WNS Clocks 8% Revenue Growth In Q3 Aided By Client Additions, Travel Volumes, Acquisitions; Boosts FY23 Guidance

WNS (Holdings) Ltd (NYSE: WNS) reported third-quarter FY23 non-GAAP revenue growth of 8% year-on-year to $306.9 million.
Revenue-less repair payments were $292.9 million, up 12.2% Y/Y, beating the consensus of $290.7 million.
New client additions, expanding existing relationships, increased travel volumes, and acquisitions of Vuram, OptiBuy, and The Smart Cube drove the growth.
WNS added 11 new clients in the quarter and expanded 24 existing relationships.
Non-GAAP gross margin expanded by 40 bps to 37.8%. Non-GAAP operating margin expanded by 50 bps to 21.9%.
Adjusted earnings per ADS of $1.01 beat the consensus of $0.97.
WNS held $249.8 million in cash and investments and generated $70.3 million in operating cash flow.
WNS incurred $11.4 million in capital expenditures.
FY23 Outlook: WNS expects Revenue less repair payments of $1.146 billion - $1.158 billion, up from the prior guidance of $1.110 billion - $1.150 billion.
WNS lifted FY23 adjusted earnings per ADS guidance to $3.82 - $3.89, up from the prior guidance of $3.68 - $3.87.
WNS expects capital expenditures of up to $42 million.
Price Action: WNS shares closed lower by 0.70% at $83.41 on Wednesday.