NEW YORK, May 10, 2021 /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, 2021.
"We had a strong start to the year, with first quarter revenue,
adjusted operating income margin, adjusted diluted EPS, and cash
flow all exceeding our expectations," said "Tiger" Tyagarajan,
Genpact's president and CEO. "The growing need of enterprises
to leverage digital technologies and cloud-based analytics is
creating a high demand for our solutions. These operations straddle
multiple functions and buying centers opening new parts of our
expanding addressable market. While I am pleased with the continued
momentum we are seeing across our business, our hearts, minds and
efforts are focused on supporting our teams in India and the
Philippines who are being hit very hard by
COVID-19 while ensuring continued services to our clients. We
appreciate the outpouring of support we have received from our
clients during this difficult time."
Key Financial Results – First Quarter 2021
- Total revenue was $946 million,
up 2.5% year-over-year (1% on a constant currency
basis).1
- Revenue from Global Clients was $853
million, up 6%2 year-over-year (5% on a constant
currency basis)1,2 representing 90% of total revenue,
including $9 million of revenue from
certain GE-divested businesses that is now included in Global
Client revenue. Excluding the revenue from such GE-divested
businesses, revenue from Global Clients increased 5% year over year
(4% on a constant currency basis)1.
- Revenue from GE was $93 million,
down 24% year-over-year, representing 10% of total revenue. This
excludes $9 million of revenue from
certain GE-divested businesses that is now included as Global
Client revenue. If the revenue from these GE-divested businesses
had been counted as GE revenue in the first quarter of 2021,
revenue from GE would have decreased 16% year-over-year.
- Net income was $91 million, up 7%
year-over-year, with a corresponding margin of 9.6%.
- Income from operations was $128
million, up 16% year-over-year, with a corresponding margin
of 13.5%. Adjusted income from operations was $163 million, up 20% year-over-year, with a
corresponding margin of 17.2%.4
- Diluted earnings per share was $0.47, up 7% year-over-year, and adjusted diluted
earnings per share3 was $0.59, up 11% year-over-year.
- Cash generated from operations was $77
million, compared to $19
million utilized in the first quarter of 2020.
- Genpact issued $350 million
principal amount of 1.75% senior unsecured notes due April 2026 during the quarter.
- Genpact repurchased approximately 3.3 million of its common
shares during the quarter for total consideration of approximately
$134 million at an average price per
share of $40.68.
Full Year 2021 Outlook
Genpact continues to expect:
- Total revenue for the full year of $3.93 to $3.99
billion, up 6.0% to 7.5%, or 5.0% to 6.5% on a constant
currency basis.1
- Adjusted income from operations margin5 of
approximately 16.0%.
Genpact now expects:
- Global Client revenue growth in the range of 9.0% to 11.0%, or
8.0% to 10.0% on a constant currency basis,1 increased
from the prior outlook of 8.0% to 10.0%, or 7.0% to 9.0% on a
constant currency basis,1 due to the revenue from
certain GE-divested businesses that is now classified as Global
Client revenue.
- Adjusted diluted EPS6 of $2.27 to $2.30,
increased from the prior outlook of $2.26 to $2.29.
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 10, 2021 to discuss the company's
performance for the first quarter ended March 31, 2021. 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, 5377446.
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.
About Genpact
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 90,000+ 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.
Safe Harbor
This press release contains certain statements concerning our
future growth prospects, including our outlook for 2021, 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 COVID-19 pandemic on our business, the
health and safety of our employees, clients, partners and
suppliers, as well as the physical and economic impacts of the
various recommendations, orders and protocols issued by local and
national governmental agencies in light of the evolving situation,
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, wage
increases, changes in tax rates and tax legislation and other laws
and regulations, our ability to attract and retain skilled
professionals, 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.
