IBEX(US:IBEX)2024-11-09 18:19Financial Data and Key Metrics Changes - IBEX achieved record Q1 revenue of $129.7 million, up 4.1% from $124.6 million in the prior year quarter [9][17] - Adjusted EBITDA margin improved to 12%, marking the ninth increase in the last ten quarters [10][22] - Record net income of $7.5 million, slightly up from $7.4 million in the prior year quarter [10][20] - Adjusted EPS increased to $0.52, up 30% from $0.40 a year ago [10][23] Business Line Data and Key Metrics Changes - Revenue growth was driven by HealthTech (23.4%), retail and e-commerce (8.6%), and travel transportation and logistics (10%), while FinTech declined by 13% [17][24] - Higher-margin offshore and nearshore revenues now comprise 76% of total revenue, up from 75% in the prior year quarter [18] - Digital and omnichannel services represented 76% of total revenue, consistent with the prior year [19] Market Data and Key Metrics Changes - HealthTech increased to 14.1% of first quarter revenue from 11.9% in the prior year quarter [24] - Retail and e-commerce increased to 24.5% from 23.4% in the prior year quarter [24] - Exposure to FinTech decreased to 12.4% from 14.8% in the prior year quarter [25] Company Strategy and Development Direction - The company is focused on margin expansion by growing higher-margin services and geographies, which represent nearly 80% of overall business [7][8] - IBEX aims to leverage AI solutions to extend its competitive advantage [8][15] - The company expects to continue driving revenue growth and margin expansion throughout FY 2025 [15][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining momentum and achieving mid-single-digit growth, driven by new client signings and market share gains [34][36] - There are still challenges in the macro environment, but the company is optimistic about its growth trajectory [36][37] - The company anticipates revenue for FY 2025 to be in the range of $515 million to $525 million, raising the lower end of the previous guidance [31] Other Important Information - Capital expenditures increased to $3.6 million, or 2.8% of revenue, driven by expansions in offshore and nearshore regions [27] - Free cash flow was $4.1 million, down from $6.6 million in the prior year quarter due to increased capital expenditures [28] - The company repurchased approximately 282,000 shares for $4.7 million in the first quarter [29] Q&A Session Summary Question: Revenue inflection and growth sustainability - Management noted strong visibility from new client signings and market share gains, contributing to growth momentum [34][35] Question: HealthTech growth drivers - Growth in HealthTech was attributed to both new client wins and existing clients increasing their business with IBEX [38]