Exlservice (EXLS) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $481.4 million, up 16.3% year-over-year, with strong growth in Analytics and Digital Operations & Solutions.

• Full-year 2024 revenue was $1.84 billion, up 12.7% year-over-year, and adjusted EPS was $1.65, up 15.4%.

• Q4 adjusted EPS was $0.44, up 26.1% year-over-year.

• Data and AI accounted for 53% of 2024 revenue, positioning the company as a strategic partner.

• Launched EXLerateAI platform, expanded data management via ITI Data acquisition, and recognized as a leader in generative AI and analytics.

Financial highlights

• Q4 revenue: $481.4 million, up 16.3% year-over-year and 2.4% sequentially (constant currency).

• Full-year 2024 revenue: $1.84 billion, up 12.7% year-over-year.

• Q4 adjusted operating margin: 18.8%; full-year: 19.4%.

• Q4 adjusted EBITDA: $102.9 million (21.4% margin); full-year adjusted EBITDA: $397.7 million (21.6% margin).

• Cash flow from operations: $269 million, up 27% year-over-year.

Outlook and guidance

• 2025 revenue expected between $2.025 billion and $2.06 billion, representing 10%-13% year-over-year growth.

• 2025 adjusted EPS guidance: $1.83-$1.89, up 11%-14% year-over-year.

• Capital expenditures projected at $50-$55 million for 2025.

• Effective tax rate expected at 22%-23%.

• Foreign exchange headwind of $10 million expected in 2025.