IBEX Reports Record Quarterly Revenue and Strong EPS
IBEX reported strong financial results for Q2 FY2025 ended December 31, 2024. The company achieved record quarterly revenue of $140.7 million, representing a 6.1% growth year-over-year. Key highlights include:
- Net income increased 52.6% to $9.3 million
- Adjusted EBITDA grew 15.4% to $16.5 million with margin expansion to 11.8%
- Adjusted EPS rose 36.3% to $0.59
- Completed $70 million share repurchase from TRGI, eliminating controlled company status
Growth was driven by strong performance in HealthTech (+31.2%), Travel, Transportation and Logistics (+16.7%), and Retail & E-commerce (+4.4%). The company raised its FY2025 guidance, now expecting revenue between $525-535 million and adjusted EBITDA of $68-69 million.
IBEX ha riportato risultati finanziari solidi per il secondo trimestre dell'anno fiscale 2025, conclusosi il 31 dicembre 2024. L'azienda ha raggiunto un fatturato trimestrale record di 140,7 milioni di dollari, con una crescita del 6,1% rispetto all'anno precedente. I punti salienti includono:
- L'utile netto è aumentato del 52,6% a 9,3 milioni di dollari
- L'EBITDA rettificato è cresciuto del 15,4% a 16,5 milioni di dollari, con un'espansione del margine all'11,8%
- L'EPS rettificato è aumentato del 36,3% a 0,59 dollari
- Completato un riacquisto di azioni da 70 milioni di dollari da TRGI, eliminando lo stato di società controllata
La crescita è stata sostenuta da una forte performance in HealthTech (+31,2%), Viaggi, Trasporti e Logistica (+16,7%) e Vendita al dettaglio & E-commerce (+4,4%). L'azienda ha alzato le previsioni per l'anno fiscale 2025, prevedendo ora un fatturato tra i 525 e i 535 milioni di dollari e un EBITDA rettificato di 68-69 milioni di dollari.
IBEX informó sobre resultados financieros sólidos para el segundo trimestre del año fiscal 2025, que finalizó el 31 de diciembre de 2024. La compañía logró un ingreso trimestral récord de 140,7 millones de dólares, lo que representa un crecimiento del 6,1% interanual. Los aspectos destacados incluyen:
- El ingreso neto aumentó un 52,6% a 9,3 millones de dólares
- El EBITDA ajustado creció un 15,4% a 16,5 millones de dólares, con una expansión del margen al 11,8%
- El EPS ajustado aumentó un 36,3% a 0,59 dólares
- Se completó una recompra de acciones de 70 millones de dólares de TRGI, eliminando el estatus de empresa controlada
El crecimiento fue impulsado por un sólido desempeño en HealthTech (+31,2%), Viajes, Transporte y Logística (+16,7%) y Venta al por menor y E-commerce (+4,4%). La compañía elevó su guía para el año fiscal 2025, esperando ahora ingresos entre 525 y 535 millones de dólares y un EBITDA ajustado de 68-69 millones de dólares.
IBEX는 2024년 12월 31일 종료된 2025 회계연도 2분기 강력한 재무 결과를 보고했습니다. 이 회사는 분기 수익 기록인 1억 4070만 달러를 달성했으며, 이는 전년도 대비 6.1% 성장한 수치입니다. 주요 내용은 다음과 같습니다:
- 순이익이 52.6% 증가하여 930만 달러에 달함
- 조정 EBITDA가 15.4% 증가하여 1650만 달러에 이르고, 마진이 11.8%로 확대됨
- 조정 EPS가 36.3% 상승하여 0.59달러에 달함
- TRGI로부터 7000만 달러 규모의 자사주 매입을 완료하여 통제회사 상태를 없앰
성장은 헬스테크(+31.2%), 여행, 운송 및 물류(+16.7%), 소매 및 전자상거래(+4.4%)에서의 강력한 성과에 의해 이루어졌습니다. 회사는 2025 회계연도 가이드를 상향 조정하여, 이제 5억 2500만 달러에서 5억 3500만 달러 사이의 수익과 6800만 달러에서 6900만 달러 사이의 조정 EBITDA를 예상하고 있습니다.
