Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-15946 | |
Entity Registrant Name | EBIX INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0021975 | |
Entity Address, Address Line One | 1 Ebix Way | |
Entity Address, City or Town | Johns Creek, | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30097 | |
City Area Code | 678 | |
Local Phone Number | 281-2020 | |
Title of 12(b) Security | Common stock, $0.10 par value per share | |
Trading Symbol | EBIX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 30,901,440 | |
Entity Central Index Key | 0000814549 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | [1] | Jun. 30, 2022 | [1] | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||||
Operating revenue | $ 118,430 | $ 250,781 | $ 361,191 | $ 537,034 | ||
Operating expenses: | ||||||
Cost of services provided | 33,757 | 169,330 | 190,236 | 380,173 | ||
Product development | 10,947 | 10,223 | 20,930 | 20,481 | ||
Sales and marketing | 3,582 | 4,511 | 6,913 | 8,276 | ||
General and administrative, net | 36,110 | 31,736 | 73,577 | 58,649 | ||
Amortization and depreciation | 4,893 | 4,874 | 9,909 | 9,238 | ||
Total operating expenses | 89,289 | 220,674 | 301,565 | 476,817 | ||
Operating income | 29,141 | 30,107 | 59,626 | 60,217 | ||
Interest income | 52 | 66 | 133 | 128 | ||
Interest expense | 24,614 | 11,664 | 46,877 | 21,915 | ||
Non-operating (loss) income | (3,647) | (408) | (3,977) | (1,142) | ||
Foreign currency exchange gain (loss) | (840) | 3,229 | (2,060) | 4,123 | ||
Income before income taxes | 92 | 21,330 | 6,845 | 41,411 | ||
Income tax (expense) benefit | 164 | 2,478 | 787 | 4,182 | ||
Net income including noncontrolling interest | (72) | 18,852 | 6,058 | 37,229 | ||
Net loss attributable to noncontrolling interest | (380) | (491) | (1,323) | (1,305) | ||
Net income attributable to Ebix, Inc. | $ 308 | $ 19,343 | $ 7,381 | $ 38,534 | ||
Basic earnings per common share attributable to Ebix, Inc. (in dollars per share) | $ 0.01 | $ 0.63 | $ 0.24 | $ 1.25 | ||
Diluted earnings per common share attributable to Ebix, Inc. (in dollars per share) | $ 0.01 | $ 0.63 | $ 0.24 | $ 1.25 | ||
Basic weighted average shares outstanding (in shares) | 30,866 | 30,745 | 30,854 | 30,729 | ||
Diluted weighted average shares outstanding (in shares) | 30,869 | 30,756 | 30,856 | 30,756 | ||
[1]Beginning April 1, 2023 Prepaid card revenues are presented on a net basis (based on new contractual changes) while periods preceding April 1, 2023 reflect prepaid card revenues on a gross basis. Please see (non- GAAP financials) table with both periods recast on a net basis, for comparison purposes under heading " Condensed Consolidated Statements of Income prepared on Net Basis for Comparative Purposes Only (Non GAAP)" . |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income prepared on Net Basis for Comparative Purposes Only (Non GAAP) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Operating revenue | $ 118,430 | [1] | $ 250,781 | [1] | $ 361,191 | $ 537,034 |
Operating expenses: | ||||||
Cost of services provided | 33,757 | [1] | 169,330 | [1] | 190,236 | 380,173 |
Product development | 10,947 | [1] | 10,223 | [1] | 20,930 | 20,481 |
Sales and marketing | 3,582 | [1] | 4,511 | [1] | 6,913 | 8,276 |
General and administrative, net | 36,110 | [1] | 31,736 | [1] | 73,577 | 58,649 |
Amortization and depreciation | 4,893 | [1] | 4,874 | [1] | 9,909 | 9,238 |
Total operating expenses | 89,289 | [1] | 220,674 | [1] | 301,565 | 476,817 |
Operating income | 29,141 | [1] | 30,107 | [1] | 59,626 | 60,217 |
Interest income | 52 | [1] | 66 | [1] | 133 | 128 |
Interest expense | (24,614) | [1] | (11,664) | [1] | (46,877) | (21,915) |
Non-operating (loss) income | (3,647) | [1] | (408) | [1] | (3,977) | (1,142) |
Foreign currency exchange gain (loss) | (840) | [1] | 3,229 | [1] | (2,060) | 4,123 |
Income before income taxes | 92 | [1] | 21,330 | [1] | 6,845 | 41,411 |
Income tax (expense) benefit | (164) | [1] | (2,478) | [1] | (787) | (4,182) |
Net income including noncontrolling interest | (72) | [1] | 18,852 | [1] | 6,058 | 37,229 |
Net loss attributable to noncontrolling interest | (380) | [1] | (491) | [1] | (1,323) | (1,305) |
Net income attributable to Ebix, Inc. | $ 308 | [1] | $ 19,343 | [1] | $ 7,381 | $ 38,534 |
Basic earnings per common share attributable to Ebix, Inc. (in dollars per share) | $ 0.01 | [1] | $ 0.63 | [1] | $ 0.24 | $ 1.25 |
Diluted earnings per common share (in dollars per share) | $ 0.01 | [1] | $ 0.63 | [1] | $ 0.24 | $ 1.25 |
Basic weighted average shares outstanding (in shares) | 30,866 | [1] | 30,745 | [1] | 30,854 | 30,729 |
Diluted weighted average shares outstanding (in shares) | 30,869 | [1] | 30,756 | [1] | 30,856 | 30,756 |
Net Basis | ||||||
Operating revenue | $ 118,430 | $ 114,924 | $ 234,503 | $ 214,444 | ||
Operating expenses: | ||||||
Cost of services provided | 33,757 | 33,473 | 63,549 | 57,583 | ||
Product development | 10,947 | 10,223 | 20,930 | 20,481 | ||
Sales and marketing | 3,582 | 4,511 | 6,913 | 8,276 | ||
General and administrative, net | 36,110 | 31,736 | 73,577 | 58,649 | ||
Amortization and depreciation | 4,893 | 4,874 | 9,909 | 9,238 | ||
Total operating expenses | 89,289 | 84,817 | 174,878 | 154,227 | ||
Operating income | 29,141 | 30,107 | 59,625 | 60,217 | ||
Interest income | 52 | 66 | 133 | 128 | ||
Interest expense | (24,614) | (11,664) | (46,877) | (21,915) | ||
Non-operating (loss) income | (3,647) | (408) | (3,977) | (1,142) | ||
Foreign currency exchange gain (loss) | (840) | 3,229 | (2,060) | 4,123 | ||
Income before income taxes | 92 | 21,330 | 6,844 | 41,411 | ||
Income tax (expense) benefit | (164) | (2,478) | (787) | (4,182) | ||
Net income including noncontrolling interest | (72) | 18,852 | 6,057 | 37,229 | ||
Net loss attributable to noncontrolling interest | (380) | (491) | (1,323) | (1,305) | ||
Net income attributable to Ebix, Inc. | $ 308 | $ 19,343 | $ 7,380 | $ 38,534 | ||
Basic earnings per common share attributable to Ebix, Inc. (in dollars per share) | $ 0.01 | $ 0.63 | $ 0.24 | $ 1.25 | ||
Diluted earnings per common share (in dollars per share) | $ 0.01 | $ 0.63 | $ 0.24 | $ 1.25 | ||
Basic weighted average shares outstanding (in shares) | 30,866 | 30,745 | 30,854 | 30,729 | ||
Diluted weighted average shares outstanding (in shares) | 30,869 | 30,756 | 30,856 | 30,756 | ||
[1]Beginning April 1, 2023 Prepaid card revenues are presented on a net basis (based on new contractual changes) while periods preceding April 1, 2023 reflect prepaid card revenues on a gross basis. Please see (non- GAAP financials) table with both periods recast on a net basis, for comparison purposes under heading " Condensed Consolidated Statements of Income prepared on Net Basis for Comparative Purposes Only (Non GAAP)" . |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income including noncontrolling interest | $ (72) | [1] | $ 18,852 | [1] | $ 6,058 | $ 37,229 |
Other comprehensive income (loss): | ||||||
Foreign currency translation adjustments | 2,393 | (43,343) | 10,113 | (54,627) | ||
Total other comprehensive income (loss) | 2,393 | (43,343) | 10,113 | (54,627) | ||
Comprehensive income | 2,321 | (24,491) | 16,171 | (17,398) | ||
Comprehensive loss attributable to noncontrolling interest | (380) | (491) | (1,323) | (1,305) | ||
Comprehensive income attributable to Ebix, Inc. | $ 2,701 | $ (24,000) | $ 17,494 | $ (16,093) | ||
[1]Beginning April 1, 2023 Prepaid card revenues are presented on a net basis (based on new contractual changes) while periods preceding April 1, 2023 reflect prepaid card revenues on a gross basis. Please see (non- GAAP financials) table with both periods recast on a net basis, for comparison purposes under heading " Condensed Consolidated Statements of Income prepared on Net Basis for Comparative Purposes Only (Non GAAP)" . |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 62,165 | $ 110,637 |
Receivables from service providers | 542 | 4,223 |
Short-term investments | 14,392 | 17,438 |
Restricted cash | 8,282 | 8,210 |
Fiduciary funds - restricted | 1,735 | 2,092 |
Trade accounts receivable, less allowances of $18,885 and $18,167, respectively | 163,166 | 154,533 |
Other current assets | 98,598 | 87,387 |
Total current assets | 348,880 | 384,520 |
Property and equipment, net | 53,695 | 52,448 |
Right-of-use assets | 8,695 | 9,636 |
Goodwill | 887,101 | 881,676 |
Intangibles, net | 47,995 | 50,900 |
Indefinite-lived intangibles | 16,647 | 16,647 |
Capitalized software development costs, net | 15,886 | 15,342 |
Deferred tax asset, net | 124,289 | 96,290 |
Other assets | 37,320 | 30,096 |
Total assets | 1,540,508 | 1,537,555 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 95,617 | 99,194 |
Payables to service agents | 18,737 | 11,299 |
Accrued payroll and related benefits | 13,367 | 10,652 |
Working capital facility | 5,043 | 3,367 |
Fiduciary funds - restricted | 1,735 | 2,092 |
Revolving line of credit | 444,902 | 449,902 |
Short-term debt | 608 | 3,000 |
Current portion of long term debt and financing lease obligations, net of deferred financing costs of $934 and $469, respectively | 172,857 | 190,866 |
Contract liabilities | 37,769 | 32,029 |
Lease liability | 3,024 | 3,354 |
Other current liabilities | 25,629 | 25,783 |
Total current liabilities | 819,288 | 831,538 |
Revolving line of credit | 0 | 0 |
Long term debt and financing lease obligations, less current portion, net of deferred financing costs of $0 and $0, respectively | 87 | 160 |
Contingent liability for accrued earn-out acquisition consideration | 2,315 | 2,298 |
Contract liabilities | 7,717 | 14,098 |
Lease liability | 6,002 | 6,612 |
Deferred tax liability, net | 1,150 | 1,150 |
Other liabilities | 27,092 | 22,259 |
Total liabilities | 863,651 | 878,115 |
Stockholders’ equity: | ||
Common stock, $0.10 par value, 220,000,000 shares authorized, 30,877,258 issued and outstanding, at June 30, 2023, and 30,819,533 issued and outstanding at December 31, 2022 | 3,088 | 3,082 |
Additional paid-in capital | 20,041 | 18,801 |
Retained earnings | 822,162 | 814,781 |
Accumulated other comprehensive loss | (209,326) | (219,439) |
Total Ebix, Inc. stockholders’ equity | 635,965 | 617,225 |
Noncontrolling interest | 40,892 | 42,215 |
Total stockholders’ equity | 676,857 | 659,440 |
Total liabilities and stockholders’ equity | 1,540,508 | 1,537,555 |
Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock, $0.10 par value, 500,000 shares authorized, no shares issued and outstanding at June 30, 2023 and December 31, 2022 | 0 | 0 |
Series Y Convertible preferred stock | ||
Stockholders’ equity: | ||
Series Y Convertible preferred stock, $0.10 par value, 350,000 shares authorized, no shares issued and outstanding at June 30, 2023 and December 31, 2022 | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Allowance for doubtful accounts | $ 18,885 | $ 18,167 |
Unamortized deferred financing costs, current | 934 | 469 |
Unamortized deferred financing costs, noncurrent | $ 0 | $ 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 220,000,000 | 220,000,000 |
Common stock, shares issued (in shares) | 30,877,258 | 30,819,533 |
Common stock, shares outstanding (in shares) | 30,877,258 | 30,819,533 |
Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series Y Convertible preferred stock | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 350,000 | 350,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling interest | |
Beginning balance (in shares) at Dec. 31, 2021 | 30,683,393 | ||||||
Beginning balance at Dec. 31, 2021 | $ 699,554 | $ 3,068 | $ 15,068 | $ 759,208 | $ (122,022) | $ 44,232 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Ebix, Inc. | 38,534 | 38,534 | |||||
Net loss attributable to noncontrolling interest | (1,305) | (1,305) | |||||
Cumulative translation adjustment | (54,627) | (54,627) | |||||
Vesting of restricted stock (in shares) | 74,164 | ||||||
Vesting of restricted stock | 0 | $ 7 | (7) | ||||
Share based compensation | $ 1,934 | 1,934 | |||||
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested (in shares) | (2,057) | (2,057) | |||||
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested | $ (64) | (64) | |||||
Common stock dividends paid (in dollars per share) | $ 0.075 | ||||||
Common stock dividends paid | $ (4,636) | (4,636) | |||||
Ending balance (in shares) at Jun. 30, 2022 | 30,755,500 | ||||||
Ending balance at Jun. 30, 2022 | 679,390 | $ 3,075 | 16,931 | 793,106 | (176,649) | 42,927 | |
Beginning balance (in shares) at Mar. 31, 2022 | 30,722,267 | ||||||
Beginning balance at Mar. 31, 2022 | 705,259 | $ 3,072 | 15,994 | 776,081 | (133,306) | 43,418 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Ebix, Inc. | 19,343 | [1] | 19,343 | ||||
Net loss attributable to noncontrolling interest | (491) | [1] | (491) | ||||
Cumulative translation adjustment | (43,343) | (43,343) | |||||
Vesting of restricted stock (in shares) | 34,183 | ||||||
Vesting of restricted stock | 0 | $ 3 | (3) | ||||
Share based compensation | 970 | 970 | |||||
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested (in shares) | (950) | ||||||
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested | $ (30) | (30) | |||||
Common stock dividends paid (in dollars per share) | $ 0.075 | ||||||
Common stock dividends paid | $ (2,318) | (2,318) | |||||
Ending balance (in shares) at Jun. 30, 2022 | 30,755,500 | ||||||
Ending balance at Jun. 30, 2022 | 679,390 | $ 3,075 | 16,931 | 793,106 | (176,649) | 42,927 | |
Beginning balance (in shares) at Dec. 31, 2022 | 30,819,533 | ||||||
Beginning balance at Dec. 31, 2022 | 659,440 | $ 3,082 | 18,801 | 814,781 | (219,439) | 42,215 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Ebix, Inc. | 7,381 | 7,381 | |||||
Net loss attributable to noncontrolling interest | (1,323) | (1,323) | |||||
Cumulative translation adjustment | 10,113 | 10,113 | |||||
Vesting of restricted stock (in shares) | 60,007 | ||||||
Vesting of restricted stock | 0 | $ 6 | (6) | ||||
Share based compensation | $ 1,288 | 1,288 | |||||
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested (in shares) | (2,282) | (2,282) | |||||
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested | $ (42) | (42) | |||||
Common stock dividends paid (in dollars per share) | $ 0 | ||||||
Common stock dividends paid | $ 0 | 0 | |||||
Ending balance (in shares) at Jun. 30, 2023 | 30,877,258 | ||||||
Ending balance at Jun. 30, 2023 | 676,857 | $ 3,088 | 20,041 | 822,162 | (209,326) | 40,892 | |
Beginning balance (in shares) at Mar. 31, 2023 | 30,851,314 | ||||||
Beginning balance at Mar. 31, 2023 | 673,910 | $ 3,085 | 19,418 | 821,854 | (211,719) | 41,272 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Ebix, Inc. | 308 | [1] | 308 | ||||
Net loss attributable to noncontrolling interest | (380) | [1] | (380) | ||||
Cumulative translation adjustment | 2,393 | 2,393 | |||||
Vesting of restricted stock (in shares) | 26,917 | ||||||
Vesting of restricted stock | 0 | $ 3 | (3) | ||||
Share based compensation | 644 | 644 | |||||
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested (in shares) | (973) | ||||||
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested | $ (18) | (18) | |||||
Common stock dividends paid (in dollars per share) | $ 0 | ||||||
Common stock dividends paid | $ 0 | 0 | |||||
Ending balance (in shares) at Jun. 30, 2023 | 30,877,258 | ||||||
Ending balance at Jun. 30, 2023 | $ 676,857 | $ 3,088 | $ 20,041 | $ 822,162 | $ (209,326) | $ 40,892 | |
[1]Beginning April 1, 2023 Prepaid card revenues are presented on a net basis (based on new contractual changes) while periods preceding April 1, 2023 reflect prepaid card revenues on a gross basis. Please see (non- GAAP financials) table with both periods recast on a net basis, for comparison purposes under heading " Condensed Consolidated Statements of Income prepared on Net Basis for Comparative Purposes Only (Non GAAP)" . |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends paid (in dollars per share) | $ 0 | $ 0.075 | $ 0 | $ 0.075 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income attributable to Ebix, Inc. | $ 7,381 | $ 38,534 |
Net loss attributable to noncontrolling interest | (1,323) | (1,305) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization and depreciation | 9,909 | 9,238 |
Provision (benefit) for deferred taxes | (27,654) | (24,354) |
Share-based compensation | 1,288 | 1,934 |
(Benefit) provision for doubtful accounts | 1,832 | 1,702 |
Amortization of right-of-use assets | 2,051 | 1,765 |
Amortization of capitalized software development costs | 103 | 1,511 |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | (9,322) | (16,223) |
Receivables from service providers | 3,681 | (2,194) |
Payables to service agents | 7,438 | 1,174 |
Other assets | (5,749) | (9,826) |
Accounts payable and accrued expenses | 14,620 | 8,525 |
Accrued payroll and related benefits | 2,617 | 1,004 |
Contract liabilities | (786) | 8,766 |
Lease liabilities | (2,080) | (1,670) |
Reserve for potential uncertain income tax return positions | 0 | 0 |
Other liabilities | 4,433 | 2,863 |
Net cash provided by operating activities | 8,439 | 21,444 |
Cash flows from investing activities: | ||
Capitalized software development costs | (546) | (4,170) |
Maturities (purchases) of unrestricted marketable securities, net | (870) | (3,214) |
Capital expenditures | (7,921) | (9,607) |
Net cash (used in) provided by investing activities | (9,337) | (16,991) |
Cash flows from financing activities: | ||
Prepayments related to Debt Refinancing | (7,704) | 0 |
Proceeds from term loan | 0 | 0 |
Principal payments of term loan obligation | (40,961) | (15,933) |
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested | (42) | (64) |
Dividend payments | 0 | (4,636) |
Payments of debt obligations, net | (2,780) | (1,672) |
(Payments) of/Borrowings under working capital facility, net | 1,660 | (1,704) |
Payments of financing lease obligations, net | (86) | (106) |
Net cash used in financing activities | (49,913) | (24,115) |
Effect of foreign exchange rates on cash | 2,251 | (11,767) |
Net change in cash and cash equivalents, and restricted cash | (48,560) | (31,429) |
Cash and cash equivalents, and restricted cash at the beginning of the period | 124,959 | 114,764 |
Cash and cash equivalents, and restricted cash at the end of the period | 76,399 | 83,335 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 36,283 | 19,088 |
Income taxes paid | $ 25,055 | $ 24,222 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested (in shares) | 2,282 | 2,057 |
