EXLS - Earnings call transcript Q1 2021 | ExlService Holdings, Inc.

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Operator

Good day, and thank you for standing by, and welcome to the Q1 2021 ExlService Holdings, Inc. Earnings Call [Operator Instructions]. I would now like to hand the conference over to your speaker today, Mr. Steven Barlow. Please go ahead.

Steven Barlow

Amanda. you, Thank everyone. Good morning, for conference joining XXXX you first EXL's results call. financial Thank quarter Barlow, of I'm Vice EXL's Steve President Investor Relations. With New York Chairman our offices Kapoor, Financial our in Officer; Vice Nicolelli, Executive and me our Chief Officer. Maurizio Chief are today Rohit and in we you've release an XXXX had morning. hope to review this We QX our opportunity earnings issued also the EXL's of updated Relations Investor section our We've site. investor the fact sheet in Web

factors in that are the mind of some today's matters release, time. obligation the discuss time this forward-looking. include, the the but or are are EXL periodic Please not Such company's such call Securities call. from information to no presented differ limited documents those risks keep actual implied forth these As and discussed you and know, statements. press set expressed to to, risks filed subject in that to in we'll and from statements assumes conditions, could general other forward-looking reports unknown Commission this uncertainties with those and results conference update by materially Exchange known in and cause uncertainties to on economic

today, certain measures, we investors. release now Chief the as non-GAAP EXL's Executive provide investor sheet. may our the which fact can for we call measures I'll Kapoor, Reconciliation turn useful in financial information to Officer. those the Rohit press During believe of over GAAP call found reference Rohit? be well to as

Rohit Kapoor

start X.X% generated currency revenues pleased million, to basis. represents constant all sequential Thank and I'm are you a a families you, a both a $XXX.X XXXX year-over-year strong and safe and our QX earnings call. Steve. morning, on of of to I first hope to increase Good which everyone. EXL increase, Welcome healthy. X.X% quarter XXXX. report your

offering centers Our by industry driven Analytics our new by grew lower Further, XX% quarter $X.XX, buying strategic expenses. new was for EPS multiple clients existing by solutions. led penetrating across Adjusted operating expanded new verticals. business, the successfully strong and our by secured wins to which we within year-over-year performance

had business and time. growth million The We clients million crossing customer XX% solution, $XXX a sequential of primary which this growth quarterly year-over-year strong marketing the demand Analytics $XXX.X Our quarter, driver our in growth. was their our revenue an revenue, very X.X% for a outstanding and acquisition quarter as representing first reported resumed growth in data-led experienced initiatives. this

our and which We are clients in our also health adoption driving banking, services, insurance. is of care data seeing growth analytics accelerated strategic and across

of Annuities quarter-over-quarter, deal first Our Healthcare, and million Management the business in Life ramp-up up the Insurance revenues $XXX.X quarter, in X.X% Banking. large reported Operations driven and by wins of

we pandemic. on focus in we working impact through from a continued recognize are of growth period the we XXXX, COVID-XX As that

Colombia. surge of the a and to care Philippines is in Specifically, in new situation there India, increase cases, substantial of in particularly with health infections an The India combined is overwhelmed infrastructure. number the due concerning the

home, affected environment this though for our in Our we by is directly the everyone is priority us who are have are Gurgaon, in delivery the virus. Pune health from safety Bangalore and members The top regions families locations India. amongst of working Even and in almost their team the and most Noida, impacted employees.

taking from working almost are in employees today, home We measures. are proactive our of all And India.

employees care through our to access and by and investing groups. support medical We are facilitating partnerships also easier helping

flexible, of a times. supportive Our clients in spirit have partnership been these very trying demonstrating and true

managing service as actively of are had the situation the apprised them engaged are delivery disruption it ensure operational situation are and our collaborating keeping steady in with minimal to we've resiliency. our To clients We date, to evolves. and

a States, bouncing digital client are UK analytics towards trend throughout making United to clients data, continue capabilities. building investments out we the and vaccination see in rates primary climb bolder bigger, Increasingly, as back markets and Our Europe.

