TIXT - Earnings call transcript Q1 2021 | TELUS International (Cda) Inc.

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Operator

Good morning ladies and gentlemen and welcome to the TELUS International First Quarter 2021 Investor Call. My name is Jonathan and I will be your conference facilitator today. At this time, all lines have been placed on mute to avoid background noise. After the speakers' remarks, there will be a question-and-answer period. [Operator Instructions] I would now like to introduce Jason Mayr, Senior Director Investor Relations and Treasurer at TELUS International. Mr. begin. may you Mayr,

Jason Mayr

Good for and investor TELUS Jonathan. joining call. you us today International's morning you, thank everyone for Thank QX XXXX

XXXX. Officer; and operational call Vanessa some with Joining and prepared followed remarks Chief Jeff by are will some outlook overview Officer. and provide key of Jeff Executive quarter; an Financial the us provide our strategic Vanessa financial who begin Puritt, We'll for will where highlights Kanu, and today Chief President the

then line call prequalified to remarks. the will analysts before Jeff closing from We to questions open up his turning back the for

President Before on performance These slide projections. I including call two our financial actual forward-looking assumptions The discuss solely statements website Jeff, webcast and this for performance. with to An differ with be release and of to in call also comparable or results no that I'll on these may supplementary to EDGAR Appendices to Jeff expectations consider be dollars the earnings found or now relate the measures International the cause to beliefs over presentation this from our of only to TELUS that results underlying I'd pass useful not available our are US on explanation events at update like are MD&A are unless may team nature supplementary presentation telusinternational.com/investors. available like turn along CEO, and in the the during be management forward-looking of in and download all business measures to assessing today's non-GAAP made obligation also in attention the available direct can all and SEDAR call assume reflecting also Jeff which SEC. your Vanessa and statements. that, risks and reconciliation measures measures. Puritt. comments current referencing our financial statements our otherwise specified news certain and on future that relate to on in materially forward-looking to everyone disclosure will over non-GAAP would measures about the uncertainties do and periods. We to historical I this GAAP any to to the subject call we and a remind company's With

Jeff Puritt

call everyone. It's welcome morning Good you I you first my full International's appreciate company. our company's public to Jason. for to quarter about the well TELUS taking Thanks results conference as outlook as all hear pleasure as truly ever first quarterly our to a investor time XXXX. year

a successful digital was is Following marked International's IPO to their diverse growth our resilience revenue end our end-to-end and the digital of and million TELUS best our members valued remarkable by double-digit world. strategy our clients and for customers. adjusted delivering performance in QX EBITDA the strong members more and the of the underpinned February, pandemic, our Robust Despite continued by completion focused capabilities. team on our commitment of and ongoing remained challenges outcomes X the team than experts annotation crowd-sourced the engaged around XX,XXX our highly data testament

increasing our security, also our of and acceleration broad to quality, capabilities. pandemic excellence. businesses of in transformation we the an companies digital importance embrace serve seeing the and from range the lives, sectors, to games, daily as continues high-growth International forth on and As amplified are disrupt given for unprecedented the e-commerce, particular technology in especially need verticals in digital service focus This opportunities TELUS many such demand an across fast-growing brings

for International solutions the results. of is IT achieved that able of to our our increasing deliver we're defines experiences industry drive design quarter meaningful and continue profitability category strategy clients profitability a profile to and Year-over-year intersection digital including fuel to and new digital creation execution XX% XX% first strong capabilities at evidenced successful customer for build proposition business our adjusted growth. The revenue our shareholders. year-over-year. in affords where amplify growth XX% of Our CX growth our next-gen This digital with unique us power value EBITDA differentiated TELUS our and along investing accelerated headroom revenue organic with in further revenue value

and further this our the details will call. we're Vanessa showcases our this full outlook outlook growth later operating strong our the our on providing confidence of continue. today will expectation Additionally, in review company's that momentum year

in success reflect as new our clients well existing Our as results winning QX growing with our also clients.

we For the institution, e-commerce a fintech disruptor and financial among client, many company, example others. a games new a space, up ramped major large disruptive fast-growing wellness in quarter, a this a company

our call. continue the targeted in momentum detailed leaders own are performance later many vertical to We adding good in see their logos Vanessa across new of which of our will on share by more verticals a overview sectors.

