Hello, and welcome to the EXLService Holdings, Inc. Third Quarter 2025 Earnings Conference Call. This conference is being recorded today. If you have any objections, please disconnect at this time. I will now turn the call over to Shirley Macbeth, Chief Marketing Officer.

Hello, and thank you all for joining EXL's Third Quarter 2025 Financial Results Conference Call. On the call today with me are Rohit Kapoor, Chairman and Chief Executive Officer; and Maurizio Nicolelli, Chief Financial Officer. We hope you've had an opportunity to review the third quarter press release we issued yesterday afternoon. We've also posted a slide deck and investor fact sheet on our Investor Relations website. As a reminder, some of the matters we'll be discussing 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 yesterday'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. With that, I'll turn the call over to Rohit.

Thanks, Shirley. Good morning, everyone. Welcome to EXL's Third Quarter 2025 Earnings Call. I'm pleased to report another strong quarter as we consistently executed on our data and AI growth strategy. In the third quarter, we generated revenue of $530 million, an increase of 12% year-over-year. And we grew adjusted EPS by 11% to $0.48 per share. In the quarter, our data and AI led revenue grew 18% year-over-year, reaching 56% of total revenue. Our data and AI-led revenue comes from EXL's AI-powered solutions and services, including those in which we embed data and AI into client workflows. This is the third consecutive quarter we have accelerated our data and AI-led revenue growth, underscoring both the rising demand for AI-driven solutions and demonstrating our leadership in embedding AI directly into client workflows. At the same time, our Digital Operations revenue grew 6% year-over-year. This is significant when you consider that as we embed AI into workflows, the revenue moves from Digital Operations to the data and AI-led revenue category. Our third quarter results displayed sustained momentum across all operating segments. The Insurance segment grew 9% year-over-year, which represented one-third of our revenue in the quarter. This growth was driven by our Insurance clients evolving their operations to be more AI-powered. We believe the increased adoption of AI in the workflow in Insurance is a long-term trend from which EXL is well positioned to benefit. Healthcare and Life Sciences represented one-quarter of our revenue and was once again our fastest-growing segment with 22% growth. This performance was fueled by our demand for data and AI solutions, including growth in our payment services business as well as expansion of digital operations and analytics services with new and existing clients. Banking, capital markets, and diversified industries grew 12%, representing nearly one-quarter of our revenue. Looking ahead, we see significant opportunity to further increase value and improve business outcomes in this segment by leveraging our enhanced data and AI capabilities across the value chain. In Q3, we drove 8% year-over-year growth in our International Growth Markets segment as we continue to diversify our business geographically. This segment represented 18% of our total revenue in the quarter. International markets represent meaningful potential for us to accelerate our long-term growth trajectory and expand our global footprint. We are encouraged by the overall demand environment, which remains positive. Our sales pipeline grew with the addition of several new data and AI-led opportunities. As enterprises navigate ongoing economic uncertainty, their priorities are expanding beyond the traditional focus on cost efficiency. They are also looking to change their business models, expand their total addressable market, and grow revenue. As clients adopt AI to help achieve these goals, they need trusted partners to help them navigate change and deliver tangible business outcomes. With our proven track record and comprehensive set of innovative AI-led solutions, we are a natural partner for our clients on this journey. For our existing contracts, we maintain exceptionally high renewal rates. More than 75% of our revenue is recurring or annuity-like. This provides revenue stability and predictability. Combined with a healthy new business pipeline, we have momentum to sustain double-digit top line growth into 2026. I'd like to highlight progress made in advancing our data and AI strategy to deliver differentiated value for our clients. I'll cover three areas: number one, the launch of our new EXLdata.ai solution; two, client momentum with the adoption of embedding AI in the workflow; and three, industry recognition of our domain, data, and AI leadership. Firstly, I'll cover the launch of our latest innovation. Earlier this month, we unveiled EXLdata.ai, the first-of-its-kind agentic AI suite of data solutions that help clients make their enterprise data AI ready. Data is the single biggest barrier to AI adoption. Our research shows only 30% of organizations can access their data enterprise-wide, and most struggle with unifying data silos across legacy platforms. The challenge is especially acute with unstructured data, which now represents 85% of all enterprise data, especially in regulated industries. To make unstructured data AI-ready, it needs to be annotated, labeled, and categorized within a structure. This