Technology
Genpact Reports Second Quarter 2024 Results
Published
2 years agoon
By
Total Revenue of $1.18 billion, Up 6% (7% constant currency)1
Diluted EPS of $0.67, Up 6%; Adjusted Diluted EPS2 of $0.79, Up 10%
NEW YORK, Aug. 8, 2024 /PRNewswire/ — Genpact Limited (NYSE: G), a global professional services and solutions firm delivering outcomes that shape the future, today announced financial results for the second quarter ended June 30, 2024.
“Following another quarter of better-than-expected results and a robust first half performance, we are raising our earnings expectations for the year,” said Balkrishan “BK” Kalra, Genpact’s President and CEO. “Our second quarter results are a testament to the team’s ability to successfully deliver on our ‘3+1 Execution Framework’. Looking ahead, we will continue to drive execution and lean into innovation, leveraging gen AI and other advanced technologies to deliver superior value for clients and drive productivity for Genpact.”
Key Financial Highlights – Second Quarter 2024
Total revenue was $1.18 billion, up 6% year-over-year on an as reported basis and 7% on a constant currency basis.1Data-Tech-AI revenue was $546 million, up 4% year-over-year, both on an as reported and constant currency basis,1 representing 46% of total revenue.3Digital Operations revenue was $630 million, up 9% year-over-year, both on an as reported and constant currency basis,1 representing 54% of total revenue.3Gross profit was $416 million, up 7% year-over-year, with a corresponding margin of 35.4%.Net income was $122 million, up 5% year-over-year, with a corresponding margin of 10.4%.Income from operations was $170 million, up 8% year-over-year, with a corresponding margin of 14.5%.Adjusted income from operations was $198 million, up 7% year-over-year, with a corresponding margin of 16.9%.4,5Diluted earnings per share was $0.67, up 6% year-over-year.Adjusted diluted earnings per share2,4 was $0.79, up 10% year-over-year.Cash flow from operations was $209 million, up from $171 million in the second quarter of 2023.Genpact repurchased approximately 1.9 million common shares during the quarter for total consideration of approximately $63 million at an average price per share of $32.63.
_________________________________
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 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.
3 Genpact updated the classification of certain service revenues from Digital Operations to Data-Tech-AI in the quarter ended March 31, 2024 to more accurately reflect the nature of, and mode of delivery for, the services provided, which have evolved over time. As a result, the revenue from Digital Operations and Data-Tech-AI for the second quarter of 2023 originally reported was $605 million and $501 million, respectively, which is $581 million and $525 million, respectively, in accordance with the updated classification.
4 Income from operations and diluted earnings per share in the second quarter of 2023 include a $5 million gain on the termination of a lease which was impaired as part of the restructuring charge taken in the second quarter of 2022. This gain is therefore excluded from adjusted income from operations and adjusted diluted earnings per share in the second quarter of 2023.
5 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.
Outlook
Genpact’s outlook for the third quarter of 2024 is as follows:
Total revenue in the range of $1.180 billion to $1.186 billion, representing year-over-year growth of approximately 3.9% to 4.4% as reported, or 4.2% to 4.7% on a constant currency basis.1Digital Operations revenue growth of approximately 3.8% year-over-year and Data-Tech-AI revenue growth of approximately 4.6% year-over-year at the midpoint of the range, as reported.Digital Operations revenue growth of approximately 4.2% year-over-year and Data-Tech-AI revenue growth of approximately 4.7% year-over-year at the midpoint of the range, on a constant currency basis.1Gross margin of approximately 35.4%.Adjusted income from operations margin6 of approximately 17.2%.
Genpact’s updated outlook for the full year 2024 is as follows:
Total revenue in the range of $4.656 billion to $4.701 billion, representing year-over-year growth of approximately 4.0% to 5.0% as reported, or 4.2% to 5.2% on a constant currency basis,1 up from the prior guidance of approximately 2.5% to 3.5% as reported.Digital Operations revenue growth of approximately 5.2% year-over-year and Data-Tech-AI revenue growth of approximately 3.8% year-over-year at the midpoint of the range, as reported, up from the previous midpoints of 3.6% and 2.3%, respectively.Digital Operations revenue growth of approximately 5.5% year-over-year and Data-Tech-AI revenue growth of approximately 3.9% year-over-year at the midpoint of the range, on a constant currency basis,1 up from the previous midpoints of 4.0% and 2.4%, respectively.Gross margin of approximately 35.3%.Adjusted income from operations margin6 of approximately 17.0%.Adjusted diluted EPS7 in the range of $3.14 to $3.18, up from the prior range of $3.01 to $3.04.
