Executive Summary

Q1 2023 revenue was $242.8M, down 4.9% YoY on lower prepaid card sales; ex-prepaid, revenue grew 17.6% YoY, and constant currency would have added ~$19M (to $261.7M) .
GAAP diluted EPS fell to $0.23 (from $0.62 in Q1’22) as interest expense rose by $12.0M YoY and FX losses increased, offsetting higher operating income; non-GAAP EPS was $0.49 .
Operating performance remained resilient: GAAP operating income rose 1% YoY to $30.5M and 2% sequentially vs. Q4’22; RCS revenue grew 13.9% YoY, while Insurance Exchanges declined 3% and EbixCash declined 20% (ex-prepaid EbixCash +32% YoY) .
Management emphasized deleveraging as a key 2023 catalyst, targeting a “debt-free Ebix” via the EbixCash IPO and strategic carve-outs; Q2 2023 diluted shares expected ~30.9M .

What Went Well and What Went Wrong

What Went Well
- Strong ex-prepaid momentum and broad-based growth: “Our worldwide revenues excluding pre-paid cards grew 17.6% year-over-year in Q1 2023… YOY growth in 9 of the 11 geographies” .
- Operating resilience: GAAP operating income increased to $30.5M (+1% YoY; +2.4% QoQ), helped by lower services/G&A costs vs. Q4’22; non-GAAP operating income was $34.8M (+3% YoY) .
- Efficiency on core mix: “GAAP operating income, excluding the low margin pre-paid cards business was a healthy 28% - quite close to the Company’s operating income goal of 30% or above” .
What Went Wrong
- Headline revenue declined 4.9% YoY to $242.8M on lower prepaid card sales and seasonal CME normalization; EbixCash total revenue fell 20% YoY (though ex-prepaid +32% YoY) .
- Earnings pressure from non-operating items: GAAP EPS dropped to $0.23 due to $14.1M higher non-operating costs, including +$12.0M interest expense and ~$2.1M FX differential loss YoY; GAAP net income fell to $7.1M (vs. $19.2M) .
- Elevated G&A YoY: G&A expense rose to $37.5M (from $26.9M in Q1’22), even as it declined sequentially vs. Q4’22; insurance revenues declined 3% YoY (currency headwind, tough Australia comp) .

Metric	Q3 2022	Q4 2022	Q1 2023
Revenues ($M)	$257.9	$255.2	$242.8
Revenues (constant currency, $M)	$274.8	$279.0	$261.7
GAAP Operating Income ($M)	$30.4	$29.8	$30.5
GAAP Net Income ($M)	$18.3	$7.9	$7.1
GAAP Diluted EPS ($)	$0.59	$0.26	$0.23
Non-GAAP Diluted EPS ($)	$0.71	$0.36	$0.49
Cash from Operations ($M)	$23.6	$32.5	$7.2

Segment/channel breakdown (Q1 2023 vs Q1 2022)

Channel ($000s)	Q1 2022	Q1 2023	YoY
EbixCash Exchanges	$224,152	$179,430	-20.0%
Insurance Exchanges	$43,764	$42,436	-3.0%
RCS	$18,337	$20,895	+13.9%
Total Revenue	$286,253	$242,736	-15.2%
Total Revenue ex Prepaid Cards	$99,764	$117,348	+17.6%

Select KPIs and disclosures

KPI	Q1 2023
Exchanges as % of revenue	94%
Adjusted EBITDA proxy (EBITDA + SBC)	$36.1M; ~30.8% of revenue ex-prepaid (management framing)
Q2 2023 expected diluted shares	~30.9M
Liquidity (cash, cash equivalents, ST investments, restricted cash)	$108.9M at 3/31/23

Notes: Q3’22 press text cites non-GAAP EPS $0.70 while the reconciliation table shows $0.71; we reference the table value .

Metric	Period	Previous Guidance	Current Guidance	Change
Diluted share count	Q2 2023	NA	~30.9M diluted shares	New disclosure
Revenue/EPS/margins	2023	NA	Not provided	NA (no formal guidance)
Strategic leverage plan	2023	NA	“Aspirational goal of a debt-free Ebix in 2023” via EbixCash IPO and carve-outs	New strategic target

No other formal quantitative guidance (revenue, margin, OpEx, tax) was issued in the Q1 2023 materials .

