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Genpact Reports Second Quarter 2024 Results

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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.

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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

tyra.whelton@genpact.com

Media

Siya Belliappa

 +1 (718) 561-9843

siya.belliappa@genpact.com

 

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

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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

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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.

 

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Technology

NIX United Achieves AWS AI Competency After Rigorous Audit

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AI-enabled software development company NIX United has officially achieved the AWS AI Competency designation from Amazon Web Services (AWS). The recognition validates NIX’s proven expertise in architecting, securing, and deploying enterprise-grade artificial intelligence and machine learning solutions on AWS.

TAMPA, Fla., July 23, 2026 /PRNewswire-PRWeb/ — For enterprise organizations, the designation provides independent validation of NIX’s end-to-end AI capabilities across solution architecture, data security, governance, and operational excellence. It is based on successful production deployments, including a generative AI customer feedback analytics platform and an AI-powered medical education solution. The competency also provides eligible customers with access to AWS-validated frameworks, specialized technical resources, and AWS GenAI Innovation Funding programs.

“AI must be engineered for long-term production value,” said Artur Bakulin, Head of RnD and Innovation at NIX United. “Earning the AWS AI Competency reflects our commitment to building AI architectures grounded in verifiable return on investment.”

Moving Beyond AI Demos to Production Value

While AI adoption accelerates, organizations face a critical barrier: transitioning from impressive proofs of concept to production-grade applications. Building AI for the modern enterprise requires solving complex challenges around regulatory compliance and seamless system integration.

To earn the AWS AI Competency, NIX completed a comprehensive technical audit demonstrating its ability to deliver scalable AI solutions. The evaluation covered engineering practices, security controls, governance frameworks, and operational excellence, while highlighting NIX’s experience applying generative AI to complex business workflows.

Strategic Benefits for Enterprise Clients

“AI must be engineered for long-term production value,” said Artur Bakulin, Head of RnD and Innovation at NIX United. “Earning the AWS AI Competency reflects our commitment to building AI architectures grounded in verifiable return on investment.”

For NIX clients, this designation provides:

Reduced project risk through AWS-validated architectures that support data privacy, security, and regulatory compliance.Faster project execution with access to eligible AWS funding programs, including subsidized AI assessments, Proofs of Concept (PoCs), and AWS GenAI Innovation Funding.Long-term scalability with solutions engineered to move seamlessly from pilot projects to business-critical production environments.

Organizations exploring generative AI initiatives can work with NIX experts to evaluate their eligibility for the AWS GenAI Innovation Funding Program and identify opportunities to accelerate adoption.

Frequently Asked Questions

Q: What specific competency did NIX United achieve?

A: NIX achieved the AWS AI Competency, a formal designation by Amazon Web Services verifying a partner’s technical proficiency and robust customer success in delivering generative AI solutions.

Q: What criteria did AWS use to evaluate NIX United?

A: AWS conducted a comprehensive technical audit covering NIX’s solution architecture, security controls, governance frameworks, and delivery methodology.

Q: How can enterprise clients fund their AI initiatives with NIX United?

A: Through NIX’s status as an advanced AWS partner, eligible clients can access the AWS GenAI Innovation Funding Program to offset costs for AI assessments, proofs-of-concept, and full-scale implementations.

Media Contact

Yevheniia Kryvenko, NIX United, 1 7272563558, yevheniia.kryvenko@nixs.com, NIX United

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Apollo and San Jose Earthquakes Announce Official Sleeve and Go-to-Market Partnership, Bringing the AI GTM System to Major League Soccer

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First-of-its-kind partnership to help Earthquakes capitalize on soccer’s surging popularity through AI-powered GTM transformation

SAN FRANCISCO, July 23, 2026 /PRNewswire/ — Apollo, the AI go-to-market system, announced today a multiyear Official Sleeve Partnership with Major League Soccer’s San Jose Earthquakes that entails becoming both the club’s Official Go-to-Market Partner and the first go-to-market (GTM) company to combine a professional sports sponsorship with a full-scale partnership for revenue operations transformation.

