JOHNS CREEK, Ga., Aug. 09, 2021 (GLOBE NEWSWIRE) -- Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries today announced the following results for the quarter ended June 30, 2021:

  • Revenues of $246.3 million
  • GAAP operating income of $27.3 million and Non-GAAP operating income of $33.9 million
  • GAAP Diluted EPS of $0.51 and Non-GAAP diluted EPS of $0.76

Ebix will host a conference call to review its results today at 11:00 a.m. EDT (details below).

“Q2 2021 was severely impacted by the second wave of COVID-19, with most of Brazil and India coming to almost a standstill for two months. This impacted our revenues not only in these two countries but the United States too, as we experienced an acute shortage of personnel to execute business in hand. Our bank interest costs sequentially were higher by $3.3 million in Q2 2021 on lower bank debt than in Q1 2021. We had to restore software developer salaries back from the cuts we had put in place last year, while COVID-19 continued to impact our business.” Robin Raina, President & CEO, Ebix Inc. said, “Considering that, I am pleased that we still delivered a quarter with $246.3 million of revenues and $27.3 million of operating income. This speaks to the fundamental resilience of our business.”

Ebix delivered the following results for the second quarter of 2021:

Revenue: Q2 2021 revenue increased 121% to $246.3 million compared to $111.3 million in Q2 2020. Excluding revenues from the foreign exchange, travel, e-learning, and remittance businesses that have been impacted the most by COVID-19, Q2 2021 revenues grew 125% as compared to Q2 2020.

Out of 11 P&L geographies worldwide, revenues grew in nine regions by double digits or more, while declining in two regions. Despite COVID-19, insurance revenues outside the U.S. grew by a healthy 16% year over year to $19.1 million in the quarter, offset by a 10% year-over-year decline in the U.S. Sequentially, U.S. insurance revenues were essentially flat as compared to Q1 2021. International revenues increased 200% year over year.

Exchanges, including the EbixCash and our worldwide insurance exchanges, continued to be Ebix’s largest channel, accounting for 94% of Q2 2021 revenues.

(dollar amounts in thousands)  
Channel Q2 2021 Q2 2020 Change
EbixCash Exchanges $189,947 $53,240 +257 %
Insurance Exchanges 41,916
42,959 -2 %
RCS 14,459 15,113 -4 %
Total Revenue $246,322 $111,312 +121 %
Total Revenue on Constant Currency Basis $240,003 $111,312 +116 %

Operating Income and Operating Cash: GAAP Operating income for Q2 2021 of $27.3 million decreased 13% sequentially from $31.2 million in Q1 2021 and decreased 14% year-over-year as compared to $31.9 million in Q2 2020, primarily due to the severe impact of the second wave of COVID-19 in April and May 2021. During Q2 2020, the Company reduced compensation levels for many of its employees in the most negatively COVID-19 impacted business areas. The Company reversed the vast majority of 2020’s salary adjustments in Q2 2021 and offered salary increases to all software development staff, resulting in an year-over-year increase of approximately $4.1MM in personnel-related costs. These steps were taken to retain and motivate our employee base to support the expected growth in business as the effects of COVID-19 subside over the next few months.

Non-GAAP operating income for Q2 2021 was $33.9 million.

Cash generated from operations in Q2 2021 was $13.1 million, as compared to $28.8 million in Q2 2020 and $8.6 million in Q1 2021. The cash flows reflected the impact of the second wave of COVID-19 on receivable collections, as the majority of India and Brazil were in a complete shut down mode during the months of April and May 2021.

Earnings per Share: Q2 2021 GAAP diluted earnings per share was at $0.51 as compared to $0.76 in Q2 2020. The drop was due to a number of extra-ordinary items detailed out in the GAAP to Non-GAAP reconciliation table below. Additionally, in Q2 2020 the Company decreased its contingent acquisition earn out accrual by $3.3 million, which served to reduce general and administrative expenses in Q2 2020. No such adjustment was made in Q2 2021.

