting execution, by I services, increased I'll year-over-year, believe on Having CEO. Today, a your partly I've financial constant BK. spending driven new the engagements, tech climb on-schedule we currency tech fortunate by constant manufacturing worked currency results up ramps, to X% $X.XX Total focus partially last general as-reported year-over-year, was Data-Tech-AI as in around wins. From ramping year-over-year, Operations congratulate closely represents seen full have as largely which basis. by income on vertical XX% increased sales an CEO. a perspective, increased acumen results. spend. due by constant X% X% want provide review primarily notable by brief firsthand supply largely with leverage. finance to recent to booking divestiture from the our data across continued accounting year. on over performance offset the currency operating for in the and both impact you or are in services including chain client our of Beginning of I focus and or service large XXXX. Adjusted years, and total impact was billion on strong being year-over-year, finance to fourth of primarily performance. teams. XXXX. and pressure well primarily largely for pressure Operations XX.X%, year-over-year basis quarter points and of up engagements XXXX due a was basis. with X% tech and areas, basis, This within High services business revenue large Consumer Digital ramps as of revenue, both revenue fourth new very increased highlights X% early reduction revenue you Digital deal margin discretionary reflecting of held-for-sale and supply increased services then of to increased and the quarter and scope offset logos recent of X% year partly ramp XX operating XX% of revenue, a on deal financial you will revenue driven offset higher Data-Tech-AI high-tech outlook total risk. and gross year-over-year and which revenue, healthcare chain solutions in revenue, discretionary X% of year-over-year, X% a represents

quarter absence was basis from points expenses recent business As better year, points ramping the and primarily held-for-sale mix percentage as deal included Gross year offset a XX by well that last operating implemented that year-over-year leverage, utilization last of revenue the up the reminder, development to cost due revenue, offset by impact large to early in fourth quarter our marketing XXXX. performance improved divested. Digital been during quarter of as to divested management of as fourth of basis related The and has as largely the wins. SG&A designated investments XX positive improvement in Operations nonstrategic the in higher year-over-year the overall fourth margin sales expanded a XX.X%. of year-over-year, actions greater businesses reflecting and the the of research was and impact

nonrecurring of primarily XX.X% effective compared period related negative XX.X% a the to Our rate year, benefit during last was same rights. intercompany driven by transfer intellectual property to $XXX tax million certain

diluted the impact The XXX% impact EPS lower from year-over-year. of These quarter and adjusted effective would GAAP the partly was increase by just year-over-year. was to shares rates $X.XX, benefit million, $XXX the of year. taxes, XX.X%. The offset up remeasurement XXX% last tax primarily $X.XX year-over-year Adjusted a fourth income I to $X.XX, in income $X.XX, a by each, of X% our impact operating driven same year. compared benefit of from $X.XX the XX% last interest related $X.XX FX lower lower was reflect tax the of been EPS mentioned. gains outstanding this expense, $X.XX higher lower growth impact, Excluding rate was GAAP up net have up period

than months historical XX%, fourth during of Lastly, attrition the low rate and rate our was service, attrition with for for our X employees quarter. levels. Adjusting our of the XX% attrition was involuntary less end the quarter near fourth

color revenue, revenue X% me basis. Operations Digital currency let of Total around or XX% billion, X%, on was X% both provide Now X% constant or $X.XX which basis. up currency year increased you of a total which currency year-over-year constant services XX% an as-reported total basis. represents revenue, Data-Tech-AI some services constant a and revenue, increased on full XXXX revenue, year-over-year performance. represents on X%

of XXX we $X the the client greater revenue XXX. to annual with During grew than year, from million relationships of number

greater Clients to from XX. XX with revenue clients X from $XXX of to Additionally, than X. million annual more million increase expanded than $XX

the expected, flat was the the to large As due income significant adjusted year-over-year versus gross operating largely to gross was portion margin impact and This the year ramping basis margin, exhibited for early our leverage. XXX points operating overall flat year. related driven margin well operating XX.X% of of delivery latter gross new wins margin as onshore the declined with XXXX. expanded XX to the primarily of in of was largely lower that that years. Despite basis investment cost percentage to XX%, to of during revenue SG&A points activity of divested by as expenses business higher a nonstrategic efficiencies the by half leverage absence offset as due deal

