EXL Reports 2024 Fourth Quarter and Year-End Results; Issues 2025 Guidance
EXL (NASDAQ: EXLS) reported strong financial results for Q4 and full-year 2024. Q4 revenue reached $481.4 million, up 16.3% year-over-year, while full-year revenue grew 12.7% to $1.84 billion.
Q4 diluted EPS (GAAP) increased 28.4% to $0.31, and adjusted diluted EPS rose 26.1% to $0.44. For the full year, diluted EPS grew 10% to $1.21, with adjusted EPS up 15.4% to $1.65.
Key achievements in 2024 included launching an enterprise AI platform with NVIDIA, introducing an insurance-specific LLM, and acquiring ITI Data. The company won 69 new clients throughout the year.
For 2025, EXL projects revenue between $2.025-2.060 billion (10-12% growth) and adjusted EPS of $1.83-1.89 (11-14% increase). The company also announced a new operating model focused on Industry Market Units and Strategic Growth Units to accelerate its data and AI strategy.
EXL (NASDAQ: EXLS) ha riportato risultati finanziari solidi per il Q4 e per l'intero anno 2024. I ricavi del Q4 hanno raggiunto $481,4 milioni, con un aumento del 16,3% rispetto all'anno precedente, mentre i ricavi per l'intero anno sono cresciuti del 12,7% a $1,84 miliardi.
L'EPS diluito (GAAP) del Q4 è aumentato del 28,4% a $0,31, e l'EPS diluito rettificato è salito del 26,1% a $0,44. Per l'intero anno, l'EPS diluito è cresciuto del 10% a $1,21, con un EPS rettificato in aumento del 15,4% a $1,65.
I risultati chiave del 2024 includono il lancio di una piattaforma AI per imprese con NVIDIA, l'introduzione di un LLM specifico per le assicurazioni e l'acquisizione di ITI Data. L'azienda ha acquisito 69 nuovi clienti nel corso dell'anno.
Per il 2025, EXL prevede ricavi tra $2,025-2,060 miliardi (crescita del 10-12%) e un EPS rettificato di $1,83-1,89 (incremento dell'11-14%). L'azienda ha anche annunciato un nuovo modello operativo incentrato sulle Unità di Mercato Industriale e sulle Unità di Crescita Strategica per accelerare la sua strategia di dati e AI.
EXL (NASDAQ: EXLS) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. Los ingresos del cuarto trimestre alcanzaron $481.4 millones, un aumento del 16.3% interanual, mientras que los ingresos del año completo crecieron un 12.7% a $1.84 mil millones.
El EPS diluido (GAAP) del cuarto trimestre aumentó un 28.4% a $0.31, y el EPS diluido ajustado creció un 26.1% a $0.44. Para el año completo, el EPS diluido creció un 10% a $1.21, con el EPS ajustado en aumento del 15.4% a $1.65.
Los logros clave en 2024 incluyeron el lanzamiento de una plataforma de IA empresarial con NVIDIA, la introducción de un LLM específico para seguros y la adquisición de ITI Data. La compañía ganó 69 nuevos clientes a lo largo del año.
Para 2025, EXL proyecta ingresos entre $2.025-2.060 mil millones (crecimiento del 10-12%) y un EPS ajustado de $1.83-1.89 (aumento del 11-14%). La compañía también anunció un nuevo modelo operativo centrado en Unidades de Mercado Industrial y Unidades de Crecimiento Estratégico para acelerar su estrategia de datos e IA.
EXL (NASDAQ: EXLS)는 2024년 4분기 및 연간 재무 결과가 강력하다고 보고했습니다. 4분기 매출은 $481.4백만에 달하며, 전년 대비 16.3% 증가했습니다. 전체 연간 매출은 12.7% 증가하여 $1.84억에 도달했습니다.
4분기 희석 EPS (GAAP)는 28.4% 증가하여 $0.31에 이르렀고, 조정된 희석 EPS는 26.1% 증가하여 $0.44에 도달했습니다. 연간 희석 EPS는 10% 증가하여 $1.21에 도달했으며, 조정된 EPS는 15.4% 증가하여 $1.65에 도달했습니다.
