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Mar 31, 2020

ExlService Q1 2020 Earnings Report

Revenue increased slightly, but EPS saw significant growth.

Key Takeaways

ExlService Holdings, Inc. reported first-quarter revenues of $246 million, a 2.7% increase year-over-year. Diluted EPS was $0.65, up from $0.42 in the first quarter of 2019, and adjusted diluted EPS was $0.81, compared to $0.71 in the prior year.

Revenues for Q1 2020 increased to $246.0 million, up 2.7% year-over-year.

Q1 Diluted EPS (GAAP) was $0.65, up from $0.42 in Q1 2019.

Q1 Adjusted Diluted EPS (Non-GAAP) was $0.81, up from $0.71 in Q1 2019.

Won 10 new clients in the first quarter of 2020.

Total Revenue
$246M
Previous year: $240M
+2.7%
EPS
$0.16
Previous year: $0.14
+14.3%
Operating Margin
11.2%
Previous year: 7%
+60.0%
Gross Margin
33.9%
Gross Profit
$83.3M
Previous year: $82.3M
+1.2%
Cash and Equivalents
$225M
Previous year: $86.7M
+159.4%
Free Cash Flow
-$25.9M
Previous year: -$2.54M
+921.8%
Total Assets
$1.27B
Previous year: $1.18B
+7.2%

ExlService

ExlService

ExlService Revenue by Segment

Forward Guidance

For the second quarter of 2020, EXL expects a revenue decline of approximately 15% compared to the first quarter of 2020, and adjusted diluted EPS between $0.20 and $0.40.

Challenges Ahead

  • Revenue and profit visibility for the remainder of 2020 is subject to client demand.
  • Revenue and profit visibility for the remainder of 2020 is subject to the utilization rate of EXL's employees.
  • Revenue and profit visibility for the remainder of 2020 is subject to local and national guidelines for unlocking various global economies.
  • Second quarter of 2020 expects a revenue decline of approximately 15% compared to the first quarter of 2020 due to COVID-19 pandemic.
  • Adjusted diluted EPS between $0.20 and $0.40 for the second quarter of 2020

Revenue & Expenses

Visualization of income flow from segment revenue to net income