Ebix Inc (EBIX) Q1 2021 Earnings Call Transcript

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Ebix Inc (NASDAQ:EBIX)

Q1 2021 Earnings Call

May maybe maybe also fair 17, 2021, 11: 00 a.m. ET

Contents:

  • Ready Remarks
  • Questions and Answers
  • Call Contributors

Ready Remarks:

Operator

Ladies folk and gents, thank you for standing by and welcome to the Ebix Incorporated, First Quarter Financial Outcomes Investor Convention Call. [Operator Instructions]. There'll likely be a seek files from-and-reply session for the length of -- later on. [Operator Instructions]. I'd now steal handy the convention over to your speaker this day, Mr. Darren Joseph, Company Vice President of Ebix. Thank you. Please mosey ahead.

Darren Joseph -- Company Vice President Finance and Human Sources

Thank you. Welcome everybody to Ebix Incorporated 2021 First Quarter Earnings Convention Call. Joining me to focus on the quarter is Ebix's Chairman, President and CEO, Robin Raina; President, Insurance Companies, North The United States, Ash Sawhney; and Ebix's EVP and CFO, Steve Hamil. Following our remarks, we are able to begin up the name to your questions.

Let me snappy duvet the safe harbor. One of the indispensable statements that we make this day are ahead-taking a perceive, including, among others, statements relating to Ebix's future investments, our long-term growth and innovation, the expected performance of our companies and our employ of cash.

These statements bear a mode of risks and uncertainties that will also motive staunch results to fluctuate materially from those projected in the ahead-taking a perceive statements. Please existing that these ahead-taking a perceive statements replicate our opinions handiest as of the date of this presentation, and we undertake no responsibility to revise or publicly release the results of any revisions to these ahead-taking a perceive statements in light of original files or future events.

Additional files relating to the components that will also motive staunch results to materially fluctuate from those in the ahead-taking a perceive statements made this day is contained in our SEC filings, which checklist a more detailed description of the possibility components that will also impression our results. Our press release announcing the Q1 2021 results used to be issued this morning. The audio of this investor name is additionally being webcast reside on the accumulate at www.ebix.com/webcast. You would possibly perchance maybe presumably perceive at Ebix's financials beyond what has been equipped in the discharge on our web characteristic, www.ebix.com. The audio and the textual remark transcript of this name will likely be accessible on the investor homepage of the Ebix web characteristic after 4: 00 P.M. Eastern Time this day.

Let me now focus on the principal metrics in our Q1 2021 [Phonetic] results released earlier this day. Q1 diluted EPS used to be $0.70 and non-GAAP diluted EPS used to be $0.84. Q1 revenues had been at a file $290 million and accurate currency revenues at $290.7 million. Q1 GAAP working profits used to be $31.2 million and non-GAAP working profits used to be $35.6 million.

Income in Q1 2021 elevated 110% to $290 million from $137.9 million in Q1 2020. On a fixed currency foundation, Q1 2021 revenues elevated 111% Twelve months-over-Twelve months and would have been $600,000 better than reported revenues due to the the weakening Indian Rupee and Brazilian Valid, offset by strengthening Aussie Dollar.

Sequentially, Q1 2021 revenues elevated 31% over Q4 2020 revenue of $222.1 million. With the exception of revenues from overseas substitute, lag, e-Studying and remittance companies that had been impacted essentially the most by COVID-19, Q1 2021 revenues grew 187% as when when put next with Q1 2020. Exchanges, including the EbixCash and our worldwide insurance exchanges, continued to be Ebix's largest channel, accounting for 95% of Q1 2021 revenues.

The EbixCash monetary substitute reported revenue of $232.6 million in Q1 2021, an amplify of 198% as when when put next with $77.8 million in Q1 2020. Sequentially, EbixCash's Q1 2021 revenues elevated by 45% as when when put next with $160.4 million in Q4 2020. Starting in the outdated few weeks of March 2020, our companies in the build of onsite consulting, lag, overseas substitute, remittance and training had been hit severely attributable to COVID-19. As soon as the pandemic ended in a world shutdown and a virtual human curfew used to be imposed in nations treasure India, the sort of these industry traces used to be pure.