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested | $ 42 | $ 64 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business — Ebix, Inc., and its subsidiaries, (“Ebix” or the “Company”, "we", "us", and "our") is a leading international supplier of on-demand infrastructure exchanges to the insurance, financial services, travel, and healthcare industries. In the insurance industry, the Company’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis using software-as-a-service ("SaaS") enterprise solutions in the areas of customer relationship management ("CRM"), front-end and back-end systems, and outsourced administrative and risk compliance. The Company's products feature fully customizable and scalable software solutions designed to streamline the way insurance and financial industry professionals manage distribution, marketing, sales, customer service, and accounting activities. With a "Phygital” strategy that combines physical distribution outlets in India and many Association of Southeast Asian Nations ("ASEAN") countries to an Omni-channel online digital platform, the Company’s EbixCash financial exchange portfolio of software and services encompasses domestic and international money remittance, foreign exchange ("Forex"), travel, pre-paid gift cards, utility payments, lending, and wealth management in India and other ASEAN markets. The Company has its headquarters in Johns Creek, Georgia and also conducts operating activities in Australia, Brazil, Canada, India, Indonesia, New Zealand, the Philippines, Singapore, the United Arab Emirates, and the United Kingdom. International revenue accounted for 78.8% and 85.2% of the Company’s total revenue for the six months ended June 30, 2023 and 2022, respectively. Summary of Significant Accounting Policies Basis of Presentation — The accompanying unaudited condensed consolidated financial statements and these notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the effect of inter-company balances and transactions eliminated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP and SEC rules have been condensed or omitted as permitted by and pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements contain adjustments (consisting only of normal recurring items) necessary to fairly present the consolidated financial position of the Company and its consolidated results of operations and cash flows. Operating results for the three and six months ended June 30, 2023 and 2022 are not necessarily indicative of the results that may be expected for future quarters or the full year of 2023. The condensed consolidated December 31, 2022 balance sheet included in this interim period filing has been derived from the audited financial statements at that date, but does not necessarily include all of the information and related notes required by GAAP for complete financial statements. These condensed interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates — The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and reported amounts of revenue and expenses during those reporting periods. Management has made material estimates primarily with respect to revenue recognition and contract liabilities, accounts receivable, acquired intangible assets, annual impairment reviews of goodwill and indefinite-lived intangible assets, contingent earn out liabilities in connection with business acquisitions, and the provision for income taxes. Actual results may be different from those estimates. Reclassification — Certain prior year amounts have been reclassified to be consistent with current year presentation within our financial statements. Cash and Cash Equivalents — The Company considers all highly liquid investments with original maturity of three months or less at the time of purchase to be cash equivalents. Such investments are stated at cost, which approximates fair value. The Company does maintain cash balances in banking institutions in excess of federally insured amounts and therefore is exposed to the related potential credit risk associated with such cash deposits. Short-Term Investments — The Company's primary short-term investments consist of certificates of deposit with established commercial banking institutions in international markets that have readily determinable fair values. Ebix accounts for such investments that are reasonably expected to be realized in cash, sold, or consumed during the year as short-term investments that are available-for-sale. The carrying amount of investments in marketable securities approximates their fair value. The carrying value of short-term investments was $14.4 million and $17.4 million at June 30, 2023 and December 31, 2022, respectively. Restricted Cash — The carrying value of our restricted cash in current assets was $8.3 million and $8.2 million at June 30, 2023 and December 31, 2022, respectively. The June 30, 2023 balance consists of fixed deposits (many in the form of certificates of deposit) pledged with banks for issuance of bank guarantees and letters of credit related to our international operations for our working capital facilities. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows: As of June 30, 2023 2022 (In thousands) Cash and cash equivalents $ 62,165 $ 67,511 Restricted cash 8,282 9,415 Restricted cash included in other long-term assets $ 5,952 $ 6,409 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 76,399 $ 83,335 Fiduciary Funds - Restricted — Due to EbixHealth JV being a third party administrator ("TPA"), the Company collects premiums from insureds and, after deducting its fees, remits these premiums to insurance companies. Unremitted insurance premiums and/or claim funds established for the benefit for various carriers are held in a fiduciary capacity until disbursed by the Company. The use of premiums collected from insureds but not yet remitted to insurance companies is restricted by law in certain states. The total assets held on behalf of others, $1.7 million and $2.1 million at June 30, 2023 and December 31, 2022, respectively, are recorded as an asset and offsetting fiduciary funds - restricted liability. Advertising — Advertising costs amounted to $1.8 million and $3.1 million for the three and six month period ended June 30, 2023, respectively, and $2.4 million and $4.3 million for the three and six month period ended June 30, 2022, respectively. The costs are included in sales and marketing expenses in the accompanying condensed consolidated statements of income. The Company expenses advertising costs as incurred. Fair Value of Financial Instruments — The Company follows the relevant GAAP guidance regarding the determination and measurement of the fair value of assets/liabilities in which fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction valuation hierarchy, which requires and entity to maximize the use of observable inputs when measuring fair value. This guidance establishes a three-level hierarchy for disclosure of assets and liabilities recorded at fair value. The hierarchy reflects the degree to which objective data from external active markets are available to measure fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. The classifications are as follows: • Level 1 Inputs - Unadjusted quoted prices available in active markets for identical investments to the reporting entity at the measurement date. • Level 2 Inputs - Other than quoted prices included in Level 1 inputs, which are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs - Unobservable inputs, which are used to the extent that observable inputs are not available, and used in situations where there is little or no market activity for the asset or liability and wherein the reporting entity makes estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As of June 30, 2023, the Company had the following financial instruments to which it had to consider both fair values and make fair value assessments: • Short-term investments (commercial bank certificates of deposits and mutual funds), for which the fair values are measured as a Level 1 instrument for mutual funds and a Level 2 instrument for certificates of deposit. • Contingent accrued earn-out business acquisition consideration liabilities, for which fair values are measured as Level 3 instruments. These contingent consideration liabilities were recorded at fair value on the acquisition date and are re-measured quarterly based on the then assessed fair value and adjusted if necessary. The increases or decreases in the fair value of contingent consideration can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measure is based on significant inputs that are not observable in the market, they are categorized as Level 3. Other financial instruments not measured at fair value on the Company's unaudited Condensed Consolidated Balance Sheet at June 30, 2023 that require disclosure of fair values include: cash and cash equivalents, restricted cash, fiduciary funds, accounts receivable, receivables from service providers, accounts payable and accrued expenses, accrued payroll and related benefits, payables to service agents, finance lease obligations, working capital facilities, the revolving line of credit, and term loan debt. The Company believes that the estimated fair value of such instruments at June 30, 2023 and December 31, 2022 approximates their carrying value as reported on the Company's condensed consolidated balance sheets. Additional information regarding the Company's assets and liabilities that are measured at fair value on a recurring basis is presented in the following tables: Fair Values at Reporting Date Using* Descriptions Balance, June 30, 2023 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) Assets Commercial bank certificates of deposits ($10.2 million is recorded in the long term asset section of the condensed consolidated balance sheets in "Other assets") $ 32,730 $ — $ 32,730 $ — Mutual funds (recorded in 106 106 — — Total assets measured at fair value $ 32,836 $ 106 $ 32,730 $ — Liabilities Contingent accrued earn-out acquisition consideration (a) $ 2,315 $ — $ — $ 2,315 Total liabilities measured at fair value $ 2,315 $ — $ — $ 2,315 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected revenues and cash flows, rate of return, and probability assessments. * During the six months ended June 30, 2023, there were no transfers between fair value Levels 1, 2, or 3. Fair Values at Reporting Date Using* Descriptions Balance, December 31, 2022 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) Assets Commercial bank certificates of deposits ($6.4 million is recorded in the long term asset section of the condensed consolidated balance sheets in "Other assets") $ 37,434 $ — $ 37,434 $ — Mutual funds $ 98 $ 98 $ — $ — Total assets measured at fair value $ 37,532 $ 98 $ 37,434 $ — Liabilities Contingent accrued earn-out acquisition consideration (a) $ 2,299 $ — $ — $ 2,299 Total liabilities measured at fair value $ 2,299 $ — $ — $ 2,299 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected revenues and cash flows, rate of return, and probability assessments. * During the year ended December 31, 2021, there were no transfers between fair value Levels 1, 2, or 3. For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the six months ended June 30, 2023 and during the year ended December 31, 2022 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Liability for Accrued Earn-out Acquisition Consideration June 30, 2023 December 31, 2022 (In thousands) Beginning balance $ 2,299 $ — Total remeasurement adjustments: Remeasurement against goodwill — 2,299 Foreign currency translation adjustments ** 16 — Acquisitions and settlements Business settlements — — Ending balance $ 2,315 $ 2,299 The amount of total (gains) losses for the period included in earnings or changes to net assets, attributable to changes in unrealized gains relating to assets or liabilities still held at period-end. $ — $ — ** recorded as a component of other comprehensive income within stockholders' equity Quantitative Information about Level 3 Fair Value Measurements The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows: (In thousands) Fair Value at June 30, 2023 Valuation Technique Significant Contingent acquisition consideration: $2,315 Discounted cash flow Projected revenue and (In thousands) Fair Value at December 31, 2022 Valuation Technique Significant Contingent acquisition consideration: $2,299 Discounted cash flow Projected revenue and Sensitivity to Changes in Significant Unobservable Inputs As presented in the table above, the significant unobservable inputs used in the fair value measurement of contingent consideration related to business acquisitions are projected revenue forecasts, as developed by the relevant members of Company's management team and considers the probability of achievement of those revenue forecasts. The Company applies these inputs in its calculation and determination of the fair value of contingent earn-out liabilities for purchased businesses. During 2022, certain of the Company's contingent earn-out liabilities were adjusted because of changes to anticipated future revenues from these acquired businesses or as a result of finalizing purchase price allocations that were previously preliminary. Revenue Recognition and Contract Liabilities — The Company derives its revenues primarily from software subscription and transaction fees, software license fees, financial transaction fees, risk compliance solution services fees, and professional service fees, including associated fees for consulting, implementation, training, and project management provided to customers with installed systems and applications. Sales and value-added taxes are not included in revenues, but rather are recorded as a liability until the taxes assessed are remitted to the respective taxing authorities. The Company determines revenue recognition by applying the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, we satisfy a performance obligation. The Company analyzes its different services individually to determine the appropriate basis for revenue recognition, as further described below. Additionally, certain services exist in multiple channels. As Ebix derives revenues from two product/service channels, Exchanges - EbixCash and Insurance, and Risk Compliance Solutions, for policy disclosure purposes, contracts are discussed in conjunction with the channel to which they are most significant. The Company assesses the terms of customer contracts, including termination rights, penalties (implied or explicit), and renewal rights. EbixCash Exchanges EbixCash revenues are primarily derived from the sales of prepaid gift cards and consideration paid by customers for financial transaction services, including services for transferring or exchanging money. The significant majority of EbixCash revenue is for a single performance obligation and is recognized at a point in time. These revenues vary by transaction based upon channel, send and receive locations, the principal amount sent, whether the money transfer involves different send and receive currencies, and speed of service, as applicable. Gift Cards EbixCash sells general purpose prepaid gift cards to corporate customers and consumers that can be later redeemed at various merchants. The gift cards are co-branded between EbixCash and its card-issuing banking partners and are affiliated with major payment associations such as VISA, MasterCard, and Rupay. The gift cards are sold to a diversified set of corporate customers from various industries. The gift cards are used by corporate customers to disburse incentives to the end users, which are primarily their employees, agents, and business associates. The gift cards sold by EbixCash are not reloadable, cannot be used at ATMs or for any other cash-out or funds transfer transactions, and are subject to maximum limits per card (currently INR10,000 or approximately $122). Gift cards issued by EbixCash are valid for a period of fifteen months from the date of issuance for virtual cards and three years for physical cards. EbixCash has entered into arrangements with banks and financial institutions to settle payments to merchants based on utilization of the gift cards. Company Subsidiary Ebix Payment Services Private Limited received ‘a letter of displeasure’ from Reserve Bank of India (‘RBI’) dated March 21, 2023 (‘RBI Letter’), regarding certain of its co-branding arrangements in which RBI observed that the role of Ebix Payment Services as the non-bank entity exceeded the activities permitted under the Master Directions on Issuance and Operation of Prepaid Payment Instruments dated October 11, 2017 and Master Directions on Prepaid Payment Instruments dated August 27, 2021 (collectively, “MD-PPI”). Further, a circular dated April 19, 2023 was also issued by RBI to all approved/authorized PPI Issuers, according to which, RBI noted that as per the contractual arrangements between the banks (‘PPI Issuer’) and non-bank entities, the non-bank entities is inter-alia responsible for funds management, handling of KYC processes, transaction settlement, risk management, liabilities arising out of fraudulent transaction, all types of cards liabilities from customer and corporate’s points of view, etc, which exceeds the activities permitted under the MD-PPI applicable for aforementioned co-branding arrangements. As per the MD-PPI, the role of Ebix Payment Services Private Limited is to be limited to only marketing / distribution of the prepaid payment instruments or providing access to the prepaid payment instrument holders to services that are offered. Therefore, Ebix Payment Services Private Limited has been asked by RBI to suitably amend the co-branding arrangements/ agreements with the banks within one month of the aforesaid communications and strictly comply with the provisions of MD-PPI. Based on its assessment of the RBI letter, Company management is of the view that there will be no material financial impact of the modifications proposed by the RBI on the financial statements for the year ended December 31, 2022. Consequent to prospective amendments made/proposed to the co-branding arrangements with banks subsequent to year end, the Ebix Payment Services Private Limited would cease to be a principal under the amended arrangements and would act as an agent for the Banks /PPI Issuers. As a result, the revenue to be recognized for services provided by the EbixCash group post such amendments to the agreements would be recognized on net basis in the financial statements. Further, adjustments arising on recognition of revenue on net basis has been considered while presenting consolidated financial information. There is no impact on profits earned EbixCash Travel Exchanges EbixCash Travel revenues are primarily derived from commissions and transaction fees received from various travel providers and international exchanges involved in the sale of travel to the consumer. EbixCash Travel revenue is for a single performance obligation and is recognized at a point in time. Travel revenues include: (i) reservation commissions, segment fees from global travel exchange providers, and transaction net revenues (i.e., the amount charged to travelers less the amount owed to travel service providers) in connection with our reservation services; (ii) ancillary fees, including travel insurance-related revenues and certain reservation booking fees; and (iii) credit card processing rebates and customer processing fees. EbixCash Travel services include the sale of hotel rooms, airline tickets, bus tickets, and train tickets. EbixCash Travel revenue is also derived from ticket sales, wherein the commissions payable to EbixCash Travel, along with any transaction fees paid by travel providers and travel exchanges, is recognized as revenue after completion of the service. The transaction price on such services is agreed upon at the time of the purchase. EbixCash Travel revenue for the corporate meetings, incentives, conferences, and exhibitions ("MICE") packages is recognized at full purchase value at the completion of the obligation, with the corresponding costs