Company: G
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001398659-25-000035
Chunk: 99

Company: Genpact LTD
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 99
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 primarily due to (i) an increase in our operational headcount to support revenue growth, (ii) wage inflation, (iii) higher infrastructure expenses and (iv) increased spending on professional services. This increase was partially offset by (i) lower depreciation and amortization expense, (ii) lower stock-based compensation expense and (iii) lower travel related expenses in 2024 compared to 2023.

Gross margin.  Our gross margin increased from 35.1% in 2023 to 35.5% in 2024. The increase in gross margin was primarily due to improved operating leverage in 2024 compared to 2023.

Selling, general and administrative (SG&A) expenses.  SG&A expenses as a percentage of total net revenues were 20.3% in 2024 and 20.4% 2023. SG&A expenses were $967.1 million in 2024, up $54.0 million, or 5.9%, from $913.1 million in 2023. The increase in SG&A expenses was primarily due to increased strategic investments in partnerships, alliances, and other sales and marketing capabilities, a higher allowance for credit losses, higher travel related expenses and wage inflation in 2024 compared to 2023. This increase was partially offset by lower stock-based compensation expense and improved G&A cost management in 2024 compared to 2023.

Amortization of acquired intangible assets.   Amortization of acquired intangible assets was $26.5 million in 2024, down $5.0 million, or 15.9%, from $31.5 million in 2023. This decrease was primarily due to the completion of useful lives of intangibles acquired in prior periods.

Other operating (income) expense, net. Other operating income (net of expense) was $5.6 million in 2024, compared to $4.7 million in 2023. This change was primarily due to the receipt of $1.5 million upon the redemption of a loan note associated with the sale of a business classified as held for sale and the waiver by a vendor of a liability in 2024. Additionally, a gain of $4.9 million was recorded in 2023 upon the successful termination of a lease that was abandoned as part of a restructuring we undertook in 2022. For additional information, see Note 7—“Assets and liabilities held for sale” and Note 26