Slide 1: ibex Q1 FY2023 Earnings Call
Built for what’s next. ibex Q1 FY2023 Earnings Call Bob Dechant, CEO November 15, 2022
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 • New client base now • Accelerating mid- • Less than 2-year omnichannel customer by growing CX represents 76% of teens growt
Slide 4: Q1 FY2023 Results & Highlights
Q1 FY2023 Results & Highlights 71% Omni-Channel & Digital-Only $127.9m $18.2m $6.4m $5.2m Adjusted Net Revenue Adj EBITDA FCF Income TTM 17.8% 14.3% $512.9m Revenue Growth (YoY) Adj. EBITDA Margin Revenue – 16% Growth TTM 44.3% 59% Growth of BPO 2.0 Clients $73.6m Adjusted EBITDA Growth (76% of tota
Slide 5: New Logo Engine: Strong Performance Winning Great Brands
New Logo Engine: Strong Performance Winning Great Brands Client Cohort New Client Cohort Data ($m) FY16-FY22 Performance: $140 Year 1 Year 2 Year 3 • 3 New Logo Wins in the Quarter $120 • Significant win with leading HealthCare payer & Leading New $100 Economy brand • 11 Launches in Q1 FY23 $80 • Fi
Slide 6: Powerful Growth with our BPO 2.0 Clients
Powerful Growth with our BPO 2.0 Clients (New Clients since FY16) Revenue Breakdown ($m) $500 BPO 2.0 Clients $450 $400 • Rapid Land & Expand 6 $350 FY1 f rom • Leading Blue-chips & New $300 R in Digital-First brands C AG 69% $250 • 69% CAGR $200 • 44% growth in Q1’23 $150 compared to prior year $10
Slide 7: ibex Culture and Awards
ibex Culture: ibexibex VIP Jamaica Awards 2022 CUSTOMER Magazine Gold Award – Best in BPO Product of the Year Awards Gold Award – Gender Wave X Best Place to Work for Women Julie Casteel - Female Philippines Best Employers Diversity RefleCX in Central America and Executive of the Year, Business 2023
Slide 8: Diverse Base of Elite Clients by Revenue
Diverse Base of Elite Clients by Revenue FinTech and HealthTech: >50 Clients ~$38m Q1 FY23 Q1’23 Client Statistics (% of Revenue) with > $1m in Annual Revenue 53% YoY #1 #1 #1 #1 Top 5 Clients 39% Cloud Based Healthcare & Retail & Global Restaurant Tech Insurance E-commerce Company Top 10 Clients 58
Slide 9: Adjusted EBITDA Margins Comparisons
Adjusted EBITDA Margins Comparisons Q1 Adjusted EBITDA ($m) $20 $18.7m $18.2m $18 • Adjusted EBITDA margin increased +370 bps to 14.3% $16 from prior year quarter $14 • Partnering with clients on $12 $11.5m 15.1% 14.3% Price Increase and COLA to Margin 10.6% Margin offset wage inflation $10 Margin p
Slide 10: FY23 Recap
FY23 Recap Strong results in a challenging environment 17.8% Top Line Growth 14.3% EBITDA 76% of Business Growing at 44% Powerful New Logo Engine Digital-First Business 10
Slide 11: Financial Results
Built for what’s next. Financial Results Karl Gabel CFO
Slide 12: FY Q1 2023: Financial Highlights
FY Q1 2023: Financial Highlights Revenue • Continue to experience high growth in our BPO 2.0 clients $127.9m • Growth in FinTech & HealthTech, Retail & Ecommerce and Travel, +17.8% YoY Transportation & Logistics verticals New From FY16 Client Revenue • Represents 76% of the total revenue (62% in Q1
Slide 13: FY Q1 2023: Financial Highlights – Non-GAAP
FY Q1 2023: Financial Highlights – Non-GAAP Adjusted Net Income Q1 Adjusted EBITDA $6.4m $20.0 Q1 FY22 $0.9m • Stronger operating results driving $19.0 $18.2m +641% YoY net income gains resulting in $18.0 increased adjusted EPS Adjusted Fully Diluted • Partially offset by increased $17.0 Earnings pe
Slide 14: Revenue: Client Concentration
Revenue: Client Concentration Q1 FY23 Client Statistics Q1 FY22 Client Statistics (% of Revenue) (% of Revenue) Top 5 Top 10 Top 5 Top 10 Clients 39% Clients 58% Clients 42% Clients 61% Top 25 Largest Top 25 Largest Clients 84% Client 14% Clients 88% Client 12% 14
Slide 15: Winning in Strategic Verticals
Winning in Strategic Verticals Significant Growth in Key Strategic Verticals Telco Concentration under 20% 9.0% 17.3% Technology 14.5% Telecommunications Technology 21.5% Telecommunications 21.4% 13.0% Travel, Transportation Q1 Retail & E-commerce Q1 17.8% Retail & and Logistics FY23 11.8% FY22 E-co
Slide 16: FY Q1 2023: Cash Flow and CAPEX
FY Q1 2023: Cash Flow and CAPEX Net Cash Generated from Operations • Stronger operating results $8.8m • Partially offset by an increased use of working capital Q1 FY22 $6.9m DSO 59 Days • DSO’s well below industry average Q1 FY22 63 days Q4 FY22 55 days Capital Expenditures • We hit the inflection p
Slide 17: September 2022 Balance Sheet
September 2022 Balance Sheet Cash and Cash Equivalents • Borrowing availability under our revolving credit $42.9m facilities was $56.7m at September 2022 v. $50.5m (June 30, 2022 $48.8m) at June 2022 Borrowing and Lease Liabilities • Borrowings $7.7m ($15.0m as of June 30, 2022) $88.9m • Lease liabi
Slide 18: FY23 Guidance
FY23 Guidance Revenue $545m - $555m 11.4% Growth at Midpoint Adjusted EBITDA $77m - $79m 14.2% Margin at Midpoint Capex: $18m - $22m 18
Slide 19: Investment Thesis
Investment Thesis Compelling Vision Large TAM & Track-Record & Strong Financials Capital Allocation Competitive Moats Transformation • Mission-critical, • $100B TAM supported • New client base now • Accelerating mid- • Less than 2-year omnichannel customer by growing CX represents 76% of teens growt
Slide 20: Q&A
Built for what’s next. Q&A
Slide 21: Appendix
Built for what’s next. Appendix
Slide 22: Reconciliation of Net Income/(Loss) to Adjusted Net Income
Reconciliation of Net Income/(Loss) to Adjusted Net Income Three months Twelve months ended ended September 30 June 30 FY21 primarily includes the COVID-19 transportation US$ in thousands, except share and per share amounts 2022 2021 2022 2021 related expenses A FY22 includes COVID-19 transportation
Slide 23: Reconciliation of Net Income /(Loss) to Adjusted EBITDA
Reconciliation of Net Income /(Loss) to Adjusted EBITDA Three months Twelve months ended ended September 30 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) $ 4