Contacts
Investors
|
|
Roger Sachs,
CFA
|
|
|
+1 (203)
808-6725
|
|
|
roger.sachs@genpact.com
|
|
|
|
Media
|
|
Michael
Schneider
|
|
|
+1 (217)
260-5041
|
|
|
michael.schneider@genpact.com
|
GENPACT LIMITED
AND ITS SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(Unaudited)
|
(In thousands,
except per share data and share count)
|
|
|
|
As of December 31,
2020
|
|
|
As of March
31,2021
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
680,440
|
|
|
$
|
644,002
|
Accounts receivable,
net of allowance for credit losses of $27,707 and $28,290 as of
December 31, 2020 and March 31, 2021, respectively
|
|
|
881,020
|
|
|
|
886,223
|
Prepaid expenses and
other current assets
|
|
|
187,408
|
|
|
|
181,405
|
Total current
assets
|
|
$
|
1,748,868
|
|
|
$
|
1,711,630
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
231,122
|
|
|
|
218,173
|
Operating lease
right-of-use assets
|
|
|
304,714
|
|
|
|
307,330
|
Deferred tax
assets
|
|
|
106,674
|
|
|
|
103,865
|
Intangible assets,
net
|
|
|
236,732
|
|
|
|
215,976
|
Goodwill
|
|
|
1,695,688
|
|
|
|
1,689,365
|
Contract cost
assets
|
|
|
225,897
|
|
|
|
233,004
|
Other assets, net of
allowance for credit losses of $3,134 and $2,593 as of December 31,
2020 and March 31, 2021, respectively
|
|
|
323,818
|
|
|
|
308,581
|
Total
assets
|
|
$
|
4,873,513
|
|
|
$
|
4,787,924
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
250,000
|
|
|
$
|
—
|
Current portion of
long-term debt
|
|
|
33,537
|
|
|
|
33,544
|
Accounts
payable
|
|
|
13,910
|
|
|
|
21,567
|
Income taxes
payable
|
|
|
41,941
|
|
|
|
56,494
|
Accrued expenses and
other current liabilities
|
|
|
806,769
|
|
|
|
675,098
|
Operating leases
liability
|
|
|
56,479
|
|
|
|
57,035
|
Total current
liabilities
|
|
$
|
1,202,636
|
|
|
$
|
843,738
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
1,307,371
|
|
|
|
1,646,230
|
Operating leases
liability
|
|
|
289,363
|
|
|
|
290,400
|
Deferred tax
liabilities
|
|
|
1,516
|
|
|
|
828
|
Other
liabilities
|
|
|
238,398
|
|
|
|
257,104
|
Total
liabilities
|
|
$
|
3,039,284
|
|
|
$
|
3,038,300
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
Preferred shares,
$0.01 par value, 250,000,000 authorized, none issued
|
|
|
—
|
|
|
|
—
|
Common shares, $0.01
par value, 500,000,000 authorized, 189,045,661 and 187,176,339
issued and outstanding as of December 31, 2020 and March 31, 2021,
respectively
|
|
|
1,885
|
|
|
|
1,867
|
Additional paid-in
capital
|
|
|
1,636,026
|
|
|
|
1,630,445
|
Retained
earnings
|
|
|
741,658
|
|
|
|
678,631
|
Accumulated other
comprehensive income (loss)
|
|
|
(545,340)
|
|
|
|
(561,319)
|
Total
equity
|
|
$
|
1,834,229
|
|
|
$
|
1,749,624
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
|
4,873,513
|
|
|
$
|
4,787,924
|
GENPACT LIMITED
AND ITS SUBSIDIARIES
|
Consolidated
Statements of Income
|
(Unaudited)
|
(In thousands,
except per share data and share count)
|
|
|
|
Three months ended
March 31,
|
|
|
2020
|
|
|
2021
|
Net
revenues
|
|
$
|
923,192
|
|
|
$
|
946,071
|
Cost of
revenue
|
|
|
604,771
|
|
|
|
600,928
|
Gross
profit
|
|
$
|
318,421
|
|
|
$
|
345,143
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
197,342
|
|
|
|
200,732
|
Amortization of
acquired intangible assets
|
|
|
10,741
|
|
|
|
16,176
|
Other operating
(income) expense, net
|
|
|
(320)
|
|
|
|
353
|
Income from
operations
|
|
$
|
110,658
|
|
|
$
|
127,882
|
Foreign exchange
gains (losses), net
|
|
|
14,531
|
|
|
|
3,293
|
Interest income
(expense), net
|
|
|
(11,696)
|
|
|
|
(12,342)
|
Other income
(expense), net
|
|
|
(2,934)
|
|
|
|
1,392
|
Income before
income tax expense
|
|
$
|
110,559
|
|
|
$
|
120,225
|
Income tax
expense
|
|
|
24,861
|
|
|
|
28,952
|
Net
income
|
|
$
|
85,698
|
|
|
$
|
91,273
|
Earnings per common
share
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.45
|
|
|
$
|
0.48
|
Diluted
|
|
$
|
0.44
|
|
|
$
|
0.47
|
Weighted average
number of common shares used in computing earnings per common
share
|
|
|
|
|
|
|
|
Basic
|
|
|
190,626,757
|
|
|
|
