IBEX(US:IBEX)2025-05-08 21:32Financial Data and Key Metrics Changes - The company reported record revenue of $140.7 million, an increase of 11% from $126.8 million in the prior year quarter [18] - Adjusted EBITDA was $19.4 million with a margin of 13.8%, compared to $19.2 million and 15.1% in the same period last year [21] - Adjusted EPS increased to $0.82, up 18% from $0.70 in the prior year quarter [22] - Net income slightly increased to $10.5 million from $10.3 million in the prior year quarter [20] Business Line Data and Key Metrics Changes - Revenue growth was driven by health tech (20%), travel, transportation, and logistics (19%), and retail and e-commerce (15%), while FinTech saw a decline of 12% [18] - Higher margin integrated omni-channel revenue grew by 16% year over year, now representing 81% of overall business [11][19] - Offshore revenues comprised 51% of total revenue, up from 48% in the prior year quarter [19] Market Data and Key Metrics Changes - The company achieved significant market share gains, particularly in healthcare and retail sectors, contributing to the strong performance in Q3 [33] - The entry into the India market is expected to provide additional growth opportunities [6][13] Company Strategy and Development Direction - The company is focused on expanding its high-margin services and regions, with a robust pipeline of over 75 opportunities in AI solutions [10][19] - A new $15 million share repurchase program was announced, reflecting confidence in the business trajectory [15][28] - The company aims to leverage AI solutions to enhance service offerings and drive revenue growth [41][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business trajectory and raised full-year guidance for revenue and EBITDA [15][28] - The impact of U.S. trade tariffs is viewed as minimal, with no significant effect on client volumes [14] - The company anticipates continued growth in higher margin regions and services, particularly with the expansion into India [19][20] Other Important Information - The company generated $3.6 million of free cash flow and completed the repayment of a seller financing note [12] - Capital expenditures were $5.3 million, representing 3.7% of revenue, driven by expansion efforts [25] Q&A Session Summary Question: Inquiry about sequential trends and future expectations - Management noted that Q3 did not contract from the typical seasonal decline and attributed this to market share gains and new logo revenue [33][34] Question: Clarification on AI's impact on margins - Management explained that while investments in India impacted margins, gross margins improved overall due to high-margin service growth [39] Question: Timing of revenue uplift from AI implementations - Management indicated that revenue from AI solutions would start to materialize in Q4, with a cascading effect expected in FY '26 [45][46]