ExlService (US:EXLS)2025-04-29 20:08Financial 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]