TDCX - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome and thank you for joining the TDCX Incorporated First Quarter 2022 Results Conference Call. Throughout today's recorded presentation, all participants will be in a listen-only mode. Presentation will be followed by a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to management. ahead. go Please

Jason Lim

the welcome call. and of XXXX quarter management first Relations, Hello, name to is conference on introduce to My allow Head Jason earnings and everyone, me TDCX call. Lim, Investor the

We Junique; Chin our Laurent CEO, and Executive have CFO, Chairman, our Neng. and Mr. Founder Tze Mr.

like remind be that subject uncertainties may not we risks we to make forward-looking Before and to continue, will in the future. realized I'd are you statements, which and

Also, reliance as undue and includes on EBITDA place this not statements. non-IFRS such call income discussion forward-looking measures, margins, should adjusted certain of margins. You adjusted net income a any adjusted adjusted financial net EBITDA,

which the to our website. are measures, non-IFRS of the to please reconciliation our closest or refer release IFRS X-K, available For press on measures Form the

provided should for rate as at be done this of we the This U.S. USD rates. into This a a a or into can that Lastly, Singapore translation any at S$X.XXXX. translation not dollar. other to convenient dollar dollar Singapore amount the be was converted representation construed of US$X have

share Laurent. on Our let now session. hand that, performance. call by a updates be will the Q&A With financial operating me the over This Laurent management please? will to and followed

Laurent Junique

to you, of XXXX. for Thank Welcome our the Jason. briefing results first quarter

an highlighting disruption team by I and begin role social teams are to in and I that sustainability. clients a demonstrated also much done resilience on climate and would has uncertainties thank TDCX volatile great play believe in our To promoting important strong trust contribution. and the so us. report our environment. their set putting for And responsibility. a operating we businesses was change, like work of start execution accelerating that a We for good with, change corporate to want The faith happy to their and them a QX for results big despite and incredible thanks to despite

it made our a our we footprint change, across globally. climate of impact operations carbon reduce priority the Given to

now happy been to I'm has party. by carbon verified neutrality independently So a share third that our

a received of carbon criteria. that from ESI a approach. carbon is have achieved We statement neutrality footprint satisfactory by the two-pronged report opinion taking highest We our

and by to currently are reducing reduce Climate our sustainability through Nations of we collaborating with on carbon Initiative. Neutral We're output initiatives. all, our offsetting their United what First unable very closely clients also Now

to In the Women make empowerment addition, representation and we the are launched Through our and key literacy. our our with quarter, in of digital of TDCX's XX% during to workforce to aim equitable women's goals marginalized positions. in network. empower we workforce build healthy female success part up leadership continue uplift to career diverse and through a network, communities colleagues pursue to women their

Let me now some of our performance. cover financial highlights

comparison, net S$XX was XXXX US$XXX out quarter effort, S$XX That's to a one joint of for our million QX million which As was the share up team S$XXX plan rose year-on-year. result basis for a XX.X% to the to million. maintained XXXX in cost or our performance million margins up income, Adjusted Adjusted or million. at XXXX. QX We by XX.X% EBITDA or trips million. like-for-like XX.X% compared XX.X% EBITDA US$XX XX.X% revenue US$XX

from operating We net continue up flows. very XXXX US$XX generate cash to QX million, year-on-year. strong cash was XXX.X% activities

contribution verticals. from for Now

rebound a key QX compared across contributions strong see to verticals. and to and XX% was continue XXXX. up Travel We hospitality staged

XXXX still QX levels. was XX% below this However,

payment group happy of our triple-digit XXXX. with Fintech revenues rose other The and this space a While through especially serve at for for we are We time clients' XX% orders percentages impact gateways, train to crypto fintech has before complexity. grew, talents at it is close become QX market we a our us. around as largest and year-on-year small currently, requiring still revenue the it. watch, risks of only third around And level takes are crypto for vertical and companies flows space. onboard mentioned part before, exchanges and high keeping a business of

