EXLS - Earnings call transcript Q2 2021 | ExlService Holdings, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Second Quarter 2021 ExlService Holdings Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Steve Barlow. Please go ahead.

Steve Barlow

Catherine. you, Thank Good morning. EXL's I'm Call, President Steve Relations. joining Quarter Financial of for XXXX Second Barlow, Conference everyone and Results to Investor Thanks EXL's Vice me and Maurizio York our Chief in Vice With and Nicolelli, our Officer. Kapoor, Chairman Officer; Rohit our New Executive Chief Financial in today are offices to had XXXX our earnings release hope you've review morning. We we an opportunity QX issued this EXL's updated website. in section the also Investor sheet our fact of investor We've Relations

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

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

Rohit Kapoor

delighted revenue continued growth in Welcome half I hope EPS. you EXL second are better-than-expected Thank first healthy. safe families adjusted to of Second Call. to quarter strong the achieved Good Earnings and you, our report Steve. on results the XXXX. morning, and I'm Quarter through everyone. your XXXX and

the a Our QX for which a basis. to share. constant increase million, currency $XXX.X a year-over-year Adjusted and represents EPS more $X.XX revenue per quarter than both sequential increase, XX.X% on doubled X.X% was

and long-term cloud. by sequentially across two, environment. three, demand the analytics growing shift of revenues driven $XXX.X decision-making adoption for hyper-personalization the reported one, Our Analytics XX.X% of has customer X year-over-year. increased trends: million, accelerated to enterprise; X.X% an of is interactions; and business post-pandemic growth the data-driven in The This

analytics, and data Our us has cloud helped the our competitive capabilities, accelerate across targeted AI proprietary advantage. capabilities a assets all verticals. advanced investment us gives our growth in our It

by business Management the $XXX.X Operations Emerging Insurance second and in quarter-over-quarter and our from generated in X.X% businesses. Our primarily quarter, revenue higher million XX.X% year-over-year, up revenues driven

first to further brief Before diving I'd like our a situation our give across update performance, on you the into business COVID-XX details of geographies.

As you progress the remains. many and all have we despite across very on been a period from threat the globe, the know, fronts, virus through challenging

to to are in monitor affected. the that assistance providing continue situation areas and We employees and relief are closely health-related still

as forming families. to vaccination resources, support a medical leveraging of closely in help strategic April clients. in office India, anticipate have In the model We work-from-home with directly Philippines, this that their with U.S. partnerships hybrid and we the employees severity working systematically this essential a of our in provided continue Company-wide, our We wave limited Europe and of our centers, isolation Several were occurred physical in spikes by supplies, served near the the stark second Latin reopened impacted. the assistance situation and America. our capacity operate and model addressed the term. and locations pandemic. and hybrid reminder maintaining May to We employees India, financial

but in fall. without helping has Thankfully, us program the any India closely. vaccination and active expect employees by significant improved, an the our we daunting our of challenge and our XX% it collaborative service to clients through have India of in spirit fully commitment vaccinated of place have to I must employee monitor interruptions in delivery. in situation to continue this commend the We get population the

sprung to to client back that I them and analytics as performance, clients help. reinforced our their relationships and I'm employees action cannot advanced cutting-edge to Our strategic to share support, immediately QX have our our offerings delivery and flexibility delighted thank our enough strengthened we empathy. Getting for capabilities.

been have client significant new successful We growing multiple securing in engagements renewals. strategic while

have clients our differentiators, analytics customer Our emerged helping and capabilities experiences. their end-user digital key enhance as

Building heading operations. half in CARES data COVID-XX invest this an is to that digital XXXX. in and data for and decision An deploying automated capability new of Protection applications Act example bank a procedures work and into continue timely with capabilities crisis, pipeline banking provide whom our with ingestion to to second maintain analytics and are leading customers we decision-making the We under and we flow automation midst global robust retail and of the created to their applying bank engagement the a funding transform the Paycheck started wholesale for the on of relief Program. process

