Genpact Limited (NYSE:G) Q3 2023 Earnings Call Transcript

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Mike Weiner: I would just quickly like to add to that too, Tiger, that our pipeline associated with that type of work has not reduced, it’s actually increased. The quality of the pipeline increases. So that’s going to be again a nice driver for us as we go into 2024. We work hard on converting that pipeline into revenue.

Operator: Thank you. [Operator Instructions] Our next question comes from Bryan Bergin of TD Cowen.

Bryan Bergin: Hi guys, thank you, Tiger. Been good working with you. Congratulations on retirement. BK, congrats on the promotion here. My first one is a clarification. So I just want to be crystal clear. The Digital Ops, it sounds like there’s really nothing change. You feel good about the ramp. So as you were thinking about what you would grow in 2024, just to be clear, is there any change on how you were feeling about the business? Fully understand that the DTA business is flattened out here, but just on the Digital Ops to start.

Tiger Tyagarajan: No. What we said in the first and second quarter in our last has played out exactly, I would – Ashwin asked a moment ago if you saw any degradation in terms of Digital Operations projected ramp, no. Worked out quite well. And that’s really, as I talked about earlier, we’ll continue to provide the base for fourth quarter and into next year. We’ve seen no degradation.

Bryan Bergin: Okay. Very good. And then just on the margin expenses, so you’re obviously able to offset. I get the mix aspect of this, but as you’re kind of leaning into reduced cost, did you talk about how you’re balancing efficiency here versus the need for growth investments?

Tiger Tyagarajan: Yes, we’re not – it’s very simply, we’re not pulling away from growth investments. In my prepared comments, I tried to articulate we’re not pulling away from sales and marketing investments for R&D. There’s natural efficiencies in our business, particularly in a down cycle, particularly in Data-Tech and AI on that small cohort of work that we do. But we’re not pulling from those investments for the future.

Bryan Bergin: All right. Thank you.

Operator: Thank you. [Operator Instructions] And our next question comes from Mayank Tandon of Needham and Company.

Sam Salvas: Great. Thanks. Hey guys, this is Sam on for Mayank today. Thanks for taking the questions. Just a quick one from me. The 32 new logos this quarter was good to see. Could you guys talk about which verticals had the strongest new logo additions this quarter?

Tiger Tyagarajan: Actually, Mayank, it was actually nicely distributed across all our verticals. And we are very pleased with what I called in my prepared remarks, a bounce back. Because if you remember the first half of the year, it had come down versus the prior few or four quarters. And the reason for that one was a reduction in some of the smaller, faster growing technology companies that we saw withdraw for all good reasons that we all know in the first half. Got replaced by other larger clients across all verticals and interestingly, across GEOs as well, whether it’s Europe, Asia, or North America.

Sam Salvas: Got it. Okay. Thanks, guys.

Tiger Tyagarajan: Thank you.

Operator: Thank you. I’m showing no further questions at this time. I would now like to turn it back to Roger Sachs for closing remarks.

Roger Sachs: Thanks, everybody, for joining us today. And we look forward to speaking to you again in early February.

Operator: This concludes today’s conference call. Thank you for participating. And you may now disconnect.

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