IBEX(US:IBEX)2021-05-19 02:30Financial Data and Key Metrics Changes - IBEX reported revenues of $108.8 million for Q3 FY2021, an increase of 7.6% compared to the prior year [6][34] - Adjusted EBITDA increased by 12% to $16.7 million, resulting in a record EBITDA margin of 15.3% [6][36] - Non-GAAP EPS rose to $0.32 from $0.25 per share [6][35] - Year-to-date revenues reached $334.8 million, up 10% from the previous year [35] Business Line Data and Key Metrics Changes - New Economy revenue grew by 6.3%, while non-voice revenue increased by 10.2% and digital revenue rose by 1.8% compared to the prior year [34] - Adjusted EBITDA margin improved due to growth in higher-margin services such as non-voice and digital services [37] - Revenue from clients outside the top three legacy clients increased by 25.9% [39] Market Data and Key Metrics Changes - Telecommunications revenue decreased to 29.1% from 36.3% year-over-year, while retail and e-commerce increased to 19.7% from 16.5% [40] - FinTech revenue rose to 9.6% from 7%, and healthcare revenue increased to 4.7% from 3.6% [40] Company Strategy and Development Direction - IBEX is focused on expanding its presence in the New Economy and key strategic verticals, particularly in fintech and healthcare [9][11] - The company aims to reduce its reliance on the telecommunications sector, which now accounts for under 30% of total revenue [10] - IBEX's BPO 2.0 strategy emphasizes digital transformation and customer experience [18][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business outlook, citing strong demand from new economy clients and ongoing digital transformation efforts [33] - The company reaffirmed its guidance for revenue between $445 million and $448 million and adjusted EBITDA of $62 million to $63.5 million for FY2021 [46] - Management highlighted the importance of agility and flexibility in adapting to market changes, particularly in the context of the ongoing pandemic [24][68] Other Important Information - IBEX's balance sheet remains strong with $62.6 million in cash, bolstered by the net proceeds from its IPO [42] - The company has received multiple awards for workplace culture and customer service excellence [11][12] Q&A Session Summary Question: Talent acquisition challenges in the IT market - Management noted that competitive wages and a strong value proposition have helped IBEX attract talent despite broader market challenges [52][54] Question: Current pipeline and its nature - The pipeline includes high-profile deals with marquee brands, particularly in fintech and healthcare, indicating strong future growth potential [56][57] Question: Expense and margin trajectory - Management acknowledged various factors affecting margins, including COVID-related costs, but expressed a generally positive outlook for future margins [60][61] Question: Sustainability of work-from-home arrangements - Management believes that work-from-home is here to stay in the U.S., with clients increasingly favoring flexible arrangements [67][68] Question: Impact of a specific client on revenue growth - Management indicated that the client in question is recovering, which will positively impact future revenue growth [70][72] Question: Guidance for Q4 and FY2022 - Management expects continued growth in Q4 and anticipates maintaining a growth rate of around 10% into FY2022 [78][80]