Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, good morning. My name is Abby and I will be your conference operator today. At this time, I would like to welcome everyone to the Ebix Incorporated Annual Results Investor Conference Call. Today's conference is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions] [Operator

I Vice the President. And Darren over now Corporate Joseph, will you. conference turn to Thank

You begin. may

Darren Joseph

Thank you. Welcome results earning everyone to Ebix call. Incorporated's conference XXXX annual

Joining America, Ash Ebix and Ebix, results Robin the CFO, President, Sawhney; me Steve and and Hamil. Raina; North President, CEO, is Services Insurance EVP to discuss Chairman, annual

will we remarks, for our the call your questions. Following open

Now, let me quickly cover the safe harbor.

Ebix's performance and statements we our cash. including that our statements risks to in regarding from results forward-looking, innovation, and make among growth differ and actual long-term expected are Some those projected future today that forward-looking use our of the These of a the businesses, statements uncertainties the investments, number materially cause others, of might involve of statement.

reflect date events. or of statements forward-looking undertake to only Please statements release and or we revision light these our of information obligation presentation results of note the future to revise the these in no publicly forward-looking as this any opinions of that new

could SEC Additional our from risk may made results. in information contained of concerning factors detailed a today are description forward-looking affect cause actual in more that the those the to which statements list differ filings factors materially results our that

year full is issued of QX this the at www.ebix.com/webcast. Our also on web announcing the investor being morning. The press release XXXX XXXX was call this results and today audio webcast live

PM financials today. call www.ebix.com. investor website Ebix's what been this Eastern X:XX will has at the also look beyond and transcript available on the audio homepage The website can the Time Ebix for on be You our after provided in of text release this

first billion, This the fiscal an $X revenues million Fiscal year terms GAAP On to discuss $X.X X% approximately year $XXX million year grew the reporting company, year the of increase annual the quarter basis, over fiscal XXXX billion XXXX revenue time. than increased year. in has to a as currency been record XXXX $XXX.X for to or me in in for revenues XX.X% more Now, constant XXXX. with company revenue performance billion and the $X.XX let compared full of a revenues.

due growth as well year-over-year IT BPO growth in in company's and business, is core annuity as outsourced in business, to the platforms, exchange the XX India, company's geographies. life increase the and in services travel revenues and technologies The financial primarily exchange growth foreign businesses, e-learning business, originating nine of in our major and EbixCash

the Wellness U.S.-based in decline declines revenues the These Health Employee increases business, and by U.S. dollar a Consulting, card pre-paid were offset and EbixCash of of within revenue Exchange in Health XXXX. businesses, our primarily our besides on substantial in and strengthening year the effect the negative

as the but previous rate quarter. a to XXXX, of million QX the $XX.X to in strengthening QX year-over-year to effect and X% primarily decreased compared negative XXXX have basis, million decrease in in for X% higher dollar been compared QX constant million our the during revenue changes XXXX in increased currency $XXX.X quarter The due XXXX. U.S. the is exchange revenues to foreign would in substantial the year. of on the QX $XXX.X On revenues

Exchange currency worldwide increased growth In geographies decreased fourth XX% fourth the the in increased by XXXX, revenue X% major in quarter constant year-over-year a and revenue in Risk of but XXXX. the On a EbixCash of basis, Compliance currency on revenues year-over-year X% around XXXX, QX while revenue Solutions eight quarter grew constant basis, year-over-year had QX XX XXXX. year-over-year Insurance of X%, worldwide

Exchanges accounting Prepaid be and year the Gift our XXXX Ebix's revenues increased EbixCash of EbixCash Card Insurance channel, XX% to revenues. worldwide largest Exchanges, year-over-year Excluding revenues, fiscal XX%. including for by continue the

revenues. in XX the a fiscal XXXX year-over-year on constant major currency basis, of the nine geographies For growth year experienced

currency year the RCS by essentially while revenues to basis, EbixCash's currency basis. XX%, Exchange XXXX as XX% revenues. a worldwide fiscal flat a EbixCash X%, a on X% for constant to a over XX% Difficulty]. while revenues XXXX XX.X% XXXX, compared constant basis, compared constant in increased increased Exchange For fiscal Insurance revenues year-over-year as GAAP were year On revenues [Technical revenues grew year-over-year grew On the revenues RCS year currency XXXX XXXX. full On basis, increased XXXX Insurance grew revenues XXXX, by

I will now Steve. call the to turn over

Steven Hamil

quarter as fourth QX third against movements much experiencing exchange most the After 'XX on strengthened everyone XXXX, in Thanks, XXXX. call largest from Darren. The currencies of the quarterly the XXXX quarter knows. foreign this pretty U.S. eclipsed of impact dollar during negative actually

the our reported year reduced foreign respectively. and from million quarter movements fiscal the and XXXX, revenues impact exchange million fourth For $XX.X $XX.X by negative

and fiscal year been revenue eight past QX from the largest fiscal figures. and QX impacts Darren negative in for have quarterly years at XXXX year-to-date full movements the exchange has already foreign discussed and least the year Ebix.

numerical and basis a the of XXXX, businesses, and BPO IT The in which me driven the in year-over-year. on grew year-over-year Remittance revenue EbixCash's in XXX% Outward a drivers grew In Foreign XX% versus focus let Travel, results. on bit Exchange So, growth X.X% XXXX little services was XXXX. growth revenues India those by combined

XXX% growth revenue e-learning XXXX. EbixCash was in Our

X.X% Card was offset profit for that About Prepaid which Gift year-over-year XX% These in was for changes a decline X%. And in revenue the growth Australia India, on year And in rates. generates and half in will XX%. U.S. were strong less in of little our part Ebix. currency of business revenues decreased revenue XXXX. Latin based declined FX-related note, had than year-over-year by I America, the results growth

