Press Release


Genpact Reports Second Quarter 2018 Results

Revenues of $729 Million, Up 9% (~8% on a constant currency basis)1
Global Client BPO Revenues of $569 Million, Up 11% (~10% on a constant currency basis)
Diluted EPS of $0.33; Adjusted Diluted EPS2of $0.41

NEW YORK, August 7, 2018 — Genpact Limited (NYSE: G), a global professional services firm focused on delivering digital transformation, today announced financial results for the second quarter ended June 30, 2018.

“During the second quarter, we delivered solid results and continued to accelerate momentum on a variety of fronts.  Our Global Client and GE pipelines are expanding, and recent large deal wins confirm that we are building our reputation as a preferred digital transformation partner for many new and existing clients,” said “Tiger” Tyagarajan, Genpact’s president and CEO.  “We continue to invest organically and inorganically in our service lines and are excited about the capabilities we are building, including in supply chain management where we recently announced a consulting acquisition.  This is one of the biggest transformational areas for clients across a range of our industry verticals.  We believe we are well positioned for long-term profitable growth in our attractive and underpenetrated markets.”

Key Financial Results – Second Quarter 2018

  • Total revenue was $729 million, up 9% year-over-year (up ~8% on a constant currency basis).
  • Income from operations was $80 million, down 2% year-over-year, with a corresponding margin of 10.9%.  Adjusted income from operations was $110 million, down 1% year-over-year, with a corresponding margin of 15.0%.3
  • Diluted earnings per share were $0.33, down 6% year-over-year, and adjusted diluted earnings per share were $0.41, down 3% year-over-year. 
  • Genpact repurchased approximately 1.1 million of its common shares during the quarter for total consideration of $34 million at an average price per share of $31.05.

Revenue Details – Second Quarter 2018
Total Company

  • Total BPO revenue was $606 million, up 9% year-over-year, representing approximately 83% of total revenues. 
  • Total IT revenue was $123 million, up 7% year-over-year, representing approximately 17% of total revenues.

Global Clients

  • Revenue from Global Clients was $663 million, up 9% year-over-year (up ~8% on a constant currency basis), representing approximately 91% of total revenues.
  • Global Client BPO revenue was $569 million, up 11% year-over-year (up ~10% on a constant currency basis).
  • Global Client IT revenue was $94 million, down 2% year-over-year.

GE

  • Revenue from GE was $65 million, up 4% year-over-year, representing approximately 9% of total revenues.
  • GE BPO revenue was $37 million, down 18% year-over-year.
  • GE IT revenue was $28 million, up 58% year-over-year.

Cash Flow from Operations

  • Cash generated from operations was $77 million in the second quarter of 2018, compared to $84 million during the second quarter of 2017.

2018 Outlook
Genpact now expects:

  • Total revenue for the full year 2018 of $2.945 to $3.01 billion, up from the prior outlook of $2.93 to $3.00 billion.  This represents a projected year-over-year growth rate in the range of approximately 8% to 10%, up from a projected range of 7% to 9.5% based on our prior outlook.
  • Global Client revenue growth in the range of 9.5% to 11.5%, up from our prior outlook in the range of 9% to 11%.

Genpact continues to expect:

  • Adjusted income from operations margin4 of approximately 15.8%.
  • Adjusted diluted EPS5 of $1.72 to $1.76.

Conference Call to Discuss Financial Results
Genpact’s management will host an hour-long conference call beginning at 4:30 p.m. ET on August 7, 2018 to discuss the company’s performance for the second quarter ended June 30, 2018. To participate, callers can dial +1 (877) 654-0173 from within the U.S. or +1 (281) 973- 6289 from any other country. Thereafter, callers will be prompted to enter the conference ID, 2281499.

A live webcast of the call will also be made available on the Genpact Investor Relations website at http://investors.genpact.com. For those who cannot join the call live, a replay will be archived on the Genpact website after the end of the call. A transcript of the call will also be made available on the website.