continued XXXX. base. with our economy at continued to client advertising clients logo a a leading trajectory, growth stood we short-form very the new major On growth, in wins, development social That's advertisers compared company. to a and e-commerce, leaders. client of a On All media we're announce these our helping with four space of support video Asia number mentioned in with another digital we customer our the sharing the and new placing Southeast fashion, new strong new fintech tech, and digital from logos platform. space, front, momentum XX revenue won this four in within include business as QX. have We've win total leading new clients QX all, grow market particular digital e-commerce of leadership reaffirms advertising, at this their in XX% in total This revenues Sectors wins earlier. happy

client at a of as XXst XX% up ago. XX% to Our compared now count March, stands XX year

three, moderation regrouping we recap Now classified the US$X these comprises related or trading over omnichannel quarter, into medium forward. them around CX indicated for for monitoring includes looking for wider on are accuracy just service trust procedures are Such new a which offerings, and monitoring is we stream in each key where sales remain to the currently of by And machine slides. as our CX a market content for and client work, a under performance three and digital are sale enable significant to grouping represents if into and This as of joining look we first a our moderation XX% service services solutions; verification well businesses the for business ensure and subset stream. growing opportunities who of annotation I help two, time, moving data call safety those rental marketing of services; listing larger now long services, content at work for and trust listings The is term, single onboarding a authenticity services. service the and accounts. million already one, clocked the and KYC safety and learning, a The business and up market. to as year-on-year single trust over safety omnichannel for

So out we'll for this watch in earnings next the call.

quick On our geographic the front, geographic expansion presence. recap a of

Vietnam We are being year are will over Indonesia now additions the we expand more Korea. details South and into in planning time. three latest India This XX geographies, Romania, and we share and to

our to these capture help will As start look our regional into new their clients expansion services us markets, into new decentralizing businesses.

client development for new the marketing our third that a opportunities or continued capabilities, we M&A growth. and as strengthening geographies, existing I'd not term. have strategic discipline with will like as expand One, be Last efforts client efficiencies group and our that least, will blue-chip the reiterate accelerate longer Now on our put pillar our well on Three, strategy, group to Fourth, business to Two, offerings cost to clients. continuous on complement markets. business but into expansion geographic coverage. productivity. new operational service

cautious worry supply on faces are the inflation, remains current ongoing near-term and as more chain environment know continuing Clients issues. headwinds, economy many of become the Now we all committing. and the have economic such global uncertain war as the environment,

are them in than implementing of Some projects. expected slower

reflect the As fundamentals I on adjustments provide to well some to to have current decided update our remain to to are an financials the solid much make we detail, as macroeconomic to our guidance. hand in Mr. now and FYXXXX as to long term you. uncertainties. intact over Chin will Chin guidance over the our prospects And as Mr. cover

Chin Tze Neng

Thank you, Laurent.

QX Marketing our This financial some Let performance. was by segments. on the US$XXX me CX first Digital and XX.X% omnichannel share Sales to Revenue and business growth rose XXXX details across driven million.

metrics Net performance the and XXXX we exclude facilitate expense plan as the XX.X% period appear rose the Accordingly, declined implemented the period EBITDA for lesser in PSP higher long Adjusted to marginally due to which share tax to like-for-like income million. last X.X% adjusted same a largely with or employee net profit November, the incentive the not recap, expense. charge XX.X% from adjusted compared of adjusted last PSP, to comparison basis a the and period a in XX.X% the on to implementation to same extent, EBITDA XXXX, EBITDA margin year. program. QX US$XX reported rose year plan share-based QX for a Just term Therefore, did in income the XXXX. to

to risen XX.X% On have in the like-for-like margin compared XXXX. income basis, have US$XX excluding PSP income costs by would XX.X% QX adjusted Adjusted XX.X% been net million. net would to

services XX% million vertical. by now due CX the to XX% two business services lower respectively. to our gradual by revenue more and travel share and is moderation, by at the from details from content media of hospitality the Revenue advertising and the from with revenue of from COVID-XX advertising the mix key expansion in to and we while XX% Revenue operate. from and recovery our to on our X% of million extension increased vertical. by Omnichannel sales US$XX campaigns QX for impact XX% solutions Next, US$XX and digital we million up performance media volumes the services rose XX% sales higher Business by and existing driven marketing the mainly digital to geographies declined US$XX clients offer campaigns. content pandemic. which we in digital monitoring clients omnichannel per marketing due existing digital of volumes of CX Revenues primarily agent in our benefited the and business our moderation

