Genpact (G) Q4 2023 earnings summary

Executive summary

• FY23 revenue rose 2% to $4.48B (3% constant currency); adjusted diluted EPS increased 9% to $2.98, while reported diluted EPS included a $170M one-time tax benefit.

• Management described a challenging macro environment and said 2024 priorities include improving execution, sharpening focus, and increasing speed and accountability.

• New bookings were approximately $4.9B, up 26% YoY.

Financial highlights

• FY23 net income was $631M, up 79% YoY, including a $170M non-recurring tax benefit; income from operations was $631M, up 26%.

• FY23 adjusted income from operations was $763M, up 6%, with a 17.0% margin; adjusted diluted EPS was $2.98, up 9%.

• Q4 revenue was $1.146B, up 4% YoY; net income was $291M, including the $170M tax benefit, and reported diluted EPS was $1.59.

• Q4 adjusted income from operations rose 9% to $203M, with a 17.7% margin; adjusted diluted EPS rose 17% to $0.82.

Outlook and guidance

• FY24 revenue guidance is $4.57B–$4.61B, implying 2%–3% reported growth or 2.1%–3.1% constant-currency growth.

• FY24 guidance includes gross margin of ~35%, adjusted operating margin of ~17%, and adjusted diluted EPS of $3.00–$3.03.

• At the FY24 midpoint, reported segment growth guidance is ~3% for Digital Operations and ~1.9% for Data-Tech-AI; constant-currency growth is ~3.1% and ~2.1%, respectively.

• Q1 2024 revenue guidance is $1.108B–$1.114B, with reported growth of 1.75%–2.25% or constant-currency growth of 1.95%–2.45%.

• Q1 guidance includes gross margin of ~34.5%, adjusted operating margin of ~16%, and constant-currency segment growth of ~3.0% for Digital Operations and ~1.3% for Data-Tech-AI.