Non-GAAP diluted earnings per share for Q2 2021 was $0.76.

Net Income: Q2 2021 GAAP net income decreased 33% to $15.7 million compared to $23.5 million in Q2 2020. The Q2 2021 non-GAAP net income was $23.5 million.

Q2 2021 Diluted Share Count: As of today, Ebix expects its diluted share count for Q3 2021 to be approximately 30.8 million.

Dividend: Ebix paid its regular quarterly dividend of $0.075 per share in Q2 2021 for a total cost of $2.3 million.

“We feel good about the pace at which we are moving towards a prospective EbixCash IPO. We recently announced the addition of a number of independent leading luminaries from the field of Economics, Education, Regulatory and Banking sectors to the EbixCash Board. The 3-year audit by two audit firms, leading to the Draft Red Herring Prospectus (DRHP) are in process at present.” Ebix Chairman, President and CEO Robin Raina said. “We are targeting the IPO in January or February of 2022, with a DRHP being filed in October or November of 2021.”

“Ebix continues to weather the COVID-19 storm, but has a very positive view of how this company will perform whenever global life normalizes for businesses and individuals. We intend to focus on maximizing cash flows in the coming quarters and will use those cash flows to both invest in our businesses and reduce our total debt over time. We are also actively engaged in addressing the strategic goal of refinancing our current primary corporate debt capital to a structure that aligns Ebix’s strategic goals with both a structure and investor base that will enable us to optimize the growth and performance of Ebix over time.” Steve Hamil, EVP and CFO said. “We look forward to sharing more details with our stakeholders in the coming months.”

Reconciliation of GAAP operating income, net income and diluted earnings per share to non-GAAP operating income, net income and diluted earnings per share. Non-GAAP information is provided to enhance the understanding of the Company's financial performance and is reconciled to the Company's GAAP information in the accompanying tables.

Q2 2021

  Net Income Diluted EPS
Q2 2021 GAAP Net Income $15,721 $0.51
Q2 2021 GAAP Operating Income $27,265  
Non-GAAP Adjustments:    
Amortization of Intangibles (1) $2,757 $0.09
Stock-Based Compensation (1) $1,359 $0.04
One-time Legal and Professional Services Costs (2) $1,260 $0.04
Employee related one-time costs (3) $1,250 $0.04
Non-recurring non-operating expense (4) $1,253 $0.04
Income Tax Effects of Non–GAAP Adjustments (5) ($136) ($0.0)
Total Non-GAAP Adjustments (Operating Income) $6,626  
Total Non-GAAP Adjustments (Net Income) $7,743 $0.25
Second Quarter 2021 Non-GAAP Net Income $23,464 $0.76
Second Quarter 2021 Non-GAAP Operating Income $33,891  

(1) Adjustments related to amortization of acquired intangibles and stock-based compensation recognized during the periods for GAAP purposes.
(2) Non-recurring legal and professional services costs recorded during the period for GAAP purposes.
(3) Non-recurring employee related costs in Q2 2021.
(4) Non-recurring non-operating expense that is unrelated to any operating activities.
(5) Non-GAAP adjustment is based on the Q2 2021 effective tax rate, which reflects currently available information and could be subject to change.

Non-GAAP Financial Measures and Other Metrics

This press release contains the following non-GAAP financial measures: non-GAAP net income, non-GAAP operating income and non-GAAP diluted earnings per share. Non-GAAP operating income , non-GAAP net income and non-GAAP diluted earnings per share from operations exclude amortization of intangibles, stock-based compensation, as well as certain non-recurring expenses that are not associated with our ongoing operating business activities.

Ebix believes that these non-GAAP financial measures and other metrics provide useful information to management and investors regarding certain financial and business trends relating to Ebix’s financial condition and results of operations. The Company’s management uses these non-GAAP measures and other metrics to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation, and for budgeting and planning purposes. The Company believes that the use of these non-GAAP financial measures and other metrics provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures and other metrics to investors.

Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Ebix urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including the financial tables at the end of this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Conference Call Details:

Call Date/Time: Monday, August 9, 2021 at 11:00 a.m. EDT

Call Dial-In: +1-877-837-3909 or 1-973-409-9690; Call ID # 6093467

Live Audio Webcast:

Audio Replay URL: after 2:00 p.m. EDT on August 9th

About Ebix, Inc.

With 150+ offices across 6 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to provide On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries. In the insurance sector, Ebix’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis, while also, providing Software-as-a-Service ("SaaS") enterprise solutions in the area of CRM, front-end & back-end systems, outsourced administration and risk compliance services, around the world.

With a "Phygital” strategy that combines over 320,000 physical distribution outlets in India and Association of Southeast Asian Nations (“ASEAN”) countries, to an omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio encompasses leadership in the areas of domestic and international money remittance, foreign exchange (Forex), travel, pre-paid & gift cards, utility payments, software solutions for lending, wealth management, travel, bus exchanges and insurance in India and other markets. EbixCash’s Forex operations have emerged as a leader in India’s airport Foreign Exchange business with operations in 13 international airports, combined conducting over $4.8 billion in gross transaction value per year (pre-COVID-19). EbixCash’s inward remittance business in India processes approximately $5 billion in gross annual remittance volume (pre-COVID-19) and is the clear market leader. EbixCash Travel is also one of Southeast Asia’s leading travel exchanges with over 200,000 agents, 25 branches and over 9,800 corporate clients, combined processing an estimated $2.5 billion in gross merchandise value per year (pre-COVID-19).

Through its various SaaS-based software platforms, Ebix employs thousands of domain-specific technology professionals to provide products, support and consultancy to thousands of customers on six continents. For more information, visit the Company’s website at


As used herein, the terms “Ebix,” “the Company,” “we,” “our” and “us” refer to Ebix, Inc., a Delaware corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Ebix, Inc.

The information contained in this Press Release contains forward-looking statements and information within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. This information includes assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, acceptance of the Company’s products by the market, and management’s plans and objectives. In addition, certain statements included in this and our future filings with the Securities and Exchange Commission (“SEC”), in press releases, and in oral and written statements made by us or with our approval, which are not statements of historical fact, are forward-looking statements. Words such as “may,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “seeks,” “plan,” “project,” “continue,” “predict,” “will,” and other words or expressions of similar meaning are intended by the Company to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are found at various places throughout this report and in the documents incorporated herein by reference. These statements are based on our current expectations about future events or results and information that is currently available to us, involve assumptions, risks, and uncertainties, and speak only as of the date on which such statements are made.

Our actual results may differ materially from those expressed or implied in these forward-looking statements. Factors that may cause such a difference, include, but are not limited to those discussed in our Annual Report on Form 10-K and subsequent reports filed with the SEC, as well as: the ongoing effects of the COVID-19 global pandemic, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties; pricing and other competitive pressures and the Company’s ability to gain or maintain share of sales as a result of actions by competitors and others; changes in estimates in critical accounting judgments; changes in or failure to comply with laws and regulations, including accounting standards, taxation requirements (including tax rate changes, new tax laws and revised tax interpretations) in domestic or foreign jurisdictions; exchange rate fluctuations and other risks associated with investments and operations in foreign countries (particularly in India, Australia and Asia, Latin America and Europe wherein we have significant and/or growing operations); fluctuations in the equity markets, including market disruptions and significant interest rate fluctuations, which may impede our access to, or increase the cost of, external financing; ability to secure additional financing to support capital requirements; credit facility provisions that could materially restrict our business; costs and effects of litigation, investigations or similar matters that could affect our business, operating results and financial condition; and international conflict, including terrorist acts.

Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors, or to publicly announce the results of, or changes to any of the forward-looking statements contained herein to reflect future events, developments, changed circumstances, or for any other reason.