is a manual, time-consuming, and expensive process. We built EXLdata.ai to solve these challenges. With EXLdata.ai, more than 65 AI agents autonomously manage data modernization, governance, quality, lineage, and data accessibility across the entire data life cycle. This AI-first approach sharply reduces implementation time, which previously used to take months, down to two weeks or even days. Built on a platform-agnostic architecture, EXLdata.ai integrates seamlessly with all leading data platforms, including our launch partners, Databricks, Snowflake, and Palantir, and can be deployed across all the major cloud providers, including Microsoft Azure, Google Cloud Platform, Amazon Web Services, as well as with NVIDIA's accelerated computing infrastructure. We believe EXLdata.ai is a game changer, helping clients overcome the biggest hurdle to AI adoption. Next, I'd like to highlight our success with embedding AI in client workflows. I'll share three examples that are illustrative of the scale of many projects underway and the client business value that we generate. The first use case is our multi-agent powered solution for a U.K. insurer designed to improve and accelerate risk assessment for underwriters. EXL embedded AI into a new business submission workflow that processes thousands of emails and attachments each month. The AI agents extract the right information and assess risk in real time. Processing time has been reduced from a week to a few hours, and conversion has increased by 7%. Real-time insights for brokers also help improve the customer experience during client interactions. The second client example is a large U.S. healthcare organization. The collaboration began with the successful delivery of an enterprise-wide Gen AI platform for document processing which has become a foundational solution for managing unstructured data across the organization. Building on that momentum, we are designing a next-generation agentic ecosystem to power safe and secure solutions across their finance, pricing, and supply chain functions. These AI-powered solutions are helping to reduce the cost of care, accelerate speed to market for new solutions, and improve end-user experiences, with work that used to take weeks now being done in hours. My third example demonstrates how EXL is using AI to transform digital operations for existing clients. EXL's in-depth knowledge of the client processes that we already run is a huge advantage in accelerating the infusion of AI and driving faster outcomes. For the past two decades, EXL has been a strategic partner to one of the U.K.'s largest energy and home services companies. We've helped them reimagine their end-to-end operating processes, including onboarding, meter to cash, consume-to-pay, and customer exit. By integrating data and AI throughout the front, middle, and back office operations, over 35% of transactions that we run for this client are now AI-enabled. Our solutions have driven significant improvements in customer experience, including achieving 98% onboarding accuracy and a 10% uplift in billing accuracy and timeliness. In addition, our initiatives leveraging intelligent automation and applied AI have improved productivity by over 30%. Our revenue from this client has not declined as we were awarded additional work that grew the relationship. We are positioned really well to begin implementing agentic AI for this client and grow value-added revenue streams. These three client examples are representative of numerous successful EXL client AI deployments. While many enterprises struggle to generate returns from AI investments, EXL's unique strengths in domain, data, and AI are delivering meaningful ROI and transforming how businesses operate. This has resulted in a success rate of over 90% for EXL's AI deployments. Finally, I'm proud to share that in Q3, EXL received several recognitions of our AI services and solutions leadership across our core industry verticals. Here are a few highlights. In Insurance, we were named a market leader in the HFS Research, Horizon Insurance Services 2025 report, which emphasized EXL's data-first approach, deep insurance expertise, and AI-driven operational insights. For healthcare, EXL was recognized as a leader in Everest Group’s Healthcare Data, Analytics, and AI Services PEAK Matrix 2025 for our domain expertise, analytics focus, and strong partner ecosystem. In banking, EXL was recognized as a category winner in the 2025 IDC FinTech Real Results program. We were recognized for building a financing solution that allowed First National Bank of Omaha to introduce new financing options quickly, integrate seamlessly with merchants, and scale with agility. These recognitions validate EXL's innovative data and AI expertise as well as our unique approach to helping clients deliver significant business outcomes at scale. In conclusion, we saw strong demand for our services and solutions across the markets we serve. We have bolstered EXL's competitive position by investing in next-generation data and AI capabilities with the launch of EXLdata.ai. Our business portfolio is well-balanced and stable, and we have excellent visibility and confidence for the remainder of the year. As a result, we are raising our revenue and EPS guidance for the full year. With that, I'll turn the call over to Maurizio to provide more details on our financial performance.

