Press Release

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Genpact Reports Third Quarter 2018 Results

Revenues of $748 Million, Up 6% (~6% on a constant currency basis)1
Global Client BPO Revenues of $586 Million, Up 8% (~9% on a constant currency basis)
Diluted EPS of $0.38; Adjusted Diluted EPSof $0.48

NEW YORK, November 6, 2018 — Genpact Limited (NYSE: G), a global professional services firm focused on delivering digital transformation, today announced financial results for the third quarter ended September 30, 2018.

“Overall, Genpact delivered solid third quarter results and we are on track to meet our 2018 full-year outlook.  More importantly, the momentum we continue to see in our pipeline and bookings sets us up on a trajectory to drive strong top line growth in our Global Client BPO and GE businesses in 2019 and beyond,” said “Tiger” Tyagarajan, Genpact’s president and CEO.  “It is very clear that our deep domain and process depth coupled with our expertise in digital and data analytics is differentiating us in the marketplace and is the key reason why clients are increasingly choosing Genpact as their strategic transformation partner.”

Key Financial Results – Third Quarter 2018

  • Total revenue was $748 million, up 6% year-over-year (up ~6% on a constant currency basis).
  • Income from operations was $94 million, down 4% year-over-year, with a corresponding margin of 12.6%.  Adjusted income from operations was $124 million, up 7% year-over-year, with a corresponding margin of 16.6%.3
  • Diluted earnings per share were $0.38, flat year-over-year, and adjusted diluted earnings per share were $0.48, up 5% year-over-year.

Revenue Details – Third Quarter 2018

Total Company

  • Total BPO revenue was $623 million, up 7% year-over-year, representing approximately 83% of total revenues. 
  • Total IT revenue was $125 million, flat year-over-year, representing approximately 17% of total revenues.

Global Clients

  • Revenue from Global Clients was $683 million, up 7% year-over-year (up ~8% on a constant currency basis), representing approximately 91% of total revenues.
  • Global Client BPO revenue was $586 million, up 8% year-over-year (up ~9% on a constant currency basis).
  • Global Client IT revenue was $98 million, up 2% year-over-year.

GE

  • Revenue from GE was $65 million, down 11% year-over-year, representing approximately 9% of total revenues.  GE revenue was flat sequentially.
  • GE BPO revenue was $37 million, down 13% year-over-year.
  • GE IT revenue was $27 million, down 7% year-over-year.

Cash Flow from Operations

  • Cash generated from operations was $153 million in the third quarter of 2018, compared to $148 million in the third quarter of 2017.

2018 Outlook
Genpact continues to expect:

  • Total revenue for the full-year 2018 of $2.95 to $3.01 billion, representing growth of 8% to 10% both on an as-reported and constant currency basis.
  • Global Client revenue growth in the range of 9.5% to 11.5%, both on an as-reported and constant currency basis.
  • Adjusted income from operations margin4 of approximately 15.8%.

Genpact now expects:

  • Adjusted diluted EPS5 to be at the high end of the prior $1.72 to $1.76 range.

Conference Call to Discuss Financial Results

Genpact’s management will host an hour-long conference call beginning at 4:30 p.m. ET on November 6, 2018 to discuss the company’s performance for the third quarter ended September 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, 4276952.

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 September 30,

 

 

 

2017

 

 

2018

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

504,468

 

 

$

401,230

 

Accounts receivable, net

 

 

693,085

 

 

 

710,045

 

Prepaid expenses and other current assets

 

 

236,342

 

 

 

210,006

 

Total current assets

 

$

1,433,895

 

 

$

1,321,281

 

Property, plant and equipment, net

 

 

207,030

 

 

 

211,382

 

Deferred tax assets

 

 

76,929

 

 

 

94,212

 

Investment in equity affiliates

 

 

886

 

 

 

825

 

Intangible assets, net

 

 

131,590

 

 

 

135,028

 

Goodwill

 

 

