Slide 1: ibex Q2 FY2023 Earnings Call
Built for what’s next. ibex Q2 FY2023 Earnings Call Bob Dechant, CEO February 15, 2023
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 and Litigation Reform Act of 1995. All statements contained in this pr
Slide 3: Investment Thesis
Investment Thesis Compelling Vision Large TAM & Track-Record & Strong Financials Capital Allocation Competitive Moats Transformation • Mission-critical, • $100B TAM supported • BPO 2.0 higher margin • Accelerating BPO 2.0 • Less than 2-year omnichannel customer by growing CX client base now top-line
Slide 4: Q2 FY2023 Results & Highlights
Q2 FY2023 Results & Highlights 73% Omni-Channel & Digital-Only $139.4m $25.1m $11.7m Revenue Adj EBITDA Adjusted Net Income 5.5% TTM Revenue Growth (YoY) 18.0% $520.1m 12.6% Adj. EBITDA Margin Revenue – 13.4% Growth Normalized Growth (YoY) TTM 16.9% 40% Growth of BPO 2.0 Clients $80.8m Adjusted EBIT
Slide 5: New Logo Engine: Strong Performance Winning Great Brands
New Logo Engine: Strong Performance Winning Great Brands Client Cohort New Client Cohort Data ($m) FY16-FY22 Performance: $140 Year 1 Year 2 Year 3 • 4 New Logo Wins in the $120 Quarter • 7 New Logo Wins YTD $100 • Strong Pipeline at ~$400m o +40% from prior year $80 • Extremely high win rate, well
Slide 6: Powerful Growth with our BPO 2.0 Clients
Powerful Growth with our BPO 2.0 Clients (New Clients since FY16) Revenue Breakdown ($m) BPO 2.0 Clients $450 $400 • Leading Blue-chips & Digital-First brands $350 FY16 • 68% CAGR $300 fro m ew • 17% growth in Q2’23 R in N $250 C AG compared to prior year $200 68% • 77% of Total Revenues $150 • 73%
Slide 7: Adjusted EBITDA Margins Comparisons
Adjusted EBITDA Margins Comparisons Q2 Adjusted EBITDA ($m) $26 $25.1m $24 • Adjusted EBITDA margin increased +450 bps to 18.0% $22 from prior year quarter with 40.5% growth $20 18.0% • Partnering with clients on $18.2m $17.8m Margin Price Increase and COLA to $18 offset wage inflation $16 pressures
Slide 8: Commitment to ESG
Commitment ibex Culture: to ESG ibex VIP Jamaica Leadership in Diversity & Inclusion
Slide 9: FY23 Outlook & Recap
FY23 Outlook & Recap Raise Adjusted EBITDA Guidance 12.6% Top-Line Growth on Normalized basis 18.0% Adjusted EBITDA 77% of Business Growing at 17% Powerful New Logo Engine Strong Balance Sheet Top Performing Leadership Team 9
Slide 10: Financial Results
Built for what’s next. Financial Results Karl Gabel CFO
Slide 11: FY Q2 2023: Financial Highlights
FY Q2 2023: Financial Highlights Revenue • Continue to experience high growth in our BPO 2.0 clients $139.4m • Growth in FinTech & HealthTech and Retail & Ecommerce verticals +5.5% YoY • 12.6% growth on normalized basis excluding the exited legacy client BPO 2.0 Client Revenue • Represents 77% of th
Slide 12: FY Q2 2023: Financial Highlights – Non-GAAP
FY Q2 2023: Financial Highlights – Non-GAAP Q2 Adjusted EBITDA Adjusted EBITDA $26.0 $25.1m $25.1m or 18.0% Margin $24.0 (Q2 FY22 $17.8 or 13.5%) • Stronger operating performance in the business $22.0 $20.0 Adjusted Net Income • Growth and profitability in our BPO $11.7m 2.0 Clients $18.0 $17.8m Q2
Slide 13: Revenue: Model Client Diversification
Revenue: Model Client Diversification Q2 FY23 Client Statistics Q2 FY22 Client Statistics (% of Revenue) (% of Revenue) Top 5 Top 10 Top 5 Top 10 40.8% Clients 58.8% 41.3% Clients 61.0% Clients Clients Top 25 Largest Top 25 Largest Clients 82.3% Client 13.5% Clients 86.1% Client 11.7% 13
Slide 14: Winning in Strategic Verticals
Winning in Strategic Verticals Significant Growth in Key Strategic Verticals Telco Concentration under 20% 8.7% 15.0% 16.7% Technology 17.3% Technology Telecommunications Telecommunications 26.9% 11.4% Travel, Transportation Q2 Retail & E-commerce 15.2% Q2 22.0% Retail & and Logistics FY23 Travel, T
Slide 15: FY Q2 2023: Cash Flow and CAPEX
FY Q2 2023: Cash Flow and CAPEX Net Cash Generated from Operations • Expanded Adjusted EBITDA $8.3m • Partially offset by an increased use of working capital Q2 FY22 $3.4m DSO 61 Days • DSO’s well below industry average Q2 FY22 62 days Q1 FY23 59 days Capital Expenditures • Capex down as we utilize
Slide 16: December 2022 Balance Sheet
December 2022 Balance Sheet • Decrease driven by paying down debt Cash and Cash Equivalents • Increase in borrowing availability under our $38.1m revolving credit facilities to $71.1m as of December June 30, 2022 $48.8m 2022 v. $50.5m as of June 2022 • Borrowings down to $4.5m ($15.0m as of June Bor
Slide 17: FY23 Guidance
FY23 Guidance Adjusted EBITDA - Raised $82m - $84m 15.1% Margin at Midpoint Revenue - Reaffirmed $545m - $555m 11.4% Growth at Midpoint Capex - Reaffirmed $18m - $22m 17
Slide 18: Investment Thesis
Investment Thesis Compelling Vision Large TAM & Track-Record & Strong Financials Capital Allocation Competitive Moats Transformation • Mission-critical, • $100B TAM supported • BPO 2.0 higher margin • Accelerating BPO 2.0 • Less than 2-year omnichannel customer by growing CX client base now top-line
Slide 19: Q&A
Built for what’s next. Q&A
Slide 20: Appendix
Built for what’s next. Appendix
Slide 21: Reconciliation of Net Income/(Loss) to Adjusted Net Income
Reconciliation of Net Income/(Loss) to Adjusted Net Income Three months Twelve months ended ended December 31 June 30 FY21 primarily includes the COVID-19 transportation US$ in thousands, except share and per share amounts 2022 2021 2022 2021 related expenses A FY22 includes COVID-19 transportation,
Slide 22: Reconciliation of Net Income/(Loss) to Adjusted EBITDA
Reconciliation of Net Income /(Loss) to Adjusted EBITDA Three months Twelve months ended ended December 31 June 30 FY21 primarily includes the COVID-19 transportation US$ in thousands 2022 2021 2022 2021 related expenses A FY22 includes COVID-19 transportation, severance and Net income / (loss) $ 1,