Thank you, Rohit, and thanks, everyone, for joining us this morning. I will provide insights into our financial performance for the third quarter and nine months ended September 30, followed by our revised outlook for 2025. We delivered a strong third quarter with revenue of $529.6 million, up 12.2% year-over-year on a reported basis and 12.3% on a constant currency basis. Sequentially, we grew 3.1% on a constant currency basis. Adjusted EPS was $0.48, reflecting a year-over-year increase of 10.8%. All revenue growth percentages mentioned hereafter are on a constant currency basis unless otherwise stated. Now turning to the third quarter revenue by segment. The Insurance segment grew 8.5% year-over-year with revenue of $180.5 million and 4.9% sequentially. This growth was primarily driven by expansion in existing client relationships and new client wins. The Insurance vertical, including revenue from International Growth Markets, grew 7.3% year-over-year with revenue of $211.1 million. The Healthcare and Life Sciences segment reported revenue of $135.3 million, representing growth of 21.6% year-over-year and 4.5% sequentially. The year-over-year growth was driven by higher volumes in our payment services business and expansion in existing client relationships and new client wins. The Healthcare and Life Sciences vertical, including revenue from International Growth Markets, grew 21.5% year-over-year with revenue of $135.5 million. In the Banking, Capital Markets and Diversified Industries segment, we reported revenue of $121 million representing growth of 11.8% year-over-year. This growth was driven by the expansion of existing client relationships, primarily in Banking, Capital Markets and new client wins. The Banking, Capital Markets and Diversified Industries vertical, including revenue from International Growth Markets, grew 12.1% year-over-year with revenue of $182.9 million. In the International Growth Markets segment, we generated revenue of $92.8 million, up 8.4% year-over-year and 1.7% sequentially. This growth was primarily driven by higher volumes with existing clients in Banking, Capital Markets and Diversified Industries and new client wins. SG&A expenses as a percentage of revenue increased by 120 basis points year-over-year to 21.3% driven by investments in front-end sales and marketing. Our adjusted operating margin for the quarter was 19.4%, down 50 basis points year-over-year, driven by investments in front-end sales and new solutions. Our effective tax rate for the quarter was 22.1%, down 70 basis points year-over-year, driven by higher profitability and lower tax jurisdictions. Our adjusted EPS for the quarter was $0.48, up 10.8% year-over-year on a reported basis. Turning to our nine months performance. Our revenue for the period was $1.55 billion, up 14% year-over-year on a constant currency basis. This increase was driven by double-digit growth across both our data and AI-led and Digital Operation Services. Our data and AI-led services grew 17.1% year-over-year on a constant currency basis. The adjusted operating margin for the period was 19.7%, up 10 basis points year-over-year. Our first nine months adjusted EPS was $1.45, up 19% year-over-year. Our balance sheet remains strong. Our cash, including short- and long-term investments as of September 30, was $393 million, and our revolver debt was $355 million, for a net cash position of $38 million. We generated cash flow from operations of $233 million in the first nine months of the year versus $163 million for the same period last year. This improvement was primarily driven by higher profitability and better working capital management. During the first nine months, we spent $42 million on capital expenditures and repurchased approximately 4.2 million shares at an average cost of $44 per share for a total of $183 million. This includes 2.3 million shares received upfront as part of the settlement of our previously announced $125 million accelerated share repurchase plan. We expect to receive the remaining shares in the fourth quarter. Now moving on to our outlook for 2025. Based on our strong year-to-date performance, continued momentum, and current visibility for the remainder of the year, we are raising our revenue and adjusted EPS guidance. We now anticipate 2025 revenue to be in the range of $2.07 billion to $2.08 billion, representing year-over-year growth of 13%, both on a reported and constant currency basis. This is an increase of $15 million at the midpoint of our previous guidance. We expect a foreign exchange gain of approximately $2 million to $3 million, net interest income of approximately $1 million, and our full-year effective tax rate to be in the range of 22% to 23%. We expect capital expenditures to be in the range of $50 million to $55 million. We anticipate our adjusted EPS to be in the range of $1.88 to $1.92, representing year-over-year growth of 14% to 16%. To conclude, we delivered a strong third quarter, demonstrating our formidable competitive position in embedding AI into the workflow. Our resilient business model and strong sales pipeline give us confidence in our ability to maintain double-digit growth momentum in 2026.

Our first question will come from Surinder Thind with Jefferies.

Rohit, can you maybe just talk a little bit about how you're thinking about the change in the overall demand environment? Would you characterize it as relatively unchanged, or are clients maybe getting a little bit more positive when it comes to some of the innovation spend that obviously you guys sit on a different end of the spectrum compared to some of your peers? I just wanted to understand what you're seeing in your commentary on the sustainability of the double-digit organic revenue growth.

