ExlService (NASDAQ: EXLS) reported Q1 EPS of $0.71, $0.03 better than the analyst estimate of $0.68. Revenue for the quarter came in at $239.6 million versus the consensus estimate of $238.68 million.

• 2019 First Quarter Revenues of $239.6 Million, up 15.8% year-over-year
• Q1 Diluted EPS (GAAP) of $0.42, down from $0.66 in Q1 of 2018
• Q1 Adjusted Diluted EPS (Non-GAAP) of $0.71, up from $0.65 in Q1 of 2018

Rohit Kapoor, Vice Chairman and Chief Executive Officer, said, “EXL generated revenues of $239.6 million during the first quarter of 2019, up 15.8% year-over-year. EXL’s revenues growth was led by a 52.3% increase in Analytics revenues, driven by an 18.8% increase in organic revenues and the acquisition of SCIOinspire Holdings, Inc. Analytics represents 36.3% of EXL’s revenues.

“We have begun 2019 with good momentum. Our success is based upon a strong culture of adopting rapidly changing technology to deliver valuable sustainable productivity to our clients. Our growth has been propelled through a focus on being the strategic digital transformation partner for our clients, as well as our Operations Management excellence and leadership position in Analytics. Digital Intelligence, our differentiated strategy and approach for digital transformation, represents the next step in our ability to improve revenue growth, profitability and end customer experience for our clients. We are positioned for a strong 2019 and beyond.”

Outlook

Vishal Chhibbar, Chief Financial Officer, said, “We are revising our revenue guidance for 2019 to $969 million - $996 million from $975 million - $1 billion to reflect the decrease in revenue from Health Integrated to $10 million - $14 million from our previous forecast of $16 million - $18 million. Our guidance represents annual revenue growth of 10% to 13% on a constant currency basis. Our adjusted diluted EPS guidance for 2019 is being revised to $2.83 - $2.98 to reflect the higher operating losses of Health Integrated of $0.23 - $0.27 from $0.16 - $0.20 and does not factor any wind-down expenses. Our balance sheet remains strong with cash and short-term investments of $303 million on March 31, 2019.”

GUIDANCE:

ExlService sees FY2019 EPS of $2.83-$2.98, versus the consensus of $2.97. ExlService sees FY2019 revenue of $969-975 million, versus the consensus of $990.57 million.

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