Financial Data and Key Metrics Changes - The company reported revenue of $5.00 billion, an increase of 15% year over year [5][16] - Adjusted EPS grew by 27% to $0.48 per share [6] - Adjusted operating margin for the quarter was 20.1%, up 120 basis points year over year [20] - The effective tax rate for the quarter was 22.3%, down 90 basis points year over year [20] Business Segment Data and Key Metrics Changes - The Insurance segment grew 8.7% year over year with revenue of $172.1 million [18] - The Healthcare and Life Sciences segment reported revenue of $125.6 million, representing growth of 24.8% year over year [18] - The Banking, Capital Markets, and Diversified Industries segment reported revenue of $117.7 million, representing growth of 14.3% year over year [19] - The International Growth Markets segment generated revenue of $85.7 million, up 17% year over year [19] Market Data and Key Metrics Changes - Data and AI led revenue grew 16% year over year and represented 53% of total revenue [9] - The company has a strong sales pipeline that grew both year over year and sequentially in the first quarter [10] Company Strategy and Development Direction - The company is focusing on leveraging data and AI capabilities to drive revenue growth and enhance competitive advantage [10][14] - The launch of eXcelerate.ai, an agentic AI platform, aims to embed AI into client workflows [11] - The company is committed to investing in data and AI capabilities to maintain its competitive edge [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience amid economic uncertainty, with a high percentage of annuity-like revenue [13][14] - The revenue guidance for 2025 was raised to a range of $2.035 billion to $2.065 billion, reflecting current business momentum [22] - Management remains cautious about the macroeconomic climate but is optimistic about growth opportunities [22] Other Important Information - The company generated cash flow from operations of $3 million in the quarter, an improvement from a cash deficit of $22 million in the first quarter of 2024 [21] - Capital expenditures for the quarter were $13 million, and $8 million was spent on share repurchases [21] Q&A Session Summary Question: Can you remind us on the level of annuitized revenue? - Management indicated that about 87% of revenue is committed for the year at the midpoint of guidance, with 95% visibility overall [26] Question: How is labor effort allocated in AI-driven processes? - Management stated that AI adoption will involve human oversight, and revenue per headcount is expected to increase as AI is embedded into workflows [28] Question: Can you discuss the sustainability of your first mover advantage in AI? - Management emphasized the importance of continued investment in talent and solutions to maintain their competitive advantage in AI [34] Question: How do clients decide on technology implementation amid economic uncertainty? - Management noted that clients are focused on reducing costs while also investing in technology that provides a high return on investment [36] Question: What is the impact of macroeconomic conditions on discretionary spending? - Management believes their business model is resilient, with a large percentage of mission-critical work that produces immediate ROI for clients [45] Question: How should we think about revenue growth and margin cadence throughout the year? - Management expects stronger growth in the first half of the year compared to the second half due to tougher year-over-year comparisons [47]

Financial Performance - Total revenue reached $501 million, a 14.8% year-over-year (YoY) increase as reported and 15.1% on a constant currency (cc) basis[3] - Adjusted operating margin increased by 120 basis points (bps) YoY to 20.1%[3] - Adjusted diluted earnings per share (EPS) grew by 26.9% YoY to $0.48[3] Revenue by Segment (Q1 FY25) - International Growth Markets: $85.7 million, representing 17.1% of revenue, with 17% YoY cc growth[4] - Insurance: $172.1 million, representing 34.3% of revenue, with 8.7% YoY cc growth[4] - Healthcare and Life Sciences: $125.6 million, representing 25.1% of revenue, with 24.8% YoY cc growth[4] - Banking, Capital Markets and Diversified Industries: $117.7 million, representing 23.5% of revenue, with 14.3% YoY cc growth[4] Additional Metrics (Q1 FY25) - The company added 10 new clients[11] - Employee count reached 60,652, an increase of 1,100 from Q4 2024[11] - Attrition rate was 22.4%[11] - Data and AI-Led Revenue reached $267.9 million, representing 53.5% of revenue, with 16% YoY cc growth[11] - Digital Operations Revenue reached $233.1 million, representing 46.5% of revenue, with 14.2% YoY cc growth[11] FY25 Guidance - Revenue is projected to be between $2.035 billion and $2.065 billion[18] - Adjusted diluted earnings per share are projected to be between $1.83 and $1.89[18]

