EXL Reports 2023 Fourth Quarter and Year-End Results(1); Issues 2024 Guidance
- Strong financial performance for ExlService Holdings, Inc. in Q4 2023 and full year 2023.
- Q4 2023 revenue of $414.1 million, up 10.5% year-over-year.
- Q4 Diluted EPS (GAAP) of $0.24, up 28.2% from Q4 2022.
- 2023 revenue of $1.63 billion, up 15.5% year-over-year.
- 2023 Diluted EPS (GAAP) of $1.10, up 29.9% from 2022.
- $500 million stock repurchase program authorized by the Board of Directors.
- 2024 revenue guidance of $1.78 billion to $1.82 billion with adjusted EPS of $1.56 to $1.62.
- New collaborations with AWS and Microsoft for generative AI solutions.
- Named in Newsweek's 2024 America's Most Responsible Companies list.
- Conference call scheduled to discuss Q4 and year-end results.
- None.
Insights
Revenue Growth Analysis: The reported year-over-year revenue growth of 10.5% and the 15.5% increase for the full year indicate a robust performance, particularly noteworthy given the challenging macro-economic environment and the reported industry-wide lower demand in IT services. This growth trajectory suggests that ExlService Holdings’ strategic pivot towards data and AI-led solutions has been well-received by the market. The company's focus on differentiated offerings appears to be gaining traction, which could be indicative of a competitive advantage in the data analytics and digital operations sectors.
EPS Growth Analysis: The increase in both GAAP and adjusted diluted EPS underscores operational efficiency and effective cost management. A GAAP EPS increase of 29.9% and an adjusted EPS increase of 19.1% year-over-year may reflect not only revenue growth but also improved margins and cost containment strategies. Investors would likely view the EPS growth as a positive signal of the company's profitability and financial health.
Market Positioning and Strategy: The company's strategic shift to an AI and data-centric approach addresses the growing demand for advanced analytics and AI capabilities in the market. By leveraging partnerships with AWS and Microsoft, ExlService Holdings is positioning itself at the forefront of technological innovation, which may enhance its appeal to potential clients and investors. The new client acquisitions, with 63 over the year, suggest effective market penetration and business expansion that could bolster future revenue streams.
Stock Repurchase Program: The announcement of a $500 million stock repurchase program signals management's confidence in the company's financial stability and commitment to delivering shareholder value. This move can be seen as a positive indicator of the company's future prospects and may contribute to stock price appreciation, albeit it should be noted that buybacks also reduce the equity available and may affect the stock's liquidity.
Economic Outlook and Guidance: Despite the acknowledgment of economic uncertainty, the guidance for 2024 projects a 9% to 12% increase in revenue and a 9% to 13% increase in adjusted diluted EPS. This forward-looking optimism suggests that the company expects to continue to outperform the industry average. However, investors should consider the potential impact of global economic factors, such as currency exchange rate fluctuations and the broader IT services industry's performance, which could affect these projections.
Capital Allocation: The balance sheet strength and solid free cash flow mentioned by the CFO point to a healthy financial structure. A strong balance sheet provides resilience against economic downturns and enables strategic investments that can drive long-term growth. The capital allocation strategy, including the stock repurchase program, reflects a proactive approach to managing capital in ways that could potentially enhance shareholder value.
2023 Fourth Quarter Revenue of
Q4 Diluted EPS (GAAP) of
Q4 Adjusted Diluted EPS (Non-GAAP) (2) of
2023 Revenue of
2023 Diluted EPS (GAAP) of
2023 Adjusted Diluted EPS (Non-GAAP) (2) of
NEW YORK, Feb. 29, 2024 (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 and full year ended December 31, 2023.
Rohit Kapoor, Vice Chairman and Chief Executive Officer, said, “In 2023, we achieved revenue growth of
Maurizio Nicolelli, Chief Financial Officer, said, “We ended 2023 with strong momentum across our business, a healthy balance sheet and solid free cash flow. While we are mindful of the economic uncertainty heading into 2024, we remain confident we will deliver above industry average revenue and EPS growth in 2024. Our guidance for 2024 revenue is in the range of
“Our Board of Directors authorized a
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- Prior period information has been adjusted to reflect the 5-for-1 forward stock split of our common stock effected in August 2023. See Note 19 – Capital Structure to our Annual Report on Form 10-K for the year ended December 31, 2023 for further details.