X% core While core declines revenue those and Annuity the growth our solid Exchanges. increased in Life Consulting, EHAE offset year-over-year, and Exchange revenues Health Life Annuity and our Exchange

QX, than million, QX operating million, an lower of 'XX in X% income operating of from Our XXXX operating XXXX million. $XX.X income that's $XX.X $XX.X X% and QX decrease income was

to and XX.X% rent our in XXXX build XXXX. increased India. decrease QX expenses marketing operating EbixCash Our QX primarily brand in in year-over-year in and primarily QX costs margin to both as incremental well income compares XX.X% in to personnel relates to expense, and India, continue of as in The sales XX.X% operating

$X.X Employee-related expenses year-over-year XXXX, from continues airports million benefits salary while international QX ports subside. versus $X.X entry million locations COVID-XX the for to rent in QX reopen of XXXX, QX the Company impacts and and expense in as XXXX increased negative as increased

In XXXX. $X.X to India, our over marketing as XXXX sales increased by in compared and expenses million QX QX

operating impact XXXX of margin quarter XXXX. business, Gift of QX to Excluding XX.X%, in sequential XX.X% the in was QX Prepaid the QX XXXX XX.X% compares which the Card and

in increase of total, constant was an basis, X.X%. income XXXX, year-over-year by in operating $XXX on our full a $XXX.X X% But, For fiscal the year our year million income currency XXXX. for grew million operating versus XXXX, approximately

the million had capital development the and cash paid, cash million and combined our expended million period $XX million the following payments. credit dividend expenditures During major of a on interest $X.X year-to-date million software for corporate costs, income-related on for of reduce globally, XXXX, $XX.X uses: $XX.X to outstanding used taxes we facility, $XX.X paid principal

$XXX.X investments, liquidity cash, $XXX.X which of had as company The restricted XXXX short-term on XXst, includes December million hand at and XX-XX-XX. million versus -- cash of cash which equivalent,

compare our the oversight under in the to want principal of at $XX.X on $X.X of of Company loan. agent an that, credit million, million under December However, term Because facility account principal taken date, repayments repayment was would our note had that due XXXX, which interest affected bank, on from and I XX, was XX-XX-XX until have January that payment hand million of and $XXX.X not $XXX.X at business first Thus, at that as XXXX. would this the the million our as to XX-XX-XXXX. of our day XX-XX-XX liquidity been payment the

principal Our just XXXX would part million total will XXXX. $X December on $X The XX, lower March been credit been of debt that mentioned, XXXX extension million facility we the the debt And in company and mature on debt our $XXX.X have paid also XX-XX-XX an that May $XX $X.X reduction February in down of total million I was XXXX XX, $XXX.X of from under million, processed our debt XX-XX-XX. timely. at had as million repay of as principal of additional million facility as payment on of a recent to of

covenant contains covenant. covenants, coverage net current two corporate charge leverage fixed a credit facility Our financial and consolidated a

Our consolidated XX-XX-XX versus at X.X was ratio XX-XX-XX. X.X at times times approximately net leverage

we X.X So, approximately XXXX, times. delevered during

consolidated XX-XX-XX net times. leverage was at X.X covenant Our

we were So, under comfortably that covenant level.

Our our facility that provide are financial in facility level address X.X versus fixed X.XX XX-XX-XX We to times. update covenant the maturity XXXX remarks. times credit will were in ratio of on at approximately charge XX-XX-XX. impending ongoing coverage during his the credit was of the efforts a further Robin with our covenants May compliance at

structure pursue as rate that the of adjusted appreciative tenure We EBITDA are are banks to globally continue into pandemic. a investors. both from and facility syndicate stress, capital our that inflation Ebix oriented in a working we the continues longer significant despite economic of credit COVID-XX refinancing to global the with and is us rising lingering environment including impacts more with of generate and

we comp levels In a XXXX XXXX, to levels. increase of over impacted continuing non-cash towards. that's generated stock million or goal move expense, EBITDA of operating million plus is company X% are pre-COVID-XX an the negatively $X.X businesses $XXX.X in Reaching the

While levels. XXXX beginning we in businesses saw remained pre-COVID-XX late these rebound of depressed QX most in from a in XXXX, revenues activity

quarter QX businesses at which the to prior XXXX remittance, and beginning on lower the revenues impact foreign last e-learning travel, XXXX XX% QX negative exchange, from from financial the Company. technologies, than our were COVID-XX revenues, of is EbixCash

returning business pre-COVID-XX XX% XXXX. to lower revenues XXXX, -- we those return in in progress XXXX However, levels XXXX goal revenues. businesses pre-XX ago, to for made our these were is early lines these just and late significant pre-COVID-XX operating year to or In approximately QX one levels than quarterly

the important obtained a stakeholders. coming continue address value structure maturity, to all years clear provide strong most While hurdles have the to facility we of to over and that market our the changing to customers we positions capital to corporate have long-term service to credit our believe our that in Company will the lead we notably, of successful will some through months,

to for over XX,XXX the I Ebix folks thank hard define to Our that day employees work to every that customers and deliver we marketplaces our the really serve. want

year Finally, XX-K our XXXX and and our American filed the Insurance today, fiscal Ash over for I on President his to of operations. will turn North quarter the to fourth be later like Form call Ebix's would Sawhney, remarks businesses, now