Interested by that, we feel aesthetic about Q1 2021 results and the resilience shown by our workers internationally to serve supporting our customers. COVID-19 had a downward impression on a total lot of our insurance substitute companies in Q1 2021 with decreased availability of India-essentially essentially based entirely construction workers or billable work already awarded to us. We had the mumble infamous shall we deliver in our life underwriting industry, but now not ample accessible sources to form out, to enact implementation work. To add to it, onsite client work linked to product implementation got right here all the absolute best diagram down to nearly nothing attributable to COVID-19. Furthermore, most original dealer selections had been delayed due to the COVID-19.

We've made arrangements to amplify staffing phases to have overlapping workers for the decreased availability of resource in determined geographies. These are phenomenal times and we're making an attempt to make adjustments accordingly. Our first quarter revenues and working profits are steadily traditionally low in the fourth quarter of the preceding Twelve months, essentially attributable to our persevering with scientific training industry, having a seasonal amplify in the fourth quarter. Q1'21 used to be no somewhat heaps of with CME revenues lowering by roughly $4 million as when when put next with Q4 2020. Despite that headwind, and the elevated offset -- form of COVID-19 in Q1 2021 on a total lot of our companies, we aloof managed to grow our total revenue 31% sequentially and 110% Twelve months-over-Twelve months in Q1 of 2021.

I'll now turn the name over to Steve.

Steven M. Hamil -- Govt Vice President and Global Chief Financial Officer

Thanks, Darren. We have, and continue to operate in unheard of times. The COVID-19 global pandemic continues to stifle financial job and impression our companies across the globe. India has been hit by the second wave of the virus in Q1 2021 with devastating penalties and impression on the population, whereas Brazil is getting hit in the intervening time by the third wave of virus infections. The three nations that this day are impacted essentially the most by COVID-19 by diagram of deaths; the U.S., India and Brazil, are three of our main markets.

At Ebix, we have had to address our portion of agonize as smartly. However the results that we have produced in the indispensable quarter present definite evidence that Ebix is willing to outlive this global financial seizure and thrive once our world returns to traditional financial rhythms. Our topline performance in Q1 with Twelve months-over-Twelve months and sequential revenue growth of 110% and 31% respectively is encouraging. Our Company's diversity of revenues each and every by geography and solutions and companies and products, our buyer stickiness and the recurring and repeating nature of a immense proportion of our revenue infamous is the root that will enable Ebix to endure this disaster and thrive on the other side of COVID-19.

With that, I'll turn to about a working results. Our defective margin in Q1 2021 used to be 24%, down sequentially from 32% in the fourth quarter of 2020 and down Twelve months-over-Twelve months from 58.3% in Q1 2020. Our defective margins continue to be diluted by the sturdy ask we continue to see in our low margin price solutions industry in India, which had one other file quarter of sales increasing 55% sequentially from a file Q4 2020 sales infamous.

GAAP working profits for Q1 2021 of $31.2 million elevated 12% sequentially, whereas declining 9% Twelve months-over-Twelve months from $34.3 million in Q1 2020, essentially due to the the impression of COVID-19. Non-GAAP working profits for Q1 2021 used to be $35.6 million. Our working margin for the Company used to be 10.8% in Q1'21, but other than for the price solutions industry in India, we maintained historically exact working margins of 35% in the indispensable quarter of 2021.

Proper via Q1 2021, we had major money makes employ of of roughly $32 million including $9.7 million dilapidated to pay global taxes, $7.5 million for money passion linked to our company credit facility, $5.6 million dilapidated to pay amortization of principal on our company term loan, $4.6 million to lower our working capital companies and products in India, $2.3 million for dividend payments and a blended $2 million expended on capex and instrument construction prices. We funded these initiatives from existing money, plus working money flows generated for the length of the quarter.

Despite these makes employ of of cash, Ebix ended the quarter with a exact liquidity characteristic, with money, money equivalents, short-term investments and restricted money of $131 million versus $96 million at 03/31/2020. Our steadiness sheet stays wholesome with a up-to-the-minute ratio of two times at March 31st, 2021 and dealing capital of over $180 million.

