IBEX Limited (IBEX) 2024 Q4 Earnings Call Summary
September 12, 2024 
IBEX Limited (IBEX)
| Market Cap | 0.21T |
|---|---|
| Beta | |
| P/E | 39.75452774136047 |
| EPS | 12.247158441111395 |
| Dividend | 0 |
| Dividend Yield | 0.00% |
Optimistic Highlights
Record Financial Metrics
Achieved all-time bests in EPS, net income, EBITDA margin, and free cash flow.
New Client Wins
Secured 18 new client relationships, up from 10 in the prior year.
Digital First Services Growth
Digital first services accounted for 77% of revenue in Q4, up from 74% a year ago.
AI Initiatives
Launched a suite of AI services, winning the first significant customer-facing AI deal.
Employee Engagement
Employee net promoter score reached a new high of 77, up 9 points from the prior year.
Pessimistic Highlights
Revenue Decline
Revenue was down 2.8% year-over-year to $509 million.
Onshore Revenue Decrease
Lower onshore revenue impacted overall revenue growth.
Macroeconomic Headwinds
Macroeconomic conditions provided headwinds, particularly in the first half of the year.
Fintech and Telecommunications Vertical Decline
Exposure to telecommunications and fintech verticals decreased in quarterly revenue.
Company Outlook
Return to Growth
Business is positioned for a return to growth in FY 2025.
AI and Digital Services
Continued focus on AI and digital first services expected to drive future growth.
Financial Guidance
Revenue expected to be in the range of $510 million to $525 million for FY 2025, with adjusted EBITDA between $67 million and $69 million.
Capital Expenditures
Expected to be in the range of $15 million to $20 million for FY 2025.
Q & A Highlights
Q: Guidance seems below normal trends. How are macro environment, market share, and Gen AI affecting your forecast? (David Koning, from Baird)
A: Macro environment shows slight volume growth. Market share is strong with new wins. AI is seen as a new revenue source. Confident in FY 2025 outlook. (Robert Dechant)
Q: Margins keep going up. How sustainable is that? Will buybacks continue? (David Koning, from Baird)
A: Margin improvement expected to continue due to higher margin services and economies of scale. Buybacks will continue with $27 million remaining under the current program. (Taylor Greenwald and Robert Dechant)