Earnings call transcript Q4 2022

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Operator

Good day, and thank you for standing by. Welcome to the Q4 2022 ExlService Holdings, Inc. Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to our speaker today, John Kristoff, Vice President of Investor Relations. John. yours, is floor The

John Kristoff

Thank you, XXXX Call. for EXL's thank Hello, Quarter and and Fourth Conference you Year-end joining Gerald. Financial Results

On fourth and today and the you've morning. had Officer. me Kapoor, to that release call Chairman review we opportunity Vice this the We are hope Chief earnings Nicolelli, Maurizio Rohit Officer; an Chief quarter Financial Executive with issued

an sheet EXL's also posted earnings in website. Investor have and fact slide We investor of the section deck

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

reference sheet. provide may can Reconciliation fact we financial call, we in non-GAAP our believe found be our During those measures which deck slide useful investor and measures, investors. for GAAP information certain of to press release,

turn now I'll the call over that, With Rohit. to

Rohit Kapoor

momentum Quarter XXXX. EXL the be Thanks, finished another XXXX Good with quarter. with reporting John. enter morning Fourth Earnings strong and this great Call. year we everyone. the to pleased great you Welcome Year-end I'm to morning, as We

$X.XX EPS increase quarter a XX% And currency fourth we grew to revenue constant an adjusted of year-over-year XX% and $XXX per on Our quarter was basis. fourth XX% share. million,

and analytics, up the solutions. XX% generated growth delivered operations sequentially of $XXX and for X% across both we quarter, million revenue In strong and digital We analytics year-over-year.

revenue. represents and full total of business grew XX% our our analytics For XX% year, now the

Solutions X% business. business to driven & million XX% emerging insurance Operations in nearly year-over-year quarter. Digital growth of in growth XX% from by $XXX our This was sequentially in with third generated our growth Our and year-over-year revenue business, and XX% the quarter year-over-year accelerating the growth

fueled expansion 'XX. growth relationships and wins Our an existing client of by new client was in

These domain has impressive that positioning focus demonstrate X and solutions by and us coupled EXL operations both growth data expertise the results our industries strong key across on engines created in is transformation, future. our well data-led digital strong This with businesses. digital leveraging analytics for

clients office generate decisions their our our connect points data transformation, increase by operational operations analytics more enable a insights workflows with improve to savings is EXL for to engaged intelligence faster, and customer operations through and using efficiency digital in helping remove is back use to enabling data strategy their to latencies. value speed data-led front-end platforms outcomes. to through better to friction We insights and Our through and customer business advanced clients offer experience. embed to

AI domain capabilities with and technical advantage. of competitors. are use with us sustainable have Our enables period mastery our expertise been a to over and of industry-specific develop time sets and difficult These cases replicate combined us competitive deep skills providing our built from apart us to long data, knowledge and a

total Our market dimensions. has addressable across our expanded significantly X data-led also strategy

core our First, industry verticals. we are going deeper into

and group annuity property are life and historically expand casualty and Today, example, third-party reinsurance, in and to reach. clients. and new winning continue benefits, and insurance, in our retirement brokerage, focused on For we geographic we administrators we logos

health care into Second, insurance, we traditional are of also industries. finding success markets our and beyond adjacent banking

is XXXX. An scratching on basis constant this, the illustration runway XX% we the in an for growth year growth successful amount organic enormous been the have quite in years. growth business in potential currency emerging we of surface our delivered we in doing full are an coming While just of revenue with the

opportunities Third, we and focus Financial C-suite. new Chief Chief Data the Chief buying within on Officer, we work Officer base. Operating In are past, was Today, the Chief Officer, pursuing Analytics others centers the with Officer. Officer, Chief client Marketing across Officer our the Chief Risk Information our Chief primary across existing Officer, and

our our with Finally, moved scope we upstream have and expanded of competencies. solutions

