10-Q 1 ibex-20240331.htm 10-Q ibex-20240331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 10-Q
_______________________
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
or
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from_____________to______________
Commission File Number: 001-38442
_______________________
IBEX LIMITED
(Exact name of registrant as specified in its charter)
_______________________
Bermuda
00-0000000
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
1717 Pennsylvania Avenue NW, Suite 825
Washington, DC
20006
(Address of principal executive offices)(Zip Code)
(202) 580-6200
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
_______________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common shares, par value $0.0001IBEX
 Nasdaq Global Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes o No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated fileroAccelerated filerx
 
Non-accelerated fileroSmaller reporting companyo
 
Emerging growth companyx
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No
The number of common shares outstanding of IBEX LIMITED as of April 30, 2024 was 17,214,446.

IBEX LIMITED
Quarterly Report on Form 10-Q
For Quarterly Period Ended March 31, 2024
Table of Contents
Page No.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q (“Form 10-Q”) contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995, relating to our operations, expected financial position, and other business matters that are based on our current expectations, assumptions, and projections with respect to the future, and are not a guarantee of performance. Forward-looking statements provide management’s current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements may include words such as “anticipate,” “believe,” “budgeted,” “contemplate,” “estimate,” “expect,” “forecast,” “guidance,” “may,” “outlook,” “plan,” “projection,” “should,” “target,” “will,” “would” and other words, the negative forms of such words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other important factors that could cause our actual results, performance or achievements or industry results, to differ materially from historical results or any future results, performance or achievements expressed, suggested, or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to statements about:
•General economic uncertainty in global markets and unfavorable economic conditions, including inflation, rising interest rates, recession, foreign exchange fluctuations and supply-chain issues;
•Geopolitical conditions, including developing or ongoing conflicts;
•Our ability to attract new business and retain key clients;
•Our profitability based on our utilization, pricing and managing costs;
•The potential for our clients or potential clients to consolidate;
•Our clients deciding to enter into or further expand their insourcing activities and current trends toward outsourcing services may reverse;
•Our ability to manage our international operations, particularly in the Philippines, Jamaica, Pakistan and Nicaragua;
•Our ability to anticipate, develop and implement information technology solutions that keep pace with evolving industry standards and changing client demands;
•Our ability to recruit, engage, motivate, manage and retain our global workforce;
•Our ability to comply with applicable laws and regulations, including those regarding privacy, data protection and information security, employment and anti-corruption;
•The effect of cyberattacks or cybersecurity vulnerabilities on our information technology systems; and
•Our ability to realize the anticipated strategic and financial benefits of our relationship with Amazon;
•The impact of tax matters, including new legislation and actions by taxing authorities.
We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. We caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from our expectations, or cautionary statements, are disclosed under Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements as well as other cautionary statements that are made from time to time in our other filings with the United States Securities and Exchange Commission (“SEC”) and public communications. You should evaluate all forward-looking statements made in this Form 10-Q in the context of these risks and uncertainties.
We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. The forward-looking statements included in this Form 10-Q are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

1
PART I — FINANCIAL INFORMATION

Item 1. Financial Statements
2
IBEX LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)
March 31,
2024		June 30,
2023
Assets
Current assets
Cash and cash equivalents$50,665 $57,429 
Accounts receivable, net103,317 86,364 
Prepaid expenses5,885 6,616 
Due from related parties164 43 
Tax advances and receivables9,133 5,965 
Other current assets2,187 2,190 
Total current assets171,351 158,607 
Non-current assets
Property and equipment, net31,465 41,151 
Operating lease assets62,157 70,919 
Goodwill11,832 11,832 
Deferred tax asset, net3,998 4,585 
Other non-current assets8,782 6,230 
Total non-current assets118,234 134,717 
Total assets$289,585 $293,324 
Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued liabilities$17,538 $18,705 
Accrued payroll and employee-related liabilities30,791 29,360 
Current deferred revenue5,396 6,413 
Current operating lease liabilities13,073 13,036 
Current maturities of long-term debt585 413 
Due to related parties61 2,314 
Income taxes payable3,320 3,020 
Total current liabilities70,764 73,261 
Non-current liabilities
Non-current deferred revenue1,302 1,383 
Non-current operating lease liabilities55,660 64,854 
Long-term debt820 600 
Other non-current liabilities1,728 3,262 
Total non-current liabilities59,510 70,099 
Total liabilities130,274 143,360 
Commitments and contingencies (Note 7)
Stockholders' equity
Common stock: par value $0.0001, 108,057,967 shares authorized, 17,214,446 and 18,280,419 shares outstanding as of March 31, 2024 and June 30, 2023, respectively
2 2 
Additional paid-in capital209,062 204,734 
Treasury stock at cost: 1,370,323 and 245,447 shares as of March 31, 2024 and June 30, 2023, respectively
(22,233)(3,682)
Accumulated other comprehensive loss(6,552)(6,312)
Accumulated deficit(20,968)(44,778)
Total stockholders' equity159,311 149,964 
Total liabilities and stockholders' equity$289,585 $293,324 
See accompanying notes to unaudited consolidated financial statements.
3
IBEX LIMITED AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(Unaudited)
(in thousands, except per share data)
Three Months Ended
March 31,		Nine Months Ended
March 31,
2024202320242023
Revenue$126,795 $131,557 $384,038 $398,687 
Cost of services (exclusive of depreciation and amortization presented separately below)87,083 91,693 271,163 287,636 
Selling, general and administrative23,565 22,139 71,462 64,946 
Depreciation and amortization4,865 4,674 14,853 13,933 
Total operating expenses115,513 118,506 357,478 366,515 
Income from operations11,282 13,051 26,560 32,172 
Interest income431 205 1,529 391 
Interest expense(124)(105)(339)(553)
Income before income taxes11,589 13,151 27,750 32,010 
Provision for income tax expense(1,279)(1,872)(3,940)(4,938)
Net income$10,310 $11,279 $23,810 $27,072 
Other comprehensive income / (loss)
Foreign currency translation adjustments$(288)$(1,039)$(310)$(2,162)
Unrealized (loss) / gain on cash flow hedging instruments, net of tax(131)216 70 769 
Total other comprehensive loss(419)(823)(240)(1,393)
Total comprehensive income$9,891 $10,456 $23,570 $25,679 
Net income per share
Basic$0.59 $0.62 $1.33 $1.49 
Diluted$0.57 $0.59 $1.29 $1.44 
Weighted average common shares outstanding
Basic17,46818,23017,88018,179
Diluted18,03619,06518,45818,861
See accompanying notes to unaudited consolidated financial statements.
4
IBEX LIMITED AND SUBSIDIARIES
Consolidated Statements of Stockholders’ Equity
(Unaudited)
(in thousands)
Three months ended March 31, 2023 and 2024
Common sharesTreasury
Stock		Additional
Paid-in
Capital		Accumulated
Other
Comprehensive
Income / (Loss)		Accumulated
Deficit		Total
Stockholders'
Equity
SharesAmountAmount
Balance, December 31, 202218,298 $2 $(3,682)$201,102 $(5,132)$(60,567)$131,723 
Net income— — — — — 11,279 11,279 
Foreign currency translation adjustment— — — — (1,039)— (1,039)
Changes in fair value of cash flow hedges— — — — 216 — 216 
Provision for common stock warrants— — — 260 — — 260 
Issuance of common shares34 — — 618 — — 618 
Forfeiture of restricted common shares(68)— — — — — — 
Share-based compensation expense— — — 1,311 — — 1,311 
Balance, March 31, 202318,264 $2 $(3,682)$203,291 $(5,955)$(49,288)$144,368 
Common sharesTreasury
Stock		Additional
Paid-in
Capital		Accumulated
Other
Comprehensive
Income / (Loss)		Accumulated
Deficit		Total
Stockholders'
Equity
SharesAmountAmount
Balance, December 31, 202317,681 $2 $(14,116)$207,638 $(6,133)$(31,278)$156,113 
Net income— — — — — 10,310 10,310 
Foreign currency translation adjustment— — — — (288)— (288)
Changes in fair value of cash flow hedges— — — — (131)— (131)
Purchase of treasury shares(502)— (8,117)— — — (8,117)
Provision for common stock warrants— — — 299 — — 299 
Issuance of common shares35 — — 351 — — 351 
Share-based compensation expense— — — 774 — — 774 
Balance, March 31, 202417,214 $2 $(22,233)$209,062 $(6,552)$(20,968)$159,311 
5
Nine months ended March 31, 2023 and 2024
Common sharesTreasury
Stock		Additional
Paid-in
Capital		Accumulated
Other
Comprehensive
Income / (Loss)		Accumulated
Deficit		Total
Stockholders'
Equity
SharesAmountAmount
Balance, June 30, 202218,247 $2 $(3,406)$197,785 $(4,562)$(76,360)$113,459 
Net income— — — — — 27,072 27,072 
Foreign currency translation adjustment— — — — (2,162)— (2,162)
Changes in fair value of cash flow hedges— — — — 769 — 769 
Purchase of treasury shares(18)— (276)— — — (276)
Provision for common stock warrants— — — 856 — — 856 
Issuance of common shares103 — — 1,827 — — 1,827 
Forfeiture of restricted common shares(68)— — — — — — 
Share-based compensation expense— — — 2,823 — — 2,823 
Balance, March 31, 202318,264 $2 $(3,682)$203,291 $(5,955)$(49,288)$144,368 

Common sharesTreasury
Stock		Additional
Paid-in
Capital		Accumulated
Other
Comprehensive
Income / (Loss)		Accumulated
Deficit		Total
Stockholders'
Equity
SharesAmountAmount
Balance, June 30, 202318,280 $2 $(3,682)$204,734 $(6,312)$(44,778)$149,964 
Net income— — — — — 23,810 23,810 
Foreign currency translation adjustment— — — — (310)— (310)
Changes in fair value of cash flow hedges— — — — 70 — 70 
Purchase of treasury shares(1,125)— (18,551)— — — (18,551)
Provision for common stock warrants— — — 893 — — 893 
Issuance of common shares59 — — 362 — — 362 
Share-based compensation expense— — — 3,073 — — 3,073 
Balance, March 31, 202417,214 $2 $(22,233)$209,062 $(6,552)$(20,968)$159,311 