building speed future-ready clients operating customer improving superior models. and scaling experiences, delivering laser-focused are on Our and

capabilities; As we continue X data enabling by see customer by customer result, transition one, channels. across The framework for and with vectors: a applying our solutions. moving and increased and cloud-enabled to data-led analytics and to decisions the well market, AI value two, better demand business momentum the very is superior leveraging delivering digital creation large-scale resonating data deep in lockstep is analytics of outcomes in interaction

in analytics highly marketing This in effective more investing acquisition Our solutions enable clients and data-led to a marketing customer results and marketing for algorithms. addressable our personalized, retention. are larger proprietary direct-to-consumer market

gaining The where in the adoption solutions cloud. is market of the traction are we second vector EXL's AI-powered

experience, clients as turn efficiency. in superior pursuing business improved drives primary speed are customer enhanced and outcomes which their Our goal,

processes success solutions downstream and deploy legacy this low is dependence configurable. operating us processes constrained AI flows to system. AI has expensive, machine and business with harness learning and contrast, heavy technology. EXL's would deployed AI-driven the automation cloud call AI, we manual as the which intermediates time-consuming In had and legacy clean on and that order upstream cloud what by and The our are easily data swiftly to generates enable intervention. are a become current interventions on technologies allows rate. However, along to This the of platforms clients to redesign are and enterprise-wide processes, effectively In power data-driven have ecosystem

combined independent to understanding businesses transition. an EXL title as to this of cloud The company's of capture An work process. the positions solutions accuracy legacy engagement and their market the modernize risk insurance across The clients engagement time-consuming, several action cloud-enabled will search execution current vendors. process is title accelerates AI and partner firm seamlessly and example we that of enable processes, speed cloud-based share clients and AI improved the with entirely competition. Using automated into search distributed in speed able of process to business an entered largest search both entirely AI than of transformation ability an minimizes one system, title our of operating faster Our system creates to was migrate powerful EXL's operating with manual impact. AI-powered to state transition title This the was search much the choice. to business

from clients, report, In manner. delivering global to for Sustainability we to to XXXX, up and citizen Goals. sustainable participant become Global addition we several our future At build We recently to United Nations Reporting Compact. our as way over our annual Nations and In was leadership sustainability Development actions programs a and the women, a statement our better taken XXXX. past metrics first have means we workforce have recently, Global of EXL in our aligned mission positions to our our fall to doing enhance Initiative commitments EXL, disclosures Standards and proxy we at signed representation better accordance particularly year. our a long-term goals, in to expanded we a provided committed sustainability the XX% and Among with sustainability diversity. by are relating raise find by to the responsible a in the to United More in environmental part intend the developed of of goals the XX% which published operating such to

has business retire Pavan has many mirrors been within me indelible XX established Analytics years confident to myself. the for of guidance organization enabled is it with on EXL instrumental has has it well of and a from digital. company, great in own the us. after He Operations been through Pavan as insight helped his as in know, into service, challenge his been develop an each Management today. the X, the mark including has an to faced. you of of Pavan's the XXXX. a for and the growth. business, as EXL decided navigating architect that has shift Bagai His mentor company every what leave partner on company's October building Lastly, will leadership Pavan the and career organization our foundation of is it Pavan our EXL

the several members EXL. leadership Pavan's at transitioned Over of other will team months, responsibilities the next be to

pick to ready of the We cohort manteau. the are leaders next are now who have fortunate to up

best. him him, will that, call Maurizio. all us the we very the at All miss over EXL to of I will wish With and turn

