G - Earnings call transcript Q2 2024

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Operator

Good day, ladies and gentlemen. Welcome to the 2024 Second 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 this call will be archived and made available on the IR section of Genpact's website.

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

Krista Bessinger

overview Thank Call. had everyone, XXXX our of you, and welcome Relations the which today, our Weiner, release, to of Kalra, afternoon, Michelle. was detail section Chief Genpact's earnings posted us questions. press Earnings We quarter, chance performance have a BK President with Conference and a you and financial start hope to with read website, Investor Mike And high-level Good Officer. Financial on before then QX genpact.com. Mike the BK and your our will will we CEO; we cover take greater in

including today, goals. uncertainties in Please which strategies to and the business time. of also note due over comments filings during XX-Q number important These SEC. results the materially expectations call, that differ our statements, with about and as statements including Actual outlook, could this may plans, long-term we XX-K and based forward-looking change are risks on our risk predictions of make and a our factors will

call, Also measures. certain will non-GAAP we financial discuss during this

the our comparable be non-GAAP most those financial measures for GAAP our in substitute a We reconciled are not have earnings to These release. to press directly measures intended GAAP results.

be our call And will is our website, on Relations Investor from an in its and finally, replay a webcast in transcript available this being few website audio and entirety hours.

to that, I'd BK. like And it turn to over with

Balkrishan Kalra

on of performance another driven end also continue and billion, guidance high us expectations, to XX.X% you exceeded QX XX.X% operations. the across Framework. and adjusted by margin Gross of better-than-expected Hello, operating I our above today. am to Data-Tech-AI income operating of and our strong year-over-year margin digital both with range X% efficiencies. everyone, up Revenue Execution as report $X.XX Krista. in quarter you, joining X+X reached we thank successfully deliver Thank pleased for

on momentum is building. are right We the path and

context, basis. to FY of XXXX, grew roughly incremental top all hit we in an by higher the absolute XXXX, invest the half In have the priorities. in with in continuing year already revenue margin, on gross first in million while For our we revenues $XXX million $XXX

focus simplified Execution growth, build continued best our is a on: continue credential the for one that our Framework AI Unwavering strong X+X Data-Tech-AI with our we year go-to-market second one, on our innovation. and will accelerating muscle of as and comprehensive plus approach; is X, partnerships; execution a the first Genpact to solutions; X half in leading focus

the me walk key Let through you each. highlights on

partnerships. We on our operations IT service see as to typically their XX% accelerate First, give of partners. partner and with to opportunity To strength mature we you growth a relationships. a of generate revenue increase XX% companies the from partner sense, revenue solution significant

doubled partner-related other year. the including scaling of in organization quarter, XXXX. ramping improving significant represents sight name Databricks of generated ServiceNow, key partners been percentage with has us, with end beginning have by Salesforce, delivery leadership world-class line partners, a opportunity team, low to this was to go-to-market more to AWS, like by investing number partnership Microsoft, driven the for GCP driving generate future just partners started than a at our of periods. activations significantly a Growth For revenues This hyperscaler of in we the few. We date investments in awareness, And in and single our capabilities second digits more and of at Genpact. in revenue

Second, on Data-Tech-AI.

Gen and has our our AI becoming drive total business. Our in focused growth go-to-market market expanded approach addressable of a continued revenue accelerating increasingly X. is to driver significantly quarter

than more a half Gen first small, contracted numbers of with are on already absolute full bookings XX% XXx basis. AI of compared year Gen of our to AI bookings the the in non-FTE XXXX year-to-date still more up While XXXX are than

more going is We the significant business weaving have into XX AI Embedding weaving also enterprise data AI fabric with environments very cutting or live. IT interfaces, and deployed requires now a an Gen existing AI undertaking. systems production It than systems organization, in across AI either engineering, clients conversational ultimately solutions into end-to-end of in processes.

deep the environments. opportunity processes drive to the domain stroke significant play We level our key of AI-first business leveraging end-to-end is production because implementation to for expertise business a in Genpact. successful AI in represents clients transformation role and a for critical essential This our an

examples. few a you give me Let

A their has increase of scalability the to leading one AI. a the use is the This in large and through efficiency part and we of solution that quarter of Gen Gen financial global chosen drive Genpact signed design. deals second technology and the is significant AI provider business-wide transformation of