2024년의 주요 성과로는 NVIDIA와의 기업 AI 플랫폼 출시, 보험 전용 LLM 도입, ITI Data 인수가 포함됩니다. 회사는 연간 69명의 신규 고객을 확보했습니다.
2025년을 위해 EXL은 $2.025-2.060억의 매출(10-12% 성장)과 $1.83-1.89의 조정 EPS(11-14% 증가)를 예상하고 있습니다. 또한 데이터 및 AI 전략을 가속화하기 위해 산업 시장 부문 및 전략적 성장 부문에 중점을 둔 새로운 운영 모델을 발표했습니다.
EXL (NASDAQ: EXLS) a annoncé des résultats financiers solides pour le quatrième trimestre et l'année complète 2024. Les revenus du quatrième trimestre ont atteint $481,4 millions, en hausse de 16,3 % par rapport à l'année précédente, tandis que les revenus pour l'année complète ont augmenté de 12,7 % pour atteindre $1,84 milliard.
Le BPA dilué (GAAP) du quatrième trimestre a augmenté de 28,4 % pour atteindre $0,31, et le BPA dilué ajusté a augmenté de 26,1 % pour atteindre $0,44. Pour l'année complète, le BPA dilué a augmenté de 10 % pour atteindre $1,21, avec un BPA ajusté en hausse de 15,4 % à $1,65.
Les réalisations clés de 2024 comprennent le lancement d'une plateforme AI d'entreprise avec NVIDIA, l'introduction d'un LLM spécifique aux assurances et l'acquisition d'ITI Data. L'entreprise a remporté 69 nouveaux clients tout au long de l'année.
Pour 2025, EXL prévoit des revenus compris entre $2,025-2,060 milliards (croissance de 10-12 %) et un BPA ajusté de $1,83-1,89 (augmentation de 11-14 %). L'entreprise a également annoncé un nouveau modèle opérationnel axé sur les unités de marché industriel et les unités de croissance stratégique pour accélérer sa stratégie de données et d'IA.
EXL (NASDAQ: EXLS) hat starke Finanzergebnisse für das vierte Quartal und das gesamte Jahr 2024 gemeldet. Die Einnahmen im vierten Quartal erreichten $481,4 Millionen, was einem Anstieg von 16,3% im Vergleich zum Vorjahr entspricht, während die Gesamteinnahmen für das Jahr um 12,7% auf $1,84 Milliarden wuchsen.
Der verwässerte EPS (GAAP) im vierten Quartal stieg um 28,4% auf $0,31, und der bereinigte verwässerte EPS stieg um 26,1% auf $0,44. Für das gesamte Jahr wuchs der verwässerte EPS um 10% auf $1,21, während der bereinigte EPS um 15,4% auf $1,65 stieg.
Zu den wichtigsten Erfolgen im Jahr 2024 gehörten die Einführung einer Unternehmens-AI-Plattform mit NVIDIA, die Einführung eines versicherungsspezifischen LLM und die Übernahme von ITI Data. Das Unternehmen gewann im Laufe des Jahres 69 neue Kunden.
Für 2025 prognostiziert EXL Einnahmen zwischen $2,025-2,060 Milliarden (Wachstum von 10-12%) und einen bereinigten EPS von $1,83-1,89 (Steigerung von 11-14%). Das Unternehmen kündigte außerdem ein neues Betriebsmodell an, das sich auf Industrie-Markteinheiten und strategische Wachstumseinheiten konzentriert, um seine Daten- und AI-Strategie zu beschleunigen.
