Earnings call transcript Q4 2023

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Operator

Welcome to the ibex's Fourth Quarter and Full Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

To note, there is an accompanying earnings deck presentation available on the ibex Investor Relations website at investors.ibex.co.

this to turn -- now will conference Michael over Mr. I Investor Relations Darwal, of Michael ibex.

Michael Darwal

thank joining you and afternoon, Good for us today.

Before you that management's current a may want business we assumptions. result outlook, to this on goals and based performance, I related call on date of the are operating Please as statements include we today's forward-looking opinion of and our financial revise beliefs which which matters begin, discussed developments that to note new to call, of these undertake and may our information obligation forward-looking as statements reflect no this occur. remind

are subject statements to other actual uncertainties and results factors today. that differ materially Forward-looking expected various cause those our to could from risks, described and

our report risk our the of review September Commission with filed description on XX-K Securities XXXX. please annual and U.S. Exchange XX, on factors, detailed more Form For

on filer conversion rather a Additionally, such We've excited are I moved IFRS the previous and we've would been reporting reporting be to being are U.S. that standard. like messaging remind preparing as and from everyone the a for GAAP and domestic to now according. than basis

will I Dechant, of the call now over CEO to Bob turn ibex. that, With

Bob Dechant

thank you as you, Mike. Good and for results. afternoon, everyone, share joining us XXXX Thank today our year all and we fiscal quarter fourth

background brings fantastic Taylor the industry. new before in his First, a excited spent very skill first ibex. I nearly dive ibex, into Greenwald, having to CFO, Taylor years call I'm welcome our set the to XX results, earnings to with and

that our and he a few weeks compliments our While I culture ago, already just Taylor confident am started team. perfectly

the net achieved EBITDA macroeconomic of year across unprecedented across significant for FY metrics, key BPO EPS, flow. this free bests the challenges 'XX all-time cash margin, competitor and including in consolidation. with accomplished all revenue, We and was ibex, market, where pressure face financial massive record we EBITDA, income, another

our against and ability much demonstrate to a win continue successfully unique to larger We compete competitors.

is engagement. advantage culture unparalleled tremendous competitive around built an agent-first with employee Our

we Our WaveX competitors. Insights, technology stack us enable and that consistently our our to analytics call WaveX capabilities deep outperform

our all Additionally, result ibex. in flexibility resilient is performed market well a for advantage significant business speed conditions. The that extremely an and has amazingly create

take income with in $X.XX to and free record in the zero flow for $XX.X XX.X%. year virtually grew to up XX% EBITDA year-over-year. prior EPS company the versus resulting verticals. we of delivered year-over-year, we strategic another XX% the $XX.X year, me in driven financial adjusted with of a million seen million million new chip the delivered and as of increased 'XX, fiscal in XXX over borrowings the in most Adjusted in We cash I've the of $XXX X.X% by margin wins delivered highlight my the record years cash Let moment XX-plus year. for year, prior turbulent Adjusted $X.XX blue $XX.X clients in We results cash million XXXX. revenues this Adjusted one and FY $XX.X into in industry. ended record with EBITDA net points to equivalents, increased versus million, basis years our head

QX was a for prevailing tempered headwinds on market quarter solid by ibex, revenue.

resulting the our we growth to with shift business in from offshore of continued X%. quarter, the onshore clients, of During revenue

cost overall prior-year XX% quarter, as nearshore our U.S. onshore FY and offshore BPO versus our markets. highly X% 'XX. XX% region to revenue, QX and from in now for from the grew XX%, Revenues Our clients in successfully grew X.X migrated quarter, clients our contracted we XX% represent while the up at region of low our profitable

to healthy points. a XXX up versus prior-year basis a As $XX.X a with quarter result, XX.X%, million, margin XX% grew EBITDA of

grow long-term with in for have structurally continue to our built have clients. margin as we these I previously business regions our highlighted, we As expansion