practice online, and range on growth shifting leveraging their our well-positioned within would this $X quarter. hyperscalers. again new an this critical extremely protect operating online to customers. not demand an a at scale year. digital capability chasing higher that and more in safety Yet social International content growing now Our our large substantial estimated added With There's without moderators the target sustainable this all safeguard very than opportunities to by exciting in have company global content in no the possible is diverse at digital inherently achieved than such first value services well a of world safety due as XXXX. Lionbridge which and in undertaken their trend user-generated through such seize our adjacency in as with encouraging moderation of tremendous and seeking significant trust the in are across position broad for also our that been daily $XXX million has trust opportunity longer than team to another business is time thoughtful also now of is entities keeping forward capabilities and nature sales rather market International media digital presence offering TELUS AI continued high safe. are technology contract more caring and a approach end digital of tech which adjacencies only seen our billion consistent funnel annotation for industries our role has all-time more these the data focus lives our Winning fast-growing of to well last our We've of variable who value-add if is verticals businesses our expertise recognition total have important our by partnering online business, in and net that ever. with over Businesses brand support service pandemic-driven TELUS is we of regard success. acquisition the

of has experience differentiator record International inception Unlike AI leading successful digital algorithms we hallmark training for annotation annotators of that scaled since one acquisition managed process the our progressing and services platform of leveraging been XXXX. one integration together that executing we organizations. of globally development Lionbridge AI added a well, hyperscaler only our trajectory help other annotation enterprise to providers, mid-market a TELUS broader two of sustain as acquisition in adjacent With capability see track on and into our crowd expect our technology expand As and strength continues our the Lionbridge our our capabilities peers. versus of our growth AI and of company's scale meaningful community combination has continued adoption companies. important will an the in we're million Through as beyond and our AI, that access in over data M&A data providers data support data we a world integration

safety challenging health we on of physical by a to the members. focus pandemic, continue environment well-being our While operate our and team mental in the and impacted remains and

monitoring closely in India and situation COVID cases course of the are surge in country. in devastating We the the

support work All team since members programs India lockdown to of several to difficult they been paid in on we home, times. have for leaves, place, have in insurance during XXXX. International March these as treatments programs initial care XX, additional the TELUS help occurred sick coverage from and And including our continue members team

distancing sites. to Worthy of work team working it's make place needed of who continue giving comprehensive programs we where who sanitation have we've home to an approach committed XX% physical and note, safety, our with at the to cost. no team continue operate country all world, as approved locations roll more providing member Across single we in measures of for and in around our most. our every are XX, our members of community-based As continues every where vaccination we globally, out in vaccine to March those have impact access from our to to an of than

funding boards in five provide the Our grassroots globe will community XXXX in local to charities. TELUS across International $XXX,XXX

Our culture team on basis. to a members also volunteering caring our continue exemplify virtual

of toll has meaningful a All globe, the team many that something is we process, to long opportunities our member since across impactful of moved provide especially the recruitment so employment countries that the continue can virtual in given to economic pandemic.

the were IAOP's And that, Nelson in and industry our months TELUS citing Their client continue form, Global safety pass analyst social pandemic makes accolades delivery and into efforts to XX answer ongoing personal members In the you. Chief resilience for solutions. to by positive Gartner, we over your and all disrupted dedicated services recognized corporate services Vanessa, continue over our and XXX more team Officer, been Group to execution With and impactful Financial call Vanessa International our be lives trust we I'll content and and questions. which and to the the industry now be to Hall deliver let for Kanu, the innovation dedicated moderation consecutive and foster of our of Now, named QX, me to some programs. energy have reflected and in List, then leading to receive. Everest impacted the fifth inspirational. and back our responsibility professional our firms, efforts year, was and digital

Vanessa Kanu

In performance joining performance everyone. our I'll the XXXX, Thank most in the in provide on good key first focusing our you, assessing and my a of Jeff quarter the believe morning business. helpful us you overview, financial that Thank are of of we recap for items today.

growth to first FX up XX%. quarter, noted start $XXX organic growth to Of revenue itself the period the coming Jason revenues approximately X% items the of grew As note year-over-year, our XXXX. clients compared same were added in In these acquisitions our million, organically new in measures. included from That the call, and existing boosted however, XX% This of are the clients. by both by of prior year. non-GAAP some tailwinds at

contribution significant we in revenue a geography, revenue of with regions, Lionbridge to In our North by year-over-year American our our acquisition of delivered AI growth terms stream. one every our making

first We perspective, Asia. Central total acquisition. safety along quarter an very by key Games growth of demand XX% XX% nearly for the growth continued strong in represented trust attributed America which also flagship vertical, with our with quarter, the Tech Europe, with we in From that our this to in industry year-over-year, first continued vertical. our grew and momentum & vertical growth region, driven posted half in in in strong AI This and growth of our revenues verticals saw across all Lionbridge services business

TI. a Tech with many online increasing popularity meaningful the games, with an seeing high online, themselves for spending And we are of are amount Our the clients us time tailwind of & growth. in Games explosion combined enjoying of