Second Quarter 2024 Earnings Call
Genpact’s management will host a conference call on August 8, 2024, at 5:00PM ET to discuss the company’s performance for the second quarter ended June 30, 2024. Participants are encouraged to register here to receive a dial-in number and unique PIN for seamless access. It is recommended to join 10 minutes before the call starts, although registration and dial-in will be available at any time. A live webcast will be available on the Genpact Investor Relations website. For those unable to attend the live call, an archived replay and transcript will be available on the website shortly after the call.
______________________________
6 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.
7 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.
About Genpact
Genpact (NYSE: G) is a global professional services and solutions firm delivering outcomes that shape the future. Our 125,000+ people across 30+ countries are driven by our innate curiosity, entrepreneurial agility, and desire to create lasting value for clients. Powered by our purpose – the relentless pursuit of a world that works better for people – we serve and transform leading enterprises, including the Fortune Global 500, with our deep business and industry knowledge, digital operations services, and expertise in data, technology, and AI.
Safe Harbor
This press release contains certain statements concerning our future growth prospects, including our outlook for 2024, 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 macroeconomic uncertainty and general economic conditions, any deterioration in the global economic environment and its impact on our clients, our ability to manage our CEO transition and retain senior management, technological innovation, including AI technology and future uses of generative AI and large language models, and our ability to invest in new technologies and adapt to industry developments at sufficient speed and scale, our ability to develop and successfully execute our business strategies, our ability to effectively price our services and maintain pricing and employee utilization rates, general inflationary pressures and our ability to share increased costs with our clients, wage increases in locations in which we have operations, our ability to attract and retain skilled professionals, our ability to protect our and our clients’ data from security incidents or cyberattacks, the economic and other impacts of geopolitical conflicts and any related sanctions and other measures that have been or may be implemented or imposed in response thereto, as well as any potential expansion or escalation of existing conflicts or economic disruption beyond their current scope, a slowdown in the economies and sectors in which our clients operate, a slowdown in the sectors in which we operate, the risks and uncertainties arising from our past and future acquisitions or divestitures, our ability to convert bookings to revenues, our ability to manage growth, factors which may impact our cost advantage, changes in tax rates and tax legislation and other laws and regulations, our ability to effectively execute our tax planning strategies, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, political, economic or business conditions in countries in which we operate, 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
Tyra Whelton
+1 (908) 418-2995
Media
Siya Belliappa
+1 (718) 561-9843
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data and share count)
As of December 31,
2023
As of June 30, 2024
Assets
Current assets
Cash and cash equivalents
$ 583,670
$ 914,171
Accounts receivable, net of allowance for credit losses of $18,278
and $16,833 as of December 31, 2023 and June 30, 2024,
respectively
1,116,273
1,159,787
Prepaid expenses and other current assets
191,566
192,123
Total current assets
$ 1,891,509
$ 2,266,081
Property, plant and equipment, net
189,803
199,533
Operating lease right-of-use assets
186,167
194,624
Deferred tax assets
298,921
276,981
Intangible assets, net
53,028
39,841
Goodwill
1,683,782
1,677,866
Contract cost assets
202,543
203,402
Other assets, net of allowance for credit losses of $4,096 and $5,512 as of
December 31, 2023 and June 30, 2024, respectively
299,960
319,937
Total assets
$ 4,805,713
$ 5,178,265
Liabilities and equity
Current liabilities
Short-term borrowings
$ 10,000
$ —
Current portion of long-term debt
432,242
425,918
Accounts payable
27,739
28,430
Income taxes payable
38,458
43,779
Accrued expenses and other current liabilities
759,180
653,676
Operating leases liability
50,313
45,879
Total current liabilities
$ 1,317,932
$ 1,197,682
Long-term debt, less current portion
824,720
1,207,610
Operating leases liability
168,015
175,693
