Exlservice Holdings, Inc. · NASDAQ:EXLS
Exlservice — Q4 2023 Earnings Presentation
16 slides from Exlservice's earnings presentation, Feb 29, 2024
Slide 1: Fourth quarter and Full Year 2023 financial results
ExlService Holdings Inc. Fourth quarter and Full Year 2023 financial results February 29, 2024
Slide 2: Safe harbor
Safe harbor Forward-looking statements This presentation 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 factor
Slide 3: Financial highlights: Fourth Quarter 2023
Financial highlights: Fourth Quarter 2023 Q4 revenue of $414.1 million, up 10.5% YoY and 0.8% from Q3 on reported basis, with strong growth across both businesses Q4 adj EPS of $0.35, up 11.3% YoY Analytics segment Q4 revenue of $182 million, up 6.6% YoY on reported basis. Digital Operations & Solut
Slide 4: Financial highlights: Full Year 2023
Financial highlights: Full Year 2023 Full year revenue of $1,630.7 million, up 15.5% YoY with strong growth across both businesses Full Year adj EPS of $1.43, up 19.1% YoY Analytics segment full year revenue of $729.1 million, up 12.6% YoY on reported basis Digital Operations & Solutions full year r
Slide 5: Q4 2023 Digital operations & solutions segment revenue
Q4 2023 Digital operations & solutions segment revenue (in millions) 232.1 • Growth was driven by expansion of existing 204.0 client relationships and new client wins +13.8% Q4 2022 Q4 2023 Insurance Emerging Healthcare $139.1 $120.7 +15.3% $58.0 +15.6% $67.0 +2.5% $25.3 $26.0 Q4 2022 Q4 2023 Q4 202
Slide 6: Full Year 2023 Digital operations & solutions segment revenue
Full Year 2023 Digital operations & solutions segment revenue (in millions) $901.5 • Growth was driven by expansion of existing client relationships and new client win $764.7 +17.9% 2022 2023 Insurance Emerging Healthcare $529.9 $448.7 $265.7 +18.1% $218.6 +21.5% +8.9% $106.0 $97.4 2022 2023 2022 20
Slide 7: Q4 2023 Analytics segment revenue
Q4 2023 Analytics segment revenue (in millions) $182.0 $170.7 • Driven by higher volumes in Payment services and +6.6% expansion of existing client relationships in data management, offset by decline in banking & financial Q4 2022 Q4 2023 services and marketing analytics ©2023 ExlService Holdings, I
Slide 8: Full Year 2023 Analytics segment revenue
Full Year 2023 Analytics $729.1 segment revenue (in millions) $647.4 • Driven by strong growth in decision analytics, data +12.6% management and payment integrity business, partially offset by a decline in marketing analytics 2022 2023 ©2023 ExlService Holdings, Inc. All rights reserved. 8
Slide 9: Adjusted profit margin Q4 and Full Year 2023
Q4 2023 Adjusted 18.0% 17.8% profit margin -20bps • Decline driven by increased SG&A investments Q4 2022 Q4 2023 Full Year 2023 19.3% 18.3% Adjusted profit margin +100bps • Improvement driven by gross margin improvement 2022 2023 ©2023 ExlService Holdings, Inc. All rights reserved. 9
Slide 10: 2024 guidance
2024 guidance Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 83, U.K. pound sterling to U.S. dollar exchange rate of 1.27, U.S. dollar to the Philippine peso exchange rate of 56 and all other currencies at current exchange rates Revenue (in millions) Adjusted diluted
Slide 11: Appendix
Appendix EXL
Slide 12: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations In addition to our reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), we have included certain financial measures that are considered non-GAAP financial measures, including the following: • Adjusted oper
Slide 13: Non-GAAP financial measures and reconciliations (continued)
Non-GAAP financial measures and reconciliations (continued) A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in acco
Slide 14: Reconciliation footnotes
(a) To exclude the effects of material allowance/(reversal) for expected credit losses on accounts receivables related to a customer bankruptcy event. (b) To exclude provision for litigation of $895 and $386, effects of lease termination of $489 and ($560) and other items, individually insignificant
Slide 15: Reconciliation footnotes (continued)
((a) To exclude the effects of material allowance/(reversal) for expected credit losses on accounts receivables related to a customer bankruptcy event. (b) To exclude provision for litigation, net of $613 and $1,061, effects of lease termination of $489 and ($560) and other items, individually insig
Slide 16: Investor relations contact
John Kristoff exlservice.com Vice President, Head of Investor Relations Global headquarters 212.209.4613 320 Park Ave, 29th floor IR@exlservice.com New York, NY 10022 T: +1(212) 277-7100 F: +1(212) 277-7111 United States | United Kingdom | Australia Bulgaria | Colombia | Czech Republic India | Irela