Maurizio Nicolelli

Thank first performance insights our this updated you, followed our by for thanks, into morning. I Rohit, the XXXX. XXXX, financial us of everyone, joining for and for quarter outlook will provide

of new Management revenue reported the driven fourth the All million, X.X%. XXXX, of our existing up down XX.X% Revenue XX% client year-over-year. revenue in was Emerging wins was grew up in defined $X.XX. mentioned, Rohit better-than-expected Clinical Operations million, up revenue was revenue up million, business, on of million, and Sequentially, year-over-year quarter of to fourth the hereafter volumes. relationships. basis. reported our generated excluding growth X.X%. earnings was X.X% in reduction quarter, to by our from year-over-year, and of up was revenue revenue X.X% volumes $XXX.X a from segments, Insurance with $XXX.X transportation numbers Healthcare due X by driven Compared are up Healthcare reportable million, Analytics, XXXX. Services $XX.X currency $XX.X $XX.X revenue Sequentially higher quarter as year-over-year X.X% travel year-over-year, expansion business of XX%. As by share mentioned and per adjusted constant

now, solutions. XX% we this new verticals industry XXXX was client had quarter wins volumes XXXX, first and revenue clients with as data-led in year-over-year. fourth traction was the several across all Compared to $XXX.X existing X.X%. growth million, we XXXX. are This the higher up by business logos in good of of up quarter and in expansion revenue seeing embrace in relationships of won Analytics However, driven new

to front-end marketing. basis and XX.X% in Our SG&A by XXX sales revenue, year-over-year expenses increased driven points investments by of

margin due expenses. basis by optimization operating year-over-year, operating adjusted for up points was XX.X%, and margins cost infrastructure measures lower driven improved Our the quarter to XXX

for was GAAP the quarter Our rate XX.X%. tax

our rate was items, discrete effective tax the of quarter XX.X%. impact the Excluding normalized for

for sheet on and remain focus cash year-over-year. a operations. EPS $X.XX, was generation liquidity EXL's quarter adjusted Our strong balance up continues from XX.X% with flow the to

cash for in XX and short-term investments $XX.X of million million XXXX. our cash $XXX $XXX $XXX operations QX cash in was March at million of of $XX.X compared from debt and a generated million. million, was QX to outflow cash net We position negative of flow a Our

at XX days. March was Our DSOs XX

During as of XXX,XXX the spent We $XX continue to million. cost we shares quarter, a expenditures, long-term the on growth. we at repurchased capital million in $XX.X business for invest

while geographies, COVID-XX U.K. in our improving, surging our moving Now economic as is in U.S. on Philippines. the delivery guidance for and India such XXXX. to and environment is The the

changing primary focus We that manage and safety confident situation our and continue the the staff. we feel We to our commitments. with health of the respond will assess delivery to being circumstances can

business model is know second since performance our agile, we quarter quarter-over-quarter in demonstrated trough resilient and the addition, sequential the In by improving XXXX. our as of

the of be for in increasing up end billion, range to our guidance our guidance range. $X.XX in driven $XX our increase of by in XXXX better of first The represents targets the on visibility revenue an our XX% is the million approximately disclosed reported and momentum X% to revenue We quarter This at medium-term $X.XX to the billion strong our are top rate despite also to growth Investor currency constant revenue headwind basis. guidance X% Day a in to year-over-year of business basis This million. FX XX% November. and on $X aligns a in a exit we

over and to of grow We to in Management grow XX% X% expect the range X%. to Operations Analytics

to $X We the between $X.X tax XX.X% million, million of XX.X%. range expense and rate effective to in expect and a $X.X of our million exchange gain foreign net million to $X interest be

technology. capital continue allocation, we and solutions of in to analytics, will terms In invest digital

be of capital driven the XX%, to anticipate pace expenditures our expect to million up in share above, our We at earnings the a revenue what adjusted $X.XX, to XXXX. with higher XX% shares to did by in per of the slightly expectation, range business expect Based we We efficiencies. to on back along to $X in $XX be our range increased higher buying we $XX million.

expect our investments and of year. beyond. in margins plan subsequent analytics quarters to to As decline digital, we We growth increase in XXXX in our and the to year data unfolds, the accelerate

the to quarter, costs due last salary we reinstatement operating discussed expect increased the higher of incur technology and costs we increments hybrid to related model. to As

environment. the the latter year, pandemic. half operating on created the during addition, we increased and had transportation despite conclusion, anticipate the dependent the on expenses by part a we normalized to facilities, a to of XXXX, travel return good In challenges a of second start In operating more

agendas. enables We new have to our and which data-led digital business us model, a resilient meet to transformation demonstrated and solutions create clients' flexible

would I your and Rohit questions. Now to take be happy

Rohit Kapoor

please? you could Amanda, questions, the queue up

Operator

Instructions] Your comes first Bergin from with [Operator question Bryan Cowen.

