IBEX (IBEX) Sidoti March Small-Cap Virtual Conference summary

Industry overview and market positioning

• Operates in the $350 billion contact center market, focusing on the $100 billion outsourced BPO segment, which is highly fragmented with no dominant player.

• Differentiates through a BPO 2.0 model, emphasizing customer experience, technology, and analytics over traditional labor arbitrage.

• Built a strong reputation by winning and expanding with major clients, often outperforming larger incumbents.

• Maintains high client and employee Net Promoter Scores, indicating strong loyalty and satisfaction.

• Positions itself as a disruptor, now moving toward BPO 3.0 by integrating AI with human agents for end-to-end solutions.

Financial performance and growth drivers

• Achieved 16% adjusted EBITDA growth and 44% year-over-year increase, with strong free cash flow.

• Four-year organic revenue CAGR is 6%, with recent momentum pushing growth to 16% in calendar year 2025.

• Adjusted EPS has grown 19% annually, aided by strong operating performance and aggressive share repurchases (about 30% of shares in 2-3 years).

• Q2 results showed 17% revenue growth, 32% net income growth, and 45% EPS growth (GAAP).

• High-margin verticals (HealthTech, travel, retail) and offshore geographies are key growth vectors.

Client relationships and business model

• Revenue retention is about 98.5%, with less than 1.5% revenue loss, far outperforming industry averages.

• New client logos typically double or triple revenue contribution by year two, fueling a land-and-expand growth model.

• Top 10 clients grew 20% year-over-year, with new logos scaling significantly in subsequent years.

• Client base is diverse, with 60 clients generating $1 million+ in revenue and balanced vertical exposure.

• Focuses resources on higher-margin verticals, intentionally limiting exposure to lower-margin sectors like telecommunications.