Debt and Financing - As of March 31, 2022, the outstanding balance on the Revolver was $439.4 million, with an interest rate of 5.50%[119] - The outstanding balance on the Term Loan was $204.5 million, also carrying an interest rate of 5.50%[120] - The Company expects to refinance the Credit Facility during 2022, contingent upon the successful IPO of EbixCash Limited[115] - The Company has $3.7 million of remaining deferred financing costs related to the Credit Facility, amortized as interest expense[118] - The Credit Facility, totaling $643.9 million, was classified as a current liability as of March 31, 2022[115] - The Company had $643.9 million in outstanding debt obligations as of March 31, 2022, including a $204.5 million term loan and a $439.4 million balance on the revolving line of credit[232] - The interest rate on the Company's term loan and revolving line of credit was 5.50% as of March 31, 2022, exposing the Company to potential increases in interest expense[232] - A hypothetical 30% increase in the LIBOR rate could reduce pre-tax income by approximately $0.3 million for both the three months ended March 31, 2022, and 2021[232] - A hypothetical 20% decrease in interest rates earned on deposited funds would have resulted in a reduction to pre-tax income of approximately $0.1 million for both the three months ended March 31, 2022, and 2021[232] Revenue and Income - External revenues for India were $225.9 million for the three months ended March 31, 2022, compared to $231.5 million for the same period in 2021, reflecting a decrease of approximately 2.5%[139] - Total operating revenues for the three months ended March 31, 2022, decreased by $3.8 million, or 1%, to $286.3 million compared to $290.1 million in the same period of 2021[182] - International revenue accounted for 86.4% of total revenue for the three months ended March 31, 2022, compared to 86.9% in the same period of 2021[182] - The decline in payment solutions offerings in India decreased by approximately $13.6 million, or 6.7%, which was a significant factor in the overall revenue decrease[182] - The Company recorded a net income tax expense of $1.7 million (8.49%) for the three months ended March 31, 2022, with an effective tax rate expected to be in the range of 9% to 12% for the full year[135] - The Company expects its full year effective tax rate to be in the range of 9% to 12%[193] Expenses - Cost of services provided decreased by $9.5 million, or 4%, to $210.8 million, resulting in a decrease in cost of services as a percentage of total revenues to 73.7% from 76.0%[183] - Product development expenses increased by $0.7 million, or 7%, to $10.3 million during the first quarter of 2022, driven by increased labor costs primarily in India[184] - General and administrative expenses increased by $5.6 million, or 26%, to $26.9 million, primarily due to increased personnel costs and bad debt expense[187] - Interest expense increased by 27% to $10.3 million, despite a decrease in the average outstanding balance under corporate credit facilities[190] Assets and Liabilities - The total long-lived assets as of March 31, 2022, amounted to $1.22 billion, an increase from $1.19 billion as of December 31, 2021[139] - The carrying value of goodwill decreased to $931.6 million as of March 31, 2022, from $939.2 million as of December 31, 2021, primarily due to foreign currency translation adjustments[144] - The total lease liabilities amounted to $11.7 million as of March 31, 2022, with long-term lease liabilities of $7.1 million[151] - The Company had a liability reserve for uncertain tax positions of $6.3 million as of March 31, 2022, reflecting an increase of $72 thousand from the previous year[136] - Customer advances (deposits) increased to $26.416 million as of March 31, 2022, up from $24.393 million at the end of 2021[154] - The Company reported a negative working capital position of $458.7 million due to the classification of the Credit Facility as a current liability[216] Cash Flow - Net cash provided by operating activities for the three months ended March 31, 2022, was $5.6 million, with net income of $19.2 million and $4.4 million in depreciation and amortization[208] - Net cash used for investing activities during the same period was $11.5 million, primarily for $9.3 million in capital expenditures and $2.7 million in capitalized software development costs[210] - Net cash used in financing activities for the three months ended March 31, 2022, was $15.3 million, including $8.4 million for principal payments on the term loan and $2.3 million in dividends[212] Legal and Regulatory - The Company is involved in various legal actions, but management believes these will not materially affect its financial position[134] - The Company has not experienced any material changes to its internal controls over financial reporting despite remote work due to the COVID-19 pandemic[237] - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective as of March 31, 2022[237] - The Company continuously monitors the impact of COVID-19 on the operating effectiveness of its internal control over financial reporting[237] Foreign Currency and Geopolitical Impact - The Company experienced unrealized foreign currency translation losses of $(11.3) million for the three months ended March 31, 2022[231] - The Company reported unrealized losses of $(11.3) million and $(3.9) million in the cumulative foreign currency translation account for the three months ended March 31, 2022 and 2021, respectively[231] - A hypothetical adverse change of 20% in foreign currency exchange rates could have reduced pre-tax income by approximately $2.8 million and $2.6 million for the three months ended March 31, 2022 and 2021, respectively[231] - The company continues to monitor the impacts of geopolitical events, including the situation in Ukraine, which may affect global economic conditions[175] Technology and Development - The Company capitalized $2.7 million in software development costs during the three months ended March 31, 2022, compared to $1.7 million in the same period of 2021[146] - The Company recognized $755 thousand of amortization expense for capitalized software development costs during the three months ended March 31, 2022[147] - The company's technology vision focuses on the convergence of all channels and processes to enhance data flow and operational efficiency[166]