188,650,112
|
Diluted
|
|
|
196,532,513
|
|
|
|
193,213,258
|
GENPACT LIMITED
AND ITS SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
(In
thousands)
|
|
|
|
Three months ended
March 31,
|
|
|
2020
|
|
|
2021
|
Operating
activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
85,698
|
|
|
$
|
91,273
|
Adjustments to
reconcile net income to net cash (used for)/ provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
28,494
|
|
|
|
28,953
|
Amortization of debt
issuance costs
|
|
|
561
|
|
|
|
557
|
Amortization of
acquired intangible assets
|
|
|
10,741
|
|
|
|
16,176
|
Write-down of
intangible assets and property, plant and equipment
|
|
|
—
|
|
|
|
836
|
Allowance for credit
losses
|
|
|
2,156
|
|
|
|
727
|
Unrealized gain on
revaluation of foreign currency asset/liability
|
|
|
(9,655)
|
|
|
|
(3,127)
|
Stock-based
compensation expense
|
|
|
17,487
|
|
|
|
17,430
|
Deferred tax expense
(benefit)
|
|
|
(392)
|
|
|
|
31
|
Others,
net
|
|
|
(348)
|
|
|
|
201
|
Change in
operating assets and liabilities:
|
|
|
|
|
|
|
|
Increase in accounts
receivable
|
|
|
(3,858)
|
|
|
|
(6,385)
|
(Increase) decrease in
prepaid expenses, other current assets, contract cost assets,
operating lease right-of-use assets and other assets
|
|
|
(84,098)
|
|
|
|
14,526
|
Increase in accounts
payable
|
|
|
4,557
|
|
|
|
7,700
|
Decrease in accrued
expenses, other current liabilities, operating leases liabilities
and other liabilities
|
|
|
(74,788)
|
|
|
|
(106,727)
|
Increase in income
taxes payable
|
|
|
4,796
|
|
|
|
14,985
|
Net cash (used
for)/ provided by operating activities
|
|
$
|
(18,649)
|
|
|
$
|
77,156
|
Investing
activities
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
|
(20,956)
|
|
|
|
(12,010)
|
Payment for
internally generated intangible assets (including intangibles under
development)
|
|
|
(3,236)
|
|
|
|
(1,897)
|
Proceeds from sale of
property, plant and equipment
|
|
|
312
|
|
|
|
681
|
Payment for business
acquisitions, net of cash acquired
|
|
|
—
|
|
|
|
(5,309)
|
Net cash used for
investing activities
|
|
$
|
(23,880)
|
|
|
$
|
(18,535)
|
Financing
activities
|
|
|
|
|
|
|
|
Repayment of finance
lease obligations
|
|
|
(1,950)
|
|
|
|
(3,037)
|
Payment of debt
issuance costs
|
|
|
(620)
|
|
|
|
(1,893)
|
Proceed from
long-term debt
|
|
|
—
|
|
|
|
350,000
|
Repayment of
long-term debt
|
|
|
(8,500)
|
|
|
|
(8,500)
|
Proceeds from
short-term borrowings
|
|
|
125,000
|
|
|
|
—
|
Repayment of
short-term borrowings
|
|
|
(30,000)
|
|
|
|
(250,000)
|
Proceeds from
issuance of common shares under stock-based compensation
plans
|
|
|
4,063
|
|
|
|
6,596
|
Payment for net
settlement of stock-based awards
|
|
|
(26,238)
|
|
|
|
(28,721)
|
Dividend
paid
|
|
|
(18,543)
|
|
|
|
(20,115)
|
Payment for stock
repurchased and retired (including expenses related to stock
repurchase)
|
|
|
(45,021)
|
|
|
|
(134,218)
|
Net cash used for
financing activities
|
|
$
|
(1,809)
|
|
|
$
|
(89,888)
|
Effect of exchange
rate changes
|
|
|
(21,134)
|
|
|
|
(5,171)
|
Net decrease in cash
and cash equivalents
|
|
|
(44,338)
|
|
|
|
(31,267)
|
Cash and cash
equivalents at the beginning of the period
|
|
|
467,096
|
|
|
|
680,440
|
Cash and cash
equivalents at the end of the period
|
|
$
|
401,624
|
|
|
$
|
644,002
|
Supplementary
information
|
|
|
|
|
|
|
|
Cash paid during the
period for interest
|
|
$
|
5,295
|
|
|
$
|
4,086
|
Cash paid during the
period for income taxes, net of refund
|
|
$
|
69,357
|
|
|
$
|
21,988
|
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 restructuring 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,
2020 and 2021:
Reconciliation
of Net income/Margin to Adjusted Income from
Operations/Margin
|
(In
thousands)
|
|
|
|
Three months ended
March 31,
|
|
|
2020
|
|
|
2021
|
|
Net income
|
|
$
|
85,698
|
|
|
$
|
91,273
|
|
Foreign exchange
(gains) losses, net
|
|
|
(14,531)
|
|
|
|
(3,293)
|
|
Interest (income)
expense, net
|
|
|
11,696
|
|
|
|
12,342
|
|
Income tax
expense
|
|
|
24,861
|
|
|
|
28,952
|
|
