Q1 2025 IBEX Ltd Earnings Call

Operator: Thanks for watching!

[music].

Operator: Thank you for standing by.

Thank you for standing by their names, you're mining and that would be a conference operator today at this time I would like to welcome everyone to IDEXX Ltd first quarter 295 feet not sure. This conference call all lines have been placed on mute to prevent any background night. After the Speakers' remarks, there will be a question and answer session.

Hermione: My name is Hermione and I will be your conference operator today. At this time, I would like to welcome everyone to IBEX Limited First Quarter 2025 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise.

Hermione: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again.

If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star one again.

Hermione: To note, there is a company earnings deck presentation available on the IBEX Investor Relations website at investors.ibex.co.

Speaker Change: They're not there isn't a company any stick presentation available on the IMAX Investor Relations website at investors that I base that cool.

Michael Darwal: I will now turn this conference over to Mr. Michael Darwal, Head of Investor Relations for IBEX. Please go ahead.

Speaker Change: During this conference over to Mr. Michael Doorbell head of Investor Relations for IBEX. Please go ahead.

Michael Darwal: Good afternoon, and thank you for joining us today. Before we begin, I want to remind you that matters discussed on today's call may include forward-looking statements related to our operating performance, financial goals, and business outlook, which are based on management's current beliefs and assumptions. Please note that these forward-looking statements reflect our opinion as of the date of this call, and we undertake no obligation to revise this information as a result of new developments which may occur. Forward-looking statements are subject to various risks, uncertainties, and other factors that could cause our actual results to differ materially from those expected and described today.

Speaker Change: Good afternoon, and thank you for joining us today before we begin I want to remind you that matters discussed on today's call may include forward looking statements related to our operating performance financial goals and business outlook, which are based on management's current belief.

Speaker Change: Gifts and assumptions. Please note that these forward looking statements reflect our opinion as of the date of this call and we undertake no obligation to revise this information as a result of new developments, which may occur.

Speaker Change: We're looking statements are subject to various risks uncertainties and other factors that could cause our actual results to differ materially from those expected and described today.

Michael Darwal: For a more detailed description of our risk factors, please review our annual report on Form 10-K, filed with the U.S. Securities and Exchange Commission, on September the 12th, 2024.

Speaker Change: For a more detailed description of our risk factors. Please review our annual report on Form 10-K filed with the U S Securities and Exchange Commission on September 12, 2024 with that I will now turn the call over to IMAX CEO Bob Deca.

Bob Dekker: With that, I will now turn the call over to Ibex CEO, Bob Dekker. Thanks, Mike. Good afternoon, everyone. And thank you all for joining us today as we share our first quarter fiscal year 2025 results. Let me start my remarks by thanking my team for their continued fantastic performance. I believe they are the best in the industry. With our performance in the first quarter, we have now improved adjusted EBITDA margin over the prior year in nine out of the last ten quarters. and in an industry that has recently been challenged growing cop lines. Ibex is one of the first BPO's to return to meaningful organic revenue growth.

Bob Deca: Thanks, Mike Good afternoon, everyone.

Bob Deca: Thank you all for joining us today as we share our first quarter fiscal year 2025 results.

Bob Deca: Let me start my remarks by thanking my team for their continued fantastic performance.

Bob Deca: Believe they are the best in the industry.

Bob Deca: With our performance in the first quarter.

Bob Deca: Now improved adjusted EBITDA margin over the prior year and nine there was the last 10 quarters.

Bob Deca: And then an industry that has recently been challenged growing top line.

Bob Deca: <unk> is one of the first <unk> to return to meaningful organic revenue growth, where we grew at four 1% in the quarter.

Bob Dekker: where we grew at 4.1% in the quarter. On top of that. The first quarter of FY25 was another record-setting quarter for Ibex. where we achieved first quarter best. across a number of key financial metrics, including revenue, net income, EPS. and Ibex. Our growth was driven by great performance from our new logo team. and New Winds within our embedded base fly. as we outperform our competition and take market share. I am excited to report that our growth vectors continue to be our margin expansion driver. as we grow our higher margin services and geographies, which represent nearly 80% of our overall business.

