Total Revenue of $1.18 billion, Up 6% (7% constant
currency)1
Diluted EPS of
$0.67, Up 6%; Adjusted Diluted
EPS2 of $0.79,
Up 10%
NEW
YORK, Aug. 8, 2024 /PRNewswire/ -- Genpact
Limited (NYSE: G), a global professional services and solutions
firm delivering outcomes that shape the future, today announced
financial results for the second quarter ended June 30, 2024.
"Following another quarter of better-than-expected results and a
robust first half performance, we are raising our earnings
expectations for the year," said Balkrishan "BK" Kalra,
Genpact's President and CEO. "Our second quarter results
are a testament to the team's ability to successfully deliver on
our '3+1 Execution Framework'. Looking ahead, we will continue to
drive execution and lean into innovation, leveraging gen AI and
other advanced technologies to deliver superior value for clients
and drive productivity for Genpact."
Key Financial Highlights – Second Quarter 2024
- Total revenue was $1.18 billion,
up 6% year-over-year on an as reported basis and 7% on a constant
currency basis.1
- Data-Tech-AI revenue was $546
million, up 4% year-over-year, both on an as reported and
constant currency basis,1 representing 46% of total
revenue.3
- Digital Operations revenue was $630
million, up 9% year-over-year, both on an as reported and
constant currency basis,1 representing 54% of total
revenue.3
- Gross profit was $416 million, up
7% year-over-year, with a corresponding margin of 35.4%.
- Net income was $122 million, up
5% year-over-year, with a corresponding margin of 10.4%.
- Income from operations was $170
million, up 8% year-over-year, with a corresponding margin
of 14.5%.
- Adjusted income from operations was $198
million, up 7% year-over-year, with a corresponding margin
of 16.9%.4,5
- Diluted earnings per share was $0.67, up 6% year-over-year.
- Adjusted diluted earnings per share2,4 was
$0.79, up 10% year-over-year.
- Cash flow from operations was $209
million, up from $171 million
in the second quarter of 2023.
- Genpact repurchased approximately 1.9 million common shares
during the quarter for total consideration of approximately
$63 million at an average price per
share of $32.63.
_________________________________
|
1 Revenue
growth on a constant currency basis is a non-GAAP measure and is
calculated by restating current-period activity using the prior
fiscal period's foreign currency exchange rates adjusted for
hedging gains/losses in such period.
|
2 Adjusted
diluted earnings per share is a non-GAAP measure. A reconciliation
of GAAP diluted earnings per share to adjusted diluted earnings per
share is attached to this release.
|
3 Genpact
updated the classification of certain service revenues from Digital
Operations to Data-Tech-AI in the quarter ended March 31, 2024 to
more accurately reflect the nature of, and mode of delivery for,
the services provided, which have evolved over time. As a result,
the revenue from Digital Operations and Data-Tech-AI for the second
quarter of 2023 originally reported was $605 million and $501
million, respectively, which is $581 million and $525 million,
respectively, in accordance with the updated
classification.
|
4 Income
from operations and diluted earnings per share in the second
quarter of 2023 include a $5 million gain on the termination of a
lease which was impaired as part of the restructuring charge taken
in the second quarter of 2022. This gain is therefore excluded from
adjusted income from operations and adjusted diluted earnings per
share in the second quarter of 2023.
|
5 Adjusted
income from operations and adjusted income from operations margin
are non-GAAP measures. Reconciliations of each of GAAP income from
operations and GAAP net income to adjusted income from operations
and GAAP income from operations margin and GAAP net income margin
to adjusted income from operations margin are attached to this
release.
|
Outlook
Genpact's outlook for the third quarter of 2024 is as
follows:
- Total revenue in the range of $1.180
billion to $1.186 billion,
representing year-over-year growth of approximately 3.9% to 4.4% as
reported, or 4.2% to 4.7% on a constant currency basis.1
- Digital Operations revenue growth of approximately 3.8%
year-over-year and Data-Tech-AI revenue growth of approximately
4.6% year-over-year at the midpoint of the range, as reported.
