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Dec 31, 2022

ExlService Q4 2022 Earnings Report

ExlService reported strong Q4 2022 results with revenue and EPS growth exceeding 25%.

Key Takeaways

ExlService Holdings, Inc. reported Q4 2022 revenue of $374.7 million, a 26.8% increase year-over-year. The company's Q4 diluted EPS (GAAP) was $0.94, up 13.3% from Q4 2021, and adjusted diluted EPS (Non-GAAP) was $1.56, up 28.9% from Q4 2021.

Q4 revenue increased by 26.8% year-over-year to $374.7 million.

Q4 diluted EPS (GAAP) increased by 13.3% year-over-year to $0.94.

Q4 adjusted diluted EPS (Non-GAAP) increased by 28.9% year-over-year to $1.56.

The company issued 2023 revenue guidance in the range of $1.56 billion to $1.60 billion and adjusted diluted EPS guidance in the range of $6.60 to $6.80.

Total Revenue
$375M
Previous year: $295M
+26.8%
EPS
$0.31
Previous year: $0.24
+29.2%
Operating Margin
13.6%
Previous year: 12.2%
+11.5%
Gross Margin
36.6%
Previous year: 37.8%
-3.2%
Gross Profit
$137M
Previous year: $112M
+22.8%
Cash and Equivalents
$119M
Previous year: $135M
-12.3%
Free Cash Flow
$52.3M
Previous year: $62.4M
-16.2%
Total Assets
$1.35B
Previous year: $1.28B
+4.9%

ExlService

ExlService

ExlService Revenue by Segment

Forward Guidance

EXL anticipates double-digit revenue and EPS growth in 2023. Revenue is projected to be in the range of $1.56 billion to $1.60 billion, representing an 11% to 13% increase year-over-year. Adjusted diluted EPS is expected to be in the range of $6.60 to $6.80, representing a 10% to 13% increase over 2022.

Positive Outlook

  • Revenue of $1.56 billion to $1.60 billion, representing an increase of 11% to 13% on a reported basis from 2022.
  • Revenue increase of 11% to 14% on a constant currency basis from 2022.
  • Adjusted diluted earnings per share of $6.60 to $6.80, representing an increase of 10% to 13% from 2022.
  • Strong pipeline
  • Differentiated solutions

Challenges Ahead

  • Potential for recessionary headwinds later in the year.
  • Guidance based on specific currency exchange rates.
  • Uncertainties and factors relating to EXL's operations and business environment.
  • Ability to maintain and grow client demand.
  • Ability to hire and retain sufficiently trained employees.

Revenue & Expenses

Visualization of income flow from segment revenue to net income