On top of that.

Bob Deca: First quarter of FY 'twenty five was another record setting quarter for IMAX, where we achieved first quarter best across a number of key financial metrics, including revenue.

Bob Deca: Net income EPS and EBITDA.

Bob Deca: Our growth was driven by great performance from our new logo team.

Bob Deca: And new wins with our embedded base clients.

Bob Deca: As we outperform our competition and take market share.

Bob Deca: I am excited to report that our growth sectors continue to be our margin expansion drivers as.

Bob Deca: As we grow our higher margin services, and geographies, which represent nearly 80% of our overall business.

Bob Dekker: As a result, we are confident in our ability to continue to drive top-line growth and margin expansion. We have built a culture of winning. one where we continue to demonstrate our unique ability to successfully punch above our weight and beat our much larger competitors. We have also differentiated ourselves from the competition by leveraging an unparalleled agent-first culture. paired with our award-winning Wave IX technology. and our deep analytics capability. We are now extending our competitive mode with cutting edge AI solutions. Let me highlight some of the key results we delivered in Q1. We delivered record Q1 revenue of $129.7 million, up 4.1% from a year ago.

As a result, we are.

Bob Deca: We're confident in our ability to continue to drive topline growth and margin expansion.

Bob Deca: We have built a culture of winning.

Bob Deca: One where we continue to demonstrate our unique ability to successfully punch above our weight and beat our much larger competitors.

Bob Deca: We have also differentiated ourselves from the competition by leveraging an unparalleled agent for Sculpsure.

Bob Deca: Paired with our award winning <unk> technology stack and our deep analytics capabilities.

Bob Deca: We are now extending our competitive mode with cutting edge AI solutions.

Bob Deca: Let me highlight some of the key results we delivered in Q1.

Bob Deca: We delivered record Q1 revenue of $129 7 million.

Bob Deca: Up four 1% from a year ago.

Bob Dekker: This was driven by market share growth in many of our top clients and scaling many of the 18 new logo clients we won last year. On top of that, we won and launched three new client relationships in the quarter. and are having early success in the current. The signature win was with one of the largest e-commerce companies in the world, where we are rapidly scaling global English support for their customers worldwide out of our offshore footprint. We expanded year-over-year adjusted EBITDA margin for the ninth time in the last 10 quarters, delivering a 12% adjusted EBITDA margin while setting record Q1 net income of $7.5 million.

Bob Deca: This was driven by market share growth in many of our top clients and scaling many of the 18 new logo clients, we won last year.

Bob Deca: On top of that we won and launched three new client relationships in the quarter.

Bob Deca: And are having early success in the current quarter.

Bob Deca: The signature win was with one of the largest e-commerce companies in the World, where we are rapidly scaling global English support for their customers worldwide out of our offshore footprints.

Bob Deca: We expanded year over year adjusted EBITDA margin for the ninth time in the last 10 quarters, delivering a 12% adjusted EBITDA margin, while setting record Q1 net income of $7 5 million.

Bob Dekker: We achieved record adjusted EPS of $0.52, up 30% from $0.40 a year ago. and with our strong free cash flow and balance. We were able to repurchase more than 280,000 shares at a cost of $4.7 million in the quarter. Again, I'm so proud of the results that this team continues to deliver. We are having great success with our customer facing Wave IX solutions we call AI Automate, AI Translate, and AI Authenticate. Last quarter, I announced our first significant win with AI Automate for a leading mobile carrier. I'm excited to announce that we have won two additional AI opportunities this quarter.

Bob Deca: We achieved record adjusted EPS of <unk> 52.

Bob Deca: Up 30% from <unk> 40, a.

Bob Deca: A year ago.

Bob Deca: And with our strong free cash flow and balance sheet.

Bob Deca: We were able to repurchase more than 280000 shares at a cost of $4 7 million in the quarter.

Bob Deca: Again, I am so proud of the results that this team continues to deliver.

Bob Deca: We are having great success with our customer facing wave IX solutions, we call AI automate AI translate and authenticate lash.