Our tax in was full transfer from due XX% earlier. from the nonrecurring XXXX, benefit to rate X.X%, the largely down negative IP I mentioned the year

transaction, that year Excluding been our tax rate XX.X%. XXXX would effective have full

year count of gains offset $X.XX partially during lower $X.XX. a $X.XX, tax increase primarily operating benefit, was by year-over-year, to up $X.XX, of up XX% benefit interest remeasurement net GAAP EPS X% was expense year of full year-over-year. Adjusted compared this $X.XX, XXXX GAAP up $X.XX Given was XXXX. of lower income year-over-year and income $XXX XXXX driven lower our diluted in our taxes The adjusted $X.XX to higher related lower $X.XX, by share $X.XX of from million, full was XX% and FX EPS net

exceeding the rolling $XXX to total million debt last debt cash million balances, Turning reinvesting in pursue existing year of totaled the from and to outstanding back The quality client have models our interest increased remain XXXX sheet. to on quarter expanded continues portfolio strong. credit penetration ample cash pricing a our to million at higher practices million and capital DSOs, net debt-to-EBITDA growth management $XXX the operating to balance the Year-end was operations, strategy our of of $XXX flow allocation approximately generate the days in we With we X.Xx. income. Capital our The and and our M&A XX of returning revenue elevated. of adjusted rates XX exited and by by cash X ratio higher expectations. with equivalents driven this to overall was reduced capacity XXXX. for year. of and as of cash X.X%, as from Despite to undrawn compared able of majority percentage end shareholders. Days were expenditures in of due opportunities to the fourth non-FTE flexibility $XXX our very capital pursuing outperformance be expectations cash quarters line a with and We days of cash execute business,

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

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

calculations. net for we the meaningful XXXX full during set our by advantage initially intrinsic share discount count reduced outstanding we took X% as year we as and in expectations value continue our our of to buyback Our exceed the

color provide you our me on some outlook. let Finally,

First, to into in a XXXX. guidance see adopted heading structure that, we've our acknowledge want you new as press, I can

and Data-Tech-AI services adjusted and guidance for first full revenue, margin. and revenue, revenue providing now with Operations margin Data-Tech-AI total are gross we services along quarter guidance revenue, for operating Specifically, income Operations Digital year Digital

X% Digital be is X.X% year-over-year at and of and approximately to midpoint X% of patterns. mix offset services total of year-over-year to year for approximately of the the taxes full we services a of year $X.XX. This the X% higher revenue XXXX ramps to growth approximately Digital on the a timing $X our the Let expect constant half Data-Tech-AI at billion, higher FX year year which as basis. I and to the growth range full revenue as approximately expense growth impact positive adjusted related follows: higher outlook and and to X.X% represents with midpoint we year-over-year Data-Tech-AI of year-over-year as second of of revenue me margin details. Genpact's historical approximately first X.X% operations expected to bookings X% review billion of full is in due year gross Operations year-over-year is this that reported $X.XX related the of margin half, services in and includes of the last in and reported, share range line $X.XX range from associated in impact -- range EPS the interest the $X.XX, count income Operations year-over-year of approximately X.X% to basis. $X.XX negative currency gain on of of $X year. approximately X% $X.XX, currency to adjusted is our the representing recorded year-over-year impact the to of constant the This revenue of XX%, of of based lower includes will $X.XX the as by XX% and with remeasurement Full would million revenue year-over-year deal X.X% like also on services note

our XX.X% rates XX.X% benefit Our lower compensation. for reported to the XXXX. The rate minimum compared be stock-based new effective the increase year-over-year as of expected implementation well year reflects related tax as to to tax full is global

approximately We be $XXX are of be approximately systems to are as includes to in percentage to which XXXX, a X% investments revenue upgrades. operations from expenditures X.X% related our forecasting cash flow Capital to internal expected million.

