Ebix Q3 2022 Revenues Increased 35% YoY, Q3 2022 Operating Income of $30.4 Million with 8% YoY Growth, Q3 2022 Diluted EPS of $0.59 with 18% YoY Growth and Q3 2022 Operating Cash Flow of $23.6 Million with 30% YOY Growth

JOHNS CREEK, Ga., Nov. 09, 2022 (GLOBE NEWSWIRE) -- Ebix, Inc. EBIX, a leading international supplier of on-demand software and e-commerce services to the insurance, financial services, travel, healthcare, and e-learning industries today announced the following results for the quarter ended September 30, 2022:

  • Revenues of $257.9 million
  • GAAP operating income of $30.4 million and Non-GAAP operating income of $33.6 million
  • GAAP Diluted EPS of $0.59 and Non-GAAP diluted EPS of $0.70.

Ebix will host a conference call to review its results today at 11:00 a.m. EDT (details below).

Robin Raina, President & CEO, Ebix Inc. said, "On a constant currency basis, our Q3 2022 revenues grew by 43% year-over-year ("YoY") to $274.8 million. We experienced the largest negative quarterly impact on reported revenues in Q3 2022 that we have seen in more than five years. Despite that reality our worldwide revenues increased 35% YoY and, excluding pre-paid cards, grew 29% YoY in Q3 2022. The main contributors to this strong growth were the Company's EbixCash travel and foreign exchange/outward remittance revenues that grew a combined 145% YoY, EbixCash payment solutions revenues (primarily prepaid gift cards) growth of 39%, EbixCash BPO revenues YoY growth of 42%, Latin American revenue YoY growth of 55%, US Annuitynet revenue growth of 16% YoY, and e-learning revenue YoY growth of 110%. Our EbixCash exchange revenues, excluding our prepaid gift card business, generated 82% YoY growth in revenues in Q3 2022"

Robin said, "The Company's RCS channel revenues grew 14% YoY in Q3 2022, while the insurance channel revenues decreased YoY by 2%. However, on a constant currency basis the insurance channel revenues were slightly higher in Q3 2022 YoY. The Company generated GAAP operating income of $30.4 million and EBITDA plus stock-based compensation of $35.8 million in Q3 2022. Year-to-date the Company has generated $107.1 million of EBITDA plus stock-based compensation. I am pleased with these results as they are in spite of the substantial negative effects of currency headwinds on both our revenues and operating income."

Robin added, "We are confident of addressing the debt maturity and are pursuing a number of avenues to that extent. These avenues include the engagement of a reputed global investment bank in the US to act as our advisor to refinance the debt (name to be announced soon in a separate press release), securing pre-IPO investments in EbixCash through our India investment bankers, active engagement with a few international financial institutions to seek financing in Ebix, active engagement with a few banks to secure loans in India and of course the launch of the EbixCash IPO at the earliest. We have reason to believe that we can succeed on many of these fronts. We are expecting to report progress on a few of these fronts soon. Our goal remains to seek a structure that is in the best interests of all of our stakeholders and to carve a future for Ebix which could require materially reduced debt once the EbixCash IPO is launched and closed."

Ebix delivered the following results for the third quarter of 2022:

Revenue: Q3 2022 revenue increased 35% to $257.9 million compared to $191.7 million in Q3 2021. On a constant currency basis, Q3 2022 revenues increased 43% year-over-year and would have been $16.9 million higher in the quarter but for foreign currency rate changes.

On a constant currency basis eight of the eleven major geographies worldwide had year-over-year revenue growth in Q3 2022. Insurance Exchanges revenues worldwide decreased year-over-year by 2%, but were slightly higher on a constant currency basis, while Risk Compliance Solutions revenue increased 14% year-over-year in the third quarter of 2022.

Exchanges, including EbixCash and our worldwide insurance exchanges, continued to be Ebix's largest channel, accounting for 92% of Q3 2022 revenues.

