IBEX (IBEX) Q4 2024 earnings summary

Executive summary

• Achieved record results in EPS ($2.10), net income ($33.7M), adjusted net income ($38.4M), EBITDA margin (14.4% in Q4), and free cash flow ($27M) for FY 2024, despite a 2.8% YoY revenue decline to $508.6M.

• Won 18 new client relationships, nearly double the prior year, with strong wins in retail, e-commerce, healthcare, and gaming verticals, and expanded pipeline to 40+ AI opportunities.

• Digital-first and omni-channel services represented 77% of Q4 revenue, up from 74% YoY, with offshore/nearshore regions comprising 77% of business.

• Launched suite of AI services, securing first significant customer-facing AI deal and building a robust AI pipeline.

• Repurchased 1.3M shares (about 8% of outstanding) for $21.7M, with $27M remaining under the current buyback program.

Financial highlights

• Q4 revenue was $124.5M, flat to slightly up YoY; Q4 adjusted EBITDA up 16% YoY to $17.9M (14.4% margin); adjusted EPS increased 76% to $0.58.

• FY 2024 net income rose to $33.7M from $31.6M; adjusted net income up to $38.4M; adjusted EBITDA for FY 2024 was $65.2M (12.8% margin).

• Free cash flow hit a record $27M, up from $22.9M, driven by lower capex; net cash improved to $61.2M.

• Ended FY 2024 with $62.7M in cash and $1.5M in debt.

• Share repurchases totaled $21.7M for FY 2024, reducing shares outstanding by about 8%.

Outlook and guidance

• FY 2025 revenue expected between $510M-$525M; adjusted EBITDA forecasted at $67M-$69M.

• Q1 FY 2025 revenue guidance: $124M-$126M; adjusted EBITDA: $14.5M-$15.5M.

• Capex for FY 2025 projected at $15M-$20M.

• Margins expected to improve, targeting 15% EBITDA margin in coming years.