for US$XX rose geographies, stood economy And to million. QX many XX% at revenue landing X% Philippines XX% for revenue will and Revenue and of strategy rose to QX apply to and XX% rose, be coverage terms key for Singapore respectively. stood to these at the continued China million; contributed point rose from while Thailand XX% Initial XX% to in to land the Malaysia expand followed In region. by continue US$XX our US$XX XXXX. new geographies. at to contribution the clients to by various stood Japan other to the XX% X% US$XX Thailand broaden X%. XX% and XX%, clients contributions for at we million; Malaysia Singapore at clients key Philippines million; group

earlier, year. XX logos shared XX same XX March, as compared XX in at period to Client stood added logos to XXXX. we in count of XXXX, Laurent March, last increase compared XX% As QX the a four

expenses. our on details some share next me Let

stood QX percentage revenue costs XXXX of operating as XX.X%. For at a

Excluding XXXX. benefit than same expense our of PSP largest XX.X% these lower the base. cost operating marginally portion XX.X% for total remains period the costs stood at Employee of

revenue cost, employee Our increased expense to PSP QX. XX%. largely for we would If by the in of benefit by with tandem exclude employee have XX%, increased XX% growth expense benefit million US$XX

as such Our to period. telecommunication our being items Singapore, All focus during Thailand and X% lower recruitment, declined demonstrates certain QX expenses, expenses and on in depreciation XXXX expense assets our transport the cost renovation by for rose which depreciated revenue largely due management. which other Philippines X% than fully include growth,

our me XXXX provide on outlook. year let Lastly, update full an

QX we have the achieved business uncertain. solid While performance, outlook a current remains

With off on downside holding the particular, range there wider of environment their projects. earlier and is now a risk. delaying some scenarios In and commitments are possible clients current plans,

about Given caution the this being are of we earnings of current practical in and on site outlook. the terms uncertainty, environment our

advertising our revenue previously. reducing million from S$XXX revenue US$XXX are US$XXX midpoint travel down or me previously. and productivity, from XX.X% year on to in at growth to of margins be and million lower at This guidance hospitality we million offset that, XXXX over growth revenue media, account focus we FYXXXX XX% into XX%. Laurent. back to let e-commerce adjusted With FY fintech and or the growth higher continued expected such, million. assumptions compared full digital our vertical. million to to cost are US$XXX approximately takes our in US$XXX S$XXX S$XXX partly expectations million maintaining EBITDA This million With and slightly to to was to efficiencies million XX.X% top This the to verticals. is is be clients by growth hand S$XXX to XXXX As our

Laurent Junique

Mr. taking us for financials. you, the Thank through Chin

We’re for Q&A. now ready

Jason Lim

Laurent. Thanks, Okay.

ask just over. to each each, are please going take you three keep Q&A. yourselves please? Operator, for of We I now Can questions

Operator

is question First Instructions] line from Woo of Please go ahead. [Operator Philips from the Jonathan Securities.

Jonathan Woo

Hi, my for management got thanks call. taking I’ve questions. two

And your in? as media video then on I’m as clients wondering big revised a just would logs you. is bit big verticals shed new expect Can operations. platform the China. be And [indiscernible] revised that how platform. out short-form just of the big Airbnb slow your question, also headcount of operating added, color why for outlook, again? your global would initial are So or you kind on well for in countries in noticed your business And any social shed color may maybe leading specific you whether And the the guidance on be second e-commerce first what you these on same a that China, guidance? the little pulling bit there down? revenue to affects you we of more guidance. Are Thank they

Laurent Junique

Thank everyone. you, Jonathan, hi and

new Asia the logo, excited e-commerce as well. very, and our from Southeast clients for look, So sure, very about, we’re new

On successful been disrupting advertising its very client the high-growth that’s digital short-form video platform, think the business. I in

great starting it’s a XXXX. eventually growth So, but launch we’re across this a into are three proud two as client and for happy potential start, Singapore selected actually What’s both which for plans. interesting simultaneous a and it’s will to been covering now steady, get geography lines Barcelona. first It’s quickly got expansion fairly Whilst and them of third and their especially about well. we in small, is business, LOBs, in have that their

