Software Supplier Ebix Reports Q2 Revenue Growth, But Misses Consensus By 67%

Ebix, Inc EBIX reported a second-quarter (Q2) 2023 revenue growth of 3.1% year-on-year to $118.4 million, missing the consensus of $197.9 million. 

On a constant currency basis, Q2 revenues increased 7.2% Y/Y.

Segments: Exchanges revenue grew by 3.1% Y/Y to $98.1 million, and RCS revenue increased by 2.6% Y/Y to $20.4 million.

Adjusted operating income was $34.6 million, up by 1.8% Y/Y.

Adjusted EPS of $0.23 missed the consensus of $0.24.

Ebix held $84.8 million in cash and equivalents.

"In Q2 2023, EBITDA plus noncash stock compensation added to $34.03 million, which translates to approximately 28.7% of our worldwide revenues. That speaks to the strength and fundamentals of our business worldwide," Amit Kumar Garg, CFO said.

During the six-month period, ending June 30, Ebix had $36.3 million of cash interest paid; $19.2 million for income-related taxes paid globally; $15 million paid for principal payments; $7.9 million for capital expenditure; and $600,000 for software development.

Price Action: EBIX shares traded lower by 11.1% to $23.35 in premarket on the last check Wednesday.