Ebix (EBIX) Tops Q3 EPS by 13c, Revenues Beat

Ebix (NASDAQ: EBIX) reported Q3 EPS of $0.93, $0.13 better than the analyst estimate of $0.80. Revenue for the quarter came in at $154.3 million versus the consensus estimate of $119.18 million.

• Diluted EPS (GAAP) of $0.80 and Non-GAAP diluted EPS of $0.93
• Revenues of $154.3 million and constant currency revenues of $160.2 million
• GAAP operating income of $31.9 million and Non-GAAP operating income of $35.8 million

Ebix Chairman, President and CEO Robin Raina said, “In spite of the continued impact of COVID-19 across several major areas of our global operations, we are reporting Q3 2020 revenues of $154.3 million, a 39% increase over Q2 2020 and 5% increase over Q3 2019. The diversity of our revenue sources has allowed Ebix to increase its overall revenues despite continued significant declines in its travel, forex, e-learning and remittance businesses. Our global payment solutions business continues to benefit from strong customer demand for prepaid cards and other payment solutions. The Company continued to generate strong cash flows in the quarter with year-to-date operating cash flows of $71.8 million. I am pleased that our company has a strong foundation of recurring revenues from our on demand insurance and financial businesses around the globe, and continue to be optimistic regarding the long-term investment strategy towards building a unique insurance, financial and business services technology company globally.”

Ebix Chairman, President and CEO Robin Raina said, “Ebix has a track record of two decades of consistency in terms of the key financial metrics of top line, operating income, EPS and cash flows, with a strong focus on operating margins. In the last few quarters, we adjusted our strategy to counter the impact of COVID-19 and focused our energies on organic growth in areas that were not impacted materially by COVID-19, while trying to protect operating margins in core business areas. We are pleased that we were successful in our strategy as reflected by our revenue growth, operating income and operating cash flows. We grew our overall revenues 39% sequentially in the quarter, while our core businesses excluding the lower margin payment solutions business generated 40% EBITDA margin in the quarter.”

Steve Hamil, EVP and Global CFO added, “The Company continues to produce robust operating cash flows, generating $$71.8 million year-to-date in 2020. Despite the cumulative spending of approximately $92 million on investment in acquisitions, capital expenditures and capitalized software development costs, dividend payments, cash taxes and debt service and debt reduction for the year-to-date period, our total cash and short-term investments was $126.5 million at 9/30/20, as compared to $115.8 million at 12/31/19. Likewise, our working capital was a solid $148.6 million as of 09/30/20.”

2020 Business Outlook:

Given the ongoing market disruption caused by the COVID-19 pandemic, and related uncertainty on timing and extent of recovery, the Company is not providing fiscal 2020 or 2021 revenue and earnings guidance at this time.

For earnings history and earnings-related data on Ebix (EBIX) click here.

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