WNS Clocks 8% Revenue Growth In Q3 Aided By Client Additions, Travel Volumes, Acquisitions; Boosts FY23 Guidance

Anusuya Lahiri
1 min read
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In this article:

  • WNS (Holdings) Ltd (NYSE: WNS) reported third-quarter FY23 non-GAAP revenue growth of 8% year-on-year to $306.9 million.

  • Revenue-less repair payments were $292.9 million, up 12.2% Y/Y, beating the consensus of $290.7 million.

  • New client additions, expanding existing relationships, increased travel volumes, and acquisitions of Vuram, OptiBuy, and The Smart Cube drove the growth.

  • WNS added 11 new clients in the quarter and expanded 24 existing relationships.

  • Non-GAAP gross margin expanded by 40 bps to 37.8%. Non-GAAP operating margin expanded by 50 bps to 21.9%.

  • Adjusted earnings per ADS of $1.01 beat the consensus of $0.97.

  • WNS held $249.8 million in cash and investments and generated $70.3 million in operating cash flow.

  • WNS incurred $11.4 million in capital expenditures.

  • FY23 Outlook: WNS expects Revenue less repair payments of $1.146 billion - $1.158 billion, up from the prior guidance of $1.110 billion - $1.150 billion.

  • WNS lifted FY23 adjusted earnings per ADS guidance to $3.82 - $3.89, up from the prior guidance of $3.68 - $3.87.

  • WNS expects capital expenditures of up to $42 million.

  • Price Action: WNS shares closed lower by 0.70% at $83.41 on Wednesday.

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