Genpact (G) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $1.18 billion, up 6–6.4% year-over-year, with strong growth in Data-Tech-AI and Digital Operations.

• Net income was $122 million, up 4.9–5% year-over-year, with net income margin at 10.4%.

• Adjusted operating income margin was 16.9%, with AOI at $198–198.4 million, both up year-over-year.

• Management raised full-year 2024 revenue and EPS guidance following robust Q2 and H1 results.

• GenAI bookings in H1 2024 are up more than 10x versus all of 2023, with over 80 GenAI solutions in production.

Financial highlights

• Q2 revenue: $1.176–$1.18 billion, up 6–6.4% year-over-year; gross margin improved to 35.4%.

• Income from operations was $170 million (margin 14.5%); adjusted income from operations was $198–198.4 million (margin 16.9%).

• GAAP net income was $122 million, GAAP diluted EPS $0.67 (up 6%), adjusted diluted EPS $0.79 (up 10%).

• Cash from operations was $209 million in Q2, up from $171 million a year ago.

• Cash and equivalents at $914 million as of June 30, 2024, up $491 million year-over-year, mainly from bond issuance.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $4.656–$4.701 billion (4–5% growth); adjusted diluted EPS guidance increased to $3.14–$3.18.

• Q3 2024 revenue expected at $1.18–$1.186 billion, up 3.9–4.4% year-over-year.

• Gross margin expected at 35.3–35.4% and adjusted operating income margin at 17% for the year.

• Operating cash flow for the year anticipated at $525 million.

• Digital Operations and Data-Tech-AI revenue growth guidance for 2024 raised to 5.2% and 3.8% respectively.