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Dec 31, 2023
IBEX Q2 2024 Earnings Report
Announced financial results for the second fiscal quarter ended December 31, 2023.
Key Takeaways
IBEX Limited reported a decrease in revenue and net income compared to the prior year quarter, with revenue declining by 4.8% to $132.6 million and net income decreasing to $6.1 million. The company won eight new client relationships and made strategic investments in sales and AI capabilities.
Revenue decreased by 4.8% year-over-year to $132.6 million.
Net income was $6.1 million, down from $9.3 million in the prior year quarter.
Diluted earnings per share were $0.33, compared to $0.49 in the prior year quarter.
Eight new client relationships were won across various sectors.
Forward Guidance
The company expects third quarter revenues to trend similarly to the first two quarters on a year-over-year basis, with an anticipated inflection towards growth in the fourth quarter. Full year revenue is expected to be between $505 and $510 million, with adjusted EBITDA margin in the range of 12-13%.
Positive Outlook
- New client ramps reaching scale in the fourth quarter will drive growth.
- Strategy of driving growth in higher margin offshore regions.
- New client wins will accelerate growth.
- Cost savings through optimizing site footprint will drive improvement in adjusted EBITDA margins.
- Confident that the strategy will drive improvement in adjusted EBITDA margins for the second half of the fiscal year and in the years ahead.
Challenges Ahead
- Softness in several client volumes has resulted in lower revenues.
- Volume trajectory is expected to continue for the near term.
- Third quarter revenues are expected to trend similarly to the first two quarters on a year over year basis.
Historical Earnings Impact
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