Good day, and thank you for standing by. Welcome to the Second Quarter 2024 ExlService Holdings, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker for today, John Kristoff, VP of Investor Relations. John, please go ahead.

Thanks, Felicia. Hello, and thank you for joining EXL's second quarter 2024 financial results conference call. On the call with me today are Rohit Kapoor, Chairman and Chief Executive Officer; and Maurizio Nicolelli, Chief Financial Officer. We hope you've had an opportunity to review the second quarter earnings release we issued this morning. We also have posted an earnings release slide deck and investor factsheet in the Investor Relations' section of our website. As a reminder, some of the matters we'll discuss this morning 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 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 discussed in the company's periodic reports and other documents filed with the SEC 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 these measures to GAAP can be found in our press release, slide deck and investor fact sheet. And with that, I'll turn the call over to Rohit.

Thanks, John. Good morning, everyone. Welcome to EXL's second quarter 2024 earnings call. I'm pleased to be with you this morning sharing our strong financial results. In the second quarter, we generated revenue of $448 million, an increase of 11% year-over-year. We also grew second quarter adjusted EPS by 11% to $0.40 per share. The execution of our data and AI-led strategy enabled us to accelerate our growth momentum across both our Analytics and Digital Operations and Solutions businesses during the quarter. In Analytics, we delivered revenue of $194 million for the quarter, up 2% sequentially and 6% year-over-year, driven by strong double-digit growth in healthcare payment services and data management. I am pleased to share that this marks the second consecutive quarter of sequential growth for Analytics, which positions us well to accelerate our growth rate in the second half of the year. Data management continues to be a major focus area for EXL and for our clients on their AI journey. The ability to generate insights and outcomes using AI hinges on accessible quality data, both structured and unstructured. In line with our strategy, I'm thrilled to announce our acquisition of ITI Data, a leading information and data management company serving the world's largest banks, financial services and healthcare firms. This acquisition not only bolsters our data management capabilities but also greatly complements EXL's existing vertical markets, expanding our data and AI partner ecosystem and growing our geographic and global 1,000 client footprint. This acquisition is an example of our commitment to further enhance our competitive differentiation by acquiring wider skill sets and deeper expertise in data management, as we strengthen our position as a data and AI-led company. In our Digital Operations and Solutions business during the second quarter, we once again delivered strong double-digit growth as we leverage our domain data and AI capabilities to win in the market. We grew revenue 4% sequentially and 14% year-over-year to $255 million. This acceleration of growth was driven by our insurance and emerging business segments, which grew 16% and 15% respectively. Our clients continue to focus on cost efficiency and digital transformation, creating a favorable demand environment for us. Last month marked EXL's 25th anniversary, and we commemorated the milestone by ringing the opening bell on NASDAQ. As I reflect on our journey over the past 2.5 decades, our transformation from a traditional outsourcing company to a recognized leader in data and AI has been truly remarkable and stands out. Our strategic decisions to make timely pivots and evolve into a data and AI-led company have contributed to our industry-leading growth rates. More importantly, we have positioned EXL for success in the rapidly evolving and expanding AI era. As we shared in our Investor Strategy Update Event in May, AI has changed the business transformation landscape from one that was historically technology-led to one that is now increasingly domain and data-led. This plays to our core strengths in domain expertise, data mastery, and AI implementation capabilities. It has significantly expanded our total addressable market and accelerated our growth rates. Data and AI-led revenue now accounts for more than half of the company's total revenue, and we anticipate that percentage to grow over time. We