We within business on as words, with larger have This to our outcomes just also larger us grow our taking to do In the other clients process opposed operating entire work a portion end-to-end we to the the enterprise, across are and and ability to now business. clients. allows work process. deals better an of deliver

countries. I'd like multinational brokerage firms strategy and in examples EXL digital our the We win that of began to multiyear journey data-led of digital share in position uniquely the over with world transformation largest in XXX exemplify how a a capabilities marketplace. one presence a with to few the

the them of time, redesigning improving at efficiency enhance goals driving to experience. same processes customer helping achieve are the their while We their and

their for the and better this enterprise-wide experience accelerate identify are quantum by will solutions improved. This be rolled can customer end centers and data to is extraction model. customer doing excellence We and friction where being business using improvements points work and understand journey the analytics digital out AI-powered to be to internal of foundation workflows

X often top and to a extraction end-to-end routine Based This experience. customer able with top of of for U.S. solution we stack going enables downstream processes is the operate this awarded on to the illustration our claims for XXX% We disability and that unstructured deployed AI fast client in large-scale leads technology intake intake value claims They conversational through disability of This of to the and analysis data of improve touch as XX%. a efficiency customer. how good results existing scope. tangible of processing integrated the experience our deliver is and the system instant to their of transform expansion claims. the straight-through example claims first large with point. we disability intake the elevate clients improve to a initiative, by this wanted deployment, us one the contact efficiency were insurers Another Through and of on center

how These two to has examples the drive across are of which end-to-end strategy strategic win our digital complexity frequency base. us in data-led as large-scale emerged client transformation, partner EXL are marketplace. are just and helping our in a increasing

becoming of to In to this continue help We to data-led talent having our as we best of opportunities our EXL choice. recruit well. I fuel am work team. who successful addition attractive be life. want this and combination part work brought our and I growth. than value led our I an execution clients. develop team employer of for feel employees relentless to of to pursuit strategy, deliver fortunate to vision more global employees continues of thank industry, a recognize incredibly to proud to and have to and people delivering hard has XX,XXX and on their the our growth of the in interesting want The our

XXXX, demand specifics provide but to solid well some as and have new color the we the look general opportunities. environment. XXXX momentum I pipeline will our wins the with a review wanted guidance, large Maurizio of of to we As robust on deals as

not our We continue the Analytics and business quarter. has to view in see changed overall third materially from demand our strong

view profitability in analytics growth, to continue clients and invest leveraging differentiation significant in capabilities. and analytics Our their of function these a driver as

steady are more Deal & in Solutions, pipeline digital In we Digital increasing. have clients Operations and transformation as seeing sizes cost on our demand focus been reduction.

operations plays and clients partners. of digital to towards unique see This to our One to the gain more trends of drive well their and extremely business is we demand integrating strengths shifting accountability macro in the adoption analytics are and greater value beginning our model. with

and results are and exceptional well working. beyond. positioned for We In XXXX, summary, strategy we our in data-led is delivered financial XXXX

We We in growth and addressable large to fundamentals growing and confident remain resilient in EPS ability our have with sustainable deliver growth a double-digit in and operate total industry. very market, revenue XXXX. we a

confidence winning dedicated positioning EXL's and our team. talented competitive Our data rooted is capabilities, exceptionally strategy, and unique in

performance With Maurizio cover it that, financial turn to I'll our detail. over in to

Maurizio Nicolelli

of followed us morning. joining will and quarter We everyone, delivered Rohit, performance year fourth provide revenue XXXX. currency XXXX, I the our basis, for strong you, reported sequentially. increase insights grew this year-over-year XX.X% of for On we revenue and constant $X.XX, XX.X% a and by year-over-year year-over-year. full our on into a up Thank X.X% with basis. thanks, million, financial quarter a fourth XX.X% an Adjusted for $XXX.X outlook EPS was

