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Ebix 1Q22 results +3

13:23 10-May-22

Management was unable to discuss the EbixCash IPO on its conference call while the red herring document is still pending approval.  Nonetheless, I found the call completely convincing that leadership which was well behind the curve on pandemic response is also completely (or willfully) ignorant of the changing geopolitical environment.  Staffing concerns that often stem from the bad technology practices that are endemic to India are and industry-wide problem.  However, they are particularly troublesome for areas that embody a lot of domain-specific knowledge, like underwriting.  Thus, I will be inclined to ignore an upcoming "super broker" win announcement for North America as well as Europe in the coming days.  Appetite for foreign investment into India may be drying up as the war drags on, and I have insufficient faith in both home-grown efforts and Ebix management.  EBIX returning to 1-year lows in the wake of the call indicates that I am not alone.

Ebix has announced its first quarter results:

• 76 cents of EPS beats by 20 cents
• from $286.3M of revenue, which beats by $7.3M

Management can only say that it is working on the EbixCash IPO, though, and provides no forward guidance.  The conference call is at 11:30am.  I will listen to it, but would only write further if there is something more indicative.  EBIX shares have bounced from recent declines and will likely trade back around or above $30 on this news, but the macro factors that I cited when the call was scheduled remain.

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