These implementation domain, process large banking ServiceNow of our IT solutions. leveraging along frameworks and to existing of across This be AI competitive has data end-to-end client that the industries. integrated are and systems, can to a serve are potential solutions replicated to template suite advantage We with a AI technology unstructured deliver a leveraging growth. amount expertise, with drive as

I Gen a have and to is our business that. case need their the of AI. example transform clients deep with perfect ground This talked processes study allows before bridge solutions gap domain what the between to how about us on out-of-the-box

their the Cora enable access new to to is procedures. work we for times for shorter platform insights example are and doing knowledge knowledge, with Leveraging employees. and operating ramp faster Mondelez Another need upskilling assist Genpact's standardized to address

in AI transforming to leadership. Ultimately, For and their cost agility and driving by operations competitive example, drive solutions and customer creating data, experience an exceptional leveraging U.S. growth. Australia and technology with Here, ALDI SUD, are we retail

another example is great AI. Amazon for work Our of

all are service few have with notification, to customer create enables Amazon, interactions. a For management, network, that out-of-warranty logistics partner tracking and our chat human examples. in AI-powered an minimal AI integrates These bots for device customer Amazon their and Connect end-to-end leveraged we end-to-end repair proactive solution Europe, and just

day, driven and our including deep for reasons: solutions, us accelerators. AI end world key keep are technologies, than us ever that clients our curve. comprehensive solutions In choose critical X increasingly the and by these data enable technology, of ecosystem, clients ahead prebuilt more domain, trends AI innovative and our At of client-centric expertise, partner to accelerating a deliver the approach advanced the

Coming back to which in Execution X+X our Framework, is the third element simplification.

We that streamline efficiently. so go-to-market continue more to approach can our we scale

rate are process across workflows an have complexity and we Data-Tech-AI example, service and adopting sales we offerings our by As cards contracting our reducing in end-to-end tools. AI standardized our automating

milestones number our examples. AI-driven you for leading second on as best transformation, of credential I'll give specific in quarter. with major own finally, Genpact X And hit we a

user First, our assistant desk desk. we satisfaction service for Cora help reduction in we Xx new XX% and Since launch, a a launched AI IT our seen staff. increase have in global

functions. and future other similar these roadmap Cora assistant HR, aim improvement Our includes AI across functions, we and sourcing, for for many finance,

Second, AI collective Guru Gen internal making of the experts. Coach increasing And that personalized our over to our and me for is amplifying gets AI-powered learning the recommendations employees, knowledge Learning productivity XX,XXX talent.

critical have skills broader are to technology success, our investment of significant Data-Tech-AI. year-to-date, overall part progress scaling made employees Our as and in our we our

completed XX,XXX learning, XX,XXX we AI, are than more have On XXX,XXX completed advanced actively have Foundational have training entry-level work. more who employees Gen and

company, X,XXX end senior we most change are senior like will AI Of the at certification Gen the XXXX. making we through leadership, have AI And the have AI capabilities, MIT practitioners a in levels XX% across gone from delivery applied by significant For schools leaders company. for of

of practical talent we application a in aggressively we advanced technologies. will our continue look focus with As ahead, on to invest

half, Now turning to quarter and guidance. revenue are for the EPS our the of first full another better-than-expected results With and we in performance year. outlook raising strong

We revenue to are the on X.X% X% buying last previously. basis, Similar guidance not we the any XXX X% by from as-reported improvement to X.X% increasing up environment. points quarter, our are growth in assuming to basis to

for execution improved MAY in margin, unchanged simply [ are full We respectively. for gross XX%, Guidance reflecting and full outlook. at remains year margin year XX.X% ] our our

our Data-Tech-AI growth. accelerating As and in to partnerships technologies top advanced we in invest continue drive priorities long-term to

performance to reflect of raising achieved half the strong $X.XX adjusted the For in the we outlook range. of our with also midpoint full the at diluted are year, we increase the EPS a first

of thanks one extend would heartfelt employees. In every my closing, like I to to our

to Your driving our for clients exceptional value and Genpact. success dedication and growth delivering is

is our competitive sharpen to continue expand, of cornerstone chapter and the edge and to we As commitment our of your the and next achievement. innovate continue build Thank we you Genpact.

over With Mike. that, the turn to let me call

Michael Weiner

second you, an Thank your performance from quarter as the and and Genpact delivered of and another all-time I provide XXXX strong report to pleased time operations including outlook income year. appreciate of we BK, quarter our $XXX for good today insights quarter, I'm our review the million. into in third full high afternoon, financial everyone.