Our acquisitions. Communications year-over-year, which quarter, of eCommerce represented attributed & this total & vertical, revenue, of XX% grew XX% Fintech, the total the from revenues which year-over-year; increase XX% Media XX% with majority while to growth represents of grew in

and recorded to or This revenue is lower a acquired this million, supported percentage QX services for which expense primarily Salaries largely is which growth. recently goods year, was to with of but of as operating increase AI year XX% expense resources absolute result revenue to of in same XX% as million last business in benefits $XX was compared contracted the XX% that by on -- purchased. the Moving a due expenses. in revenue, up of in the an dollars, XX% or as and business, being quarter decline $XXX

to costs $XX the and our the million just an which crowdsourced quarter, Speaking million of goods an to in again I the were the and increase The contracted enable of recorded contracted labor XX%, due Those services existing costs digital attributed basis, costs balance line. for labor in of or growth X% Contract in purchase, and XXXX, workforce are footprint approximately topline our total revenues expenses. revenue services same AI from acquisitions labor and services quarter combined in and XX% of mentioned, direct largely growth. QX, year to of as the On the $XX a our support is a goods purchased. labor salaries increase to and XXXX in XX% in compared decreased to ago. and first revenue represented in in the XXXX, benefits operating goods our quarter outpaced of in growth as QX XX% the clearly

our were prior integration and acquisition year, million in in we initial intangible and public P&L, depreciation increase increased year-over-year. offering. up the Lionbridge from the related quarter our of and reflecting primarily quarter year. in million, to Income was granted the our $X and related This amortization compares an on million of first to same expense the compensation other with amortization third the the of previous in charges in $XX required share items. the as our $XX to to expense XXXX price integration increase connection quarter asset in $XX after to the the acquisition of AI increased in quarter continue This assets Acquisition to which other Depreciation $XX down share-based recognized $X was million adjustments million the from Moving and primarily business. million in quarter incremental expense increase $XX by previously of was million, capital the tax grow due mark-to-market awards, driven the additions the CCC.

of items items nondeductible and from in change of income withholding statutory the taxes lower other to tax income a rate increased tax offset average The resulting partially an in QX, by effective XX.X% majority a XX.X% were increase and XXXX the our amongst IPO. to due Our mix weighted rate from a nondeductible in jurisdictions. result

of of posting on $XXX quarter profitability strong performance. XX%. for the adjusted to growth delivered EBITDA our Moving We million year-over-year

margin at EBITDA exceptional was adjusted Our XX.X%.

million Adjusted to QX begin diluted expectations our prior had of combination this remainder of serve a was adjusted EBITDA on same we adjusted to QX increases that this and increased for wage XXX% about starting year-over-year talk support quarter, next up $XX up income we expect We with the along the was quarter EPS compared clients when net for More through year, normalize planned the hiring to anticipate we year. year. XXX% quarter to outlook. the $X.XX the as and of and annual in already

equivalents to Moving March were the balance XX, as sheet. and $XXX million XXXX. at cash on Cash

up puts EBITDA in Our quarter. $XXX well target of range XXXX. us credit cash Xx borrowings debt debt-to-adjusted as ratio leverage $XXX XX, $XXX to generated total of This our pay XX $XXX available million credit net from of XXXX. from up defined from to liquidity Xx. December million our X.Xx. was agreement million revolving approximately under first IPO used us operations the of significantly as at million in $XXX million million This delever at resulting down includes We December to of proceeds available March of the $XXX the and allowed quarter for XX a within our This end as as facility

compared the Our digital efficiently opportunities delever scale. first proven our our cash continue and on further in M&A Free XXXX In accrued transaction bolsters The to quarter other focused which of this AI continue previously million flow Lionbridge our and of regard in liquidity thoughtful with awards the M&A capacity and by of driven were settlement ability $XX executing million change capabilities payments explore augmenting to of we a to strategy. IPO; relating our was was to on same and largely will of quickly quarter capital which working the capital million granted things; share-based were: the prior of costs by previously acquisition outflows the expenditures. drivers year. amongst higher key payment $XX this cash triggered $XX

count. to now member team Turning our

And this of remainder finally, momentum assumed As for year of also that to team expect strong the XX% outlook in full the our March for have not of we note our placeholders which M&A of in year. year-over-year. any reflects XX, an XXXX we increase XXXXX see over that business are we the have just Please today, released outlook. continued we a

growth of in to XXXX the in reflecting revenues by well-diversified driven breadth XX% positioning range we year range expect of full the the the billion growth the year, continued from to $X.XX verticals $X.XX service XX% from the growth prior expected contribution For and of billion acquisitions our over in unique robust offering. organic and previous our benefiting

We expect to believe achieve profitability range and expansion to this prior efficiency. the We by our the a in over we reflecting continuing on in the of focus million XX% guided adjusted EBITDA $XXX range increase year. capabilities relentless million of growth in XX% $XXX can of digital

to by today very we We management outlook well expect seen open lines in in that will continue robust diluted business. summary, year we the to TI deliver XXXX. our confident that in the proud and the that Instructions] over momentum With we is delivered you. in performance EPS we revenue and In the have full of have provided $X.XX to Jonathan the see range adjusted supported questions. is earnings QX now to the is and have [Operator $X.XX to team of

Operator

Tien-Tsin first comes the from [Operator Instructions] JPMorgan. question of Huang line Our from

Your question please.

