IBEX Limited (NASDAQ:IBEX) Q2 2024 Earnings Call Transcript

It’s not really driven by kind of AI technologies just taking a swath of volume out of the equation. Now, what we are seeing, though, is in the world of clients looking at AI, they are identifying areas of their business and engaging us to help solve where AI can take volume out. And here is what I would say kind of the way we think about it is, in their world of digital transformation, trying to take a classic voice call and try to drive that to digital, self serve, kind of AI-assisted, or AI entirely soft. So those are out there, we are engaging with some clients to solve that. That will take some volume out of the equation, but more importantly, from an IBEX standpoint, is, I think, that plays into our strength. 80% of our business today is non-voice.

As we’ve talked about, it’s very heavy digital first. It plays into the strength of our Wave iX solutions. And so I think, in spite of that, we think our strategy and our wins will help offset some of that downturn. Now, our strategy, and we’ve seen these dimensions kind of occurring for several quarters, I think, it hit us last of all the BPOs, because most of my peers have been under a lot of pressure for a while. For us, it’s been the last two quarters. Now we’ve been investing into our sales engine to try to outrun this, and I think we are building a business, and this is what I’m probably most excited about. I think that we’re building a business in spite of these elements that we have the ability with how we’re winning, how that pipeline is really heating up and we’re taking on, and our win rates are through the roof.

I feel like we can outrun that. And as we look at our business, I think, the inflection point for us is in Q4.

Ryan Potter: Got it. That all makes sense. And tagging on that last part of it was good to see the sales momentum continuing the quarter from what you did in 1Q and the early part of 2Q. Is there any additional color you can give on those new deals in the quarter and how quickly you think they can ramp? Do they have the potential to become top clients for you? And I guess, how much of this would you attribute to AI or having the capacity offshore to help win these deals?

Bob Dechant: Sure. So both of our largest wins that we’re really, really excited about, that we went against the biggest of the biggest. Let me give you two dynamics. One was in our near shore region in Jamaica, which we’re thinking confident that we’re already expanding into Nicaragua with them. The other is in the Philippines, in the provincial play in our Philippines. So, a, we’re winning across both theaters now. My team has done win reviews with both clients, and the win review had a very common theme. You guys were completely leaned in from me, the CEO, to my ELT team, and then to my entire kind of support function teams. That include our training heads, our workforce heads, and our heads of recruiting and development.

That’s how we run our business. That’s how we win, is fully leaned in. I candidly believe that the reason starts with that, and many of our bigger players are maybe not quite focused on that part of their business as they’re deep into integrations and synergies. Secondly, aside from that is they really look at the market and then who’s the best in the market. And so that’s why I highlight what I’m so encouraged about is winning in nearshore and winning in the Philippines against these, because it’s a testimony to not just IBEX, but IBEX in the markets that we operate. We have a best-of-breed solution there, and that’s showing. And then the last leg of that. So those are part of winning the day as a BPO. And then the last leg is when we engage and talk about AI solutions, we’re not talking slideware.

We’re talking real solutions that we’ve been delivering that they look and say, wow, those are credible solutions. Those are the types of things we want. We’re hearing from your competitors, slideware, and put those altogether, it puts us in a great position.

Ryan Potter: Got it. And if I could sneak one last one in. You mentioned Wave iX and I think you guys announced that a week or two ago, so it might be early, but any initial client feedback to the new offering capabilities. And how is this differentiated which versus what’s already out there in the marketplace?