Bryan Bergin

mentioned in dig businesses just Can on impact but wanted certain surge I service that? I you you -- about where the impact more far, Well, bit minimal disruption that. you thinking the the here? risk risk Does ask to disruption and what we on forward and potential know a be India are thinking so others? than there how the around magnitude more service and should

Rohit Kapoor

So it to for us, in the of board, perhaps XX% Colombia. really health our revenue industry little all geography delivery which represents towards India capabilities. a more care, about the and is represents much so less Philippines across verticals skewed And

I at time, like home. point we employees the on being call, think done a working by the this mentioned is being done current of of XXX% from our work almost that's

very health with in families into the into infrastructure in So employees, But demand businesses really such. unable good medical also be and not virus we issues. depends one any only a the but our right India. problem, office challenge the country. and It's really tied it situation is it the that's and the how creating creates right coming on infections surge impact care cope continues really the their for all as The on do of not the the to because not business. the have for and is ground for going anybody long that now not continues now for is across to how the the And the and

Bryan Bergin

on follow-up here a margins. And

outperformance? looks sense lasting quarter? the Can us at record Is in Can anything onetime? that is So margin within really you work, that's mix the specifically, of Management unpack you be what to drivers it a Ops give of gross levels. there

Maurizio Nicolelli

happening quarter of also few are the a top margin. really seeing things bottom in within the helped Management. Ops amount that additional One good Management line that, did some revenue that have flowed that is, through our during Ops to margin. we're of we the On A efficiencies that

able within efficient our months, keep been of that amount starting our XX Ops to over much the the Management cost see and And margin. through we that more from than we've say right last and you're getting some of certain are business in. benefit to in run we're part would I So really the last headcount come is, a environment now

that Management is helping also margin. Ops So the

really Going going is really being that should one on that forward, we last efficiency forward. piece focus forward the lean cost as going piece

Operator

next Maggie with comes Blair. Your William question from Nolan

Maggie Nolan

were and about margins those guidance, Philippines, considering I'm in and the what curious particular, just about specific developments talking given with in India in considerations are the around the Bryan? that you

Rohit Kapoor

our our now, right So our not right demand as to Like has there's activity of impacted and seeing fulfill been at of demand all. a now. been pipeline said, business of we we minimal ability clients, strong strong are disruption the to and

minimal Our our assumption we in disruption assumes going really of will have that guidance terms forward.

have this see how However, India really in how that's we'd know to things out. the something play and which unfold will in We Philippines. don't

of and own up. there. the very, very create that has rate infection that rate I and us significantly challenges. think India, in somewhat stabilized for And a gone better hope very does the out high Philippines, seems the its have is of In to infection creating really

long be what as And so might depends to subside the might employee on population to it what in such our how time and period it be. impact continues and this

going you imagine, that's can we're healthy make priority #X can and and what employees is As our our we do. sure to to that keep safe,

on know. that possible best attention we medical disruption. safe we And based this and our guidance really sure to our them to We we is the minimal provide keep plays So And have that out? How for them. can and going care But assumes we're each has that. them healthy. don't focus make that isolated of going and be can

Maggie Nolan

are you additional AI Can little contracts? how disruption standpoint bit And is kind are of are about around logistical further, a what that delivery So the about terms proprietary does partner of the question into of you talking solutions. then bit pricing dig second within little the talk in like? to into a there from considerations your And ecosystem incorporated components my a just structure AI versus look or that this solutions productivity? then your about

