EXLS - Earnings call transcript Q4 2024 | ExlService Holdings, Inc.

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Operator

Hello, and welcome to the ExlService Holdings, Inc. Fourth Quarter 2024 Year-End Earnings Conference Call. [Operator Instructions] Also, as a reminder, this conference is being recorded today.

If you have any objections, please disconnect at this time.

the Relations. to turn President Kristoff, now Investor of will call John over Vice I

John Kristoff

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

Rohit On with Officer; Maurizio Chief the Nicolelli, and Officer. me are and call Financial Chief Kapoor, today Executive Chairman

fourth afternoon. hope We the had release press opportunity an earnings you've we review to quarter issued yesterday

Investor slide also and investor the posted to website. our a deck Relations have of We sheet section fact

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

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

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

Rohit Kapoor

strong Quarter results. to Welcome this Fourth everyone. XXXX Call. our morning, EXL's with Good to financial John. you I'm Earnings Thanks, morning reviewing pleased be

during XX% across analytics year-over-year, our execute quarter able quarter as data share. continue grew successfully on generated strong revenue to We businesses our maintain of were In we the AI and and million, adjusted growth $X.XX the increase XX% and fourth $XXX we we solutions operations our strategy. momentum fourth of per an to digital both and to EPS by quarter,

XX% and X% ITI rate, strong services of was for continued acquisition. $XXX in year-over-year. driven the performance growth quarter, improvement care we the by growth sequentially, delivered million health of revenue services analytics, from an Data payment This contribution in In up acceleration analytics the and the

benefits trends the to for business continue client data drive adoption These our enterprise. analytics from modernization focus across will services. AI demand and Our on

business. is digital We our solutions fourth XX% industry new operations our strong quarter, AI that capabilities, delivered across domain, year-over-year to X business the and the reimagining clients on continue on better as and we up and result of business growth experience, digital customer grew million. make growth. we bullish leveraged efficiency, verticals sequentially our In X% as clients all accelerated during business revenue and to our model operations drive This focus greater existing to operating growth operations We digital and data clients. win with to their expand strong our $XXX remain business

industry growth higher the our execution of and industries. and specific to capabilities on we greater is The comprised AI share operating the strategy accelerate growth, AI model. new capture of To growing and have long-term and market of drive EXL's changed our model data a delivering our AI data operational value on to focused chosen leveraging suite of engineering capabilities, units analytics, units market strategic clients, our full our advancing rapidly focused

solutions develop enables and simultaneously. This greater data challenges for resource clients closer will scalable us efficient at us utilization, deepen of and full and and innovative operating EXL across and adaptability scale rapidly allow more collaboration, their bring capabilities. EXL's our infrastructure bear the with anticipate and to to AI deployment to new enhance will allow This changing swiftly market foster enable needs. to deploy multiple allows brings solve model suite expertise It industry agility and our us to to This clients.

market Diversified we Concurrent Industries, of new and aligned Growth reporting are Banking, Capital XXXX. and our operating International be segments These Life segments first Markets Markets. industry Sciences, Healthcare the with They are into quarter with model will beginning the change, units. in financial Insurance, moving and

driving and Our business embedded of our AI across analytics all data, capabilities solutions are are and lines.

As such, revenue financial analytics the now segment. be each included our in reporting will for

performance In provide order quarter executing segments on shift revenue business and data our of comprehensive as a we to the our growth we and and This more greater will first provide transparency report our of strategy. will XXXX. new with representation alongside of AI overall the data AI continue quality beginning

that accelerate data We as made our It and we built growth journey exciting AI. capabilities of mastery only towards way industries the a for proven data our an domain clients leveraging redefining expertise, but also their globally. a AI pivot not AI strategic reshaping strategy and of journey, time a is operate decades deep on is EXL and company, in our

achieved significant in several As XXXX. we strategy, we -- we milestones execute this are

our our proprietary Harbor Agent Data, new enable to enhanced capabilities management of data Digital Finance filed such mandates. acquisition XTRAKTO, existing as CTOs and and scaled the we to We solutions patents. Assist, data we and engineering and Suite, modernization With ITI Code platform several AI CIOs drive and Smart Paymentor,