Readers should carefully review the disclosures and the risk factors described in the documents we file from time to time with the SEC, including future reports on Forms 10-Q and 8-K, and any amendments thereto.

You may obtain our SEC filings at our website, under the “Investor Information” section, or over the Internet at the SEC’s web site,


Darren Joseph
678 -281-2027 or

David Collins or Chris Eddy
Catalyst Global - 212-924-9800 or

Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share data)

  Three Months Ended   Six Months Ended
  June 30,   June 30,
  2021   2020   2021   2020
Operating revenue $ 246,322     $ 111,312     $ 536,375     $ 249,188  
Operating expenses:              
Cost of services provided 178,203     49,093     398,561     106,550  
Product development 10,142     8,338     19,687     17,755  
Sales and marketing 3,392     3,458     7,219     7,262  
General and administrative, net 23,335     15,464     44,672     44,708  
Amortization and depreciation 3,985     3,109     7,785     6,750  
Total operating expenses 219,057     79,462     477,924     183,025  
Operating income 27,265     31,850     58,451     66,163  
Interest income 17     29     25     83  
Interest expense (10,462 )   (7,147 )   (18,541 )   (16,384 )
Non-operating (loss) income (1,253 )   118     (1,254 )   99  
Foreign currency exchange gain (loss) 9     91     (616 )   709  
Income before income taxes 15,576     24,941     38,065     50,670  
Income tax expense (627 )   (1,677 )   (1,829 )   (2,961 )  
Net income including noncontrolling interest 14,949     23,264     36,236     47,709  
Net loss attributable to noncontrolling interest (772 )   (211 )   (1,076 )   (489 )
Net income attributable to Ebix, Inc. $ 15,721     $ 23,475     $ 37,312     $ 48,198  
Basic earnings per common share attributable to Ebix, Inc. $ 0.51     $ 0.77     $ 1.22     $ 1.58  
Diluted earnings per common share attributable to Ebix, Inc. $ 0.51     $ 0.76     $ 1.21     $ 1.57  
Basic weighted average shares outstanding 30,581     30,504     30,570     30,490  
Diluted weighted average shares outstanding 30,713     30,708     30,712     30,696  

Ebix, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)

  June 30,
  December 31,
ASSETS (Unaudited)    
Current assets:      
Cash and cash equivalents $ 85,069     $ 105,035  
Receivables from service providers 13,303     4,711  
Short-term investments 13,866     25,019  
Restricted cash 8,440     8,519  
Fiduciary funds - restricted 2,580     4,106  
Trade accounts receivable, less allowances of $19,439 and $22,691, respectively 142,360     142,847  
Other current assets 81,386     71,661  
Total current assets 347,004     361,898  
Property and equipment, net 53,171     52,521  
Right-of-use assets 11,954     12,372  
Goodwill 942,062     949,037  
Intangibles, net 51,310     50,880  
Indefinite-lived intangibles 16,647     21,647  
Capitalized software development costs, net 20,657     19,389  
Deferred tax asset, net 65,943     63,402  
Other assets 37,476     38,707  
Total assets $ 1,546,224     $ 1,569,853  
Current liabilities:      
Accounts payable and accrued liabilities $ 54,677     $ 64,764  
Payables to service agents 4,127     5,281  
Accrued payroll and related benefits 10,401     11,792  
Working capital facility 9,704     16,643  
Fiduciary funds - restricted 2,580     4,106  
Short-term debt 729     894  
Current portion of long term debt and financing lease obligations, net of deferred financing
costs of $1,493 and $920, respectively
24,969     23,621  
Contract liabilities 35,399     32,898  
Lease liability 3,249     3,905  
Other current liabilities 30,868     27,486  
Total current liabilities 176,703     191,390  