U.K., EXL benchmarks. industry to channels, engage resonating with twice significantly to the reinforcement, been and bank clients compliance reduce recent controls. that driven to close has a engagement expanded our and calls customer experience. improved and addressed within our deploy APAC customers rates PayMentor's design benefits solution an enabled several the activate e-mail digital significant Our In The AI-powered algorithms similar automating a cost-reduction including the global contract and markets SMS. for achieved regions. example, multiyear and learning-based and Europe also response U.S., standard in collection program with The to to solutions two-way other international and now It manual using need Similarly, operational the well has Sarbanes-Oxley has has already phone partnered PayMentor, clients. solution, multiple were

and at focus to collections pivot case up our growth XXXX have strategy, talent dramatically a continued making delinquent ramped Fortune algorithm, by in To changes to a also subtle we training able the of deployed efforts. PayMentor thereby data-led use underlying aggressively market. receivables. enhancing solution's our development context, a acquisition, We reducing talent BXB addressable We the expanding BXB support BXC to the our were client and

data, in order particular new a in and have QX pace we in new onboarding been rapid expertise. in successful at to clients, clients, scale. and We of analytics digital of a demand meet focus building been In have growing areas at talent our have hiring the the competencies

We have also scaled enable strategic to the our up our leadership of achievement capacity goals.

talent more In to through on our addition capabilities to building take developing internal responsibilities. also we talent acquisition, significant are

The development One personalized Infinity. and program ongoing major shift of in disciplines. an seen multiple skill capability capabilities, analytics digital program learning a learning is micro-learning. agile employees ecosystem learning platform has of AI-driven EXL ecosystem of The provides elements sets individual towards helping This anticipates internal across us it the needs is called an develop core to pipeline. our diverse talent continuous and build development

with transformed frequency and our communication up to has expanded creativity, also through of keep remote We has reach responsiveness to get helped demands We quarters. the spirit working. systems several support engagement us over collaboration, the real-time our experience. true this EXL demonstrated and and employee of loops feedback enhance the and last and a uncertainty

the continually a and I with resilience have our form grow model the people and commitment through another business and of confident our clients. one environment. am able and our support We of our to in clients closer fast-changing our business partnerships complex been to business

experience. from this We have stronger emerged

to Our supported pipeline. by a stronger grow, business continues

ability half the XXXX. highlight and our QX maintain are confident invite will Maurizio in I of financial XXXX to our now in this performance guidance. second We to momentum

Maurizio Nicolelli

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

quarter, in numbers the revenue per share As with Rohit of hereafter XX.X% Revenue currency are reportable the by result up mentioned, Analytics, Sequentially defined adjusted year-over-year, basis. constant last from from growth revenue year-over-year. was best X business while $XXX.X Operations a was Management All XX was revenue XX.X% our our X.X%. million, segments, mentioned this up up excluding $XXX.X $X.XX. was million, quarters, first on as earnings

businesses growth million, X Emerging in was $XX.X consisting up million, our the of grew revenue quarter up of businesses volumes. health Clinical vertical, in quarter. industry was & first and clients generated highest ramping X.X% The first revenue wins Compared sequentially the was up grew by banking XXXX. consisting XXXX higher an emerging from our the year-over-year. by of Analytics up Accounting, management Finance vertical rate reported sequentially in year-over-year, wins driven and across first growth and embrace new with reported X.X% operations segment quarter. Analytics client operations This insurance totaled revenue and its sequentially was analytics our vertical, driven XXXX revenue grew the XX.X% year-over-year, up new Services data-led X.X%. businesses, in of XXXX X.X%. client the quarter $XXX.X in wins to of of the all had quarter. driven The growth and banking the and verticals first and grew This from from Healthcare volumes $XX.X relationships, the XX.X% XXXX XX.X% quarters. X.X%. volumes of and business by Healthcare of Insurance relationships client and in up million, Emerging revenue up XXXX, and driven higher care Insurance particularly consisting Our The first utilities. of $XX.X Sequentially, of analytics was analytics X.X% XX.X% to quarter last existing revenue Emerging expansion by XXXX, XX.X% solutions. of new second in operations management revenue management as expansion million, Compared of higher the revenue year-over-year.

basis Our onetime the sales SG&A we XXX totaling by points our investments COVID-related for spending of revenue, and driven for front-end million $X.X safety undertook initiatives employees. expenses up year-over-year, health were XX.X% in and

was spending. cost quarter expenses by leverage adjusted and operating reduced measures, XX.X%, for revenue, from optimization basis margin discretionary XXX driven higher operating continued Our year-over-year, up lower the points infrastructure

earlier. down points salary and quarter, adjusted was expenses COVID-related driven by first XXX margin Our increments mentioned from annual operating onetime as the basis