recorded under cost of services provided. For MICE revenues, EbixCash Travel acts as the principal in transactions and, accordingly, reports revenue on a gross basis. EbixCash Travel controls the service at all times prior to transfer to the customer, is responsible for fulfilling the customer contracts, has the risk of loss, and has the ability to establish transaction prices. EbixCash Money Transfer For the EbixCash money transfer business, EbixCash has one performance obligation whereupon the customer engages EbixCash to perform one integrated service. This typically occurs instantaneously when the beneficiary entitled to receive the money transferred by the sender visits the EbixCash outlet and collects the money. Accordingly, EbixCash recognizes revenue upon completion of the following: (i) the customer’s acknowledgment of EbixCash’s terms and conditions and the receipt of payment information; (ii) the money transfer has been processed; (iii) the customer has received a unique transaction identification number; and (iv) funds are available to be picked up by the beneficiary. The transaction price is comprised of a transaction fee and the difference between the exchange rate set by EbixCash to the customer and the rate available in the wholesale foreign exchange market, as applicable, both of which are readily determinable at the time the transaction is initiated. Foreign Exchange and Outward Remittance Services For EbixCash’s foreign exchange and payment services, customers agree to terms and conditions for all transactions, either at the time of initiating a transaction or signing a contract with EbixCash to provide payment services on the customer’s behalf. In the majority of EbixCash’s foreign exchange and payment services transactions, EbixCash makes payments to the recipient to satisfy its performance obligation to the customer, and, therefore, EbixCash recognizes revenue on foreign exchange and payment when this performance obligation has been fulfilled. Consumer Payment Services EbixCash offers several different bill payment services that vary by considerations, including among other factors: (i) who pays the fee to EbixCash (consumer or biller); (ii) whether the service is offered to all consumers; (iii) whether the service is restricted to existing biller relationships of EbixCash; and (iv) whether the service utilizes a physical agent network offered for consumers’ convenience. The determination of which party is EbixCash’s customer for revenue recognition purposes is based on these considerations for each of EbixCash’s bill payment services. For all transactions EbixCash’s customers agree to EbixCash’s terms and conditions, either at the time of initiating a transaction (where the consumer is determined to be the customer for revenue recognition purposes) or upon signing a contract with EbixCash to provide services on the biller’s behalf (where the biller is determined to be the customer for revenue recognition purposes). As with consumer money transfers, customers engage EbixCash to perform one integrated service - collecting money from the consumer and processing the bill payment transaction. This service provides the billers real-time or near real-time information regarding their customers’ payments and simplifies the billers’ collection efforts. The transaction price on bill payment services is contractual and determinable. Certain biller agreements may include per-transaction or fixed periodic rebates, which EbixCash records as a reduction to revenue. EbixCash Technology Services EbixCash also offers on-demand technology to various providers in the area of lending, wealth and asset management, and travel across the world. Additionally, EbixCash provides IT and call center outsourcing services to companies in a variety of industries, both in India and globally. The EbixCash technology software solutions are generally delivered on a SaaS subscription and/or transaction based pricing model. Please see below under "Insurance Exchanges" a description of revenue recognition policies for SaaS, Subscription, and Transaction Fees, which are similar to how EbixCash technology software solutions revenues are recognized. For IT and call center outsourcing services provided by EbixCash businesses, revenues are generally recognized on a time and materials or fixed fee basis. Revenues for time and materials are recognized as such services are rendered, while fixed fee revenues are recognized based on the input method driven by the expected hours to complete the project measured against the actual hours completed to date. Insurance Exchanges Insurance Exchanges revenues are primarily derived from consideration paid by customers related to our SaaS platforms, related services, and the licensing of software. A typical contract for our SaaS platform will also include services for setup, customization, transaction processing, maintenance, and/or hosting. Determining whether products and services are considered distinct performance obligations that should be accounted for separately may require significant judgment. Set-up and customization services related to our SaaS platforms are not considered to be distinct from the usage fees associated with the SaaS platform and, accordingly, are accounted for as a single performance obligation. These services, along with the usage or transaction fees, are recognized over the contract duration, which considers the significance of the upfront fees in the context of the contract and which may, therefore, exceed the initial contracted term. A customer's transaction volume tends to remain fairly consistent during the contract period without significant fluctuations. The invoiced amount is a reasonable approximation of the revenue that would be allocated to the related period under the variable consideration guidelines in ASC 606-10-32-40. To the extent that a SaaS contract includes subscription services or professional services, apart from the upfront customization, these are considered separate performance obligations. The Company also has separate software licensing (on premise/perpetual), unrelated to the SaaS platforms, which is recognized at a point in time when the license is transferred to the customer. Contracts generally do not contain a right of return or refund provisions. Our contracts often contain overage fees, contingent fees, or service level penalties which are accounted for as variable consideration. Revenue accounted for as variable consideration is immaterial and is recognized using the “right to invoice” practical expedient when the invoiced amount equals the value provided to the customer. Software-as-a-Service The Company allocates the transaction price to each distinct performance obligation using the relative stand-alone selling price. Determining the stand-alone selling price may require significant judgment. The stand-alone selling price is the price at which an entity has sold or would sell a promised good or service separately to a customer. The Company determines the stand-alone selling price based on observable price of products or services sold separately in comparable circumstances, when such observable prices are available. When standalone selling price is not directly observable, the Company estimates the stand-alone selling price using the market assessment approach by considering historical pricing and other market factors. Software Licenses Software license revenues attributable to a software license that is a separate performance obligation are recognized at the point in time that the customer obtains control of the license. Subscription Services Subscription services revenues are associated with performance obligations that are satisfied over specific time periods and primarily consist of post-contract support services. Revenue is generally recognized ratably over the contract term. Our subscription contracts are generally for an initial three-year period with subsequent one-year automatic renewals. Transaction Fees Transaction revenue is comprised of fees applied to the volume of transactions that are processed through our SaaS platforms. These fees are typically based on a per-transaction rate and are invoiced for the same period in which the transactions were processed and as the performance obligation is satisfied. The amount invoiced generally equals the value provided to the customer, and revenue is typically recognized when invoiced using the as-invoiced practical expedient. Professional Services Professional service revenue primarily consists of fees for setup, customization, training, or consulting services. Professional service fees are generally on a time and materials basis or a fixed fee basis. Revenues for time and materials are recognized as such services are rendered, while fixed fee revenues are recognized based on the input method that is driven by the expected hours to complete the project measured against the actual hours completed to date. Professional services, particularly related to SaaS platforms, may have significant dependencies on the related licensed software and may not be considered a distinct performance obligation. Risk Compliance Solutions ("RCS") RCS revenues consist of two revenue streams - certificates of insurance ("COI") and consulting services. COI revenues are derived from consideration paid by customers for the creation and tracking of certificates of insurance. These revenues are transaction-based. Consulting services revenues are driven by distinct consulting service engagements rendered to customers, for which revenues are recognized using the output method on a time and material basis as the services are performed. COI Creation and Tracking The Company provides services to issue and track certificates of insurance in the U.S. and Australian markets. Re |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share A reconciliation between basic and diluted earnings per share ("EPS") is as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands, except per share data) Net income attributable to Ebix, Inc. $ 308 $ 19,343 $ 7,381 $ 38,534 Basic weighted average shares outstanding 30,866 30,745 30,854 30,729 Dilutive effect of stock options and restricted stock awards 3 11 2 27 Diluted weighted average shares outstanding 30,869 30,756 30,856 30,756 Basic earnings per common share $ 0.01 $ 0.63 $ 0.24 $ 1.25 Diluted earnings per common share $ 0.01 $ 0.63 $ 0.24 $ 1.25 The number of potential issuable shares with respect to stock options, which could dilute EPS in the future but which were excluded from the diluted EPS calculation because presently their effect is anti-dilutive for the three and six month period ended June 30, 2023 were 180,000 and for the three and six month period ended June 30, 2022 were 138,000. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations As part of its comprehensive business growth and expansion strategy, the Company seeks to execute accretive business acquisitions that are, in most cases, complementary to Ebix's existing products and services. During the six months ending June 30, 2023, the Company completed no business acquisitions. During the twelve months ended December 31, 2022, the Company completed no business acquisitions. A significant component of the purchase price consideration for many of the Company's business acquisitions is a potential subsequent cash earn-out payment based on reaching certain specified future revenue targets. The terms for the contingent earn-out payments in most of the Company's business acquisitions typically address the GAAP recognizable revenues achieved by the acquired entity over a one-, two-, and/or three-year period subsequent to the effective date of their acquisition by Ebix. These terms typically establish a minimum threshold revenue target to achieve over the agreed upon period post acquisition to earn the specified cash earn out payment. The Company applies these terms in its calculation and determination of the fair value of contingent earn out liabilities for purchased businesses as part of the related valuation and purchase price allocation exercise for the corresponding acquired assets and liabilities. The Company recognizes these potential obligations as contingent liabilities and are reported as such on its condensed consolidated balance sheets. As discussed in more detail in Note 1, these contingent consideration liabilities are recorded at fair value on the acquisition date and are remeasured quarterly based on the then assessed fair value and adjusted if necessary. As of both June 30, 2023 and December 31, 2022, the total of these contingent consideration liabilities was $2.3 million. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company maintains a senior secured syndicated credit facility, dated August 5, 2014, among Ebix, Inc., as borrower, its subsidiaries party thereto from time to time as guarantors, Regions Bank (as administrative agent and collateral agent) and the lenders party thereto from time to time (as amended from time to time, the "Credit Facility") that provides a $450 million revolving line of credit (the "Revolver") as well as a term loan (the "Term Loan"), which at June 30, 2023 had a balance of $171.9 million. The Credit Facility was set to mature on February 2023; however, in May 2023, the company entered into Amendment No. 14 to its Credit Facility, which provides for, among other things, an extension of the maturity date from May 23, 2023 to September 30, 2023 ("Credit Facility Maturity Date"), as discussed in more details below. At June 30, 2023 the outstanding balance of the Credit Facility, $616.8 million, was classified as a current liability. The Company expects to address the Credit Facility maturity prior to the Credit Facility Maturity Date, and intends to do so in conjunction with the resolution of the anticipated IPO of EbixCash, as further described within Item 2 "Management's Discussion and Analysis of Financial Conditions and Results of Operations - Liquidity and Capital Resources" . The refinancing of the Credit Facility will require the Company to successfully access the debt and/or equity capital markets in the U.S. or internationally. However, there are no assurances that such financing will be available in amounts or on terms acceptable to us, if at all, or that the proceeds received by Ebix, Inc. from the IPO of EbixCash will be in the amount currently expected. Further, no assurances can be given when the IPO will be completed, if at all, or if it will be completed on terms acceptable to the Company. On July 21, 2023, the Company entered into an amendment No. 15 that specifically provided for, among other things, the deletion of the event of default deadline for the mandatory public opening of subscription to investors of the shares of the Company’s subsidiary EbixCash on the Indian stock market on or by prior to July 31, 2023. Also, Amendment 15 that changed the possible additional amendment fee (the “Amendment Fee”) that had been included as part of Amendment No. 14, as discussed below, from an amount equal to 1.50% of the aggregate principal amount of the outstanding term loan (the “Term Loan and the lenders’ commitments under the revolving line of credit (the “Revolver”), whether or not utilized, to 2%. The Amendment Fee will be waived if all of the Revolver has been terminated and the Term Loan and all other obligations due the lenders are fully repaid on or before August 31, 2023. On May 23, 2023, the company signed an amendment (“Amendment No. 14”) to its existing credit agreement, extending the maturity date to September 30, 2023. Amendment No. 14 provided for, among other things, an extension of the maturity date for both the Revolver and the term loan the Term Loan, each as existing under the Credit Agreement. It was conditioned, among other things, upon the Company (i) making a $5,000,000 payment of the Term Loan by June 30, 2023 and (ii) paying a customary consent fee which will be payable over time and partially waived if certain conditions are met. Amendment No. 14 also specifically provided for the application of a certain percentage of the proceeds from certain liquidity events towards payment of outstanding principal and interest obligations at that time. These events would have included the public listing of the shares of the Company’s subsidiary EbixCash on the Indian stock market by July 31, 2023, the proceeds from the issuance of any additional debt and/or securities if raised by the Company and the proceeds from the monetization of any asset sale, if carried out by the Company. Amendment No. 14 (i) increased the applicable margin for the facilities under the Credit Agreement to (x) 7.50% per annum for SOFR loans and letter of credit fees, (y) 6.50% per annum for base rate loans, and (ii) further increases the applicable margin for the facilities under the Credit Agreement on August 31, 2023 to (x) 8.00% per annum for SOFR loans and letter of credits fees, and (y) 7.00% per annum for base rate loans. Amendment 14 also included the Amendment Fee of 1.50%. On February 21, 2023, the company entered into Amendment No. 13 to its Credit Facility, which provides for, among other things, an extension of the maturity date from February 21, 2023 to May 23, 2023 ("Credit Facility Maturity Date"). Amendment No. 13 to the Credit Facility required the Company to make a $5 million prepayment of the Revolver on February, 21, 2023 and a $5 million amortization payment on the Term Loan on March 31, 2023. Any repayments under the Revolver will be accompanied by a corresponding reduction in the aggregate revolving commitments. Lastly, amendment No. 13 modified certain other provisions within the Credit Agreement and has resulted in an approximately 1% per annum interest rate increase beginning February 21, 2023. On April 9, 2021, The Company entered into Amendment No. 12 to its Credit Facility. Amendment No. 12 provided for, among other things, a waiver of any potential event of default arising under the Credit Facility from the failure to timely deliver the Company's audited financial consolidated financial statements and related compliance certificate for the year ended December 31, 2020, provided that there is no good faith determination by the requisite lenders under the Credit Facility of a "Material Circumstance" (as defined and further described in Amendment No. 12), which determination (if any) may only be made within a specified period described in Amendment No. 12 and is subject to certain cure rights of the Company. Amendment No. 12 also modified the applicable margin that applies from the date of the amendment forward, modified certain mandatory prepayment provisions, as well as certain other covenants related to restricted payments, investments and certain reporting requirements. On March 31, 2021, Ebix entered into Amendment No. 11 to the Credit Facility. Amendment No. 11 provided, for, among other things, a limited waiver through April 10, 2021, of any potential event of default arising under the Credit Facility from failure to deliver the Company's audited consolidated financial statements and related compliance certificate for the year ended December 31, 2020. Amendment No. 11 also modified certain covenants contained in the Credit Facility, including with respect to certain permitted restricted payments and