IBEX(US:IBEX)2021-09-15 00:07Financial Data and Key Metrics Changes - Full-year revenue increased by 9.5% to $443.7 million compared to the prior year [39] - Adjusted EBITDA increased to $66.2 million or 14.9% of revenue compared to $55.2 million or 13.6% of revenue in the prior year [39] - Adjusted net income for the full year was $23.6 million versus $17 million last year [39] - Fourth quarter revenue of $108.9 million increased by 7.9% compared to the year-ago quarter [49] - Non-GAAP pro forma fully diluted adjusted earnings per share increased to $0.31, compared to $0.16 in the prior year quarter [49] Business Line Data and Key Metrics Changes - Revenue from clients won since 2016 is approximately $230 million, up 40% from the prior year, with a five-year CAGR of 84% [10] - The top three legacy clients represented 34.2% of overall revenue, down from 43.7% last year, exiting the year at 28.2% in Q4 [40] - Retail and e-commerce revenue increased to 19.6% of annual revenue compared to 16.8% in the prior year [40] - FinTech and HealthTech combined revenue increased to 19.3% in Q4, up from 9.8% in the fourth quarter of fiscal year '20 [41] Market Data and Key Metrics Changes - The company has established a strong presence in nearshore and offshore markets, with a 34% increase in new seats [11] - The company plans to grow its Honduran workforce to over 2,000 employees within the next two years [12] - Capacity utilization remains strong at 77% in June 2021, down from 84% in June 2020 [46] Company Strategy and Development Direction - The company is focused on becoming a leader in digital-first business solutions, emphasizing tech-led solutions and customer experience [8] - The company aims to diversify its client base and reduce reliance on legacy clients, with a focus on high-margin digital-first services [11] - The company is investing in new sites and expanding its workforce to meet growing demand [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and the strength of its sales pipeline, expecting revenue growth of 7% to 9% in fiscal year '22 [50] - The company anticipates an acceleration in revenue growth beginning in the second quarter of fiscal year '22 [50] - Management highlighted the importance of maintaining employee health and safety during COVID-19, investing nearly $13 million in protective measures [17] Other Important Information - The company ended the fiscal year with $57.8 million in cash and total borrowings of $28.5 million [48] - The company has a best-in-class employee net promoter score of 71, indicating high employee satisfaction [20] Q&A Session Summary Question: What has been the experience ramping nearshore sites? - Management reported no margin degradation while bringing capacity online and expressed confidence in filling new sites [55] Question: What drove the significant step-down in large account concentration during Q4? - Management attributed the decline to one-time events affecting two major clients, but noted that market share with those clients expanded despite revenue declines [59] Question: How have remote working costs impacted operating margins? - Management indicated that operating costs have increased due to COVID-related expenses, but also noted advantages such as reduced travel expenses [61][65] Question: What is the expected revenue growth despite adding new workstations? - Management explained that revenue growth is conservative due to various factors, including the Delta variant and ongoing investments in the business [71] Question: What is the visibility across different solutions offered by the company? - Management stated that the Connect part of the business has strong revenue visibility, while digital marketing is less predictable due to its dependence on client campaigns [90]