to quarter in to the the This midpoint the approximately follows: margin of currency or reported Data-Tech-AI year as with growth on at and X.X% approximately revenue the as is X.XX% over start of growth Digital XX.X% year-over-year quarter of and first X.XX% revenue basis. Gross make to improving X% year progress Operations basis. of approximately X.XX% billion expected approximately currency X.XX% first growth we the represents $X.XXX at adoption models. pricing approximately constant of year-over-year income expected and X% total year-over-year Digital commercial Operations steadily year the to margin the billion the the first revenue growth year-over-year X.X% Data-Tech-AI $X.XXX at of is as over at of a midpoint quarter gross and services Our range year-over-year in to And non-FTE Adjusted includes of services, of outlook reported. the course services range course for continued approximately margin is as in of as operating the on start approximately the improves. year utilization increased offshoring a delivery, constant XX% the increase and of the growth

spoke that Our upside BK of in year-over-year in through investments our dollars into year opening the efficiency full upside about BK increase his growth. to that and basis. is we're the of in remarks to bias course back little will That extent on said, noted, funded the expenses no to expectation reinvest business deliver year, largely partnerships operating with future terms in be of over a revenue that gains absolute is revenue AI as able the to portion for a

quarterly repurchases XXXX. remain we payments. buyback to through cadence Lastly, anticipate shareholders during approximately returning cash for XX% operations flow dividend of share to currently committed regular our capital We and from

an per approved quarter $X.XX Directors to increase Board on Additionally, $X.XXX dividend or our of in an annual regular our basis. XX%

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

to strong XX% year. our to long-term value. With operating in closing, during I'm us over expected will cash flow In me With let speed distribute the laying a the of plan through the said, call position we organization drive to that drive is the increased that confident path back BK activity, focus, Roger. shareholder this and to turn put to accountability shareholders

Roger Sachs

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

Operator

[Operator question the come JPMorgan. line Instructions] Puneet our is from of And first to Jain with going

Puneet Jain

the Congrats, had thought BK, the last all over much you more role. than actually. Tiger, your leadership years, And new and the -- so we've XX for thank discussions for

like at full you a to start the terms the like the of the guidance. the for at for looking year the like look question it expect ranges, and So QX the I'd levels with in QX revenue. on looking like year, from like guidance absolute as of like ramp steep doesn't number dollar Like

like those those -- So comments? that be all you I buildup. changes, know Can revenue? impact double-click mentioned rest simplification, any on for year -- Like it expect like all they like makes but the do like of a on seems trends have the it of year? you like will which will you sense What

Michael Weiner

Yes.

about more totality, the about it. with about I So right? So if talking color, start turn guide, we're in the little color additional to provide I'll me over let in you're how to as think correct guide then some X% wants to on it the thinking BK, to a he we X%. want give you

took our XXXX second macro. that the at a with of we did assumed no right? year, assumptions took to approach in we creating improvement detailed in more very bottoms-up from this change guide, the think key half a really granular level. The regarding approach prudent a I regard we the What is macro. We planning

against good bookings, into Now XX%, the period. at -- have deals. I said, coming notably XX% X- netted that macro small seen Unfortunately, some remembering being the say, tailwinds is a in to in we year growth should have hitting that in the that bookings weak over us that we comes in X-year growth

second comments better of through it, you're XXXX, not we to any it to quarterly right? That's your as we'll some regard in want asking we And typical year. that the -- the my far will seen we to, guide, second guide, that And against on So that given a towards recovery what With into can the you macro be anything, predicting we're in our believe the we're netted factored we you we've as better. also move in on about said, do in the what the revenue been the have the general comment as of that productivity first basis extrapolate earning gave scope the BK? the a execution, half cadence we've the and quarter do add continue if with guide. other of changes than skewed more half guidance year. to half do, committed And first as I

Balkrishan Kalra

very Puneet, would And mentioned it don't I I say, you said you macro we think well. And look, much. and thanks Mike. so execution, control. macro, Well,

We for guidance, see color to will do to progress. that we stick But progress. made, we'll as more simplification the more now, provide as I you and as this do, Execution, deal and potential. Puneet, wanting we you we we we execute, comment are

Puneet Jain

Got fair. you top share it. few Genpact's hit double-digit like No, line that term. the to medium Is prior doable I And year? helpful on can was that over this long-term still beyond years? growth think the a that's also thoughts guidance issued was your goal and