About Genpact
Genpact (NYSE: G) is a global professional services firm that makes business transformation real. We drive digital-led innovation and digitally-enabled intelligent operations for our clients, guided by our experience running thousands of processes for hundreds of Global Fortune 500 companies. We think with design, dream in digital, and solve problems with data and analytics. We obsess over operations and focus on the details – all 80,000+ of us. From New York to New Delhi and more than 20 countries in between, Genpact has the end-to-end expertise to connect every dot, reimagine every process, and reinvent companies’ ways of working. We know that rethinking each step from start to finish will create better business outcomes. Whatever it is, we’ll be there with you – putting data and digital to work to create bold, lasting results – because transformation happens here.

Safe Harbor
This press release contains certain statements concerning our future growth prospects and 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 a slowdown in the economies and sectors in which our clients operate, a slowdown in the business process outsourcing and information technology services sectors, the risks and uncertainties arising from our past and future acquisitions, our ability to convert bookings to revenues, our ability to manage growth, factors which may impact our cost advantage, wage increases, changes in tax rates and tax legislation and other laws and regulations, our ability to attract and retain skilled professionals, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, general economic conditions affecting our industry 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. 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
Roger Sachs, CFA
+1 (203) 808-6725
roger.sachs@genpact.com

Media
Gail Marold
+1 (919) 345-3899
gail.marold@genpact.com

GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data and share count)

 

 

As of December 31,

 

 

As of June 30,

 

 

 

 

2017

 

 

2018

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

504,468

 

 

$

333,903

 

Accounts receivable, net

 

 

693,085

 

 

 

691,347

 

Prepaid expenses and other current assets

 

 

236,342

 

 

 

207,334

 

Total current assets

 

$

1,433,895

 

 

$

1,232,584

 

Property, plant and equipment, net

 

 

207,030

 

 

 

202,669

 

Deferred tax assets

 

 

76,929

 

 

 

88,278

 

Investment in equity affiliates

 

 

886

 

 

 

834

 

Intangible assets, net

 

 

131,590

 

 

 

120,624

 

Goodwill

 

 

1,337,122

 

 

 

1,311,361

 

Contract cost assets

 

 

 

 

 

162,178

 

Other assets

 

 

262,169

 

 

 

147,550

 

Total assets

 

$

3,449,621

 

 

$

3,266,078

 

Liabilities and equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Short-term borrowings

 

$

170,000

 

 

$

215,000

 

Current portion of long-term debt

 

 

39,226

 

 

 

39,249

 

Accounts payable

 

 

15,050

 

 

 

20,942

 

Income taxes payable

 

 

30,026

 

 

 

54,513

 

Accrued expenses and other current liabilities

 

 

584,482

 

 

 

483,241

 

Total current liabilities

 

$

838,784

 

 

$

812,945

 

Long-term debt, less current portion

 

 

1,006,687

 

 

 

987,314

 

Deferred tax liabilities

 

 

6,747

 

 

 

7,036

 

Other liabilities

 

 

168,609

 

 

 

162,358

 

Total liabilities

 

$

2,020,827

 

 

$

1,969,653

 

Redeemable non-controlling interest

 

 

4,750

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

Preferred shares, $0.01 par value, 250,000,000 authorized, none issued

 

 

 

 

 

 

Common shares, $0.01 par value, 500,000,000 authorized, 192,825,207 and

   189,876,061 issued and outstanding as of December 31, 2017 and

   June 30, 2018, respectively

 

 

1,924

 

 

 

1,895

 

Additional paid-in capital

 

 

1,421,368

 

 

 

1,438,072

 

Retained earnings

 

 

355,982

 

 

 

338,120

 

Accumulated other comprehensive income (loss)

 

 

(355,230

)

 

 

(481,662

)

Total equity

 

$

1,424,044

 

 

$

1,296,425

 

Total liabilities, redeemable non-controlling interest and equity

 

$

3,449,621

 

 

$

3,266,078

 

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,

 

 

 

20176

 

 

2018

 

 

20176

 

 

2018

 

Net revenues

 

$

670,697

 

 

$

728,561

 

 

$

1,293,692

 

 

$

1,417,473

 

Cost of revenue

 

 

414,508

 

 

 

462,898

 

 

 

797,845

 

 

 

907,222

 

Gross profit

 

$

256,189

 

 

$

265,663

 

 

$

495,847

 

 

$

510,251

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

167,758

 

 

 

176,166

 

 

 

328,616

 

 

 

347,275

 

Amortization of acquired intangible assets

 

