TELUS International reports third quarter 2023 results, demonstrating steady revenue growth, improved profitability versus prior quarter, and reaffirms full-year outlook for 2023

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- and nine-month periods ended September 30, 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 third quarter of 2023, TELUS International delivered steady year-over-year revenue growth and meaningfully improved profitability from the prior quarter. Our progress on global restructuring programs to better reflect the persistent challenging operating environment has enabled our company to drive meaningful and sustainable cost efficiencies. In parallel, our AI Data Solutions team expanded service volumes with multiple clients, including Google, and further enabled TELUS Corporation’s customer experience digitization strategy,” said Jeff Puritt, President and CEO of TELUS International. “Despite macro conditions that continue to lengthen our sales cycles, our global team remains relentless in their efforts to establish relationships with new clients. During the third quarter of 2023, we onboarded several new clients, including two US-based firms — an online food ordering and delivery platform and a property and casualty insurance provider, as well as a luxury fashion retailer based in Europe. Just as important, our account teams remained focused on anticipating and meeting the evolving needs of our more than 650 existing clients around the world, growing relationships with many of our large enterprise accounts, including a leading Canadian bank, the world's largest technology company by revenue, and a leading ride-sharing, food delivery, and freight transport app.”

Jeff added, “TELUS International's competitive positioning in the market is a key priority for our organization, and we were recognized by several global research and advisory firms for our strong capabilities and market offerings. Everest Group named TELUS International a ‘Leader’ in the Americas for a fifth consecutive year in its PEAK Matrix for Customer Experience Management and we were included on the firm’s inaugural global PEAK Matrix assessment due to our company’s delivery site expansion that now encompasses five continents. Our company was also ranked a ‘Leader’ in NelsonHall’s NEAT Assessment for Content Transformation Services, specifically within subcategories for cost optimization and revenue generation, and we maintained our strong positioning on Constellation Research’s ShortList for CX Operations Services, Global. In recognition of our team’s efforts to bring our caring culture to life, Fast Company selected TELUS International as a finalist in its 2023 Best Workplaces for Innovators international category, and we were the recipient of three 2023 Gold Stevie Awards for Great Employers, for our leadership development program, our technical training program and our use of digital co-workers, and our efficient skills training solution.”

Vanessa Kanu, CFO said, “TELUS International’s ongoing cost efficiency efforts and our actions to resolve the supply- demand imbalance across our operations, most notably in Europe, are evident in the sequential margin improvement delivered in the third quarter of 2023. We also generated strong cash flow in the third quarter, driving further reduction in our debt outstanding, resulting in an improvement in our Net Debt to Adjusted EBITDA Leverage Ratio as per our credit agreement, which stood at 2.9x as of September 30, 2023 and remains within our steady-state range. We are reaffirming our outlook for the full-year 2023, as we believe it continues to reasonably reflect the uncertainty we still see in the broader environment and tight demand dynamics from certain clients.”

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