Total Revenue of $1.13 billion, Up 4%1,2,3Diluted EPS of $0.64, Up 12%; Adjusted Diluted EPS4 of $0.73, Up 7% NEW YORK, May 9, 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 first quarter ended March 31, 2024. "Results for the first quarter were above the high end of our guidance range, driven by early signs of improving execution and better than expected performance across both Data-Tech-AI and Digital Operations," said Balkrishan "BK" Kalra, Genpact's President & CEO. "In the first quarter, we established our new '3+1 Execution Framework,' which is focused on building stronger partnerships, delivering more comprehensive Data-Tech-AI solutions, simplifying our sales and go-to-market structures, and enhancing our own operational efficiency through AI-led transformation. This work, while early, is delivering promising results and will be a key ingredient in putting us on the path to reach our full potential."  Key Financial Highlights – First Quarter 2024 Total revenue was $1.13 billion, up 4% year-over-year, both on an as reported and constant currency basis.1,3   Data-Tech-AI revenue was $524 million, up 3% year-over-year, both on an as reported and constant currency basis,1,3 representing 46% of total revenue.5 Digital Operations revenue was $607 million, up 5% year-over-year (6% on a constant currency basis),1 representing 54% of total revenue.5 Gross profit was $396 million, up 7% year-over-year, with a corresponding margin of 35.0%. Net income was $117 million, up 10% year-over-year, with a corresponding margin of 10.3%. Income from operations was $160 million, up 10% year-over-year, with a corresponding margin of 14.1%. Adjusted income from operations was $182 million, up 2% year-over-year, with a corresponding margin of 16.1%.6,7 Diluted earnings per share was $0.64, up 12% year-over-year, and adjusted diluted earnings per share4,6 was $0.73, up 7% year-over-year. Cash utilized in operations was $26 million, compared to $34 million utilized in operations in the first quarter of 2023. Genpact repurchased approximately 865,000 of its common shares during the quarter for total consideration of approximately $30 million at an average price per share of $34.67. __________________________________ 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 Both on an as reported and constant currency basis. 3 Total revenue and Data-Tech-AI revenue for the first quarter 2023 includes $0.5 million associated with a business classified as held for sale. 4 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. 5 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. The tables set forth after the "Outlook" section in this release provide the amount of revenue derived from Digital Operations and Data-Tech-AI, both as originally reported and as updated, for each quarter from the first quarter of 2022 through the first quarter of 2024. The outlook presented in this release for Digital Operations and Data-Tech-AI revenue growth reflect this updated revenue classification. 6 Income from operations and diluted earnings per share for the first quarter of 2023 include a $0.8 million loss incurred on the sale of the business previously designated as held for sale as well as a $1.2 million operating loss from the business previously designated as held for sale. These items were excluded from adjusted income for operations and adjusted diluted earnings per share for the first quarter of 2023. 7 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 updated outlook for the full year 2024 is as follows: Total revenue in the range of $4.59 billion to $4.63 billion, representing year-over-year growth of approximately 2.5% to 3.5% as reported, or 2.7% to 3.7% on a constant currency basis,1 up from the prior guidance of approximately 2.0% to 3.0% as reported. Digital Operations revenue growth of approximately 3.6% year-over-year and Data-Tech-AI revenue growth of approximately 2.3% year-over-year at the midpoint of the range, as reported, up from the previous midpoints of 3.1% and 1.7%, respectively, on an updated classification basis.5 Digital Operations revenue growth of approximately 4.0% year-over-year and