Bob Deca: Last quarter, I announced our first significant win with AI to automate for a leading mobile carrier.

I'm excited to announce that we have won two additional AI opportunities this quarter.

Bob Dekker: The first is a deployment of AI Automate to transform the customer experience for a new client. Our new client is also having us displace one of our largest competitors for their traditional BPO agent-led customer support. We now have a tightly integrated, end-to-end solution. Our second AI win is with a leading travel related client, where we are providing AI Translate to do language translation services for a broad range of foreign languages. This solution will transform their customer experience from old-world, third-party language translation. to a new cutting edge solution. I'm also proud to report that our AI Translate solution has recently earned the 2024 Generative AI Product of the Year Award.

Bob Deca: The first is the deployment of AI automate to transform the customer experience for a new client or new client is also having us displace one of our largest competitors for their traditional <unk> agent land customer support.

Bob Deca: We now have a tightly integrated end to end solution for them.

Bob Deca: Our second AI win is with a leading travel related client, where we are providing AI translate to do language translation services for a broad range of foreign languages.

Bob Deca: This solution will transform their customer experience from old World Third Party language translation.

Bob Deca: Through a new cutting edge solution I'm also proud to report that our AI translate solution has recently earned the 2024 generative AI product of the year Award.

Bob Dekker: Lastly, I am also proud to report that Ibex was named number two for America's Best Employers for Tech Workers by Fortune magazine, beating out companies like Salesforce, Microsoft, and many others. In summary, we are excited with our trajectory as we move forward into FY25. We believe our business is positioned for consistent growth, continued strong EPS and free cash flow. and one where we lead the competition from an AI perspective. As I have previously stated, our ability to win big with high-profile brands is the staple of Ibex. We expect this to continue throughout FY25 and beyond.

Bob Deca: Lastly, I am also proud to report that IBEX was named number two for America's best employers for Tech workers by Fortune magazine, beating out companies like Salesforce, Microsoft and many others.

Bob Deca: In summary, we are excited with our trajectory as we move forward into FY 'twenty five.

Bob Deca: We believe our business is positioned for consistent growth continued strong EPS and free cash flow.

Bob Deca: And one where we lead with competition from an AI perspective.

Bob Deca: As I have previously stated our ability to win big with high profile brands is the staple of IDEXX. We expect this to continue throughout FY 'twenty five and beyond.

Taylor Greenwald: With that, I will now turn the call over to Taylor to go into more details on our first quarter FY25 financials and guidance. Taylor?

Bob Deca: With that I will now turn the call over to Taylor to go into more details on our first quarter FY 'twenty five financials and guidance.

Bob Deca: Sure.

Taylor Greenwald: Thank you, Bob, and good afternoon, everyone. Thank you for joining the call today. My discussions of our first quarter fiscal year 2025 financial results, references to revenue, net income, and net cash generated from operations are on a U.S. gap basis, while adjusted net income, adjusted earnings per share, adjusted EBITDA, free cash flow are on a non-gap basis. Reconciliations of our U.S. GAAP to non-GAAP measures are included in the tables attached to our earnings press release.

Taylor: Thank you Bob and good afternoon, everyone.

Taylor: Thank you for joining the call today.

Taylor: Hey, my discussions of our first quarter fiscal year 2025 financial results references to revenue net income and net cash generated from operations U S. GAAP basis, while adjusted net income adjusted earnings per share adjusted EBITDA free cash flow are on a non-GAAP basis.

Taylor: Reconciliations of our U S. GAAP to non-GAAP measures are included in the tables attached to our earnings press release.

Taylor Greenwald: Turning to our results, our first quarter results are among the strongest in our history. We achieved record first quarter revenue, net income, EPS, adjusted net income, adjusted EPS, and adjusted EBITDA. First quarter revenue was $129.7 million, an increase of 4.1% from $124.6 million in the prior year quarter. Revenue growth was driven by vertical growth in health tech of 23.4%, retail and e-commerce of 8.6%, and travel, transportation, and logistics of 10%. It was partially offset by decline in the Fintech vertical of 13%. Our focused efforts to grow our higher margin nearshore and offshore delivery locations are having a favorable impact on bottom line results.

