EXL Reports Strong Q1 2025 Results with 53% Revenue from AI Services, Launches EXLerate.ai Platform

EXL Posts $501 Million in Q1 2025 Revenue, 53% from AI Services | AIM

The company also launched EXLerate.ai, an agentic AI platform featuring over 15 industry-specific agents already deployed across verticals. EXL, a global data and AI company, reported strong first-quarter results for fiscal 2025, with revenue climbing to $501.0 million, a 14.8% increase from Q1 2024, and a 4.1% increase from $481.4 million in the last quarter. It added 10 new clients during the quarter. Operating income margin improved to 15.7%, up from 14.1% a year ago. Adjusted operating income margin also rose to 20.1%, compared to 18.9% in Q1 2024. The adjusted operating income roughly stood at $100 million. The company also launched EXLerate.ai, an agentic AI platform featuring over 15 industry-specific agents already deployed across verticals. Chairman and CEO Rohit Kapoor, in a LinkedIn post, said that the results reflect the "successful execution of our differentiated data and AI-led strategy and demonstrate the enduring resilience and adaptability of EXL's business model." He added that over 53% of the company's total revenue in Q1 came from data and AI-led services, a segment that grew 16% year-over-year. "We are confident in our growing capabilities to provide unmatched data and AI services and solutions to reinvent client business models, drive better outcomes, and unlock growth with speed," Kapoor noted. The CEO also highlighted EXL's continued investment in talent development. Nearly 1,000 employees completed certifications from leading partners such as Microsoft, AWS, Google, NVIDIA, Databricks, and Snowflake, with an additional 1,000 employees currently undergoing further upskilling efforts. EXL raised its full-year 2025 revenue guidance to a range of $2.035 billion to $2.065 billion, up from its earlier projection of $2.025 billion to $2.060 billion. This represents a11% to 12% year-over-year growth on a reported basis, or 11% to 13% in constant currency. CFO Maurizio Nicolelli in the press release emphasised the company's cautious optimism in light of macroeconomic uncertainties. However, he announced an increase in the company's full-year revenue guidance, citing current momentum and favorable currency conditions. "We remain prudent in our outlook given macroeconomic uncertainty, but our business momentum and favourable currency trends allow us to raise our revenue guidance," Nicolelli said.

Exlservice raises 2025 revenue guidance to $2.035B-$2.065B amid AI-driven growth (NASDAQ:EXLS)

CEO Rohit Kapoor highlighted a strong start to the year with Q1 revenue of $501 million, reflecting 15% year-over-year growth. Adjusted EPS for the quarter increased 27% to $0.48 per share. Kapoor emphasized the company's momentum across Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts here. The earnings call insights are intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.

ExlService Q1 2025 slides: revenue up 15%, Data and AI services exceed 50% By Investing.com

ExlService Holdings Inc. (NASDAQ:EXLS) presented its first quarter 2025 financial results on April 29, 2025, revealing continued strong performance with revenue growth of 14.8% year-over-year. The company's strategic focus on data and artificial intelligence services is yielding results, with these offerings now representing over half of the company's revenue. EXLS shares were up 1.17% in regular trading and gained an additional 0.93% in premarket activity following the presentation. The company's performance continues the positive momentum seen in previous quarters, with Q1 marking the fifth consecutive quarter of accelerating growth. This comes as ExlService successfully navigates the increasing demand for AI-powered business solutions across its key industry verticals. Quarterly Performance Highlights ExlService reported total revenue of $501 million for Q1 FY25, representing a 14.8% increase year-over-year on a reported basis and 15.1% growth in constant currency. The company achieved an adjusted operating margin of 20.1%, expanding 120 basis points compared to the same period last year. Adjusted diluted earnings per share reached $0.48, growing 26.9% year-over-year. As shown in the following comprehensive performance overview: The company's performance was driven by strong results across all segments, with Healthcare and Life Sciences showing particularly robust growth at 24.8% year-over-year. Insurance remains the largest segment at 34.3% of total revenue, while Banking, Capital Markets and Diversified Industries and International Growth Markets contributed 23.5% and 17.1% respectively. EXLS added 10 new clients during the quarter and increased its total employee count to 60,652, representing an addition of 1,100 employees since Q4 2024. The company reported an attrition rate of 22.4% for the quarter. Segment and Service Type Analysis ExlService has reorganized its reporting segments to better align with its strategic focus areas. The new structure provides greater transparency into performance across key industry verticals and geographic markets. The following slide illustrates the distribution of revenue by service type and geographic market: A significant milestone for the company is that Data and AI-Led services now account for 53.5% of total revenue ($267.9 million), growing at 16% year-over-year. Digital Operations services represent the remaining 46.5% ($233.1 million) and grew at 14.2%. This shift highlights the company's successful transformation into a data and AI-focused enterprise. From a geographic perspective, North America continues to be the dominant market, representing 82.9% of revenue, followed by the United Kingdom (TADAWUL:4280) & Europe at 15.1% and Rest of the World at 2.0%. To provide context for the new reporting segments, the company included a comparison with the previous year's revenue under the new format: Growth Trends and Guidance ExlService has demonstrated consistent revenue and earnings growth over the past five quarters, as illustrated in the following chart: The quarterly trend shows revenue growing from $436.5 million in Q1 2024 to $501 million in Q1 2025, with year-over-year growth rates increasing from 8.8% to 15.1% in constant currency. Similarly, adjusted diluted EPS has risen from $0.38 to $0.48 over the same period, with growth accelerating from 8.9% to 26.9%. Based on this strong performance, ExlService has raised its 2025 revenue guidance while maintaining its earnings outlook: The company now expects full-year 2025 revenue to be between $2,035 million and $2,065 million, representing growth of 11-13% in constant currency. This is an increase from the previous guidance of $2,025-$2,060 million provided in February 2025. The adjusted diluted EPS guidance remains unchanged at $1.83-$1.89, representing growth of 11-14% year-over-year. Strategic Positioning ExlService's reorganization of reporting segments reflects its strategic evolution and focus on industry-specific solutions. The company has transitioned from its previous segment structure to a more market-aligned approach, as shown in the following diagram: This reorganization allows for better alignment with client needs and market opportunities across key verticals. The strong performance in Healthcare & Life Sciences (24.8% growth) and Banking, Capital Markets & Diversified Industries (14.3% growth) demonstrates the effectiveness of this strategic approach. The company's focus on Data and AI-Led services is paying dividends, with these higher-margin offerings now representing the majority of revenue. This aligns with comments from previous earnings calls where CEO Rohit Kapoor emphasized that "Data and AI are at the core of our business" and that the "fusion of domain, data, and AI expertise is our core competitive differentiator." With strong Q1 results, increased revenue guidance, and continued momentum in high-growth service areas, ExlService appears well-positioned to maintain its growth trajectory throughout 2025. The company's strategic focus on data and AI capabilities, combined with its industry-specific expertise, provides a solid foundation for continued success in an increasingly digital and AI-driven business environment. Full presentation: