Slide 1: ibex FY2023 Earnings Call
Built for what’s next. ibex FY2023 Earnings Call Bob Dechant, CEO September 13, 2023
Slide 2: Disclaimer
Disclaimer Built for what’s next. By attending or receiving this presentation you acknowledge that you will be solely responsible for This presentation includes forward-looking statements within the meaning of the Private Securities your own assessment of the market and our market position and that
Slide 3: FY2023 Compelling Track Record of Transformation and Execution
FY2023 Compelling Track Record of Transformation and Execution Strong Financial Profile 12.7% $1.96 Growth of Key Segments, Strong EBITDA, Net income, FCF, EPS Adj EBITDA FY23 Adj. EPS Transformation to a leading Digital First & Analytics driven business 18.5% 77% Profitable Digital First BPO 2.0 Cl
Slide 4: FY2023 Results & Highlights
FY2023 Results & Highlights Strong Results Throughout the P&L $523.1m $66.6m $36.9m Revenue Adj. EBITDA Adj. Net Income 12.1% 12.7% $22.9m Normalized Growth Adj. EBITDA Margin FCF (YoY)1 6.1% 49% $1.96 Revenue Growth (YoY) Adj. EBITDA Growth Adj. EPS 1 Adjusting for exit of Legacy unprofitable clien
Slide 5: Q4 FY2023 Results & Highlights
Q4 FY2023 Results & Highlights Strong Results Throughout the P&L $124.4m $15.4m $6.2m Revenue Adj. EBITDA Adj. Net Income 2.4% 12.4% $13.7m Normalized Growth Adj. EBITDA Margin FCF (YoY)1 0.7% 21% $0.33 Revenue Growth (YoY) Adj. EBITDA Growth Adj. EPS 1 Adjusting for exit of Legacy unprofitable clie
Slide 6: Most Awarded BPO 2.0 Provider
Most Awarded BPO 2.0 Provider 2021 & 2022 Great Place 2022 & 2023 CUSTOMER 2020, 2021 & 2022 2023 America’s Greatest 2023 Philippines to Work for Women in Magazine Product of the Great Place to Work in Workplaces for Diversity Best Employers Central America and Year Awards Nicaragua Caribbean 2023 C
Slide 7: New Logo Engine: Strong Performance Winning Great Brands
New Logo Engine: Strong Performance Winning Great Brands Client Cohort New Client Cohort Data ($m) 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 $60 o Leading Hea
Slide 8: Powerful Land & Expand with our Digital First BPO 2.0 Clients
Powerful Land & Expand with our Digital First BPO 2.0 Clients BPO 2.0 Clients Revenue Breakdown ($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 T
Slide 9: Unparalleled Culture
Unparalleled Culture Employee & Client NPS – FY23 68 Global Employee NPS 85% Global Rate Participation 79 eNPS in Philippines Philippines 93% Participation Rate 1 68 Client NPS 1Philippines is our largest region 9
Slide 10: Differentiation with Technology & Analytics
Differentiation with Technology & Analytics Wave X Wave X Insights Purpose-built technology to Advanced Analytics to outperform provide customer insights 400+ 250+ Experienced IT Professionals Data and Business Analysts 16 70+ Technology Platforms CX & Cost Optimization Supported Case Studies 50+ 90
Slide 11: Generative AI – the Next Wave of WaveX
Generative AI – “the Next Wave” of WaveX AI-Powered Tech Stack AI across Agent Lifecycle AI Driven Insights Digital Customer Experience Productivity Boost Quality Boost Volume Boost • Agent Assist • Quality Assurance on 100% • Human live Voice Bot and • AI Based Agent Training of Interactions Chat B
Slide 12: Capital Allocations
Capital Allocations Infrastructure positioned • Upgrading ERP & HCM for continued growth systems Further expansion into • Offshore higher margin regions • New Geographies • Enhancing our solutions & M&A competitive moat • Accelerate growth 12
Slide 13: FY23 Compelling Track Record of Transformation and Execution
FY23 Compelling Track Record of Transformation and Execution Strong Financial Profile 12.7% $1.96 Growth of Key Segments, Strong EBITDA, Net income, FCF, EPS Adj EBITDA FY23 Adj. EPS Transformation to a leading Digital First & Analytics driven business 18.5% 77% Profitable Digital First BPO 2.0 clie
Slide 14: Financial Results
Built for what’s next. Financial Results Taylor Greenwald CFO
Slide 15: Q4 FY2023: Financial Highlights – US GAAP
Q4 FY2023: Financial Highlights – US GAAP Revenue • 7.0% YoY growth of BPO 2.0 clients, now 79% of total revenue (74% in $124.4m Q4 FY22) +0.7% YoY • Nearshore/Offshore revenues up 10% YoY; Onshore down 18% +2.4% YoY1 • Macro-Economic impact on Sales cycle and client volumes Net Income $4.5m Q4 FY23
Slide 16: Q4 FY2023: Financial Highlights – Non-GAAP
Q4 FY2023: Financial Highlights – Non-GAAP • +21% from prior year quarter Q4 Adjusted EBITDA $18.0 • Growth and profitability in our BPO Adjusted EBITDA 2.0 clients in higher margin regions $17.0 $15.4m Q4 FY23 • Higher profitability driven by $12.8m Q4 FY22 increased capacity utilization $16.0 $15.
