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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________________________________
FORM 10-Q
_________________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM                      TO                     
COMMISSION FILE NUMBER 001-33089
_________________________________________________________
EXLSERVICE HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
_________________________________________________________
Delaware 82-0572194
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
320 Park Avenue,29th Floor, 
New York,New York10022
(Address of principal executive offices) (Zip code)
(212) 277-7100
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class:Trading symbol(s)Name of Each Exchange on Which Registered:
Common Stock, par value $0.001 per share EXLSNASDAQ
Securities registered pursuant to Section 12(g) of the Act:
None
________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.   Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer  Accelerated filer 
Non-accelerated filer  Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐    No  

As of July 26, 2022, there were 33,062,704 shares of the registrant’s common stock outstanding, par value $0.001 per share.



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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
EXLSERVICE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except per share amount and share count)
As of
June 30, 2022December 31, 2021
Assets
Current assets:
Cash and cash equivalents$106,304 $135,337 
Short-term investments158,941 178,538 
Restricted cash6,840 6,174 
Accounts receivable, net237,453 194,232 
Prepaid expenses15,621 14,655 
Advance income tax, net12,712 15,199 
Other current assets23,143 34,009 
Total current assets561,014 578,144 
Property and equipment, net82,649 86,008 
Operating lease right-of-use assets67,962 76,692 
Restricted cash2,056 2,299 
Deferred tax assets, net40,924 21,404 
Intangible assets, net73,298 81,082 
Goodwill406,575 403,902 
Other assets53,195 30,369 
Investment in equity affiliate3,261 3,004 
Total assets$1,290,934 $1,282,904 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$4,377 $5,647 
Current portion of long-term borrowings35,000 260,016 
Deferred revenue22,013 20,000 
Accrued employee costs75,698 114,285 
Accrued expenses and other current liabilities89,030 76,350 
Current portion of operating lease liabilities18,548 18,487 
Income taxes payable, net21,348 901 
Total current liabilities266,014 495,686 
Long-term borrowings, less current portion250,000 — 
Operating lease liabilities, less current portion59,224 68,506 
Income taxes payable1,790 1,790 
Deferred tax liabilities, net841 965 
Other non-current liabilities27,412 22,801 
Total liabilities605,281 589,748 
Commitments and contingencies (Refer to Note 24)
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued
  
ExlService Holdings, Inc. Stockholders’ equity:
Common stock, $0.001 par value; 100,000,000 shares authorized, 39,795,161 shares issued and 33,124,035 shares outstanding as of June 30, 2022 and 39,508,340 shares issued and 33,291,482 shares outstanding as of December 31, 2021
40 40 
Additional paid-in capital420,306 395,742 
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Retained earnings828,161 756,137 
Accumulated other comprehensive income/(loss)(133,374)(89,474)
Total including shares held in treasury1,115,133 1,062,445 
Less: 6,671,126 shares as of June 30, 2022 and 6,216,858 shares as of December 31, 2021, held in treasury, at cost
(429,480)(369,289)
Stockholders’ equity685,653 693,156 
Total equity685,653 693,156 
Total liabilities and stockholders’ equity $1,290,934 $1,282,904 

See accompanying notes to unaudited consolidated financial statements.
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EXLSERVICE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share amount and share count)