recently announced a strategic collaboration with NVIDIA to create enterprise-wide data and AI applications for insurance, healthcare, banking, retail, and other industries. EXL's adoption of advanced AI technologies powered by NVIDIA AI helps our clients with fast and scalable AI in complex enterprise production environments. As a leader in helping clients redesign customer journeys and reinvent business models by integrating data, analytics, and AI directly into critical workflows, EXL will play a pivotal role in fine-tuning and applying the NVIDIA AI platform to highly specialized use cases. I am happy to share that our first insurance-specific LLM, which has been fine-tuned on 2 billion tokens curated from insurance domain data, is now production-ready. Our fine-tuned model outperforms several foundational models such as GPT-4, Claude Sonnet, and Llama 3, 70 billion on insurance-specific tasks in the medical claims space. We leveraged several proprietary data pre-processing and fine-tuning techniques in close collaboration with NVIDIA's engineering teams to achieve this outcome. Given our success, we will continue to create additional domain-specific LLMs across our chosen industries. Our growing ability to tangibly improve our clients' businesses through domain, data, and AI is reflected in the continued strength of our sales pipeline. We are particularly encouraged by the year-over-year growth we have experienced in the data and AI portion of our pipeline. Let me share a couple of recent examples of how we are harnessing our differentiated capabilities to deliver meaningful value for our clients. We partnered with a global personal and commercial lines insurer to help them improve underwriter utilization and drive higher premium growth. As part of the engagement, we deployed our SaaS-based underwriting solution on our proprietary AI platform. This included our patented GenAI-based XTRAKTO.AI solution for structured and unstructured data processing and advanced scoring engine to generate a risk score for all incoming leads and automated decision-making algorithms. The whole underwriting process now just takes a few hours, where it used to take multiple days. This solution not only improves our client quote to policy conversion, but it also helps them improve the broker experience and drives better underwriter productivity and higher premium growth. This is a great example of how EXL is combining our insurance domain expertise along with our data and AI solutions to help our clients transform their operating model. In another example, we have been working with a Fortune 50 consumer goods company to help them solve challenges in their rapidly growing e-commerce business. They were experiencing a surge in data volume, which had strained their internal resources, resulting in frequent data pipeline failures and unreliable data quality. Leveraging our data engineering experience and capabilities, we helped the client streamline data flow and improve data quality. This included combining data in various disparate formats across supply chain, marketing, and sales into a comprehensive data warehouse. We also optimized their data extraction algorithms and developed various actionable executive dashboards, empowering leaders to make informed decisions faster. This resulted in a reduction in pipeline failures of approximately 95% with consistent data availability and smooth processing. In addition, we were able to reduce their computing costs related to extracting, transforming, and loading data for those pipelines by over a third. These impressive results demonstrate our ability to leverage our deep data management capabilities to become the data and AI partner of choice for some of the largest companies in the world. We continue to see growing opportunities in data management and engineering, as more clients focus on complex foundational work necessary to prepare for broader AI deployment in the future. And we continue to successfully attract new specialized talents to EXL as well as train and develop our existing talent in data and AI. In summary, we delivered strong results in the second quarter and we are encouraged by the acceleration of growth across our Analytics and Digital Operations and Solutions businesses. The consistent execution of our data and AI-led strategy, combined with our growing data and AI sales pipeline, puts us in a strong position for further growth in the second half of the year. With that, I'll turn the call over to Maurizio to cover our financial performance in detail.

