Q1 2021 Ibex Ltd Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to <unk> first quarter 2021 earnings call. At this time all participants are in listen only mode. After the speaker presentations, there will be a question and answers.
Yes.
Ask a question during the session you will need to press star one on your telephone.
If you require any operator assistance. Please press star zero. It is now my pleasure to introduce really Johnson of the Blueshirt group.
Good afternoon, and thank you for joining us today before we begin I went to mind you that matters discussed on today's call may include forward looking statements related to our operations performance financial goals and business outlook, which are based on management's current expectations and beliefs and assumptions. Please note that these forward looking statements reflect our opinions as of the day this call and we undertake no obligation.
On to revise this information as a result of new developments, which may occur.
These statements are subject to various risks uncertainties and other factors that could cause our actual results to differ materially from those expected endoscopy day for more detailed description of our risk factors. Please review our final prospectus filed with the Securities and Exchange Commission on August 10, 2020, and our form 20-F filed on October 23rd 2020 with that I'll turn it over to book.
GAAP decking CEO.
Thank you Brent.
Good afternoon, and thank you all for joining us today as we discuss the first quarter fiscal year 2021 financial results from.
I will provide a business overview of the quarter than current who will review the numbers after which we will open it up for Q1 day.
I remain very optimistic about IBEX is market opportunities and our ability to outpace the industry.
Hi Index is at the forefront of this fundamental shift occurring in this industry.
Our position in the BPL 2.0 World continues to distance IBEX from Yesterdays legacy competitors.
This was technically on first reported quarter as a publicly traded company and I'm very very pleased with our continued strong results.
We delivered record high revenues up from 108.8 million for the quarter.
14% year over year.
All of which is organic growth.
Adjusted EBITDA grew an impressive 41%.
15 point Sixmillion from prior year, Q1, and we achieved strong cash flow generation.
We're off to a strong start to the year.
We are delivering against our growth strategy, increasing our market share with key clients and have good revenue visibility.
Those factors give us confidence to raise our outlook for EPS why 21.
Two 440 to 443 million in revenue.
The growth of 8.5% to 9.5% over prior year.
And adjusted EBITDA to 60.5 to 62 million approximately 12% to 14% increase over prior year.
I previously outlined a number of key strategic priorities for this year that included.
Winning new opportunities with the new economy leaders and large blue chip clients that are transforming their customer experiences rapidly to a digital first offering.
Aggressive expansion in our near shore and Philippine markets.
As well as further leveraging our technology to further differentiate our index as a partner of choice, which drives revenue growth and new customer wins.
I'm excited to report that IBEX has continued to execute on all of our key areas on the new logo front, we had an extremely strong performance with eight new logo wins in the quarter that span strategic verticals, such as Fintech and logistics and delivery several.
All of which we were able to win and launch in this quarter.
Between those clients.
And the new wins, we had in Q4.
We launched nine new clients this quarter driving revenue.
Abroad, CLX test led solutions continue to resonate well in the market.
For a leading on demand food delivery service client.
We were able to war on she proof of concept contact center solution in our provincial Borehole Philippines Center.
The suit solution was initially focused on App, driven digital care and included ways ex technologies, such as training simulators to drive performance.
Our scope was quickly expanded in the solution was scaled in size and scope to an omni channel solution, which created a frictionless CX experience for consumers, regardless of the device or the contact channel they prefer to use for support.
And this launch it was done.
Completely remotely.
Additionally.
One of the largest health systems in the United States.
With a national footprint of hospitals outpatient clinics and physician practices partnered with IBEX health.
To deliver high end mission critical solutions to globalize and modernize the revenue cycle management function.
In the first phase, we successfully moved their patient services and billing department to the Philippines, and Nicaragua from the U.S.
Which will reduce their operating costs by 50%.
During the transition we levered, our waves zero leadership acceleration process and wave ex training simulators.
Which exceeded the client's expectations delivering greater than 90 per cent patient satisfaction within the first 90 days.
