WNS Announces Fiscal 2025 Third Quarter Earnings, Revises Full Year Guidance

Mumbai, Maharashtra, India & London, United Kingdom & New York, United States – Business Wire India WNS (Holdings) Limited (WNS) (NYSE: WNS), a digital-led business transformation and services partner, today announced results for the fiscal 2025 third quarter ended December 31, 2024.

Highlights – Fiscal 2025 Third Quarter: GAAP Financials • Revenue of $333.0 million, up 2.1% from $326.2 million in Q3 of last year and up 3.2% from $322.6 million last quarter • Profit of $48.6 million, compared to $41.5 million in Q3 of last year and $41.8 million last quarter • Diluted earnings per share of $1.07, compared to $0.85 in Q3 of last year and $0.92 last quarter Non-GAAP Financial Measures* • Revenue less repair payments of $319.1 million, up 1.0% from $315.9 million in Q3 of last year and up 2.7% from $310.7 million last quarter • Adjusted Net Income (ANI) of $47.0 million, compared to $58.5 million in Q3 of last year and $51.5 million last quarter • Adjusted diluted earnings per share of $1.04, compared to $1.19 in Q3 of last year and $1.13 last quarter Other Metrics • Added 7 new clients in the quarter, expanded 52 existing relationships • Days sales outstanding (DSO) at 34 days • Global headcount of 63,390 as of December 31, 2024 As announced previously, beginning the first quarter of fiscal 2025, WNS transitioned from reporting to the SEC on the forms available to foreign private issuers and preparing its financial statements in accordance with IFRS to voluntarily reporting on US domestic issuer forms and preparing its financial statements in accordance with US GAAP. On July 9, 2024, WNS furnished a report on Form 8-K with the SEC containing a supplementary financial information package comprising its unaudited quarterly financial results for each of the quarters in fiscal 2024 and for full year fiscal 2024 and 2023 prepared in accordance with US GAAP. The supplementary financial information package sets forth the key impact on our quarterly financial statements for each of the quarters in fiscal 2024 and for full year fiscal 2024 and 2023 as a result of our transition to US GAAP. The comparative financial information in this release for the previous fiscal periods are also under US GAAP.

Reconciliations of the non-GAAP financial measures discussed below to our GAAP operating results are included at the end of this release. See also “About Non-GAAP Financial Measures.” Revenue in the third quarter was $333.0 million, representing a 2.1% increase versus Q3 of last year and an increase of 3.2% from the previous quarter. Revenue less repair payments* in the third quarter was $319.1 million, increasing 1.0% year-over-year and 2.7% sequentially. Excluding exchange rate impacts, constant currency revenue less repair payments* in the fiscal third quarter was flat versus Q3 of last year and up 3.2% sequentially. Year-over-year, Q3 revenue growth driven by new client additions, the expansions of existing relationships, and favorable currency movements more than offset headwinds from the loss of a large Healthcare client, lower volumes in the online travel segment, and reductions in discretionary project work. Sequentially, broad-based revenue growth was partially offset by online travel volume reductions and unfavorable currency movements.

Profit in the fiscal third quarter was $48.6 million, as compared to $41.5 million in Q3 of last year and $41.8 million in the previous quarter. Year-over-year, profit increased as a result of a $13.7 million reversal of contingent consideration relating to our acquisition of The Smart Cube, reductions in share-based compensation and amortization of intangibles, and favorable currency movements. These benefits were partially offset by $9.5 million of non-recurring tax benefits in Q3 of fiscal 2024 and higher net interest expense. Sequentially, Q3 profit increased as a result of a net increase in contingent consideration reversals, higher revenue, and operating margin expansion. These benefits were partially offset by a one-time tax benefit in Q2 from the reversal of a deferred tax liability on intangibles.

Adjusted net income (ANI)* in Q3 was $47.0 million, as compared to $58.5 million in Q3 of last year and $51.5 million in the previous quarter. Explanations for the ANI* movements on a year-over-year and sequential basis are the same as described for GAAP profit above with the exception of amortization of intangible expenses, share-based compensation expense, impairment of intangible assets, costs associated with ADS program termination and transition to voluntarily reporting on US domestic issuer forms, acquisition-related items, and associated tax impacts which are excluded from ANI*.

From a balance sheet perspective, WNS ended Q3 with $231.5 million in cash and investments and $199.6 million in debt. In the quarter, the company generated $88.7 million in cash from operations, incurred $12.1 million in capital expenditures, and repaid $58.4 million in debt. Third quarter days sales outstanding were 34 days, as compared to 35 days reported in Q3 of last year and 38 days in the previous quarter.