1,337,122

 

 

 

1,386,408

 

Contract cost assets

 

 

 

 

160,110

 

Other assets

 

262,169

 

 

 

147,383

 

Total assets

 

$

3,449,621

 

 

$

3,456,629

 

Liabilities and equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Short-term borrowings

 

$

170,000

 

 

$

330,000

 

Current portion of long-term debt

 

 

39,226

 

 

 

33,476

 

Accounts payable

 

 

15,050

 

 

 

14,436

 

Income taxes payable

 

 

30,026

 

 

 

73,567

 

Accrued expenses and other current liabilities

 

 

584,482

 

 

 

554,708

 

Total current liabilities

 

$

838,784

 

 

$

1,006,187

 

Long-term debt, less current portion

 

 

1,006,687

 

 

 

983,884

 

Deferred tax liabilities

 

 

6,747

 

 

 

6,512

 

Other liabilities

 

 

168,609

 

 

 

175,028

 

Total liabilities

 

$

2,020,827

 

 

$

2,171,611

 

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 190,053,249 issued and outstanding as of

   December 31, 2017 and September 30, 2018, respectively

 

 

1,924

 

 

 

1,896

 

Additional paid-in capital

 

 

1,421,368

 

 

 

1,453,674

 

Retained earnings

 

 

355,982

 

 

 

397,470

 

Accumulated other comprehensive income (loss)

 

 

(355,230

)

 

 

(568,022

)

Total equity

 

$

1,424,044

 

 

$

1,285,018

 

Total liabilities, redeemable non-controlling interest and equity

 

$

3,449,621

 

 

$

3,456,629

 

GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data and share count)

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

20176

 

 

2018

 

 

20176

 

 

2018

 

Net revenues

 

$

708,824

 

 

$

747,978

 

 

$

2,002,516

 

 

$

2,165,451

 

Cost of revenue

 

 

428,790

 

 

 

481,412

 

 

 

1,226,635

 

 

 

1,388,634

 

Gross profit

 

$

280,034

 

 

$

266,566

 

 

$

775,881

 

 

$

776,817

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

   expenses

 

 

172,028

 

 

 

168,010

 

 

 

500,644

 

 

 

515,285

 

Amortization of acquired intangible

   assets

 

 

10,151

 

 

 

9,372

 

 

 

25,780

 

 

 

29,134

 

Other operating (income) expense, net

 

 

(64

)

 

 

(4,844

)

 

 

(8,517

)

 

 

(4,913

)

Income from operations

 

$

97,919

 

 

$

94,028

 

 

$

257,974

 

 

$

237,311

 

Foreign exchange gains (losses), net

 

 

5,045

 

 

 

7,450

 

 

 

2,045

 

 

 

15,053

 

Interest income (expense), net

 

 

(8,724

)

 

 

(9,139

)

 

 

(24,067

)

 

 

(27,646

)

Other income (expense), net

 

 

(4,498

)

 

 

5,385

 

 

 

7,615

 

 

 

30,683

 

Income before equity-method investment

   activity, net and income tax expense

 

$

89,742

 

 

$

97,724

 

 

$

243,567

 

 

$

255,401

 

Equity-method investment activity, net

 

 

 

 

(7

)

 

 

(4,567

)

 

 

(22

)

Income before income tax expense

 

$

89,742

 

 

$

97,717

 

 

$

239,000

 

 

$

255,379

 

Income tax expense

 

 

16,581

 

 

 

24,114

 

 

 

44,297

 

 

 

53,268

 

Net income

 

$

73,161

 

 

$

73,603

 

 

$

194,703

 

 

$

202,111

 

Net loss attributable to redeemable non-

   controlling interest

 

 

584

 

 

 

 

 

1,326

 

 

 

761

 

Net income attributable to Genpact

   Limited shareholders

 

$

73,745

 

 

$

73,603

 

 

$

196,029

 

 

$

202,872

 

