Genpact Limited

Good day, ladies and gentlemen. Welcome to the 2021 Third Quarter GENPAC Limited Earnings Conference Call. My name is Mika, and I will be your conference moderator for today. At this time, all participants are in a listen-only mode. We will conduct a question and answer session towards the end of this conference call. As a reminder, this call is being recorded for replay purposes. The replay of the call will be archived and made available on the IR section of GenPAC's website. I would now like to turn the call over to Roger Sachs, Head of Investor Relations at GenPAC. Please proceed.

Thank you, Nika, and good afternoon, everybody. Welcome to our earnings call to discuss results for the quarter ended September 30, 2021. We hope you had a chance to review our earnings release, which was posted to the IR section of our website, Genpak.com. Speakers on today's call are Tiger Tyagarajan, our president and CEO, and Mike Wiener, our chief financial officer. Today's agenda will be as follows. Tiger will provide an overview of our results and update you on our strategic initiatives. Mike will then walk you through our financial performance for the quarter, as well as provide you our current thoughts on our outlook for the full year 2021. Tiger will then come back with some closing comments, and then we will take your questions Expect the call to last roughly an hour. Some of the matters we will discuss in today's call are forward-looking and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties are set forth in our press release. In addition, during our call today, we will refer to certain non-GAAP financial measures, that we believe provide additional information to enhance the understanding of the way management views the operating performance of our business. You can find a reconciliation of those measures to GAP in today's earnings release posted to the IR section of our website. And with that, let me turn the call over to Tiger.

