EXL Reports 2024 First Quarter Results

2024 First Quarter Revenue of $436.5 Million, up 9.0% year-over-year
Q1 Diluted EPS (GAAP) ⁽¹⁾ of $0.29, down 3.3% from $0.30 in Q1 of 2023
Q1 Adjusted Diluted EPS (Non-GAAP) ^{(1) (2)} of $0.38, up 8.9% from $0.35 in Q1 of 2023

NEW YORK, May 02, 2024 (GLOBE NEWSWIRE) -- ExlService Holdings, Inc. (NASDAQ: EXLS), a leading data analytics and digital operations and solutions company, today announced its financial results for the quarter ended March 31, 2024.

Rohit Kapoor, Chairman and Chief Executive Officer, said, “We are pleased with our first quarter results and solid start to the year, as we delivered revenue growth and adjusted diluted EPS growth of 9%. Our data and AI-led strategy, combined with our deep domain expertise, continues to resonate with our clients and fuel our above industry average growth rates. The consistent execution of our differentiated strategy has enabled us to continue our momentum into 2024.”

Maurizio Nicolelli, Chief Financial Officer, said, “While we remain cautious on the macro-economic environment, we are raising the bottom of our range for both revenue and EPS based on our solid momentum in the first quarter and current visibility for the remainder of the year. We now expect revenue to be in the range of $1.79 billion to $1.82 billion, up from our prior guidance of $1.78 billion to $1.82 billion. This represents 10% to 12% year-over-year growth on both a reported and constant currency basis. We now expect our adjusted diluted earnings per share for 2024 to be in the range of $1.58 to $1.62, up from our prior guidance of $1.56 to $1.62, representing growth of 10% to 13% over the prior year.”

• Prior period information has been adjusted to reflect the 5-for-1 forward stock split of our common stock effected in August 2023. See Note 19 – Capital Structure to consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023, for further details.
• Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.

Financial Highlights: First Quarter 2024

• Revenue for the quarter ended March 31, 2024, increased to $436.5 million compared to $400.6 million for the first quarter of 2023, an increase of 9.0% on a reported basis and 8.8% on a constant currency basis. Revenue increased by 5.4% sequentially on a reported basis and constant currency basis, from the fourth quarter of 2023.
  
  
• Operating income margin for the quarter ended March 31, 2024 was 14.1%, compared to 14.8% for the first quarter of 2023 and 13.1% for the fourth quarter of 2023. Adjusted operating income margin for the quarter ended March 31, 2024 was 18.9%, compared to 19.4% for the first quarter of 2023 and 17.8% for the fourth quarter of 2023.
• Diluted earnings per share for the quarter ended March 31, 2024 was $0.29, compared to $0.30 for the first quarter of 2023 and $0.24 for the fourth quarter of 2023. Adjusted diluted earnings per share for the quarter ended March 31, 2024 was $0.38, compared to $0.35, both for the first quarter of 2023 and the fourth quarter of 2023.

Business Highlights: First Quarter 2024

• Won 16 new clients in the first quarter of 2024, with 6 clients in the digital operations and solutions business and 10 clients in analytics.
• EXL named top performer and Leader among the 26 leading analytics and AI service providers in Everest Group’s Analytics and Artificial Intelligence (AI) Services Specialists PEAK Matrix® Assessment 2024.
• Held an AI in Action virtual customer symposium attended by over 2,300 clients, prospects, analysts, advisors and partners. The event highlighted the use of enterprise data to bridge the gap between strategy and operations and make AI real. A replay can be found here.
• Rohit Kapoor named chairman, Vikram Pandit transitioned to lead director; Thomas Bartlett appointed to EXL’s board of directors and will serve on the board’s audit committee and nominating and governance committee.
• Vikas Bhalla and Vivek Jetley named president of EXL in addition to their current roles of head of insurance and head of analytics, respectively.
• EXL entered into an accelerated share repurchase agreement to repurchase $125 million of the company’s common stock as part of its current $500 million stock repurchase program.

2024 Guidance

Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 83.50, U.K. pound sterling to U.S. dollar exchange rate of 1.27, U.S. dollar to the Philippine peso exchange rate of 57.50 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2024:

• Revenue of $1.79 billion to $1.82 billion, representing an increase of 10% to 12% on both a reported and constant currency basis from 2023.
• Adjusted diluted earnings per share of $1.58 to $1.62, representing an increase of 10% to 13% from 2023.

Conference Call

ExlService Holdings, Inc. will host a conference call on Thursday, May 2, 2024 at 10:00 A.M. ET to discuss the Company’s quarterly operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

Please note that there is a new system to access the live call-in order to ask questions. To join the live call, please register here. A dial-in and unique PIN will be provided to join the call. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

About ExlService Holdings, Inc.

EXL (NASDAQ: EXLS) is a leading data analytics and digital operations and solutions company. We partner with clients using a data and AI-led approach to reinvent business models, drive better business outcomes and unlock growth with speed. EXL harnesses the power of data, analytics, AI, and deep industry knowledge to transform operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media and retail, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have more than 55,000 employees spanning six continents. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, rising interest rates, rising inflation and recessionary economic trends, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

For a full view of EXL’s financial tables, click here