Financial Performance - Operating revenue for 2021 was $994,938, a 59% increase from $625,609 in 2020[422]. - Total operating expenses increased to $875,928 in 2021 from $499,807 in 2020, representing a 75% rise[422]. - Net income attributable to Ebix, Inc. decreased to $68,188 in 2021 from $92,377 in 2020, a decline of 26%[422]. - Basic earnings per share for 2021 was $2.23, down from $3.03 in 2020, reflecting a 26% decrease[422]. - Total assets increased slightly to $1,573,249 in 2021 from $1,569,853 in 2020[428]. - Total liabilities decreased to $873,695 in 2021 from $909,749 in 2020, a reduction of 4%[428]. - Cash and cash equivalents were $99,625 in 2021, down from $105,035 in 2020[428]. - Comprehensive income for 2021 was $46,420, compared to $65,722 in 2020, a decrease of 29%[425]. - The company reported a foreign currency translation adjustment loss of $20,519 in 2021[425]. - Total stockholders' equity increased to $699,554 in 2021 from $660,104 in 2020[430]. Growth and Acquisitions - The company expects continued growth through business acquisitions, aiming to broaden product and service offerings and expand operations[131]. - Future acquisitions may face challenges such as integration difficulties, higher operational costs, and potential loss of customers[135]. - Significant growth in the customer base and personnel may strain the company's management and operational infrastructure[151]. Market and Competition - The company operates in highly competitive markets, facing pressures from competitors with greater resources and brand recognition[139]. - The company relies on its existing customer base for additional business, but there is a risk of customers not renewing subscriptions or switching to competitors[144]. Risks and Challenges - Increased inflation globally during 2021 may negatively impact the company's operations, particularly in personnel costs and procurement of goods and services[168]. - Cybersecurity threats are increasing in frequency and sophistication, potentially disrupting business operations and resulting in significant financial and reputational harm[169]. - The company faces risks related to lengthy product development cycles, which may incur significant expenses before generating revenue[155]. - International operations are subject to various risks, including economic instability, regulatory challenges, and difficulties in collecting accounts receivable[183]. - A substantial portion of the company's assets and operations are located outside the U.S., exposing it to regulatory, tax, and political uncertainties[184]. - Increased labor costs in foreign countries could reduce operating margins, particularly as competition for skilled workers drives salaries higher[185]. - Changes in international migration patterns could adversely affect the company's money transfer business, impacting transaction volumes and growth rates[195]. - Sustained weakness in global economic conditions due to COVID-19 may disrupt international migration patterns, further affecting money transfer transaction volumes[196]. - The potential phasing out of LIBOR after 2021 may impact the company's financial results[197]. - The U.K. Financial Conduct Authority announced the cessation of LIBOR submissions after December 31, 2021, impacting the company's Credit Facility which may require renegotiation for a LIBOR Successor Rate[199]. - The company considers foreign earnings to be indefinitely reinvested outside the U.S., but changes in intent could lead to higher tax liabilities, adversely affecting financial results[201]. - New legislation affecting U.S. or foreign taxation could increase tax expenses and harm the company's financial results, particularly with proposed taxes based on gross revenue[202]. - The Tax Cuts and Jobs Act significantly reformed U.S. tax laws, lowering corporate income tax rates and changing the treatment of international business activities, which may impact future tax obligations[203]. - The OECD is working on proposals that may change how taxable presence for digital services is defined, potentially increasing tax obligations in countries where the company operates[204]. - The company faces exposure to greater than anticipated tax liabilities due to changes in earnings across jurisdictions with varying statutory tax rates[208]. - Changes in tax laws or rulings could materially affect the company's financial position and cash flows, particularly with ongoing investigations by the European Commission regarding tax treatment in various countries[209]. - The company is exposed to currency exchange risk, particularly with fluctuations in U.S. Dollar rates and other foreign currencies, which may increase as international operations expand[210]. - The rapid spread of contagious illnesses, such as COVID-19, can adversely affect demand for travel and thus impact the company's business operations[212]. - Principal shareholders may exert control over the company's future direction, potentially affecting significant changes to its capital structure[213]. Financial Reporting and Controls - The company is subject to risks related to the effectiveness of its internal controls over financial reporting, which could impact the accuracy of its financial results and investor confidence[225][226]. - The company must evaluate and report on the effectiveness of its internal controls under the Sarbanes-Oxley Act, which may require significant resources as the business grows[226]. - Changes in accounting standards and interpretations could materially affect the company's financial statements and require significant changes to its systems and processes[230][231]. Revenue Recognition - Revenue is recognized ratably over subscription terms of twelve to thirty-six months, which may delay the impact of new business downturns on financial results[149]. - EbixCash Travel revenue includes commissions and transaction fees from travel providers, recognized at a point in time upon completion of the service[368]. - The Company recognizes revenue from its SaaS platforms over the contract duration, which may exceed the initial contracted term due to the significance of upfront fees[375]. - Subscription services revenues are recognized ratably over the contract term, typically for an initial three-year period with automatic one-year renewals[380]. - Transaction revenue is based on a per-transaction rate, invoiced in the same period as the transactions were processed[381]. - Professional service revenue consists of fees for setup, customization, training, or consulting services, recognized based on the time and materials or fixed fee methods[382]. - Risk Compliance Solutions (RCS) revenues are derived from certificates of insurance (COI) and consulting services, with COI revenues being transaction-based[383]. - The Company recognizes revenue from COI at the issuance of each certificate or over the tracking period[385]. - Consulting services fees are earned on a time and materials basis or a fixed fee, with revenues recognized as services are rendered[386]. - The Company evaluates the adequacy of the allowance for doubtful accounts receivable based on aging analysis, historical bad debts, and customer credit-worthiness[387]. Goodwill and Intangible Assets - As of December 31, 2021, the company reported $939.2 million in goodwill and $16.6 million in indefinite-lived intangible assets on its consolidated balance sheet[224]. - Goodwill is tested for impairment annually or when circumstances indicate a potential decrease in fair value, with no impairments reported during the periods presented[390]. Debt and Interest Rate Risk - As of December 31, 2021, the Company had $656.0 million in outstanding debt obligations, including a $212.9 million term loan and a $439.4 million balance on a revolving line of credit[354]. - The Company is exposed to interest rate risk, with a potential pre-tax income reduction of approximately $1.0 million and $1.8 million for the years ending December 31, 2021 and 2020, respectively, due to a hypothetical 30% increase in LIBOR rates[354]. - Average cash balances and short-term investments during 2021 were $128.8 million, with cash balances as of December 31, 2021, totaling $99.6 million and $16.5 million, respectively[354]. - A hypothetical 20% decrease in interest rates on deposited funds would have resulted in a reduction to pre-tax income of approximately $192 thousand and $261 thousand for the years ended December 31, 2021 and 2020, respectively[354]. - Unredeemed gift cards as of December 31, 2021, totaled approximately $5.9 million, recorded as deferred revenues[366].