Three months ended June 30,Six months ended June 30,
2022202120222021
Revenues, net$346,782 $275,064 $675,990 $536,479 
Cost of revenues(1)
221,207 170,701 428,723 329,522 
Gross profit(1)
125,575 104,363 247,267 206,957 
Operating expenses:
General and administrative expenses40,434 36,499 80,379 67,202 
Selling and marketing expenses23,985 19,724 48,155 37,959 
Depreciation and amortization expense14,075 12,310 27,677 24,411 
Total operating expenses78,494 68,533 156,211 129,572 
Income from operations47,081 35,830 91,056 77,385 
Foreign exchange gain, net1,423 1,353 3,179 1,787 
Interest expense(1,502)(2,520)(2,378)(4,994)
Other income/(loss), net(174)2,215 2,237 3,625 
Income before income tax expense and earnings from equity affiliates46,828 36,878 94,094 77,803 
Income tax expense11,125 8,865 22,327 17,823 
Income before earnings from equity affiliates35,703 28,013 71,767 59,980 
Gain/(loss) from equity-method investment143 8 257 (28)
Net income attributable to ExlService Holdings, Inc. stockholders$35,846 $28,021 $72,024 $59,952 
Earnings per share attributable to ExlService Holdings, Inc. stockholders:
Basic$1.07 $0.83 $2.15 $1.78 
Diluted$1.06 $0.81 $2.13 $1.75 
Weighted-average number of shares used in computing earnings per share attributable to ExlService Holdings Inc. stockholders:
Basic33,403,411 33,571,07433,422,618 33,652,146
Diluted33,830,539 34,389,76833,862,597 34,353,593

(1) Exclusive of depreciation and amortization expense.



See accompanying notes to unaudited consolidated financial statements.
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EXLSERVICE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(In thousands)
Three months ended June 30,Six months ended June 30,
2022202120222021
Net income$35,846 $28,021 $72,024 $59,952 
 Other comprehensive income/(loss):
Unrealized loss on cash flow hedges(14,632)(871)(15,149)(303)
Loss on net investment hedges (1,134) (1,134)
Foreign currency translation loss(22,782)(4,775)(30,227)(6,686)
Reclassification adjustments
Gain on cash flow hedges(1)
(1,459)(2,866)(3,448)(5,695)
Retirement benefits(2)
149 176 304 355 
Income tax effects relating to above(3)
3,656 1,478 4,620 1,702 
  Total other comprehensive income/(loss)$(35,068)$(7,992)$(43,900)$(11,761)
Total comprehensive income$778 $20,029 $28,124 $48,191 


(1)These are reclassified to net income and are included in cost of revenues and operating expenses, as applicable in the unaudited consolidated statements of income. Refer to Note 16 - Derivatives and Hedge Accounting to the unaudited consolidated financial statements.

(2)These are reclassified to net income and are included in other income/(loss), net in the unaudited consolidated statements of income. Refer to Note 19 - Employee Benefit Plans to the unaudited consolidated financial statements.

(3)These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gains/(losses). Refer to Note 21 - Income Taxes to the unaudited consolidated financial statements.








See accompanying notes to unaudited consolidated financial statements.
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EXLSERVICE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
For the three months ended June 30, 2022 and 2021
(In thousands, except share count)


Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income/(Loss)Treasury StockTotal Equity
SharesAmountSharesAmount
Balance as of March 31, 202239,794,154 $40 $406,966 $792,315 $(98,306)(6,465,410)$(400,674)$700,341 
Stock issued against stock-based compensation plans1,007 —  — — — —  
Stock-based compensation— — 13,340 — — — — 13,340 
Acquisition of treasury stock— — — — — (205,716)(28,806)(28,806)
Other comprehensive loss— — — — (35,068)— — (35,068)
Net income— — — 35,846 — — — 35,846 
Balance as of June 30, 202239,795,161 $40 $420,306 $828,161 $(133,374)(6,671,126)$(429,480)$685,653 


Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income/(Loss)Treasury StockTotal Equity
SharesAmountSharesAmount
Balance as of March 31, 202139,273,989 $39 $428,882 $673,310 $(78,753)(5,747,100)$(297,253)$726,225 
Stock issued against stock-based compensation plans9,864 — 99 — — — — 99 
Stock-based compensation— — 10,070 — — — — 10,070 
Acquisition of treasury stock— — — — — (287,044)(28,409)(28,409)
Other comprehensive loss— — — — (7,992)— — (7,992)
Net income— — — 28,021 — — — 28,021 
Balance as of June 30, 202139,283,853 $39 $439,051 $701,331 $(86,745)(6,034,144)$(325,662)$728,014 
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EXLSERVICE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
For the six months ended June 30, 2022 and 2021
(In thousands, except share count)

Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income/(Loss)Treasury StockTotal Equity
SharesAmountSharesAmount
Balance as of January 1, 202239,508,340 $40 $395,742 $756,137 $(89,474)(6,216,858)$(369,289)$693,156 
Stock issued against stock-based compensation plans286,821 —  — — — —  
Stock-based compensation— — 24,564 — — — — 24,564 
Acquisition of treasury stock— — — — — (454,268)(60,191)(60,191)
Other comprehensive loss— — — — (43,900)— — (43,900)
Net income— — — 72,024 — — — 72,024 
Balance as of June 30, 202239,795,161 $40 $420,306 $828,161 $(133,374)(6,671,126)$(429,480)$685,653 


Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income/(Loss)Treasury StockTotal Equity
SharesAmountSharesAmount
Balance as of January 1, 202138,968,052 $39 $420,976 $641,379 $(74,984)(5,408,618)$(268,238)$719,172 
Stock issued against stock-based compensation plans315,801 — 173 — — — — 173 
Stock-based compensation— — 17,902 — — — — 17,902 
Acquisition of treasury stock— — — — — (625,526)(57,424)(57,424)
Other comprehensive loss— — — — (11,761)— — (11,761)
Net income— — — 59,952 — — — 59,952 
Balance as of June 30, 202139,283,853 $39 $439,051 $701,331 $(86,745)(6,034,144)$(325,662)$728,014 


See accompanying notes to unaudited consolidated financial statements.
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EXLSERVICE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Six months ended June 30,
20222021
Cash flows from operating activities:
Net income$72,024 $59,952 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense27,739 24,734 
Stock-based compensation expense24,564 17,902 
Amortization of operating lease right-of-use assets12,005 13,632 
Unrealized (gain)/loss on short term investments(275)6,777 
Unrealized foreign currency exchange gain, net(10,280)(2,634)
Deferred income tax benefit(1,462)(14,737)
Allowance / (reversal) of expected credit losses170 (390)
Fair value changes in contingent consideration1,000  
(Gain)/loss from equity-method investment(257)28 
Amortization of non-cash interest expense related to convertible senior notes 1,364 
Others, net783 144 
Change in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable(46,385)(34,152)
Prepaid expenses and other current assets2,861 189 
Advance income tax, net8,684 39 
Other assets(6,584)1,589 
Accounts payable(1,107)(2,458)
Deferred revenue 4,276 (20,832)
Accrued employee costs(34,016)3,833 
Accrued expenses and other liabilities11,190 12,290 
Operating lease liabilities(11,922)(13,327)
Net cash provided by operating activities53,008 53,943 
Cash flows from investing activities:
Purchases of property and equipment(25,054)(19,903)
Proceeds from sale of property and equipment154 527 
Business acquisition (net of cash and cash equivalents acquired)(2,572) 
Purchases of investments(96,082)(32,987)
Proceeds from redemption of investments82,567 64,031 
Net cash (used for)/provided by investing activities(40,987)11,668 
Cash flows from financing activities:
Principal payments of finance lease liabilities(75)(107)
Proceeds from borrowings35,000 25,000 
Repayments of borrowings(10,000)(99,000)
Acquisition of treasury stock(60,191)(57,424)
Proceeds from exercise of stock options 174 
Net cash used for financing activities(35,266)(131,357)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(5,365)(2,237)
Net decrease in cash, cash equivalents and restricted cash(28,610)(67,983)
Cash, cash equivalents and restricted cash at the beginning of the period143,810 225,519 
Cash, cash equivalents and restricted cash at the end of the period$115,200 $157,536 
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest$2,694 $3,599 
Income taxes, net of refunds$14,301 $18,710 
Supplemental disclosure of non-cash investing and financing activities:
Assets acquired under finance lease$118 $50 
See accompanying notes to unaudited consolidated financial statements.
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EXLSERVICE HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2022
(In thousands, except per share amount and share count)
1. Organization

ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the state of Delaware. ExlService Holdings, together with its subsidiaries and affiliates (collectively, the “Company”), is a leading data analytics and digital operations and solutions company that partners with clients to improve business outcomes and unlock growth. By bringing together deep domain expertise with robust data, powerful analytics, cloud, artificial intelligence and machine learning, the Company creates agile, scalable solutions and executes complex operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media, and retail, among others. The Company’s data-led value creation framework enables better and faster decision making, leveraging its end-to-end data and analytics capabilities to drive improved business outcomes, and re-designing of operating models to integrate advanced technology into operational workflows. The Company embeds digital operations and solutions into clients’ businesses and introduces its data led approach to transform operations. Accordingly, as the Company’s operations management services are now a part of its digital operations and solutions, they are referred to as “digital operations and solutions” herein; however, the Company has not changed the way in which it manages its business or its operating segments or segment reporting structure.

