NYSE$G

Genpact Limited · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Genpact's financial performance for Q2 2023 reflected revenue growth and increased profitability.

Genpact reported a 2% year-over-year increase in total revenue, reaching $1.106 billion. Diluted EPS increased by 66% to $0.63, while adjusted diluted EPS rose by 3% to $0.72. The company's strong bookings momentum is expected to drive top-line growth in 2024 and beyond.

  • Total revenue increased by 2% year-over-year to $1.106 billion.
  • Data-Tech-AI services revenue grew by 2% year-over-year to $501 million, representing 45% of total revenue.
  • Digital Operations services revenue increased by 1% year-over-year to $605 million, representing 55% of total revenue.
  • Diluted earnings per share increased by 66% year-over-year to $0.63, and adjusted diluted earnings per share increased by 3% year-over-year to $0.72.

Headline financials

Total Revenue

$1.11B

Previous: $1.09B+1.5%
EPS (adj)

$0.72

Previous: $0.70+2.9%
Operating Margin

14.2%

Previous: 10.1%+40.6%
Adj. Operating Margin

16.8%

Previous: 16.9%-0.6%
Capital Expenditures

-$24M

Previous: -$26.9M+10.8%
Free Cash Flow

$92.2M

Previous: $44.7M+106.2%
Net Income

$116M

Previous: $71.7M+62.2%
Operating Income

$157M

Previous: $110M+43.4%
Gross Profit

$390M

Previous: $375M+4.0%
Cash & Equivalents

$491M

Previous: $460M+6.7%
Total Assets

$4.48B

Previous: $4.54B-1.3%
Stock-Based Comp

$21.8M

Previous: $20.4M+6.8%

Revenue & EPS history

Genpact · Revenue · Quarterly

$1.11B

Q2 2023+1.5%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Genpact · $1.11B total across 2 segments · Q2 2023

  • Digital Operations
    $605M+1.0%
  • Data-Tech-AI
    $501M+0.0%

Forward guidance

Genpact now expects total revenue in the range of $4.59 billion to $4.64 billion, representing a 5.0% to 6.0% year-over-year increase. Adjusted diluted EPS is expected to be in the range of $2.91 to $2.94. The company continues to expect an adjusted income from operations margin of approximately 16.8%.

Tailwinds

  • Total revenue is expected to be in the range of $4.59 billion to $4.64 billion, up 5.0% to 6.0% year-over-year.
  • Revenue growth on a constant currency basis is expected to be 5.5% to 6.5% year-over-year.
  • Adjusted diluted EPS is expected to be in the range of $2.91 to $2.94.
  • Adjusted income from operations margin is expected to be approximately 16.8%.
  • Strong bookings momentum expected to drive top-line growth in 2024 and beyond.

Headwinds

  • Prior full-year outlook for total revenue was in the range of $4.64 billion to $4.71 billion, up 6.0% to 7.5% year-over-year.
  • Prior range for adjusted diluted EPS was $2.92 to $2.99.
  • General economic conditions may impact the company's performance.
  • Technological innovation, including AI, and the company's ability to adapt to industry developments could affect results.
  • Wage increases in locations in which the company operates may impact profitability.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.0%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.6%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+16.2%

Q2 2024

Best reaction

-16.2%

Q4 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%-14.6%-5.4%
Q4 2025+7.1%-1.4%+10.6%
Q3 2025+15.8%+18.6%+20.8%
Q1 2025-15.1%-11.8%-13.0%
Q4 2024+11.2%+11.1%+4.5%
Q3 2024+13.5%+15.3%+11.6%
Q2 2024+16.2%+16.4%+18.7%
Q1 2024+2.5%+5.2%+3.0%
Q4 2023+4.9%+0.8%-1.3%
Q3 2023-8.8%-7.6%-0.9%
Q2 2023+4.9%+3.2%+4.0%
Q1 2023-8.9%-6.6%-5.0%
Q4 2022+0.1%-0.2%-5.2%
Q3 2022-0.2%-2.5%-2.8%
Q2 2022-3.0%-2.2%-4.4%
Q1 2022-0.4%-0.1%+9.4%
Q4 2021-8.2%-7.4%-14.7%
Q3 2021-1.0%+0.8%-0.1%
Q2 2021+2.3%+3.3%+5.8%
Q1 2021-3.8%-5.3%-3.3%
Q4 2020+0.5%+0.1%+1.7%
Q3 2020+5.8%+13.5%+19.1%
Q2 2020+0.7%+1.0%-4.5%
Q1 2020-4.1%-8.3%+1.8%
Q4 2019-5.0%-6.0%-14.9%
Q3 2019-2.1%-1.1%+1.2%
Q2 2019+10.2%+8.6%+9.7%
Q1 2019+1.7%+0.8%+1.2%
Q4 2018+5.3%+4.9%+7.5%
Q3 2018+7.6%+10.2%+4.8%
Q2 2018-3.6%-2.9%-2.7%
Q1 2018-6.4%-4.4%-4.1%
Q4 2017-5.1%-1.1%-0.2%
Q3 2017+2.4%+2.4%+6.1%
Q2 2017+2.9%+1.1%-2.3%
Q1 2017+1.7%+3.7%+12.1%
Q4 2016-5.4%-5.1%-4.9%
Q3 2016+2.8%+3.1%+4.3%
Q2 2016-6.6%-7.7%-7.2%
Q1 2016-2.9%
Q4 2015+5.4%
Q3 2015+0.9%
Q2 2015+6.2%
Q1 2015+0.0%
Q4 2014+4.9%
Q3 2014+2.8%
Q2 2014-0.7%
Q1 2014-6.6%
Q4 2013-16.2%
Q3 2013-8.5%
Q2 2013-7.5%
Q1 2013+2.4%
Q4 2012+0.1%
Q3 2012-6.2%
Q2 2012+6.3%
Q1 2012-1.0%
Q4 2011+1.0%
Q3 2011-5.3%
Q4 2010-5.3%
Q2 2011-3.3%
Q1 2010+4.0%
Q1 2011+0.3%
Q4 2008-1.1%
Q3 2009-1.2%
Q3 2010-1.2%
Q4 2009+0.3%
Q2 2010+0.3%
Q2 2009+0.3%

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