Genpact Limited

Good day, ladies and gentlemen. Welcome to the 2025 third 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 toward 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 Q3 2025 Earnings Conference Call. We hope you've had a chance to read our earnings press release 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 an audio 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. Q3 was another strong quarter for Genpact, with revenue up 7% year-over-year, reaching $1.291 billion, exceeding the high end of our guidance range by 21 million. Growth in advanced technology solutions continues to accelerate, with revenue up 20% year-over-year. This is our fifth consecutive quarter of accelerating growth, reflecting strong momentum and as we successfully execute on Genpak Next. Gross margin of 36.4% and adjusted operating income margin of 17.7% also exceeded expectations as we continue to drive healthy margin expansion while making significant investments for long-term growth. And adjusted diluted EPS continues to grow significantly faster than revenue up 14% year over year, reaching $0.97, $0.07 above the high end of our guidance range. We continue to strengthen our foundation with Genpak Next. Growth in advanced technology solutions is accelerating, with advanced technology solutions now driving more than half our revenue growth. Revenue per headcount is also increasing, particularly in advanced technology solutions, driving total revenue per headcount higher. And incremental revenue is coming in at much higher gross margin in 2025. We expect all of these trends to continue longer term. Genpak Next is designed to establish Genpak as a global leader in advanced technology solutions, building on strength of our core business services with accelerating revenue growth and expanding margins. Its growth model has three key elements, capabilities, clients, and catalysts. We are executing well across each. Let me walk you through the highlights. First, our capabilities, which include advanced technology solutions and core business services. We hosted our second annual AI Day in September with nearly 200 clients and partners in attendance. Our message was clear. Genpak is defining the future of agentic operations. We believe that companies pivoting to agentic operations will redefine their industries, gaining market share and operating leverage by a factor, not a few points. To support this vision of the future, we announced three major products at AI Day. The first is AI Maestro, a software platform for AI practitioners that enables faster adoption of AI into last-mile business processes, driving measurable near-term ROI. We also announced two new agentic suites. The Genpak Insurance Policy Suite for Commercial and Specialty Insurance, designed to increase touchless clearance and deliver faster handling time. and the Genpact Record to Report Suite, which increases predictability and reduces enterprise risk in month and quarter and close processes. These announcements highlight the accelerating pace of innovation at Genpact and put us in an excellent position to gain further market share and momentum. Our focus on delivering innovative results is also driving strength in data and AI more broadly. The AI Gigafactory is now supporting approximately 100 clients, up more than 2x quarter over quarter, with a robust set of accelerators developed through gsolution.ai. We also now have more than 330 Gen AI solutions in market, either deployed or going live, up more than 1.5x from the year-ago period. These are full solutions deployed in live production environment, driving measurable business results for clients. In terms of agentic adoption, our solutions for agentic operations are growing at an exponential rate, faster than any solutions in Genpak history with a strong product roadmap ahead. While it's still early days, agentic contract value is growing rapidly as well. Volumes are significantly higher than we spoke at our investor day in June, with a healthy mix of contracts coming in from new and existing clients. Year-to-date, more than 30% of our awarded agentic contract value is coming in from new clients. For existing clients, both net revenue growth and gross margin expansion continue to trend in a positive direction relative to the stats we shared with you in June. In core business services, revenue grew 3% year over year with strength in digital operations and technology services, providing a solid foundation for future growth. Looking ahead, we see an opportunity to sharpen our go-to-market focus in DCN support services to drive stronger execution and greater market share over time. We continue to invest in all three capabilities in core business services, to serve clients who are working towards AI readiness, but who are not ready to launch agentic operations today. Taking a step back, advanced technology solutions and core business services continue to amplify each other. Let me give you a couple of examples to illustrate. At AI Day, we were honored to have a number of large clients join us to share real-world examples of how Genpex Data and AI knowledge and last-mile expertise are driving real business outcomes. I want to share two stories with you today with long-standing clients who started many years ago with us in core business services, who are now power users of advanced technology solutions in addition to remaining highly valued clients in the core. The first is Mars. a family-owned business with more than $55 billion in annual revenue that produces some of the world's best-loved brands. Our long-standing partnership has been built on operational excellence, trust, innovation, and shared success. Mars started with us in 2018 as a digital operations client in finance and accounting, and later expanded into other service lines. Today, we have deployed a number of AI solutions that are delivering strong ROI with more slated to launch soon. As an example, we have built and deployed a team of autonomous Gen AI agents that interpret, reason, and act across the entire cash lifecycle, delivering an increase in on-time cash collections and working capital improvements. the Mars team has been an exceptional partner for us. The additional keys to our success have been our deep process intelligence, our industry depth, working with some of the world's largest consumer good companies, and our last mile knowledge, which in this case includes a detailed understanding of Mars technology, their operating environment, understanding of friction points, and the years of operational experience that we have gained there. Our partnership has delivered significant value with hopefully our best years still yet to come as we work towards an agentic and increased autonomous enterprise. The second example is Heineken, one of the world's most iconic beverage companies. We have had the privilege of partnering with Heineken for over 15 years. Over the past year, we established a data quality factory that sets new standards for delivering trusted data at scale. With a GenTech AI now infused through orchestrated agents on Azure and Databricks, we have taken a significant stride towards intelligence and autonomous data quality. To deliver, GenPack brought more than just technology. We also brought process intelligence and understanding of how data flows in the Heineken ecosystem how their markets operate, and understanding of the friction points in various parts of the process. Early results show strong ROI with an improvement in automated data quality of up to 70% and 67% faster times to diagnose and fix data quality issues. The team has also reported better order fulfillment, fewer delivery failures, stronger compliance, and more confident decisions. We are incredibly grateful for their partnership. And finally on Catalyst, we continue to accelerate growth through investments in partnership and AI talent. In Q3, partner-related revenue grew 56% year-over-year. Partnerships represent an important opportunity for Genpak as demand for data and AI-led transformation requires deep process and domain expertise and integrated offerings. We are partnering with companies like AWS, GCP, and Databricks to embed domain-led solutions into their tech stacks with joint go-to-market efforts and roadmaps. At only 10% of revenue, we believe partnerships represent a significant growth opportunity for Genpak going forward. We also continue to invest aggressively in AI talent, rapidly accelerating the pace and quality of hiring in our advanced technology solutions leadership team to support our strategic pivot. We continue to hire leaders with significant experience in data and AI, product development, and technology consulting who are driving critical initiatives at Genpak, including our AI Gigafactory and agentic products. We are also developing thousands of AI builders and practitioners and remain on track to achieve the 2025 targets laid out at our investor day in June. Now turning to guidance. With better than expected results in Q3, we are raising our full year outlook for revenue and EPS. Our expected revenue range is now 6.1 to 6.4% on as reported basis up from 4 to 6% previously, an increase of 120 basis points at the midpoint of the range. We are also raising our outlook for adjusted diluted EPS by 7 cents to $3.61 at the midpoint, reflecting double-digit growth. In closing, we are incredibly excited about the future. Genpak is proving to be a clear partner of choice of AI-driven transformation with significant momentum as we leverage advanced technology solutions to strengthen our last-mile advantage. I said earlier that we believe that companies that pivot to a GenTech will redefine their industries, gaining market share and operating leverage by a factor, not a few points. I believe that future exists for GenPact as well. With that, let me turn the call over to Mike. Thank you.