Washington DC November 8 2024: IBEX Limited (“ibex”), a leading provider in global business process outsourcing and end-to-end customer engagement technology solutions, net income increased to $7.5 million in first fiscal quarter ended September 30, 2024 as a result of the impact of higher revenue, improved gross margin and cost optimization efforts.
“Coming off a very strong second half of fiscal year 2024, I am delighted to report that fiscal year 2025 is off to a banner start with record first quarter results across the majority of our key financial metrics,” said Bob Dechant, ibex CEO. “Q1 saw a return to growth for ibex with revenues growing over 4%. Our growth is again driven by key wins from our new logo team and growth within our embedded base clients as we outperform our competition. We complemented this with two key wins delivering customer-facing automation and translation AI solutions for our clients.”
“Q1 FY25 was also a strong quarter on all profitability metrics where adjusted EPS grew 29%, adjusted EBITDA grew 14% and adjusted net income increased 19%,” added Dechant. “We have great momentum and we are excited about our direction as we move deeper into our fiscal year 2025.”
Revenue of $129.7 million, an increase of 4.1% from $124.6 million in the prior year quarter. Growth in HealthTech (+23.4%), Retail & E-commerce (+8.6%), and Travel, Transportation and Logistics (+10.0%), was partially offset by declines in the FinTech vertical (-13.0%).
Net income increased to $7.5 million compared to $7.4 million in the prior year quarter. Diluted earnings per share increased to $0.43 compared to $0.39 in the prior year quarter. The increases were primarily the result of the impact of higher revenue, improved gross margin performance on the year over year growth of delivery in our offshore regions, cost optimization efforts, and fewer diluted shares outstanding compared to the prior year quarter.
Net income margin decreased to 5.8% compared to 6.0% in the prior year quarter.
Non-GAAP adjusted net income increased to $9.0 million compared to $7.6 million in the prior year quarter (see Exhibit 1 for reconciliation).
Non-GAAP adjusted diluted earnings per share increased to $0.52 compared to $0.40 in the prior year quarter (see Exhibit 1 for reconciliation). The increase per share was primarily attributable to the impact of higher revenue, improved operating margins and a lower share count.
Repurchased approximately 282,000 shares during the quarter at a total cost of $4.7 million, and an average price per share of $16.55, representing 1.7% of our shares outstanding at September 30, 2024.
Capital expenditures were $3.6 million compared to $2.1 million in the prior year quarter. The increase in capital expenditures during the current year quarter was driven by expansion to meet growing demand in our offshore and nearshore geographies.
Free cash flow was $4.1 million compared to $6.6 million in the prior year quarter (see Exhibit 3 for reconciliation) and Net cash was $60.8 million, slightly down from $61.2 million as of June 30, 2024.
“We further built our top-line momentum in the first quarter with 4.1% revenue growth. This is the result of our focused effort to win new logos and deliver superior service, allowing us to expand with our embedded client base,” said Taylor Greenwald, CFO of ibex. “Importantly, our profitability continues to improve. This was our ninth of the last ten quarters where we delivered year-over-year adjusted EBITDA margin expansion, leading to strong cash flow that we are using to further invest in AI capabilities and sales resources. As we look ahead, we remain confident in our strategy to drive revenue growth throughout 2025 and to continue to return value to shareholders.”
For fiscal year 2025, revenue is expected to be in the range of $515 to $525 million, raising the lower end of the previous range from $510 million. Adjusted EBITDA is expected to be in the range of $67 to $69 million and Capital expenditures for fiscal year 2025 are expected to be in the range of $15 to $20 million.
