Ibex Limited · NASDAQ:IBEX
Ibex — Q3 2023 Earnings Presentation
22 slides from Ibex's earnings presentation, May 17, 2023
Slide 1: ibex Q3 FY2023 Earnings Call
Built for what’s next. ibex Q3 FY2023 Earnings Call Bob Dechant, CEO May 17, 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: Compelling Track Record of Transformation and Execution
Compelling Track Record of Transformation and Execution Strong Financial Profile 18.5% $1.98 Growth of Key Segments, Strong Ebitda, Net income, FCF, EPS Adj Ebitda Q3 FY23 TTM Adj. EPS Transformation to a leading Digital First & Analytics driven business 12.3% 78% Profitable Digital First BPO 2.0 cl
Slide 4: Q3 FY2023 Results & Highlights
Q3 FY2023 Results & Highlights Strong Results Throughout the P&L $131.6m $24.4m $11.3m Revenue Adj. EBITDA Adj. Net Income 8.4% 18.5% $13.4m Normalized Growth Adj. EBITDA Margin FCF (YoY)1 1.9% 30% $0.59 Revenue Growth (YoY) Adj. EBITDA Growth Adj. EPS 1 Adjusting for exit of Legacy unprofitable cli
Slide 5: Powerful Growth with our Digital First BPO 2.0 Clients
Powerful Growth with our Digital First BPO 2.0 Clients BPO 2.0 Clients Revenue Breakdown ($m) Leading Blue-chips & Digital and $450 Analytics-First brands $400 lie nts $350 C O 2.0 ✚ Primarily Digital & Integrated P ur B $300 in o Omni-Channel Support (73%) $250 AG R C $200 68% ✚ ibex WaveX Tech Sta
Slide 6: New Logo Engine: Strong Performance Winning Great Brands
New Logo Engine: Strong Performance Winning Great Brands Client Cohort New Client Cohort Data ($m) FY19-FY23 Performance: $100 Year 1 Year 2 Year 3 • Strong Pipeline with high profile $90 clients across key verticals $80 • Key New Logos won or launched YTD $70 o Top HealthCare payer $60 o Leading He
Slide 7: Significant Shift in our Geographical Makeup to more profitable mix
Significant Shift in our Geographical Makeup to more profitable mix Geographic Mix Change Q3 FY23(A) REVENUE MIX: 200.0 Total US Total Offshore Total Nearshore ROW 180.0 9% 160.0 140.0 120.0 28% 100.0 80.0 60.0 30% 40.0 20.0 0.0 Total US Total Offshore Total Nearshore ROW FY21 FY22 FY23 33% These nu
Slide 8: Unparalleled Culture
Unparalleled Culture iVoice 2023 Global Results iVoice Global 68 Employee NPS 85% Global Rate Participation 79 eNPS in Philippines Philippines 93% Participation Rate1 68 Client NPS 1Philippines is our largest region 8
Slide 9: Compelling Track Record of Transformation and Execution
Compelling Track Record of Transformation and Execution Strong Financial Profile 18.5% $1.98 Growth of Key Segments, Strong Ebitda, Net income, FCF, EPS Adj Ebitda Q3 FY23 TTM Adj. EPS Transformation to a leading Digital First & Analytics driven business 12.3% 78% Profitable Digital First BPO 2.0 cl
Slide 10: Guidance
Guidance Guidance Prior Guidance FY22 Revenue $523-$527m $545-$555m $493.6m Adj. Ebitda $88-$90m $82-$84m $66.8m CapEx $19m $18-$22m $25.9m • Strong Ebitda Growth in FY23 • Double Digital growth of BPO 2.0 clients into higher margin regions • Improvements in US region margins with site rationalizati
Slide 11: Financial Results
Built for what’s next. Financial Results Karl Gabel CFO
Slide 12: FY Q3 2023: Financial Highlights
FY Q3 2023: Financial Highlights Revenue • 12.3% YoY growth of BPO 2.0 clients, now 78% of total revenue (70% $131.6m in Q3 FY22) +1.9% YoY • Lower onshore revenues +8.4% YoY1 • Macro-Economic impact on Sales cycle and client volumes Net Income Stronger operating results: Net Income +77% from prior
Slide 13: FY Q3 2023: Financial Highlights – Non-GAAP
FY Q3 2023: Financial Highlights – Non-GAAP • +30% from prior year quarter Q3 Adjusted EBITDA • Growth and profitability in our BPO $26.0 2.0 clients in higher margin regions $24.4m Adjusted EBITDA $24.0 $24.4m Q3 FY23 • Partnering with clients on Price Increase and COLA to offset wage 0% $18.8m Q3
Slide 14: Revenue: Model Client Diversification
Revenue: Model Client Diversification Q3 FY23 Client Statistics Q3 FY22 Client Statistics (% of Revenue) (% of Revenue) Top 5 Top 10 Top 5 Top 10 37.6% Clients 55.7% 38.5% Clients 55.6% Clients Clients Top 25 Largest Top 25 Largest Clients 79.7% Client 12.0% Clients 83.9% Client 12.0% 14
Slide 15: Winning in Strategic Verticals
Winning in Strategic Verticals Significant Growth in Key Strategic Verticals Telco Concentration under 20% 9.2% 14.7% 16.2% Technology 17.1% Technology Telecommunications Telecommunications 22.0% 10.7% Travel, Transportation Q3 Retail & E-commerce 12.9% Q3 18.6% Retail & and Logistics FY23 Travel, T
Slide 16: FY Q3 2023: Cash Flow and CAPEX
FY Q3 2023: Cash Flow and CAPEX Net Cash Generated from Operations $17.2m Q3 FY23 • Expanded Adjusted EBITDA $12.0m Q3 FY22 DSO 63 days Q3 FY23 • DSOs below industry average 60 days Q3 FY22 61 days Q2 FY23 Capital Expenditures • Capex down as we utilize our available capacity built out $3.8m, 2.9% o
Slide 17: March 2023 Balance Sheet
March 2023 Balance Sheet • Decrease driven by paying down debt Cash and Cash Equivalents • Increase in borrowing availability under our $43.7m revolving credit facilities to $77.6m as of March June 30, 2022 $48.8m 2023 v. $50.5m as of June 2022 • Borrowings down to $0.1m ($15.0m as of June Borrowing
Slide 18: Guidance
Guidance Guidance Prior Guidance FY22 Revenue $523-$527m $545-$555m $493.6m Adj. Ebitda $88-$90m $82-$84m $66.8m CapEx $19m $18-$22m $25.9m • Strong Ebitda Growth in FY23 • Double Digital growth of BPO 2.0 clients into higher margin regions • Improvements in US region margins with site rationalizati
Slide 19: Q&A
Built for what’s next. Q&A
Slide 20: Appendix
Built for what’s next. Appendix
Slide 21: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income Three months ended Twelve months ended 31-Mar 30-Jun Represents US GAAP transition expense, severance US$ in thousands 2023 2022 2022 2021 A expense, litigation and settlement expenses, costs related to COVID-19, and/or listing costs Net income $ 1
Slide 22: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months ended Twelve months ended 31-Mar 30-Jun US$ in thousands 2023 2022 2022 2021 Represents US GAAP transition expense, severance expense, litigation and settlement A expenses, costs related to COVID-19, and/or listing costs Net income $ 11,70