- Exela Technologies, Inc (NASDAQ:XELA) reported a preliminary first-quarter FY22 revenue decline of 6.9% year-on-year to $279.4 million, missing the consensus of $284.9 million.
- Segments: Revenue for the Information and Transaction Processing Solutions segment declined 11.6% Y/Y to $205 million due to the impact from COVID, transition revenue, staffing shortage, and currency changes.
- Healthcare Solutions' revenue rose 10.8% Y/Y to $56.6 million. Legal and Loss Prevention Services revenue increased 4.1% Y/Y to $17.8 million.
- Margins: The gross margin contracted by 248 bps to 20%. The adjusted EBITDA margin contracted 256 bps to 12.9%.
- EPS loss of $(0.17) missed the consensus loss of $(0.10).
- Exela held $82 million in cash and equivalents. It used $(44) million in operating cash flow.
- TCV won increased to $78 million, up over 131% Y/Y.
- Small-and-Medium-Sized Business continues strong growth with DMR customers growing 39% over 4Q21 and DrySign users growing 200% over 4Q21.
- Price Action: XELA shares traded lower by 18.4% at $0.30 on the last check Tuesday.
