ExlService (EXLS) Tops Q4 EPS by 7c, Revenues Beat; Offers FY21 EPS/Revenue Guidance Above Consensus

ExlService (NASDAQ: EXLS) reported Q4 EPS of $1.14, $0.07 better than the analyst estimate of $1.07. Revenue for the quarter came in at $249 million versus the consensus estimate of $246.47 million.

• 2020 Fourth Quarter Revenues of $249.0 Million, down 3.1% year-over-year
• Q4 Diluted EPS (GAAP) of $0.94, up from $0.62 in Q4 of 2019
• Q4 Adjusted Diluted EPS (Non-GAAP) (1) of $1.14, up from $0.79 in Q4 of 2019

Rohit Kapoor, Vice Chairman and Chief Executive Officer, said, “EXL had a strong fourth quarter with revenue of $249.0 million and full year revenue of $958.4 million. Our adjusted diluted EPS for the year was a record $3.53, a 14% increase. 2020 was a transformative year for EXL. We proved the resiliency of our business model by effectively navigating pandemic related challenges. We focused on employee safety, strengthened our client relationships and expanded our profit margins. Our strengths in operations management, digital transformation and analytics are resonating with clients as they pursue their strategic goals in the new market environment. We see opportunities to grow revenue and profitability with a robust pipeline as we look ahead to 2021.”

Maurizio Nicolelli, Chief Financial Officer, said, “We ended 2020 with good momentum in our business and a very healthy balance sheet. In 2020, we generated $203.0 million in cash flow from operations and ended the year with $403.0 million in cash and short-term investments. Total borrowings were $239.0 million with a net cash position of $164.0 million. Our 2021 guidance follows the medium term targets we communicated at our investor day in November 2020. We expect 2021 revenue to be in the range of $1.04 billion to $1.06 billion, representing a 9% to 11% increase year-over-year. We expect adjusted diluted EPS to be in the range of $3.90 to $4.05, representing a 10% to 15% increase over the prior year.”

GUIDANCE:

ExlService sees FY2021 EPS of $3.90-$4.05, versus the consensus of $3.76. ExlService sees FY2021 revenue of $1.04-1.06 million, versus the consensus of $1.03 million.

Based on current visibility, and a U.S. Dollar to Indian Rupee exchange rate of 73.0, British Pound to U.S. Dollar exchange rate of 1.39, U.S. Dollar to the Philippine Peso exchange rate of 48.0 and all other currencies at current exchange rates, we are providing the following 2021 guidance:

• Revenue of $1.04 billion to $1.06 billion, representing an increase of 9% to 11% on a reported basis, and 8% to 10% on a constant currency basis, from 2020.
• Adjusted diluted earnings per share of $3.90 to $4.05, representing an increase of 10% to 15% from 2020.

For earnings history and earnings-related data on ExlService (EXLS) click here.

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