- Q4 revenue up 16.3% YoY to $481.4M
- Full-year revenue increased 12.7% to $1.84B
- Q4 adjusted EPS grew 26.1% to $0.44
- Operating income margin improved to 14.8% in Q4 from 13.1% YoY
- Won 69 new clients in 2024
- Strong 2025 guidance: 10-12% revenue growth
- Full-year operating income margin declined to 14.3% from 14.6% in 2023
- Q4 sequential adjusted operating margin decreased to 18.8% from 19.9% in Q3
Insights
EXL delivered impressive Q4 and full-year 2024 results, demonstrating successful execution of its strategic pivot from a traditional BPO provider to a data and AI company. Q4 revenue reached
The company's profitability metrics reveal an interesting dynamic. Q4 operating margin improved to
EXL's 2025 guidance projects continued double-digit growth with revenue of
The most strategically significant announcement is EXL's operating model restructuring into Industry Market Units and Strategic Growth Units. This shift from service-based to industry-focused organization signals a fundamental transformation in how EXL approaches the market. The corresponding change in financial reporting segments will require investors to recalibrate their analysis frameworks, but ultimately provides better visibility into industry-specific performance and the company's AI penetration across sectors.
EXL's AI initiatives—including the NVIDIA partnership for an enterprise AI platform (EXLerate.AI), insurance-specific LLM development, and recognition as a Leader in ISG's Generative AI Services report—demonstrate tangible progress in repositioning as a data and AI company. The strong client acquisition metrics (17 new clients in Q4, 69 for full-year) validate market receptivity to this strategic evolution.
While the restructuring introduces short-term execution risks as teams realign, the long-term benefits of deeper industry specialization and more integrated solution delivery should accelerate EXL's growth trajectory in the expanding AI services market, currently estimated at
2024 Fourth Quarter Revenue of
Q4 Diluted EPS (GAAP) of
Q4 Adjusted Diluted EPS (Non-GAAP) (1) of
2024 Revenue of
2024 Diluted EPS (GAAP) of
2024 Adjusted Diluted EPS (Non-GAAP) (1) of
NEW YORK, Feb. 25, 2025 (GLOBE NEWSWIRE) -- ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter and full year ended December 31, 2024.
Rohit Kapoor, chairman and chief executive officer, said, “As we executed our data and AI strategy in 2024, we achieved several key milestones, including launching an enterprise AI platform in partnership with NVIDIA, introducing our insurance-specific large language model (LLM) and expanding our data management capabilities with the acquisition of ITI Data. Our focus on innovating with speed led to industry-leading full-year revenue growth of
Maurizio Nicolelli, chief financial officer, said, “We finished 2024 with robust growth across our business segments, a formidable balance sheet and strong free cash flow. For the full year 2025, we expect revenue to be in the range of
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- 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 2024
- Revenue for the quarter ended December 31, 2024 increased to
$481.4 million compared to$414.1 million for the fourth quarter of 2023, an increase of16.3% on a reported basis and constant currency basis. Revenue increased by2.0% sequentially on a reported basis and2.4% on a constant currency basis, from the third quarter of 2024.
| Revenue | Gross Margin | ||||||||||||||||||||
| Three months ended | Three months ended | ||||||||||||||||||||
| Reportable Segments | December 31, 2024 | December 31, 2023 | September 30, 2024 | December 31, 2024 | December 31, 2023 | September 30, 2024 | |||||||||||||||
| (dollars in millions) | |||||||||||||||||||||
| Insurance | $ | 162.0 | $ | 139.1 | $ | 157.6 | 36.9 | % | 36.2 | % | 36.3 | % | |||||||||
| Healthcare | 31.6 | 26.0 | 30.5 | 31.7 | % | 36.9 | % | 33.6 | % | ||||||||||||
| Emerging Business | 80.1 | 67.0 | 80.0 | 40.7 | % | 41.0 | % | 40.2 | % | ||||||||||||
| Analytics | 207.7 | 182.0 | 204.0 | 39.0 | % | 35.4 | % | 38.5 | % | ||||||||||||
| Revenues, net | $ | 481.4 | $ | 414.1 | $ | 472.1 | 38.1 | % | 36.7 | % | 37.8 | % | |||||||||
- Operating income margin for the quarter ended December 31, 2024 was
14.8% , compared to13.1% for the fourth quarter of 2023 and14.7% for the third quarter of 2024. Adjusted operating income margin for the quarter ended December 31, 2024 was18.8% , compared to17.8% for the fourth quarter of 2023 and19.9% for the third quarter of 2024. - Diluted earnings per share for the quarter ended December 31, 2024 was
$0.31 , compared to$0.24 for the fourth quarter of 2023 and$0.33 for the third quarter of 2024. Adjusted diluted earnings per share for the quarter ended December 31, 2024 was$0.44 , compared to$0.35 for the fourth quarter of 2023 and$0.44 for the third quarter of 2024.
