TELUS Digital (Cda) Inc T.TIXT

Alternate Symbol(s): TIXT

TELUS Digital (Cda) Inc., formerly TELUS International (Cda) Inc., is a digital customer experience (CX) innovator that designs, builds and delivers solutions, including artificial intelligence (AI) and content moderation, for global and disruptive brands. The Company’s services support the full lifecycle of its clients’ digital transformation journeys, enabling them to embrace more digital technologies to deliver business outcomes. Its portfolio of capabilities spans digital customer experience and digital solutions, including digital IT services, such as cloud solutions and AI-fueled automation, trust and safety services, AI data solutions, including expertise in computer vision, and front-end digital design and consulting services. Fuel iX is its proprietary GenAI engine, helping enterprises advance their GenAI pilots to working prototypes and production at scale across multiple environments, applications and clouds. It partners with brands across strategic industry verticals.

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TELUS Digital (Cda) Inc

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Post by retiredcfon May 04, 2023 1:02pm

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Post# 35430448

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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