(dollar amounts in thousands) 
ChannelQ3 2022
 Q3 2021
EbixCash Exchanges$196,113 $131,571 +49.1%
Insurance Exchanges 41,283  42,199 -2.2%
RCS 20,508  17,966 +14.1%
Total Revenue$257,904 $191,736 +34.5%
Total Revenue on Constant Currency Basis$274,765 $191,736 +43.3%

Operating Income and Operating Cash: GAAP Operating income for Q3 2022 of $30.4 million increased 8% year-over-year as compared to $28.1 million in Q3 2021, primarily due to solid revenue growth discussed above, offset in part by lower gross margins (due to material increase in YoY prepaid gift card revenues) and increased general and administrative expenses in Q3 2022 as compared to Q3 2021.

Non-GAAP operating income for Q3 2022 decreased 5% from $33.6 million as compared to $35.3 million in Q3 2021.

Cash generated from operations in Q3 2022 was $23.6 million, as compared to $18.2 million in Q3 2021 and $15.9 million in Q2 2022.

Earnings per Share: Q3 2022 GAAP diluted earnings per share was $0.59 as compared to $0.50 in Q3 2021, an 18% increase year-over-year despite the Company incurring $4.5 million of incremental interest expense in Q3 2022 versus Q3 2021, which equates to $0.15 per diluted share. Non-GAAP diluted earnings per share for Q3 2022 was $0.73.

Net Income: Q3 2022 GAAP net income increased 18% to $18.3 million compared to $15.5 million in Q3 2021. Q3 2022 non-GAAP net income was $22.5 million.

Q3 2022 Diluted Share Count: As of today, Ebix expects its diluted share count at December 31, 2022 to be approximately 30.8 million shares.

Dividend: Ebix paid its regular quarterly dividend of $0.075 per share in Q3 2022 for a total cost of $2.3 million.

Steve Hamil, EVP and Global CFO added, "Despite the highest negative impact from foreign exchange movements we have seen in at least five years, the Company delivered significant growth in revenue and EPS in Q3 2022 and has produced Adjusted EBITDA (EBITDA plus non-cash stock compensation expense) of $107.1 million in the nine months of fiscal 2022. That represents a year-over-year 5% increase year-to-date in 2022. With continued improvement for the solutions and services most negatively impacted by COVID-19 and the stability of our insurance exchanges revenues and growth in our risk compliance solutions revenues, Ebix management is optimistic about the future of the Company and our strong market positions and the diverse nature of our global revenues."

Reconciliation of GAAP operating income, net income and diluted earnings per share to non-GAAP operating income, net income and diluted earnings per share. Non-GAAP information is provided to enhance the understanding of the Company's financial performance and is reconciled to the Company's GAAP information in the accompanying tables.

Q3 2022

 Net IncomeDiluted EPS
Q3 2022 GAAP Net Income$18,250 $0.59 
Q3 2022 GAAP Operating Income$30,361  
Non-GAAP Adjustments:  
Amortization of Intangibles (1)$2,285 $0.07 
Stock-Based Compensation (1)$971 $0.03 
Non-operating expense (2)$438 $0.01 
Income Tax Effects of Non–GAAP Adjustments (3)$(218)$(0.01)
Total Non-GAAP Adjustments (Operating Income)$3,256  
Total Non-GAAP Adjustments (Net Income)$3,476 $0.11 
Third Quarter 2022 Non-GAAP Net Income$21,726 $0.71 
Third Quarter 2022 Non-GAAP Operating Income$33,617  

(1) Adjustments related to amortization of acquired intangibles and stock-based compensation recognized during the periods for GAAP purposes.
(2) Non-recurring non-operating expense that is unrelated to any operating activities.
(3) Non-GAAP adjustment is based on the Q3 2022 effective tax rate, which reflects currently available information and could be subject to change.

Non-GAAP Financial Measures and Other Metrics

This press release contains the following non-GAAP financial measures: non-GAAP net income, non-GAAP operating income and non-GAAP diluted earnings per share. Non-GAAP operating income , non-GAAP net income and non-GAAP diluted earnings per share from operations exclude amortization of intangibles, stock-based compensation, as well as certain non-recurring expenses that are not associated with our ongoing operating business activities.

