CHENNAI: IT major Cognizant enjoyed a quarter of firsts reporting its October-December 2021 quarter results on Thursday. The company beat street estimates on profitability, reporting a net income of $576 million for the quarter, up almost 80% from the same period last year. Quarterly revenue came in at $4.8 billion, up 14.5% in constant currency (CC) terms- highest quarterly revenue ever.
The full year 2021 revenue was also the highest ever at $18.5 billion, up 10%, Cognizant said. The company expects full-year 2022 revenue to be around $20-$20.5 billion- 8.5%-11.5% growth range in CC terms.
Attrition at the company moderated in the quarter with voluntary attrition at 31% on an annualized basis compared to 33% in the previous quarter.
Digital revenue grew 20% YoY in the quarter and made up 45% of the total revenue mix in the period. Cognizant’s headcount as of December 31 stood at 330,600 employees, up 14% year-over-year. Over 90% of Cognizant’s employees are in India.
“I’m proud of Cognizant’s broad-based progress over the past year. We successfully executed our strategy by meaningfully enhancing our digital portfolio, strengthening our international presence and helping our clients be successful,” Cognizant CEO Brian Humphries, said. “We enter 2022 with momentum and confidence that our talented employees position us to capture the substantial market opportunity,” he added.
“I am pleased to say that in recent years we have made meaningful progress in correcting our delivery pyramid by significantly increasing the number of college graduate hires onboarded in India. In 2021, we added a record 33,000 college graduate hires in India, up from 17,000 in 2020. In 2022, we plan to add approximately 50,000 in India,” Humphries said in the earnings call.
Financial Services revenue saw a recovery growing 18.8% in CC terms, including a 900 basis points owing to positive impact from the exit of a large customer engagement Samlink. Healthcare revenue grew 8.2%, led by life sciences. Products and resources revenue grew 18%, which included the benefit of recently completed acquisitions. Revenue from communications, media and technology segments grew13% in constant currency.
The full year 2021 revenue was also the highest ever at $18.5 billion, up 10%, Cognizant said. The company expects full-year 2022 revenue to be around $20-$20.5 billion- 8.5%-11.5% growth range in CC terms.
Attrition at the company moderated in the quarter with voluntary attrition at 31% on an annualized basis compared to 33% in the previous quarter.
Digital revenue grew 20% YoY in the quarter and made up 45% of the total revenue mix in the period. Cognizant’s headcount as of December 31 stood at 330,600 employees, up 14% year-over-year. Over 90% of Cognizant’s employees are in India.
“I’m proud of Cognizant’s broad-based progress over the past year. We successfully executed our strategy by meaningfully enhancing our digital portfolio, strengthening our international presence and helping our clients be successful,” Cognizant CEO Brian Humphries, said. “We enter 2022 with momentum and confidence that our talented employees position us to capture the substantial market opportunity,” he added.
“I am pleased to say that in recent years we have made meaningful progress in correcting our delivery pyramid by significantly increasing the number of college graduate hires onboarded in India. In 2021, we added a record 33,000 college graduate hires in India, up from 17,000 in 2020. In 2022, we plan to add approximately 50,000 in India,” Humphries said in the earnings call.
Financial Services revenue saw a recovery growing 18.8% in CC terms, including a 900 basis points owing to positive impact from the exit of a large customer engagement Samlink. Healthcare revenue grew 8.2%, led by life sciences. Products and resources revenue grew 18%, which included the benefit of recently completed acquisitions. Revenue from communications, media and technology segments grew13% in constant currency.
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