EBIX Reports Steep Revenue and Income Decreases for FY2023 Q2
August 19, 2023
🌥️Earnings Overview
On August 9, 2023, EBIX ($NASDAQ:EBIX) reported total revenue of USD 118.4 million and net income of USD 0.31 million for the second quarter of FY2023, ending June 30, 2023. This showed a year-over-year decrease of 52.8% and 98.4%, respectively.
Share Price
EBIX, a leading international supplier of on-demand software and e-commerce services, reported a steep decrease in revenue and income for the second quarter of FY2023. On Wednesday, EBIX stock opened at $25.3 and closed at $21.7, plunge by 17.3% from prior closing price of 26.2. EBIX attributed its decreased performance to the global pandemic, which it said has had a negative effect on its market demand and business activities. The company has taken various cost-cutting measures to mitigate the effects of the pandemic on its operations.
Despite these efforts, EBIX’s outlook for the rest of FY2023 remains uncertain. Investors have responded negatively to EBIX’s updated financials, as its share price plunged by 17.3% on the day of release. Analysts are continuing to monitor the situation closely as the company navigates this challenging period. ebix&utm_title=EBIX_Reports_Steep_Revenue_and_Income_Decreases_for_FY2023_Q2″>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ebix. More…
| Total Revenues | Net Income | Net Margin |
| 874.3 | 33.49 | 3.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ebix. More…
| Operations | Investing | Financing |
| 64.56 | -14.84 | -48.97 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ebix. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.54k | 863.65 | 20.6 |
Key Ratios Snapshot
Some of the financial key ratios for Ebix are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.2% | -1.8% | 13.4% |
| FCF Margin | ROE | ROA |
| 5.5% | 11.6% | 4.8% |
Analysis
At GoodWhale, we have analyzed EBIX’s wellbeing and found that it is a medium risk investment in terms of financial and business aspects. We have identified one risk warning in the balance sheet that deserves attention. The risk warning indicates that there are certain risks associated with this particular investment, and investors should review the situation carefully before proceeding. It is important to note that this is not necessarily a bad thing; rather, it is important to be aware of the potential risks and make an informed decision. By registering on our website, GoodWhale.com, users can access the specific risk warnings and all available data points for a deeper understanding of the risks involved in this investment. We believe that making an informed decision is essential to making a successful investment, and our analysis and recommendations can help guide informed decisions. ebix&utm_title=EBIX_Reports_Steep_Revenue_and_Income_Decreases_for_FY2023_Q2″>More…
Peers
Its competitors are Benefitfocus Inc, ExlService Holdings Inc, Rexit Bhd.
– Benefitfocus Inc ($NASDAQ:BNFT)
Benefitfocus Inc is a provider of cloud-based benefits management solutions for consumers, employers, insurance carriers, and third-party administrators. The company’s solutions enable its customers to shop for, enroll in, manage, and exchange benefits on a single platform. Benefitfocus Inc has a market cap of $357.77 million as of 2022 and a return on equity of 68.76%. The company’s cloud-based benefits management solutions enable consumers, employers, insurance carriers, and third-party administrators to shop for, enroll in, manage, and exchange benefits on a single platform.
– ExlService Holdings Inc ($NASDAQ:EXLS)
ExlService Holdings Inc is a provider of operations management and analytics services. The company has a market cap of 6.05B as of 2022 and a Return on Equity of 17.01%. ExlService Holdings Inc offers a range of services such as customer relationship management, finance and accounting, human resources, and procurement. The company serves a variety of industries including banking, insurance, healthcare, telecommunications, and manufacturing.
– Rexit Bhd ($KLSE:0106)
Sime Darby Berhad is a Malaysian conglomerate involved in various businesses, including plantation, property development and investment, motors, industrial equipment, energy & utilities, and healthcare. The company has a market capitalization of $129.05 million as of 2022 and a return on equity of 17.56%. Sime Darby was founded in 1910 as a rubber plantation company and has since expanded into other businesses. The company employs around 96,000 people and has operations in Malaysia, Indonesia, Singapore, China, Hong Kong, India, the Middle East, Australia, and New Zealand.
Summary
EBIX has reported disappointing financials for its fiscal year 2023 second quarter, with total revenue decreasing by 52.8% and net income decreasing by 98.4%, year over year. The company’s stock price reacted negatively to the news, moving down on the same day. Investors should consider this poor performance when deciding whether or not to invest in EBIX.
They should also consider the company’s long-term prospects, taking into account potential risks and rewards. Evaluating the company’s past performance and any changes to its competitive landscape will help investors make an informed decision.
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