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Genpact Limited (G) 7 Nov 24 2024 Q3 Earnings call transcript

AInvestFriday, Nov 8, 2024 3:12 am ET
1min read

In the recently concluded earnings call, Genpact Limited showcased impressive financial results for the third quarter of 2024, highlighting a 7% year-over-year revenue growth and exceeding the high end of their guidance range. The company's continued market share gains and robust performance in Data-Tech-AI and Digital Operations segments underscore Genpact's strategic focus on innovation and execution.

Executing with a Sharp Focus on Innovation and Partnerships

Genpact's strategic emphasis on innovation and partnerships has been a significant driver of growth, with both areas contributing to the company's strong performance. The announcement of Genpact's proprietary Finance Data Hub and achieving GenAI competency in AWS Consulting Services demonstrate the company's commitment to innovation and its ability to leverage AI-led solutions to drive operational efficiency and enhance decision-making capabilities for clients.

The expansion of the company's partnership organization and recent announcements, such as the Finance Data Hub and GenAI competency, underscore Genpact's commitment to enhancing its capabilities and driving revenue growth through strategic partnerships.

Data-Tech-AI: The Engine of Growth

Data-Tech-AI has emerged as a key growth driver for Genpact, with revenue up 9% year-over-year. The adoption of generative AI and machine learning solutions has enabled the company to expand its total addressable market and deliver transformative outcomes for clients. The Genpact AI Day event, which brought together clients and partners to showcase the latest advances in AI, data, and analytics, underscores the company's commitment to turning innovation into direct business outcomes.

Financial Highlights and Future Outlook

Genpact's financial performance for the third quarter was marked by strong revenue growth, improved gross and adjusted operating income margins, and a 13% increase in diluted EPS. The company's revised guidance for the full year reflects a 6% revenue growth and increased profitability, underscoring its continued focus on executing its strategy and delivering value to clients.

Looking ahead, Genpact's outlook for 2025 is optimistic, with a focus on driving transformative value and operational excellence for clients. The company's strategic investments in innovation, partnerships, and simplification are expected to continue driving growth and enhancing its competitive position in the market.

Addressing Investor Concerns

During the Q&A session, management addressed investors' concerns regarding the short-cycle projects and advisory work, emphasizing the strong execution that is driving the company's results. Additionally, the company's progress in expanding partnership revenue and its increasing focus on outcome-based pricing were highlighted as key growth drivers.

Conclusion

Genpact's strong Q3 performance and strategic focus on innovation, execution, and partnerships position the company well for continued growth and success in the future. With a solid financial foundation and a clear strategic direction, Genpact is poised to deliver value to its clients and shareholders alike.

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