NASDAQ$EXLS

ExlService Holdings Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a strong second quarter with revenue growth and adjusted diluted EPS growth.

ExlService Holdings, Inc. announced its financial results for the quarter ended June 30, 2023, with revenue of $405.0 million, up 16.8% year-over-year, and adjusted diluted EPS growth of 21.3%. The company is increasing its revenue and EPS guidance for the full year 2023.

  • Revenue for the quarter ended June 30, 2023 increased to $405.0 million compared to $346.8 million for the second quarter of 2022, an increase of 16.8%.
  • Diluted earnings per share for the quarter ended June 30, 2023, was $1.46, compared to $1.06 for the second quarter of 2022.
  • Adjusted diluted earnings per share for the quarter ended June 30, 2023, was $1.82, compared to $1.50 for the second quarter of 2022.
  • The company won 14 new clients in the second quarter of 2023, with 9 in digital operations and solutions business and 5 in data analytics.

Headline financials

Total Revenue

$405M

Previous: $347M+16.8%
EPS (adj)

$0.36

Previous: $0.30+20.0%
Gross Margin

37.5%

Previous: 36.2%+3.6%
Operating Margin

16.0%

Previous: 13.6%+17.6%
Capital Expenditures

-$26.1M

Previous: -$25.1M-4.2%
Free Cash Flow

$23M

Previous: $10.8M+112.7%
Net Income

$49.1M

Previous: $35.8M+36.9%
Operating Income

$64.8M

Previous: $47.1M+37.7%
Gross Profit

$152M

Previous: $126M+20.9%
Cash & Equivalents

$94M

Previous: $106M-11.6%
Total Assets

$1.36B

Previous: $1.29B+5.6%
Stock-Based Comp

$11.5M

Previous: $13.3M-13.7%

Revenue & EPS history

ExlService · Revenue · Quarterly

$405M

Q2 2023+16.8%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

ExlService · $156M total across 2 segments · Q2 2023

  • Insurance
    $129M+18.4%
  • Healthcare and Life Sciences
    $27.2M+17.7%

Forward guidance

The company is increasing its revenue and EPS guidance for the full year 2023. They now expect revenue to be in the range of $1.605 billion to $1.625 billion and adjusted diluted earnings per share to be $6.90 to $7.05.

Tailwinds

  • Revenue of $1.605 billion to $1.625 billion, representing growth of 14% to 15% on both a reported and constant currency basis from 2022.
  • Adjusted diluted earnings per share of $6.90 to $7.05, representing growth of 15% to 17% from 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.7%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+2.3%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+15.0%

Q1 2010

Best reaction

-13.2%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%+4.5%-4.2%
Q4 2025-0.3%+8.6%+3.8%
Q3 2025-7.0%-5.6%-4.2%
Q1 2025+7.8%+3.5%+2.2%
Q4 2024-0.1%-1.8%-3.9%
Q3 2024+7.5%+7.5%+20.3%
Q2 2024-3.5%-3.2%+3.6%
Q1 2024+2.0%+5.6%+2.7%
Q4 2023+6.3%+4.5%+6.5%
Q3 2023+1.6%+3.5%+12.0%
Q2 2023-13.2%-14.2%-11.9%
Q1 2023+10.0%+8.9%-6.2%
Q4 2022-1.0%-3.3%-9.9%
Q3 2022+3.4%+8.2%+10.0%
Q2 2022+13.3%+14.0%+14.8%
Q1 2022-4.8%-4.2%+0.5%
Q4 2021+4.9%+7.6%+19.6%
Q3 2021+6.1%+11.5%+8.2%
Q2 2021+5.4%+9.5%+12.2%
Q1 2021-0.6%+3.0%+9.7%
Q4 2020+4.0%+5.0%+16.7%
Q3 2020+3.6%+7.9%+15.2%
Q2 2020+3.3%+3.1%-4.8%
Q1 2020-1.0%-6.2%+6.7%
Q4 2019+3.1%+5.8%-28.2%
Q3 2019+5.1%+4.3%+6.1%
Q2 2019+3.1%+1.5%+2.9%
Q1 2019-2.5%-0.5%-4.7%
Q4 2018-0.6%-1.6%-2.4%
Q3 2018-8.3%-9.7%-9.6%
Q2 2018-2.2%-1.1%+7.7%
Q1 2018-6.9%-6.7%-1.9%
Q4 2017-7.0%-7.3%-9.0%
Q3 2017+3.1%+3.0%+0.6%
Q2 2017+3.5%+4.9%-0.4%
Q1 2017+2.7%+3.9%+10.9%
Q4 2016-1.6%-3.2%-1.2%
Q3 2016-5.0%-6.7%+1.6%
Q2 2016-3.0%+1.2%-1.6%
Q1 2016-6.0%
Q4 2015+5.4%
Q3 2015+5.7%
Q2 2015+5.3%
Q1 2015+0.6%
Q4 2014+9.2%
Q3 2014+1.4%
Q2 2014-1.7%
Q1 2014+1.6%
Q4 2013+8.9%
Q3 2013-5.6%
Q2 2013-4.3%
Q1 2013-6.3%
Q4 2011+0.8%
Q1 2011+0.8%
Q4 2012+4.6%
Q3 2012-7.6%
Q2 2012-2.2%
Q1 2012-6.0%
Q4 2009+0.6%
Q3 2010-1.3%
Q3 2011-1.3%
Q4 2010-2.3%
Q2 2010-2.3%
Q2 2011-2.3%
Q1 2010+15.0%

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