Deferred tax liabilities
11,706
10,118
Other liabilities
234,948
249,403
Total liabilities
$ 2,557,321
$ 2,840,506
Shareholders’ equity
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued
—
—
Common shares, $0.01 par value, 500,000,000 authorized, 179,494,132
and 178,177,581 issued and outstanding as of December 31, 2023 and
June 30, 2024, respectively
1,789
1,776
Additional paid-in capital
1,883,944
1,900,015
Retained earnings
1,085,209
1,176,459
Accumulated other comprehensive income (loss)
(722,550)
(740,491)
Total equity
$ 2,248,392
$ 2,337,759
Total liabilities and equity
$ 4,805,713
$ 5,178,265
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data and share count)
Three months ended June 30,
Six months ended June 30,
2023
2024
2023
2024
Net revenues
$ 1,105,524
$ 1,176,212
$ 2,194,843
$ 2,307,449
Cost of revenue
715,484
759,834
1,434,562
1,494,593
Gross profit
$ 390,040
$ 416,378
$ 760,281
$ 812,856
Operating expenses:
Selling, general and administrative expenses
229,426
239,642
445,911
474,673
Amortization of acquired intangible assets
8,257
6,558
16,512
13,485
Other operating (income) expense, net
(4,963)
(73)
(4,574)
(5,539)
Income from operations
$ 157,320
$ 170,251
$ 302,432
$ 330,237
Foreign exchange gains (losses), net
1,763
2,454
723
3,291
Interest income (expense), net
(12,138)
(13,538)
(21,765)
(23,780)
Other income (expense), net
3,425
3,250
7,455
9,037
Income before income tax expense
$ 150,370
$ 162,417
$ 288,845
$ 318,785
Income tax expense
34,118
40,427
66,492
79,848
Net income
$ 116,252
$ 121,990
$ 222,353
$ 238,937
Earnings per common share
Basic
$ 0.63
$ 0.68
$ 1.21
$ 1.33
Diluted
$ 0.63
$ 0.67
$ 1.19
$ 1.32
Weighted average number of common shares used in
computing earnings per common share
Basic
183,230,252
179,651,702
183,512,828
180,034,120
Diluted
185,825,117
180,912,267
186,705,697
181,424,912
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Six months ended June 30,
2023
2024
Operating activities
Net income
$ 222,353
$ 238,937
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
36,845
34,542
Amortization of debt issuance costs
978
1,037
Amortization of acquired intangible assets
16,512
13,485
Loss on the sale of the business classified as held for sale
802
—
Allowance for credit losses
6,521
12,638
Unrealized gain on revaluation of foreign currency assets/liabilities
(2,249)
(7,214)
Stock-based compensation expense
41,536
27,550
Deferred tax (benefit) expense
(2,957)
15,873
Others, net
1,147
173
Change in operating assets and liabilities:
Increase in accounts receivable
(26,891)
(54,326)
Increase in prepaid expenses, other current assets, contract cost assets, operating lease right-of-use
assets and other assets
(62,006)
(22,823)
Increase in accounts payable
5,742
997
Decrease in accrued expenses, other current liabilities, operating lease liabilities and other liabilities
(150,087)
(82,850)
Increase in income taxes payable
49,136
5,694
Net cash provided by operating activities
$ 137,382
$ 183,713
Investing activities
Purchase of property, plant and equipment
(24,033)
(43,276)
Payment for internally generated intangible assets (including intangibles under development)
(1,705)
(1,260)
Proceeds from sale of property, plant and equipment
17
116
Payment for business acquisitions, net of cash acquired
(682)
—
Payment for divestiture of business
(19,510)
—
Net cash used for investing activities
$ (45,913)
$ (44,420)
Financing activities
Repayment of finance lease obligations
(6,856)
(5,569)
Payment of debt issuance and refinancing costs
—
(3,305)
Proceeds of long-term debt
—
400,000
Repayment of long-term debt
(13,250)
(19,875)
Proceeds from short-term borrowings
148,000
50,000
Repayment of short-term borrowings
(196,000)
(60,000)
Proceeds from issuance of common shares under stock-based compensation plans
31,928
9,720
Payment for net settlement of stock-based awards
(18,317)
(21,142)
Payment of earn-out consideration
(2,399)
—
Dividend paid
(50,286)
(54,829)
Payment for stock repurchased and retired (including expenses related to stock repurchase)
(150,548)
(92,686)
Net cash (used for) provided by financing activities
$ (257,728)
$ 202,314
Net (decrease) increase in cash and cash equivalents
(166,259)
341,607
Effect of exchange rate changes
10,802
(11,106)
Cash and cash equivalents at the beginning of the period
646,765
583,670
Cash and cash equivalents at the end of the period
$ 491,308
$ 914,171
Supplementary information
Cash paid during the period for interest
$ 22,550
$ 30,625
Cash paid during the period for income taxes, net of refund
$ 66,819
$ 45,883
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; andRevenue 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.
Given 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.
