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Mar 31, 2023

ExlService Q1 2023 Earnings Report

Reported strong first-quarter results with revenue growth and adjusted diluted EPS growth.

Key Takeaways

ExlService Holdings reported a strong first quarter with a 21.7% increase in revenue and a 22.5% increase in adjusted diluted EPS. The company's data-led strategy has expanded its market and generated a competitive advantage. Due to this strong momentum, EXL is increasing the revenue guidance for the full year 2023 to be in the range of $1.595 billion to $1.620 billion and adjusted diluted earnings per share guidance for 2023 to $6.75 to $6.90.

Revenue for the quarter ended March 31, 2023 increased to $400.6 million, up 21.7% year-over-year.

Q1 Diluted EPS (GAAP) was $1.51, up 41.1% from $1.07 in Q1 2022.

Q1 Adjusted Diluted EPS (Non-GAAP) was $1.74, up 22.5% from $1.42 in Q1 2022.

EXL is increasing its revenue and adjusted diluted earnings per share guidance for the full year 2023.

Total Revenue
$401M
Previous year: $329M
+21.7%
EPS
$0.35
Previous year: $0.28
+25.0%
Operating Margin
14.8%
Previous year: 13.4%
+10.4%
Gross Margin
37.2%
Previous year: 37%
+0.5%
Gross Profit
$149M
Previous year: $122M
+22.6%
Cash and Equivalents
$87.3M
Previous year: $107M
-18.1%
Free Cash Flow
$3.55M
Previous year: -$43M
-108.3%
Total Assets
$1.31B
Previous year: $1.27B
+2.7%

ExlService

ExlService

ExlService Revenue by Segment

Forward Guidance

Based on current visibility, EXL is providing the following guidance for the full year 2023: Revenue of $1.595 billion to $1.620 billion, representing an increase of 13% to 15% on both a reported and constant currency basis from 2022. Adjusted diluted earnings per share of $6.75 to $6.90, representing an increase of 12% to 15% from 2022.

Positive Outlook

  • Revenue of $1.595 billion to $1.620 billion, representing an increase of 13% to 15% on both a reported and constant currency basis from 2022.
  • Adjusted diluted earnings per share of $6.75 to $6.90, representing an increase of 12% to 15% from 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income