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

XX short-term June and a was at million. $XXX $XXX position was for debt Our of million, cash investments $XXX cash million, net our and

During the second revolver quarter, million. our by reduced $XX we

June Our days. was XX DSO XX at

X-month our performance. to moving Now

the of period $XXX.X up margin XX%, points period XXX the to last year-over-year. in a revenue growth XX.X% the the flow compared was year-over-year. cash was the the Insurance reported months Adjusted up million, year-over-year period Analytics, basis $XX.X Healthcare. $XX.X million and of operations by for X operating Adjusted for period generated $X.XX, from broad-based, we year. basis. on up XX% Our same driven for In This was year, EPS first was million

non-U.S. our in and to strong will with environment In moving the safety improving, the pipeline and U.S. The assess and the delivery circumstances have Now our impact continues primary continue staff. we we respond of economic the U.K. centers, focus a the the changing of on to year. is to being health our pandemic which outlook for and expand. to

$XX $X.X We demand the the and grow continued the to be reported that we range range. In of currency on to XXXX, of XX% we range. half basis to rate Based and manage the at delivery year-over-year at and have of $XX the represents solutions, services billion, and responsive half on the grow to proven guidance first This our we our our and XX% increasing low results, in XXXX, commitments, to million end the expect to our strong are conditions. revenue X% a to a analytics, midpoint $X.XX improved XX% of changing million X% on XX% billion to second continue can visibility basis. in Analytics will and strong up to in for Management range constant we XXXX XX% for Operations growth for particularly the a top be

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

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

the range of million million. expect in $XX capital to expenditures to be $XX We

the cost anticipate half a of $XX.X buying a the of the the we second half pace of XXX,XXX XXXX year. the back year, the on our of first above, surges. in start During million. in good repurchased at at first similar shares In increased driven to Based be to the the half we We a of expect had revenue challenges XX%, we $X.XX adjusted up despite the $X.XX, created XXXX to in range our pandemic XX% XXXX. recent by to by EPS conclusion, to shares

We and have business a model. demonstrated flexible resilient

Our our investments are and in solutions opportunities. clients' analytics, which our successfully data transformation digital meeting of is pipeline agendas, accelerating

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

Operator

with Nolan question Instructions] Blair. first comes Maggie [Operator Our William from

Maggie Nolan

new So can kind it is how wondering, Management cetera. frame et Analytics for momentum, to of to outside separately of you're kind nice obviously experiencing client detail good of growth give you if base, client back you much your I'm us and and pre-COVID-level And additions, Ops can possible? of But pertains spending? somewhat as additions,

Rohit Kapoor

Sure, Maggie.

So for right. us, you're absolutely

clients a adding at fast very on new are We pace.

Management a growth our are the and the lot We nicely. growth Analytics obviously rate Ops business And growing business. of our business of is rate Ops Analytics business than the Management higher our

back normalcy, of see terms see except the pre-COVID than we compared In levels, are to to say volumes for in that client And expect we that levels. would come levels, being do would the all that of clients industry. There, back to we back. as return some the spending we lower almost as have pre-COVID still travel to them the things pre-COVID

clearly, The data-based are is much powering Analytics business, a Operations of And digital the Analytics, has growth is fashion, for clear we more our demonstrate our pandemic we're growing terms them the relationships able value of fashion, analytics strategic is use for and a us by with clients embedding Management Ops nicely, more to accelerated that Operations build the Management and we what certain In and of also and is the and technology in clients. business with providing area. ahead the in momentum our in decision-making engaging much them. as Management business into

the capabilities positioning we've that the clients. which in we business built we the are are very that took, strategy the and So frankly, conjunction have, in we we executing our way with with pleased our that

Maggie Nolan

then And good. with Very going base. there's a on employee lot your

historical picking the and these bit drive little just for expectations since on those curious back your a pandemic. the touched be you've and obviously training a of bit lower? of You've up that. given low then little the the it provided But attrition platforms. environment development structural are them, is support attrition even the to And what Are -- some seems or additional I'm those that feasible rate that,

Rohit Kapoor

Sure, Maggie.