During the second quarter of 2022, Genpact approved a plan to divest a business that was no longer deemed strategic. Given the specialized nature of this business, we anticipated completing a transaction within twelve months after the end of the second quarter of 2022, and therefore, we classified the revenues and expenses related to this business as held for sale with effect from April 1, 2022. During the first quarter of 2023, the Company consummated this transaction and recorded a loss on the sale of the business. During the second quarter of 2023, the Company terminated a lease for office property which was fully impaired as part of a restructuring in the second quarter of 2022 and recorded a gain on such lease termination as restructuring income in the second quarter of 2023. Genpact’s management believes that excluding the loss on the sale of, and the revenues and expenses associated with, the business previously designated as held for sale and the gain on the lease termination in calculating its non-GAAP financial measures provides useful information to both management and investors regarding the Company’s financial performance and underlying business trends. 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 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 stock-based compensation expense, amortization and impairment of acquired intangible assets, acquisition-related 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 and six months ended June 30, 2023 and 2024:
Reconciliation of Net Income/Margin to Adjusted Income from Operations/Margin
(In thousands)
Three months ended June 30,
Six months ended June 30,
2023
2024
2023
2024
Net income
$ 116,252
$ 121,990
$ 222,353
$ 238,937
Foreign exchange (gains) losses, net
(1,763)
(2,454)
(723)
(3,291)
Interest (income) expense, net
12,138
13,538
21,765
23,780
Income tax expense
34,118
40,427
66,492
79,848
Stock-based compensation expense
21,832
18,369
41,536
27,550
Amortization and impairment of acquired intangible assets
8,257
6,544
16,400
13,469
Restructuring (income) expense
(4,874)
—
(4,874)
—
Operating loss from the business classified as held for sale
—
—
1,201
—
Loss on the sale of the business classified as held for sale
—
—
802
—
Adjusted income from operations
$ 185,960
$ 198,414
$ 364,952
$ 380,293
Net income margin
10.5 %
10.4 %
10.1 %
10.4 %
Adjusted income from operations margin
16.8 %
16.9 %
16.6 %
16.5 %
Reconciliation of Income from Operations/Margin to Adjusted Income from Operations/Margin
(In thousands)
Three months ended June 30,
Six months ended June 30,
2023
2024
2023
2024
Income from operations
$ 157,320
$ 170,251
$ 302,432
$ 330,237
Stock-based compensation expense
21,832
18,369
41,536
27,550
Amortization and impairment of acquired intangible assets
8,257
6,544
16,400
13,469
Other income (expense), net
3,425
3,250
7,455
9,037
Restructuring (income) expense
(4,874)
—
(4,874)
—
Operating loss from the business classified as held for sale
—
—
1,201
—
Loss on the sale of the business classified as held for sale
—
—
802
—
Adjusted income from operations
$ 185,960
$ 198,414
$ 364,952
$ 380,293
Income from operations margin
14.2 %
14.5 %
13.8 %
14.3 %
Adjusted income from operations margin
16.8 %
16.9 %
16.6 %
16.5 %
Reconciliation of Diluted EPS to Adjusted Diluted EPS8
(Per share data)
Three months ended June 30,
Six months ended June 30,
2023
2024
2023
2024
Diluted EPS
$ 0.63
$ 0.67
$ 1.19
$ 1.32
Stock-based compensation expense
0.12
0.10
0.22
0.15
Amortization and impairment of acquired intangible assets
0.04
0.04
0.09
0.07
Restructuring (income) expense
(0.03)
—
(0.03)
—
Operating loss from the business classified as held for sale
—
—
0.01
—
Loss on the sale of the business classified as held for sale
—
—
0.00
—
Tax impact on stock-based compensation expense
(0.03)
(0.02)
(0.07)
(0.01)
Tax impact on amortization and impairment of acquired intangible assets
(0.01)
(0.01)
(0.02)
(0.02)
Tax impact on restructuring income (expense)
0.01
—
0.01
—
Tax impact on operating loss from the business classified as held for sale
—
—
(0.00)
—
Tax impact on loss on the sale of the business classified as held for sale
—
—
(0.00)
—
Adjusted diluted EPS
$ 0.72
$ 0.79
$ 1.40
$ 1.51
___________________________________
8 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.
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, 2024:
Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin9
Year ending December 31, 2024
Net income margin
10.4 %
Estimated interest (income) expense, net
1.2 %
Estimated income tax expense
3.4 %
Foreign exchange (gains)/losses
(0.1) %
Estimated stock-based compensation expense
1.5 %
Estimated amortization and impairment of acquired intangible assets
0.6 %
Adjusted income from operations margin
17.0 %
Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from
Operations Margin9
Year ending December 31, 2024
Income from operations margin
14.6 %
Estimated stock-based compensation expense
1.5 %
Estimated amortization and impairment of acquired intangible assets
0.6 %
Estimated other income (expense), net
0.3 %
Adjusted income from operations margin
17.0 %
Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS9
(Per share data)
Year ending December 31, 2024
Lower
Upper
Diluted EPS
$ 2.69
$ 2.72
Estimated stock-based compensation expense
0.40
0.40
Estimated amortization and impairment of acquired intangible assets
0.15
0.15
Estimated tax impact on stock-based compensation expense
(0.06)
(0.06)
Estimated tax impact on amortization and impairment of acquired intangible assets
(0.04)
(0.04)
Adjusted diluted EPS
$ 3.14
$ 3.18
____________________________
9 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.
The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the quarter ending September 30, 2024:
Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin10
Quarter ending September 30, 2024
Net income margin
9.9 %
Estimated interest (income) expense, net
1.3 %
Estimated income tax expense
3.4 %
Estimated stock-based compensation expense
2.0 %
Estimated amortization and impairment of acquired intangible assets
0.5 %
Adjusted income from operations margin
17.2 %
Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from
Operations Margin10
Quarter ending September 30, 2024
Income from operations margin
14.3 %
Estimated stock-based compensation expense
2.0 %
Estimated amortization and impairment of acquired intangible assets
0.5 %
Estimated other income (expense), net
0.3 %
Adjusted income from operations margin
17.2 %
_________________________________
10 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.