investments. As of June 30, 2023, the Company's condensed consolidated balance sheets include $2.3 million of remaining deferred financing costs in connection with the Credit Facility, which are being amortized as a component of interest expense through the Credit Facility Maturity Date. $1.4 million of such deferred financing costs pertain to the Revolver, and $0.9 million pertains to the Term Loan, which is netted against the current portion of the Term Loan as reported on the condensed consolidated balance sheets. At December 31, 2022, the Company's Consolidated Balance Sheets included $1.2 million of remaining deferred financing costs in connection with the Credit Facility, with $0.7 million pertaining to the Revolver, and $0.5 million pertaining to the Term Loan, of which $0.5 million was netted against the current portion of the Term Loan. As of June 30, 2023, the outstanding balance on the Revolver was $444.9 million and the Revolver carried an interest rate of 11.95% at June 30, 2023. The balance on the Revolver is included in the current liabilities section of the condensed consolidated balance sheets. During the six months ended June 30, 2023, the average and maximum outstanding balances of the revolving line of credit component of the Credit Facility were both $444.9 million. At December 31, 2022, the outstanding balance on the Revolver was $449.9 million and the Revolver carried an interest rate of 9.69%. As of June 30, 2023, the outstanding balance on the Term Loan was $171.9 million, of which $171.9 million is due within the next twelve months. $17.5 million of principal payments were made during the six months ended June 30, 2023, of which $0.0 million were scheduled amortization payments. This Term Loan also carried an interest rate of 11.95% at June 30, 2023. The Term Loan is included in the current liabilities section of the condensed consolidated balance sheets at June 30, 2023. At December 31, 2022, the outstanding balance on the Term Loan was $189.4 million, of which $189.4 million was due within twelve months. The Term Loan also carried an interest rate of 9.69% at December 31, 2022. The Company maintains working capital debt facilities with banks in international markets for working capital funding requirements to support our foreign exchange and payment remittance businesses. We are required to extend short term credits to franchisee networks (B2B) and corporate customers. Additionally we are required to maintain minimum levels of foreign currency inventory across branches and airport operations. Typically, these facilities carry interest rates of 9.00% to 10%, are rupee-denominated working capital lines, and are collateralized against the receivables of these businesses and existing foreign currency inventory on hand. As of June 30, 2023 and December 31, 2022, the total of these working capital facilities was $5.0 million and $3.4 million, respectively, and is included in current liabilities in the Company's condensed consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On February 22, 2021, Christine Marie Teifke, a purported purchaser of Ebix securities, filed a putative class action in the United States District Court for the Southern District of New York, captioned Teifke v. Ebix, Inc., et. al., Case No. 1:21-cv-01589-JMF, on behalf of herself and others who purchased or acquired Ebix securities between November 9, 2020 and February 19, 2021. The complaint asserts claims against the Company, Robin Raina, and Steven M. Hamil (“Defendants”), for purported violations of Section 10(b) of the Securities Exchange Act of 1934, alleging that Ebix made false and misleading statements and failed to disclose material adverse facts about an audit of the company's gift card business in India and its internal controls over the gift and prepaid card revenue transaction cycle. The complaint alleges that Ebix's stock price fell as a result of the revelation that Ebix's independent auditor, RSM US LLP (“RSM”), had resigned, citing concerns with the company's internal controls and disagreements over other accounting issues. The complaint also asserts a claim against Robin Raina and Steven M. Hamil for purported violations of Section 20(a) of the Exchange Act arising out of the same facts. The complaint seeks, among other relief, damages and attorneys' fees and costs. On May 11, 2021, the court issued an order appointing Rahul Saraf, another purported purchaser of Ebix, Inc. securities, as lead plaintiff in the action, and the caption in the action was changed to Saraf v. Ebix, Inc., et. al., Case No. 1:21-cv-01589-JMF (the "Class Action"). On July 17, 2023, the Court dismissed the Class Action in its entirety with prejudice for failure to state a claim. On May 14, 2021, Javier Calvo, a purported shareholder of the Company, filed a derivative action in the United States District Court for the Southern District of New York on behalf of Ebix captioned Calvo v. Raina, et. al., Case No. 21-cv-4380-JMF (the "Calvo Action"), against individual defendants Robin Raina, Steven M Hamil, Hans U. Benz, Rolf Herter, Neil D. Eckert, Pavan Bhalla, Hans Ueli Keller, and George W. Hebard, and nominal defendant Ebix asserting claims related to the RSM resignation. On July 13, 2021, Peter Votto, another purported Ebix shareholder, filed an additional derivative action in the United States District Court for the Southern District of New York on behalf of Ebix, captioned Votto v. Raina, et. al., Case No. 21-cv-5982-JMF (the "Votto Action"), asserting claims against the same defendants as the Calvo Action. The complaint asserts claims relating to the RSM resignation against all of the individual defendants for breach of fiduciary duties, unjust enrichment, waste of corporate assets, and rescission under Section 29(b) of the Securities Exchange Act of 1934, and claims for contribution under Sections 10(b) and 21D of the Securities Exchange Act of 1934 against Robin Raina and Steven M Hamil. The Consolidated Derivative Action is currently stayed by agreement of the parties and order of the Court. On November 5, 2021, Daniel Lilienfeld, a purported shareholder of the Company, filed a derivative action in the United States District Court for the Northern District of Georgia on behalf of Ebix captioned Lilienfeld v. Raina, et. al., Case No. 1:21-cv-04590-ELR (the "Lilienfeld Action"), asserting claims against the same defendants as the Consolidated Derivative Action. The complaint similarly asserts a claim of breach of fiduciary duty related to the RSM resignation against all of the individual defendants. On July 26, 2023, Mr. Lilienfeld dismissed the Lilienfeld Action without prejudice. On December 29, 2021, Sunil Shah, a purported shareholder of the Company, filed a derivative action in the Superior Court of Fulton County of the State of Georgia on behalf of Ebix captioned Shah v. Raina, et. al., Civil Action File No. 2022-cv-358481 (the "Shah Action") against the same defendants as the Consolidated Derivative Action and Lilienfeld Actions. The complaint similarly asserts a claim of breach of fiduciary duty related to the RSM resignation against all of the individual defendants. The Shah Action was stayed by agreement of the parties and order of the Court. On July 26, 2023, Mr. Shah dismissed the Shah Action without prejudice. The Company along with Ebix Singapore Pte. Ltd. (the “Ebix Group”) had purchased 80% Equity Shares of Ebix Payment Services Private Limited (“ItzCash”) with effect from April 1, 2017. During the Financial Year 2020, the erstwhile shareholders of ItzCash raised a dispute with the Ebix Group alleging breaches of the share purchase agreement and shareholders’ agreement entered into between the parties and demanding for termination of the shareholders’ agreement, payment of earn out consideration and buyout of minority shareholding. The matter is under arbitration in accordance with the rules of the Singapore International Arbitration Centre (“SIAC”). The arbitration proceedings have concluded, and the arbitral tribunal has passed a partial order dated June 1, 2023 (“Partial Award”) which inter alia states the following (i) the termination of the shareholders agreement executed amongst the Company, Ebix Singapore, Ebix World Money, Vyoman, Ashok Kumar Goel and Ebix Payment Services dated May 12, 2017 (“SHA”) by Vyoman and Mr. Goel was justified (ii) our Company and Ebix World Money (and failing performance, Ebix Singapore) are jointly and severally obliged to purchase the existing shareholding of Vyoman and Mr. Goel under the SHA at a price determined by an independent valuer, once such determination has been made in accordance with the relevant provisions of the SHA and (iii) Claimants were not entitled to specific performance to receive payment of the first and second earn-out thresholds under the aforementioned agreements; and (iv) our Company, Ebix Singapore, Ebix World Money and Ebix Payment Services were found in breach of certain clauses of the aforementioned agreements. Due to absence of explanation of how Claimants incurred or may have incurred losses pursuant to such breaches of the above mentioned agreements the Partial Award directed payment of nominal damages by the Respondents in an joint and several manner to the Claimants as follows: (i) SGD 200 each to Vyoman and Ashok Kumar Goel in respect to the breaches of the SHA and (ii) SGD 100 to each of the 17 other claimants in respect to breaches of the Promoter SPA, Employee SPA and Investor SPA. The Partial Award also states that the directions in relation to the arbitration costs will be dealt in the final award. The matter is currently pending. The Company is involved in various other claims and legal actions arising in the ordinary course of business, which in the opinion of management, the ultimate likely disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded a net income tax expense of $164 thousand and $787 thousand (12.74%) during the three and six months ended June 30, 2023, which included tax expense of $1.6 million and $1.8 million from certain discrete items related to stock compensation and uncertain tax positions. The income tax benefit, exclusive of discrete items, was $1.4 million and $971 thousand (15.67%) for the three and six months ended June 30, 2023. During the three and six months ended June 30, 2023 and June 30, 2022, there was an increase of $1.4 million and $146 thousand to this liability reserve, respectively. The Company expects its full year effective tax rate to be in the range of 8% to 10%. As of June 30, 2023 and December 31, 2022 a liability of $7.8 million and $6.4 million for uncertain tax positions is included in other long-term liabilities of the Company's condensed consolidated balance sheets. The Company recognizes interest accrued and penalties related to unrecognized tax benefits as part of income tax expense. |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The Company operates within one reportable segment in which the results are regularly reviewed by the Company's Chief Executive Officer, its chief operating decision maker, as to performance and allocation of resources. External customer revenues in the tables below are attributed to a particular country based on whether the customer had a direct contract with the Company which was executed in that particular country for the sale of the Company's products/services from an Ebix subsidiary located in that country. The following enterprise-wide information relates to the Company's geographic locations: Six Months Ended As of Six Months Ended As of June 30, 2023 June 30, 2023 June 30, 2022 December 31, 2022 External Revenues Long-lived assets External Revenues Long-lived assets (In thousands) North America 76,590 388,113 79,671 374,891 International 284,601 803,515 457,363 785,746 $ 361,191 $ 1,191,628 $ 537,034 $ 1,160,637 Enterprise-wide information relates to the Company's geographic locations on net basis for Comparative Purposes (Non GAAP) Six Months Ended As of Six Months Ended As of June 30, 2023 June 30, 2023 June 30, 2022 December 31, 2022 External Revenues Long-lived assets External Revenues Long-lived assets (In thousands) North America 76,590 388,113 79,671 374,891 International 157,913 803,515 134,773 785,746 $ 234,503 $ 1,191,628 $ 214,444 $ 1,160,637 |
Investment in Joint Ventures
Investment in Joint Ventures | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Joint Ventures | Investment in Joint Ventures Effective February 2016, Ebix and Vayam Technologies Ltd ("Vayam") formed a joint venture named Ebix Vayam Limited JV. This joint venture was established to carry out IT projects in the government sector of the country of India, particularly in regards to the implementation of e-governance projects in the areas of education and healthcare. Ebix has a 51% equity interest in the joint venture, and Vayam has a 49% equity interest in the joint venture. Ebix is fully consolidating the operations of Ebix Vayam Limited JV into the Company's financial statements and separately reporting the Vayam minority, non-controlling interest in the joint venture's net income and equity. Vayam is also a customer of Ebix Vayam Limited JV, and, during the three and six months ended June 30, 2023, Ebix Vayam Limited JV recognized $105 thousand and $206 thousand, respectively, of revenue from Vayam. During the three and six months ended June 30, 2022, Ebix Vayam Limited JV recognized $245 thousand and $521 thousand, respectively, of revenue from Vayam. As of June 30, 2023, Ebix Vayam Limited JV had $11.8 million of accounts receivable with Vayam, net of the estimated allowance for doubtful accounts receivable in the amount of $5.7 million. As of December 31, 2022, Ebix Vayam Limited JV had $11.6 million of accounts receivable with Vayam, net of the estimated allowance for doubtful accounts receivable in the amount of $5.7 million. Effective September 2015, Ebix and Independence Holding Company ("IHC") formed the joint venture EbixHealth JV. This joint venture was primarily established to promote and market an administrative data exchange for health insurance lines of business in the U.S. Ebix has a 51% equity interest in the joint venture and IHC has a 49% equity interest the joint venture. Ebix is fully consolidating the operations of EbixHealth JV into the Company's financial statements and separately reporting EbixHealth JV non-controlling interest in the joint venture's net income and equity. IHC is also a customer of EbixHealth JV, and, during the three and six months ended June 30, 2023, EbixHealth JV recognized $238 thousand and $491 thousand, respectively, of revenue from IHC. During the three and six months ended June 30, 2022, EbixHealth JV recognized $300 thousand and $614 thousand of revenue from IHC. As of June 30, 2023 and December 31, 2022, EbixHealth JV had $76 thousand and $74 thousand of accounts receivable from IHC, respectively. Furthermore, as a related party, IHC also has been and continues to be a customer of Ebix, and during the three and six months ended June 30, 2023 the Company recognized $26 thousand and $43 thousand, respectively, of revenue from IHC. During the three and six months ended June 30, 2022, the Company recognized $20 thousand and $40 thousand of revenue from IHC. As of June 30, 2023 and December 31, 2022, Ebix had $47 thousand and $44 thousand of accounts receivable with IHC. EbixHealth JV has a $1.8 million note due to IHC. The Company recorded $125 thousand in amortization expense related to the IHC customer relationship intangible during the six months ending June 30, 2023. |
Goodwill, Finite-Lived, and Ind
Goodwill, Finite-Lived, and Indefinite-Lived Intangibles | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Finite-Lived, and Indefinite-Lived Intangibles | Goodwill, Finite-Lived, and Indefinite-Lived Intangibles Changes in the carrying amount of goodwill for the six months ended June 30, 2023 and the year ended December 31, 2022 are reflected in the following table: June 30, 2023 December 31, 2022 (Unaudited) (In thousands) Beginning Balance $ 881,676 $ 939,249 Additions — — Purchase accounting adjustments — — Foreign currency translation adjustments $ 5,425 (57,573) Ending Balance $ 887,101 $ 881,676 The carrying value of finite-lived and indefinite-lived intangible assets at June 30, 2023 and December 31, 2022 are as follows: June 30, December 31, (Unaudited) (In thousands) Finite-lived intangible assets: Customer relationships $ 101,333 $ 101,401 Developed technology 37,139 34,427 Dealer network 6,067 5,877 Airport contracts 4,021 3,992 Trademarks 2,667 2,651 Store networks 2,169 2,153 Brand 797 791 Non-compete agreements 704 702 Database 212 212 Backlog 140 140 Total intangibles 155,249 152,346 Accumulated amortization (107,254) (101,446) Finite-lived intangibles, net $ 47,995 $ 50,900 Indefinite-lived intangibles: . Customer/territorial relationships 16,647 16,647 |
Capitalized Software Developmen
Capitalized Software Development Costs | 6 Months Ended |
Jun. 30, 2023 | |
Capitalized Software Development Costs Disclosure [Abstract] | |
Capitalized Software Development Costs | Capitalized Software Development Costs In accordance with ASC 350-40 “Internal-Use Software” and/or ASC 350-985 “Software”, the Company has capitalized certain software and product related development costs associated with the Company’s continuing medical education service offerings; development of the P&C underwriting insurance data exchange platform servicing the London markets; development of SaaS based Asset Management and Collection platforms having global application; development of single sign on agent and customer portal, including mobile application, and content development work related to the e-learning business. During the three and six months ended June 30, 2023, the Company capitalized $(0.4) million and $0.5 million, respectively. During the three and six months ended June 30, 2022, the Company capitalized $1.5 million and $4.2 million of such development costs. At June 30, 2023 and December 31, 2022, a total of $15.9 million and $15.3 million, respectively, of remaining unamortized development costs are reported on the Company’s condensed consolidated balance sheets. |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets at June 30, 2023 and December 31, 2022 consisted of the following: June 30, 2023 December 31, 2022 (Unaudited) (In thousands) Prepaid expenses $ 79,365 $ 71,449 Sales taxes receivable from customers 5,723 3,289 Other third party receivables 678 1,034 Credit card merchant account balance receivable 712 704 Short term portion of capitalized costs to obtain and fulfill contracts 474 486 Accrued interest receivable 598 651 Other 11,048 9,774 Total $ 98,598 $ 87,387 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and finance leases for office space, retail, data centers, and certain office equipment with expiration dates ranging through 2028 with various renewal options. Only renewal options that were reasonably assured to be exercised are included in the lease liability. At June 30, 2023, the maturity of lease liabilities under Topic 842 " Leases " are as follows: Year Operating Leases Financing Leases Total (in thousands) 2023 1,958 71 2,029 2024 2,979 133 3,112 2025 2,221 19 2,240 2026 1,394 1,394 2027 637 — 637 Thereafter 1,141 — 1,141 Total 10,330 223 10,553 Less: present value discount* (1,304) (9) (1,313) Present value of lease liabilities 9,026 214 9,240 Less: current portion of lease liabilities (3,024) (3,024) Total long-term lease liabilities $ 6,002 $ 214 $ 6,216 * The discount rate used was the incremental borrowing rates respective to the country where the assets are located. The Company's net assets recorded under operating and finance leases were $8.7 million and $9.6 million as of June 30, 2023, and December 31, 2022, respectively. The lease cost is recognized in our condensed consolidated statements of income in the category of general and administrative and is summarized as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Operating Lease Cost $ 1,063 $ 989 $ 2,129 $ 1,980 Finance Lease Cost: Amortization of Lease Assets 34 46 74 94 Interest on Lease Liabilities 3 6 7 13 Finance Lease Cost 37 52 81 107 Sublease Income — (23) (24) (46) Total Net Lease Cost $ 1,100 $ 1,018 $ 2,186 $ 2,041 Other information about lease amounts recognized in our condensed consolidated statement of income is summarized as follows: June 30, 2023 Weighted Average Lease Term - Operating Leases 1.62 years Weighted Average Lease Term - Finance Leases 3.89 years Weighted Average Discount Rate - Operating Leases 5.4 % Weighted Average Discount Rate - Finance Leases 8.2 % At June 30, 2023, our lease liability of $9.2 million does not include certain arrangements, which are primarily airport leases that do not meet the definition of a lease under Topic 842. Such arrangements represent further commitments of approximately $8.9 million as follows: Year Commitments (in thousands) 2023 (Remaining six months) $ 5,208 2024 3,214 Thereafter $ 516 Total $ 8,938 three |