Sure, Surinder. So I think the way I would characterize it is that the overall demand continues to be very strong. And what we are seeing is that the total addressable market for our services and solutions has really expanded. But this is probably the first quarter in which the shift in demand is now visible in our financials. And you can see that our data and AI-led revenue has moved quite significantly up and become 56% of our total revenue. We can see the conversion of some traditional domain and finance and accounting operations, businesses that we used to manage being converted to AI-led operations. We can see generative AI and agentic AI move from proof of concepts to production to actually going to enterprise scale. There is a huge amount of demand that is building up around data enablement for AI. So frankly, the overall market demand in terms of innovation spend and sustainability is moving exactly in the direction in which we thought we should be strategically playing and building out our capabilities. Some of this is now becoming quite visible in our financials. We are pleased with our ability to gain new clients. We are pleased with our ability to win market share from other providers. And we're pleased to become the AI transformation partner for these clients, helping them along these journeys. So when we think about sustained growth in double digits, we are very confident in our ability to drive that because our data and AI-led business, which is 56% and it grew at 18% in the third quarter, that alone will be able to command a double-digit growth rate for the full company. All of these signs are very encouraging for us and the pivots that we have made seem to be playing out quite nicely.

That's helpful. And then I guess as a follow-up, in the shift in demand and the shift in the underlying business, I think you pointed out some interesting things where work that may have used to take months may now be done in weeks and in a few instances, maybe it can be done in the course of hours or a week. That sounds very deflationary, right, optically. Can you maybe help us understand how and where the makeup of this is that when you go to that client and you offer to do work that used to be three months, and now you're telling them, hey, we can do it in three weeks? Where is that incremental revenue coming from? Are you now doing three or four times as much work with that client? Or what is going on here to help us understand the sustainability of the growth rate?

Yes, absolutely. And the best anecdotal example of that was what I shared in my prepared remarks about an existing client for whom we have implemented AI-led operations. We now have 35% of the transactions that are AI-enabled, and that's generated a 30% productivity benefit for this client. Yet our revenue for this client has remained the same. The reason the revenue has remained the same is that this client obviously has great confidence in our ability to be able to apply AI and deliver that productivity benefit to them. Therefore, they're giving us more and more work which is being shifted over from what they were running themselves or what they might have been running with other providers, and we are winning more business from them. And therefore, this deflationary piece that you talk about, we don't really see that because, even today, the penetration of the work that we do with our clients is still relatively low. The opportunity set for us is enormous. Additionally, there are new areas that this client would never have engaged with in the past with anyone, such as things around agentic AI, data bringing together, data lineage, and data governance. These areas have become necessary to work on now that AI is being used in these business operations. We are the natural choice partner for them, and frankly, what we are seeing is the more benefit we can provide to our clients and the quicker we can do it for them, the more they tend to rely on us and give us more work as we become an even more trusted partner in this journey.

Our next question will come from Bryan Bergin with TD Cowen.

First question is on digital ops. So can you just unpack further your expectations for the fourth quarter for digital ops and really into fiscal '26 as well, just given the first half comps. And Rohit, just based on that demand shift you noted here recently, where does the comfort lie in digital ops longer term? Is it still kind of high single digits? Is it mid-single to high single? And then my follow-up, I'll ask both upfront here. Just on the top client, what's driving that top client strength and what's the sustainability?

Sure. So Bryan, first of all, I just want to make sure that everybody understands that when we talk about Digital Operations, it includes three service lines. Number one is domain operations; number two is finance and accounting operations; and number three is platform services. So those are the three elements that constitute our Digital Operations business. In terms of the growth rate of Digital Operations, clearly, as we embed AI into domain operations, finance and accounting operations, and platform services, some of that revenue is moving from the Digital Operations bucket to the data and AI-led bucket. It's very important to understand this because we ourselves are enabling a lot of Digital Operations and making it data and AI-led operations. What you are seeing is the net growth of Digital Operations, which is at 6% for this quarter. What you are not seeing is that the overall growth rate of this business is much higher because the shift of Digital Operations to data and AI led is taking place. Regarding how we are seeing growth in domain operations, finance and accounting operations, and platform services, we're very pleased with how clients are engaging with us a lot more in this direction. When they first engage with us, a lot of this is some of the traditional work that we have done with them. Then very quickly, within the first six months to a year, we start to apply AI into this operation. This engagement with a new client, starting out with the Digital Operations and then converting it to AI-led operations looks like a very good pathway, and we feel very good about the kind of growth and the kind of engagement we are experiencing.

Our next question will come from Maggie Nolan with William Blair.

Maybe to build on an earlier question about your ability to win additional work in these clients, can you talk about how you're changing your client relationship management, your go-to-market motions and those types of things? And just in general, your confidence in your ability to win additional market share as these shifts happen?