Revenue Growth - Total operating revenues increased by $37.4 million, or 24%, to $191.7 million for the three months ended September 30, 2021, compared to $154.3 million for the same period in 2020[183]. - International revenue accounted for 80.0% of total revenue for the three months ended September 30, 2021, compared to 74.0% for the same period in 2020[183]. - Revenue from EbixCash exchanges increased to $135.3 million for the three months ended September 30, 2021, up from $96.8 million in the same period of 2020, representing a growth of approximately 40%[181]. - The company's payment solutions offerings in India, particularly prepaid gift cards, increased by more than $33 million year-over-year, or approximately 50%[183]. - Total operating revenues increased by $324.6 million, or 80%, to $728.1 million for the nine months ended September 30, 2021, driven by a significant increase in payment solutions revenues in India[195]. Cost and Expenses - Cost of services provided increased by $34.8 million, or 41%, to $120.8 million in the third quarter of 2021 compared to $86.0 million in the third quarter of 2020[184]. - Cost of services as a percentage of total revenues increased to 63.0% for the three months ended September 30, 2021, compared to 55.7% for the same period in 2020[184]. - Costs of services provided increased by $326.8 million, or 170%, to $519.4 million for the nine months ended September 30, 2021, with costs as a percentage of total revenues rising to 71.3%[196]. - Product development expenses increased by $1.4 million, or 16%, to $10.2 million in Q3 2021 compared to $8.8 million in Q3 2020[185]. - Product development expenses for the nine months ended September 30, 2021 increased by $3.3 million, or 12.5%, to $29.8 million compared to $26.5 million in the same period in 2020[199]. - General and administrative expenses rose by $4.5 million, or 22%, to $25.4 million in Q3 2021 from $20.9 million in Q3 2020, primarily due to increased personnel costs[187]. - Interest expense increased by 47% to $11.0 million in Q3 2021 compared to $7.5 million in Q3 2020, despite a decrease in the average outstanding balance under corporate credit facilities[191]. - Interest expense for the nine months ended September 30, 2021 increased by 23.6% to $29.5 million compared to $23.9 million in the same period in 2020[204]. Foreign Exchange Impact - The company reported a year-over-year impact from foreign exchange rate fluctuations that increased reported revenues by approximately $1.1 million for the three months ended September 30, 2021[183]. - The Company recorded a net foreign currency exchange loss of $776 thousand for the nine months ended September 30, 2021[206]. - The net change in cumulative foreign currency translation for the nine months ended September 30, 2021, was an unrealized loss of $16.6 million[273]. - For the nine months ended September 30, 2021, the net change in the cumulative foreign currency translation account was an unrealized loss of $16.6 million, compared to a loss of $35.9 million for the same period in 2020[273]. - A hypothetical 20% adverse change in foreign currency exchange rates could have resulted in a reduction to pre-tax income of approximately $7.7 million for the nine months ended September 30, 2021[273]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2021, was $39.8 million, with a net income of $52.8 million[221]. - Net cash used for investing activities was $2.0 million for the nine months ended September 30, 2021, primarily for software development costs and capital expenditures[224]. - Net cash used in financing activities was $52.9 million for the nine months ended September 30, 2021, including $36.9 million for principal payments on the term loan[226]. - The current ratio increased to 1.97 at September 30, 2021 from 1.89 at December 31, 2020, indicating improved liquidity[215]. - The average cash balances during the nine months ended September 30, 2021 were approximately $127.8 million, with existing cash balances of $87.7 million as of the same date[274]. Debt Obligations - The company had $657.9 million in outstanding debt obligations as of September 30, 2021, with a LIBOR-related interest rate of 5.50%[274]. - As of September 30, 2021, the company had $657.9 million in outstanding debt obligations, including a $218.5 million term loan and a $439.4 million balance drawn on its commercial banking revolving line of credit[274]. - The company's term loan and revolving line of credit carried a leverage-based LIBOR related interest rate of 5.50% as of September 30, 2021[274]. - The outstanding balance on the revolving line of credit was $439.4 million at September 30, 2021, with an interest rate of 5.50%[233]. - The outstanding balance on the Term Loan was $218.5 million at September 30, 2021, with $36.9 million in principal payments made during the nine months[235]. Revenue Recognition - The company’s revenues are primarily derived from software subscription and transaction fees, with a focus on various service channels including EbixCash Exchanges and Insurance Exchanges[241]. - EbixCash revenues are significantly derived from prepaid gift card sales, recognized at a point in time[244]. - The company has end-to-end responsibilities for the gift cards sold, with unredeemed gift cards recorded as deferred revenues[247]. - EbixCash Travel revenue is primarily derived from commissions and transaction fees, recognized at a point in time, including hotel rooms, airline tickets, and ancillary fees[249]. - For corporate MICE packages, EbixCash Travel recognizes revenue at full purchase value upon completion, reporting revenue on a gross basis[250]. - EbixCash Money Transfer recognizes revenue upon completion of the service, which includes a transaction fee and exchange rate differences[251]. - Foreign exchange and payment services revenue is recognized when the performance obligation is fulfilled, typically when payments are made to recipients[252]. - Consumer payment services vary by fee payer and customer relationships, with revenue recognized based on contractual agreements[253]. - Insurance Exchanges revenues are derived from SaaS platform fees, recognized over the contract duration, with consistent transaction volumes[256]. - Software license revenues are recognized at the point in time when the customer obtains control of the license[259]. - Subscription services revenues are recognized ratably over the contract term, typically for an initial three-year period[260]. Internal Controls and Market Risk - The company has not experienced any material changes to its internal controls over financial reporting despite remote work due to the COVID-19 pandemic[279]. - The company is continually monitoring the impact of COVID-19 on the effectiveness of its internal control over financial reporting[279]. - There were no material changes to the company's market risk exposure during the nine months ended September 30, 2021[275]. - The company maintains a system of disclosure controls and procedures to ensure accurate reporting of financial information[277].