As soccer continues its unprecedented rise in popularity across the United States, with MLS seeing a 62% year-over-year increase in viewership to kick off the 2026 season, the unique partnership positions the Earthquakes to modernize their GTM, accelerate revenue and capitalize on the sport’s expanding global audience.

In the partnership, Apollo will serve as both a brand sponsor with its logo featured prominently on the right sleeve of the Earthquakes’ jersey, and as a technology partner, powering the club’s GTM strategy. The club will deploy Apollo’s system across key revenue-generating functions, including group ticket sales, sponsorship pipeline management, inbound lead routing and season ticket renewals, creating a modern GTM system designed to drive fan engagement and commercial growth.

“We see this partnership as a natural extension of Apollo’s mission to make world-class go-to-market accessible to everyone by bringing it to the world’s most popular game,” said Matt Curl, CEO of Apollo. “Soccer is entering an incredible growth phase in the U.S., creating a once-in-a-generation opportunity for clubs to deepen fan relationships and accelerate commercial growth. Every professional sports team is running a revenue business focused on finding customers, engaging fans, growing sponsorships and driving renewals. By bringing together data, intelligence and execution into one system, we’re helping the Earthquakes build a modern commercial operation that will become a model for the future of sports.”  

The partnership reflects Apollo’s broader vision that every organization can benefit from its AI GTM system. With the rise in soccer’s popularity, clubs face increasing pressure to convert fan interest into lasting relationships, ticket sales, sponsorships and recurring revenue. While sports organizations have historically relied on fragmented tools across ticketing, sponsorship sales, CRM and marketing, Apollo brings those workflows together into one connected system to help organizations capitalize on this moment.

For the Earthquakes, that means:

Modernizing group ticket sales workflowsImproving inbound lead managementGrowing sponsorship pipelineStreamlining season ticket renewal campaignsGiving sales and marketing teams a unified system

“While excitement around soccer continues to grow across the country, we’re investing in the technology and systems that will help us better engage our supporters and continue growing our commercial business,” said Earthquakes President Jared Shawlee. “I started my career in sales and have never seen the kind of technology that Apollo provides. This will transform our approach to sales and marketing by giving us one system to connect data, automate workflows and create a more connected experience for Quakes fans throughout their journey with the club.”

“We are excited to roll out the Apollo AI GTM system to revenue teams across our organization,” added Earthquakes Chief Strategy Officer Ian Anderson. “Apollo is at the forefront of AI-powered GTM and the Quakes are committed to being ahead of the technology curve for our industry.”

The Earthquakes become Apollo’s first official sports partner, laying the foundation for a broader strategy to bring modern GTM technology to sports organizations worldwide. Apollo plans to use the partnership as a blueprint for working with hundreds of professional sports organizations facing similar revenue and commercial challenges.

“This is just the beginning,” added Curl. “Professional sports organizations have the same GTM challenges as fast-growing businesses. We’re excited to demonstrate what’s possible when data, intelligence, and execution come together in a single system to help teams build stronger relationships with fans, partners, and customers.”

The partnership will officially debut ahead of the Earthquakes’ annual California Clasico match on Saturday, July 25, against the LA Galaxy at Stanford Stadium, with Apollo and the club jointly celebrating the launch through customer events, social activations and in-stadium experiences.

About Apollo
Apollo is the AI GTM System that uniquely combines data, intelligence, and execution in one loop helping every business find and win their next customer. Trusted by millions of users and over 600,000 companies worldwide, Apollo combines one of the industry’s largest B2B contact databases with a purpose built GTM intelligence engine and a full execution stack, in an all-in-one system. Learn more at apollo.io.

