EXL Reports 2023 First Quarter Results

Thursday, April 27, 2023

2023 First Quarter Revenue of $400.6 Million, up 21.7% year-over-year

Q1 Diluted EPS (GAAP) of $1.51, up 41.1% from $1.07 in Q1 of 2022

Q1 Adjusted Diluted EPS (Non-GAAP) (1) of $1.74, up 22.5% from $1.42 in Q1 of 2022

New York - April 27, 2023 (GLOBE NEWSWIRE) - ExlService Holdings, Inc. (NASDAQ: EXLS), a leading data analytics and digital operations and solutions company, today announced its financial results for the quarter ended March 31, 2023.

Rohit Kapoor, Vice Chairman and Chief Executive Officer, said, “We continued our strong momentum into the first quarter, with revenue growth of 21.7% and adjusted diluted EPS growth of 22.5%. Our data-led strategy has expanded our total addressable market and generated a sustainable competitive advantage for EXL. The consistent execution of this strategy continues to fuel growth across our data analytics and digital operations and solutions businesses.”

Maurizio Nicolelli, Chief Financial Officer, said, “While we remain cautious on the macro-economic environment, we are increasing our revenue guidance for the full year 2023 based on our strong momentum in the first quarter and current visibility for the remainder of the year. We now expect revenue to be in the range of $1.595 billion to $1.620 billion, up from our prior guidance of $1.560 billion to $1.600 billion. This represents 13% to 15% year-over-year growth on both a reported and constant currency basis. We are also increasing our adjusted diluted earnings per share guidance for 2023 to $6.75 to $6.90, from $6.60 to $6.80, representing growth of 12% to 15% 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: First Quarter 2023

  • Revenue for the quarter ended March 31, 2023 increased to $400.6 million compared to $329.2 million for the first quarter of 2022, an increase of 21.7% on a reported basis and 23.0% on a constant currency basis. Revenue increased by 6.9% sequentially on a reported basis and 6.6% on a constant currency basis from the fourth quarter of 2022.


  • Operating income margin for the quarter ended March 31, 2023 was 14.8%, compared to 13.4% for the first quarter of 2022 and 13.6% for the fourth quarter of 2022. Adjusted operating income margin for the quarter ended March 31, 2023 was 19.4% compared to 18.2% for the first quarter of 2022 and 18.0% for the fourth quarter of 2022.
  • Diluted earnings per share for the quarter ended March 31, 2023 was $1.51 compared to $1.07 for the first quarter of 2022 and $0.94 for the fourth quarter of 2022. Adjusted diluted earnings per share for the quarter ended March 31, 2023 was $1.74 compared to $1.42 for the first quarter of 2022 and $1.56 for the fourth quarter of 2022.

Business Highlights: First Quarter 2023

  • Won 16 new clients in the first quarter of 2023, with 12 in our digital operations and solutions business and 4 in analytics.
  • Included in Barron’s Top 100 Sustainable Companies list for the second consecutive year.
  • Earned gold medal rating for sustainability efforts by EcoVadis.
  • Elevated Anand “Andy” Logani as Chief Digital Officer, with responsibility for EXL’s digital business leveraging data analytics, AI and cloud.
  • Recognized as a Leader in Everest Group’s 2023 Advanced Analytics and Insights Services PEAK Matrix® Assessment.
  • Recognized as a Leader in Payer Digital Transformation Services in ISG Provider Lens™ Healthcare Digital Services.

2023 Guidance

Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 82.5, U.K. pound sterling to U.S. dollar exchange rate of 1.23, U.S. dollar to the Philippine peso exchange rate of 56.0 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2023:

  • Revenue of $1.595 billion to $1.620 billion, representing an increase of 13% to 15% on both a reported and constant currency basis from 2022.
  • Adjusted diluted earnings per share of $6.75 to $6.90, representing an increase of 12% to 15% from 2022.

Conference Call

ExlService Holdings, Inc. will host a conference call on Thursday, April 27, 2023 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.

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 47,000 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 within the meaning of the United States Private Securities Litigation Reform Act of 1995. 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 maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, rising interest rates, rising inflation and recessionary economic trends, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. 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