TDCX reports 22.5% jump in Q1 2023 profit to US$20.5 million

NEW York Stock Exchange-listed TDCX reported a 22.5 per cent growth in Q1 2023 profit to US$20.5 million, from US$16.7 million in Q1 2022.

Revenue for the quarter rose 8.2 per cent to US$124.3 million from US$114.9 million the year prior. This was mainly driven by a 23.2 per cent increase in revenue from sales and marketing services to S$44 million in Q1 2023, from S$35.7 million in Q1 2022.

The increase was partially offset by a decline in revenue in the content, trust and safety segment. That fell 17.3 per cent to S$21.8 million in Q1 2023 from S$26.4 million in Q1 2022.

The company also had a one-off reversal of share-based employee compensation of US$3.9 million. But employee benefits expense still grew 2.1 per cent to S$106.1 million in Q1 2023 from S$103.9 million in Q1 2023 on higher employee headcount.

In its push to diversify its sources of revenue, this provider of customer-support solutions grew its client base by 55 per cent, from 55 clients as at Mar 31, 2022 to 85 clients as at Mar 31, 2023. The company became less reliant on revenue from its top five clients, which jointly accounted for 76 per cent of its revenue in Q1 2023, down from 83 per cent in the year-ago quarter.

Laurent Junique, the company’s chief executive officer and founder, said: “Our efforts to deepen our support for existing clients are also showing results, as revenue from clients outside our top five rose 45 per cent year on year.”

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The company opened its Jakarta, Indonesia operation in January. TDCX also launched a new campus in São Paulo, Brazil, its 29th globally, in May 2023.

“Given market uncertainties, we are seeing more emphasis for stronger performance and greater productivity among our clients. Hence, we are focused on adding value to our clients by helping them solve their strategic customer-experience challenges,” said Junique.