In closing, we're eager on the long whisk and is really a better Company as a results of the trials faced in the previous Twelve months or so. Our global accounting and finance group operated below severely tight timelines now not too long previously, offered that we filed our 10-K much less than three weeks previously. Their dedication is indicative of the sort of oldsters we have throughout the Ebix global footprint, and these folks will drive our success in a post COVID world.

Many of our teammates in India have shown amazing commitment throughout the final few weeks in light of the horrific impacts of COVID-19 on our workers and their families in India. We are grateful for his or her service to Ebix. And we morn the most fresh lack of 11 Ebix members of the family as a results of this pandemic. Lastly, our Invent 10-Q will likely be filed later this day.

I'd steal to now turn the name over to the President of our North American Insurance Companies, Ash Sawhney for his remarks on first quarter operations.

Ash Sawhney -- President-Insurance Solutions North The United States

Thanks, Steve and Darren. I'll present a summary of the Q1 North The United States results and updates on the outlook for corpulent Twelve months 2021, which used to be now not too long previously discussed for the length of the Q4 2020 release.

Our North The United States revenue used to be down by roughly $4 million sequentially as when when put next with Q4 2020 attributable to a $4 million seasonal passe topple in the persevering with scientific certification industry in the indispensable quarter of yearly, and the sequential topple of roughly $1 million in underwriting substitute revenues. Offset to these form of had been wholesome gains in life and annuity and smartly being exchanges. The closing industry gadgets stayed regular.

The scientific certification industry is cyclical in nature. Q4 tends to be the supreme revenue quarter and Q1 the bottom. Every quarter in the Twelve months then tends to file upward fashion sequentially. We ask to continue the Twelve months-on-Twelve months growth for this division for 2021 with the total original initiatives we offered in the closing quarter.

The topple in underwriting substitute revenues is largely attributed to the slowdown in deliveries on initiatives due to the the worsening of the COVID-19 challenge in India. While we mediate the gradual down is transient, it would also defend us about a quarters to attain assist assist to traditional for this industry unit in light of the truth that we're aloof through the worst COVID-19 disaster in India.

The life and annuity substitute grew 8% sequentially. This used to be the discontinue results of sizable-essentially essentially based entirely amplify in transactional volumes. March transaction volumes in our annuity substitute had been the supreme we have viewed in a total lot of years. We are seeing this fashion persevering with in Q2. We additionally noticed our smartly being substitute grow by 14% sequentially. This used to be largely due to the an amplify in associate revenue for the length of this interval, which will vary from quarter to quarter.

The total major industry line stayed regular for the length of Q1. The possibility compliance industry added ten original customers in Q1. Prominent among these had been: Rooms To Lope, one among the largest self sustaining U.S. furniture stores; Gehan Homes, they are the tenth largest non-public homebuilders in the U.S.; MWH Constructors, a world conducting birth firm and; Teal-Jones, the largest privately owned trees harvesting and indispensable creep product manufacturing firm in British Columbia.

We continue to add more customers to the WinFlex illustration platform including, Protective Life and Ohio Nationwide. We are satisfactory with the early success of our WinFlex analytics platform constructed on the GeniEbix man made intelligence platform. We ask to add many more customers to the platform in 2021. We expanded consulting plan with Simons Team in security merit.

We have additionally began to form a pipeline for cloud-essentially essentially based entirely companies and products with Data Glove. We expanded our presence with Edward Jones, for an categorical term insurance product. We have constructed a exact pipeline for a reside rush substitute. We ask this to grow even stronger with the JPMorgan implementation. On the P&C substitute, we added four original workers' comp EDI carriers, including two Tier 1 carriers.

We additionally added four original customers to the RiskEnvision platform. We noticed a 14% growth when when put next with Q1 of 2020 and sustained phases when when put next with Q4 2020. We continue to develop our digital and virtual strategy for the scientific certification industry. We hosted three virtual events. We ask to begin a total lot of more for the length of the Twelve months, providing us incremental streams of revenue. We additionally secured original contracts with College of Pennsylvania and the Meharry College of Dentistry.

In Q1, we executed major milestones. Notify-important among these are; continued form-out of the JPMorgan platform, for an heading in the suitable direction corpulent birth in Q2. Here is important for JPMorgan and the industry. It will additionally amplify our transactional revenues from the platform, a success mosey reside for security merit for the insist to user implementation and Navy Mutual for the agent driven mumble entry platform. We are persevering with to form out the Navy insist to user solution, which will likely be willing for birth later this Twelve months.

