Pic

Genpact Limited

$G
$42.36
Капитализция: $7.8B
Показать больше информации о компании

О компании

Genpact Limited предоставляет услуги аутсорсинга бизнес-процессов и информационных технологий (ИТ) в Северной и Латинской Америке, Индии, остальной Азии и Европе. Она работает в трех сегментах: банковское дело, рынки капитала и показать больше
страхование потребительских товаров, розничная торговля, медико-биологические науки и здравоохранение, а также высокие технологии, производство и услуги. Финансовые и бухгалтерские услуги компании включают в себя кредиторскую задолженность, такую ​​как управление документами, обработка счетов, управление утверждением и разрешением, а также услуги по оплате поездок и расходов, включая управление основными данными клиентов, управление кредитами и контрактами, выполнение, выставление счетов и т. Д. услуги по сбору и управлению спорами записываются в отчеты об услугах, включая бухгалтерский учет, казначейство, налоги, учет затрат на продукцию, а также услуги по закрытию и отчетности, финансовое планирование и анализ, состоящий из составления бюджета, прогнозирования и отчетности о результатах деятельности, а также услуги по корпоративным рискам и соблюдению требований, включая операционные риски и элементы управления. Он также обеспечивает проектирование цепочки поставок, планирование, оптимизацию запасов, управление транспортировкой и логистикой, а также услуги по поиску и закупкам послепродажных услуг, включая прямой и косвенный стратегический поиск поставщиков, управление категориями, аналитику расходов, операции по закупкам, управление основными данными и другие закупки и консультационные услуги по цепочке поставок, а также продажи и коммерческие услуги в областях, связанных с запросом предложения, предложением по заказу и обслуживанием клиентов. Кроме того, компания предлагает ИТ-услуги, которые включают поддержку вычислений для конечных пользователей, управление инфраструктурой, поддержку производства приложений, а также услуги по управлению базами данных и услуги трансформации, которые включают цифровые решения, консалтинговые услуги и аналитические услуги и решения. Он обслуживает банковское дело, рынок капитала, страхование, потребительские товары, розничную торговлю, биологические науки, здравоохранение, высокие технологии, а также промышленность и сферы услуг. Genpact Limited была основана в 1997 году и базируется в Гамильтоне, Бермудские острова.
Genpact Limited provides business process outsourcing and information technology (IT) services North and Latin America, India, rest of Asia, and Europe. It operates in three segments: Banking, Capital Markets and Insurance Consumer Goods, Retail, Life Sciences and Healthcare and High Tech, Manufacturing and Services. The company's finance and accounting services include accounts payable, such as document management, invoice processing, approval and resolution management, and travel and expense processing invoice-to-cash services, including customer master data management, credit and contract management, fulfillment, billing, collections, and dispute management services record to report services comprising accounting, treasury, tax, product cost accounting, and closing and reporting services financial planning and analysis consisting of budgeting, forecasting, and business performance reporting and enterprise risk and compliance services, including operational risks and controls. It also provides supply chain design, planning, inventory optimization, transportation and logistics management, and after-sales services sourcing and procurement services comprising direct and indirect strategic sourcing, category management, spend analytics, procurement operation, master data management, and other procurement and supply chain advisory services and sales and commercial services in the lead-to-quote, quote-to-order, and customer service areas. In addition, the company offers IT services, which include end-user computing support, infrastructure management, application production support, and database management services and transformation services that include digital solutions, consulting services, and analytics services and solutions. It serves banking, capital market, insurance, consumer goods, retail, life science, healthcare, high tech, and manufacturing and service industries. Genpact Limited was founded in 1997 and is based in Hamilton, Bermuda.
Перевод автоматический

показать меньше

Отчетность

03.11.2021, 23:08 EPS за 3 квартал составил ХХ, консенсус YY

04.08.2021, 23:12 Прибыль на акцию за 2 квартал XX, консенсус-прогноз YY
Квартальная отчетность будет доступна после Регистрации

Прогнозы аналитиков

Аналитик Аарон Кесслер поддерживает с сильной покупкой и снижает целевую цену со xxx до yyy долларов.

25.10.2021, 16:02 Аналитик Berenberg Сунил Райгопал инициирует освещение на GoDaddy с рейтингом «Покупать» и объявляет целевую цену в xxx долларов.
Прогнозы аналитиков будут доступны после Регистрации

Genpact Reports First Quarter 2022 Results

Genpact сообщает о результатах за первый квартал 2022 г.

