Genpact Reports Third Quarter 2024 Results
Genpact (NYSE: G) reported strong Q3 2024 results with total revenue of $1.21 billion, up 7% year-over-year. The company's Data-Tech-AI revenue grew 9% to $569 million, while Digital Operations revenue increased 5% to $642 million. Net income rose 13% to $133 million, with diluted EPS up 16% to $0.74. The company has increased its 2024 guidance, now expecting 6% revenue growth, up from 2% in the prior year. Genpact repurchased approximately 1.9 million shares for $75 million during the quarter.
Genpact (NYSE: G) ha riportato risultati solidi nel terzo trimestre del 2024, con entrate totali di 1,21 miliardi di dollari, in aumento del 7% rispetto all'anno precedente. Le entrate da Data-Tech-AI sono cresciute del 9% raggiungendo i 569 milioni di dollari, mentre le entrate delle Operazioni Digitali sono aumentate del 5%, toccando i 642 milioni di dollari. L'utile netto è aumentato del 13%, arrivando a 133 milioni di dollari, con un EPS diluito in crescita del 16%, pari a 0,74 dollari. L'azienda ha rivisto al rialzo le previsioni per il 2024, ora prevedendo una crescita del fatturato del 6%, rispetto al 2% dell'anno precedente. Genpact ha riacquistato circa 1,9 milioni di azioni per 75 milioni di dollari durante il trimestre.
Genpact (NYSE: G) informó resultados sólidos en el tercer trimestre de 2024, con ingresos totales de 1.21 mil millones de dólares, un aumento del 7% interanual. Los ingresos de Data-Tech-AI crecieron un 9% hasta alcanzar los 569 millones de dólares, mientras que los ingresos de Operaciones Digitales aumentaron un 5% hasta 642 millones de dólares. Las ganancias netas aumentaron un 13% hasta los 133 millones de dólares, con un EPS diluido que subió un 16% hasta 0.74 dólares. La empresa ha elevado su previsión para 2024, ahora esperando un crecimiento de ingresos del 6%, frente al 2% del año anterior. Genpact recompró aproximadamente 1.9 millones de acciones por 75 millones de dólares durante el trimestre.
Genpact (NYSE: G)는 2024년 3분기 강력한 실적을 발표했습니다. 총 수익이 12억 1천만 달러로 전년 대비 7% 증가했습니다. 회사의 데이터-기술-AI 수익는 9% 증가하여 5억 6천9백만 달러에 달했으며, 디지털 운영 수익은 5% 증가하여 6억 4천2백만 달러가 되었습니다. 순수익은 13% 증가하여 1억 3천3백만 달러에 이르렀고, 희석 주당순이익(EPS)은 16% 상승하여 0.74달러가 되었습니다. 회사는 2024년 가이던스를 상향 조정했으며, 이제 전년의 2%에서 6%의 수익 성장을 기대하고 있습니다. Genpact는 분기 동안 약 190만 주를 7천5백만 달러에 재매입했습니다.
Genpact (NYSE: G) a annoncé des résultats solides pour le troisième trimestre 2024, avec un chiffre d'affaires total de 1,21 milliard de dollars, en hausse de 7 % par rapport à l'année précédente. Les revenus de Data-Tech-AI ont augmenté de 9 % pour atteindre 569 millions de dollars, tandis que les revenus des opérations numériques ont progressé de 5 % jusqu'à 642 millions de dollars. Le bénéfice net a augmenté de 13 % à 133 millions de dollars, avec un BPA dilué en hausse de 16 % à 0,74 dollar. L'entreprise a revu à la hausse ses prévisions pour 2024, s'attendant désormais à une croissance des revenus de 6 %, contre 2 % l'année précédente. Genpact a racheté environ 1,9 million d'actions pour 75 millions de dollars au cours du trimestre.
Genpact (NYSE: G) hat im dritten Quartal 2024 starke Ergebnisse gemeldet, mit Gesamterlösen von 1,21 Milliarden US-Dollar, was einem Anstieg von 7% im Jahresvergleich entspricht. Die Einnahmen aus Data-Tech-AI stiegen um 9% auf 569 Millionen US-Dollar, während die Einnahmen aus digitalen Betrieb um 5% auf 642 Millionen US-Dollar anstiegen. Der Nettogewinn stieg um 13% auf 133 Millionen US-Dollar, während das verwässerte EPS um 16% auf 0,74 US-Dollar zunahm. Das Unternehmen hat seine Prognose für 2024 angehoben und erwartet nun ein Umsatzwachstum von 6%, nach 2% im Vorjahr. Genpact hat im Laufe des Quartals etwa 1,9 Millionen Aktien für 75 Millionen US-Dollar zurückgekauft.
