IBEX(US:IBEX)2023-02-16 01:19Financial 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]