The following is a summary of the Cognizant Technology Solutions Corporation (CTSH) Q1 2024 Earnings Call Transcript:
Financial Performance:
Cognizant reported Q1 revenue of $4.8 billion, showing a decline of 1% year-over-year.
Adjusted operating margin expanded 50 basis points to 15.1%, driven by cost optimization strategy.
Attrition in technology services improved to 13.1%, a decline of 10% YoY.
Q1 bookings on a trailing 12-month basis were $25.9 billion, an increase of 1% year-over-year.
The company signed 8 contracts, each with a total contract value of over $100 million.
Business Progress:
Cognizant has seen increased demand for AI services across customer and employee experience, content summarization insights, and content generation.
Cognizant continues to invest in its Synapse skilling program with 25,000 developers being trained on the use of GitHub Copilot.
Promotion of responsible AI usage marked by the awarding of $70 million in philanthropic funds since 2018 to global scaling programs for underrepresented communities.
Reported strong deal momentum in Q1 2024, with contracts signed with global retail brands and flavor leader McCormick & Company.
Cognizant anticipates continuous momentum with large deals throughout 2024, backed by the strong pipeline built in 2023.
Actively tracking total contract value, size and duration of the deals, ACV for this year and the next year, as well as the pyramid and capability set attached.
The company noted potential growth in the Banking and Financial Services industry based on their restructured teams and new offerings.
More details: Cognizant IR
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