Our proprietary dialing was also.
Implemented, allowing us to blend a unique inbound and outbound contact solution.
Delivering improved cash collections compared to the internal teams previous performance there.
The next phase of our relationship focus on driving innovation to become a leader in the consumer Revolution that is now dominating the health care sector today.
To be clear the deals we are winning our strategic deals that are diversified across segments and will continue to drive growth for us both during and after the pandemic.
And our pipeline remains extremely strong across all key verticals and with the compressed decision, making cycle, which will continue to help us drive performance.
This growth.
Has led to continued expansions across our geographies.
In the quarter, we launched two new sites in our near shore markets.
One in Managua, Nicaragua, where we continued to dominate the market.
And one in Oh, Cheerios, Jamaica, where we are the first mover into the market.
These new sites along with site expansions added approximately a thousand new seats in the near shore.
In this quarter.
Capitalizing on our position as near shore company of the year for 2019.
Our wave next technologies continue to be a key differentiator as we deliver transformational does digital solutions as consumer behaviors shift to more digital first experiences.
With approximately 50% of our work force now at home.
We have been able to successfully debt ways acts to operate in a virtual environment, enabling us to create a seamless environment between in center and work at home operations.
Now the health of our employees remain our top priority.
I'm proud to announce that we have continued to pass all our health on its across the globe.
And as a result has had on our centers operational for the quarter.
Additionally, we were able to mobilize close to 100% about work force back to work and earning wages, we're proud of that.
I'd like to recognize and thank our leadership teams, who worked tirelessly work to achieve these amazing results.
In summary.
Major transformation is occurring in our industry towards digital and great customer experiences.
Next is at the forefront.
We are very confident in our competitive position.
And our ability to deliver and execute.
Our leadership position is evidenced by our strong financial results, we believe that PPL 2.0, and the new digital economy, a reputation for excellence and our strong balance sheet positions us for long term success.
I will now turn the call over to coral gables, our CFO, who will walk you through the key financial highlights for the quarter. We'll then open up the call for Q1 day. Thank you Carl.
Thank you Bob and good afternoon, everyone. Thank.
Thank you for joining the call today.
I will now take you through the first quarter results as Bob mentioned, we achieved record first quarter results.
Moving 14.1% revenue growth compared to the prior year quarter and have raised our fiscal year guidance.
Thanks Nation of this impressive growth includes significant revenue increases had digitally native client verticals, new lines of business and our embedded client base, our superior operational performance and improvements in client concentration.
Net in the first quarter between 14.1 per se to 108.8 million compared to the year ago quarter, New economy revenue growing 18.8% non voice revenue grew 8.6%.
On digital revenue growth, what 0.8 per cent compared to the prior year quarter.
Net loss in the first quarter.
Twentytwenty, one way Street, we Werent Day, Inc.
Impeding Werent point, Threemillion nonrecurring EBIT 19 related costs compared to net income of 2.3 million the same period last year.
On a non-GAAP basis, excluding nonrecurring expenses fair value adjustments and share based payments.
Adjusted net income was 5.2 million versus 3.1 million in the prior year quarter.
Think formal fully diluted adjusted EPS was 31 cents in the first quarter and 2021 versus 18 cents in the prior year quarter.
Adjusted EBITDA increased 41.3% from.
From the prior year quarter to 15.6 million or 14.3% in revenue compared to 11 million were 11.6% of revenue for the same period last year.
The 270 basis point increase in adjusted EBITDA margin was primarily driven by continued margin improvement in our digital business.
Near shore and margin expansion as this in this region continues to ramp up and increased leverage on April had cost.
Turning to client mix in the first quarter, our top three client concentration decreased 38.1% and 46.2%.
Overall revenue for the same period last year.
The clients outside the tax rate increased by 31.3 per se and are primarily responsible for driving the overall revenue growth.
Like vertical market telecommunications decreased to 29.9% of revenue.
From 38.6 per se in the prior year quarter.