Revenue Growth - Total operating revenues for the three months ended June 30, 2021, increased by $135.0 million, or 121%, to $246.3 million compared to $111.3 million in the same period of 2020[184]. - International revenue accounted for 84.7% of total revenue for the three months ended June 30, 2021, compared to 62.5% in the same period of 2020[184]. - Revenue from EbixCash exchanges increased to $189.9 million for the three months ended June 30, 2021, up from $53.2 million in the same period of 2020[182]. - The demand for payment solutions offerings in India, particularly prepaid gift cards, increased by more than $128 million year-over-year, representing a growth of over 375%[184]. - Total operating revenues for the six months ended June 30, 2021, increased by $287.2 million, or 115%, to $536.4 million compared to $249.2 million for the same period in 2020[196]. Cost and Expenses - Cost of services provided increased by $129.1 million, or 263%, to $178.2 million in the second quarter of 2021 compared to $49.1 million in the second quarter of 2020[185]. - Cost of services as a percentage of total revenues rose to 72.3% for the three months ended June 30, 2021, compared to 44.1% for the same period in 2020[185]. - General and administrative expenses increased by $7.9 million, or 51%, to $23.3 million in Q2 2021 compared to $15.5 million in Q2 2020[188]. - Product development expenses increased by $1.8 million, or 22%, to $10.1 million in Q2 2021 compared to $8.3 million in Q2 2020[186]. Financial Position - Cash and cash equivalents decreased to $85.1 million at June 30, 2021, from $105.0 million at December 31, 2020[212]. - The current ratio increased to 1.96 at June 30, 2021, from 1.89 at December 31, 2020[214]. - The company recorded a net foreign currency exchange gain of $9 thousand for Q2 2021[194]. - Net income tax expense was $627 thousand (4.03%) for Q2 2021, with an expected full-year effective tax rate of 2.5% to 3.5%[195]. Debt and Financing - The company had $663.6 million in outstanding debt obligations as of June 30, 2021, including a $224.2 million term loan and a $439.4 million balance on its revolving line of credit[276]. - The outstanding balance on the revolving line of credit was $439.4 million as of June 30, 2021, with an interest rate of 5.50%, up from 3.50% at December 31, 2020[233]. - The outstanding balance on the Term Loan was $224.2 million as of June 30, 2021, with $31.3 million of principal payments made during the first half of 2021[234]. - Net cash used by financing activities for the six months ended June 30, 2021 was $43.1 million, including $31.3 million for scheduled payments on the existing term loan[226]. Cash Flow - Net cash provided by operating activities for the six months ended June 30, 2021 was $21.7 million, with a net income of $37.3 million and working capital requirements of $(28.3) million[221]. - Net cash used for investing activities during the six months ended June 30, 2021 was $6.4 million, primarily for software development costs of $3.1 million and capital expenditures of $1.7 million[223]. - In the first half of 2020, net cash used for investing activities was $36.5 million, mainly for acquisition-related payments of $5.2 million and software development costs of $3.3 million[224]. Market and Operational Impact - The company continues to monitor the impact of COVID-19 on its operations and has taken measures to strengthen its financial position[180]. - COVID-19 continues to create uncertainty in global financial markets, potentially impacting demand for services and overall business performance[239]. - The company has not experienced any material changes to its internal controls over financial reporting despite remote work due to the COVID-19 pandemic[281]. - The company continually monitors the impact of COVID-19 on the effectiveness of its internal control over financial reporting[281]. Revenue Recognition - EbixCash Travel revenue is recognized at a point in time, primarily from commissions and transaction fees, including hotel rooms, airline tickets, and ancillary fees[249]. - For corporate MICE packages, revenue is recognized at full purchase value upon completion, with costs recorded under direct expenses, reflecting EbixCash's role as the principal in transactions[251]. - EbixCash's money transfer business recognizes revenue upon completion of the transfer process, which includes a transaction fee and exchange rate differences[252]. - The company’s foreign exchange and payment services recognize revenue when performance obligations are fulfilled, typically when payments are made to recipients[253]. - Consumer payment services vary in fee structures based on customer relationships and service offerings, with revenue recognized based on contractual agreements[254]. - Insurance Exchanges revenue is derived from SaaS platform fees, with setup and customization services accounted for as a single performance obligation over the contract duration[256]. Foreign Currency and Market Risk - During the six months ended June 30, 2021, the company experienced unrealized foreign currency translation losses of $(12.5) million[275]. - A hypothetical 30% increase in the LIBOR rate could have reduced pre-tax income by approximately $0.5 million for the six months ended June 30, 2021[276]. - A hypothetical 20% adverse change in foreign currency exchange rates could have resulted in a reduction to pre-tax income of approximately $5.2 million for the six months ended June 30, 2021[275]. - There were no material changes to the company's market risk exposure during the six months ended June 30, 2021[277]. - The company maintains a system of disclosure controls and procedures to ensure accurate reporting in compliance with SEC rules[279].