Taylor: Turning to our results our first quarter results are among the strongest in our history.

Taylor: We achieved record first quarter revenue net income EPS adjusted net income adjusted EPS and adjusted EBITDA.

Taylor: First quarter revenue was $129 7 million, an increase of four 1% from $124 6 million in the prior year quarter.

Taylor: Revenue growth was driven by vertical growth and health check of 23, 4% retail e-commerce of eight 6% and travel transportation and logistics of 10% and was partially offset by decline in the fintech vertical up 13%.

Taylor: Our focused efforts to grow our higher margin nearshore and offshore delivery locations are having a favorable impact on bottom line results.

Taylor Greenwald: Offshore and nearshore revenues now comprise 76% of total revenue versus 75% in the prior year quarter. Our lower margin onshore region decreased to 24% of total revenue versus 25% in the prior year quarter. Revenue mix in the higher margin digital and omnichannel services continued to be strong. Digital and omnichannel delivery represented 76% of our total revenue, consistent with 77% in the prior year quarter. We expect that we'll continue to be successful driving growth in these higher margin services. As Bob mentioned, we're seeing our pipeline, particularly in higher margin services, strengthen, leading to an acceleration of new client.

Taylor: Offshore nearshore revenues now comprise 76% of total revenue versus 75% in the prior year quarter.

Taylor: Our lower margin onshore region decreased to 24% of total revenue versus 25% in the prior year quarter.

Taylor: Revenue mix into higher margin digital and Omnichannel services continued to be strong.

Taylor: Digital and Omnichannel delivery represented 76% of our total revenue consistent with 77% in the prior year quarter.

Taylor: We expect that we will continue to be successful driving growth in these higher margin services as Bob mentioned, we're seeing our pipeline, particularly in higher margin services strengthen leading to an acceleration of new client wins.

Taylor Greenwald: First quarter net income increased to $7.5 million compared to $7.4 million in the prior year quarter. The increase was primarily driven by the meaningful growth of work in higher margin offshore regions of 12% year-over-year for the quarter, the site and cost optimization efforts completed over the past year, and further leverage from revenue growth partially offset by higher income taxes. Totally diluted EPS was $0.43, up from $0.39 the prior year quarter. Contributing to the EPS growth was the impact from fewer diluted shares outstanding as a result of our ongoing share repurchase. The looted shares in the quarter were $17.5 million versus $18.9 million one year ago.

Taylor: First quarter net income increased to $7 5 million compared to $7 4 million in the prior year quarter. The increase was primarily driven by the meaningful growth of work and higher margin offshore regions of 12% year over year for the quarter.

Taylor: The site and cost optimization efforts completed over the past year and further leverage from revenue growth, partially offset by higher income tax expense.

Taylor: Fully diluted EPS was <unk> 43.

Taylor: From 39, Thats the prior year quarter contributing to the EPS growth was the impact from fewer diluted shares outstanding as a result of our ongoing share repurchase program.

Taylor: Diluted shares for the quarter was $17 5 million versus $18 9 million one year ago.

Taylor Greenwald: Moving to non-GAAP measures, adjusted EBITDA increased to $15.6 million or 12% of revenue from $13.7 million or 11% of revenue for the same period last year. The 100 basis point improvement in adjusted EBITDA margin was primarily driven by growth in our higher margin offshore locations during recent years, growth in key verticals from existing and new clients launched throughout fiscal year 2024 and the first quarter of fiscal year 2025, and stronger operating results due to site optimization efforts. Adjusted net income increased to $9 million from $7.6 million in the prior year quarter. Non-GAAP fully diluted earnings per share increased to $0.52 from $0.40 in the prior year quarter.

Taylor: Moving to non-GAAP measures adjusted EBITDA increased to $15 6 million or 12% of revenue from $13 7 million or 11% of revenue for the same period last year.

Taylor: 100 basis point improvement in adjusted EBITDA margin was primarily driven by growth in our higher margin offshore locations during recent years.