- Digital Operations revenue growth of approximately 4.2%
year-over-year and Data-Tech-AI revenue growth of approximately
4.7% year-over-year at the midpoint of the range, on a constant
currency basis.1
- Gross margin of approximately 35.4%.
- Adjusted income from operations margin6 of
approximately 17.2%.
Genpact's updated outlook for the full year 2024 is as
follows:
- Total revenue in the range of $4.656
billion to $4.701 billion,
representing year-over-year growth of approximately 4.0% to 5.0% as
reported, or 4.2% to 5.2% on a constant currency basis,1
up from the prior guidance of approximately 2.5% to 3.5% as
reported.
- Digital Operations revenue growth of approximately 5.2%
year-over-year and Data-Tech-AI revenue growth of approximately
3.8% year-over-year at the midpoint of the range, as reported, up
from the previous midpoints of 3.6% and 2.3%, respectively.
- Digital Operations revenue growth of approximately 5.5%
year-over-year and Data-Tech-AI revenue growth of approximately
3.9% year-over-year at the midpoint of the range, on a constant
currency basis,1 up from the previous midpoints of 4.0%
and 2.4%, respectively.
- Gross margin of approximately 35.3%.
- Adjusted income from operations margin6 of
approximately 17.0%.
- Adjusted diluted EPS7 in the range of $3.14 to $3.18, up
from the prior range of $3.01 to
$3.04.
Second Quarter 2024 Earnings Call
Genpact's management will host a conference call on August 8, 2024, at 5:00PM
ET to discuss the company's performance for the second
quarter ended June 30, 2024.
Participants are encouraged to register here to receive a
dial-in number and unique PIN for seamless access. It is
recommended to join 10 minutes before the call starts, although
registration and dial-in will be available at any time. A
live webcast will be available on the Genpact Investor Relations
website. For those unable to attend the live call, an archived
replay and transcript will be available on the website shortly
after the call.
______________________________
|
6 Adjusted
income from operations margin is a non-GAAP measure. A
reconciliation of the outlook for each of GAAP income from
operations margin and GAAP net income margin to adjusted income
from operations margin is attached to this release.
|
7 Adjusted
diluted earnings per share is a non-GAAP measure. A reconciliation
of the outlook for GAAP diluted earnings per share to adjusted
diluted earnings per share is attached to this release.
|
About Genpact
Genpact (NYSE: G) is a global professional services and
solutions firm delivering outcomes that shape the future. Our
125,000+ people across 30+ countries are driven by our innate
curiosity, entrepreneurial agility, and desire to create lasting
value for clients. Powered by our purpose – the relentless pursuit
of a world that works better for people – we serve and transform
leading enterprises, including the Fortune Global 500, with our
deep business and industry knowledge, digital operations services,
and expertise in data, technology, and AI.
Safe Harbor
This press release contains certain statements concerning our
future growth prospects, including our outlook for 2024, financial
results and other forward-looking statements, as defined in the
safe harbor provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These statements involve a number of risks,
uncertainties and other factors that could cause actual results to
differ materially from those in such forward-looking statements.