- 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: Fourth Quarter 2023
- Revenue for the quarter ended December 31, 2023 increased to
$414.1 million compared to$374.7 million for the fourth quarter of 2022, an increase of10.5% on a reported basis and10.1% on a constant currency basis. Revenue increased by0.8% sequentially on reported basis and constant currency basis, from the third quarter of 2023.
| Revenue | Gross Margin | ||||||||||||||
| Three months ended | Three months ended | ||||||||||||||
| Reportable Segments | December 31, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2023 | December 31, 2022 | September 30, 2023 | |||||||||
| (dollars in millions) | |||||||||||||||
| Insurance | $ | 139.1 | $ | 120.7 | $ | 136.4 | |||||||||
| Healthcare | 26.0 | 25.3 | 26.2 | ||||||||||||
| Emerging Business | 67.0 | 58.0 | 65.3 | ||||||||||||
| Analytics | 182.0 | 170.7 | 183.1 | ||||||||||||
| Revenues, net | $ | 414.1 | $ | 374.7 | $ | 411.0 | |||||||||
- Operating income margin for the quarter ended December 31, 2023 was
13.1% , compared to13.6% for the fourth quarter of 2022 and14.7% for the third quarter of 2023. Adjusted operating income margin for the quarter ended December 31, 2023 was17.8% , compared to18.0% for the fourth quarter of 2022 and20.0% for the third quarter of 2023. - Diluted earnings per share for the quarter ended December 31, 2023 was
$0.24 , compared to$0.19 for the fourth quarter of 2022 and$0.26 for the third quarter of 2023. Adjusted diluted earnings per share for the quarter ended December 31, 2023 was$0.35 , compared to$0.31 for the fourth quarter of 2022 and$0.37 for the third quarter of 2023.
Financial Highlights: Full Year 2023
- Revenue for the year ended December 31, 2023 increased to
$1.63 billion compared to$1.41 billion for the year ended December 31, 2022, an increase of15.5% on a reported basis and15.6% on a constant currency basis.
| Revenue | Gross Margin | |||||||||
| Year ended | Year ended | |||||||||
| Reportable Segments | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||
| (dollars in millions) | ||||||||||
| Insurance | $ | 529.9 | $ | 448.7 | ||||||
| Healthcare | 106.0 | 97.4 | ||||||||
| Emerging Business | 265.7 | 218.6 | ||||||||
| Analytics | 729.1 | 647.3 | ||||||||
| Revenues, net | $ | 1,630.7 | $ | 1,412.0 | ||||||
- Operating income margin for the year ended December 31, 2023 was
14.6% , compared to13.6% for the year ended December 31, 2022. Adjusted operating income margin for the year ended December 31, 2023 was19.3% , compared to18.3% for the year ended December 31, 2022. - Diluted earnings per share for the year ended December 31, 2023 was
$1.10 , compared to$0.85 for the year ended December 31, 2022. Adjusted diluted earnings per share for the year ended December 31, 2023 was$1.43 , compared to$1.20 for the year ended December 31, 2022.
Business Highlights: Fourth Quarter 2023
- Won 17 new clients in the fourth quarter of 2023, with 9 clients in the digital operations and solutions business and 8 clients in analytics. For the year, we won 63 new clients, with 35 of those clients in digital operations and solutions business and 28 in analytics.
- Formed a new collaboration with AWS for developing and delivering generative AI solutions through a cloud-native AI workbench, including the use of Amazon Bedrock for large language models.
- Established a new collaboration with Microsoft to co-develop and accelerate generative AI solutions for businesses to help clients drive growth, personalize customer experiences, unlock valuable insights and develop new offerings.
- Named in Newsweek’s 2024 America’s Most Responsible Companies list for fourth consecutive year.
2024 Guidance
Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 83.0, U.K. pound sterling to U.S. dollar exchange rate of 1.27, 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 2024:
- Revenue of
$1.78 billion to$1.82 billion , representing an increase of9% to12% on a reported basis, and constant currency basis, from 2023; and - Adjusted diluted earnings per share of
$1.56 t o$1.62 , representing an increase of9% to13% from 2023.