and both digital reported volumes and driven was relationships increase driven year, operations revenue new XX.X% our and solutions million, of All of as transportation and The $XXX businesses operations travel In currency represents from solutions we relationships. million, third Insurance currency with revenue organic by X year-over-year and an analytics client insurance the of and million. and reportable The X.X%. businesses XX.X% by wins million. businesses of solutions from and earlier Sequentially emerging in an was client in of grew growth defined consisting Emerging organic year-over-year existing This of vertical constant grew on and are on expansion revenue consisting client growth grew analytics million, digital in $XXX.X $XXX of quarter, in segment, numbers $XXX.X wins the mentioned year-over-year basis year-over-year, XX.X% with segments, digital the XX%. up both expansion Analytics, our by vertical operations XX.X% of other year-over-year. an XXXX. revenue excluding basis. which we growth constant hereafter our generated $XX client higher existing new revenue revenue Revenue

in the year-over-year sequentially reported segment, quarter. of was by digital from of analytics generated Clairvoyant up $XX.X client care banking vertical XX.X% grew Healthcare driven quarter segment third [X.X%]. health revenue and of contributed Analytics revenue year-over-year, and of retail. an with business. health services, $XX.X solutions the existing basis. the lower services and fourth and grew the Including relationships care the X.X% revenue grew down our XX.X% million organic of analytics $XXX.X year-over-year consisting Healthcare volume year-over-year. Growth The XX.X% revenue in in million. fourth Clairvoyant, third in financial grew we the $XX.X XXXX, expansion of businesses in analytics currency Sequentially we operations on quarter XX% million, million by In The revenue quarter. clinical constant driven from

XXX expenses cost by to points by XX.X%, SG&A basis year-over-year and operating leverage continued driven discipline. reduced We

XXX up leverage the operating margin basis XX.X%, partially to support was points adjusted new client Our for by investments ramp-up of and operating driven offset the year-over-year, by quarter wins.

was the basis. for quarter $X.XX, EPS year-over-year a a on increase adjusted XX.X% reported Our

full basis. on constant year constant $X.XX XX.X% our of XX.X% an full a to verticals operations $XXX.X currency XXXX year-over-year basis. Revenue grew from businesses businesses. increase our organic analytics turning solutions constant currency performance. all by currency digital million, billion, Now our driven This a on was an was We year-over-year in growing year our XX.X% and solutions operations revenue and basis to and growth on digital and

generated business analytics an constant revenue, XX% Our on up total points of of basis. percentage XXXX. $XXX.X increase XX.X% contributed million million] revenue, year-over-year. [$XX.X Clairvoyant X Analytics year-over-year in of represented currency a

year-over-year operating ramp-up the margin with support to to XX for down of adjusted return expenses higher new Our year basis driven a operating by associated investments was the and the XX.X%, office. points business

We Our was the adjusted year XX rate XX.X%, a year-over-year year grew full XX.X% tax EPS for effective year-over-year. $X.XX on reported basis. up basis to points

remains Our balance strong. sheet

in compared revenues. investments debt cash Our accounts flow We million, with in million. was on from a million, due operations higher cash, by million XXXX XX our $XX December long-term million cash $XXX revolver driven net of for receivables $XXX and including and to was increased generated of short-term position XXXX $XXX $XXX

year, per the $XXX of million repurchased expenditures on at share. our million capital we average XX.X an $XX During shares and cost spent of

on our Moving outlook to for XXXX.

strong across with businesses. and operations digital our are We year momentum the analytics solutions both and entering

deliver visibility in Investor confident we While are are are recent uncertainty, revenue and Day. half further into uncertainty ranges double-digit in in ability outlook this the again targets of the our that and into once we macroeconomic have future. presented of adjusted providing with XXXX growth at we medium-term both today good the EPS to consistent our are the we XXXX, first Despite the remains conscious we

the of to on XX% of XX% to representing to on range reported growth constant a We billion, XX% a year-over-year anticipate $X.XX currency revenue in $X.X billion basis XX% basis. and

solutions currency a XX% and XX% to drill to analytics to constant to in X% expect the range XX% We and grow grow basis. on of operations to

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

in be the headwinds range even to considering of of are possibility million. XXXX. in the capital ranges expect believe these $XX $XX We macroeconomic We expenditures million achievable to guidance

continued our well grow data-led total execution our strategy, Given and growth addressable expansion the our of market positioned are advantage, growth the double-digit to successful momentum. we talent of our