So will everything safety of and we the safety health employees employees. first to that is and possibly is ensure and foremost, health do our necessary of and paramount, the our

that Our employees great recognize to and factor loyalty that, see factor be our a between and company. they employees trust the and

as second typically second right enhance that terms given quarter. we first that an has the to and have compared a employees we rate reskilling In of know, that are April as complex terms attrition our actually products picked to be the fact first will able on of some attrition workforce, take the upskilling practice, kind place taking in quarter from that's careers increments is The a and investing responsibilities, of majority of they in salary and as environment rate them with you on EXL. up heavily higher to in employees, the a continue But place, change our to quarter. take of solutions, work for very normal creating the their first we more and for of the greater our on the much see work quarter

the is with ability think as work to some go source able and expectations the up we real of for the signing talent forward. our manage are issue develop I the our being talent clients growth we that to of clients and about

about the clients, and being with have to brand the of best time. employees able the aspirations able our confident built very We develop and very, the employee growth talent to talent, base same of our internally the of are at EXL meet that attract our be we to

be from side. clients period our that talent match match to the a we the think we with will demands where are an and growing ability So there in

Operator

Bryan [Operator question Instructions] Bergin from with Cowen. Our next comes

Bryan Bergin

a I wanted to in on dig segment. little bit the Emerging

allow X% some Management there you on past aside issues growth the outlook performance to in X% travel, really to forward. Ops So saw context understand And first going pace half businesses And grow Management areas. color you're the potentially in those of that Ops for provide prior can trying XQ on curious the a does that you given largely forward? second the underlying some the And if target, at to you that half so, of comps. that from going I'm and in I'm higher if

Rohit Kapoor

Bryan. Sure,

clients different segment Emerging of the number Business us industry So for a certainly from has verticals.

We growth are seeing portfolio broad-based a and engagement across out take our there. place

accounting, do work technology As with utilities. fair operations. travel with you work amount finance fair and of logistics. know, of We got transportation clients, do and some work do there we a support We their of accounting. the clients we've emerging in them and finance which of are amount work companies and in with We terms a and back-office in

there demand whole in of seems for So our our series across are deployment digital a speaking, to of clients seeing are good sector verticals. resonating management business. Broadly and we the and really for for momentum, industry nicely clients multiple Emerging ops be the

taking the reason there still resumed the side clients because that the the with travel that work level do place. consumer travel business and The we as why has still the side at muted that's travel. we think travel, of is pertaining on is So growth not is same to most

interventions management X% And able clients. they will into management the of think to we more do well, So very a Business back. really and across us. time, quarters a encouraging it period actually X% for take happen that's of the digital ops technologies that talk to into apply we revert in few as be and a will the are and for are of vertical, getting might growth for which areas There think Emerging over when our new verticals, we more Business more digital that that Emerging something ops to industry we is

Bryan Bergin

meaningful those you and any of T&E should go normalized think thinking margin. a forward costs we margins be with you see And here? about or operating as spend? S&M Did And how cost of from follow-up Okay. discretionary associated return as we resumption projecting about on

Maurizio Nicolelli

Yes.

half a question. margins So second P&L. into see our starting some And expenses our office thanks is to year, the an you bit this certain think But start back creep coming expenses in, in about be the we come return back for have these a process we of QX into to for gradual the of of little Bryan, to uptick the travel. of When of expenses on amount a to and to going P&L. starting

amount a assumption come into expenses monthly basis. to can the to But half the and a guidance. that the have That's back our an of We And situation -- is of of quarter office review a that for kind have on you a certain XXXX. of little employees our something of see we the us. back in assumed continue in year, in coming that that also fluid we fourth amount certain second bit a that's

Operator

question Our next from Katri Moshe comes with Wedbush.

Moshe Katri

strong results. Congrats on

be. obviously, line down offset How So potentially it's And robust. And it's looks rate -- you there? And the that And in post we're accelerating can pretty talk the spoke but about Maybe the don't that talk to bit you how I a do the pipeline about should about midterm? for could post-pandemic. inflation? know we is the this. we a potential about road? been of growth. if growth What Demand that actual impacting pretty you strong where spiking. growth we hopefully wage end the seeing towards potential then are P&L? expect? ready bit talk looks top then Are What

Rohit Kapoor

Moshe. your you comment. Sure, Thank for

the of strong. terms pipeline pipeline, is the in So

of have a we has close of the see you at previous second the the We the what being quarter new won number is velocity the us the that in in of 'XX is first 'XX pipeline And while as good deals seen about able increased, are same and sales can because we've larger-sized the clients that pace. quarters, of to quarter size seeing it deals, of pipeline. the into

growth of that of us, is back XX% growth The grow year, that. XX%, his we by than see and will year-on-year. had continues can acceleration XXXX visible growth all but growth in business that digital, grow expect year encouraged with analytics. as higher in continue you very to for to Maurizio much of clearly certainly Day rate that data in the shared this calendar above we're that quarter But Management to you at in our provide in prepared shared about And X% engagement we Investor Analytics the for to was XX% November. in remarks, is our Analytics the Ops X%. The So for

we seeing acceleration So are in for growth XXXX, rate.

