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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Q & A

Thank you. [Operator Instructions] Our first question comes from the line of Jeff Van Rhee from Craig-Hallum. You may begin.

Jeff Van Rhee

Great. Thanks for taking my questions. Congrats, Robin and the team. I mean in a tough environment, really impressive to see this level of margins and love the cash flow. Thanks, Ash, for the color. I think you did a great job on the transparency in the U.S. And maybe, Robin, if you could expand a little bit on the EbixCash how you're thinking sequentially. I realize we don't have a forward guide but kind of just the puts and takes how each of these lines are likely to behave on a sequential basis going into Q3.

Robin Raina

Look, I think we from an EbixCash perspective, we feel pretty comfortable with respect to what we did with Q2, at least repeating that much kind of a performance in Q3. Now we would like to see Q3 to be substantially higher. Now how could that be higher? I mean there are two, three areas where we would like to see increased revenue streams. One of them clearly is ForEx, another one is travel, and the third one is bus exchange. These are three key areas where we are starting to see some major opportunities. Now travel is very right now is very rare. People are not really traveling domestically and internationally. However, there are some major sports events happening from time to time in international countries that are backed up by India, and they'll create some new opportunities for us.

So we do we are hoping that we can basically be the travel provider in some of those large mega events. And if that happens, then we should have some at least some semblance of revenues from travel, a lot more than what we had last quarter. ForEx will automatically accompany travel. We presently know that ForEx is going to be better than what we did in Q2 and Q3. And at the same time, a lot will depend on how many international flights are opened up both ways, into India, outside India and so on because that's a critical element for ForEx. You see educational remittances in the area of ForEx have also slowed down dramatically simply because schools aren't open in most of the countries abroad.

And once schools aren't open, they have given their leverage to the students to pay their fees on a little bit more delayed basis. So if I the third area is bus exchange wherein we are in the I referenced that in my talk. We are in the midst of some mega deals, some really large deals. Now those deals may not give us the vendor revenue. It will all depend on how revenue gets recognized. But the good news is all those deals will result in very strong recurring revenue streams over the next five years for us. And these are large deals. We feel very comfortable. We are the leader in these deals