Slide 1: ibex FY2022 Earnings Call
Built for what’s next. ibex FY2022 Earnings Call Bob Dechant, CEO Sept 22, 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 • Continued double- • Less than 2-year omnichannel customer by growing CX represents 74% of digit growt
Slide 4: ibex Today: Q4 and FY2022 Results
ibex Today: Q4 and FY2022 Results Strong Fiscal Year 2022 Results Q4 FY2022 Results $493.6m $66.8m $123.7m Record Revenue Revenue Adj EBITDA ~13.6% 11.2% 13.5% YoY Q4 Revenue Growth Revenue Growth (YoY) Adj. EBITDA Margin $18.7m $24.2m $1.32 Adj. EBITDA Free Cash Flow EPS 15.1% (+50 bps) Adj. EBITDA
Slide 5: ibex leads the market in BPO 2.0
ibex leads the market in BPO 2.0 Call center outsourcing Omni-channel contact center outsourcing BPO 1.0 Clients seek to minimize cost and benefit from economies of scale BPO 2.0 Clients seek to maximize customer lifetime value and brand experience cost effectively Offshore locations are a Offshore
Slide 6: Powerful Growth with our BPO 2.0 Clients
Powerful Growth with our BPO 2.0 Clients (New Clients since FY16) Revenue Breakdown ($m) New Clients Won $400 since FY16 $350 • 43% growth in Q4’22 $300 6 FY1 f rom • 74% of Total Revenues $250 New R in C AG • Digitally Focused 78% $200 Brands $150 • Integrated Omni- $100 Channel Support • Wave X an
Slide 7: New Logo Engine: Strong Performance Winning Great Brands
New Logo Engine: Strong Performance Winning Great Brands Client Cohort New Client Cohort Data ($m) FY16-FY22 Performance: $140 Year 1 Year 2 Year 3 • 4 New Logo Wins in the $120 Quarter • 23 New Logo Wins Year to $100 Date • Significant wins in HealthTech $80 • FinTech and HealthTech ~100% $60 Growt
Slide 8: Diverse Base of Elite Clients by Revenue
Diverse Base of Elite Clients by Revenue FinTech and HealthTech: ~50 Clients ~$128m FY22 Q4’22 Client Statistics (% of Revenue) with > $1m in Annual Revenue 2x YoY #1 #1 #1 #1 Top 5 Clients 37% Cloud Based Millennial Trading Retail & Global Restaurant Tech App E-commerce Company Top 10 Clients 55% #
Slide 9: ibex Culture: ibex VIP Jamaica
ibex Culture: ibex VIP Jamaica 71 Employee NPS 65 Client NPS Best-in-Class Retention Best Place to Work Central America and the Caribbean 2021 Best Place to Work for Women in Central America and the Caribbean 2021
Slide 10: Adjusted EBITDA Margins Comparisons & FCF
Adjusted EBITDA Margins Comparisons & FCF Q4 Adjusted EBITDA ($m) • Adjusted EBITDA Margin $20 $18.8m $18.7m increase to 15.1% from 14.6% in $18 Q3 FY22 and $2.9m higher $16 $15.9m from Q4 FY21 $14 • Adjusted EBITDA margin +50 bps to prior year quarter and $12 14.6% 14.6% 15.1% sequential Margin Mar
Slide 11: Capital Allocation
Capital Allocation Strong Revolver Strategic Site Opportunistic Balance Availability Expansion M&A Sheet Completed $48.8m Cash $50.5m Lower CapEx requirements going forward* Positioned for Strong FCF *Due to removal of social distancing requirements 11
Slide 12: FY23 Guidance
FY23 Guidance Revenue Growth Accelerating 74% 14% Q4 of our business is growing at a 19% Q3 high double-digit rate 13% Q2 Revenue Adjusted EBITDA $545m - $555m $77m - $79m 11.4% Growth at Midpoint 14.2% Margin at Midpoint Capex: $18m - $22m Q1 FY23: Revenue: $124m - $127m (15.6% Growth at Midpoint)
Slide 13: Financial Results
Built for what’s next. Financial Results Karl Gabel CFO
Slide 14: FY Q4 2022: Financial Highlights
FY Q4 2022: Financial Highlights Revenue • Continue to experience high growth in our clients won since FY16 $123.7m • Growth in HealthTech & FinTech, Retail & E-commerce and Travel, +13.6% YoY Transportation & Logistics verticals New From FY16 Client Revenue • Represents 74% of the total revenue (59
Slide 15: FY Q4 2022: Financial Highlights – Non-GAAP