Tien-Tsin Huang

call. Hey Good good results the morning. Congrats on here. public first

said totally likely on not Just reopenings impact want is to some the of base. seeking outlook TELUS appreciate mixed But ask Jeff short-term sort about will here. client you business. your what that And pandemic-driven have

instance, something for us? certainly this balance of get imagine pick this on as thoughts in I'd of the mind of the your some it's for So ecomm to might top travel has year? the you're of but will up volume would impact love work thinking changed how slack on of

Jeff Puritt

early and morning. your commentary question the for note for much very thanks this thanks Tien-Tsin

earlier anticipate had of exception that pandemic paying the much more now given the obviously will than got where XXXX almost members team close India up as were abate vaccine seen. ubiquitous. I with becomes improves there You and attention we're distribution to We obviously we've continue

the views our to them whether or to setups topology got from office taking heterogeneity us not want targeted Given thoughtful to of approach. different whether will not a we've across want environment. back world the We're return or very traditional customers global will members serve of of brick-and-mortar to measured sort traditional team sort as

with for continue I'm we to an on. spot onslaught support what positioned since return these think as levels for prepare latter totality seen digital in having of positioned excited haven't what the indeed about to ourselves next. enablement, to of represents around and half indeed, pre-pandemic book the starting potentially that And are revenge advantage home-sharing continues more huge last that The content an successfully holidays. a economy demand of But hearing days think take terms and we're we available. of to comes really you're data and annotation travel and I see terrific we business. capabilities In folks I and to have think slowdown we moderation expression we're I our year for capabilities think of ride-sharing more their well

Tien-Tsin Huang

Great. Thanks much. so

Operator

of question line next the Barclays. Ramsey comes from Our from El-Assal

please. question Your

Ramsey El-Assal

question quarter congratulations And here. today. for taking ask the out strategy gate about thanks your your wanted on I there. M&A Hi. to update of first and my Again,

consummate deals? what's there's the appetite guidance, delevered to M&A I in now You've more but quite no nicely. know

Jeff Puritt

the was like want joining. Thanks so How sports how IPO for candidly, used headroom. our this and very disciplined the of this starting of go go. being a we fancy to the continue I that, we're thoughtful the to Ramsey. fast with to sort leverage that pay and and shopping. getting the you? line Hi, red we're and see recently proceeds of to where I've we're be around success when down convertible can feel IPO to joked pleased Obviously, and baby car But autobahn at going create to how are incremental lot

that optionality. have we So

expect be and evolution outreach have a both we that and we're continue have disciplined extend -- the it working our our customers in progress to you going support same we that you to is historically but acquisitive team prospectively, to should our similarly where we fashion us in gaps diligently incoming. customers, sort very do that think the M&A should funnel we're thesis indeed think going capabilities. that to where And through done robust have of opportunities to and fill they capabilities, expect them, We our we be to want in and prospective digital are

Ramsey El-Assal

Great. Thank you.

Operator

Thank you.

of line Blair. Your Maggie William next question comes from from the Nolan

question, Your please.

Maggie Nolan

me the your if EBITDA congrats of expectations. Thank with in client as And wanted quarter favorable was margin? adjusted the impact elaborate ask you well. line can on mix in you to the I and strong from on the the

Vanessa Kanu

are vary we year Quarter-by-quarter slightly. very our code. may earlier we question. to new adjusted full Good team The and great year. current that adjusted QX quarter. a to had we volumes to posted you morning, doubt. the discount momentum, EBITDA for in organic It's that of all being our XX% of of Vanessa. and mentioned can wage our quarter substantially members. we it representative good. increased we clients. the more the We for previous strong as a Thanks about our increases support That growth I the obviously your remarks, said, But think annual Maggie. to the already translated pace from was increasing margins and growth QX we've is us that saw planned great margin that going strong for rate. from found existing to guidance in see was hiring our EBITDA very Obviously, clients through balance a without haven't ZIP And in my be really have also to was guidance, get as both

those cost much our very plan. well into all part profile come So again as our will of of

what guided prospective ZIP is EBITDA to a on right think is about think XX%-ish adjusted I we've code the So basis. which

Maggie Nolan

Thank you.

Operator

Thank you.