an for 'XX FY awards. was ibex winning year amazing

a industry. to by to and Place our a proud Philippines' Best During Greatest consecutive Central more year are awards great I'm and Contact recognitions, many accomplished ibex. including to what and reputation second this and team the of Nicaragua XXXX for to in Philippine XXXX Places Work am for Workplaces Best consecutive Women year Award bring Daily has for Work will we and excited XXXX the in the future third the America's in among Inquirer, awards. FY for what by than magazine have Work, Best in to Newsweek, equally Place dozen Caribbean and Employers the brand we These year, Center CUSTOMER for Technology Great testimony built WaveX, Diversity won by other the the 'XX, by for I America so

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ability payer including for the of high-profile in healthtech, to million and the healthcare new for multiple revenue approximately vertical, the and retail established year, were the our included wins logo Over in strategic dental e-commerce These relationships the of wins technology industry, and the $XX a course demonstrating XX new a our client and verticals, deals. win administrator leading year. top healthcare across

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these speed capabilities. are using We solutions, move building to leveraging quickly into

using surveys currently we are deep customer survey AI voice, into provide do across to insights the clients text. for offering, in our we our email technology fact, leveraging and In automotive

three-prong Our is a continue AI differentiate strategy ibex. on to built approach to

solutions to providing our customers, to we have a AI agents in in generative quickly solutions First, already assist deployed productivity boost. developed and resulting

We seeing already are operational here. gains

real-time a sample calls AI interactions the plans. operate enabling generative analytics for the a solutions go of post-interaction, improvement deep and continued we in both small analysis to of to training enabling can tools develop quickly Second, needle, entire very manner, evaluate move to a deploying effective technology scale This XXX% us last quality to at us customized the clients. accelerate and of Insights. quarter, cost in monitored all These WaveX agent's began performance and the large in allowing resulting from of our boost

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number the experiences. continued their help developing prong of strategy. our are that our of the clients is part transformation customer for we exciting In customer-facing three, most This solutions digital

relationship recent partnerships, AI-focused the is expand to addition our positioned our well and additional customer-facing very ibex With of Genesys solutions. AI-powered

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number total the reduce may our digital-first strategy this clients support solutions of types contact these accelerating that into realize fits our we our clients. While volumes of of for have,

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term an strong highlighted, to the our to As into ibex structurally ibex grow. we even previously into into I This long to continue enabling develop solid is for have company we built business and as stronger very a business. us invest

and run investment at In and capabilities upgrade workday legacy will this integrated QX, an this solution. we ERP We that decision even larger even into our scale. to more systems business HCM made to efficiently a our believe strengthen

We project are be excited time about by that next the to completed this is moving year. this expect speed the and

position enabling our I as Taylor evaluate excited standpoint, his enhance as help accelerate our our allocation I'm have capital a growth. as From to strong opportunities will our and strategy is our as experience M&A our sheet us CFO, as to balance competitive to a moat, both here. believe way well solutions and financial

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win to staple a of ability with brands ibex. is Our high-profile

FY to this beyond. into We 'XX and expect continue

of the company. we ibex will well public confident believe take half trajectory market on next first in conditions I'm as While a some FY the positioned long-term that pressure and level the of to put are to ibex 'XX,

With the guidance Taylor to now turn into financials and that, for to more 'XX. over go our call on 'XX I Taylor? detail FY will

Taylor Greenwald

Thank and everyone. you, afternoon, Bob, good

the of is has last join over by base, what as I footprint. to leader their in to and impressive. can am the BPO a an performance the diversified very excited space and as look forward as ibex team to digital-first combination and positioned we several I attracted ibex expansion client was organization. years itself geographic X.X execution ibex The business accomplish vertical

sheet flow to generation. Importantly, drive me gives future great we and confidence growth, margins revenue strong strong that balance EBITDA can the cash continue

