ExlService (EXLS) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 revenue reached $481.4 million, a 16.3% increase year-over-year from $414.1 million in Q4 2023[1][4] - Q4 2024 diluted EPS (GAAP) was $0.31, up 28.4% from $0.24 in Q4 2023; adjusted diluted EPS (Non-GAAP) was $0.44, up 26.1% from $0.35 in Q4 2023[1][4] - Full year 2024 revenue totaled $1.84 billion, a 12.7% increase from $1.63 billion in 2023[1][6] - Revenues for the year ended December 31, 2024, increased to $1,838.37 million, up 12.7% from $1,630.67 million in 2023[21] - Gross profit for the year ended December 31, 2024, was $691.01 million, representing a gross margin of 37.6%, compared to $607.77 million and a margin of 37.2% in 2023[21] - Net income for the year ended December 31, 2024, was $198.30 million, an increase of 7.4% from $184.56 million in 2023[21] - Basic earnings per share for the year ended December 31, 2024, rose to $1.22, compared to $1.11 in 2023, reflecting a 9.9% increase[21] - Adjusted diluted earnings per share for the year ended December 31, 2024, increased to $1.65 from $1.43 in 2023, a rise of 15.4%[34] - Adjusted operating income for the year ended December 31, 2024, reached $356,082,000, up from $314,690,000 in 2023, reflecting a 13.2% increase[31] - Adjusted EBITDA for the year ended December 31, 2024, was $397,671,000, compared to $349,124,000 in 2023, indicating a growth of 13.9%[31] Future Projections - For 2025, the company expects revenue between $2.025 billion and $2.060 billion, representing a 10% to 12% increase year-over-year[2][17] - Adjusted diluted EPS for 2025 is projected to be between $1.83 and $1.89, reflecting an 11% to 14% increase from 2024[2][17] - Adjusted diluted earnings per share guidance for the upcoming year is expected to reflect continued growth, although specific figures were not disclosed[25] Client Acquisition and Market Strategy - EXL won 17 new clients in Q4 2024, totaling 69 new clients for the year, with significant wins in digital operations and analytics[2][13] - The company is changing its operating model to focus on Industry Market Units and Strategic Growth Units to enhance client relationships and expand market reach[9][10] - The company plans to focus on market expansion and new product development as part of its growth strategy moving forward[25] Operational Metrics - The operating income margin for Q4 2024 was 14.8%, compared to 13.1% in Q4 2023[4][6] - Adjusted operating income margin as a percentage of revenue for the year ended December 31, 2024, was 19.4%, slightly up from 19.3% in 2023[31] - Adjusted operating income for the three months ended December 31, 2024, was $90,745,000, compared to $73,517,000 for the same period in 2023, reflecting a growth of 23.4%[31] - Adjusted EBITDA margin for the three months ended December 31, 2024, was 21.6%, compared to 21.4% in the previous year[31] Financial Position - Total current assets increased to $795.19 million as of December 31, 2024, up from $679.67 million in 2023, a growth of 17.1%[23] - Total liabilities increased to $688.54 million as of December 31, 2024, compared to $552.54 million in 2023, marking a rise of 24.6%[23] - Cash and cash equivalents rose to $153.36 million as of December 31, 2024, from $136.95 million in 2023, an increase of 12.0%[23] Recognition and Awards - EXL was recognized as a Leader in the ISG Provider Lens™ Generative AI Services 2024 report, highlighting its data integration capabilities and domain expertise[2][13] Other Financial Details - The company incurred restructuring and litigation settlement costs of $6,174,000 for the year ended December 31, 2024, compared to $613,000 in 2023[34] - Stock-based compensation expense for the year ended December 31, 2024, was $72,658,000, an increase from $58,437,000 in 2023, representing a rise of 24.3%[34] - The company reported a foreign exchange gain of $2,387,000 for the year ended December 31, 2024, compared to a gain of $661,000 in 2023[31] - The average exchange rate of the U.S. dollar against the Indian rupee depreciated by 1.7% from 83.28 to 84.72 during the quarter ended December 31, 2024[28]