5 мая 2022 г.

Total Revenue of $1.1 billion, Up 13% (14% on a constant currency basis)[1]

Global Client Revenue of $973 million, Up 14% (15% on a constant currency basis)(1)

Diluted EPS of $0.51, Up 9%; Adjusted Diluted EPS[2] of $0.60, Up 2%

NEW YORK, May 5, 2022 /PRNewswire/ -- Genpact Limited (NYSE: G), a global professional services firm focused on delivering digital transformation, today announced financial results for the first quarter ended March 31, 2022.

"We had a great start to the year with top-line growth, adjusted operating income margin, and adjusted diluted EPS all coming in ahead of our initial expectations," said "Tiger" Tyagarajan, Genpact's president and CEO. "Our investments in our strategic choices have positioned us well to help clients navigate the many challenges in this macro environment. We saw another quarter of strong demand for our analytics, digital, and consulting businesses that make up Transformation Services, as well as continued strength in our Intelligent Operations business." 

Key Financial Highlights – First Quarter 2022

  • Total revenue was $1.1 billion, up 13% year-over-year (14% on a constant currency basis).1
  • Revenue from Global Clients was $973 million, up 14% year-over-year (15% on a constant currency basis),1 representing 91% of total revenue.
  • Revenue from GE businesses was $95 million, up 2% year-over-year, representing 9% of total revenue.
  • Net income was $96 million, up 5% year-over-year, with a corresponding margin of 9.0%.
  • Income from operations was $134 million, up 5% year-over-year, with a corresponding margin of 12.5%. Adjusted income from operations was $160 million, down 2% year-over-year, with a corresponding margin of 15.0%.[3]
  • Diluted earnings per share was $0.51, up 9% year-over-year, and adjusted diluted earnings per share2 was $0.60, up 2% year-over-year.
  • Cash utilized in operations was $114 million, compared to $77 million generated from operations during the first quarter of 2021.
  • Genpact repurchased approximately 1.6 million of its common shares during the quarter for total consideration of approximately $76 million at an average price per share of $46.61.

Full Year 2022 Outlook

Genpact now expects:

  • Total revenue in the range of $4.325 billion to $4.4 billion, up 8.0% to 9.0%, or 9.0% to 11.0% on a constant currency basis, increased from the prior full-year outlook of $4.3 billion to $4.4 billion, up 7.0% to 9.0%, or 8.0% to 10.0% on a constant currency basis.1 The full-year revenue outlook now assumes an additional adverse impact from foreign currency (at current exchange rates) compared to the outlook given at the beginning of the year.
  • Global Client revenue growth in the range of 9.0% to 11.0%, or 11.0% to 13.0% on a constant currency basis,1 increased from the prior outlook of 8.0% to 11.0%, or 9.0% to 12.0% on a constant currency basis.1
  • Adjusted diluted EPS[4] of $2.60 to $2.76, increased from the prior outlook of $2.53 to $2.71.

Genpact continues to expect:

  • Adjusted income from operations margin[5] of 16.0% to 16.5%.

Conference Call to Discuss Financial Results

Genpact's management will host an hour-long conference call beginning at 4:30 p.m. ET on May 5, 2022 to discuss the company's performance for the first quarter ended March 31, 2022. To participate, callers can dial +1 (877) 654-0173 from within the U.S. or +1 (281) 973-6289 from any other country. Callers will be prompted to enter the conference ID, 8898149. 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.

Genpact (NYSE: G) is a global professional services firm that makes business transformation real. Led by our purpose -- the relentless pursuit of a world that works better for people -- we drive digital-led innovation and digitally enabled intelligent operations for our clients. Guided by our experience reinventing and running thousands of processes for hundreds of clients, many of them Global Fortune 500 companies, we drive real-world transformation at scale. We think with design, dream in digital, and solve problems with data and analytics. Combining our expertise in end-to-end operations and our AI-based platform, Genpact Cora, we focus on the details – all 100,000+ of us. From New York to New Delhi, and more than 30 countries in between, we connect every dot, reimagine every process, and reinvent the ways companies work. We know that reimagining each step from start to finish creates better business outcomes. Whatever it is, we'll be there with you – accelerating digital transformation to create bold, lasting results – because transformation happens here.

