Genpact Limited

Good day, ladies and gentlemen. Welcome to the 2025 second quarter GENPAC Limited earnings conference call. My name is Lisa, 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 Krista Biesinger, Head of Investor Relations at GenPAC. Please proceed.

Thank you, Lisa. Good afternoon, everyone, and welcome to GenPAC's Q2 2025 Earnings Conference Call. We hope you've had a chance to read our earnings press release, which was posted on the Investor Relations section of our website, genpac.com. Today, we have with us BK Kalra, President and CEO, and Mike Weiner, Chief Financial Officer. BK will start with a high-level overview of the quarter, and then Mike will cover our financial performance in greater detail before we take your questions. Please note that during this call, we will make forward-looking statements, including statements about our business outlook, strategies, and long-term goals. These comments are based on our plans, predictions, and expectations as of today, which may change over time. Actual results could differ materially due to a number of important risks and uncertainties, including the risk factors in our 10-K and 10-Q filings with the SEC. Also during this call, we will discuss certain non-GAAP financial measures. We have reconciled those to the most directly comparable GAAP financial measures in our earnings press release. These non-GAAP measures are not intended to be a substitute for our GAAP results. And finally, this call in its entirety is being webcast from our Investor Relations website, and a replay and transcript will be available on our website in a few hours. And with that, I'd like to turn it over to BK.

Thank you, Krista. Hello, everyone, and thank you for joining us today. Q2 was another strong quarter for Genpak with revenue reaching $1.25 billion, up 7% year-over-year, reflecting broad-based outperformance across the business. Gross and adjusted operating income margins were also strong, up 50 and 40 basis points year-over-year, respectively, as we continue to deliver margin expansion while also making significant investments for long-term growth. Importantly, adjusted EPS continues to grow faster than revenue, up 11% year-over-year, including reaching 88 cents above the high end of our guidance range. At our investor day in June, we introduced Genpak Next, a strategy designed to establish Genpak as a global leader in advanced technology solutions building on strength of our core business services to accelerate revenue growth and expand margins. The Genpak Next growth model has three key elements, which we call the three Cs. They are, number one, our capabilities, which include what we go to market with across our advanced technology solutions and core business services. Number two, our clients, which include who we serve across both the enterprise and mid-market, and three, our catalysts, which include how we plan to further accelerate growth through investments in partnerships and AI-focused talent. We are seeing strong early momentum across each. Let me walk you through the key highlights. First, on capabilities. we have two sets of distinct but interconnected offerings, advanced technology solutions and core business services. These offerings amplify each other. Why? Because as you have heard me say before, there is no artificial intelligence without process intelligence. We are capitalizing on this opportunity by integrating advanced technologies, into what Genpact has always been known for, exceptional process, industry domain, and last mile expertise. This quarter, advanced technology solution revenue, which includes data and AI, digital technologies, advisory, and agentic solutions, continue to accelerate up 17% year over year, driven by strength in data and AI, as we continue to help clients rapidly deploy AI systems into production. Our data and AI pipeline has tripled over the last year, and we are innovating rapidly. The AI Gigafactory is now live across all Genpak verticals, with more than 45 clients onboarded year-to-date, and more than 100 experienced data and AI leaders joining us to help our clients rapidly scale AI. We now have more than 270 GenAI solutions in production environments with clients, either deployed or going live, up more than 3x year-over-year. Our agentic solutions are also gaining traction. All four modules of our agentic AP Suite are now generally available, and we are delivering measurable results with more accurate data capture, greater touchless processing, and significant productivity benefits for clients and for Genpak. The AP Suite is just one example of how our advanced technology solutions are creating more value for clients and generating high-value revenue for Genpak. Our advanced technology solutions deliver more than 2x the revenue per headcount compared to the company average and are growing at more than twice the rate of Genpak's overall revenue. Approximately 70% of advanced technology solution revenue is amortized, and approximately 70% comes from non-FTE commercial terms, making it high quality, sticky, and strategically aligned with our future direction. And while we are sharing AI-driven productivity gains with clients, incremental revenue is coming from expanded scope, increased volumes, and entirely new logos driving net revenue growth. Second on clients, we are very proud of our enterprise and mid-market clients, many of whom shared firsthand at Investor Day how our advanced technology solutions are driving meaningful value. Today, I want to share two additional stories with you that demonstrate how we are leveraging advanced technology solutions across both the enterprise and mid-market, to build intelligent, agile operations for our clients. The first is a leading global healthcare solutions company serving patients and providers for more than 125 years. As a strategic partner, Genpact has modernized the company's new product introduction and install-based functions to excel in the rapidly changing environment. We are now integrating GenAI and agentic AI into the company's product lifecycle and reducing time to spend on routine engineering work through GenAI-based documentation and leveraging agentic AI frameworks to proactively track and manage compliance across a rapidly evolving regulatory landscape. Our AI-powered solutions and industry domain expertise are enabling a more agile and innovative approach to launch new products and managing them in the aftermarket, resulting in faster time to market, enhanced compliance, and sustained product quality around the world. The second example is a large property and casualty insurance broker in North America. We are partnering with this firm to modernize its operations using AI and other advanced technologies. Our partnership will transform their policy lifecycle operation, leveraging intelligent automation, agentic processes, and scalable operating models to drive greater efficiency, scalability, and enhanced experience for their retail partners and carriers. This work speaks to the strength of our leadership in the insurance sector and our focus on empowering high-growth, mid-market clients with scalable, repeatable AI-led solutions. And finally, on Catalyst, we are further accelerating growth through investments in partnership and AI-focused talent. Partnerships represent a significant growth opportunity for GenPact. Partner-related revenues grew more than 70% year-over-year in quarter two, representing 10% of total revenue. We have achieved top-tier partnership status with AWS, Salesforce, and ServiceNow. Our joint solution portfolio is also expanding, further differentiating Genpact and accelerating pipeline growth. Today, we offer joint solutions for financial crimes with AWS Bedrock, order management with Salesforce, sourcing and procurement with ServiceNow, just to name a few. To further advance our capabilities, We are also collaborating with startups like Instabase for intelligent document processing, Zenity for responsible AI adoption, and so on and so forth. We also continue to make significant investments in AI talent, accelerating our pivot to advanced technology solutions with a focus on AI builders, experts who build AI solutions, and AI practitioners, Domain experts train to use AI in flow of work for client processes. Now turning to guidance. With better than expected results in quarter two, we are raising our full year outlook for revenue, adjusted operating income margin, and EPS. Our expected revenue range is now 4% to 6% on as reported basis, up from 2% to 5% previously. We expect adjusted operating income margin of 17.4% up from 17.3% previously, and we are raising our outlook for adjusted diluted EPS by $0.08 to $3.54 at the midpoint of the range. In closing, we are incredibly excited about the future as we reshape Genpak to be an AI-first company. Momentum is building as we leverage advanced technology solutions to strengthen our last mile advantage and position Genpak as a clear partner of choice for AI-driven transformation. With that, let me turn the call over to Mike.