 

8,387

 

 

 

9,826

 

 

 

15,629

 

 

 

19,762

 

Other operating (income) expense, net

 

 

(915

)

 

 

149

 

 

 

(8,453

)

 

 

(69

)

Income from operations

 

$

80,959

 

 

$

79,522

 

 

$

160,055

 

 

$

143,283

 

Foreign exchange gains (losses), net

 

 

1,913

 

 

 

2,805

 

 

 

(3,000

)

 

 

7,603

 

Interest income (expense), net

 

 

(9,850

)

 

 

(10,407

)

 

 

(15,343

)

 

 

(18,507

)

Other income (expense), net

 

 

11,560

 

 

 

9,748

 

 

 

12,113

 

 

 

25,298

 

Income before equity-method investment activity,

   net and income tax expense

 

$

84,582

 

 

$

81,668

 

 

$

153,825

 

 

$

157,677

 

Equity-method investment activity, net

 

 

(9

)

 

 

(15

)

 

 

(4,567

)

 

 

(15

)

Income before income tax expense

 

$

84,573

 

 

$

81,653

 

 

$

149,258

 

 

$

157,662

 

Income tax expense

 

 

15,471

 

 

 

17,079

 

 

 

27,716

 

 

 

29,154

 

Net income

 

$

69,102

 

 

$

64,574

 

 

$

121,542

 

 

$

128,508

 

Net loss (income) attributable to redeemable non-controlling interest

 

 

(156

)

 

 

 

 

 

742

 

 

 

761

 

Net income attributable to Genpact Limited

   shareholders

 

$

68,946

 

 

$

64,574

 

 

$

122,284

 

 

$

129,269

 

Net income available to Genpact Limited common shareholders

 

$

68,946

 

 

$

64,574

 

 

$

122,284

 

 

$

129,269

 

Earnings per common share attributable to Genpact

   Limited common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.36

 

 

$

0.34

 

 

$

0.63

 

 

$

0.68

 

Diluted

 

$

0.36

 

 

$

0.33

 

 

$

0.62

 

 

$

0.66

 

Weighted average number of common shares used in

   computing earnings per common share attributable to

   Genpact Limited common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

191,469,593

 

 

 

190,132,664

 

 

 

195,269,561

 

 

 

191,474,645

 

Diluted

 

 

193,732,406

 

 

 

193,365,974

 

 

 

198,194,172

 

 

 

194,827,272

 


GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

 

 

Six months ended June 30,

 

 

 

2017

 

 

2018

 

Operating activities

 

 

 

 

 

 

 

 

Net income attributable to Genpact Limited shareholders

 

$

122,284

 

 

$

129,269

 

Net loss attributable to redeemable non-controlling interest

 

 

(742

)

 

 

(761

)

Net income

 

$

121,542

 

 

$

128,508

 

Adjustments to reconcile net income to net cash provided by (used for)

   operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

27,312

 

 

 

31,613

 

Amortization of debt issuance costs

 

 

877

 

 

 

979

 

Amortization of acquired intangible assets

 

 

15,629

 

 

 

19,762

 

Write-down of intangible assets and property, plant and equipment

 

 

 

 

 

850

 

Reserve for doubtful receivables

 

 

1,793

 

 

 

1,347

 

Unrealized loss (gain) on revaluation of foreign currency asset/liability

 

 

2,956

 

 

 

(7,350

)

Equity-method investment activity, net

 

 

4,567

 

 

 

15

 

Stock-based compensation expense

 

 

12,351

 

 

 

18,724

 

Deferred income taxes

 

 

(5,260

)

 

 

(4,194

)

Others, net

 

 

(4,816

)

 

 

294

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

Increase in accounts receivable

 

 

(1,958

)

 

 

(4,548

)

Increase in prepaid expenses, other current assets, contract cost assets and other assets

 

 

(35,248

)

 

 

(71,559

)

Increase in accounts payable

 

 

1,624

 

 

 

6,289

 

Decrease in accrued expenses, other current liabilities and other liabilities

 

 

(52,022

)

 

 

(96,965

)

Increase in income taxes payable

 

 

25,977

 

 

 

25,719

 

Net cash provided by operating activities

 

$

115,324

 

 