Leases | Leases The Company has operating and finance leases for office space, retail, data centers, and certain office equipment with expiration dates ranging through 2028 with various renewal options. Only renewal options that were reasonably assured to be exercised are included in the lease liability. At June 30, 2023, the maturity of lease liabilities under Topic 842 " Leases " are as follows: Year Operating Leases Financing Leases Total (in thousands) 2023 1,958 71 2,029 2024 2,979 133 3,112 2025 2,221 19 2,240 2026 1,394 1,394 2027 637 — 637 Thereafter 1,141 — 1,141 Total 10,330 223 10,553 Less: present value discount* (1,304) (9) (1,313) Present value of lease liabilities 9,026 214 9,240 Less: current portion of lease liabilities (3,024) (3,024) Total long-term lease liabilities $ 6,002 $ 214 $ 6,216 * The discount rate used was the incremental borrowing rates respective to the country where the assets are located. The Company's net assets recorded under operating and finance leases were $8.7 million and $9.6 million as of June 30, 2023, and December 31, 2022, respectively. The lease cost is recognized in our condensed consolidated statements of income in the category of general and administrative and is summarized as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Operating Lease Cost $ 1,063 $ 989 $ 2,129 $ 1,980 Finance Lease Cost: Amortization of Lease Assets 34 46 74 94 Interest on Lease Liabilities 3 6 7 13 Finance Lease Cost 37 52 81 107 Sublease Income — (23) (24) (46) Total Net Lease Cost $ 1,100 $ 1,018 $ 2,186 $ 2,041 Other information about lease amounts recognized in our condensed consolidated statement of income is summarized as follows: June 30, 2023 Weighted Average Lease Term - Operating Leases 1.62 years Weighted Average Lease Term - Finance Leases 3.89 years Weighted Average Discount Rate - Operating Leases 5.4 % Weighted Average Discount Rate - Finance Leases 8.2 % At June 30, 2023, our lease liability of $9.2 million does not include certain arrangements, which are primarily airport leases that do not meet the definition of a lease under Topic 842. Such arrangements represent further commitments of approximately $8.9 million as follows: Year Commitments (in thousands) 2023 (Remaining six months) $ 5,208 2024 3,214 Thereafter $ 516 Total $ 8,938 three |
Concentrations of Credit Risk
Concentrations of Credit Risk | 6 Months Ended |
Jun. 30, 2023 | |
Concentrations of Credit Risk [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit Risk T |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities at June 30, 2023 and December 31, 2022 consisted of the following: June 30, 2023 December 31, 2022 (Unaudited) (In thousands) Customer advances (deposits) $ 24,023 $ 23,630 Acquisition obligations (upfront purchase and contingent consideration) 1,606 2,153 Total $ 25,629 $ 25,783 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsNone. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The accompanying unaudited condensed consolidated financial statements and these notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the effect of inter-company balances and transactions eliminated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP and SEC rules have been condensed or omitted as permitted by and pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements contain adjustments (consisting only of normal recurring items) necessary to fairly present the consolidated financial position of the Company and its consolidated results of operations and cash flows. Operating results for the three and six months ended June 30, 2023 and 2022 are not necessarily indicative of the results that may be expected for future quarters or the full year of 2023. The condensed consolidated December 31, 2022 balance sheet included in this interim period filing has been derived from the audited financial statements at that date, but does not necessarily include all of the information and related notes required by GAAP for complete financial statements. These condensed interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Use of Estimates | Use of Estimates — The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and reported amounts of revenue and expenses during those reporting periods. Management has made material estimates primarily with respect to revenue recognition and contract liabilities, accounts receivable, acquired intangible assets, annual impairment reviews of goodwill and indefinite-lived intangible assets, contingent earn out liabilities in connection with business acquisitions, and the provision for income taxes. Actual results may be different from those estimates. |
Reclassification | Reclassification — Certain prior year amounts have been reclassified to be consistent with current year presentation within our financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents — The Company considers all highly liquid investments with original maturity of three months or less at the time of purchase to be cash equivalents. Such investments are stated at cost, which approximates fair value. The Company does maintain cash balances in banking institutions in excess of federally insured amounts and therefore is exposed to the related potential credit risk associated with such cash deposits. |
Short-Term Investments | Short-Term Investments — The Company's primary short-term investments consist of certificates of deposit with established commercial banking institutions in international markets that have readily determinable fair values. Ebix accounts for such investments that are reasonably expected to be realized in cash, sold, or consumed during the year as short-term investments that are available-for-sale. The carrying amount of investments in marketable securities approximates their fair value. |
Restricted Cash | Restricted Cash — The carrying value of our restricted cash in current assets was $8.3 million and $8.2 million at June 30, 2023 and December 31, 2022, respectively. The June 30, 2023 balance consists of fixed deposits (many in the form of certificates of deposit) pledged with banks for issuance of bank guarantees and letters of credit related to our international operations for our working capital facilities. |
Fiduciary Funds-Restricted | Fiduciary Funds - Restricted — Due to EbixHealth JV being a third party administrator ("TPA"), the Company collects premiums from insureds and, after deducting its fees, remits these premiums to insurance companies. Unremitted insurance premiums and/or claim funds established for the benefit for various carriers are held in a fiduciary capacity until disbursed by the Company. The use of premiums collected from insureds but not yet remitted to insurance companies is restricted by law in certain states. The total assets held on behalf of others, $1.7 million and $2.1 million at June 30, 2023 and December 31, 2022, respectively, are recorded as an asset and offsetting fiduciary funds - restricted liability. |
Advertising | Advertising — Advertising costs amounted to $1.8 million and $3.1 million for the three and six month period ended June 30, 2023, respectively, and $2.4 million and $4.3 million for the three and six month period ended June 30, 2022, respectively. The costs are included in sales and marketing expenses in the accompanying condensed consolidated statements of income. The Company expenses advertising costs as incurred. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The Company follows the relevant GAAP guidance regarding the determination and measurement of the fair value of assets/liabilities in which fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction valuation hierarchy, which requires and entity to maximize the use of observable inputs when measuring fair value. This guidance establishes a three-level hierarchy for disclosure of assets and liabilities recorded at fair value. The hierarchy reflects the degree to which objective data from external active markets are available to measure fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. The classifications are as follows: • Level 1 Inputs - Unadjusted quoted prices available in active markets for identical investments to the reporting entity at the measurement date. • Level 2 Inputs - Other than quoted prices included in Level 1 inputs, which are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs - Unobservable inputs, which are used to the extent that observable inputs are not available, and used in situations where there is little or no market activity for the asset or liability and wherein the reporting entity makes estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As of June 30, 2023, the Company had the following financial instruments to which it had to consider both fair values and make fair value assessments: • Short-term investments (commercial bank certificates of deposits and mutual funds), for which the fair values are measured as a Level 1 instrument for mutual funds and a Level 2 instrument for certificates of deposit. • Contingent accrued earn-out business acquisition consideration liabilities, for which fair values are measured as Level 3 instruments. These contingent consideration liabilities were recorded at fair value on the acquisition date and are re-measured quarterly based on the then assessed fair value and adjusted if necessary. The increases or decreases in the fair value of contingent consideration can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measure is based on significant inputs that are not observable in the market, they are categorized as Level 3. Other financial instruments not measured at fair value on the Company's unaudited Condensed Consolidated Balance Sheet at June 30, 2023 that require disclosure of fair values include: cash and cash equivalents, restricted cash, fiduciary funds, accounts receivable, receivables from service providers, accounts payable and accrued expenses, accrued payroll and related benefits, payables to service agents, finance lease obligations, working capital facilities, the revolving line of credit, and term loan debt. The Company believes that the estimated fair value of such instruments at June 30, 2023 and December 31, 2022 approximates their carrying value as reported on the Company's condensed consolidated balance sheets. |
Revenue Recognition and Contract Liabilities, EbixCash Exchanges, Insurance Exchanges, and Risk Compliance Solutions | Revenue Recognition and Contract Liabilities — The Company derives its revenues primarily from software subscription and transaction fees, software license fees, financial transaction fees, risk compliance solution services fees, and professional service fees, including associated fees for consulting, implementation, training, and project management provided to customers with installed systems and applications. Sales and value-added taxes are not included in revenues, but rather are recorded as a liability until the taxes assessed are remitted to the respective taxing authorities. The Company determines revenue recognition by applying the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, we satisfy a performance obligation. The Company analyzes its different services individually to determine the appropriate basis for revenue recognition, as further described below. Additionally, certain services exist in multiple channels. As Ebix derives revenues from two product/service channels, Exchanges - EbixCash and Insurance, and Risk Compliance Solutions, for policy disclosure purposes, contracts are discussed in conjunction with the channel to which they are most significant. The Company assesses the terms of customer contracts, including termination rights, penalties (implied or explicit), and renewal rights. EbixCash Exchanges EbixCash revenues are primarily derived from the sales of prepaid gift cards and consideration paid by customers for financial transaction services, including services for transferring or exchanging money. The significant majority of EbixCash revenue is for a single performance obligation and is recognized at a point in time. These revenues vary by transaction based upon channel, send and receive locations, the principal amount sent, whether the money transfer involves different send and receive currencies, and speed of service, as applicable. Gift Cards EbixCash sells general purpose prepaid gift cards to corporate customers and consumers that can be later redeemed at various merchants. The gift cards are co-branded between EbixCash and its card-issuing banking partners and are affiliated with major payment associations such as VISA, MasterCard, and Rupay. The gift cards are sold to a diversified set of corporate customers from various industries. The gift cards are used by corporate customers to disburse incentives to the end users, which are primarily their employees, agents, and business associates. The gift cards sold by EbixCash are not reloadable, cannot be used at ATMs or for any other cash-out or funds transfer transactions, and are subject to maximum limits per card (currently INR10,000 or approximately $122). Gift cards issued by EbixCash are valid for a period of fifteen months from the date of issuance for virtual cards and three years for physical cards. EbixCash has entered into arrangements with banks and financial institutions to settle payments to merchants based on utilization of the gift cards. Company Subsidiary Ebix Payment Services Private Limited received ‘a letter of displeasure’ from Reserve Bank of India (‘RBI’) dated March 21, 2023 (‘RBI Letter’), regarding certain of its co-branding arrangements in which RBI observed that the role of Ebix Payment Services as the non-bank entity exceeded the activities permitted under the Master Directions on Issuance and Operation of Prepaid Payment Instruments dated October 11, 2017 and Master Directions on Prepaid Payment Instruments dated August 27, 2021 (collectively, “MD-PPI”). Further, a circular dated April 19, 2023 was also issued by RBI to all approved/authorized PPI Issuers, according to which, RBI noted that as per the contractual arrangements between the banks (‘PPI Issuer’) and non-bank entities, the non-bank entities is inter-alia responsible for funds management, handling of KYC processes, transaction settlement, risk management, liabilities arising out of fraudulent transaction, all types of cards liabilities from customer and corporate’s points of view, etc, which exceeds the activities permitted under the MD-PPI applicable for aforementioned co-branding arrangements. As per the MD-PPI, the role of Ebix Payment Services Private Limited is to be limited to only marketing / distribution of the prepaid payment instruments or providing access to the prepaid payment instrument holders to services that are offered. Therefore, Ebix Payment Services Private Limited has been asked by RBI to suitably amend the co-branding arrangements/ agreements with the banks within one month of the aforesaid communications and strictly comply with the provisions of MD-PPI. Based on its assessment of the RBI letter, Company management is of the view that there will be no material financial impact of the modifications proposed by the RBI on the financial statements for the year ended December 31, 2022. Consequent to prospective amendments made/proposed to the co-branding arrangements with banks subsequent to year end, the Ebix Payment Services Private Limited would cease to be a principal under the amended arrangements and would act as an agent for the Banks /PPI Issuers. As a result, the revenue to be recognized for services provided by the EbixCash group post such amendments to the agreements would be recognized on net basis in the financial statements. Further, adjustments arising on recognition of revenue on net basis has been considered while presenting consolidated financial information. There is no impact on profits earned EbixCash Travel Exchanges EbixCash Travel revenues are primarily derived from commissions and transaction fees received from various travel providers and international exchanges involved in the sale of travel to the consumer. EbixCash Travel revenue is for a single performance obligation and is recognized at a point in time. Travel revenues include: (i) reservation commissions, segment fees from global travel exchange providers, and transaction net revenues (i.e., the amount charged to travelers less the amount owed to travel service providers) in connection with our reservation services; (ii) ancillary fees, including travel insurance-related revenues and certain reservation booking fees; and (iii) credit card processing rebates and customer processing fees. EbixCash Travel services include the sale of hotel rooms, airline tickets, bus tickets, and train tickets. EbixCash Travel revenue is also derived from ticket sales, wherein the commissions payable to EbixCash Travel, along with any transaction fees paid by travel providers and travel exchanges, is recognized as revenue after completion of the service. The transaction price on such services is agreed upon at the time of the purchase. EbixCash Travel revenue for the corporate meetings, incentives, conferences, and exhibitions ("MICE") packages is recognized at full purchase value at the completion of the obligation, with the corresponding costs recorded under cost of services provided. For MICE revenues, EbixCash Travel acts as the principal in transactions and, accordingly, reports revenue on a gross basis. EbixCash Travel controls the service at all times prior to transfer to the customer, is responsible for fulfilling the customer contracts, has the risk of