See accompanying notes to unaudited consolidated financial statements.
6
IBEX LIMITED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Nine Months Ended March 31,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$23,810 $27,072 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization14,853 13,933 
Noncash lease expense9,908 10,946 
Warrant contra revenue893 856 
Deferred income tax586 3,018 
Share-based compensation expense2,741 3,973 
Allowance of expected credit losses62 105 
Impairment losses1,257 — 
Gain on sale of subsidiaries— (246)
Change in assets and liabilities:
Increase in accounts receivable(16,941)(17,846)
(Increase) / decrease in prepaid expenses and other current assets(5,350)2,242 
Decrease in accounts payable and accrued liabilities(2,336)(6,077)
Decrease in deferred revenue(1,098)(2,721)
Decrease in operating lease liabilities(9,907)(10,831)
Net cash inflow from operating activities18,478 24,424 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment(6,635)(15,231)
Cash outflow from sale of subsidiaries, net of cash received— (85)
Net cash outflow from investing activities(6,635)(15,316)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit153 43,390 
Repayments of line of credit(205)(54,541)
Repayment of debt— (3,795)
Proceeds from the exercise of options362 1,827 
Principal payments on finance leases(342)(353)
Purchase of treasury shares(18,551)(276)
Net cash outflow from financing activities(18,583)(13,748)
Effects of exchange rate difference on cash and cash equivalents(24)(515)
Net decrease in cash and cash equivalents(6,764)(5,155)
Cash and cash equivalents, beginning57,429 48,831 
Cash and cash equivalents, ending$50,665 $43,676 
Supplemental cash flow disclosures
Cash paid for interest$339 $553 
Cash paid for income taxes$5,428 $2,927 
Supplemental non-cash disclosures
Change in accounts payable related to fixed assets$(786)$(21)
See accompanying notes to unaudited consolidated financial statements.
7
IBEX LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
(Unaudited)
(in thousands, except per share amounts)
1.     OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
OVERVIEW
IBEX Limited (“IBEX” and together with its subsidiaries, the “Company,” “ibex,” “we,” “us,” or “our”) was incorporated on February 28, 2017 in Hamilton, Bermuda. Our registered office in Bermuda is Crawford House, 50 Cedar Avenue, Hamilton HM 11, Bermuda. We are a “controlled company” within the meaning of the rules of Nasdaq, with The Resource Group International Limited (“TRGI”) being our controlling shareholder. TRG Pakistan Limited holds a controlling interest in TRGI. On August 7, 2020, the Company was admitted to trade on the Nasdaq Global Market under the ticker symbol “IBEX.”
The Company is an end-to-end provider of technology-enabled customer lifecycle experience (“CLX”) solutions. Through the Company’s integrated CLX platform, a comprehensive portfolio of solutions is offered to optimize customer acquisition, engagement, expansion and experience for clients. The Company leverages sophisticated technology and proprietary analytics, in combination with its global footprint and business process outsourcing expertise, to protect and enhance clients’ brands.
Our services cover three main areas:
•ibex Connect: Our Connect business lies at the core of our offerings and generates the majority of the Company’s revenue. This business unit delivers differentiated customer service (assisting our clients’ customers with information about our clients and their products or services), technical support (providing specialized teams to provide information, assistance and technical guidance to our clients’ customers on a specific product or service), revenue generation (upselling and cross selling) and other value-added outsourced back office services (finance and accounting, marketing support, sales operations, and human resources administration) to our clients. We deploy these capabilities through a true omni-channel CX model, which integrates voice, email, chat, SMS, social media and other communication applications.
•ibex Digital: Our ibex Digital suite of solutions works with consumer-facing businesses to help them build, grow and scale technology-driven customer acquisition solutions, while helping drive digital transformation. We offer digital marketing, e-commerce technology, and platform solutions for our clients, helping them build new customer acquisition channels, increase acquired customers, and often do both at a reduced cost.
•ibex CX: Our CX business measures, monitors and manages our clients’ holistic customer experiences. By offering a 360-degree CX approach, our clients can harness the power of data and customer feedback to differentiate themselves within today’s “customer expectation economy.” We enable our clients to improve retention of their customers, identify and manage service issues in real time, predict future behavior and outcomes, derive impact analysis scenarios and assign “action plans” throughout the enterprise.
Operating segments
An operating segment is defined as a component of a company for which separate financial information is available and which is regularly evaluated by the chief operating decision maker (“CODM”) for the purpose of making decisions regarding resource allocation and performance assessment. The Company’s CODM is the chief executive officer (“CEO”). The Company’s CODM reviews consolidated financial results to make decisions, allocate resources and assess performance. Therefore, the Company has determined that it operates in a single operating and reportable segment.
8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation and principles of consolidation
The Company’s interim consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include the financial results of all wholly-owned subsidiaries. When the Company does not have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation.

These unaudited consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (the “Annual Report”) as filed with the SEC. There have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on the Company’s consolidated financial statements and related notes.

In the opinion of the Company, these unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2024, its results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended March 31, 2024 and 2023, and cash flows for the nine months ended March 31, 2024 and 2023. The consolidated balance sheet as of June 30, 2023, was derived from the audited annual financial statements included in the Annual Report.
Use of estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include useful lives for property and equipment; impairment of long-lived assets, operating lease assets and liabilities, goodwill, and other intangible assets; allowance for credit losses; valuation allowances for deferred tax assets and other receivables; fair value of share-based compensation, warrants, and derivatives, and legal provisions. The Company bases its estimates on historical experience and other assumptions it believes are reasonable, including the use of outside experts as necessary, and updates these estimates on an ongoing basis and as new events occur, more experience is acquired and/or more information is obtained. Actual results could differ materially from these estimates.
Concentration of credit risk
The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate losses. The Company evaluates the creditworthiness of its clients prior to and throughout the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative instruments as all of its counterparties are investment-grade financial institutions.

Property and equipment

Property and equipment and assets leased under financing leases are carried at cost at the acquisition date and are depreciated using the straight-line method over their estimated useful lives.

Property and equipment assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is assessed by a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset. If estimated future undiscounted net cash flows are less than the carrying value of the asset, an impairment loss is recognized to the extent its carrying value exceeds its estimated fair value.


9
During quarter ended March 31, 2024, we determined that the estimated fair value for certain assets at two of our delivery locations no longer exceeded their carrying value. The fair value of these assets was based on various assumptions including our ability to redeploy and utilize the assets at other sites. We recognized impairment losses related to leasehold improvements, furniture & fixtures, and computer equipment of $1.3 million during both the three and nine months ended March 31, 2024, which is included in selling, general and administrative expense in the consolidated statements of comprehensive income. There were no impairment closses recognized during the three and nine months ended March 31, 2023.

Leases

The Company determines whether an arrangement contains a lease at inception in accordance with the provisions of Accounting Standards Codification (“ASC”) 842, Leases. Operating leases are included in operating lease assets and current and non-current operating lease liabilities, and assets leased under finance leases are included in property and equipment and current and long-term debt in the consolidated balance sheets.

Operating lease assets represent the Company’s right to use an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease expense is recognized on a straight-line basis over the lease term in cost of services or selling, general and administrative expense, as applicable. Interest on finance leases is included in interest expense in the consolidated statements of comprehensive income.

Share-based compensation plans

The Company accounts for its share-based awards in accordance with provisions of ASC 718, Compensation - Stock Compensation. The Company calculates the fair value of option awards using the Black-Scholes model. For equity-classified awards, total compensation cost is based on the grant date fair value. For liability-classified awards, total compensation cost is based on the fair value of the award on the date the award is granted and is subsequently re-measured at each reporting date until settlement.

The Company recognizes share-based compensation expense over the requisite vesting period using a graded vesting model. Awards to employees and directors may contain service, performance and/or market vesting conditions. For unvested awards with performance conditions, the Company assesses the probability of attaining the performance conditions at each reporting period. Awards that are deemed probable of attainment are recognized in expense over the requisite service period. The Company accounts for forfeitures as they occur.

Share repurchase programs

The board of directors may authorize share repurchases of the Company’s common shares. Purchases made pursuant to these authorizations may be carried out through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations, at times and in such amounts as the Company deems appropriate. Shares repurchased under such authorizations are held in treasury for general corporate purposes, including issuances under various employee share-based award plans. When Company shares are repurchased, the amount of the consideration paid (including directly attributable costs, net of any tax effects) is recognized as a deduction of additional paid in capital. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. When treasury shares are subsequently sold or reissued, the amount received is recognized as an increase in additional paid in capital, and any resulting surplus or deficit on the transaction is reclassified to accumulated deficit.

10
Cloud Computing Software Implementation Costs

The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. In accordance with ASC 350-40, Goodwill and Other, Internal-Use Software, for cloud computing arrangements that meet the definition of a service contract, the Company capitalizes qualifying implementation costs incurred during the application development stage in other non-current assets. Capitalized costs are primarily comprised of third-party consulting fees, direct labor, and related expenses. Capitalization of these costs concludes once the project is substantially complete and the software is ready for the Company's intended use. Once available for its intended use, the capitalized costs will be amortized on a straight-line basis over the term of the associated hosting arrangement including periods covered by an option to extend, and are included in selling, general and administrative expenses in the consolidated statements of comprehensive income. Costs related to data conversion, overhead, general and administrative activities, and training are expensed as incurred. Post-configuration training and maintenance costs are expensed as incurred.

The Company capitalized $1.2 million and $2.4 million during the three and nine months ended March 31, 2024, respectively. There were no costs capitalized during the three and nine months ended March 31, 2023.
Other postemployment benefits

During the three and nine months ended March 31, 2024, the Company eliminated certain positions that it considered redundant and incurred approximately $1.5 million in severance costs, of which $1.3 million is recorded in selling, general and administrative expense and $0.2 million is recorded in cost of services in the consolidated statements of comprehensive income. As of March 31, 2024, $1.0 million was accrued and is expected to be paid by July 30, 2025.

Emerging Growth Company
The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Accordingly, the Company has the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies pursuant to Section 13(a) of the Exchange Act. The Company has elected to use the extended transition period until we are no longer an emerging growth company or until we choose to opt out of the extended transition period affirmatively and irrevocably.
Recently Issued Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The amendments in ASU No. 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign), and (3) the income tax expense or benefit from continuing operations (separated by federal, state and foreign). This update also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The amendments in ASU No. 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements.




11
In March 2024, the SEC issued its final climate disclosure rules, which require the disclosure of climate-related information in annual reports and registration statements. The rules require disclosure in the audited financial statements of certain effects of severe weather events and other natural conditions above certain financial thresholds, as well as amounts related to carbon offsets and renewable energy credits or certificates, if material. Disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2025. On April 4, 2024, the SEC determined to voluntarily stay the final rules pending certain legal challenges. We are currently evaluating the impact of the new rules on the disclosures to our consolidated financial statements.


2.REVENUE FROM CONTRACTS WITH CUSTOMERS
The Company recognizes revenues for services for which control has transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the promised services. This process involves identifying the customer contract, determining the performance obligations in the contract, determining the transaction price, allocating the transaction price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it (a) provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and (b) is separately identified in the contract. The Company considers a performance obligation satisfied as it provides services to a customer, meaning the customer has the ability to direct the use and obtain the benefit of the service.
Revenues from contact center services, which consist of customer service, technical support and other value-added outsourced back-office services, are recognized as the services are performed on the basis of the number of billable minutes or hours, contractual rates, and other contractually agreed metrics, if applicable. Certain of our client contracts include bonus and penalty provisions. Revenues related to training that occurs upon commencement of a new client contract or statement of work are deferred and recognized on a straight-line basis over the estimated life of the client program, as it is not considered to have a standalone value to the customer. The related expenses are expensed as incurred. Revenues are recognized over time as performance obligations are satisfied and in the period in which the Company has a right to invoice, net of discounts, incentives, and/or penalties as per contractual terms. Bonuses and penalties accrue for the current billing period and do not depend on future performance. In some cases, we may estimate these bonuses or penalties using the “most likely amount” method based on actual data and historical experience.
Revenues from digital services are recognized at a point in time upon the successful consumer activation or purchase of clients’ services. We utilize third parties in the satisfaction of this performance obligation; however, because we retain control over these third parties and are solely responsible for the risk and reward associated with this performance obligation, we have determined that we are the principal in these transactions and therefore recognize revenue on a gross basis.
Revenues from CX software-as-a-service products are recognized over time based on the term of the subscription. Set-up fees to customize the customer experience solution for client’s specific needs are deferred and recognized on a straight-line basis over the term of the subscription. Revenues related to additional consulting services are recognized over the period as the related services are performed on a per hour basis.
All of our contracts include the right to invoice for services on a monthly basis. None of our contracts include significant termination penalties, and generally may be terminated for convenience at any time with a short notice period (generally 30 to 120 days).
The Company generally does not incur significant upfront costs to fulfill or obtain a contract that would qualify for capitalization under ASC 606, Revenue from Contracts with Customers.

