IBEX Limited Reports Fourth Quarter and Fiscal Year 2024 Results
Intellectia.AI2024-09-13
IBEX Limited Reports Fourth Quarter and Fiscal Year 2024 Results
IBEX Limited, a global leader in business process outsourcing and customer engagement technology solutions, announced its financial results for the fourth quarter and fiscal year ended June 30, 2024.
Key Financial Metrics
| Metric | Q4 FY2024 | Q4 FY2023 | Fiscal Year 2024 | Fiscal Year 2023 |
|---|---|---|---|---|
| Revenue | $124.5 million | Not provided | $508.6 million | $523.1 million |
| Net Income | $9.8 million | $4.5 million | $33.7 million | $31.6 million |
| Diluted Earnings Per Share | $0.56 | $0.24 | $1.84 | $1.67 |
| Adjusted Net Income | $10.2 million | $6.2 million | $38.4 million | $36.9 million |
| Adjusted EPS | $0.58 | $0.33 | $2.10 | $1.96 |
| Adjusted EBITDA | $17.9 million | $15.4 million | $65.2 million | $66.6 million |
Interpretation : IBEX demonstrated strong financial performance in the fourth quarter, significantly increasing net income by 117.8% year-over-year, primarily due to improved gross margins and cost optimization. The fiscal year ended with a slight decrease in revenue by 2.8%, but net income and EPS reached record highs.
Revenue Performance by Segment
| Segment | Notable Growth/Decline |
|---|---|
| Retail & E-commerce | Growth |
| HealthTech | Growth |
| Travel, Transportation & Logistics | Growth |
| FinTech | Decline |
| Telecommunications | Decline |
| Technology | Decline |
Interpretation : Growth in Retail & E-commerce, HealthTech, and Travel sectors helped offset declines in Telecommunications, FinTech, and Technology. The company benefited from strategic shifts to higher-margin offshore operations.
Key Developments and Operational Highlights
- Achieved record full-year net income, EPS, adjusted net income, adjusted EPS, and free cash flow.
- Won 18 new client relationships, particularly in retail, healthcare, and gaming sectors.
- Completed significant share repurchase of 1.3 million shares, or 7.8% of outstanding shares, totaling $21.7 million.
Comments from IBEX Leadership
Bob Dechant, CEO of IBEX, expressed satisfaction with the record financial results, emphasizing the company’s return to year-on-year growth and the successful acquisition of new clients. The pivot to customer-facing AI solutions was highlighted as a new growth area, with a significant deal closed recently.
Taylor Greenwald, CFO, underscored the strategic advantage driven by high-margin services, leading to strong cash flow generation and shareholder value through share repurchases.
Dividends and Share Repurchase Program
The company completed a share repurchase of 1.3 million shares at a cost of $21.7 million. There was no mention of additional dividend announcements.
Forward Guidance
For fiscal year 2025, IBEX expects revenues between $510 to $525 million and adjusted EBITDA between $67 to $69 million. First quarter 2025 revenue is projected at $124 to $126 million, with adjusted EBITDA of $14.5 to $15.5 million.
Stock Price Movement
Post-earnings release, IBEX's stock experienced a significant increase of 9.60%.
Overall, IBEX Limited reported robust financial results in the fourth quarter and fiscal year 2024, driven by strategic client acquisitions and a transition to high-margin services, setting a positive trajectory for fiscal 2025.
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