Whereas retail and E commerce sales increased to 21 percentage revenue from 13.5 per cent for the same period last year.
Net cash provided by operating activities.
Increased to 5.9 million for the first quarter up from 8.8 million in the prior year quarter.
Non-GAAP free cash flow was <unk> point, ninemillion usage compared to 10.9 million usage in the prior year quarter.
The improvement in free cash flow is primarily attributable to an increase in adjusted EBITDA and improvement in net working capital and lower capital expenditures offset by nonrecurring costs.
Assuming from its nice quarter was 53 days down 13 days in the same period last year.
Four days sequentially net.
Net debt decreased to 35.5 million compared to 84.1 billion as of June Thirtyth 20 Twond.
Primarily driven by the net proceeds from our IPO of 63.1 billion significantly strengthening our balance sheet.
Capital expenditures were 4.5 day and were 4.2 percentage revenue for the first quarter Twentytwenty, one versus 9.3 million or 9.8 percentage revenue for the year ago quarter.
We added approximately 1000 near short workstations, primarily driven by two new site launches in HIV extra BK and the Bakken in Nicaragua.
In closing the momentum we experienced last fiscal year.
Continued in the first quarter fiscal year 2021.
We remain extremely focused on a nice trends as we continue on leadership position in BP, a 2.0 by transforming the customer experience with our purpose built wave X technology and capitalizing on the significant CX market demand.
With that Bob and I will now take questions operator.
Operator, please open the line.
And as a reminder, ladies and gentlemen to ask a question we need to press star one and it's helpful.
Joel Your question. Please press the pound key.
Please standby power Kuni roster.
And our first question comes from them on the Seth Weber with RBC capital markets. Your line is now open.
Hey, guys. Good afternoon, good evening hope you're doing well congrats on the on the on the strong results. Thanks.
Thanks.
You know the the margin really kind of stands out here to us. It was you know a lot better than what we were expecting can you just talk to you know you said, Bob I think you've added about a thousand new seats.
Can you just talk to you know productivity levels for the new agents that have been hired on visit you know has been better than you'd expect then you would have expected obviously, it's a very.
You know kind of unusual onboarding situation can you just give us any color as to you know more color as to what's driving this margin performance. Thanks.
Sure So great great question and thanks for all for attending so.
As we talk on growth drivers are also are margin drivers and our growth you know we've been winning big in the near shore markets and places like the Philippines and so.
Growth in those areas for US is really you know per credence to you know to the financials now.
What we have done really well.
Especially in this virtual you know there's a virtual world we've created in our markets Amazing front end hiring machines that were hiring people virtually and so we're able to keep our you know our pipelines of talent really talented folks very very strong. So we're able to do that in a virtual environment.
We hire the people we bring them on board, we've leveraged our wave ex technologies for training, we've made that virtual now so we're able to actually yes.
Bring in and get on our folks trained on many of those not in a classroom environment in the centers, but also in a virtual environment to enable us to really scale the business.
And.
Using those technologies have allowed us to get what I call get to Green fast and so we are doing a great job for our clients delivering on their metrics were also getting getting great. You know kinda great throughput of a ghost agents.
And you don't creating really a win win environment went on our clients on the metrics and you know and getting the margin but just.
Third margins that were looking.
Extensively because were able to fill those centers relatively quickly and keep our current centers operational.
Right right no that makes sense I appreciate the color and then maybe just a follow up from maybe it's for Carl you know the the digital and the non voice revenue was good but it actually was below the on the total company revenue growth from the quarter is there something there is it a timing issue is it just.
Some other new logos that you've added that are less focused on that area. Just anything that you would you would you'd highlight there that we should be thinking about and whether you expect that to accelerate going forward. Thanks.
The current why don't you go ahead and take that and then I can add a little color on the backend. Thanks, Thanks for the cash and sat on it.
The non voice growth rate as I mentioned it is Wow was Microsoft.
On the was one point what was on one of the larger clients within the non voice.