$

49,484

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(29,350

)

 

 

(37,703

)

Payment for internally generated intangible assets (including intangibles under

   development)

 

 

(8,950

)

 

 

(11,544

)

Proceeds from sale of property, plant and equipment

 

 

566

 

 

 

309

 

Investment in equity affiliates

 

 

(496

)

 

 

 

Payment for business acquisitions, net of cash acquired

 

 

(207,181

)

 

 

(728

)

Payment for purchase of redeemable non-controlling interest

 

 

 

 

 

(4,730

)

Net cash used for investing activities

 

$

(245,411

)

 

$

(54,396

)

Financing activities

 

 

 

 

 

 

 

 

Repayment of capital lease obligations

 

 

(1,106

)

 

 

(1,108

)

Payment of debt issuance costs

 

 

(1,481

)

 

 

 

Proceeds from long-term debt

 

 

350,000

 

 

 

 

Repayment of long-term debt

 

 

(20,000

)

 

 

(20,000

)

Proceeds from short-term borrowings

 

 

230,000

 

 

 

105,000

 

Repayment of short-term borrowings

 

 

(185,000

)

 

 

(60,000

)

Proceeds from issuance of common shares under stock-based compensation

   plans

 

 

10,080

 

 

 

9,388

 

Payment for net settlement of stock-based awards

 

 

(9,949

)

 

 

(14,229

)

Payment of earn-out/deferred consideration

 

 

(1,287

)

 

 

(1,476

)

Dividend paid

 

 

(23,515

)

 

 

(28,648

)

Payment for stock repurchased and retired

 

 

(219,784

)

 

 

(130,103

)

Payment for expenses related to stock purchase

 

 

(16

)

 

 

(82

)

Net cash provided by (used for) financing activities

 

$

127,942

 

 

$

(141,258

)

Effect of exchange rate changes

 

 

20,586

 

 

 

(24,395

)

Net increase (decrease) in cash and cash equivalents

 

 

(2,145

)

 

 

(146,170

)

Cash and cash equivalents at the beginning of the period

 

 

422,623

 

 

 

504,468

 

Cash and cash equivalents at the end of the period

 

$

441,064

 

 

$

333,903

 

Supplementary information

 

 

 

 

 

 

 

 

Cash paid during the period for interest

 

$

10,648

 

 

$

21,808

 

Cash paid during the period for income taxes

 

$

28,649

 

 

$

34,809

 

Property, plant and equipment acquired under capital lease obligations

 

$

1,485

 

 

$

668

 

Non-GAAP Financial Measures to GAAP 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 attributable to shareholders of Genpact Limited, or adjusted income from operations;
  • Adjusted income from operations margin;
  • Adjusted diluted earnings per share attributable to shareholders of Genpact Limited, or adjusted diluted earnings per share; and
  • Revenue 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.

Prior to July 2012, Genpact’s management used financial statements that excluded significant acquisition-related expenses, amortization of related acquired intangibles, and amortization of acquired intangibles at the company’s formation in 2004 for its internal management reporting, budgeting and decision making purposes, including comparing Genpact’s operating results to that of its competitors. However, considering Genpact’s frequent 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 reporting 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. Additionally, in its calculations of such non-GAAP financial measures, Genpact’s management has adjusted other income and expenses, certain gains, losses and impairment charges attributable to equity-method investments, and gains or losses attributable to non-controlling interests because management believes that the Company’s results after taking into account these adjustments more accurately reflect the Company’s ongoing operations. 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, thereby facilitating period-to-period comparisons of our 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 and income from operations 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 and amortization and impairment of acquired intangibles. 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 from GAAP for the three and six months ended June 30, 2017 and 2018:

Reconciliation of Adjusted Income from Operations and Adjusted Income from Operations Margin
(Unaudited)
(In thousands)

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

Income from operations

 

$

80,959

 

 

$

79,522

 

 

$

160,055

 

 

$

143,283

 

Add: Stock-based compensation

 

 

7,365

 

 

 

10,937

 

 

 

12,351

 

 

 

18,724

 

Add: Amortization of acquired intangible assets

 

 

7,848

 

 

 

9,431

 

 

 

14,557

 

 

 

18,971

 

Add: Acquisition-related expenses

 

 

