Executive Summary

Q3 2022 revenue was $257.9M (+35% YoY) and GAAP diluted EPS was $0.59 (+18% YoY); GAAP operating income rose to $30.4M (+8% YoY). Growth was driven by travel and foreign exchange (+145% YoY), payment solutions (+39%), BPO (+42%), Latin America (+55%), U.S. Annuitynet (+16%), and e-learning (+110%), partially offset by currency headwinds and lower insurance exchange revenue (-2% YoY) .
Operating cash flow was $23.6M (+30% YoY), improving sequentially from $21.4M in Q2 and $5.6M in Q1, reflecting stronger working capital and business recovery in impacted areas .
Management highlighted the largest quarterly FX headwind in >5 years (reducing reported revenue by ~$16.9M), yet constant-currency revenue grew 43% YoY; EbixCash exchanges (excluding prepaid gift cards) surged 82% YoY. The company reiterated efforts to refinance the February 2023 credit facility and advance the EbixCash IPO to reduce debt .
Exchanges accounted for 92% of Q3 revenue (EbixCash $196.1M, Insurance $41.3M, RCS $20.5M). Dividend was maintained at $0.075 per share; diluted share count year-end expectation ~30.8M .

What Went Well and What Went Wrong

What Went Well
- Travel and foreign exchange/outward remittance revenues combined grew ~145% YoY, evidencing robust recovery in segments most impacted by COVID-19 .
- EbixCash payment solutions revenues rose 39% YoY; BPO up 42%; Latin America up 55%; e-learning up 110%; U.S. Annuitynet revenue up 16% YoY. CEO: “Our EbixCash exchange revenues, excluding our prepaid gift card business, generated 82% YoY growth in Q3 2022” .
- Operating cash flow improved to $23.6M (+30% YoY) with GAAP EPS +18% YoY despite higher interest expense; CFO noted $107.1M YTD Adjusted EBITDA (EBITDA + SBC) and optimism given diversified revenue base .
What Went Wrong
- Insurance Exchanges revenue declined 2% YoY (slightly higher on constant currency), and cost of services as a percent of revenue increased to 67.6% (from 63.0%), reflecting mix shift toward lower-margin prepaid gift cards and ramp costs in recovering businesses .
- FX headwinds reduced reported revenue by ~$16.9M in Q3 and were the most pronounced in five fiscal years; cumulative other comprehensive loss rose due to INR weakness .
- Interest expense increased to $15.5M (+41% YoY), driven by higher rates on the revolver and term loan, and greater amortization of deferred financing costs; debt maturity in February 2023 created a negative working capital position due to current classification .

Financial Results

Metric	Q1 2022	Q2 2022	Q3 2022
Revenue ($USD Thousands)	$286,253	$250,781	$257,904
GAAP Operating Income ($USD Thousands)	$30,110	$30,107	$30,361
GAAP Diluted EPS ($)	$0.62	$0.63	$0.59
Non-GAAP Diluted EPS ($)	$0.76	$0.75	$0.73
Cost of Services ($USD Thousands)	$210,843	$169,330	$174,265
Operating Cash Flow ($USD Millions)	$5.6	$21.4	$23.6
Interest Expense ($USD Thousands)	$10,251	$11,664	$15,467

Segment/channel breakdown

Channel ($USD Thousands)	Q1 2022	Q2 2022	Q3 2022
EbixCash Exchanges	$224,152	$188,641	$196,113
Insurance Exchanges	$43,764	$42,302	$41,283
Risk Compliance Solutions (RCS)	$18,337	$19,838	$20,508
Total Revenue	$286,253	$250,781	$257,904

KPIs

KPI	Q1 2022	Q2 2022	Q3 2022
Adjusted EBITDA + SBC ($USD Millions)	$35.4	$36.0	$35.8
Dividend per Share ($)	$0.075	$0.075	$0.075
International Revenue (% of Total)	—	—	85.4%

Notes: The Q3 press release states Non-GAAP diluted EPS $0.73, while the reconciliation table shows $0.71; management text emphasizes $0.73 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Effective Tax Rate (%)	FY 2022	—	7%–10%	New range provided
Dividend per Share ($)	Quarterly	$0.075	$0.075	Maintained
Diluted Share Count (approx.)	Year-end 2022	~30.8M (communicated intra-year)	~30.8M	Maintained
Credit Facility Refinancing	2022–Feb 2023	IPO process ongoing	Pursuing multiple avenues incl. engaging a global investment bank, pre-IPO investments, bank financing in India, and EbixCash IPO to materially reduce debt upon closing	Raised urgency and specificity
EbixCash IPO (DRHP)	Filed Mar 9, 2022	—	Planned offering up to ₹60,000M (~$787M); ~$350M proposed to reduce parent debt; ~$130M for working capital; remainder for growth	Detailed use of proceeds disclosed