It comes from killing COVID-19, so our view is when you look at the non voiced the growth remained strong on when you kind of when you exclude.
Impact on that and traction you're talking about over 25, 26% quarter over quarter growth on.
When you had that stats and so when you look at it from the perspective of how is the engine running from non growth rate on the revenue.
After taking consideration on the contraction on that one larger client that was negatively impacted the growth rate still remains 25% plus.
Okay and has that has that client signaled that they are getting back to.
Pre covered levels, yet or is that just going to take some time.
Yes, I'll, let that set that it'll take a little bit of time, but you know again. This is a you know.
In the transportation wide sharing business.
We will follow on how that market has go on and so its.
It's a slow build back and so.
The good news is we've you.
Revenue so you.
Call. It bottomed out we're building building back up on that but that did have a big impact into our non voice.
Comparison from a year ago and lets call said I you know the clients that were bringing in their very very digitally native clients and customers and so we see that you held this greater than 25% to 30% growth is really the general trend on our businesses is happening and we'll continue to see that.
Normalized for you know for one client.
Right right Okay.
That makes sense guys I appreciate it appreciate the color I have good night. Thank you okay.
Okay. So thanks.
Thank you and our next question comes in a lot of Dave Koning with Baird. Your line is now.
Yeah, Hey, cash is remarkable progress so far with the margin concentrations and everything great job. Thanks.
Thanks.
Yeah, and I guess, you know maybe first of all <unk> income.
In kind of piggybacking on the last question you know EBITDA. If you just look at in dollar terms is up about four and a half million year over year in Q1, and your guidance for the whole year is on the up six to 7 million or so it just seems like I mean, it seems quite conservative maybe you can talk about the back half of the back three quarters why the EBITDA growth.
Might not be quite like the first quarter.
Sure sure, Dave and so great question, and we touched on this a little bit in the last earnings call.
The business is operating really well, it's running very very strong. However, when you look out.
Down the road.
The other.
We have two of the pandemic you get a little concerned about that what happens if the Philippines does a reduction again and you know and you don't force is centers to shutdown and moved everything you know 100% work at home things like you know things like.
That so.
We've taken what I think is a conservative cautious approach to guidance you know as we look at our business you know.
You know towards the second half of the year factoring that in now if were able to avoid that the strength of our new pipelines the clients that we're winning.
These are not you know these are deals that are impacting revenue right away. We feel really strong just as you know as or really last year and a half to your results. If you don't have shown do.
Yeah, Okay, and and I think that probably answers kind of my second question to just Q1, 14% revenue growth. The rest of your your kind of averaging more like six to seven in the guidance and that that's probably that same level of conservatism or on Cove. It yes.
Yes, yes, but that's exactly correct and we're we're hopeful on.
We will be able to navigate our way, but you know you never know what happens and you know we we see no.
We see where rates here in the states climbing climbing and you know it is a it is a difficult daily battle that are you know our operations team have just done an amazing job of.
Managing through that but you know it is on.
There's a.
No, 100% foolproof way to prevent that in our centers or you know in the markets that we operate so we've just look conservatively.
On a cautiously.
Okay, and maybe if I can just sneak one last one kind of a shout out and kind of a question. Usually Q1 is a weak cash flow quarter, usually is quite negative just because of the timing I think on the way cash flow for this quarter you actually were about breakeven in a Q1, maybe for the first time and maybe if you can just talk about how.
I mean, it seems like a really strong quarter, but then the rest of the year should be positive right.
The current wasn't shouldn't 11 sure sure. Thanks, David Yes for Q1 on as you mentioned many times that you are saying you can have a negative cash flow.
The threeq guidance that really good contributing to breakeven what had been the improved profitability net okay.
Focus on working capital management.
We had lower Capex and then maybe on.
So the offset for the non recurring total 19 costs.
From a working capital perspective sequentially, we did have dsos increased from Jean until.