Ash Sawhney

Thank as of year of to year revenue The Steve. talk compared our XXXX North compared to flat I to America. business you, QX revenue XXXX, full was XXXX in now Certification business XXXX American full by grew North Medical will XXXX about the QX was Exchange our cyclical XXXX compared up around and Exchanges. the enabled the for analysis increase X% our Darren, a Annuity of was XXXX for and QX while strong Life business. and On Insurance relatively XXXX. America and X% the basis, performance a by North in worldwide This

to our in up revenue XXXX, roughly core our The Health continued steady Annuity, largely Insurance XXXX. Life XXXX, of Certification In down Exchanges compared of The on constitutes division. Exchange, group grow in of the growth. show XX% aggregate was to in Property the XX% were up QX, QX and which Medical down aggregate. sequentially to account Casualty, but This and quarter in X.X% QX was revenue, in X% over softening same XX%

on in quarter The a continued Life a same all to and more up the underwriting 'XX, provide QX and order X% and which Annuity our and largest to in run. compared full is of of X% compared the year The CRM, various Exchange, XXXX units. up up were now will XXXX. Life illustration, Annuity its including granular Exchanges, basis entry, exchanges our QX exchanges to business strong Annuity I QX, in comparing analysis X%

revenue now record, added in 'XX QX highest was year up year on 'XX, the up exceeds Revenues and QX. These and XXXX the Approximately came processed XXXX. from and all half the from highest QX on record. the XX full carriers was platform were National in to in basis, X% added and transactions now the was XXXX on over other our total $XX list the the client our increased past from came of exceeded were to 'XX up highest was QX XXX,XXX platform the of We XX. clients the half the growth compared a month through on record exceeds Ohio of record, in revenue business premiums Total existing Annuity number customers new XX% XXXX processed sequentially, months. and November CNO XX%. quarter Total to numbers. billion

processed X% Life Our of for QX QX the The and of comprised premiums. over up order Life up billion illustration, collectively XXX,XXX. Exchanges million number X.X were collectively CRM platforms platforms year. number Life of XXXX $XX numbers. We X% entry, compared illustrations exceeds all also carriers ran were The on and to in XX and our various in the record on and million These processed the distributors over over XXX Life exceeds applications. now platform in

was The underwriting flat to in year QX. QX sorry, down compared business the compared basis, was in QX On to division Q a -- X%. full

constraints are starting signs division seeing resource from the discussed We of to the recover previously.

have which will the Bermuda the We to capabilities in processing a future. provide annuities, platform, revenue capabilities several processing These for new module, added include businesses. for and incremental reinsurance and Singapore streams

managing submitting their mid-tier embarked getting day-to-day segment. we focus updates, as communication, new business reposition the BGA our retail and on a the conducting gateway the customer we platform and for increased and as CRM business, segment, the all We restructure to an conduct to status data division. managing year, repositioned commissions, More in on other effort Last case functions. particularly market Ebix specifically, such one-stop advisors

all tightly including The platform is now integrated illustration, order tools, entry. quoting, and Ebix with

In a addition, accessible vast XX integration ecosystem overs the enabling systems, a gateway. platform -- single through XX provides third-party with

in turnaround see reduced up a this the same Retail were up was X% to XX% XXXX. are and attrition Revenue period. business. compared in were during 'XX starting We rates to XX% by sales

over highest group ever this 'XX, Benefit has yearly basis over quarterly high business year QX servicing with large generate revenue. continues business XX,XXX largely to before and up X% million revenue year the in in of the over terms was covering was QX flat the to business QX and compared was Our recorded. lives. a revenue This Administration left Health X.X%, payor delivering groups quarter watermark XX full employer on customers The steady sequentially same a X down in of because

onboard this uptick are rebound subscription to an which Aon -- will in of year, on our We revenue. QX to in provide track

first cyclical Medical as Our QX down was to to This of was the the Oakstone Compared expected This QX to QX. Certification in QX a the compared XX% changing approximately the business the bundled year the lifecycle the its cycle. derives dynamics of XXXX. half division that incentives was XX%. XX% cycle. of Card a of partly which subscription the with happens the to Gift half and of due the decline are up 'XX, partly business in audio life offers full That typically sequentially life third product gets revenue second to in was content of decline in due its spike in revenue product be

initiatives medical products We over also physicians to strong XX-plus working service specialties. Oakstone capabilities. a remains of history. several are younger continuing in and out years medical targeting space We increase the XX XX revenue, physicians of in mobile-enabled towards brand with education and every new dental on two including adding

was Brigham the such consulting compared for leading to business down full X% up Cleveland Our XX QX content The John Clinic, with medical Medical, Women, QX as and created year. is other X% in Dana-Farber, and Hopkins, Harvard partnership institutions. such and institutions in

in of program services new Exchange we Packaged support, product and who now outlined and the to was now consulting under service National, will our Accelerated testing, be these we training go-to-market, customers. new be the existing for are receiving called coming including Ohio of design, customers. strategy, AGM, 'XX, several QX offer in services and will in CNO our our a signed-on As and onboarding packaging QX Exchange of quarters. availing was clients Most services

contracts signed Equitable, also Symetra, QX. Baird We with RW in and new

main new lines the in units, one our was of smallest vertical release roughly to group. QX, this RiskEnvision the In out X% product, product 'XX of we of in compared business, a down 'XX. P&C the business rolled Our

and healthy us steady to with QX, over a down sorry, Fortune full business customers, business We to history, year a a the are in performer expect including -- XXX XXX On us. XXXX. year The seeing This up over XX for of X%. QX in be the Risk a to continues basis, companies. 'XX Compliance business a growth serving largest show pipeline which XX was was quarter for strong X% was compared QX

we environment a tailwind of interest for rates new number the market, high increasing the is business. forward, to The Annuities. our follows: both favorable Annuity This is our of such several which about are and Looking Several The strong we're for optimistic as contribute units are path favorable core providing factors these also bringing to the on. optimism macroeconomic our as are outlined the feel to industry. current trends transactions entrants

We are in XXXX. continuing seeing uptick when an this report we on 'XX into the More QX of months earnings. our transactions early

industry. to is cool our market jobs continuing in off The

the marked and filling few have seen a in drop in attrition months, Over off backlog also past we our seen have a progress rates.

