Q1 2024 Cognizant Technology Solutions Corp Earnings Call Transcript
Key Points
- Cognizant Technology Solutions Corp (CTSH) reported revenue growth that exceeded the high end of their guidance range.
- The company expanded its adjusted operating margin year-over-year by 50 basis points to 15.1%.
- Cognizant Technology Solutions Corp (CTSH) saw a significant reduction in voluntary attrition, with a 10 percentage point year-over-year decline.
- The company secured 8 large deals each with a total contract value (TCV) of $100 million or more, demonstrating strong deal momentum.
- Cognizant Technology Solutions Corp (CTSH) continues to invest in innovation and AI, including a strategic alliance with Shopify and Google Cloud to drive digital transformation.
- Cognizant Technology Solutions Corp (CTSH) experienced a revenue decline of 1% year-over-year, both as reported and in constant currency.
- There was softness in smaller deals in the range of $0 to $10 million TCV, reflecting the tight discretionary environment.
- The demand environment remains uncertain with geopolitical risks continuing to impact client spending priorities.
- Financial Services and Products and Resources segments saw declines, with Financial Services being more significantly impacted by weaker discretionary spending.
- The company incurred approximately $23 million of costs related to its NextGen optimization program, which negatively impacted its GAAP operating margin by approximately 50 basis points.
Ladies and gentlemen, welcome to the Cognizant Technology Solutions First Quarter 2024 Earnings Conference Call. (Operator Instructions)
I would now like to turn the conference over to Mr. Tyler Scott, Vice President, Investor Relations. Please go ahead, sir.
Thank you, operator, and good afternoon, everyone. By now, you should have received a copy of the earnings release and the investor supplement for the company's first quarter 2024 results. If you have not, copies are available on our website, cognizant.com. The speakers we have on today's call are Ravi Kumar, Chief Executive Officer; and Jatin Dalal, Chief Financial Officer.
Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are subject to the risks and uncertainties as described in the company's earnings release and other filings with the SEC. Additionally, during the call today,
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