This press release contains certain statements concerning our future growth prospects, including our outlook for 2022, 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 the impact of the invasion of Ukraine by Russia and the related sanctions and other measures being implemented or imposed in response thereto, as well as any potential expansion or escalation of the conflict or its economic disruption beyond its current scope, wage increases in locations in which we have operations, our ability to attract and retain skilled professionals, general inflationary pressures and our ability to share increased costs with our clients, our ability to effectively price our services and maintain pricing and employee utilization rates, the impact of the COVID-19 pandemic on our business and on our employees, clients, partners and suppliers, a slowdown in the economies and sectors in which our clients operate, a slowdown in the business process outsourcing or information technology services sectors, our ability to develop and successfully execute our business strategies, the risks and uncertainties arising from our past and future acquisitions, 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, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, general economic conditions affecting our industry, political, economic or business conditions in countries in which we operate, including the withdrawal of the United Kingdom from the European Union, commonly known as Brexit, 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.

 Investors


Roger Sachs, CFA



+1 (203) 808-6725



[email protected]



 Media


Siya Belliappa

+1 (718) 561-9843

[email protected]

 

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

 (In thousands, except per share data and share count)

 




As of December 31, 2021


As of March 31, 2022

Assets





Current assets





Cash and cash equivalents


$                          899,458


$                                   861,760

Accounts receivable, net of allowance for credit losses of
$24,329 and $21,938 as of December 31, 2021 and March 31, 2022,
respectively


887,742


971,361

Prepaid expenses and other current assets


134,441


151,613

Total current assets


$                    1,921,641


$                          1,984,734






Property, plant and equipment, net


215,089


202,707

Operating lease right-of-use assets


270,603


253,568

Deferred tax assets


106,322


99,079

Intangible assets, net


169,635


154,149

Goodwill


1,731,027


1,722,012

Contract cost assets


238,794


234,772

Other assets, net of allowance for credit losses of $3,711 and $3,272
as of December 31, 2021 and March 31, 2022, respectively


322,158


320,250

Total assets


$                   4,975,269


$                            4,971,271






Liabilities and equity





Current liabilities





Short-term borrowings


$                                      —


$                                 250,000

Current portion of long-term debt


383,433


383,569

Accounts payable


24,984


21,098

Income taxes payable


47,353


53,212

Accrued expenses and other current liabilities


791,440


615,918

Operating leases liability


61,591


59,497

Total current liabilities


$                   1,308,801


$                           1,383,294






Long-term debt, less current portion


1,272,476


1,264,372

Operating leases liability


247,707


229,776

Deferred tax liabilities


3,942


3,613

Other liabilities


245,210


242,822

Total liabilities


$                   3,078,136


$                           3,123,877






Shareholders' equity





Preferred shares, $0.01 par value, 250,000,000 authorized, none issued



Common shares, $0.01 par value, 500,000,000 authorized, 185,336,357
and 185,072,415 issued and outstanding as of December 31, 2021 and
March 31, 2022, respectively


1,847


1,845

Additional paid-in capital


1,717,165


1,693,854

Retained earnings


732,474


729,503

Accumulated other comprehensive income (loss)


(554,353)


(577,808)

Total equity


$                    1,897,133


$                           1,847,394






Total liabilities and equity


$                   4,975,269


$                            4,971,271







 

GENPACT LIMITED AND ITS SUBSIDIARIES

 

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share data and share count)

 




Three months ended March 31,



2021


2022

Net revenues


$              946,071


$         1,068,443

Cost of revenue


600,928


685,962

Gross profit


$            345,143


$           382,481

Operating expenses:





Selling, general and administrative expenses


200,732


237,296

Amortization of acquired intangible assets


16,176


11,306

Other operating (income) expense, net


353


3

Income from operations


$            127,882


$           133,876

Foreign exchange gains (losses), net


3,293


4,303

Interest income (expense), net


(12,342)


(12,088)

Other income (expense), net


1,392


(409)

Income before income tax expense


$            120,225


$           125,682

Income tax expense


28,952


29,503

Net income


$              91,273


$              96,179

Earnings per common share





Basic


$                     0.48


$                     0.52

Diluted


$                     0.47


$                     0.51

Weighted average number of common shares used in computing earnings per
common share





Basic


188,650,112


185,637,776

Diluted


193,213,258


189,558,404

 

GENPACT LIMITED AND ITS SUBSIDIARIES

 

 Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 




Three Months ended March 31,



2021


2022

Operating activities





Net income


$                    91,273


$                    96,179

Adjustments to reconcile net income to net cash (used for)/ provided by operating activities:





Depreciation and amortization


28,953


24,847

Amortization of debt issuance costs


557


690

Amortization of acquired intangible assets


16,176


11,306

Write-down of intangible assets and property, plant and equipment


836


Allowance for credit losses


727


(463)

Unrealized gain on revaluation of foreign currency asset/liability


(3,127)


(4,599)

Stock-based compensation expense


17,430


15,250

Deferred tax expense


31


4,914

Others, net


201


19

Change in operating assets and liabilities:





Increase in accounts receivable


(6,385)


(83,548)

(Increase) decrease in prepaid expenses, other current assets, contract cost assets, operating lease
right-of-use assets and other assets


14,526


 

(4,120)

Increase (decrease) in accounts payable


7,700


(2,010)

Decrease in accrued expenses, other current liabilities, operating lease liabilities and other liabilities


(106,727)


(179,186)

Increase in income taxes payable


14,985


6,440

Net cash (used for)/provided by operating activities


$                      77,156


$               (114,281)

Investing activities





Purchase of property, plant and equipment


(12,010)


(16,744)

Payment for internally generated intangible assets (including intangibles under development)


(1,897)


(1,065)

Proceeds from sale of property, plant and equipment


681


43

Payment for business acquisitions, net of cash acquired


(5,309)


Net cash used for investing activities


$                 (18,535)


$                 (17,766)

Financing activities





Repayment of finance lease obligations


(3,037)


(2,292)

Payment of debt issuance costs


(1,893)


Proceeds from long-term debt


350,000


Repayment of long-term debt


(8,500)


(8,500)

Proceeds from short-term borrowings



250,000

Repayment of short-term borrowings


(250,000)


Proceeds from issuance of common shares under stock-based compensation plans


6,596


3,300

Payment for net settlement of stock-based awards


(28,721)


(41,889)

Dividend paid


(20,115)


(23,134)

Payment for stock repurchased and retired (including expenses related to stock repurchase)


(134,218)


(76,032)

Net cash (used for)/ provided by financing activities


$                (89,888)


$                101,453

Effect of exchange rate changes


(5,171)


(7,104)

Net decrease in cash and cash equivalents


(31,267)


(30,594)

Cash and cash equivalents at the beginning of the period


680,440


899,458

Cash and cash equivalents at the end of the period


$               644,002


$                861,760

Supplementary information





Cash paid during the period for interest


$                     4,086


$                     1,893

Cash paid during the period for income taxes, net of refund


$                    21,988


$                    28,580

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.

Prior to July 2012, Genpact's management used financial statements that excluded significant acquisition-related expenses, amortization of related acquired intangibles, and amortization of acquired intangibles recorded at the company's formation in 2004 for its internal management reporting, budgeting and decision-making purposes, including comparing Genpact's operating results to that of its competitors. However, considering 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. 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, losses and impairment charges attributable to equity-method investments 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 adjusted 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 ended March 31, 2021 and 2022:

 

Reconciliation of Net Income/Margin to Adjusted Income from Operations/Margin

(In thousands)

 



Three months ended March 31,



2021


2022

Net income


$                  91,273


$                  96,179

Foreign exchange (gains) losses, net


(3,293)


(4,303)

Interest (income) expense, net


12,342


12,088

Income tax expense


28,952


29,503

Stock-based compensation expense


17,430


15,250

Amortization and impairment of acquired intangible assets


15,952


11,302

Adjusted income from operations


$             162,656


$             160,019

Net income margin


9.6%


9.0%

Adjusted income from operations margin


17.2%


15.0%

               

 

Reconciliation of Income from Operations/Margin to Adjusted Income from Operations/Margin

(In thousands)

 



Three months ended March 31,



2021


2022

Income from operations


$               127,882


$               133,876

Stock-based compensation expense


17,430


15,250

Amortization and impairment of acquired intangible assets


15,952


11,302

Other income (expense), net


1,392


(409)

Adjusted income from operations


$             162,656


$             160,019

Income from operations margin


13.5%


12.5%

Adjusted income from operations margin


17.2%


15.0%


 

Reconciliation of Diluted EPS to Adjusted Diluted EPS[6]

