Financial Data and Key Metrics Changes - The company reported a revenue growth of 16.5%, reaching $151.2 million compared to $129.7 million in the prior year quarter [12] - Adjusted EPS increased by 74% to $0.90 from $0.52 in the prior year quarter [17] - Free cash flow reached a record of $8 million, up from $4.1 million in the prior year quarter [19] - Adjusted EBITDA increased by 24.9% to $19.5 million, representing 12.9% of revenue, compared to 12.0% in the prior year [16] Business Line Data and Key Metrics Changes - Revenue growth was driven by retail and e-commerce (25%), health tech (19.5%), and travel, transportation, and logistics (15.4%), while telecommunications declined by 22.5% [13] - The fintech vertical grew 3.4%, marking a positive trajectory after previous declines [13] - Higher-margin offshore revenues grew by 20%, while near-shore locations grew by 7% and onshore regions grew by 21% [13] Market Data and Key Metrics Changes - The company achieved organic revenue growth of 13% over the last 12 months, totaling $580 million [6] - The highest-margin digital and omnichannel services grew by 25%, now accounting for 82% of total revenue [14] - Client diversification improved, with the largest client accounting for 10% of revenue, and top 5, top 10, and top 25 client concentrations representing 37%, 55%, and 79% of overall revenue, respectively [17] Company Strategy and Development Direction - The company is focused on leveraging AI capabilities to enhance operational efficiency and client experiences, positioning itself as a leader in the CX space [5][28] - Continued investment in higher-margin delivery locations and services is expected to drive future growth and margin expansion [21] - The company raised its revenue guidance for FY 2026 to a range of $605 million-$620 million, up from $590 million-$610 million [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for FY 2026 and beyond, citing strong financial results and a healthy balance sheet [21] - The impact of AI is seen as a competitive advantage, with expectations for it to become a significant revenue driver by FY 2027 [28][29] - The company remains optimistic about its growth trajectory, supported by a strong pipeline of new clients and existing client retention rates exceeding 98% [9] Other Important Information - The company reported a significant improvement in days sales outstanding (DSOs), decreasing to 71 days from 75 days a year ago [19] - Capital expenditures for the quarter were $7.6 million, or 5.1% of revenue, reflecting investments in offshore regions [19] - The employee Net Promoter Score reached an all-time high of 77, indicating strong employee engagement [9] Q&A Session Summary Question: Insights on AI's impact on the industry and the company - Management noted that AI has been a positive catalyst for the company, with significant investments made to leverage AI for operational efficiency and customer experiences [26][28] - The company is ahead of competitors in AI deployment, which is expected to enhance growth and margin expansion in the future [28][29] Question: Clarification on gross margins and investment impacts - Management acknowledged that gross margins were slightly down in Q1 due to investments in AI and training revenue deferrals, but long-term projections remain positive [31][33]

Core Insights - The company demonstrated resilience in Q3 2025, achieving a like-for-like growth of 1.5%, consistent with the growth rate for the first nine months of the year [3][4] - The total revenue for the company reached EUR 7.6 billion in Q3 2025, maintaining the same growth trajectory as the first half of the year [3] Business Performance - The Core BPO business showed healthy growth and strong momentum in Q3, indicating positive performance in this segment [4]

Financial Data and Key Metrics Changes - Fiscal year 2025 revenue reached $558.3 million, a 10% increase from the previous year, with Q4 revenues increasing by 18% year-over-year [8][19] - Record adjusted EBITDA of $72 million for FY 2025, up more than 10% from the previous year [8][21] - Adjusted EPS for FY 2025 was $2.75, a 31% increase from the prior year, with adjusted net income rising to $43 million, up 12% [9][21] - Free cash flow for Q4 was $23 million, marking the strongest quarter ever, and a record $27 million for the year [9][24] Business Line Data and Key Metrics Changes - Revenue growth was driven by retail and e-commerce (25%), health tech (19%), and travel, transportation, and logistics (10%) [12][13] - Digital and omnichannel services represented 82% of total revenue, up from 77% in the prior year quarter, growing 25% year-over-year [13][14] - Offshore revenue grew 17% year-over-year, comprising 49% of total revenue, maintaining a strong gross margin of 31.4% [13][19] Market Data and Key Metrics Changes - Onshore revenue increased by 13%, while offshore revenue grew by 15% year-over-year [19] - Nearshore revenue, which comprised 25% of total revenue, declined slightly by 3% [19] - The fintech vertical's revenue exposure decreased to 10.6% from 13.7% in the prior year quarter, with expectations for stabilization [18] Company Strategy and Development Direction - The company has transitioned to BPO 3.0, focusing on AI solutions to enhance customer experience and operational efficiency [6][8] - The strategy emphasizes a blend of culture, technology (WaveX), and analytics (BPO 2.0) to outperform competitors and gain market share [4][5] - Continued investments in AI capabilities and geographic expansions, particularly in high-margin offshore regions, are planned for future growth [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform the market, citing a strong balance sheet with zero net debt and robust free cash flow generation [10][11] - The company anticipates revenue for FY 2026 to be in the range of $590 to $610 million, with adjusted EBITDA expected between $75 to $79 million [24][25] - Management highlighted the successful transition from proof of concept to full-scale AI solution deployments, which is expected to drive future growth [34][35] Other Important Information - The company has maintained a well-diversified client portfolio, with the largest client accounting for less than 10% of revenue [17] - Capital expenditures for FY 2025 were $18 million, up from $9 million in the prior year, driven by expansions in high-demand regions [22] Q&A Session Summary Question: Insights on Q4 performance and any one-time factors - Management confirmed that the growth in Q4 was sustainable and driven by winning market share and strong operational performance [30] Question: Commentary on Gen AI impact - Management acknowledged the potential for automation but emphasized the importance of owning the entire customer journey, positioning the company as a leader in AI-driven solutions [34][35]