Ebix believes that these non-GAAP financial measures and other metrics provide useful information to management and investors regarding certain financial and business trends relating to Ebix's financial condition and results of operations. The Company's management uses these non-GAAP measures and other metrics to compare the Company's performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation, and for budgeting and planning purposes. The Company believes that the use of these non-GAAP financial measures and other metrics provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with other software companies, many of which present similar non-GAAP financial measures and other metrics to investors.

Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Ebix urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including the financial tables at the end of this press release, and not to rely on any single financial measure to evaluate the Company's business.

Conference Call Details:

Call Date/Time:Wednesday, November 9, 2022 at 11:00 a.m. EST
US & Canada Toll Free+800 715-9871; Call ID # 1635556
Live Listen-Only Webcast:https://edge.media-server.com/mmc/p/p6b4bvbq
Audio Replay URL:www.ebix.com/investorhome within one day of the call

About Ebix, Inc.

With approximately 200 offices across 6 continents, Ebix, Inc., EBIX endeavors to provide on-demand software and e-commerce services to the insurance, financial services, travel, healthcare and e-learning industries. In the Insurance sector, Ebix's main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis using Software-as-a-Service ("SaaS") enterprise solutions in the area of customer relationship management (CRM), front-end and back-end systems, and outsourced administration and risk compliance services.

With a "Phygital" strategy that combines over 650,000 physical distribution outlets in many Association of Southeast Asian Nations ("ASEAN") countries, to an Omni-channel online digital platform, the Company's EbixCash Financial exchange portfolio of software and services encompasses domestic and international money remittance, foreign exchange (Forex), travel, pre-paid gift cards, utility payments, lending and wealth management in India and other countries primarily in Asia and the Middle East. EbixCash's Forex operations is a leader in India's airport Forex business, with operations in 16 international airports, including Delhi, Mumbai, Hyderabad, Chennai and Kolkata, combined having conducted over $4.8 billion in gross transaction value per year (pre-COVID-19). EbixCash's inward remittance business in India processed approximately $5 billion in gross annual remittance volume (pre-COVID-19) and is the clear market leader. EbixCash, through its travel portfolio of Via and Mercury, is also one of Southeast Asia's leading travel exchanges with over 500,000 agents and approximately 18,000 registered corporate clients, combined having processed an estimated $2.5 billion in gross merchandise value per annum (pre-COVID-19). EbixCash's financial technologies business offers software solutions at the enterprise level for banks, asset and wealth management companies and trust companies within India, Southeast Asia, the Middle East and Africa. The EbixCash's e-learning solutions are provided to schools across the breadth of India via high quality 2-D and 3-D animation and multimedia learning. EbixCash's business process outsourcing services provide information technology and call center services to a variety of industries.

Through its various SaaS-based software platforms, Ebix employs thousands of domain-specific technology professionals to provide products, support and consultancy to thousands of customers on six continents. For more information, visit the Company's website at www.ebix.com


As used herein, the terms "Ebix," "the Company," "we," "our" and "us" refer to Ebix, Inc., a Delaware corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Ebix, Inc.

The information contained in this Press Release contains forward-looking statements and information within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. This information includes assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, acceptance of the Company's products by the market, and management's plans and objectives. In addition, certain statements included in this and our future filings with the Securities and Exchange Commission ("SEC"), in press releases, and in oral and written statements made by us or with our approval, which are not statements of historical fact, are forward-looking statements. Words such as "may," "could," "should," "would," "believe," "expect," "anticipate," "estimate," "intend," "seeks," "plan," "project," "continue," "predict," "will," and other words or expressions of similar meaning are intended by the Company to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are found at various places throughout this report and in the documents incorporated herein by reference. These statements are based on our current expectations about future events or results and information that is currently available to us, involve assumptions, risks, and uncertainties, and speak only as of the date on which such statements are made.