Stock-based
compensation expense
|
|
|
17,487
|
|
|
|
17,430
|
|
Amortization and
impairment of acquired intangible assets
|
|
|
10,514
|
|
|
|
15,952
|
|
Adjusted income
from operations
|
|
$
|
135,725
|
|
|
$
|
162,656
|
|
Net income
margin
|
|
|
9.3
|
%
|
|
|
9.6
|
%
|
Adjusted income
from operations margin
|
|
|
14.7
|
%
|
|
|
17.2
|
%
|
Reconciliation of
Income from Operations/Margin to Adjusted Income from
Operations/Margin
|
(In
thousands)
|
|
|
|
Three months ended
March 31,
|
|
|
2020
|
|
|
2021
|
|
Income from
operations
|
|
$
|
110,658
|
|
|
$
|
127,882
|
|
Stock-based
compensation expense
|
|
|
17,487
|
|
|
|
17,430
|
|
Amortization and
impairment of acquired intangible assets
|
|
|
10,514
|
|
|
|
15,952
|
|
Other income
(expense), net
|
|
|
(2,934)
|
|
|
1,392
|
|
Adjusted income
from operations
|
|
$
|
135,725
|
|
|
$
|
162,656
|
|
Income from
operations margin
|
|
|
12.0
|
%
|
|
|
13.5
|
%
|
Adjusted income
from operations margin
|
|
|
14.7
|
%
|
|
|
17.2
|
%
|
Reconciliation of
Diluted EPS to Adjusted Diluted EPS7
|
(Per share
data)
|
|
|
|
Three months ended
March 31,
|
|
|
2020
|
|
|
2021
|
Diluted
EPS
|
|
$
|
0.44
|
|
|
$
|
0.47
|
Stock-based
compensation expense
|
|
|
0.09
|
|
|
|
0.09
|
Amortization and
impairment of acquired intangible assets
|
|
|
0.05
|
|
|
|
0.08
|
Tax impact on
stock-based compensation expense
|
|
|
(0.04)
|
|
|
|
(0.03)
|
Tax impact on
amortization and impairment of acquired intangible
assets
|
|
|
(0.01)
|
|
|
|
(0.02)
|
Adjusted diluted
EPS
|
|
$
|
0.53
|
|
|
$
|
0.59
|
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,
2021:
Reconciliation of
Outlook for Net income Margin to Adjusted Income from Operations
Margin8
|
|
|
|
Year ending
December 31, 2021
|
Net income
margin
|
|
|
8.7
|
%
|
Estimated foreign
exchange (gains) losses, net
|
|
|
(0.1)
|
%
|
Estimated interest
(income) expense, net
|
|
|
1.2
|
%
|
Estimated income tax
expense
|
|
|
2.8
|
%
|
Estimated stock-based
compensation expense
|
|
|
2.0
|
%
|
Estimated amortization
and impairment of acquired intangible assets
|
|
|
1.4
|
%
|
Adjusted income
from operations margin
|
|
|
16.0
|
%
|
Reconciliation of
Outlook for Income from Operations Margin to Adjusted Income from
Operations Margin8
|
|
|
|
Year ending
December 31, 2021
|
Income from
operations margin
|
|
|
12.5
|
%
|
Estimated stock-based
compensation expense
|
|
|
2.0
|
%
|
Estimated amortization
and impairment of acquired intangible assets
|
|
|
1.4
|
%
|
Estimated other income
(expense), net
|
|
|
0.1
|
%
|
Adjusted income
from operations margin
|
|
|
16.0
|
%
|
Reconciliation of
Outlook for Diluted EPS to Adjusted Diluted
EPS8
|
(Per share
data)
|
|
|
|
Year ending
December 31, 2021
|
|
|
Lower
|
|
|
Upper
|
Diluted
EPS
|
|
$
|
1.76
|
|
|
|
1.79
|
Estimated stock-based
compensation expense
|
|
|
0.41
|
|
|
|
0.41
|
Estimated amortization
and impairment of acquired intangible assets
|
|
|
0.30
|
|
|
|
0.30
|
Estimated tax impact
on stock-based compensation expense
|
|
|
(0.12)
|
|
|
|
(0.12)
|
Estimated tax impact
on amortization and impairment of acquired intangible
assets
|
|
|
(0.08)
|
|
|
|
(0.08)
|
Adjusted diluted
EPS
|
|
$
|
2.27
|
|
|
|
2.30
|
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
|
Global Client revenue
for the first quarter of 2021 includes revenue from certain
businesses divested by GE that we continue to serve as Global
Clients. Revenue from such businesses has been counted as Global
Client revenue beginning January 1, 2021.
|
3
|
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.
|
4
|
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.
|
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
|
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.
|
7
|
Due to rounding, the
numbers presented in this table may not add up precisely to the
totals provided.
|
8
|
Due to rounding, the
numbers presented in this table may not add up precisely to the
totals provided.
|
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SOURCE Genpact