Ebix Inc (NASDAQ:EBIX) Q2 2020 Earnings Conference Call - Final Transcript

Aug 07, 2020 • 11:00 am ET


Ebix Inc (NASDAQ:EBIX) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Ebix, Inc. second quarter financial results investor call. [Operator Instructions]

I would now like to hand the conference to your speaker today, Darren Joseph, Corporate Vice President of Investor Relations. Please go ahead, sir.

Darren Joseph

Thank you. Welcome, everyone, to Ebix, Inc.'s Second Quarter 2020 Earnings Conference Call. Joining me to discuss the quarter is Ebix Chairman, President and CEO, Robin Raina; Ebix Global CFO, Steve Hamil; and Ebix North American President, Ash Sawhney. Following our remarks, we will open up the call for your questions. Now let me quickly cover the safe harbor. Some of the statements that we make today are forward looking, including, among others, statements regarding Ebix's future investments, our long-term growth and innovation, the expected performance of our businesses and our use of cash.

These statements involve a number of risks and uncertainties that might cause actual results to differ materially from those projected in the forward-looking statement. Please note that these forward-looking statements reflect our opinions only as of the date of this presentation and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. Additional information concerning the factors that could cause actual results to materially differ from those in the forward-looking statements made today are available in our SEC filings, which list a more detailed description of the risk factors that may affect our results.

Our press release announcing the second quarter 2020 results was issued this morning. The audio of this investor call is also being webcast live on the web at www.ebix.com/webcast. You can look at Ebix's financials beyond what has been provided in the release on our website, www.ebix.com. The audio and the text transcript of this call will be available on the investor homepage of the Ebix website after four p.m. Eastern Time today.

Let me now present the key metrics in our second quarter 2020 release. Q2 diluted EPS was $0.76, and non-GAAP diluted EPS was $0.88. Q2 operating cash flow was $28.8 million with six-month year-to-date operating cash flow of $58.4 million; revenues of $111.3 million and constant currency revenues of $117.4 million; GAAP operating income of $31.9 million and non-GAAP operating income of $35.7 million. For me, the highlight of the quarter were mainly three things.

One is that despite the impact of lockdowns, foreign currency hits on account of U.S. dollar strengthening and many of our divisions being severely impacted by COVID-19 across the world, we are still reporting Q2 2020 EBITDA plus stock-based compensation of $36.3 million, an impressive 32% of total revenues; two, our strong year-to-date operating cash flows of $58.4 million; and three, the fact that despite COVID-19, our Q2 worldwide revenues, excluding revenues from area directly impacted by COVID-19, namely the foreign exchange, travel, e-Learning and remittance businesses grew 16% as compared to Q2 2019. Exchanges, including EbixCash and our worldwide insurance exchanges continued