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Sep 30, 2022

ExlService Q3 2022 Earnings Report

Reported strong third quarter results with revenue exceeding expectations and increased EPS.

Key Takeaways

EXL reported a strong third quarter with revenue of $361.4 million, a 24.5% increase year-over-year. Adjusted diluted earnings per share for the quarter was $1.54, an 18.5% increase year-over-year. The company is increasing its revenue guidance for 2022 to be in the range of $1.39 billion to $1.40 billion and adjusted diluted earnings per share guidance for 2022 to $5.85 to $5.95.

Revenues for the quarter increased to $361.4 million compared to $290.3 million for the third quarter of 2021, an increase of 24.5%.

Diluted earnings per share for the quarter was $1.16 compared to $0.77 for the third quarter of 2021.

Adjusted diluted earnings per share for the quarter was $1.54 compared to $1.30 for the third quarter of 2021.

The company won 11 new clients in the third quarter of 2022, with six in digital operations and solutions and five in analytics.

Total Revenue
$361M
Previous year: $290M
+24.5%
EPS
$0.31
Previous year: $0.26
+19.2%
Operating Margin
13.9%
Previous year: 14.6%
-4.8%
Gross Margin
36.2%
Previous year: 38.8%
-6.7%
Gross Profit
$131M
Previous year: $113M
+16.3%
Cash and Equivalents
$89.3M
Previous year: $115M
-22.1%
Free Cash Flow
$41M
Previous year: $50.7M
-19.1%
Total Assets
$1.32B
Previous year: $1.17B
+12.9%

ExlService

ExlService

ExlService Revenue by Segment

Forward Guidance

The company is increasing its revenue guidance for 2022 to be in the range of $1.39 billion to $1.40 billion and adjusted diluted earnings per share guidance for 2022 to $5.85 to $5.95.

Positive Outlook

  • Revenue of $1.39 billion to $1.40 billion, representing an increase of 24% to 25% on a reported basis from 2021.
  • Revenue of $1.39 billion to $1.40 billion, representing an increase of 21% to 22% on an organic constant currency basis from 2021.
  • Adjusted diluted earnings per share of $5.85 to $5.95, representing an increase of 21% to 23% from 2021.
  • Healthy demand across client base for data-led solutions.
  • Uniquely positioned to help clients harness data, AI and the cloud to improve their profitability.

Revenue & Expenses

Visualization of income flow from segment revenue to net income