Ebix, Inc. (NASDAQ: EBIX) is engaged as a provider of on-demand software and e-commerce services specifically to the insurance, financial services, travel, health, online learning industries. Shares of the software-as-a-service (SaaS) provider are skyrocketing 79% through early trading on Thursday, November 10, 2022. Over the past three months, Ebix has seen average daily volume of 284,010 shares. However, volume of 4.39 million shares or dollar volume of around $127.44 million, has already exchanged hands through early trading.
Shares of Ebix are soaring after the company released third quarter 2022 financial results. During the quarter ended September 30, 2022, the SaaS company reported total revenue of $257.9 million or an increase of 35% year-over-year. On a constant currency basis, Q3 revenues would have increased 43% y/y and would have been $16.9 million higher, but forex headwinds cut into the results.
Operating income for the quarter came in at $30.4 million, an increase of 8% y/y. GAAP diluted earnings per share was $0.59 compared to $0.50 during Q3 2021. Overall GAAP net income increased 18% to $18.3 million during the quarter, up from $15.5 million during the same time last year.
Management says it was very encouraged by the strong quarterly results despite the forex headwinds. The main growth contributors were the company’s EbixCash travel and forex/remittance revenues, EbixCash payment solution revenues, and EbixCash BPO revenues. These businesses saw revenue growth in a strong range between 39% and 145% during Q3 2022.
Steve Hamil, EVP and Global CFO: “Despite the highest negative impact from foreign exchange movements we have seen in at least five years, the Company delivered significant growth in revenue and EPS in Q3 2022 and has produced Adjusted EBITDA (EBITDA plus non-cash stock compensation expense) of $107.1 million in the nine months of fiscal 2022. That represents a year-over-year 5% increase year-to-date in 2022. With continued improvement for the solutions and services most negatively impacted by COVID-19 and the stability of our insurance exchanges revenues and growth in our risk compliance solutions revenues, Ebix management is optimistic about the future of the Company and our strong market positions and the diverse nature of our global revenues.”
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