to needed growth improvements to We efficiencies. the foundational continue build sustainable and drive

mix pipeline also in of future our reached by in pipeline second large quarter, us level this to for growth. up driven healthy small, Our and medium Generative sets deals. the of a record half well AI a first XXXX. contributed All the doubled

During new the XX logos, a our half year-over-year. to quarter, XX XX% added logos, we total bringing first new increase

deals in booked quarter. also the We X large

sole-source for bookings. rate win Our XX% deals was XX%, accounted while approximately total of

broaden our base. to strong our value client we deepen Highlighting proposition, continue and

the $X $XXX second prior of the generating revenue from to than annual expanded client a $XXX relationships million. compared to period, million quarter During we number million greater

than $XX million while to clients these X revenue million the increased generate exceeding more revenue. of of million, $XXX million in also We clients number on annual from $XX $XX

constant second reported Now and XX% chain was a on represents revenue on our year-over-year primarily Data-Tech AI both year-over-year constant AI billion, Growth which Total the our increased currency Digital results basis, a statement. reported risk of on by ramp-ups for on of This and driving renewed supply due the of management X% currency in is up focus to and performance, was service and X% reported and total $X.XXX year-over-year X% large a digital Data-Tech X% on result in revenue lines. and the both basis. the as grew operations expectations deals. primarily driven income roughly currency revenue basis. and to operations. quarter constant and exceeded quarter

and Revenue we Digital contracts outcome operations It a comprises continues to enhance achievement and This X% at approximately fixed enables now our year-over-year expand achieved in XXXX. commitments drive to revenue. comprised total of accounted milestone value second excludes objectives. clients. fee the priority to profitable deals, Revenue to XX% the long-term recurring growth for prior consumption-based revenue XX% of year. of these quarter. grew our of compared from accounts Expanding total which our quarter to contributed deals and revenue, XX% end of from us meeting demonstrates

of business expense and year our approximately year-over-year. income from X% operations. Transitioning Now leverage segments, quarter, X operational revenue cycle. XX as lower Health basis strong delivered prior compensation top Adjusted XX.X%, points year-over-year. basis XX Care XX.X%, to to Revenue operating well financial X X%, as to was percentage manufacturing points leverage, in the all primary of modestly up while of basis grew declined results. by and stock-based offset by of by SG&A segments prior quarters, increased which growth which driven line investments. services partly our results XX from our simplification by revenue operating drivers annual revenue the comp higher in high-tech on Consumer offset performance reflecting driven from our of year-over-year unchanged margin efforts in some points The ongoing up a increased largely XX.X%, from and stability gross all remained as consistency margin

income from tax improvement Our up $X.XX, year X% XX.X%, effective GAAP prior to EPS $XXX benefit. XX.X% million, was the discrete a a which X% diluted year-over-year. tax rose a quarter, year-over-year. in increase was net had GAAP rate

EPS diluted adjusted climbed growth. Similarly, from up outpacing year, XX% last to $X.XX, revenue

operations. $XXX year significant prior the to million cash from generate in continue period. to We million delivered compared We $XXX

primarily decreased Moving $XXX year. strategic X.Xx on Cash maturities. days of positions increase low up-and-coming Days for cash outstanding balance the debt-to-EBITDA growth the us quarter. of from last the X issuance, to cash our equivalents quarter, for due preferred of will which at investments proceeds same repay and be recent at the The period bond our net in This used our versus to is opportunities. future $XXX to sales were ratio up million sheet. bond by end million, range. end delivered well we last

an at the $XX In shares million. cost we second million of quarter, repurchased X.X approximately aggregate

flow second the in also in to of returning returned to our capital $XX to repurchases, remain the paid cash XX% in minimum to to We we We allocating a alone. of and annual million shareholders shareholders Overall, million $XX committed share approximately XX% operating dividends. quarter dividends. addition

same Attrition quarter -- the historical remains at at the XXX lows under a second last for basis XX% quarter, than year. the lower points same

the We guided approximately to and of quarter. growth as expectations Adjusted of growth. a operating expected the versus of Gross and to digital the is period, prior X.X% reported. the expected at the total as operations of Moving XX.X%, consistent billion, respectively, quarter year approximately X.X% for for invest prior quarter. comprised to to be margin range billion range revenue and on continue to approximately X.X% revenue AI $X.XX income to long-term reported. growth midpoint third XX.X% we of This be for margin is with year-over-year Data-Tech to in X.X% the $X.XXX as