Financial Performance - Revenues for Q1 2025 reached $501,019,000, a 14.8% increase from $436,507,000 in Q1 2024[14] - Gross profit for Q1 2025 was $193,314,000, up from $163,083,000 in Q1 2024, reflecting a gross margin improvement[14] - Net income for Q1 2025 was $66,561,000, compared to $48,763,000 in Q1 2024, representing a 36.5% year-over-year increase[16] - Basic earnings per share increased to $0.41 in Q1 2025 from $0.30 in Q1 2024, a growth of 36.7%[14] - Total net revenues for the three months ended March 31, 2025, were $501,019,000, representing a 14.8% increase from $436,507,000 in the same period of 2024[48] - Net income for the three months ended March 31, 2025, was $66,561,000, compared to $48,763,000 for the same period in 2024, reflecting a 36.5% increase[63] - Gross profit for the three months ended March 31, 2025, was $193.3 million, up 18.5% from $163.1 million in the prior year[208] - Income from operations for the three months ended March 31, 2025, was $78.4 million, a 27.5% increase compared to $61.5 million in 2024[208] Assets and Liabilities - Total assets as of March 31, 2025, were $1,676,411,000, an increase from $1,618,403,000 as of December 31, 2024[12] - Total stockholders' equity rose to $1,011,877,000 as of March 31, 2025, compared to $929,862,000 at the end of 2024[12] - The company’s total liabilities decreased to $664,534,000 as of March 31, 2025, down from $688,541,000 at the end of 2024[12] - Cash and cash equivalents decreased to $140,442,000 as of March 31, 2025, from $153,355,000 as of December 31, 2024[12] - The allowance for expected credit losses increased to $4,734,000 as of March 31, 2025, from $3,528,000 as of December 31, 2024[60] - Total accounts receivable, net, rose to $339,856,000 as of March 31, 2025, from $304,322,000 as of December 31, 2024[56] - The company reported long-lived assets of $178,298,000 as of March 31, 2025, an increase from $170,621,000 as of December 31, 2024[53] Cash Flow and Investments - Cash provided by operating activities was $3,243,000 in Q1 2025, compared to cash used of $21,873,000 in Q1 2024[20] - The company reported a net cash used in investing activities of $22,268,000 in Q1 2025, compared to cash provided of $4,689,000 in Q1 2024[20] - Cash and cash equivalents at the end of Q1 2025 totaled $158,478,000, up from $117,232,000 at the end of Q1 2024[20] - The company committed to spend approximately $10,300,000 under agreements to purchase property and equipment as of March 31, 2025[165] - The Company has invested $1,800,000 in the Plug and Play Financial Services Fund I, L.P. partnership as of March 31, 2025, with a further commitment of $2,200,000[165] Operational Changes and Strategy - The company implemented operational and structural changes in Q1 2025 to enhance its data and AI strategy, resulting in a new segment reporting structure[28] - The new reportable segments include Insurance, Healthcare and Life Sciences, Banking, Capital Markets and Diversified Industries, and International Growth Markets[37] - The company’s data and AI-led revenue comes from AI-powered solutions embedded into client workflows, aimed at accelerating growth and improving customer experience[191] - The company has implemented operational and structural changes to align with its management review processes, focusing on Industry Market Units (IMUs) and Strategic Growth Units[183] Revenue Segmentation - Total revenues for Q1 2025 reached $501,019,000, with the Insurance segment contributing $172,056,000, Healthcare and Life Sciences $125,592,000, Banking, Capital Markets and Diversified Industries $117,702,000, and International Growth Markets $85,669,000[43] - Data and AI-led revenues increased to $267,929,000 in Q1 2025 from $231,724,000 in Q1 2024, marking a growth of 15.6%[48] - Digital operations revenues rose to $233,090,000 in Q1 2025, up from $204,783,000 in Q1 2024, indicating a growth of 13.8%[48] - The Insurance segment generated $172.0 million in revenue for the three months ended March 31, 2025, an increase of 8.7% from $158.3 million in 2024[210] - The Healthcare and Life Sciences segment reported revenues of $125.6 million, a 24.8% increase from $100.7 million in the previous year[210] - The Banking, Capital Markets, and Diversified Industries segment saw revenues rise to $117.7 million, up 14.0% from $103.2 million in 2024[210] Expenses and Costs - Operating expenses for Q1 2025 were $114,899,000, up from $101,559,000 in Q1 2024, indicating a 13.1% increase[14] - Total cost of revenues for the three months ended March 31, 2025, was $307,705 thousand, compared to $273,424 thousand for the same period in 2024[110] - Stock-based compensation expense increased to $19,187,000 in Q1 2025 from $17,852,000 in Q1 2024, marking a 7.5% increase[147] - Total lease costs for Q1 2025 were $7,343,000, compared to $6,437,000 in Q1 2024, indicating an increase of approximately 14.0%[137] Tax and Compliance - The effective tax rate decreased from 22.0% in Q1 2024 to 16.9% in Q1 2025, with income tax expense recorded at $13,496,000 for Q1 2025 compared to $13,753,000 for Q1 2024[145] - The company is currently involved in transfer pricing disputes with Indian tax authorities, with an aggregate amount demanded of $50,535 thousand as of March 31, 2025[169] - The company believes that its positions in ongoing tax disputes will likely be sustained upon final examination, and thus has not accrued any liabilities related to these matters[169] Shareholder Activities - The Company repurchased 190,716 shares of common stock for a total consideration of $9,432,000 at a weighted average purchase price of $49.46 per share during Q1 2025[121] - Under the 2024 Repurchase Program, the Company authorized a total repurchase of $500,000, which began on March 1, 2024[122]