About San Jose Earthquakes
The San Jose Earthquakes, one of Major League Soccer’s original teams, are the epicenter for soccer in Northern California, playing at the highest professional level in the United States. The club won MLS Cups in 2001 and 2003 and took home Supporters’ Shields in 2005 and 2012. The Earthquakes are based out of PayPal Park, an 18,000-seat soccer-specific stadium that opened in 2015 and is the first cloud-enabled venue in MLS. The organization was originally founded in 1974 in the North American Soccer League, and in 2024, celebrated its 50th anniversary of positively impacting communities around Northern California. The club’s nonprofit arm, the Quakes Foundation, focuses on health and fitness initiatives for local underserved youth and fighting food insecurity. For more information about the Earthquakes, visit sjearthquakes.com.

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SOURCE Apollo.io

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CIQ Arms Federal Agencies and Contractors with Kernel-Level Detection and BOD 26-04-Compliant Remediation

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RLC Pro Hardened and Ascender Pro together give federal teams kernel exploitation detection as it happens and CVE remediation before it wipes out an entire fleet

RENO, Nev., July 23, 2026 /PRNewswire/ — CIQ, the founding commercial sponsor of Rocky Linux, today announced the launch of an RLC Pro Hardened and Ascender Pro deployment that gives federal agencies real-time kernel exploit detection, audit-ready compliance, and automated remediation in a single deployment. The pairing gives federal teams a stronger position inside the three-day remediation window Binding Operational Directive (BOD) 26-04 sets for the highest-risk vulnerabilities on federal systems.

On June 10, 2026, CISA issued BOD 26-04, and the three-day clock starts when a flaw enters the Known Exploited Vulnerabilities (KEV) catalog, not when a patch ships. For the most dangerous vulnerabilities, the exploit often arrives before the patch does, leaving agencies with a compliance deadline and no fix to apply yet. Non-compliance penalties can include a range of administrative consequences, including greater regulatory oversight and asset disconnection.

RLC Pro Hardened, CIQ’s federal-ready Enterprise Linux distribution, answers that gap. It is the first Enterprise Linux distribution to ship runtime kernel exploitation detection enabled and supported by default, giving agencies a record of what happened during the window before a fix shipped. CIQ delivered that capability well before BOD 26-04 put federal agencies on a three-day clock.

“A single critical vulnerability can impact an entire federal fleet before it’s even confirmed as a CVE,” said Gregory Kurtzer, founder and CEO of CIQ. “RLC Pro Hardened’s LKRG catches the exploit behavior at the kernel the moment it happens, patch or no patch. Once remediation is required, Ascender Pro orchestrates it across the entire fleet and proves it happened, system by system. Agencies get both sides covered without rebuilding their infrastructure.”

RLC Pro Hardened ships with Linux Kernel Runtime Guard (LKRG), which validates kernel integrity continuously and records kernel-level exploitation as it happens. The distribution also arrives audit-ready, with FIPS 140-3 validated cryptography and CIQ-engineered lockdown playbooks for DISA STIG, CIS and NIST 800-171.

Ascender Pro adds Reaqt, an event-driven engine that watches fleet logs, matches them against rule sets, and fires the right Ansible playbook automatically. Across a fleet, that closes issues faster than manual, ticket-driven review.

More About BOD 26-04

BOD 26-04 replaced the severity-score deadlines of BOD 22-01 and BOD 19-02 with a risk model. It scores each vulnerability on four factors: public exposure, presence in the KEV catalog, exploit automation and technical impact. A vulnerability that meets all four carries a three-calendar-day remediation deadline, the shortest CISA has set in a Binding Operational Directive. Agency remediation policies must support the directive by August 7, 2026.

About CIQ

CIQ is the founding support and services partner for Rocky Linux and a leading provider of enterprise Linux infrastructure. CIQ delivers commercially supported Linux offerings, high-performance computing solutions and AI infrastructure to enterprises, government agencies, research institutions and supercomputing centers worldwide. CIQ’s products include the Rocky Linux from CIQ (RLC Pro) family of operating systems, Ascender Pro for IT automation, Fuzzball job-based container orchestration, Warewulf cluster provisioning and Apptainer, the leading container system for high-performance computing. For more information, visit ciq.com.

MEDIA CONTACT:
Cristin Connelly
Cathey Communications for CIQ
cristin@cathey.co

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