EXL reports 2017 first quarter results

2017 First Quarter Revenues of $183.0 Million, up 9.6% year over year

Q1 Diluted EPS (GAAP) of $0.48, up from $0.40 in Q1 of 2016

Q1 Adjusted Diluted EPS (Non-GAAP) of $0.60, up from $0.56 in Q1 of 2016

NEW YORK, May 02, 2017 (GLOBE NEWSWIRE) — ExlService Holdings, Inc.(NASDAQ:EXLS), a leading operations management and analytics company, today announced its financial results for the quarter ended March 31, 2017.

Rohit Kapoor, Vice Chairman and CEO, commented, “Our first quarter 2017 revenues increased 9.6% year-over-year, or 9.9% on a constant currency basis (non-GAAP), to $183.0 million. Our revenue growth was led by our Analytics segment which grew 25.8% year-over-year, or 26.4% on a constant currency basis. Our operations management businesses, which consist of our Insurance, Healthcare, Travel Transportation and Logistics, Finance and Accounting and All Other (Banking and Financial Services, Utilities and Consulting) reportable segments, grew 4.7% year-over-year, or 4.9% on a constant currency basis.

“Our competitive positioning with our integrated solutions across operations management and analytics continues to be well received in the marketplace. Our demand pipeline is strong and the ramp-ups of 2016 new business wins are tracking to plan, giving us confidence that we will achieve our 2017 goals.”

Vishal Chhibbar, CFO, commented, “We have updated our revenue guidance for 2017 to $740 million – $760 million from $735 million – $760 million to reflect better performance in the first quarter and favorable exchange rates versus the U.S. dollar. Our guidance represents annual revenue growth of 8% to 11% on a constant currency basis. Our adjusted diluted EPS guidance for 2017 is unchanged. Our balance sheet remains strong with cash and short-term investments of $218 million.”

Financial Highlights: First Quarter 2017

We have six reportable segments: Insurance, Healthcare, Travel Transportation and Logistics, Finance and Accounting, All Other (Banking and Financial Services, Utilities and Consulting) and Analytics. Reconciliations of adjusted (non-GAAP) financial measures, including those reflecting constant currency, to GAAP measures are included at the end of this release.

• Revenues for the quarter ended March 31, 2017 increased to $183.0 million compared to $167.0 million for the first quarter of 2016, an increase of 9.6% (or 9.9% on a constant currency basis) from the first quarter of 2016, and an increase of 3.2% sequentially from the quarter ended December 31, 2016.
• Operating income margin for the quarter ended March 31, 2017 was 8.7% compared to 9.8% in the first quarter of 2016 and 8.0% for the quarter ended December 31, 2016. Adjusted operating income margin for the quarter ending March 31, 2017 was 13.9% compared to 15.0% in the first quarter of 2016 and 12.9% for the quarter ended December 31, 2016.
• Diluted earnings per share for the quarter ended March 31, 2017 was $0.48 compared to $0.40 in the first quarter of 2016 and $0.45 for the quarter ended December 31, 2016. Adjusted diluted earnings per share was $0.60 compared to $0.56 in the first quarter of 2016 and $0.61 for the quarter ended December 31, 2016.

Business Highlights: First Quarter 2017

• Won eight new clients, consisting of three new clients in our operations management businesses and five new clients in Analytics.
• Announced an additional $100 million share repurchase authorization for the years 2017 -2019.
• Named as the Best Company of the Year, Best Health Information Management Company and Best First Time Nominated Company by the Information and Business Process Association of the Philippines and the Canadian Chamber of Commerce of the Philippines.
• Positioned as a Leader in the “Everest Property and Casualty Insurance BPO – Service Provider Landscape with PEAK Matrix™ Assessment 2017.”
• Expanded multiple operations management relationships, including migrating 38 new processes.

2017 Guidance

Based on current visibility and a U.S. Dollar to Indian rupee exchange rate of 66.0, British Pound to U.S. Dollar exchange rate at 1.28, U.S. Dollar to the Philippine Peso exchange rate of 50.0 and all other currencies at current exchange rates, the Company is providing the following guidance for the calendar year 2017:

• Revenue of $740 million to $760 million, representing an annual revenue growth of 8% to 11% on a constant currency basis.
• Adjusted diluted earnings per share of $2.50 to $2.60, representing an annual increase of 7% to 12%.

Conference Call

ExlService Holdings, Inc. will host a conference call on Tuesday, May 2, 2017 at 8:00 A.M. ET to discuss the Company’s quarterly operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

To listen to the conference call via phone, please dial 1-877-303-6384, or if dialing internationally, 1-224-357-2191 and an operator will assist you. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of at least twelve months.

About ExlService Holdings, Inc.

EXL (NASDAQ:EXLS) is a leading operations management and analytics company that designs and enables agile, customer-centric operating models to help clients improve their revenue growth and profitability. Our delivery model provides market-leading business outcomes using EXL’s proprietary Business EXLerator Framework™, cutting-edge analytics, digital transformation and domain expertise. At EXL, we look deeper to help companies improve global operations, enhance data-driven insights, increase customer satisfaction, and manage risk and compliance. EXL serves the insurance, healthcare, banking and financial services, utilities, travel, transportation and logistics industries. Headquartered in New York, New York, EXL has more than 26,000 professionals in locations throughout the United States, Europe, Asia (primarily India and Philippines), South America, Australia and South Africa. For more information, visit www.exlservice.com.

Continuing Statement Regarding Forward-Looking Statements This press release contains forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL’s operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management’s experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K for the year ended December 31, 2016. These risks could cause actual results to differ materially from those implied by forward-looking statements in this release. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws.

For a full view of EXL’s financial tables, click here