Exchange limitations our in organizations delivery which XXXX. product organized reorganized also We had We previously line redundancies. by and division and were

aligned We client development, digital and This and focus with that including will of encompass customer servicing selling a comprehensive products. we ourselves centralized strategy have as solutions production and see now structure operating organization, ourselves several important be support. services, our product

and are our existing and our excited allows their service our technology optimizes better with about penetration our for newly needs. in are them of setup sales fit our We the organization. months. We experts viewed the hired XXXX, the helping us right clients of These as serve majority client rebuilt hired This for products last by the XX sales new find partners to our within fully solutionists base. customers within organization client organization having a sales been

of positive past and healthy. services pipeline already by the The going of improved has customers is into more seeing products number XXXX XX% our in year. are results. The or We using free

advisor that This and legacy, subsystems selling Life significantly policy. where-in advisor experience unify to of Exchange cycle advanced the processing. is designed It with and Annuity the -- has Super well-known multiple forefront in the industry the Highway fairly to is Super is launching Highway, new innovation. that the the and the Ebix at selling its a selling In Ebix enhance most is support a has product across selling products. been disjointed, it's Annuities of Life always through across process navigate fact to life line

aided issuance, will artificial will intelligence, to a Super machine policy submission, streamlined the order research, experience, able problem. quoting, Highway language illustration, customer by activity, analysis, post-issue From natural unified and learning, experience policy advisor navigate user that will through maintenance, needs processing. be be data-driven that and solve product user guided an and

withdrawals, Highway believe, changes, will recent the in at and The was annuity AMP. as post-issue unveiled Ebix Exposition the a of increased We market Maintenance This of expand. cost transfers, sales asset expansion Ebix need adoption called Platform, Annuity fund Super increase considerably general non-financial the already policy rebalancing. servicing. Orlando. annuities called We transactions for as such policy the the AMP to financial for developed dollar the and averaging, has both includes solution believe continues in also

business. about are our Overall, for we excited outlook the North American

in a As some to products a be brace stems natural that America resilient. economic an climate. companies for provide our of continue array will hedge collectively North business any environment, wide This from economic uncertain in

also banks, of of institutions, top top which insurance several dozens strength medical of the XXX includes companies founded of XXs and Our of thousands set is customers, and advisors, diverse very Fortune a companies. on hundreds of

business Our of model. which the pricing recurring nature, solidity adds our is largely to in model

responsibility take the all who we we mindful some seriously. hard running the Ebix exchanges This to is play very employees a part grateful largest in work to it I'm all important happen. are the in make We of industry. the of

his comments. to will I Robin for it pass along now

Robin Raina

This $X.XX for record approximately revenues. the Ebix Good terms revenue, year of in billion in with clocking been morning. GAAP Company has a

things growth. growth. basis, of stand of as For currency out performance. with Constant year-over-year the currency $X.X constant revenues me, year-over-year annual few company channels all three On XX.X% a regards the billion a showed

a growth constant XXXX. currency currency major EbixCash revenues increased On of in compared On by the experienced revenues. revenues X% year-over-year 'XX. constant revenues by Constant XX% constant Insurance in basis, geographies Exchange RCS to a On nine a basis, 'XX XX% currency versus increased as increased year-over-year. basis, currency XX

by plus company growth. XXXX, levels. stock by on $X.X perspective or of non-cash In and numbers EbixCash XXXX, grown XXXX, business up over the million XXX%. grown to compare an have get XXXX expense, GAAP of generated the overall Between GAAP XXXX XXXX numbers year compensation have $XXX.X the EBITDA a and fiscal Between XXXX grown increase XX%. -- revenues I X% revenues million XXXX worldwide to have

international While Indonesia the comparing year-over-year Philippines XX%. with year-over-year Latin US numbers operations, by XXXX XX%. few grew grew XX%. performance especially Singapore year-over-year fiscal noteworthy. was by America East XXX%. 'XX fiscal to addition grew year-over-year year by grew year-over-year year XX%. India, by and numbers, of in grew by Middle a

revenues X% regards higher note. QX few As year-over-year quarterly On QX increased eight foreign XX quarter, major million a performance, the been for would of currency $XX.X a during in worldwide and currency quarter. 'XX. On basis, growth 'XX geographies in QX exchange the constant the things have but the year-over-year had rate to year-over-year revenue a basis, changes 'XX constant

Exchanges worldwide revenue Compliance Solutions' year-over-year in Insurance XX% X% on Risk the constant 'XX. 'XX. revenue In a currency increased in currency quarter fourth year-over-year constant EbixCash of the currency of quarter constant basis. X% fourth increased QX 'XX, increased

by EbixCash Prepaid increased the revenues revenues, Excluding Card XX%. year-over-year Gift

flow million in flow in investments, million as Company of -- restricted year performance $XX.X reporting the million pleased and the operating of 'XX. We started 'XX. cash also of the $XXX.X short-term fourth equivalents, the cash, of quarter, cash with XX, the operating I'm $XXX December with cash quarter with of cash

few key million bank. cash after cash million XX, million cash $XX.X 'XX. short-term of million reduce facility, software paid, expended interest net equivalents, investments, 'XX income-related outstanding and for combined restricted we cash used September principal a the still $XXX.X of was of We of XX, capital by $XX.X the million cumulatively company as areas, taxes dividend had a million to of after paid million accounting credit as million payments. And just late the the spent for and expenditures $XX.X $XX $XX.X This corporate December on cash, for globally, additional 'XX, on in had million withdrawal costs, an $X.X $XX.X on development our $XXX.X and