So support client really in we other expertise both more confirming have for or and clients for sectors. and it’s TDCX’ the reaffirming in sales, these this

that’s client are we that will currently us working for And new options e-commerce our to in So expand also geographies give exciting on. sure.

great. that’s So

So for that’s that.

guidance, fast. on to clientele or real have, fast. drop revised the begin bit has a moved the been that really we industry of very there’s very a with, specific the the back There’s moving singled of out on have uncertainty clients Now macro in no of things environment, They’re number here. a

back the taking stock things prospect happening China, bit inflation, impact the we a markets the how possible recession and have quickly than as behaving are become You longer are and reduced more well. our cautious. more ongoing with thus on holding clients, can visibility escalation, see decisions. of next year, its supply the expected how chain, They’re feel and are They

guidance. of To that’s verticals. it’s us answer Jonathan, caused general, softness make to our an So in feeling that across decision question, to it’s but your overall reduce

with we’ll on with And into it sure. it’s continue question to for of We’re aligned that make all. We China, and market of that to conditions these the caution, side sure around one unforeseen just expecting [ph]. the next target at Airbnb erring your in to wanted situation more of to be play we’re work not

We received have not have I received there don’t think such either warning. anybody any warnings.

to our with really a that this. a us. despite for we everywhere to business. general, it’s small specific currently for a small committed the of question, that’s that just So working China specific sure, is many grand scheme and in that pandemic, challenge that. hope for the encountering, doesn’t weather strategy, things, very was well that of business, disappointment China I’m it piece that But in working setback. our our so which the China. not it international And sure but of Described clients, able our in will large is we general, an to we’ll commitment we But definitely business. in in a And through very with understand part extension is it’s challenges past, China be it alter the it’s the challenge, answers China is and part ride I needing the very some which our But Jonathan. are focused it’s network, a of work know a of

Jonathan Woo

you. Thank it does. Yes,

Operator

Please Sachs. Vitt from of Goldman is question go the Pang Next from line ahead.

Pang Vitt

me. Hi, thank you the questions opportunity. good for Two evening and for

Q trend, on in the the content revenue and that We better monitoring weaker was a omnichannel as revenue on little Firstly, well. bit just the to a specifically noticed have quarter-on-quarter trajectory. the understanding want this

of been we you the why even the your it start I agent revenue for social monitorings, number why see see That's travel down. to is content understand much in lower continue as from And revenue what of contract? that the reason lower circling renewal year are reason? client, one the well? from trading to to lower Question in the particularly pressure talking segment, lowered And back because the we trend noticed per want recovery number of weaker, media question of guidance though your we is to that has how the Just the see to about? this we Will rest the one. two, this is

Just your same Thank your on guidance growth segment-by-segment you. Have with How the change further the about understand, building want And inflation there time, think field why a to we guidance? no new right? to from basis at margin should guidance? you been is impact now? in any

Chin Tze Neng

is quarter, taking CX up And US$X machine that see content that's to is contract. and per adjustment but a to product for I I new a line clocking for from or what moderation that's, to which wanted about annotation, be it grows what safety maybe right? work is of that seasonal trust should bigger under part that do, content support. not take program, classification again solutions. line. a confirm and back reduction here million coming content together but OCX that a is that So that trust the about in business single tend It a of spoken say and a decline, at XX% we've we on that or classified omnichannel we cost For moderation about data be year, year. this overall probably that this actually if It's is would we the for business I KYC work single before, mention is I And safety year and lump opportunity learning and this a moderation actually do a

next will we segment a segment it's And call mentioned of have the OCX. – just of we fast the be growth reclassifying the that sub quarter. a So in now in

representation a of see that So you'll particular sector. better maybe

just of look tackle plan. to that not you part or for because it at it easier it's it's to So

the seasonality on guidance, the coming Now guidance. the was around, back question on on the the

Laurent Junique

QX Seasonality QX Sorry. from to results.

Chin Tze Neng

Yeah.