These risks, uncertainties, and other factors include but are not
limited to macroeconomic uncertainty and general economic
conditions, any deterioration in the global economic environment
and its impact on our clients, our ability to manage our CEO
transition and retain senior management, technological innovation,
including AI technology and future uses of generative AI and large
language models, and our ability to invest in new technologies and
adapt to industry developments at sufficient speed and scale, our
ability to develop and successfully execute our business
strategies, our ability to effectively price our services and
maintain pricing and employee utilization rates, general
inflationary pressures and our ability to share increased costs
with our clients, wage increases in locations in which we have
operations, our ability to attract and retain skilled
professionals, our ability to protect our and our clients' data
from security incidents or cyberattacks, the economic and other
impacts of geopolitical conflicts and any related sanctions and
other measures that have been or may be implemented or imposed in
response thereto, as well as any potential expansion or escalation
of existing conflicts or economic disruption beyond their current
scope, a slowdown in the economies and sectors in which our clients
operate, a slowdown in the sectors in which we operate, the risks
and uncertainties arising from our past and future acquisitions or
divestitures, our ability to convert bookings to revenues, our
ability to manage growth, factors which may impact our cost
advantage, changes in tax rates and tax legislation and other laws
and regulations, our ability to effectively execute our tax
planning strategies, risks and uncertainties regarding fluctuations
in our earnings, foreign currency fluctuations, political, economic
or business conditions in countries in which we operate, as well as
other risks detailed in our reports filed with the U.S. Securities
and Exchange Commission, including Genpact's Annual Report on Form
10-K and Quarterly Reports on Form 10-Q. These filings are
available at www.sec.gov. Genpact may from time to time make
additional written and oral forward-looking statements, including
statements contained in our filings with the Securities and
Exchange Commission and our reports to shareholders. Although
Genpact believes that these forward-looking statements are based on
reasonable assumptions, you are cautioned not to put undue reliance
on these forward-looking statements, which reflect management's
current analysis of future events and should not be relied upon as
representing management's expectations or beliefs as of any date
subsequent to the time they are made. Genpact undertakes no
obligation to update any forward-looking statements that may be
made from time to time by or on behalf of Genpact.
Contacts
Investors
|
|
Tyra Whelton
|
|
|
+1 (908)
418-2995
|
|
|
tyra.whelton@genpact.com
|
|
|
|
Media
|
|
Siya
Belliappa
|
|
|
+1 (718)
561-9843
|
|
|
siya.belliappa@genpact.com
|
GENPACT LIMITED AND
ITS SUBSIDIARIES
|
|
Consolidated Balance
Sheets (Unaudited) (In thousands, except per
share data and share count)
|
|
|
|
As of December
31,
2023
|
|
As of June
30, 2024
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
583,670
|
|
$
914,171
|
Accounts receivable,
net of allowance for credit losses of $18,278
and $16,833 as of
December 31, 2023 and June 30, 2024,
respectively
|
|
1,116,273
|
|
1,159,787
|
Prepaid expenses and
other current assets
|
|
191,566
|
|
192,123
|
Total current
assets
|
|
$
1,891,509
|
|
$
2,266,081
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
189,803
|
|
199,533
|
Operating lease
right-of-use assets
|
|
186,167
|
|
194,624
|
Deferred tax
assets
|
|
298,921
|
|
276,981
|
Intangible assets,
net
|
|
53,028
|
|
39,841
|
Goodwill
|
|
1,683,782
|
|
1,677,866
|
Contract cost
assets
|
|
202,543
|
|
203,402