Disaggregation of Revenue
The majority of the Company’s revenues are derived from contracts with customers who are located in the United States of America (the "United States" or "U.S."). However, the Company delivers most of its services from regional customer experience delivery centers that are located in geographies outside of the United States. Our global delivery model is built on regional customer experience delivery centers and includes a unique ability to support work-at-home capabilities in any region that we currently operate.
12

The Company generated approximately 97% of its revenue from clients based in the United States for both the three and nine months ended March 31, 2024, as follows:

Three Months Ended
March 31,		Nine Months Ended
March 31,
($000s)2024202320242023
Revenue
United States$122,822 $128,184 $372,612 $387,694 
Other countries3,973 3,373 11,426 10,993 
Total$126,795 $131,557 $384,038 $398,687 

The following table presents the breakdown of the Company’s revenues by geographical location, based on where the services are provided:

Three Months Ended
March 31,		Nine Months Ended
March 31,
($000s)2024202320242023
Revenue
Onshore (United States)$30,748 $37,264 $92,195 $112,864 
Offshore (Philippines, Pakistan)60,840 56,242 183,109 166,690 
Nearshore (Jamaica, Nicaragua, Honduras)35,207 38,051 108,734 119,133 
Total$126,795 $131,557 $384,038 $398,687 


The following table presents the breakdown of the Company’s revenue by pattern of revenue recognition:

Three Months Ended
March 31,		Nine Months Ended
March 31,
($000s)2024202320242023
Pattern of Revenue recognition
Services transferred over time$120,029 $124,001 $360,168 $373,869 
Services transferred at a point in time6,766 7,556 23,870 24,818 
Total$126,795 $131,557 $384,038 $398,687 

The movement in the Company's deferred revenue is as follows:

Three Months Ended
March 31,		Nine Months Ended
March 31,
($000s)2024202320242023
Beginning balance$8,097 $9,688 $7,796 $12,593 
Revenue recognized(2,368)(1,840)(7,301)(9,789)
Revenue deferred969 2,024 6,203 7,068 
Ending balance$6,698 $9,872 $6,698 $9,872 
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3.ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS
Accounts receivable, net in the accompanying consolidated balance sheets consists of the following:

March 31,June 30,
($000s)20242023
Accounts receivable$103,424 $86,484 
Less: Allowance for credit losses(107)(120)
Accounts receivable, net$103,317 $86,364 

The Company estimates its expected credit losses using the lifetime expected credit loss model. The allowance for credit losses is calculated quarterly based on the Company’s historical loss percentages, net of recoveries. In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against the allowance when it determines a balance is uncollectible.

Activity in the Company’s allowance for credit losses consists of the following:

Three Months Ended
March 31,		Nine Months Ended
March 31,
($000s)2024202320242023
Beginning balance$117 $424 $120 $1,290 
Provision for credit losses69 17 93 155 
Reversal of provision for credit losses(13)(29)(31)(50)
Uncollectible receivables written off(67)(4)(78)(955)
Effect of foreign exchange1 (37)3 (69)
Ending balance$107 $371 $107 $371 

Significant Client

During the nine months ended March 31, 2024 and 2023, the Company had one client that contributed approximately 12.8% and 13.0% of total revenue, respectively.

To limit the Company’s credit risk with its clients, management regularly monitors the aging of customer receivables, maintains allowances for credit losses and may require prepayment for services from certain clients. Based on currently available information, management does not believe significant credit risk exists as of March 31, 2024.
14
4.LEASES

The Company has operating lease obligations primarily for our delivery centers and finance lease obligations primarily for vehicles and other equipment. Leases typically have initial terms of two to fifteen years, and may include renewal options if the Company is reasonably certain to exercise such options.

The components of lease cost are as follows:

Three Months Ended
March 31,		Nine Months Ended
March 31,
($000s)2024202320242023
Operating lease cost:
Operating lease cost$5,045 $5,487 $14,923 $16,360 
Variable lease cost787 1,043 2,353 3,244 
Total operating lease cost$5,832 $6,530 $17,276 $19,604 
Finance lease cost:
Amortization of right of use assets$147 $85 $361 $254 
Interest on lease liabilities64 32 154 75 
Total finance lease cost$211 $117 $515 $329 

The following table presents supplemental balance sheet information related to leases:

March 31,June 30,
($000s)20242023
Operating lease assets$62,157 $70,919 
Operating lease liabilities, current13,073 13,036 
Operating lease liabilities, non-current55,660 64,854 
Total operating lease liabilities$68,733 $77,890 
Finance lease assets, net$1,339 $929 
Finance lease liabilities, current585 361 
Finance lease liabilities, non-current820 600 
Total finance lease liabilities$1,405 $961 

The following table presents supplemental cash flow information related to leases:

Nine Months Ended
March 31,
($000s)20242023
Cash paid for amounts included in the measurement of lease liabilities$9,907 $10,831 
Operating cash flows paid for interest portion of finance leases154 75 
Financing cash flows paid for principal portion of finance leases342 353 


15

The following table presents supplemental noncash information related to leases:
Nine Months Ended
March 31,
($000s)20242023
Right-of-use assets obtained in exchange for lease obligations
Operating leases$4,684 $11,174 
Finance leases$753 $726 
Reduction due to reassessment of lease renewal options
Right-of-use assets$(3,656)$— 
Operating lease liabilities$(3,689)$— 

March 31,June 30,
20242023
Weighted average remaining lease term (in years)
Operating leases5.25.7
Finance leases2.32.6
Weighted average discount rate
Operating leases10.3 %9.2 %
Finance leases21.6 %13.4 %

The following table presents the maturities of our lease liabilities as of March 31, 2024:

($000s)Operating
Leases		Finance
Leases
2024-remainder of year$4,951 $213 
202517,692 786 
202616,340 570 
202716,114 201 
202813,257 — 
Thereafter22,097 — 
Total undiscounted lease payments90,451 1,770 
Less: liability accretion(21,718)(365)
Total lease liabilities$68,733 $1,405 

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5.DERIVATIVES
Cash flow hedges
Interest rate swap
In March 2020, the Company entered into a three-year $15 million notional floating to fixed interest rate swap to hedge the interest rate risk on the first $15 million of the balance outstanding under our $80 million revolving credit facility (as amended, the "PNC Credit Facility") with PNC Bank, N.A. ("PNC"). At the time the hedge was executed, all critical terms matched between the hedge and the hedged item. Hedge effectiveness was assessed prospectively at inception, and on an ongoing basis by confirming that the critical terms continue to match. Any hedge ineffectiveness is recorded in interest expense in the consolidated statements of comprehensive income. For the three and nine months ended March 31, 2023, there was no hedge ineffectiveness. The hedge expired in March 2023 and was not replaced.
Foreign exchange contracts
From time to time, the Company enters into foreign currency exchange contracts, consisting of offsetting foreign exchange option contracts (“collars”), to mitigate foreign exchange fluctuations on the Philippine Peso (“PHP”) within a certain range and on a certain percentage of its PHP operating costs. The collars are designated as cash flow hedges upon inception, in accordance with ASC 815, in order to match the financial results of the hedges with the forecasted transactions. These contracts cover periods commensurate with the expected exposure, generally three to twelve months. We execute our contracts with our primary banking partner, PNC. The Company has not experienced any material issues related to derivative counterparty defaults.
The following tables show the notional amount and fair value of our foreign exchange cash flow hedging instruments as of March 31, 2024 and June 30, 2023:
Settlement dateHedged
currency		Foreign
currency rate		Notional
amount
($000s)		Fair Value
($000s)
Foreign currency option contracts - liabilities
April 8, 2024 through December 19, 2024PHP
53.50 - 57.60
$19,759 
Fair value as of June 30, 2023$100 
Fair value as of March 31, 2024  $95 
The fair value of the collars is included in accounts payable and accrued liabilities in the consolidated balance sheets.
Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in accumulated other comprehensive income ("AOCI"). Amounts previously recognized in AOCI are reclassified to cost of services in the periods in which the hedged expenses occur.

Refer to Note 12. "Stockholders' Equity" for further details on the change in fair value of our cash flow hedges and the net gain or loss reclassified to earnings from effective hedges during the three and nine months ended March 31, 2024 and 2023.

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6.DEBT
Debt consists of the following:
March 31,June 30,
($000s)20242023
Debt
PNC Credit Facility$— $52 
Finance leases1,405 961 
Total debt$1,405 $1,013 
Less: Current maturities of long-term debt and finance leases(585)(413)
Total long-term debt$820 $600 
As of March 31, 2024, the Company had $80.0 million of borrowing available under the PNC Credit Facility based on eligible collateral.

The PNC Credit Facility contains certain financial, operating, and other covenants, including, among other things, covenants restricting additional borrowings, paying any dividends and making certain investments. The Company was in compliance with all debt covenants as of March 31, 2024.
On May 6, 2024, the Company's subsidiaries, Ibex Global Solutions, Inc., Digital Globe Services, LLC, TelSatOnline, LLC, 7 Degrees, LLC, and iSky, LLC (collectively the "Ibex US Entities") entered into the Seventeenth Amendment to the Revolving Credit and Security Agreement and Consent (the "Amendment") with PNC Bank, National Association ("PNC"). The Amendment provides PNC's consent to the assignment of certain customer contracts (the "Contract Assignments") by the Ibex US Entities to the Company's subsidiary, Ibex Global FZ-LLC, provided that (i) the contract revenues associated with such Contract Assignments, upon the effectiveness of such Contract Assignments, shall not in the aggregate be greater than $175 million and (ii) the Ibex US Entities comply with additional reporting requirements.

7.COMMITMENTS AND CONTINGENCIES
The Company is subject to claims and lawsuits filed in the ordinary course of business. Although management does not believe that any such proceedings will have material adverse effect on its consolidated financial position, results of operations, or cash flows, no assurances to that effect can be given based on the uncertainty of litigation and demands of third parties. The Company records a liability for pending litigation and claims where losses are both probable and can be reasonably estimated.
Indemnification
In addition, in the ordinary course of business, we enter into agreements of varying scope and terms pursuant to which we agree to indemnify clients, vendors and other business partners with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, cybersecurity breach, services to be provided by us or from intellectual property infringement claims made by third parties. Historically, we have not experienced significant losses on these types of indemnification obligations.
8.WARRANT
On November 13, 2017, and as subsequently amended, the Company issued to Amazon.com NV Investment Holdings LLC, a subsidiary of Amazon.com, Inc. (“Amazon”), a 10-year warrant to acquire approximately 1,674,017 common shares (the "warrant shares"), representing 10.0% of our equity on a fully diluted basis at the time of the warrant's issuance. The warrant is exercisable at a price per share of $9.42. The warrant provides for net share settlement, that if elected by the holder, will reduce the number of shares issued upon exercise to reflect the net settlement of the exercise price. The warrant is classified as an equity instrument in accordance with ASU No. 2019-08, which was adopted retroactively on July 1, 2020. The Company determined the grant date fair value of the warrant using the Black-Scholes option pricing model.
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The warrant shares vest on the satisfaction of specified milestones tied to Amazon’s purchase of services from the Company during a seven-and-a-half-year period ending on June 30, 2024. The vesting is partially accelerated in the event of a reorganization transaction (as defined in the warrant). Amazon is entitled to customary shelf and piggy-back registration rights with respect to the shares issued upon exercise of the warrant. Amazon may not transfer the warrant except to a wholly-owned subsidiary of Amazon.
As of March 31, 2024 and June 30, 2023, 1,171,812 and 1,004,410 warrant shares were vested, respectively. To date, the warrant has not been exercised, expired or cancelled.
The Company recorded contra revenue of approximately $0.3 million and $0.9 million, respectively, during the three and nine months ended March 31, 2024 and 2023, respectively.