Financial Data and Key Metrics Changes - Fiscal year 2025 revenue reached $558.3 million, a 10% increase from the previous year, with Q4 revenues rising 18% year-over-year to $147.1 million [7][12] - Adjusted EBITDA for FY 2025 was $72 million, up more than 10% from the prior year, with a record adjusted EPS of $2.75, reflecting a 31% increase [8][20] - Free cash flow for Q4 was $23 million, marking the strongest quarter ever, and total free cash flow for the year was $27 million [8][24] Business Line Data and Key Metrics Changes - Revenue growth was driven by retail and e-commerce (25% growth), health tech (19%), and travel, transportation, and logistics (10%) [12] - Digital and omnichannel services represented 82% of total revenue, up from 77% in the prior year, with a growth rate of 25% [12][18] - Offshore revenue grew 17% year-over-year, comprising 49% of total revenue, while onshore revenue increased 13% [12][18] Market Data and Key Metrics Changes - The fintech vertical's revenue share decreased to 10.6% from 13.7% year-over-year, while retail and e-commerce increased to 25.3% [17] - The company experienced growth in both onshore and offshore regions, with onshore revenue making up 24% of total revenue [18] Company Strategy and Development Direction - The company has transitioned to BPO 3.0, focusing on AI solutions to enhance customer experience and operational efficiency [6][10] - The strategy emphasizes a blend of culture, technology (WaveX), and analytics to outperform competitors and capture market share [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue outperforming the market, citing a strong balance sheet with zero net debt and robust free cash flow generation [9][10] - The company anticipates revenue for FY 2026 to be between $590 million and $610 million, with adjusted EBITDA expected to range from $75 million to $79 million [24] Other Important Information - The company has successfully entered the Indian market, marking a significant milestone in its expansion strategy [8] - Capital expenditures for FY 2025 were $18 million, up from $9 million in the prior year, driven by demand in high-margin regions [22] Q&A Session Summary Question: Insights on Q4 performance and any one-time impacts - Management confirmed that the growth in Q4 was sustainable and driven by market share gains and strong operational performance [30] Question: Commentary on the impact of Gen AI - Management indicated that while there are opportunities for automation, owning the entire customer journey is crucial, and the company is well-positioned to leverage AI solutions [35][36]

Group 1 - The article discusses the rapid growth of the Business Process Outsourcing (BPO) industry in Africa, particularly in Kenya, as a response to the increasing global demand for digital labor such as AI training and data annotation [1][2] - Currently, there are approximately 1 million BPO workers in Africa, representing only 2% of the global total, but the sector is expected to grow at an annual rate of 14% by 2028, nearly double the global average [1] - Kenya's BPO workforce is projected to grow even faster at 19% annually, with the government planning to introduce a national BPO policy aimed at creating 1 million new jobs within five years [1] Group 2 - Africa has natural advantages for BPO, including a large young population, high English proficiency, and a cost-effective labor force, with Kenyan BPO employees earning about $233 per month, significantly lower than their counterparts in Europe and the US [1][2] - The article highlights a structural shift in the global labor market, with labor shortages in many Western countries prompting companies to seek new human resources in Africa [2] - The BPO industry is evolving from low-skill tasks to more complex roles involving language review and AI-assisted decision-making, indicating a need for talent upgrading and educational investment to fully capitalize on the opportunities [2]

Core Viewpoint - The BPO (Business Process Outsourcing) market is experiencing significant disruption due to advancements in AI technology, which presents both opportunities and challenges for traditional BPO companies and emerging AI startups [3][4][10]. BPO Market Overview - The BPO market is projected to exceed $300 billion in 2024 and is expected to surpass $525 billion by 2030, driven by the need for cost-effective handling of repetitive tasks such as customer support and IT outsourcing [3]. - Major BPO companies like Cognizant, Infosys, and Wipro reported revenues ranging from $10 billion to $20 billion in their latest fiscal years, indicating the scale and importance of the industry [8]. Challenges in Traditional BPO - Traditional BPO providers often face inefficiencies due to long processing times, lack of accountability, and insufficient background information, leading to poor customer experiences [3][6]. - Many BPO firms were established decades ago and rely on outdated systems and client relationships rather than cutting-edge technology [9]. AI's Role in BPO Transformation - Modern AI technologies are enabling the productization of BPO services, allowing for improved efficiency and customer experience [10][11]. - AI assistants can operate continuously, adapt to cultural norms, and support multilingual interactions, significantly reducing the need for human intervention [11]. Opportunities for AI Startups - AI startups are seizing opportunities in customer support, which constitutes the largest segment of BPO spending, exceeding $100 billion [14]. - Vertical-specific AI assistants are successfully productizing core BPO use cases, creating competitive barriers against general-purpose AI solutions [15]. Backend Operations and Cost Reduction - AI startups are effectively reducing BPO expenditures in backend operations by automating tasks such as data extraction and verification, which were traditionally labor-intensive [16]. - Companies like Loop are utilizing AI for invoice verification and claims management, demonstrating significant efficiency gains [16]. Competitive Landscape - Traditional BPO companies are beginning to adopt AI technologies, with firms like Wipro and Infosys reporting significant increases in AI adoption rates [19]. - The competition between established BPO firms and AI startups is intensifying, with startups having the advantage of agility and innovation [20]. Strategic Recommendations for Startups - Startups should focus on building AI-native companies that can productize BPO services and directly compete with traditional providers [21]. - Targeting industries that are reluctant to adopt software solutions and delivering results directly may be a viable strategy for market entry [22]. - Engaging in partnerships or acquisitions to enhance service offerings and customer bases can provide a competitive edge [21][22].