Taylor: Growth in key verticals from existing and new clients launched throughout fiscal year 2024, and the first quarter of fiscal year 2025 and.

Taylor: Stronger operating results due to site optimization efforts.

Taylor: Adjusted net income increased to $9 million from $7 6 million in the prior year quarter non-GAAP fully diluted earnings per share increase of 52 from 40 in the prior year quarter.

Taylor Greenwald: The increases were driven by the higher EBITDA and fewer diluted shares outstanding due to our ongoing share repurchase program offset by higher taxes. expect our tax rate to track toward 21-22% for the year.

Taylor: The increases were driven by the higher EBITDA and fewer diluted shares outstanding due to our ongoing share repurchase program offset by higher taxes.

Taylor: Our tax rate to track towards <unk>, 21% to 22% for the year.

Taylor Greenwald: As a company, we're pleased with the client diversification we've established over the last several years. For the first quarter of fiscal year 2025, our largest client accounted for 11% of revenue and our top 5, top 10, and top 25 client concentrations declined slightly compared to the prior year to 36%, 51%, and 77% respectively of overall revenue, representative of a well-diversified client portfolio which continues to become more diversified. Switching to our verticals, health tech increased to 14.1% of first quarter revenue versus 11.9% in the prior year quarter. Retail and e-commerce increased to 24.5% versus 23.4% in the prior year quarter.

Taylor: As a company we're pleased with the client diversification, we established over the last several years for the first quarter of fiscal year 2025, our largest client accounted for 11% of revenue and our top five top 10, and top 25 client concentration declined slightly compared to the prior year to 36% 51%.

Taylor: And 77%, respectively. Overall revenue representative of a well diversified client portfolio, which continues to become more diversified.

Taylor: Switching to our verticals health Tech increase of 14, 1% of first quarter revenue versus 11, 9% in the prior year quarter retail and E. Commerce increased to 24, 5% versus 23, 4% for the prior year quarter and travel transportation and logistics increased to 14, 2% versus 13.

Taylor Greenwald: And travel, transportation, logistics increased to 14.2% versus 13.5% in the prior year quarter. These increases were driven by continued growth in multiple offshore geographies and our continued ability to win significant new clients in these verticals. Conversely, our exposure to the FinTech verticals decreased to 12.4% of revenues for the quarter versus 14.8% in the prior year quarter, impacted by the changing landscape for some client payment support models and geographic shifts from onshore to offshore delivery.

Taylor: 5% in the prior year quarter.

Taylor: These increases were driven by continued growth in multiple offshore geographies and our continued ability to win significant new clients in the verticals.

Taylor: Conversely, our exposure to the Fintech vertical decreased 12, 4% of revenues for the quarter versus 14, 8% in the prior year quarter impacted by the changing landscape for some client payments support models and geographic shifts from onshore to offshore delivery.

Taylor Greenwald: Net cash generated from operating activities was relatively constant at $7.8 million for the first quarter of fiscal 2025 compared to $8.7 million for the prior year quarter. A slight decrease in net cash inflow from operating activities is primarily due to longer DSOs and far receivables offset by higher revenues and stronger operating costs. Our DSOs were 75 days, up from 72 days at the end of the year, and in line with industry average. DSOs increased slightly this quarter due to late payments from certain clients, which we received early in the second quarter. We expect our DSOs to remain stable on a go-forward basis.

Taylor: Net cash generated from operating activities was relatively constant at $7 8 million for the first quarter of fiscal 2025 compared to $8 7 million for the prior year quarter.

A slight decrease in net cash inflow from operating activities was primarily due to longer dsos for our receivables offset by higher revenues and stronger operating results.

Taylor: Our Dsos were 75 days up from 72 days at the end of the year and in line with industry average Dsos increased slightly this quarter due to late payments from certain clients, which received early in the second quarter. We expect our Dsos remained stable on a go forward basis.

