| --- | --- | --- | |------------------------------------------------------------------|-------|------------------------| | | | | | | | | | | | | | | | Built for what's next. | | February 15, 2023 ibex Q2 FY2023 Earnings Call Bob Dechant, CEO | | | | | | | Disclaimer Except as required by law, we assume no duty to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations. You should, therefore, not rely on these f ...

Financial Data and Key Metrics Changes - Revenue grew to $139.4 million, up 12.6% when normalizing for the exit of a low-margin client, with a trailing 12-month revenue increase of 13% to $520.1 million [29][39] - Adjusted EBITDA margin reached 18%, up 450 basis points from the prior year, with adjusted EBITDA increasing to $25.1 million [28][41] - Net income decreased to $1.9 million from $8.5 million in the prior year, primarily due to the reevaluation of share warrants [40] Business Line Data and Key Metrics Changes - BPO 2.0 clients grew by 16.9% year-over-year, now representing 77.3% of total revenue [39] - Retail and e-commerce vertical increased to 26.9% of revenue, while FinTech and HealthTech grew to 27.9% [44][51] - Technology and travel/transportation verticals decreased to 8.7% and 11.4% of revenue, respectively, due to client exits and macroeconomic pressures [54] Market Data and Key Metrics Changes - Top five client concentration decreased to 40.8% from 41.3%, and top ten clients accounted for 58.8% of total revenue, down from 61% [43] - The sales pipeline increased to over $400 million, up 40% from a year ago [30] Company Strategy and Development Direction - The company is focused on diversifying its client base and has successfully mitigated the impact of the macroeconomic environment [31] - Strategic decisions made during the pandemic to expand capacity in high-margin regions are proving beneficial for profitability [49] - The company aims to continue driving growth through operational excellence and strong client relationships [88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience and growth trajectory despite macroeconomic challenges [36][37] - The company raised its adjusted EBITDA guidance for the full year to $82 million to $84 million, reflecting strong performance and visibility [47] - Management noted that the current operating model has resumed to pre-COVID levels, allowing for margin expansion [52] Other Important Information - The company has approximately $110 million in cash and borrowing availability, with less than $5 million in borrowings [35] - The company will transition to U.S. GAAP financial reporting effective July 1, 2023 [56] Q&A Session Summary Question: Revenue outlook and seasonal impacts - Management highlighted a more balanced client mix that mitigates historical seasonality, with strong wins in healthcare and financial services providing confidence for the second half of the year [60][61] Question: Margin sustainability and drivers - Management confirmed that the strong margins are not one-time events and are driven by BPO 2.0 solutions and COLA price increases [63] Question: Outsourcing spend trends among new economy customers - Management noted that while some clients are reducing outsourcing spend due to disruptions, there is potential for increased outsourcing as companies reassess strategies post-layoffs [76][77] Question: Growth potential and sales pipeline - Management indicated that the sales pipeline and operational performance position the company well for continued growth, even in a challenging environment [88][89]

IBEX Limited Announces Strong Second Quarter of Fiscal Year 2023 Financial Results with Accelerating Adjusted EBITDA, Strong Revenue Growth and Cash Flow; Raises Adjusted EBITDA Guidance Key Highlights WASHINGTON, DC— February 15, 2023—IBEX Limited ("ibex"), a leading global provider in business process outsourcing and end-to-end customer engagement technology solutions, today announced financial results for its second quarter ended December 31, 2022. Exhibit 99.1 "We delivered on a tremendous second quarte ...

IBEX Limited (NASDAQ:IBEX) Q1 2023 Earnings Conference Call November 15, 2022 4:30 PM ET Company Participants Michael Darwal - Chief Digital Officer Bob Dechant - Chief Executive Officer Karl Gabel - Chief Financial Officer Conference Call Participants Tobey Sommer - Truist Operator Welcome to the IBEX First Quarter and Fiscal Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator In ...

| --- | --- | --- | |------------------------------------------------------------------|-------|------------------------| | | | | | | | | | | | | | | | Built for what's next. | | November 15, 2022 ibex Q1 FY2023 Earnings Call Bob Dechant, CEO | | | | | | | Built for what's next. Disclaimer This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation, other than statements of historical facts, a ...

