Author: Sharath Keshava Narayana
Profile: https://www.linkedin.com/in/sharathkishan/
ibex just added $62M of market cap in a single trading day. They're up 16% today.
Earlier this week, I wrote about Teleperformance rallying 27% in a month. Now ibex. Two contact centers, two market caps, one week apart. Patterns this clean are rarely coincidence. The whole sector is being repriced.
Ibex has beaten both EPS and revenue estimates for four straight quarters. Some by single digits, some by 22% on EPS and 10% percent on revenue. Wall Street's model of how a contact center should be performing in the AI era has been wrong, every quarter, in the same direction.
Inside this quarter's print: revenue up 16.8%, fifth straight quarter of double-digit growth. EBITDA at a record $22M. Guidance raised for the third time this year. The number that matters most is buried in the fine print:
- Top 10 clients have grown an average of 25% over the last five quarters. The same customers are spending more with the same vendor across two years of "AI is going to gut the BPOs."
- HealthTech revenue alone jumped 53.7% and is now 20.8% of the business. The regulated, complex, high-judgment work the displacement thesis said would migrate to AI first. It moved the other direction.
Bob Dechant put it directly on the Q3 call. Ibex "again extended the separation between ourselves and the rest of the traditional BPO market."
The BPOs that leaned into AI deployment are pulling away from those that treated it as a threat.
ibex, David Afdahl, Shawn, Anant, Monal, Marty, Saralynn, Nitesh, Ashish, Manish, Michael, Andrés
Earlier this week, I wrote about Teleperformance rallying 27% in a month. Now ibex. Two contact centers, two market caps, one week apart. Patterns this clean are rarely coincidence. The whole sector is being repriced.
Ibex has beaten both EPS and revenue estimates for four straight quarters. Some by single digits, some by 22% on EPS and 10% percent on revenue. Wall Street's model of how a contact center should be performing in the AI era has been wrong, every quarter, in the same direction.
Inside this quarter's print: revenue up 16.8%, fifth straight quarter of double-digit growth. EBITDA at a record $22M. Guidance raised for the third time this year. The number that matters most is buried in the fine print:
- Top 10 clients have grown an average of 25% over the last five quarters. The same customers are spending more with the same vendor across two years of "AI is going to gut the BPOs."
- HealthTech revenue alone jumped 53.7% and is now 20.8% of the business. The regulated, complex, high-judgment work the displacement thesis said would migrate to AI first. It moved the other direction.
Bob Dechant put it directly on the Q3 call. Ibex "again extended the separation between ourselves and the rest of the traditional BPO market."
The BPOs that leaned into AI deployment are pulling away from those that treated it as a threat.
ibex, David Afdahl, Shawn, Anant, Monal, Marty, Saralynn, Nitesh, Ashish, Manish, Michael, Andrés
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