Bank from Our next Jason line America. question comes from of Kupferberg of the

please. question, Your

Unidentified Analyst

content and wanted doing on And is your new are the bit it expectations? to with This relative just opportunities this about Hi. to [ph] Jason. in capabilities is what little moderation for the all ask the segment sort medium-term? Thanks. a example of Lionbridge obviously for I and from near for cross-sell your how AI just Kathy expectations

Jeff Puritt

Thanks he's social moderation view online. operating hope Please continuing Jason give essential has and to for an in gravitational got okay. The in the enormous question, I of media the world for my for pull my is Kathy. Content businesses. become consequences regards. it's tool just grow

So that here. highly given demonstrated and as I the earlier, meteoric referenced And in continued around responders the remarks have we've of my see demand we attuned the excited requisite in about we're just growth capabilities digital us opportunity terms trained, ahead that of highly we first deliver are not ensure to said, is outcomes the I as requisite platform. and customers. our this by -- And an their can well just supported media for with This as the for technology is social ubiquitous now. supported again ecosystem success superior that as

expanding approach capabilities. we're -- took we content to retrospect now so prescient quite And excited in seemingly moderation and that our about the

Unidentified Analyst

the on guys. congrats And Thanks. Okay. quarter,

Jeff Puritt

very Thanks much.

Operator

you. Thank

Bank Bachman Montreal. next Our question from of Keith the comes line from of

Your question, please.

Keith Bachman

Thank Hi. you. It's Bank wanted direct you. towards of Bachman from I Montreal. Vanessa, this to Keith

reason the different tracking thinking flow nicely. asked puts through And cash free were we thinking question expectations walk is the free for flow? guidance our But puts thinking comment kind in much was and in seems margin could cash what consider how just than you reported free The cash cash be takes wondering free with a free the takes we I cash March yet was be XXXX EBITDA flow and little Your that GAAP pretty just it. flow. for I on about it flow bit the we as quarter. you if whether the or of be EBITDA line we adjusted should to XXXX about could were

So be just that to for if thanks. speak XXXX? how we should you could Many just thinking about

Vanessa Kanu

by Yes. primarily From free were was EBITDA -- are IPO as that fees LAI. I outlays cash mentioned. you by as for cash flow margins accrued mentioned as higher earlier Thank much cash free the perspective, our accrued impacted well you. in of a or very our triggered some flow previously line transaction as The QX

of onetime So you'd outflow a of kind that impact over happen sort that the Normally, see in quarter. was time. cash

As think seen quarters, is like you've I I actually before. to that us look a from lot next about what three the more think going

typically for And in said flow I the of to we've the cash free think you expect that's next what sort three So overall early mid-teens. should quarters.

Keith Bachman

Terrific. Many Okay. Great. thanks.

Vanessa Kanu

you. Thank

Operator

you. Thank

question next from comes from Fargo. of Wells the line Willi Tim Our

Your please. question,

Tim Willi

you. My Good and question morning to not ask and little Jeff, I some the as congratulations, time becomes is? share terms staring builds Thank wanted prospect the winning the all of bit whatever with Tien-Tsin's. share help team. about with expanding I But with of there business things of Vanessa a wallet guess And and sort customers engagement us deal of existing the so a upon of and the new a wins the bit versus being business in growth of Anything inside just pandemic the focus around think some priority thinking of new retention expansion? change wallet little be a people about see screen at and business, your are the maybe prospect people there is and that in or of engagements and nature. that, the of you surge onboarding in their may emerging in of more a just more do of verticals in it abating their customers about a bit of sort priorities and around to sort conversations surge little retention a

Jeff Puritt

good a question, It's Tim.

nature have persists concern health heavily of in elongated working the of that considerations at weighed more and of was the that throughout majority a even pandemic the regarding imagine, late vast you As and home significant given there engagement are folks mental given just the might pandemic. virtualized environment

the is not business enjoyed as retention and them retention a many I've optionality of our was to attributes because think employment for whilst frankly read there some our and same always seen alternative improved consider. concern. of I peers And

the abates, return anticipate we attrition. absolutely pandemic probably As around that levels we'll to pre-pandemic

stay too at return virtualization support implications the Do crossed what a Rubicon of to reliably thinking can about on for is still brick-and-mortar We centers? happens because basis. concerns back virtualized privacy, we performance really home most we so post-pandemic. are customers that delivery folks And our considerations finally all the Do expectations confidentiality, purpose? fit without recognized for customer productivity and now our

the most this just -- ebb us. and of workforce. we do what post-pandemic this attracting, So engaging inspiring, for challenge. is done new of is retaining, is on are kind think of have This the And is pre; not day to I dynamics the be part every flow and focused the talented

Operator

Thank you.

from Our next Dan RBC question comes Markets. Capital from line Perlin of the

question Your please.