loss, and has the ability to establish transaction prices. EbixCash Money Transfer For the EbixCash money transfer business, EbixCash has one performance obligation whereupon the customer engages EbixCash to perform one integrated service. This typically occurs instantaneously when the beneficiary entitled to receive the money transferred by the sender visits the EbixCash outlet and collects the money. Accordingly, EbixCash recognizes revenue upon completion of the following: (i) the customer’s acknowledgment of EbixCash’s terms and conditions and the receipt of payment information; (ii) the money transfer has been processed; (iii) the customer has received a unique transaction identification number; and (iv) funds are available to be picked up by the beneficiary. The transaction price is comprised of a transaction fee and the difference between the exchange rate set by EbixCash to the customer and the rate available in the wholesale foreign exchange market, as applicable, both of which are readily determinable at the time the transaction is initiated. Foreign Exchange and Outward Remittance Services For EbixCash’s foreign exchange and payment services, customers agree to terms and conditions for all transactions, either at the time of initiating a transaction or signing a contract with EbixCash to provide payment services on the customer’s behalf. In the majority of EbixCash’s foreign exchange and payment services transactions, EbixCash makes payments to the recipient to satisfy its performance obligation to the customer, and, therefore, EbixCash recognizes revenue on foreign exchange and payment when this performance obligation has been fulfilled. Consumer Payment Services EbixCash offers several different bill payment services that vary by considerations, including among other factors: (i) who pays the fee to EbixCash (consumer or biller); (ii) whether the service is offered to all consumers; (iii) whether the service is restricted to existing biller relationships of EbixCash; and (iv) whether the service utilizes a physical agent network offered for consumers’ convenience. The determination of which party is EbixCash’s customer for revenue recognition purposes is based on these considerations for each of EbixCash’s bill payment services. For all transactions EbixCash’s customers agree to EbixCash’s terms and conditions, either at the time of initiating a transaction (where the consumer is determined to be the customer for revenue recognition purposes) or upon signing a contract with EbixCash to provide services on the biller’s behalf (where the biller is determined to be the customer for revenue recognition purposes). As with consumer money transfers, customers engage EbixCash to perform one integrated service - collecting money from the consumer and processing the bill payment transaction. This service provides the billers real-time or near real-time information regarding their customers’ payments and simplifies the billers’ collection efforts. The transaction price on bill payment services is contractual and determinable. Certain biller agreements may include per-transaction or fixed periodic rebates, which EbixCash records as a reduction to revenue. EbixCash Technology Services EbixCash also offers on-demand technology to various providers in the area of lending, wealth and asset management, and travel across the world. Additionally, EbixCash provides IT and call center outsourcing services to companies in a variety of industries, both in India and globally. The EbixCash technology software solutions are generally delivered on a SaaS subscription and/or transaction based pricing model. Please see below under "Insurance Exchanges" a description of revenue recognition policies for SaaS, Subscription, and Transaction Fees, which are similar to how EbixCash technology software solutions revenues are recognized. For IT and call center outsourcing services provided by EbixCash businesses, revenues are generally recognized on a time and materials or fixed fee basis. Revenues for time and materials are recognized as such services are rendered, while fixed fee revenues are recognized based on the input method driven by the expected hours to complete the project measured against the actual hours completed to date. Insurance Exchanges Insurance Exchanges revenues are primarily derived from consideration paid by customers related to our SaaS platforms, related services, and the licensing of software. A typical contract for our SaaS platform will also include services for setup, customization, transaction processing, maintenance, and/or hosting. Determining whether products and services are considered distinct performance obligations that should be accounted for separately may require significant judgment. Set-up and customization services related to our SaaS platforms are not considered to be distinct from the usage fees associated with the SaaS platform and, accordingly, are accounted for as a single performance obligation. These services, along with the usage or transaction fees, are recognized over the contract duration, which considers the significance of the upfront fees in the context of the contract and which may, therefore, exceed the initial contracted term. A customer's transaction volume tends to remain fairly consistent during the contract period without significant fluctuations. The invoiced amount is a reasonable approximation of the revenue that would be allocated to the related period under the variable consideration guidelines in ASC 606-10-32-40. To the extent that a SaaS contract includes subscription services or professional services, apart from the upfront customization, these are considered separate performance obligations. The Company also has separate software licensing (on premise/perpetual), unrelated to the SaaS platforms, which is recognized at a point in time when the license is transferred to the customer. Contracts generally do not contain a right of return or refund provisions. Our contracts often contain overage fees, contingent fees, or service level penalties which are accounted for as variable consideration. Revenue accounted for as variable consideration is immaterial and is recognized using the “right to invoice” practical expedient when the invoiced amount equals the value provided to the customer. Software-as-a-Service The Company allocates the transaction price to each distinct performance obligation using the relative stand-alone selling price. Determining the stand-alone selling price may require significant judgment. The stand-alone selling price is the price at which an entity has sold or would sell a promised good or service separately to a customer. The Company determines the stand-alone selling price based on observable price of products or services sold separately in comparable circumstances, when such observable prices are available. When standalone selling price is not directly observable, the Company estimates the stand-alone selling price using the market assessment approach by considering historical pricing and other market factors. Software Licenses Software license revenues attributable to a software license that is a separate performance obligation are recognized at the point in time that the customer obtains control of the license. Subscription Services Subscription services revenues are associated with performance obligations that are satisfied over specific time periods and primarily consist of post-contract support services. Revenue is generally recognized ratably over the contract term. Our subscription contracts are generally for an initial three-year period with subsequent one-year automatic renewals. Transaction Fees Transaction revenue is comprised of fees applied to the volume of transactions that are processed through our SaaS platforms. These fees are typically based on a per-transaction rate and are invoiced for the same period in which the transactions were processed and as the performance obligation is satisfied. The amount invoiced generally equals the value provided to the customer, and revenue is typically recognized when invoiced using the as-invoiced practical expedient. Professional Services Professional service revenue primarily consists of fees for setup, customization, training, or consulting services. Professional service fees are generally on a time and materials basis or a fixed fee basis. Revenues for time and materials are recognized as such services are rendered, while fixed fee revenues are recognized based on the input method that is driven by the expected hours to complete the project measured against the actual hours completed to date. Professional services, particularly related to SaaS platforms, may have significant dependencies on the related licensed software and may not be considered a distinct performance obligation. Risk Compliance Solutions ("RCS") RCS revenues consist of two revenue streams - certificates of insurance ("COI") and consulting services. COI revenues are derived from consideration paid by customers for the creation and tracking of certificates of insurance. These revenues are transaction-based. Consulting services revenues are driven by distinct consulting service engagements rendered to customers, for which revenues are recognized using the output method on a time and material basis as the services are performed. COI Creation and Tracking The Company provides services to issue and track certificates of insurance in the U.S. and Australian markets. Revenue is derived from transaction fees for each certificate issued or tracked. The Company recognizes revenue at the issuance of each certificate or over the period the certificate is being tracked. Consulting Services The Company provides consulting services to clients around the world for project management and development. Consulting services fees are generally earned on a time and materials basis or a fixed fee basis. Revenues for time and materials are recognized using an output method as the services are rendered, while fixed fee revenues are recognized based on the input method that is driven by the expected hours to complete the project measured against the actual hours completed to date. Contract Liabilities Contract liabilities include payments or billings that have been received or made prior to performance. In certain cases, cash collections pertain to maintenance and support fees, initial setup or registration fees under hosting agreements, software license fees received in advance of delivery and acceptance, and software development fees paid in advance of completion and delivery. Approximately $9.4 million and $8.0 million of contract liabilities were included in billed accounts receivable as of June 30, 2023 and December 31, 2022, respectively. |
Accounts Receivable and the Allowance for Doubtful Accounts Receivable | The Company records a contract asset when revenue recognized on a contract exceeds the billings. The contract asset is transferred to receivables when the entitlement to payment becomes unconditional. These contract assets are primarily related to project-based revenue where we recognize revenue using the input method calculated using expected hours to complete the project measured against the actual hours completed to date. |
Accounts Receivable and the Allowance for Doubtful Accounts Receivable | Management specifically analyzes accounts receivable, historical bad debts, write-offs, customer concentrations, customer credit-worthiness, current economic trends, and changes in our customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. |
Capitalized Software Development Costs | Capitalized Software Development Costs — In accordance with ASC 350-40 "Internal-Use Software" and ASC 350-985 "Software" the Company expenses costs as they are incurred until technological feasibility has been established, at and after which time those costs are capitalized until the product is available for general release to customers. Costs incurred to |
Costs of Services Provided | Cost of Services Provided — Cost of services provided consist of data processing costs, customer support costs (including personnel costs to maintain our proprietary databases), costs to provide customer call center support, hardware and software expense associated with transaction processing systems and exchanges, telecommunication and computer network expense, and occupancy costs associated with facilities where these functions are performed. Cost of services provided also includes the direct expenses associated with our services businesses, including the cost of prepaid gift cards, the cost of travel services provided and the cost of foreign exchange and remittance transactions. Depreciation expense is not included in cost of services provided. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets — Goodwill represents the cost in excess of the fair value of the identifiable net assets from the businesses that we acquire. In accordance with ASC 350, “ Goodwill and Other Intangible Assets " and ASU No. 2011-08, “ Testing Goodwill for Impairment ”, goodwill is tested for impairment at the reporting unit level on an annual basis or on an interim basis if an event occurred or circumstances change that would indicate that fair value of our reporting unit decreased below its carrying value. Potential impairment indicators include a significant change in the business climate, legal factors, operating performance indicators, competition, customer retention, and the sale or disposition of a significant portion of the business. The Company applies the accounting guidance concerning goodwill impairment evaluation, whereby the Company first assesses certain qualitative factors to determine whether the existence of events or circumstances would indicate that it is more likely than not that the fair value of a reporting unit was less than its carrying amount. If after assessing the totality of events and circumstances, we were to determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we would perform quantitative impairment testing. We perform our annual goodwill impairment evaluation and testing as of October 1st of each year or, when events or circumstances dictate, more frequently. No goodwill impairments occurred or were recognized in the year ended December 31, 2022 or in the six months ended June 30, 2023. The Company considered the guidance within ASC 350 “ Goodwill and Other Intangible Assets ” and ASC 280 “ Segment Reporting ” in concluding that Ebix effectively operates as one operating and reportable segment and one reporting unit. |
Finite-lived Intangible Assets | Finite-lived Intangible Assets — Purchased intangible assets represent the estimated acquisition date fair value of customer relationships, developed technology, trademarks, non-compete agreements, and other intangibles described below obtained in connection with the businesses we acquire. We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows: Category Life (yrs) Airport contracts 4 - 20 Brand 3 - 15 Customer relationships 9 Database 5 Dealer networks 15 - 20 Developed technology 3 - 15 Non-compete agreements 3 - 15 Store networks 5 - 7 Trademarks 10 |
Foreign Currency Translation | Foreign Currency Translation — The functional currency is the U.S. Dollar for the Company's foreign subsidiaries in Dubai and Singapore. During the three months ended June 30, 2023, the net change in the cumulative foreign currency translation account, which is a component of accumulated other comprehensive loss within stockholders’ equity, was an unrealized gain of $2.4 million, which was primarily caused by the weakening of the international currencies. The functional currency of the Company's other foreign subsidiaries is the local currency of the country in which the subsidiary operates. The assets and liabilities of these foreign subsidiaries are translated into U.S. dollars at the rates of exchange at the balance sheet dates. Income and expense accounts are translated at the average exchange rates in effect during the period. Gains and losses resulting from translation adjustments are included as a component of accumulated other comprehensive income in the accompanying condensed consolidated balance sheets, and are included in the condensed consolidated statements of comprehensive income. Foreign exchange transaction gains and losses that are derived from transactions denominated in a currency other than the subsidiary's functional currency are included in the determination of net income. |
Income Taxes | Income Taxes — Deferred income taxes are recorded to reflect the estimated future tax effects of differences between the financial statement and tax basis of assets, liabilities, operating losses, and tax credit carry forwards using the tax rates expected to be in effect when the temporary differences reverse. Valuation allowances, if any, are recorded to reduce deferred tax assets to the amount management considers more likely than not to be realized. Such valuation allowances are recorded for the portion of the deferred tax assets that are not expected to be realized based on the levels of historical taxable income and projections for future taxable income over the periods in which the temporary differences will be deductible. The Company applies the relevant Financial Accounting Standards Board ("FASB") accounting guidance on accounting for uncertainty in income taxes positions. This guidance clarifies the accounting for uncertainty in income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. In this regard we recognize the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. |
Recent Relevant Accounting Pronouncements | Recent Relevant Accounting Pronouncements — Since December 31, 2022 t here have not been any new released accounting pronouncements that are material to our unaudited condensed consolidated financial statements, or are expected to have a material impact on our business. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows: As of June 30, 2023 2022 (In thousands) Cash and cash equivalents $ 62,165 $ 67,511 Restricted cash 8,282 9,415 Restricted cash included in other long-term assets $ 5,952 $ 6,409 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 76,399 $ 83,335 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Additional information regarding the Company's assets and liabilities that are measured at fair value on a recurring basis is presented in the following tables: Fair Values at Reporting Date Using* Descriptions Balance, June 30, 2023 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) Assets Commercial bank certificates of deposits ($10.2 million is recorded in the long term asset section of the condensed consolidated balance sheets in "Other assets") $ 32,730 $ — $ 32,730 $ — Mutual funds (recorded in 106 106 — — Total assets measured at fair value $ 32,836 $ 106 $ 32,730 $ — Liabilities Contingent accrued earn-out acquisition consideration (a) $ 2,315 $ — $ — $ 2,315 Total liabilities measured at fair value $ 2,315 $ — $ — $ 2,315 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected revenues and cash flows, rate of return, and probability assessments. * During the six months ended June 30, 2023, there were no transfers between fair value Levels 1, 2, or 3. Fair Values at Reporting Date Using* Descriptions Balance, December 31, 2022 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) Assets Commercial bank certificates of deposits ($6.4 million is recorded in the long term asset section of the condensed consolidated balance sheets in "Other assets") $ 37,434 $ — $ 37,434 $ — Mutual funds $ 98 $ 98 $ — $ — Total assets measured at fair value $ 37,532 $ 98 $ 37,434 $ — Liabilities Contingent accrued earn-out acquisition consideration (a) $ 2,299 $ — $ — $ 2,299 Total liabilities measured at fair value $ 2,299 $ — $ — $ 2,299 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected revenues and cash flows, rate of return, and probability assessments. * During the year ended December 31, 2021, there were no transfers between fair value Levels 1, 2, or 3. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the six months ended June 30, 2023 and during the year ended December 31, 2022 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Liability for Accrued Earn-out Acquisition Consideration June 30, 2023 December 31, 2022 (In thousands) Beginning balance $ 2,299 $ — Total remeasurement adjustments: Remeasurement against goodwill — 2,299 Foreign currency translation adjustments ** 16 — Acquisitions and settlements Business settlements — — Ending balance $ 2,315 $ 2,299 The amount of total (gains) losses for the period included in earnings or changes to net assets, attributable to changes in unrealized gains relating to assets or liabilities still held at period-end. $ — $ — ** recorded as a component of other comprehensive income within stockholders' equity |