IFRS of of discussions our filer, ibex operations U.S. and from EBITDA domestic GAAP my mentioned, tables GAAP press now U.S. financial we're our Mike of flow fiscal references our now net attached accordance U.S. financial than full non-GAAP quarter in included and became on results, As income, share, net reporting to revenue, GAAP generated also fourth with adjusted adjusted and on XXXX the year are and X, net our a IFRS. rather July versus XXXX, to earnings basis. adjusted are results cash reported cash In per free to Reconciliations in release. measures a earnings income

impacts debt $X.X reported U.S. the in and quarter of accounting XXXX XXXX significant are in reduction a million a reported items, GAAP this other two EBITDA. and Among fourth lease fiscal The warrant adjusted and in million June year to in and change XX, $XX.X results $XX accounting. million from reduction

guidance are issued results impacts provided IFRS, factored previously with these align provided into With guidance. under previously the our our

our both increased lower driven approximately by by our million onshore quarter. bottom-line strategic our offshore revenue X% results. revenue technology to lower prior-year shift impact $XXX.X regions, Fourth grew verticals higher results. on client. as onshore significant locations a $XXX.X to growth margin Revenue compared and million legacy successfully has margin offset nearshore we large quarter margin the to The was higher revenue, replacing to while Turning from in and top-

nearshore and quarter. retail, XX% XX%, from prior-year increased offshore revenues, healthtech in declined revenues and the growth and versus Onshore benefiting particularly

now over the to growth in solid this to grew the quarter as and by cohort quarter. represents revenue XX% X.X total prior-year compared continue XX% X% BPO of our We prior-year our clients, in experience

and During some experience impacted growth. cycles the sales quarter, macroeconomic we new continued which near-term contributed headwinds, to revenue to longer client

signs fiscal as head the into pipeline encouraging we we're accelerating. our beginning see However, new to of year,

a quarter. to net the primarily prior-year one-time the offset quarter results declined Fourth higher in of $X.X the versus of million due operating taxes, was and prior-year in tax in benefit to million quarter, part $X.X interest million $X.X including by lower The decline stronger expense. absence deferred income

in $XX.X to to increased $XX.X measures. revenue or for million the year. of EBITDA The primarily XX.X% XX%. basis period Moving BPO which and was driven improvement XX% X.X million XXX regions, that Adjusted to increased EBITDA site or point our same XX.X% higher non-GAAP improved compared profitability and from revenue of last of adjusted client utilization, clients increases margin growth price by capacity margin to

the diluted declined The per net Adjusted to by share in and per performance. our adjusted the income Non-GAAP primarily by were from year to $X.XX income prior-year decreased a quarter. income deferred prior-year declines tax $X.XX share million in was $X.X to fully the earnings million quarter. benefit to fully mentioned earnings absence prior offset partially in driven higher net $X.X operating diluted adjusted stronger compared tax of and earlier compared expense

with the diversification we we over last have several the established client a years. As pleased company, are

than of our client fiscal year of revenue. accounted less XX% for quarter the For XXXX, fourth largest

at X XX and was client of and our revenue, XX% XX% total XX Top approximately were XX%. concentration concentrations and Our Top client respectively, Top

In addition, million the annum success at year year, the XX we annum, $X up our million, approach. with and per $XX at million the over and prior XX of from billing versus ended fiscal in billing over land XX $X expand exemplifying clients clients per

on We focus diversification. to continue our client maintain will

previously of offshore in fourth Switching prior-year the by driven healthcare revenue the onshore multiple growth and fourth of top XX% in versus geographies. industry part organic growth to in quarter, winds, continued we've quarter offshore based e-commerce revenue to in payer XX% including XX% versus Bob verticals. the to our mentioned. on due the the Retail to X% increased and increased experienced Healthtech prior-year quarter, large quarter

Our fiscal from exit XX% as lower-margin due of decreased XX% the quarterly Technology transportation mainly the accounting the in Travel of to from of a slightly quarterly quarter larger to continues XX% due prior-year to of clients exposure macroeconomic of of fourth decrease, decreased one revenue, the in vertical our quarterly in to prior telecommunications versus for to quarters. XXXX. pressure XX% by quarter. revenue, revenue X% legacy client and XX% primarily to year experienced discussed the