Conference Call
ExlService Holdings, Inc. will host a conference call on Thursday, Feb. 29, 2024, at 10:00 A.M. ET to discuss the Company’s fourth quarter and year-end 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. We partner with clients using a data and AI-led approach to reinvent business models, drive better business outcomes and unlock growth with speed. EXL harnesses the power of data, analytics, AI, and deep industry knowledge to transform operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media and retail, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have more than 54,000 employees 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 applicable law.
| EXLSERVICE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amount and share count) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Year ended December 31, | Three months ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenues, net | $ | 1,630,668 | $ | 1,412,044 | $ | 414,058 | $ | 374,703 | |||||||
| Cost of revenues(1) | 1,022,902 | 896,595 | 262,211 | 237,410 | |||||||||||
| Gross profit(1) | 607,766 | 515,449 | 151,847 | 137,293 | |||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative expenses | 198,294 | 169,016 | 53,730 | 46,118 | |||||||||||
| Selling and marketing expenses | 120,227 | 97,989 | 31,553 | 25,955 | |||||||||||
| Depreciation and amortization expense | 50,490 | 56,282 | 12,298 | 14,225 | |||||||||||
| Total operating expenses | 369,011 | 323,287 | 97,581 | 86,298 | |||||||||||
| Income from operations | 238,755 | 192,162 | 54,266 | 50,995 | |||||||||||
| Foreign exchange gain, net | 1,532 | 6,199 | 694 | 1,516 | |||||||||||
| Interest expense | (13,180 | ) | (8,252 | ) | (3,150 | ) | (3,432 | ) | |||||||
| Other income/(loss), net | 10,834 | (10 | ) | 4,240 | (4,508 | ) | |||||||||
| Income before income tax expense and earnings from equity affiliates | 237,941 | 190,099 | 56,050 | 44,571 | |||||||||||
| Income tax expense | 53,536 | 47,565 | 15,763 | 12,791 | |||||||||||
| Income before earnings from equity affiliates | 184,405 | 142,534 | 40,287 | 31,780 | |||||||||||
| Gain/(loss) from equity-method investment | 153 | 434 | (4 | ) | 69 | ||||||||||
| Net income attributable to ExlService Holdings, Inc. stockholders | $ | 184,558 | $ | 142,968 | $ | 40,283 | $ | 31,849 | |||||||
| Earnings per share attributable to ExlService Holdings, Inc. stockholders (2): | |||||||||||||||
| Basic | $ | 1.11 | $ | 0.86 | $ | 0.24 | $ | 0.19 | |||||||
| Diluted | $ | 1.10 | $ | 0.85 | $ | 0.24 | $ | 0.19 | |||||||
| Weighted-average number of shares used in computing earnings per share attributable to ExlService Holdings, Inc. stockholders (2): | |||||||||||||||
| Basic | 166,341,213 | 166,651,585 | 165,254,017 | 166,206,040 | |||||||||||
| Diluted | 168,161,371 | 169,169,290 | 166,880,836 | 169,177,485 | |||||||||||
(1) Exclusive of depreciation and amortization expense.
(2) Prior period information has been adjusted to reflect the 5-for-1 forward stock split of the Company’s common stock effected in August 2023.