Manulife launched original AI-driven merchandise on the platform, the indispensable of its form in Canada. SunLike [Phonetic] added original merchandise with the worldwide platform on the underwriting substitute. Lastly, an update on major initiatives for 2021 which will make contributions to the growth in the build of living. We continue to be very bullish on our Life and Annuity substitute. We are already seeing file phases of transaction, and we ask these to ramp up even more in the second half of as we birth to see the impression of the JPMorgan service on-boarding. The parallel computer screen of on-boarding JPMorgan on the life platform will have an incremental impression on revenue.

We are starting up to see a rebuild of the pipeline on affords on the endeavor smartly being and underwriting exchanges. We wait for that the second half of will see indispensable enchancment because the impression of COVID-19 in India starts to ease up. We hope to build up assist to pre-COVID phases by diagram of revenue by Q4 of 2021, assuming that the challenge in India will enhance over the subsequent 60 days to 90 days. We are working in the direction of on Ebix endeavor smartly being substitute on the Azure cloud. We mediate this can give us indispensable publicity available in the market to the Azure sales network. We hope to come up the platform in Q2, and this can coincide with the birth of a total lot of marketing and sales campaigns.

We are eager on the Ebix, Data Glove cloud providing. We are confident of announcing our first joint mediate in Q2 of 2021. We hope to assist a total lot of more affords by the discontinue of the Twelve months. These affords, alongside with a total lot of original relationships that we have established on the consulting side will transfer our consulting industry in an upward trajectory.

Because the market stipulations enhance, we arrangement to step up efforts to develop our sales group in a total lot of divisions. Our pipeline is wholesome and rising. Our core Life and Annuity substitute network is the strongest it has been and can develop to file phases before the discontinue of the Twelve months. Our investments in original initiatives will rush up growth. We are seeing early successes with illustration analytics.

We ask regular onboarding of carriers on this platform giving us incremental and recurring revenue streams. Within the subsequent section of our paddle, insist to user initiatives will feature prominently. It is miles the build the market is headed, and we're smartly positioned to capitalize on that. The opportunities will manifest each and every as exchanges and endeavor solutions. With the COVID challenge having improved considerably in North The United States and the hope that India will normalize in the coming months, we reside bullish relating to the corpulent Twelve months performance in 2021.

We are fortunate to have the very handiest group supporting our industry-main merchandise. The commitment of our workers for the length of the pandemic has been a indispensable accept as true with allowing us to discontinue exact for the length of some very important times. Their sacrifices will never be forgotten.

I'll now cross this alongside to Robin for his comments.

Robin Raina -- Chairman of Board, President and Chief Govt Officer

Excellent morning, everybody. I mediate that Darren, Ash and Steve have captured the quarter intimately. Let me summarize by pronouncing that these are unheard of times and I'm ecstatic that Ebix has managed to serve its head excessive for the length of such times and continues to ship top line growth and wholesome working profits numbers.

It is no easy assignment to address the onslaught of components brought in by COVID-19. Customers are delaying their original deal selections. On-characteristic consulting linked to product implementations is admittedly non-existent, staffing availability has been somewhat inviting, and some product traces treasure lag, overseas substitute, e-Studying etc., are working at 10% lower phases attributable to the insist impression of COVID-19.

As I sit right here relaying statistical performance numbers to you by diagram of Ebix performance in the quarter, there would possibly perchance be one thing that no statistical performance can reply for. Within the closing 30 days, we have lost 11 younger workers with no slay in sight to COVID-19 leaving in the assist of their spouses, teenagers and dad and mom in despair for the remainder of their life.

Let me read out an e-mail from one among our Ebix instrument architects that captures their sense of the emotional roller coaster that our staffers are this day going via. This e-mail used to be written the day past by one among our colleagues after the passing away of 1 among our senior instrument consultants, Sudhindra, about a days assist to COVID-19.