Financial Highlights: Full Year 2024
- Revenue for the year ended December 31, 2024 increased to
$1.84 billion compared to$1.63 billion for the year ended December 31, 2023, an increase of12.7% on a reported basis and constant currency basis.
| Revenue | Gross Margin | |||||||||||||
| Year ended | Year ended | |||||||||||||
| Reportable Segments | December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||||
| (dollars in millions) | ||||||||||||||
| Insurance | $ | 614.0 | $ | 529.9 | 36.4 | % | 35.5 | % | ||||||
| Healthcare | 116.4 | 106.0 | 33.0 | % | 34.6 | % | ||||||||
| Emerging Business | 311.7 | 265.7 | 41.8 | % | 43.2 | % | ||||||||
| Analytics | 796.3 | 729.1 | 37.5 | % | 36.8 | % | ||||||||
| Revenues, net | $ | 1,838.4 | $ | 1,630.7 | 37.6 | % | 37.3 | % | ||||||
- Operating income margin for the year ended December 31, 2024 was
14.3% , compared to14.6% for the year ended December 31, 2023. Adjusted operating income margin for the year ended December 31, 2024 was19.4% , compared to19.3% for the year ended December 31, 2023. - Diluted earnings per share for the year ended December 31, 2024 was
$1.21 , compared to$1.10 for the year ended December 31, 2023. Adjusted diluted earnings per share for the year ended December 31, 2024 was$1.65 , compared to$1.43 for the year ended December 31, 2023.
Business Highlights: Fourth Quarter 2024
- Won 17 new clients in the fourth quarter of 2024, with 8 clients in digital operations and solutions and 9 in analytics. For the year, we won 69 new clients, with 32 in digital operations and solutions and 37 in analytics.
- Launched EXLerate.AI, an agentic AI platform designed to help enterprises reimagine and build AI-native workflows that drive greater efficiency, lower costs, and increased accuracy and scalability across business operations.
- Named a Leader in the ISG Provider Lens™ Generative AI Services 2024 report. Analysts cited EXL’s data integration capabilities, domain-specific expertise, and robust transformational framework as key differentiators driving its leadership in this space.
- Recognized as a Market Leader in the HFS Research 2024 AADA Quadfecta Services for the Generative Enterprise™ 2024 study. The study evaluated 27 leading analytics, AI, data platforms, and automation service providers on their ability to unlock deep insights from data, automate complex processes, and enhance operational efficiencies. The Market Leader designation is the report’s highest distinction.
2025 Operating Model
To accelerate the execution of our data and AI strategy, capture a greater share of the growing AI market and drive EXL’s long-term growth, the company is changing its operating model. The new model is comprised of Industry Market Units focused on delivering higher value to clients leveraging our full suite of capabilities; and Strategic Growth Units focused on rapidly advancing our capabilities specific to various industries and client needs.
This enhances our ability to deepen client relationships, unlock new buying centers, expand our addressable markets across industries and geographies, accelerate investments in data and AI capabilities and industry-specific solutions, and create more professional development opportunities for our employees. This model enables us to deliver AI-powered integrated solutions more effectively and evolve engagements to maximize value for our clients.
EXL will adopt new financial reporting segments consistent with how management will be reviewing financial information and making operating decisions beginning in the first quarter of 2025. Our data, AI and analytics capabilities are driving all our solutions and business lines. Accordingly, we will now report data and AI revenue alongside our new reporting segments beginning with the first quarter of 2025. This shift will provide a higher quality and more relevant representation of our business performance as we continue executing our data and AI growth strategy. The new reportable segments, aligned to our Industry Market Units, are as follows:
- Insurance
- Healthcare and Life Sciences
- Banking, Capital Markets and Diversified Industries
- International Growth Markets
The change in segment presentation will not have any effect on our consolidated statements of income, balance sheets or cash flows. The revised presentation will be reflected in our periodic and annual reports beginning in the first quarter of 2025.