Taylor Greenwald: Capital expenditures were $3.6 million or 2.8% of revenue for the first quarter of fiscal year 2025 versus $2.1 million or 1.6% of revenue in the prior quarter. The increase was primarily driven by expansions in our offshore and nearshore regions to support growth in these higher margin geographies. Free cash flow is $4.1 million in the current quarter compared to $6.6 million in the prior quarter. The decrease was driven by the increased capital expenditures during the quarter and the aforementioned longer DSP. Our end-of-quarter cash and net cash balances were relatively constant versus the end of our fiscal year, June 30, 2024, at $62.3 million and $60.8 million versus $62.7 million and $61.2 million.

Capital expenditures were $3 6 million or two 8% of revenue for the first quarter of fiscal year 2025 versus $2 1 million or one 6% of revenue in the prior year quarter.

Taylor: The increase was primarily driven by expansions in our offshore nearshore regions to support growth in these higher margin geographies.

Taylor: Free cash flow was $4 1 million in the current quarter compared to $6 6 million in the prior year quarter.

Taylor: Decrease was driven by the increased capital expenditures during the quarter and the aforementioned longer dsos.

Taylor: Our end of quarter cash and net cash balances were relatively constant versus the end of our fiscal year June 32024 at $62 3 million from $60 8 million versus $62 7 million and $61 2 million.

Taylor Greenwald: We repurchased approximately 282,000 shares for $4.7 million in the first quarter, which offset our free cash flow. We have $22.2 million remaining to repurchase under our current share repurchase program.

Taylor: We repurchased approximately 282000 shares for $4 7 million in the first quarter, which offset our free cash flow.

Taylor: We have $22 $2 million remains repurchased under our current share repurchase program.

Taylor Greenwald: To summarize our first quarter of fiscal 2025, we further built our top-line momentum in the quarter with 4.1% revenue. This is the result of our focused effort to win new logos and deliver superior service, allowing us to expand with our embedded client. Importantly, our profitability continues to improve. This was our ninth of the last 10 quarters where we delivered year-over-year adjusted EBITDA margin expansion, getting a strong cash flow that we're using to further invest in AI capabilities and sales. As we look ahead, we remain confident in our strategy to drive revenue growth throughout 2025 and continue to return value to shareholders.

Taylor: To summarize our first quarter of fiscal 2025, we further built our topline momentum in the quarter with four 1% revenue growth. This is a result of our focused effort to win new logos and deliver superior service, allowing us to expand with our embedded client base.

Taylor: Importantly, our profitability continues to improve this was our ninth of the last 10 quarters, where we delivered year over year adjusted EBITDA margin expansion, leading to strong cash flow that we're using to further invest in AI capabilities and sales resources.

Taylor: As we look ahead, we remain confident in our strategy to drive revenue growth throughout 2025 and continued to return value to shareholders.

Taylor: Okay.

Taylor Greenwald: For fiscal year 2025, revenue is expected to be in the range of $515 to $525 million, raising the lower end of the previous range from $510 million. Jesse Dibadat is expected to be in the range of 67 to 69. Capital expenditures are expected to be in the range of 15 to 20.

Taylor: For fiscal year 2025.

Taylor: Revenue is expected to be the range of $515 million to $525 million raising the lower end of the previous range from $510 million.

Taylor: Adjusted EBITDA is expected to be in the range of 67 to 69 million cap.

Taylor: Capital expenditures are expected to be in the range of $15 million to $20 million.

Taylor Greenwald: Our business is well positioned for today and the years ahead and we're excited about the future of Ibex as we head into the second quarter of fiscal year 2025 and beyond.

Taylor: Our business is well positioned for today and the years ahead, and we're excited about the future buybacks as we head into the second quarter of fiscal year 2025 and beyond.

Operator: With that, Bob and I will now take questions. Operator, please open the line.

Speaker Change: With that Bob and I will now take questions. Operator, please open the line.

Operator: At this time, I would like to remind everyone in order to ask a question, press star then the number 1 on your telephone keypad. We will pause for just a moment to compile the Q&A roster.

Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad is a plus.

Speaker Change: Plus deferred just a moment to compile the Q&A.

Speaker Change: Okay.