FY Q4 2022: Financial Highlights – Non-GAAP Q4 Adjusted EBITDA Adjusted Net Income $7.9m $20.0 Q4 FY21 $5.8m $18.7m $19.0 +36% YoY • Stronger operating results $18.0 • Tax benefit $15.9m Adjusted Fully Diluted • Partially offset by increased $17.0 Earning per Share depreciation $16.0 Q4 FY22 $0.42 p
Slide 16: FY Q4 2022: Cash Flow and CAPEX
FY Q4 2022: Cash Flow and CAPEX • Higher collections Net Cash Generated from Operations • Stronger operating results $27.8m • Lower non-recurring expenses Q4 FY21 $1.8m • Lower cash taxes DSO 55 Days • DSO’s well below industry average Q4 FY21 56 days Q3 FY22 60 days Capital Expenditures $2.7m, 2.2%
Slide 17: FY2022: Financial Highlights
FY2022: Financial Highlights Revenue $493.6m • New clients launched in fiscal year 2022, contributed ~$49m +11.2% YoY New From FY16 Client Revenue • Represents 69% of the total revenue (52% in FY21) $342m, +49% YoY Legacy Clients $96.4m or 19.5% of Total Revenue • Legacy clients’ Q4FY22 revenue was
Slide 18: FY2022: Financial Highlights – Non-GAAP
FY2022: Financial Highlights – Non-GAAP Adjusted Net Income FY Adjusted EBITDA $70.0 $24.6m $66.2m $66.8m FY21 $23.6m +4% YoY • Lower taxes partially offset by $60.0 higher depreciation in the current Adjusted Fully Diluted year $50.0 Earning per Share FY22 $1.32 per share $40.0 FY21 $1.28 per share
Slide 19: Revenue: Client Concentration
Revenue: Client Concentration FY’22 Client Statistics FY’21 Client Statistics (% of Revenue) (% of Revenue) Top 5 Clients 39% Top 5 Clients 50% Top 10 Clients 57% Top 10 Clients 70%
Slide 20: Winning in Strategic Verticals
Winning in Strategic Verticals Significant Growth in Key Strategic Verticals Telco Concentration under 20% 13.8% 18.1% Technology 16.0% Telecommunications Technology 29.3% Telecommunications 13.4% 19.4% 18.0% FY22 FY21 Travel, Retail & Transportation E-commerce Retail & and Logistics E-commerce 10.2
Slide 21: FY 2022: Cash Flow and CAPEX
FY 2022: Cash Flow and CAPEX Net Cash Generated from Operations • Stronger operating results $50.1m • Lower non-recurring expenses FY21 $25.9m • Improved working capital (93%) YoY • Lower cash taxes paid in fiscal year 2022 Capital Expenditures $25.9m, 5.3% of Revenue • Over 3,400 seats added in the
Slide 22: June 2022 Balance Sheet
June 2022 Balance Sheet Cash and Cash Equivalents • Borrowing availability under our revolving credit $48.8m facilities was $50.5m at June 2022 v. $33.6m in the (June 30, 2021 $57.8m) prior year Borrowing and Lease Liabilities • Borrowings $15.0m ($28.5m as of June 30, 2021) $104.7m • Lease liabilit
Slide 23: Investment Thesis
Investment Thesis Compelling Vision Large TAM & Track-Record & Strong Financials Capital Allocation Competitive Moats Transformation • Mission-critical, • $100B TAM supported • New client base now • Continued double- • Less than 2-year omnichannel customer by growing CX represents 74% of digit growt
Slide 24: Q&A
Built for what’s next. Q&A
Slide 25: Appendix
Built for what’s next. Appendix
Slide 26: Reconciliation of Net Income/(Loss) to Adjusted Net Income
Reconciliation of Net Income/(Loss) to Adjusted Net Income Three months Twelve months ended ended FY21 primarily includes the COVID-19 transportation June 30 June 30 related expenses A US$ in thousands, except share and per share amounts 2022 2021 2022 2021 FY22 includes COVID-19 transportation, sev
Slide 27: Reconciliation of Net Income /(Loss) to Adjusted EBITDA
Reconciliation of Net Income /(Loss) to Adjusted EBITDA Three months Twelve months ended ended FY21 primarily includes the COVID-19 transportation June 30 June 30 related expenses A US$ in thousands 2022 2021 2022 2021 FY22 includes COVID-19 transportation, severance and settlement expense Net incom