To quote determined excerpts from his letter: 12 years previously, after I first acquired offered to Sudhindra, he used to be queer and eager and explorative, and these are traits I never noticed leave him. He would steadily attain assist -- he would steadily attain with a space of questions desirous to leap suggestions, and have a satisfying [Phonetic] flexibility to his mind willing to absorb and adapt. He did elevate views, which showed that he had keenly utilized his mind, but used to be never doctrinaire and ever willing to take a look on the evidence. I will have the ability to never fail to defend in mind the sizable smile he brought every time he got right here around. Can't even take into accout if he ever frowned. Forever jovial, steadily nice looking, collaborative, steadily willing to defend ownership, willing to assist others, willing to boost his perspective, willing to step up, willing to handbook. Don't take into accout somebody ever having one criticism to make about him. He used to be the ideal group man, elevating the energy of the group and driving everybody in the direction of success. I form now not know what went sorrowful. Do now not know why he's now not any more with us. Do now not know why we would also now not build him from the one nervousness he acquired into. It ought to have never came about. Don't ever let him leave your hearts. He used to be one among our handiest and dearest colleagues, and a end buddy to so a total lot of us. He's going to be a ringing void. I aloof feel, I will be taking a perceive around for him. Can't mediate he would possibly perchance maybe maybe also now not be there anymore after I dial his number to test on something. This has been one of these onerous month for us to see so a total lot of our colleagues across divisions and locations, all younger lives in corpulent bloom leave untimely to this terrible melody. Our hearts exit to their families and let's serve a end gape on the total others who will likely be and enact handiest -- and enact what handiest we are able to, so as that we shouldn't wish to lose somebody anymore. We will omit you Sudhindra badly, and thank you for all that you did for us, un-quote.

I read this out as now and again we accumulate lost in numbers and do not accumulate a appropriate perspective on the in the assist of the scene, sweat and blood that goes into the basics of working an operation in such time and aloof delivering. I salute every of my workers internationally. I form now not have words to staunch my heartfelt condolences to the members of the family of the 11 workers we have lost to this pandemic.

As a Company, Ebix will come up for every of these families by diagram of some monetary assist. Furthermore, the Robin Raina Foundation has volunteered to fund the stamp of practising the teens of every of these workers via their graduation reports. We are painfully mindful that nothing we enact can ease the agonize of these workers in any manner.

I'm somewhat blissful with the Q1 2021 Company results, and feel aesthetic relating to the primary drivers that will defend Ebix to the subsequent stage in coming years. Within the short term, we continue to work via the targeted IPO of our EbixCash industry in India, the subsequent three short-term steps in that direction are: One, the appointment of an internationally smartly-known statutory auditor for the IPO; Two, the appointment of an internationally smartly-known investment banker for the IPO because the fifth banker; three, the appointment of a various self sustaining Board for EbixCash comprising smartly-known names from the securities, regulatory and banking industry among others.

We are at evolved stages on all these three components and can make public bulletins on every of these fronts on the correct time. We appropriate had an annual earnings name about a weeks assist, in which I shared my perspective on the times ahead of us. Thus, I'll this day serve my comments comparatively short and reside up for providing you with a broader perspective for the length of the Q2 2021 Investor Call.

With that, I'll end the name and hand it over to the operator to begin it up for questions. Thanks.

Questions and Answers:

Operator

Understood. [Operator Instructions]. Your first seek files from comes from the line of Jeff Van Rhee from Craig-Hallum. Your line is birth.

Jeff Van Rhee -- Craig-Hallum Capital Team -- Analyst

Monumental. Thanks for taking my questions guys. A couple from me. I wager as I perceive at -- Robin, as I perceive on the EbixCash industry, ex the price playing cards, brutal time in India with COVID what's going on on, enact you have any sense of how that industry behaves sequentially, namely, I non-public, ex-payments it used to be working, name it $30 million in Q3, Q4 [Phonetic] perchance bottomed around $17 million in Q2. Obviously, we're starting up to defend our head right here, but going to build up hit again. Does it mosey as low as it did in Q2, all the absolute best diagram down to $17 million or $18 million, or appropriate any sense on what happens there?

Robin Raina -- Chairman of Board, President and Chief Govt Officer

Jeff, did you deliver -- is that this seek files from linked to the price solutions industry or the total industry?