View original content to download multimedia:https://www.prnewswire.com/news-releases/genpact-reports-second-quarter-2024-results-302218333.html
SOURCE Genpact
You may like
Technology
BTQ Technologies’ QSSN Selected as Core Security Infrastructure for South Korea’s First Bank-Led KRW Stablecoin Proof-of-Concept
Published
6 hours agoon
May 6, 2026By
BTQ provides strategic advisory support and QSSN as core PQC security infrastructure for the iM Bank initiative on the Kaia mainnet, advancing post-quantum migration across global financial infrastructure
BTQ has been selected as the core post-quantum cryptography security technology provider for South Korea’s first bank-led KRW stablecoin proof-of-concept, delivering its Quantum Secure Stablecoin Settlement Network (“QSSN”) for the initiative.
BTQ is providing strategic advisory support and helping coordinate implementation across the partnership with iM Bank and Finger, supporting the integration of post-quantum protections into regulated digital money infrastructure.
Built on the Kaia mainnet, the proof-of-concept is connected to the blockchain ecosystems originally developed by Kakao and LINE, linking the initiative to two of the largest messaging and digital platform ecosystems in Korea and Japan.
VANCOUVER, BC, May 6, 2026 /PRNewswire/ – BTQ Technologies Corp. (“BTQ” or the “Company”) (Nasdaq: BTQ) (CBOE CA: BTQ), a global quantum technology company focused on securing mission-critical networks, today announced that it it has been selected as the core PQC security technology provider through its Quantum Secure Stablecoin Settlement Network (“QSSN”) in a proof-of-concept with its Korean strategic partner, Finger Inc. (“Finger”), and iM Bank, a leading Korean commercial bank, for South Korea’s first bank-led Korean won stablecoin infrastructure incorporating post-quantum cryptography (“PQC”).
The proof-of-concept represents more than a technical pilot. It marks an important step in bringing next-generation quantum security into banking infrastructure within Korea’s regulated financial system. In addition to providing QSSN as the core PQC security framework, BTQ is contributing consulting and strategic coordination across the three-way partnership, helping align the project’s security architecture, implementation approach, and long-term post-quantum migration objectives.
“Post-quantum migration requires more than a cryptographic upgrade. It requires coordination across infrastructure, implementation, and institutional stakeholders,” said Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies. “In this initiative, BTQ is providing both strategic advisory support and QSSN as the post-quantum security architecture, while helping lead coordination across the three-way partnership. We believe this proof-of-concept demonstrates how financial institutions can begin integrating quantum-resilient protections into digital money systems in a practical and operationally viable way.”
South Korea’s First Bank-Led PQC Stablecoin Infrastructure Initiative
BTQ is working alongside iM Bank and Finger on a three-way initiative to validate the issuance and distribution infrastructure for a Korean won stablecoin. In addition to supplying QSSN as the PQC security layer, BTQ is providing consulting support and helping to guide coordination across the partnership as the parties evaluate how to integrate post-quantum protections into bank-led digital asset infrastructure.
The proof-of-concept will validate several key components, including real-time reconciliation between bank reserves and blockchain-issued supply, a global-standard smart contract architecture, connectivity to global infrastructure for overseas distribution, and the integration of a PQC-based dual-signature security structure. By applying BTQ’s PQC signature architecture alongside the existing ECDSA cryptographic framework, the system is designed to preserve operational continuity for financial institutions while proactively addressing future quantum computing threats.
Built on Kaia Mainnet
A notable feature of the proof-of-concept is that it will be implemented on the Kaia mainnet, one of Korea’s leading Layer 1 blockchain networks. Kaia was created through the merger of Klaytn, the blockchain originally developed by Kakao, and Finschia, the blockchain associated with LINE. Kakao and LINE sit at the center of two of the largest messaging and digital platform ecosystems in Korea and Japan, respectively, making Kaia a significant piece of regional digital infrastructure.
Klaytn previously participated in the Bank of Korea’s CBDC pilot ecosystem, and the Bank of Korea has continued to advance CBDC testing through initiatives such as Project Hangang.
By combining BTQ’s PQC technology with blockchain infrastructure tied to the Kakao and LINE ecosystems, the proof-of-concept is intended to establish a model that aligns institutional-grade security, blockchain scalability, and evolving regulatory requirements for digital money infrastructure.