Client Dependency and Revenue - The top three clients accounted for 27% of the company's revenue, with the top client alone contributing 12% for the fiscal year ended June 30, 2022[45]. - The company’s business is dependent on key clients, and the loss of any significant client could materially affect financial results[45]. - The company faces potential adverse effects from client consolidation, which could reduce the number of clients and revenue[50]. - Company derived 96.6% of its revenue from U.S. clients in the fiscal year ended June 30, 2022, indicating a heavy reliance on the U.S. market[109]. Operational Risks - The company experienced significant operational disruptions due to the COVID-19 pandemic, impacting financial condition and results of operations[34]. - The company may incur additional costs to ensure operational continuity and support remote work due to the pandemic[37]. - The company is subject to risks from cybersecurity threats, including a ransomware attack in August 2020 that led to unauthorized access to non-production data files[39]. - The company relies heavily on technology and third-party telecommunications providers, which poses risks to service delivery and operational reliability[58]. - The company faces risks from political instability and natural disasters in key international markets, which could disrupt operations[63]. - The company has long sales and implementation cycles, which require substantial resources and may delay revenue recognition[55]. Financial Performance and Costs - Payroll and related costs accounted for $344.0 million, or 69.7% of total revenue for the fiscal year ended June 30, 2022[87]. - Profitability is heavily dependent on asset utilization, pricing strategies, and cost control; failure in these areas could materially affect financial performance[93]. - Significant accounts receivable from a limited number of clients pose a risk; delays in payments could adversely impact cash flow and financial condition[95]. - High working capital requirements and substantial start-up costs for new investments may affect the company's ability to fund operations and growth[98]. - The company anticipates significant ongoing capital expenditures for technology and communications infrastructure to maintain competitiveness[60]. Market Competition - Competition in the customer engagement market is intense, with significant pressure on pricing and service quality from both existing and new competitors[106]. - Unfavorable economic conditions, particularly in the telecommunications and technology sectors, could negatively impact demand for the company's solutions[108]. - Increased competition for skilled employees may lead to higher employee compensation, impacting profit margins[87]. Regulatory and Compliance Issues - The company is exposed to risks from potential new laws and regulations that could limit outsourcing activities, affecting business operations[53]. - The company is subject to the EU General Data Protection Regulation (GDPR), which can impose fines of up to €20 million or 4% of global annual revenues for non-compliance[142]. - The California Consumer Privacy Act (CCPA) requires companies to provide disclosures to consumers and allows for civil penalties for violations, impacting operational costs[141]. - Compliance with sector-specific regulations, particularly in telecommunications, increases legal risk and may require additional security measures[133]. - The company faces evolving privacy and data protection laws that may necessitate significant resource allocation to adapt its business practices[140]. International Operations - The company relies heavily on international operations in the Philippines, Jamaica, Pakistan, and Nicaragua, where labor costs are substantially lower than in the U.S.[64]. - The company operates in 43 countries across three continents, facing diverse legal and regulatory requirements that can be costly and time-consuming to comply with[122]. - The company may incur additional costs and face restrictions on operations due to new laws and regulations concerning privacy and data security[148]. Taxation and Financial Liabilities - As of June 30, 2022, the company had total indebtedness of $104.7 million, including $89.7 million in lease liabilities[153]. - The company may face increased tax liabilities due to complex international tax laws and potential adverse outcomes from tax examinations[173]. - The company is subject to transfer pricing regulations, which require transactions among subsidiaries to be on arm's-length terms, failure of which may result in increased tax liabilities[174]. Corporate Governance and Shareholder Issues - The company has never declared or paid any dividends, with the last dividend being a one-time payment of $4.0 million approved on July 21, 2020[206]. - The company is classified as an emerging growth company (EGC) and may take advantage of reduced disclosure requirements until it no longer qualifies as an EGC[207]. - Major shareholders can control the appointment of directors, which may affect management decisions and shareholder interests[218]. - The concentration of ownership may delay or prevent a change of control and could adversely affect the market price of the company's common shares[220]. Legal and Compliance Costs - The company incurs significantly greater legal, accounting, and compliance costs as a public company compared to when it was private[213]. - The company expects to incur significant expenses related to compliance with auditor attestation requirements of Section 404 after no longer being classified as an Emerging Growth Company (EGC)[216]. - The company may incur additional costs if the choice of forum provision regarding legal actions is found unenforceable[204].

IBEX Limited (NASDAQ:IBEX) Q4 2022 Earnings Conference Call September 22, 2022 4:30 PM ET Company Participants Brinlea Johnson - Managing Director, The Blueshirt Group Bob Dechant - Chief Executive Officer Karl Gabel - Chief Financial Officer Conference Call Participants Tobey Sommer - Truist Ryan Potter - Citigroup Robbie Bamberger - Baird Arvind Ramnani - Piper Sandler Operator Welcome to the IBEX Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. At this time all participants are in a listen-o ...

Financial Performance - FY22 revenue reached $493.6 million, a 11.2% year-over-year increase[13] - Adjusted EBITDA for FY22 was $66.8 million, representing a 13.5% margin[13] - Q4 FY22 revenue hit a record $123.7 million, up 13.6% year-over-year[13] - Q4 FY22 adjusted EBITDA was $18.7 million, with a 15.1% margin, a 50 bps increase from Q4 FY21[13,22] - Non-GAAP free cash flow for FY22 was $24.2 million[13,39] Client & Business Growth - Revenue from new clients since FY16 grew by 43% in Q4'22 and represents 74% of total revenues[18,28] - Legacy clients' revenue declined by 40% year-over-year, accounting for 15% of total revenue in Q4'22[28] - The company won 23 new logos year-to-date[19] - New clients average 2.5-4.5x revenue over year 2 & year 3[12,44] Financial Position & Capital Allocation - The company has $48.8 million in cash and $50.5 million in revolver availability[23,39] - A $20 million share repurchase authorization is in place[12,44] - Capital expenditures were $25.9 million, representing 5.3% of revenue[39] FY23 Guidance - Revenue is projected to be between $545 million and $555 million, indicating 11.4% growth at the midpoint[26] - Adjusted EBITDA is expected to be between $77 million and $79 million, with a 14.2% margin at the midpoint[26]