(Per share data) 

 



Three months ended March 31,



2021


2022

Diluted EPS


$                    0.47


$                    0.51

Stock-based compensation expense


0.09


0.08

Amortization and impairment of acquired intangible assets


0.08


0.06

Tax impact on stock-based compensation expense


(0.03)


(0.03)

Tax impact on amortization and impairment of acquired intangible assets


(0.02)


(0.01)

Adjusted diluted EPS


$                    0.59


$                     0.60

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, 2022:

Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin[7]




Year ending December 31, 2022



Lower


Upper

Net income margin


9.4%


9.8%

Estimated foreign exchange (gains) losses, net


(0.1) %


(0.1) %

Estimated interest (income) expense, net


1.0%


1.0%

Estimated income tax expense


3.0%


3.1%

Estimated stock-based compensation expense


1.7%


1.6%

Estimated amortization of acquired intangible assets


1.0%


1.0%

Adjusted income from operations margin


16.0%


16.5%

 

Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from

Operations Margin7

 



Year ending December 31, 2022



Lower


Upper

Income from operations margin


13.3%


13.8%

Estimated stock-based compensation expense


1.7%


1.6%

Estimated amortization and impairment of acquired intangible assets


1.0%


1.0%

Estimated other income (expense), net


0.1%


0.1%

Adjusted income from operations margin


16.0%


16.5%

 

 

Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS7

(Per share data)

 



Year ending December 31, 2022



Lower


Upper

Diluted EPS


$                 2.14


$                2.30

Estimated stock-based compensation expense


0.39


0.39

Estimated amortization and impairment of acquired intangible assets


0.23


0.23

Estimated tax impact on stock-based compensation expense


(0.10)


(0.10)

Estimated tax impact on amortization and impairment of acquired intangible assets


(0.06)


(0.06)

Adjusted diluted EPS


$                2.60


$                2.76



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

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.



4

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.



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

Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.



7

Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.

Total Revenue of $1.1 billion, Up 13% (14% on a constant currency basis)[1]

Global Client Revenue of $973 million, Up 14% (15% on a constant currency basis)(1)

Diluted EPS of $0.51, Up 9%; Adjusted Diluted EPS[2] of $0.60, Up 2%

NEW YORK, May 5, 2022 /PRNewswire/ -- Genpact Limited (NYSE: G), a global professional services firm focused on delivering digital transformation, today announced financial results for the first quarter ended March 31, 2022.

"We had a great start to the year with top-line growth, adjusted operating income margin, and adjusted diluted EPS all coming in ahead of our initial expectations," said "Tiger" Tyagarajan, Genpact's president and CEO. "Our investments in our strategic choices have positioned us well to help clients navigate the many challenges in this macro environment. We saw another quarter of strong demand for our analytics, digital, and consulting businesses that make up Transformation Services, as well as continued strength in our Intelligent Operations business." 

Key Financial Highlights – First Quarter 2022

  • Total revenue was $1.1 billion, up 13% year-over-year (14% on a constant currency basis).1
  • Revenue from Global Clients was $973 million, up 14% year-over-year (15% on a constant currency basis),1 representing 91% of total revenue.
  • Revenue from GE businesses was $95 million, up 2% year-over-year, representing 9% of total revenue.
  • Net income was $96 million, up 5% year-over-year, with a corresponding margin of 9.0%.
  • Income from operations was $134 million, up 5% year-over-year, with a corresponding margin of 12.5%. Adjusted income from operations was $160 million, down 2% year-over-year, with a corresponding margin of 15.0%.[3]
  • Diluted earnings per share was $0.51, up 9% year-over-year, and adjusted diluted earnings per share2 was $0.60, up 2% year-over-year.
  • Cash utilized in operations was $114 million, compared to $77 million generated from operations during the first quarter of 2021.
  • Genpact repurchased approximately 1.6 million of its common shares during the quarter for total consideration of approximately $76 million at an average price per share of $46.61.