“In the fiscal third quarter, WNS was able to re-accelerate sequential revenue growth, expand adjusted operating margin, and generate strong cash flow. Top line growth was driven by broad-based demand for domain-led process automation and cost reduction, including new logo additions and the expansion of existing client relationships,” said Keshav Murugesh, WNS’ Chief Executive Officer. “We continue to make solid progress moving large transformational opportunities through the pipeline, and are focused on closing these large deals to help accelerate revenue growth. In addition, WNS remains committed to our ongoing investments in domain expertise, data and analytics, and technology-enabled offerings leveraging AI and GenAI to ensure our ability to deliver long-term sustainable value to all of our stakeholders.” Fiscal 2025 Guidance WNS is updating guidance for the fiscal year ending March 31, 2025, as follows: • Revenue less repair payments* is expected to be between $1,255 million and $1,271 million, as compared to $1,284.3 million in fiscal 2024. Guidance assumes an average GBP to USD exchange rate of 1.25 for the remainder of fiscal 2025.

• ANI* is expected to range between $205 million and $209 million versus $218.0 million in fiscal 2024. Guidance assumes an average USD to INR exchange rate of 85.5 for the remainder of fiscal 2025.

• Based on a diluted share count of 45.9 million shares, the company expects fiscal 2025 adjusted diluted earnings per share* to be in the range of $4.46 to $4.55 versus $4.42 in fiscal 2024.

“The company has updated our forecast for fiscal 2025 based on current visibility levels and exchange rates,” said Arijit Sen, WNS’ Chief Financial Officer. “Our guidance for the full year reflects revenue less repair payments* of -2% to -1% on a reported* basis, and -3% to -1% on a constant currency* basis as compared to fiscal 2024. ANI guidance includes a one-time benefit in Q4 of $12.2 million relating to a facility asset sale in India. For the year, we currently expect capital expenditures to be up to $60 million.” * See “About Non-GAAP Financial Measures” and the reconciliations of the historical non-GAAP financial measures to our GAAP operating results at the end of this release.

Conference Call WNS will host a conference call on January 23, 2025, at 8:00 am (Eastern) to discuss the company's quarterly results. To access the call in “listen-only” mode, please join live via the company’s investor relations website at ir.wns.com. For call participants, please register using this online form to receive your dial-in number and unique PIN/passcode which can be used to access the call. A replay of the webcast will be archived on the company website at ir.wns.com.

About WNS WNS (Holdings) Limited (NYSE: WNS) is a digital-led business transformation and services partner. WNS combines deep domain expertise with talent, technology, and AI to co-create innovative solutions for over 600 clients across various industries. WNS delivers an entire spectrum of solutions including industry-specific offerings, customer experience services, finance and accounting, human resources, procurement, and research and analytics to re-imagine the digital future of businesses. As of December 31, 2024, WNS had 63,390 professionals across 66 delivery centers worldwide including facilities in Canada, China, Costa Rica, India, Malaysia, the Philippines, Poland, Romania, South Africa, Sri Lanka, Turkey, the United Kingdom, and the United States. For more information, visit www.wns.com.

Safe Harbor Statement This release contains forward-looking statements, as defined in the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations and assumptions about our Company and our industry. Generally, these forward-looking statements may be identified by the use of terminology such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “seek,” “should” and similar expressions. These statements include, among other things, expressed or implied forward-looking statements relating to discussions of our strategic initiatives and the expected resulting benefits, our growth opportunities, industry environment, our expectations concerning our future financial performance and growth potential, including our fiscal 2025 guidance, estimated capital expenditures, and expected foreign currency exchange rates. Forward-looking statements inherently involve 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 worldwide economic and business conditions, our dependence on a limited number of clients in a limited number of industries; currency fluctuations; political or economic instability in the jurisdictions where we have operations; regulatory, legislative and judicial developments; increasing competition in the BPM industry; technological innovation; our liability arising from fraud or unauthorized disclosure of sensitive or confidential client and customer data; telecommunications or technology disruptions; our ability to attract and retain clients; negative public reaction in the US or the UK to offshore outsourcing; our ability to collect our receivables from, or bill our unbilled services to our clients; our ability to expand our business or effectively manage growth; our ability to hire and retain enough sufficiently trained employees to support our operations; the effects of our different pricing strategies or those of our competitors; our ability to successfully consummate, integrate and achieve accretive benefits from our strategic acquisitions, and to successfully grow our revenue and expand our service offerings and market share; future regulatory actions and conditions in our operating areas; our ability to manage the impact of climate change on our business; and volatility of our share price. These and other factors are more fully discussed in our most recent annual report on Form 20-F and subsequent reports on Form 6-K and Form 8-K filed with or furnished to the US Securities and Exchange Commission (SEC) which are available at www.sec.gov. We caution you not to place undue reliance on any forward-looking statements. Except as required by law, we do not undertake to update any forward-looking statements to reflect future events or circumstances.

References to “$” and “USD” refer to the United States dollars, the legal currency of the United States; references to “GBP” refer to the British pound, the legal currency of Britain; and references to “INR” refer to Indian Rupees, the legal currency of India. References to GAAP or US GAAP refer to United States generally accepted accounting principles. References to IFRS refer to International Financial Reporting Standards, as issued by the International Accounting Standards Board.

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