QSSN as the Security Layer
The PQC security foundation for the initiative is BTQ’s Quantum Secure Stablecoin Settlement Network, or QSSN, a quantum-secure network architecture designed for stablecoin, tokenized deposit, payment, and digital asset infrastructure. QSSN is designed to protect critical issuer functions, including stablecoin issuance, burning, transfer authority, upgrade control, and administrative permissions, by integrating PQC-based signatures while maintaining existing user experience and operational workflows.
BTQ has previously announced that QSSN was highlighted in the U.S. Post-Quantum Financial Infrastructure Framework (“PQFIF”) as a model architecture for post-quantum digital money infrastructure. The Company has also positioned QSSN as a standards-oriented initiative advanced through QuINSA and aligned with emerging post-quantum financial infrastructure requirements.
Addressing the Harvest-Now, Decrypt-Later Risk
The timing of the proof-of-concept reflects the growing urgency surrounding the “Harvest-Now, Decrypt-Later” risk, in which attackers may collect encrypted financial data today and decrypt it later once sufficiently advanced quantum capabilities emerge. Global institutions are already accelerating post-quantum migration. The U.S. National Institute of Standards and Technology (“NIST”) has finalized its first set of post-quantum cryptography standards, including ML-DSA, ML-KEM, and SLH-DSA, while major technology companies and financial institutions continue to define their own post-quantum transition timelines.
BTQ’s QSSN addresses this challenge through a dual-signature design that allows existing ECDSA-based infrastructure to operate in parallel with NIST-aligned PQC signatures such as ML-DSA. This approach enables banks and payment infrastructure providers to begin a phased transition toward quantum-safe security without disrupting existing systems.
Expanding BTQ’s Korean Ecosystem
BTQ continues to expand its Korean ecosystem across digital assets, payments, banking infrastructure, and hardware-based security. In October 2025, BTQ announced that Finger had joined Danal as an early participant in BTQ’s QSSN pilot program, with the initiative expected to progress from proof-of-concept toward commercialization under QuINSA-aligned guidelines and broader industry frameworks such as PQFIF.
The commencement of the iM Bank proof-of-concept represents an important commercial signal for BTQ, indicating that demand for post-quantum migration among Korean financial institutions is beginning to move from policy discussion toward infrastructure-level implementation. As Korea advances both quantum technology policy and stablecoin-related regulatory discussions, BTQ believes QSSN is well positioned at the intersection of regulated finance, digital asset infrastructure, and post-quantum security.
About iM Bank
iM Bank is a South Korean commercial bank and a subsidiary of DGB Financial Group. Headquartered in Daegu, iM Bank presents itself as a financial companion for customers and traces its roots to Daegu Bank, which was established in 1967 as Korea’s first regional bank. For more information, please visit https://www.imbank.co.kr/
About Finger Inc. Group
Finger supplies and develops financial IT solutions to provide optimized money management strategies for employees and corporate customers. Providing “Smartphone Financial Services”, “Corporate Cash Management Services” for businesses, “Private Wealth Management Services” for private consumers.
Since the year 2000, Finger has accumulated a number of awards and patents regarding its businesses. Based on its Mobile Enterprise Application Platform(MEAP) Orchestra and its funds management system using screen-scrapping technologies, Finger was the first company in Korea to deliver a smartphone banking banking-service. For more information, please visit http://www.finger.co.kr/
About BTQ
BTQ Technologies Corp. (Nasdaq: BTQ | Cboe CA: BTQ) is a quantum technology company focused on accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio and deep technical expertise, BTQ is advancing a full-stack, neutral-atom quantum computing platform spanning hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.
Connect with BTQ: Website | LinkedIn | X/Twitter
ON BEHALF OF THE BOARD OF DIRECTORS
Olivier Roussy Newton
CEO, Chairman
Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as “anticipate”, “intend”, “expect”, “plan” or “may” and the variations of these words are intended to identify forward-looking statements and information.
The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.
Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company’s research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
View original content to download multimedia:https://www.prnewswire.com/news-releases/btq-technologies-qssn-selected-as-core-security-infrastructure-for-south-koreas-first-bank-led-krw-stablecoin-proof-of-concept-302763840.html
SOURCE BTQ Technologies Corp.
Technology
Zimmer Biomet to Present at the BofA Securities 2026 Health Care Conference
Published
6 hours agoon
May 6, 2026By
WARSAW, Ind., May 6, 2026 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that members of the Zimmer Biomet management team will participate in the Bank of America Securities Health Care Conference on Wednesday, May 13, 2026, with a fireside chat at 8:40 a.m. PT (11:40 a.m. ET).
A live audio webcast can be accessed via Zimmer Biomet’s Investor Relations website at https://investor.zimmerbiomet.com. It will be available for replay following the fireside chat.
About Zimmer Biomet
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.
With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation.
For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X at www.x.com/zimmerbiomet.