Coming across periods, scarcity skill year. are things is question provide February of second in Certainly, inflation. we For mind we'll increase your actually the in a inflation guidance, But as on do subsequent different different number that of to next and spread we on wage sets wages. geographies. keep normally, the across talent this differently of seeing of and

back One of our home cut the and has work employees to down. costs commute for of the the commuting of fact been with been that the some is from has brought associated benefits also time obviously

We technology in in lot terms making and have more invest security information to a sure is place. of

are structure, and inflation those cautious wage balanced manner. adding areas we So that managed on in and we've to a our are expense the

are increasing, we environment much same that, what try continues have to and that what in But about U.S. wage the and have the inflation in accelerating India remain we we that's that and geographies actually manage is understand seeing in be as we certainly, far, seen careful previously. the appropriately. So something other pretty which demand to and with and

different levers on in a that business, top and continue build profitability our We bottom applied the will be that and of and we to a productivity, deploy we line our clients with need that can can lot on can model appropriate make the line. is and grow to more maintain both sustainable levels the digitization, sure to engage

and medium double are and digits past, faster we've term our As top than at to shared growth. be try grow profitability for us the slightly to revenue to line expectations with able revenues our in our our you low grow

Operator

Jain Puneet JP from question a have with Morgan. We

Puneet Jain

So in year's Analytics that Rohit, the potential service you Analyst shared given is from to clients, unusual. this are your XX% you is and year at XX% to But making outperform that for investments for the Day? growth obviously long-term that need segment there last

Rohit Kapoor

Yes. Thanks, Puneet.

clearly, Analytics invested as of thought consciously proactively way an competition We that, in and have our we we that a So could ahead and part market. value that peers. would strategy, large long-term create was it our an And was our was where then that area area we for clients. of felt grow rapidly and addressable

we certainly happy progress data really, and really it's our calendar with the business. showing is So numbers. acceleration year that on up we've In the in with very analytics visible, our are made XXXX, Analytics

based clients we're now, of engagement are becoming that data-led finding seeing there, the the are of that seeing are there, businesses. we of As all pipeline kind kind our that we on

data going with rate, the basis, but all XX% get On analytics seems the more you above provide very that and year. to we So and a color resonating the rate, rate on XX% evaluate the we from with analytics a operations signals good our that for make strategy growth to as strong going of Certainly, that to into have and to we'll like be to suggest it's data go-forward plus. that of create be next beginning XX% seems focusing growth in be piece is -- XXXX, Analytics, we of well and nicely. to embed data on said, growth insights helping to the them

Puneet Jain

headcount -- strong that was this And you. addition your quarter. in Got

level revenue your in You're terms still of back overall to headcount the higher. is much pre-pandemic while

by bigger do headcount it need or to of is Like before, the the over much at -- said, what different? few than business growing next by So like mix is the you piece you up was catch rate much quarters? Analytics higher adding

Maurizio Nicolelli

little we observation Puneet, That's of where a QX, end you our look a of just at the it's made. headcount of Maurizio. at has changed were at we're the QX end you slightly But mix total very XXXX. the When bit. good above

Analytics -- in more Ops X,XXX in slightly and that in Management. people less We have mix and

So going really investing heavily we've in that's years. really in growth forward really growth additional our Analytics the Management fairly We're headcount. in now rate And efficient really we're become power our upcoming headcount. And in more reflective to with that Ops Analytics into Analytics. driving

mix of So, has with and correct. to around right your revenue -- base. assessment much get The just is XXXX, higher back for a changed, that QX starting level we're to headcount of

Operator

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

Vincent Colicchio

T&E the the Maurizio, this year? many that sense pre-pandemic give off margin were maybe expenses for if year Yes, same points as a level, to next take impact how would us

