Ebix Inc (NASDAQ:EBIX) Q2 2020 Earnings Conference Call - Final Transcript
Aug 07, 2020 • 11:00 am ET
to be Ebix's largest channel, accounting for 86% of Q2 2020 revenues. FX also played a role in the quarter with the U.S. strengthening in light of COVID-19.
On a constant currency basis, Ebix's Q2 2020 revenues would have been $6.1 million higher, while the six-month year-to-date revenues would have been $9.8 million higher as compared to the GAAP revenues numbers reported. The EbixCash financial exchange revenues declined by $25.9 million from $79 million in Q2 2019 to $53.1 million in Q2 2020. However, that decline is understood clearly when one looks at the temporary impact of COVID-19 on our travel, ForEx, e-Learning and remittance businesses that were down by $47 million in Q2 2020 as compared to Q2 2019. Excluding travel, ForEx, remittance and e-Learning businesses, EbixCash revenues grew 47% in Q2 2020 and versus Q2 2019.
Beginning March 2020, our businesses in the area of on-site consulting, travel, foreign exchange, remittance and education were hit severely because of COVID-19. Once the pandemic led to a global shutdown and a virtual human curfew was imposed in countries like India, the effect of these business lines was was natural. Considering that, we feel good about the second quarter 2020 results and the resilience shown by our employees across the world to allow us to keep supporting our B2B clients.
I will now turn the call over to Steve.
Thanks, Darren. I want to start by thanking our employees around the world for working together to ensure that Ebix serves its customers as the COVID-19 pandemic continues. I have now been in the CFO role for four months and I am as bullish today on the investment strategy of Ebix as I was on day one. While we continue to be impacted negatively by this global pandemic, the breadth and strength of Ebix's solutions drove our solid results in the second quarter. Some may scoff at the term "solid results" when revenues and EPS are down year-over-year by double digits on a percentage basis, but I beg to differ. Ebix's foreign exchange, travel and remittance businesses experienced an approximately 90% decline in year-over-year revenues during the second quarter.
Yet, the company delivered adjusted EBITDA of $36.3 million during the second quarter of 2020. That level is within 5% of the average quarterly adjusted EBITDA produced by Ebix since the beginning of 2019. This performance was accomplished because Ebix has a diverse set of global software solutions and services, a large recurring and repeating revenue base, an investment strategy that's sound, a workforce dedicated to serving its customers and a management team that has proactively addressed our cost structure so that the company, our employees and shareholders will be in the best possible position as we endure the current global economic upheaval. I'm excited to be the CFO of Ebix and believe we have a bright future. Now let me discuss some specific financial results and metrics. Darren already walked through the revenue results for the quarter.
I would just add that