Revenue Performance - Total operating revenues for the three months ended March 31, 2021, increased by $152.2 million, or 110%, to $290.1 million compared to $137.9 million in the same period of 2020[185]. - International revenue accounted for 86.9% of total revenue for the three months ended March 31, 2021, up from 69.6% in the same period of 2020[185]. - Revenue from EbixCash Exchanges reached $232.6 million in Q1 2021, a significant increase from $77.9 million in Q1 2020[183]. - Subscription revenue accounted for 14% of total revenue in Q1 2021, down from 31% in Q1 2020, while transaction-based revenue rose to 81% from 52%[183]. - Demand for payment solutions offerings in India increased by more than $180 million year-over-year, representing a growth of over 750%[185]. Cost and Expenses - The cost of services provided increased by $162.9 million, or 284%, to $220.4 million in Q1 2021, with costs as a percentage of total revenues rising to 76.0% from 41.7%[186]. - Product development expenses increased by $0.1 million, or 1%, to $9.5 million in Q1 2021 compared to $9.4 million in Q1 2020[187]. - Sales and marketing expenses remained flat at $3.8 million in Q1 2021 compared to Q1 2020[188]. - General and administrative expenses decreased by $7.9 million, or 27%, to $21.3 million in Q1 2021 from $29.2 million in Q1 2020[189]. - Interest income decreased by $46 thousand, or 85%, to $8 thousand in Q1 2021 compared to $54 thousand in Q1 2020[192]. - Interest expense decreased by $1.2 million, or 13%, to $8.1 million in Q1 2021 from $9.2 million in Q1 2020[193]. Cash Flow and Financial Position - Net cash provided by operating activities was $8.6 million for Q1 2021, down from $29.6 million in Q1 2020[210][211]. - The outstanding balance on the revolving line of credit was $439.4 million at March 31, 2021, with an interest rate of 3.50%[221]. - Cash and cash equivalents were $99.6 million at March 31, 2021, down from $105.0 million at December 31, 2020[199]. - The current ratio increased to 2.03 at March 31, 2021, up from 1.89 at December 31, 2020[202]. - As of March 31, 2021, the Company had $689.2 million in outstanding debt obligations, including a $249.8 million term loan and a $439.4 million balance on its revolving line of credit[264]. Tax and Revenue Recognition - The company expects its full year effective tax rate to be in the range of 2.5% to 3.5%[195]. - The company derives revenues primarily from software subscription and transaction fees, software license fees, financial transaction fees, risk compliance solution services fees, and professional service fees[228]. - EbixCash revenues are primarily derived from the sales of prepaid gift cards and financial transaction services, with a significant majority recognized at a point in time[231]. - EbixCash Travel revenues are derived from commissions and transaction fees from travel providers, recognized at a point in time upon completion of the service[236]. - Revenue from EbixCash's money transfer business is recognized upon completion of the service, which includes several steps such as customer acknowledgment and processing of the transfer[238]. - Insurance Exchanges revenues are primarily derived from SaaS platform fees, with setup and customization services accounted for as a single performance obligation recognized over the contract duration[244]. - Subscription services revenues are recognized ratably over the contract term, typically for an initial three-year period with one-year automatic renewals[248]. - Professional service revenue consists of fees for setup, customization, training, or consulting, recognized as services are rendered or based on the input method[251]. Risk and Controls - The impact of foreign exchange rates on reported revenues was approximately a reduction of $0.6 million for Q1 2021[185]. - The Company reported unrealized foreign currency translation losses of $(3.9) million and $(49.8) million for the three months ended March 31, 2021 and 2020, respectively[263]. - A hypothetical 20% adverse change in foreign currency exchange rates could have reduced pre-tax income by approximately $2.6 million and $3.4 million for the three months ended March 31, 2021 and 2020, respectively[263]. - The Company maintains effective disclosure controls and procedures as evaluated by its Chief Executive Officer and Chief Financial Officer as of March 31, 2021[269]. - The Company has not experienced any material changes to its internal controls over financial reporting despite remote work conditions due to the COVID-19 pandemic[269].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-15946 Ebix, Inc. (Exact name of registrant as specified in its charter) Delaware 77-0021975 (State or other jurisdiction of incorporation) (I.R.S. Employer Identificati ...