Sure, Maggie. I think that's a really important attribute, and you're touching upon something we've been working on very proactively. The nature of our conversation with clients has changed. It's no longer about just providing them with cost efficiency. It's much more about innovation and transformation of their business model. A lot more about applying AI correctly in a sustainable way. What that means is two or three things. Number one, our account managers and our client executives, as well as our sales teams, need to be proficient in engaging and talking to clients regarding the use of these highly complex and newer technologies. They need to be conversant with data and AI and understand how to apply that into the client workflow to pull this whole ecosystem together and deliver business outcomes. This is a significant change, and we are training our front-end teams to learn, understand, and communicate this appropriately to our customers and prospects. The second thing that's happening is, we are no longer only talking to the Chief Operating Officer. We're talking to the CIO, the Chief Data Officer, the Business Head, and the CEO. The buying centers are much more integrated and spread across the organization. This also means larger deal sizes and more strategic decisions that the client needs to make. The third part is that our entry point starts off with providing them confidence on a single use case and then expands that use case at scale for the enterprise, proliferating across multiple businesses, geographies, and functions. Our go-to-market piece has changed significantly. Additionally, a large part of our go-to-market strategy now involves partners. We have several technology partners we cooperate with, including Microsoft Azure, GCP, AWS, and the data platforms, such as Databricks - our launch partner for EXLdata.ai - Snowflake, and Palantir. The go-to-market motion is jointly coordinated with these technology partners, as well as private equity firms looking to apply AI into their portfolio of clients more quickly. This change in the go-to-market approach has been very significant.

That's great detail. My follow-up would be about the growth in revenue per employee. Can you talk about the puts and takes there, just given that your growth was led by data and AI? I would have expected that to track a little more closely with that growth rate. Any incremental color would be great.

Right. So we are seeing an upward improvement in terms of the revenue per employee across the company. That's a trend we expect to see continuing for the next several years as we apply AI and we get into more complex work for our clients. However, keep in mind that this will happen over a period of time. There may be quarters where this will move in different directions depending on what work we are winning, the composition of that work, and how it correlates. You can see that the number of employees we've added year-on-year is at a much slower pace compared to our revenue growth rate, and that's been trending for the last several quarters, something we expect to see going forward. We expect our revenue to grow double-digit, but we do not expect to add employee headcount at a double-digit growth rate. It will be more in a single digit, possibly mid- to high single-digit kind of growth rate.

Our next question will come from David Koning with RW Baird.

Good quarter. I guess a couple of questions. My first question is, Healthcare has dramatically grown the last couple of years. It's about 50% bigger than two years ago. Maybe just talk a little bit about the outlook there. Can you keep growing this fast? What are you doing to kind of keep the pipeline going? Yes, the biggest question is just can it keep this growth rate up? It's been so good.

So Dave, for us, the way we think about it is that our Healthcare business is really in its infancy because the healthcare market is so enormous and data-rich. It's got broken and fragmented processes. It is adopting AI and applying analytics in a much more aggressive way, and therefore, the opportunity set in healthcare is enormous. We are pleased with how we've been building up our Healthcare business. If you talk to our clients in Healthcare, they can clearly see the kind of value that we bring to them. Our payment integrity business continues to grow nicely. We are also pleased that our domain operations business in healthcare grew very nicely this year. There are multiple areas where we can help our clients as such. One of the biggest opportunities for healthcare is to assist them with their data, and that's something we can see again is growing nicely. The headroom for us is enormous; these are enormous markets for us. Even if we've grown 50%, it's just a fraction of where our potential lies within these industry segments.

Yes, okay. Great to hear that. And then a question for Maurizio. You're doing a really nice job executing to the full-year plan on margins. But it's a little bit lumpy just the way Q1 was so good with margins. Now as you're going through the year, just as expected. But margins being down in Q3 and maybe flattish in Q4 looks like, you still expect growth next year, right, like growth in margin next year? I'm just wondering the cadence this year; is next year going to be more stable growth through the year?

So Dave, you are correct. The first half of the year, our adjusted margin was 19.9%. We just closed the quarter at 19.4%. So it's a little bit lumpy this year; we started extremely high, just over 20% in Q1, and we're trending more towards what I've been guiding to as 10 to 20 basis points higher on a year-over-year basis, which would put us around 19.5% for the year. Looking forward, we continue to see margin improvement of 10 to 20 basis points a year, but it will be a little bit more flatlined than what you've seen this year, meaning Q1 should be a little more informative of the annual margin going forward. You should see that for the rest of next year. Right now, you are seeing us spend a bit more on front-end sales and capability development, and that's where we're putting our investment dollars in the second half of the year.