2025 Guidance
Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 87.0, U.K. pound sterling to U.S. dollar exchange rate of 1.25, U.S. dollar to the Philippine peso exchange rate of 58.0 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2025:
- Revenue of
$2.02 5 billion to$2.06 0 billion, representing an increase of10% to12% on a reported basis, and11% to13% on a constant currency basis, from 2024; and - Adjusted diluted earnings per share of
$1.83 t o$1.89 , representing an increase of11% to14% from 2024.
Conference Call
ExlService Holdings, Inc. will host a conference call on Wednesday, February 26, 2025, 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.
To join the live call, please register here. 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 global data and artificial intelligence ("AI") company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including 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 59,000 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, risks related to the use of AI technology, impact on client demand by the selling cycle of our contracts, fluctuations in our earnings, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, 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, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues, net | $ | 1,838,372 | $ | 1,630,668 | $ | 481,426 | $ | 414,058 | |||||||
| Cost of revenues(1) | 1,147,359 | 1,022,902 | 298,023 | 262,211 | |||||||||||
| Gross profit(1) | 691,013 | 607,766 | 183,403 | 151,847 | |||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative expenses | 225,672 | 198,294 | 58,477 | 53,730 | |||||||||||
| Selling and marketing expenses | 146,502 | 120,227 | 37,520 | 31,553 | |||||||||||
| Depreciation and amortization expense | 55,219 | 50,490 | 16,164 | 12,298 | |||||||||||
| Total operating expenses | 427,393 | 369,011 | 112,161 | 97,581 | |||||||||||
| Income from operations | 263,620 | 238,755 | 71,242 | 54,266 | |||||||||||
| Foreign exchange gain, net | 891 | 1,532 | 218 | 694 | |||||||||||
| Interest expense | (19,256 | ) | (13,180 | ) | (5,111 | ) | (3,150 | ) | |||||||
| Other income/(expense), net | 16,092 | 10,834 | 4,216 | 4,240 | |||||||||||
| Income before income tax expense and earnings from equity affiliates | 261,347 | 237,941 | 70,565 | 56,050 | |||||||||||
| Income tax expense | 62,936 | 53,536 | 19,850 | 15,763 | |||||||||||
| Income before earnings from equity affiliates | 198,411 | 184,405 | 50,715 | 40,287 | |||||||||||
| Gain/(loss) from equity-method investment | (114 | ) | 153 | (43 | ) | (4 | ) | ||||||||
| Net income | $ | 198,297 | $ | 184,558 | $ | 50,672 | $ | 40,283 | |||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 1.22 | $ | 1.11 | $ | 0.31 | $ | 0.24 | |||||||
| Diluted | $ | 1.21 | $ | 1.10 | $ | 0.31 | $ | 0.24 | |||||||
| Weighted average number of shares used in computing earnings per share: | |||||||||||||||
| Basic | 162,718,840 | 166,341,213 | 161,292,473 | 165,254,017 | |||||||||||
| Diluted | 164,321,656 | 168,161,371 | 163,436,793 | 166,880,836 | |||||||||||
(1) Exclusive of depreciation and amortization expense.
