TDCX Q3 profit up 46.7% on strong revenue growth

SINGAPORE business process outsourcing provider TDCX logged a 46.7 per cent increase in profit to S$30.2 million for the three months ended September, on strong revenue growth across all business segments.

Earnings per share for the quarter stood at S$0.24, up from S$0.17 in the year-ago period, the US-listed company said in a bourse filing on Wednesday (Nov 24) - its first earnings update since going public.

TDCX reported a 41.3 per cent increase in revenue for Q3 2021 to S$148.8 million. In particular, revenue from sales and digital marketing solutions for the quarter jumped 93.4 per cent to S$32.4 million, which the company attributed primarily to the expansion of existing campaigns for its digital-media clients across Asia.

Revenue from omnichannel customer experience solutions grew 37.9 per cent year on year to S$92.8 million for the quarter. Business volumes benefited from the nascent recovery in the travel and hospitality sector, the company said. It also noted higher demand from fintech and gaming clients, as well as other new economy clients across Asia.

Revenue from content monitoring and moderation services went up by 7.1 per cent to S$21.2 million, it said, attributable primarily to "higher contribution from a social media client".

Clients of TDCX, which stands for "Transformative Digital Customer Experiences", include Facebook and Airbnb.

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TDCX expects full-year revenue to stand between S$549 million and S$553 million, representing growth of approximately 26.7 per cent at the midpoint, and Ebitda (earnings before interest, taxes, depreciation and amortisation) margins of between 31.7 per cent and 32.2 per cent.

The company's founder and chief executive Laurent Junique said his company had achieved record revenue growth through "disciplined decision-making and long-term approach to driving quality growth".

TDCX debuted on the New York Stock Exchange on Oct 1, raising around US$400 million in its initial public offering. It is the second Singapore firm to list in the US since e-commerce group SEA's debut in 2017.

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