Thank you, Roger. Good afternoon, everyone, and thank you for joining us today for our third quarter 2021 earnings call. Our third quarter performance reflects continued momentum across our business. Global client top line performance, which grew at 11% on a constant currency basis, was once again driven by strong demand for transformation services made up of analytics, digital, and consulting. Our strategic investments over the years in capabilities and talent, including the continuous training and development of our global workforce, positions us well to address the pressing challenges and opportunities our clients are facing. This quarter, we achieved the milestone of crossing the threshold of $1 billion in quarterly total revenue for the first time. For the third quarter of 2021, we delivered total revenue of $1.02 billion, up 8% on a constant currency basis, global client revenue of $921 million, up 11%, on a constant currency basis, adjusted operating income margin of 16.6% compared to 17.1% during the third quarter of 2020, and adjusted diluted earnings per share of 66 cents per share, up 18% year over year. Global client revenue growth in the quarter cut across almost all of our industry verticals with double-digit growth in consumer goods and retail, life sciences and healthcare, high tech, and manufacturing and services. As expected, banking and capital markets growth continued to be muted due to the restructured relationship with one client that resized its asset management business in late 2020. Our pipeline remains healthy with a mix of both large and regular size deals. We continue to scale our revenue and bookings from existing relationships and add new logos, which sets the stage for future growth. During the third quarter, we signed four large deals across life sciences, CPG, banking and capital markets, and high-tech services. As we deepen our role as a trusted advisor to our clients, we have seen sole source deals, which was for many quarters above 50% of our bookings, now rising above 60%. We're also seeing great traction build up in FinTech, digital banking, and other fast-growth tech companies, where our domain strength and agile development and deployment is helping them scale rapidly. Global client transformation services continues to grow at a 30% plus rate and now accounts for more than 35% of total global client revenue, including the contribution from the Inquiro acquisition. Year to date, approximately 70% of global client bookings include a component of analytics, digital, or consulting in them. As a reminder, Approximately half of transformation services bookings are annuity based and often lead to large long-term intelligent operations engagements. Analytics is not only the largest component of transformation services contributing more than half of its revenue over the last several quarters, but it's also its fastest growing component, consistently growing well above 30%. Many of our analytics solutions are deeply connected to high growth areas, where we are strategically focused, such as sales and commercial, supply chain, financial crimes and risk, and FP&A. Our sharp differentiation is our ability to orchestrate data and analytics in the cloud with deep industry and process knowledge. The availability of high quality data and the ability to derive actionable insights with analytics to drive decision making is now more critical than ever. It is at this insight to action level where we differentiate ourselves the most. Our intelligence platform, Genpact Enterprise 360, enables clients to do just that. Genpact Enterprise 360 harnesses the power of data and insights from our operations built on proprietary metrics and benchmarks we have deployed and developed over the past 20 years in our digital smart enterprise frameworks. This enables clients to have radical transparency in their businesses. The platform then uses AI to generate predictive insights. This further empowers clients to take actions, either themselves or through our work with them to deliver better outcomes today and to point transformation opportunities to unlock future growth. Another differentiator for us is our ability to drive outcome-oriented value for clients beyond just cost and productivity. such as increased growth, lower receivables and inventory, lower losses and fraud, and better pricing. This is one of the key reasons why our transformation services solutions resonate so well with our clients. Some examples include, for a large global CPG client, leveraging our experience and design thinking methodologies, we are using analytics to help them with better sales targeting and automating processes such as contract management and payment reconciliations. This enables its sales teams to focus a much higher proportion of their time on business development. For a large FinTech client, we have designed, implemented, and are now running a best-in-class anti-money laundering and transaction monitoring process to improve their regulatory risk compliance as they experience hypergrowth. For a large high-tech client, using our Cora sales assist solution, We are leveraging data and analytics to proactively generate and prioritize advertising leads for small and medium business segments to grow the client's top line. For a large client in the semiconductor ecosystem, we are using digital and analytics solutions to improve supply and demand forecasting, diversify their supplier base for greater resilience, conduct global inventory analysis, and run spot price forecasting to optimize the timing of purchases. These examples reflect the five trends we continue to see in every CXO conversation. The five trends are, one, a significant shift from offline to online across every industry. Two, the virtualization of all technology services and solution delivery. Three, an accelerated consumption of cloud-based services and solutions. Four, an exponential growth in real-time predictive analytics. And five, the move to human-centered design that creates superior experiences for customers, users, and employees. Clients continue to tell us that our approach of bringing together our expertise in digital and cloud-based analytics solutions with our deep industry and process depth to drive actions that deliver outcomes is different. We continue to see momentum in driving commercial models linked to these outcomes. versus traditional input-based models that focus on the cost of FTEs. These commercial models ensure goal alignment between us and our clients. For example, being paid for the outperformance of predefined metrics, consumption or transaction-based models, or fixed fee models. As the world continues to adapt to the changes that are seen over the last 18 months, companies across every industry are intensely competing for talent across the globe. While this hot talent market presents challenges for our kind of a business, it certainly creates an interesting set of opportunities for us. We see many engagements where we can help our clients access and nurture global talent, given our ability to scale across a range of skill sets and geographies, as well as our focus on reskilling. We are using our investments in our online, on-demand learning platform, Genome, to build the critical skills businesses are looking for across digital data and analytics, specific industry and process knowledge, use of Lean and Six Sigma, as well as soft skill and personal development. As an example, our data and analytics certification program equips our employees with the skills necessary to generate impact immediately after course completion, by deriving insights from complex data sets. To date, almost 70% of our employees are enrolled with more than 43,000 fully trained and tested. This is analytics at scale for our clients. At the height of the pandemic in 2020, we saw historically low attrition rates. In the third quarter, as expected, our attrition rate increased above our historical average. This is a global trend that is impacting our peers and clients alike. However, given our talent management practices to date, we have had no impact on our client engagements or our ability to convert new bookings. Year to date, we have welcomed almost 30,000 new team members with about 10,000 joining in the third quarter alone. This reflects the strength of our culture of curiosity, innovation, and learning. as well as the countless learning, development, and career opportunities we provide for our employees, enabled by investments like Genome and our redeployment platform, Talent Match. We are delighted to have had a spate of recent recognitions for being a great destination for talent in the market, such as Forbes 2021 World's Best Employers List, Refinitiv's 2021 Diversity and Inclusion Top 100, A total of 28 excellent awards from Brandon Hall Human Capital Management, International SOS's Duty of Care Award for Diversity and Inclusion, Aptar's Top 10 Best Companies for Women in India, and earlier today, Forbes 2021, America's Best Employers for Veterans. We're also being recognized for the work we are doing to improve our communities. For example, being named to Fortune's Change the World list as one of 100 companies celebrated for having a positive societal impact. We are deeply committed to our environmental, social, and governance initiatives and are proud to have been recently awarded a gold medal from EcoVadis, recognizing our efforts across environment, labor and human rights, ethics, and sustainable procurement. We also recently concluded our annual Greenathon event with more than 25,000 participants to sponsor the planting of more than 14,500 tree saplings, underscoring our commitment to environmental sustainability. ESG is not only an important focus for us internally as a company, but also for what we do with our clients. Given our industry knowledge, strength in data and analytics, and deep familiarity with our clients' processes, we are in a meaningful position to help our clients achieve progress on their own ESG agendas. Through areas like responsible sourcing, supply chain optimization, financial crimes, climate footprint of equipment usage, and many others, we're able to help our clients generate positive social and environmental impact. We are very excited about the work we are doing on our pursuit of a world that works better for people. Lastly, as our teams are beginning to return to the office globally, and travel more frequently to collaborate in person or meet with clients. We are taking every precaution to continue to ensure the health and safety of our own employees and their families. We are happy to report that a large and increasing number of our employees are getting vaccinated globally. For example, in our largest delivery ecosystem, India, approximately 80% of our workforce has received at least one dose of a COVID vaccine, and we continue to encourage participation for the rest of our population. With that, let me turn the call over to Mike for a detailed review of our third quarter results.