outpaces the For revenue. now to and year at a be consecutive year, previous mark project our diluted fourth delivering the this of the raising between adjusted midpoint we EPS $X.XX, of are We EPS full $X.XX adjusted guide EPS our $X.XX diluted that will represents guide. and growth increase

share of $X.XX a The are offset increases by $X.XX $X.XX. lower of in forecast tax income impact to $X.XX of increase from driven higher expense and The expected is and year-over-year benefit be by interest partially adjusted rate count. operating EPS

mentioned, anticipating conditions As more favorable not are market as BK a year we progresses. the

We half into incorporating projections are performance full first the the for our in primarily the year. strong

to X% to X.X% and digital the a total growth of X.X%, positive billion, revenue as X% between Data-Tech reported. billion $X.XXX AI year-over-year representing This approximately and revenue we now $X.XXX be reflects at growth are growth Specifically, of adjustment revenue anticipating midpoint. in operations and

and margin while year. our investing an million XX.X% of generate in economic XX%, our We continue environment operating to business. income anticipate adjusted $XXX ability maintain and to be full to this profitability operating We to business year uncertain in cash highlighting expect now approximately flow margin navigating approximately gross and

generate us In market dynamic to client value, shareholder effectively. strategic navigate positions and addition sustainable shareholders. drive to investments relationships excellence, our our our to results-driven efforts the focus, returns are robust environment growth to all and These enhance operating long-term designed

to Thank over Now you. I'll back turn the Krista. call

Krista Bessinger

ahead ready we're Operator, go to for questions. poll and

Operator

[Operator Nolan William with Maggie Instructions] Blair. And comes from our first question

Kathleen Kronstein

Maggie. understand revised client for outlook. the it's is My in accounting Kate can guys It's provide how update you is, not are on past client overall any right just quarter? evolved where that with sentiment improvement now on I and first for any the But question demand you

Balkrishan Kalra

can I XX last I'll last over report take stays client This that. is I say largely we that even over the same X BK. on the months observed the -- has What as or would it sentiment the have months.

And as an discretionary the And in So and spend, that almost neither no our we in them. very yes, to uncertainties haven't improvement. deterioration given clients continue either. seen same to the watchful all any stay example, the continue be zone cautious, surround very

Kathleen Kronstein

get my increase consumption it about was outcome-based at to deals. your that nice the could changed what all Has long-term on hear then question in next is percentage to? and continued eventually up And mindset

Michael Weiner

Mike. is I'll that This Sure. take one.

We've correct. put that. of you're goal our we So already on schedule that reached out ahead

is it, we right think we notionally that economic at have is numbers it's expect XX% now today, higher model. it any to don't be I we're margin can it look share XX%, the robust as about at the us But to year. important But number to as above think While that just not so pivot we forward concrete helping about this move on it's back also, approximately continues if what's but remain that to you and average. in new

on that. come to So more

Operator

Bryan next the And TD Cowen. question with Bergin comes from

Bryan Bergin

BK, high-level question. maybe a

moving as 'XX? role areas now. that some just an you're the slower? emphasis for perspective second X-plus months area those here half worked that you -- You've any think the added been of initiatives of in you through on of working versus And well the really you give have Can are

Balkrishan Kalra

Thanks. Bryan. Absolutely,

on as Data-Tech-AI the partnership, best that clearly am all one what on X that gladly as it ones, we second on as be building more we X+X which first AI well, being and I Genpact colleagues one what of or third, initiatives, these call the go-to-market company journey the these the simplified X+X X the And all focused the first X Genpact, through Genpact. motions. articulated, in credential being would are predominantly we So initiatives, a say across client-facing plus with Bryan, I building line along

already. are All and of really reflected well them progressing some I

that What focus and our as these initiatives present are results. that Having many data are on also well also filled that helped at stages said of and as seeing innovation, better meaningfully innovation Bryan, come more all of that we to hard AI us have and done, initiatives, that, future we for early leaning we are has and on we by are into that. Gen and represented our the

Bryan Bergin

nice to uptick digital that relates so in uptick. operations, sequential it as here a then And XQ,