Revenue Growth - Fourth quarter revenue increased 13.6% to $123.7 million compared to the prior year quarter[4] - Fiscal year 2022 revenue increased 11.2% to $493.6 million compared to $443.7 million in the prior year[4] - Revenue generated from clients won since fiscal year 2016 grew 43% and represented 74% of total revenue in the fourth quarter[4] - First quarter 2023 organic revenue is projected to be between $124 million and $127 million, with a midpoint growth of 15.6% versus the prior year quarter[17] - Revenue for the three months ended June 30, 2022, was $123,707 thousand, an increase of 13.5% compared to $108,878 thousand for the same period in 2021[23] Profitability - Fiscal year 2022 net income increased to $23.0 million compared to $2.8 million in the prior year[4] - Net income for the year ended June 30, 2022, reached $22,990 thousand, a significant increase from $2,847 thousand in 2021, representing a growth of 708.5%[23] - The basic earnings per share for the year ended June 30, 2022, was $1.26, compared to $0.16 in 2021, reflecting a substantial increase of 687.5%[23] - Adjusted net income for Q3 2022 was $7,878,000, representing a 36.5% increase from $5,774,000 in Q3 2021, with an adjusted net income margin of 6.4%[25] - The company reported a net income margin of 4.0% for Q3 2022, compared to 3.7% in Q3 2021[25] Cash Flow - Cash flow from operations in the fourth quarter increased to $27.8 million compared to $1.8 million in the prior year quarter[7] - Free cash flow for the fourth quarter increased to $25.1 million compared to ($3.2) million in the prior year quarter[11] - Operating cash inflow for the year ended June 30, 2022, was $50,129 thousand, compared to $25,897 thousand in 2021, indicating a growth of 93.5%[24] - The company reported net cash provided by operating activities of $27,849,000 for Q3 2022, compared to $1,778,000 in Q3 2021[28] - Free cash flow for Q3 2022 was $25,142,000, a significant improvement compared to a negative free cash flow of $(3,174,000) in Q3 2021[28] Financial Position - Total assets as of June 30, 2022, amounted to $290,137 thousand, up from $274,287 thousand in 2021, reflecting a growth of 5.8%[22] - Total equity increased to $100,289 thousand in 2022, compared to $80,659 thousand in 2021, marking a rise of 24.3%[22] - Total current liabilities decreased to $102,367 thousand in 2022 from $105,715 thousand in 2021, a reduction of 3.2%[22] - Total debt as of June 30, 2022, was $104,736,000, a decrease from $112,516,000 in 2021, while net debt increased slightly to $55,905,000 from $54,674,000[30] Margins and Expenses - Non-GAAP adjusted EBITDA margin increased to a record 15.1% in the fourth quarter compared to 14.6% in the prior year quarter[4] - Adjusted EBITDA for the year ended June 30, 2022, was $66,836,000, slightly up from $66,244,000 in 2021, with an adjusted EBITDA margin of 13.5%[26] - EBITDA for Q3 2022 reached $15,393,000, up from $13,491,000 in Q3 2021, resulting in an EBITDA margin of 12.8%[26] - The company incurred finance expenses of $2,202,000 in Q3 2022, compared to $2,111,000 in Q3 2021[26] - The company reported a finance expense of $8,797 thousand for the year ended June 30, 2022, slightly down from $9,034 thousand in 2021[23] Client Base and Diversification - The Telecom vertical now represents 18.1% of annual revenue, down from 29.3% in the prior year, indicating client base diversification[11] - The company’s deferred revenue increased to $12,593 thousand in 2022 from $7,087 thousand in 2021, representing a growth of 77.5%[22] Shareholder Information - The weighted average shares outstanding for Q3 2022 were 18,147,541, resulting in adjusted fully diluted earnings per share of $0.43[25] - Non-recurring expenses for Q3 2022 totaled $1,502,000, down from $2,364,000 in Q3 2021[26]

IBEX Limited (NASDAQ:IBEX) Q3 2022 Earnings Conference Call May 18, 2022 4:30 PM ET Company Participants Brinlea Johnson - IR, The Blueshirt Group Bob Dechant - CEO Karl Gabel - CFO Conference Call Participants David Koning - Baird Jasper Bibb - Truist Securities Matthew Roswell - RBC Capital Markets Ashwin Shirvaikar - Citi Operator Welcome to the IBEX Third Quarter Full Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be ...