Revenue Performance - Total operating revenues for the three months ended September 30, 2020, increased by $7.1 million, or 5%, to $154.3 million compared to $147.2 million in the same period of 2019[202]. - International revenue accounted for 74.0% of total revenue for the three months ended September 30, 2020, compared to 69.4% in the same period of 2019[202]. - Revenue from EbixCash exchanges for the three months ended September 30, 2020, was $96.8 million, up from $82.1 million in the same period of 2019[200]. - Revenue from insurance exchanges decreased to $42.4 million for the three months ended September 30, 2020, down from $47.4 million in the same period of 2019[200]. - The company's transaction-based revenue increased to 63% of total revenue for the three months ended September 30, 2020, compared to 53% in the same period of 2019[200]. - For the nine months ended September 30, 2020, total revenues were $403.5 million, compared to $434.4 million for the same period in 2019[200]. - Pro forma combined revenues increased by 2.1% for the three months ending September 30, 2020, compared to the same period in 2019, considering business acquisitions[203]. Impact of COVID-19 - The company experienced a decrease in demand for certain solutions related to travel and foreign exchange due to COVID-19, which is expected to continue[192]. - Payment solutions revenues increased by over 350% year-over-year for the year-to-date period ended September 30, 2020, driven by increased demand for online payment solutions due to COVID-19[219]. Financial Position and Expenses - The company has implemented measures to strengthen its financial position, including amending its credit facility and reducing non-essential expenditures[195]. - Cost of services increased by $40.5 million, or 27%, to $192.5 million during the nine months ended September 30, 2020, with cost of services as a percentage of total revenues rising to 47.7% from 35.0% year-over-year[219]. - General and administrative expenses decreased by $35.6 million, or 35%, to $65.6 million during the nine months ended September 30, 2020, primarily due to reduced personnel costs and rent expenses[223]. - Interest expense decreased by $8.7 million, or 27%, to $23.9 million during the nine months ended September 30, 2020, attributed to lower LIBOR rates and a decrease in working capital facilities[226]. - Product development expenses decreased by $7.4 million, or 22%, to $26.5 million during the nine months ended September 30, 2020, primarily due to reduced employee-related costs[220]. - Sales and marketing expenses decreased by $4.3 million, or 29%, to $10.6 million during the nine months ended September 30, 2020, reflecting a reduction in business promotion expenses[221]. Cash and Debt Management - Cash and cash equivalents increased to $88.0 million at September 30, 2020, up from $73.2 million at December 31, 2019[232]. - As of November 3, 2020, the total cash, cash equivalents, short-term investments, and restricted cash held by the company amounted to $124.7 million, with significant balances in India ($72.5 million) and the United States ($17.8 million)[233]. - The current ratio improved to 1.75 as of September 30, 2020, up from 1.55 at the end of 2019, indicating a stronger liquidity position[234]. - The outstanding balance on the revolving line of credit was $439.4 million as of September 30, 2020, with an interest rate of 3.50%[252]. - The outstanding balance on the term loan was $261.1 million as of September 30, 2020, with $22.6 million due within the next twelve months[253]. - The Company had $700.5 million in outstanding debt obligations as of September 30, 2020, consisting of a $261.1 million term loan and a $439.4 million balance drawn on its commercial banking revolving line of credit[294]. Foreign Currency and Interest Rate Exposure - The company reported unrealized foreign currency translation losses of $(35.9) million for the nine months ended September 30, 2020, compared to gains of $10.9 million in 2019[293]. - A hypothetical 30 basis point increase in the LIBOR rate could reduce pre-tax income by approximately $1.5 million for the nine months ended September 30, 2020[294]. - A 20% adverse change in foreign currency exchange rates could have resulted in a reduction to pre-tax income of approximately $15.9 million for the nine months ended September 30, 2020[293]. - A hypothetical 20 basis point decrease in interest rates earned on deposited funds would have resulted in a reduction to pre-tax income of approximately $223 thousand for the nine months ended September 30, 2020[294]. Business Acquisitions and Strategy - The company completed one business acquisition during the nine months ending September 30, 2020, acquiring India-based Trimax for approximately $9.9 million[236][237]. - The company is actively pursuing accretive business acquisitions as part of its growth strategy, focusing on businesses complementary to its existing products and services[235]. Internal Controls and Reporting - The Company has not experienced any material changes to its internal controls over financial reporting despite the COVID-19 pandemic[299]. - The Company's disclosure controls and procedures were evaluated as effective as of September 30, 2020, with no material changes affecting internal control over financial reporting[299]. - The Company is continually monitoring the impact of COVID-19 on the operating effectiveness of its internal control over financial reporting[299].