Until September so that would actually be a use but there was some offset in the trade 18 other from payment timing that just based on the timing of the quarter gave us a source of cash on Q1. If you look at the working capital. So we continue to manage working capital tightly, but there was a source of.
Happens just from the timing of the 18 payments and then on Capex. During this quarter was about 4% of revenue a quarter ago. It was 10% of revenue, which included roughly about 2100 seats plus so see growth will happen in the offshore on your score regions. So when you look any color on.
We believe the improved results net.
Yes links in your your gifts links on you and your Capex and.
And then also other.
Working capital, including like the timing aspect of the one I got my attention on some 80 payments.
Gotcha sounds great well thanks, guys.
Thanks, David Great to have you on the call. We missed you last time.
Thank you and our next question comes from them on our vision from me, What's Piper standard Your line is open.
Hey, Congrats on a Congress and the net another great quarter and I.
Just had a couple of questions on Oh on kind of other.
Things are progressing you know, especially apparent on.
Our client discussions.
So.
Yeah. So we had good execution during they depend on <unk> can you talk about getting a very positive client feedback on.
I saw some of that feedback on execution translated into it and that's kind of a volume that existing clients or you know have you started to see kind of new new clients come into your pipeline.
Okay.
So on <unk>, thanks for that question and.
Great question and I'll touch on both you know kind of from an existing clients and new clients as well.
The existing clients you know as we highlighted our performance and resilience.
Through the pandemic through our Q4 and then into the summer has been.
Yes, as good as you, possibly could have been in this industry.
And we've taken a lot of coal volume per them. One a lot of our competitors have struggled dearly. So we've taken market share as a result from that from them and that market share is not going back we've opened up new geographies for our clients and we grab new lines of businesses and new services and we.
Track that we've won a lot in the last quarter.
Okay.
Those market share gains and it's driven by our resilience and it's driven by the execution. The results we're delivering on their metrics on you on not just taking coal volume really.
Really delivering on fantastic CX metrics and things like that.
So I.
I just feel like that is an area that IBEX will continue to.
Two to win an excel at.
And as our.
Hours, our competitors that have struggled we grab that market share and that's ours and it's ours now going forward.
Now as it relates to new clients.
This is what I'm just.
What I just so proud of that we've been able to do is we've been able to sell.
What I'll call strategic deals strategic wins that were not reactions to coded for these cash for our clients, but they were.
Clients that are looking to make important decisions in a long term strategic fashion.
And our solution set has mapped up well nurses solution set that includes our technology, our ability to deliver the geographies that we operate in put all that together and we've been winning.
You know we want.
A new logos this quarter, we had a strong performance in Q4.
What's really interesting orban as Weve launched those clients, we've got them operational.
And then we've already expanded with so we've gone from proof of concepts to not only just get to the proof of concept, but dense start the scale process clients, adding new lines of business on top of that and you can see those in that in the numbers that were you know that we've been generating its you kind of have that.
You know that multiple.
Compounding effect with those new logos coming on board, we think that the cash deal flow is a compressed cycle right now.
Which.
When you're winning them that compressed cycle really resonates well for us.
Yeah, that's something that's going on and then your desktop touched up on it but maybe pick on a just expand a little bit on on whats driving that right back in and also you know sort of hit your debt that forward approach other that's using automation on AI.
How much of that you know is it sort of really driving defense.
Defense station because in some other clients who have been exactly I'm sure you know.
Because they'll on comparative processed on on on on who who they want to work, but so if you could just going out on a little bit more on what specifically is has been resonating with <unk>, but.
But some of your most recent wins share.
Sure so and there's several layers to peel back on that onion, but let me give you a couple of really important things. The first thing that they're going to look at as who's actually going to be able to deliver and get into green is I like to call. It.
Yes, and deliberate and our wave ex technologies that we have.
A really good whether it's using.
On AI intelligence on hiring and profiling process [laughter] or two.
To implementing our training simulators to get our agents.
