ExlService Holdings, Inc.

Good day and thank you for standing by. Welcome to the EXL Service Holdings Conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Stephen Barlow, Vice President, Investor Relations. Please go ahead.

Thank you, Kirk. Good morning, everyone. Thank you for joining AXL's third quarter and third quarter 2022 financial results conference call. I'm Steve 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 E-Excel'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 that differ maturely 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?

Thank you, Steve. 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%. In the current macroeconomic environment, our clients are facing heightened volatility and uncertainty, and they are looking to streamline operations, reduce costs, and improve end customer experience. In this environment, our business model has become even more relevant and strategically important for our clients. We have all the tools necessary to drive this transformation. By harnessing data, we are helping our clients make better business decisions, embed intelligence in the workflow, and streamline operations. We are doing this with tremendous speed to create an immediate impact both in terms of cost containment and improved customer experience. I would like to share a few examples of recent client engagements that help to illustrate how we are rapidly scaling solutions to help our clients reduce costs and improve customer engagement. We recently developed a powerful solution with a major UK-based utility that completely transformed their customer service engagement. By analyzing unstructured customer interaction data, we were able to immediately identify disconnects between the back office and the front office that were driving operational inefficiencies and creating a poor user experience. Our data-led approach to finding and closing those gaps resulted in reducing the number of manual handoffs and eliminated error-prone processes that were causing the problems. We also introduced a conversational AI solution that helped cut customer service processing times and created a more seamless and engaging user experience. In another example, We have been collaborating with a large US-based multi-line insurance carrier to expand its life insurance distribution network. By capturing a wide range of traditional and non-traditional data sets, we've been able to create a true 360-degree view of the customer journey. This detailed customer view is then used to optimize cross-sell and up-sell opportunities matching the right agent with the right customer at the right time. The end result is a more targeted, efficient sales channel that can offer more personalized policies to customers. We have also launched a new risk decisioning engagement with a major multinational bank. This is a new key logo for us, which leverages our robust risk modeling capabilities and our deep operational expertise in the banking industry. The goal of this initiative is to develop an advanced credit risk strategy that supports smarter decisions for unsecured lending products. Here again, we are deploying our data-led strategy to streamline operations on the credit decisioning side while improving customer experience in the form of real-time lending approvals. This combination has become incredibly valuable in the current market environment. Now I would like to talk about our talent and employee engagement. We continue to expand our talent base to stay ahead of growing demand, particularly in the areas of analytics and digital. Year to date, we have added 5,700 employees to our workforce. That's more than we added in the entire year of 2021. Much of that talent acquisition has been focused on complex and in-demand capabilities such as data engineering, data science, AI, and cloud. In light of our data-led business strategy, We acquired talent that excels at the intersection of data and domain. We have also been successful in building a strong internal talent base through a well-planned strategy of digitally driven learning and development. Employee engagement with our on-demand learning platforms is very high. Approximately 71% of our employee population has regular engagement with our learning platform. About 2,800 employees have earned new certifications on the learning platform in the third quarter alone. We continue to invest heavily in creating the resources our employees need to thrive and grow at eXcel and as professionals. Our company-wide employee attrition rate has now stabilized to our pre-pandemic levels. Our employee retention rate in analytics has consistently been encouraging in a high demand talent market environment. We therefore believe EXL continues to remain an attractive destination for quality talent. Our pipeline of opportunities is strong with numerous large deals with strategic clients in analytics and digital operations and solutions. We have also added 40 new logos year-to-date across all business lines. Going forward, I remain optimistic about our continued growth prospects. Before I turn the call over to Maurizio, I wanted to remind you that we are hosting an in-person Investor and Analyst Day on the morning of November 16th at 320 Park Avenue. We look forward to sharing our updated strategic vision for growth with you. With that, I'll hand over the call to Mauricio.