2,969

 

 

 

 

 

 

3,391

 

 

 

 

Add: Other income (expense), net

 

 

11,560

 

 

 

9,748

 

 

 

12,113

 

 

 

25,298

 

Less: Equity-method investment activity, net

 

 

(9

)

 

 

(15

)

 

 

(4,567

)

 

 

(15

)

Add: Net loss (income) attributable to redeemable non-

   controlling interest

 

 

(156

)

 

 

 

 

 

742

 

 

 

761

 

Adjusted income from operations

 

$

110,536

 

 

$

109,623

 

 

$

198,642

 

 

$

207,022

 

Income from operations margin

 

 

12.1%


 

 

10.9%


 

 

12.4%


 

 

10.1%


Adjusted income from operations margin

 

 

16.5%


 

 

15.0%


 

 

15.4%


 

 

14.6%



Reconciliation of Adjusted Diluted EPS7
(Unaudited)
(Per share data)

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

Diluted EPS

 

$

0.36

 

 

$

0.33

 

 

$

0.62

 

 

$

0.66

 

Add: Stock-based compensation

 

 

0.04

 

 

 

0.06

 

 

 

0.06

 

 

 

0.10

 

Add: Amortization of acquired intangible assets

 

 

0.04

 

 

 

0.05

 

 

 

0.07

 

 

 

0.10

 

Add: Acquisition-related expenses

 

 

0.02

 

 

 

 

 

 

0.02

 

 

 

 

Less: Tax impact on stock-based compensation

 

 

(0.01

)

 

 

(0.01

)

 

 

(0.02

)

 

 

(0.03

)

Less: Tax impact on amortization of acquired intangibles

 

 

(0.01

)

 

 

(0.01

)

 

 

(0.02

)

 

 

(0.02

)

Less: Tax impact on acquisition-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted diluted EPS

 

$

0.43

 

 

$

0.41

 

 

$

0.73

 

 

$

0.80

 

The following tables show the reconciliation of forward-looking non-GAAP financial measures from GAAP for the year ending December 31, 2018:

Reconciliation of Outlook for Adjusted Income from Operations Margin
(Unaudited)

 

 

Year ending

December 31, 2018

 

Income from operations margin

 

 

11.7%


Add: Estimated stock-based compensation

 

 

1.6%


Add: Estimated amortization of acquired intangible assets

 

 

1.2%


Add: Estimated acquisition-related expenses

 

 

0.1%


Add: Estimated other income (expense), net

 

 

1.2%


Less: Estimated equity-method investment activity, net

 

 

 

Adjusted income from operations margin

 

 

15.8%



Reconciliation of Outlook for Adjusted Diluted EPS8
(Unaudited)
(Per share data)

 

 

Year ending December 31, 2018

 

 

 

Lower

 

 

Upper

 

Diluted EPS

 

$

1.41

 

 

$

1.45

 

Add: Estimated stock-based compensation

 

 

0.24

 

 

 

0.24

 

Add: Estimated amortization of acquired intangible assets

 

 

0.18

 

 

 

0.18

 

Add: Estimated acquisition-related expenses

 

 

0.01

 

 

 

0.01

 

Less: Estimated tax impact on stock-based compensation

 

 

(0.08

)

 

 

(0.08

)

Less: Estimated tax impact on amortization of acquired intangibles

 

 

(0.05

)

 

 

(0.05

)

Less: Estimated tax impact on acquisition-related expenses

 

 

 

 

 

 

Adjusted diluted EPS

 

$

1.72

 

 

$

1.76

 


  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 and adjusted diluted earnings per share is attached to this release.
  3. Adjusted income from operations and adjusted income from operations margin are non-GAAP measures. A reconciliation of GAAP income from operations and adjusted income from operations and a reconciliation of GAAP income from operations margin and adjusted income from operations margin are attached to this release.
  4. Adjusted income from operations margin is a non-GAAP measure.  A reconciliation of the outlook for GAAP income from operations margin and adjusted income from operations margin is attached to this release.
  5. Adjusted diluted earnings per share is a non-GAAP measure.  A reconciliation of the outlook for GAAP diluted earnings per share and adjusted diluted earnings per share is attached to this release.
  6. Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018.
  7. Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.
  8. Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.