|
Other assets, net of
allowance for credit losses of $4,096 and $5,512 as of
December 31, 2023 and
June 30, 2024, respectively
|
|
299,960
|
|
319,937
|
Total
assets
|
|
$
4,805,713
|
|
$
5,178,265
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
borrowings
|
|
$
10,000
|
|
$
—
|
Current portion of
long-term debt
|
|
432,242
|
|
425,918
|
Accounts
payable
|
|
27,739
|
|
28,430
|
Income taxes
payable
|
|
38,458
|
|
43,779
|
Accrued expenses and
other current liabilities
|
|
759,180
|
|
653,676
|
Operating leases
liability
|
|
50,313
|
|
45,879
|
Total current
liabilities
|
|
$
1,317,932
|
|
$
1,197,682
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
824,720
|
|
1,207,610
|
Operating leases
liability
|
|
168,015
|
|
175,693
|
Deferred tax
liabilities
|
|
11,706
|
|
10,118
|
Other
liabilities
|
|
234,948
|
|
249,403
|
Total
liabilities
|
|
$
2,557,321
|
|
$
2,840,506
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Preferred shares, $0.01
par value, 250,000,000 authorized, none issued
|
|
—
|
|
—
|
Common shares, $0.01
par value, 500,000,000 authorized, 179,494,132
and 178,177,581 issued
and outstanding as of December 31, 2023 and
June 30, 2024,
respectively
|
|
1,789
|
|
1,776
|
Additional paid-in
capital
|
|
1,883,944
|
|
1,900,015
|
Retained
earnings
|
|
1,085,209
|
|
1,176,459
|
Accumulated other
comprehensive income (loss)
|
|
(722,550)
|
|
(740,491)
|
Total
equity
|
|
$
2,248,392
|
|
$
2,337,759
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
4,805,713
|
|
$
5,178,265
|
GENPACT LIMITED AND
ITS SUBSIDIARIES
|
|
Consolidated
Statements of Income (Unaudited) (In thousands,
except per share data and share count)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
Net revenues
|
|
$
1,105,524
|
|
$
1,176,212
|
|
$
2,194,843
|
|
$
2,307,449
|
Cost of
revenue
|
|
715,484
|
|
759,834
|
|
1,434,562
|
|
1,494,593
|
Gross
profit
|
|
$
390,040
|
|
$
416,378
|
|
$
760,281
|
|
$
812,856
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
229,426
|
|
239,642
|
|
445,911
|
|
474,673
|
Amortization of
acquired intangible assets
|
|
8,257
|
|
6,558
|
|
16,512
|
|
13,485
|
Other operating
(income) expense, net
|
|
(4,963)
|
|
(73)
|
|
(4,574)
|
|
(5,539)
|
Income from
operations
|
|
$
157,320
|
|
$
170,251
|
|
$
302,432
|
|
$
330,237
|
Foreign exchange gains
(losses), net
|
|
1,763
|
|
2,454
|
|
723
|
|
3,291
|
Interest income
(expense), net
|
|
(12,138)
|
|
(13,538)
|
|
(21,765)
|
|
(23,780)
|
Other income (expense),
net
|
|
3,425
|
|
3,250
|
|
7,455
|
|
9,037
|
Income before income
tax expense
|
|
$
150,370
|
|
$
162,417
|
|
$
288,845
|
|
$
318,785
|
Income tax
expense
|
|
34,118
|
|
40,427
|
|
66,492
|
|
79,848
|
Net
income
|
|
$
116,252
|
|
$
121,990
|
|
$
222,353
|
|
$
238,937
|
Earnings per common
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.63
|
|
$
0.68
|
|
$
1.21
|
|
$
1.33
|
Diluted
|
|
$
0.63
|
|
$
0.67
|
|
$
1.19
|
|
$
1.32
|
Weighted average number
of common shares used in
computing earnings per common share
|
|
|
|
|
|
|
|
|
Basic
|
|
183,230,252
|
|
179,651,702
|
|
183,512,828
|
|
180,034,120
|
Diluted
|
|
185,825,117
|
|
180,912,267
|
|
186,705,697
|
|
181,424,912
|
GENPACT LIMITED AND
ITS SUBSIDIARIES
|
|
Consolidated
Statements of Cash Flows (Unaudited) (In
thousands)
|
|
|
Six months ended
June 30,
|
|
2023
|
|
2024
|
Operating
activities
|
|
|
|
Net income
|
$
222,353
|
|
$
238,937
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
36,845
|
|
34,542
|
Amortization of debt
issuance costs
|
978
|
|
1,037
|
Amortization of
acquired intangible assets
|
16,512
|
|
13,485
|
Loss on the sale of the
business classified as held for sale
|
802
|
|
—
|
Allowance for credit
losses
|
6,521
|
|
12,638
|
Unrealized gain on
revaluation of foreign currency assets/liabilities
|
(2,249)
|
|
(7,214)
|
Stock-based
compensation expense
|
41,536
|
|
27,550
|
Deferred tax (benefit)
expense
|
(2,957)
|
|
15,873
|
Others, net
|