Fair Value, Significant Unobservable Inputs Used in Measurement of Contingent Consideration Liabilities | The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows: (In thousands) Fair Value at June 30, 2023 Valuation Technique Significant Contingent acquisition consideration: $2,315 Discounted cash flow Projected revenue and (In thousands) Fair Value at December 31, 2022 Valuation Technique Significant Contingent acquisition consideration: $2,299 Discounted cash flow Projected revenue and |
Schedule of Disaggregation of Revenue | The following tables present revenue disaggregated by primary geographical regions and product/service channels for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, Revenue: 2023 2022 2023 2022 (In thousands) North America 37,720 39,645 76,590 79,671 International 80,710 213,061 284,601 457,363 $ 118,430 $ 250,781 $ 361,191 $ 537,034 Geographical regions on net basis for comparative purposes (Non GAAP) f or the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, Revenue: 2023 2022 2023 2022 (In thousands) North America 37,720 39,645 76,590 79,671 International 80,710 75,279 157,913 134,773 $ 118,430 $ 114,924 $ 234,503 $ 214,444 |
Schedule of Revenue by Product/Service Groups | Presented in the table below is the breakout of our revenue groups for each of those product/service channels for the three and six months ended June 30, 2023 and 2022. Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands) Exchanges 98,078 230,943 319,944 498,859 Risk Compliance Solutions 20,352 19,838 41,247 38,175 Totals $ 118,430 $ 250,781 $ 361,191 $ 537,034 Product/Services channels on net basis for Comparative purposes (Non GAAP) f or the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands) Exchanges 98,078 95,086 193,256 176,269 Risk Compliance Solutions 20,352 19,838 41,247 38,175 Totals $ 118,430 $ 114,924 $ 234,503 $ 214,444 |
Contract with Customer, Asset and Liability | June 30, 2023 December 31, 2022 (Unaudited) (In thousands) Balance, beginning of period $ 1,284 $ 1,822 Costs recognized from the beginning balance (265) (968) Additions, net of costs recognized 208 430 Balance, end of period $ 1,227 $ 1,284 June 30, 2023 December 31, 2022 (Unaudited) (In thousands) Balance, beginning of period $ 46,127 $ 41,357 Revenue recognized from beginning balance (26,392) (30,460) Additions, net of revenue recognized and currency translation 25,751 35,230 Balance, end of period $ 45,486 $ 46,127 |
Schedule of Finite-Lived Intangible Assets by Major Class, Estimated Useful Lives | We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows: Category Life (yrs) Airport contracts 4 - 20 Brand 3 - 15 Customer relationships 9 Database 5 Dealer networks 15 - 20 Developed technology 3 - 15 Non-compete agreements 3 - 15 Store networks 5 - 7 Trademarks 10 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation Between Basic and Diluted Earnings Per Share | A reconciliation between basic and diluted earnings per share ("EPS") is as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands, except per share data) Net income attributable to Ebix, Inc. $ 308 $ 19,343 $ 7,381 $ 38,534 Basic weighted average shares outstanding 30,866 30,745 30,854 30,729 Dilutive effect of stock options and restricted stock awards 3 11 2 27 Diluted weighted average shares outstanding 30,869 30,756 30,856 30,756 Basic earnings per common share $ 0.01 $ 0.63 $ 0.24 $ 1.25 Diluted earnings per common share $ 0.01 $ 0.63 $ 0.24 $ 1.25 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Locations | The following enterprise-wide information relates to the Company's geographic locations: Six Months Ended As of Six Months Ended As of June 30, 2023 June 30, 2023 June 30, 2022 December 31, 2022 External Revenues Long-lived assets External Revenues Long-lived assets (In thousands) North America 76,590 388,113 79,671 374,891 International 284,601 803,515 457,363 785,746 $ 361,191 $ 1,191,628 $ 537,034 $ 1,160,637 Enterprise-wide information relates to the Company's geographic locations on net basis for Comparative Purposes (Non GAAP) Six Months Ended As of Six Months Ended As of June 30, 2023 June 30, 2023 June 30, 2022 December 31, 2022 External Revenues Long-lived assets External Revenues Long-lived assets (In thousands) North America 76,590 388,113 79,671 374,891 International 157,913 803,515 134,773 785,746 $ 234,503 $ 1,191,628 $ 214,444 $ 1,160,637 |
Goodwill, Finite-Lived, and I_2
Goodwill, Finite-Lived, and Indefinite-Lived Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the six months ended June 30, 2023 and the year ended December 31, 2022 are reflected in the following table: June 30, 2023 December 31, 2022 (Unaudited) (In thousands) Beginning Balance $ 881,676 $ 939,249 Additions — — Purchase accounting adjustments — — Foreign currency translation adjustments $ 5,425 (57,573) Ending Balance $ 887,101 $ 881,676 |
Schedule of Finite-Lived Intangible Assets | The carrying value of finite-lived and indefinite-lived intangible assets at June 30, 2023 and December 31, 2022 are as follows: June 30, December 31, (Unaudited) (In thousands) Finite-lived intangible assets: Customer relationships $ 101,333 $ 101,401 Developed technology 37,139 34,427 Dealer network 6,067 5,877 Airport contracts 4,021 3,992 Trademarks 2,667 2,651 Store networks 2,169 2,153 Brand 797 791 Non-compete agreements 704 702 Database 212 212 Backlog 140 140 Total intangibles 155,249 152,346 Accumulated amortization (107,254) (101,446) Finite-lived intangibles, net $ 47,995 $ 50,900 Indefinite-lived intangibles: . Customer/territorial relationships 16,647 16,647 |
Schedule of Indefinite-Lived Intangible Assets | The carrying value of finite-lived and indefinite-lived intangible assets at June 30, 2023 and December 31, 2022 are as follows: June 30, December 31, (Unaudited) (In thousands) Finite-lived intangible assets: Customer relationships $ 101,333 $ 101,401 Developed technology 37,139 34,427 Dealer network 6,067 5,877 Airport contracts 4,021 3,992 Trademarks 2,667 2,651 Store networks 2,169 2,153 Brand 797 791 Non-compete agreements 704 702 Database 212 212 Backlog 140 140 Total intangibles 155,249 152,346 Accumulated amortization (107,254) (101,446) Finite-lived intangibles, net $ 47,995 $ 50,900 Indefinite-lived intangibles: . Customer/territorial relationships 16,647 16,647 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets at June 30, 2023 and December 31, 2022 consisted of the following: June 30, 2023 December 31, 2022 (Unaudited) (In thousands) Prepaid expenses $ 79,365 $ 71,449 Sales taxes receivable from customers 5,723 3,289 Other third party receivables 678 1,034 Credit card merchant account balance receivable 712 704 Short term portion of capitalized costs to obtain and fulfill contracts 474 486 Accrued interest receivable 598 651 Other 11,048 9,774 Total $ 98,598 $ 87,387 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Maturity of Finance Lease Liability | At June 30, 2023, the maturity of lease liabilities under Topic 842 " Leases " are as follows: Year Operating Leases Financing Leases Total (in thousands) 2023 1,958 71 2,029 2024 2,979 133 3,112 2025 2,221 19 2,240 2026 1,394 1,394 2027 637 — 637 Thereafter 1,141 — 1,141 Total 10,330 223 10,553 Less: present value discount* (1,304) (9) (1,313) Present value of lease liabilities 9,026 214 9,240 Less: current portion of lease liabilities (3,024) (3,024) Total long-term lease liabilities $ 6,002 $ 214 $ 6,216 * The discount rate used was the incremental borrowing rates respective to the country where the assets are located. |
Schedule of Maturity of Operating Lease Liability | At June 30, 2023, the maturity of lease liabilities under Topic 842 " Leases " are as follows: Year Operating Leases Financing Leases Total (in thousands) 2023 1,958 71 2,029 2024 2,979 133 3,112 2025 2,221 19 2,240 2026 1,394 1,394 2027 637 — 637 Thereafter 1,141 — 1,141 Total 10,330 223 10,553 Less: present value discount* (1,304) (9) (1,313) Present value of lease liabilities 9,026 214 9,240 Less: current portion of lease liabilities (3,024) (3,024) Total long-term lease liabilities $ 6,002 $ 214 $ 6,216 * The discount rate used was the incremental borrowing rates respective to the country where the assets are located. |
Schedule of Lease Cost | The lease cost is recognized in our condensed consolidated statements of income in the category of general and administrative and is summarized as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Operating Lease Cost $ 1,063 $ 989 $ 2,129 $ 1,980 Finance Lease Cost: Amortization of Lease Assets 34 46 74 94 Interest on Lease Liabilities 3 6 7 13 Finance Lease Cost 37 52 81 107 Sublease Income — (23) (24) (46) Total Net Lease Cost $ 1,100 $ 1,018 $ 2,186 $ 2,041 |
Schedule of Other Operating and Finance Lease Information | Other information about lease amounts recognized in our condensed consolidated statement of income is summarized as follows: June 30, 2023 Weighted Average Lease Term - Operating Leases 1.62 years Weighted Average Lease Term - Finance Leases 3.89 years Weighted Average Discount Rate - Operating Leases 5.4 % Weighted Average Discount Rate - Finance Leases 8.2 % |
Schedule of Other Commitments | Such arrangements represent further commitments of approximately $8.9 million as follows: Year Commitments (in thousands) 2023 (Remaining six months) $ 5,208 2024 3,214 Thereafter $ 516 Total $ 8,938 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities at June 30, 2023 and December 31, 2022 consisted of the following: June 30, 2023 December 31, 2022 (Unaudited) (In thousands) Customer advances (deposits) $ 24,023 $ 23,630 Acquisition obligations (upfront purchase and contingent consideration) 1,606 2,153 Total $ 25,629 $ 25,783 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Description of Business (Details) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue Benchmark | Geographic Concentration Risk | International | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 78.80% | 85.20% |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Short-Term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Short-term investments | $ 14,392 | $ 17,438 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Accounting Policies [Abstract] | |||
Restricted cash | $ 8,282 | $ 8,210 | $ 9,415 |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash Shown in the Statement of Cash Flows (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 62,165 | $ 110,637 | $ 67,511 | |
Restricted cash | 8,282 | 8,210 | 9,415 | |
Restricted cash included in other long-term assets | 5,952 | 6,409 | ||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows | $ 76,399 | $ 124,959 | $ 83,335 | $ 114,764 |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies - Fiduciary Funds (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Fiduciary funds - restricted | $ 1,735 | $ 2,092 |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Advertising expense | $ 1.8 | $ 2.4 | $ 3.1 | $ 4.3 |
Description of Business and _10
Description of Business and Summary of Significant Accounting Policies - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Total assets measured at fair value | $ 32,836 | $ 37,532 |
Liabilities | ||
Contingent accrued earn-out acquisition consideration | 2,315 | 2,299 |
Total liabilities measured at fair value | 2,315 | 2,299 |
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Assets | ||
Total assets measured at fair value | 106 | 98 |
Liabilities | ||
Contingent accrued earn-out acquisition consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total assets measured at fair value | 32,730 | 37,434 |
Liabilities | ||
Contingent accrued earn-out acquisition consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Contingent accrued earn-out acquisition consideration | 2,315 | 2,299 |
Total liabilities measured at fair value | 2,315 | 2,299 |
Certificates of Deposit | ||
Assets | ||
Available-for-sale Securities | 32,730 | 37,434 |
Certificates of Deposit | Fair Value, Recurring | ||
Assets | ||
Available-for-sale Securities | 10,200 | 6,400 |
Certificates of Deposit | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Assets | ||
Available-for-sale Securities | 0 | 0 |
Certificates of Deposit | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Available-for-sale Securities | 32,730 | 37,434 |
Certificates of Deposit | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Available-for-sale Securities | 0 | 0 |
Mutual funds | ||
Assets | ||
Available-for-sale Securities | 106 | 98 |
Mutual funds | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Assets | ||
Available-for-sale Securities | 106 | 98 |
Mutual funds | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Available-for-sale Securities | 0 | 0 |
Mutual funds | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Available-for-sale Securities | $ 0 | $ 0 |
Description of Business and _11
Description of Business and Summary of Significant Accounting Policies - Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Contingent Liability for Accrued Earn-out Acquisition Consideration | |||
Beginning balance | $ 2,299 | $ 2,299 | $ 0 |
Remeasurement against goodwill | $ 0 | 2,299 | |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Foreign currency translation adjustments | Foreign currency translation adjustments | |
Foreign currency translation adjustments | $ 16 | 0 | |
Business settlements | 0 | 0 | |
Ending balance | 2,315 | 2,299 | |
The amount of total (gains) losses for the period included in earnings or changes to net assets, attributable to changes in unrealized gains relating to assets or liabilities still held at period-end. | $ 0 | $ 0 |
Description of Business and _12
Description of Business and Summary of Significant Accounting Policies - Quantitative Information about Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | |||
Contingent acquisition consideration | $ 2,315 | $ 2,299 | $ 0 |
Description of Business and _13
Description of Business and Summary of Significant Accounting Policies - Revenue Recognition (Details) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 USD ($) productServiceGroup | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) revenueStream productServiceGroup | Jun. 30, 2022 USD ($) | Jun. 30, 2023 INR (₨) productServiceGroup | |||
Disaggregation of Revenue [Line Items] | |||||||
Number of product service channels | productServiceGroup | 2 | 2 | 2 | ||||
Maximum limit per gift card | $ 122 | $ 122 | ₨ 10,000 | ||||
Term of virtual gift card | 15 months | ||||||
Term of physical gift card | 3 years | ||||||
Number of revenue streams | revenueStream | 2 | ||||||
Operating revenue | 118,430,000 | [1] | $ 250,781,000 | [1] | $ 361,191,000 | $ 537,034,000 | |
Subscription contract term | 3 years | ||||||
Subscription contract renewal term | 1 year | ||||||
Exchanges | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Operating revenue | 98,078,000 | 230,943,000 | $ 319,944,000 | 498,859,000 | |||
Risk Compliance Solutions | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Operating revenue | 20,352,000 | 19,838,000 | 41,247,000 | 38,175,000 | |||
Net Basis | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Operating revenue | 118,430,000 | 114,924,000 | 234,503,000 | 214,444,000 | |||
Net Basis | Exchanges | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Operating revenue | 98,078,000 | 95,086,000 | 193,256,000 | 176,269,000 | |||
Net Basis | Risk Compliance Solutions | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Operating revenue | 20,352,000 | 19,838,000 | 41,247,000 | 38,175,000 | |||
North America | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Operating revenue | 37,720,000 | 39,645,000 | 76,590,000 | 79,671,000 | |||
North America | Net Basis | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Operating revenue | 37,720,000 | 39,645,000 | 76,590,000 | 79,671,000 | |||
International | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Operating revenue | 80,710,000 | 213,061,000 | 284,601,000 | 457,363,000 | |||
International | Net Basis | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Operating revenue | $ 80,710,000 | $ 75,279,000 | $ 157,913,000 | $ 134,773,000 | |||
[1]Beginning April 1, 2023 Prepaid card revenues are presented on a net basis (based on new contractual changes) while periods preceding April 1, 2023 reflect prepaid card revenues on a gross basis. Please see (non- GAAP financials) table with both periods recast on a net basis, for comparison purposes under heading " Condensed Consolidated Statements of Income prepared on Net Basis for Comparative Purposes Only (Non GAAP)" . |
Description of Business and _14
Description of Business and Summary of Significant Accounting Policies - Costs to Obtain and Fulfill a Contract (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Capitalized contract costs, net, current | $ 474 | $ 486 |
Capitalized contract costs, net, noncurrent | 752 | 797 |
Deferred Contract Costs [Roll Forward] | ||
Balance, beginning of period | 1,284 | 1,822 |
Costs recognized from the beginning balance | (265) | (968) |
Additions, net of costs recognized | 208 | 430 |
Balance, end of period | $ 1,227 | $ 1,284 |
Description of Business and _15
Description of Business and Summary of Significant Accounting Policies - Contract Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Deferred revenue included in accounts receivables | $ 9,400 | $ 8,000 |
Change in Contract Liabilities | ||
Balance, beginning of period | 46,127 | 41,357 |
Revenue recognized from beginning balance | (26,392) | (30,460) |
Additions, net of revenue recognized and currency translation | 25,751 | 35,230 |
Balance, end of period | $ 45,486 | $ 46,127 |
Description of Business and _16
Description of Business and Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | $ 163,166 | $ 163,166 | $ 154,533 | ||