Our actual results may differ materially from those expressed or implied in these forward-looking statements. Factors that may cause such a difference, include, but are not limited to those discussed in our Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent reports filed with the SEC, as well as: the ongoing effects of the Covid-19 global pandemic, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties; pricing and other competitive pressures and the Company's ability to gain or maintain share of sales as a result of actions by competitors and others; changes in estimates in critical accounting judgments; changes in or failure to comply with laws and regulations, including accounting standards, taxation requirements (including tax rate changes, new tax laws and revised tax interpretations) in domestic or foreign jurisdictions; exchange rate fluctuations and other risks associated with investments and operations in foreign countries (particularly in India, Australia and Asia, Latin America and Europe wherein we have significant and/or growing operations); fluctuations in the equity markets, including market disruptions and significant interest rate fluctuations, which may impede our access to, or increase the cost of, external financing; ability to secure additional financing to support capital requirements; credit facility provisions that could materially restrict our business; costs and effects of litigation, investigations or similar matters that could affect our business, operating results and financial condition; and international conflict, including terrorist acts and wars.

Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors, or to publicly announce the results of, or changes to any of the forward-looking statements contained herein to reflect future events, developments, changed circumstances, or for any other reason.

Readers should carefully review the disclosures and the risk factors described in the documents we file from time to time with the SEC, including future reports on Forms 10-Q and 8-K, and any amendments thereto.

You may obtain our SEC filings at our website, www.ebix.com under the "Investor Information" section, or over the Internet at the SEC's web site, www.sec.gov


Darren Joseph
678 -281-2027 or IR@ebix.com

David Collins or Chris Eddy
Catalyst Global - 212-924-9800 or ebix@catalyst-ir.com 

Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share data)
 Three Months Ended Nine Months Ended
 September 30, September 30,
  2022   2021   2022   2021 
Operating revenue$257,904  $191,736  $794,938  $728,111 
Operating expenses:       
Cost of services provided 174,265   120,799   554,438   519,360 
Product development 10,483   10,151   30,964   29,838 
Sales and marketing 3,973   3,417   12,249   10,636 
General and administrative, net 34,400   25,399   93,049   70,071 
Amortization and depreciation 4,422   3,834   13,660   11,619 
Total operating expenses 227,543   163,600   704,360   641,524 
Operating income 30,361   28,136   90,578   86,587 
Interest income 68   24   196   49 
Interest expense (15,467)  (10,985)  (37,382)  (29,526)
Non-operating (loss) income (438)  (1,262)  (1,580)  (2,516)
Foreign currency exchange gain (loss) 4,928   (160)  9,051   (776)
Income before income taxes 19,452   15,753   60,863   53,818 
Income tax (expense) benefit (1,926)  (730)  (6,108)  (2,559)
Net income including noncontrolling interest 17,526   15,023   54,755   51,259 
Net loss attributable to noncontrolling interest (724)  (428)  (2,029)  (1,504)
Net income attributable to Ebix, Inc.$18,250  $15,451  $56,784  $52,763 
Basic earnings per common share attributable to Ebix, Inc.$0.59  $0.50  $1.85  $1.72 
Diluted earnings per common share attributable to Ebix, Inc.$0.59  $0.50  $1.85  $1.72 
Basic weighted average shares outstanding 30,777   30,646   30,745   30,595 
Diluted weighted average shares outstanding 30,783   30,701   30,748   30,650 