Our next question will come from Vincent Colicchio with Barrington Research Associates.

Rohit, the EXLdata.ai, the product sounds very promising. Just curious, what does the landscape look like there? Are there similar products out there?

So yes, Vincent, I think on the data side, a number of companies are trying to build solutions to help clients manage their data and get their data AI-ready. We all know that this is the number one problem that clients face. The way we have thought about being helpful to our clients is really to use AI to make data AI ready. Therefore, we differentiate ourselves in two ways. First is the use of AI for data being AI ready, and second, we built this platform and the solution set to be a fully comprehensive end-to-end. This means it can help in data lineage, data accessibility, data governance, master data management, and have data coordinated across different platforms and silos. Most importantly, it effectively addresses unstructured data, which involves the heaviest lifting necessary, by utilizing AI itself. As of today, we think this is really a first of its kind. When we talk to our launch partners and other partners with data platforms, they find this solution to be compelling. We are seeing a tremendous amount of excitement around this, with many demos, numerous use cases, and a lot of activity associated with it at this point in time.

Thanks for that. The International segment looks like a large opportunity for you, given your penetration. What are you doing to accelerate that? Are you making investments in the marketing side, for example?

Yes, Vincent. You're right. The International piece for us should be growing at a faster pace. That's something we are consciously investing in, ensuring that we have senior executive talent closer to our customers there. We are bringing on additional talent and taking our solutions and capabilities developed with some of our U.S.-based clients and applying that to these international geographies. Additionally, we are building local partnerships in these markets, and we really do need to mature the business as such. But the opportunity and potential are very strong here.

Next question will come from David Grossman with Stifel Europe.

I wonder if we could talk a little bit more about the requirements to really deploy enterprise AI, if you will. I think Rohit, you were talking quite a bit on this call about the amount of data preparation required to execute that and the new products that you have in the marketplace that automate a large part of that. When you're going to these clients, are you going to market offering this service, which is then converting into follow-on revenue? In other words, is it being sold as a stand-alone business? If it is, what is the typical multiplier effect that you are getting once you get in with the client on that type of engagement in terms of the following work?

That's a great question, David. We're doing this through two different motions. One is on a stand-alone basis, where we take EXLdata.ai as a stand-alone capability, independent of whether our clients use us for embedding AI into the workflow. We help them get their data estate in order and ensure their data is AI-ready. These are stand-alone engagements starting with demonstrating our abilities with one particular use case, but quickly expanding to working across the enterprise and transitioning many of their legacy data platforms to a modern cloud-based data platform. That’s one motion. The second motion is engaging with clients to help them embed AI into the workflow, taking responsibility for the end-to-end charter. This means we must get the data estate in order, apply AI to that data, and deliver a business outcome to the client. We find that both of these approaches resonate well, and the need for this across our clients is very strong.

So what do you think the multiplier is stand-alone versus kind of the integrated sell?

At this point, David, the data management piece is a large part. The AI enablement is a much smaller piece, but the heavy lifting is much more around data enablement. The multiplier currently is not that strong, but as this progresses, I expect it to grow larger. We will see how that plays out.

And then just as you're thinking, I know you've guided to double-digit growth as your target model. As you formulated that double-digit target, how much of that is net revenue retention or same-store growth, same client growth versus new bookings?

Yes, that's a very strong metric for us, David. With existing clients, as we embed more AI and deliver greater value, renewal rates are north of 90%. We continue to win additional business from them while also adding new clients. Adding new clients in any given year contributes to less than 5% of the revenue for that year. A large part of this is with existing clients where we build and grow.

Got it. And just if I could sneak one more in, because I was a little confused by your response to an earlier question. I think you said that you were getting 30% productivity gains from a client, yet their revenue remained flat. If I did hear that right, I guess I would ask the same question again. How should we think about this if we're just getting to flat off of a 30% productivity gain?

Yes. So think about it this way. If our revenue was $100, and we provided a productivity benefit of 30%, it dropped down to $70. We were given incremental revenue of another $30 that brought it back to $100. Now we came back to $100 with better margins, higher revenue per headcount, and increased value for the customer. Therefore, our penetration rate with that customer increased, enhancing the strategic relationship with that customer.

We have no further questions this time. This concludes our call. Thank you, and have a good day.