Press Release

TELUS International reports second quarter 2022 results, with continued strong double-digit revenue and profitability growth, and reiterates 2022 outlook

Revenue of $624 million, up 17% year-over-year and 21% on a constant currency basis

Net income of $56 million, compared with $16 million in the same quarter last year

Diluted EPS of $0.21, compared with $0.06 in the same quarter last year

Adjusted EBITDA of $150 million, 15% higher year-over-year

Adjusted Diluted EPS of $0.30, 25% 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 – August 5, 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 June 30, 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.

“Our global TELUS International team members generated continued momentum, executing at a high level throughout the second quarter of 2022,” said Jeff Puritt, President and CEO of TELUS International. “Their dedication and expertise are helping us successfully navigate through macroeconomic headwinds, including foreign exchange pressures, wage inflation, rising interest rates, and competition for talent — to once again deliver strong double-digit revenue growth, leading margins and solid cash flow. Additionally, our company’s unique end-to-end capabilities, that include new economy services such as AI data solutions and content moderation, continue to differentiate us in the market. Moreover, based on the trends we are seeing in client demand, we expect our digital capabilities to be meaningful drivers of continued profitable growth. This was evidenced by our key Q2 new client wins, including a leading digital marketplace for sports, entertainment, and event tickets; a fintech platform that enables global money transfers and offers advanced digital wallet solutions; and one of North America's largest public broadcasters looking to expand its content to digital channels. Our sales wins with existing clients in Q2 were focused on expanding our scope of services to include data annotation and complex digital solutions. For example, we are expanding our relationship with the world's largest e-commerce company, a global leader in digital media and digital marketing solutions, a global staffing and recruiting company, and one of Western Canada's largest bulk transportation carriers.”

Jeff continued, “This quarter, TELUS International was again recognized with numerous industry awards, highlighting our digital capabilities, leadership in CX and commitment to diversity. For the second consecutive year, TELUS International won an AI Breakthrough Award for our proprietary intelligent assistant platform, which was named Best Informational Bot in the 2022 Virtual Agents & Bots category based on a variety of considerations, including innovation, design and UX, as well as overall technological advancement. The Business Intelligence Group recognized TI as a 2022 Excellence in Customer Service Award winner in the Organization of the Year category for helping companies better communicate with their customers and provide a differentiated level of customer service. Leading industry analyst firm, Everest Group, named our company a Star Performer on its 2022 Trust and Safety, Content Moderation PEAK Matrix, highlighting our market adoption and market share growth, and ability to scale, along with our enhanced language capabilities and provision of localized services.”

Jeff added, “Our caring culture and the way our team members bring it to life each and every day continues to position us among the world’s best employers, and this past quarter was no exception. In Q2, TELUS International was recognized on Forbes' list of Best Employers for Diversity in 2022 and named one of Mogul’s Top 100 Companies for Diverse Representation in 2022, recognizing our leadership in implementing practices, investing in resources and tools to hire and promote diverse talent across all levels of our organization.”

Vanessa Kanu, CFO said, “In the second quarter of 2022, TELUS International achieved organic revenue growth of 17% year-over-year, and 21% on a constant currency basis when factoring in unfavourable foreign exchange impacts, while we continued to generate leading margins and meaningful cash flow. Our Tech and Games clients remain top contributors to our revenue increase in absolute dollars while we continued to see strong growth momentum across all of our key verticals. We also further improved our leverage ratio during the quarter, creating even more capacity for thoughtful acquisitions and readily available liquidity for potential opportunities to magnify our profitable growth.”

Vanessa concluded, “Despite further depreciation of the euro against the U.S. dollar exchange rate, we are reiterating our outlook for 2022, calling for sustained, strong double-digit revenue and profitability growth at scale. Our results to date and throughout our 17-year history operating through many business cycles, reinforces our confidence to thrive despite a challenging macro backdrop. Due to our focus on quality and value-for-money, TELUS International stands to continue benefiting from potential vendor consolidation activity among our over 600 global clients. We help our clients continue to maximize the quality of their customer experience and engagement, while achieving greater cost effectiveness, by relying on our deep expertise, best-in-class digital capabilities and global scale.”

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