| EXLSERVICE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per share amount and share count) | ||||||||
| As of | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 153,355 | $ | 136,953 | ||||
| Short-term investments | 187,223 | 153,881 | ||||||
| Restricted cash | 9,972 | 4,062 | ||||||
| Accounts receivable, net | 304,322 | 308,108 | ||||||
| Other current assets | 140,317 | 76,669 | ||||||
| Total current assets | 795,189 | 679,673 | ||||||
| Property and equipment, net | 101,837 | 100,373 | ||||||
| Operating lease right-of-use assets | 68,784 | 64,856 | ||||||
| Restricted cash | 8,071 | 4,386 | ||||||
| Deferred tax assets, net | 104,747 | 82,927 | ||||||
| Goodwill | 420,387 | 405,639 | ||||||
| Other intangible assets, net | 49,331 | 50,164 | ||||||
| Long-term investments | 13,972 | 4,430 | ||||||
| Other assets | 56,085 | 49,524 | ||||||
| Total assets | $ | 1,618,403 | $ | 1,441,972 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,884 | $ | 5,055 | ||||
| Current portion of long-term borrowings | 4,886 | 65,000 | ||||||
| Deferred revenue | 19,264 | 12,318 | ||||||
| Accrued employee costs | 129,994 | 117,137 | ||||||
| Accrued expenses and other current liabilities | 113,597 | 114,113 | ||||||
| Current portion of operating lease liabilities | 16,491 | 12,780 | ||||||
| Total current liabilities | 290,116 | 326,403 | ||||||
| Long-term borrowings, less current portion | 283,598 | 135,000 | ||||||
| Operating lease liabilities, less current portion | 59,851 | 58,175 | ||||||
| Deferred tax liabilities, net | 1,403 | 1,495 | ||||||
| Other non-current liabilities | 53,573 | 31,462 | ||||||
| Total liabilities | 688,541 | 552,535 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 206 | 203 | ||||||
| Additional paid-in capital | 588,583 | 508,028 | ||||||
| Retained earnings | 1,281,960 | 1,083,663 | ||||||
| Accumulated other comprehensive loss | (154,722 | ) | (127,040 | ) | ||||
| Total including shares held in treasury | 1,716,027 | 1,464,854 | ||||||
| Less: 44,709,375 shares as of December 31, 2024 and 38,132,158 shares as of December 31, 2023, held in treasury, at cost | (786,165 | ) | (575,417 | ) | ||||
| Total stockholders’ equity | 929,862 | 889,437 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,618,403 | $ | 1,441,972 | ||||
| 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 restructuring and litigation settlement 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 Philippine peso, the U.K. pound sterling and the South African rand. The average exchange rate of the U.S. dollar against the Indian rupee increased from 83.28 during the quarter ended December 31, 2023 to 84.72 during the quarter ended December 31, 2024, representing a depreciation of
The following table shows the reconciliation of these non-GAAP financial measures for the year ended December 31, 2024 and 2023, the three months ended December 31, 2024 and 2023 and the three months ended September 30, 2024:
| Reconciliation of Adjusted Operating Income and Adjusted EBITDA (Amounts in thousands) | ||||||||||||||||||||
| Year ended | Three months ended | |||||||||||||||||||
| December 31, | December 31, | September 30, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | ||||||||||||||||
| Net income (GAAP) | $ | 198,297 | $ | 184,558 | $ | 50,672 | $ | 40,283 | $ | 53,037 | ||||||||||
| add: Income tax expense | 62,936 | 53,536 | 19,850 | 15,763 | 15,460 | |||||||||||||||
| add/(subtract): Foreign exchange gain, net, interest expense, gain/(loss) from equity-method investment and other income/(loss), net | 2,387 | 661 | 720 | (1,780 | ) | 908 | ||||||||||||||
| Income from operations (GAAP) | $ | 263,620 | $ | 238,755 | $ | 71,242 | $ | 54,266 | $ | 69,405 | ||||||||||
| add: Stock-based compensation expense | 72,658 | 58,437 | 15,479 | 15,452 | 21,232 | |||||||||||||||
| add: Amortization of acquisition-related intangibles | 13,630 | 14,678 | 4,024 | 3,168 | 3,449 | |||||||||||||||
| add: Restructuring and litigation settlement costs (a) | 6,174 | 613 | — | 613 | — | |||||||||||||||
| add/(subtract): Allowance/(reversal) for expected credit losses (b) | — | 1,436 | — | (264 | ) | — | ||||||||||||||
| add: Other expenses (c) | — | 771 | — | 282 | — | |||||||||||||||
| Adjusted operating income (Non-GAAP) | $ | 356,082 | $ | 314,690 | $ | 90,745 | $ | 73,517 | $ | 94,086 | ||||||||||
| Adjusted operating income margin as a % of Revenue (Non-GAAP) | 19.4 | % | 19.3 | % | 18.8 | % | 17.8 | % | 19.9 | % | ||||||||||
| add: Depreciation on long-lived assets | 41,589 | 34,434 | 12,140 | 9,130 | 10,350 | |||||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 397,671 | $ | 349,124 | $ | 102,885 | $ | 82,647 | $ | 104,436 | ||||||||||
| Adjusted EBITDA margin as a % of revenue (Non-GAAP) | 21.6 | % | 21.4 | % | 21.4 | % | 20.0 | % | 22.1 | % | ||||||||||
(a) To exclude effects of employee severance costs and outplacement support costs of
(b) To exclude the effects of material allowance/(reversal) for expected credit losses on accounts receivables related to a customer bankruptcy event.