Really productive fast things like that those are areas that our clients and prospective clients look at and say IBEX is the gold standard on right now and that page is.
Who is paying off in the wind cycle.
But it goes beyond that.
And it goes into what I'll call using.
A lot of backend.
AI analytics on.
Being able to analyze the customer experience and customer sentiment.
And points of friction and the value add solutions that we're bringing their resonate well and this goes to play against what I'll call. Our legacy BP, a 1.0 labor arbitrage Stewart from clients, who were bringing an enormous amount of intelligence to.
Our clients in those interactions and that is you on that piece of enormous dividends and that's the type of the type of capabilities, they're looking for in their go forward partners and that's why you know.
Winning not only in what I'll call the new economy clients, but that's why we're winning big Blue chip clients that are just looking for something different something better than kind of yesterday's competitors.
And they're yesterday providers.
Provide.
Great and then last one from me.
Suddenly does it in a very unusual here on now with that said you know how other client budgets for.
For next is shaping up you know you just compare.
Compared to the last couple of years on you know.
Is that sort of better visibility or roughly sand visibility you know and from the current discussions because I think November spent when clients start to kind of net needed on budgets and on if that just wanted to see how this client.
But the discussions for next year are shaping up.
Yeah, and so you know if I look at that Holistically I think our clients have great visibility to there.
To where their business is going on so many of our clients or.
Our in the markets that are winning.
And you.
So they have great visibility on that.
And as a result.
And us being one of their strong partners. It's not you know the number one partner or the sole partner, we're able to really look.
Look at where to be what markets do we need to be where do we need to expand as partners and all so I feel very good about our visibility.
Okay.
You know revenue visibility to our business.
Our clients are very open with us on that.
And I have to point out one thing on.
So to the revenue visibility for US is we haven't lost a client literally since I've been here so.
And thats unique in that space and that allows us to really just look and not having to worry about.
Client loss from client churn and that just gives us a lot of confidence.
In where our business is going.
Great. Thank you very much.
Great. Thanks Art.
Thank you.
And as a reminder, again, ladies and gentlemen, if you would like to ask a question that is star one on your telephone will join your question that's a pound key.
Our next question comes from a lot of Tobey Sommer Truest Securities. Your line is now open.
Thank you you mentioned, a shorter sales cycles kind of turnaround at customers I.
I was wondering if you could give us some more color and maybe quantify that if possible pre cobot versus last six or nine months.
And just speak to what if anything you're doing share prepare for a post co bid world, where maybe the decision making process normalizes.
Yes from Tobey Great Yeah, Great question and thanks for joining the call.
So.
I'll describe the.
Differences right now in in the current environment and contrast that a little bit from how you know.
How things operated prior.
In prior I think the extended.
Sales cycles, and so many of the clients were operating it they're still fast cell cycle. So the days of 18 month and 24 month sales cycles, even with these big Blue chips. Those those for US are that's a decade ago.
Clients are making much faster decisions.
In yes, you know prior in pre co bid on it.
It required.
A lot of their management figuring out calendars when can they all get on a plane when can they fly out to the Philippines or to Jamaica, and then while in Jamaica, they're going to go see multiple competitors and so you know that takes time and they get everybody back.
Fly back compare notes just think about the time effort and dollars that it takes in that environment.
In this day and age we're doing all this virtual and they may be meeting with us virtually on a on a Monday morning, and with a competitor of ours on a Monday after do no flying I'm not flying on 24 hours from the Philippines.
Good decisions are getting made fast typically clients they get through this and they are going to be hurdle when their look and say, there's a clear winner and more often than not and are the deals. We've been it's been IBEX why isn't IBEX, it's because what we do.
On the unique culture, you can see that in the zone call you can see it in the centers that were operating in the culture. We have built at our agents those things resonate well and they do well on a zone call. So we've won really well and done that now.
You raised a really good question as you know post cold but.
What's that look like.
You know what it will be interesting for us and what we're excited about that environment. We think will just operationally, we'll have a lot of extra capacity on hand, as we will.