net XX, we And cash as $XXX.X had of December still million. of 'XX,

All refinancing generation agreements speak of confidentiality present ability front, we limited to of are Board -- entities Directors by alternatives the advisors, company. of the the and as banks financial and Management the tight -- refinancing outside to I At confidence with and with continues to company in the facility. company time to with legal syndicate any to its minute, which on Company's that speaks the order credit of abilities refinance all address cash the pursue have involved. the the cooperation XXXX debt give governed work to in the facility, of continue extended that to May 'XX will to credit

company possible. credit largely the fully is while Rest as or assured multiple is The are as to that facility refinanced it options exploring that that we ensure wholly quickly has that aware our the and cost operating continues interest the by high and negatively exercise. of associated strong, getting refinancing legal associated to advisory net our bank be and extension with affected is income income fees

also EbixCash possible options. that carried substantially. a the with are our the expected We is Jefferies adviser, it reduce interest on cost number In to our IPO working is out meanwhile, financial once we successfully, of believe

goal best interest structure remains of a that in seek Our to stakeholders. the all is our of

worldwide. thriving is an healthy business Our

on non-operating like presently metrics associated some senior ahead the are our cost are term, and operating management interest cost long resolving the the incurring that opportunity we we advisors, about In of of the the strong us. non-recurring and are with refinancing. focused convinced Our (ph) that sector of on metrics

is and further refinancing but a priority in that -- to is We towards about to for greatness, it. plan client grow income XXXX ultimate our consistency. isn't structure short-term it's Success operating the about our itself and in get first always to client have extraneous handle that and and income have plan would cost set ultimately costs, debt We working place the are to then maximization. reduce like a in

deliver terms has revenue to that greatness metrics, consistency Ebix, are and be of of to continue years consistency. proven and can this At of to After it cohort strive from committed growth we operating proud consistent foundations in completely growth results achieving Ebix will that believers of. we is and other [indiscernible] the XX on in we firm

We our capital are to value structure a maximizes creating stockholders. that committed thus for

outstanding always, in contributing an as partners, to fiscal and XXXX. I closing, In us want for our their employees trust for our thank our and customers, continued to

over With questions. now the operator Thank call for that it I up the and to open pass you. will

Operator

Thank Instructions] you. take Jeff with Rhee [Operator will question is We first Craig-Hallum. our Van from

open. Your line is

Jeff Van Rhee

expect Great. about, Ebix Thanks there for provide with shareholders, shareholders on talking taking to few what is done? credit Was in XX. that respect strategic this before communication a respect evolves? -- And lines the the there agreement, a to the question. with Robin, can hear plan or to to March as with is process

Robin Raina

didn't Can to Jeff, repeat rest assured deadline, first of question. second all, you about that? the respect yes, I your with it. meaning get we absolutely time will be XXth in please

Jeff Van Rhee

shareholders that whether Board, creditors, communication in wide to options, from are hear credit on? know for through what all like various a seemingly does for it to provided the and evaluated shareholder the would parts in for I XX to the in they're months plan you just three, was range, going to that presented that, going you they first today. the going on what's The communication, of business, And the terms next options not of other imagine look about what presumably I to it one terms then very expect? strategic mean way or what can six, that was, you all before etc., what but they or selling is

Robin Raina

as know that, we rules. next May of the Having deadline, is goal is our transparent -- you Well, that with said within as May to to XX our -- our extension have job is still be possible shareholders our our we XX. as

of we the us that point are on definitely path time. shareholders from to undertake Our going hear at

we I wouldn't because right to between said and on, governed me are to about be difficult extremely give the speak different options, working it we talk, prudent or possible we, simply in me like now lay then, to are that for able I think to and it's my confidentiality provisions be things for -- all all by the it. out

Jeff Van Rhee

On [Multiple Speakers] the

Steven Hamil

Steve Jeff. Hi, is This Yeah. Hamil.

bank days strategic delivered XX:XX will Just a through sure has be will that be finalized AM, advisers to not few delivered totally XXX% a to plan our and our to as ago it today. was clear, that bank Whether of the I'm be group delivered been group.

it them. will yes, to be So delivered

Jeff Van Rhee

used many -- since be to It's the But outlier. anywhere watching the forward timing, a ways Okay. with things that the about I investors The filing, clearly, pace near the moving? to me and I to tied be an SEBI comment talking overall but without this. the appears year and this your wondering not move hands a kind They've to any that. would understanding at Great. is instance, give are appreciate to you're then exact across specific IPO, in about your not market of to Ebix they relevant respect mean, mess. process SEBI why is board. going realize struggled observations to I on for

Robin Raina

as month a get sooner have of it, gone you later. -- we're Having and in hope At time, lot rather it's of really us -- that, some to that comment why market, turmoil point, Indian very especially. for markets and hard I half isn't we Look, the we couldn't same on the going that a would SEBI should approval said get I at believe some know, than through last moving. to comment. stock

to IPOs there's it do And perspective than from has that we right. that, a delay sooner would in gotten approval I in we'd get believe delayed an and a could something that SEBI, going like that approval the lot with -- be that, to happening are -- have Because India stuff later. said to of we of having from lot terms of, would rather

Our said as their on I've geared ready bankers, it, ready earlier, so fully attempts, all bankers five up, are to on. to launch are and pounce marketing

something give hear -- SEBI. for hear to we -- anytime, we from could you something it's and it happen until you impossible we me Jeff, So, until back, tell

Jeff Van Rhee

has and COVID then would share gained, question about depressed questions gained, it share the lost other North same business, a then, held, lot EbixCash ask wise, between but pre-COVID businesses, business, the say American or the of lost, you've North the Two EbixCash held I Okay. obviously market share? since break I'd you separately up American or and if

