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 16% and EPS
growth of 19%, despite a challenging macro-economic environment and
lower demand across the IT services industry. During the year, we
made a strategic pivot in our strategy – to be data- and AI-led in
everything we do. This strategy, and the meaningful investments we
have made in our data and AI capabilities, put EXL in a leading
market position as clients continue to recognize our differentiated
value proposition. With our proven strategy, unique data, analytics
and AI capabilities and an exceptionally talented and dedicated
team, we believe EXL is well positioned to continue to outperform
the industry in 2024 and beyond.”
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
$1.78 billion to $1.82 billion, representing a 9% to 12% increase
year-over-year on both a reported and constant currency basis. We
expect adjusted diluted EPS to be in the range of $1.56 to $1.62,
representing a 9% to 13% increase over 2023.
“Our Board of Directors authorized a $500 million common stock
repurchase program, effective March 1, 2024, for a two-year period,
in line with our capital allocation strategy. This new
authorization of $500 million represents confidence in our ability
to continue our growth trajectory and generate significant free
cash flow.”
__________________________________________________
- 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 of 10.5% on a reported basis and 10.1% on a constant
currency basis. Revenue increased by 0.8% 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 |
|
36.2% |
|
36.2% |
|
36.6% |
Healthcare |
|
26.0 |
|
25.3 |
|
26.2 |
|
36.9% |
|
27.0% |
|
36.8% |
Emerging Business |
|
67.0 |
|
58.0 |
|
65.3 |
|
41.0% |
|
39.2% |
|
42.4% |
Analytics |
|
182.0 |
|
170.7 |
|
183.1 |
|
35.4% |
|
37.5% |
|
37.0% |
Revenues, net |
|
$ |
414.1 |
|
$ |
374.7 |
|
$ |
411.0 |
|
36.7% |
|
36.6% |
|
37.7% |
- Operating income margin for the
quarter ended December 31, 2023 was 13.1%, compared to 13.6% for
the fourth quarter of 2022 and 14.7% for the third quarter of 2023.
Adjusted operating income margin for the quarter ended December 31,
2023 was 17.8%, compared to 18.0% for the fourth quarter of 2022
and 20.0% 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 of
15.5% on a reported basis and 15.6% 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 |
|
35.5% |
|
35.9% |
Healthcare |
|
106.0 |
|
97.4 |
|
34.6% |
|
27.1% |
Emerging Business |
|
265.7 |
|
218.6 |
|
43.2% |
|
41.4% |
Analytics |
|
729.1 |
|
647.3 |
|
36.8% |
|
36.7% |
Revenues, net |
|
$ |
1,630.7 |
|
$ |
1,412.0 |
|
37.3% |
|
36.5% |
- Operating income margin for the
year ended December 31, 2023 was 14.6%, compared to 13.6% for the
year ended December 31, 2022. Adjusted operating income margin for
the year ended December 31, 2023 was 19.3%, compared to 18.3% 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 GuidanceBased 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 of 9% to 12% on a reported basis, and constant currency
basis, from 2023; and
- Adjusted diluted earnings per share of $1.56 to $1.62,
representing an increase of 9% to 13% 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, $0.001 par
value; 15,000,000 shares authorized, none issued |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value; 400,000,000 shares authorized,
203,410,038 shares issued and 165,277,880 shares outstanding as of
December 31, 2023 and 199,939,880 shares issued and 166,172,220
shares outstanding as of December 31, 2022 (1) |
|
|
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 1.2% against the U.S. dollar. The average exchange
rate of the U.S. dollar against the Philippine peso decreased from
56.76 during the quarter ended December 31, 2022 to 55.86 during
the quarter ended December 31, 2023, representing an appreciation
of 1.6% against the U.S. dollar. The average exchange rate of the
U.K. pound sterling against the U.S. dollar increased from 1.19
during the quarter ended December 31, 2022 to 1.25 during the
quarter ended December 31, 2023, representing an appreciation of
5.4% against the U.S. dollar.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 $895 and $386, effects of lease termination of $489 and
($560) and other items, individually insignificant of $nil and $134
for the year ended December 31, 2023 and 2022, respectively. To
exclude provision for litigation matters of $895 and $nil, and
effects of lease termination of $nil and ($560) for the three
months ended December 31, 2023 and 2022, respectively.
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 $613 and $1,061, effects of
lease termination of $489 and ($560) and other items, individually
insignificant of $nil and $134 for the year ended December 31, 2023
and 2022, respectively. To exclude provision for litigation matters
of $613 and $nil, and effects of lease termination of $nil and
($560) for the three months ended December 31, 2023 and 2022,
respectively.(c) Tax impact includes $15,055 and $5,881 for the
year ended December 31, 2023 and 2022 respectively, $1,883 and
$2,349 for the three months ended December 31, 2023 and 2022
respectively, and $462 for the three months ended September 30,
2023 related to discrete benefit recognized in income tax expense
in accordance with ASU No. 2016-09, Compensation - Stock
Compensation.(d) To exclude other tax expenses/(benefits) related
to certain deferred tax assets and liabilities.
Contacts:Investor RelationsJohn KristoffVice
President, Investor Relations+1 212 209 4613ir@exlservice.com
Media - USKeith LittleSenior Manager, Media
Relations+1 703 598 0980 media.relations@exlservice.com
Media - UK, Europe, and APACAnna PriceFirst
Light Group+44 202 617 7240exlteam@firstlightgroup.io
Media - IndiaShailendra SinghVice President
Corporate Communications+91
9810476075shailendra.singh@exlservice.com
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