Ibex Limited · NASDAQ:IBEX
Ibex — Q4 2024 Earnings Presentation
22 slides from Ibex's earnings presentation, Sep 12, 2024
Slide 1: ibex Q4 FY2024 Earnings Call
Built for what’s next. ibex Q4 FY2024 Earnings Call Bob Dechant, CEO Sept 12, 2024
Slide 2: Disclaimer
Built for what’s next. Disclaimer This presentation includes forward-looking statements within the meaning of the Private Securities This presentation also contains estimates and other statistical data made by independent parties Litigation Reform Act of 1995. All statements contained in this presen
Slide 3: Compelling Track Record of Transformation and Execution
Compelling Track Record of Transformation and Execution Strong Financial Profile 12.8% $2.10 Growth of Key Segments, Strong EBITDA, Net income, FCF, EPS FY24 Adj. EBITDA FY24 Adj. EPS Transformation to a leading Digital First business 3% 78% Continue growth in our Digital First integrated omni-chann
Slide 4: FY2024: Key Business Highlights
FY2024: Key Business Highlights ✓ Won 18 new client relationships in the fiscal year – up from 10 in prior year ✓ Achieved record EPS $2.10 - up from $1.96 in prior year ✓ Continued growth in offshore & nearshore to 77% of revenue in Q4 - up from 74% in prior year ✓ Record free cash flow of $27.0 mi
Slide 5: Key Business Highlights since Post IPO
Key Business Highlights since Post IPO FY20 FY24 Variance Revenue $405m $509m ~25% Adj. EBITDA $39m 1 $65m ~65% Adj. EBITDA Margin 9.7%1 12.8% +310 bps Cash $22m $63m +$41m Debt $38m 1 $2m -$37m Net (Debt)/Cash ($16m)1 $61m +$77m Clients with >$1m in 32 55 +23 revenue per annum Digital First integra
Slide 6: Q4 FY2024: Financial Highlights
Q4 FY2024: Financial Highlights • Revenues: $124.5m up slightly from prior year ($124.4m) • Adjusted EBITDA: $17.9m up from $15.4 Prior Year Strong Financials • Adjusted EBITDA margin: 14.4% up from 12.4% • Adjusted EPS: $0.58 up 76% from $0.33 • Digital First/ Integrated Omni Channel up to 77% from
Slide 7: Financial Results
Built for what’s next. Financial Results Taylor Greenwald CFO
Slide 8: Q4 FY2024: Financial Highlights – US GAAP
Q4 FY2024: Financial Highlights – US GAAP Record Q4 Revenue, Adj. EBITDA, Net Income and EPS results • Digital and Omni-Channel delivery represent 77% of total revenue (75% in Q4 Revenue FY23) $124.5m Q4 FY24 vs. • Shift in Geo Mix - high margin regions represent 77% of total revenue (74% in $124.4m
Slide 9: Q4 FY2024: Financial Highlights – Non-GAAP
Q4 FY2024: Financial Highlights – Non-GAAP Q4 YoY Adjusted EBITDA and margin Adjusted EBITDA $18.0 $17.9m 15.0% $17.9m Q4 FY24 vs. 14.4% $15.4m Q4 FY23 Primarily driven by: Margin 14.5% $16.0 $15.4m 14.0% • Growth of work in higher margin offshore locations 13.5% Adjusted Net Income $14.0 $10.2m Q4
Slide 10: Revenue: Model Client Diversification
Revenue: Model Client Diversification Q4 FY24 Client Statistics (% of Revenue) Top 5 Clients 36.4% 52.4% Top 10 Clients Top 25 Clients 77.6% 11.5% Largest Client 55 clients > $1M in revenue per annum 27 clients > $5M in revenue per annum 10
Slide 11: Winning in Strategic Verticals