IBEX a rapporté des résultats financiers solides pour le deuxième trimestre de l'exercice 2025, clôturé le 31 décembre 2024. L'entreprise a réalisé un chiffre d'affaires trimestriel record de 140,7 millions de dollars, représentant une croissance de 6,1 % par rapport à l'année précédente. Les points forts incluent :
- Le bénéfice net a augmenté de 52,6 % pour atteindre 9,3 millions de dollars
- L'EBITDA ajusté a progressé de 15,4 % pour atteindre 16,5 millions de dollars, avec une expansion de la marge à 11,8 %
- Le BPA ajusté a augmenté de 36,3 % à 0,59 dollar
- Un rachat d’actions de 70 millions de dollars a été réalisé auprès de TRGI, éliminant le statut de société contrôlée
Cette croissance a été soutenue par une performance solide dans le secteur de la santé (+31,2 %), le voyage, le transport et la logistique (+16,7 %) et le commerce de détail & E-commerce (+4,4 %). L'entreprise a rehaussé ses prévisions pour l'exercice 2025, s'attendant désormais à un chiffre d'affaires compris entre 525 et 535 millions de dollars et un EBITDA ajusté de 68-69 millions de dollars.
IBEX hat starke finanzielle Ergebnisse für das zweite Quartal des Geschäftsjahres 2025, das am 31. Dezember 2024 endete, gemeldet. Das Unternehmen erzielte einen rekordverdächtigen Quartalsumsatz von 140,7 Millionen Dollar, was einem Wachstum von 6,1 % im Vergleich zum Vorjahr entspricht. Die wichtigsten Highlights umfassen:
- Der Nettogewinn stieg um 52,6 % auf 9,3 Millionen Dollar
- Das bereinigte EBITDA wuchs um 15,4 % auf 16,5 Millionen Dollar, mit einer Margin-Ausweitung auf 11,8 %
- Das bereinigte EPS stieg um 36,3 % auf 0,59 Dollar
- Abschluss eines 70 Millionen Dollar Aktienrückkaufs von TRGI, wodurch der Status als kontrolliertes Unternehmen aufgehoben wurde
Das Wachstum wurde durch eine starke Leistung in HealthTech (+31,2 %), Reisen, Transport und Logistik (+16,7 %) sowie Einzelhandel und E-Commerce (+4,4 %) angetrieben. Das Unternehmen erhöhte seine Prognose für das Geschäftsjahr 2025 und erwartet nun Umsätze zwischen 525 und 535 Millionen Dollar sowie ein bereinigtes EBITDA von 68-69 Millionen Dollar.
- Record quarterly revenue growth of 6.1% to $140.7 million
- Net income increased 52.6% to $9.3 million
- Adjusted EBITDA margin expanded to 11.8%, up 100bps
- HealthTech vertical grew 31.2%
- Raised full-year revenue guidance to $525-535 million
- FinTech vertical declined 14.7%
- Net debt position of $13.7 million compared to net cash of $61.2 million in June 2024
- Negative free cash flow of $3.2 million
Insights
IBEX's Q2 results demonstrate robust operational execution and strategic transformation. The
The strategic
Sector performance reveals important trends: HealthTech's
The raised guidance (
- Quarterly revenue grew
6.1% versus prior year quarter - highest growth in 9 quarters - Strong adjusted EBITDA margin expansion year-over-year - 10 out of the last 11 quarters
- Adjusted EPS of
$0.59 - an increase of36% to prior year quarter - Raises guidance on revenue and lower end of EBITDA range
- Repurchased approximately 3.6 million shares from TRGI during the second quarter of fiscal year 2025, representing
21% of our shares outstanding and eliminating controlled company status
WASHINGTON, Feb. 06, 2025 (GLOBE NEWSWIRE) -- IBEX Limited (“ibex”), a leading provider in global business process outsourcing and end-to-end customer engagement technology solutions, today announced financial results for its second fiscal quarter ended December 31, 2024.
