TDCX Q3 earnings up 2.3% at US$21.6 million; reiterates full-year guidance
Uma Devi
NEW YORK-listed digital customer solutions provider TDCX on Tuesday (Nov 22) reported earnings of US$21.6 million for the third fiscal quarter ended September, up 2.3 per cent from earnings of US$21.1 million in the corresponding year-ago period.
The stronger bottom line figures were chiefly due to a 16.1 per cent increase in revenue to US$120.5 million from US$103.8 million. The group attributed this to a 13 per cent rise in contributions from the provision of omnichannel Customer Experience (CX) solutions to US$70.4 million, as well as a 32.2 per cent jump in revenue from providing sales and digital marketing services to US$29.8 million.
For CX solutions, the group added that business volumes of its key travel and hospitality clients continued to gain recovery momentum following the reopening of borders during the first half of the year.
Revenue from the content, trust and safety services segment increased 6.4 per cent to US$19.6 million, while revenue from other service fees was up 38.5 per cent at US$0.7 million.
TDCX said revenue contributions from new economy clients stood at 93 per cent for the first nine months of the year. The company said it had also signed 31 new logos so far this year, versus 20 logos in the year-ago period.
On the expenses front, TDCX booked a 29.7 per cent increase in employee benefits expenses to US$78.3 million on the back of a higher employee count, employee wage adjustments and cost of living inflation, as well as the share-based payment expense arising from the implementation of the company’s performance share plan in November last year.
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The group said its average employee count in Q3 was up 24.5 per cent year on year, as a result of business volumes expansion of current campaigns and staffing requirements of new campaign launches in the first half of the year.
TDCX also reiterated its full-year outlook, but narrowed the range of certain targets. The company’s revenue range for 2022 has been revised to between S$655 million and S$670 million, from the previous range of S$650 million to S$675 million. The mid-point, however, remains unchanged at S$662.5 million.
For revenue growth on a year-on-year basis, TDCX has narrowed its target range to between 18 per cent and 20.7 per cent, from a range of 17.1 per cent to 21.6 per cent previously. The mid-point stays unchanged at 19.3 per cent.
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The group’s adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) margin target is unchanged at 30 per cent to 32 per cent.
Laurent Junique, chief executive of TDCX, said the company’s global expansion plans continue “unabated” with the addition of two new campuses, one in Iloilo in the Philippines, and another in Istanbul, Turkey.
“This brings us to a total of 27 campuses globally as we continue building our network. We also see greater contribution from our four newer geographies, namely Colombia, India, Romania and South Korea, making up close to 10 per cent of the year-on-year growth in revenue for Q3 2022 against Q3 2021,” he said.
Shares of TDCX closed at US$11.49 on the New York Stock Exchange on Monday, down 1.7 per cent or US$0.20.
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