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Sep 30, 2021

ExlService Q3 2021 Earnings Report

Reported revenue increase of 20.5% year-over-year, GAAP diluted EPS increased to $0.77, and adjusted diluted EPS (Non-GAAP) increased to $1.30.

Key Takeaways

EXL reported a strong third quarter with revenue of $290.3 million, a 20.5% increase compared to the third quarter of 2020. Adjusted diluted earnings per share for the quarter was $1.30, a 25.0% increase year-over-year. The company is increasing its revenue guidance for 2021 to be in the range of $1.11 billion to $1.12 billion and adjusted diluted earnings per share guidance for 2021 is also increasing to $4.70 to $4.80.

Revenues for the quarter ended September 30, 2021 increased to $290.3 million compared to $241.0 million for the third quarter of 2020, an increase of 20.5%.

Operating income margin for the quarter ended September 30, 2021 was 14.6%, compared to 14.3% for the third quarter of 2020.

Diluted earnings per share for the quarter ended September 30, 2021 was $0.77 compared to $0.76 for the third quarter of 2020.

Adjusted diluted earnings per share for the quarter ended September 30, 2021 was $1.30 compared to $1.04 for the third quarter of 2020.

Total Revenue
$290M
Previous year: $241M
+20.5%
EPS
$0.26
Previous year: $0.21
+23.8%
Operating Margin
14.6%
Previous year: 14.3%
+2.1%
Gross Margin
38.8%
Previous year: 36.9%
+5.1%
Gross Profit
$113M
Previous year: $88.9M
+26.6%
Cash and Equivalents
$115M
Previous year: $206M
-44.5%
Free Cash Flow
$50.7M
Previous year: $54.8M
-7.6%
Total Assets
$1.17B
Previous year: $1.22B
-4.2%

ExlService

ExlService

ExlService Revenue by Segment

Forward Guidance

EXL is increasing its revenue guidance for 2021 to be in the range of $1.11 billion to $1.12 billion, representing a 15% to 16% increase year-over-year on a constant currency basis. Adjusted diluted earnings per share guidance for 2021 is also increasing to $4.70 to $4.80, representing a 33% to 36% increase over the prior year.

Positive Outlook

  • Revenue of $1.11 billion to $1.12 billion, representing an increase of 16% to 17% on a reported basis from 2020.
  • Revenue of $1.11 billion to $1.12 billion, representing 15% to 16% on a constant currency basis, from 2020.
  • Adjusted diluted earnings per share of $4.70 to $4.80, representing an increase of 33% to 36% from 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income