Robin Raina

you, We market Well, tell its by it have market was in in smaller players segment negativity, of that with all became absolutely share ultimately just gained died to every the us, we the operate can because COVID in. wayside. absolutely some opportunity for -- became with I an EbixCash, almost -- respect the we --

COVID done walk could you ForEx, remittance, you meaning, of at, see we've our to well if that through, going of by percentage go Meaning with and -- we you share the started you're you number started -- whether quite just have one take we look we whether in travel, the count one actually the I airports them before market, -- away. going have terms when in

meaning virtually back, came at we of for of to the one we what we Forex just last keeps didn't airports you had airport the have one in four largest we a almost that three, the of by day, look have the days had, days. us the now, If airports increasing the approval, actually number number few and we

market our size. port remittance I increased. where in or share, what And that, sales, whether the similar educational on we said airport share market or market a provisions function our and overall is corporate about so share on in Forex has market of It's could go talk substantially our of share terms Having market on. our go

by size market depressed is size overall gaining what the and yes. and is, market share gets respect that to COVID, with present is, resounding at market answer the we are question the an look absolute you the in If now

we into announcing kept I in where deals we hopefully could area more exchange and will announce the in go on. have You and deals bus days know, coming so

So, to -- is lot -- there have is and shown revenues of with respect reflected that gets positive the in growth there we that momentum in a it EbixCash.

comment US you Ash, to want business? the on of side the

Ash Sawhney

Certainly.

different the at market. would America, at the to So, of look sub-segments Jeff, North looking you have

example, Life based increased we and say, the have So, that the as of through market an are last transactions over certainly XX platforms. I Annuity at our would our the look months that way Exchanges, number on going and share would is

done in on years last probably in five more XX have added We to months distributors the more the and than carriers the XX platform that. we months last have before

the of us. And is the flat we've significant which key of market a international on fairly a health deal shares. number added our like On adding quite platform, we've driver In I carriers increasing other division, but increased of we the -- side our significantly. divisions, would big platform ultimately, the it's for life a the terms specifically, say, broker that's relatively probably in some to are

subscription So that, itself increase we also that believe revenue. our will

other or a Jeff. represent other business, flat a as areas as our part more it's In areas business, our smaller certain much slight businesses P&C decline. such now of These overall such wellness, less to

So solid. core, all the as I really defined which business, is health our businesses are these our fairly life, focus annuities, are the that

Jeff Van Rhee

helpful. That's Okay.

Robin Raina

Yeah, sorry.

core add probably Ash, term of Speakers] business business as RCS the certificate [Multiple I a would in

Ash Sawhney

with We the I And exactly. XXX like companies. steady. the it Yes, XX largest RCS do of business, business over stayed Fortune said,

keep place ourselves a we industry. to the continued pretty So have significant for in

a Same are Oakstone. with well-recognized very We brand.

us one We units. CME we key solid bit, to share the is the business up players these is, business. for a of some larger are it's very in but to expect a and down or probably Market continue business point little of grow the probably

Jeff Van Rhee

revenues drag EHAE Robin how And on want a you to of a years? the bit couple last a and add or been and color of Ash, venture joint around might little that's the for

Robin Raina

Yeah.

the the talked at in sometimes you so previous business we and meaning when look overall and I TPA cumulative mainly, EHAE fallen, basically, the about when -- in revenue at a has think, It's revenue. our call. -- so you I've TPA revenues, business, look it's it's

in gets increases show EHAE fall of some offset other reflected the and in kept know, You Ash that revenue we that it the about. talking that some of businesses the

that would TPA business day in went they us decided the trying figure actively away bit pain also a as obviously actually negative which our one where, that was is joint And a know, one to a have losses are out, you for just we we reasons from profitability, of one where business our a many of this that terms and bit main has to a be are basically -- saying It bit of to and businesses another one that on of of lose business there, it largest any caused working now venture out. out has and partner we -- Ebix is to out we are clients in revenues. of of business, one a figure we money way and completely that were trying where one health basically there get the

candidly make and the -- completely business turn, JV by partner have contribute of that JV We're to a get to some fact us lot not trying and in client, of money. of that to ways -- hindered bit obligation there out who we a bit cost is it actually we we out a figure out, things, which business and can have much and actually do is to actually able lot a that, partner means can better. if we our that We've are attached

it, to for is see a bit right now. but fairly a terms it's right gain now. minuscule there us Fairly business there profitability, of So, is room how I us small in of for

Jeff Van Rhee

specific the couple it's $X the GAAP model becomes estimate versus look operating income, million million questions. net Last me, -- of -- that a comes a my The miss Okay. at $X from below about as about line. I and

the quarter, can this So interest that and the going taxes. two expense big leaves, model forward other I think, the expense variance out primarily were interest I then

So year think questions, in 'XX well? specifically two how then should specific about and we QX, the as but in taxes

trailing renting touched And persist. things on But that few like really mean, will seem I it. running over up also any out periods, here you a it's then considerably obviously, G&A, they fab million you or If printed actual this taxes that's wondering, the of there, run in going rate G&A. right really level G&A and I'm forward? $XX assume million So to non-GAAP QX. $XX questions if two called

Robin Raina

Yeah.

will about want [Multiple yeah, to I Speakers] you G&A? talk Steve, So,

Steven Hamil

[Multiple Speakers]

Robin Raina

And ahead. do. Go it. Please to do. please Yes, I'll add

Steven Hamil

we So, rate Jeff, beginning an through for COVID. to interest rate our had increased as rising borrowing at spreads do was X% XXXX, the environment, of amendment

Our borrowing pretty terribly. increased rate has

X.X%. was borrowing of So X.X%. our end our if XXXX, you at of rate the end rate look At borrowing the XXXX, was

from we've rate. result X.X% borrowing and a to rate an gone in is rates borrowing had XX% today, as as So X% of in bit to just increase two we increase in had And under persist our continued the years, little spread. LIBOR largely our of a

probably different that group of having were as bank deal refinanced into banks if deferred payments by million but in the $X.X the we In associated you Additionally, not XXXX, dates. measurement to capitalized we to expense a fees spent that $X.XX financing and these XXXX. door with certain XXXX, had of probably costs, out was were those about, million during the amortized think couple

of the fees. quarter number plus was fourth in that those expense probably And to one-time about related $XXX,XXX interest

been we've a rate to [Multiple group. an of out fees and related tax the So spreads, hit pockets bank environment, increased in by and rising Speakers] a our From increase standpoint

Robin Raina

So, Jeff.

