ExlService Q4 earnings beat, but guidance disappoints; Shares fall

Published 25/02/2025, 23:24
ExlService Q4 earnings beat, but guidance disappoints; Shares fall

NEW YORK - ExlService Holdings, Inc. (NASDAQ:EXLS) reported fourth quarter earnings that beat analyst expectations, but provided disappointing guidance for 2025, sending shares down 4.2% in aftermarket trading Tuesday.

The global data and AI company posted adjusted earnings per share of $0.44, surpassing the analyst consensus of $0.42. Revenue for the quarter came in at $481.4 million, up 16.3% YoY and above estimates of $475.91 million.

"As we executed our data and AI strategy in 2024, we achieved several key milestones, including launching an enterprise AI platform in partnership with NVIDIA (NASDAQ:NVDA)," said Rohit Kapoor, chairman and CEO of ExlService.

However, the company’s outlook for 2025 fell short of expectations. ExlService forecasts full-year 2025 adjusted earnings per share of $1.83 to $1.89, below the consensus estimate of $1.89. Revenue is projected to be between $2.025 billion and $2.060 billion, with the midpoint slightly below analysts’ expectations of $2.06 billion.

The disappointing guidance overshadowed the strong Q4 results, leading to the stock’s decline. ExlService’s shares fell 4.2% following the earnings release, indicating investors’ concerns about the company’s growth prospects for the coming year.

For the full year 2024, ExlService reported revenue of $1.84 billion, up 12.7% YoY, and adjusted earnings per share of $1.65, a 15.4% increase from 2023.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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