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Mar 31, 2024
ExlService Q1 2024 Earnings Report
Reported a revenue increase and adjusted diluted EPS growth.
Key Takeaways
EXL reported a solid start to the year with a 9% increase in both revenue and adjusted diluted EPS. The company's data and AI-led strategy, combined with deep domain expertise, continues to resonate with clients and fuel above-industry average growth rates. Due to this momentum, EXL has raised the bottom of its range for both revenue and EPS guidance for the year.
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.
Q1 Diluted EPS (GAAP) of $0.29, down 3.3% from $0.30 in Q1 of 2023.
Q1 Adjusted Diluted EPS (Non-GAAP) of $0.38, up 8.9% from $0.35 in Q1 of 2023.
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.
ExlService
ExlService
ExlService Revenue by Segment
Revenue by Segment
Insurance Revenue
CapyFin.comHealthcare and Life Sciences Revenue
CapyFin.comBanking, Capital Markets & DI Revenue
CapyFin.comInternational Growth Mkts Revenue
CapyFin.com Forward Guidance
EXL now expects revenue to be in the range of $1.79 billion to $1.82 billion, representing 10% to 12% year-over-year growth. Adjusted diluted earnings per share for 2024 are expected to be in the range of $1.58 to $1.62, representing growth of 10% to 13% over the prior year.
Positive Outlook
- 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.
- The company's data and AI-led strategy
- Deep domain expertise
- Raising the bottom of the range for both revenue and EPS
Challenges Ahead
- Cautious on the macro-economic environment
- Ability to maintain and grow client demand
- Ability to hire and retain sufficiently trained employees
- Ability to accurately estimate and/or manage costs
- Rising interest rates, rising inflation and recessionary economic trends
Revenue & Expenses
Visualization of income flow from segment revenue to net income