1,147
|
|
173
|
Change in operating
assets and liabilities:
|
|
|
|
Increase in accounts
receivable
|
(26,891)
|
|
(54,326)
|
Increase in prepaid
expenses, other current assets, contract cost assets, operating
lease right-of-use
assets and other assets
|
(62,006)
|
|
(22,823)
|
Increase in accounts
payable
|
5,742
|
|
997
|
Decrease in accrued
expenses, other current liabilities, operating lease liabilities
and other liabilities
|
(150,087)
|
|
(82,850)
|
Increase in income
taxes payable
|
49,136
|
|
5,694
|
Net cash provided by
operating activities
|
$
137,382
|
|
$
183,713
|
Investing
activities
|
|
|
|
Purchase of property,
plant and equipment
|
(24,033)
|
|
(43,276)
|
Payment for internally
generated intangible assets (including intangibles under
development)
|
(1,705)
|
|
(1,260)
|
Proceeds from sale of
property, plant and equipment
|
17
|
|
116
|
Payment for business
acquisitions, net of cash acquired
|
(682)
|
|
—
|
Payment for divestiture
of business
|
(19,510)
|
|
—
|
Net cash used for
investing activities
|
$
(45,913)
|
|
$
(44,420)
|
Financing
activities
|
|
|
|
Repayment of finance
lease obligations
|
(6,856)
|
|
(5,569)
|
Payment of debt
issuance and refinancing costs
|
—
|
|
(3,305)
|
Proceeds of long-term
debt
|
—
|
|
400,000
|
Repayment of long-term
debt
|
(13,250)
|
|
(19,875)
|
Proceeds from
short-term borrowings
|
148,000
|
|
50,000
|
Repayment of short-term
borrowings
|
(196,000)
|
|
(60,000)
|
Proceeds from issuance
of common shares under stock-based compensation plans
|
31,928
|
|
9,720
|
Payment for net
settlement of stock-based awards
|
(18,317)
|
|
(21,142)
|
Payment of earn-out
consideration
|
(2,399)
|
|
—
|
Dividend
paid
|
(50,286)
|
|
(54,829)
|
Payment for stock
repurchased and retired (including expenses related to stock
repurchase)
|
(150,548)
|
|
(92,686)
|
Net cash (used for)
provided by financing activities
|
$
(257,728)
|
|
$
202,314
|
Net (decrease) increase
in cash and cash equivalents
|
(166,259)
|
|
341,607
|
Effect of exchange rate
changes
|
10,802
|
|
(11,106)
|
Cash and cash
equivalents at the beginning of the period
|
646,765
|
|
583,670
|
Cash and cash
equivalents at the end of the period
|
$
491,308
|
|
$
914,171
|
Supplementary
information
|
|
|
|
Cash paid during the
period for interest
|
$
22,550
|
|
$
30,625
|
Cash paid during the
period for income taxes, net of refund
|
$
66,819
|
|
$
45,883
|
Non-GAAP Financial Measures
To supplement the consolidated financial statements presented
in accordance with GAAP, this press release includes the following
non-GAAP financial measures:
- Adjusted income from operations;
- Adjusted income from operations margin;
- Adjusted diluted earnings per share; and
- Revenue growth on a constant currency basis.
These non-GAAP financial measures are not based on any
comprehensive set of accounting rules or principles and should not
be considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP and may be different from
non-GAAP financial measures used by other companies. Accordingly,
these non-GAAP financial measures, the financial statements
prepared in accordance with GAAP and the reconciliations of
Genpact's GAAP financial statements to such non-GAAP financial
measures should be carefully evaluated.
Given Genpact's acquisitions of varying scale and size, and
the difficulty in predicting expenses relating to acquisitions and
the amortization of acquired intangibles thereof, since
July 2012 Genpact's management has
used financial statements that exclude all acquisition-related
expenses and amortization of acquired intangibles for its internal
management reporting, budgeting and decision-making purposes,
including comparing Genpact's operating results to those of its
competitors. For the same reasons, since April 2016, Genpact's management has excluded the
impairment of acquired intangible assets from the financial
statements it uses for internal management purposes.