Balkrishan Kalra

that look, we stages following, my you're full come growing take think will and back its execution, if that grow of rates. at is that you are tier here, focused And about we is that. me we we in above can Am in to? let I'm So and achieve And early yes. our potential, or market more will And what can above Puneet. mission on. as asking, My at of update think answer needs -- progress, think we innings improvement that are potential. I I execution, Genpact on that. as we have to market? believe certainly is is market I we clear we in we -- or overall do improve specifically XXXX holding is how to I'll full The And it

Operator

to And our is Instructions] BMO. going [Operator Keith Bachman of with from next line come the question

Keith Bachman

I had couple. a

prepared remarks about don't from times few of improvement to to I'm improving steal what execution thunder things any during do or growth? better future terms execution, just but trying a translate mentioned your understand, want need in and I type You've might you conversations to of on that think presentations,

Balkrishan Kalra

strengthen foundation. execution, We domain global and when How relationships, strengthen of And foundation? of foundation of a I that client Great talent. high-quality is is trusted think it how question, I speak buttress do data, have it we Keith. foundation our we about further. about Foundation and how very

So of take an example clients.

of We on technology to holistic our competency our our solutions the and the in, if that's front-to-back that, are holistic. Or do are you speak, more from we far so where data domain, we conversation bring changing of again, as conversation are more and conversation, are focused in making our we clients. for think and and we how more include investing wanting making solutions change we solutions in data and and solutions partners, to growth-oriented

that. I come it this mean it, driving chair. I an And is execution. and by is I'm is this will what thesis results changes and part of I mean agility And improve of Simplification execution. my we into early as integral That's what that and -- that seeing are quick is our accountability, by

Keith Bachman

you think relates Okay. is about you the Or using the existing but allocation it projects, more about changing terms free XX%, flow that or nature new M&A? of do I think, relates or same? to is mentioned to the of think it how opportunities changing And M&A question how either particular? expanding getting into to And strategy my do as follow-up of capital so in skill cash sets in market you

Balkrishan Kalra

But Keith. as I it M&A connect to M&A, Look, be assets. strategic you, back how I'll it for continues want of and think think other be have think update attribute we as key well a our in has, will to Can done you -- Thank the is standpoint us. integral execute It integrating along execution is disciplined more but always strategy? yes. we would and from continue part be. go I we will improve M&A and ROIC finding reasonably And in execute, to to we yes, answer as and The Keith. lever we following. our assets, is I we about it I is think yes, of the of execution. And

Michael Weiner

inorganically. to Our number for looking financial the discipline to, in else the alluded everything that thing organization additional and is, building how just we're capabilities we're BK one addition for is

franchise. those the come capital that or build GenAI-related capabilities, build to be to there -- about, deploying AI-related, So extent we'll the upon

Operator

it the come line going like question is William looks Nolan to Blair. next And with of our from Maggie

Margaret Nolan

strategy business? of for Can hope of you go-to-market are what outcomes this simplification the the the the on you and elaborate

Balkrishan Kalra

Maggie. Sure,

that build our we understood organization, inside us And coming as with I as clearly, really from yourselves how agility and as to is teams what think you dimensions. the perspective various So in and from start you from the me as somehow to well. happened organically, client the orienting well increase as internal can accountability.

so So client I I it service days orienting companies similar When in of by oriented say we from ourselves And report asked. specifically what is have simplification, to organization. mirror retail as done capabilities, dimensions, for take clarified but consumer data that, -- will multiple we to and this an mean but had in orienting and exercises XX always the that is everybody we the AI build we back, example we matrixed business oriented organization had, you build of the think organization, and with simplification or or other XX what goods we units capabilities. clients what be I as last the

Michael Weiner

Yes.

we're I that. what of with able are and on grow revenue be frankly, opportunities pace. quicker, quickly to quite our that for and out all to at is think just just to clarity hoping add The move I'll speed faster there. a Ultimately,

Margaret Nolan

how into and then and the incorporated helpful. between you something change about on to XQ that And change That's of XXXX segment. any the XQ DTAI in specifically guidance? then the we you Did grow sequentially? should that potential allowed think how And context