Thank you, Rohit, and thanks, everyone, for joining us this morning. I will provide insights into our financial performance for the second quarter and the first six months of 2024, followed by our revised outlook for the full year. We delivered a strong second quarter with revenue of $448.4 million, up 10.7% year-over-year on a reported basis. On a constant currency basis, we grew revenue 10.8% year-over-year and 2.8% sequentially. All revenue growth percentages mentioned hereafter are on a constant currency basis. Revenue from our Digital Operations and Solutions businesses, as defined by three reportable segments excluding Analytics, was $254.6 million, which represents year-over-year growth of 14.3%. Sequentially from the first quarter of 2024, we grew revenue 3.6%. In the Insurance segment, we generated revenue of $149.3 million, an increase of 16.2% year-over-year and 2.8% sequentially. This growth was driven by the expansion of existing client relationships and new client wins. The insurance vertical consisting of both our Digital Operations and Solutions and Analytics businesses grew 12.9% year-over-year with revenue of $185.7 million. In the Emerging segment, we grew revenue 15.1% year-over-year and 4% sequentially to $77.2 million. This growth was primarily driven by the expansion of existing client relationships. The emerging vertical consisting of both our Digital Operations and Solutions and Analytics businesses grew 5% year-over-year with revenue of $159.7 million. The Healthcare segment reported revenue of $28.1 million, growing 3.5% year-over-year and 7% sequentially. This growth was driven by higher volumes in our clinical services business. The healthcare vertical consisting of our Digital Operations and Solutions and Analytics businesses grew 16.8% year-over-year with revenue of $103 million. In the Analytics segment, we generated revenue of $193.8 million, up 6.4% year-over-year and 1.7% sequentially. Growth in Analytics was driven by higher volumes in payment services and growth in our data management business. SG&A expenses as a percentage of revenue increased by 230 basis points year-over-year to 20.5%, driven by investments in sales and marketing, generative AI and digital solutions, as well as restructuring and litigation settlement costs. In the second quarter, we incurred $6.2 million in restructuring and litigation settlement costs to realign a portion of our employee workforce to better meet the evolving needs of our clients. This was largely completed in the second quarter. We do not expect to incur any additional material costs in the third quarter. Our adjusted operating margin for the quarter was 19.8%, down 20 basis points year-over-year, primarily due to increased SG&A investments. Our effective tax rate for the quarter was 23.2%, down 70 basis points year-over-year. This was driven by higher profits in lower tax jurisdictions. Our adjusted EPS for the quarter was $0.40, a 10.8% increase year-over-year on a reported basis. Turning to our first half performance, our revenue for the period was $884.9 million, up 9.8% year-over-year on a reported and constant currency basis. This growth was driven by both our Digital Operations and Solutions and Analytics businesses. Adjusted operating margin for the period was 19.4%, down 30 basis points year-over-year. Our first half adjusted EPS was $0.78, up 9.9% year-over-year on a reported basis. Our balance sheet remains strong. Our cash, including short- and long-term investments, as of June 30th was $285 million and our revolver debt was $335 million for a net debt position of $50 million. We generated cash flow from operations of $75 million in the second quarter compared to $48 million for the same period in 2023, driven by improved working capital management. During the first six months, we spent $23 million on capital expenditures and repurchased approximately 4.3 million shares at an average cost of $30 per share for a total of $128.3 million. This includes 3.35 million shares received upfront as part of our previously announced $125 million accelerated share repurchase plan. We received the remaining shares in July. Now, moving onto our outlook for 2024. Although the macroeconomic environment remains unpredictable, we are raising our guidance range for revenue based on our strong first six months results and the recent acquisition of ITI Data. We now anticipate revenue to be in the range of $1.805 billion to $1.83 billion, representing year-over-year growth of 11% to 12% on both reported and constant currency basis. This represents an increase of $13 million at the midpoint from our previous guidance of $1.79 billion to $1.82 billion. The current revenue guidance includes $7 million to $9 million from ITI Data for the remaining five months of 2024. We expect a foreign exchange gain of approximately $1 million, net interest expense of approximately $5 million to $6 million and our full year effective tax rate to be in the range of 23% to 24%. Based on this, we anticipate our adjusted EPS to be in the range of $1.59 to $1.62, representing year-over-year growth of 11% to 13%, which is an increase from our prior adjusted EPS guidance of $1.58 to $1.52. The ITI Data acquisition is expected to be neutral to adjusted EPS in 2024. We expect capital expenditures to be in the range of $50 million to $55 million. In summary, we are pleased with our second quarter results and encouraged by the acceleration of our growth momentum. By continuing to execute on our data and AI-led strategy, we are confident in our ability to maintain our double-digit growth trajectory. With that, Rohit and I would now be happy to take your questions.