Net income available to Genpact Limited

   common shareholders

 

$

73,745

 

 

$

73,603

 

 

$

196,029

 

 

$

202,872

 

Earnings per common share attributable

   to Genpact Limited common

   shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.38

 

 

$

0.39

 

 

$

1.01

 

 

$

1.06

 

Diluted

 

$

0.38

 

 

$

0.38

 

 

$

0.99

 

 

$

1.04

 

Weighted average number of common

   shares used in computing earnings per

   common share attributable to Genpact

   Limited common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

192,124,366

 

 

190,024,924

 

 

194,221,162

 

 

190,991,405

 

Diluted

 

194,947,699

 

 

193,115,769

 

 

197,112,014

 

 

194,256,771

 


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

 

 

Nine months ended September 30,

 

 

 

2017

 

 

2018

 

Operating activities

 

 

 

 

 

 

 

 

Net income attributable to Genpact Limited shareholders

 

$

196,029

 

 

$

202,872

 

Net loss attributable to redeemable non-controlling interest

 

 

(1,326

)

 

 

(761

)

Net income

 

$

194,703

 

 

$

202,111

 

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

   operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

42,271

 

 

 

47,612

 

Amortization of debt issuance costs (including loss on extinguishment of debt)

 

 

1,382

 

 

 

3,546

 

Amortization of acquired intangible assets

 

 

25,780

 

 

 

29,134

 

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

 

 

 

 

1,538

 

Reserve for doubtful receivables

 

 

4,871

 

 

 

1,705

 

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

 

 

(9,296

)

 

 

(4,544

)

Equity-method investment activity, net

 

 

4,567

 

 

 

22

 

Stock-based compensation expense

 

 

22,402

 

 

 

32,158

 

Deferred income taxes

 

 

(4,589

)

 

 

(1,768

)

Provision for expected loss on divestiture

 

 

5,195

 

 

 

Others, net

 

 

(5,261

)

 

255

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

Increase in accounts receivable

 

 

(30,687

)

 

 

(12,946

)

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

   other assets

 

 

(56,230

)

 

 

(96,300

)

Decrease in accounts payable

 

 

(462

)

 

 

(913

)

Increase (decrease) in accrued expenses, other current liabilities and

   other liabilities

 

 

27,723

 

 

 

(44,602

)

Increase in income taxes payable

 

 

41,324

 

 

 

45,798

 

Net cash provided by operating activities

 

$

263,693

 

 

$

202,806

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(47,510

)

 

 

(68,027

)

Payment for internally generated intangible assets (including intangibles

   under development)

 

 

(8,950

)

 

 

(19,397

)

Proceeds from sale of property, plant and equipment

 

 

1,648

 

 

 

499

 

Investment in equity affiliates

 

 

(496

)

 

 

 

Payment for business acquisitions, net of cash acquired

 

 

(277,549

)

 

 

(108,105

)

Payment for purchase of redeemable non-controlling interest

 

 

 

 

(4,730

)

Net cash used for investing activities

 

$

(332,857

)

 

$

(199,760

)

Financing activities

 

 

 

 

 

 

 

 

Repayment of capital lease obligations

 

 

(2,199

)

 

 

(1,954

)

Payment of debt issuance costs

 

 

(1,481

)

 

 

(4,293

)

Proceeds from long term debt

 

 

350,000

 

 

 

129,186

 

Repayment of long-term debt

 

 

(30,000

)

 

 

(157,686

)

Proceeds from short-term borrowings

 

 

275,000

 

 

 

225,000

 

Repayment of short-term borrowings

 

 

(275,000

)

 

 

(65,000

)

Proceeds from issuance of common shares under stock-based

   compensation plans

 

 

12,834

 

 

 

12,275

 

Payment for net settlement of stock-based awards

 

 

(10,296

)

 

 

(14,947

)

Payment of earn-out/deferred consideration

 

 

(6,219

)

 

 

(1,559

)

Dividend paid

 

