NASDAQ$EXLS

ExlService Holdings Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

ExlService reported strong Q4 2022 results with revenue and EPS growth exceeding 25%.

ExlService Holdings, Inc. reported Q4 2022 revenue of $374.7 million, a 26.8% increase year-over-year. The company's Q4 diluted EPS (GAAP) was $0.94, up 13.3% from Q4 2021, and adjusted diluted EPS (Non-GAAP) was $1.56, up 28.9% from Q4 2021.

  • Q4 revenue increased by 26.8% year-over-year to $374.7 million.
  • Q4 diluted EPS (GAAP) increased by 13.3% year-over-year to $0.94.
  • Q4 adjusted diluted EPS (Non-GAAP) increased by 28.9% year-over-year to $1.56.
  • The company issued 2023 revenue guidance in the range of $1.56 billion to $1.60 billion and adjusted diluted EPS guidance in the range of $6.60 to $6.80.

Headline financials

Total Revenue

$375M

Previous: $295M+26.8%
EPS (adj)

$0.31

Previous: $0.24+29.2%
Gross Margin

36.6%

Previous: 37.8%-3.2%
Operating Margin

13.6%

Previous: 12.2%+11.5%
Capital Expenditures

$12.7M

Previous: $8.22M+54.9%
Free Cash Flow

$52.3M

Previous: $62.4M-16.2%
Net Income

$31.8M

Previous: $28.3M+12.5%
Operating Income

$51M

Previous: $36.1M+41.4%
Gross Profit

$137M

Previous: $112M+22.8%
Cash & Equivalents

$119M

Previous: $135M-12.3%
Total Assets

$1.35B

Previous: $1.28B+4.9%
Stock-Based Comp

$12.6M

Previous: $9.83M+28.4%

Revenue & EPS history

ExlService · Revenue · Quarterly

$375M

Q4 2022+26.8%vs Q4 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

ExlService · $146M total across 2 segments · Q4 2022

  • Insurance
    $121M+23.0%
  • Healthcare and Life Sciences
    $25.3M-4.5%

Forward guidance

EXL anticipates double-digit revenue and EPS growth in 2023. Revenue is projected to be in the range of $1.56 billion to $1.60 billion, representing an 11% to 13% increase year-over-year. Adjusted diluted EPS is expected to be in the range of $6.60 to $6.80, representing a 10% to 13% increase over 2022.

Tailwinds

  • Revenue of $1.56 billion to $1.60 billion, representing an increase of 11% to 13% on a reported basis from 2022.
  • Revenue increase of 11% to 14% on a constant currency basis from 2022.
  • Adjusted diluted earnings per share of $6.60 to $6.80, representing an increase of 10% to 13% from 2022.
  • Strong pipeline
  • Differentiated solutions

Headwinds

  • Potential for recessionary headwinds later in the year.
  • Guidance based on specific currency exchange rates.
  • Uncertainties and factors relating to EXL's operations and business environment.
  • Ability to maintain and grow client demand.
  • Ability to hire and retain sufficiently trained employees.

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 Q4 2022

Historical avgQ4 2022

+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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