Thank you. At this time, we will now conduct the Q&A session. The first call comes from the line of Maggie Nolan of William Blair. Maggie, please go ahead.

Hi, thank you. I'm hoping you can break down your Analytics segment in a little bit more detail for us. Where you're seeing incremental tailwinds versus where you're seeing headwinds by kind of offering and vertical alignment within the Analytics segment as well?

Sure, Maggie. So, as we mentioned, the places where we are seeing a tremendous amount of growth is around some of the work that we do on healthcare payment services as well as data management. Both of these continued to drive the growth in our Analytics business very nicely in double digits. We are also seeing some of the strength come back across some of the industry verticals. The work that we do in Analytics, particularly in some of the other industry verticals like retail and banking, and that's encouraging for us. And then, as we mentioned previously, marketing Analytics for us continues to be a tailwind. And that's something which has been a drag in terms of our growth rate for the second quarter.

Thank you. Can you provide more details about the expectations for adjusted operating margin expansion on a quarterly basis, and specifically what we should anticipate regarding SG&A investments for the rest of the year?

Sure, Maggie. Our adjusted operating margin in 2023 expanded by 100 basis points to 19.3%. We had originally guided for this year to be fairly flat compared to 2023. In the first half of the year, we ended up at 19.4%. The first quarter was lower due to several planned investments, which brought our adjusted operating profit margin down to 18.9%. Having made those investments in the first quarter, we can expect a more normalized margin for the rest of the year. The second half of the year should align with our guidance of being flat with 2023, around the 19.3% to 19.4% range. Regarding SG&A investments, we made several in AI and our front-end sales during the first half of the year. Consequently, our SG&A investments in the second half should be reasonable, with nothing significant expected.

Thank you. Solid quarter.

One moment for your next question. The next question comes from the line of Bryan Bergin of TD Cowen. Bryan, please go ahead.

Thanks. Good morning. Can you provide more details on how the ITI target aligns with your current data management practices? I'm interested in whether it focuses more on scaling or if it's about adding new solutions and increasing industry penetration. Additionally, can you comment on the growth performance on the financial side?

Sure. So first of all, we are very excited to welcome the ITI team to become part of EXL. As we've kind of gotten to know them, we find that there is exceptional talent within ITI Data. I think what it does for us is from a strategic lens, it further strengthens our capability in data management and it allows us to provide a wider array of services to our clients around data management. It also brings to us a much more global 1,000 customer base and so a number of new large client relationships that we think we can leverage together and add to the capabilities out there. It also brings some IP as well as some partnerships, which we think would be additive and would be helpful. And then finally, it's got a very nice global mix of business that complements the capabilities that EXL has. So, we are excited about this combination and we think with this combination, we should be able to grow the business at a much faster pace and be able to add to the service offerings that we currently have for our clients around data management.

Okay. And then my follow-up, just on the GenAI front, the insurance specific LLM you trained here is interesting. Can you comment on how you intend to contract engagements that may leverage that as well as just any other details on kind of the productivity and delivery implications?

We are very excited about our first domain-specific trained LLM in the insurance sector, where we have the most domain knowledge and data access. As we experiment and develop these LLMs, we've learned that while foundational models perform well, they need to be specifically trained for particular domains to be effective in real-world applications. This approach has allowed us to create our own insurance LLM, which is now ready for versatile use across multiple clients with a one-time setup effort. This LLM, trained on 2 billion parameters, shows significantly better performance compared to the foundational models we have tested. It enables us to implement solutions quickly, at a lower cost, and to achieve excellent results. Regarding our commercial model, it will evolve based on client engagement preferences. For clients seeking comprehensive outsourcing, we will integrate this into our cost structure to provide benefits and outcomes. In cases where clients prefer a standalone solution, we would consider licensing agreements along with usage fees. This is merely the beginning for us; we aim to keep enhancing this offering and expand into other industries. We believe this direction aligns with market trends, and we are excited to lead with this LLM, demonstrating its effectiveness.

All right, very good. Thank you.

One moment for your next question. The next question comes from the line of Surinder Thind of Jefferies. Surinder, please go ahead.

Thank you. Rohit, just following up on the prior question about proprietary LLMs that are industry-specific. Can you help me understand how the training of the models work, in the sense that where are you getting that data from? And then are you able to then go to the client? And does it have to be further trained with client data, or where does the IP for some of that exist?