Core Insights - ExlService Holdings, Inc. reported a revenue of $501.0 million for Q1 2025, reflecting a year-over-year increase of 14.8% [1][3] - The diluted EPS (GAAP) for Q1 2025 was $0.40, up 38.3% from $0.29 in Q1 2024, while the adjusted diluted EPS (Non-GAAP) was $0.48, an increase of 26.9% from $0.38 in Q1 2024 [1][10] - The company has increased its revenue guidance for 2025 to a range of $2.035 billion to $2.065 billion, up from the previous guidance of $2.025 billion to $2.060 billion, indicating a growth of 11% to 12% year-over-year [2][10] Financial Performance - Revenue for Q1 2025 was $501.0 million, compared to $436.5 million in Q1 2024, marking a 14.8% increase on a reported basis and 15.1% on a constant currency basis [3][12] - The operating income margin for Q1 2025 was 15.7%, compared to 14.1% in Q1 2024, while the adjusted operating income margin was 20.1%, up from 18.9% in Q1 2024 [10][21] - Net income for Q1 2025 was $66.6 million, compared to $48.8 million in Q1 2024, representing a significant increase [12][23] Business Segments - Revenue breakdown for Q1 2025 by segment included: - Insurance: $172.0 million (36.6% gross margin) - Healthcare and Life Sciences: $125.6 million (43.9% gross margin) - Banking, Capital Markets and Diversified Industries: $117.7 million (37.3% gross margin) - International Growth Markets: $85.7 million (36.6% gross margin) [4][10] Strategic Outlook - The company is focusing on accelerating its data and AI-led strategy, which has contributed to its strong business momentum [2][10] - ExlService Holdings, Inc. won 10 new clients in Q1 2025 and received multiple industry recognitions, including being named a Leader in various categories in the ISG Provider Lens™ Insurance Services 2024 report [10][12]