Michael Weiner

Yes.

move still now scope a the sequential That into impact They year-over-year we of higher quarter change little on talked talk We and historical within was deals by offset as typical which bit right? have we from basis. those about we the the move the better. quarter in our XQ. on new movement quickly productivity So positive me to through work, in as about. As large even They a first of existing our XQ new deals continue average, deal to guide, ramped had impact actually they is let X ramped expected.

pulls or of of absence historical vintage terms those as some the which in you that the the existing growth contracts, of existing the look at However, vintage which when timing, we've of on as is hired down with typical well contracts, productivity deal-related nature has of fewer of just as in, affect in to the a us which going is XXXX, large in in had year. flowing -- the first quarter. largest low the half first seasonal the which well DTAI second as half They're deals lumpy

Operator

line And from Shirvaikar our next is going the come question of Citigroup. with Ashwin to

Ashwin Shirvaikar

we sort quarter. and changes on see margin a year-over-year asking BK margins. last I improvement. of on Tiger, announced do the with question can of formalization guys that Congratulations, you start Maybe Normally, the

of question then of on kind to cadence very what's the a You're Is margin XQ, see? to What's X of And starting you're kind what that. holding XX%. with the for driving is that regards specific line in wanting driving a then out part invest the expect margin signal to with should -- growth? And that? we

Michael Weiner

So hand I'll end you. start and of to off BK to I'll at I'll the talk it. over

additional earn historical So fixed have growth in yes, at those we're holding based the investments have a monies staged normal are putting we projecting. constant, is year as it of it in that But will that cadence business notably we're the on we're the as quite throughout into patterns, you're what will the expand throughout and we also cost we're in business the expand So on the the that our doing with terms it relatively will right? dollar right, year. revenue

Balkrishan Kalra

Yes, and inform growth above to or But is along, more yes. we'll at market more grow. up for invest clients, more? to we you sure we The as make your understand, we listen as we -- I are But have. go inform about about add, thesis. always clearly, wanting our I earlier. Ashwin, from stacks are And that rates. will thanks much we And we investing as answer I'll Are to so what infusing comments

Ashwin Shirvaikar

of And my with go I where sort BK, wanted question. to next that's

mentioned already. have on XXX-plus started obviously, in you You meeting first the clients that That XXX days. period, schedule your

You've on you your back some granularity maybe to the capabilities, invest? met share you are from then incrementally regards thoughts with with might a M&A? number commentary of And what need of you clients. perhaps clients getting where even Could to sorts

Balkrishan Kalra

question again. Great

to, that's Point demonstrated value environment. the particular transforming sectors just the uncertain board in So see one. Point conversation data case every is And say how in in we X Ashwin. just a them the broadly, comments operate ways. which number conversation two, about, in ago, And them, and a number I'll wasn't macro alluded not still many of to certainly but and point number therefore, months look, Mike front-to-back seeing number more months across the componentry has very thinking ago. I X quickly, X you about are of comments, transformation, generate in? And have AI, what lot we one, our function, clients hey, of we think that do

we You with take press an of partnership did Solutions leading services release Solutions, we Advantage example provider of where Advantage marketing announced a a for in that consumer and recent the a sales that we to Salesforce, goods [indiscernible] larger announced solution. for our space, of is deals we delivering process AI front-to-back and them, the this recently. Along are with led one our it and

are buttress Mike a various us. like while integrating M&A in that the staying on pieces our for them. standpoint way, well to ones disciplined feel are shape from our to, time an significant are of as really like conversations in and looking conversations the exciting and earlier in we constantly really more So M&A are these But and about ahead alluded taking we to pipeline the build. AI excited our we going believe as We capabilities capabilities

Operator

And going come line question is with next Cowen. from our to of TD Bergin the Bryan

Bryan Bergin

driving simplification to more the DTA the again. sales BK, seem and the shared leadership consistent growth first here on BK, center I My you and appreciate execution. Those on details consolidation. Tiger congrats question, really

the wanted there also here, any are of considering I cost equation. organization I may the on you investments profitability? in lean to into to about ask your but understand side improve got So changes view you've you the going structural be you're growth to

