ExlService Holdings, Inc. reported significant financial growth for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenues for Q3 2024 reached $472.1 million, marking a 14.9% increase from $410.9 million in Q3 2023. For the nine-month period, revenues totaled $1.36 billion, up 11.5% from $1.22 billion in the prior year. The growth was driven by strong performance across various segments, particularly in Insurance, Analytics, and Emerging Business, with notable contributions from new and existing clients.
Gross profit for Q3 2024 was $178.3 million, representing 37.8% of revenues, compared to $155.0 million (37.7% of revenues) in Q3 2023. Income from operations also increased to $69.4 million (14.7% of revenues) from $60.2 million (14.7% of revenues) in the previous year. Net income for Q3 2024 rose to $53.0 million, a 20.9% increase from $43.9 million in Q3 2023. For the nine months, net income was $147.6 million, up from $144.3 million, reflecting a 2.3% increase.
The company’s strategic developments included the acquisition of ITI Data on August 1, 2024, which is expected to enhance ExlService's capabilities in data management solutions for clients in banking, financial services, and healthcare. The acquisition cost was $26 million, with potential earn-outs based on performance metrics. This acquisition aligns with ExlService's focus on leveraging data and AI to drive innovation and value for clients.
Financially, ExlService's total assets increased to $1.61 billion as of September 30, 2024, up from $1.44 billion at the end of 2023. Cash and cash equivalents rose to $150.1 million, while short-term investments increased to $175.6 million. Total liabilities also grew to $702.3 million, up from $552.5 million, primarily due to increased borrowings. The company reported total stockholders' equity of $907.6 million, an increase from $889.4 million.
Operating expenses for the nine months ended September 30, 2024, were $315.2 million, up from $271.4 million in the previous year, driven by higher employee-related costs and investments in digital capabilities. The effective tax rate for Q3 2024 decreased to 22.6% from 24.4% in Q3 2023, while the nine-month effective tax rate increased to 22.6% from 20.8%.
Overall, ExlService's performance reflects robust revenue growth, strategic acquisitions, and a focus on enhancing operational efficiencies, despite rising costs and increased liabilities.
About ExlService Holdings, Inc.
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