Rohit Kapoor

infection of account on on the basically is if an disruption has or immediate our impact employees the families. their So

our to an and they know, well. As employees many in family environment family of take you as India, kind extended have of care live in their of

that themselves about We families of that how or here. there. planning really like able out flex it of have. just our employee population. fair in And in stays to be of it's it as do how employees up terms So managing we adequate to progresses this their on buffer of kind to amount bench of and a they have But said, for allows maintain and resources this us we a and in how long I depends across down our it terms

as part is over and of your second question to progress embedded us and is our the it, made that nature of of XX We've customers' built as businesses. the being we've our processes business a verticals application out domain the part last is also of industry And it proprietary both within very, our pertaining specifically by the AI tremendous of there. proprietary proprietary client we've proprietary partner the solutions The client technologies, our to in understanding solutions solutions partnerships that and and those well of component XX of into rapidly. very For amount capabilities. months, is which some the something the developed

these track very in better. and fast a and records And plug-and-play effective We with have data this capabilities. and that's of performance to manner got and scorecards ability proprietary associated obviously and now do better intervention our becoming the very a

are the don't how need the more in And us with adoption with they currently well on for working these being are are legacy more to these upstream is cloud cloud. interfere on performed, which solutions, of clients work the AI which I it's matter or disturb and the our solutions or technology and existing placed think engaging So the terms that of clients. our really actively and AI

of so And tremendous out see a opportunity here. amount we

Operator

And with your next Jain from question JPMorgan. comes Puneet

Puneet Jain

in Maggie's Following up on question Analytics.

from be offer model Or be SaaS-based, those revenue be solutions, you it also to still FTE more offerings? to in different what some is it of for be more based? as going software-like Will So past? used will model the it

Rohit Kapoor

going into would think be models solutions, expect towards we're as we proprietary pricing more models. pricing that bear, overall, we're we transaction-based partner and bringing towards interventions going move more I outcome-based that and move to that to

that a We the started outcome-based QX which where in that quarter we've of Operations strong had in and capabilities towards The such. both have AI-based basis XXXX, shift transaction-based noticeable to had, technologies models, outcome deploy initiatives undertaking in component are is we of pricing first driven of use as work in seen driven is models. it an Analytics and we that some now outcome-based where marketing and pricing data-driven a Management, well digital as as solutions to on primarily

more So we're going to transaction-based Analytics. pricing see more outcome- of and in and

Puneet Jain

was margin drove this fee revenue the in license vertical incremental upside that Healthcare And in quarter? what

Rohit Kapoor

the There's on vertical nothing a license perspective. Healthcare shared from we've that

I'm sure that's where not So coming from.

through Our based Healthcare revenue of a the we work clients for the that number year-over-year off Management that all had clients because which nicely new onboarded was there. do first business in Operations and But XXXX, is quarter really very Management of in in very, we quarter. signed visible the up that and Operations year over our we grew the of previous

Operator

with Vincent from Barrington Research. comes question Colicchio next Your Instructions] [Operator

Vincent Colicchio

do of Difficulty] [Technical their yet? have COVID number a families meaningful in India, as

Rohit Kapoor

missed part we your think first I of question. Vincent, the

please repeat you that? could So

Vincent Colicchio

India family have in your a yet? portion the if in of COVID employees curious I'm COVID as of have or meaningful

Rohit Kapoor

we that employees impacted, that share certainly So will by digits. have being employees impacted publicly. our share What percentage we directly COVID, But with is low-single families that much of the becomes but obviously number impacted that is with COVID don't are the larger. our been you track by in of I the that number the

them their point able their make our care and sure of them of employees that towards: are also themselves first helping So supporting therefore, accommodative families. to take attention being be we very, can a, b, of time we take out; to care to and want to time this very at take devote And then families.

Vincent Colicchio

then hit What needs your And end happen to revenue year? high your a the question of outlook the to for guidance. on

Rohit Kapoor

been I the think very demand of the positive that is has environment for one which really things us is strong.

would the from have need seeing we We have And good. take in to no that clients. very fulfill of to demand are real into revenue. we place would pipeline is pipeline ability the our conversion Our our terms real need disruption to

I well data and tremendous seeing strength we're our analytics industry verticals. a as digital in and in amount think as in of

an the demand of and execute might side And into challenge broad-based. fulfillment a standpoint So demand and The to seems to convert much frankly, kind issue. less be be from more the revenue. that's ability of

Operator

Grossman And your Stifel. comes with final question from David

David Grossman

what the out? I guide year? review component wonder to the visibility other getting of on during with if come margin as all on trying of the about the normal? expenses reopening, higher what just could have that that And trend variable Just commentary year the back the you terms travel, understand you margin to elements in pace is of rolls more today depending

Maurizio Nicolelli

QX line just that lot increase margins over the a amount we of environment the the in of that little our me dig margins, have of a from really for this of certain Let in XX%. driven cost that. deeper and very bottom working of good that by and for the we currently that A terms is year. terms to Look, we're the efficiencies environment in rest also revenue work-from-home optimizations some AOP cost a fell had in, really into

operating and data number a have to going Going X of hybrid in that some forward. technology also there's a doing quarters. investments we're We're in. We're in be model investing areas additional going to next analytics in the be going forward, digital, investing to

from the that have really a half that And in And technology office to home we project We certain really the basis. us on target right we moving more a to amount there's of need longer-term last year. return now. had working invest then to is later office quarter to potentially U.S. potentially return But here of the that is certain still year. U.K. maybe in And for the most the in the and the kind this Philippines. in of year, the for the that the get workforce likely a in third locations, portion a piece case India on So or for second fourth offices, that in the our for our will to fall really pushed and of out the anticipated of of other early quarter the is especially

what in So of of extent, And the of that right I in in uncertainty are bit the our all that Philippines. because certain little were going than really of year. and last right talked of Day. in the year, going business significantly say higher line extent, year the kind and this Investor in certain is India they layered we year a there's thinking certain of making would to on in this, market terms conservatism with rest in the we're a surge our just be that for knowing now at about our of investment a COVID is our because a to to margins margins be to There's the later amount in going

David Grossman

to impact how us, just office, investments, have of buckets each Can how these size of of hybrid sense of the the for in return for on are? three the margin impactful the a some so year, the work items initiatives a have from home we you much those terms and they'll big

Maurizio Nicolelli

end these if the office total. not in expense, significantly to terms would looked we fairly at of one you some they're making the investments of than we'll I say, that make, the additional the kind other. -- more up that of one technology return think investments similar There's the of each I and

space throughout would of rest and I fairly the ease, of So the try the kind year. three evenly

David Grossman

revenue quarter, margin. this not were I there but may know that is that onetime, business the first in you OM but was if drove had some some, How in heard right, I impact first sure much I'm the the of don't And mentioned I quarter? have it that the an think

Maurizio Nicolelli

real the volumes especially coming the the really a drivers But health to side, and Ops extent. that's I on care. some. has more It is insurance driver in Management mean back certain

David Grossman

with just And evolves or just I then I'm just of year. a everyone clients. their just know wondering -- just a work-from-home are conversations model going kind a you're pricing of hybrid of longer-term curious like this the with committed clients? kind It basis. that there kind does was to a contracting what looks all of morph with overnight clients. the your and how question, kind And virtually to there. expect on Just how -- impact about how model And higher-level had last immediately at

