Slide 1: ibex Q2 FY2022 Earnings Call
Built for what’s next. ibex Q2 FY2022 Earnings Call February 16, 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: Bob Dechant, CEO
Built for what’s next. Bob Dechant CEO
Slide 4: 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 • Return to double-digit • Less Than 2 Year omnichannel by growing CX represents 70% of growth Payback
Slide 5: Significant Progress on Strategic Priorities since our IPO
Significant Progress on Strategic Priorities since our IPO Growth Leadership Land & Expand with Exceptional High-Growth Digital First Brands Client Diversification Accelerate our Client Diversification with Key Wins in Strategic Verticals Geographic Expansion Aggressively Grow in our High Margin Geo
Slide 6: Ibex Today: Company Profile
Ibex Today: Company Profile Strong LTM Results Q2 FY2022 Results $458.5m $61.8m Revenue (LTM) Adj EBITDA (LTM) $132.2m 7.1% 13.5% Record Revenue: Q2 Y-Y Revenue Growth Adj. EBITDA Margin 12.8% 10-12% $69-71m YoY Q2 Revenue Growth Full Year Adj EBITDA Full Year Guidance Guidance $17.8m Company Facts
Slide 7: Powerful Growth with New Clients Won since FY16
Powerful Growth with New Clients Won since FY16 $350 Revenue Breakdown ($m) New clients won since FY16 $300 $250 FY16 fro m w • 70% of Total Revenues in Ne $200 C AGR (E) • 57% growth in Q2’22 78% $150 • Digitally Focused $100 Brands $50 • 70 New Clients • Integrated Omni- $- FY16 FY17 FY18 FY19 FY2
Slide 8: Strong Performance Winning & Growing Key New Clients
Strong Performance Winning & Growing Key New Clients New Client Cohort Data ($m) FY16-FY22 Client Cohort $140 Performance: Year 1 Year 2 Year 3 $120 • 2.5x – 3.5x Growth in Year 2 $100 • 25% Average Increase in Year 3 $80 • New Logo in FY22 $60 Estimated at $50m in Year $40 Revenue $20 o +66% YoY $-
Slide 9: Diverse Base of Elite Clients by Revenue
Diverse Base of Elite Clients by Revenue ~50 Clients FinTech and HealthTech: Q2’22 Client Statistics (% of with > $1m in Annual Revenue $100m Est FY22 Revenue) #1 #1 #1 #1 Top 5 Clients 41% Cloud Based Millennial Trading Food Global Restaurant Tech App Delivery Company Largest Client <12% #1 #1 #1 #
Slide 10: Growth Across High Margin Geographies
Growth Across High Margin Geographies Seat by Geography (July FY16 thru Dec FY22 Revenue contribution by geography ($m) (in thousands) $400 10.0 $350 9.0 8.0 $300 7.0 $250 6.0 $200 5.0 4.0 $150 3.0 $100 2.0 $50 1.0 - $- US PH N/S ROW FY 2016 FY 2022E July FY16 IPO Dec FY22 PH N/S ROW Seat Distributi
Slide 11: Adjusted EBITDA Margins Comparisons
Adjusted EBITDA Margins Comparisons Q2 Adjusted EBITDA ($m) $20 15.3% 13.5% $18 • EBITDA approximately flat from Q2 $16 FY21 $14 10.6% • Adjusted EBITDA margin decreased $12 by 180 bps driven by ramp costs $10 o Higher agent training costs $8 required to meet client demand $6 o Site costs and overhe
Slide 12: Focused on Delivering Shareholder Value
Focused on Delivering Shareholder Value TRGI, our majority shareholder, This has reduced TRGI’s direct approved the transfer of a stake in Ibex from portion of its Ibex shares to some 62% to 35% of its shareholders. Investor Base is Broadening for ibex as a Public Company $20m Share Repurchase Progr
Slide 13: Capital Allocation
Capital Allocation Site Expansion Internal $20m Share Opportunistic <2-Year Reinvestment Repurchase M&A Payback Period Opportunities Authorization Flexible, pragmatic, and opportunistic capital allocation mindset Supported by Net Cash on Balance Sheet 13
Slide 14: Ibex Culture at Work
Ibex Culture at Work Typhoon Odette ripped through the Island of Bohol causing significant damage to the residents' homes We raised over $100,000 USD from Ibex individuals which the company matched for a total of $200,000 USD to be used for: • Essential Needs • Rebuilding • Community Outreach Our bu
