TELUS International reports fourth quarter and full-year 2020 results, strong revenue, profitability, and cash flow growth
55 percent revenue growth to $1.6 billion in 2020 demonstrates operational momentum and efficacy of strategic acquisitions
Digital strategy and scale efficiencies drive 73 percent Adjusted EBITDA Growth to $391 million and Net Income growth of 49 percent to $103 million
Robust Free Cash Flow of $189 million in 2020, more than double over the prior year, including cash from operating activities of $263 million
Adjusted diluted EPS growth of 65 percent to $0.71 and GAAP diluted EPS growth of 28 percent to $0.46 for the full year 2020
Expansion of Google Cloud strategic partnership to drive enterprise digital transformation
Successful recent IPO represented largest technology offering in TSX history
Vancouver, Canada - 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 fourth quarter and full-year ended December 31, 2020. TELUS International is a subsidiary of TELUS Corporation (TSX: T, NYSE: TU). All figures in this news release, and elsewhere in the TELUS International disclosure, are in U.S. dollars, unless specified otherwise, and relate only to the TELUS International results and measures.
“In a year marked by an unprecedented and challenging global environment, our highly-engaged TELUS International team rapidly virtualized our operations to continue meaningfully growing our business in 2020 and achieve outstanding results,” said Jeff Puritt, president and CEO of TELUS International. “This included the acquisitions of CCC early in the year, and Lionbridge AI in the fourth quarter, which further bolstered our digital trust and safety practice and advanced the execution of our digital strategy in the data annotation space. These natural adjacencies to our existing capabilities and services are helping us deepen the high-value relationships we enjoy with some of the world’s largest and fastest growing technology companies. We also added many new technology brands in 2020 to our growing list of over 600 clients, and today we announced an exciting expansion to our long-term, strategic Google Cloud partnership that will support an incremental acceleration to our clients’ ongoing digital transformations.”
“TELUS International’s initial public offering (IPO) earlier this month, dual-listing on both the New York and Toronto Stock Exchanges, was a momentous milestone for our company, and I am grateful to our team members and many stakeholders around the world who contributed to our journey from a single delivery location in the Philippines to a globally scaled, digital customer experience leader, operating in over 20 countries,” continued Jeff. “Additionally, I continue to be inspired by our global team’s heartfelt dedication to giving back. Last year, despite physical distancing restrictions that meant we could not organize our large-scale, in-person TELUS International Days of Giving events, they found new ways to make a difference in their local communities. Team members packed and distributed food baskets and knit scarves and blankets for families in need; delivered care packages to frontline healthcare workers; donated and delivered computers to students to permit them to attend school virtually; and created online storybooks to help entertain young children. Altogether in 2020, they volunteered over 15,000 hours – an increase of more than 1,000 hours over 2019, demonstrating the true essence and resiliency of our caring culture.”
Vanessa Kanu, chief financial officer said, “TELUS International’s financial results in 2020 were highlighted by strong revenue growth and robust cash flow driven by healthy margins. Revenue grew 55 percent to $1.6 billion in 2020, which does not include contributions from our Lionbridge AI acquisition, which closed on December 31. We also delivered strong adjusted EBITDA growth of 73 percent to $391 million and Net Income growth of 49 percent to $103 million, particularly impactful given the backdrop of the global pandemic. This combination of strong top-line growth and profitability drove significant free cash flow of $189 million which was more than double what we achieved in 2019.”
“TELUS International’s successful IPO provided significant cash proceeds of nearly half a billion dollars that were used to repay a large portion of the debt incurred under our credit agreement in connection with the recent Lionbridge AI acquisition. With our track record of meaningful cash flow generation, we will continue to focus on reducing leverage in the near-term. We are indeed very proud of our financial results, along with the momentum we have been able to build throughout 2020, and are excited about our future growth opportunities in 2021 and beyond.” Vanessa concluded.
Complete version of this news release is available at the link below.