We will be able to I think scale our business significantly.
And not have to do quite as many build outs as we have over the last several years. So we're excited about you know about the potentials.
That that brings.
But I think it goes back to why do clients look for providers in this PPL 2.0 world you're looking for companies that are tech led that are able to service digitally native debt. It created an amazing culture with their people that culture will create great experiences and.
And so whether it's the resume or post cold would I I think that you know a recipe for success is going to really you know.
Transcend not only today, but in to.
Post World Post Cold World, which you know we can't can't get here fast enough.
Okay.
A similar question on the expense side could you comment on what following.
Following Cherry turnover is like on agents from kind of contrast that to pre cove. It.
Speak to it.
Any plans that you may have or initiatives.
Two.
On a potentially keep it low as.
Economies and unemployment rates, you know trying to our improving hopefully over.
On a post koby world.
So great question and I I think of you know the question you're asking about employee turnover agent turnover I think absenteeism also matters in in this environment.
And I think you.
It's important to talk about this in absenteeism as in an age it's not on not able to pick from coal. When you are hoping to have them you don't have them available.
What we've seen in.
I think this is different by geography.
In a market like the U.S., where.
We're working at home is a great environment.
And you have great broad broadband and great power kind of reliable power et cetera.
We've seen attrition go down significantly we've seen absenteeism go down significantly our agents love them.
Able to work Greg will earn wages, if they need to be able to work overtime things like that to drive performance and we've seen that really really well so.
Now in the non U.S. markets, you know kind of the emerging markets for us there's two dynamics that have taken place one is.
Rob.
Patricians down sit down and.
And we run low attrition in those markets anyhow, but it is down and I think it's down because of.
The importance to having a job and you know.
Continued earning an IBEX because we've been basically 100% operational we've had a good reputation on that and so attrition.
He is down now.
That doesn't get offset though little bit by absenteeism and absenteeism comes into two broad buckets. One is kind of the transportation to get to the centers.
With the public transportation.
Really being shut down in a market like the Philippines, it's become a lot more challenging and so getting people into the centers has become a big logistical price a project that we've had we've had to operate under but those that work at home.
There's issues like reliability of power and reliability abroad debt. So even though the agent may want to be taking the phone calls.
Because if you don't kind of have an unreliable elements of that it's caused a little bit of a negative on the on on the what I'll call the absenteeism or availability side of that so you kind of have a little bit of a.
You know it gain on attrition, but a little bit more of a challenge on the on the.
On the availability side of those agents.
Does that does that make sense do you follow followed on it doesn't it gives me a good context could you describe what it means on a sort.
From a net basis, if you net out.
Those moving parts, either by developed or emerging markets and.
Sort of the absenteeism and well turn over.
Sure. So I mean, I think if you put it all altogether I think it is a positive for us as a business from X. I'm not sure. How you know for our competitors. It is a positive but there are.
You know there are incremental costs that we are you know that we are recruiting sort an agent level attritions down that's the big one.
And so that's a you know a.
Good element, but then there is a lot of extra overhead debt that we are incurring.
That you know the key per cent are safe clean you know the extra.
Deep cleaning sets you have to do in your centers the culture testing things like that that go into it.
Into that.
Requirement to keep yourself operational you know that those offset some of the gains that we have put on hold it's been it's been possible force.
Thank you.
Thank you.
And that does conclude todays question and answer session I would now like to turn the call back to Bob for any closing remarks.
Great Thanks, Chris for that and other.
Really per shape.
Questions.
We are really excited about where the business is.
Our team is operating really well and they are working hard to keep our centers.
Operational our people safe and we're just so.
Excited that that the results that we've obtained on that element and on the client side and on the financial side of all come together and we thank you for that and we'll look forward to updating.
Updating you on the future of some of the key developments. Thank you all bye.
Ladies and gentlemen, this cash.
Today's conference call. Thank you from Pittsburgh you May now disconnect.
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