- Revenue growth of 7% YoY to $1.21 billion
- Net income increased 13% YoY to $133 million
- Data-Tech-AI revenue grew 9% to $569 million
- Diluted EPS up 16% to $0.74
- Cash flow from operations increased to $228 million from $162 million YoY
- Raised full-year 2024 revenue growth guidance to 5.9-6.1%
- None.
Insights
The Q3 2024 results demonstrate robust performance with several positive indicators. Total revenue reached
Profitability metrics are particularly impressive, with net income increasing
The raised full-year guidance, including revenue growth projection increase from
The standout performance of Data-Tech-AI segment, contributing
The recent AI Day event hosting over 100 clients highlights Genpact's commitment to leveraging generative AI and advanced technologies. The company's integrated approach combining data, domain expertise and AI capabilities creates a compelling competitive advantage in the digital transformation space.
The increased guidance for Data-Tech-AI revenue growth from
Total Revenue of
Diluted EPS of
"We delivered strong results again this quarter, with accelerating revenue growth, driven primarily by client trust in our ability to innovate across Data, Tech and AI. As a result, we are increasing guidance with
Key Financial Highlights – Third Quarter 2024
- Total revenue was
, up$1.21 billion 7% year-over-year, both on an as reported and constant currency basis.1 - Data-Tech-AI revenue was
, up$569 million 9% year-over-year, both on an as reported and constant currency basis,1 representing47% of total revenue.3 - Digital Operations revenue was
, up$642 million 5% year-over-year, both on an as reported and constant currency basis,1 representing53% of total revenue.3 - Gross profit was
, up$431 million 7% year-over-year, with a corresponding margin of35.6% . - Net income was
, up$133 million 13% year-over-year, with a corresponding margin of11% . - Income from operations was
, up$182 million 10% year-over-year, with a corresponding margin of15% . - Adjusted income from operations was
, up$213 million 9% year-over-year, with a corresponding margin of17.6% .4 - Diluted earnings per share was
, up$0.74 16% year-over-year. - Adjusted diluted earnings per share2 was
, up$0.85 12% year-over-year. - Cash flow from operations was
, up from$228 million in the third quarter of 2023.$162 million - Genpact repurchased approximately 1.9 million common shares during the quarter for total consideration of approximately
at an average price per share of$75 million .$38.72
Outlook
Genpact's outlook for the fourth quarter of 2024 is as follows:
- Total revenue in the range of
to$1.22 2 billion , representing year-over-year growth of approximately$1.23 3 billion6.6% to7.6% as reported, or5.8% to6.8% on a constant currency basis.1- Digital Operations revenue growth of approximately
5.4% year-over-year and Data-Tech-AI revenue growth of approximately9.0% year-over-year at the midpoint of the range, as reported. - Digital Operations revenue growth of approximately
4.0% year-over-year and Data-Tech-AI revenue growth of approximately9.0% year-over-year at the midpoint of the range, on a constant currency basis.1
- Digital Operations revenue growth of approximately
- Gross margin of approximately
35.6% . - Adjusted income from operations margin5 of approximately
17.6% . - Genpact's updated outlook for the full year 2024 is as follows:
- Total revenue in the range of
to$4.74 0 billion , representing year-over-year growth of approximately$4.75 1 billion5.9% to6.1% as reported, or6.0% to6.2% on a constant currency basis,1 up from the prior guidance of approximately4.0% to5.0% as reported.- Digital Operations revenue growth of approximately
5.9% year-over-year and Data-Tech-AI revenue growth of approximately6.2% year-over-year at the midpoint of the range, as reported, up from the previous midpoints of5.2% and3.8% , respectively. - Digital Operations revenue growth of approximately
6.0% year-over-year and Data-Tech-AI revenue growth of approximately6.2% year-over-year at the midpoint of the range, on a constant currency basis,1 up from the previous midpoints of5.5% and3.9% , respectively.
- Digital Operations revenue growth of approximately
- Gross margin of approximately
35.4% , up from35.3% . - Adjusted income from operations margin5 of approximately
17.1% , up from17.0% . - Adjusted diluted EPS6 in the range of
to$3.23 , up from the prior range of$3.24 to$3.14 .$3.18
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 third quarter of 2023 originally reported was | |||||||
4 | 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. | |||||||
5 | 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. | |||||||
6 | 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. |
Third Quarter 2024 Earnings Call
Genpact's management will host a conference call on November 7, 2024, at 5:00PM ET to discuss the company's performance for the third quarter ended September 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.