QX, and different in are to from QX think in fairly So was bump QX similar general, QX QX slightly I is results big which faster. to Q. a QX

first of QX; bonuses. all we in in QX have some less have geographies in We do different QX in also had than days

some overtime, these quarters. so We have are different

So it's I very I the not And can last question. you couldn't back you part? play hear missed unusual that that part if than softer your QX is of will well see QX.

Pang Vitt

Sure.

likely So Which have to in noticed the increasing will which particular and and any margin how a together in margin quarter? segment-by-segment faster that, last well, about around change in built guidance, with the wages no I in is segment grow guidance you question the in on first is think country as guidance? your basis. that on there guidance inflation

Chin Tze Neng

different The the in expect we in that sales the will expect margins do crisis, and segments, guidance, digital better. the between a different marketing that the difference segments we in in

We digital bit less to say and that. a a digital support if then that's requests, comes omnichannel marketing And in and our advertising fintech we'll a we have receiving helps let's CX expect because see sales counter into in is do are general or But in reduction. volume, less play less to clients function. what

operations way been inflation factored such be guidance. now, planned big clients our efficiency. price through as see, So And will be on our guidance. it But That have in some And we've point. And that some run at kind we ready doesn't margins of yet. at all-in-all in our some if forecast margin don't impact look this and planned quarters. for this it's it Right reduction. way we inflation to have point that very and not mitigated increases this at as we operational see impact that see our in happen in cases, coming the in an the to I a indicator, we you any QX for can

Pang Vitt

Thank you.

Operator

please question ahead. Ahuja from Suisse, of Next go Instructions] line [Operator from the Varun is Credit

Varun Ahuja

I Hi, me, that's remember mentioning good thanks management few opportunity. the for Yeah. A weak that a quarter. want touch on evening to XQ and back I questions seasonality part. seasonally from the you

lot number ramp these is quarter, weak we you for wanted you, seasonally quarters again see part. new then missed should the one. revenue two mentioned overall, something I do you've the obviously that up on can on I most comment, That's it's front, you I travel to as if but front? weak think get wanted of just then are understand your are clients referring you your you the of travel Number on on two, kind understand acquired back expect a also. to QX understand opening and contribution travel, so I Now and up seasonally just how a

three or reluctance yeah, – you to expand? That's it. that pressure it mode clients on out you And last marry kind cautious some front, there, mode as more because to up so? you geographic or happens, you a on of offices just or with expansion, Thank your expansion now I'm would've number continue So cautious Indonesia, client is you're existing backdrop, plans front? little added specifically some of two. aggressively? are the are over large the view are and the that clients, or and two, new but how some is Is do to are more ramp on on up given open two largest to recovery micro Vietnam you. benefit still the that’s seeing going mentioned trying expectation clients maybe you the is it guidance? you the that current number now started I any you the know XX same bit the that months to And figure

Laurent Junique

good that you’re talking here. Great. quarter seasonality, Thank about Varun. a point you, And think I bringing Hi.

truly ramping I travel probably of to the really think where effects, a impact orders but more the travel see QX. as are as and is impact We decent the bit for QX were ramped up, starting we’re we coming the can we it much QX at is recovery QX happens. up received of is they the as where muted. see recovery,

other small muted. side. QX your linking on bit the little QX the for to quarters. but are like the our second growth business, also yes, or QX by airline we seasonality a been more on question of is will impact end same bit pick work than to e-commerce, be nice whether but following muted a do in whether depending taking the forecast, if in expected well. the brought on is hospitality a that’s it business. materialize, you’d to we're see fintech the which of large up form about the a And travel. significant, And more new do is put clients our business video launching, year, it’s we’ve And travel that was we slower on as a that’s supposed it’s digital the region platform On to some And have it’s that’s honest, launch. short the our in So be this the part it’s advertising token, launch to the will in probably much that pickup earlier

was doing now. hoping would’ve you are We training started I right earlier.

been in there's revised guidance. general delays these So some and contribute all to that

expand markets that The objective than to to Now share course, in yes. provide strategies land expansion us expanding the that we those services, them, need and to we also TDCX geographical But those a we’ve a before more more market identified. geographies, for want manner. before. is clients need more competitive we to geos need more value should grab expand to also and our today in do so hedge ever on provides more stay we whether It attract from to in said business prudent we the as

growth course, it’s It’s good a we want, It’s a not the number. It’s is. Yes. XX.X%. staying So good guidance. guidance. It’s we’ve but our where what it revised what are I