experience. leverages processing and of launched years proprietary also our insurance claim language We over domain-specific data large which model, XX

a toolkit and NVIDIA, the partnerships Databricks, development with continue expanded Google, Microsoft AI AI leveraging innovating infrastructure, on leading and secure space, with engineering innovation. in and we agentic their our focus To and AWS, have scalable

deploying which depth with built care AI leading me implementations examples client. services we and enterprise the you the health base an AI. and breadth and of few share for Let We a platform set Gen broad customer AI illustrating our deployed are a and industry in

resulting use in X on this Gen of savings. implemented $XX platform, far AI thus cases have We million operational

client deploy use leverage going We will to this continue forward. this platform to cases with more

facilitated lowered time. of claims. decision-making, handling a our implemented insurance process cost insurance large better has and negotiations for indemnity for automate to claims settlement This adjudication improved and We and company U.S. claim resolutions their LLM domain-specific improved provide and casualty the

We while customer and AI agentic for an experience. increasing efficiency largest the deployment U.K. resiliency one providers, of utility improving have by customer operations launched XX%,

an consumer products manual deployed to cycles. while in for pay across to We their and with company agentic have This invoice a multiple agents resulted has contract XX% adherence to AI a reduction and improving source effort, standards. solution in large compliance quality

This stickier with Data a higher core at more XX% our in facilitating of for XXXX, partner the growth our for and more a resulting to complex potential. making business integrated AI are engagements revenue business and accounted and clients. our leading more in EXL of is strategic deals,

to increase Looking towards XXXX, we expect AI adoption significantly.

supply is uniquely AI the AI, has on for EXL to the capitalize AI on demand the side of and of focused conversation data much services. positioned While growing

assets, own First, IP including we with prebuilt accelerators. suite a XXX AI over possess comprehensive our of

And an and offer and cloud-agnostic larger assets. domain-specific access so that complexities, data stacks for is third-party value in of architecture leading are extensive data capabilities tech workflow we substantial we which opportunity. Second, fusion experience data competitive why about domain, clients. deals creates we that and modular enables to open, legacy of management is and streams to differentiator, have excited various us across finally, This integrated this work expertise decades our core AI

greater into enables platform on resulting and AI platform to our their agentic leads reimagine operations. to increased substantial by operations, announced scalability EXL efficiency, The or workflows their clients investment. business embedding across which AI in we accuracy EXLerate.AI, agents Yesterday, third-party return

across domain speed. workflows in open orchestration EXL-built use XX with than capabilities EXLerate.AI AI allowing their and an retail, client at allow and fast already closely to industry-specific all AI for to and is expertise, It agents in deep care, strong financial utilities environments. insurance, ecosystem us EXL's modular clients platform, partner implementation includes services. our collaborate reimagine more health

cases. feedback your received will it X events, to I'd more solutions, us recent that including may about AI helpful. most for specific in our We like details call to be upcoming helpful our be attention to which survey communicate investor use

March feature AI scalable are shift solutions. our where we as We will virtual discussing on our Details well conducting on annual demos available Action clients AI be X, hosting will our their of event as AI to website. in

where of and on will both deeper model operating also you strategy an segments. to be New will May data update discuss reporting a holding AI will strategy attend new and progression events. providing dive and X be announced We York, we in Details our We encourage the our investor on be soon.

you and AI. to all data your together continued to Thank time for support. look working of We shape future forward and the

discuss over With will our financial detail. the turn that, more to in results Maurizio to I call

Maurizio Nicolelli

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

a on increase we XX.X%. revenue on revenue currency EPS mentioned the currency are in basis. momentum growth on basis. $XXX.X XX.X% our currency fourth $X.XX, continued constant of and million, of percentages grew with year-over-year constant up year-over-year hereafter growth a basis. quarter a was Sequentially, constant X.X% a Adjusted All We reported

digital $XXX.X grew year-over-year we was reportable XX.X%. X.X%. million, our representing of from businesses, analytics, solutions operations defined Revenue excluding as by segments, and Sequentially, X growth

the grew of This Insurance of was revenue by In both we expansion with $XXX wins. operations million. generated businesses, of client segment, The and $XXX.X new vertical, and client digital increase and X.X% driven Insurance revenue year-over-year, year-over-year existing of and the growth analytics relationships solutions our XX.X% sequentially. consisting of an million, XX.X%