Dan Perlin

little you. mentioned and and quarter everyone, congratulations with this million was fantastic? bit basis. to thinking maybe any funnel that's I out, be about would results a $X you you I I a the the into over funnel billion, and sales start really on a business revenues how color about of but is talked there guys was inside had the going trust -- over hoping Thank $XXX just about the morning, year-over-year maybe nature time. good we you that be I on as up strong really could Good conversion talk -- Great. first the a know here. should practice safety

Jeff Puritt

thanks So Dan.

anticipating all us little we see was fourth year saw shared that's the to the and very It's Vanessa to across assuming that But or I as the suggest were progress targeted still exciting in in this quarter of are bit of pick latter the a half very, comments don't all our travel going of As laggard. that we of God a forbid. hospitality board. us verticals. earlier fifth wave growth to up first the for a see Admittedly start really we think across that seeing

similarly reflective little I'll regard. a of excited about across verticals. pretty funnel, sales our talked to conversion of the exciting similar even We're that remarks our rate, effort our that, feeling opportunities first targeted and And one-third bit better the once it a to that of capture the of closing to ZIP prospectively. of guided probability we've in in in pretty We the funnel that convert if respect we're being same seeing sort sales pass, my pretty of you know terms will conversion is And rate conversion upside opportunity all to the in with dynamic. the percentile specifically continue potential or to bit capability In code rates. don't talk that terms but little in weighting that go rate I and about XX of strong, about the

Dan Perlin

Excellent. Thank you.

Jeff Puritt

Dan. Thanks

Operator

you. Thank

Our from comes and from next Shirvaikar question of the line Citi. Ashwin

question Your please.

Ashwin Shirvaikar

congratulations out well or expanded those design build possible is to about about. towards axis, should quantify along that it logo ones. particular think as distributed? the me somehow Does it one ask on public to from talked deliver or the And earnings, which new break I wins the relationships fairly of good lean you. this? axis? any your How perhaps evenly Is first it wanted and are you Thank

Jeff Puritt

offer on more like particular. I'd this you specificity to So Ashwin for topic in

want to the As granularity. think as incremental of best you quarters a when get under time I level, still and much now to team But We as and about early bit higher belts until might prefer of a we public a we provide thought Vanessa a as bit imagine to couple fair We our and days be to as spent we you and possible. talking new the helpful remain have if right issuer. it's how.

of in its more existing the Again expect digital customer you our growth is continuing, opportunities a was for extraordinary to Games to particular, again see the we're growth guidance. sector and And you balanced flattered on given the obviously, Vanessa's Lionbridge doing lot that Tech comments we're but should where services. in I on with enabled in provided by admittedly what think a terms good It and fairly base AI predominance of that part contribution customers. prospective little located.

Ashwin Shirvaikar

Understood. Thank you.

Operator

you. Thank

comes Our Paul line of from the Steep Scotiabank. from next question

please. question Your

Paul Steep

Congratulations morning. of reopening and on Jeff, your they've Internet first good and social focus little Great, maybe other bit last here on But things. public quarter. commented customer in -- media couple your the leaders, increased about support. quarters about lots we've talked a talk

on on in the in TI? for weigh So tech sector your maybe opportunity Thanks. could the engagement broader driving views you even by

Jeff Puritt

your I it trouble for understand question sure I you perhaps not Paul. I'm to me? fully Can restate

Paul Steep

Sure. focus the moderation. I on focused of -- focus lots people call guess and on content there's been a

moving had but about beyond clients people just of market trust and into comment I think the your in being areas moving moving couple of key we've moderation -- content support a other And potential looking even for already to to got and I expand building maybe out further engagements? you where further. relationships was I the on for guess that you've those customer even you deepen

Jeff Puritt

So the near-term adjacency annotation. obvious for us to moderation content is data

we're objectionable is right? from identifying than reach extent in more moderation web and the supporting So that removing our to way. just content to extend also content more ensure the our to looking right up effectively, the time right audience to the that ad that appears Content it the moderation right it's is curating at proximate to content customers in appropriate served content

more there's the we supporting expand capable being that's ever data annotation, on capability you mod machine the those AI data optimize learning is which content content optimize more that and customers search So ensure extend ad that in go your is prospectively the into really through ultimately to being way to front that that opportunity train don't used to our believe up delivered placement results the algorithms customer that that your is base. that have underpinning bias

punch and So the customers selling synergy relatively customers but we've for seen boy, new data exciting potent still already And together this for between LAI, because our fantastic annotation. represents that it's share boy probably moderation business. days content it's really ourselves and/or whether oh us, more to next and most of of realization winning one-two early horizon together

Paul Steep

you. Thank

Operator

Thank you.

question Our of CIBC. the next Stephanie from Price line from comes

please. question Your

Stephanie Price

and morning results. the congrats Good on

little growth that Lionbridge's the of and Paul's could that it, the on So bit business my around a you're about And you if integration touched expecting contribution we question think Maybe little a you kind bit, should expand business. in a in of of but the bit. follows-on how quarter.