| Three months ended December 31, | Six months ended December 31, | ||||||||||||||||||||
| ($ millions, except per share amounts) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||
| Revenue | $ | 140,682 | $ | 132,634 | 6.1 | % | $ | 270,399 | $ | 257,243 | 5.1 | % | |||||||||
| Net income | $ | 9,268 | $ | 6,075 | 52.6 | % | $ | 16,799 | $ | 13,500 | 24.4 | % | |||||||||
| Net income margin | 6.6 | % | 4.6 | % | 200bps | 6.2 | % | 5.2 | % | 100bps | |||||||||||
| Adjusted net income (1) | $ | 9,615 | $ | 8,024 | 19.8 | % | $ | 18,647 | $ | 15,598 | 19.5 | % | |||||||||
| Adjusted net income margin (1) | 6.8 | % | 6.0 | % | 80bps | 6.9 | % | 6.1 | % | 80bps | |||||||||||
| Adjusted EBITDA (1) | $ | 16,537 | $ | 14,324 | 15.4 | % | $ | 32,125 | $ | 28,035 | 14.6 | % | |||||||||
| Adjusted EBITDA margin (1) | 11.8 | % | 10.8 | % | 100bps | 11.9 | % | 10.9 | % | 100bps | |||||||||||
| Earnings per share - diluted (2) | $ | 0.57 | $ | 0.33 | 73.6 | % | $ | 1.00 | $ | 0.72 | 38.0 | % | |||||||||
| Adjusted earnings per share - diluted (1,2) | $ | 0.59 | $ | 0.44 | 36.3 | % | $ | 1.11 | $ | 0.84 | 32.5 | % | |||||||||
| (1)See accompanying Exhibits for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure. | |||||||||||||||||||||
| (2)The current period percentages are calculated based on exact amounts, and therefore may not recalculate exactly using rounded numbers as presented. | |||||||||||||||||||||
“Coming off an outstanding start to fiscal year 2025, I am thrilled to report another quarter of record financial results,” said Bob Dechant, ibex CEO. “Q2 saw our highest revenue growth for ibex in two years with revenues growing over
“Q2 fiscal year 2025 was a strong quarter on all profitability metrics as adjusted EPS grew
Second Quarter Financial Performance
Revenue
- Revenue of
$140.7 million , an increase of6.1% from$132.6 million in the prior year quarter. Growth in HealthTech (+31.2% ), Travel, Transportation and Logistics (+16.7% ), and Retail & E-commerce (+4.4% ), was partially offset by declines in the FinTech vertical (-14.7% ).
Net Income and Earnings Per Share
- Net income increased to
$9.3 million compared to$6.1 million in the prior year quarter. Diluted earnings per share increased to$0.57 compared to$0.33 in the prior year quarter. The increases were primarily the result of the impact of revenue growth particularly in our higher margin offshore regions, improved gross margin performance, and fewer diluted shares outstanding compared to the prior year quarter. - Net income margin increased to
6.6% compared to4.6% in the prior year quarter. - Non-GAAP adjusted net income increased to
$9.6 million compared to$8.0 million in the prior year quarter (see Exhibit 1 for reconciliation). - Non-GAAP adjusted diluted earnings per share increased to
$0.59 compared to$0.44 in the prior year quarter (see Exhibit 1 for reconciliation). The increase per share was primarily attributable to the impact of higher revenue, improved operating margins and a lower share count.
Non-GAAP adjusted EBITDA
- Adjusted EBITDA increased to
$16.5 million compared to$14.3 million in the prior year quarter (see Exhibit 2 for reconciliation). - Adjusted EBITDA margin increased to
11.8% compared to10.8% in the prior year quarter (see Exhibit 2 for reconciliation).
Cash Flow and Balance Sheet
- Repurchased approximately 3.6 million shares from TRGI for an aggregate price of
$70 million during the second quarter of fiscal 2025. - Capital expenditures were
$4.3 million compared to$2.9 million in the prior year quarter. The increase in capital expenditures during this quarter was driven by capacity expansion to meet growing demand in our offshore and nearshore regions. - Cash flow from operating activities was
$1.1 million compared to$(1.6) million in the prior year quarter. Free cash flow was$(3.2) million compared to$(4.5) million in the prior year quarter (see Exhibit 3 for reconciliation). - Net debt was
$13.7 million compared to net cash of$61.2 million as of June 30, 2024 (see Exhibit 4 for reconciliation). The utilization of cash and debt is primarily attributable to the share repurchase from TRGI.
“We achieved strong top and bottom line second quarter results. We accelerated our top-line momentum with over
“Our profitability continues to improve, where for 10 of the last 11 quarters we have delivered year-over-year adjusted EBITDA margin expansion, enabling strategic investments in AI capabilities and sales resources. These results instill continued confidence in the execution of our strategy throughout 2025, enabling us to raise our fiscal year guidance and continue to return value to shareholders.”