9.SHARE BASED COMPENSATION
Share-based compensation expense
The following tables summarize the components of share-based compensation expense recognized in the Company’s consolidated statements of comprehensive income, both by line item and by plan:

Three Months Ended
March 31,		Nine Months Ended
March 31,
($000s)2024202320242023
Cost of services$(62)$(3)$7 $380 
Selling, general and administrative528 1,321 2,734 3,593 
Total share-based compensation expense$466 $1,318 $2,741 $3,973 
Three Months Ended
March 31,		Nine Months Ended
March 31,
2024202320242023
Phantom Stock Plans$(308)$7 $(332)$1,150 
2018 Restricted Stock Award Plan— — — (7)
2020 Long term Incentive Plan774 1,311 3,073 2,830 
Total share-based compensation expense$466 $1,318 $2,741 $3,973 

As of March 31, 2024, there was $6.7 million of total unrecognized compensation expense related to non-vested share-based awards, which is expected to be recognized over a weighted-average period of 3.23 years.
10.FAIR VALUE
The fair value hierarchy prioritized the input to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are as follows:
Level 1: Quoted prices for identical instruments traded in active markets.
Level 2: Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
Level 3: Unobservable inputs that cannot be supported by market activity and that are significant to the fair value of the asset, liability, or equity such as the use of certain pricing models, discounted cash flow models and similar techniques that use significant unobservable inputs.

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The carrying value of our cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, accrued payroll and employee-related liabilities, approximate fair value because of their short-term nature. The Company measures its debt at carrying value including accrued interest, which approximates fair value because of its short-term nature.
Derivatives designated as cash flow hedges
The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such the derivatives are classified as Level 2 in the fair value hierarchy.
Phantom stock awards
The Company uses the Black-Scholes option pricing model to value our phantom stock awards. All inputs to the model are derived from active market information for identical or similar instruments, including stock price, volatility, and interest rates. The inputs to the valuation pricing models are observable in the market, and as such the phantom stock awards are classified as Level 2 in the fair value hierarchy.
The following is a summary of the Company’s fair value measurements on a recurring basis as of March 31, 2024 and June 30, 2023:

As of March 31, 2024Fair Value Measurements Using
($000s)Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Liabilities
Cash flow hedge - foreign currency collars, net$— $95 $— 
Phantom stock options$— $834 $— 
Total liabilities$— $929 $— 

As of June 30, 2023Fair Value Measurements Using
($000s)Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Liabilities
Cash flow hedge - foreign currency collars, net$— $100 $— 
Phantom stock options$— $1,173 $— 
Total liabilities$— $1,273 $— 

These balances are included in accounts payable and accrued liabilities and other non-current liabilities in the consolidated balance sheets.
There were no transfers between the different hierarchy levels in the three and nine months ended March 31, 2024 and 2023.
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11.INCOME TAXES
In determining its interim provision for income taxes, the Company used an estimated annual effective tax rate, which is based on expected income before taxes, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the period in which they occur and can be a source of variability in the effective tax rate from quarter to quarter.
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company records valuation allowances against its deferred tax assets based on whether it is more likely than not that the deferred tax assets will be realized.
The Company’s income tax provision includes the results of the Company’s U.S. operations and its various foreign operations including subsidiaries based in the United Kingdom, European Union, Canada, Jamaica, Nicaragua, Pakistan, Senegal, Honduras, and the Philippines. Historically, the Company’s Bermuda-based companies are not subject to income tax as there was no corporate income tax in Bermuda. On December 27, 2023 the Bermuda Corporate Income Tax Act 2023 was passed which provides for a 15% corporate tax rate beginning on or after January 1, 2025 for companies with revenue in excess of 750 million Euros. The Company is evaluating the impact of this legislation, but it does not anticipate that it will have a material impact on the Company’s operations.
The Company recorded provision for income taxes of $1.3 million and $3.9 million in the three and nine months ended March 31, 2024, respectively. The effective tax rate was 11.0% and 14.2% for the three and nine months ended March 31, 2024, respectively. The Company recorded provision for income taxes of $1.9 million and $4.9 million in the three and nine months ended March 31, 2023, respectively. The effective tax rate was 14.2% and 15.4% for the three and nine months ended March 31, 2023, respectively. The changes in effective tax rates between these periods was primarily attributable to changes in revenue mix across our taxable jurisdictions and discrete items recorded in the quarter.
The difference between the effective tax rate and the 21% federal statutory rate in the three and nine months ended March 31, 2024 was primarily due to "Tax Holidays" in certain countries in which we operate and the distribution of taxable income in countries with differing tax rates. We have been granted Tax Holidays as an incentive to attract foreign investment by the governments of Nicaragua, Pakistan, Honduras, Jamaica, and certain qualifying locations in the Philippines. Generally, a Tax Holiday is an agreement between us and a foreign government under which we receive certain tax benefits in that country.

The aggregate reduction in income tax expense due to the above Tax Holidays were $0.8 million and $3.4 million for the three and nine months ended March 31, 2024, respectively. The aggregate reduction in income tax expense per diluted share was $0.04 and $0.18 for the three and nine months ended March 31, 2024, respectively. The aggregate reduction in income tax expense due to the above Tax Holidays were $1.0 million and $2.8 million for the three and nine months ended March 31, 2023, respectively. The aggregate reduction in income tax expense per diluted share was $0.05 and $0.15 for the three and nine months ended March 31, 2023, respectively.
As of March 31, 2024, we had no unrecognized tax positions and do not expect changes to our uncertain tax positions within the next 12 months.

In April 2024, one of our foreign jurisdictions received an assessment relating to a fiscal year 2020 audit. Based on the Company's analysis, we have not recorded any of the assessment amount as an unrecognized tax benefit liability as management has determined that the entire amount is contestable and subject to dispute. Management is challenging the assessment.
12.STOCKHOLDERS’ EQUITY

AOCI
The following table presents changes by component for the three months ended March 31, 2024 and 2023:
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($000s)Foreign
Currency
Translation
Adjustment		Derivative
Valuation		Defined
Benefit Plan		Total
Balance as of December 31, 2022$(5,149)$(86)$103 $(5,132)
Foreign currency translation(1,039)— — (1,039)
Unrealized gain on cash flow hedges— 188 — 188 
Reclassifications to earnings— 28 — 28 
Balance as of March 31, 2023$(6,188)$130 $103 $(5,955)

($000s)Foreign
Currency
Translation
Adjustment		Derivative
Valuation		Defined
Benefit Plan		Total
Balance as of December 31, 2023$(6,282)$77 $72 $(6,133)
Foreign currency translation(288)— — (288)
Unrealized loss on cash flow hedges— (165)— (165)
Reclassifications to earnings— 34 — 34 
Balance as of March 31, 2024$(6,570)$(54)$72 $(6,552)

The following table presents changes by component for the nine months ended March 31, 2024 and 2023:
($000s)Foreign
Currency
Translation
Adjustment		Derivative
Valuation		Defined
Benefit Plan		Total
Balance as of June 30, 2022$(4,026)$(639)$103 $(4,562)
Foreign currency translation(2,162)— — (2,162)
Unrealized loss on cash flow hedges— (299)— (299)
Reclassifications to earnings— 1,068 — 1,068 
Balance as of March 31, 2023$(6,188)$130 $103 $(5,955)
($000s)Foreign
Currency
Translation
Adjustment		Derivative
Valuation		Defined
Benefit Plan		Total
Balance as of June 30, 2023$(6,260)$(124)$72 $(6,312)
Foreign currency translation(310)— — (310)
Unrealized loss on cash flow hedges— (35)— (35)
Reclassifications to earnings— 105 — 105 
Balance as of March 31, 2024$(6,570)$(54)$72 $(6,552)





Share buyback

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On September 18, 2023, the Company announced that the board of directors (the "Board") had authorized a share repurchase program under which the Company may repurchase up to $30 million of its shares over the next six months beginning September 18, 2023 (the “Share Repurchase Program”). During the three and nine months ended March 31, 2024, we repurchased 501,549 and 1,124,876 shares of our common shares under the Share Repurchase Program for $8.1 million and $18.6 million, respectively, which the Company funded with available cash. The Share Repurchase Program expired on March 18, 2024.

During the nine months ended March 31, 2023, we repurchased 17,558 shares of our common shares under our previous share repurchase program for $0.3 million. The previous share repurchase program was announced in December 2021 and expired a year later.


13.WEIGHTED AVERAGE SHARE COUNTS
The following table sets forth the components of the computation from basic to diluted earnings per share for net income for the three and nine months ended March 31, 2024 and 2023:

Three Months Ended
March 31,		Nine Months Ended
March 31,
(000s)2024202320242023
Shares used in basic earnings per share calculation17,46818,23017,88018,179
Effect of dilutive securities:
Employee share-based compensation7029392210
Warrant498542486472
Total effects of dilutive securities568835578682
Shares used in dilutive earnings per share calculation18,03619,06518,45818,861
Shares considered anti-dilutive using the treasury method(565)(272)(555)(354)

14.RELATED PARTY TRANSACTIONS
The Company has agreements with multiple companies under the control of our controlling shareholder, TRGI, and with companies which have common directors with us, in the normal course of business. These transactions were executed on mutually agreed terms and include contact center services, back office support services and an office lease. During the three and nine months ended March 31, 2024, the Company recognized revenue of $0.02 million and $0.04 million, respectively, with these related parties. During the three and nine months ended March 31, 2023, the Company recognized revenue of $0.01 million and $0.04 million, respectively, with these related parties. As of March 31, 2024 and June 30, 2023, the Company had accounts receivable of $0.2 million and $0.04 million, respectively, and accounts payable of $0.06 million and $2.3 million, respectively, with these related parties.

