ExlService Q4 2023 Earnings Report
Key Takeaways
ExlService reported a 10.5% year-over-year increase in revenue, reaching $414.1 million for Q4 2023. Diluted EPS increased by 28.2% to $0.24, and adjusted diluted EPS rose by 11.3% to $0.35. The company's full-year revenue grew by 15.5% to $1.63 billion, with diluted EPS up 29.9% to $1.10 and adjusted diluted EPS up 19.1% to $1.43.
Q4 revenue increased by 10.5% year-over-year to $414.1 million.
Q4 diluted EPS (GAAP) increased by 28.2% year-over-year to $0.24.
Q4 adjusted diluted EPS (Non-GAAP) increased by 11.3% year-over-year to $0.35.
The company issued 2024 revenue guidance of $1.78 billion to $1.82 billion and adjusted diluted EPS guidance of $1.56 to $1.62.
ExlService
ExlService
ExlService Revenue by Segment
Forward Guidance
EXL anticipates revenue between $1.78 billion and $1.82 billion, representing a 9% to 12% increase year-over-year. Adjusted diluted EPS is expected to be in the range of $1.56 to $1.62, reflecting a 9% to 13% increase over 2023.
Positive Outlook
- Revenue of $1.78 billion to $1.82 billion, representing an increase of 9% to 12% on a reported basis, and constant currency basis, from 2023
- Adjusted diluted earnings per share of $1.56 to $1.62, representing an increase of 9% to 13% from 2023
- New collaboration with AWS for developing and delivering generative AI solutions
- Established a new collaboration with Microsoft to co-develop and accelerate generative AI solutions
- Board of Directors authorized a $500 million common stock repurchase program
Challenges Ahead
- Challenging macro-economic environment
- Lower demand across the IT services industry
- Economic uncertainty heading into 2024
- Inability to predict its future stock-based compensation expense under ASC Topic 718
- Inability to predict the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects
Revenue & Expenses
Visualization of income flow from segment revenue to net income