Sure, Surinder. So first-off, as you know, for us, we go deep into industry verticals and we work with multiple clients across each of our industry verticals. So, take insurance as an example, we work with several leading carriers in that space and we have a deep knowledge and understanding about the workflow, the processes, the data, and everything that needs to happen there. Second, we do have contractual rights to be able to use the data across some of our client relationships. And those situations where we have permission to be able to use the data as well as to be able to use derivative actionable data, we're basically using both of this. So we're using the primary data as well as some of the derivative data to be able to train our models on these insurance processes. Now, going forward, in terms of the work that we will do, certainly, in terms of areas where we have invested in terms of creating that model and we have trained that data, that IP will belong to us. But as we deploy it in client workflows, that IP will jointly be owned by us and by our clients. So it's going to be no different than other technology solutions that we create or we deploy across our client portfolio. But I think the exciting part out here is the efficacy that we are able to get, I mean, that is beating the foundational models, which are trained on much, much larger parameters. I think that's what is exciting for us and for our clients.

That's helpful. In terms of a broader question, you've mentioned that the current environment for Digital Ops has been very beneficial, particularly regarding cost and efficiency. As we potentially see rates decline and discretionary spending increase, how are you assessing the possible effects on the Digital Ops business? Specifically, what level of support do you expect to diminish as we look ahead over the next couple of years or so, when demand stabilizes?

Sure. So fundamentally, when we think about our business and what we are helping our clients with at the highest level, there are two things that we are helping them with. Number one is helping them drive down cost, and number two, helping them transform their businesses. That's what we focus on the digital operations side. We've said always that for us, the demand environment continues to be strong as long as the penetration is low and the adoption of our capabilities can be used to leverage for clients being able to benefit from the cost reduction as well as transformation of their operating processes. In an economic environment where the growth rates are slowing down, the interest rates are coming down, the propensity of clients to focus on a lot more cost savings becomes even more significant. So frankly, at that point, we would expect more and more immediacy in terms of client actions outsourcing their work and entrusting that work to us so that we can actually lower and reduce their cost structure in a very significant way. In terms of transformation, the way in which clients are approaching this is they want to be able to get the benefit of the transformation in the current period itself. And therefore, they want to work with those providers that have the necessary tools and the skill sets and the capabilities that can be deployed immediately where the return on investment can be very, very high very quickly. So, I think we end up being a very credible partner for our clients in terms of helping them engage on the transformation initiative as well. So that's why I think for us, the Digital Operations and Solutions business is strong and we would expect it to continue to remain strong. Our expectation is that our growth rate has accelerated in the second quarter, both in Analytics and in Digital Operations, and we do expect that acceleration to continue in the second half of this year.

Thank you.

One moment for our next question. The next question comes from the line of Puneet Jain of JPMorgan. Puneet, please go ahead.

Yeah, hi. Thanks for taking my question. I have like a follow-up on Digital Ops. So it seems like in the industry, clients' in-house operations are ramping up on an overall basis. Are you seeing that trend in operations management as well? And broadly, what do you expect for insourcing versus outsourcing decisions by your clients in Digital Ops?

Hi, Puneet. Yes, I think clients do use multiple avenues for being able to manage and run their operations efficiently and certainly creating in-house operations or captive operations or global captive centers. That is certainly part of their portfolio. I think the place where we tend to have an advantage is where there is leading and cutting-edge technology that needs to be applied, where data flows need to be integrated into the customer workflows, where AI needs to be deployed, that's where I think we have advantage because we tend to see this across multiple clients and across multiple use cases. And therefore, our understanding of being able to deploy this effectively in a shorter time period and quickly tends to be a little bit better. So, it actually works quite well because we end up complementing some of the work that the in-house captives are doing. And many times we might do the work initially and subsequently the captive might do that work or vice versa. So, it actually is a good ecosystem. I think the key is, can we continue to remain competitive and continue to innovate and continue to be adding value to our client relationships across the board. And I think by virtue of us going deep into the domain, by going deep into data, by going deep into AI, which is our strategy, we are able to maintain that differentiation and that competitive edge.

Got it. No, that makes sense. And then you had like accelerated repurchase this year, just completed an acquisition. From here on, how should we think about use of cash? And also like how much you are paying for the ITI acquisition?

