Ibex Ltd (NASDAQ:IBEX) stock rallies 19.07% (As on September 13, 11:32:29 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 24. Net income margin increased to 7.9% compared to 3.6% in the prior year quarter. Non-GAAP adjusted net income increased to $10.2 million, compared to $6.2 million in the prior year quarter. Adjusted EBITDA increased to $17.9 million, compared to $15.4 million in the prior year quarter, driven by higher operating margins and continuing cost optimization efforts undertaken during the year. Adjusted EBITDA margin increased to 14.4%, compared to 12.4% in the prior year quarter. Net cash from operating activities decreased to $35.9 million, compared to $41.9 million in the prior year. Capital expenditures were $8.9 million compared to $19.0 million in the prior year. Full year free cash flow increased to $27.0 million, compared to $22.9 million in the prior. Cash and cash equivalents improved to $62.7 million, compared to cash and cash equivalents of $57.4 million. Total debt was $1.5 million compared to total debt of $1.0 million last year. Net cash improved to $61.2 million, up from $56.4 million in the prior year. The new logo engine continued to win signature new clients with three wins in the quarter including a leading gaming company. There were 18 new client relationships won primarily with retail, healthcare, and gaming companies, compared to 10 in the prior year.

IBEX in the fourth quarter of FY 24 has reported the adjusted earnings per share of 58 cents, beating the analysts’ estimates for the adjusted earnings per share of 53 cents. The company had reported the adjusted revenue up slightly to $124.5 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $122.3 million. Growth in Retail and E-commerce, Travel, Transportation and Logistics, and HealthTech was offset by declines in FinTech, Telecommunications, and Technology verticals.

For the first quarter fiscal 2025, the company expects revenue to be in the range of $124 to $126 million. Q1 FY 25 Adjusted EBITDA is expected to be in the range of $14.5 to $15.5 million. For the fiscal year 2025, the company expects revenue to be in the range of $510 to $525 million. FY 25 Adjusted EBITDA is expected to be in the range of $67 to $69 million. Capital expenditures are expected to be in the range of $15 to $20 million.