With happy your take be Rohit will I questions. that, to and

Operator

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

Margaret Nolan

Nice client ramp-ups the and quarter. about little recent of quarters? compares that like in and look how what the in in over level would that quarter XXXX a bit you talk Can several new past investment the quarters to next maybe

Rohit Kapoor

Sure, Maggie.

deliver and infrastructure. requirements. our we've So in we people increase we number we amount continue in of an And of new expectations well was The certainly substantial investment reflected particularly of that's customer is in clients, from won signed make terms ramp-ups, which there sure and in that execute XXXX as our can up new business to the that to in strong. as new client a clients and

the and continue of will over strongly 'XX. of that, implementation new expect the the execute will Some we in half spill And client of that year. wins we particularly this to execution into first

in ramp-ups gross we margin, we impact to the because investment margin stabilize ramp-up that as of we at the to are But us. generally we lower new The revenue business as does for continue new while margin client is ramping a a normalize have -- eroding that up. expect that make

Margaret Nolan

to annuity more XXXX? could from you And that the then that of discuss analytics project-based you whether here? in kind work you balance expect of mix versus And saw type change

Rohit Kapoor

Right.

they previous do had. looked clients we about project-based much sure the some we of they towards quarters. had for weren't came particularly for QX, our that in have discretionary of the the some X as we QX in tightening that spend very we So the revenue that the and XXXX, pretty had Actually, provided might when had clients as work in seen spend guidance

work really up being change continues and expectations, The shifts balance slightly seen pretty work getting. steady. we compared our any to we us, remain terms between quarter fourth to trend shift and so haven't ended seen of right in than the now. any haven't the in annuity-based And we're that quarter in work for that And a as really project-based stronger

Operator

of Our next question Cowen. comes Bergin from Bryan

Bryan Bergin

I wanted start margin on to here.

the So margin I'm gross also -- talk the margin. travel underlying a ops can you 'XX not. you to hear deal curious And also about and curious left outlook give in large us adjusted have operating what of analytics on ramps. you're as the sense bit embedding a if and how I'm see it I [indiscernible] relates trending to you fully up. you or headwinds related digital

Maurizio Nicolelli

Sure. don't question there. margin your I tackle Why

right look when XX.X%. we XXXX, for we So in at where thought at line we the you end year. would the ended margins for And year up with

the downs XX.X%] going it at bit look But quarterly, to basis. there's we you quarterly little be always around for ups If of and by a [at full . right a on ended year,

did of health us couple of little within that have the in see clients And headwinds that hurt XXXX. year have a we XXXX. give we transitioning going the did of that our gross have care. That year, had numbers next pushed into within down [indiscernible] health we during you uplift We care a will Going our that -- during couple bit with the year. the into margin a

for we QX, additional have up a XXXX. fully in and revenue ramp-ups particularly And getting XXXX we're in to clients also terms that XXXX. more on cost then beginning that QX realized We being so taking in -- ramp in -- of we are in ready of number in

constant that we macro where we inflation basis confident a all of guidance, assuming uncertainty back see our from from going we're as remains in wage grow. And the margins, When potential within end leverage ended into pretty you we even the then together, of XX those of XXXX. another margins to certain into XXXX. with a to And year do level we XXXX, growing level going giving continue XX expect a HX. also certain And modestly put do points

Bryan Bergin

year. That's dig outlook you a calling I more guess I you underlying on on making? macro helpful. the assumptions just on hear little the Okay. in And for you're Can growth the then bit out of how curious on past, level in here And second of kind you've what built uncertainty. building about the years particularly that prudence forecast? to this versus you visibility potential that growth I'm half? guide thought

Maurizio Nicolelli

address I'll Bryan. that,

look second level half on certain So are year. of when of of for a at constant that XX% slowdown the you And assuming year. our we it's in revenue, guidance currency basis. the uncertainty XX% second half the And a to assumes a

are his us potential mentioned If seeing into We going continues. half slowdown where little a do But uncertainty very from bit that prudent are little that year. the then we today. as the our a we from in year, of and that and momentum half -- yes, the not give second the or does bit opening second upside in the bit remarks, slowdown a a see within of Rohit guidance we approach are towards of XXXX, -- of good assumed that of we've a taken

Operator

Our of next from question comes Moshe Wedbush. Katri

Moshe Katri

Nice quarter.

in about of should a QX, for assumptions Just first That's QX calendar question. kind my How couple then of half? the quarterly and we of model-related second think terms the revenues progression 'XX.