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2022)	Previous Mentions (Q2 2022)	Current Period (Q3 2022)	Trend
Currency headwinds	Adverse FX (post-Ukraine) impacted revenue/operating income	Constant-currency revenue +6% YoY; FX cut revenue by ~$9.4M	Largest FX impact in 5 years; FX reduced revenue by ~$16.9M	Worsened YoY in Q3
Travel/FX recovery	Travel +85%, FX +109% YoY; e-learning +138%	Travel/FX combined +293% YoY; e-learning ~600% YoY	Travel/FX combined +145% YoY; e-learning +110% YoY	Still strong; growth moderating from Q2 surge
Prepaid gift cards mix	EbixCash gift cards -7% YoY; mix effects	Gift cards -14% YoY; mix helped gross margin in Q2	Gift cards +39% YoY; mix compressed gross margin; cost of services 67.6% of revenue	Mix shifted back to lower margin in Q3
Insurance exchanges	+2.3% YoY	+0.9% YoY	-2.2% YoY (slightly higher on constant currency)	Softening
RCS	+8.3% YoY	+20.6% YoY	+14.1% YoY	Solid growth, moderating
Debt/refinancing	IPO process ongoing	—	Engaged advisor; pursuing multiple financing avenues; IPO targeted to reduce debt	Elevated focus and urgency
Legal/regulatory	Pending shareholder litigation updates	—	Class action second amended complaint dismissed; third amended filed; derivative actions stayed/extended	Legal overhang persists
Tax rate	—	—	Q3 ETR 9.90%; FY ETR guided 7%–10%	New guidance provided

Management Commentary

CEO (Robin Raina): “On a constant currency basis, our Q3 2022 revenues grew by 43% YoY to $274.8 million… despite substantial negative effects of currency headwinds… excluding pre-paid cards, [revenue] grew 29% YoY… EbixCash exchange revenues, excluding our prepaid gift card business, generated 82% YoY growth” .
CEO on capital strategy: “We are confident of addressing the debt maturity… engagement of a reputed global investment bank… securing pre-IPO investments… financing… banks in India… and the launch of the EbixCash IPO at the earliest… [to] materially reduce debt once the EbixCash IPO is launched and closed” .
CFO (Steve Hamil): “Despite the highest negative impact from foreign exchange movements… the Company delivered significant growth in revenue and EPS in Q3 2022 and has produced Adjusted EBITDA… of $107.1 million in the nine months of fiscal 2022… management is optimistic about the future… strong market positions and diverse nature of our global revenues” .

Q&A Highlights

The Q3 2022 earnings call transcript could not be retrieved due to a database inconsistency; therefore, specific Q&A highlights and tone shifts are unavailable. The company hosted the call on Nov 9, 2022 at 11:00 a.m. EST, with webcast and replay links provided in the press release .

Estimates Context

S&P Global (Capital IQ) consensus estimates for EBIX were unavailable via our system (missing CIQ mapping), so we cannot provide a formal “vs. consensus” comparison for revenue/EPS/EBITDA or target price. Expectation-setting will rely on company-reported results and trends until S&P Global mapping is restored [SpgiEstimatesError].

Key Takeaways for Investors

Execution in rebounding segments remains strong: travel/FX, BPO, Latin America, and e-learning continue to lead growth, underpinning diversified revenue drivers even as insurance exchanges softened modestly in Q3 .
Margin dynamics warrant attention: the mix shift back toward prepaid gift cards and ramp costs lifted cost of services to 67.6% of revenue, pressuring gross margins versus last year; watch mix evolution and cost normalization as travel/FX scale further .
FX is a tangible headwind: reported revenue was cut by ~$16.9M in Q3, the largest quarterly impact in five years; constant-currency growth remains robust, but INR, GBP, AUD volatility can materially affect reported results .
Cash generation and capital priorities: sequential and YoY operating cash flow improvement alongside YTD Adjusted EBITDA of $107.1M supports near-term liquidity, but refinancing the February 2023 credit facility and executing the EbixCash IPO are critical de-risking events .
Debt profile and working capital: classification of the credit facility as current creates a negative working capital position; investors should monitor advisor engagement, pre-IPO investments, India bank financing, and IPO timing for debt reduction .
Dividend maintained at $0.075, with year-end diluted share count ~30.8M expected; tax guidance introduced (FY ETR 7%–10%), aiding model assumptions despite lack of consensus estimates access .
Legal matters: while one amended class complaint was dismissed, derivative actions remain stayed; no material change to operations noted, but continued monitoring is prudent .

All facts above are sourced directly from EBIX’s Q3 2022 8-K press release, Q3 2022 Form 10-Q, and Q1/Q2 2022 8-K press releases, as cited.

EBIX INC (EBIX)·Q3 2022 Earnings Summary