XX% to headwinds Lastly, large investing part markets. Fintech in new quarterly the cryptocurrency from due economy XX% revenue, continued decreased and to in of

a compared XXXX Revenue to in legacy large results. X% in million as technology Moving year, year strategic to replacing our successfully fiscal $XXX.X while million, we the increased grew to $XXX.X our prior verticals the driven and lower in low-margin was by exited regions, clients fourth client. of higher-margin that offset the legacy XXXX. Revenue growth fiscal by quarter the we revenue, our onshore onshore lapping of year

and shift Similar on and Pakistan, to higher-margin a lower-margin particularly Philippines versus from offshore XX% in the declined throughout and revenue prior year. offshore impact and the onshore nearshore the as fourth revenues to revenues, year meaningful quarter, nearshore XX% onshore the the had increased locations revenue

our accounting total versus grew BPO XX% the as to we continue our over prior prior We revenue higher experience XX% in year. year, X.X the growth XX% this of in clients segment for

sale cycles year. half longer mentioned had prominent more The the client second impact new a macroeconomic in and of revenue to growth and earlier, impacted fiscal the I contributed which headwinds, near-term

million increased $XX.X tax recorded stronger expense driven net million prior was million XXXX income a of primarily higher deferred tax offset operating prior tax interest significant expense, The versus and increase due $XX.X in lower the in in The net by one-time year. results to the $X.X benefit by income mostly year. was to expense. increase income income in

higher full basis XX.X% prior site in utilization. to is capacity million The point profitability X.X% year. higher BPO primarily revenue compared measures for margin by EBITDA margin increases growth of non-GAAP Adjusted clients client from year. and $XX.X $XX.X million adjusted regions, the to Moving increase revenue, driven to work of for or price in XXX in or increased EBITDA our the X.X in

tax adjusted adjusted income increased the our a year. adjusted diluted was increased and prior Adjusted in net partially income share performance $XX.X XX% operating and earnings in $XX XX% driven expense per higher to to net diluted primarily to tax year due million of in income by $X.XX the deferred to increase fully per benefit. non-GAAP fully prior The to prior offset stronger the compared absence million earnings share by compared year. $X.XX Non-GAAP

the offset to operations driven The compared in Net higher was from higher cash working capital year improvements increase the for $XX was operating fiscal by prior million driven by generated year. primarily $XX.X by receivable. in million results, requirements, accounts

Our days, up XX DSOs days were eight year-over-year.

continue trend to We below industry average.

fiscal were last year X.X% versus million or $XX expenditures Capital revenue in of the of or X.X% revenue year. million $XX.X

of requirements. is out capital requirements of utilization capacity with continued Our available lower in available and removal distancing expenditure years yielding built prior social the made

fiscal $XX.X lower year largely improved year, to million in increased operating to the in million by flow compared capital prior and the driven cash results Free $XX.X expenditures.

fiscal million $XX.X XX, in Total June $X under XXXX, XXXX. $XX.X debt debt million borrowing as June XX, to We with of our $XX.X as facilities XXXX. million, was And as down cash, ended year credit of XX, up from increased million XXXX. as the June total million to revolving XX, million compared from $XX.X June availability $XX.X of of of

Importantly, position June year-end our from sheet, at fiscal of to net $XX.X XX, balance strong $XX.X cash representing million as our XXXX. improved million

of excited long-term sheet, look about As ibex. strong direction X.X flow, of positive we are BPO the we our cash growth our balance business, digital-first forward,

