Genpact Posts Strong Q4 Results, Accelerates Innovation with AI-Powered Solutions
Genpact Limited, a global leader in digital transformation and artificial intelligence (AI), reported strong fourth-quarter results for 2024, exceeding market expectations. The company's revenue reached $1.25 billion, a 9% year-over-year increase, driven by the growth of its Data-Tech-AI segment, which saw a 12% year-over-year uptick in revenue.
BK Kalra, President and CEO of Genpact, expressed satisfaction with the quarter's performance during the company's earnings call. "I am pleased to report another strong quarter with better-than-expected performance," he said. The Data-Tech-AI segment's accelerating revenue growth for the fourth quarter in a row is a significant highlight, demonstrating the company's success in harnessing the potential of AI.
Genpact's Digital Operations business also saw a 6% year-over-year increase in revenue, underscoring the company's ability to deliver strong performance across its various segments. The company's gross margin and adjusted operating income margin exceeded expectations in Q4, a testament to its commitment to operational efficiency even as it invests in growth initiatives.
For the full year 2024, Genpact reported revenue growth of approximately 6.5%, surpassing the midpoint of its initial guidance range by around 400 basis points. Operating cash flow grew 25% year-over-year, while adjusted diluted earnings per share (EPS) rose 10% year-over-year – a fourth consecutive year in which EPS growth outpaced revenue expansion.
As Genpact enters 2025, innovation takes center stage. The company has announced the general availability of its first Agentic solution for accounts payable, marking the beginning of a series of solutions powered by proprietary large language models (LLMs). This innovative approach leverages Genpact's deep industry expertise and highly detailed domain-specific knowledge to automate invoice extraction and deliver superior value at scale.
Furthermore, Genpact is accelerating its investments in Data, Tech, and AI with the launch of its AI Value Studio and the Genpact Gigafactory. The AI Value Studio helps businesses identify high-impact use cases and create custom road maps with seasoned Genpact AI architects. Meanwhile, the Genpact Gigafactory is a first-of-its-kind AI accelerator designed to help enterprises rapidly scale AI solutions from pilot to full-scale production.
The company's 3+1 Execution Framework, introduced in 2024, has become firmly embedded in its DNA. This framework enables Genpact to deliver operational efficiency while investing in growth initiatives, underlining the company's commitment to innovation and customer satisfaction.
Genpact's strong Q4 performance and strategic investments in AI-powered solutions position it for continued success in the rapidly evolving digital transformation landscape.
