IBEX Limited's Quarterly Report on Form 10-Q for the Quarterly Period Ended March 31, 2024

Press release · 05/10 20:10
IBEX Limited's Quarterly Report on Form 10-Q for the Quarterly Period Ended March 31, 2024

IBEX Limited's Quarterly Report on Form 10-Q for the Quarterly Period Ended March 31, 2024

IBEX Limited has filed its quarterly report for the period ended March 31, 2024, on Form 10-Q. The company is a smaller reporting company and an emerging growth company. The number of common shares outstanding as of April 30, 2024, was 17,214,446.

Financial Performance Summary


  • ibex is a business process outsourcing company that provides customer engagement solutions to help companies acquire, engage with, and retain customers.
  • They have 29 global delivery centers and utilize technology like their Wave iX platform to manage interactions for clients across industries.

Third Quarter 2024 Highlights

  • Delivered solid financial performance despite macroeconomic conditions impacting growth trends
  • Shift from onshore to offshore delivery negatively impacted revenue but increased margins
  • Profitability and new client wins remained strong with 15 new clients in 2024 versus 8 last year

Recent Financials

  • Q3 revenues decreased 3.6% year-over-year to $126.8 million due to macroeconomic factors and delivery shift
  • Q3 net income decreased 8.6% to $10.3 million; EPS decreased 3% to $0.57
  • Year-to-date revenues decreased 3.7% year-over-year to $384 million due to similar factors
  • Year-to-date net income decreased 12% to $23.8 million; EPS decreased 10% to $1.29

Factors Affecting Performance

  • Inflation, interest rates, and uncertainty are impacting client spending and delivery location mix
  • Presents cost reduction opportunities but has constrained demand recently

AI Proliferation

  • AI can improve efficiencies and experience but has adoption challenges
  • ibex launched WaveiX platform leveraging AI; positions them to create client value

Client Business Performance

  • Client growth drives demand; declines increase focus on cost reduction
  • Demand has been constrained by economic environment recently

Capacity Utilization

  • Margins improve with higher utilization of delivery centers
  • Utilizing offshore capacity growth while optimizing onshore sites

Labor Costs

  • Wage inflation across regions increasing costs and competition for agents
  • Managing with higher agent quality, productivity, retention and price increases

Delivery Location

  • Offshore and nearshore deliveries generate higher margins
  • 95% of workstations now in those advantage geographies

Sales Cycles and New Clients

  • Longer sales cycles in 2023 and early 2024 but rebounding
  • New client revenue triples in years 2 and 3

Results of Operations


  • Q3 decreased 3.6% year-over-year to $126.8 million
  • YTD decreased 3.7% year-over-year to $384 million
  • Largest vertical impacts from FinTech and Telecom demand declines


  • Cost of services decreased due to lower volumes
  • SG&A increased due to impairments, severance and investments
  • Higher D&A from continued platform investments

Income and Margins

  • Q3 operating income $11.3 million; margin 8.9%
  • YTD operating income $26.6 million; margin 6.9%
  • Declines driven by revenue and costs but offset partly by optimizations

Liquidity and Capital Position

  • $50.7 million in cash provides adequate liquidity
  • Utilized $18.6 million for share repurchases year-to-date
  • Cash from operations and credit facility to fund strategy
  • Managing costs and delivery mix to maintain strong margins


ibex is navigating macroeconomic challenges well by focusing on margins, strategic investments, and new client additions. The shift to higher utilization of offshore delivery centers will generate cost savings and higher profitability. They are positioned to leverage AI and other technologies to drive efficiencies for clients. While economic conditions have impacted growth, the business fundamentals and financial position remain strong.

Table 1: Key Financial Results

Metric Q3 2024 YTD 2024
Revenue $126.8 million $384 million
Net Income $10.3 million $23.8 million
EPS $0.57 $1.29
Operating Margin 8.9% 6.9%