both reported revenue of $XX.X $XXX.X relationships year-over-year, businesses, and a Emerging XX.X% of solutions X.X% the growth client client and wins. growth million. existing we In year-over-year consisting The analytics of expansion was million, the operations segment, revenue sequentially. new by driven emerging and grew of This with XX.X% vertical, of digital our and

million, by analytics sequentially. XX.X% reported grew existing of revenue consisting The our digital X.X% client segment The $XXX.X Healthcare million. growth vertical, $XX.X businesses, Healthcare XX% year-over-year and year-over-year, operations was and and and volumes solutions relationships. of with The representing driven year-over-year growth of in of higher expansion revenue

year-over-year. segment, relationships existing analytics new Analytics in higher in Growth of revenue volumes XX.X% of was we expansion services, up $XXX.X client payment by Analytics driven the generated wins client in and services. In million,

points down of operating basis SG&A expenses, driven and digital in leverage revenue, as front-end XX solutions, and AI, offset percentage XX.X%, partially a by investments to marketing. year-over-year by sales were

up driven by improved operating gross Our quarter the points XX.X%, year-over-year, basis and was margin operating leverage. adjusted XXX for SG&A margin

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

full our year performance. XXXX to Turning

revenue operations year-over-year. increase Our up XX.X% was period digital billion, billion, $X.XXX $X.XXX and XX.X% Revenue from was year-over-year. solutions the businesses for of an our

and Insurance, segments of year-over-year Emerging X.X%, growth Healthcare XX.X% generated respectively. Our XX.X%, and

Our revenue analytics million, year-over-year. of $XXX.X business generated X.X% up

XX operating year points for Adjusted XX.X%, was year-over-year. margin basis up the

higher was tax lower effective tax by Our for XX.X%, rate points basis jurisdictions. the down year-over-year, XX in profits year driven

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

strong. Our balance sheet remains

$XXX was million, position Our cash, a including by XXXX, of was profitability XX, cash of short- from generated net up and XX% long-term million, cash for We as working debt million. year-over-year, flow capital December in our management. investments $XX and driven and million $XXX of operations improved $XXX revolver

$XX spent shares we year, on million on the at of and capital million During price an average X.X $XXX.X expenditures $XX.XX. repurchasing million

moving on year-over-year of Based a momentum, pipeline, basis, on XXXX. headwind XX% a our we on XX% XXXX exchange constant represents with and our billion revenue outlook to reported to basis currency a $X.XX million. visibility to foreign range strong XX% on in $X.XXX for and forecasted growth of anticipate This Now growth $XX the of XX% to current to billion. be

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

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

demonstrates we conclude, of position. proud financial XXXX, we performance competitive our in industry-leading our which unique To are delivered

remain indicators for a start leading solid setting to positive, Our up XXXX. us

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

Operator

first Instructions] Cowen. be [Operator from with question Bryan TD will Bergin Our

Bryan Bergin

I wanted to on outlook. growth ask XXXX the

any client macro changes made comment XQ? Maurizio, last in you've progressed heard volatility? the just but whether spending I'm you through just on you So year-to-date can how the pickup seen through as far amid indicators, February, there And sentiment comment curious, really as forward

Rohit Kapoor

Rohit. is this Bryan,

to us, So quarter for continue environment strong. we be that the as continues of into that see year. well. in leading this the fourth the year first We of demand to quarter saw the And

some continues IT out. AI, that towards shift of spending towards AI and data shifting the big to play and The

our to well. are capabilities, I into continues for to of think clients strengths plays demand workflow see AI develop we embed signals that. the looking on good that The and our and pipeline to and so kind us

good think progression. So all in a it's I all,

drive to business analytics For business, would that we picked XXXX, up continue the our seen growth through strong have and year. rate you in our also

standpoint. good from position in So an we and demand environment standpoint are feel execution from a we a

Bryan Bergin

Okay.

