Washington May 10 2024: IBEX Limited (“ibex”), an associate of TRG Pakistan, a prominent provider in global business process outsourcing and end-to-end customer engagement technology solutions, has unveiled its financial results for the third fiscal quarter ending March 31, 2024.
CEO of ibex, Bob Dechant, expressed enthusiasm over the company’s performance, stating, “Our third quarter fiscal 2024 results were one of the strongest in our history, with record levels of adjusted EBITDA margin and adjusted EPS.” He highlighted achievements such as adjusted EBITDA of $19.2 million, marking a record 15.1% adjusted EBITDA margin, and $0.70 adjusted EPS. Additionally, ibex expanded its clientele by securing three new clients this quarter, bringing the total to 15 year-to-date, compared to eight in the prior year.
Dechant emphasized ibex’s strategic focus on embracing technological advancements, aiming to transition from traditional live agents to offering AI virtual agents and automated interactions. He outlined plans to disrupt the customer experience business model by incorporating language translation and establishing key tech partnerships for generative AI-based contact automation and QA automation.
In a move reflecting confidence in ibex’s trajectory, the board of directors has authorized a new Share Repurchase Plan of up to $30 million over the next 12 months.
Key Highlights of the Third Quarter 2024:
Three new client relationships secured, totaling fifteen year-to-date.
GAAP Financials:
Revenue: $126.8 million (a 3.6% decline from the prior year quarter).
Net income: $10.3 million.
Diluted earnings per share: $0.57.
Non-GAAP Financial Measures:
Adjusted net income: $12.6 million.
Adjusted earnings per share: $0.70.
Adjusted EBITDA: $19.2 million (15.1% margin).
Other Metrics:
501,549 shares repurchased at a total cost of $8.1 million in the third quarter.
Financial Performance Highlights:
Revenue declined by 3.6%, primarily influenced by the conclusion of a short-term client project and lower volumes in certain verticals.
Net income margin decreased to 8.1% from 8.6%.
Adjusted EBITDA increased to $19.2 million, with a margin of 15.1%.
Cash Flow and Balance Sheet:
Free cash flow consistent at $9.7 million.
Cash and cash equivalents: $50.7 million as of March 31, 2024.
Future Outlook and Guidance:
CFO Taylor Greenwald affirmed confidence in ibex’s strategy, aiming for growth in higher margin offshore regions and cost savings through optimizing site footprint. The company expects full-year results near the mid-point of adjusted EBITDA margin guidance and revenue near the lower end. Fiscal year 2024 revenue is projected between $505 to $510 million, with an adjusted EBITDA margin of approximately 12-13% and revised downward capital expenditures of $10 to $13 million.
IBEX Limited continues to navigate industry shifts, leveraging technology and strategic partnerships to drive growth and enhance client experiences amidst evolving market landscapes.