| EXLSERVICE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per share amount and share count) | ||||||||
| As of | ||||||||
| December 31, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 136,953 | $ | 118,669 | ||||
| Short-term investments | 153,881 | 179,027 | ||||||
| Restricted cash | 4,062 | 4,897 | ||||||
| Accounts receivable, net | 308,108 | 259,222 | ||||||
| Other current assets | 76,669 | 50,979 | ||||||
| Total current assets | 679,673 | 612,794 | ||||||
| Property and equipment, net | 100,373 | 82,828 | ||||||
| Operating lease right-of-use assets | 64,856 | 55,347 | ||||||
| Restricted cash | 4,386 | 2,055 | ||||||
| Deferred tax assets, net | 82,927 | 55,791 | ||||||
| Goodwill | 405,639 | 405,637 | ||||||
| Other intangible assets, net | 50,164 | 64,819 | ||||||
| Long-term investments | 4,430 | 34,779 | ||||||
| Other assets | 49,524 | 32,069 | ||||||
| Total assets | $ | 1,441,972 | $ | 1,346,119 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,055 | $ | 7,789 | ||||
| Current portion of long-term borrowings | 65,000 | 30,000 | ||||||
| Deferred revenue | 12,318 | 18,782 | ||||||
| Accrued employee costs | 117,137 | 108,100 | ||||||
| Accrued expenses and other current liabilities | 112,900 | 95,352 | ||||||
| Current portion of operating lease liabilities | 12,780 | 14,978 | ||||||
| Income taxes payable, net | 1,213 | 2,945 | ||||||
| Total current liabilities | 326,403 | 277,946 | ||||||
| Long-term borrowings, less current portion | 135,000 | 220,000 | ||||||
| Operating lease liabilities, less current portion | 58,175 | 48,155 | ||||||
| Deferred tax liabilities, net | 1,495 | 547 | ||||||
| Other non-current liabilities | 31,462 | 41,292 | ||||||
| Total liabilities | 552,535 | 587,940 | ||||||
| Commitments and contingencies | ||||||||
| ExlService Holdings, Inc. Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 203 | 200 | ||||||
| Additional paid-in capital (1) | 508,028 | 444,948 | ||||||
| Retained earnings | 1,083,663 | 899,105 | ||||||
| Accumulated other comprehensive loss | (127,040 | ) | (144,143 | ) | ||||
| Total including shares held in treasury | 1,464,854 | 1,200,110 | ||||||
| Less: 38,132,158 shares as of December 31, 2023 and 33,767,660 shares as of December 31, 2022, held in treasury, at cost (1) | (575,417 | ) | (441,931 | ) | ||||
| Total stockholders’ equity | 889,437 | 758,179 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,441,972 | $ | 1,346,119 | ||||
(1) Prior period information has been adjusted to reflect the 5-for-1 forward stock split of the Company’s common stock effected in August 2023.
EXLSERVICE HOLDINGS, INC.
Reconciliation of Adjusted Financial Measures to GAAP Measures
In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:
(i) Adjusted operating income and adjusted operating income margin;
(ii) Adjusted EBITDA and adjusted EBITDA margin;
(iii) Adjusted net income and adjusted diluted earnings per share; and
(iv) Revenue growth on constant currency basis.
These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.
EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, provision for litigation matters, effects of termination of leases, certain defined social security contributions, allowance for certain material expected credit losses, other acquisition-related expenses or benefits and effect of any non-recurring tax adjustments. Acquisition-related expenses or benefits include, changes in the fair value of contingent consideration, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits or losses. Our adjusted net income and adjusted diluted EPS also excludes the effects of income tax on the above pre-tax items, as applicable. The effects of income tax of each item is calculated by applying the statutory rate of the local tax regulations in the jurisdiction in which the item was incurred.
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 accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.
EXL’s primary exchange rate exposure is with the Indian rupee, the U.K. pound sterling and the Philippine peso. The average exchange rate of the U.S. dollar against the Indian rupee increased from 82.31 during the quarter ended December 31, 2022 to 83.28 during the quarter ended December 31, 2023, representing a depreciation of
The following table shows the reconciliation of these non-GAAP financial measures for the year ended December 31, 2023 and 2022, the three months ended December 31, 2023 and 2022 and the three months ended September 30, 2023:
| Reconciliation of Adjusted Operating Income and Adjusted EBITDA (Amounts in thousands) | ||||||||||||||||||||
| Year ended | Three months ended | |||||||||||||||||||
| December 31, | December 31, | September 30, | ||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | ||||||||||||||||
| Net Income (GAAP) | $ | 184,558 | $ | 142,968 | $ | 40,283 | $ | 31,849 | $ | 43,876 | ||||||||||
| add: Income tax expense | 53,536 | 47,565 | 15,763 | 12,791 | 14,161 | |||||||||||||||
| add/(subtract): Foreign exchange gain, net, interest expense, gain/(loss) from equity-method investment and other income/(loss), net | 661 | 1,629 | (1,780 | ) | 6,355 | 2,193 | ||||||||||||||
| Income from operations (GAAP) | $ | 238,755 | $ | 192,162 | $ | 54,266 | $ | 50,995 | $ | 60,230 | ||||||||||
| add: Stock-based compensation expense | 58,437 | 49,366 | 15,452 | 12,616 | 17,067 | |||||||||||||||
| add: Amortization of acquisition-related intangibles | 14,678 | 17,109 | 3,168 | 4,234 | 3,157 | |||||||||||||||
| add/(subtract): Allowance/(reversal) for expected credit losses (a) | 1,436 | — | (264 | ) | — | 1,700 | ||||||||||||||
| add/(subtract): Other expenses/(benefits) (b) | 1,384 | (40 | ) | 895 | (560 | ) | — | |||||||||||||
| Adjusted operating income (Non-GAAP) | $ | 314,690 | $ | 258,597 | $ | 73,517 | $ | 67,285 | $ | 82,154 | ||||||||||
| Adjusted operating income margin as a % of Revenue (Non-GAAP) | 19.3 | % | 18.3 | % | 17.8 | % | 18.0 | % | 20.0 | % | ||||||||||
| add: Depreciation on long-lived assets | 34,434 | 38,869 | 9,130 | 9,687 | 8,426 | |||||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 349,124 | $ | 297,466 | $ | 82,647 | $ | 76,972 | $ | 90,580 | ||||||||||
| Adjusted EBITDA margin as a % of revenue (Non-GAAP) | 21.4 | % | 21.1 | % | 20.0 | % | 20.5 | % | 22.0 | % | ||||||||||
(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 matters of
| Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share (Amounts in thousands, except per share data) | ||||||||||||||||||||
| Year ended | Three months ended | |||||||||||||||||||
| December 31, | December 31, | September 30, | ||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | ||||||||||||||||
| Net income (GAAP) | $ | 184,558 | $ | 142,968 | $ | 40,283 | $ | 31,849 | $ | 43,876 | ||||||||||
| add: Stock-based compensation expense | 58,437 | 49,366 | 15,452 | 12,616 | 17,067 | |||||||||||||||
| add: Amortization of acquisition-related intangibles | 14,678 | 17,109 | 3,168 | 4,234 | 3,157 | |||||||||||||||
| add/(subtract): Allowance/(reversal) for expected credit losses (a) | 1,436 | — | (264 | ) | — | 1,700 | ||||||||||||||
| add/(subtract): Changes in fair value of contingent consideration | 1,900 | 8,500 | (600 | ) | 7,500 | 2,500 | ||||||||||||||
| add/(subtract): Other expenses/(benefits) (b) | 1,102 | 635 | 613 | (560 | ) | — | ||||||||||||||
| subtract: Tax impact on stock-based compensation expense (c) | (17,333 | ) | (9,785 | ) | (374 | ) | (930 | ) | (4,340 | ) | ||||||||||
| subtract: Tax impact on amortization of acquisition-related intangibles | (3,622 | ) | (4,151 | ) | (792 | ) | (1,134 | ) | (771 | ) | ||||||||||
| add/(subtract): Tax impact on allowance/(reversal) for expected credit losses | (364 | ) | — | 65 | — | (429 | ) | |||||||||||||
| add: Tax impact on changes in fair value of contingent consideration | 152 | — | 152 | — | — | |||||||||||||||
| add/(subtract): Tax impact on other expenses/(benefits) | (280 | ) | (29 | ) | (157 | ) | 141 | — | ||||||||||||
| add/(subtract): Other tax expenses/(benefits) (d) | 223 | (1,079 | ) | 223 | (1,079 | ) | — | |||||||||||||
| Adjusted net income (Non-GAAP) | $ | 240,887 | $ | 203,534 | $ | 57,769 | $ | 52,637 | $ | 62,760 | ||||||||||
| Adjusted diluted earnings per share (Non-GAAP) | $ | 1.43 | $ | 1.20 | $ | 0.35 | $ | 0.31 | $ | 0.37 | ||||||||||
(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 matters of
(c) Tax impact includes
(d) To exclude other tax expenses/(benefits) related to certain deferred tax assets and liabilities.
Contacts:
Investor Relations
John Kristoff
Vice President, Investor Relations
+1 212 209 4613
ir@exlservice.com
Media - US
Keith Little
Senior Manager, Media Relations
+1 703 598 0980
media.relations@exlservice.com
Media - UK, Europe, and APAC
Anna Price
First Light Group
+44 202 617 7240
exlteam@firstlightgroup.io
Media - India
Shailendra Singh
Vice President Corporate Communications
+91 9810476075
shailendra.singh@exlservice.com
FAQ
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