David Koning: Your first question comes from the line of David Koning with Baird. Please go ahead.

Speaker Change: Your first question comes from the line of David <unk> with Baird. Please go ahead.

David Koning: Yeah, hey guys, great job. And I guess my, you know, my first question, just the inflection and revenue, you've been kind of flat to down for, you know, a few quarters, probably four or five quarters just with macro. And now all of a sudden, you know, you hit a pretty nice inflection and growth. And I guess twofold question, one is 4% first quarter of the year, your full year is one to three. So, you know, is there a reason to think that you could actually keep this momentum up around mid single digits? And then I guess, secondly, is it more the backdrop is getting a little better?

Speaker Change: Yeah, Hey, guys great job.

Speaker Change: And I guess my my first question just the inflection in revenue you've been kind of flat to down.

Speaker Change: In a few quarters, probably four or five quarters, just with macro and now all of a sudden you.

Speaker Change: Hit.

Speaker Change: Pretty nice inflection in growth in I guess twofold question. One is a 4% first quarter of the year Youre full years one to three.

Speaker Change: Is there a reason to think that you could actually keep this momentum up around mid single digits and then I guess secondly is it more the backdrop is getting a little better or is this a lot of just client signings just are hitting and driving a lot of the growth.

David Koning: Or is this a lot of just client signings just all hitting and driving a lot of the growth?

Bob Dekker: Yeah, Dave. Hey, thanks for the question. Actually, thanks for joining. I know you got a busy schedule this week and all. But, you know, so let me touch first on the, you know, on on the growth. If you think about it, you know, we had a strong year in FY24 of winning new logos that all kept scaling ramping. And so, you know, as we shared, as you get into FY25, we think that those are going to be all kind of hitting full stride and maybe even, you know, continue to grow. So we had good visibility of that.

Speaker Change: Yes, Dave.

Speaker Change: Thanks for the question actually thanks for joining I know you've got a busy schedule.

Speaker Change: This weekend, but.

Speaker Change: So let me touch first on.

Speaker Change: The growth.

If you think about it.

Speaker Change: We had a strong year in FY 'twenty for a winning new logos that all kept scaling ramping and so as we shared as you get into FY 'twenty. Five we think that those are going to be all kind of hitting full stride and maybe even continue to grow. So we had good visibility of that.

Bob Dekker: And that was, you know, kind of the first part of the equation. The second part of the equation on growth was market share gains in the base. And we had, especially in our top five clients, we won a lot of business. We won new LOBs, new geographies, a lot of launches in markets, offshore markets, et cetera, taking market share away from our competitors. And so we had two really strong vectors that we feel really good about. We could see all that coming together in FY24, especially in the back half of 24. Now, the third variable is really kind of the rest of the base.

Speaker Change: And that was kind of the first part.

Speaker Change: Part of the equation.

Speaker Change: The second part of the equation on the growth was market share gains.

Speaker Change: The base and we had.

Speaker Change: Especially in our top five clients. We won a lot of business, we won new <unk>, new geographies a lot of launches in markets.

Speaker Change: Our offshore markets et cetera.

Speaker Change: Taking market share away from our competitors and so we had two really strong vectors.

Speaker Change: That we feel really good about that we could see all that coming together in FY 'twenty for especially in the back half of 'twenty four.

Speaker Change: Now the third variable is really kind of the rest of the base and we still think of that as a little bit choppy.

Bob Dekker: And, you know, we still think of that as a little bit choppy. you know, a little bit of, you know, still some challenges around, you know, around the macros. And so when you put those together, and we look out, we're hopeful, you know, that and our goal is to keep driving this and, you know, keep signing new logos and keep, you know, keep growth accelerating. Knowing that there's still some choppiness in the business, I think, you know, we'll kind of sit and say those could, you know, those variables, and how they play out could be, you know, there could be some, you know, headwinds that we don't necessarily see right now.

Speaker Change: Little bit of still some challenges around.

Speaker Change: Around the macros.

Speaker Change: And so when you put those together and we look out we're hopeful.

Speaker Change: And our goal is to keep driving this and keep signing new logos in Q.