Maurizio Nicolelli

spend forward. about when T&E to in that pre-pandemic. right went bit the So at look would of think -- going T&E we T&E a I forward. that percentage going thing we that change I to T&E we a the to that, we're think going I of starting a COVID. one is that that going forward, if now to the back had margin to to tell were way have about you be to to about effect that, is And prior say T&E But where we is you would the don't really going on lot exact the what travel now forward, it's level see mix reassess really is right number of right T&E going

So back had in we're that not going to right we don't T&E significant to -- that getting pre-pandemic. envision we

some but it where will but our have look point near pre-pandemic. not effect, basis So it when was you margins, nowhere -- at

Vincent Colicchio

real can on of estate taking us And update thinking you're reductions. actions your perhaps give an and you

Maurizio Nicolelli

office function, needs from that to going optimal through in operating in U.S. a people you're be globally. our forward many our or on model offices, here to the really our have going to hybrid-working be the we're requirements that's going have the office the the within lot going home in new currently with is someone be within weekly starting and basis. that to that how that And We're What days on HR we time to working we're of are particularly on someone going a start to find understand a really process office. So starting for enabling to individual, to change what's needs that each

our process we that's so of space reduce to to to and start potentially that And offices reconfigure going amount forward. have going start our the

Our put our that the then could start that, be into going review leases to our really going we we to out XXXX leases start as and XXXX. is on and together of winter office amount this plan to space of reducing process process come know towards see to up, coming fall, finish when a and

Vincent Colicchio

do unrest Africa? one, is I the And exposure impact there you may. much And operation? How one to if in your having South on -- quick then any have south

Rohit Kapoor

Vincent, that. take Yes. I'll

So are Town, most in South is South in Durban and particularly in our unrest Cape taking Africa, around within Africa, and the place areas other of Johannesburg. operations

beefed and a sure safe things make doing We secure protocols our are there. our there up number out that have and to of employees out are security

real in not taken place have seen So we've far, any South our Africa that with impact on operations. the disturbances

and Our pool our small. part growing part up and a exposure business, it's to to out Africa is a very South important good of It's an very nicely, not build be there, we've talent of like but there. our that capability to got continues very business substantial our we'd

Operator

from comes question last Stifel. David our Grossman And with

David Grossman

distortions rate a equilibrium think, up if your already that your over OM go of a It months. mean, margin all Is a I to you've I different anything the you said? you'd follow the just been said revenue add less already you and the been rate seeing the first to sounds what's one probably I that that what lower business back have T&E growth. questions could is, the at we're there have sustainable space. like for require question couple And doesn't office I can couple hiring than asked. wonder probably maybe approaches in given to is maybe of levels, pre-pandemic there last a several

you operating So can at we don't you is think about us least when thinking how give for all guidance, to -- what context year, but think give specific be should it. beyond margin. at this if convention Even we some us about

Maurizio Nicolelli

Sure, David.

expand on little more. a me it Let bit

the year's second come the obviously, half elevated we you at When of So in look start to half year, at of the this when they the you year. margins first down. look margins, had

have the that's going half within what's through. of happen particular, this increases year, round we our our year. in another of the in fourth second or have And restarted increments really quarter of salary In are margins that and things so happening to we the number a we flowing

what to of We second around are would gave spending on of terms that more level to similar get the also upper towards the of right half investing XX% in in year. we technology, the margin we're of We That to in XX% out guidance to year, XXXX. in. about, is be Rohit kind the the work-from-home talked end that environment where of

this our As real the of decisions operating the within But And on -- -- help we get we towards for end to changes estate. bleed office year, start model we those in bleed going to year. assumed our fourth the finalize we start new also, into make do amount return us quarter. quarter also extent, That to will we're to going the to have back that's XXXX. of And go-forward. may certain a a the fourth into office people guidance we talk of we QX. coming And office the in to that have of the about, certain

into T&E, lower basis, to as now on talked that of if range, obviously, look work-from-home minimum do fourth And have our a going but number working different XXXX [ph] margin comes would quarter amount people a we focus on the additional from what the end environment about going that give go-forward areas, and optimize start how you to and the of back margins particularly would gap than at a will rather the at at footprint a bridge it we be forward. really you when Investor Day, into still upper that about more going between from really But of So XXXX for us we XX%, for do we and thinking we at spend least we're also that's 'XX. right I XX% That XXXX. us do XXXX. help get will foresee enhancements and I

Operator

you. for Thank that conference call. And you today's Thank concludes participating.

disconnect. now may You

ExlService (EXLS) 31 Jul 212021 Q2 Earnings call transcript