ExlService Holdings, Inc.

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, and then you will hear an automated message advising your hand is raised. To withdraw your question, press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our speaker today, John Kristof, Vice President of Investor Relations. The floor is yours, John.

Thank you, Gerald. Hello, and thank you for joining EXL's 2022 fourth quarter and year-end financial results conference call. On the call with me today are Rohit Kapoor, Vice Chairman and Chief Executive Officer, and Marietta Nicolelli, Chief Financial Officer. We hope that you've had an opportunity to review the fourth quarter earnings release we issued this morning. We have also posted an earnings slide deck and investor fact sheets in the investor section of EXL's website. As a reminder, some of the information we'll discuss this morning is 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, reports, or other documents filed with the FCC from time to time. EXL assumes no obligation to update the information presented on this conference call today. During our call, we may reference certain non-GAAP financial measures, which we believe provide useful information for investors. Reconciliation of those measures to GAAP can be found in our press release, slide deck, and investor fact sheet. With that, I'll now turn the call over to Rohit. Thanks, John.

Good morning, everyone. Welcome to the EXL fourth quarter and 2022 year-end earnings call. I'm pleased to be with you this morning reporting another great quarter. We finished the year strong with great momentum as we enter 2023. Our fourth quarter revenue was $375 million an increase of 27% year-over-year and 29% on a constant currency basis. And we grew fourth quarter adjusted EPS 29% to $1.56 per share. We generated strong growth across both analytics and digital operations and solutions. In analytics, we delivered revenue of $171 million for the quarter, up 3% sequentially and 35% year-over-year. For the full year, our analytics business grew 41% and now represents 46% of our total revenue. Our digital operations and solutions business generated revenue of $204 million, with year-over-year growth accelerating to 21% in the quarter and nearly 5% sequentially from the third quarter. This growth was driven by 23% year-over-year growth in our insurance business and 31% year-over-year growth in our emerging business. Our growth was fueled by an expansion of existing client relationships and new client wins in 22. These impressive results demonstrate that EXL has created two strong growth engines by leveraging data across both our analytics and digital operations and solutions businesses. This focus on data-led digital transformation coupled with our strong domain expertise in key industries, is positioning us well for the future. Our data-led strategy is helping our clients use data to improve their operations through digital transformation, enable better decisions through advanced analytics, and embed intelligence in their workflows to increase speed to insights and outcomes. EXL is using data to connect back office operations with front end customer platforms to remove friction points and latencies. We generate value for our clients by enabling savings through operational efficiency and business insights to offer a faster, more engaged customer experience. Our mastery of data combined with our technical expertise and deep domain knowledge enables us to develop industry-specific AI use cases and sets us apart from our competitors. These capabilities and skills have been built over a long period of time and are difficult to replicate, providing us with a sustainable competitive advantage. Our data-led strategy has also significantly expanded our total addressable market across four dimensions. First, we are going deeper into our core industry verticals. For example, in insurance, we historically focused on property and casualty and life and annuity clients. Today, we are winning new logos in reinsurance, brokerage, third-party administrators, and retirement and group benefits. And we continue to expand our geographic reach. Second, we are also finding success beyond our traditional markets of insurance, banking, and healthcare into adjacent industries. While we have been quite successful in doing this, we are just scratching the surface with an enormous amount of runway for growth in the coming years. An illustration of the growth potential is the 35% full-year revenue growth we delivered in our emerging business on an organic constant currency basis in 2022. Third, we are pursuing new opportunities across buying centers within our existing client base. In the past, our primary focus was on the chief operating officer and chief financial officer. Today, we work with the chief information officer, chief data officer, chief analytics officer, chief marketing officer, chief risk officer, and others across the C-suite. Finally, we have expanded our scope of solutions and moved upstream with our competencies. We are now operating end-to-end and taking on the entire process opposed to just a portion of work within the process in other words we have the ability to do larger deals across an enterprise work with larger clients and grow our business this also allows us to deliver better business outcomes to our clients I'd like to share a few examples of that exemplify how our data-led strategy and digital capabilities uniquely position EXL to win in the marketplace. We began our multi-year digital transformation journey with one of the largest multinational brokerage firms in the world with a presence in over 100 countries. We are helping them achieve their goals of driving efficiency while at the same time redesigning and improving their processes to enhance the customer experience. We are doing this by using AI-powered data extraction and analytic solutions to better understand the customer journey and identify friction points where internal workflows and end customer experience can be improved. This work is being rolled out enterprise-wide and will be the foundation for digital centers of excellence to accelerate quantum improvements to their business models. Another example is with one of the top five disability insurers in the US. They operate a large disability intake contact center and wanted to improve efficiency and elevate customer experience. We deployed a conversational AI solution on top of their existing technology stack with 100% of integrated disability claims intake going through our system as the first touchpoint. This enabled instant extraction and analysis of unstructured claims data for straight-through processing of past and routine claims. Through this large-scale deployment, we were able to improve intake efficiency by 20%. Based on the results of this initiative, the client awarded us downstream processes to transform the end-to-end claims experience for the customer. This is a good illustration of the tangible value we deliver to our clients and how that often leads to expansion of scope. These are just two examples of how our data-led strategy are helping us win in the marketplace. eXcel has emerged as a strategic partner to drive large-scale end-to-end digital transformation, which are increasing in frequency and complexity across our client base. In addition to having a successful strategy, we continue to deliver on execution as well. I want to recognize our people who have brought our data-led vision to life. We recruit and develop the best talent in the industry and this continues to help fuel our growth. The combination of interesting work and attractive growth opportunities has led to EXL becoming an employer of choice. I want to thank our global team of more than 45,000 employees for their hard work and relentless pursuit of delivering value to our clients. I am incredibly proud of our employees and feel fortunate to be part of this team. As we look to 2023, we have solid momentum with the new wins and large deals, as well as a robust pipeline of opportunities. Mauricio will review the specifics of our 2023 guidance, but I wanted to provide some color on the general demand environment. We continue to see strong demand in our analytics business and our overall view has not materially changed from the third quarter. Our clients view their analytics function as a significant driver of growth, profitability, and differentiation and continue to invest in analytics in leveraging these capabilities. In digital operations and solutions, We are seeing steady demand as more clients focus on digital transformation and cost reduction. Deal sizes in our pipeline have been increasing. One of the macro demand trends we are beginning to see is clients shifting towards integrating analytics and digital operations to gain greater value and drive more accountability with their partners. This plays extremely well to our strengths and in the adoption of our unique business model. In summary, our data-led strategy is working. We delivered exceptional financial results in 2022, and we are well positioned for 2023 and beyond. We have sustainable growth fundamentals with a large and growing total addressable market, and we operate in a very resilient industry. We remain confident in our ability to deliver double-digit revenue and EPS growth in 2023. Our confidence is rooted in EXL's winning strategy, unique data capabilities, competitive positioning, and our exceptionally talented and dedicated team. With that, I'll turn it over to Mauricio to cover our financial performance in detail.