15.INVESTMENT IN JOINT VENTURE
The Company has an investment in Lake Ball, LLC to procure and sell commercial leads for its customers. The Company’s ownership interest is 47.5% and is accounted for under the equity method. The Company’s investment of $0.4 million at March 31, 2024 and June 30, 2023, respectively, is included in other non-current assets in the consolidated balance sheets, while net earnings from the joint venture is included in selling, general and administrative expense in the consolidated statements of comprehensive income.
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The table below presents our investment in the joint venture:

Three Months Ended
March 31,		Nine Months Ended
March 31,
($000s)2024202320242023
Beginning balance$370 $380 $372 $382 
Dividends received(322)(280)(849)(607)
Share of profit382 276 907 601 
Ending balance$430 $376 $430 $376 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q (this "Form 10-Q"), the financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (the "Annual Report"), as filed with the Securities and Exchange Commission (the "SEC"), and the information included under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Annual Report. In addition to historical data, the following discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed in our forward-looking statements as a result of various factors, including but not limited to those discussed under "Cautionary Note Regarding Forward-Looking Statements" in this Form 10-Q and under Part I, Item 1A, "Risk Factors" in the Annual Report.
This Form 10-Q includes certain historical consolidated financial and other data for IBEX Limited (“ibex,” “we,” “us,” “our” or the “Company”). The following discussion provides a narrative of our financial condition and results of operations for the three and nine months ended March 31, 2024 compared to the three and nine months ended March 31, 2023.
Overview

ibex delivers innovative business process outsourcing (“BPO”), smart digital marketing, online acquisition technology, and end-to-end customer engagement solutions to help companies acquire, engage, and retain valuable customers. Today, ibex operates a global CX delivery center model consisting of 29 delivery centers around the world, while deploying next-generation technology to drive superior customer experiences for many of the world’s leading companies across various verticals, including Retail & E-commerce, HealthTech, FinTech, Utilities and Logistics. ibex leverages its diverse global team of approximately 30,000 employees together with industry-leading technology, including its Wave iX platform, to manage customer interactions on behalf of our clients, driving a truly differentiated customer experience.
Business Highlights

During the third quarter of our fiscal year ending June 30, 2024, the Company continued to deliver a solid financial performance, in particular, growth in our digital first solutions with leading clients in our Retail & E-commerce and Travel, Transportation & Logistics verticals. We closed two sites during the quarter to optimize utilization in our onshore and nearshore geographies. Despite macroeconomic conditions impacting our historical growth trends, as well as the unfavorable impact on our revenue from shifting mix from onshore to offshore geographies, the business performed well in several important areas, including profitability and new client wins with key clients in strategic verticals. As expected, our new sales pipeline and wins have picked up pace, with fifteen new clients during the nine months ended March 31, 2024 versus eight in the prior year period.
Recent Financial Highlights

The Company delivered revenues of $126.8 million during the three months ended March 31, 2024, a 3.6% decline compared to same quarter in the prior year, largely due to the year over year shift of delivery from onshore to higher margin offshore regions, macroeconomic conditions, and external factors impacting the FinTech and Telecommunications verticals, partially offset by revenue increases in the Retail & E-commerce and Travel, Transportation & Logistics verticals. Net income during the three months ended March 31, 2024 was $10.3 million, a decrease of 8.6% from $11.3 million during the same quarter in the prior year. Fully diluted earnings per share for the three months ended March 31, 2024 of $0.57, a decrease of 3% from $0.59 per share during the same quarter in the prior year.

The Company delivered revenues of $384.0 million during the nine months ended March 31, 2024, a 3.7% decline compared to same period in the prior year, largely due to aforementioned factors and macroeconomic conditions. Net income during the nine months ended March 31, 2024 was $23.8 million, a decrease of 12.0% from $27.1 million during the same period in the prior year. The decrease in net income was primarily driven by
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lower revenue, including training revenue recognized, impairment losses and severance costs related to our continued optimization efforts, and planned investments in our technology, sales and marketing, and client service functions as we continue to focus on revenue growth. Fully diluted earnings per share for the nine months ended March 31, 2024 was $1.29, a decrease of 10% from $1.44 per share during the same period in the prior year.
Trends and Factors Affecting our Performance
There are a number of key trends and factors that have affected and may affect our results of operations.
Macroeconomic Trends

Macroeconomic factors, including but not limited to, increasing inflation and interest rates, global economic and geopolitical uncertainty, changes in foreign currency exchange rates, and the impact that these factors are having on our clients and their customers, have also impacted our financial results during the nine months ended March 31, 2024. Some of our customers have increased their focus on cost reduction, resulting in decisions to shift work from onshore sites to offshore sites, which has contributed to a modest decline in revenue during the nine months ended March 31, 2024 when compared to the same period in the prior year. We expect that these factors will continue to impact our operations in the near term; however, we also believe that they present opportunities with both new and existing clients, as companies maintain a focus on cost reduction.

Artificial Intelligence ("AI")

With the increasing applicability of AI in enhancing business processes, the customer care industry is starting to integrate AI into its range of solutions to improve the customer experience and improve efficiencies. The proliferation and evolution of generative AI may have impacts on the CX sector. Potential automation in back-end and middle-office business processes, as well as potential increased use of bots to respond to pre-defined queries, could impact assisted customer interactions. Additionally, productivity, data availability and quality due to generative AI could result in an increased volume of work, as agents may be up-skilled to deploy improved analytical capabilities. However, the adoption of generative AI also presents key challenges in the forms of data security, governance, implementation and coordination of an overall customer service solution. These challenges create opportunities for trusted CX partners.

We are moving aggressively to develop the “Next wave of Wave iX” by leveraging generative AI in our business. We introduced WaveiX on January 30, 2024. We have created our three-pronged AI strategy, which continues to keep ibex at the forefront of digital transformation. Our solutions are focused on increasing agent productivity, providing deeper customer insights to elevate the customer experience and putting AI in front of the customer journey with voice and chat bots. We believe we are well positioned to leverage our leadership position in adopting new technology in the CX sector and to create significant value for our clients through the application of AI. More information on the risks related to the adoption of AI is described in Part 1. Item 1A of the Annual Report.

Client’s Underlying Business Performance

Demand for customer interaction services reflects a client’s underlying business performance and priorities. Growth in a client’s business often results in increased demand for our customer engagement solutions. Conversely, a decline in a client’s business generally results in a decrease in demand for our customer engagement solutions, shifting volume to lower cost geographies, and potential increases in demand for our customer acquisition and expansion solutions. The correlation between business performance and demand for outsourced customer interaction solutions can therefore be complex, and depends upon several factors, such as industry consolidation, client investments in growth, and overall macroeconomic environment, all of which can result in short term revenue volatility for providers. Demand during the nine months ended March 31, 2024 was constrained when compared to the same period in the prior year, due in large part to the aforementioned macroeconomic conditions.

Capacity Utilization
As a significant portion of our customer interaction services are performed by customer-facing agents located in delivery centers, our margins are impacted by the level of capacity utilization in those facilities. We incur substantial fixed costs in operating such facilities. The greater the volume of interactions handled, the higher the
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utilization level of workstations within those facilities and the revenues generated to cover those fixed costs, thus the greater the percentage operating margin.
As demand for delivery locations has continued to shift towards lower cost geographies during the nine months ended March 31, 2024, we have continued to fill the additional capacity in our offshore region and expect this capacity to be absorbed quickly as clients and prospective clients look to relocate work to cost advantageous markets in the near term. We continue to realize cost savings as we optimize the number of onshore and nearshore delivery centers.
Labor Costs

When compensation levels of our employees increase, we may not be able to pass on such increased costs to our clients or do so on a timely basis, which tends to depress our operating profit margins if we cannot generate sufficient offsetting productivity gains. During the nine months ended March 31, 2024, we continued to see increasing wage pressure in all of our geographies, in part brought on by the current global inflation and labor shortage, which is increasing competition for contact center agents from other sectors of the economy. During the nine months ended March 31, 2024, we have offset some of these wage increases with higher agent quality and increased productivity, higher agent retention, and increased client prices under contractual cost of living adjustments (“COLA”). Furthermore, our overall labor cost as a percentage of revenue is impacted by the aforementioned shift in delivery location from onshore delivery centers to offshore centers.
Delivery Location

We generate greater profit margins from our work carried out by agents located in offshore and nearshore geographies compared to our work carried out from onshore locations in the United States. As a result, our operating margins are influenced by the proportion of our work delivered from these higher margin locations. Over time we have expanded and further diversified our delivery network by adding facilities in these locations, offering a significant relative cost advantage. Our percentage of workstations in nearshore and offshore centers is approximately 95% as of March 31, 2024. We regularly evaluate new markets to continue to service our clients.
Provider Performance
Generally, our clients will re-allocate spend and market share in favor of outsourcing providers who consistently perform better and add more value than their competitors. Such re-allocation of spend can either take place on a short-term basis as higher performing providers are shielded by the client against demand volatility, or on a longer term basis as the client shifts more and more of its overall outsourcing spend and volume to higher performing providers. Our revenues have generally increased as a result of performance-based market share gains with our existing clients, as well as due to our new client wins.

Sales Cycles and New Client Wins

We have a strong track record of winning key new client accounts and as a result of our land and expand strategy, we have been successful in winning an increasing number of new client engagements, and subsequently increasing our revenues with these clients period over period. Historically, our in-year new client wins have generated 2.5x to 3.0x revenue in the second and third years of the engagement. However, in the slowing economic environment, our sales cycles were lengthening in fiscal year 2023 and the first two quarters of fiscal year 2024. We have seen sales activity pick up pace in the third quarter of fiscal year 2024.
Client Concentration
During the nine months ended March 31, 2024, our largest client accounted for 13%, while our three largest clients accounted for 29% of our consolidated revenues. We believe client diversification is an important attribute in a challenging market.

Seasonality

Our business performance is subject to seasonal fluctuations. These seasonal effects cause differences in revenues and expenses among the various quarters of any financial year, which means that the individual quarters should not be directly compared with each other or be used to predict annual financial results.
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Pricing
Our revenues are dependent upon both volumes and unit pricing for our services. Client pricing is often expressed in terms of a base price per minute or hour as well as, in limited cases, with bonuses and occasionally penalties depending upon our achievement of certain client objectives. During the fiscal year ended June 30, 2023 and the nine months ended March 31, 2024, the tightening in the global labor market and corresponding wage inflation, as well as increasing facilities expenses has resulted in us pursuing and successfully negotiating price increases or COLA with many of our clients.
The current economic environment is also encouraging our clients to consider locating more of their support offshore. Within our customer engagement solutions, pricing for services delivered from onshore locations is higher than pricing for services delivered from offshore locations, largely driven by higher wage levels in onshore locations. Accordingly, a shift in service delivery location from onshore to offshore locations results in a lower price for our clients and a decline in our absolute revenues; however, our margins tend to increase, in percentage and often in absolute terms, as compared to onshore service delivery.
Results of Operations
The following summarizes the results of our operations for the three and nine months ended March 31, 2024 and 2023:

Three Months Ended
March 31,		Nine Months Ended
March 31,
($000s)2024202320242023
Revenue$126,795 $131,557 $384,038 $398,687 
Cost of services87,083 91,693 271,163 287,636 
Selling, general and administrative23,565 22,139 71,462 64,946 
Depreciation and amortization4,865 4,674 14,853 13,933 
Income from operations$11,282 $13,051 $26,560 $32,172 
Interest income431 205 1,529 391 
Interest expense(124)(105)(339)(553)
Income before income taxes$11,589 $13,151 $27,750 $32,010 
Provision for income tax expense(1,279)(1,872)(3,940)(4,938)
Net income$10,310 $11,279 $23,810 $27,072 
Three Months Ended March 31, 2024 and 2023
Revenue

Our revenue was $126.8 million during the three months ended March 31, 2024, a decrease of $4.8 million, or 3.6%, compared to the prior year quarter. This decrease was primarily driven by macroeconomic factors impacting the FinTech and Telecommunications verticals, which decreased $7.0 million or 28.7%, and $3.6 million or 16.7%, respectively, from the comparative period. These decreases were partially offset by increases in the Retail & E-commerce vertical of $2.7 million, or 9.3%, and Travel, Transportation & Logistics vertical of $2.5 million, or 17.7% from the comparative period.

