ExlService Holdings Inc (EXLS) Reports Q3 2023 Earnings: Revenue Up 13.7% YoY

• ExlService Holdings Inc (NASDAQ:EXLS) reported Q3 2023 revenue of $411.0 million, a 13.7% increase year-over-year.

• Q3 diluted EPS (GAAP) was $0.26, up 13.0% from $0.23 in Q3 of 2022.

• Q3 adjusted diluted EPS (Non-GAAP) was $0.37, up 21.3% from $0.31 in Q3 of 2022.

• EXLS won 16 new clients in Q3 2023 and increased its revenue and EPS guidance for the full year 2023.

ExlService Holdings Inc (NASDAQ:EXLS), a leading data analytics and digital operations and solutions company, announced its financial results for the quarter ended September 30, 2023, on October 26, 2023. The company reported a robust quarter with a 13.7% year-over-year revenue growth and a 21.3% increase in adjusted diluted EPS.

Financial Performance and Highlights

EXLS's Q3 2023 revenue increased to $411.0 million compared to $361.4 million for the third quarter of 2022, an increase of 13.7% on a reported basis and 13.2% on a constant currency basis. The company's operating income margin for the quarter ended September 30, 2023, was 14.7%, compared to 13.9% for the third quarter of 2022 and 16.0% for the second quarter of 2023.

EXLS's diluted earnings per share for the quarter ended September 30, 2023, was $0.26, compared to $0.23 for the third quarter of 2022 and $0.29 for the second quarter of 2023. The adjusted diluted earnings per share for the quarter ended September 30, 2023, was $0.37, compared to $0.31 for the third quarter of 2022 and $0.36 for the second quarter of 2023.

Business Highlights and Future Outlook

EXLS won 16 new clients in the third quarter of 2023, with five in digital operations and solutions business and 11 in data analytics. The company also established a headquarters for international business in Dublin and formed new centers of excellence to develop best practices and improve efficiencies.

Based on current visibility, EXLS is providing the following guidance for the full year 2023: Revenue of $1.620 billion to $1.628 billion, representing growth of 15% on a reported basis and 15% to 16% on a constant currency basis from 2022. Adjusted diluted earnings per share of $1.40 to $1.42, representing growth of 16% to 18% from 2022.

Conclusion

EXLS's Q3 2023 earnings report shows a strong performance with significant growth in revenue and adjusted diluted EPS. The company's robust performance and increased guidance for the full year 2023 reflect its strong momentum and position in the market.

Explore the complete 8-K earnings release (here) from ExlService Holdings Inc for further details.

This article first appeared on GuruFocus.