Jeff Van Rhee -- Craig-Hallum Capital Team -- Analyst

It is Ebix...[Speech Overlap]

Robin Raina -- Chairman of Board, President and Chief Govt Officer

I lost you someplace.

Jeff Van Rhee -- Craig-Hallum Capital Team -- Analyst

EbixCash ex-payments, so EbixCash ex the payments.

Robin Raina -- Chairman of Board, President and Chief Govt Officer

K. Acquired it. So, perceive our -- in case you defend the price industry out, EbixCash if truth be told grew nearly 10% sequentially with appreciate to Q4. At the identical time, we're nowhere attain the build we would also aloof be partly because what has came about with the second wave of COVID infections, it be been brutal in India, which potential, it be appropriate beyond anything else that I the truth is have ever viewed. We are at a degree the build making lag is admittedly non-existent appropriate now, overseas substitute, we -- so I form now not ask any enhancements in lag in Q2 now not much less than in Q2.

Nonetheless, I enact ask some enchancment in the overseas substitute build merely because as vaccinations are starting up to happen internationally, the students are going assist to varsity, and what that's prompting is academic remittances. We are a major in that market since we yarn for 30% academic remittances out of India. So we ask a total lot of that industry to elevate up in Q2 and onwards.

So in the intervening time, if companies treasure as nations treasure Dubai shall we deliver vaccinate, we are able to see our overseas substitute industry elevate up and so on, because we're getting willing to more or much less deploy our platform in Dubai, shall we deliver. So I non-public it's miles, we're clearly in the intervening time tormented by COVID. So in case you defend the non-price solutions areas, we ask to enact regular insist industry in the expertise companies, we ask enhancements in the bus substitute expertise build, we ask enhancements in the overseas substitute build, I ask dinky downward fashion in the lag enviornment in the intervening time, and I ask -- immense enhancements to continue in the price solutions enviornment.

So I non-public that is the build we're. Even in the expertise companies, what's starting up to -- what's hurting us a miniature bit by diagram of, we must forever have shown great more growth in the expertise companies, but what's starting up to happen is the extensive majority of our customers are monetary institutions or banks. So if we have already acquired an mumble, a take care of them, and we're in the course of an implementation, then we are able to continue clocking revenue or amplify revenue. Nonetheless, no original -- no bank is signing model original affords till challenge improves, because right here is now not the truth is a pleasant precedence for them to begin laying down a original -- a original agenda for the bank. They achieve now not non-public right here is the correct time to enact it.

So that's clearly impacting us that, any original affords -- all original affords have been build on withhold. I'll give you an example that even in the bus substitute enviornment, wherein we have been negotiating the truth is immense affords that will maybe the truth is transfer the needle by diagram of revenue and profitability. And a total lot of these affords are with the Govt of India, with insist roadways undertakings on the total deploying, shall we deliver a platform, an e-ticketing, a bus firmware platform for, shall we deliver, 38,000 buses in a particular insist, appropriate an example. And this day, what has came about is, with COVID coming in, that's now not anymore a pleasant precedence for the government. It is miles a precedence to the extent that if buses are going to ply, then they're going to want that plan. But appropriate now, buses aren't plying, that's now not a pleasant precedence for them because they don't desire to build folks in buses. So the truth is, those forms of issues, budgets have been build on withhold in these more or much less industry areas.

So perceive, the reply is a miniature bit important since the ground there would possibly perchance be -- in the intervening time, there would possibly perchance be nearly an total curfew in India. Whenever you happen to transfer around India, Singapore is now starting up to more or much less end the country in a potential because they started -- the number of infections have began to amplify. Indonesia and Philippines have never attain out of the onslaught of COVID. So it's miles -- it has impacted the total Southeast Asian nations, the ASEAN nations. We enact industry in 44 nations from India. So, it clearly has impacted our industry.

But I non-public the cultured news is the variety of the industry exhibits that we have saved all these companies outdoors price solutions, are regular insist in case you defend which potential, clearly lag and forex are straight linked -- and e-Studying are straight linked to COVID. And I form now not see an immediate solution even in the e-Studying build because I form now not see how any parent would build a baby into college, even though -- perceive the potential the vaccinations Jeff are going, Govt of India is admittedly claiming that they are able to have the flexibility to enact the indispensable stage of end to 1 billion vaccinations by Twelve months-discontinue.