Varun Ahuja

there get are the there question queue. – I If the ask two more back are under no Sure. otherwise, on questions I’ll can queue;

Laurent Junique

queue, more maybe. on have Yes, Varun we callers do the couple

Varun Ahuja

Yes. queue. I’ll under Sure. jump the [indiscernible]. you, back Thank

Operator

line from ahead. Sean Yacht is go Capital question of the Zeta Please from [ph]. Next

Unidentified Analyst

do for ask the few I here. two new are and clients that for How you and are business thanks Hi, is I’ll quarter. giving how us that There questions opportunity business your giving management at have year’s opportunity time? have to your the the go time me There you material convenience. large two today a – clients a you added in see one have this questions added. to

Laurent Junique

you, the in are XX will you – are really will the new contribute those – start two year. two for XXXX, – pulling their new thank significant we’ve in So clients that two XXXX. XX in this We’ve added QX weight Sean. saying logos quarter But clients they and

up logos bit we’re midyear. a already more The XXXX, in other show eight will as well

to have going have factored not in on we our impact this a forecast. But massive it’s So year. that

Unidentified Analyst

Understand. of reopen. And and my – what a trajectory in mentioned as second about earlier today in seeing is things QX? expect the did question vertical, recovery and on how QX segment that is the travel large What you recovery hospitality versus in XXXX, you kind

Laurent Junique

compared year, Looking pre was it still XX% was – up, last XXXX right in QX, compared XX% it by to lower to but XXXX COVID time.

hoped again, potential still there’s once I So but for to more. grow. It’s recovery, good a would’ve

anticipating. had stance our forecast. was not conservative taken as as we it’s a I anyway But massive So in

be of well. side wanted to caution So we the as on

Unidentified Analyst

Understand.

So of travel to is sector? hospitality and from just XX% hear XX%, the QX it the revenue correctly, is

Laurent Junique

for XXXX it grew No, to by us. XX% compared

Unidentified Analyst

workforce are region? slightly companies, the question, the environment Got you clients cheaper shifting cutting you outsource who this it. Understand. And whereby to them industry, cost seeing yourself outsource internally in it’s trend function their are and given, and seen this trend in this like yourself today from tech have to your my for last guys to

Laurent Junique

outsourcing of cut trend the to cost. So

Unidentified Analyst

from tech right That’s companies.

Laurent Junique

new. Yes, I think time. not They’ve quite from tech it’s been some doing for that companies,

clients well, the in North tension the And a rise cause trend offshoring see come the find forecast could that people There’s to to possible trend. just is up It's as result be to labor options. job as difficulty but on I to new inflation may America. clients sure. of sign more trend this developing is labor this the not that don't the that could a may point, these think immediately it that accelerate. We to it So consider do a may looking is for be for CPI at mitigate that. a our

Unidentified Analyst

Laurent. lot. a Thanks Understand. Thanks

Operator

HSBC. Han Next question Tan from from Instructions] [Operator Please is go ahead.

Han Tan

two situation? can revenue ask rate little just have by in share you macro a questions of count? the evening. a So by Can please? Good an churn either client result seen or the you as I latest retention And increase first question Hello. of

Laurent Junique

Yes.

need seen in the and a So a in for have We someone increase hear home we've very delivered crying switch We first first they There's home. from since victory. can me? for but the you what is office XXXX, we're have their in and quickly to see that's one work far home an consideration so makes see my for not very we to bit easy it laptop see this, tapering switch and of attrition. of example, different near of job whether they quarter increase to XXXX. reasons attrition to is an believe a and don't this continued we April, Can jobs

mention demand you're that So of to is that transferring appealing going ease shift to see. some not the the and of

Some then going people were be to like to They're – the have they they travel, moved company is to for back. And into lost job, go now then tempted their in hotel example. a ours, recruiting.