(c) To exclude effects of lease termination of $nil and
| 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, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | ||||||||||||||||
| Net income (GAAP) | $ | 198,297 | $ | 184,558 | $ | 50,672 | $ | 40,283 | $ | 53,037 | ||||||||||
| add: Stock-based compensation expense | 72,658 | 58,437 | 15,479 | 15,452 | 21,232 | |||||||||||||||
| add: Amortization of acquisition-related intangibles | 13,630 | 14,678 | 4,024 | 3,168 | 3,449 | |||||||||||||||
| add: Restructuring and litigation settlement costs (a) | 6,174 | 613 | — | 613 | — | |||||||||||||||
| add/(subtract): Changes in fair value of contingent consideration | (589 | ) | 1,900 | — | (600 | ) | — | |||||||||||||
| add: Other tax expenses (b) | 3,817 | 223 | 3,817 | 223 | — | |||||||||||||||
| add/(subtract): Allowance/(reversal) for expected credit losses (c) | — | 1,436 | — | (264 | ) | — | ||||||||||||||
| add: Other expenses (d) | — | 489 | — | — | — | |||||||||||||||
| subtract: Tax impact on stock-based compensation expense (e) | (17,576 | ) | (17,333 | ) | (1,769 | ) | (374 | ) | (5,830 | ) | ||||||||||
| subtract: Tax impact on amortization of acquisition-related intangibles | (3,318 | ) | (3,622 | ) | (921 | ) | (792 | ) | (866 | ) | ||||||||||
| add/(subtract): Tax impact on restructuring and litigation settlement costs | (1,540 | ) | — | 48 | — | — | ||||||||||||||
| add/(subtract): Tax impact on changes in fair value of contingent consideration | 146 | 152 | (5 | ) | 152 | — | ||||||||||||||
| add/(subtract): Tax impact on allowance/(reversal) for expected credit losses | — | (364 | ) | — | 65 | — | ||||||||||||||
| subtract: Tax impact on other expenses | — | (280 | ) | — | (157 | ) | — | |||||||||||||
| Adjusted net income (Non-GAAP) | $ | 271,699 | $ | 240,887 | $ | 71,345 | $ | 57,769 | $ | 71,022 | ||||||||||
| Adjusted diluted earnings per share (Non-GAAP) | $ | 1.65 | $ | 1.43 | $ | 0.44 | $ | 0.35 | $ | 0.44 | ||||||||||
(a) To exclude effects of employee severance costs and outplacement support costs of
(b) To exclude other tax expenses/(benefits) related to certain deferred tax assets and liabilities.
(c) To exclude the effects of material allowance/(reversal) for expected credit losses on accounts receivables related to a customer bankruptcy event.
(d) To exclude effects of lease termination of $nil and
(e) Tax impact includes
Contacts:
Investor Relations
John Kristoff
Vice President, Investor Relations
+1 212 209 4613
ir@exlservice.com
Media - US
Keith Little
Assistant Vice President, Media Relations
+1 703 598 0980
media.relations@exlservice.com
FAQ
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