Balkrishan Kalra

Bryan. thanks, So

constantly feel answer one, I look, chime in improving focused think are number is X Point that Mike, I'll and parts, yes, free in. on So yes, answer we profitability? yes. The to

over that cadence and seen X, And XXXX. in You've X you see X, improving. the see the you years last consistently year-on-year, that

to our want while better, we profitability And grow this also, thinking improving number to our and are evaluate clearly to cycle, are to through we least growth. we line if number focus able constantly grow year, will are so top Point in acute we how grow. on investing to at stay two, we dollars. have we as go ramping investing So we one. Point range invest for the that the

Michael Weiner

our about company, Yes. in talked I'm you I do organization reinvesting in we're trying mantras about things, think it parse that. the adopt functional is, right? really my on drive So test right? of pushing X finance, XXXX our when can AI-first in we one the what can embedded included an He's our own we cases into area, cost does in own solutions going efficiencies, for in BK's guide mean? it you every AI to production organization we're be well how the and hit that as But will to what efficiencies well own business. as that

And a of increased list into really it. have plow to on, investments perspective. capabilities at a just that for from the in going lot cost ourselves a laundry leverage all them take to those So supporting we're sales. future of efficiencies in will able execute years we XXXX, being result we're beginning level the I looking we're and ultimately and our of them, of of and many we're can that having, foresee that to all But productivity an to of

Bryan Bergin

my Okay. client large performance. on follow-up That's clear. is And just then

weighing [ large year. So here ramp there had last -- ] any as know downs client are We that the 'XX? ITAC are enter you client you

be like new the Just year ramp further may year the this that curious if there's as bookings. any that you of reductions enter offsetting

Michael Weiner

that typical more cadence that. the on nothing than have No, we

at all to it's same average. the it, We nothing historical call So within look out.

year of. last nothing had aware like we're that there's nothing or we So pending

of any for planning not that. we're So

Operator

And the our line from question is Mizuho. come of with next Kennedy to going Sean

Sean Kennedy

Are depending and barriers specific wondering to client how reception I and see GenAI do there any overall readiness it. see the overcome? you was And difference client's on to of a project? you type your

Balkrishan Kalra

Thank Sean. you,

the is this with resounding provoke, a client, every wanting conversation, ones the say we excitement client answer to So the there parts. are have single parse yes. always ago? who into months conversation. of the Is case are before, wasn't and overall, X which wanting are single to a provoke X but lot I'll they I'll we Every

doors open, point is are number the So one.

structured However, outcomes that into expect as data. is fashion. in just not example result can that AI quick Data the take of they a

that bring our of that as we us have. well all is So as framework data helping capabilities AI our

for AI into last the since time XXXX, years, time Frameworks the X been frame. have RAGE We we XXXX back in acquired

honed frameworks have AI. we So on

with X,XXX us this turn So that's that really my prepared that helping conversations. is had we in I on AI. And remarks where reported

-- see about the record increased conversation So but production, numbers company, also we but feel good I reported velocity really have into we every many that. are conversations that disciplined single that gone a have of and we do as that, we

Operator

Wedbush line come is going of question from Securities. next our with Lebov Spencer the to And

Moshe Katri

you're on Katri It's Wedbush. to from welcome, BK, whatever good luck Tiger, and Moshe do planning next. actually

temporary question, So those least think growth you my for client base, top are also happy some i.e., you that to maybe that you're That's maybe worth that potentially first need impact the customers prove question. your with this at portfolio, not could you of attention do line year? have, BK. that the and are you looking at When really

Balkrishan Kalra

Thank you.

that So clients. what Fortune we all of XXX get feel exceptionally Fortune our not clients good named, XX, our but is clients, about just all of

companies. in proud of right, the are we are And but in they their very base we are iconic client all client, disciplined We single onboarding every very, own have. that very

isn't you So specifically no, plan any there that asked.