As we happened maybe onetime outlook, more the outlook for prudent can demonstrated? if in out to and anything the that that XQ that there a XQ so out flattens strong little you you've the XQ Was tease changes, that just anything of bit. allow kind approach compare just anything the ramp, or

Balkrishan Kalra

It is prudent approach, more Bryan.

on deals through but I of of maintain continue into how is And the we the even earning each as deals large with cadence bit go pleased quarter And schedule really deals, it deals. wanting we deals, it actually this little balance schedule. see that, -- the with we pleased of year, all a various large ahead on be really a to prudent are medium to year. -- approach also small is think

Operator

Bamberger next Robbie our Baird. And from with question comes

Robert Bamberger

touch large puts XXXX on flowing and and the in at margins that is and So XXXX, gross EBIT deals you 'XX? in how maybe of maybe the revenue takes of deals end deal on of the noted terms through for larger you large the can XXXX and

Michael Weiner

you BK, maybe can kick on me off pine and Let it it.

lower end a in quarters of us about Those at continue to started come deal to for a of that ramp large in the at XXXX. XXXX, a perform -- at a ramping. pipeline higher margin a mind XXXX typically second throughout into as they deals be the and X half well, duration. of notable gross up at large where through in the that very can in the amount the first margin Keep and beginning we're continued mature. had of and typically we Those gross they move point they're deals terms their So as X-year

about So move the our pieces movement for think it year, if the does really forward. reflect as of you that remaining we guide

Balkrishan Kalra

overall, we'll think momentum I and Robbie. said, well continue with the Very

Robert Bamberger

Perfect. And on Gen the basis. a are noted deals, AI bookings then in non-FTE terms of you AI of XX% Gen

So of into contracts with maybe dive margin normal can clients? you you the than have non-FTE-based higher pricing these Are that contracts? they

Balkrishan Kalra

A anchoring outcomes just for of on we the the these say based number of non-FTE-based, end entire When paid And is Yes. outcome we what deals, Gen how clients get outcomes, in deals And on. spoke non-FTE-based. also a are our quarter AI we our which about, largely are that more results they most higher company for are reflected we it. at profitability. and generate are that's they

Operator

next Our from comes Needham. Mayank with question Tandon

Mayank Tandon

that TAM. your AI opportunity mentioned you the expand Gen Bala,

So new too? and it details could little expand up Is maybe the it, could of of avenues a just before does explored by TAM maybe bit opening if some it haven't more you give it? around clients? quantify sense I us how Just you maybe just how growth been that

Balkrishan Kalra

Yes.

in talking as One, for the it TAM scope baking that they we that of quantification opportunity buying be get with stages, speak. the transformative of client-centric are also are in especially we a engaging our see AI And So the -- about, least our Gen seeing existed where some getting are point reasons. would at But are be pipeline might therefore, what or while we we were woken increasing I lot areas decade, intense opportunity. this or we a different we clients we Mayank increases X for also that even given given this of the always but with #X, X And our approach, called. expands because And of at bookings in is solutions #X. up earlier have not of called engaging our clients clearly, Gen challenging think say. it them AI, are and or AI it I Point early TAM we to centers. in of number

opportunities to So obviously those are well. as adding

The size, it's if a bigger bigger prepared large in that deal are industry AI TAM deal, opportunity call well AI pre-Gen our within that deal in TCV. much post-Gen is And in a in deals large remarks, than much client. a as the case, $XX client particular example greater a I So particular we million. it's you overall, million, than services look when the my or the financial TAM shared at size as $XX in

Michael Weiner

I on. would add just quickly

record that doubled as So the So of our I versus level year. pipeline reached said well, think more the year year second contribution X quarter, a in right? in the you in this of about has my also the months full Gen remarks if AI than next

alluded outcome-based business and on feel higher, to margin it a enhancer net in seeing we to So it. net TAM that as our on increase about to, are a enhancer extrapolate in BK looking very support the which that, a revenue as deals you upon being TAM then has does alluded our BK if a we our net that And answer the notion and quality franchise. pipeline, to positive at with

Mayank Tandon

gap your potentially margins maybe does that peer this higher But curious a helps run I you close on EBIT you would and be margins. the create adjusted tailwind at then, slightly for nice versus

I low general been teens, the think XXs. margin level has high

to a this headroom Is to think gap? there. get more you have tailwind close I some longer-term that potentially