Maurizio Nicolelli

Sure.

fairly -- year. a we've It's We and any than being what growth other So revenue when any when quarter seen at the it, quarter. XXXX, percentage see higher one fairly think for don't you increase of prior. significantly think in 'XX about in we I gradual it's it's consistent throughout terms look

So for throughout a year. gradual the would purposes, assume increase fairly I modeling

Moshe Katri

QX to from So QX. like XX% I had think about you last growth sequential quarter,

number. be for still I looking we now? think should that that was what Is the

Maurizio Nicolelli

to bit high honest, seems be quite little That Moshe. a

we separately, your can think modeling. with help I you

Rohit Kapoor

we for to the revenue And think the model guidance quarterly our gradual increase way revenue in I is provided guidance over think you a a out steady take it 'XX Moshe, 'XX look at and about to can best you. annual revenues. Yes.

Moshe Katri

year? Understood. And for stock-based assumptions the comp

Maurizio Nicolelli

They're be a digits. similar XXXX going single increase to very the modest to in with

Moshe Katri

in then question, big And spoke visibility a demand. picture Great. about Okay. you

towards cost is talk peers terms looking it a talking shifting bit some about you And out there? clients in the that about is pipeline maybe well? the that this your you of cycles pivot you're what seeing of of the the in of nature cycle cost seeing sales Maybe solutions as One fact of could kind seems optimization. for and that are the then is sales given environment. Are more shrinking optimization

Rohit Kapoor

to happy this I'm Sure. spoken we've something about past. take and is that. And that address in which the

first demand environment quarter remain to So last continues quarters solutions overall or and been strong, of the we really change our seeing. and are there's two no for the all, services over that

there However, elements demand are and growth stronger environment. other a where where demand of see we to are within shifts your that There some stronger point, much elements much coming are a seeing and in. we are do seeing elements we softness demand

towards There and certainly lot a more getting cost seems productivity. be efficiency a and reduction shift to

certainly we're where can pushed So places seeing analytics. out. marketing be softness And tends The around is discretionary clients trending be to are that direction. that in it expenses there,

in So we're out at of momentum in and therefore, there. increased seeing that. we same greater also amount strength of analytics managing seeing time, risk. And abuse we're and But the are some of managing seeing a fraud -- risk

pretty we are pipeline. seeing the of deal in large sizes, terms deals In

continues be the and healthy to as So an demand quite us such, on strong. overall basis environment for

much a immediate really seen to quicker. things urgency be cost where The tends reduction conversations down. are any haven't our on and with slowing more much We clients

in signed wins fair in be certainly that activity also amount with of clients. that mind our we and is would we a our trend But we up So also implementing executing. in pipeline that that keep client 'XX and are of a seeing terms

going we're focus so to And to continue on that.

Operator

from question Our comes of Ashwin Citibank. next Shirvaikar

Ashwin Shirvaikar

questions. I to Yes. follow of related up want on demand kind

of kind part [security] based as your There we that some taken half account you've you economic may You of the to of ['XX]. saw from of guess of in tough the into the at is it comp -- digital I half the the I between early of comments. on strength ops second that looking head back standpoint. year into wanted obviously an differentiate kind

do? terms you're it to that right so your terms is guess I more of question we're that feel of outlook the decision feels is, current so kind the something on something pointed you forth, in caution actually of in pushouts, the environment obligated expressing seeing lower because like is to put in in And volumes, it thing