As a percentage of total revenue, the revenue from our Retail & E-commerce vertical increased to 24.9% during the three months ended March 31, 2024 compared to 22.0%, and the revenue from our Travel, Transportation & Logistics vertical increased to 13.1% compared to 10.7% during the prior year quarter. Conversely, the revenue
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from our FinTech vertical decreased to 13.7% compared to 18.5%, and the revenue from our Telecommunications vertical decreased to 14.0% compared to 16.2% during the prior year quarter.
Operating Expenses

Cost of services
Cost of services was $87.1 million during the three months ended March 31, 2024, a decrease of $4.6 million, or 5.0%, compared to the prior year quarter. The decrease in cost of services was primarily due to decreases in payroll and related costs, facilities, telecom, reseller commissions and lead costs, and printing and production related expenses.
Payroll and related costs were $67.2 million during the three months ended March 31, 2024, a decrease of $3.2 million, or 4.5%, compared to the prior year quarter. As a percent of revenue, payroll cost decreased to 53.0% during the three months ended March 31, 2024 compared to 53.5% during the prior year quarter, reflecting the continuing trend of shifting volume to lower cost regions.
Facilities expenses, including rent and utilities, were $12.2 million during the three months ended March 31, 2024, a decrease of $0.7 million, or 5.7%, compared to the prior year quarter. Telecom, reseller commissions and lead costs, and local transportation and other site related expenses were $6.0 million during the three months ended March 31, 2024, a decrease of $0.7 million, or 10.6%, compared to the prior year quarter. These decreases were primarily due to the site optimization efforts completed in the fourth quarter of fiscal year 2023.
Selling, general and administrative expense (“SG&A”)

SG&A expense was $23.6 million during the three months ended March 31, 2024, an increase of $1.4 million, or 6.4%, compared to the prior year quarter. The increase in SG&A expense was primarily due to impairment losses, severance costs, and IT expenses, partially offset by decreases in variable compensation, travel, and shared-based compensation expense.

During the three months ended March 31, 2024, the Company eliminated certain positions that it considered redundant and incurred approximately $1.3 million in severance costs. We also determined that the estimated fair value for certain assets at two of our delivery locations no longer exceeded their carrying value, and recorded impairment losses of $1.3 million during the three months ended March 31, 2024. IT expenses increased $0.3 million due to continued investments in core business management systems. These increases were partially offset by decreases in variable compensation, travel, and share-based compensation expense.
Depreciation and amortization expense (“D&A”)
D&A expense was $4.9 million during the three months ended March 31, 2024, an increase of $0.2 million or 4.1% compared to the prior year quarter. As a percentage of revenue, depreciation and amortization expense increased to 3.8% during the three months ended March 31, 2024 compared to 3.6% in the comparative period.
Income from operations
Income from operations was $11.3 million during the three months ended March 31, 2024 compared to $13.1 million compared to the prior year quarter. The operating margin was 8.9% for three months ended March 31, 2024, down from 9.9% for the three months ended March 31, 2023. The decrease was primarily driven by lower revenue and the impairment losses and severance costs, partially offset by lower facilities costs, variable compensation, travel, and share-based compensation expense.
Interest income

Interest income during the three months ended March 31, 2024 was $0.4 million compared to $0.2 million for the three months ended March 31, 2023 as income on invested funds increased compared to the prior year quarter.

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Interest expense

Interest expense during the three months ended March 31, 2024 was $0.1 million, consistent with the prior year quarter.
Provision for Income Taxes

Income tax expense was $1.3 million during three months ended March 31, 2024, a decrease of $0.6 million when compared with the same period of the prior year, primarily due to lower pre-tax income and a lower effective tax rate in the current year. The effective tax rate was 11.0% and 14.2% for the three months ended March 31, 2024 and 2023, respectively. The changes in effective tax rates between these periods was primarily attributable to changes in revenue mix across our taxable jurisdictions and discrete items recorded in the quarter.
Nine Months Ended March 31, 2024 and 2023
Revenue

Our revenue was $384.0 million during the nine months ended March 31, 2024, a decrease of $14.6 million, or 3.7%, compared to the same prior year period. This decrease was primarily driven by macroeconomic factors impacting the FinTech and Telecommunications verticals, which decreased $22.6 million or 29.5%, and $8.3 million or 12.4%, respectively, from the comparative period. These decreases were partially offset by increases in the HealthTech vertical of $6.3 million, or 14.6%, Retail & E-commerce vertical of $5.6 million, or 6.0%, and Travel, Transportation & Logistics vertical of $3.2 million, or 6.9%, from the comparative period.

As a percentage of total revenue, the revenue from our Retail & E-commerce vertical increased to 25.8% during the nine months ended March 31, 2024 compared to 23.5%, the revenue from our HealthTech vertical increased to 12.9% compared to 10.8%, and the revenue from our Travel, Transportation & Logistics vertical increased to 13.0% compared to 11.7% during the same prior year period. Conversely, the revenue from our FinTech vertical decreased to 14.0% compared to 19.2%, and the revenue from our Telecommunications vertical decreased to 15.2% compared to 16.7% during the same prior year period.
Operating Expenses

Cost of services
Cost of services was $271.2 million during the nine months ended March 31, 2024, a decrease of $16.5 million, or 5.7%, compared to the same prior year period. The decrease in cost of services was primarily due to decreases in payroll and related costs, facilities, telecom, local transportation and other site related expenses, partially offset by an increase in reseller commissions and lead expenses.
Payroll and related costs were $208.4 million during the nine months ended March 31, 2024, a decrease of $13.4 million, or 6.0%, compared to the same prior year period. As a percent of revenue, payroll costs decreased to 54.3% during the nine months ended March 31, 2024 compared to 55.6% during the same period in the prior year reflecting the continuing trend of shifting volume to lower cost regions.

Facilities expenses, including rent and utilities, were $37.7 million during nine months ended March 31, 2024, a decrease of $1.8 million, or 4.6%, compared to the same period in the prior year. Telecom, local transportation and other site related expenses were $10.9 million during the nine months ended March 31, 2024, a decrease of $1.9 million, or 14.7%, compared to the same period in the prior year. These decreases were primarily due to the site optimization efforts completed in the fourth quarter of fiscal year 2023.
Lead expenses were $9.2 million during the nine months ended March 31, 2024, an increase of $0.7 million, or 8.7%, compared to the same period in the prior year. These increases were primarily due to increases in the utilization of our third-party affiliates for inbound inquiries as well as search engine costs in connection with our digital sales and marketing efforts, which may continue throughout the remainder of fiscal year 2024.



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Selling, general and administrative expense (“SG&A”)

SG&A expense was $71.5 million during the nine months ended March 31, 2024, an increase of $6.5 million, or 10.0%, compared to the same period in the prior year. The increase in SG&A expense was primarily due to impairment losses, increases in payroll and related costs (including severance), IT expenses, legal and professional fees, and facilities expenses, partially offset by decreases in share-based compensation expense.

The increase in payroll and related costs of $2.9 million was primarily driven by severance costs of $1.3 million related to the elimination of certain positions that we considered redundant, and investments in our technology, sales and marketing, and client service teams as we continue to focus on revenue growth. IT expenses increased $1.5 million due to continued investments in cybersecurity and core business management systems. The increase in legal and professional fees of $0.9 million was primarily related to strategic projects and higher compliance expenses. Facilities expense, including rent and utilities, increased by $0.6 million as the business continues to expand in our offshore region. During the nine months ended March 31, 2024, we determined that the estimated fair value for certain assets at two of our delivery centers no longer exceeded their carrying value, and recorded impairment losses of $1.3 million. These increases were partially offset by decreases in share-based compensation expense.
Depreciation and amortization expense (“D&A”)
D&A expense was $14.9 million during the nine months ended March 31, 2024, an increase of $0.9 million or 6.6%, compared to the same prior year period. As a percentage of revenue, depreciation and amortization expense increased to 3.9% during nine months ended March 31, 2024 compared to 3.5% in the comparative period.
Income from operations

Income from operations was $26.6 million during the nine months ended March 31, 2024 compared to $32.2 million compared to the same period in the prior year. The operating margin was 6.9% for nine months ended March 31, 2024, down from to 8.1% for the nine months ended March 31, 2023. The decrease was primarily driven by lower revenue, impairment losses, severance costs, and planned investments in our technology, sales and marketing, and client service functions as we continue to focus on revenue growth, partially offset by lower share-based compensation expense.

Interest income

Interest income during the nine months ended March 31, 2024 was $1.5 million compared to $0.4 million for the nine months ended March 31, 2023 as income on invested funds increased compared to the same period in the prior year.

Interest expense

Interest expense during the nine months ended March 31, 2024 was $0.3 million, down from $0.6 million during the nine months ended March 31, 2023 driven by lower borrowings.
Provision for Income Taxes

Income tax expense was $3.9 million during nine months ended March 31, 2024, a decrease of $1.0 million when compared with the same period in the prior year, primarily due to lower pre-tax income and a lower effective tax rate in the current year. The effective tax rate was 14.2% and 15.4% for the nine months ended March 31, 2024 and 2023, respectively. The changes in effective tax rates between these periods was primarily attributable to changes in revenue mix across our taxable jurisdictions and discrete items recorded in the quarter.
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Non-GAAP Financial Measures
We present non-GAAP financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. We also use these measures internally to establish forecasts, budgets and operational goals to manage and monitor our business, as well as evaluate our underlying historical performance, as we believe that these non-GAAP financial measures provide a more helpful depiction of our performance of the business by encompassing only relevant and manageable events, enabling us to evaluate and plan more effectively for the future. The non-GAAP financial measures may not be comparable to other similarly titled measures of other companies, have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of our operating results as reported in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). Non-GAAP financial measures and ratios are not measurements of our performance, financial condition or liquidity under U.S. GAAP and should not be considered as alternatives to operating profit or net income (loss) or as alternatives to cash flow from operating, investing or financing activities for the period, or any other performance measures, derived in accordance with U.S. GAAP.
Adjusted net income and adjusted earnings per share
Adjusted net income is a non-GAAP profitability measure that represents net income before the effect of the following items: non-recurring expenses (including legal and settlement costs), severance costs, impairment losses, warrant contra revenue, foreign currency gains and losses, gain on sale of subsidiaries, and share-based compensation expense, net of the tax impact of such adjustments. We define adjusted earnings per share as adjusted net income divided by weighted average diluted shares outstanding.
We use adjusted net income and adjusted earnings per share internally to establish forecasts, budgets and operational goals to manage and monitor our business, as well as evaluate our underlying historical performance. We believe that adjusted net income and adjusted earnings per share are meaningful indicators of performance as it reflects what we believe is closer to the actual results of our business performance by removing items that we believe are not reflective of our underlying business. We also believe that adjusted net income and adjusted earnings per share may be widely used by investors, securities analysts and other interested parties as a supplemental measure of performance.
Adjusted net income and adjusted earnings per share may not be comparable to other similarly titled measures of other companies and has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our operating results as reported under U.S. GAAP. Because of these limitations, you should consider adjusted net income and adjusted earnings per share in conjunction with other U.S. GAAP financial performance measures, including net income from operations and net income, among others.

