TELUS International reports first quarter 2024 results, delivering robust profitability and cash flow; reiterates full-year outlook

Vancouver, Canada – 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, today released its results for the three-month period ended March 31, 2024. 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 delivered first quarter results in line with our expectations, amidst a backdrop of lingering macroeconomic pressures,” said Jeff Puritt, President and CEO of TELUS International. “At all levels and across all areas of our organization, we continue to focus on further establishing ourselves as the AI-fueled customer experience partner of choice by our clients, prospects and partners, as well as throughout the industry based on our differentiated end-to-end service offerings and expertise. With this objective in mind, we are starting to see the success of our efforts manifest through the client mandates we are winning, the continued evolution of our capabilities, the partnerships we are forming and the industry recognition we are receiving.”

Jeff continued, “We’re encouraged by the progression of our Fuel iX generative AI client engagements led by our WillowTree team. The momentum we are starting to establish is supported by the beta launch of Fuel iX Core and Fuel iX Apps, two new solution layers we introduced to the market in April as part of the product roadmap for our enterprise-grade AI engine. In the first quarter, our WillowTree sales team won deals with two well-established American financial services companies, including Inspira Financial, on the strength of our Fuel iX offering. The team also secured mandates with a multinational consumer credit reporting agency, an American biotechnology company, a movie theater chain that operates the second-largest theater circuit in the United States, and a global fashion house Coach, among other new clients. Our global TELUS International sales team won deals with several new clients in the quarter as well, including a multinational hospitality company and a Canada-based global e-commerce powerhouse, among others. We also expanded our scope of work with many of our long-tenured clients, including one of the largest global logistics providers, a leading ride-hailing services company and an American telecommunications and media conglomerate. Our momentum remains strong in AI Data Solutions, driven by the strength of our relationship with Google in particular, while we’re also working diligently on pilots and opportunities with many major foundational AI model developers. We also continue to be a beneficiary of steady growth with TELUS Corporation, our parent company and anchor client, including further ramp up within its TELUS Health business that we expect to continue throughout 2024.”

Jeff added: “Our global team also started the year with some well-deserved industry rankings, recognition and awards. This included a Leader ranking in Everest Group’s PEAK Matrix Assessment 2024 for Data Annotation and Labeling Solutions for AI and Machine Learning, and being named on The Global Outsourcing 100 list for the eighth consecutive year, placing us amongst the best providers for size and growth, customer references, awards and certifications, programs for innovation and corporate social responsibility. Also for the eighth year in a row, our company was recognized by the Business Intelligence Group, receiving a 2024 Excellence in Customer Service Award, for our team’s commitment and contribution to transforming customer experiences in today's digital economy.”

Gopi Chande, CFO said, “In the first quarter of 2024, TELUS International maintained a robust level of profitability and continued to generate strong cash flows, despite persistent macroeconomic pressures. In addition to meaningful global cost efficiency programs executed over the past nine months that provided solid foundation for our business at the start the year, we are on a continued path to recovery, with our results in the first quarter reflecting our global team’s focus on harvesting efficiency gains, while managing our expenses and capital expenditures carefully to drive strong cash flow.”

Gopi concluded: “Our outlook for 2024 is unchanged and remains prudent based on our view of client demand and our assumptions around the macroeconomic conditions in the near-term—we still expect to see demand starting to recover in the latter part of 2024. Our entire organization remains committed to delivering profitable growth, fueling investments in sales and marketing, along with ongoing technology innovation. Our balance sheet remains healthy and our leverage position is within our steady-state range, with strong cash flow generation to enable further debt repayment throughout the remainder of 2024.”

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