Jeff Puritt

hear nice Thanks the your Stephanie question. Hey voice. for to

the we're But said, I with the I I do progress farther But always shared perpetual and fit having the of As with really, across customers I alignment a days, LAI yet may integration Group. pretty faster said a perhaps natural with and early shared leadership coming TI synergy data go, the wins quo. very coming of as customers recall, better. to and next, can status instance. excited annotation thesis our see that terms from we community Mr. really underpinned about the the Entwhistle what's as about think days. I family. importantly something previously, And It of our from prospectively. pleased entirety acquisition inherited even cultural business part at feels just already in And the most date. with dissatisfaction the think the I of like before, contribution validating mean, you the we're sort to strategy, I'm optimistic new very, early exciting it's still exciting, better conversations, the with again our equally first I

Operator

you. Thank

from comes Daniel Chan next Our question of TD Securities. the from line

please. question Your

Daniel Chan

on Oh, and morning Good hi. congratulations good the first quarter.

a your customers if you're public interest attract that company, any even just existing from new talent in wondering now I'm your changes you've and team? seen your So to discussions maybe with to any customers, ability

Jeff Puritt

appreciated. beyond existing obviously question, of our where I'm talked, was perspective we bigger we customer are just the existing issuer niceties appetite with to absolutely new But us. and seeing customers sure the which the had I've about IPO go from Excuse a with me. Dan. time specifically not Good any conversations at public status,

around have not surprising, surprisingly, And given issuer level are for higher we risk expectations think of and there as for on I so long it service and was us expected, a And obvious and consideration. I'm being destination customers no before would was and equally well. levels not two of months a confidence TELUS barely public higher that. I And And for ago. our vendor to family think Commercial between that correlations, not talent. we And forth. will an less appreciated, a are a near-term surprisingly, again, scale but delivery great the International Chief joined confess warranties of But be answer joining choice that, visibility. the so ability Vanessa just in grateful pleased for part of to attracted her example we're of although, that sure not likelihood it IPO, Officer, the as IPO just who

customers. we for terms mean, in excited more of about attractive represented what for we're both for will us. So and to prospectively, what a continue that being And destination that talent

Daniel Chan

you. Great. Thank

Operator

Thank you.

next from comes Cabral Our of question line Credit Matt Suisse. the from

Your question please.

Matt Cabral

Yeah. morning you and good everyone. Thank

speak Maria in approach your in So to just hire you could if ambitions we little to historically? go-to-market Jeff, forward? wondering, guys with more how continue sales presumably bit of team. mentioned a And logos relative been going I'm you you Commercial you operating forward, the just And the just about new reps talk should have part of as the just more Chief March. EBITDA needed to the think strong investment growth now the your some support that Officer about broadly to target maybe at going profile

Jeff Puritt

very thanks joining. Matt, much for Good question.

we talked that for our to recall may to IPO well with to absolutely opportunity and an during capability direct as recognize a is augment we both strategy. this me there channel roadshow as the as a bit You continue robust a about well. need amplify that, sales sales And more

to we growing exciting around And materially consequence, Maria joined, particularly on is support. digital sales we her and to this selling This continuing before why sales of and role credentials, her since was already organization in Maria hunters, on reasons the is, of really the started in sales scaling experience and have both, me attractive the so One sales feet solutioning investment in pedigree effort solutions. that street farmers, creates support, sort a that short-time even our increase profile the of margin inside out engine ensure on to without plan can as that we adversely of our we you upon expectations our meet point enjoy, need more and that, word-of-mouth achieve the in But historically, recognize that prospectively, to growth sales the scale we that. profile headroom correctly part profitability we to forecast. solid appropriately invest overall we've because I to think insufficiently dynamic have our affecting just relied the

Matt Cabral

you. Thank

Vanessa Kanu

investments that add sales would only does is And that and the Matt capture, I guidance the that, we there already Jeff marketing talking to. provided

So that's the we've in numbers provided. that already

Matt Cabral

Thank Perfect. both. you

Operator

Thank you.

from question next the from comes Our of Baird. line Koning Dave

Your question please.

Dave Koning

fast an make now? grows yet When kind of fast guys. you you ask, haven't it specifically, to it growing grow such ran in maybe how future? the once How you I you thanks seem done do better? take fast acquisition a do can How in And could I job. guess, it that so over? good done you it I wondering, make to you right Hey I that Lionbridge was But guess And fully, think like to you've you grow is what yeah. well. You've expect how maybe, right? just is do Oh I QX? grow realize Lionbridge just acquisitions And the these acquisition. do And

Jeff Puritt

of and did as you I mean is haven't into the parameters businesses that think more we versus the these referenced we So of if integrate effective business think thesis as really new what to with obvious we customers becomes And earlier, as into around a the already having of it contact, I can. difficult synergies much is our integrated content the us prefer integration identify, that said CCC. of business. obvious of we old I will around more we specifically byproducts meaningful the one we're are part deal offering, annotation as Because for it's And we a ought whole. to revenue it and Lionbridge, divisions again, moderation that to than adjacencies have rather point to with buying disparate expedited more consequence offering quickly. investment the the business. mothership of nor around Because guided be realizing as the before business of the of a more single quickly integrating Lionbridge

the serve years amplify capability and the date ahead. winning not terms but growth in in better successfully We joint together. to I'm shared are we mentioned of pleased our that planning if Again, as we to progress can better and continuing the new in-year, do earlier, ones together account of prospectively do existing to with selling customers will trajectory I

Dave Koning

Thank you.