Michael Weiner

things. Two

made flow that in operating So well a taken business But remain keep we've leverage growth. as things, substantial adjusted a our we have operating generate the training, are and part company earlier, to sustainable continues partnerships potentially, to that stable including and to and income yes, to BK right, enhanced think basis, in all have we these things margin, our franchise through right. investments into alluded our long-term investments go-forward our mind on pivotal as of

the numbers. foreseeable future in this and at reflected for least that's we'll doing our So be that, year,

Operator

comes Surinder from Jefferies. And Thind question with our next

Surinder Thind

partnership. I'd given maybe that gap the that significant? low. -- your sourcing is us your do peers can was help quickly you between It's where question the the to difference to with get it you your quite how surprising ultimately think close about a peers what you And like so that quite was to partnership are? is strategy Can start revenue understand why where

Balkrishan Kalra

Yes.

is So result rapidly to enough therefore running we And are we commentary, pleased hyperscalers what moving in that many ahead and is not other and Surinder. generating were with made given initiatives, many had I these we alluded changing. given fast with And iconic the it we investing as very we also of are very, connections And was earlier or made. investments have rapidly various the partners.

for relationship in We years in a focused more. of not but see number they been us manner. have now And with them X

a this and certainly to leader possibly and we team early we and in have strong fast. of very have team, we the We results pretty the want seeing strong best close one a gap are up put that industry

Surinder Thind

we fill, about Just is any color on Just color? gap it can shorter? quickly like how Or something any that are talking journey? X-year a

Balkrishan Kalra

X-year Surinder, very X we to are double-digit not long is a thinking years to want fast. But clearly, we get time. horizons.

Michael Weiner

I as on bring well. quickly would just also

their do. offerings. we Nobody than and agree, as in our better we call can partners and into stroke all level I has have chosen penetrate that a experience with that continue and want nobody verticals to clients has our deal with key what domain think other level we insight better we information we hyperscalers to data

our it's our for clients, And it's a for win win It's net-net, win So Genpact. a for partners. a right?

and So not-too-distant and money the we're in think towards that, lot putting future. of we'll a effort see we results

Surinder Thind

you I to terms alluded pipeline, of the innovation ideas. in then And just think some

coming proprietary LLMs. think of about building point? more to the pieces coming you what's workflow? conceptually, down You said How software at towards pushing you other there's build we should pipeline this like Are to trying are related

Balkrishan Kalra

building LLMs, I for, developing as the example, the accounts many are as LLMs, internally one we number innovation if would backed including the taking a think we speak. are all within of calling finance, players payable and Ed many above shape what of which by an in let's solutions you are those finance, off say, say of largest are of of more we various and ideas so are and we

Operator

The with comes Bryan Deutsche question Keane next Bank. from

Bryan Keane

some you're yet are But to basis. really wanted ask about said XX% not generating from versus how marketplace? contracts generating deals, the and renewals how you'll you on on types if do be revenue know know of competitively non-FTE price was an the would those Gen I revenue the generating you typically on Gen think bookings AI. of other of basis? FTE And that I if bookings much AI you're the I and those same

Balkrishan Kalra

it and part are therefore, them solutions. the agenda on a partner basis. and And are them too. that of a a A is competitive of we non-FTE embedded Bryan, moving lot of opportunities, even these number report are with -- of is A more Gen number as solution. these are we now But these of technologies, And are, integral of. these we of of -- have which in well. -- sole-source one Yes. part is sole-source as number number a IP-ed environment, AI pushing it a lot solutions are

for on achieving what are is We of outcome And good they outcomes are that results. that our we centered and what clients flows are cadence are then seeing to the early how also us.

Michael Weiner

is be focus a It of not as it. other in to big is a Gen as right? tools, of upon AI quickly well enhancements new AI to us frothy and net productivity BK, Well, seems I new mention that. discussion. level bridge

not and utilizing without efficiencies able able for been have We to are tools. ourselves the and or generate our clients not profitability for and

evolution an to continue evolve in but will it's time. technology, using this net really It of new to terms over So done outcomes. drive what a or of we've is enhancement an technologies

Bryan Keane

Since a rate the And follow-up, way rates, similar because bit maybe the quarter second deceleration? can third to cause we're differently. better, growth was partnerships, would to with have, what just guided the in the the question the to quarter, strong the in momentum seems ask growth then you the guys growth if going a like just you so I the not see guidance rate little it and especially not decelerate

Michael Weiner

Yes.

start this think I'll I one.

