Ibex Ltd (NASDAQ:IBEX), a leading provider in global business process outsourcing and end-to-end customer engagement technology solutions, stock plunges 23.80% (As on September 14, 11:39:48 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY 23. Fourth quarter adjusted net income declined to $6.2 million compared to $8.3 million in the prior year quarter, driven largely by the absence of a one-time deferred tax benefit in prior year quarter. Fourth quarter non-GAAP adjusted EBITDA increased 21.0% to $15.4 million, over the prior year quarter, driven by stronger operating results from higher capacity utilization and an increased mix of higher margin nearshore and offshore delivery. Adjusted EBITDA margins in the fourth quarter were 12.4%, +210 bps in the quarter. Cash flow from operations increased to $41.9 million, compared to $40.0 million in the prior year. The increase was primarily driven by improvements in operating results, offset by higher working capital requirements. Capital expenditures were $19.0 million compared to $25.9 million in the prior year. Cash and cash equivalents improved to $57.4 million and availability on our revolving credit facilities was $71.9 million as of June 30, 2023, compared to cash and cash equivalents of $48.8 million and availability on our revolving credit facilities of $50.5 million as of June 30, 2022.

IBEX in the fourth quarter of FY 23 has reported the adjusted earnings per share of 33 cents, missing the analysts’ estimates for the adjusted earnings per share by 16 cents. The company had reported the adjusted revenue growth of 0.7 percent to $124.43 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue by $1.43 million. Revenue growth was driven by 10% growth in the higher margin near and offshore regions, offset by lower onshore revenue, and was moderated by prevailing macroeconomic market conditions. Revenues in the higher margin offshore and nearshore regions represented 73.9% of revenue mix for the quarter versus 67.8% in the prior year quarter. Revenue related to the BPO 2.0 clients grew 7.0% compared to the prior year quarter and now represents 78.8% of our quarterly revenue.

Looking ahead, IBEX Limited forecasts its revenue for fiscal year 2023 to range between $545 million and $555 million, reflecting a growth rate of 11.4% versus the $554.74 million estimate. Moreover, the company expects its adjusted EBITDA to fall within the range of $77 million to $79 million, indicating a midpoint margin of 14.2%.

The company anticipates first-quarter revenue to be in a range between $122 million and $125 million versus the $133.64 million estimate.