AI agent solutions (chatbots
Search documents
IBEX(IBEX) - 2025 Q4 - Earnings Call Transcript
2025-09-11 21:32
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 [8][19][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 [9][21] - Free cash flow for Q4 was $23 million, marking the strongest quarter ever, and total free cash flow for the year was a record $27 million [9][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%) [13][19] - Digital and omnichannel services represented 82% of total revenue, up from 77% in the prior year, with a growth rate of 25% year-over-year [14][19] - Offshore revenue grew 17% year-over-year, comprising 49% of total revenue, while onshore revenue increased 13% [13][19] Market Data and Key Metrics Changes - The company achieved significant growth in offshore regions, with a 15% increase in offshore revenue for FY 2025 [19][20] - The nearshore region saw a slight decline of 3%, indicating a shift of some business to offshore locations [19] 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 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 [10][11] - The company anticipates revenue for FY 2026 to be in the range of $590 million to $610 million, with adjusted EBITDA expected between $75 million and $79 million [24] Other Important Information - The company has successfully entered the Indian market, marking a significant milestone in its expansion strategy [9][10] - The largest client now accounts for less than 10% of revenue, indicating a well-diversified client portfolio [17] Q&A Session Summary Question: Comments on Q4 performance and sustainability of growth - Management confirmed that the growth in Q4 was sustainable and driven by winning market share and strong operational performance [30][31] Question: Impact of Gen AI on business - Management acknowledged the potential for automation through Gen AI but emphasized the importance of owning the entire customer journey, positioning the company as a leader in integrating AI solutions [34][35]