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Dec 31, 2023

Genpact Q4 2023 Earnings Report

Genpact reported Q4 2023 results with revenue up 4% year-over-year and EPS up 231% year-over-year.

Key Takeaways

Genpact's Q4 2023 results showed a 4% increase in revenue year-over-year, reaching $1.15 billion. Net income saw a significant increase, driven by a non-recurring tax benefit. The company is implementing initiatives to improve execution in a challenging macroeconomic environment.

Total revenue was $1.15 billion, up 4% year-over-year.

Data-Tech-AI services revenue was $507 million, up 3% year-over-year.

Digital Operations services revenue was $639 million, up 5% year-over-year.

Diluted earnings per share was $1.59, up 231% year-over-year, including a non-recurring tax benefit of $170 million.

Total Revenue
$1.15B
Previous year: $1.1B
+3.9%
EPS
$0.82
Previous year: $0.7
+17.1%
Gross Profit
$408M
Previous year: $385M
+5.8%
Cash and Equivalents
$584M
Previous year: $647M
-9.8%
Free Cash Flow
$174M
Previous year: $214M
-18.9%
Total Assets
$4.81B
Previous year: $4.59B
+4.7%

Genpact

Genpact

Genpact Revenue by Segment

Forward Guidance

Genpact's outlook for the full year 2024 includes total revenue in the range of $4.57 billion to $4.61 billion, representing year-over-year growth of approximately 2% to 3%. Adjusted diluted EPS is expected to be in the range of $3.00 to $3.03.

Positive Outlook

  • Total revenue growth of approximately 2% to 3% as reported.
  • Digital Operations services revenue growth of approximately 3% year-over-year.
  • Data-Tech-AI services revenue growth of approximately 1.9% year-over-year at the midpoint of the range, as reported.
  • Gross margin of approximately 35%.
  • Adjusted income from operations margin of approximately 17%.

Challenges Ahead

  • Macroeconomic environment remains challenging.
  • First quarter 2024 total revenue growth of approximately 1.75% to 2.25% as reported.
  • First quarter 2024 Digital Operations services revenue growth of approximately 2.8% year-over-year.
  • First quarter 2024 Data-Tech-AI services revenue growth of approximately 1.0% year-over-year at the midpoint of the range, as reported.
  • First quarter 2024 gross margin of approximately 34.5%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income