Ebix, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
 September 30,
 December 31,
Current assets:   
Cash and cash equivalents$70,977  $99,625 
Receivables from service providers 1,456   1,352 
Short-term investments 19,705   16,463 
Restricted cash 7,990   9,080 
Fiduciary funds - restricted 2,031   2,046 
Trade accounts receivable, less allowances of $18,772 and $19,874, respectively 156,110   153,609 
Other current assets 78,007   84,389 
Total current assets 336,276   366,564 
Property and equipment, net 58,439   54,359 
Right-of-use assets 9,583   10,051 
Goodwill 887,302   939,249 
Intangibles, net 38,025   46,795 
Indefinite-lived intangibles 16,647   16,647 
Capitalized software development costs, net 23,690   21,565 
Deferred tax asset, net 104,299   84,514 
Other assets 30,677   33,505 
Total assets$1,504,938  $1,573,249 
Current liabilities:   
Accounts payable and accrued liabilities$75,691  $86,181 
Payables to service agents 13,626   6,296 
Accrued payroll and related benefits 9,864   11,360 
Working capital facility 6,052   5,607 
Fiduciary funds - restricted 2,031   2,046 
Revolving line of credit 439,401    
Short-term debt    1,954 
Current portion of long term debt and financing lease obligations, net of deferred financing
costs of $1,189 and $1,635, respectively
 190,155   28,577 
Contract liabilities 33,134   33,164 
Lease liability 3,313   3,173 
Other current liabilities 32,060   26,837 
Total current liabilities 805,327   205,195 
Revolving line of credit    439,402 
Long term debt and financing lease obligations, less current portion, net of deferred financing
costs of $0 and $261, respectively
 194   184,676 
Contingent liability for accrued earn-out acquisition consideration 2,332   2,557 
Contract liabilities 8,498   8,193 
Lease liability 6,571   7,139 
Deferred tax liability, net 1,150   1,150 
Other liabilities 20,840   25,383 
Total liabilities 844,912   873,695 
Stockholders' equity:   
Preferred stock, $0.10 par value, 500,000 shares authorized, no shares issued and
outstanding at September 30, 2022 and December 31, 2021
Series Y Convertible preferred stock, $0.10 par value, 350,000 shares authorized, no
shares issued and outstanding at September 30, 2022 and December 31, 2021
Common stock, $0.10 par value, 220,000,000 shares authorized, 30,787,595 issued and
outstanding, at September 30, 2022, and 30,683,393 issued and outstanding at
December 31, 2021
 3,079   3,068 
Additional paid-in capital 17,855   15,068 
Retained earnings 809,037   759,208 
Accumulated other comprehensive loss (212,148)  (122,022)
Total Ebix, Inc. stockholders' equity 617,823   655,322 
Noncontrolling interest 42,203   44,232 
Total stockholders' equity 660,026   699,554 
Total liabilities and stockholders' equity$1,504,938  $1,573,249 

Ebix, Inc. and Subsidiaries
CondensedConsolidated Statements of Cash Flows
(In thousands)
 Nine Months Ended
 September 30,
  2022   2021 
Cash flows from operating activities:   
Net income attributable to Ebix, Inc.$56,784  $52,763 
Net loss attributable to noncontrolling interest (2,029)  (1,504)
Adjustments to reconcile net income to net cash provided by operating activities:   
Amortization and depreciation 13,660   11,619 
Provision (benefit) for deferred taxes (25,361)  (3,698)
Share-based compensation 2,905   4,034 
(Benefit) provision for doubtful accounts 1,687   (2,742)
Amortization of right-of-use assets 2,633   3,462 
Amortization of capitalized software development costs 2,246   2,487 
Changes in assets and liabilities, net of effects from acquisitions:   
Accounts receivable (15,994)  (3,078)
Receivables from service providers (104)  (11,371)
Payables to service agents 7,330   2,640 
Other assets 1,577   (6,658)
Accounts payable and accrued expenses (3,195)  (1,711)
Accrued payroll and related benefits (736)  (2,929)
Contract liabilities 2,415   (316)
Lease liabilities (2,532)  (3,179)
Reserve for potential uncertain income tax return positions    789 
Other liabilities 3,807   (782)
Net cash provided by operating activities 45,093   39,826 
Cash flows from investing activities:   
Capitalized software development costs (5,676)  (4,552)
Maturities (purchases) of unrestricted marketable securities, net (4,518)  11,856 
Capital expenditures (12,671)  (5,325)
Net cash (used in) provided by investing activities (22,865)  1,979 
Cash flows from financing activities:   
Principal payments of term loan obligation (23,464)  (36,945)
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to
stock options exercised and restricted stock vested
 (107)  (150)
Dividend payments (6,954)  (6,963)
Payments of debt obligations, net (1,953)  (205)
(Payments) of/Borrowing under working capital facility, net 868   (8,581)
Payments of financing lease obligations, net (147)  (102)
Net cash used in financing activities (31,757)  (52,946)
Effect of foreign exchange rates on cash (21,252)  (5,222)
Net change in cash and cash equivalents, and restricted cash (30,781)  (16,363)
Cash and cash equivalents, and restricted cash at the beginning of the period 114,764   120,213 
Cash and cash equivalents, and restricted cash at the end of the period$83,983  $103,850 
Supplemental disclosures of cash flow information:   
Interest paid$32,989  $24,118 
Income taxes paid$28,875  $14,430 

Posted In: EarningsPress Releases