Allowance for doubtful accounts | 18,885 | 18,885 | 18,167 | ||
Bad debt expense (recovery) | 1,400 | $ 2,100 | 1,832 | $ 1,702 | |
Billed Revenues | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | 163,200 | 163,200 | 154,500 | ||
Unbilled Revenues | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | $ 52,800 | $ 52,800 | $ 55,200 |
Description of Business and _17
Description of Business and Summary of Significant Accounting Policies - Goodwill and Finite-lived Intangible Assets (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) segment reportingUnit | Dec. 31, 2022 USD ($) | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Goodwill, impairment loss | $ | $ 0 | $ 0 |
Number of operating segments | segment | 1 | |
Number of reporting units | reportingUnit | 1 | |
Maximum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 15 years | |
Airport contracts | Minimum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 4 years | |
Airport contracts | Maximum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 20 years | |
Brand | Minimum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 3 years | |
Brand | Maximum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 15 years | |
Customer/territorial relationships | Minimum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 9 years | |
Database | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 5 years | |
Dealer networks | Minimum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 15 years | |
Dealer networks | Maximum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 20 years | |
Developed technology | Minimum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 3 years | |
Developed technology | Maximum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 15 years | |
Non-compete agreements | Minimum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 3 years | |
Store networks | Minimum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 5 years | |
Store networks | Maximum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 7 years | |
Trademarks | Minimum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | ||
Finite-lived intangible asset, useful life | 10 years |
Description of Business and _18
Description of Business and Summary of Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Intercompany Foreign Currency Balance [Line Items] | ||||
Foreign currency translation adjustments | $ 2,393 | $ (43,343) | $ 10,113 | $ (54,627) |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation between Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Earnings Per Share [Abstract] | ||||||
Net income attributable to Ebix, Inc. | $ 308 | [1] | $ 19,343 | [1] | $ 7,381 | $ 38,534 |
Basic weighted average shares outstanding (in shares) | 30,866 | [1] | 30,745 | [1] | 30,854 | 30,729 |
Dilutive effect of stock options and restricted stock awards (in shares) | 3 | 11 | 2 | 27 | ||
Diluted weighted average shares outstanding (in shares) | 30,869 | [1] | 30,756 | [1] | 30,856 | 30,756 |
Basic earnings per common share (in dollars per share) | $ 0.01 | [1] | $ 0.63 | [1] | $ 0.24 | $ 1.25 |
Diluted earnings per common share (in dollars per share) | $ 0.01 | [1] | $ 0.63 | [1] | $ 0.24 | $ 1.25 |
Potentially issuable shares with respect to stock option (in shares) | 180 | 138 | 180 | 138 | ||
[1]Beginning April 1, 2023 Prepaid card revenues are presented on a net basis (based on new contractual changes) while periods preceding April 1, 2023 reflect prepaid card revenues on a gross basis. Please see (non- GAAP financials) table with both periods recast on a net basis, for comparison purposes under heading " Condensed Consolidated Statements of Income prepared on Net Basis for Comparative Purposes Only (Non GAAP)" . |
Business Combinations (Details)
Business Combinations (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 USD ($) company | Dec. 31, 2022 USD ($) company | Dec. 31, 2021 USD ($) | |
Business Combination and Asset Acquisition [Abstract] | |||
Number of businesses acquired | company | 0 | 0 | |
Contingent acquisition consideration | $ | $ 2,315 | $ 2,299 | $ 0 |
Debt (Details)
Debt (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2023 | Jul. 21, 2023 | May 23, 2023 | Feb. 21, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Aug. 05, 2014 | |
Line of Credit Facility [Line Items] | ||||||||
Revolving line of credit | $ 444,902,000 | $ 449,902,000 | ||||||
Prepayment of debt | 7,704,000 | $ 0 | ||||||
Deferred costs, current | 934,000 | 469,000 | ||||||
Principal payments | 40,961,000 | $ 15,933,000 | ||||||
Working capital facility | $ 5,043,000 | 3,367,000 | ||||||
Bank Overdrafts | Minimum | India | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 9% | |||||||
Bank Overdrafts | Maximum | India | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 10% | |||||||
Regions Bank | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement, amount outstanding | $ 171,900,000 | |||||||
Revolving line of credit | 616,800,000 | |||||||
Debt payments | $ 5,000,000 | |||||||
Regions Bank | Secured Syndicated Credit Facility, Ninth Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit card origination costs | $ 2,300,000 | |||||||
Regions Bank | Secured Syndicated Credit Facility, Eighth Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit card origination costs | 1,200,000 | |||||||
Regions Bank | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement, maximum borrowing capacity | $ 450,000,000 | |||||||
Annual increase in percentage rate | 1.50% | 1% | ||||||
Prepayment of debt | $ 5,000,000 | |||||||
Regions Bank | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement, applicable margins (as a percent) | 7.50% | |||||||
Regions Bank | Revolving Credit Facility | Base Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement, applicable margins (as a percent) | 6.50% | |||||||
Regions Bank | Revolving Credit Facility | Subsequent Event | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Annual increase in percentage rate | 2% | |||||||
Regions Bank | Revolving Credit Facility | Subsequent Event | Secured Overnight Financing Rate (SOFR) | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement, applicable margins (as a percent) | 8% | |||||||
Regions Bank | Revolving Credit Facility | Subsequent Event | Base Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement, applicable margins (as a percent) | 7% | |||||||
Credit agreement, amendment fee percentage | 0.0150 | |||||||
Regions Bank | Revolving Credit Facility | Secured Syndicated Credit Facility, Ninth Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit, interest rate percentage | 11.95% | |||||||
Credit agreement, average amount outstanding during period | $ 444,900,000 | |||||||
Regions Bank | Revolving Credit Facility | Secured Syndicated Credit Facility, Eighth Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit card origination costs | 1,400,000 | 700,000 | ||||||
Regions Bank | Revolving Credit Facility | Secured Syndicated Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement, amount outstanding | 444,900,000 | $ 449,900,000 | ||||||
Line of credit, interest rate percentage | 9.69% | |||||||
Regions Bank | Secured Term Loan | Secured Syndicated Credit Facility, Ninth Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement, required payment | $ 5,000,000 | |||||||
Line of credit, interest rate percentage | 11.95% | |||||||
Outstanding balance | $ 171,900,000 | |||||||
Loans payable, current | $ 171,900,000 | |||||||
Line of credit facility, due | 12 months | |||||||
Principal payments | $ 17,500,000 | |||||||
Scheduled amortization payment | 0 | |||||||
Regions Bank | Secured Term Loan | Secured Syndicated Credit Facility, Eighth Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit card origination costs | $ 900,000 | $ 500,000 | ||||||
Deferred costs, current | 500,000 | |||||||
Outstanding balance | 189,400,000 | |||||||
Loans payable, current | $ 189,400,000 | |||||||
Line of credit facility, due | 12 months | |||||||
Debt, weighted average interest rate | 9.69% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Apr. 01, 2017 |
Ebix Payment Services Private Limited | |
Business Acquisition [Line Items] | |
Ownership percentage | 80% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |||
Operating Loss Carryforwards | |||||||
Income tax (expense) benefit | $ 164 | [1] | $ 2,478 | [1] | $ 787 | $ 4,182 | |
Effective income tax rate percent | 12.74% | 12.74% | |||||
Income tax expense related to discrete items | $ 1,600 | $ 1,800 | |||||
Income tax benefit before discrete items | 1,400 | $ 971 | |||||
Effective income tax rate excluding discrete items percent | (15.67%) | ||||||
Additions for tax positions related to current year | 1,400 | $ 146 | $ 1,400 | $ 146 | |||
Unrecognized tax benefits | $ 7,800 | $ 7,800 | $ 6,400 | ||||
Minimum | |||||||
Operating Loss Carryforwards | |||||||
Effective income tax rate percent | 8% | ||||||
Maximum | |||||||
Operating Loss Carryforwards | |||||||
Effective income tax rate percent | 10% | ||||||
[1]Beginning April 1, 2023 Prepaid card revenues are presented on a net basis (based on new contractual changes) while periods preceding April 1, 2023 reflect prepaid card revenues on a gross basis. Please see (non- GAAP financials) table with both periods recast on a net basis, for comparison purposes under heading " Condensed Consolidated Statements of Income prepared on Net Basis for Comparative Purposes Only (Non GAAP)" . |
Geographic Information - Revenu
Geographic Information - Revenue by Geographic Locations (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Number of reportable segments | segment | 1 | ||||||
External Revenues | $ 118,430 | [1] | $ 250,781 | [1] | $ 361,191 | $ 537,034 | |
Long-lived assets | 1,191,628 | 1,191,628 | $ 1,160,637 | ||||
Net Basis | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
External Revenues | 118,430 | 114,924 | 234,503 | 214,444 | |||
Long-lived assets | 1,191,628 | 1,191,628 | 1,160,637 | ||||
North America | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
External Revenues | 37,720 | 39,645 | 76,590 | 79,671 | |||
Long-lived assets | 388,113 | 388,113 | 374,891 | ||||
North America | Net Basis | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
External Revenues | 37,720 | 39,645 | 76,590 | 79,671 | |||
Long-lived assets | 388,113 | 388,113 | 374,891 | ||||
International | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
External Revenues | 80,710 | 213,061 | 284,601 | 457,363 | |||
Long-lived assets | 803,515 | 803,515 | 785,746 | ||||
International | Net Basis | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
External Revenues | 80,710 | $ 75,279 | 157,913 | $ 134,773 | |||
Long-lived assets | $ 803,515 | $ 803,515 | $ 785,746 | ||||
[1]Beginning April 1, 2023 Prepaid card revenues are presented on a net basis (based on new contractual changes) while periods preceding April 1, 2023 reflect prepaid card revenues on a gross basis. Please see (non- GAAP financials) table with both periods recast on a net basis, for comparison purposes under heading " Condensed Consolidated Statements of Income prepared on Net Basis for Comparative Purposes Only (Non GAAP)" . |
Investment in Joint Ventures (D
Investment in Joint Ventures (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Feb. 29, 2016 | Sep. 30, 2015 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |||
Schedule of Equity Method Investments [Line Items] | |||||||||
Revenues | $ 118,430 | [1] | $ 250,781 | [1] | $ 361,191 | $ 537,034 | |||
Allowance for doubtful accounts | 18,885 | 18,885 | $ 18,167 | ||||||
Amortization of acquired intangible assets | 3,500 | 2,500 | 7,000 | 5,000 | |||||
Related Party | IHC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Revenues | 26 | 20 | 43 | 40 | |||||
Accounts receivable | 47 | 47 | 44 | ||||||
Ebix Vayam JV | Related Party | Vayam | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Revenues | 105 | 245 | 206 | 521 | |||||
Accounts receivable | 11,800 | 11,800 | 11,600 | ||||||
Allowance for doubtful accounts | 5,700 | 5,700 | 5,700 | ||||||
EbixHealth JV | Related Party | IHC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Revenues | 238 | $ 300 | 491 | $ 614 | |||||
Accounts receivable | 76 | 76 | $ 74 | ||||||
Ebix Vayam JV | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 51% | ||||||||
Percentage of membership interest in joint venture by other party | 49% | ||||||||
EbixHealth JV | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 51% | ||||||||
Percentage of membership interest in joint venture by other party | 49% | ||||||||
EbixHealth JV | Related Party | IHC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Notes payable | 1,800 | $ 1,800 | |||||||
EbixHealth JV | Related Party | Customer relationships | IHC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Amortization of acquired intangible assets | $ 125 | ||||||||
[1]Beginning April 1, 2023 Prepaid card revenues are presented on a net basis (based on new contractual changes) while periods preceding April 1, 2023 reflect prepaid card revenues on a gross basis. Please see (non- GAAP financials) table with both periods recast on a net basis, for comparison purposes under heading " Condensed Consolidated Statements of Income prepared on Net Basis for Comparative Purposes Only (Non GAAP)" . |
Goodwill, Finite-Lived, and I_3
Goodwill, Finite-Lived, and Indefinite-Lived Intangibles - Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 881,676 | $ 939,249 |
Additions | 0 | 0 |
Purchase accounting adjustments | 0 | 0 |
Foreign currency translation adjustments | 5,425 | (57,573) |
Ending Balance | $ 887,101 | $ 881,676 |
Goodwill, Finite-Lived, and I_4
Goodwill, Finite-Lived, and Indefinite-Lived Intangibles - Finite-Lived and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Finite-lived intangible assets: | |||||
Finite-lived intangible assets, gross | $ 155,249 | $ 155,249 | $ 152,346 | ||
Accumulated amortization | (107,254) | (107,254) | (101,446) | ||
Finite-lived intangibles, net | 47,995 | 47,995 | 50,900 | ||
Indefinite-lived intangibles: | |||||
Indefinite-lived intangibles | 16,647 | 16,647 | 16,647 | ||
Amortization of acquired intangible assets | 3,500 | $ 2,500 | 7,000 | $ 5,000 | |
Customer/territorial relationships | |||||
Indefinite-lived intangibles: | |||||
Indefinite-lived intangibles | 16,647 | 16,647 | 16,647 | ||
Customer/territorial relationships | |||||
Finite-lived intangible assets: | |||||
Finite-lived intangible assets, gross | 101,333 | 101,333 | 101,401 | ||
Developed technology | |||||
Finite-lived intangible assets: | |||||
Finite-lived intangible assets, gross | 37,139 | 37,139 | 34,427 | ||
Dealer network | |||||
Finite-lived intangible assets: | |||||
Finite-lived intangible assets, gross | 6,067 | 6,067 | 5,877 | ||
Airport contracts | |||||
Finite-lived intangible assets: | |||||
Finite-lived intangible assets, gross | 4,021 | 4,021 | 3,992 | ||
Trademarks | |||||
Finite-lived intangible assets: | |||||
Finite-lived intangible assets, gross | 2,667 | 2,667 | 2,651 | ||
Store networks | |||||
Finite-lived intangible assets: | |||||
Finite-lived intangible assets, gross | 2,169 | 2,169 | 2,153 | ||
Brand | |||||
Finite-lived intangible assets: | |||||
Finite-lived intangible assets, gross | 797 | 797 | 791 | ||
Non-compete agreements | |||||
Finite-lived intangible assets: | |||||
Finite-lived intangible assets, gross | 704 | 704 | 702 | ||
Database | |||||
Finite-lived intangible assets: | |||||
Finite-lived intangible assets, gross | 212 | 212 | 212 | ||
Backlog | |||||
Finite-lived intangible assets: | |||||
Finite-lived intangible assets, gross | $ 140 | $ 140 | $ 140 |
Capitalized Software Developm_2
Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Capitalized Software Development Costs Disclosure [Abstract] | |||||
Capitalized software development costs for software sold to customers | $ 400 | $ 1,500 | $ 500 | $ 4,200 | |
Capitalized software development costs, net | 15,900 | 15,900 | $ 15,300 | ||
Amortization of capitalized software development costs | $ 100 | $ 800 | $ 103 | $ 1,511 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 79,365 | $ 71,449 |
Sales taxes receivable from customers | 5,723 | 3,289 |
Other third party receivables | 678 | 1,034 |
Credit card merchant account balance receivable | 712 | 704 |
Short term portion of capitalized costs to obtain and fulfill contracts | 474 | 486 |
Accrued interest receivable | 598 | 651 |
Other | 11,048 | 9,774 |
Total | $ 98,598 | $ 87,387 |
Leases - Operating and Finance
Leases - Operating and Finance Lease Liability (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2023 | $ 1,958 | |
2024 | 2,979 | |
2025 | 2,221 | |
2026 | 1,394 | |
2027 | 637 | |
Thereafter | 1,141 | |
Total | 10,330 | |
Less: present value discount | (1,304) | |
Present value of lease liabilities | 9,026 | |
Less: current portion of lease liabilities | $ (3,024) | $ (3,354) |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | |
Lease liability | $ 6,002 | $ 6,612 |
Financing Leases | ||
2023 | 71 | |
2024 | 133 | |
2025 | 19 | |
2026 | ||
2027 | 0 | |
Thereafter | 0 | |
Total | 223 | |
Less: present value discount | (9) | |
Present value of lease liabilities | 214 | |
Less: current portion of lease liabilities | ||
Total long-term lease liabilities | 214 | |
Operating And Finance Lease Liabilities, Payments Due [Abstract] | ||
2023 | 2,029 | |
2024 | 3,112 | |
2025 | 2,240 | |
2026 | 1,394 | |
2027 | 637 | |
Thereafter | 1,141 | |
Total | 10,553 | |
Less: present value discount | (1,313) | |
Present value of lease liabilities | 9,240 | |
Less: current portion of lease liabilities | (3,024) | |
Total long-term lease liabilities | $ 6,216 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Right-of-use assets | $ 8,700 | $ 9,600 | |
Present value of lease liabilities | 9,240 | ||
Other commitment | 8,938 | ||
Operating lease, rent expense | $ 10,300 | $ 18,600 | |
Minimum | Computer Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 3 years | ||
Maximum | Computer Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 5 years |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating Lease Cost | $ 1,063 | $ 989 | $ 2,129 | $ 1,980 |
Amortization of Lease Assets | 34 | 46 | 74 | 94 |
Interest on Lease Liabilities | 3 | 6 | 7 | 13 |
Finance Lease Cost | 37 | 52 | 81 | 107 |
Sublease Income | 0 | (23) | (24) | (46) |
Total Net Lease Cost | $ 1,100 | $ 1,018 | $ 2,186 | $ 2,041 |
Leases - Other Operating and Fi
Leases - Other Operating and Finance Lease Information (Details) | Jun. 30, 2023 |
Leases [Abstract] | |
Weighted Average Lease Term - Operating Leases | 1 year 7 months 13 days |
Weighted Average Lease Term - Finance Leases | 3 years 10 months 20 days |
Weighted Average Discount Rate - Operating Leases | 5.40% |
Weighted Average Discount Rate - Finance Leases | 8.20% |
Leases - Non Lease Arrangements
Leases - Non Lease Arrangements Future Commitments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 (Remaining six months) | $ 5,208 |
2024 | 3,214 |
Thereafter | 516 |
Total | $ 8,938 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Customer advances (deposits) | $ 24,023 | $ 23,630 |
Acquisition obligations (upfront purchase and contingent consideration) | 1,606 | 2,153 |
Total | $ 25,629 | $ 25,783 |