Full Year 2022 Outlook

Genpact now expects:

  • Total revenue in the range of $4.325 billion to $4.4 billion, up 8.0% to 9.0%, or 9.0% to 11.0% on a constant currency basis, increased from the prior full-year outlook of $4.3 billion to $4.4 billion, up 7.0% to 9.0%, or 8.0% to 10.0% on a constant currency basis.1 The full-year revenue outlook now assumes an additional adverse impact from foreign currency (at current exchange rates) compared to the outlook given at the beginning of the year.
  • Global Client revenue growth in the range of 9.0% to 11.0%, or 11.0% to 13.0% on a constant currency basis,1 increased from the prior outlook of 8.0% to 11.0%, or 9.0% to 12.0% on a constant currency basis.1
  • Adjusted diluted EPS[4] of $2.60 to $2.76, increased from the prior outlook of $2.53 to $2.71.

Genpact continues to expect:

  • Adjusted income from operations margin[5] of 16.0% to 16.5%.

Conference Call to Discuss Financial Results

Genpact's management will host an hour-long conference call beginning at 4:30 p.m. ET on May 5, 2022 to discuss the company's performance for the first quarter ended March 31, 2022. To participate, callers can dial +1 (877) 654-0173 from within the U.S. or +1 (281) 973-6289 from any other country. Callers will be prompted to enter the conference ID, 8898149. 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.

Genpact (NYSE: G) is a global professional services firm that makes business transformation real. Led by our purpose -- the relentless pursuit of a world that works better for people -- we drive digital-led innovation and digitally enabled intelligent operations for our clients. Guided by our experience reinventing and running thousands of processes for hundreds of clients, many of them Global Fortune 500 companies, we drive real-world transformation at scale. We think with design, dream in digital, and solve problems with data and analytics. Combining our expertise in end-to-end operations and our AI-based platform, Genpact Cora, we focus on the details – all 100,000+ of us. From New York to New Delhi, and more than 30 countries in between, we connect every dot, reimagine every process, and reinvent the ways companies work. We know that reimagining each step from start to finish creates better business outcomes. Whatever it is, we'll be there with you – accelerating digital transformation to create bold, lasting results – because transformation happens here.

This press release contains certain statements concerning our future growth prospects, including our outlook for 2022, 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 the impact of the invasion of Ukraine by Russia and the related sanctions and other measures being implemented or imposed in response thereto, as well as any potential expansion or escalation of the conflict or its economic disruption beyond its current scope, wage increases in locations in which we have operations, our ability to attract and retain skilled professionals, general inflationary pressures and our ability to share increased costs with our clients, our ability to effectively price our services and maintain pricing and employee utilization rates, the impact of the COVID-19 pandemic on our business and on our employees, clients, partners and suppliers, a slowdown in the economies and sectors in which our clients operate, a slowdown in the business process outsourcing or information technology services sectors, our ability to develop and successfully execute our business strategies, the risks and uncertainties arising from our past and future acquisitions, 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, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, general economic conditions affecting our industry, political, economic or business conditions in countries in which we operate, including the withdrawal of the United Kingdom from the European Union, commonly known as Brexit, 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.

 Investors


Roger Sachs, CFA



+1 (203) 808-6725



[email protected]



 Media


Siya Belliappa

+1 (718) 561-9843

[email protected]

 

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

 (In thousands, except per share data and share count)

 




As of December 31, 2021


As of March 31, 2022

Assets





Current assets





Cash and cash equivalents


$                          899,458


$                                   861,760

Accounts receivable, net of allowance for credit losses of
$24,329 and $21,938 as of December 31, 2021 and March 31, 2022,
respectively


887,742


971,361

Prepaid expenses and other current assets


134,441


151,613

Total current assets


$                    1,921,641


$                          1,984,734






Property, plant and equipment, net


215,089


202,707

Operating lease right-of-use assets


270,603


253,568

Deferred tax assets


106,322


99,079

Intangible assets, net


169,635


154,149

Goodwill


1,731,027


1,722,012

Contract cost assets


238,794


234,772

Other assets, net of allowance for credit losses of $3,711 and $3,272
as of December 31, 2021 and March 31, 2022, respectively


322,158


320,250

Total assets


$                   4,975,269


$                            4,971,271






Liabilities and equity





Current liabilities





Short-term borrowings


$                                      —


$                                 250,000

Current portion of long-term debt


383,433


383,569

Accounts payable


24,984


21,098

Income taxes payable


47,353


53,212

Accrued expenses and other current liabilities


791,440


615,918

Operating leases liability


61,591


59,497

Total current liabilities


$                   1,308,801


$                           1,383,294






Long-term debt, less current portion


1,272,476


1,264,372

Operating leases liability


247,707


229,776

Deferred tax liabilities


3,942


3,613

Other liabilities


245,210


242,822

Total liabilities


$                   3,078,136


$                           3,123,877






Shareholders' equity





Preferred shares, $0.01 par value, 250,000,000 authorized, none issued



Common shares, $0.01 par value, 500,000,000 authorized, 185,336,357
and 185,072,415 issued and outstanding as of December 31, 2021 and
March 31, 2022, respectively