Revenue Performance - Total operating revenues decreased by $33.0 million, or 23%, to $111.3 million for the three months ended June 30, 2020, compared to $144.3 million for the same period in 2019[199]. - International revenue accounted for 62.5% of total revenue for the three months ended June 30, 2020, down from 68.8% in the same period of 2019[201]. - Revenue from EbixCash Exchanges was $53.2 million for the three months ended June 30, 2020, compared to $78.9 million in the same period of 2019, representing a decrease of 32.8%[198]. - Revenue from Insurance Exchanges was $42.9 million for the three months ended June 30, 2020, down from $46.6 million in the same period of 2019, a decline of 7.0%[198]. - Revenue from Risk Compliance Solutions was $15.1 million for the three months ended June 30, 2020, compared to $18.7 million in the same period of 2019, a decrease of 19.0%[198]. - Subscription revenue as a percentage of total revenue increased to 39% for the three months ended June 30, 2020, up from 32% in the same period of 2019[198]. - Transaction-based revenue accounted for 44% of total revenue for the three months ended June 30, 2020, down from 53% in the same period of 2019[198]. - The adverse impact from foreign currency fluctuations reduced reported revenues by $6.1 million for the three months ended June 30, 2020[201]. Impact of COVID-19 - The company experienced a decrease in demand for services related to travel, foreign exchange, remittance, and consulting due to COVID-19[192]. - The Company is continually monitoring the impact of COVID-19 on its operations and internal controls[302]. Financial Position and Cash Flow - The company has implemented measures to strengthen its financial position, including amending its credit facility and reducing non-essential expenditures[194]. - Cash and cash equivalents were $77.3 million at June 30, 2020, compared to $73.2 million at December 31, 2019[231]. - The company anticipates that cash flows from operating activities will be sufficient to meet projected cash requirements for the foreseeable future[229]. - As of June 30, 2020, the total cash, cash equivalents, short-term investments, and restricted cash held by the company amounted to $126.1 million, with India holding $66.3 million and the United States holding $24.5 million[233]. - The current ratio increased to 1.66 at June 30, 2020, up from 1.55 at December 31, 2019, while working capital slightly increased to $129.9 million from $129.0 million[234]. - Net cash provided by operating activities was $58.4 million for the six months ended June 30, 2020, with net income contributing $48.2 million[244]. - Net cash used for investing activities during the six months ended June 30, 2020, was $36.5 million, primarily for acquisition-related payments and increases in marketable securities[246]. - Net cash used by financing activities was $33.9 million for the six months ended June 30, 2020, mainly due to a $19.8 million reduction in working capital facilities in India[249]. Expenses and Cost Management - Total operating revenues decreased by $38.0 million, or 13%, to $249.2 million for the six months ended June 30, 2020, compared to $287.2 million in the same period in 2019[214]. - Cost of services increased by $9.7 million, or 10%, to $106.6 million during the six months ended June 30, 2020, with cost of services as a percentage of total revenues rising to 42.8% from 33.7% year-over-year[218]. - Product development expenses decreased by $4.9 million, or 22%, to $17.8 million during the six months ended June 30, 2020, primarily due to reduced employee-related costs in India[219]. - Sales and marketing expenses decreased by $3.4 million, or 32%, to $7.3 million during the six months ended June 30, 2020, due to reduced business promotion and personnel expenses[220]. - General and administrative expenses decreased by $9.6 million, or 18%, to $44.7 million during the six months ended June 30, 2020, primarily due to reductions in personnel costs and rent expenses[221]. - Interest expense decreased by $5.2 million, or 24%, to $16.4 million during the six months ended June 30, 2020, primarily due to lower LIBOR interest rates[225]. Debt and Liabilities - As of June 30, 2020, the outstanding balance on the revolving line of credit was $439.4 million, with an interest rate of 3.50%[254]. - The company reported total contingent liabilities of $6.1 million as of June 30, 2020, down from $10.1 million as of December 31, 2019[242]. - The company has determined that the fair value of the contingent earn-out consideration for certain acquisitions is zero as of June 30, 2020[241]. - As of June 30, 2020, the Company had $708.9 million in outstanding debt obligations, including a $266.8 million term loan and a $439.4 million balance on its commercial banking revolving line of credit[297]. Revenue Recognition - EbixCash revenues are primarily derived from financial transaction services, with a significant majority recognized at a point in time[265]. - EbixCash Travel revenue includes commissions and transaction fees from travel providers, recognized at a point in time, with various revenue streams such as hotel rooms and airline tickets[269]. - For EbixCash Money Transfer, revenue is recognized upon completion of the service, which includes several steps such as customer acknowledgment and processing of the transfer[271]. - The Company recognizes revenue from foreign exchange and payment services when performance obligations are fulfilled, typically at the time of transaction completion[272]. - EbixCash's Insurance Exchanges revenues are derived from SaaS platforms, with revenue recognized over the contract duration, considering the significance of upfront fees[278]. - Revenue from professional services is recognized based on the time and materials or fixed fee basis, depending on the nature of the service provided[285]. - The Company’s contracts generally do not contain return or refund provisions, but may include variable consideration accounted for as overage fees or service level penalties[279]. Foreign Currency Impact - The Company reported unrealized foreign currency translation losses of $(54.1) million for the six months ended June 30, 2020, compared to gains of $7.9 million in the same period of 2019[296]. - An adverse change of 20% in foreign currency exchange rates could have reduced pre-tax income by approximately $6.1 million and $11.0 million for the six months ended June 30, 2020, and 2019, respectively[296]. - The Company’s functional currency for foreign subsidiaries in Dubai and Singapore is the U.S. Dollar, while other subsidiaries use their local currencies[292]. - The net change in the cumulative foreign currency translation account showed unrealized losses of $(54.1) million for the six months ended June 30, 2020, compared to gains of $7.9 million for the same period in 2019[296]. - An adverse change in foreign currency exchange rates of 20% could have resulted in a reduction to pre-tax income of approximately $6.1 million for the six months ended June 30, 2020[296]. Internal Controls and Legal Proceedings - The Company has not experienced any material changes to its internal controls over financial reporting despite remote work due to the COVID-19 pandemic[302]. - The Company is involved in various legal proceedings, but management believes these will not have a material adverse effect on its financial position or results[307]. - The Company has maintained effective disclosure controls and procedures as of June 30, 2020, with no changes that materially affected internal control over financial reporting[302].