Sure, Puneet. To address your second question, we acquired the ITI company for $26 million in cash, which we funded through our existing cash resources. Looking ahead, we have been quite proactive with share repurchases in the first seven months of the year. We completed the ASR in July and have repurchased approximately $160 million worth of stock so far this year at around $30 per share. We have been fairly aggressive and have managed to secure a good price for our share repurchases this year. The Board approved $0.5 billion for share repurchases back in March for the next two years. Therefore, for 2025, we aim to at least use half of that amount, which translates to about $90 million in share repurchases over the last five months of the year. As we allocate capital for the rest of 2024, you will notice that part of it will go towards share repurchases along with any other M&A opportunities that may arise.

Got it. Thank you.

One moment for your next question. The next question comes from the line of Dave Koning of Baird. Dave, please go ahead.

Yeah. Hey, everyone. Great quarter. My first question is about the strong new client wins this quarter, which I believe are the best we've seen, certainly much higher than in recent quarters. Does this suggest that the macro environment is improving? Also, are the sizes of these wins larger as well? And what’s the typical delay? When we see a lot of wins this quarter, should we expect the impact to be felt more in 2025 rather than in the next six months?

Yeah. Thanks, Dave. So, we're very pleased with the number of new client wins that we had in the second quarter. And also, if you saw our first quarter, new client wins were pretty healthy. So, I think in the first half of the year, we've signed up 39 new clients, 23 of them coming in the second quarter. I think what this is showing us is that the adoption of our business model and working with clients seems to be resonating nicely. And therefore, we are being able to widen the number of client relationships that we work with. We are also very happy about the quality of these new clients that we are signing up because some of these are very significant client relationships and we expect to be able to do a very significant and meaningful amount of revenue with them. But as you correctly noted, most of this is going to be revenue growth that takes place in 2025 and beyond. We get very little growth from new clients in the current period. Keep in mind that we've had a good track record of signing up new clients in all of '23 and '24 as well. And some of the clients that we signed up in '23, we are still in the process of ramping those up right now and into the second half of '24. So that should be adding onto our volume of business going forward.

Thanks for that. As a follow-up, you have very limited restructuring actions over time and clean financials for many years. This was relatively small at around $6 million. Could you describe a bit more about whether this affected the slower-than-normal sequential employee growth? What are the expected savings from this, or could you provide some additional data around it?

Sure, Dave. So, in the second quarter, we did have a restructuring and legal settlement charge of $6.2 million. The restructuring piece was $4.8 million. It involved about 450 employees that were affected by the restructuring, so less than 1% of the overall workforce. And it was really just to realign a small portion of our workforce during the quarter. And so, it did contribute to a slower headcount growth number during the second quarter. We grew just slightly north of 800 employees during the quarter. And so, they did contribute to that. But it was really just a one-time exercise in the second quarter, and we don't see that reoccurring at all for the rest of the year.

Got you. Thanks, guys. Nice job.

One moment for your next question. The next question comes from the line of David Grossman of Stifel. David, please go ahead.

Good morning. Thank you. I wanted to follow up on a couple of questions that were previously asked. First, Rohit, regarding the backlog and pipeline, you mentioned that the pipeline for data analytics and AI is quite strong. I'm curious about the Digital Ops side—how does the backlog compare year-over-year, and what does the pipeline look like? Where do we stand with rolling out wins from 2023 in 2024? Do you think this will extend into 2025, or will most contracts ramp up in 2024?

Sure, David. So the backlog and the pipeline for us across the board continues to be pretty healthy. It continues to be strong. We're not really seeing any material change in that. I think for us in terms of the implementation of deals that we've already won, we've only partially implemented the backlog that we had at the beginning of the year. We've got a tremendous amount of backlog that we still need to implement on in the second half of this year. And there are a number of large client wins that we will be implementing in the second half of the year. The pipeline for us is basically strong across verticals. But what I would say is, while the large deal pipeline within our overall pipeline, that ratio is about the same as what it's been previously. The place where we've seen obviously a tremendous amount of growth in the pipeline is the pipeline attributable to GenAI, and that's increased in a pretty material way over the last 12 months. So, we are encouraged by the quality of that pipeline and the areas in which clients want to partner with us.

