Telus International Cda Inc T.TIXT

Alternate Symbol(s): TIXT

TELUS International (Cda) Inc. is a customer experience (CX) innovator that designs, builds and delivers high-tech, high-touch digital solutions, including artificial intelligence (AI) and content moderation for global brands. The Company operates through its subsidiary TELUS Corporation, a communications and information technology company. The Company offers a range of solutions, such as digital experience, customer experience, information technology (IT) lifecycle, advisory services, trust, safety and security, and back office and automation. The Company serves technology, games, communications & media, ecommerce, financial technology and financial services, healthcare, travel & hospitality and automotive. The Company provides scalable data annotation services for text, images, videos and audio. The Company sources multilingual training data in approximately 500 languages. The Company is also a full-service digital product provider through WillowTree.

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Telus International Cda Inc

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Post by retiredcfon May 04, 2023 1:02pm

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RBC

May 4, 2023

TELUS International (Cda) Inc.
Starts the year with a mixed quarter & unchanged guidance

NYSE: TIXT | USD 19.60 | Outperform | Price Target USD 29.00

Sentiment: Neutral

TIXT’s 1Q23 revenue of $686M was modestly below RBCe and the Street, while adjusted EPS of $0.28 was $0.03 above our Street- matching estimate. Management reiterated FY23 guidance.

Quick takeaways. TIXT reported $686M/$0.28 in revenue/adj. EPS compared to RBCe of $688M/$0.25 and the Street at $691M/ $0.25. Revenue growth was 14.5% y/y and 16% constant-currency, vs. 5%/9% the previous quarter. Adj. EBITDA totaled $155M, below RBCe of $157M but in line with Street, or a margin of 22.6% vs 23.7% last year. The company generated $65M in free cash flow during the quarter, while the leverage ratio (as defined by the company’s credit agreement) increased to 2.8x vs. 1.1x last quarter with the closing of the WillowTree acquisition in January.

FY23 guidance reiterated. Unchanged FY23 guidance calls for revenue of $2.97B–$3.03B, adj. EBITDA of $705M–$725M, or a 23.7%–23.9% margin, and adj. EPS of $1.20–$1.25.

Conference call at 10:30 am ET.

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Advancing an underexplored area of the Yukon with the same geology as B.C’.s Golden Triangle