The Company’s clients are located principally in the United States of America (“U.S.”) and the United Kingdom (“U.K.”).
2. Summary of Significant Accounting Policies
(a)Basis of Preparation and Principles of Consolidation

The unaudited consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

The unaudited consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period.
    
The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intra-group balances and transactions, and gains and losses arising from intra-group transactions, are eliminated while preparing consolidated financial statements.

Accounting policies of the respective individual subsidiary and associate are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under U.S. GAAP.

The Company’s investments in equity affiliates are initially recorded at cost and any excess purchase consideration paid over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee after its acquisition is recognized in the unaudited consolidated statements of income.





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EXLSERVICE HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(continued)
June 30, 2022
(In thousands, except per share amount and share count)
(b)Investments

The Company’s short-term investments consist of investments in mutual funds and those term deposits with more than three months of original maturity and less than twelve months of remaining maturity as of the reporting date, while long-term investments consist of term deposits with more than twelve months of remaining maturity as of the reporting date.

The Company’s investments in term deposits with financial institutions are measured and recognized at cost and approximate fair value. Interest earned on such investments is included in interest income.

The Company’s mutual fund investments are in debt funds invested in India. These investments are accounted for in accordance with the fair value option under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments, (“Topic 825”). The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period and any changes in fair value are included in other income/(loss), net. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in other income/(loss), net.

(c)Use of Estimates

The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the unaudited consolidated financial statements include, but are not limited to, estimates of the fair value of the identifiable intangible assets and contingent consideration, purchase price allocation, including revenue projections and discount rate applied within the discounted cash flow model for business acquisitions, allowance for expected credit losses, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and variable consideration in a customer contract, expected recoverability from customers with contingent fee arrangements, estimated costs to complete fixed price contracts, recoverability of dues from statutory authorities, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, assumptions used to calculate stock-based compensation expense, assumptions used to determine the incremental borrowing rate to calculate lease liabilities and right-of-use (“ROU”) assets, lease term to calculate amortization of ROU, depreciation and amortization periods, and recoverability of long-lived assets, goodwill and intangibles.

(d)Recent Accounting Pronouncements    

In March 2020, FASB issued Accounting Standard Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and London Inter-Bank Offered Rate (“LIBOR”). The ASU provides practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are elective and are effective upon issuance for all entities through December 31, 2022. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

In October 2021, FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU provides guidance in Topic 805 to require the acquirer entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers, as if it had originated the contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements, if the acquiree prepared financial statements in accordance with U.S. GAAP. The ASU is effective for fiscal years beginning after December 15, 2022. An entity may early adopt the ASU including adoption in an interim period, with retrospective application to all business combinations within the fiscal year that includes such interim period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.
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EXLSERVICE HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(continued)
June 30, 2022
(In thousands, except per share amount and share count)
3. Segment and Geographical Information

The Company is a provider of data analytics and digital operations and solutions.

The Company manages and reports financial information through its four reportable segments: Insurance, Healthcare, Analytics and Emerging Business, which reflects how management reviews financial information and makes operating decisions. These business units develop client-specific solutions, build capabilities, maintain a unified go-to-market approach and are integrally responsible for service delivery, customer satisfaction, growth and profitability.

The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments.

The Company does not allocate and therefore the CODM does not evaluate, certain operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented.