Contacts:
Media
Investors
Troy Kirkpatrick
David DeMartino
614-284-1926
646-531-6115
troy.kirkpatrick@zimmerbiomet.com
david.demartino@zimmerbiomet.com
Kirsten Fallon
Zach Weiner
781-779-5561
908-591-6955
View original content to download multimedia:https://www.prnewswire.com/news-releases/zimmer-biomet-to-present-at-the-bofa-securities-2026-health-care-conference-302763299.html
SOURCE Zimmer Biomet Holdings, Inc.
Technology
NextLadder Ventures Announces Co-Founder Leadership Team, Investment Focus Areas For Over $1 Billion Initiative Empowering Americans with Personalized, Tech-Enabled Support Tools
Published
6 hours agoon
May 6, 2026By
New senior hires from Google and The Collaborative Fund to lead product strategy and venture investing
Fund unveils first investment focus areas to catalyze new ‘Navigation Technology’ market, equipping Americans with cutting-edge tools to achieve economic security, opportunity and empowerment
ST. LOUIS, May 6, 2026 /PRNewswire/ — NextLadder Ventures, a new fund backed by more than $1 billion in capital, today announced its priority investment areas for building a new market for “Navigation Technology” (NavTech) — tools that provide Americans with personalized solutions to navigate life’s challenges and achieve greater economic mobility — and announced its co-founding team, including two new senior hires.
The fund’s active focus areas are based on extensive research identifying the key experiences and high-stakes decision points that have an outsized impact on American families’ economic mobility. Launched investment areas include financial health, career navigation, and benefits and social services access, with further exploration underway around housing, legal aid, justice and re-entry, and mental and physical health.
The organization is also today welcoming two senior leaders: Lauren Loktev is joining NextLadder as Managing Director of Investments and Brigitte Hoyer Gosselink as Managing Director of Product. Loktev was most recently a partner at the Collaborative Fund, where she backed several breakout companies in early child development, education, and sustainability. Gosselink comes to NextLadder from Google, where she led the company’s AI and social impact portfolio. They join a growing team which has deep expertise at the intersection of economic mobility, technology, public policy, and philanthropy.
NextLadder’s Focus Areas for Investment
Today, the fund is kicking off a plan to deploy $1 billion over the next seven years to accelerate the design, development, and deployment of accessible NavTech tools that aim to help families more successfully navigate the major life experiences that determine whether they get ahead or fall behind. As NextLadder’s inaugural frontier AI lab partner, Anthropic is supporting the build-out of the organization’s AI-native capabilities and is offering technical assistance to NextLadder’s portfolio organizations.
As an increasing proportion of Americans across income levels find themselves overextended and overwhelmed, NavTech tools are designed to help individuals and families understand their options, connect to information and resources, and take action to recover from a setback or take advantage of an opportunity and reclaim their economic futures.
“Life is getting harder, and too many Americans are stuck facing some of the most complex and consequential moments of their lives without much support,” said Ryan Rippel, CEO of NextLadder Ventures. “Every day, millions in this country face fork-in-the-road decisions that have major implications on whether they climb up the economic ladder or fall farther behind. AI has understandably intensified many Americans’ anxieties about their jobs and their security in the economy. But these technologies are now also making it possible to deliver highly personalized, affordable tools to meet the needs of tens of millions of Americans in a way that has never been practically achievable or financially viable before. With NavTech tools, built for the reality of families’ everyday experiences, we can empower Americans to overcome setbacks, navigate life’s toughest financial decisions, and build more secure futures.”
NavTech tools, built with the needs of individuals, families, and trusted community partners at the center of their design, have the potential to ease burdens most acutely faced by 90 million Americans who live in households that have difficulty in paying for usual home expenses, and turbocharge the capacity of the 1.6 million community workers in non-profit or local, state, and federal government roles who serve them. This growing category of digital technologies includes tools that help families access opportunities such as personalized financial advice and legal aid, get connected with available resources and programs, and manage unexpected hurdles like losing a job or facing an eviction – while freeing social workers and service providers to spend more time on people and less time on red tape and paperwork.
The fund’s active investment areas include:
Financial Health: Developing highly personalized, AI-powered financial health tools that can provide tailored, sustained counsel to help users build savings and protect and recover from financial shocks;
Career Navigation: Building tools to support career navigation, manage and support career transitions, and help workers, case managers, and employers identify pathways to living wage work — all designed to help people successfully find the right jobs for them.
Benefits & Social Services Access: Helping eligible Americans seamlessly identify and enroll in all the benefits and social services available to them, particularly those that support career navigation and transitions, help them navigate critical life moments, and achieve stability toward economic opportunity.
NextLadder is exploring additional focus areas, including housing, legal aid, justice and re-entry, caregiving, and mental and physical health. More on the organization’s vision of these focus areas is available HERE.