Acquisition-related expenses are excluded in the period in which an
acquisition is consummated. Genpact's management also uses
financial statements that exclude stock-based compensation expense.
Because of varying available valuation methodologies, subjective
assumptions and the variety of award types that companies can use
when adopting ASC 718 "Compensation-Stock Compensation," Genpact's
management believes that providing non-GAAP financial measures that
exclude such expenses allows investors to make additional
comparisons between Genpact's operating results and those of other
companies.
During the second quarter of 2022, Genpact approved a plan to
divest a business that was no longer deemed strategic. Given the
specialized nature of this business, we anticipated completing a
transaction within twelve months after the end of the second
quarter of 2022, and therefore, we classified the revenues and
expenses related to this business as held for sale with effect from
April 1, 2022. During the first
quarter of 2023, the Company consummated this transaction and
recorded a loss on the sale of the business. During the
second quarter of 2023, the Company terminated a lease for office
property which was fully impaired as part of a restructuring in the
second quarter of 2022 and recorded a gain on such lease
termination as restructuring income in the second quarter of 2023.
Genpact's management believes that excluding the loss on the sale
of, and the revenues and expenses associated with, the business
previously designated as held for sale and the gain on the lease
termination in calculating its non-GAAP financial measures provides
useful information to both management and investors regarding the
Company's financial performance and underlying business trends.
Additionally, in its calculations of non-GAAP financial measures,
Genpact's management has adjusted foreign exchange gains and
losses, interest income and expense and income tax expenses from
GAAP net income, and other income and expenses, and certain gains
from GAAP income from operations, because management believes that
the Company's results after taking into account these adjustments
more accurately reflect the Company's ongoing operations. In its
calculations of adjusted diluted earnings per share, Genpact's
management adds back stock-based compensation expense, amortization
and impairment of acquired intangible assets, acquisition-related
expenses and the related tax impact of such adjustments from GAAP
diluted earnings per share. For the purpose of calculating adjusted
diluted earnings per share, the combined current and deferred tax
effect is determined by multiplying each pre-tax adjustment by the
applicable statutory income tax rate.
Genpact's management provides information about revenues on a
constant currency basis so that the revenues may be viewed without
the impact of foreign currency exchange rate fluctuations compared
to prior fiscal periods, thereby facilitating period-to-period
comparisons of the Company's true business performance. Revenue
growth on a constant currency basis is calculated by restating
current-period activity using the prior fiscal period's foreign
currency exchange rates adjusted for hedging gains/losses in such
period.
Accordingly, Genpact believes that the presentation of
adjusted income from operations, adjusted income from operations
margin, adjusted diluted earnings per share and revenue growth on a
constant currency basis, when read in conjunction with the
Company's reported results, can provide useful supplemental
information to investors and management regarding financial and
business trends relating to its financial condition and results of
operations.
A limitation of using adjusted income from operations and
adjusted income from operations margin versus income from
operations, income from operations margin, net income and net
income margin calculated in accordance with GAAP is that these
non-GAAP financial measures exclude certain recurring costs and
certain other charges, namely stock-based compensation expense and
amortization and impairment of acquired intangible assets.
Management compensates for this limitation by providing specific
information on the GAAP amounts excluded from adjusted income from
operations and adjusted income from operations margin.