Raised Fiscal Year 2025 Guidance
- Revenue is expected to be in the range of
$525 t o$535 million versus a previous range of$515 t o$525 million . - Adjusted EBITDA is expected to be in the range of
$68 t o$69 million versus a previous range of$67 t o$69 million . - Capital expenditures are expected to remain in the range of
$15 t o$20 million .
Conference Call and Webcast Information
IBEX Limited will host a conference call and live webcast to discuss its second quarter of fiscal year 2025 financial results at 4:30 p.m. Eastern Time today, February 6, 2025. We will also post to this section of our website the earning slides, which will accompany our conference call and live webcast, and encourage you to review the information that we make available on our website.
Live and archived webcasts can be accessed at: https://investors.ibex.co/.
Financial Information
This announcement does not contain sufficient information to constitute an interim financial report as defined in Financial Accounting Standards ASC 270, “Interim Reporting.” The financial information in this press release has not been audited.
Non-GAAP Financial Measures
We present non-GAAP financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. We also use these measures internally to establish forecasts, budgets and operational goals to manage and monitor our business, as well as evaluate our underlying historical performance, as we believe that these non-GAAP financial measures provide a more helpful depiction of our performance of the business by encompassing only relevant and manageable events, enabling us to evaluate and plan more effectively for the future. The non-GAAP financial measures may not be comparable to other similarly titled measures of other companies, have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of our operating results as reported in accordance with accounting principles generally accepted in the United States (“GAAP”). Non-GAAP financial measures and ratios are not measurements of our performance, financial condition or liquidity under GAAP and should not be considered as alternatives to operating profit or net income / (loss) or as alternatives to cash flow from operating, investing or financing activities for the period, or any other performance measures, derived in accordance with GAAP.
ibex is not providing a quantitative reconciliation of forward-looking non-GAAP adjusted EBITDA to the most directly comparable GAAP measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, non-recurring expenses, foreign currency gains and losses, and share-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period.
About ibex
ibex helps the world’s preeminent brands more effectively engage their customers with services ranging from customer support, technical support, inbound/outbound sales, business intelligence and analytics, digital demand generation, and CX surveys and feedback analytics.
Forward Looking Statements
In addition to historical information, this press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to attract new business and retain key clients; our profitability based on our utilization, pricing and managing costs; the potential for our clients or potential clients to consolidate; our clients deciding to enter into or further expand their insourcing activities and current trends toward outsourcing services may reverse; general economic uncertainty in global markets and unfavorable economic conditions, including inflation, rising interest rates, recession, foreign exchange fluctuations and supply-chain issues; our ability to manage our international operations, particularly in the Philippines, Jamaica, Pakistan and Nicaragua; natural events, health epidemics, global geopolitical conditions, including developing or ongoing conflicts, widespread civil unrest, terrorist attacks and other attacks of violence involving any of the countries in which we or our clients operate; our ability to anticipate, develop and implement information technology solutions that keep pace with evolving industry standards and changing client demands, including the effective adoption of Artificial Intelligence into our offerings; our ability to recruit, engage, motivate, manage and retain our global workforce; our ability to comply with applicable laws and regulations, including those regarding privacy, data protection and information security, employment and anti-corruption; the effect of cyberattacks or cybersecurity vulnerabilities on our information technology systems; our ability to realize the anticipated strategic and financial benefits of our relationship with Amazon; the impact of tax matters, including new legislation and actions by taxing authorities; and other factors discussed in the “Risk Factors” described in our periodic reports filed with the U.S. Securities and Exchange Commission (“SEC”), including our annual reports on Form 10-K, quarterly reports on Form 10-Q, and past filings on Form 20-F, and any other risk factors we include in subsequent filings with the SEC. Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.
