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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.
IBEX
IBEX
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.
- Adverse impact realized year over year to revenue and EBITDA associated with the deferral of revenue for new logo and client ramps.
- Strategic investments made for the business in technology and sales & marketing, resulting in lower income from operations.