$XXX over time. digital-first $XXX are We market a service provider we win over million billion, expect a to best-in-class in and market share

we macroeconomic fiscal revenue the These year of expect are to million million. we enter we experiencing higher-margin $XXX range headwinds fiscal $XXX impact and currently revenue will As shifting XXXX factors in near continuation offshore revenue a locations. and XXXX, to be still year to of as growth

to years approach to solution, position including margin our new ourselves ERP even infrastructure, XX% growth in for build EBITDA a out ahead. HCM greater adjusted the expect We we and our as

during [indiscernible] to capital in range year. expenditures our benefit the continue expansions COVID, a from to we as $XX million $XX million should remain for Additionally,

to range and quarter, we EBITDA For to of million a in million, margins expect revenues $XXX to $XXX the XX%. roughly be be

is for and future today business the of the fiscal well positioned about the year ibex XXXX are and years beyond. excited we Our and very ahead in

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

Operator

[Operator Thank with first Citi. you. comes Ryan question from Our Instructions] Potter

may You proceed.

Ryan Potter

what visibility guess taking how difference low end have what beyond and start visibility, into happen are maybe for the end outlook in upper full year confidence And needs question. I the here? macro and I the additional the there you buffers my to outlook? on thanks And any year? regarding that, do level you're much any any is hit there would And the have to visibility Hey, or embedded guess starting have you may outlook initial into the of you to of than ranges? including assumptions

Bob Dechant

over we Sure, Ryan, I question. But the feel a year free that and did I ago, don't thanks this did and to going pipeline occur. to hit hopefully, slow space couple anybody can two that remind that not of had in think all Reality the year that. quarters. last the where to And parts, to And down anticipate visibility missed is me. if for a was back half in the I it look, did

for of places lot a moving with like at the Philippines labor did much we our price higher Now, lower into clients working them us. really to get a challenges, helping low-cost with work U.S. and margin points economic the of job good markets,

ago the great had at of those might -- and and providing of So, you the partnerships moves a market that actually our our that's beginning clients year year, and all great great for not share. but I strengthening the are winning a solutions visibility great we have of think think

year, delay And I at very very, since that six couple look our what material on The onto is heating over really that Fortune call, June. candidly, view. up. pressure winning pipeline I pipeline stage. putting big But deals, here's of large like and is with top-line we're last XXX-type I'll of the won we've I pace, the some of business. quarters as how Now, this the kind

over call, -- beat, win head so is there quarter I ability And next guys the about I'll the and our in big two what good very and what or on. feel to

this the very about going end So, when success above our believe feel our two to I to that our we we gave, why incumbents, high I are on hit ability we well delivering on the ranges is install for pipeline, be that or base. our think dependent

strengthen And to so, install continue we that base.

types with visibility. We great land that feel have of those work continue to more and expand we

And big resumed And the -- pipeline. comes position. our then like like so, had years. very for variability win of strong I very, the I that I think our into we've our really kind rates five-plus we've to

something that please [lion's] your (ph) might so, And missed, free have there's Ryan, If up. I feel answers of hopefully, to follow question. the

Ryan Potter

you need much to AI to deployed But I of you have situations total with how No, gen does the leveraging change has just I that was with client, AI, reduce three. and with spend your where how that kind all it Then of any think guess help gave your solutions? thanks productivity Could AI also agents have maybe used relationship around client where you at it and more for does of the providing you shifting and some you've agent just point examples for that impact improved client? think the that I price in tech on in covered you on numbers -- one you're how all. the kind some business. point provide

Bob Dechant

Sure. question. Great really, yeah, solid -- really

-- those in about call the talk that that. kind of assist, AI so, productivity the And boost we first agents kind prong let's the the of and gives of first agent

that, customized. early be have to be really happen generative your Now, effective we're is on train what for has and the agents to to in because you AI to

you don't it throw them -- just answers. kind unfiltered don't of access You give to

And potential that an of work. the on gains. let really you give we're but really can excited how idea we're on So, me early about that,

on to the the might immediate knowledge base, quite escalate that we fingertips getting right geared answer early AI The an a that. they small that their get be the agent subset to tier-X kind around a a to impactful time, to new get use knowledge powerful They long with a agents where new kind to not get gains. can that access inherently article. generative may really that from new to have tool have they they Your are for supervisor of of able that very to there, have for the those often, find that's productivity to being agents. -- of to Having numbers from struggle that