IR Contact: Michael Darwal, EVP, Investor Relations, ibex, michael.darwal@ibex.co
Media Contact: Daniel Burris, VP, Marketing and Communication, ibex, daniel.burris@ibex.co
IBEX LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(in thousands)
| December 31, 2024 | June 30, 2024 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 20,206 | $ | 62,720 | |||
| Accounts receivable, net | 120,581 | 98,366 | |||||
| Prepaid expenses | 6,905 | 7,712 | |||||
| Due from related parties | 317 | 192 | |||||
| Tax advances and receivables | 8,968 | 9,080 | |||||
| Other current assets | 2,039 | 1,888 | |||||
| Total current assets | 159,016 | 179,958 | |||||
| Non-current assets | |||||||
| Property and equipment, net | 32,168 | 29,862 | |||||
| Operating lease assets | 54,057 | 59,145 | |||||
| Goodwill | 11,832 | 11,832 | |||||
| Deferred tax asset, net | 5,052 | 4,285 | |||||
| Other non-current assets | 10,373 | 8,822 | |||||
| Total non-current assets | 113,482 | 113,946 | |||||
| Total assets | $ | 272,498 | $ | 293,904 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities | |||||||
| Accounts payable and accrued liabilities | $ | 19,924 | $ | 16,719 | |||
| Accrued payroll and employee-related liabilities | 33,278 | 30,674 | |||||
| Current deferred revenue | 7,223 | 4,749 | |||||
| Current operating lease liabilities | 12,208 | 12,051 | |||||
| Current maturities of long-term debt | 8,217 | 660 | |||||
| Convertible debt | 25,000 | — | |||||
| Due to related parties | 149 | 60 | |||||
| Income taxes payable | 4,643 | 6,083 | |||||
| Total current liabilities | 110,642 | 70,996 | |||||
| Non-current liabilities | |||||||
| Non-current deferred revenue | 1,119 | 1,128 | |||||
| Non-current operating lease liabilities | 48,286 | 53,441 | |||||
| Long-term debt | 695 | 867 | |||||
| Other non-current liabilities | 2,819 | 1,673 | |||||
| Total non-current liabilities | 52,919 | 57,109 | |||||
| Total liabilities | 163,561 | 128,105 | |||||
| Stockholders' equity | |||||||
| Common stock | 1 | 2 | |||||
| Additional paid-in capital | 212,116 | 210,200 | |||||
| Treasury stock | (101,606 | ) | (25,367 | ) | |||
| Accumulated other comprehensive loss | (7,250 | ) | (7,913 | ) | |||
| Retained earnings / (deficit) | 5,676 | (11,123 | ) | ||||
| Total stockholders' equity | 108,937 | 165,799 | |||||
| Total liabilities and stockholders' equity | $ | 272,498 | $ | 293,904 | |||
14IBEX LIMITED AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(Unaudited)
(in thousands, except per share data)
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 140,682 | $ | 132,634 | $ | 270,399 | $ | 257,243 | |||||||
| Cost of services (exclusive of depreciation and amortization presented separately below) | 98,762 | 95,884 | 188,803 | 184,080 | |||||||||||
| Selling, general and administrative | 25,706 | 24,857 | 51,921 | 47,897 | |||||||||||
| Depreciation and amortization | 4,286 | 4,946 | 8,655 | 9,988 | |||||||||||
| Total operating expenses | 128,754 | 125,687 | 249,379 | 241,965 | |||||||||||
| Income from operations | 11,928 | 6,947 | 21,020 | 15,278 | |||||||||||
| Interest income | 311 | 512 | 894 | 1,098 | |||||||||||
| Interest expense | (620 | ) | (111 | ) | (782 | ) | (215 | ) | |||||||
| Income before income taxes | 11,619 | 7,348 | 21,132 | 16,161 | |||||||||||
| Provision for income tax expense | (2,351 | ) | (1,273 | ) | (4,333 | ) | (2,661 | ) | |||||||
| Net income | $ | 9,268 | $ | 6,075 | $ | 16,799 | $ | 13,500 | |||||||
| Other comprehensive income | |||||||||||||||
| Foreign currency translation adjustments | $ | (911 | ) | $ | 679 | $ | 477 | $ | (22 | ) | |||||