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
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, | As of September 30, | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ 583,670 | $ 1,022,647 | ||
Accounts receivable, net of allowance for credit losses of and respectively | 1,116,273 | 1,214,098 | ||
Prepaid expenses and other current assets | 191,566 | 164,064 | ||
Total current assets | $ 1,891,509 | $ 2,400,809 | ||
Property, plant and equipment, net | 189,803 | 207,592 | ||
Operating lease right-of-use assets | 186,167 | 185,666 | ||
Deferred tax assets | 298,921 | 288,773 | ||
Intangible assets, net | 53,028 | 33,337 | ||
Goodwill | 1,683,782 | 1,683,053 | ||
Contract cost assets | 202,543 | 200,440 | ||
Other assets, net of allowance for credit losses of December 31, 2023 and September 30, 2024, respectively | 299,960 | 325,990 | ||
Total assets | $ 4,805,713 | $ 5,325,660 | ||
Liabilities and equity | ||||
Current liabilities | ||||
Short-term borrowings | $ 10,000 | — | ||
Current portion of long-term debt | 432,242 | 426,069 | ||
Accounts payable | 27,739 | 18,513 | ||
Income taxes payable | 38,458 | 52,793 | ||
Accrued expenses and other current liabilities | 759,180 | 747,489 | ||
Operating leases liability | 50,313 | 49,865 | ||
Total current liabilities | $ 1,317,932 | $ 1,294,729 | ||
Long-term debt, less current portion | 824,720 | 1,201,439 | ||
Operating leases liability | 168,015 | 162,004 | ||
Deferred tax liabilities | 11,706 | 11,577 | ||
Other liabilities | 234,948 | 261,218 | ||
Total liabilities | $ 2,557,321 | $ 2,930,967 | ||
Shareholders' equity | ||||
Preferred shares, | — | — | ||
Common shares, and 176,347,167 issued and outstanding as of December 31, 2023 and September 30, 2024, respectively | 1,789 | 1,758 | ||
Additional paid-in capital | 1,883,944 | 1,922,042 | ||
Retained earnings | 1,085,209 | 1,207,387 | ||
Accumulated other comprehensive income (loss) | (722,550) | (736,494) | ||
Total equity | $ 2,248,392 | $ 2,394,693 | ||
Total liabilities and equity | $ 4,805,713 | $ 5,325,660 |
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income (Unaudited) (In thousands, except per share data and share count)
| ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||
2023 | 2024 | 2023 | 2024 | |||||
Net revenues | $ 1,135,792 | $ 1,210,949 | $ 3,330,635 | $ 3,518,398 | ||||
Cost of revenue | 732,962 | 779,511 | 2,167,524 | 2,274,104 | ||||
Gross profit | $ 402,830 | $ 431,438 | $ 1,163,111 | $ 1,244,294 | ||||
Operating expenses: | ||||||||
Selling, general and administrative expenses | 229,731 | 243,315 | 675,642 | 717,988 | ||||
Amortization of acquired intangible assets | 7,497 | 6,495 | 24,009 | 19,980 | ||||
Other operating (income) expense, net | (91) | (22) | (4,665) | (5,561) | ||||
Income from operations | $ 165,693 | $ 181,650 | $ 468,125 | $ 511,887 | ||||
Foreign exchange gains, net | 2,975 | 1,133 | 3,698 | 4,424 | ||||
Interest income (expense), net | (13,255) | (12,387) | (35,020) | (36,167) | ||||
Other income (expense), net | (508) | 5,091 | 6,947 | 14,128 | ||||
Income before income tax expense | $ 154,905 | $ 175,487 | $ 443,750 | $ 494,272 | ||||
Income tax expense | 37,312 | 42,669 | 103,804 | 122,517 | ||||
Net income | $ 117,593 | $ 132,818 | $ 339,946 | $ 371,755 | ||||
Earnings per common share | ||||||||
Basic | $ 0.65 | $ 0.75 | $ 1.86 | $ 2.07 | ||||
Diluted | $ 0.64 | $ 0.74 | $ 1.83 | $ 2.06 | ||||
Weighted average number of common shares used in | ||||||||
Basic | 181,399,897 | 177,595,400 | 182,808,518 | 179,221,213 | ||||
Diluted | 183,801,791 | 179,714,223 | 185,737,729 | 180,854,682 |
GENPACT LIMITED AND ITS SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) (In thousands) | ||||
Nine months ended September 30, | ||||
2023 | 2024 | |||
Operating activities | ||||
Net income | $ 339,946 | $ 371,755 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 54,410 | 51,830 | ||
Amortization of debt issuance costs | 1,473 | 1,749 | ||
Amortization of acquired intangible assets | 24,009 | 19,980 | ||
