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Dec 31, 2019

ExlService Q4 2019 Earnings Report

ExlService's Q4 2019 earnings increased compared to Q4 2018, driven by revenue growth and improved operating income margin.

Key Takeaways

ExlService reported a strong fourth quarter in 2019, with revenues up 9.4% year-over-year to $256.9 million. Diluted EPS increased to $0.62, and adjusted diluted EPS rose to $0.79. The company's performance was driven by growth in both Analytics and operations management businesses, particularly in the Insurance and Healthcare verticals.

Revenues for Q4 2019 increased to $256.9 million, up 9.4% year-over-year.

Q4 Diluted EPS (GAAP) was $0.62, up from $0.11 in Q4 2018.

Q4 Adjusted Diluted EPS (Non-GAAP) was $0.79, up from $0.74 in Q4 2018.

The wind down of the Health Integrated business was substantially completed on December 31, 2019, with no further impairment and restructuring charges expected in 2020.

Total Revenue
$257M
Previous year: $235M
+9.4%
EPS
$0.16
Previous year: $0.15
+6.7%
Operating Margin
9.1%
Previous year: -0.9%
-1111.1%
Gross Margin
34.5%
Gross Profit
$88.6M
Previous year: $80M
+10.8%
Cash and Equivalents
$119M
Previous year: $95.9M
+24.3%
Free Cash Flow
$54.6M
Previous year: $35.2M
+55.1%
Total Assets
$1.18B
Previous year: $1.06B
+11.4%

ExlService

ExlService

ExlService Revenue by Segment

Forward Guidance

The company provided initial 2020 guidance, projecting revenue between $1.040 billion and $1.065 billion, representing a 5% to 8% annual revenue growth rate on a constant currency basis. Adjusted diluted earnings per share are expected to be between $3.42 and $3.58.

Positive Outlook

  • Revenue of $1.040 billion to $1.065 billion is expected.
  • Annual revenue growth rate of 5% to 8% on a constant currency basis is projected.
  • Adjusted diluted earnings per share of $3.42 to $3.58 is anticipated.
  • Growth in Analytics business.
  • Operations management businesses grew nicely.

Revenue & Expenses

Visualization of income flow from segment revenue to net income