Exlservice Holdings, Inc. · NASDAQ:EXLS
Exlservice — Q3 2023 Earnings Presentation
13 slides from Exlservice's earnings presentation, Oct 26, 2023
Slide 1: ExlService Holdings Inc. Third quarter 2023 financial results
ExlService Holdings Inc. Third quarter 2023 financial results October 26, 2023
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
Financial highlights Q3 revenue of $411 million, up 13.7% YoY and 1.5% from Q2 on reported basis, with strong growth across both businesses Q3 adj EPS of $0.37, up 21.3% YoY and 2.7% from Q2 Analytics segment Q3 revenue of $183.1 million, up 10.1% YoY and 0.5% sequentially on reported basis Digital
Slide 4: Q3 2023 Digital operations & solutions segment revenue
Q3 2023 Digital operations & solutions segment revenue (in millions) $227.9 $195.1 • Insurance growth driven primarily by expansion in existing and new client relationships • Emerging growth driven by expansion in existing +16.8% client relationships and new client wins • Healthcare growth driven by
Slide 5: Q3 2023 Analytics segment revenue
Q3 2023 Analytics segment revenue (in millions) $183.1 $166.3 • Driven by strong growth in decision analytics, data 10.1% management and payment integrity business, partially offset by decline in marketing analytics Q3 2022 Q3 2023 ©2023 ExlService Holdings, Inc. All rights reserved. 5
Slide 6: Q3 2023 Adjusted profit margin
Q3 2023 Adjusted profit margin 20.0% 18.5% • Improvement driven by higher volumes and revenue +150bps Q3 2022 Q3 2023 ©2023 ExlService Holdings, Inc. All rights reserved. 6
Slide 7: 2023 Revised guidance
2023 Revised 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 1.23, U.S. dollar to the Philippine peso exchange rate of 56.5 and all other currencies at current exchange rates Revenue (in millions) Adjust
Slide 8: Appendix
Appendix EXL
Slide 9: 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 10: 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 11: Reconciliation of Adjusted Operating Income and Adjusted EBITDA
Reconciliation of Adjusted Operating Income and Adjusted EBITDA (Amounts in thousands) Three months ended September 30, June 30, 2023 2022 2023 Net Income (GAAP) $ 43,876 $ 39,095 $ 49,068 add: Income tax expense 14,161 12,447 15,554 add/(subtract): Foreign exchange gain, net, interest expense, gain
Slide 12: Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share
Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share (Amounts in thousands, except per share data) Three months ended September 30, June 30, 2023 2022 2023 Net income (GAAP) $ 43,876 $ 39,095 $ 49,068 add: Stock-based compensation expense 17,067 12,186 11,511 add: Amortizati
Slide 13: John Kristoff, Vice President, Head of Investor Relations
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