Data analytics expert EXL sees 2023 sales at $2.4 billion

Nasdaq-listed EXL expects revenue to rise as much as 13% to $US1.6 billion ($2.38 billion) this year after sales jumped by more than a quarter to $US374.7 million (558.19 million) in the fourth quarter.

Data analytics and digital solutions expert EXL says it won 59 new clients in 2022 – 31 in its digital operations and solutions business and 28 in analytics.

It highlighted growth in Asia Pacific and a focus on data-led solutions across insurance clients, and announced an alliance with EY to support digital transformation initiatives in insurance, financial services and health care sectors.

“We ended the year strong,” CEO and Vice Chairman Rohit Kapoor said. “Our data-led approach has differentiated us within our industry and expanded our total addressable market.

“As we look to 2023, EXL is well positioned with a strong pipeline, differentiated solutions and a growing base of client relationships across industry verticals.”

“Our proprietary data assets, digital solutions and domain and data expertise, combined with our best-in-class talent, creates value for our clients. This is reflected in the continued growth of our analytics business and the acceleration of growth in our digital operations and solutions business,” Mr Kapoor said.

EXL extracts insights and formulates strategy from the data of its customers, guiding insurers how best to triage claims. The TPA is now confidently expanding its Australian market offer, broadening its focus to life insurance and broker networks after initially concentrating on serving general insurers.

After coming to Australia six years ago, it has grown to be EXL’s fastest growing geography in the last five years, and Head of Life Insurance Andy Logani recently told insuranceNEWS.com.au during a visit from New York it would become “five times the business it is today” in coming years.

EXL, which already counts four top general insurers in Australia as clients, has 18,000 global staff supporting its insurance division – which makes up almost two thirds of its sales – and around 750 clients globally. Mr Kapoor visited Australia from the US in November after the leadership team recognised “immense opportunity”.

CFO Maurizio Nicolelli says EXL ended 2022 with “strong momentum”.

“We are mindful of the potential for recessionary headwinds later in the year but continue to believe we will deliver double-digit revenue and EPS growth in 2023,” he said.