1,847


1,845

Additional paid-in capital


1,717,165


1,693,854

Retained earnings


732,474


729,503

Accumulated other comprehensive income (loss)


(554,353)


(577,808)

Total equity


$                    1,897,133


$                           1,847,394






Total liabilities and equity


$                   4,975,269


$                            4,971,271







 

GENPACT LIMITED AND ITS SUBSIDIARIES

 

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share data and share count)

 




Three months ended March 31,



2021


2022

Net revenues


$              946,071


$         1,068,443

Cost of revenue


600,928


685,962

Gross profit


$            345,143


$           382,481

Operating expenses:





Selling, general and administrative expenses


200,732


237,296

Amortization of acquired intangible assets


16,176


11,306

Other operating (income) expense, net


353


3

Income from operations


$            127,882


$           133,876

Foreign exchange gains (losses), net


3,293


4,303

Interest income (expense), net


(12,342)


(12,088)

Other income (expense), net


1,392


(409)

Income before income tax expense


$            120,225


$           125,682

Income tax expense


28,952


29,503

Net income


$              91,273


$              96,179

Earnings per common share





Basic


$                     0.48


$                     0.52

Diluted


$                     0.47


$                     0.51

Weighted average number of common shares used in computing earnings per
common share





Basic


188,650,112


185,637,776

Diluted


193,213,258


189,558,404

 

GENPACT LIMITED AND ITS SUBSIDIARIES

 

 Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 




Three Months ended March 31,



2021


2022

Operating activities





Net income


$                    91,273


$                    96,179

Adjustments to reconcile net income to net cash (used for)/ provided by operating activities:





Depreciation and amortization


28,953


24,847

Amortization of debt issuance costs


557


690

Amortization of acquired intangible assets


16,176


11,306

Write-down of intangible assets and property, plant and equipment


836


Allowance for credit losses


727


(463)

Unrealized gain on revaluation of foreign currency asset/liability


(3,127)


(4,599)

Stock-based compensation expense


17,430


15,250

Deferred tax expense


31


4,914

Others, net


201


19

Change in operating assets and liabilities:





Increase in accounts receivable


(6,385)


(83,548)

(Increase) decrease in prepaid expenses, other current assets, contract cost assets, operating lease
right-of-use assets and other assets


14,526


 

(4,120)

Increase (decrease) in accounts payable


7,700


(2,010)

Decrease in accrued expenses, other current liabilities, operating lease liabilities and other liabilities


(106,727)


(179,186)

Increase in income taxes payable


14,985


6,440

Net cash (used for)/provided by operating activities


$                      77,156


$               (114,281)

Investing activities





Purchase of property, plant and equipment


(12,010)


(16,744)

Payment for internally generated intangible assets (including intangibles under development)


(1,897)


(1,065)

Proceeds from sale of property, plant and equipment


681


43

Payment for business acquisitions, net of cash acquired


(5,309)


Net cash used for investing activities


$                 (18,535)


$                 (17,766)

Financing activities





Repayment of finance lease obligations


(3,037)


(2,292)

Payment of debt issuance costs


(1,893)


Proceeds from long-term debt


350,000


Repayment of long-term debt


(8,500)


(8,500)

Proceeds from short-term borrowings



250,000

Repayment of short-term borrowings


(250,000)


Proceeds from issuance of common shares under stock-based compensation plans


6,596


3,300

Payment for net settlement of stock-based awards


(28,721)


(41,889)

Dividend paid


(20,115)


(23,134)

Payment for stock repurchased and retired (including expenses related to stock repurchase)


(134,218)


(76,032)

Net cash (used for)/ provided by financing activities


$                (89,888)


$                101,453

Effect of exchange rate changes


(5,171)


(7,104)

Net decrease in cash and cash equivalents


(31,267)


(30,594)

Cash and cash equivalents at the beginning of the period


680,440


899,458

Cash and cash equivalents at the end of the period


$               644,002


$                861,760

Supplementary information





Cash paid during the period for interest


$                     4,086


$                     1,893

Cash paid during the period for income taxes, net of refund


$                    21,988


$                    28,580

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.