What it potential is, if they enact 1 billion vaccinations by Twelve months-discontinue, that will with regards to mean 500 million folks vaccinated because they're calling two vaccination, the two doses as one. They're calling that -- 1 billion mean 500 million folks, which potential, you affected 45% of the folk. And so, having acknowledged that, if -- nonetheless if they are able to enact even decent numbers, even once they birth getting to 25% to 30% coverage, I non-public this can have a dramatic impression on our industry and on all companies, merely since the hub, if they are able to also accumulate to the underside of the hub of these epicenter of COVID which is in places treasure Mumbai, places treasure Delhi, then issues will substitute. Delhi this day has appropriate now vaccinated -- this day's files is that Delhi has vaccinated handiest -- is 10%, appropriate. Nonetheless, there are some definite news that have emerged in the outdated few days out of Delhi that the positivity rate is coming down, there would possibly perchance be more availability of beds, which appears treasure definite signs.

But we're removed from a stage the build I'd also inform you that India is starting up to overcome the pandemic.

Jeff Van Rhee -- Craig-Hallum Capital Team -- Analyst

Monumental. And appropriate one closing from me. I non-public as it pertains to the staffing, it sounds treasure somewhat severe staffing components. Proper how great of a possibility is it? You would possibly perchance maybe presumably presumably even have got clearly acquired some nice initiatives in play, JPMorgan and others. And it sounds reminiscent of you'll enact some issues to build up some folks in there appropriate away. Proper talk a miniature bit more relating to the staffing.

Robin Raina -- Chairman of Board, President and Chief Govt Officer

So Jeff, it used to be mainly in a single metropolis, which potential, it be all forms of causes, but it with out a doubt used to be mainly in a single metropolis, Hyderabad. We enact now not have every other components. Which suggests, we have not any major topic in every other avid gamers. There'll likely be components, but we have been able to address them. It is mainly in Hyderabad, but that's a truly immense construction infamous for us and we have been making arrangements to address that.

So we wants so to address it. I enact now not see that as a huge topic. It did have an impression on our revenues in Q1, but confidently we are going to make -- make up for section of it in Q2 or for many section of it in Q2. We have made arrangements for that. So I enact now not. I wouldn't read great into it in the staffing phases, now not much less than in the -- it be mainly Hyderabad. We shouldn't have those components in other construction companies and products internationally or anyplace else in India.

Now we have been able to -- we have been able to address all our web hosting companies and products, construction operations, with regards to all the issues. It is handiest been in Hyderabad, for all forms of somewhat heaps of causes.

Jeff Van Rhee -- Craig-Hallum Capital Team -- Analyst

Acquired it. That is it from me. Thanks.

Robin Raina -- Chairman of Board, President and Chief Govt Officer

Thank you.

Operator

[Operator Instructions]. Your subsequent seek files from comes from the line of Chris Sakai from Singular Compare. Your line is birth.

Christopher Sakai -- Singular Compare -- Analyst

Hi, Robin. Excellent morning.

Robin Raina -- Chairman of Board, President and Chief Govt Officer

Hi, Chris. [Speech Overlap] Excellent morning.

Christopher Sakai -- Singular Compare -- Analyst

I appropriate -- I had a seek files from relating to EbixCash's M&A opportunities, I desired to see in case you intend this would be a aesthetic time in India to form market portion.

Robin Raina -- Chairman of Board, President and Chief Govt Officer

Scrutinize, that's a pleasant seek files from, on the identical time frankly, I'll inform you that we enact now not appropriate now, we're now not planning on doing anything else on M&A side now not much less than on the EbixCash side in India. Now, you presumably also can see us presumably enact something in the U.S., but again we are going to -- if we enact anything else, we are going to non-public via it in a truly most attention-grabbing manner. And so, in India appropriate now, the section of the motive we don't desire -- we don't desire to defend our eyes off the purpose of passion that we have this day.