(Transcript retrieval was unavailable due to a database issue; themes inferred from company press materials for Q3’22, Q4’22, and Q1’23.)

Topic	Previous Mentions (Q-2: Q3’22)	Previous Mentions (Q-1: Q4’22)	Current Period (Q1’23)	Trend
Debt/interest costs & refinancing	Pursuing avenues incl. advisor engagement, IPO, financing options	Working with Board/advisors; facility extended to May 23, 2023	Non-operating costs (debt/advisory) hampering results; target “debt-free” in 2023 via IPO/carve-outs	Intensifying deleveraging focus
FX headwinds	“Largest negative quarterly impact in 5+ years”	Significant negative impact; constant-currency growth remained positive	Constant currency revenue would have been +$19M in Q1	Persistent headwind; moderating
Prepaid card mix effect	Strong growth lowered gross margin mix	Mix and costs pressured margins	Lower prepaid sales drove headline revenue decline; ex-prepaid growth robust	Mix shifts remain pivotal
Travel/Forex rebound	+145% YoY (travel + forex/outward remittance combined)	Continued YoY strength in travel/forex	Noted in ex-prepaid EbixCash +32% YoY	Recovery sustained
Insurance exchanges	-2% YoY (slightly higher CC)	Flat for FY’22	-3% YoY (currency, tough Australia comp)	Stable-to-soft

CEO Robin Raina: “Our operating results in Q1 2023 are encouraging… Revenues excluding pre-paid cards grew 17.6% YoY… GAAP operating income, excluding the low margin pre-paid cards business was a healthy 28%” .
CEO Robin Raina on leverage: “Non-operating costs like the costs of debt and the advisory costs… continue to hamper our overall financial results… we are looking forward to the EbixCash IPO… and strategic carve-out alternatives with the stated goal of not having a debt overhang beyond 2023” .
CFO Amit Kumar Garg: “In Q1 2023, EBITDA plus noncash stock compensation added to $36.1M… approximately 30.8% of our worldwide revenues excluding pre-paid cards… we made cumulative payments of $41M… [and] had… $108.9M” of cash, cash equivalents, ST investments and restricted cash at 3/31/23 .

The Q1 2023 earnings call transcript could not be retrieved due to a database inconsistency; Q&A highlights and any verbal guidance clarifications were therefore unavailable to extract.

Wall Street consensus (S&P Global) for Q1 2023 EPS and revenue was unavailable via our connector due to a missing CIQ mapping for EBIX, so estimate comparisons are not included. If required, we can update this section once S&P Global mappings are resolved.

Mix matters: headline revenue fell 4.9% YoY to $242.8M, but ex-prepaid revenue grew 17.6% YoY and constant currency would have added ~$19M; investors should focus on ex-prepaid/constant-currency trajectories .
Operating engine intact: GAAP operating income rose to $30.5M despite macro/mix headwinds; sequential improvement vs. Q4’22 indicates cost control progress .
Non-operating drag the key overhang: $12.0M higher YoY interest expense and FX losses drove GAAP EPS to $0.23; deleveraging is the primary earnings unlock .
EbixCash IPO and carve-outs are the near-term catalysts to reduce debt and interest burden; management’s “debt-free in 2023” aspiration is central to the equity narrative .
Segment watch: RCS remains a bright spot (+13.9% YoY); Insurance Exchanges softness (-3% YoY) appears largely currency/comp-related; monitor ex-prepaid EbixCash (+32% YoY) to gauge core momentum .
Liquidity and cash generation: $7.2M operating cash flow in Q1 amid $41M of mandatory outflows; $108.9M liquidity (cash, ST investments, restricted) provides runway while strategic actions progress .
Next quarter share count (~30.9M diluted) and any updates on refinancing/IPO timing will be key trading catalysts .

Citations: Q1 2023 8-K and Exhibit 99.1 press release ; Q4 2022 8-K and press release ; Q3 2022 8-K and press release .