Prior to July 2012, Genpact's management used financial statements that excluded significant acquisition-related expenses, amortization of related acquired intangibles, and amortization of acquired intangibles recorded at the company's formation in 2004 for its internal management reporting, budgeting and decision-making purposes, including comparing Genpact's operating results to that of its competitors. However, considering 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. 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, losses and impairment charges attributable to equity-method investments 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 adjusted 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 ended March 31, 2021 and 2022:

 

Reconciliation of Net Income/Margin to Adjusted Income from Operations/Margin

(In thousands)

 



Three months ended March 31,



2021


2022

Net income


$                  91,273


$                  96,179

Foreign exchange (gains) losses, net


(3,293)


(4,303)

Interest (income) expense, net


12,342


12,088

Income tax expense


28,952


29,503

Stock-based compensation expense


17,430


15,250

Amortization and impairment of acquired intangible assets


15,952


11,302

Adjusted income from operations


$             162,656


$             160,019

Net income margin


9.6%


9.0%

Adjusted income from operations margin


17.2%


15.0%

               

 

Reconciliation of Income from Operations/Margin to Adjusted Income from Operations/Margin

(In thousands)

 



Three months ended March 31,



2021


2022

Income from operations


$               127,882


$               133,876

Stock-based compensation expense


17,430


15,250

Amortization and impairment of acquired intangible assets


15,952


11,302

Other income (expense), net


1,392


(409)

Adjusted income from operations


$             162,656


$             160,019

Income from operations margin


13.5%


12.5%

Adjusted income from operations margin


17.2%


15.0%


 

Reconciliation of Diluted EPS to Adjusted Diluted EPS[6]

(Per share data) 

 



Three months ended March 31,



2021


2022

Diluted EPS


$                    0.47


$                    0.51

Stock-based compensation expense


0.09


0.08

Amortization and impairment of acquired intangible assets


0.08


0.06

Tax impact on stock-based compensation expense


(0.03)


(0.03)

Tax impact on amortization and impairment of acquired intangible assets


(0.02)


(0.01)

Adjusted diluted EPS


$                    0.59


$                     0.60

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, 2022:

Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin[7]




Year ending December 31, 2022



Lower


Upper

Net income margin


9.4%


9.8%

Estimated foreign exchange (gains) losses, net


(0.1) %


(0.1) %

Estimated interest (income) expense, net


1.0%


1.0%

Estimated income tax expense


3.0%


3.1%

Estimated stock-based compensation expense


1.7%


1.6%

Estimated amortization of acquired intangible assets


1.0%


1.0%

Adjusted income from operations margin


16.0%


16.5%

 

Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from

Operations Margin7

 



Year ending December 31, 2022



Lower


Upper

Income from operations margin


13.3%


13.8%

Estimated stock-based compensation expense


1.7%


1.6%

Estimated amortization and impairment of acquired intangible assets


1.0%


1.0%

Estimated other income (expense), net


0.1%


0.1%

Adjusted income from operations margin


16.0%


16.5%

 

 

Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS7

(Per share data)

 



Year ending December 31, 2022



Lower


Upper

Diluted EPS


$                 2.14


$                2.30

Estimated stock-based compensation expense


0.39


0.39

Estimated amortization and impairment of acquired intangible assets


0.23


0.23

Estimated tax impact on stock-based compensation expense


(0.10)


(0.10)

Estimated tax impact on amortization and impairment of acquired intangible assets


(0.06)


(0.06)

Adjusted diluted EPS


$                2.60


$                2.76



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

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.



4

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.



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

Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.



7

Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.

Показать большеПоказать меньше

Источник www.prnewswire.com
Показать переводПоказать оригинал
Новость переведена автоматически
Установите Telegram-бота от сервиса Tradesense, чтобы моментально получать новости с официальных сайтов компаний
Установить Бота

Другие новости компании Genpact Limited



Новости переведены автоматически

Остальные 14 новостей будут доступны после Регистрации

Попробуйте все возможности сервиса Tradesense

Моментальные уведомления об измемении цен акций
Новости с официальных сайтов компаний
Отчётности компаний
События с FDA, SEC
Прогнозы аналитиков и банков
Регистрация в сервисе
Tradesense доступен на мобильных платформах