NASDAQ$IBEX

IBEX Limited · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Announced financial results for the second fiscal quarter ended December 31, 2023.

IBEX Limited reported a decrease in revenue and net income compared to the prior year quarter, with revenue declining by 4.8% to $132.6 million and net income decreasing to $6.1 million. The company won eight new client relationships and made strategic investments in sales and AI capabilities.

  • Revenue decreased by 4.8% year-over-year to $132.6 million.
  • Net income was $6.1 million, down from $9.3 million in the prior year quarter.
  • Diluted earnings per share were $0.33, compared to $0.49 in the prior year quarter.
  • Eight new client relationships were won across various sectors.

Headline financials

Total Revenue

$133M

Previous: $132M+0.2%
EPS

$0.33

Previous: $0.62-46.8%
Net Income Margin

4.6%

Previous: 6.7%-31.3%
Adjusted EBITDA

$14.3M

Previous: $19.4M-26.3%
Adjusted EBITDA Margin

10.8%

Previous: 13.9%-22.3%
Capital Expenditures

-$4.94M

Previous: $7.95M-162.2%
Free Cash Flow

$1.13M

Previous: -$2.66M+142.6%
Net Income

$6.08M

Previous: $11.3M-46.1%
Operating Income

$6.95M

Previous: $15.4M-54.8%
Gross Profit

-$95.9M

Previous: $33.4M-387.3%
Cash & Equivalents

$49M

Previous: $38.1M+28.7%
Total Assets

$298M

No prior period
Stock-Based Comp

$1.43M

Previous: $1.53M-6.9%

Revenue & EPS history

IBEX · Revenue · Quarterly

$133M

Q2 2024+0.2%vs Q2 2023
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Forward guidance

The company expects third quarter revenues to trend similarly to the first two quarters on a year-over-year basis, with an anticipated inflection towards growth in the fourth quarter. Full year revenue is expected to be between $505 and $510 million, with adjusted EBITDA margin in the range of 12-13%.

Tailwinds

  • New client ramps reaching scale in the fourth quarter will drive growth.
  • Strategy of driving growth in higher margin offshore regions.
  • New client wins will accelerate growth.
  • Cost savings through optimizing site footprint will drive improvement in adjusted EBITDA margins.
  • Confident that the strategy will drive improvement in adjusted EBITDA margins for the second half of the fiscal year and in the years ahead.

Headwinds

  • Softness in several client volumes has resulted in lower revenues.
  • Volume trajectory is expected to continue for the near term.
  • Third quarter revenues are expected to trend similarly to the first two quarters on a year over year basis.
  • Adverse impact realized year over year to revenue and EBITDA associated with the deferral of revenue for new logo and client ramps.
  • Strategic investments made for the business in technology and sales & marketing, resulting in lower income from operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+4.9%

Avg return

Earnings day

+6.5%

Avg return

5 days after

+6.3%

Avg return

30 days after

61%

14 / 23 earnings

Positive

+36.1%

Q4 2020

Best reaction

-27.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.9%+10.2%+6.3%
Q2 2026+2.3%-11.8%-10.8%
Q1 2026-0.6%-0.2%-0.2%
Q3 2025+19.2%+9.2%+16.6%
Q2 2025+10.9%+19.9%+14.3%
Q1 2025-0.8%-1.1%+0.5%
Q4 2024+18.8%+16.1%+17.4%
Q3 2024+2.2%+5.1%+9.5%
Q2 2024-8.7%-13.7%-11.0%
Q1 2024+2.2%+6.4%+5.9%
Q4 2023-27.0%-16.9%-13.6%
Q3 2023+4.8%+15.0%+14.4%
Q2 2023+12.4%+12.4%-0.0%
Q1 2023+12.3%+14.1%+19.2%
Q4 2022+8.8%+11.5%+26.2%
Q3 2022-3.1%+2.6%+3.5%
Q2 2022+25.5%+23.2%+24.2%
Q1 2022-12.5%-12.5%-26.0%
Q4 2021-2.1%-3.9%-8.4%
Q3 2021-5.6%-4.7%-22.0%
Q2 2021+8.6%+6.6%-2.0%
Q1 2021+9.1%+18.9%+23.7%
Q4 2020+36.1%+43.1%+57.4%
Q1 2020
Q2 2020
Q4 2019
Q2 2018
Q1 2018
Q2 2016
Q1 2016

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