I about is X/X environment. with business think our it annuitized. a really first of business Keep starts in consistent mind

a have we very So good that. view into

The and environment other to right? we're in change just in deals be of real terms of we have business remain the business So macro the that throughout prudent XX% not anticipating cohort year, any duration our win to shorter we guide. earn tends and our

of on we execution, namely first we In will it to strong deals each be a in cases half lot lapping -- the many had large is, addition growth those yes, of other. better of particularly some in year, off had which the

to monitor X we for quarters. in about the prudent it But environment. how continue we'll again, think next business we So remain the

Operator

The comes Sean with next Mizuho. Kennedy from question

Sean Kennedy

was approach Data-Tech-AI Gen I solutions. wondering AI and go-to-market on about the on focusing So

your So solutions help to these how your results? customer did achieve these you And team does incentives the base? into sell change sales

Balkrishan Kalra

sales as and offering go incentives we typically, that well continue hubs. change, is along. as Yes, have Sean, on iterate to what and improve we we And

also of then Genpact are of that offerings we client on depending or needs the based -- and we simplification there situations. that have from we and them are in active driving these offerings and in that developed that the are rigor depending competencies there accountability is And the upon just have motion agility up -- the And offerings we've in sales of a and So different is these on that set standpoint, active the of clients marketplace an organization. many our set partners. series also the offerings all upon and the there is of certain operate activation rituals happen client in needs,

Operator

comes Bachman question from our next Keith with BMO. And

Keith Bachman

half in to pricing Year time the the same first Guys, how last Calendar year. would ask of 'XX characterize versus I you on wanted first

BPO more competitors, with you much of One pricing aggressive competitors is How characterize adjusted big would your across the that? landscape.

Michael Weiner

that Thanks question. Yes. heard for thought It's We've before, So right? that Mike. about we've it.

a year-over-year I of our relatively had is half of right? in to alluding have been source and half pricing, and consistent. Keep business, sequential, not. think digital operations We predominantly It's terms it in particularly mind, sole we're in is

We in that's irrational haven't gone seen anything really pricing. on

on views? comment And any so others. hard BK, for it's us to

Balkrishan Kalra

No.

reasonably environment, the competitive haven't a but It's seen marketplace. I irrational we think you are any behavior right. in

Keith Bachman

your much Dx ] related that willing total would broadly. you call of businesses [ What center would to business? talking of service-related what How do percent I'm a business have be should of that, part now face you that, to provide customer-facing? be of more but Related or services percent in

Michael Weiner

Yes.

talked in business, that -- related terms the of about past, of So we've think type about you're work. that service asking in customer I

it's less aggregated customers lot XX% what of our in And a have in a for business. of -- that lot flavors. many aggregate our we different than We of take you the revenue, and do up

Keith Bachman

to out demand the you has in if for it's think it's want coming you areas, view I to question like make will. customer you to Gen correctly. quickie to that because industry, IBM projects, said But these to for wanted that have a heard Mike, it's not in said then sure but growth is -- Accenture sounds and but that the Last from that other sourced additive -- just you additive great me pool. to it's clearly pursue and AI, of I everybody different It order some just guys I a try clarify

Michael Weiner

Yes.

of our Generative are their we is of correctly. You're in companies seeing Again, other at for that AI what net defined to on comment us look what our to businesses but of we our clearly pipeline a pipeline. as it hearing native very enhancer terms mix it's hard definition at

growth opposed -- future being when we're the we just sustainable to that. TAM So trade-off, seeing a in not on our as BK about talked this of view the driver a

Operator

further questions to would Instructions] I this no remarks. company now the the like call for time. back I turn at closing to show [Operator

Balkrishan Kalra

was quarter Genpact. Quarter another X Michelle. for strong you, Thank

leveraging innovation. we ahead, drive X+X to improving execution, continue will our look into lean and framework we As

look We will productivity thank for for forward advanced by to clients innovate other all speaking this with shareholders take deliver leveraging Thank Genpact. superior Gen and also choosing to and I AI ongoing to next opportunity want and drive of for you. the clients you support. We Genpact again all for quarter. our to value technologies

Operator

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

disconnect. now may You

Genpact Limited (G) 8 Aug 242024 Q2 Earnings call transcript