Thank you for standing by. My name is Hermione, and I will be your conference operator today. At this time, I would like to welcome everyone to IBEX Limited First Quarter 2025 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] To note, there is a company earnings deck presentation available on the IBEX Investor Relations website at investors.ibex.co. I will now turn this conference over to Mr. Michael Darwal, Head of Investor Relations for IBEX. Please go ahead.

Good afternoon, and thank you for joining us today. Before we begin, I want to remind you that matters discussed on today's call may include forward-looking statements related to our operating performance, financial goals and business outlook, which are based on management's current beliefs and assumptions. Please note, that these forward-looking statements reflect our opinion as of the date of this call and we undertake no obligation to revise this information as a result of new developments which may occur. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause our actual results to differ materially from those expected and described today. For a more detailed description of our risk factors, please review our annual report on Form 10-K filed with the US Securities and Exchange Commission on September 12, 2024. With that, I will now turn the call over to IBEX CEO, Bob Dechant.

Thanks, Mike. Good afternoon everyone, and thank you all for joining us today, as we share our first quarter fiscal year 2025 results. Let me start my remarks by thanking my team for their continued fantastic performance. I believe they are the best in the industry. With our performance in the first quarter, we have now improved adjusted EBITDA margin over the prior year in nine out of the last 10 quarters. And in an industry that has recently been challenged growing top line, IBEX is one of the first BPOs to return to meaningful organic revenue growth, where we grew at 4.1% in the quarter. On top of that, the first quarter of FY '25 was another record-setting quarter for IBEX, where we achieved first quarter bests across a number of key financial metrics including revenue, net income, EPS and EBITDA. Our growth was driven by great performance from our new logo team and new wins within our embedded base clients, as we outperform our competition and take market share. I am excited to report that our growth vectors continue to be our margin expansion drivers, as we grow our higher margin services and geographies, which represent nearly 80% of our overall business. As a result, we are confident in our ability to continue to drive top line growth and margin expansion. We have built a culture of winning, one where we continue to demonstrate our unique ability to successfully punch above our weight and beat our much larger competitors. We have also differentiated ourselves from the competition by leveraging an unparalleled agent-first culture. paired with our award-winning Wave iX technology stack and our deep analytics capabilities. We are now extending our competitive moat with cutting-edge AI solutions. Let me highlight some of the key results we delivered in…

Thank you, Bob, and good afternoon, everyone. Thank you for joining the call today. In my discussions of our first quarter fiscal year 2025 financial results references to revenue, net income and net cash generated from operations are on a US GAAP basis, while adjusted net income, adjusted earnings per share, adjusted EBITDA and free cash flow are on a non-GAAP basis. Reconciliations of our US GAAP to non-GAAP measures are included in the tables attached to our earnings press release. Turning to our results. Our first quarter results are among the strongest in our history. We achieved record first quarter revenue, net income, EPS, adjusted net income, adjusted EPS and adjusted EBITDA. First quarter revenue was $129.7 million, an increase of 4.1% from $124.6 million in the prior year quarter. Revenue growth was driven by vertical growth in HealthTech of 23.4%, retail and e-commerce of 8.6% and travel transportation and logistics of 10% and was partially offset by a decline in the FinTech vertical of 13%. Our focused efforts to grow our higher-margin nearshore and offshore delivery locations are having a favorable impact on bottom line results. Offshore and nearshore revenues now comprise 76% of total revenue versus 75% in the prior year quarter. Our lower margin onshore region decreased to 24% of total revenue versus 25% in the prior year quarter. Revenue mix in the higher-margin digital and omnichannel services continued to be strong. Digital and omnichannel delivery represented 76% of our total revenue consistent with 77% in the prior year quarter. We expect that we will continue to be successful driving growth in these higher margin services. As Bob mentioned, we're seeing our pipeline particularly in higher margin services strengthen leading to an acceleration of new client wins. First quarter net income increased to $7.5 million compared…

[Operator Instructions] Your first question comes from the line of David Koning with Baird. Please go ahead.

Yes. Hey, guys. Great job. And I guess my first question just the inflection in revenue you've been kind of flat to down for a few quarters probably four or five quarters just with macro. And now all of a sudden you hit a pretty nice inflection in growth. And I guess twofold question. One is 4% first quarter of the year your full year is 1% to 3%, so is there a reason to think that, hey, you could actually keep this momentum up around mid-single-digits? And then I guess secondly, is it more the backdrop is getting a little better? Or is this a lot of just client signings just all hitting and driving a lot of the growth?

Yes Dave. Hi. Thanks for the question. Actually thanks for joining. I know you got a busy schedule this week and all. So let me touch first on the growth. If you think about it, we had a strong year in FY 2024 of winning new logos that all kept scaling ramping. And so as we shared as you get into FY 2025, we think that those are going to be all kind of hitting full stride and maybe even continue to grow. So we had good visibility of that. And that was kind of the first part of the equation. The second part of the equation on the growth was market share gains in the base. And we had, especially in our top five clients we won a lot of business. We won new LOBs, new geographies, a lot of launches in markets -- our offshore markets, et cetera, taking market share away from our competitors. And so we had two really strong vectors that we feel really good about and we could see all that coming together in FY 2024, especially in the back half of 2024. Now, the third variable is really kind of the rest of the base. And we still think of that as a little bit choppy -- a little bit of still some challenges around the macros. And so when you put those together and we look out we're hopeful that -- and our goal is to keep driving this and keep signing new logos and keep growth accelerating. Knowing that there's still some choppiness in the business, I think we'll kind of sit and say those could those variables and how they play out could be -- there could be some headwinds that we don't necessarily see right now. And so we're trying to be a little bit conservative on guidance but our goal is to certainly kind of keep that -- keep the momentum going.

Yes. That's great. And maybe just my one follow-up. HealthTech looked like the one place where growth kind of disconnected from kind of recent levels in a really nice positive way. Was there one or two clients added in the quarter? Or was it just existing clients just something happening to kind of inflect their growth?

A little bit of both. So some nice wins on the new logo side. Really, if you think about starting in the second half of our FY 2024, those things start hitting stride. We also had, I think just we're doing really good with those clients. And so we've won kind of a lot of market share away from our competitors. We call it with those clients. It's like look take the IBEX challenge, we're going to outperform and then we're going to keep the numbers moving up and to the right around our delivery for them. And that's what we've been doing and they reward you with new GOs and new LOBs. And it's a recipe for success and we have a long -- honestly, we have a long track record of doing that here.

Great. Great job, guys. Thank you.

And yes, appreciated David. We're -- we just really feel good about the business here.

Yes. Great. Thank you.

There are no further questions. I will now turn the call back over to Bob Dechant, CEO for closing remarks.

Thanks, Hermione, and I appreciate it. So look, we all are proud of what this team did. Results are great. We have a lot of momentum as we move for the rest of the year. Thank you all for delivering and look forward to our discussions over the next quarters and appreciate your confidence in IBEX. Thanks. Have a good day.

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.