TELUS International reports first quarter 2022 results, with double-digit growth in revenue and profitability, and triple-digit cash flow growth; reiterates strong 2022 outlook
Revenue of $599 million, up 19% year-over-year
Net income of $34 million, compared with $3 million in the same quarter last year
Diluted EPS of $0.13, compared with $0.01 in the same quarter last year
Adjusted EBITDA of $142 million, 10% higher year-over-year
Adjusted Diluted EPS of $0.26, 13% higher year-over-year
Further improved leverage and liquidity position, providing meaningful capacity to amplify growth
Full-year 2022 outlook for continued double-digit profitable growth at scale
Vancouver, Canada – May 6, 2022 – TELUS International (NYSE and TSX: TIXT), a leading digital customer experience innovator that designs, builds, and delivers next-generation solutions, including AI and content moderation, for global and disruptive brands, today released its results for the quarter ended March 31, 2022. TELUS Corporation (TSX: T, NYSE: TU) is the controlling shareholder of TELUS International. All figures in this news release, and elsewhere in TELUS International disclosures, are in U.S. dollars, unless specified otherwise, and relate only to TELUS International results and measures.
“TELUS International started the year on a strong note, delivering solid double-digit revenue and profitability growth and triple-digit cash flow growth year-over-year, thanks to the efforts of our highly-engaged team members around the world,” said Jeff Puritt, President and CEO of TELUS International. “Notably, our first quarter results were achieved through continued strong organic business growth, notwithstanding the meaningfully larger scale of our company today. To that end, we realized exceptional traction with clients in our eCommerce and Fintech vertical, which had the second fastest pace of growth year-over-year, while our flagship Tech and Games vertical remained the highest contributor in the quarter in absolute dollars. The company’s meaningful growth was also fuelled, in part, by our TELUS International AI Data Solutions team. Their substantial efforts in the quarter built upon the success realized in 2021, stemming from our focused integration efforts and joint go-to-market and cross-selling strategy that we continue to capitalize on with both new and existing clients. Indeed, our sales team signed many new and exciting logos in the first quarter, including a major tech-enabled disruptor in the real-estate space, a fast-growing fintech company, and a leading travel portal in Germany. At the same time, our team’s equally impressive scaling and expansion of existing high-value client relationships cultivated incremental business with our largest client, a leading social media company, and our third largest client, Google, in addition to the world’s largest eCommerce company, a leading North American financial institution, and a global consumer electronics company, among many others.”
Jeff added, “Our team’s passion for what we do and their collective efforts continue to be recognized in the industry. In the first quarter, TELUS International was named a Leader in the NelsonHall 2022 NEAT Assessment for CX Operations Transformation, earning the same Leader ranking across the evaluation’s subcategories of revenue generation, CX improvement and cost optimization. Our company was also included on the IAOP Global Outsourcing 100 list for the sixth consecutive year, reflecting our sustained status as one of the best outsourcing providers in the world across size and growth, customer references, awards and certifications, innovation and corporate social responsibility. We were also named one of Mogul’s Top 100 Companies for Diverse Representation in 2022, an award that recognizes companies leading the way with respect to investing in resources and tools, and implementing practices that support hiring diverse talent and placing diverse leaders throughout their organizations. As the world cautiously begins to recover from quarantine restrictions after more than 24 months of challenge and uncertainty due to the pandemic, I am so excited for the opportunities that lie ahead for our team members and our company, and I have no doubt that we will continue to rise up to meet the needs and expectations of our clients and the communities where we operate.”
Vanessa Kanu, CFO said, “In the first quarter of 2022, TELUS International generated revenue of $599 million, representing organic growth of 19% year-over-year, and 21% on a constant currency basis when factoring in an unfavourable foreign exchange impact of over 2% compared with the same quarter of the prior year. At the same time, we continued to grow profitability, with service mix, pricing and productivity gains helping to offset the impact of current labour market dynamics and continued purposeful investments in our business. The company delivered strong cash flow growth, with cash provided by operating activities up 244% from a year ago, and free cash flow up 450% over the same period.”
Vanessa added, “While the labour market remains tight and competition for talent fierce, we have again demonstrated our ability to support growth with impressive hiring this quarter, increasing our global team member count by approximately 5,800 full time team members, another record increase in a single quarter. In this regard, we continue to incorporate innovative and immersive solutions as part of our global digital recruitment and team member engagement strategy. This includes the imminent launch of our new metaverse experience later this month, where applicants will attend virtual job fairs and visit information kiosks, and our recruiters can assess candidates’ skill competencies, personality traits and language proficiency in engaging and gamified settings. The cloud-based solution also features virtual spaces where our team members are able to refer candidates as part of our employee referral program.”
Vanessa concluded, “Given our robust start to 2022, we are confident in reiterating our outlook for the remainder of the year, despite the current currency headwinds that were not anticipated at the beginning of the year, reflecting the strong underlying growth in our core business. Moreover, we continue to maintain ample liquidity for thoughtful acquisitions to amplify and accelerate the realization of our strategy and growth trajectory.”
Complete version of the Earnings Release is available at the link below.