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EXL boosts partnership with Databricks to enhance AI solutions

Published 09/30/2024, 02:12 PM
EXLS
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NEW YORK - EXL [NASDAQ:EXLS], a company specializing in data analytics and digital operations, has announced an expansion of its partnership with Databricks, aiming to enhance data management and artificial intelligence (AI) solutions. This collaboration is set to foster a team of Databricks-certified professionals within EXL and introduce new data management and generative AI (GenAI) solutions to the Databricks ecosystem.

The initiative involves EXL leveraging the Databricks Data Intelligence Platform to unify data and AI, assisting clients in utilizing their data for advanced analytics and AI applications. Over the coming months, EXL plans to certify a substantial number of data engineers and scientists in the Databricks environment, which will increase the capacity to serve clients across various industries.

EXL's efforts are particularly focused on sectors such as insurance, banking, and healthcare. In insurance, the partnership will enable clients to analyze claims cycles and detect discrepancies more effectively. For banking, the collaboration aims to unlock insights from unstructured transaction data, enhancing customer lifecycle management. In healthcare, EXL has developed a platform built on Databricks that delivers comprehensive intelligence, enabling rapid big data analysis to detect anomalies and reduce costs while providing personalized care.

Moreover, EXL is introducing the Databricks Migrations solution, which is expected to reduce migration costs and improve efficiency by utilizing EXL Code Harbor™, a GenAI-enabled tool that expedites the migration of legacy codebases to modern, open-source languages.

Vivek Jetley, president and global head of analytics at EXL, expressed enthusiasm about the expanded partnership, stating that it would provide clients with a significant advantage by unlocking the true potential of their data in a cost-effective manner.

This strategic move is anticipated to bolster EXL's offerings in data analytics and AI, further establishing its position in the market. The partnership with Databricks underscores EXL's commitment to investing in talent and solution development to meet the evolving needs of its clients.

The information for this article is based on a press release statement from EXL.

In other recent news, EXLService Holdings, Inc. has reported an 11% year-over-year increase in revenue to $448 million in the second quarter of 2024, alongside an 11% growth in adjusted earnings per share to $0.40. The company has revised its full-year revenue guidance upwards to between $1.805 billion and $1.83 billion, indicating an expected growth of 11% to 12% year-over-year. Additionally, EXLService has secured an additional $200 million in funding, increasing its financial flexibility through an amendment to its existing credit agreement. Jefferies has also upgraded EXLService's stock rating from Hold to Buy, reflecting confidence in the company's financial prospects. In other developments, EXLService has introduced its EXL Insurance LLM, an industry-specific language model aimed at enhancing the efficiency of insurance claims and underwriting processes. The company has also announced the acquisition of ITI Data, a strategic move expected to enhance its data management capabilities and expand its client base. These are recent developments in the company's operations.

InvestingPro Insights

EXL's expanded partnership with Databricks aligns well with its strong financial performance and market position. According to InvestingPro data, EXL has demonstrated robust growth with a revenue of $1709.9M USD in the last twelve months as of Q2 2024, representing a 10.91% increase. This growth trajectory supports the company's ability to invest in strategic partnerships and talent development.

The company's focus on enhancing its data analytics and AI capabilities through the Databricks collaboration is reflected in its solid profitability metrics. EXL boasts a gross profit margin of 37.2% and an operating income margin of 13.88% for the same period, indicating efficient operations and potential for further expansion in high-value services.

InvestingPro Tips highlight that EXL has been profitable over the last twelve months and analysts predict continued profitability this year. This financial stability provides a strong foundation for the company's ambitious plans to certify a large number of data engineers and scientists in the Databricks environment.

The market seems to be recognizing EXL's potential, as evidenced by the stock trading near its 52-week high with a strong return of 20.92% over the last three months. However, investors should note that the stock is trading at a high P/E ratio of 35.14, which may indicate high growth expectations already priced into the stock.

For those interested in a deeper analysis, InvestingPro offers 14 additional tips for EXL, providing a comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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