New York September 14 2023: IBEX share price drop USD 5.03 or 27.71 percent to USD 13.12 per share in todays trading at NASDAQ on below expected last quarter financial result.
During the fourth quarter revenue decreased 5.4 percent to USD 124.4 million over the previous quarter against full year growth of 6.1 percent for fiscal year 2023, according to company filling at NASDAQ. As a result net income of the company dropped 61 percent to USD 4.5 million in last quater when compared to the USD 11.7 million for previous quarter.
“We expects revenue for the first quarter fiscal 2024 to be in the range of USD 122 to USD 125 million, reflective of the macroeconomic impacts”
says Taylor Greenwald, CFO of ibex.
However, Revenue increased 0.7 percent to USD 124.4 million, compared to USD 123.5 million in the prior year quarter. Revenue growth was driven by 10 percent growth in our higher margin near and offshore regions, offset by lower onshore revenue, and was moderated by prevailing macroeconomic market conditions. Revenues in companies higher margin offshore and nearshore regions represented 73.9 percent of revenue mix for the quarter versus 67.8 percent in the prior year quarter.
Moreover, net income decreased to USD 4.5 million compared to USD 6.4 million in the prior year quarter. Diluted earnings per share decreased to USD 0.24 compared to USD 0.35 in the prior year quarter. The decrease was primarily the result of higher taxes due to the absence of a one-time tax benefit in the prior year quarter.
“Looking ahead to fiscal year 2024, while the sales pipeline remains healthy, we expect the macroeconomic environment and trend toward lower cost, higher margin regions will continue to impact revenue growth. The impact of the operational improvements we’ve made to our business and margin structure will carry forward, which enables us to further invest in our infrastructure for the future, as we focus on revenue growth and continued EBITDA margin expansion,” said Taylor Greenwald, CFO of ibex. “We view ibex as a business that will resume to historical growth rates with continued margin expansion over the longer term.”