So labor going to causing that's demand be there's – staff demand some, some turnover.

organizations. of now who options types So available work there for employees are for our many

We people hire in offshore are our of we on basis. type expatriates an higher more Fortunately, complex of are people. the work. Many end

for tracking are we still numbers, sure. I So have, they're we to attrition numbers we're that not deliver It's clients. for independently that's not able don't confirm our peers. manage manage It's head able our believe we're easier We and to because are looking count helps those of confirm, but mitigate. for. to increased some getting below easier, able and the with those We that we're not cannot

steps talent this same from pushing we're with measures the of taken are to address point resources. of important head challenges. ahead having structure able And clients are Our make that acquisition, the that telling we've further also and and actions quality view the still deliver they're we to global to a us in sure

to clients Our are them. for us trusting deliver

Han Tan

so Thanks much.

a quarter, in share-based in quarter? first amount should expect Do on expect to be Second question [indiscernible] next or you two the this expense. similar the we

Laurent Junique

we Mr. is... expense? that Share-based the have, PSP Yes, Chin costs

Chin Tze Neng

Han. Hello

Han Tan

Yes.

Laurent Junique

question. Cain, answer Mr. you can this

Chin Tze Neng

the PSP Yes. in was It amortized is effect the an launched of that November.

accounting as the three to for in quarter PSP months two So there a opposed in a was full QX. months four,

will And front-loaded out figure over there also less a be to few to and of will got trench the, as were issue a is few will from as In few next that the that there a trenches that handled quarters, it QX was trenches be this of year. due that what current opposed it the canceled. the few QX take PSP these said. one you So in quarters and performing

Han Tan

you. Okay. Thank

you might consider traditional given final tech is that might [indiscernible] sort the clients, question; the clients? I just economy, you within something something tech outside of a do? much think clients you, going I'm trends right? doing that you expanded think speaking whole better short-term of Is So this to are than

Laurent Junique

Yes.

then or high some from they're For particular any sure, some looking expanded I turning down quality those clients clients the – Thailand. not mean, we've as logos traditional we're for the traditional and of we're and not looking they're where recently services them in looking digital economy some where economy and we're on are on-boarded transformation, existing well more definitely for at

field Colombia properly. well, there example, earlier that as I in one client pick-up retention. And about quarter that was think really a For client in I in didn't on so It yes, question was a acquired we've absolutely.

this maybe So addressed here quickly. I

Q-to-Q, by it retention QX XXX% client at rate has net Our QX prior – the revenue versus retention stands to XXX% was increased from year. XXXX in about QX XXXX

revenue. retaining are clients. The retaining we So our is business solid. We're our

Han Tan

much. Thanks That's helpful. Okay. very so

Jason Lim

webcast XX% on a a question I terms in can So Wong we have segment? I I can XQ questions I around of revenues, How or Well, call, all and actually and hospitality Wilson as think XXXX? think travel travel think sales group XQ big in the hospitality I of – think next is [ph]. up as we from of that's we Jarden on is the have the this, take call. for webcast, the well

will hold if just sort or a if then we end. minute will in we think coming so, for questions while, short any see of I the not there's next for

I too said fast, shouldn't Sorry, right.

So the next take over. please operator, question,

We have on question the a line.

Operator

Okay. you. Thank

KC ahead. Please the go We Ong question from of have from a line CGS-CIMB.

KC Ong

taking Hi, have my a quick for I thanks few question. questions.

new sales it marketing which the digital Or they the OCX? contributing? your may be confirm customer Is on win segment platform, segment? is and regarding it short-form I will Firstly

Laurent Junique

compare just if started It in to them I will interesting expanding starting two with geos and one. what's lines acquired be geo. clients This XXXX other it one, we're XXXX, both. one about product third in product one we because the That's a had line, we two into

it's So a few years interesting later. expansion how the pace different of is

So the yes, question. answers that

KC Ong

That's exciting. Thank very you. Okay.

regarding growth your how are bit Secondly, back making to your helpful? see be some terms maybe decisions. in maybe course, comments of can on some pulling a would But customers you you any a longer-term of uncertainties lowering of comment guidance Yes, more revenue think you do medium- near bit because profile? I term,

Laurent Junique

question, have this for not really. the you fundamentals Thank Look, changed.

the companies our faster-growing are service. need in economy new region; We

So back years prospect come we exceptional recession. we again We had as are with of the going out it. of thought circumstances. It's COVID these to were of

not normal is a So this environment.