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The following table provides a reconciliation of net income and net income margin to adjusted net income and adjusted net income margin, and diluted earnings per share to adjusted earnings per share for the periods presented:

($000s, except per share amounts)Three Months Ended
March 31,		Nine Months Ended
March 31,
2024202320242023
Net income$10,310 $11,279 $23,810 $27,072 
Net income margin8.1 %8.6 %6.2 %6.8 %
Non-recurring expenses— 84 — 876 
Severance costs1,506 — 1,506 — 
Impairment losses1,257 — 1,257 — 
Warrant contra revenue299 260 893 856 
Foreign currency gains(471)(325)(571)(422)
Gain on sale of subsidiaries— (246)— (246)
Share-based compensation expense466 1,318 2,741 3,973 
Total adjustments$3,057 $1,091 $5,826 $5,037 
Tax impact of adjustments1(809)(696)(1,480)(1,406)
Adjusted net income$12,558 $11,674 $28,156 $30,703 
Adjusted net income margin9.9 %8.9 %7.3 %7.7 %
Diluted earnings per share$0.57 $0.59 $1.29 $1.44 
Per share impact of adjustments to net income0.12 0.02 0.24 0.19 
Adjusted earnings per share$0.70 $0.61 $1.53 $1.63 
Weighted average diluted shares outstanding18,036 19,065 18,458 18,861 

EBITDA, adjusted EBITDA, and adjusted EBITDA margin
EBITDA is a non-GAAP profitability measure that represents net income before the effect of the following items: interest expense, income tax expense, and depreciation and amortization. Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before the effect of the following items: non-recurring expenses (including legal and settlement costs), severance costs, impairment losses, interest income, warrant contra revenue, foreign currency gains and losses, gain on sale of subsidiaries, and share-based compensation expense. Adjusted EBITDA margin is a non-GAAP profitability measure that represents adjusted EBITDA divided by revenue.
We use EBITDA, adjusted EBITDA, and adjusted EBITDA margin internally to establish forecasts, budgets and operational goals to manage and monitor our business, as well as evaluate our underlying historical performance. We may use adjusted EBITDA as a vesting trigger in some performance-based restricted stock units. We believe that EBITDA, adjusted EBITDA and adjusted EBITDA margin are meaningful indicators of the health of our business as they provide additional information to investors about certain non-cash or non-recurring charges that we believe may not continue at the same level in the future or be reflective of our long-term performance. We also believe that EBITDA, adjusted EBITDA and adjusted EBITDA margin are widely used by investors, securities analysts, and other interested parties as a supplemental measure of performance.
1 The tax impact of each adjustment is calculated using the effective tax rate in the relevant jurisdictions.

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EBITDA, adjusted EBITDA and adjusted EBITDA margin may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results as reported under U.S. GAAP. Some of these limitations are as follows:
•although depreciation and amortization expense is a non-cash charge, the assets being depreciated and amortized may have to be replaced in the future. EBITDA, adjusted EBITDA and adjusted EBITDA margin do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
•EBITDA, adjusted EBITDA and adjusted EBITDA margin are not intended to be a measure of free cash flow for our discretionary use, as they do not reflect: (i) changes in, or cash requirements for, our working capital needs; (ii) debt service requirements; (iii) tax payments that may represent a reduction in cash available to us; and (iv) other cash costs that may recur in the future;
•other companies, including companies in our industry, may calculate similarly titled measures differently, which reduces their usefulness as comparative measures.
Because of these and other limitations, you should consider EBITDA, adjusted EBITDA and adjusted EBITDA margin in conjunction with U.S. GAAP financial performance measures, including cash flows from operating activities, investing activities and financing activities, net income, net income margin, and other financial results.
The following table provides a reconciliation of net income and net income margin to EBITDA, adjusted EBITDA and adjusted EBITDA margin for the periods presented:
Three Months Ended
March 31,		Nine Months Ended
March 31,
($000s)2024202320242023
Net income$10,310 $11,279 $23,810 $27,072 
Net income margin8.1 %8.6 %6.2 %6.8 %
Interest expense124 105 339 553 
Income tax expense1,279 1,872 3,940 4,938 
Depreciation and amortization4,865 4,674 14,853 13,933 
EBITDA$16,578 $17,930 $42,942 $46,496 
Non-recurring expenses— 84 — 876 
Severance costs1,506 — 1,506 — 
Impairment losses1,257 — 1,257 — 
Interest income(431)(205)(1,529)(391)
Warrant contra revenue299 260 893 856 
Foreign currency gains(471)(325)(571)(422)
Gain on sale of subsidiaries— (246)— (246)
Share-based compensation expense466 1,318 2,741 3,973 
Adjusted EBITDA$19,204 $18,816 $47,239 $51,142 
Adjusted EBITDA margin15.1 %14.3 %12.3 %12.8 %
Net income margin
Net income margin was 8.1% for the three months ended March 31, 2024 compared to 8.6% during the prior year quarter and 6.2% for the nine months ended March 31, 2024 compared to 6.8% during the prior year period. The decreases were primarily driven by lower revenue, planned investments in our technology, sales and marketing, and client service functions as we continue to focus on revenue growth, and the impairment losses and severance costs recorded during the third quarter of our fiscal year 2024.
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Adjusted EBITDA margin

Adjusted EBITDA margin was 15.1% for the three months ended March 31, 2024 compared to 14.3% during the prior year quarter, and 12.3% for the nine months ended March 31, 2024 compared to 12.8% during the prior year period. The increase for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily driven by cost optimization efforts undertaken during the quarter and the shift of work to higher margin offshore locations. The decrease for the nine months ended March 31, 2024 compared to the nine months ended March 31, 2023 was primarily driven by lower revenue, including training revenue recognized, and planned investments in our technology, sales and marketing, and client service functions as we continue to focus on revenue growth.
Free cash flow
Free cash flow is a non-GAAP liquidity measure that represents net cash provided by operating activities less capital expenditures. While we believe that free cash flow provides useful information to investors in understanding and evaluating our liquidity position in the same manner as our management, our use of free cash flow has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Further, other companies, including companies in our industry, may adjust their cash flows differently, which may reduce the value of free cash flow as a comparative measure. The following table reconciles net cash provided by operating activities to free cash flow, for the periods presented:

Three Months Ended
March 31,		Nine Months Ended
March 31,
($000s)2024202320242023
Net cash provided by operating activities$11,431 $13,569 $18,478 $24,424 
Less: capital expenditures1,691 3,725 6,635 15,231 
Free cash flow$9,740 $9,844 $11,843 $9,193 
Net cash
Net cash is a non-GAAP liquidity measure that represents cash and cash equivalents less total debt. We believe that net cash provides useful information to investors in understanding and evaluating our ability to pay off debt. Our use of net cash has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Further, other companies, including companies in our industry, may adjust their cash or debt differently, which may reduce the value of net cash as a comparative measure.
Net cash is calculated below:
March 31,June 30,
($000s)20242023
Cash and cash equivalents$50,665 $57,429 
Debt
Current$585 $413 
Non-current820 600 
Total debt$1,405 $1,013 
Net cash$49,260 $56,416 

The decrease in cash and cash equivalents and net cash was primarily driven by stock repurchases during the nine months ended March 31, 2024.

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JOBS Act Accounting Election
We qualify as an emerging growth company pursuant to the provisions of the JOBS Act. The JOBS Act permits an emerging growth company like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have elected to use the extended transition period until we are no longer an emerging growth company or until we choose to opt out of the extended transition period affirmatively and irrevocably. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies.
Liquidity and Capital Resources
As of March 31, 2024, our principal sources of liquidity were cash and cash equivalents totaling $50.7 million, cash flows from operations, and the unused availability under our existing credit facilities of $80.0 million.

As of March 31, 2024, our total indebtedness was $1.4 million, consisting of our finance leases. We were in compliance with all debt covenants as of March 31, 2024. See Note 6, "Debt" in the consolidated financial statements included in this Form 10-Q for additional information regarding our debt.

We use these resources to finance our operations, expand current delivery centers, open new delivery centers, invest in upgrades of technology, service offerings, and for other strategic initiatives, such as acquiring or investing in complementary businesses or intellectual property rights, or stock buybacks. Our future liquidity requirements will depend on many factors, including our growth rate and the timing and extent of spending to engage in the activities mentioned above. We believe that our existing cash balance together with cash generated from our operations, and availability under our existing credit facilities will be sufficient to meet our liquidity requirements for at least the next twelve months.

To the extent additional funds are necessary to meet our long-term liquidity needs as we execute on our business strategy, we anticipate that they will be obtained through the utilization of current availability under our $80 million revolving credit facility (as amended, the "PNC Credit Facility") with PNC Bank, N.A. ("PNC"), additional indebtedness, additional equity financings or a combination of these potential sources of funds; however, such additional financing may not be available on favorable terms, or at all. If we are unable to raise additional funds when desired, our business, financial condition and results of operations could be adversely affected.

On September 18, 2023, the Company announced that the board of directors (the "Board") had authorized a share repurchase program under which the Company may repurchase up to $30 million of its shares over the next six months beginning September 18, 2023 (the “Share Repurchase Program”). During the three and nine months ended March 31, 2024, we repurchased 501,549 and 1,124,876 shares of our common shares under the Share Repurchase Program for $8.1 million and $18.6 million, respectively, which we funded with available cash. The Share Repurchase Program expired on March 18, 2024.

The following discussion highlights our cash flow activities during the nine months ended March 31, 2024:
Nine months ended March 31,
($000s)20242023
Net cash inflow / (outflow) from
Operating activities$18,478 $24,424 
Investing activities(6,635)(15,316)
Financing activities(18,583)(13,748)
Effects of exchange rate difference on cash and cash equivalents(24)(515)
Net decrease in cash and cash equivalents$(6,764)$(5,155)
Cash and cash equivalents at beginning of the period57,429 48,831 
Cash and cash equivalents at the end of the period$50,665 $43,676 

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Cash and cash equivalents

The Company manages a centralized global treasury function with a focus on safeguarding and optimizing the use of its global cash and cash equivalents. The majority of the Company’s cash is held in large U.S. banks in U.S. dollars and outside of the U.S. in U.S. dollars and foreign currencies in regional or local banks in the countries it operates in. The Company believes that its cash management policies and practices effectively mitigate its risk relating to its global cash. However, the Company can provide no assurances that it will not sustain losses.

As of March 31, 2024, we had cash and cash equivalents of $50.7 million, including $5.5 million located outside of the United States, and $2.2 million that is subject to certain local regulations on repatriation. As of June 30, 2023, we had cash and cash equivalents of $57.4 million, including $5.6 million located outside of the United States, and $1.7 million that is subject to certain local regulations on repatriation. Our cash position as of March 31, 2024 decreased primarily due to share repurchases during the period, partially offset by lower capital expenditures and debt repayments compared to prior periods.
Cash Flows from Operating Activities

Net cash inflow from operating activities during the nine months ended March 31, 2024 decreased to $18.5 million compared to $24.4 million during the same period in the prior year. The decrease in net cash inflow from operating activities was primarily driven by weaker operating results due to lower revenue, including training revenue recognized, net changes in operating assets and liabilities of $0.4 million, and higher cash taxes paid during the nine months ended March 31, 2024.

Free cash flow for the nine months ended March 31, 2024 increased to $11.8 million compared to $9.2 million during the same period in the prior year, due to lower capital expenditures as we utilize available capacity, offset by lower operating cash flow.
Cash Flows from Investing Activities
During the nine months ended March 31, 2024, we had net expenditures of $6.6 million on investing activities primarily related to purchases of IT and telecommunications equipment.