Okay. I the operating so That's clear. into dig My model want follow-up here, to change.

bit combo obviously what's of the And been is kind a ground? changes? You've but question, there So a structure. maybe, leadership on changing relevant of any executing structure existing give can the on well you and really sales

just a curious, in change avoid guardrails to of any I'm friction what model. place potential early So are in the just

market of may to in share AI how have Is and you And will structure going unpack the relative can may digital ops the You've the growth understanding digital various maybe change can reporting the way forward, business portion any been just 'XX talked about, there you ops remaining you in expected? growth in expect past the what the to data be units? and analytics. the grow 'XX across how obviously,

Rohit Kapoor

Sure.

we So change coming to with faster and wanted with ideas to to rapidly at very, business could lot and be all What can we're a ways of that growth fast we in and the also aware market technological objectives a clients pace. improve off, their first so some efficiency, priorities the do of closer listen come in very and operational be environment, to changing we experience. improve their drive is able customer up which to our

So the model. fundamental making for a us to our that's operating reason change

offer them have to and be is to deeper model relationships full allows of it pace. them, much allows the part much with our it us closer capabilities at engaged deploy number much do Our and customers be able of and one, them suite more and to able operating with capabilities; much be EXL second to things: X faster to the develop us new a get

of in are operating So the model. fundamental the those drivers change

that existing amongst we basically stride. good of The that our to leadership bench impact We reallocated in that not significant. talent, operating leadership portfolios have new fortunate leaders very is a model able and take this up got are the we've are

change the remain From delivery because much and essentially and service client the the a client perspective, executives same. not there's managers account the leaders

are lot groupings going to the different. However, a be

we to the the and as guidance in running And we bit business. the more share in talk will of Investor of on finally, and little the and new more as that then details our X, terms are growth how business. a detail our Day going well when of at meet reporting We're we managing May about segment

of And additional you so we time. hope to provide with color at that point

Operator

comes Our next from question Jefferies Surinder with Thind LLC.

Surinder Thind

say, start from Is part to more strategic perhaps that there's like bit a comment cycle. I'd Rohit, development on It like fair the of higher in a level, of the sounds technology question. that emphasis this rise differentiation IP commentary more seems a with the there's how point the at more this that the business let's pre-pandemic just earlier emphasis of point of that here. maybe was a there the or and days to conducted, cloud? It lot relative that's during of

Rohit Kapoor

right. absolutely you're Surinder,

going innovation going of assets I these The strong have critical. to importance. all of development data changes to think very IP we more a think to The a enabler. is becomes strategic value be is much place, taking very, with access

implement can there it shift position to that's workflow place be into it benefit our market our take it. able and So there, out want able so big is out and IP, a to that own taking to be to to develop we the clients ourselves from

is fundamental workflow. over enablement it's IT also place, shifting There into spend to to taking AI the is shift shifting over AI, is a that's which the and

weren't right. which that. position But participate addressing And broader to previously, ourselves and absolutely to that in want so you're we we on be TAM, able

of become attributes innovation development the going the critical growth-oriented sustainable to successful engine, are think all these of I and IP, companies.

Surinder Thind

is benefit a as then the are maybe Do an point? than AI And lifting the perhaps think helpful. allowing you of not spend there's from point It that's what of being like that fully lot seeing follow-up, that that are can industry should perspective it a just That's client's the that has challenges you a work clients overall into at the they developed. you're of readiness an from do some do what to seeing a related one maybe how infrastructure sounds guys more before you are from going about like competitors? AI guys of we maybe solutions of implementing bit this to same perspective, Or solutions -- you workflows at guys may been be level? part more heavy on

Rohit Kapoor

the client to is meaningful of And So that availability Surinder, legacy up AI Number two three data the is much platforms. of the more Number the leverage parts. way. we of can one into number would X infrastructure break a in technology shift so you cloud. our readiness at the is modernization organizations assets

benefit of AI requires these the X to that data that in help been that has are to order, data, lift. elements data which move of And in a us announced been the and cloud, are And X estate capability around able is Number change that and AI. usable and and platforms. just allows their our so unstructured clients more in be of all these be code. of use our Code think helping all stacks, capabilities models We invest software now some from for playing them a code our legacy forward. has AI, use management to some to piece clients the the conversion continuing it technology their was of put we Harbor, legacy to going helping then into heavy we modernize modern written therefore technology different particularly that missing, our We've two, the allow can which that much I leveraging able the make clients to data

Operator

with from Nolan Blair. question William next Maggie comes Our

Margaret Nolan

wanted ask maybe referred wanted try I think, accelerators Rohit, including to I to them to that. data I misheard But as correct to me about, XXX just you I or if assets, get relationships a them as well? sense customer across apply base, some and you've client able for larger of your to how widely particular, in used been those to if are your

Rohit Kapoor

Sure.

