Ibex Ltd at Robert W Baird Global Consumer, Technology & Services Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Dave Koning - Robert W. Baird & Co. - Analyst : Yes. Well, thanks for that great overview. Maybe we can talk just a little bit about -- clearly, you're having a lot of success. What is it about ibex? Is it -- that's driving above-market growth?

Question: Dave Koning - Robert W. Baird & Co. - Analyst : Great, thanks. And maybe you could talk a little bit about the industry, too, how the last 5 to 10 years was. You've been around the industry for a long time. In what you are seeing today and how things are a little different today than they've been in the past?

Question: Dave Koning - Robert W. Baird & Co. - Analyst : And maybe another thing that's changed in the industry and really just in the world, the pandemic. How has that impacted you, the industry? And maybe other structural changes that have come, like maybe more at-home agents that might be more permanent?

Question: Dave Koning - Robert W. Baird & Co. - Analyst : And do you think the long term is a net positive? Like, are we past most of those costs? And then, in the future, we benefit from a little more at home, the market share gains, et cetera?

Question: Dave Koning - Robert W. Baird & Co. - Analyst : That's great. And I guess just, yes, high level, putting some of these together, just industry dynamics, your wins, your position in the market, do you feel like -- what do you think growth is? Is it 10%-plus the next several years? And margins still moving higher with some of these tailwinds? Or are there offsets to that, too, as pricing kicks in? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 08, 2021 / 1:05PM, IBEX.OQ - Ibex Ltd at Robert W Baird Global Consumer, Technology & Services Conference (Virtual)

Question: Dave Koning - Robert W. Baird & Co. - Analyst : Wow, that's great to hear. And I see your point: it's a function of the declining -- the small declines in certain parts just becoming a smaller component and the new economy getting bigger.

Question: Dave Koning - Robert W. Baird & Co. - Analyst : Yes, great. And when we think about margins, you've already, I would say, exceeded at least our expectations; probably your own, too, in the last few quarters. Are those still biased higher? I know you talked about ramping like -- like, you just have a lot of capacity you are starting to fill. That should be a tailwind. The mix of business, new economies should be a tailwind. Should it keep going up?

Question: Dave Koning - Robert W. Baird & Co. - Analyst : Yes. Okay, great. And maybe we can talk a little bit about verticals. We often talk about new economy clients, but maybe just walk through what verticals you think are -- will continue to grow, which verticals might decline. I mean, you have a little bit of telecom that's been declining, but how do you look at the next few years there?

Question: Dave Koning - Robert W. Baird & Co. - Analyst : And do you think -- is the industry just in a different place? And you as well, where 10, 20 years ago, AT&T would have 10, 15 vendors. They would all kind of do the same thing and price compete, and AT&T would move back and forth. Do you do more differentiated services, and probably your competitors, too, so that it's harder to just steal work back and forth from each other? And price is more -- pricing is more sticky, too?

Question: Dave Koning - Robert W. Baird & Co. - Analyst : Yes, great. Well, and the other part of all this, 10, 20 years ago, everybody had so much customer concentration. You have dramatically improved that. I think a few -- two years ago, you were over 50% from your top three. You are down to, I think, 34%. How do you think this will fall over time? And yes -- and how do you just see those top three clients?

Question: Dave Koning - Robert W. Baird & Co. - Analyst : Yes, great. What about new offerings? When we think about historically answering phones, now there's a lot more chat and text and email, and so many different ways that is proliferating. Do you think of any new offerings on top of that or maybe M&A to get into new offerings?

Question: Dave Koning - Robert W. Baird & Co. - Analyst : Yes. Wow, that's a cool -- a cool offering. And one other thing, just with the environment, with stimulus payments and wage rates and inflation, all this stuff happening, you mentioned attrition is still pretty low. But how do you just see the employee environment? Like, are you required to pay people more just to get people to -- back to work? Or is attrition starting to rise? Like, how is that whole environment?

Question: Dave Koning - Robert W. Baird & Co. - Analyst : That's great. And we've got about a minute to go here. Just one last question, I guess. You are growing faster than the industry, yet your stock is at a multiple well below a lot of comps. Do you ever think about selling at a pretty big premium to where you're at today? Or what do you just think about that?

Question: Dave Koning - Robert W. Baird & Co. - Analyst : Well, that all kind of takes care of itself if you keep putting up the numbers, so --

Question: Dave Koning - Robert W. Baird & Co. - Analyst : Well, I need to hop, but thanks for much for meeting with us. Great to hear the story again. And normally I would say, please everybody join me in thanking Bob, and we'd all clap. And maybe next year.

Question: Dave Koning - Robert W. Baird & Co. - Analyst : Great. Well, thanks so much, Bob. Have a great day.