Revenue Performance - Total operating revenues decreased by $5.0 million, or 4%, to $137.9 million for the three months ended March 31, 2020, compared to $142.9 million in the same period of 2019[189]. - International revenue accounted for 69.6% of total revenue for the three months ended March 31, 2020, compared to 67.8% in the same period of 2019[187]. - Revenue from EbixCash exchanges was $77.9 million, slightly up from $77.7 million in the first quarter of 2019[191]. - Revenue from insurance exchanges decreased to $44.0 million from $48.0 million year-over-year[191]. - Payment solutions revenues increased by over 120% in Q1 2020 compared to Q4 2019 due to increased demand during the COVID-19 lockdown in India[194]. Cost and Expense Analysis - Costs of services provided increased by $11.5 million, or 25%, to $57.5 million in Q1 2020 compared to $45.9 million in Q1 2019[194]. - Product development expenses decreased by $1.8 million, or 16%, to $9.4 million in Q1 2020 compared to $11.2 million in Q1 2019[195]. - Sales and marketing expenses decreased by $2.3 million, or 38%, to $3.8 million in Q1 2020 compared to $6.1 million in Q1 2019[196]. - General and administrative expenses increased by $7.8 million, or 36%, to $29.2 million in Q1 2020 compared to $21.4 million in Q1 2019[197]. Cash Flow and Financial Position - Net cash provided by operating activities was $29.6 million for Q1 2020, compared to $21.0 million for Q1 2019[221][222]. - Net cash used for investing activities was $9.6 million in Q1 2020, primarily for acquisition-related payments and software development costs[223]. - Net cash used by financing activities was $32.2 million in Q1 2020, primarily due to a $24.7 million reduction in working capital facilities[225]. - The company's cash and cash equivalents decreased to $61.9 million at March 31, 2020, from $73.2 million at December 31, 2019[207]. - The current ratio increased to 1.71 at March 31, 2020, from 1.55 at December 31, 2019[211]. Debt and Financing - The Company had $713.3 million in outstanding debt obligations as of March 31, 2020, including a $272.4 million term loan and a $438.0 million balance on its commercial banking revolving line of credit[273]. - As of March 31, 2020, the outstanding balance on the revolving line of credit was $438.0 million, with an interest rate of 4.13%[230]. - The term loan balance was $272.4 million, with $22.6 million due within the next twelve months and an interest rate of 4.13%[231]. - During the three months ended March 31, 2020, $3.8 million of scheduled amortization payments were made on the term loan[231]. - The Company's revolving line of credit interest rate was 4.13% as of March 31, 2020, exposing it to potential increases in interest expense[273]. Impact of COVID-19 - The company continues to monitor COVID-19 developments and has implemented measures to protect employee health and strengthen financial position[185]. - The company expects demand variability for its products and services to continue as a result of the COVID-19 pandemic[183]. - COVID-19 has created significant uncertainty in global financial markets, potentially impacting demand for services and access to capital[238]. Legal Matters - The Company is involved in various legal proceedings, including a settled class action lawsuit with a settlement amount of $19.65 million[280]. - The Delaware Court of Chancery approved a Litigation Settlement, determining it to be fair and reasonable, with an award of $19.65 million in attorneys' fees and expenses payable by the Company within 20 days[280]. - The Settlement provides for full settlement and release of all claims asserted or that could have been asserted in the Litigation, with no admission of wrongdoing or liability[280]. - The Settlement was fully paid on May 2, 2019[280]. - The Company is involved in various other claims and legal actions arising in the ordinary course of business[281]. - Management believes that the ultimate disposition of these matters will not have a material adverse effect on the Company's consolidated financial position, results of operations, or liquidity[281]. Revenue Recognition - Revenue from EbixCash is primarily derived from financial transaction services, with a significant majority recognized at a point in time[241]. - Insurance Exchanges revenues are derived from SaaS platforms and related services, recognized over the contract duration[255]. - Risk Compliance Services revenues consist of transaction-based revenues from Certificates of Insurance and consulting services[263]. - The company recognizes revenue for consulting services on a time and materials basis or fixed fee basis, depending on the engagement[265]. Foreign Currency Risk - The adverse impact from foreign currency fluctuations reduced reported revenues by $3.7 million for the three months ended March 31, 2020[189]. - The net change in the cumulative foreign currency translation account for the three months ended March 31, 2020, was an unrealized loss of $49.8 million, compared to a gain of $3.5 million for the same period in 2019[272]. - A hypothetical 20% adverse change in foreign currency exchange rates could have resulted in a reduction to pre-tax income of approximately $3.4 million for the three months ended March 31, 2020[272]. - The Company is exposed to foreign currency exchange rate risk related to operations in countries where transactions are denominated in currencies other than the functional currency[272]. - A hypothetical 30 basis point increase in the LIBOR rate would have resulted in a reduction to pre-tax income of approximately $1.1 million for the three months ended March 31, 2020[273]. - A hypothetical 20 basis point decrease in interest rates earned on deposited funds would have resulted in a reduction to pre-tax income of approximately $104 thousand for the three months ended March 31, 2020[273]. Internal Controls - The Company maintains effective disclosure controls and procedures, with no material changes affecting internal control over financial reporting during the quarter ended March 31, 2020[278].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-15946 Ebix, Inc. (Exact name of registrant as specified in its charter) Delaware 77-0021975 (State or other jurisdiction of incorporation) (I.R.S. Employer Identificati ...