The following tables show the reconciliation of these non-GAAP
financial measures to the most directly comparable GAAP measures
for the three months and six months ended June 30, 2023 and 2024:
Reconciliation of
Net Income/Margin to Adjusted Income from
Operations/Margin (In thousands)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
Net income
|
|
$
116,252
|
|
$
121,990
|
|
$
222,353
|
|
$
238,937
|
Foreign exchange
(gains) losses, net
|
|
(1,763)
|
|
(2,454)
|
|
(723)
|
|
(3,291)
|
Interest (income)
expense, net
|
|
12,138
|
|
13,538
|
|
21,765
|
|
23,780
|
Income tax
expense
|
|
34,118
|
|
40,427
|
|
66,492
|
|
79,848
|
Stock-based
compensation expense
|
|
21,832
|
|
18,369
|
|
41,536
|
|
27,550
|
Amortization and
impairment of acquired intangible assets
|
|
8,257
|
|
6,544
|
|
16,400
|
|
13,469
|
Restructuring (income)
expense
|
|
(4,874)
|
|
—
|
|
(4,874)
|
|
—
|
Operating loss from
the business classified as held for sale
|
|
—
|
|
—
|
|
1,201
|
|
—
|
Loss on the sale of
the business classified as held for sale
|
|
—
|
|
—
|
|
802
|
|
—
|
Adjusted income from
operations
|
|
$ 185,960
|
|
$
198,414
|
|
$ 364,952
|
|
$
380,293
|
Net income
margin
|
|
10.5 %
|
|
10.4 %
|
|
10.1 %
|
|
10.4 %
|
Adjusted income from
operations margin
|
|
16.8 %
|
|
16.9 %
|
|
16.6 %
|
|
16.5 %
|
Reconciliation of
Income from Operations/Margin to Adjusted Income from
Operations/Margin (In thousands)
|
|
|
|
Three
months ended June 30,
|
|
Six months ended
June 30,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
Income from
operations
|
|
$
157,320
|
|
$
170,251
|
|
$
302,432
|
|
$
330,237
|
Stock-based
compensation expense
|
|
21,832
|
|
18,369
|
|
41,536
|
|
27,550
|
Amortization and
impairment of acquired intangible assets
|
|
8,257
|
|
6,544
|
|
16,400
|
|
13,469
|
Other income
(expense), net
|
|
3,425
|
|
3,250
|
|
7,455
|
|
9,037
|
Restructuring (income)
expense
|
|
(4,874)
|
|
—
|
|
(4,874)
|
|
—
|
Operating loss from
the business classified as held for sale
|
|
—
|
|
—
|
|
1,201
|
|
—
|
Loss on the sale of
the business classified as held for sale
|
|
—
|
|
—
|
|
802
|
|
—
|
Adjusted income from
operations
|
|
$ 185,960
|
|
$
198,414
|
|
$ 364,952
|
|
$
380,293
|
Income from operations
margin
|
|
14.2 %
|
|
14.5 %
|
|
13.8 %
|
|
14.3 %
|
Adjusted income from
operations margin
|
|
16.8 %
|
|
16.9 %
|
|
16.6 %
|
|
16.5 %
|
Reconciliation of
Diluted EPS to Adjusted Diluted EPS8 (Per share
data)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
Diluted
EPS
|
|
$
0.63
|
|
$
0.67
|
|
$
1.19
|
|
$
1.32
|
Stock-based
compensation expense
|
|
0.12
|
|
0.10
|
|
0.22
|
|
0.15
|
Amortization and
impairment of acquired intangible assets
|
|
0.04
|
|
0.04
|
|
0.09
|
|
0.07
|
Restructuring (income)
expense
|
|
(0.03)
|
|
—
|
|
(0.03)
|
|
—
|
Operating loss from
the business classified as held for sale
|
|
—
|
|
—
|
|
0.01
|
|
—
|
Loss on the sale of
the business classified as held for sale
|
|
—
|
|
—
|
|
0.00
|
|
—
|
Tax impact on
stock-based compensation expense
|
|
(0.03)
|
|
(0.02)
|
|
(0.07)
|
|
(0.01)
|
Tax impact on
amortization and impairment of acquired intangible
assets
|
|
(0.01)
|
|
(0.01)
|
|
(0.02)
|
|
(0.02)
|
Tax impact on
restructuring income (expense)
|
|
0.01
|
|
—
|
|
0.01
|
|
—
|
Tax impact on
operating loss from the business classified as held for
sale
|
|
—
|
|
—
|
|
(0.00)
|
|
—
|
Tax impact on loss on
the sale of the business classified as held for sale
|
|
—
|
|
—
|
|
(0.00)
|
|
—
|
Adjusted diluted
EPS
|
|
$
0.72
|
|
$
0.79
|
|
$
1.40
|
|
$
1.51
|
___________________________________
|
8 Due to
rounding, the numbers presented in this table may not add up
precisely to the totals provided.