Operator

you. Thank

comes Faucette question from of Morgan line next Our Stanley. James the from

please. question, Your

James Faucette

we've to over Hey, Jeff, a you've in times on I – all ask commentary. that of and of seen good just the it and Vanessa, wanted a thanks morning, flows to the alluded for lot terms couple ebbs and and Jeff color the pandemic.

around With some to manage to to And that? the all that Thanks going is other at try or is any likely to recent being to disruption that how things cause have surge, do delivery? lot. a we if of? are be from where delivery impacting things to you And sourced should move is most aware that

Jeff Puritt

Hey, James, question. the thanks for

Obviously, job I six particular, team et members as at that frontline had do some to so unnatural or So were for infrastructure, in in think challenges terms frontline in cetera. of best, Prospectively, recognizing connectivity, don't of of weeks And don't we I prospectively. hoping think power, effective our we're stabilizing initially, going India. real all to the now think pandemic, is that. members tenterhooks right but challenged anything our things we for into outset the have XX brought implications, And particularly to living scrambled of did that of team areas we a were for we've the virtualize, it, I under is are area unfortunately quickly. only effectively remarkably control months. on that there get some And concern us been if operating think catastrophic potentially I like

redundancy we our India. proactively not we're for confident in obviously has a before of successfully whilst them India. and in continuity ensure already we're members And continuity I that ensuring hopeful today provide said, support are all we're can by continue as that their fortunately, served delivery to homes and they aggressively, customers members to from And safely circa total one are prospectively. is our and of A, to sub-X,XXX that Every us in ability X,XXX team reasonably we that. have For been productively capability working the hope footprint from do business team being and meaningful the that plan,

James Faucette

hear. Good. Good to Thanks.

Jeff Puritt

Thank you.

Operator

you. Thank

Shirvaikar, a from question the follow-up comes next Ashwin Our line of Citi. from

question, please. Your

Ashwin Shirvaikar

Hi.

cadence expectation I sharing Would we year a look you of through growth your is Sorry, and one as mind. is don't I out? for to This you mind so I the question, hope second queue. Vanessa. directed what the jumped back margins the had in

Vanessa Kanu

you're quarterly suspect So I asking for some breakdown. of kind

year and year not guiding full have us. Ashwin. so guidance that with full We've start. a quarter-by-quarter the we're to time Corporation, place a think to We guidance very The next want in at We're bullish this this time is year company, the well. – start obviously consistent parent the disclosure store practice year. is we've we for not had provided for full for the honor tremendous we're also So our the TELUS three what at good as view of quarters to

breaking I in We full quarter-by-quarter. terms I'm already going get down year have of to So QX. the think more granular don't

venture. potential first thought probably XX% about think, And the probably as think of I XX% the can half. kind balance will year, I seasonality the that's you to we second our far in at in but look I as is talk if half, the

Ashwin Shirvaikar

for top line Sorry. or bottom that Was line?

Vanessa Kanu

top For line.

Ashwin Shirvaikar

Thank you. Okay.

Operator

does This conclude program. you. session program to question-and-answer Mr. Puritt of today's back remarks. Thank the for further hand I'd like the to any

Jeff Puritt

I thank the part your is large to team the and creativity and Jonathan unparalleled reiterate much you just the our very resiliency for business capabilities members. commitment model questions. in Thanks of everyone to diversity and and of our success believe of In to closing, our I'd like due that, digital

of from In our experience onboard. Our and presence transformation that of a we I excited our digital leading efforts And just Maria and sales capability, growth Chief wealth of Maria recently broadly Pardee is Officer. benefit in to as already also International, have sales and continues revenue brings palpable. so our marketing her as result the accelerating tailwinds announced expand joined her digital TELUS impact we're very commercial Commercial to a mentioned. this transformation growth and to regard, and more as

Our Games efficiently, enhance our revenue clients partner profitability. amplify all position quickly our further will and We've attractive continue increase highest & proven once acquisition residing enable joining and we you and type offerings. in to mission-critical these Once differentiate the today. to growth, debt have a the ensuring of growth our right offerings flexibility of again growth to service thank delever to us for to organic the double-digit more for some be and our mix Tech client industries, notably as digital diverse able to

I Annual hosting of of Shareholders XX. place taking May virtually you General on to forward Directors Board look at Our and Meeting our

held you I for and also at keep call next In lastly, and forward upcoming Thank being and Vanessa all on Additionally, we safe. many hosting near-term. much look family meeting interim, all. you are course shareholder of our the at to the quarterly And conferences. events goodbye investor the to of again yourselves July. several once very end virtually forward results of please our look your These

Operator

ended. has call conference Thank you. The

disconnect. now may You

TELUS International (TIXT) 9 May 212021 Q1 Earnings call transcript