| Unrealized (loss) / gain on cash flow hedging instruments, net of tax | (193 | ) | 395 | 186 | 201 | ||||||||||
| Total other comprehensive (loss) / income | (1,104 | ) | 1,074 | 663 | 179 | ||||||||||
| Total comprehensive income | $ | 8,164 | $ | 7,149 | $ | 17,462 | $ | 13,679 | |||||||
| Net income per share | |||||||||||||||
| Basic | $ | 0.61 | $ | 0.34 | $ | 1.05 | $ | 0.75 | |||||||
| Diluted | $ | 0.57 | $ | 0.33 | $ | 1.00 | $ | 0.72 | |||||||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 15,126 | 17,885 | 16,007 | 18,084 | |||||||||||
| Diluted | 16,456 | 18,440 | 16,977 | 18,667 | |||||||||||
IBEX LIMITED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
| Net income | $ | 9,268 | $ | 6,075 | $ | 16,799 | $ | 13,500 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization | 4,286 | 4,946 | 8,655 | 9,988 | |||||||||||
| Noncash lease expense | 3,083 | 3,297 | 6,409 | 6,522 | |||||||||||
| Warrant contra revenue | — | 307 | — | 594 | |||||||||||
| Deferred income tax | (637 | ) | 52 | (767 | ) | 296 | |||||||||
| Share-based compensation expense | 1,235 | 1,427 | 1,905 | 2,275 | |||||||||||
| Allowance of expected credit losses | 240 | (5 | ) | 323 | 6 | ||||||||||
| Change in assets and liabilities: | |||||||||||||||
| Increase in accounts receivable | (14,856 | ) | (14,544 | ) | (22,505 | ) | (18,336 | ) | |||||||
| Decrease / (increase) in prepaid expenses and other current assets | 722 | (936 | ) | (1,013 | ) | (2,192 | ) | ||||||||
| (Decrease) / increase in accounts payable and accrued liabilities | (1,496 | ) | 338 | 3,078 | 544 | ||||||||||
| Increase in deferred revenue | 2,386 | 673 | 2,465 | 301 | |||||||||||
| Decrease in operating lease liabilities | (3,090 | ) | (3,267 | ) | (6,446 | ) | (6,451 | ) | |||||||
| Net cash inflow / (outflow) from operating activities | 1,141 | (1,637 | ) | 8,903 | 7,047 | ||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
| Purchase of property and equipment | (4,319 | ) | (2,892 | ) | (7,949 | ) | (4,944 | ) | |||||||
| Net cash outflow from investing activities | (4,319 | ) | (2,892 | ) | (7,949 | ) | (4,944 | ) | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
| Proceeds from line of credit | 9,100 | 59 | 9,160 | 96 | |||||||||||
| Repayments of line of credit | (1,600 | ) | (59 | ) | (1,660 | ) | (148 | ) | |||||||
| Proceeds from the exercise of options | 342 | 6 | 724 | 11 | |||||||||||
| Principal payments on finance leases | (182 | ) | (116 | ) | (353 | ) | (204 | ) | |||||||
| Purchase of treasury shares | (46,562 | ) | (8,442 | ) | (51,369 | ) | (10,274 | ) | |||||||
| Net cash outflow from financing activities | (38,902 | ) | (8,552 | ) | (43,498 | ) | (10,519 | ) | |||||||
| Effects of exchange rate difference on cash and cash equivalents | (19 | ) | 68 | 30 | 3 | ||||||||||
| Net decrease in cash and cash equivalents | (42,099 | ) | (13,013 | ) | (42,514 | ) | (8,413 | ) | |||||||
| Cash and cash equivalents, beginning | 62,305 | 62,029 | 62,720 | 57,429 | |||||||||||
| Cash and cash equivalents, ending | $ | 20,206 | $ | 49,016 | $ | 20,206 | $ | 49,016 | |||||||
IBEX LIMITED AND SUBSIDIARIES
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
EXHIBIT 1: Adjusted net income, adjusted net income margin, and adjusted earnings per share
We define adjusted net income as net income before the effect of the following items: warrant contra revenue, foreign currency gain / loss, and share-based compensation expense, net of the tax impact of such adjustments. We define adjusted net income margin as adjusted net income divided by revenue. We define adjusted earnings per share as adjusted net income divided by weighted average diluted shares outstanding.