Slide 15: ESG & Diversity and Inclusion
ESG & Diversity and Inclusion 34% of Our Directors and Above Are Women 47% of Our Global Workforce Are from A 50% of Our Board of Directors Are Women or Minority Group A Minority 50% of Our Global Workforce Are Women Named Best Place to Work for Women in Central America and the Caribbean 2021 Women
Slide 16: Summary & Guidance
Summary & Guidance 70% 2H revenue growth and 20% of our business is EBITDA Margin will of our Business has growing at a high accelerate from stabilized 12.8% and 13.5% double-digit rate New Guidance Prior Guidance 10-12% 7-9% Organic Revenue Growth Organic Revenue Growth $69-71m of Adjusted EBITDA $
Slide 17: Financial Results – Karl Gabel, CFO
Built for what’s next. Financial Results Karl Gabel CFO
Slide 18: FY Q2 2022: Financial Highlights
FY Q2 2022: Financial Highlights Revenue Record revenue $132.2m 21.7% sequential growth +12.8% YoY New From FY16 Clients’ Revenue Represents 70% of the total revenue (50% in Q2 FY21) +57% YoY Legacy Top 3 Clients’ Revenue Revenue base has stabilized and will decrease as a % of revenue over $26.3m or
Slide 19: FY Q2 2022: Financial Highlights – Non-GAAP
FY Q2 2022: Financial Highlights – Non-GAAP Q2 Adjusted EBITDA Adjusted Net Income $5.2m $19.0 Q2 FY21 $6.1m (16%) YoY Decrease primarily driven by an $18.5 increase in depreciation as we Adjusted Fully Diluted continue to invest in the growth of 15.3% $18.0 Earning per Share the business 13.5% $0.2
Slide 20: Winning in Strategic Verticals
Winning in Strategic Verticals Significant Growth in All Key Verticals Telco Concentration under 20% 17.2% 15.0% 17.2% Telecommunications Technology Technology 29.5% Telecommunications 13.2% Travel and Q2 Q2 FY22 FY21 Logistics 23.7% 21.7% Retail & E-commerce 8.4% Retail & E-commerce Travel and 11.4
Slide 21: FY Q2 2022: Cash Flow and CAPEX
FY Q2 2022: Cash Flow and CAPEX Capital Expenditures Added >2,500 new seats primarily in our high margin $11.8m, 8.9% of Revenue nearshore and offshore locations during the quarter (Q2 FY21 $6.4m, 5.4% of Revenue) Net Cash Generated from Operations $3.4m Impacted by higher working capital usage offs
Slide 22: FY Q2 2022: Balance Sheet
FY Q2 2022: Balance Sheet Cash and Cash Equivalents $51.5m Balance Sheet remains strong (June 30, 2021 $57.8m) Borrowing and Lease Liabilities Borrowings $37.7m ($28.5m as of June 30, 2021) $127.1m Lease liabilities $89.4m ($84.0m as of June 30, (June 30, 2021 $112.5m) 2021) 22
Slide 23: Investment Thesis
Investment Thesis Compelling Vision Large TAM & Track-Record & Strong Financials Capital Allocation Competitive Moats Transformation • Mission-critical, • $100B TAM supported • New client base now • Return to double-digit • Less Than 2 Year omnichannel by growing CX represents 70% of growth Payback
Slide 24: Q&A
Built for what’s next. Q&A
Slide 25: Appendix
Built for what’s next. Appendix
Slide 26: Reconciliation of Net Income/(Loss) to Adjusted Net Income
Reconciliation of Net Income/(Loss) to Adjusted Net Income Three months Six months ended ended December 31 December 31 For all periods, primarily represents the COVID-19 A US$ in thousands, except share and per share amounts 2021 2020 2021 2020 transportation related expenses Net income/ (loss) $ 8,
Slide 27: Reconciliation of Net Income/(Loss) to Adjusted EBITDA
Reconciliation of Net Income /(Loss) to Adjusted EBITDA Three months Six months ended ended December 31 December 31 For all periods, primarily represents the COVID-19 A US$ in thousands 2021 2020 2021 2020 transportation related expenses Net income / (loss) $ 8,465 $ 2,488 $ 11,479 $ (935) For all p