Maggie, one analytics to and using So analytics. advanced in of machine curve big we accelerators number learning these started way the had of ahead a we that the EXL is using of advantages build and that invested

these These we've -- are that tech accelerators with XXX the a clients. stack So deployed got actually modern is in all very got. all been we've that have

kind which So this certainty, are new a and need are with across workflow is practical that these of ability at all and on they applied an experimented situation, leverage gives been be out multiple implement that they've is execution ability We and to a in speed clients us the why high to tested not our with ideas find level. implement to AI such with.

is into new would a in it's the can that still we and that I of penetration XXX actually for of very us workflows. with say yesterday, still much and this of lot opportunity announced And this we the just of very, accelerators, much, leverage to in across with at this not speed EXLerate.AI terms all of to scale. client continue agile, our embed low, a application applied these platform flexible, clients, the so there's more

distinct a that us So here. gives advantage

Margaret Nolan

XXXX, sort and considering over give of margin and us And that level the can the maybe and at operating takes then Maurizio, the gross puts for course sense year? a margin of you're expectations, both you the for

Maurizio Nicolelli

look it's of that. Then by gross XX.X%. kind you you increased at if terms margins, when look XXXX gross terms higher we -- even than our versus at well look we basis margins. XXXX, been of you year, have at in at you the I mean XX look if our of When QX, to points the margin Maggie. increasing progression of doing Sure, gross in

But that's for be forward. going us going to critical

we're As we're need higher paid forward. more AI, really that and now, really we gross do that service driving value and more going for margins drive going to in investments to of our get

between us in gross you'll a quarters. the R&D -- will you'll be in what But margins of overall, gross basis. continue to need of choppy see spend of our development our increase. to increasing progression so now more still annual and solutions. an on see is comparison, And in XXXX bit annual that margins on higher We It investments

overall net So XXXX of the to the in you've AOPM year. to what to for in similar with margin basis be will all that XX point that seen continue XX increase our

Margaret Nolan

the to Congrats. growth. Very clear. see Great strong continued

Operator

question Our Puneet JPMorgan. from next with comes Jain

Puneet Jain

you when like bring the like the client, Rohit, all agent So ] their IT we clients, that they a why themselves, lot in-house [ operations. they investing hear are can't times in like a AI it to handle

deploy it it cannot that broadly, [ why your competitive like when these Or of at So any about can maybe implement of solution is ] you dynamics talk you clients? AI some solutions if symptoms? AI

Rohit Kapoor

Sure, Puneet.

couple there things organization. are a the our which is that of for So things that adoption deployed there important The in couple agents ensure from are of these And AI be adoption. these #X you our high lens, are of client a effectively agents. to really have are necessary issue to AI

one to very part Number on workflow, the quite agents agent workflow. our actually stand-alone And of an they the a is these They basis. low. into the AI unless be is become efficacy usefulness integral until and AI embedded the and of useless need are

necessarily adoption to to of to of agents data stitching and value thing, agents assets the our talk need create is increase together is that AI it. estate another the important clients. really is these be really, able to the two AI Number which And data and from

And client done hybrid then environment, the to in finally, this be which has a has.

use be whether the capability, they of kind have in to stitched an cloud or on-premise environment. that hybrid has So it they whether

struggle they actually they that something the and something these with but clients is only our which other Our has assets, and that's functional partners That's agents And therefore, combining with workflow adoption expertise AI higher. integrating of their data into the it that work struggle is with. agent, rate AI not much a doing which which capability, the with building themselves.

we We've spot sweet understand AI able that in embed workflow, to and over and what of their the with clients that's about data those clients our got workflow. assets then us. love they're models are that's into mastery where really helping we got our terms domain, expertise that why organize and we've deep understand in the the us, engaging being and fine-tune AI model We