I hate through that number, early still So, see to on, to because quote -- that and potential have pathway hopefully, it's you you a kind impact the that could but walking of that, pretty can help agent's and proficiency. really

In lot very have solutions typical think here's a a agents, us where to leveraging that we're the all that can that. not we building, our costs, our paying in is we that hire for We peak ramp. a keep elegant have that, and the need buildouts, really when lot as a short working, for clients have for to we is amount provide see By of time. in do you those AI to costs, then more that agents customer-facing to allow whole season the and solutions that have doesn't of agents very incur do whole the the model buildout many training solution of

some. it doesn't to that But stress going still have test You're ramp. need for

of So, margin now it dynamics, on the the not us, and buildouts. that also kind technology it's as we a probably easier a easier BPO margin. at because for changes look But

higher revenue. out revenue and much that higher another for And source us much so, of we a -- things provide those margin will revenue think

why don't a right, clear, market be to don't want you going think think this if become to to does that partner, do I if But these reason and our provider this think I their we I cannibalizes is things, they're the the vote this -- share stronger And business. that. I do you

that's And so, not market to margin. of on layer form new very do more driven win top-line, higher really of you of what is to but reason very share you AI about strengthens, the that and then allows in optimistic this machine XXX% the it true digital I'm very, business a cannibalization

we're and think why speed is this our excited. I but that's we're position tech-led I tech-led flexibility positions position telling this who market That's I'm we well, in think are everybody a in I here And really just really beating world. and our speed as you matters love because as company, faster to the and

Ryan Potter

historical that's great. clarification reporting question. will a restated be GAAP results as or be report know -- GAAP with I just Yeah, provided I guess quarterly will the last one this basis, here, to future on you providing you might move quarters?

Bob Dechant

So, Ryan, you to board have introduce Taylor it's on guys I'll for and to you great great Taylor, connect. to and

So, Taylor. over to you,

Taylor Greenwald

for the question, thanks Yeah, Ryan.

at we and results 'XX, point, and the XX-K have obviously, GAAP issued so And for we've this full our 'XX, results. 'XX year

as We good the It's haven't about go fourth we'll the them something other we a than quarterly yet basis forward a think provided on quarter. It's question. in next quarter.

Ryan Potter

again. Thanks, it. Got

Bob Dechant

Great. Thanks, Ryan.

Operator

Thank you. [Operator Instructions] Our RBC. next question comes with from Matthew Roswell

proceed. may You

Matthew Roswell

afternoon. Good you. thank Yes,

pulling you're points should you like I that? the a of the offshore about ERP a of are 'XX shift basis calling -- implementation -- costs would would down. have I of it of increase. for guidance. the margin to think Could I looks XX terms quick kind Just FY on It bridge but question benefit, more expect in

that you. point could of basis that us kind margin? Thank XX -- to just in bridge you XX% So, increase

Bob Dechant

I on start right. but out, arms me are let his hose, Matthew, by Taylor so and I'll then Yeah, think got -- But real obviously this, bring instincts around this he's in your the fast. who's drinking fire exactly

That's for growth I'll the the tailwind markets. margin business in the We call, a have standpoint. good, on the business those continued great a and business our from of move to offshore what on

we chosen you to have Now, on in so invest workdays. what have HCM is the ERP and solutions,

sizable fairly that's -- a investment. there's So a

tech, initiatives big as right? on have ibex it putting We that's that investments also AI, the that think around the going theme -- we we're of have into, the This another marketing our we And on sales the ability to candidly, big is And continue a and on last our engine. win see investments business. stage. kind of piece to then, into the

investing will, if And keep we to the rates so our and and we're chances so, into that percentages, our we you there. feeding those because beast, win close like

and pluses minuses, we So, when that a look roughly XX do of as kind point improvement. at the you kind basis of

Taylor Greenwald

to that And manage right. we're carefully, going

make forward, As progression. to margin we we we continue sure go our want

So, pull that see ourselves back little of if see. we make we think bit we're getting sure the to on a investments, progression ahead we we'll want to margin

Matthew Roswell

Okay.

a So, implementation expense sort flowing the through? as treating I not it you're you're guess of one-time ERP

Taylor Greenwald

We are.