And how should we think about the revenue conversion of a GenAI deal? Is that fairly small and quick turn, or are those going to be longer duration type relationships?

Yeah. So, I would say that what we are seeing is a bipolar effect on the GenAI part. In some cases, we are seeing Gen AI being embedded into the operations and into the workflow and the client outsourcing the entire operation to us along with the GenAI implementation, and those tend to be the large size deals. And on the other side of the spectrum, they want us to implement GenAI solutions into existing operations, which they might be running or some of our competitors might be running. And those tend to be typically much smaller implementations as such. So we are seeing deals at both ends of the spectrum that are there, some which are bundled in with the operations, which tend to be large and some which are pure Gen AI implementations, which tend to be much smaller in size.

As a follow-up to your comments about the domain-specific model, you mentioned that the monetization strategy is still somewhat uncertain. Looking beyond the immediate future, Rohit, how do you see a domain-specific model affecting your business in the long run? Historically, the market, particularly the BPO market, tends to price in these developments, seeking to reclaim benefits. Clients often want to capture the advantages as well. Is there any unique aspect that would indicate EXL can keep a larger share of the financial rewards related to these models, or do you believe it will adhere to a more conventional trend?

Yeah. So, I think you're right. I think there'll always be a tussle between clients and service providers in terms of retaining economic value. But I think where we stand out is our focus and our expertise and our domain knowledge in select industry verticals. I think in those areas where we have deep knowledge and we have deep access to data, our ability to train these models and to be able to leverage these models will perhaps be a little bit better. And the networking effect of being able to see workflows across multiple clients, I think that is very powerful when the use of GenAI is involved. So I think that's what gives us a little bit of an advantage and a little bit of pricing power that can leverage the value that we can create out there.

I see. Thanks for that. If I could just squeeze one more in. Maurizio, can you give us what post all the share repurchases to date, what the fully diluted share count should look like?

So, David, so far we have repurchased right around 4.5 million to 5 million shares overall. So if you deduct that from our overall share count going forward in 2025, you're going to find that right around, you can calculate what that reduction in the share count will be. But that's what we've done so far.

One moment for your last question. The last question comes from the line of Vincent Colicchio of Barrington Research. Vincent, please go ahead.

Yes, Rohit, the ITI deal looks quite like a value add. You haven't been very acquisitive for some time. Will we see more ITI type deals as a way to accelerate your positioning?

Yes, Vincent. I think we've been very clear that for us, we'd love to be able to grow our business organically and inorganically. And frankly, the amount of cash flow that we generate and the strength of our balance sheet allows us to be in a fortunate position of being able to acquire assets. But we're going to be very selective in terms of the strategic fit, financial discipline and the cultural fit of the assets that we acquire. And therefore, we do think that there's a lot of opportunity for us to be able to deploy capital and integrate in assets. And as things continue to evolve and progress, I think you should be expecting to see us continue to be active in this area.

And how should we think about this NVIDIA partnership in terms of how long it will take to meaningfully benefit the company?

I think it's a very strategic partnership, which where we are going to be making a tremendous amount of investment of talent and resources, time and commitment and building up capabilities on the NVIDIA AI stack. We think their software and their platform is actually highly differentiated and provides for much better business outcomes. So, as we deploy it and jointly go to market, I think you're going to see us being able to kind of benefit from that and our clients being able to benefit from that. Traditionally, NVIDIA has been seen as a hardware company and as a gaming company, and their use of their advanced computing capabilities into the workflow is something that we think we can be very, very additive on. And so for us and for them, I think it's going to be a pretty meaningful partnership.

Thank you for answering my questions.

Thank you.

This concludes the question-and-answer session. I would now like to turn it back to John Kristoff.

Okay. Thank you everyone for joining our call today. And as always, feel free to reach out directly to me with follow-up questions. I hope everyone has a great day. Thanks, and bye-bye.