EXL Reports 2022 Second Quarter ResultsThursday, July 28, 2022
2022 Second Quarter Revenues of $346.8 Million, up 26.1% year-over-year
Q2 Diluted Earnings Per Share (GAAP) of $1.06, up from $0.81 in Q2 of 2021
Q2 Adjusted Diluted Earnings Per Share (Non-GAAP) (1) of $1.50, up from $1.14 in Q2 of 2021
New York, NY – July 28, 2022 - ExlService Holdings, Inc. (NASDAQ: EXLS), a leading data analytics and digital operations and solutions company, today announced its financial results for the quarter ended June 30, 2022.
Rohit Kapoor, Vice Chairman and Chief Executive Officer, said, “EXL had a strong second quarter with revenue of $346.8 million, a 26.1% increase from the second quarter of 2021. Analytics continued to lead our growth with a 44.8% revenue increase from the second quarter of 2021. Adjusted diluted earnings per share for the quarter was $1.50, a 31.6% increase year-over-year. Our focus on data-led solutions that leverage domain expertise, AI and digital capabilities is resonating with clients and driving significant growth. Our value proposition to help our clients improve their growth and profitability remains relevant throughout the economic cycle. The market for our services remains strong as we look to the second half of 2022.”
Maurizio Nicolelli, Chief Financial Officer, said, “Our strong second quarter top-line growth and healthy margins drove our performance which exceeded guidance. As a result, we are increasing our revenue guidance for 2022 to be in the range of $1.35 billion to $1.37 billion, from $1.315 billion to $1.335 billion. This represents a 20% to 22% increase year-over-year on a reported basis and 17% to 19% increase year-over-year on an organic constant currency basis. We are also increasing our adjusted diluted earnings per share guidance for 2022 to $5.60 to $5.80, from $5.40 to $5.65, representing a 16% to 20% increase over the prior year.”
1. Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures”. These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.
Financial Highlights: Second Quarter 2022
- Revenues for the quarter ended June 30, 2022 increased to $346.8 million compared to $275.1 million for the second quarter of 2021, an increase of 26.1% on a reported basis and 27.6% on a constant currency basis from the second quarter of 2021. Revenues increased by 5.3% sequentially on a reported basis and 6.0% on a constant currency basis, from the first quarter of 2022.
- Operating income margin for the quarter ended June 30, 2022 was 13.6%, compared to 13.0% for the second quarter of 2021 and 13.4% for the first quarter of 2022. Adjusted operating income margin for the quarter ended June 30, 2022 was 18.7% compared to 17.9% for the second quarter of 2021 and 18.2% for the first quarter of 2022.
- Diluted earnings per share for the quarter ended June 30, 2022 was $1.06 compared to $0.81 for the second quarter of 2021 and $1.07 for the first quarter of 2022. Adjusted diluted earnings per share for the quarter ended June 30, 2022 was $1.50 compared to $1.14 for the second quarter of 2021 and $1.42 for the first quarter of 2022.
Business Highlights: Second Quarter 2022
- Won 10 new clients in the second quarter of 2022, with seven in our digital operations and solutions business and three in analytics.
- Launched a risk decisioning-as-a-service solution along with Corridor Platforms and Oliver Wyman for mid-tier banks and credit unions to deliver instant credit decisions necessary to support digital lending initiatives.
- EXL recognized as a Major Performer in the IDC MarketScape: Worldwide Intelligent Automation Services 2022 Vendor Assessment.
- EXL recognized as a Leader in the 2022 Gartner® Magic Quadrant™ for Finance and Accounting Business Process Outsourcing(2).
Based on current visibility, and a U.S. Dollar to Indian Rupee exchange rate of 79.0, British Pound to U.S. Dollar exchange rate of 1.25, U.S. Dollar to the Philippine Peso exchange rate of 54.5 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2022:
- Revenue of $1.35 billion to $1.37 billion, representing an increase of 20% to 22% on a reported basis, and 17% to 19% on an organic constant currency basis from 2021.
- Adjusted diluted earnings per share of $5.60 to $5.80, representing an increase of 16% to 20% from 2021.
ExlService Holdings, Inc. will host a conference call on Thursday, July 28, 2022 at 10:00 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.
Please note that there is a new system to access the live call-in order to ask questions. To join the live call, please register here. A dial-in and unique PIN will be provided to join the call. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.
(2) Gartner, “Magic Quadrant for Finance and Accounting Business Process Outsourcing”, Sanjay Champaneri, Ashwani Gupta, June 27, 2022.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. GARTNER and MAGIC QUADRANT are registered trademarks and service marks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
About ExlService Holdings, Inc.
EXL (NASDAQ: EXLS) is a leading data analytics and digital operations and solutions company that partners with clients to improve business outcomes and unlock growth. By bringing together deep domain expertise with robust data, powerful analytics, cloud, artificial intelligence (“AI”) and machine learning (“ML”), we create agile, scalable solutions and execute complex operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media, and retail, among others. Focused on driving faster decision-making and transforming operating models, EXL was founded on the core values of innovation, collaboration, excellence, integrity and respect. Headquartered in New York, our team is over 40,600 strong, with more than 50 offices spanning six continents. For more information, visit www.exlservice.com.
Cautionary 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, which include our ability to successfully close and integrate strategic acquisitions, our ability to respond to and manage public health crises, including the outbreak and continued effects of COVID-19 pandemic, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Quarterly Report on Form 10-Q and Annual Report on Form 10-K. 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