Steven Hamil

tax a standpoint... From

Robin Raina

ahead. ahead, Go go

Sorry.

Steven Hamil

to point effective during caused related a there's Really to X% big that is generated included income starting But XX% been our just different this tax From foreign-related jurisdictions couple calculation. for 'XX. XXXX. standpoint, GILTI of a have tax book that of rate one to Jeff, pre-tax to and income 'XX wasn't materially the higher from has tax first amount go and the tax things

that taxable item. one by temporary your close around, there And and business million, expense to year-over-year expense numbers, limits that Trump differential interest provision is about but then increased deduction to I'm XXXX of from tax your XX% our the increased XXXX in had is adjusted income section differences XXXJ not absolute act, $X taxable going given amount one and just the to really second interest quote the a it's income which of we've

rate of X% So those kind the ones from items XX%. effective increasing tax the two were two contributed to biggest that to

Jeff Van Rhee

at mean, would I we seem change. to is normalize Tax it So would suggest going Act doesn't that rate? that the then, like

the So about is how think that to forward? rate -- going

Robin Raina

want you me to Steve, that? answer

Steven Hamil

ahead, Robin. Go Yeah.

Robin Raina

okay. Yes. So,

tax would terms be can that go I'll that, both. Steve in tax we year. this and So let somewhere in I'll a rate. talked me for but kind it, I be to the add through of for what to about There basically, are to tax X% rates. to reasons talk answer rate but X% number of of the expect in I bracket about digits single interest expect the just the

was that interest have we long-term. Steve have all is cost to of have question banks this to about in you the the the we and then look you, model our you back. of with of through short-term the forward, have, you second is think how costs there obviously, and yours already you -- short meaning, we know, that talked there we way -- until In is when is I talked term, how terms The already, do look paid interest it at clearly rates, something

we say, on all the refinance, our let's now Now have There capital simple we question To IPO structure we you even are if depends launched or structures. capital chosen. IPO. successful a it -- it becomes, a give example, we that the had we had

money -- through low, relatively because interest have Now, which our we net bank, keep and interest earning any that are have simply way, going with in to you be cost doesn't costs a your associated money raised costs. whether would equity it, meaning, in of any pay in net in a substantial net you pay debt, whether terms it back -- of to reduction reduction reduce terms that use results in pretty ultimately or -- interest

can IPO our lot or to IPO get can a it -- done, all costs done. our get down So on of dramatically. we will we soon a comes -- If long-term how basis meaning our these reduce

of to presently cost doing. the said make option And being you in talked we and have the already our and -- exactly incurred. the that, having that strive have that's we're delivered obviously to meanwhile. that, we in you banks there sure, Steve refinance what have pay we Now what for interest through out for meanwhile, are And every we

Jeff Van Rhee

Yeah. the Fair Thanks for enough. it. taking Got questions.

Robin Raina

sir. you, Thank

Operator

Singular Sakai We'll with take Research. our question Chris next from

is open. line Your

Christopher Sakai

the a increase annuity the just can and as expect carriers in the on in I had far XXXX? question Hi. exchange. as we drivers distributors What Yes. what XXXX in were main and

Robin Raina

ahead. go please Ash,

Ash Sawhney

that. Sure. Yeah. I can take

interest There's in climate now, obviously, rates, paying that higher industry. the the right are big high-interest economic is a the because more happening factor, with rates. So annuities especially sales annuity

in. carriers that Some annuity were are space more in previously jumping not the

over industry. factor Morgan, to is big onboarding the the largest last, JP I'd months of one months of in the say us annuity who for the XX Another was players XX

carrier that like their bring the when have participating somebody to platform, exchange. all the start onto And on partners you

the So, in. the volume across entrants I more And existing of other from from we're outlined about higher volumes half And, customers. board, growth half seeing the seeing also entrants. economic because come new climate, came from like the we're actually these of new

rates QX. long year, in we to In of months two continue stay healthy QX saw expect say, fairly growth for that we we have pattern fact interest are, the would as terms in we're see first where as see XXXX, they I going of same continued this the and to the to

the there. are So way up volumes

Robin Raina

add to want said. I what Ash Chris, So, to

that many to when to happened has in it dominance, is distributor field. grow this and on dominance I you, allowed at say, has large who continued if platform, every share, there market is our effect continued What in networking this reasons. not, leads dominance, a there We've the is of it distributors also let's has market who on that area. some a competitors' come reason pivoting to larger to your share for grow leads is use think, ABC, may point. for kind be you to And a might we're distributor done what to to word the that of that now for have our I'm

the have you address. which out to all the is they want network there, networks One, sitting

simply we second side, afford which appetite -- and the because that the cutting-edge do we to we have this a development, Since design stream. they revenue all have don't have smaller have a that greatest of player, because can volumes, they afford share don't market don't volume. the the the to cannot products the smaller has who latest do, have On they

in. put it's impossible costs those them kind of So for to

approaching where you the very the year, of we and get will I to some are in disappointed net seeing So is of major a than like to is that the in result phenomenon be our reason see candidly we that major one that some people approach would -- happening. competition point you you rather the to would it. that next I don't come if we that of that exchanges see we every them, you. clients of to us, see and reason there has have Thank say believe some to to and

