TELUS International reports first quarter 2023 results, delivering solid performance in revenue and profitability; reiterates full-year outlook

Revenue of $686 million, up 15% year-over-year and 16% on a constant currency basis

Net income of $14 million, compared with $34 million in the same quarter last year

Diluted EPS of $0.05, compared with $0.13 in the same quarter last year

Adjusted EBITDA of $155 million, 9% higher year-over-year

Adjusted Diluted EPS of $0.28, 8% higher year-over-year

Continued deleveraging, with integration of WillowTree progressing well

Full-year 2023 outlook reiterated for continued double-digit profitable growth

Vancouver, Canada – May 4, 2023 – TELUS International (NYSE and TSX: TIXT), a leading digital customer experience innovator that designs, builds, and delivers next-generation solutions, including artificial intelligence (AI) and content moderation, for global and disruptive brands, released its results today for the quarter ended March 31, 2023. 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.

“In the first quarter of 2023, our global team delivered solid performance for TELUS International against the persistent backdrop of numerous macroeconomic challenges, geopolitical uncertainties and historic demand softness. Despite these challenges, our team executed very well in the quarter, with our near-term focus on operating the business with the utmost efficiency, while remaining agile to meet our clients’ increased demand through the balance of the year,” said Jeff Puritt, President and CEO of TELUS International. “Highlights this quarter include progress on WillowTree’s back office process integration, along with new business ramps as we continue to engage with clients on cross-sell opportunities. TELUS International’s sales funnel remains robust, and our global sales and marketing teams continue to diligently replenish our funnel of opportunities. Our new client wins this quarter include a U.S. insurance provider focused on solutions for homeowners and renters; a rapidly growing eCommerce platform based in the United States; an exciting, new sports streaming platform in Germany; a pioneer in the solar power industry with global-leading sales based in the United States; and a leading software platform for digital media measurement and analytics based in the United States.”

Jeff added, “Similarly, we continue to gain incremental and varied business with our existing clients, including the world’s largest eCommerce company; an online game platform and game creation system; a cloud-based web development services provider; a leading global logistics company; and a U.S.-based telecommunications company. Also, in support of existing client demand, TELUS International is further diversifying our delivery footprint to Africa, a continent that’s home to a high-quality talent pool. We are starting small, with a thoughtful approach to unlock new opportunities for future profitable growth over the long term.”

Jeff concluded, “To start the year, TELUS International was recognized for multiple industry awards, a testament to our caring culture and our status as a trusted partner for clients and employer of choice for top global talent. For the fifth consecutive year, our company was named one of the Achievers 50 Most Engaged Workplaces®, an award that recognizes top employers who display leadership and innovation in employee engagement. For the seventh consecutive year, TELUS International was recognized by IAOP’s Global Outsourcing 100, a ranking of the best outsourcing providers across categories of size and growth, customer references, awards and certifications, programs for innovation and corporate social responsibility.”

Vanessa Kanu, CFO said, “TELUS International remains focused on delivering profitable growth, with solid revenue growth of 15% year-over-year, 16% in constant currency, in the first quarter of 2023. When excluding WillowTree, we achieved revenue growth of 5% year-over-year, and 7% in constant currency, which is noteworthy in light of the current challenging macroeconomic environment. Alongside the progress on the integration of WillowTree, debt repayment remains among our key priorities. To this end, after closing of the WillowTree acquisition, we improved our Net Debt to Adjusted EBITDA Leverage Ratio as per our credit agreement to 2.8x in the first quarter, despite WillowTree transaction related outflows that created a one-time impact on cash flows this quarter.”

Vanessa concluded, “Today, we are reiterating our outlook for the full-year 2023. While we expect some headwinds in the near term, we do see some offsetting opportunities and are focusing our collective efforts on what we can control to be as efficient with costs as possible.”

Complete version of the Earnings Release is available at the link below.