During the nine months ended March 31, 2023, we had expenditures of $15.2 million on investing activities related to purchases of leasehold improvements, IT and telecommunications equipment.
Cash Flows from Financing Activities
During the nine months ended March 31, 2024, we expended $18.6 million on financing activities, related to purchasing our common shares under the Share Repurchase Program for $18.6 million.
During the nine months ended March 31, 2023, we expended $13.7 million on financing activities, including $15.3 million related to the repayment of debt, both term and revolving, offset primarily by net cash received from issuance of common stock of $1.6 million.
Critical Accounting Policies and Estimates

The Company’s consolidated financial statements and accompanying notes included in this Form 10-Q are prepared in accordance with U.S. GAAP. A summary of the Company’s significant accounting policies and critical accounting estimates can be found in the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section of the Annual Report. There have been no material changes to our significant accounting policies or critical accounting estimates as reported in the Annual Report.

The Company capitalizes qualifying implementation costs in accordance with ASC 350-40, Goodwill and Other, Internal-Use Software. During the nine months ended March 31, 2024, the Company commenced the upgrade of our Enterprise Resource Planning and Human Capital Management systems to a cloud computing software solution, and capitalized $1.2 million and $2.4 million of qualifying implementation costs during the three and nine months ended March 31, 2024, respectively. The Company will continue to capitalize qualifying
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implementation costs until the new software solution is substantially complete and ready for the Company's intended use.
Recent Accounting Pronouncements
Refer to Note 1, "Overview and Summary of Significant Accounting Policies" in the consolidated financial statements included in this Form 10-Q for additional information regarding recently adopted accounting pronouncements.
ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company’s activities expose it to a variety of financial and market risk (including foreign currency and interest rate risk).
Foreign currency exchange risk
The Company serves many of its U.S.-based clients through our delivery centers located in various countries, primarily in the Philippines, Pakistan, Nicaragua, and Jamaica. Although contracts with these clients are typically priced in U.S. dollars, a substantial portion of related costs is denominated in the local currency of the country where services are provided, resulting in foreign currency exposure that could have an impact on our results of operations. Our primary foreign currency exposures are in Philippine Peso ("PHP"), Jamaican Dollar, and Pakistani Rupee. There can be no assurance that we can take actions to mitigate such exposure in the future, and if taken, that such actions will be successful or that future changes in currency exchange rates will not have a material adverse impact on our future operating results. A significant change in the value of the U.S. dollar against the currency of one or more countries where we operate may have a material adverse effect on our financial condition and results of operations.
To mitigate foreign exchange fluctuations on the PHP, we hedge a portion of our Philippine operating costs. While our hedging strategy can protect us from short term risks related to foreign currency movements, an overall strengthening of the PHP would adversely impact margins over the long term.

Based upon our level of operations during the nine months ended March 31, 2024, a 10% appreciation/depreciation in the PHP against the U.S. dollar would have increased or decreased our expenses incurred and paid in PHP by approximately $9.1 million or $7.5 million, respectively. Based upon our level of operations during the nine months ended March 31, 2024, a 10% appreciation/depreciation in the Jamaican Dollar against the U.S. dollar would have increased or decreased our expenses incurred and paid in Jamaican Dollar by approximately $4.3 million or $3.5 million, respectively. Based upon our level of operations during the nine months ended March 31, 2024, a 10% appreciation/depreciation in the Pakistani Rupee against the U.S. dollar would have increased or decreased our expenses incurred and paid in Pakistani Rupee by approximately $2.8 million or $2.3 million, respectively.

To mitigate against credit and default risk, we only enter into derivative contracts and other financial instruments with investment grade financial institutions and our derivative valuations reflect the creditworthiness of our counterparties. As of the date of this Form 10-Q, we have not experienced, nor do we anticipate experiencing, any counterparty defaults.
Refer to Note 5. “Derivatives”, in the consolidated financial statements for further information on our foreign currency hedging program.
Interest rate risk
The Company’s exposure to market risk for changes in interest rates relates primarily to the cash and bank balances and credit facilities. Borrowings under the PNC Credit Facility bear interest at SOFR plus 1.75% and/or negative 0.5% of the PNC Commercial Lending Rate for domestic loans. The Company did not have any outstanding balances on its credit facilities as of March 31, 2024. Accordingly, a hypothetical 10% increase or decrease in SOFR would not cause a material increase or decrease in our interest expense over the next 12 months.
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ITEM 4.    CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act of 1934, as amended (the "Exchange Act")) that are designed to ensure that information required to be disclosed in our reports that we file or submit under the Exchange Act, are recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (our principal executive officer) and Chief Financial Officer (our principal financial officer) as appropriate, to allow for timely decisions regarding required disclosure.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2024. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of March 31, 2024, our disclosure controls and procedures were not effective because of the material weakness in internal control over financial reporting related to complex non-routine transactions as described in Part II, Item 9A “Controls and Procedures” of our Annual Report, which also discloses our remediation plan.

The Company is continuing to implement its remediation plan. In accordance with the Company’s internal controls policies, the material weakness will not be considered fully remediated until the actions in the remediation plan have been completed and have operated effectively for a sufficient period of time. Accordingly, the material weakness has not been remediated as of March 31, 2024.

Changes in Internal Control Over Financial Reporting

Except for the execution of our remediation plan of the material weakness noted above, there have been no changes in our internal controls over financial reporting during the quarter ended March 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II — OTHER INFORMATION
Item 1. Legal Proceedings
The information required with respect to this item can be found under Note 7, "Commitments and Contingencies" in the unaudited consolidated financial statements included in this Form 10-Q.
Item 1A. Risk Factors
We are subject to various risks that could have a material adverse impact on our financial position, results of operations or cash flows. Although it is not possible to predict or identify all such risks and uncertainties, they may include, but are not limited to, the factors discussed under "Risk Factors" in the Annual Report. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our financial position, results of operations or cash flows. There have been no material changes to the risk factors included in the Annual Report. We encourage you to carefully consider the risk factors set forth in the Annual Report and the other information set forth elsewhere in this Form 10-Q.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Purchases of Equity Securities By The Issuer
On September 18, 2023, the Company announced that the Board had authorized a share repurchase program under which the Company may repurchase up to $30 million of its shares over the six months beginning September 18, 2023 (the "Share Repurchase Program"). Under the Share Repurchase Program, the Company repurchased 1,124,876 shares of our common shares for $18.6 million, The Share Repurchase Program expired as of March 18, 2024.
On May 1, 2024, the Board authorized a share repurchase program to commence after release of the Company's earnings for the third quarter on May 9, 2024, under which the Company may repurchase up to $30 million of its shares during the next twelve months (the "2024 Share Repurchase Program").
The Company's proposed repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations. The actual timing, number, and dollar amount of repurchase transactions will be determined by management at its discretion and will depend on a number of factors including, but not limited to, the market price of the Company’s common shares, general market and economic conditions, and compliance with Rule 10b-18 and/or Rule 10b5-1 under the Exchange Act.

The Board will review the repurchase program periodically and may authorize adjustment of its terms and size or suspend or discontinue the program. The Company expects to fund the repurchases under the 2024 Share Repurchase Program with its existing cash balance.

The 2024 Share Repurchase Program does not obligate the Company to acquire any particular amount of common shares.



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During the three months ended March 31, 2024, our purchases of common shares were as follows:

PeriodTotal Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced ProgramApproximate Dollar Value of Shares That May Yet Be Purchased Under the Program
($000s)
January 1 - 31, 2024117,019 $17.89 117,019 $17,496 
February 1 - 29, 2024205,063 $15.57 205,063 $14,304 
March 1 - 31, 2024179,467 $15.69 179,467 $— 
Total501,549 $16.15 501,549 $— 

Recent Sale of Unregistered Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
(a) Amendment to PNC Bank Revolving Credit and Security Agreement
On May 6, 2024, the Company's subsidiaries, Ibex Global Solutions, Inc., Digital Globe Services, LLC, TelSatOnline, LLC, 7 Degrees, LLC, and iSky, LLC (collectively the "Ibex US Entities") entered into the Seventeenth Amendment to the Revolving Credit and Security Agreement and Consent (the "Amendment") with PNC Bank, National Association ("PNC"). The Amendment provides PNC's consent to the assignment of certain customer contracts (the "Contract Assignments") by the Ibex US Entities to the Company's subsidiary, Ibex Global FZ-LLC, provided that (i) the contract revenues associated with such Contract Assignments, upon the effectiveness of such Contract Assignments, shall not in the aggregate be greater than $175 million and (ii) the Ibex US Entities comply with additional reporting requirements.

(c) Trading Plans

During the quarter ended March 31, 2024, the Company's directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated (including by modification) a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as such terms are defined in Item 408 of Regulation S-K, as follows:

On February 22, 2024, Mr. Mohammed Khaishgi, the Company's Chairman of the Board, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 300,000 shares of the Company's common stock between May 23, 2024 and February 21, 2025, subject to such shares reaching certain price points.

On February 22, 2024, the Allibhoy Khaishgi Family Foundation, represented by its President, Mr. Mohammed Khaishgi, the Company's Chairman of the Board, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 135,000 shares of the Company's common stock between May 23, 2024 and February 21, 2025, subject to such shares reaching certain price points.

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On March 13, 2024, Ms. Christy O'Connor, the Company's Chief Legal Officer and Assistant Secretary, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 10,000 shares of the Company's common stock between June 12, 2024 and February 21, 2025, subject to such shares reaching certain price points.

On March 15, 2024, Mr. Robert Dechant, the Company's Chief Executive Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 20,000 shares of the Company's common stock between June 14, 2024 and March 14, 2025, subject to such shares reaching certain price points.

On March 15, 2024, Mr. Paul Inson, the Company's Chief People Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 32,785 shares of the Company's common stock between June 14, 2024 and February 23, 2025, subject to such shares reaching certain price points.

On March 18, 2024, Mr. Shuja Keen, a Director of the Company, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 10,020 shares of the Company's common stock between June 17, 2024 and February 18, 2025, subject to such shares reaching a certain price point.

On March 18, 2024, Adia Global LLC, a limited liability company wholly owned by Mr. Shuja Keen, a Director of the Company, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 91,110 shares of the Company's common stock between June 17, 2024 and February 18, 2025, subject to such shares reaching certain price points.



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Item 6. Exhibits
EXHIBIT INDEX

Incorporated by Reference
Exhibit
Number		Description of DocumentFormFile NumberExhibitFiling
Date		Filed or
Furnished
Herewith
3.1F-1333-2398213.107/29/2020
3.220-F001-384421.210/23/2020
10.1X
31.1X
31.2X
32.1X
101.INSInline XBRL Instance DocumentX
101.SCHInline XBRL Taxonomy Extension Schema DocumentX
101.CALInline XBRL Taxonomy Extension Calculation Linkbase DocumentX
101.DEFInline XBRL Taxonomy Extension Definition Linkbase DocumentX
101.LABInline XBRL Taxonomy Extension Label Linkbase DocumentX
101.PREInline XBRL Taxonomy Extension Presentation Linkbase DocumentX
104Cover Page Interactive Data File (formatted in Inline XBRL and included as Exhibit 101)X

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
IBEX LIMITED
(Registrant)
Date:
May 9, 2024
By:/s/ Robert Dechant
Robert Dechant
Chief Executive Officer
(Principal Executive Officer)
Date:
May 9, 2024
By:/s/ Taylor Greenwald
Taylor Greenwald
Chief Financial Officer
(Principal Financial and Accounting Officer)
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