TDCX Q4 net profit rises 7% on higher revenue

SINGAPORE-HEADQUARTERED TDCX, a digital customer experience (CX) services provider, reported on Wednesday (Mar 9) a 7 per cent increase in net profit for its fourth quarter on the back of higher revenue.

Net profit for the 3 months ended Dec 31, 2021 rose to S$28.8 million, from S$27 million during the same period a year earlier.

The company, which listed on the New York Stock Exchange last October, also reported revenue growing 28.8 per cent on year to hit S$154.8 million in the fourth quarter.

The higher revenue came on the back of growth across its various services, including a 23.6 per cent increase in revenue from providing omnichannel CX solutions, and a 71.8 per cent rise in revenues from providing sales and digital marketing services.

Omnichannel CX solutions remained the company's largest revenue contributor, accounting for 62.1 per cent of revenue in the fourth quarter of 2021.

For the full year, revenue was up 27.7 per cent from S$434.7 million in FY2020, to S$555.2 million in FY2021.

Net profit also rose 20.6 per cent on year to S$103.8 million in FY2021. On a per share basis, full-year earnings improved to S$0.81 from S$0.70 in 2020.

Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) margins improved to 33.3 per cent in 2021, from 32.9 per cent in 2020.

"We end the year on a high note with record revenue and earnings," said chief executive Laurent Junique in a statement.

He noted that the company had welcomed its highest number of new clients in a year from high-growth sectors, and had also expanded into new geographies with a larger headcount.

As at end-December 2021, TDCX had 52 clients, up from 38 a year earlier. The company opened a new South Korea office in the fourth quarter, with 3 projects launched. It also had its first revenue contribution from Romania, India and South Korea during the fourth quarter.

Junique said that TDCX's "ability to solve complex customer experience challenges for new economy players and to help established firms transform their customer experiences" would provide them with an even stronger foundation for growth.

In terms of outlook, TDCX expects revenue for 2022 to be between S$689 million and S$702 million, which represents 25.3 per cent year-on-year growth at the mid-point. It expects adjusted Ebitda margins to be between 30 and 32 per cent in 2022.

TDCX shares closed at US$12.22 in New York on Tuesday, down 9.5 per cent.