Moshe Katri

kind then of to the back commentary win going the rates. and for months next X, is on Tiger's And Understood. XX follow-up about more

Maybe rates of pretty win kind pretty bit do to drove you win basis. a year-over-year uptick. a we a can what rate It's improvement that kind of what on need uptick. number do about to a talk had So higher? nice that moving keep on And impressive

Balkrishan Kalra

improve yes, One, large large solutions rate that reflected in partners. deals number million. also in and are Tiger very -- large that Tiger this holistic. -- XX% I that XX increase in making the about focus and we of And us results. the very, percentage spoke on helped That number win tech, $XX focus had proud focus will It's you more increasing we question. there reasons. greater our we is is, far about. Point And are we that about win and has three, things. deals, win Salesforce. a we spoke was win some and our than the rate rate. bring is deals. few are And fashion. data And X That we on us our rate XXXX, also And achieved. increased point our I'll helping is increasing spoke investment see great that our say are two, on specific again, we a already significant

another of days a We release couple also just on announced press Dropbox. back

their procurement ServiceNow have function. We to Genpact streamline and came together

also increase rates. So win is partners our us helping

Operator

Instructions] comes the question LLC. from Jefferies Thind line [Operator Our of next Surinder with

Surinder Thind

BK, more Genpact of about this about? a this of transformation thinking the terms as it you're sales to Or is take of that is commitments delivery Is And as point given generative really kind conversation clients productivity it that think asking at I just all talk metrics on and this have evaluate the how change AI, you're also part side? you well? lot frame kind point, here? that journey rethink do the question are going on key to you're how in for about of about of and about at structural the to the can the you about maybe time

Balkrishan Kalra

If I that. me any, formally but you as day is can CEO. many don't first question, are answer my questions your in there let Today So that parse out, call Surinder.

that, years. I for many many, been yes, I I've So here think would just say

So I understand our well. clients and exceptionally Genpact

about that, we our clients. is as for speed said what talking therefore, is of transformation are front-to-back just essence. Having So one, number for us well, not point

we alluding If Transformation lens first for is history, announced this particular AI-first time with earlier Genpact a Chief note internal to. that role processes that Officer that you Technology Genpact was transform to in and would morning, and Mike

with interact is I clients. think it another to not as how XX And launch well are and end specific. as want business. our of to initiatives, middle just but there on we it, initiatives stage at and of committing looking an we are to do just internally, XXX,XXX also expose So X we that indicators want all back not us execution at front I office the one the stay we of own with the also focused lead on at coming will be it specific and and will time, there you. will team stage discipline. to we that management progress, have and And X office, appropriate are together and as as

Surinder Thind

with That's last does on the AI helpful. of the the And offerings. data about maybe clients then was commentary to on there's new deals say earlier component, additionally, excitement the looking I commitments year that the guess just the is some conversations all How component. the part related they're productivity impact that signed focused there let's about this that ago of these you of a then that for? And before this

dynamic? an Or ramp? in clients things have do of what slower and Just revisiting do that? we that and had of about of some what's those -- to Is revisit are maybe also some a technology How wanted causing how think clients X opportunity changing? ago light processes that months fast they are maybe

Balkrishan Kalra

I reminding say answering question. missed that. for So to me that Thanks

us. the up been that more new X that ago, for as opened more clients, -- were for has -- asking, I is in -- our we Yes, conversation. Short mentioned for answer pipe answer parts, And therefore? now in just a a productivity, a but you're So for One, No. Surinder. new I'll our it is having are baking always solutions. while there AI question not conversation all there that is us, as lot those of to we is we've

mentioned, in that hey, for clients. opening we competitive think place are been has I we competitive leaning are with conversations think I because That solutions. And contracts newer seeing holistic to in come solutions, demonstrating not are actually new including answer, as conversation Surinder, in, is, Short isn't market, are and in in I We us. because And demonstrating up clients now and building a more upfront data. opening no. there that up I we've fairly we our GenAI we've our a think been that that,

different curve, if at any you. any of productivity it all share all with we seeing happens, not authentically are will and We at point

Operator

and over showing no remarks. like closing turn back I'm questions, to the further would Roger to I conference for Sachs

Roger Sachs

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

Operator

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

You disconnect. may now

Genpact Limited (G) 8 Feb 242023 Q4 Earnings call transcript