Washington November 16 2022: IBEX Limited (“ibex”), a leading global provider in business process outsourcing and end-to-end customer engagement technology solutions, today announced financial results for its first quarter ended September 30, 2022.
“The first quarter of 2023 delivered the company’s best start to a fiscal year on record, highlighted by revenue growth of 17.8% year-over-year, EBITDA margins of 14.3%, strong net income, EPS, and free cash flow,” said Bob Dechant, CEO of ibex. “Ibex continues to execute, despite continued market volatility and global inflationary cost pressures. Our powerful new logo engine and ability to land and expand partnerships is driving client and vertical growth and diversification.”
“Looking forward to the remainder of 2023, we are confident in the resiliency of our business, supported by the client diversification and strategic vertical expansions we’ve built over the preceding years. These efforts have our company well positioned in today’s market as we have less exposure to any one client or any one vertical. As a result of our strong start to the year, we are reiterating our prior guidance and remain confident in our brand and ability to continue to win business,” concluded Mr. Dechant.
First Quarter of Fiscal Year 2023 HighlightsBusiness Highlights
• Won 3 new logos across key verticals and launched a total of 11 new clients in the quarter.
• The FinTech & HealthTech verticals continued to increase significantly to 30.1% of total revenue in the first quarter, compared to 23.2% of total revenue in the prior year quarter.
• Executing on growth strategy selling into 10,000 seats of capacity available as a result of removing social distancing requirements.
Revenue
• Revenue increased 17.8% to $127.9 million, compared to $108.6 million in the prior year quarter.
• Revenue related to our BPO 2.0 clients won since fiscal year 2016 grew 44.3% compared to the prior year quarter and now represents 76% of our quarterly revenue.
Net Income
• Net income increased to $4.3 million, compared to $3.0 million in the prior year quarter. The increase in net income was primarily driven by stronger operating results, including the absence of non-recurring costs in Q1 FY23, partially offset by a negative impact from the fair value adjustment of share warrants and increased depreciation.
• Net income margin increased to 3.4%, compared to 2.8% in the prior year quarter.
• Non-GAAP adjusted net income increased to $6.4 million, compared to $0.9 million in the prior year quarter (see Exhibit 1 for reconciliation).
• Non-GAAP adjusted net income margin increased to 5.0%, compared to 0.8% in the prior year quarter (see Exhibit 1 for reconciliation).
Adjusted EBITDA
• Non-GAAP adjusted EBITDA increased to $18.2 million, compared to $11.5 million in the prior year quarter (see Exhibit 2 for reconciliation).
• Non-GAAP adjusted EBITDA margin increased to 14.3%, compared to 10.6% in the prior year quarter (see Exhibit 2 for reconciliation).
Earnings Per Share
• IFRS fully diluted earnings per share increased to $0.23, compared to $0.16 in the prior year quarter.
• Non-GAAP adjusted fully diluted earnings per share increased to $0.34, compared to $0.05 in the prior year quarter (see Exhibit 1 for reconciliation).
Cash flow and balance sheet
• Cash flow from operations increased to $8.8 million, compared to $6.9 million in the prior year quarter primarily due to stronger operating results partially offset by an increased use of working capital.
• Capex was $3.6 million compared to $5.3 million in the prior year quarter.
• Free cash flow for the first quarter increased to $5.2 million, compared to $1.6 million in the prior year quarter.
• Cash and cash equivalents were $42.9 million and availability on our revolving credit facilities of $56.7 million as of September 30, 2022, compared to cash and cash equivalents of $48.8 million and availability on our revolving credit facilities of $50.5 million as of June 30, 2022.
• Total borrowings were $7.7 million as of September 30, 2022, compared to total borrowings of $15.0 million as of June 30, 2022.
• DSOs were 59 days in the first quarter, down 4 days compared to prior year, and up 4 days sequentially.
Reaffirming Fiscal Year 2023 Business Outlook
• Fiscal year 2023 organic revenue between $545 million and $555 million with midpoint growth of 11.4% versus fiscal year 2022.
• Fiscal year adjusted EBITDA of $77 million to $79 million with midpoint margin of 14.2%.
• Fiscal year 2023 capex of $18 million to $22 million.
