TELUS International reports third quarter 2021 results, with increased profitability on strong business performance, and reaffirms full-year outlook
Revenue of $556 million, up 30% year-over-year, with solid organic growth and contributions from acquisitions
Continued expansion in profitability, with Adjusted EBITDA of $137 million, up 23% year-over-year, driven by top-line growth, ongoing business and client mix shift, and efficiency gains; Net Income of $23 million and diluted EPS of $0.09
Adjusted diluted EPS of $0.26 was 13% higher year-over-year
Further improvement in leverage ratio with continued strong liquidity
Management reaffirms outlook for robust double-digit growth in 2021 driven by strong, sustained performance
Successful completion of secondary offering of subordinate voting shares, with high demand driving an oversubscribed and upsized transaction
Vancouver, Canada – November 5, 2021 – TELUS International (NYSE and TSX: TIXT), a 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 third quarter ended September 30, 2021. TELUS International is a subsidiary of TELUS Corporation (TSX: T, NYSE: TU). All figures in this news release, and elsewhere in the TELUS International disclosures, are in U.S. dollars, unless specified otherwise, and relate only to TELUS International results and measures.
“In the third quarter of 2021, our TELUS International team continued to win business with both new and existing clients, driving solid organic growth and demonstrating ongoing momentum from our AI-focused acquisitions completed over the past twelve months. Notably, our team’s consistent and determined execution of our long-term strategy builds upon our strong performance in the comparable prior year period, and also reflects impressive sequential growth from our second quarter results. Our deliberate approach of focusing on designing, building and delivering higher value digital services, as well as leveraging our significant expertise in content moderation and AI services on behalf of our marquee technology and games clients, has helped fuel our profitable growth,” said Jeff Puritt, President and CEO of TELUS International. “In the third quarter, our global sales team continued building on the momentum we generated in the first half of the year, winning new clients and expanding the scope of our engagements with existing clients with multi-year and multi-million dollar contracts. We welcomed Barclays, a leading global financial institution, as one of the first clients in our new North Charleston, South Carolina location, which we opened in August, and have since broadened our relationship with new program expansion for this client in the third quarter. The team also added to our extensive list of games clients with one of the most rapidly growing games companies in the world. We secured new business with one of the world’s fastest growing start-ups focused on event technology, a large North American financial institution, and an innovative consumer electronics company.”
Jeff continued, “Importantly, to provide the top global brands we support with the right balance of tech, as well as authentic and empathetic human interaction, we hired over 2,300 net new team members during the quarter, despite continuing to operate in a challenging labour market. Our unique caring culture is the bedrock of our success, enabling TELUS International to attract, engage and retain top global talent. Without a doubt, our team is the driving force behind our ability to anticipate and meet our clients’ need for more complex end-to-end digital transformation services and the accelerated adoption of next-gen digital customer experience solutions across all sectors of the global economy. As a testament to our team’s efforts, TELUS International was named one of Fast Company’s Best Workplaces for Innovators International for 2021. This prestigious ranking recognizes top companies globally that are successfully fostering cultures of innovation and empowering employees at all levels to improve processes, create new products, and invent new ways of doing business.”
Vanessa Kanu, CFO said, “With 30% year-over-year revenue growth in the third quarter, TELUS International delivered solid gains in our organic business along with contributions from prior acquisitions. We were also able to generate strong revenue growth while achieving leading Adjusted EBITDA margins. We had meaningful growth in profitability in the third quarter, growing our Adjusted EBITDA by 23% year-over-year, with ongoing business and client mix shift, helped by efficiency gains in our own operations. Our Adjusted diluted EPS was $0.26 in the third quarter, up 13% year-over-year. TELUS International continues to have a good level of liquidity, low borrowing costs, with an improving leverage ratio, which allows us to consider high-impact, thoughtful growth opportunities within our comprehensive acquisition pipeline.”
“Our business is successfully keeping up with client demand and our momentum remains positive for us to reaffirm our outlook for the full year, with strong double-digit growth in 2021,” continued Vanessa. “As a new public company, we continue to raise our profile in the financial markets. Our recent successful secondary offering of subordinate voting shares, primarily from Baring Private Equity Asia, was the first such transaction since our initial public offering, generating significant institutional investor interest and resulting in an offering that was oversubscribed and upsized. We are very happy to welcome some new long-term investors in TELUS International.”
Complete version of the Earnings Release is available at the link below.