Speaker Change: Key growth accelerating.

Speaker Change: Knowing that Theres still some choppiness in the business. So I think we're kind of sitting so those could.

Speaker Change: Those variables and how they play out could be.

Speaker Change: There could be some headwinds that we don't necessarily see right now and so we're trying to be a little bit conservative on guidance, but our goal is to certainly.

Bob Dekker: And so we're trying to be a little bit conservative on, you know, on guidance. But our goal is to certainly, you know, certainly, you know, kind of keep keep that keep the momentum going.

Speaker Change: Certainly.

Speaker Change: Keep that keep the momentum going.

Bob Dekker: Ibex, Ryan Potter, Taylor Greenwald, Michael Darwal, Ibex, Ibex, Ryan Potter, Taylor Greenwald, a little bit of both. So some nice wins on the on the new logo side, really, if you think about starting in the second half of our FY 24, those things start hitting stride. We also had, you know, I think just we're doing really good with those clients. And so we've won a lot of, you know, kind of a lot of market share away from our competitors. You know, we call it, you know, with those clients, it's like, well, take the Ibex challenge, we're going to outperform.

Speaker Change: Yeah, No that's great and maybe just maybe one follow up health Tech looked like the one place where growth.

Speaker Change: Disconnected from kind of recent levels and a really nice positive way was there one or two clients added in the quarter or was it just.

Speaker Change: Existing clients, just something happening to kind of inflect their growth.

Speaker Change: A little bit of both so some nice wins.

Speaker Change: On the call.

Speaker Change: The new logo side really if you think about starting in the second half of our FY 'twenty for those things start hitting stride. We also had.

Speaker Change: We're doing really good with those clients.

Speaker Change: And so we've won a lot of kind of a lot of market share away from our competitors we call. It with those clients just like we'll pick the IBEX challenge, we're going to outperform.

Bob Dekker: And, you know, and then we're going to keep them, you know, keep the numbers moving, you know, up into the right, you know, around, you know, our, our delivery for them. And that's what we've been doing. And they reward you with, you know, with new geos and, you know, new LOBs. And, you know, it's a it's a recipe for success. And we have a long, you know, honestly, we have a long track record of doing that.

Speaker Change: And then we're going to keep them.

Speaker Change: Keep the numbers moving up into the right.

Speaker Change: Around.

Speaker Change: Our our delivery for them and that's what we've been doing and they reward you with.

Speaker Change: With new Geos.

Speaker Change: New <unk>.

Speaker Change: It's a recipe for success and we have a long obviously, we have a long track record of doing that here.

David Koning: Great. Well, great job, guys. Thank you. Yeah, I appreciate it, Dave. And yeah, we're, you know, we just, you know, really feel good about about the Yeah. Great. Thank you.

Speaker Change: Great Great job guys. Thank you.

Speaker Change: Yes, I appreciate it David.

Speaker Change: Sure.

Speaker Change: We just really feel good about.

Speaker Change: Sure.

Speaker Change: Yeah, great. Thank you.

Operator: There are no further questions.

Speaker Change: There are no further questions I will now turn the call back over to Bob Duggan.

Bob Dekker: I will now turn the call back over to Bob Dechant, CEO, for closing remarks.

Bob Duggan: Oh for closing remarks.

Bob Dekker: Thanks, Hermione, and appreciate it. So look, we all have proud of what this team did. Results are great. We got a lot of momentum as we move for the rest of the year.

Thanks ceremony and appreciate it so look we all have proud.

Bob Duggan: Proud of what this team did results were great.

Bob Duggan: We've got a lot of momentum as we move from the rest of the year. Thank you all for delivering and we look forward to our.

Bob Dekker: Thank you all for delivering and look forward to our discussions over the next quarters and appreciate your confidence in Ibex. Thanks.

Bob Duggan: Our discussions over the next quarters.

Bob Duggan: Your confidence in IMAX, Thanks have a good day.

Operator: Have a good day.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining.

Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for Jamie you may now disconnect.

Operator: You may now disconnect.

Speaker Change: Okay.

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