Loss on the sale of the business classified as held for sale | 802 | — | ||
Allowance for credit losses | 5,081 | 12,395 | ||
Unrealized gain (loss) on revaluation of foreign currency assets/liabilities | 1,283 | (7,909) | ||
Stock-based compensation expense | 63,850 | 47,276 | ||
Deferred tax (benefit) expense | (7,092) | 14,509 | ||
Others, net | 1,512 | 386 | ||
Change in operating assets and liabilities: | ||||
Increase in accounts receivable | (73,400) | (95,790) | ||
Increase in prepaid expenses, other current assets, contract cost assets, operating lease | (110,227) | (5,752) | ||
Decrease in accounts payable | (9,196) | (8,021) | ||
Decrease in accrued expenses, other current liabilities, operating lease liabilities and other liabilities | (80,694) | (5,056) | ||
Increase in income taxes payable | 87,149 | 14,825 | ||
Net cash provided by operating activities | $ 298,906 | $ 412,177 | ||
Investing activities | ||||
Purchase of property, plant and equipment | (37,330) | (63,049) | ||
Payment for internally generated intangible assets (including intangibles under development) | (2,569) | (1,787) | ||
Proceeds from sale of property, plant and equipment | 21 | 128 | ||
Payment for business acquisitions, net of cash acquired | (682) | — | ||
Payment for divestiture of business | (19,510) | — | ||
Net cash used for investing activities | $ (60,070) | $ (64,708) | ||
Financing activities | ||||
Repayment of finance lease obligations | (9,168) | (8,238) | ||
Payment of debt issuance and refinancing costs | — | (4,123) | ||
Proceeds of long-term debt | — | 400,000 | ||
Repayment of long-term debt | (19,875) | (26,500) | ||
Proceeds from short-term borrowings | 148,000 | 50,000 | ||
Repayment of short-term borrowings | (244,000) | (60,000) | ||
Proceeds from issuance of common shares under stock-based compensation plans | 34,638 | 12,170 | ||
Payment for net settlement of stock-based awards | (19,687) | (21,307) | ||
Payment of earn-out consideration | (2,399) | — | ||
Dividend paid | (75,230) | (81,768) | ||
Payment for stock repurchased and retired (including expenses related to stock repurchase) | (150,548) | (167,656) | ||
Net cash (used for) provided by financing activities | $ (338,269) | $ 92,578 | ||
Net (decrease) increase in cash and cash equivalents | (99,433) | 440,047 | ||
Effect of exchange rate changes | (6,328) | (1,070) | ||
Cash and cash equivalents at the beginning of the period | 646,765 | 583,670 | ||
Cash and cash equivalents at the end of the period | $ 541,004 | $ 1,022,647 | ||
Supplementary information | ||||
Cash paid during the period for interest | $ 31,551 | $ 39,180 | ||
Cash paid during the period for income taxes, net of refund | $ 123,395 | $ 77,983 |
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 nine months ended September 30, 2023 and 2024:
Reconciliation of Net Income/Margin to Adjusted Income from Operations/Margin (In thousands) | ||||||||
Three months ended | Nine months ended | |||||||
2023 | 2024 | 2023 | 2024 | |||||
Net income | $ 117,593 | $ 132,818 | $ 339,946 | $ 371,755 | ||||
Foreign exchange (gains), net | (2,975) | (1,133) | (3,698) | (4,424) | ||||
Interest (income) expense, net | 13,255 | 12,387 | 35,020 | 36,167 | ||||
Income tax expense | 37,312 | 42,669 | 103,804 | 122,517 | ||||
Stock-based compensation expense | 22,314 | 19,726 | 63,850 | 47,276 | ||||
Amortization and impairment of acquired intangible assets | 7,495 | 6,494 | 23,895 | 19,963 | ||||
Restructuring (income) expense | — | — | (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 | $ 194,994 | $ 212,961 | $ 559,946 | $ 593,254 | ||||
Net income margin | 10.4 % | 11.0 % | 10.2 % | 10.6 % | ||||
Adjusted income from operations margin | 17.2 % | 17.6 % | 16.8 % | 16.9 % |
Reconciliation of Income from Operations/Margin to Adjusted Income from Operations/Margin (In thousands) | ||||||||
Three months ended | Nine months ended | |||||||
2023 | 2024 | 2023 | 2024 | |||||
Income from operations | $ 165,693 | $ 181,650 | $ 468,125 | $ 511,887 | ||||
Stock-based compensation expense | 22,314 | 19,726 | 63,850 | 47,276 | ||||