We have -- we're clearly looking out to head in the direction of our IPO. And we head in the direction of our IPO, if I make a -- shall we deliver we would made a M&A this day, what's going to happen is, we want to file a DHRP, we want to build up our numbers, three Twelve months numbers audited and we are able to have two auditors doing the twin audit, and whereas they enact the twin audit, we're going to file working with analysts, working with attorneys, we're going to file the crimson herring file as we name it in the U.S., the DHRP file with the Securities and Alternate Commission of India.

Now in case you enact that, if you are making any acquisition, it complicates issues lots, because it changes all the issues and it's miles now not the truth is helpful usually from an investment bankers perspective to enact anything else in for the length of the time in case you presumably can be making an acquisition or in case you're making -- submitting an IPO, this can complicate issues, there is a total lot of somewhat heaps of -- this can lengthen the route of, elongate the route of considerably.

So I wouldn't appropriate now whereas I believe you that there is -- right here is an opportune time, and it be if truth be told a truly aesthetic seek files from Chris because I'll inform you what's going on this day. Whenever you happen to perceive on the areas which can maybe presumably be getting badly hit which is lag and overseas substitute, the market is getting wiped off, smaller avid gamers are death. They're -- they're evaporating, because they're unable to come up to the onslaught, they're unable to withhold their staffing phases, and it be going down in each and every lag and overseas substitute.

So what's starting up to happen is, these form of avid gamers are available either what we're making an attempt to enact, we're making an attempt to appropriate elevate up this industry, easy industry. What I mean by that's, would it now not somewhat than making an acquisition, we non-public right here is an birth different for organic growth -- organic growth for us.

So we're making an attempt keeping our eyes centered and making an attempt to transfer after every of these opportunities, wherein a particular firm is starting up to fold, a total lot of corporations have approached us in the present time making an attempt to clearly looking out to attain assist below the Ebix umbrella, partly, seriously in the lag and overseas substitute sector, merely because they're unable to fund the working capital, fund the employee price appropriate now.

So having acknowledged that, it's miles on the total an cheap different, but we additionally feel that what's going to happen as we attain out of the COVID that corporations who had been winning, who've a winning industry are the supreme ones who will likely have the ability to serve their head excessive, or you desire to be very adequately funded by amazing institutions, because then that's additionally changing into important. For these form of avid gamers who're making losses, it's miles now not easy to lineup a bank who will desire to enhance a lag participant or a overseas substitute participant in times treasure this.

So it's miles an opportune time additionally. But on the identical time, unfortunately, we non-public that the supreme potential to address right here is merely now not making an acquisition from an EbixCash perspective, but merely making an attempt to organically elevate this industry up by speaking to every of these founders, every of these avid gamers and seeing perchance there would possibly perchance be an more uncomplicated potential to enact this with out even making an attempt to search out the industry.

Christopher Sakai -- Singular Compare -- Analyst

K, nice. So then I wager after the IPO, would there be more opportunities -- different for mergers?

Robin Raina -- Chairman of Board, President and Chief Govt Officer

They'll completely be. Which suggests, once you have an IPO and confidently we're -- if -- yeah, confidently we're able to generate somewhat exact sum of cash, and one among the makes employ of of cash would be to continue to fund our growth each and every organically and inorganically. So, fully.

Christopher Sakai -- Singular Compare -- Analyst

K, nice. Thanks, Robin.

Robin Raina -- Chairman of Board, President and Chief Govt Officer

Thank you, Chris.

Operator

[Operator Instructions]. There are no more questions at present presenters, please continue.

Steven M. Hamil -- Govt Vice President and Global Chief Financial Officer

Thanks, Jeff. I non-public that brings us to the discontinue of the name. Thanks everybody for participating in the name. We reside up for speaking to every of you for the length of the second quarter 2021 Investor Call. With that, I'll end the name. Thank you.

Operator

[Operator Closing Remarks].

Length: 41 minutes

Call contributors:

Darren Joseph -- Company Vice President Finance and Human Sources

Steven M. Hamil -- Govt Vice President and Global Chief Financial Officer

Ash Sawhney -- President-Insurance Solutions North The United States

Robin Raina -- Chairman of Board, President and Chief Govt Officer

Jeff Van Rhee -- Craig-Hallum Capital Team -- Analyst

Christopher Sakai -- Singular Compare -- Analyst

Extra EBIX prognosis

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