Rohit Kapoor

Ashwin. Sure,

I think bit little muffled. your coming a voice

your we've So questions I perfectly. hope got

that of standpoint as seeing say, be So demand from X environment seeing activity months first compared no of previous or, discernible off, difference quarters time, and 'XX. we're let's the this at client are we point a the to

very on with that the and conversations and our feel as very healthy, good clients solutions we're remains active, So very on as digital we having and prospects well operations that about analytics. both

There of In in headwind this a the we've guidance terms out and economic Certainly, cautionary might year. beginning that stance because guidance is terms be there. of that play factoring our over has the the this of the the of taken is continuing to in next environment. Yes, wage amount there as well as the 'XX. a was quarters. fair a economic is rates is X it the be level definitely discussion in heightened same There to as and interest remaining in at inflation much what high slowdown uncertainty about a

with half have and of in that to of the continue second worse the addresses couldn't able you be because in, or we terms that up in well better of the bit we question not updated expected, go we seeking in clients, hope we'll might And be be that we to we question. hear of the have our and It how as conversations careful guidance And what quarters, to quite factored you deliver. seen than your through were we in provide turn I guidance about don't the that out provided. may while we'll shape prudent Now, set want to we the a therefore, year. in anything have terms that know. that

Ashwin Shirvaikar

Yes.

No, that's Sorry perfect. that. about

sort most eased regards pretty of want supply of the everyone heard kind for that much pick up of availability have think whether kind inflation, a whether wage attrition, what others you seen to counter whether Rohit pressures, it's I've what to talent bit is else wage the inflation follow-up, because the on with. with has said, of on I from it's who just that comment side I spoken to it's we've

So of could you go challenges and But challenge you're to into is that about kind side stronger the potentially could that? talk alluding supply you too maybe word.

Rohit Kapoor

sure. Sure, Absolutely.

I our much very attrition the we So are will and be attrition to quarter And on that in side, has more seeing down going would the reduction fourth take think stability and as significantly, certainly forward in XXXX. you, expect a attrition rates there we've shared with dropped in workforce we place.

terms in us the management. in might even and from proportion of analytics. in revenue inflation, of one, between think Two, higher XX% commentary of players difference our wage digital operations I revenue have the comes other our a be, In much we

continue we is places attractive growth and positions skilled saw very on what wage be us and between a it's inflation around the roles and we might think big analytics, are complexity that similar retain 'XX, in subject rapid EXL. high would place anticipate we provide be and to and matter that to I difference we other players. So where there bring them the digital that that expert can where we talent a the highly opportunities where with seeing And career to is within so need would

Operator

from Our of JPMorgan. Puneet comes Jain next question

Puneet Jain

term. Question on Nice long quarter.

or you to to do it but now? like understand that be when able to term, need seeing as cost continue willing trend cost, when upside may be near more are as So improves to this macro not this significant clients I is cut expect you cut outsource to

Rohit Kapoor

Thanks, Puneet.

reiterate existing want platforms based end based to modernize model much time, business that So customer at continue on enhance helping to also strategy. clients the same business efficiency, our It's and deliver model. but technology very resilient the experience. our a more a their I data-led is on It's

is actually normalize, economic a shifts reduction, that is is and can when cost sense So shifts very much focus When there that. terms an we customer and of create we experience. growth, towards of can focus significantly towards there strategies our our clients and there fulfillment help is better things customer strong our and the ability to the differentiate with grow and the in help slowdown, clients a growth those and acquisition

So spectrum, what is helping of the reduce model have very frankly, able both costs to same our the increase and our this a very, revenue their at clients. And model resilient on with very being their attractive. that's that very, think business play clients makes time, we sides we business

Puneet Jain

Can of already excuse analytics in you should it. inflation how Got if in might half And about remain talk commented trends me And this. the on we first about expect pricing high? this year you you growth given second wage think versus the half?

