TMCnet News
TELUS International Reports First Quarter 2021 Results, Continued Strong Revenue Growth and Operating Performance; Provides Full Year OutlookTELUS 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 first quarter ended March 31, 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 first quarter of 2021, TELUS International continued to demonstrate remarkable resilience in our performance, underpinned by the diversity of our digital capabilities in growing through a challenging business environment. We expanded relationships with our existing clients, won new clients, and created incremental opportunities from exciting adjacencies such as progressing the integration of our newly acquired data annotation capabilities," said Jeff Puritt, president and CEO of TELUS International. "We are uniquely positioned to harness our end-to-end digital capabilities and long-standing differentiated caring culture to drive further benefits from the digital transformation tailwinds that have accelerated in the market, resulting in increasing demand from existing and new clients alike." Jeff emphasized that, "Our consistent focus on partnering with substantial, sustainable business customers rather than seeking short-term pandemic-driven opportunities, positions us well for a meaningful growth trajectory over the near, medium and longer term. This quarter, we enjoyed notable new client wins for digital solutions and content moderation services, and growth across all key verticals, particularly in Tech & Games. Our diverse capabilities are already now further strengthened with the acquisition of Lionbridge AI. This integration is progressing well and we are confident in our ability to realize the full potential of this next-gen offering, amplified by our adjacent digital capabilities that create a unique competitive advantage relative to other data annotation providers." "The TELUS International brand also continues to garner increased visibility in the industry with recent recognition by leading industry analyst firms, Gartner, Everest Group and NelsonHall with respect to our digital CX services and delivery, content moderation and trust and safety competencies. We were also named a Leader on IAOP's Global 100 List for the fifth consecutive year, highlighting our ability to innovate and our commitment to Corporate Social Responsibility programs," continued Jeff. "This third-party recognition reflects the tremendous dedication and engagement of our team members across the globe, despite the challenges of the ongoing pandemic." Vanessa Kanu, CFO said, "In the first quarter of 2021, we delivered 57% revenue growth, driven by acquisition uplift, and 20% organic revenue growth, underpinned by our diverse digital service offerings and capabilities. Adjusted diluted EPS, which excludes the impact of certain charges, was $0.23, up 229% from the first quarter of last year, reflecting our continued momentum with existing and new clients, our scale efficiencies, and contributions from accretive acquisitions." "We have also made excellent progress in strengthening our balance sheet and have again demonstrated our ability to de-lever quickly following strategic acquisitions. Using the cash proceeds from our IPO of $493 million, combined with additional repayments from cash provided by operating activities, TELUS International was able to repay $530 million of debt in the first quarter, and as expected, we now sit comfortably within our target leverage range, providing significant available liquidity for potential future acquisitions to complement our double digit organic revenue growth," continued Vanessa. "Looking ahead, our management team expects TI will continue to deliver strong performance in 2021, as signaled by the full year outlook we have provided today. We believe our strong profitability profile creates additional headroom to invest even more in our business to further accelerate our revenue growth trajectory." Provided below are financial and operating highlights that include certain non-GAAP measures. Reconciliations to GAAP measures under IFRS are provided at the end of this news release. Q1 2021 vs. Q1 2020 highlights
For a discussion of our first quarter 2021 results of operations, see management's discussion and analysis of results of operations and financial condition, and financial statements and notes, on SEDAR and on Form 6-K on EDGAR with the SEC. Please visit telusinternational.com/investors for additional information. Outlook
Q1 2021 investor call TELUS International will host a conference call today, May 7, 2021 at 10:30 a.m. (ET) / 7:30 a.m. (PT), where management will review the Q1 2021 results and outlook, followed by a question and answer session with pre-qualified analysts. A webcast of the conference call will be streamed live on the TELUS International Investor Relations website at: https://www.telusinternational.com/investors/news-events and a replay will also be available on the website following the conference call. Non-GAAP and other financial disclosures This news release includes non-GAAP financial information, with further explanation and reconciliation to GAAP measures as outlined later in this release. We report certain non-GAAP measures used in the management analysis of our performance, but these generally do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. For definitions and more information on the use of the non-GAAP measures, please see our first quarter 2021 management's discussion and analysis of results of operations and financial condition, and financial statements and notes, on SEDAR and on Form 6-K on EDGAR with the SEC. Cautionary note regarding forward-looking statements This news release contains forward-looking statements concerning our financial outlook for the full year 2021 results, our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business, results of operations and financial condition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "aim", "anticipate", "assume", "believe", "contemplate", "continue", "could", "due", "estimate", "expect", "goal", "intend", "may", "objective", "plan", "predict", "potential", "positioned", "seek", "should", "target", "will", "would" and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements are based on our current expectations, estimates, forecasts and projections about our business and the industry in which we operate and management's beliefs and assumptions, and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. Specifically, we made several assumptions underlying our financial outlook for the full year 2021 results, including key assumptions in relation to: our ability to execute our growth strategy, including by expanding services offered to existing clients and attracting new clients; our ability to maintain our corporate culture and competitiveness of our service offerings; our ability to attract and retain talent; our ability to integrate, and realize the benefits of, our acquisition of Lionbridge AI; the relative growth rate and size of our target industry verticals; our projected operating and capital expenditure requirements; and the impact of the COVID-19 pandemic on our business, financial condition, financial performance and liquidity. Risk factors that may cause actual results to differ materially from current expectations include, among other things:
These risk factors are also listed and fully described in our "Risk Factors" section of the Annual Report for the year ended December 31, 2020, available on SEDAR and on Form 20-F on EDGAR with the SEC.
1Maximum cash balances of $100 million is used for the period ended March 31, 2021 in accordance with the credit agreement. About TELUS International TELUS International (NYSE & TSX: TIXT) designs, builds and delivers next-generation digital solutions to enhance the customer experience (CX) for global and disruptive brands. The company's services support the full lifecycle of its clients' digital transformation journeys and enable them to more quickly embrace next-generation digital technologies to deliver better business outcomes. TELUS International's integrated solutions and capabilities span digital strategy, innovation, consulting and design, digital transformation and IT lifecycle solutions, data annotation and intelligent automation, and omnichannel CX solutions that include content moderation, trust and safety solutions and other managed solutions. Fueling all stages of company growth, TELUS International partners with brands across high growth industry verticals, including tech and games, communications and media, eCommerce and fintech, healthcare, and travel and hospitality. TELUS International has a unique and differentiated culture that places people and a shared set of values at the forefront of everything we do. We believe that continuously investing in our culture and operating as a socially responsible company builds stronger relationships with our team members and clients, and positively impacts the communities in which we operate. Learn more at: telusinternational.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210507005110/en/ |