Genpact's Q4 2024 Earnings Call: Unpacking Contradictions in Data-Tech-AI Guidance and Growth Expectations

These are the key contradictions discussed in Genpact's latest 2024Q4 earnings call, specifically including: Guidance for Data-Tech-AI and Digital Operations, Average Contract Value (ACV) Trends, Data-Tech-AI growth expectations, Gen AI's impact on TAM, and Partnership Revenue:



Revenue Growth and AI Integration:
- Genpact reported revenue of $1.25 billion for Q4 2024, up 9% year-over-year.
- The growth was driven by strong performance in Data-Tech-AI, which increased by 12% year-over-year, and accelerating revenue growth in Digital Operations, up 6% year-over-year.

Bookings and Strategic Wins:
- Genpact's new bookings for 2024 reached $5.7 billion, up 15% year-over-year.
- This was supported by winning 14 large deals with 10% higher bookings compared to the previous year and adding 101 new logos.

Gross Margin and Operating Efficiency:
- The company's gross margin expanded by 10 basis points year-over-year in Q4, reaching 35.7%.
- This improvement was attributed to operating leverage and continued investments in strategic growth areas.

Data-Tech-AI Expansion:
- Revenue in Data-Tech-AI increased by 12% year-over-year in Q4.
- The launch of the AI Value Studio and Genpact Gigafactory is expected to create high-impact use cases and accelerate AI solution scaling, driving this growth.