Rohit Kapoor

Sure.

first certainly, our instituted and we process arrangements as clients our to been to last pricing 'XX. literally clients appropriate value had the changes year to in and comfortable were the delivering And So up that went talking who as wage very making that pricing on to time, the That pricing, 'XX, for with we our are have inflation about commercial Puneet, we started them. to enhanced, environment. clients changes to was significantly talk us the and the

trend continue We pricing. think clients 'XX And that, that very will having we our with beyond. in conversations good and regarding are

basis. to work deliver great continue to up clients and our much on value that value we that So partners work complexity lines, us our we our competitors differentiating clients. lower on as deliver we higher maybe to as as is to higher pricing we the sensitivity end strategic And of and think from long think ourselves

and insights convert their outcome. data investment and clients. outcomes data into and leverage get our them by helps we single see that our customer those trying analytics, and Every continued help insights data, analytics from into to those manage insights On translate that them insights generate business is from data

seeing very half see year. we're the frankly, half of analytics So business. first the any second good traction We the our and on between very, don't really differentiation

XXXX. to we a commentary As steady for earlier, place expect we growth provided in business take would our

Operator

Tandon Mayank of Needham from comes question next Co. Our &

Mayank Tandon

Maurizio, not, to worse fourth Sorry, the part there of is I into there. to there outsized to did saw answered, quarter. but and acceleration that given or fourth one-off targets my turn on healthy the I the the something quarter? quarter, well been and your the in the growing out Most remains want operations catch trend. Rohit that Was the we have questions on today, if be first and potential a this above where there delve in be we macro are piece if Rohit, growth, didn't congrats that's certainly above just medium-term for doesn't

Rohit Kapoor

Sure, Mayank.

So our in Operations There a healthy very, the quarter And our 'XX. fourth solutions Management pleased the certainly third that. quarter. in at quarter very that in high, is all management at with the very Solutions and which pretty grew XX%, growth & and business an grew operations business was rate fourth of acceleration of we're and pace

are us management they'd fundamental us more of Number why that them seeing and digital come to partner we operations operations and with an to certainty deliver solutions value. integration value, and that think clients There and one solutions say see reasons to more two our is there are strength much like as in because we greater business. easier of value analytics business digital and that much and accountability much of our higher that their provides is

we So that this are is a trend great seeing.

digital in solutions very very, advantage operations are positioned We marketplace. resonating analytics of this the to take and and is combining and uniquely well our

our for is delivering and strength and around are of mandates And that are at rate. and transformation our very outcomes faster and in for terrific much proof speed our well have reason resulting giving clients they've they seen growth accepted, clients much capabilities to the scale. and deals second digital concepts out at after digital that's become a larger The us larger them, play initial

both pleased very strategic, term, are these we're long very reasons, much continue out. play fundamental we'd to of with So to this X more which expect and

on be with kind up cautionary have see Now and a is watch. is how that. and this we'll by of clients something some how There and shapes commentary guidance prospects, in thing to wait how might provide and evolves sense And updated progresses. we'll which we'll definitely you this taken 'XX it and that

Mayank Tandon

quick side. you stock. very bought back just helpful. then the Obviously, And That's follow-up on capital a allocation

potential for Just that? you terms thinking M&A? around of for how repurchases are the Any share thoughts in versus

Maurizio Nicolelli

Mayank. sure, Yes,

fairly So when you I XXXX, for would allocation we see to our thinking XXXX. it think think about similar capital in

to dilution to In look year. back XXXX, grants we comparably and that's terms the shares what very buying in primarily offsetting we stock the would issued we throughout shares, back did that of our buy from

would if internal to look remainder, and And we rise of would debt a bit to that the rates throughout also those contain M&A would we expense. little really about. a look opportunities as interest use arise investments the for pay down potential that certain extent to interest year to Then come

Operator

Our comes Research. of next Colicchio question Barrington from Vincent

Vincent Colicchio

nice and Rohit, overall sequential vertical, a the care growth had health Solutions. Digital very in question on Operation

to you been throughout Just curious I call that there? big would expect know a or clients? driving know the continue? if client do out momentum -- that? it's number I fairly this the And what one weak you lost sequentially you client. year. What's Is of

Rohit Kapoor

Right.

