Q2 2025 Exlservice Holdings Inc Earnings Call Transcript
Key Points
- ExlService Holdings Inc (EXLS) reported a strong second quarter with revenue of $514 million, marking a 15% year-over-year increase.
- The company achieved a 20% year-over-year growth in adjusted EPS, reaching $0.49 per share.
- Data and AI-led revenue increased by 17% year-over-year, now comprising 54% of total revenue, showcasing the company's strong position in AI integration.
- The Health Care and Life Sciences segment was the fastest growing, with a 22% year-over-year increase, driven by demand for data and AI solutions.
- EXLS has a high renewal rate with over 75% of its revenue being recurring or annuity-like, providing stability and consistency in revenue.
- The adjusted operating margin for the quarter was 19.6%, down 20 basis points year-over-year due to investments in new solutions.
- Despite strong growth, the insurance segment's growth was stable quarter-on-quarter, with no significant acceleration expected in the second half.
- The company anticipates a slightly lower growth rate in the digital operations business compared to data and AI-led operations.
- EXLS's EPS guidance for the second half of the year suggests a potential decline year-over-year due to increased investments.
- Employee costs increased by 16% to 17% year-over-year, outpacing the 9% increase in employee numbers, reflecting higher costs for skilled talent.
Hello, and welcome to the ExlService Holdings, Inc second-quarter 2025 earnings conference call. (Operator Instructions) Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time.
I will now turn the call over to John Kristoff, Vice President of Investor Relations.
Thanks, Jennifer. Hello, and thank you for joining EXL's second quarter 2025 financial results conference call. On the call with me today are Rohit Kapoor, Chairman and Chief Executive Officer; and Maurizio Nicolelli, Chief Financial Officer. We hope you've had an opportunity to review the second quarter earnings press release we issued yesterday afternoon. We have also posted a slide deck and investor fact sheet on our Investor Relations website.
As a reminder, some of the matters we'll discuss this morning are forward-looking. Please keep in mind that these forward-looking statements are subject to known and unknown risks and uncertainties
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