Amortization and impairment of acquired intangible assets | 7,495 | 6,494 | 23,895 | 19,963 | ||||
Other income (expense), net | (508) | 5,091 | 6,947 | 14,128 | ||||
Restructuring (income) expense | — | — | (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 | $ 194,994 | $ 212,961 | $ 559,946 | $ 593,254 | ||||
Income from operations margin | 14.6 % | 15.0 % | 14.1 % | 14.5 % | ||||
Adjusted income from operations margin | 17.2 % | 17.6 % | 16.8 % | 16.9 % |
Reconciliation of Diluted EPS to Adjusted Diluted EPS7 (Per share data) | ||||||||
Three months ended | Nine months ended | |||||||
2023 | 2024 | 2023 | 2024 | |||||
Diluted EPS | $ 0.64 | $ 0.74 | $ 1.83 | $ 2.06 | ||||
Stock-based compensation expense | 0.12 | 0.11 | 0.34 | 0.26 | ||||
Amortization and impairment of acquired intangible assets | 0.04 | 0.04 | 0.13 | 0.11 | ||||
Restructuring (income) expense | — | — | (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 | — | — | — | — | ||||
Tax impact on stock-based compensation expense | (0.03) | (0.02) | (0.10) | (0.03) | ||||
Tax impact on amortization and impairment of acquired intangible assets | (0.01) | (0.01) | (0.03) | (0.03) | ||||
Tax impact on restructuring income (expense) | — | — | 0.01 | — | ||||
Tax impact on operating loss from the business classified as held for sale | — | — | — | — | ||||
Tax impact on loss on the sale of the business classified as held for sale | — | — | — | — | ||||
Adjusted diluted EPS | $ 0.76 | $ 0.85 | $ 2.16 | $ 2.37 |
7 | 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 Margin8 | ||
Year ending December 31, 2024 | ||
Net income margin | 10.6 % | |
Estimated interest (income) expense, net | 1.1 % | |
Estimated income tax expense | 3.4 % | |
Foreign exchange (gains), net | (0.1) % | |
Estimated stock-based compensation expense | 1.4 % | |
Estimated amortization and impairment of acquired intangible assets | 0.6 % | |
Adjusted income from operations margin | 17.1 % |
Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from Operations Margin8 | ||
Year ending December 31, 2024 | ||
Income from operations margin | 14.6 % | |
Estimated stock-based compensation expense | 1.4 % | |
Estimated amortization and impairment of acquired intangible assets | 0.6 % | |
Estimated other income (expense), net | 0.5 % | |
Adjusted income from operations margin | 17.1 % |
Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS8 (Per share data) | ||||
Year ending December 31, 2024 | ||||
Lower | Upper | |||
Diluted EPS | $ 2.80 | $ 2.81 | ||
Estimated stock-based compensation expense | 0.38 | 0.38 | ||
Estimated amortization and impairment of acquired intangible assets | 0.15 | 0.15 | ||
Estimated tax impact on stock-based compensation expense | (0.05) | (0.05) | ||
Estimated tax impact on amortization and impairment of acquired intangible assets | (0.04) | (0.04) | ||
Adjusted diluted EPS | $ 3.23 | $ 3.24 |
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 quarter ending December 31, 2024:
Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin9 | ||
Quarter ending December 31, 2024 | ||
Net income margin | 10.7 % | |
Estimated interest (income) expense, net | 1.3 % | |
Estimated income tax expense | 3.3 % | |
Estimated stock-based compensation expense | 1.7 % | |
Estimated amortization and impairment of acquired intangible assets | 0.5 % | |
Adjusted income from operations margin | 17.6 % |
Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from Operations Margin9 | ||
Quarter ending December 31, 2024 | ||
Income from operations margin | 14.9 % | |
Estimated stock-based compensation expense | 1.7 % | |
Estimated amortization and impairment of acquired intangible assets | 0.5 % | |
Estimated other income (expense), net | 0.4 % | |
Adjusted income from operations margin | 17.6 % |
9 | Due to rounding, the numbers presented in this table may not add up precisely to the totals provided. |
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SOURCE Genpact Ltd.
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