Winning in Strategic Verticals Continued Growth in HealthTech and Retail & E-commerce Q4 FY23 Q4 FY24 30.0% 25.0% 24.0% 22.3% 20.0% 16.5% 14.8% 15.1% 14.5% 15.0% 13.5% 13.9% 13.7% 12.4% 11.0% 10.4% 10.0% 9.2% 8.7% 5.0% 0.0% Retail & E-commerce Travel, Transportation Telecommunications Health Tech Fi
Slide 12: FY2024: Financial Highlights – US GAAP
FY2024: Financial Highlights – US GAAP • Shift in Geo Mix - high margin regions represent 76% of total revenue (72% in FY23) Revenue • Macroeconomic conditions, and external factors impacting the FinTech and $508.6m FY24 vs. Telecommunication verticals, partially offset by growth in the Retail & E-
Slide 13: FY2024: Financial Highlights – Non-GAAP
FY2024: Financial Highlights – Non-GAAP FY YoY Adjusted EBITDA and margin Adjusted EBITDA $70.0 $66.6m $65.2m $65.2m FY24 vs. Primarily driven by: 13.0% $66.6m FY23 $60.0 • The site optimization efforts completed in the fourth quarter of $50.0 12.8% fiscal 2024 Margin 12.8% $40.0 Adjusted Net Income
Slide 14: FY 2024: Cash Flow and CapEx
FY 2024: Cash Flow and CapEx Net Cash Generated from Operations Capital Expenditures $35.9m FY24 $8.9m, 1.7% of Revenue FY24 $41.9m FY23 $19.0m, 3.6% of Revenue FY23 DSO 72 days Q4 FY24 Non-GAAP Free Cash Flow 74 days Q3 FY24 $27.0m FY24 63 days Q4 FY23 $22.9m FY23 14
Slide 15: June 2024 Balance Sheet
June 2024 Balance Sheet Cash and Cash Equivalents • FY24 share repurchases of $21.7m (1.3m shares) $62.7m • Q4 share repurchases of $3.1m (0.2m shares) June 30, 2023, $57.4m Total Debt • Net Cash position of $61.2m from $56.4m as of ~$1.5m June 30, 2023 June 30, 2023, $1.0m 15
Slide 16: Q1 & Full Year 2025 Guidance
Q1 & Full Year 2025 Guidance Q1 FY25 FY25 $124-126m $510-525m Revenue $14.5-15.5m $67-69m Adj. EBITDA Guidance not provided $15-20m CapEx 16
Slide 17: Compelling Track Record of Transformation and Execution
Compelling Track Record of Transformation and Execution Strong Financial Profile 12.8% $2.10 Growth of Key Segments, Strong EBITDA, Net income, FCF, EPS FY24 Adj. EBITDA FY24 Adj. EPS Transformation to a leading Digital First business 3% 78% Continue growth in our Digital First integrated omni-chann
Slide 18: Q&A
Built for what’s next. Q&A
Slide 19: Appendix
Built for what’s next. Appendix
Slide 20: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income Three months ended Twelve months ended 30-June 30-June US$ in thousands, except per share amounts, unaudited 2024 2023 2024 2023 Net income $ 9,845 $ 4,510 $ 33,655 $ 31,582 Net income margin 7.9% 3.6% 6.6% 6.0% Non-recurring expenses 0 1,348 0 2,2
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months ended Twelve months ended 30-June 30-June US$ in thousands 2024 2023 2024 2023 Net income $ 9,845 $ 4,510 $ 33,655 $ 31,582 Net income margin 7.9% 3.6% 6.6% 6.0% Interest expense 175 239 514 792 Income tax expense 3,391 3,806 7,331 8,744 D
Slide 22: Big Year for Industry Awards – 2023/24
Big Year for Industry Awards – 2023/24 2024 Technological 2024 Golden Bridge Business 2024 North America Top 2024 Top Customer Service 2024, 2023 & 2022 Contact Breakthrough of the Year – and Innovation Awards for 100 Inspiring Workplace Outsourcing Provider for Center Technology Award Artificial In