In addition to backing direct NavTech solutions, NextLadder is investing in the developers, partners, and standards required to build a durable, self-sustaining market. Across all focus areas, the fund is prioritizing efforts to ensure NavTech tools are reliable, protect users’ privacy, and are trusted by the families who depend on them.
NextLadder’s Co-Founder Leadership Team
NextLadder’s five co-founders will be CEO Ryan Rippel, Chief Strategy and Operations Officer Rhett Dornbach-Bender, Chief of Staff Callie Schwartz, and the two new senior hires: Managing Director of Investments Lauren Loktev and Managing Director of Product Brigitte Hoyer Gosselink, rounding out the fund’s expertise in investing, technology, and impact.
“We’re thrilled to welcome Lauren and Brigitte to the NextLadder team,” said Rippel. “Brigitte has spent her career proving that when applied purposefully, AI and technology can deliver meaningful benefits for communities, and she’ll set the bar for what NavTech tools can deliver for American families today and in the years to come. And with her deep experience backing mission-driven founders, Lauren is the perfect leader to build our venture practice from the ground up and accelerate the growth of the NavTech field. With this team in place, we’re positioned to make NavTech tools easier to build, fund, and access so they reach the people who need them most.”
Loktev brings 15 years of venture capital experience investing at the intersection of for-profit and for-good. Most recently at Collaborative Fund, she backed several companies to significant scale and launched Collab+Sesame, a first-of-its-kind thematic seed fund in partnership with Sesame Workshop focused on early childhood education. At NextLadder, she will build and lead the fund’s venture practice, sourcing and scaling investments in the founders building the next generation of NavTech tools.
“We have a once in a generation opportunity to help steer AI solutions toward those who need them most,” said Loktev. “Many amazing, accomplished founders see this too, and they are on a mission to build scalable, transformative businesses in the critical verticals that help people navigate life-changing moments. I couldn’t be more excited to join NextLadder and to support the most inspiring leaders building this market from the ground up. Thanks to our unique, long-term mandate, we can be creative and flexible in investing across stage and check size to partner with the entrepreneurs and leaders we believe will change the world.”
Prior to her role at NextLadder, Gosselink spent over a decade at Google in several roles including Director of AI and Social Impact, directing more than $500 million in funding for organizations applying AI to address challenges including crisis response, education, and economic opportunity. At NextLadder, she will lead AI and product strategy across the fund’s portfolio, backing solutions and setting market-wide standards for how NavTech tools are designed, evaluated, and improved over time.
“If we collectively harness the AI transformation strategically and purposefully, we can transform the way Americans are empowered to access greater economic mobility,” said Gosselink. “We believe that people-centered products, combined with shifts in the market and the services available to families, can fundamentally reshape how millions of Americans navigate critical moments and achieve prosperity on their own terms.”
To request interviews from the NextLadder Ventures leadership team, contact media@nextladder.com.
About NextLadder Ventures
NextLadder Ventures is a time-bound venture with one goal: empower millions of Americans to reach their potential by 2040. Backed by over $1 billion in capital, the organization invests in breakthrough technologies that remove barriers to economic success and put people in control of their futures. NextLadder Ventures is trailblazing a new market for tech-enabled Navigation Technology tools that help people access the resources they need to navigate pivotal moments — offering flexible, risk-tolerant capital to entrepreneurs building these transformative tools today, while creating a pipeline of tech, talent, and capital for the long run.
SOURCE NextLadder Ventures
Switzerland’s Amina becomes first regulated bank to custody Canton Coin
Price predictions 5/6: BTC, ETH, XRP, BNB, SOL, DOGE, HYPE, ADA, BCH, ZEC
Ether tests $2.4K as accumulators add 246K ETH: How high can price go?
Send Rakhi to UK swiftly with UK Gifts Portal
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
New Gooseneck Omni Antennas Offer Enhanced Signals in a Durable Package
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Technology5 days agoRoyal Visit to Front Royal: Randolph-Macon Academy Shines at Block Party for King Charles III and Queen Camilla
-
Coin Market5 days ago
Bitcoin rally extends, yet BTC options price only 25% chance of $84K in May
-
Coin Market5 days ago
CLARITY Act stablecoin yield rules finalised: ‘Go time’ for crypto bill
-
Technology5 days agoProducts That Count Announces the Winners of the 2026 CPO Awards, Honoring the Product Leaders Redefining Their Craft in the AI Era
-
Technology5 days ago2026 Brockton High School Film Festival
-
Technology4 days agoFirst Online Conversations Are Changing in 2026, According to New Secretmeet Research
-
Coin Market5 days agoThree Bitcoin data points suggest a rally to $80K is imminent
-
Technology4 days agoPOVADDO AND PROLEGIS ANNOUNCE STRATEGIC PARTNERSHIP TO EXPAND ACCESS TO PUBLIC POLICY PROFESSIONALS FOR OPINION RESEARCH
