TELUS International reports first quarter 2021 results, continued strong revenue growth and operating performance; provides full year outlook
Revenue of $505 million, up 57% year-over-year, driven by robust, double-digit organic growth, as well as strong contributions from recent acquisitions
Acquisitions, digital, client mix, and efficiencies drove Adjusted EBITDA of $129 million, up 90% year-over-year; Net Income of $3 million and diluted EPS of $0.01
Adjusted diluted EPS of $0.23 was 229% higher year-over-year
Debt repayment with IPO proceeds, combined with additional repayments from cash provided by operating activities, enabled significant de-leveraging
Outlook for double-digit revenue and Adjusted EBITDA growth reflective of confidence in the continuation of strong operating momentum
Vancouver, Canada – May 7, 2021 – TELUS International (NYSE and TSX: TIXT), a digital customer experience innovator that designs, builds, and delivers next-generation solutions for global and disruptive brands, today released its results for the first quarter ended March 31, 2021. TELUS International is a subsidiary of TELUS Corporation (TSX: T, NYSE: TU). All figures in this news release, and elsewhere in the TELUS International disclosures, are in U.S. dollars, unless specified otherwise, and relate only to TELUS International results and measures.
“In the first quarter of 2021, TELUS International continued to demonstrate remarkable resilience in our performance, underpinned by the diversity of our digital capabilities in growing through a challenging business environment. We expanded relationships with our existing clients, won new clients, and created incremental opportunities from exciting adjacencies such as progressing the integration of our newly acquired data annotation capabilities,” said Jeff Puritt, president and CEO of TELUS International. “We are uniquely positioned to harness our end-to-end digital capabilities and long-standing differentiated caring culture to drive further benefits from the digital transformation tailwinds that have accelerated in the market, resulting in increasing demand from existing and new clients alike.”
Jeff emphasized that, “Our consistent focus on partnering with substantial, sustainable business customers rather than seeking short-term pandemic-driven opportunities, positions us well for a meaningful growth trajectory over the near, medium and longer term. This quarter, we enjoyed notable new client wins for digital solutions and content moderation services, and growth across all key verticals, particularly in Tech & Games. Our diverse capabilities are already now further strengthened with the acquisition of Lionbridge AI. This integration is progressing well and we are confident in our ability to realize the full potential of this next-gen offering, amplified by our adjacent digital capabilities that create a unique competitive advantage relative to other data annotation providers.”
“The TELUS International brand also continues to garner increased visibility in the industry with recent recognition by leading industry analyst firms, Gartner, Everest Group and NelsonHall with respect to our digital CX services and delivery, content moderation and trust and safety competencies. We were also named a Leader on IAOP’s Global 100 List for the fifth consecutive year, highlighting our ability to innovate and our commitment to Corporate Social Responsibility programs,” continued Jeff. “This third-party recognition reflects the tremendous dedication and engagement of our team members across the globe, despite the challenges of the ongoing pandemic.”
Vanessa Kanu, CFO said, “In the first quarter of 2021, we delivered 57% revenue growth, driven by acquisition uplift, and 20% organic revenue growth, underpinned by our diverse digital service offerings and capabilities. Adjusted diluted EPS, which excludes the impact of certain charges, was $0.23, up 229% from the first quarter of last year, reflecting our continued momentum with existing and new clients, our scale efficiencies, and contributions from accretive acquisitions.”
“We have also made excellent progress in strengthening our balance sheet and have again demonstrated our ability to de-lever quickly following strategic acquisitions. Using the cash proceeds from our IPO of $493 million, combined with additional repayments from cash provided by operating activities, TELUS International was able to repay $530 million of debt in the first quarter, and as expected, we now sit comfortably within our target leverage range, providing significant available liquidity for potential future acquisitions to complement our double digit organic revenue growth,” continued Vanessa. “Looking ahead, our management team expects TI will continue to deliver strong performance in 2021, as signaled by the full year outlook we have provided today. We believe our strong profitability profile creates additional headroom to invest even more in our business to further accelerate our revenue growth trajectory.”
Complete version of the Earnings Release is available at the link below.