the macro long-term growth outlook backdrop assuming stabilizes, our does So change. not

our with back growth be plans. we'll So

what backdrop going much happen of if terms we stabilizes had our the growth pretty is macro in it's look, to So outlook. anticipated that

So at there's And expanding XXXX. where fundamentals stand long-term, well. we're new We're are We're no changes XXXX, doing point. good. The we performing for geos. this customers, acquiring that's well. We're the

the and are short-term We margins to holding have through. be bear just Our ride with to we'll able up. blip, it

KC Ong

understand. I Okay.

ongoing. structural. to are trends customers outsource guess These are the as that party. I nothing of third still up part So previously, continuing mentioned still to their work I are

Laurent Junique

completely. Completely,

KC Ong

acquiring market [ph]. do because we last yes company, companies closer M&A. And to seen with has weakness, Okay. we the private cash just balance flow have with also on guess have you any Got this, spot wondering it. recent question come a strong I is if very are valuations down

Laurent Junique

it make to work. a want pipeline look, and we this very our But and growing talking targets absolutely, we're – to. interesting of yes, with Yes, put that is to nice targets range

know, we will a our targets, quality we has But hard adjust make and companies that we're deal. of to for is profitable sure the the pipeline. add which I'm then takes our the so building time. we're have market, have price looking story to time now, of very unavoidably really then team really position. and opportunities our when closed to is As still question will it the really M&A strategic the you that right really But announce – add and to confident we'll and And worked

KC Ong

Thank it. the you. Got question That’s I have. all,

Laurent Junique

you. Thank

Operator

a follow-up have line Please ahead. from go Credit question We the of Varun from Ahuja Suisse.

Varun Ahuja

thanks. Yes,

want at that it won't you Or capital have since your what to investors rather cash thinking given allocation And ask so it? of many thing. you IPO thought follow-up is bang dividends. you points would should at way strong? Have now? process Is so are make the this about want side. with a What little looking any that interacted many I in Just know talk the there's dividends about I to capital bit right? perspective, around you big time, pay yield changed different on looking free I the allocation you there a kind you're for are judging data M&A. things but go that from there flow

are one to they and thing of And an to hence, is hear offshoring they've on I other location pressure check same wherein have – peer that. seeing wanted wanted global TaskUs both So thoughts mentioning and of lastly, your U.S. costs, one been the of to kind some work low-cost just is I impact. obviously, your revenue

cost with the you. about a same? Thank clients seeing Singapore. location of Are some have You high your you talks kind of

Laurent Junique

Varun. No, great question dividends, on the

went me, growing plan for the of are look, fastest the different feels we probably changed. the very of one like our So Xst It in market has we're with We kind numbers. And second fastest even although high But still growing yesterday to growth, speak. the of the as company the numbers XX.X%. is October. at sector, on not these

for and market situation given in early would moment this giving at our the wise think dividends be I don't a current have into plan history. We so jump it to M&A,

work you is And not from we Singapore doing we into an so to the locations immediately different clients becoming example, in very multilingual do that the high The North are from America about from it's watch is and and offshoring business Philippines difficult Singapore. where that we're the location interesting expensive. lower world increasingly to plans. for a story where in India very U.S. be way end cost for of trend a of do high-cost is need to work really ready on operating domestic in government, were which or mentioning the a

Singapore, And of it severe this we're done a network, growth and we point. into of of our have into has bit why a been which growing planned that a had have locations. some at work we moved it's other we that's our but So at that and anticipated our outlook pace moderate

Varun Ahuja

Got it. Thank you very much.

Laurent Junique

Varun. welcome You’re

Operator

time, no comments. for and like to this I at management further are Please There turn to go questions back ahead. any closing would

Laurent Junique

Thank you everyone.

Jason Lim

time questions, you. wherever reach Okay. Thanks, a I are. if other Bye-bye. to in morning have or everybody, Thank out free spending feel dialing us. for you have and know with you please to any good evening And us.

Operator

pleasant day. the concluded, Thank Goodbye. and now have gentlemen, and joining, and may disconnect your conference for a Ladies you has you telephone.

TDCX (TDCX) 25 May 222022 Q1 Earnings call transcript