EXL Reports 2017 Third Quarter ResultsThursday, October 26, 2017
2017 Third Quarter Revenues of $192.3 Million, up 12.4% year over year
Q3 Diluted EPS (GAAP) of $0.60, up from $0.46 in Q3 of 2016
Q3 Adjusted Diluted EPS (Non-GAAP) of $0.68, up from $0.61 in Q3 of 2016
NEW YORK, Oct. 26, 2017 (GLOBE NEWSWIRE) — ExlService Holdings, Inc.(NASDAQ:EXLS), a leading operations management and analytics company, today announced its financial results for the quarter ending September 30, 2017.
Rohit Kapoor, Vice Chairman and Chief Executive Officer, EXL, said, “In the third quarter of 2017, EXL had strong revenue growth. We reported third quarter revenue of $192.3 million, a year-on-year increase of 12.4%. Analytics continued its momentum by growing third quarter revenues 29.1% year over year. Operations management businesses grew 7.0% in the same time frame.
“EXL’s investments in digital capabilities, our deep understanding of our chosen domains and our leadership position in analytics, enable EXL to support our clients’ strategic digital transformation agendas. Our pipeline is strong including several large opportunities that leverage EXL’s integrated sales approach and transformation playbook.”
Vishal Chhibbar, Chief Financial Officer, EXL, said, “We are updating our revenue guidance for 2017 to $754 million – $762 million from $748 million – $762 million based on our third quarter performance. Our guidance represents annual revenue growth of 10% to 11% on a constant currency basis. We are increasing the lower end of our adjusted diluted EPS guidance for 2017 to $2.60 – $2.64, from $2.54 -$2.64, which represents an increase of 12% to 13% from 2016. Our balance sheet remains strong with cash and short-term investments of $249 million.”
Financial Highlights: Third Quarter 2017
We have six reportable segments: Insurance, Healthcare, Travel, Transportation & Logistics, Finance & Accounting, All Other (Banking & 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 ending September 30, 2017 increased to $192.3 million compared to $171.2 million for the third quarter of 2016, an increase of 12.4% on a reported basis and 11.8% on a constant currency basis from the third quarter of 2016, as well as and an increase of 1.7% sequentially from the quarter ended June 30, 2017. earnings.
- Operating income margin for the quarter ending September 30, 2017 was 9.7% compared to 10.1% in the third quarter of 2016 and 8.5% for the quarter ended June 30, 2017. Adjusted operating income margin for the quarter ending September 30, 2017 was 14.5% compared to 14.4% in the third quarter of 2016 and 13.1% for the quarter ending June 30, 2017.
- Diluted earnings per share for the quarter ending September 30, 2017 was $0.60 compared to $0.46 for the third quarter of 2016 and $0.58 for the quarter ending June 30, 2017. Adjusted diluted earnings per share for the quarter ending September 30, 2017 was $0.68 compared to $0.61 for the third quarter of 2016 and $0.70 for the quarter ending June 30, 2017.
Business Highlights: Third Quarter 2017
- Won 11 new clients, including five in our operations management businesses and six in Analytics.
- Opened new delivery centers in Richmond, Virginia and Kansas City, Missouri.
- Achieved accreditation in utilization management from the National Committee for Quality Assurance (NCQA), a leading accreditation institution dedicated to improving healthcare quality.
- Recognized as a Leader and Star Performer in the Everest Group Life & Pensions Business Process Services PEAK Matrix™ 2017.
- Positioned in the Winner’s Circle in the HfS Blueprint: Finance and Accounting As-a-Service 2017.
- Included in the HfS Research 2017 AI-Powered OneOffice Premier League Table.
- Recognized as a Major Contender in the Everest Group Business Process Services Delivery Automation PEAK Matrix™ 2017.
- Expanded multiple operations management relationships, including migrating 38 new processes.
Post-Third Quarter Event
On October 24, 2017, EXL entered into a definitive purchase agreement to acquire substantially all the assets of Health Integrated, Inc. Based in Tampa, Florida, Health Integrated is a care management company that provides end-to-end technology and analytics-enabled care management services including case management, utilization management, disease management, special needs programs, and multichronic care management on behalf of health plans. Health Integrated currently serves over five million lives in the Medicaid, Medicare, and dual eligible populations. It is known for its strong capabilities in improving member health status through behavioral change.
The acquisition is expected to close in the first quarter of 2018, subject to the fulfillment of certain closing conditions, including regulatory and other consents. The financial terms of the transaction are not being disclosed.
Based on current visibility, the Company is updating its guidance. This guidance is based on the current exchange rates for the remainder of the year: U.S. Dollar to Indian Rupee exchange rate of 65.0, British Pound to U.S. Dollar exchange rate of 1.31, U.S. Dollar to the Philippine Peso exchange rate of 52.0 and all other currencies at current exchange rates.
- Revenue of $754 million to $762 million, representing an annual revenue growth of 10% to 11% on a constant currency basis.
- Adjusted diluted earnings per share of $2.60 to $2.64, representing an annual increase of 12% to 13%.
ExlService Holdings, Inc. will host a conference call on Thursday, October 26, 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 27,000 professionals in locations throughout the United States, Europe, Asia (primarily India and Philippines), Colombia, 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