Christopher Sakai

what decline then of in the things, the prepaid were answer. Okay. for there? what Thanks side -- reasoning the for And that was card

Robin Raina

was have things to dramatically card people there the in to growth big size, mainly we Look happened and the was a what market increased. business prepaid -- there was look, touch digitization didn't during because COVID, see and -- want pretty you it's

size of was this has the process So terms set-in market. a normal that the of in

all, -- an for was absolute of the First during cards COVID. prepaid there rush there's

So once of thing reduced the that bit. COVID past, rush became a a little

commissions business. Secondly, candidly, the it with has with to associated that do

So that business it shared when model. -- we we do now, that of our business, part if are have sub-agents depends our commissions all we with and on

the prepared agents business like lot and sub-agents is continue within profitable reason will our most a in and well growth, the to model, because higher We that to to segment this and that's can we topline pass our we're and a profitability. them simply that see part It's can of model on to not willing the chose share in we how that we're run gives that their you commission to do revenue are live and decided we're competition out to we just there their it lot that. do, larger we business for of reporting. a prepaid of And businesses to business we than that of commission, going to do If we to see not what we are this prepared what with going be have business. card -- business

Steven Hamil

also just me add... Let

Christopher Sakai

Okay.

Steven Hamil

million, up money from or this all much -- Add billion how cash generating? dynamics a CFO's me and Honestly, care right? million, card gift over CFO can some we my EBITDA want Robin's much How is business, degree $XXX it's standpoint. generator same never profit. flow do generating? this I India, income I it are So some just to we sales or concern add the for the business $XXX the competitive the of really way doesn't a -- as don't material I biggest the business are (ph) us, whether because the -- let perspective generate $XXX caught in investors analyst are get material making, of card much not prepaid income in we community How we to net okay? in

Robin Raina

are the Chris, So, bus we with that an business, government the system these the -- I'll recent ticket trying players a we deploying what bus, wherein profitable an using example and to prepaid are products: technology. in card every card are -- largest we One Bengal using West have is that sold, reach smart to trying we one recent of give do of West Bengal are using prepaid we roadways providing how one you in manner. technology, as a and happening -- now very the every non-banking of where area example is, also now basically we're we exchange that, expands to our to basically agreement the in wherein gets a

consumer, the buses the the is, traveling their department on prices What them we on. and gets we that reason a result government for a these to it plus cards have Bengal the discount, decided now there transport also digital to discount start with basically offer EbixCash prepaid are net people and consumers because using and example use so West ability all gives slight to some with did, for discount, worked who for the in to the card, a prepaid simply introduce those you on bus in prepaid it card it

just so were -- we And West able Bengal ourselves is in to one position opportunity.

it presently are deploying We across.

the states convince We do all deploy we XX are to business trying basically this. where to

if our to Pakistan out good dole state are whether look -- to Uttar example at the lot India, is through UP now government you they program state which in and countries largest of the of lot India to of or neighboring there, the take out population -- the to month -- a we Another anybody there, underprivileged widows, Pradesh some what do Pradesh, is, metrics every is out that government distributes of and the it's the actually. largest trying Uttar a money

to their We basis with is out, -- are that biometrics, these that into of how it any card so trying trying when and doled picture their a having can money all working used? to that consumer's the top the comparing -- another issued a with that it they now bank, their EbixCash coming out, imprints, that deploy government cards on card, money done really it the thumb on be track picture, comparing whereby was through back do we're economy from not? doled that Is or is the that money would of the

to adding prepaid the examples So of are card that we with kind respect of clients those are business. the now

terms. this So kind we -- trying it's share make a do and but pretty now feel, a and we at a we into it our want market of opportunity we have look, have business to are -- we to that ultimately, good income also substantial

commissions Chris? it make into on agents. selling -- to cards. actually want I Does just our so not share we're to increase reducing commissions what just are our I on more the sense? by maximize going just, We focused spoke about, We while or market going passing to income, to and income you more markets

Christopher Sakai

Yes. It does.

Robin Raina

Thank you.

Christopher Sakai

coming the the the how bus it systems, out state as far is, new Along that you system? as -- bring bus it into with is ITMS, as bus as

Robin Raina

State Transport buses we've overall. that Bengal. to buses. all Maharashtra we announced largest continuing is West we ITMS across phases. first whether we that had Andhra, think you deploy large of Corporation, whether announce will We we it announcing been done, deploy the -- the have -- we systems ITMS Roadways Then are MSRTC, I the approximately announce one deals across the wherein all in deals XX,XXX XX,XXX Recently We two

but they they're very using we're ticket whether everybody will they're would can able smart plying, they virtually Pay Google virtually up a So really course, to or prepaid or state to whether model, make able any they're money whether UPI, care with be using paid our whether -- it's every XX,XXX -- ticket. cards, using use Paytm use we -- they're anybody, going per on using and buses it's to simple on large of card business the a basis. every whether It's very ticket, don't be get where we use a

are that's we That's our business how model and deploying.

We of in the hopefully, midst something I to don't very deals and months positive weeks right the and have front. with on a that are few report of large we coming have, interesting some states now in that

Christopher Sakai

for Okay. Great. the Thanks answers.

Robin Raina

Thank you, sir.

Operator

all call. for you and We ladies today for time thank participation the may conclude questions today's and And your conference you gentlemen, disconnect. we and will is this have that now

Ebix (EBIXQ) 15 Mar 232022 Q4 Earnings call transcript