Company: G
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001398659-25-000059
Chunk: 83

Company: Genpact LTD
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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 million in the first quarter of 2025, up $51.2 million, or 7.0%, from $734.8 million in the first quarter of 2024. The increase in cost of revenue in the first quarter of 2025 compared to the first quarter of 2024 was primarily due to (i) an increase in our operational headcount to support revenue growth, (ii) wage inflation, (iii) increased spending on professional services, and (iv) higher stock-based compensation expense in the first quarter of 2025 compared to the first quarter of 2024.

Gross margin. Our gross margin increased from 35.0% in the first quarter of 2024 to 35.3% in the first quarter of 2025. The increase in gross margin was primarily due to improved operating leverage in the first quarter of 2025 compared to the first quarter of 2024.

Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues decreased from 20.8% in the first quarter of 2024 to 19.8% in the first quarter of 2025. SG&A expenses were $241.1 million in the first quarter of 2025, up $6.1 million, or 2.6%, from $235.0 million in the first quarter of 2024. The increase was primarily driven by higher stock-based compensation expense, increased strategic investments in partnerships, alliances, and other sales and marketing capabilities as well as wage inflation in the first quarter of 2025 compared to the first quarter of 2024. This increase was partially offset by improved operating leverage and a lower allowance for credit losses in the first quarter of 2025 compared to the first quarter of 2024.

Amortization of acquired intangible assets. Amortization of acquired intangible assets was $4.3 million in the first quarter of 2025, down $2.6 million, or 37.6%, from $6.9 million in the first quarter of 2024. This decrease was primarily due to the completion of useful lives of intangible assets acquired in prior periods.

Other operating (income) expense, net. Other operating income (net of expense) was $0.1 million in the first quarter of 2025, compared to $5.5 million in the first quarter of 2024. The decline in other operating income (net of expense) was primarily