Ebix Clocks 125% Revenue Growth Amid Pandemic's Second Wave, Margin Contracts As Cost Spike

Ebix Inc EBIX reported second-quarter FY21 revenue growth of 121% year-on-year to $246.3 million, beating the analyst consensus of $226.8 million.
Excluding revenues from the foreign exchange, travel, e-learning, and remittance businesses impacted the most by COVID-19, Q2 revenues grew 125% Y/Y.
Segments: EbixCash Exchanges revenue grew 257% Y/Y to $189.9 million, Insurance Exchanges revenue reduced 2% Y/Y to $41.9 million, and RCS revenue declined 4% Y/Y to $14.5 million.
Insurance revenues outside the U.S. grew by 16% Y/Y to $19.1 million, offset by a 10% Y/Y decline in the U.S. International revenues increased 200% Y/Y.
Margin: The gross margin contracted 2,824 bps to 27.7% as costs shot up 263% Y/Y.
The operating income decreased 14% Y/Y to $27.3 million due to the severe impact of the second wave of COVID-19.
Non-GAAP EPS of $0.76 beat the analyst consensus of $0.58.
Ebix generated $13.1 million in operating cash flow and held $107.4 million in cash and equivalents.
The Q2 performance was severely impacted by the second wave of COVID-19, with most of Brazil, India, followed by the U.S.
Price action: EBIX shares closed higher by 1.02% at $30.62 on Monday.