The following table provides a reconciliation of net income to adjusted net income, net income margin to adjusted net income margin, and diluted earnings per share to adjusted earnings per share for the periods presented:
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| ( | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income | $ | 9,268 | $ | 6,075 | $ | 16,799 | $ | 13,500 | |||||||
| Net income margin | 6.6 | % | 4.6 | % | 6.2 | % | 5.2 | % | |||||||
| Warrant contra revenue | — | 307 | — | 594 | |||||||||||
| Foreign currency (gain) / loss | (912 | ) | 697 | 545 | (100 | ) | |||||||||
| Share-based compensation expense | 1,235 | 1,427 | 1,905 | 2,275 | |||||||||||
| Total adjustments | $ | 323 | $ | 2,431 | $ | 2,450 | $ | 2,769 | |||||||
| Tax impact of adjustments1 | 24 | (482 | ) | (602 | ) | (671 | ) | ||||||||
| Adjusted net income | $ | 9,615 | $ | 8,024 | $ | 18,647 | $ | 15,598 | |||||||
| Adjusted net income margin | 6.8 | % | 6.0 | % | 6.9 | % | 6.1 | % | |||||||
| Diluted earnings per share | $ | 0.57 | $ | 0.33 | $ | 1.00 | $ | 0.72 | |||||||
| Per share impact of adjustments to net income | 0.02 | 0.11 | 0.11 | 0.11 | |||||||||||
| Adjusted earnings per share | $ | 0.59 | $ | 0.44 | $ | 1.11 | $ | 0.84 | |||||||
| Weighted average diluted shares outstanding | 16,456 | 18,440 | 16,977 | 18,667 | |||||||||||
EXHIBIT 2: EBITDA, adjusted EBITDA, and adjusted EBITDA margin
EBITDA is a non-GAAP profitability measure that represents net income before the effect of the following items: interest expense, income tax expense, and depreciation and amortization. Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before the effect of the following items: interest income, warrant contra revenue, foreign currency gain / loss, and share-based compensation expense. Adjusted EBITDA margin is a non-GAAP profitability measure that represents adjusted EBITDA divided by revenue.
The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA and net income margin to adjusted EBITDA margin for the periods presented:
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| ( | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income | $ | 9,268 | $ | 6,075 | $ | 16,799 | $ | 13,500 | |||||||
| Net income margin | 6.6 | % | 4.6 | % | 6.2 | % | 5.2 | % | |||||||
| Interest expense | 620 | 111 | 782 | 215 | |||||||||||
| Income tax expense | 2,351 | 1,273 | 4,333 | 2,661 | |||||||||||
| Depreciation and amortization | 4,286 | 4,946 | 8,655 | 9,988 | |||||||||||
| EBITDA | $ | 16,525 | $ | 12,405 | $ | 30,569 | $ | 26,364 | |||||||
| Interest income | (311 | ) | (512 | ) | (894 | ) | (1,098 | ) | |||||||
| Warrant contra revenue | — | 307 | — | 594 | |||||||||||
| Foreign currency (gain) / loss | (912 | ) | 697 | 545 | (100 | ) | |||||||||
| Share-based compensation expense | 1,235 | 1,427 | 1,905 | 2,275 | |||||||||||
| Adjusted EBITDA | $ | 16,537 | $ | 14,324 | $ | 32,125 | $ | 28,035 | |||||||
| Adjusted EBITDA margin | 11.8 | % | 10.8 | % | 11.9 | % | 10.9 | % | |||||||
EXHIBIT 3: Free cash flow
We define free cash flow as net cash provided by operating activities less capital expenditures.
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||
| ( | 2024 | 2023 | 2024 | 2023 | |||||||||
| Net cash provided by operating activities | $ | 1,141 | $ | (1,637 | ) | $ | 8,903 | $ | 7,047 | ||||
| Less: capital expenditures | 4,319 | 2,892 | 7,949 | 4,944 | |||||||||
| Free cash flow | $ | (3,178 | ) | $ | (4,529 | ) | $ | 954 | $ | 2,103 | |||
EXHIBIT 4: Net (debt) / cash
We define net (debt) / cash as total cash and cash equivalents less debt.
| December 31, | June 30, | |||||
| ( | 2024 | 2024 | ||||
| Cash and cash equivalents | $ | 20,206 | $ | 62,720 | ||
| Debt | ||||||
| Current | $ | 8,217 | $ | 660 | ||
| Convertible debt | 25,000 | — | ||||
| Non-current | 695 | 867 | ||||
| Total debt | $ | 33,912 | $ | 1,527 | ||
| Net (debt) / cash | $ | (13,706 | ) | $ | 61,193 | |
1The tax impact of each adjustment is calculated using the effective tax rate in the relevant jurisdictions.
FAQ
What was IBEX's revenue growth in Q2 FY2025?
How much did IBEX's adjusted earnings per share increase in Q2 FY2025?
What was the impact of IBEX's share repurchase from TRGI in Q2 FY2025?
What is IBEX's updated revenue guidance for fiscal year 2025?
Which industry vertical showed the strongest growth for IBEX in Q2 FY2025?
