ExlService Holdings, Inc. (NASDAQ:EXLS) Q3 2022 Earnings Conference Call October 27, 2022 10:00 AM ET

Company Participants

Steve Barlow - Vice President of Investor Relations

Rohit Kapoor - Vice Chairman & Chief Executive Officer

Maurizio Nicolelli - Executive Vice President & Chief Financial Officer

Conference Call Participants

Bryan Bergin - Cowen & Company

Puneet Jain - JPMorgan

Moshe Katri - Wedbush Securities

Kate Kronstein - William Blair

Vincent Colicchio - Barrington Research

Robby Bamberger - Robert W. Baird

Operator

Good day and thank you for standing by. Welcome to the ExlService Holdings 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, Steven Barlow, Vice President, Investor Relations. Please go ahead.

Steve Barlow

Thank you, Kurt. Good morning, everyone. Thank you for joining EXL's Third Quarter 2022 Financial Results Conference Call. I'm Steven Barlow. On the call today are Rohit Kapoor, our Vice Chairman and Chief Executive Officer; and Maurizio Nicolelli, our Chief Financial Officer. We hope you've had an opportunity to review our Q3 2022 earnings release we issued this morning. We have also updated our investor fact sheet in the Investor Relations section of EXL's website.

As you know, some of the matters we'll discuss in this call are forward-looking. Please keep in mind that these forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include but are not limited to, general economic conditions, those factors set forth in today's press release, discussed in the company's periodic reports and other documents filed with the Securities and Exchange Commission from time to time. EXL assumes no obligation to update the information presented on this call. During the call today, we may reference certain non-GAAP financial measures which we believe provide useful information for investors. Reconciliation of these measures to GAAP can be found in our press release as well as on the investor fact sheet.

I’ll now turn the call over to Rohit Kapoor, EXL’s Chief Executive Officer. Rohit?

Rohit Kapoor

Thank you, Steven. Good morning, everyone. Welcome to our Q3 2022 earnings call. I hope all of you are doing well.

Following our strong performance in the first half of 2022, I am pleased to report another great quarter in Q3. Our third quarter revenue was $361.4 million, up 4.2% from Q2 and up 24.5% year-over-year. For the quarter, adjusted EPS was $1.54 per share which is up 18.5% year-over-year. Our Analytics business continues to drive revenue growth, generating $166.3 million in revenue for the quarter, up 3.1% sequentially and 38% year-over-year. For the first nine months of 2022, our Analytics business grew 42.6% year-over-year. Analytics now accounts for 46% of our total revenue. Our Digital Operations and Solutions business also had strong growth, growing at 14.8% in the third quarter to $195.1 million on a reported basis. For the first nine months of 2022, Digital Operations and Solutions revenue increased 13.8% year-on-year which is faster than our expectations. The third quarter growth in our Digital Operations and Solutions business was due to strong double-digit revenue growth in our insurance business which grew 18.6% year-over-year and our Emerging Business which generated year-over-year growth of 25.9%.