Q3 2024 TELUS Digital (Cda) Inc Earnings Call Transcript
Key Points
- TELUS International (Cda) Inc (TIXT) reported stabilization in their performance with sequential quarterly revenue improvement, driven by momentum in AI data solutions and digital solutions.
- The company has successfully expanded its services with existing clients, including Google and a leading social media network, showcasing strong client retention and service diversification.
- TELUS International (Cda) Inc (TIXT) is recognized as a leader in CX services, with accolades from Everest Group and Nelson Hall, highlighting their innovation in AI offerings.
- The company is investing in talent and expanding its sales organization, focusing on AI and digital industry skill sets to capture sales opportunities globally.
- TELUS International (Cda) Inc (TIXT) is leveraging AI to enhance operational efficiency, as demonstrated by a 4.9% reduction in TELUS's technology solutions segment's indirect cost to serve year over year.
- The company faces ongoing price competition in the industry, impacting profitability and requiring strategic pricing and value-added services to maintain competitiveness.
- TELUS International (Cda) Inc (TIXT) reported a year-over-year decline in revenue with a leading social media client, although efforts to diversify services are starting to yield results.
- The company's adjusted EBITDA margin was 14.4% in the third quarter, reflecting higher investments in corporate initiatives and a shift in service mix towards AI, which currently has lower margins than traditional CX services.
- There is a need for ongoing cost efficiency efforts to offset near-term pressures on profitability, with a focus on agile operations and strict limitations on non-essential costs.
- The company anticipates a potential non-cash tax charge related to the recoverability of deferred tax assets, which could impact earnings in the fourth quarter.
Good day. Welcome to TELUS Digital's Q3 2024 investor call. I would like to introduce your speaker, Olena Loach. Please go ahead.
Thank you, Carl. Good afternoon, everyone. Thank you for joining us today for the TELUS Digital Third quarter, 2024 investor call. Joining our call at Jason Macdonnell Acting, CEO COO and President of customer experience, Tobias Dengel, President of Digital Solutions and Gopi Chande CFO. We'll begin with prepared remarks from Jason to be a single P and then open the line for your questions before we turn the call back to Jason for some closing remarks for our cautionary statements and further context on certain non-GAAP measures used during today's call. Please refer to the appendices of the earnings release issued this morning and regulatory filings available on CTA Plus and Adar with that. I will pass the call over to Jason.
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