Matthew Roswell

much. very you Thank Okay.

Bob Dechant

Yeah, thanks, Matt.

Operator

One for you. Thank moment questions.

question next from Robert with Bamberger Our Baird. comes

proceed. may You

Robert Bamberger

talk and Yeah, QX, cadence? year? sort taking Should thanks my in question. the that pattern QX, like growth QX growth QX followed typical step-up and of sequential kind throughout you we could for then of by sequential revenue sequential the step-up Maybe in assume declines about

Bob Dechant

Robbie, thanks call and Yeah, joining for questions. your the

QX. And sizable sequentially, as QX growth. we drives as we But talk that QX, move trending. our fairly e-commerce the into we expect sequential have about can lot now, quarter, that where quarter December of -- get a a And we historically, we increase business so, is

of little this year, half a other this strong this and Now, it's kind work that QX of by to year be year, a I we're by kind the holiday end feel for the cetera. I a of peak think last pipeline have flatter, et little have. back in of the historically, bit QX, driven And going retail words, driven the soften. season, we What

those made quarters decisions for been and two And These delayed would would ago, starting. been pipeline deals typically quarters. decisions the and ramps have have two

it you what gains than ramped, the stronger curve finding the half sizable a bit made bringing you'll decisions And we're smooth we that time of in back the February think that are revenue being So September, October. in summer month look our little that January, those those year make into be and from by been. and get is those historicals have the this should

Robert Bamberger

from revenue GAAP, maybe on I about can anything what's revenues, the move imagine IFRS to sense. historically exactly don't on and just on should margin specifically talk and about IFRS from maybe Okay. Yeah, the but the side how makes just that side, talking forward? just going there? anything And about that happening moving happening maybe GAAP then we think you to then,

Taylor Greenwald

no. Yeah,

it not I right, think you're material. side, on revenue the was

material. revenue, not of I think we year full was nil, headwind it maybe in so the had the fourth and a XXX virtually for 'XX, on $XXX, quarter,

see of real up showing lease now showing rent Previously, you expense, as that's was the impact, lease the as up and where depreciation On most because accounting. the and the and adjusted EBITDA of side expense. interest expense change is in it's

in you've will 'XX results for full And going the in so, year continue 'XX and 'XX the K in forward. also restated you've seen and seen

was net of a adjusted not basis, warrants, material. we it's pulled mark-to-market the you net a earnings. that lot that income accounting for an of On remember, on volatility, there's so if on out The adjust GAAP that income, material, before, we because, and were

out. equity for the accounting we're smooth that on Now which warrants an basis,

will income forward. net going GAAP smoother the be So,

Robert Bamberger

or the sense. on somewhere Yeah, impacting changes around that cash new XXX% Should conversion, anything flow makes then, just accounting that? free would forward? that expect anything we a with And impact going that

Taylor Greenwald

the Nothing free material impacting cash flow.

Robert Bamberger

Perfect. thank Well, you, guys.

Taylor Greenwald

you. Thank

Bob Dechant

Great. Thanks Robbie. questions, your for

Operator

Dechant call turn over remarks. like now back I'd you. Thank the for to to closing Bob any

Bob Dechant

thanks, for Yeah, everybody, and Josh, the thanks, joining call.

best of Lastly, looking in I they equally team highlight an the that year. really was industry, delivering 'XX. you FY forward this the my all. exceptional. the to work we're want nothing They're and It strong short Thank to over and last just did

Operator

Thank concludes participating. you. you Thank for call. conference This today's

now disconnect. may You

IBEX Limited (IBEX) 13 Sep 232023 Q4 Earnings call transcript