Rohit Kapoor

David, a mode. conversation very, transparent the obviously, with So and clients very in is, the very much partnership

work. to terms for being take of of EXL clients are ownership us the responsibility Our flexible in they're perform the very having very, more work them, and driving to and more

space sure therefore, to the commercial the employees coming people facilities. that have works because we construct have both make that employee of office, the we per have, do arrangement office distancing, our social ways And our infrastructure goes the up. to we work in and because it work and available to of in employees more hybrid of terms when In there and for our really offices cost is our

is So are of work done being benefit. home done home up there actually, together proportion proportion the you certain little a structure the But certain from the you combine a of cost from a the neutral. being from of of pieces two the because office. and office, and will go lower, and combine work structures the bit the and is the is a working there clearly from stack when that cost Working cost fairly

be that that, much where appreciate a come can tied our working clients can point that They meeting they that and change do us creation culture right innovation will alignment in is need organization objectives, to are home want meetings of those can of to not at of needs structure some and the employees together we the office of the for to see a our sure there's the there. kind to we and to all have and that. for of clients. get to So out business time so them that they that even from making have And

David Grossman

anticipation, back or the so full if at would come the at client time, And they that least the the month? certain of working week they level, don't back is come days even

Rohit Kapoor

It's are evolves. continue And they to work by it on with, clients very what geography, specific Absolutely. their we're comfortable client to by on clearly and regulators going that. our with depends comfortable and going what this with how are be and to

David Grossman

though, net your read neutral that it's to at And margins today, though, this going is point? forward, so a

Rohit Kapoor

I and pricing neutral net it's to think margins. to

David Grossman

give looks you're sense then just at look that what to working on in the XXXX how experiencing? like one in close that wondering XXXX, just ramping I if or you ramp to then And -- compare the referenced just already. compare activity last times to And you've in specifics, on Since curious pretty you're close look compares. the call just you for a as I'm just I'm could when to that what pipeline had us But you in that you a being pipeline relative couple in 'XX curious client 'XX, you strong and when that of to the what mean 'XX what you're me, you're 'XX the at XXXX in you may is you're disclose ramping -- trying ramp don't XXXX. excuse I'm new what 'XX and starts how question. in

Rohit Kapoor

decision-making. decision-making, which acceleration just of say on pipeline, velocity it's the the it is than So means And a when are velocity previous strong, high of is pipeline the terms of you periods. in sense stronger we we seeing double-digit in give significantly stronger, to

also much is business moving and I support terms in think we shorter helpful clients. scale as And So that for of our as is up the very cycle we clients our sales our forward.

I digital very being kind clients, Our this and with interactions therefore, our driven are customers be is this to that is think end and by quickly. consumers the the channels needs undertaken and, their clients of important their for enabling all fact it adopting work

perspective. momentum positive from very So that

David Grossman

this up year numbers, have some of last I since information. year? the in So any of catch that disclose don't pipeline is mean, don't that -- really of we Or again, you a increase specific decision-making velocity catharsis function and

could you So perhaps on that. reflect

Rohit Kapoor

digital bit faster needs and the I little catch-up, there adoption their driving personalization interaction the gear. of data just and the done much may to a analytics, but be largely, as a the and be hyper means for into decision-making a think of use that a this channel customers of that's of

more and not change, so changes, the is, what willingness lot model and that don't actually a XXXX, of I realization and critical. And it's become some client's are we competitive the has to that's if better far a up you catch-up accept anymore, that's it's seeing urgent from these speed changed you not think the business be only become may

Operator

question next your And Ashwin comes from with Citi. Shirvaikar

Ashwin Shirvaikar

backdrop sequentially, obviously year-over-year and mentioned. count I head down acceleration the guys It's question. that a of down against have demand the improving have you

not and gotten like environment, verticals to things employees the part like of what's process of and travel? ask, current level down the how trend the that lower and then all, using in I that is the where that yet like Philippines? would to second due question of automation you're India be want perhaps delivery geographies to specific much to due So the you've And demand first productivity versus headcount is in recovering hire

Maurizio Nicolelli

insight your me So little headcount on a question. give Ashwin, just let you bit of

bifurcate see look we do on of a you a So decline headcount, when at you our at gains QX, that, look bit see hiring productivity you we've been versus some If year-over-year if Analytics. QX and you in a Analytics, do in basis.