 

(35,096

)

 

 

(42,901

)

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

 

$

57,743

 

 

$

(52,064

)

Effect of exchange rate changes

 

 

28,853

 

 

 

(54,220

)

Net increase (decrease) in cash and cash equivalents

 

 

(11,421

)

 

 

(49,018

)

Cash and cash equivalents at the beginning of the period

 

 

422,623

 

 

 

504,468

 

Cash and cash equivalents at the end of the period

 

$

440,055

 

 

$

401,230

 

Supplementary information

 

 

 

 

 

 

 

 

Cash paid during the period for interest

 

$

23,414

 

 

$

35,082

 

Cash paid during the period for income taxes

 

$

46,935

 

 

$

54,920

 

Property, plant and equipment acquired under capital lease obligations

 

$

1,944

 

 

$

1,832

 

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 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 the Company’s 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 nine months ended September 30, 2017 and 2018:

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

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

Income from operations

 

$

97,919

 

 

$

94,028

 

 

$

257,974

 

 

$

237,311

 

Add: Stock-based compensation

 

 

10,051

 

 

 

13,434

 

 

 

22,402

 

 

 

32,158

 

Add: Amortization of acquired

   intangible assets

 

 

9,520

 

 

 

8,988

 

 

 

24,077

 

 

 

27,959

 

Add: Acquisition-related expenses

 

 

2,364

 

 

 

2,362

 

 

 

5,755

 

 

 

2,362

 

Add: Other income (expense), net

 

 

(4,498

)

 

 

5,385

 

 

 

7,615

 

 

 

30,683

 

Less: Equity-method investment

   activity, net

 

 

 

 

(7

)

 

 

(4,567

)

 

 

(22

)

Add: Net loss (income) attributable to

   redeemable non-controlling interest

 

 

584

 

 

 

 

 

1,326

 

 

 

761

 

Adjusted income from operations

 

$

115,940

 

 

$

124,190

 

 

$

314,582

 

 

$

331,212

 

Income from operations margin

 

 

13.8

%

 

 

12.6

%

 

 

12.9

%

 

 

11.0

%

Adjusted income from operations

   margin

 

 

16.4

%

 

 

16.6

%

 

 

15.7

%

 

 

15.3

%

 

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

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

Diluted EPS

 

$

0.38

 

 

$

0.38

 

 

$

0.99

 

 

$

1.04

 

Add: Stock-based compensation

 

 

0.05

 

 

 

0.07

 

 

 

0.11

 

 

 

0.17

 

Add: Amortization of acquired

   intangible assets

 

 

0.05

 

 

 

0.05

 

 

 

0.12

 

 

 

0.14

 

Add: Acquisition-related expenses

 

 

0.01

 

 

 

0.01

 

 

 

0.03

 

 

 

0.01

 

Less: Tax impact on stock-based

   compensation

 

 

(0.02

)

 

 

(0.02

)

 

 

(0.03

)

 

 

(0.05

)

Less: Tax impact on amortization of

   acquired intangibles

 

 

(0.02

)

 

 

(0.01

)

 

 

(0.04

)

 

 

(0.04

)

Less: Tax impact on acquisition-related

   expenses

 

 

 

 

 

 

 

 

Adjusted diluted EPS

 

$

0.46

 

 

$

0.48

 

 

$

1.19

 

 

$

1.28

 

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

 

 

1.5

%

Add: Estimated amortization of acquired intangible assets

 

 

1.3

%

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

 

$

1.39

 

 

$

1.43

 

Add: Estimated stock-based compensation

 

 

0.24

 

 

 

0.24

 

Add: Estimated amortization of acquired intangible assets

 

 

0.19

 

 

 

0.19

 

Add: Estimated acquisition-related expenses

 

 

0.01

 

 

 

0.01

 

Less: Estimated tax impact on stock-based compensation

 

 

(0.07

)

 

 

(0.07

)

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 nine months ended September 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.