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Jun 30, 2020
ExlService Q2 2020 Earnings Report
Reported a decrease in revenue and EPS due to the impact of COVID-19, but exceeded expectations through a quick transition to a 'work-from-anywhere' model and cost management.
Key Takeaways
ExlService Holdings reported Q2 2020 results with revenues of $222.5 million, down 8.6% year-over-year, and a GAAP EPS of $0.24, down from $0.36 in Q2 2019. However, the company exceeded its revenue expectations and adjusted EPS guidance due to higher revenue and cost management amidst the COVID-19 pandemic. They are resuming guidance for 2020.
Revenues for Q2 2020 were $222.5 million, an 8.6% decrease year-over-year.
Q2 Diluted EPS (GAAP) was $0.24, down from $0.36 in Q2 2019.
Q2 Adjusted Diluted EPS (Non-GAAP) was $0.53, down from $0.74 in Q2 2019.
The company transitioned to a 'work-from-anywhere' model, meeting over 95% of client delivery needs.
ExlService
ExlService
ExlService Revenue by Segment
Revenue by Segment
Insurance Revenue
CapyFin.comHealthcare and Life Sciences Revenue
CapyFin.com Forward Guidance
EXL is providing revenue guidance of $922 million to $938 million, representing a reduction of 3.5% to 5.0% on a constant currency basis from 2019, and adjusted diluted earnings per share of $2.60 to $2.80.
Positive Outlook
- Revenue of $922 million to $938 million
- Adjusted diluted earnings per share of $2.60 to $2.80
- Anticipate sequential revenue growth in the second half of the year
- Anticipate sequential adjusted EPS growth in the second half of the year
- Balance sheet has remained strong
Challenges Ahead
- Revenue represents an annual revenue reduction of 3.5% to 5.0% on a constant currency basis from 2019
- Expectation could change given the unknown duration and severity of the pandemic
- Market environment remains volatile due to the ongoing pandemic
- Second quarter 2020 revenues decreased to $222.5 million compared to $243.5 million for the second quarter of 2019, a decrease of 8.6%
- Revenues declined by 9.6% sequentially
Revenue & Expenses
Visualization of income flow from segment revenue to net income