Revolving line of credit 439,402     439,402  
Long term debt and financing lease obligations, less current portion, net of deferred financing costs of $881 and $1,062, respectively 199,052     232,140  
Contingent liability for accrued earn-out acquisition consideration 2,560      
Contract liabilities 7,647     8,033  
Lease liability 8,790     8,540  
Deferred tax liability, net 1,358     1,235  
Other liabilities 28,909     29,009  
Total liabilities 864,421     909,749  
Stockholders’ equity:      
Preferred stock, $0.10 par value, 500,000 shares authorized, no shares issued and outstanding at June 30, 2021 and December 31, 2020      
Series Y Convertible preferred stock, $0.10 par value, 350,000 shares authorized, no shares issued and outstanding at June 30, 2021 and December 31, 2020      
Common stock, $0.10 par value, 220,000,000 shares authorized, 30,558,061 issued and outstanding, at June 30, 2021, and 30,515,334 issued and outstanding at December 31, 2020 3,058     3,052  
Additional paid-in capital 13,718     11,126  
Retained earnings 732,974     700,304  
Accumulated other comprehensive loss (113,996 )   (101,503 )
Total Ebix, Inc. stockholders’ equity 635,754     612,979  
Noncontrolling interest 46,049     47,125  
Total stockholders’ equity 681,803     660,104  
Total liabilities and stockholders’ equity $ 1,546,224     $ 1,569,853  

Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)

  Six Months Ended
  June 30,
  2021   2020
Cash flows from operating activities:      
Net income attributable to Ebix, Inc. $ 37,312     $ 48,198  
Net loss attributable to noncontrolling interest (1.076 )   (489 )
Adjustments to reconcile net income to net cash provided by operating activities:      
Amortization and depreciation 7,785     6,750  
(Benefit) provision for deferred taxes (3,175 )   225  
Share based compensation 2,717     2,253  
Benefit for doubtful accounts (2,815 )   (50 )
Amortization of right-of-use assets 2,507     3,257  
Amortization of capitalized software development costs 1,647     1,670  
Reduction of acquisition accruals     (3,308 )
Changes in assets and liabilities, net of effects from acquisitions:      
Accounts receivable 2,025     14,190  
Receivables from service providers (8,592 )   12,381  
Payables to service agents (1,154 )   (7,802 )
Other assets (10,489 )   (1,260 )
Accounts payable and accrued expenses (9,469 )   (8,004 )
Accrued payroll and related benefits (1,318 )   2,130  
Contract liabilities 2,182     (306 )
Lease liabilities (264 )   (3,008 )
Reserve for potential uncertain income tax return positions 334     206  
Other liabilities 3,503     (8,634 )
Net cash provided by operating activities 21,660     58,399  
Cash flows from investing activities:      
Cash paid for acquisitions, net of cash acquired     (5,170 )
Capitalized software development costs (3,106 )   (3,257 )
Maturities (purchases) of unrestricted marketable securities, net 11,250     (27,301 )
Capital expenditures (1,705 )   (757 )
Net cash provided by (used in) investing activities 6,439     (36,485 )
Cash flows from financing activities:      
Proceeds from revolving line of credit, net     1,364  
Principal payments of term loan obligation (31,297 )   (9,414 )
Proceeds from the exercise of stock options     636  
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested (119 )   (1,841 )
Dividend payments (4,642 )   (4,605 )
Payments of debt obligations (149 )   (119 )
Payments of working capital facility, net (6,886 )   (19,763 )
Payments of financing lease obligations (48 )   (113 )  
Net cash used in financing activities (43,141 )   (33,855 )
Effect of foreign exchange rates on cash (4,806 )   (10,030 )
Net change in cash and cash equivalents, and restricted cash (19,848 )   (21,971 )
Cash and cash equivalents, and restricted cash at the beginning of the period 120,213     111,369  
Cash and cash equivalents, and restricted cash at the end of the period $ 100,365     $ 89,398  
Supplemental disclosures of cash flow information:      
Interest paid $ 14,065     $ 15,434  
Income taxes paid $ 12,073     $ 2,096  

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