IBEX(IBEX) - 2023 Q4 - Annual Report

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Forward-Looking Statements This section highlights that the Form 10-K contains forward-looking statements based on current expectations and projections, which are not guarantees of future performance. It cautions that actual results could differ materially due to known and unknown risks and uncertainties, as detailed in the 'Risk Factors' section. The company undertakes no obligation to update these statements - The Form 10-K contains forward-looking statements based on current expectations, assumptions, and projections, which are not guarantees of performance[13] - Actual results, performance, or achievements could differ materially from forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other important factors[13] - The company derives many forward-looking statements from operating budgets and forecasts, based on detailed assumptions, and cautions that predicting the impact of known factors is difficult, and anticipating all factors is impossible[14] RISK FACTORS SUMMARY This section provides a summary of material risks and uncertainties that could adversely affect the company's business, financial condition, and results of operations. Key risks include client attraction and retention, profitability management, international operations, technology adaptation, workforce management, regulatory compliance, cybersecurity, and the relationship with Amazon - Summary of material risks includes: ability to attract new business and retain key clients, profitability based on utilization, pricing, and cost management, potential for client consolidation, and clients expanding insourcing activities[17][21] - Operational risks include managing international operations (Philippines, Jamaica, Pakistan, Nicaragua), anticipating and implementing IT solutions, and recruiting, engaging, motivating, managing, and retaining a global workforce[17][21] - Legal and regulatory risks encompass compliance with privacy, data protection, information security, employment, and anti-corruption laws, as well as the effect of cyberattacks[17][21] PART I ITEM 1. BUSINESS IBEX Limited is a global business process outsourcing (BPO) and customer engagement technology solutions provider, focusing on delivering extraordinary customer experiences (CX) for over 130 recognized brands. The company leverages its proprietary WaveX technology platform, agent-first culture, and global delivery model to offer digital and omni-channel customer engagement, digital marketing, e-commerce, and CX analytics solutions. Its strategic approach emphasizes technology-led solutions, high-performing culture, and a 'land and expand' model with high-growth 'New Economy' and 'Blue Chip' clients, driving significant growth in nearshore and offshore markets - IBEX is a leading provider in global business process outsourcing and end-to-end customer engagement technology solutions, driving CX for over 130 recognized brands[27][28] - The company's strategy is to deliver great customer experiences, focusing on clients who view CX as a competitive differentiator, transforming from a traditional BPO to a technology-led provider[42] - IBEX employs a 'land and expand' growth model, winning clients with initial services and then expanding scope with additional services or new geographies, supported by a strong track record and high client retention[46][47] Company Overview IBEX Limited is a global provider of business process outsourcing and customer engagement technology solutions, specializing in creating exceptional customer experiences (CX) for over 130 leading brands. It utilizes a proprietary technology platform, a strong company culture, and operational excellence to enhance customer loyalty, brand awareness, and revenue - IBEX is a leading provider in global business process outsourcing and end-to-end customer engagement technology solutions[27] - The company helps over 130 clients create innovative and differentiated customer experiences to increase loyalty, enhance brand awareness, and drive revenue[28] Our Service Offerings IBEX offers a differentiated suite of digital and operational solutions across three main areas: ibex Connect (omni-channel customer service, technical support, revenue generation, back-office services), ibex Digital (digital marketing, e-commerce technology for customer acquisition), and ibex CX (digital CX surveys and analytics for customer experience management) - IBEX Connect delivers omni-channel customer service, technical support, revenue generation, and back-office services, forming the core of the company's revenue[31] - IBEX Digital provides digital marketing, e-commerce technology, and platform solutions to help businesses build, grow, and scale customer acquisition[32] - IBEX CX