Puneet Jain

So And I operating operations. Got makes your think about sense analytics new you is how provide capabilities rate model, are then services, within and some model, at those services analytics it in to accountability, of analytics financial to data should it. services services, stand-alone an to helpful. financial how clients? the think you same But going the like like very combine those AI the those to marketing That's there digital continue we with ensure that model? visibility on new grow in operating the

Rohit Kapoor

Sure.

firstly, right. So you're

analytics business the of on tightly that year, of business it that now really revenue. it part our the stand-alone analytics and we was serve million of where basis. largest And verticals is the one I therefore, has we're units And grown to think market. to become and last there as industry reporting is be clients. about the go a to we Our each $XXX that market we have have And with in of going industry integrated close segments

with quarterly on that's provide provide and We which you a you greater are basis. something transparency AI, going we data on to will and to

which believe capabilities. the we my in mature AI of data one data our prepared of XX%, end is that's said As something I at at the of and current XXXX levels and AI penetration of so most stands remarks,

that as more report stand-alone you as progression and is X, track which Investor our data that able AI to on be evolving metric into out unpack of of the how meaningful this the and of is that of AI for that this and basis. you'll are well. to get way a mind, some much a forays well this making and able are We're data as much to something in And complexity keep be our therefore, to capability. on going we in more business so terms May continue at And in Day this we will is confidence we the reporting quarterly

Operator

Jacob Packet ] question Baird. next [ Our comes from with

Unknown Analyst

acquisition just the and quantify you QX for really please? go you Could Could us, contribution? over expected quick, XXXX that

Maurizio Nicolelli

we repurchased overall we year, ITI basis, the of the quarter we basis. in during total on XX.X%. growth year, -- back overall you grew just a of grew the XX.X% at And XXXX. And So look on the if an growth third reported overall, organic

during around it's of contribution million So year. the right $X

Unknown Analyst

then dynamics just with wanted of verticals. on touch the And analytics the businesses kind across to the X

So looks Can kind nice of Analytics, some and acceleration, had in expect Healthcare into a it just Emerging happening that in if are you dynamics XXXX? to manner in like of the and there guys a but explain you similar Insurance. deceleration you it continue

Maurizio Nicolelli

growth currency it's The fairly XX%. XX% consistent on you is the basis, If and constant on embedded, basis. you a a look if rate, actually and year-over-year there variation only at currency Healthcare, look just the analytics constant between at Emerging just With Insurance is growth rates.

there the it's takes embed some still So and very analytics, it's here within puts each are but segments when of -- we overall. there and consistent

Rohit Kapoor

between just a is the the basis, the add on and X same But progression year-on-year much verticals. there is divergence that would Yes. a I would a there level. actually, be pretty variation, industry at basis, on quarter-on-quarter

Operator

Instructions] Our Grossman [Operator question Europe. David with next comes from Stifel

David Grossman

something provide Rohit, maybe point business is go of in of and terms could operating were you for on what just could kind it this more model that? offering make to back relationship level motivated it really really responsibility than managing the contact industry need an seeing maybe in you go you offering? to And detail the were of a change? Was the little What to Or more reasons? and change. you a that one the just entire service fundamental

Rohit Kapoor

David. Sure,

and capability, you at our we Insurance, horizontal look X Healthcare a were model which industry Emerging verticals: take analytics. business X So structured unit, operating was by our previously, if and

and verticals capability, X industry horizontal X had analytics. we So

And Now to to a way to development that only monitor business. able wanted really progression, it keep also -- to mature. we the revenue that full terms we the it but the was wanted and attention not wanted progression that got wanted develop that in the because team the We vertical. of of ensure of the margin be we analytics business of that to

that has million the -- said, I'm It's in have that I the board. offerings now the clients do significantly. marketplace. sorry, analytics thing -- the we service embedded cross-penetration and in business quite a operations, now believe We business digital our one across mature it's largest and most analytics with that kind clients of And we It's between powerful of vertical of unit. unit And single the $XXX analytics like the revenue. is every increased

we much to be clients to us able it be be found forward, to on much and closer our focus in better Going for to them.

to sure the start a also markets make We space attention additional that wanted we on to in are give and to focus on. international start that

expanded priority something drive are an XX%. That growth that in markets us in international increased for up of has You forward, and which important the seen for us. would XXXX, have to revenue. is XX% 'XX, has going And international over to X the penetration for contributed going it to believe becomes to we in it 'XX. continue that markets last XX% took We years. us, I the our about