Analytics increase on that demand in high line the more the is in employees revenue critical year-over-year growth basis. and So Those with a market. in really are headcount in

investing have the in to we that area been demand. so meet really And

see area, in at We've a the bit that more a, is over a efficiencies expand you also our in of last you business we gotten And Operations on long year-over-year our all basis, And If Management you to a little little have headcount I'd Operations there, look within now while that's starting sequential bit in going our say, quarter-to-quarter three seen XX basis. Ops see on segments some that's cost in Management. Management. a months business that term and realized we've of decrease forward. the

Rohit Kapoor

the about all being your And hiring. and done hiring is question virtually Ashwin, to hiring, remote

very quite actually effectively talent hire far, able been and to our So we've onboard nicely.

surge pandemic So us. watchful something India need certainly it the given be that's in we created But X to the issue in will for levels hasn't the weeks, in an last really which about.

Ashwin Shirvaikar

started And year. why then color year? necessarily wondering XX we regards perhaps didn't you fair? imagine my margins. ticking now the maybe higher provide and was second is for outlook to XXX with the I that that would up puts into that takes than with question I an There's lot a mean margin good factors you margins. I where the are Is points basis to updated of

Maurizio Nicolelli

to is, there. at a there the additional margins EPS, then are wide the that our investments in still our it's margins the terms to cognizant keep in making mind adjusted you if going you centers. for increase of look and cognizant year. we the of be The Ashwin, It's in of have uncertainty out also in one rest in of thing delivery that's higher implied our

we we up so is up, implied but EPS margins just to margins, we in wanted coming brought adjusted them because but we increase And there cautiously an up. take

Operator

question [Robbie your from And with Ememberg] comes Baird. next

Unidentified Analyst

you when since And been of you? a deal most be couple the you $X guess, cash, it's did So in seem you'll share to do M&A. with segments which interesting to do a I And years think a ready again? net

Maurizio Nicolelli

in in acquisitions. looking very still for opportunities active are we the So market at

frothy market at. one right valuations. terms in Our to keep thing is mind of pipeline M&A significant been is The is very of terms we've now in terms what fairly in the looking of in

we're at looking we're Analytics look But the for and at solutions also our when at we're on targets, looking we're throughout even opportunities really, we also today right looking will two digital, terms We're Given I big in at fit M&A the strengthen forward? additional looking tell right significant for right market. looking within a Insurance for we're within at for our of that looking in hurdles going them us is opportunities those strategic them have but really, M&A and are that Healthcare. and forward? business. further of capabilities, So capabilities to to at the the number valuation we you going us ROIC drive the market it now, is, two that one, And in been hurdles, now fairly two, is are it

would activity And and can't months, generation there's that at seeing that, to that's months, and so looking be down come plenty pike. sheet but our three at flow an amount we M&A see or have that's I we basis. whether going going just capital of given the months acquisition I XX you're six balance that tell quarterly foresee now some you a point, of to you're cash of the are going inevitable happen, to on or amount on it's And the an

Unidentified Analyst

guidance. maybe per and And is like the then just of the it's looks $X about now, rest question averaging about one quarter. was $X.XX QX quarter on EPS it

So And I conservatism in around is throughout there EPS maybe the some guess, the cadence growth of outlook? color that just year? any

Maurizio Nicolelli

and making it's looking solid what guidance growth so year, to investments XXXX? growth EPS seeing year-over-year we're how growing with year-over-year additional the on later the that we on to So in growth you're in business year. And for in on is when also, at that we're drive some see a basis, a really look XXXX basis we investing and are in the

really bit where areas in geographies. when our target a at little two, the terms the different have also, the knowing Philippines; And there's we even of we moving is EPS about a about capital at talk into, we in we are of basis so of that and return in that the terms invest mindset a one want terms in but year-over-year office, to things: bit that uncertainty that and of that's two is kind of pandemic the and guidance. looking India of look We're the to little a thinking

our as that into we'll later as we go year, guidance So to. all on update EPS takes need on we it of there account. And the

Operator

joining. for call. today's Thank you That does conclude

disconnect. now may You

ExlService (EXLS) 1 May 212021 Q1 Earnings call transcript