The December 2021 and June 2022 acquisition of Clairvoyant AI Inc. (“Clairvoyant”) and Inbound Media Group, LLC (“Inbound”), respectively, are both included in the Analytics reportable segment. Refer to Note 9 - Business Combination, Goodwill and Intangible Assets to the unaudited consolidated financial statements for further details.

Revenues and cost of revenues for the three months ended June 30, 2022 and 2021, respectively, for each of the reportable segments, are as follows:
Three months ended June 30, 2022
InsuranceHealthcareEmerging BusinessAnalyticsTotal
Revenues, net$108,557 $23,051 $53,873 $161,301 $346,782 
Cost of revenues(1)
70,645 17,694 31,214 101,654 221,207 
Gross profit(1)
$37,912 $5,357 $22,659 $59,647 $125,575 
Operating expenses78,494 
Foreign exchange gain, interest expense and other loss, net(253)
Income tax expense11,125 
Gain from equity-method investment143 
Net income$35,846 
(1) Exclusive of depreciation and amortization expense.
Three months ended June 30, 2021
InsuranceHealthcareEmerging BusinessAnalyticsTotal
Revenues, net$94,719 $28,250 $40,690 $111,405 $275,064 
Cost of revenues(1)
59,359 17,685 22,346 71,311 170,701 
Gross profit(1)
$35,360 $10,565 $18,344 $40,094 $104,363 
Operating expenses68,533 
Foreign exchange gain, interest expense and other income, net1,048 
Income tax expense8,865 
Gain from equity-method investment8 
Net income$28,021 
(1) Exclusive of depreciation and amortization expense.
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EXLSERVICE HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(continued)
June 30, 2022
(In thousands, except per share amount and share count)
Revenues and cost of revenues for the six months ended June 30, 2022 and 2021, respectively, for each of the reportable segments, are as follows:

Six months ended June 30, 2022
InsuranceHealthcareEmerging BusinessAnalyticsTotal
Revenues, net$211,823 $49,207 $104,620 $310,340 $675,990 
Cost of revenues(1)
135,727 35,345 60,427 197,224 428,723 
Gross profit(1)
$76,096 $13,862 $44,193 $113,116 $247,267 
Operating expenses156,211 
Foreign exchange gain, interest expense and other income, net3,038 
Income tax expense22,327 
Gain from equity-method investment257 
Net income$72,024 

(1) Exclusive of depreciation and amortization expense.

Six months ended June 30, 2021
InsuranceHealthcareEmerging BusinessAnalyticsTotal
Revenues, net$185,879 $58,515 $78,358 $213,727 $536,479 
Cost of revenues(1)
115,452 35,076 43,190 135,804 329,522 
Gross profit(1)
$70,427 $23,439 $35,168 $77,923 $206,957 
Operating expenses129,572 
Foreign exchange gain, interest expense and other income, net418 
Income tax expense17,823 
Loss from equity-method investment28 
Net income$59,952 

(1) Exclusive of depreciation and amortization expense.

Revenues, net by service type, were as follows:
Three months ended June 30,Six months ended June 30,
2022202120222021
Digital operations and solutions(1)
$185,481 $163,659 $365,650 $322,752 
Analytics services161,301 111,405 310,340 213,727 
Revenues, net$346,782 $275,064 $675,990 $536,479 

(1) Digital operations and solutions include revenues of the Company’s Insurance, Healthcare and Emerging Business reportable segments. Refer to the reportable segment disclosure above.

The Company attributes the revenues to regions based upon the location of its customers.

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EXLSERVICE HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(continued)
June 30, 2022
(In thousands, except per share amount and share count)
 Three months ended June 30,Six months ended June 30,
 2022202120222021
Revenues, net
United States$298,520 $235,288 $580,899 $459,656 
Non-United States
United Kingdom32,090 26,175 64,863 50,926 
Rest of World16,172 13,601 30,228 25,897 
Total Non-United States48,262 39,776 95,091 76,823 
Revenues, net$346,782 $275,064 $675,990 $536,479 

Long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets were as follows:
As of
June 30, 2022December 31, 2021
Long-lived assets
India$65,899 $79,604 
United States54,085 50,095 
Philippines20,921 22,011 
Rest of World