Slide 17: Revenue: Model Client Diversification
Revenue: Model Client Diversification Q4 FY23 Client Statistics (% of Revenue) Top 5 Clients Top 10 Clients 37.2% 55.4% • 57 clients above $1m annually up from 49 in FY22 • 29 clients above $5m Top 25 Clients Largest Client annually up from 23 in FY22 80.3% 11.4% 17
Slide 18: Winning in Strategic Verticals
Winning in Strategic Verticals Significant Growth in Key Strategic Verticals Telco now represents ~15% 9.2% 11.2% 15.1% Technology 17.1% Technology Telecommunications Telecommunications 22.3% 12.4% Retail & 18.8% Travel, Transportation and Logistics Q4 E-commerce 13.3% Travel, Transportation Q4 Reta
Slide 19: FY 2023: Financial Highlights – US GAAP
FY 2023: Financial Highlights – US GAAP Revenue • 18.5% YoY growth of BPO 2.0 clients, 77% of total FY23 revenue (69% $523.1m in FY22) +6.1% YoY • Higher margin nearshore and offshore regions grew by 16% +12.1% YoY1 • Macro-Economic impact on Sales cycle and client volumes Net Income Stronger operat
Slide 20: FY 2023: Financial Highlights – Non-GAAP
FY 2023: Financial Highlights – Non-GAAP FY Adjusted EBITDA $70.0 Adjusted EBITDA $66.6m $66.6m FY23 • +49% from prior year $65.0 $44.7m FY22 $60.0 9 % +4 Adjusted Net Income $55.0 $36.9m FY23 • +42% from prior year 12.7% $26.0m FY22 $50.0 Margin $44.7m $45.0 9.1% Adjusted Fully Diluted $40.0 Margin
Slide 21: FY 2023: Cash Flow and CapEx
FY 2023: Cash Flow and CapEx Net Cash Generated from Capital Expenditures Operations $19.0m, 3.6% of Revenue FY23 $41.9m FY23 $25.9m, 5.3% of Revenue FY22 $40.0m FY22 DSO Non-GAAP Free Cash Flow 63 days Q4 FY23 $22.9m FY23 55 days Q4 FY22 $14.1m FY22 63 days Q3 FY23 21
Slide 22: June 2023 Balance Sheet
June 2023 Balance Sheet Cash and Cash Equivalents • Increase in borrowing availability under our $57.4m revolving credit facilities to $71.9m as of June 2023 June 30, 2022 $48.8m v. $50.5m as of June 2022 Total Debt • Net Cash position at fiscal year-end improved to $1.0m $56.4 million from $33.1 mi
Slide 23: Guidance
Guidance FY24 Q1 FY24 Revenue $525-$535m $122-$125m Adj. EBITDA ~13% ~11% Margin CapEx $15-20m • Macro-economic environment pressuring client volumes • Continue trend toward offshoring/nearshoring • Efficient use of CapEx • Investments in ERP/HCM infrastructure 23
Slide 24: Q&A
Built for what’s next. Q&A
Slide 25: Appendix
Built for what’s next. Appendix
Slide 26: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income Three months ended Twelve months ended 30-June 30-Jun US$ in thousands 2023 2022 2023 2022 Represents US GAAP transition expense, severance A expense, legal and settlement expenses, and/or 4,510 $ 6,421 $ 31,582 $ 21,456 Net income $ costs related
Slide 27: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months ended Twelve months ended 30-June 30-Jun US$ in thousands 2023 2022 2023 2022 Net income $ 4,510 $ 6,421 $ 31,582 $ 21,456 Represents US GAAP transition expense, severance Finance expenses -10 169 152 1,246 A expense, legal and settlement