|
The following tables show the reconciliation of forward-looking
non-GAAP financial measures to the most directly comparable GAAP
measures for the year ending December 31,
2024:
Reconciliation of
Outlook for Net Income Margin to Adjusted Income from Operations
Margin9
|
|
|
|
Year ending December
31, 2024
|
Net income
margin
|
|
10.4 %
|
Estimated interest
(income) expense, net
|
|
1.2 %
|
Estimated income tax
expense
|
|
3.4 %
|
Foreign exchange
(gains)/losses
|
|
(0.1) %
|
Estimated stock-based
compensation expense
|
|
1.5 %
|
Estimated amortization
and impairment of acquired intangible assets
|
|
0.6 %
|
Adjusted income from
operations margin
|
|
17.0 %
|
Reconciliation of
Outlook for Income from Operations Margin to Adjusted Income
from Operations Margin9
|
|
|
|
Year ending December
31, 2024
|
Income from
operations margin
|
|
14.6 %
|
Estimated stock-based
compensation expense
|
|
1.5 %
|
Estimated amortization
and impairment of acquired intangible assets
|
|
0.6 %
|
Estimated other income
(expense), net
|
|
0.3 %
|
Adjusted income from
operations margin
|
|
17.0 %
|
Reconciliation of
Outlook for Diluted EPS to Adjusted Diluted EPS9 (Per share
data)
|
|
|
Year ending December
31, 2024
|
|
|
Lower
|
|
Upper
|
Diluted
EPS
|
|
$
2.69
|
|
$
2.72
|
Estimated stock-based
compensation expense
|
|
0.40
|
|
0.40
|
Estimated amortization
and impairment of acquired intangible assets
|
|
0.15
|
|
0.15
|
Estimated tax impact
on stock-based compensation expense
|
|
(0.06)
|
|
(0.06)
|
Estimated tax impact
on amortization and impairment of acquired intangible
assets
|
|
(0.04)
|
|
(0.04)
|
Adjusted diluted
EPS
|
|
$
3.14
|
|
$
3.18
|
____________________________
|
9 Due to
rounding, the numbers presented in this table may not add up
precisely to the totals provided.
|
The following tables show the reconciliation of forward-looking
non-GAAP financial measures to the most directly comparable GAAP
measures for the quarter ending September
30, 2024:
Reconciliation of
Outlook for Net Income Margin to Adjusted Income from Operations
Margin10
|
|
|
|
Quarter ending
September 30, 2024
|
Net income
margin
|
|
9.9 %
|
Estimated interest
(income) expense, net
|
|
1.3 %
|
Estimated income tax
expense
|
|
3.4 %
|
Estimated stock-based
compensation expense
|
|
2.0 %
|
Estimated amortization
and impairment of acquired intangible assets
|
|
0.5 %
|
Adjusted income from
operations margin
|
|
17.2 %
|
Reconciliation of
Outlook for Income from Operations Margin to Adjusted Income
from Operations Margin10
|
|
|
|
Quarter ending
September 30, 2024
|
Income from
operations margin
|
|
14.3 %
|
Estimated stock-based
compensation expense
|
|
2.0 %
|
Estimated amortization
and impairment of acquired intangible assets
|
|
0.5 %
|
Estimated other income
(expense), net
|
|
0.3 %
|
Adjusted income from
operations margin
|
|
17.2 %
|
_________________________________
|
10 Due to
rounding, the numbers presented in this table may not add up
precisely to the totals provided.
|
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SOURCE Genpact