measures, monitors, and manages clients' holistic customer experiences, leveraging data and feedback to improve retention and identify service issues[33] Our Culture IBEX fosters an 'agent-first' culture through branded sites, technology-enabled recruiting, specific benefits, and world-class employee engagement, resulting in an Employee Net Promoter Score (eNPS) of 68 and various industry recognitions for being a top employer and for diversity - IBEX is built around an agent-first culture, delivered through branded sites, technology-enabled recruiting, and world-class employee engagement[34] - The company boasts an Employee Net Promoter Score (eNPS) of 68, indicating strong employee satisfaction and loyalty[34] - IBEX has received multiple awards, including 'Philippines Best Employer Brand Award 2023', 'America's Greatest Workplaces for Diversity 2023', and 'Best Place to Work in Nicaragua 2020, 2021, 2022'[40] Our Technology The WaveX technology platform underpins IBEX's service offerings, providing digital and technology solutions to enhance agent interactions, client CX, and overall performance. It drives insights and manages customer journey interactions, offering innovative, automated, and customizable solutions more efficiently than traditional labor-arbitrage models - WaveX is IBEX's proprietary technology platform, a differentiated suite of digital and technology solutions designed to power enhanced agent interactions and exceptional client CX[35] - The platform helps clients drive insights and manage interactions across their entire customer journey, providing innovative, automated, and customizable solutions[35] Our Business Insights IBEX's WaveX technology and analytics insight platform suite is deployed across over 90 client engagements, improving customer interactions, contact center performance, and client outcomes through enhanced analytics and process improvements in recruiting, hiring, training, management, and customer experience - IBEX's WaveX technology and analytics insight platform suite improves customer interactions, customer insights, contact center performance, and client outcomes[36] - These solutions are deployed across more than 90 client engagements, delivering enhanced analytics and process improvements[36] Our Flexible Operating Delivery Model IBEX operates a global delivery model with 31 centers across onshore (U.S.), nearshore (Nicaragua, Honduras, Jamaica), and offshore (Philippines, Pakistan) locations, supporting both on-site and work-at-home capabilities. As of June 30, 2023, 94% of its on-site capacity is in high-growth, high-margin nearshore and offshore markets, reflecting a strategic shift away from domestic on-site capacity - IBEX's global delivery model includes 31 centers in the United States, Philippines, Jamaica, Nicaragua, Pakistan, and Honduras, with approximately 24,000 agents as of June 30, 2023[37] - The company has experienced over 55% growth in on-site nearshore and offshore capacity in the last three fiscal years, while domestic on-site capacity has shrunk by almost half[40] - As of June 30, 2023, 94% of total on-site capacity is in high-growth, high-margin nearshore and offshore markets, catering to digital-first or digitally transforming clients[40][41] Our Strategic Approach IBEX's strategy prioritizes delivering exceptional customer experiences for clients who view CX as a competitive differentiator, transforming into a technology-led partner. This 'BPO 2.0' approach focuses on high-growth clients needing digital-first, integrated omni-channel solutions, leveraging innovative technology, operational excellence, a strong company culture, and a customer-devoted mentality - IBEX's strategy is to deliver great customer experiences and focus on clients who view CX as a competitive differentiator, transforming into a technology-led provider[42] - The company's growth strategy is predicated on four pillars: innovative technology, strong operational track record, high-performing company culture, and a customer-devoted mentality[44][48] - IBEX employs a 'land and expand' approach, winning clients with initial services and then expanding the partnership scope with additional services or new geographies[46] Our Clients IBEX partners with both 'New Economy' companies (digitally driven disruptors in high-growth verticals like tech, e-commerce, consumer services) and 'Blue Chip' companies (Fortune 500 brands in telecommunications, financial services, healthcare) that are digitally transforming. Its core focus is on 'BPO 2.0' clients, which comprised 77% of consolidated revenue in FY2023 and have grown at a 68% CAGR since 2016 - IBEX partners with 'New Economy' companies (digitally driven disruptors in high-growth verticals) and 'Blue Chip' companies (Fortune 500 brands across various industries)[48][49][50] -