Core Viewpoint - Investors are evaluating Barrett Business Services (BBSI) and ExlService Holdings (EXLS) as potential undervalued stocks in the Outsourcing sector, with BBSI appearing to be the superior value option based on various valuation metrics [1][6]. Valuation Metrics - BBSI has a forward P/E ratio of 19.05, while EXLS has a forward P/E of 23.61, indicating that BBSI may be more attractively priced relative to its earnings [5]. - The PEG ratio for BBSI is 1.36, compared to EXLS's PEG ratio of 1.45, suggesting that BBSI offers better value when considering expected earnings growth [5]. - BBSI's P/B ratio is 4.78, whereas EXLS has a P/B ratio of 7.69, further supporting the argument that BBSI is undervalued relative to its book value [6]. Earnings Outlook - Both BBSI and EXLS currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - The Zacks Rank system emphasizes companies with improving earnings estimates, which applies to both BBSI and EXLS [2][3]. Value Grades - BBSI has received a Value grade of A, while EXLS has a Value grade of C, highlighting BBSI's stronger position as a value investment based on the analyzed metrics [6].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong growth stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - ExlService Holdings (EXLS) is currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's genuine growth potential beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Historical EPS growth for ExlService Holdings stands at 22.5%, with projected EPS growth of 14.2% for the current year, significantly surpassing the industry average of 8.1% [5] - Earnings growth is a critical factor for growth investors, as double-digit growth is often seen as a sign of robust future prospects [4] Group 3: Cash Flow Growth - ExlService Holdings has a year-over-year cash flow growth of 2.1%, outperforming the industry average of -11.2%, which is crucial for funding new projects without external financing [6] - The company's annualized cash flow growth rate over the past 3-5 years is 10.6%, compared to the industry average of 4.8%, indicating strong cash generation capabilities [7] Group 4: Earnings Estimate Revisions - There is a positive trend in earnings estimate revisions for ExlService Holdings, with the Zacks Consensus Estimate for the current year increasing by 1.3% over the past month, which correlates with potential stock price movements [8] - The overall earnings estimate revisions have contributed to ExlService Holdings achieving a Zacks Rank of 2, reflecting its strong growth potential [9] Group 5: Investment Recommendation - The combination of a strong Growth Score and favorable earnings revisions positions ExlService Holdings well for outperformance, making it an attractive option for growth investors [10]

Core Viewpoint - ExlService Holdings (EXLS) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Rising earnings estimates for ExlService Holdings suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Recent Performance and Projections - For the fiscal year ending December 2025, ExlService Holdings is projected to earn $1.88 per share, reflecting a 13.9% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for ExlService Holdings has risen by 2.8% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - The upgrade of ExlService Holdings to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns [10].

Group 1: Company Performance - ExlService Holdings (EXLS) has gained approximately 2.5% year-to-date, outperforming the average return of -2.3% for Business Services companies [4] - The Zacks Consensus Estimate for EXLS' full-year earnings has increased by 2.8% over the past quarter, indicating improved analyst sentiment and earnings outlook [3] - ExlService Holdings is part of the Outsourcing industry, which has an average loss of 0.5% this year, further highlighting EXLS's better performance [5] Group 2: Industry Context - The Business Services sector includes 272 individual stocks and currently holds a Zacks Sector Rank of 7 among 16 sector groups [2] - The Outsourcing industry, which includes ExlService Holdings, is ranked 66 in the Zacks Industry Rank [5] - In contrast, the Technology Services industry, which includes Gorilla Technology Group Inc., is ranked 63 and has experienced a decline of 28.7% this year [6]

NEW YORK, April 14, 2025 (GLOBE NEWSWIRE) -- EXL (NASDAQ:EXLS), a global data and AI company, announced it has been named a Leader and a Star Performer in Everest Group's Life and Annuities (L&A) Insurance Business Process Services (BPS) and Third-Party Administrator (TPA) PEAK Matrix® Assessment 2025. This is the second consecutive year that EXL has earned this distinction. Everest Group cites EXL's digital integration of analytics and AI solutions, robust engagement models, and in-house domain expertise a ...

NEW YORK, April 14, 2025 (GLOBE NEWSWIRE) -- EXL (NASDAQ: EXLS), a global data and AI company, announced it has been named a Leader and a Star Performer in Everest Group’s Life and Annuities (L&A) Insurance Business Process Services (BPS) and Third-Party Administrator (TPA) PEAK Matrix® Assessment 2025. This is the second consecutive year that EXL has earned this distinction. Everest Group cites EXL’s digital integration of analytics and AI solutions, robust engagement models, and in-house domain expertise ...