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Sep 30, 2020

ExlService Q3 2020 Earnings Report

Reported a strong third quarter with revenue increasing and adjusted diluted EPS improving due to higher revenues and cost management.

Key Takeaways

EXL reported Q3 2020 revenues of $241.0 million and adjusted diluted EPS of $1.04. The company's revenue increased from the second quarter of 2020. They are raising their 2020 guidance.

Revenues for Q3 2020 decreased to $241.0 million compared to $251.4 million for Q3 2019, a decrease of 4.1%.

Q3 Diluted EPS (GAAP) was $0.76, up from $0.55 in Q3 of 2019.

Q3 Adjusted Diluted EPS (Non-GAAP) was $1.04, up from $0.84 in Q3 of 2019.

The company won 11 new clients in the third quarter of 2020, with five in operations management and six in analytics.

Total Revenue
$241M
Previous year: $251M
-4.1%
EPS
$0.21
Previous year: $0.17
+23.5%
Operating Margin
14.3%
Previous year: 8.9%
+60.7%
Gross Margin
36.9%
Previous year: 33.4%
+10.5%
Gross Profit
$88.9M
Previous year: $83.9M
+6.1%
Cash and Equivalents
$206M
Previous year: $101M
+103.5%
Free Cash Flow
$54.8M
Previous year: $48.2M
+13.7%
Total Assets
$1.22B
Previous year: $1.15B
+6.4%

ExlService

ExlService

ExlService Revenue by Segment

Forward Guidance

EXL raised its revenue guidance for 2020 to $950 million to $958 million, and its adjusted diluted EPS guidance for 2020 to $3.40 to $3.48.

Positive Outlook

  • Revenue of $950 million to $958 million.
  • Adjusted diluted earnings per share of $3.40 to $3.48.

Challenges Ahead

  • Revenue represents an annual revenue reduction of 3% to 4% on a constant currency basis from 2019.

Revenue & Expenses

Visualization of income flow from segment revenue to net income