done our the So Vincent, of much health was the right. clinical is complete. pretty care you're decline That part and client in one of because absolutely transitioning. now business The

business health has care stabilized. the So

gain would the But I from our saw do digital growth which As we continue something going we to we more full on QX care associated here growth QX and embed operations into digital and solutions to think expect in is care sequential year. grow operations, we're with steady with and would business. health health see not trend that sharp operations extrapolate you business to one-off. solutions to That's the XX% traction. digital The over our

Vincent Colicchio

more for And difference point your geographies client Is you among one there out? sentiment then would me. in that any just

Rohit Kapoor

seeing the be U.K. level in demand and It how the Zealand. in None business. do they as focused as globe everybody we're how drive is New same Europe greater from and Australia seems actually trying that data-led to of well across Vincent, outcomes. data, do are they get insights And data manage and are on are seeing, their clients we like all a

us, fits in for the and across with seeing strength we very that board are so well our And strategy, geographies. across

Operator

Koning David of from comes question next Our Baird.

David Koning

this Guys, Dave Koning? for is

Operator

is. It

David Koning

out. Okay. cuts Yes. It

So you at than attrition. yes, guess higher But pretty bit it's a usual hard it's attrition, high little to you recently about -- a level, talked hear. I were on

lowest in years. to XX around now You're down the

inflation? time are the So nice kind low go at going lever while, little of same margin attrition. a point Like you pretty stable wage pricing that help a for up might as generationally like wages actually be at a to up? Is actually could where just coming

Rohit Kapoor

Right.

So and for half us. high the impacted that attrition the in pretty in primarily 'XX, the because was us, the attrition of rate in was high Philippines first the year,

lower rate the coming with are seasonality a And us, first attrition rate to in quarter fourth very think very, the from be we down sequentially, much a happy attrition We cycle standpoint. tends for quarter. the

should be out things here. stable So

about as is to not way but think to far set concerned, much rate, competitive. looking the it it which is attrition we'd be so ability as it market a at standpoint, But an competitiveness wage and in and a from rather like the to linking inflation skill

as our we skills. do sure skills see out in competitive consulting, compensate And So can for matter digital, in us, want appropriately in value-added to analytics, being very there. employees in experts that we make very, and subject we be therefore,

would delink from tied and we attrition we the wage rather inflation the the wage market much than attrition. to inflation So rate rate, rather have the competitiveness would

David Koning

guess this that, like over sounds high expected years on then would is this it that that think is X as more steady kind the to And and be, pretty very do level I ops X, the you just little higher revenue? levels see you analytics years And at forward And say good. hey, so now business? convinced recurring a thought No, it the even less recurring. we going you've of of I I Okay. as a but than being ago, question, maybe digital recurring this of as X, business,

Rohit Kapoor

why analytics client Yes, right? of everybody piece large things a that's high David. in of and substantial and One, trying are more very and we a any There become couple growth, invest is to and And think very recurring pretty more is data. stable, in this very business.

So if that in number past few you any to take has in a XXX. look to analytics, at them and of be see the the total that be a employees dedicated used number those might the of numbers client

a shift of likely much place to use and the in sizable, and where a linkage and very particularly between greater to they're meaningful that's continue process it's Now There's become of taken greater thousands this is a marketplace data, -- technology pretty use and thousands become it's of greater there grow, and outcome. as has AI. automation. tens a and very use There's

going just onshore analytics to our to a forward. to continues for frankly, clients leveraging going is with model deal analytics, critical because this they spend cannot There and scarcity huge of a this with only delivery we resources. continue is So this be increase in think talent space global for absolutely

our very to this. that So it's folding we and is investment frankly, well us. positioned for great playing made be several we advantage. for up really to years being an this certainly it's helping And end on a story ago, And clients out our

Operator

turn At this Relations time, President, back Kristoff], for Marketing Vice [Tim I the would like -- comments. it to to to closing

John Kristoff

Thank always, directly. joining regarding this reach our goodbye. for call the you again, and morning. hesitate And you as on if don't to Gerald. financials, me have additional Thanks, to questions all out us please Thank quarter you

Operator

participation This your Thank the does conference. conclude today's program. you for in

You may disconnect. now

ExlService (EXLS) 23 Feb 232022 Q4 Earnings call transcript