International Markets it's a Industries of kind it's new got the Insurance, model now want special got Diversified of attention Capital and and the pay that Markets got have So Healthcare, we Growth where all got then it's has we and to. to operating Banking together,

the can So in a of to manage that closer this be way to our business us we customers. allows kind

that place. focus And more on every avail We ours have service can all single offerings in client we've the of it. then got much

will penetration We is management integrated data able combine be low, very to solutions, AI more we that that and services, AI can cross-sell particularly ability bundle helpful this we important, much that capabilities the can of platforms, analytics for handle we of stack are operations, clients. together seeing capabilities, all domain believe our deals cross-sell. be motions and our our our and and two, Number one already become services, X number trend, the help to is client it that therefore, in. still And services cross-sell think And fundamental base. as that into go-to-market will we same

operating go So as are pronounced these much X become motions in forward new we go-to-market have model. the more

David Grossman

other question. There Okay. Got it. was one

I question. think previous in have come it a may up

impact you've AI that time, do use migrate -- kind use is cases using that You've of other the talked modern think And impacting customers' historically backdrop, pervasive could of what is you you on margins already how your offering? is what seeing delivery revenue conversion, And that? how us if beyond that's for code. to I'm service the on Gen as to your to convert of talked in wondering you about capabilities to or service of growth? delivery legacy the code this update over have applications just your what about more as are going just your And automation AI in historically well

Rohit Kapoor

Sure.

as there X look, stated capability we fundamental there we a Code and conversion got AI. So are Gen previously, code areas are we've One leveraging where is Harbor. called

and third streamline content customer data to able be it the and customer our bring in second ability provide greater around automated create service, the data to workflow unstructured efficiency into value. pull additional is extraction and and ability and create The is service. And the around to

a and code. we modern focus allows be I'll more on our to have, day code the to us to which So use Gen solution AI clients' modernize legacy able that legacy Code Harbor little bit into platforms

for think clients is useful as python is or a their example to convert much modern-day about more prime them. flexible -- models newer and functionally code into more wanting SaaS that much it So

would In and different code Python. be and elements. convert it able into chunking into taken Today, break that of to a months we the have able are that years the code to create past, of to man SaaS a number us

to to able actually means. what document are code then we able And Gen it, are in the using a convert very efficient format. We again, AI

are We've brings got number So significantly. and in conversion it a is code their them on what factory, moving modernize code our able code with kind to with new a the conversion are very rapidly. does this and their get business them And cost that models, frame of this And that very, chosen time clients of therefore, the clients on this partner we very very a have and quick embracing conversion it code to we very platforms. us time very, this. down forward because help understand we're of familiar to

little I of bit in helpful terms that's the understanding. a So hope

AI going Harbor our We that March showcasing we part are X have. Code webinar to as be Action of in

provide additional that will So color on as that well.

David Grossman

But and from these growth a margin? perspective, a or revenue financial whether a Yes. it's to just elements, headwind X Rohit, we how should tailwind about think and

Rohit Kapoor

And and or a the are be customer work turning a limited not is piece a us, a opportunity part actually clients. on It a journey finding complete much of we task. can is is to process we and bigger what a full deal. integrated for that at the process therefore, actually of it's out work to because our tailwind a Well,

because had the typically two, we're in of capability, wouldn't client past. this to organization number a that initiatives the we have at access Number we have getting different

and now our only CDO have lastly, centers Previously, the we the directly worked would buying with And with on also and us have CIO engaged expanded the this. are COO.

it expands it in operations size which our growing engagement, a is very nicely. expands of and growth rate can And TAM, the the grew digital see tailwind. you So in at the And growth, revenue it is QX, the of it XX%. that actually

nice that's for us. So very, very been a uptick

Operator

this closing We have call no I time. to remarks. for back further will turn at the John Kristoff questions

John Kristoff

directly. additional please us like to this everyone always, as I'd reach Thank And for to questions, thank joining you. out free morning. me Yes. feel to for

ExlService (EXLS) 26 Feb 252024 Q4 Earnings call transcript