Data-Tech-AI revenue growth of approximately 2.4% year-over-year at the midpoint of the range, on a constant currency basis,1 up from the previous midpoints of 3.2% and 1.9%, respectively, on an updated classification basis.5 Gross margin of approximately 35.3%, up from the prior guidance of approximately 35.0%. Adjusted income from operations margin8 of approximately 17.0%. Adjusted diluted EPS9 in the range of $3.01 to $3.04, up from the prior range of $3.00 to $3.03. Genpact's outlook for the second quarter of 2024 is as follows: Total revenue in the range of $1.143 billion to $1.148 billion, representing year-over-year growth of approximately 3.4% to 3.8% as reported, or 3.6% to 4.0% on a constant currency basis.1 Digital Operations revenue growth of approximately 5.4% year-over-year and Data-Tech-AI revenue growth of approximately 1.6% year-over-year at the midpoint of the range, as reported. Digital Operations revenue growth of approximately 5.7% year-over-year and Data-Tech-AI revenue growth of approximately 1.6% year-over-year at the midpoint of the range, on a constant currency basis.1 Gross margin of approximately 34.8%. Adjusted income from operations margin8 of approximately 16.5%. The outlook presented above reflects the updated classification of Digital Operations and Data-Tech-AI revenue.5  Digital Operations and Data-Tech-AI revenue update5 The following tables provide Digital Operations and Data-Tech-AI revenue breakdowns for each quarter from the first quarter of 2022 through the first quarter of 2024, as originally reported and on an updated classification basis: As Originally Reported: Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Digital Operations revenue 602 601 601 608 604 605 636 639 630 YoY % 5.0 % 3.3 % 2.4 % 3.3 % 0.4 % 0.7 % 5.8 % 5.1 % 4.2 % QoQ % 2.2 % (0.2) % 0.1 % 1.1 % (0.6) % 0.1 % 5.2 % 0.4 % (1.5) % Data-Tech-AI revenue 467 489 510 495 485 501 500 507 502 YoY % 25.1 % 20.2 % 18.9 % 2.3 % 4.0 % 2.5 % (2.0) % 2.5 % 3.4 % QoQ % (3.5) % 4.7 % 4.3 % (2.9) % (1.9) % 3.2 % (0.2) % 1.5 % (1.1) % ________________________________ 8 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. 9 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.   Updated Classification: Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Digital Operations revenue 581 580 578 583 579 581 612 615 607 YoY % 5.1 % 3.1 % 1.9 % 3.2 % (0.3) % 0.2 % 6.0 % 5.5 % 4.8 % QoQ % 2.9 % (0.3) % (0.4) % 1.0 % (0.6) % 0.2 % 5.5 % 0.4 % (1.2) % Data-Tech-AI revenue 487 509 533 519 510 525 523 531 524 YoY % 24.0 % 19.6 % 18.9 % 2.4 % 4.7 % 3.0 % (1.9) % 2.3 % 2.7 % QoQ % (3.9) % 4.6 % 4.7 % (2.6) % (1.8) % 2.9 % (0.3) % 1.5 % (1.4) % Conference Call to Discuss Financial Results Genpact's management will host an hour-long conference call beginning at 5:00 p.m. ET on May 9, 2024 to discuss the company's performance for the first quarter ended March 31, 2024. Those who wish to participate can register here to receive a dial-in number and unique PIN to access the call seamlessly. It is recommended callers join 10 minutes prior to the start of the event (although you may register and dial in at any time during the call).  A live webcast of the call will also be made available on the Genpact Investor Relations website at https://www.genpact.com/investors. For those who cannot join the call live, a replay will be archived on the Genpact website after the end of the call. A transcript of the call will also be made available on the website. About Genpact Genpact (NYSE:G) is a global professional services and solutions firm delivering the 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 Tiffany Horvath +1 (614) 625-6485  Media Siya Belliappa +1 (718) 561-9843   GENPACT LIMITED AND ITS SUBSIDIARIESConsolidated Balance Sheets(Unaudited)(In thousands, except per share data and share count) As of December 31, 2023 As of March 31, 2024 Assets Current assets Cash and cash equivalents $                           583,670 $                          478,398 Accounts receivable, net of allowance for credit losses of $18,278and $21,294 as of December 31, 2023 and March 31, 2024, respectively 1,116,273 1,147,233