TDCX Inc. (NYSE: TDCX) (“TDCX” or the “Company”), an
award-winning digital customer experience (CX) solutions provider
for technology and blue-chip companies, today announced its
unaudited financial results for the fourth quarter and full year
ended December 31, 2022.
Full Year 2022 Financial Highlights
- Total revenue of US$493.9 million, up 19.6% year-on-year
- Profit for the period was US$78.0 million, up 1.1%
year-on-year
- Adjusted Net Income1,4, which excludes the impact of
share-based compensation for a like-for-like comparison with the
prior year, was US$92.5 million, up 14.1% year-on-year
- Net Cash from Operating Activities of US$123.0 million, up
59.3% year-on-year
Fourth Quarter 2022 Financial Highlights
- Total revenue of US$131.4 million, up 14.2% year-on-year
- Profit for the period was US$18.6 million, down 13.3% from
US$21.5 million in the same period last year, due largely to a
foreign exchange loss of US$4.5 million recorded during the quarter
with the depreciation of the US dollar
Mr. Laurent Junique, Chief Executive Officer and Founder of
TDCX, said, “Despite the challenging year, we remained steadfast in
executing our growth strategy and achieved our growth expectations,
with an almost 20 per cent increase in revenue year-on-year. We
doubled the number of new logos signed up in 2022 and are seeing
increased revenue contribution from our newer markets, such as
India, Korea and Türkiye.
“While the economic challenges we saw last year are expected to
have a spillover effect into 2023, we are focused on strengthening
our capabilities through our network expansion strategy and
initiatives to deepen our relationship with our clients, such as
the launch of our Digital CX Center of Excellence in Singapore. The
Center will enable us to provide more dedicated strategic advisory
to our clients – an area that we are seeing increased interest in –
to help solve their CX challenges. Such client requests demonstrate
the strategic role that CX plays in the future economy and our
sector's potential.
“With the COVID-era largely behind us, we are optimistic about
the continued recovery of sectors such as travel and hospitality
and markets such as China. We are confident that our strategy of
pursuing growth while ensuring stability will continue to create
value for our clients and other stakeholders.”
(US$ million, except for
%)2
FY2021
FY2022
% Change
Q4 2021
Q4 2022
% Change
Revenue
412.9
493.9
+19.6%
115.1
131.4
+14.2%
Profit for the period
77.2
78.0
+1.1%
21.5
18.6
-13.3%
Adjusted Net Income1,4
81.1
92.5
+14.1%
25.3
21.7
-14.5%
Adjusted EBITDA1,3
137.6
148.6
+8.0%
40.1
34.9
-13.1%
Adjusted EBITDA
Margins1,3
(%)
33.3
%
30.1
%
34.8
%
26.5
%
Business Highlights
Strong Client Additions
- Signed up 415 new logos in 2022, 105% higher than the 20 logos
in 2021
- 846 launched clients7 as of December 31, 2022, a 62% increase
as compared with 52 launched clients as of December 31, 2021
- 92% revenue contribution from new economy8 clients for
2022
Continued Geographic Expansion as a key strategic
priority
- Expanded to 16 geographies as of December 31, 2022
Full Year 2023 Outlook
For the full year 2023, TDCX expects its financial results to
be:
2023 Outlook
Revenue growth (YoY)
Range: 3% - 8%
(On a constant currency
basis1,9)
Adjusted EBITDA margin1,3
Approximately 25% - 29%
_____________________
1 Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income,
Adjusted Net Income margin, revenue at constant currency and
revenue growth at constant currency are supplemental non-IFRS
financial measures and should not be considered in isolation or as
a substitute for financial results reported under IFRS (see
"Reconciliation of non-IFRS financial measures to the nearest
comparable IFRS measures" in the Form 6-K or presentation slides
for more details). 2 FX rate of US$1 = S$1.3446, being the
approximate rate in effect as of December 31, 2022, assumed in
converting financials from SG dollar to US dollar. 3 Adjusted
EBITDA represents profit for the period before interest expense,
interest income, income tax expense, depreciation expense and
equity-settled share-based payment expense incurred in connection
with our TDCX Performance Share Plan (the “Performance Share
Plan”), which was adopted on August 26, 2021 and allows us to offer
Class A ordinary shares or ADSs to our employees, officers,
executive directors and consultants. “Adjusted EBITDA margin”
represents Adjusted EBITDA as a percentage of revenue. 4 “Adjusted
Net Income” represents profit for the period before equity-settled
share-based payment expense incurred in connection with our
Performance Share Plan, net of any tax impact of such adjustments.
“Adjusted Net Income margin” represents Adjusted Net Income as a
percentage of revenue. 5 Includes 9 additional logos attributable
to the acquisition of our previous Hong Kong associated company
into a wholly-owned subsidiary on October 13, 2022. 6 Includes 9
additional clients attributable to the acquisition of our previous
Hong Kong associated company into a wholly-owned subsidiary on
October 13, 2022. 7 “Launched client” refers to launched campaigns
that are revenue generating. 8 “New economy” refers to high growth
industries that are on the cutting edge of digital technology and
are the driving forces of economic growth. 9 Revenue at constant
currency is calculated by translating the revenue of our local
subsidiaries in each period in the respective local functional
currencies to the Group’s presentation currency, using the average
currency conversion rates in effect during the comparable prior
period, rather than at the actual currency conversion rates in
effect during that period. We have not reconciled non-IFRS
forward-looking revenue growth at constant currency to its most
directly comparable IFRS measure, as permitted by Item
10(e)(1)(i)(B) of Regulation S-K. The revenue growth outlook
indicated for 2023 is calculated and presented at constant
currency, as it would require unreasonable efforts to predict
factors out of our control or not readily predictable, such as
currency exchange movements over the course of an entire year.
Webcast and Conference Call Information
TDCX senior management will host a conference call to discuss
the fourth quarter 2022 unaudited financial results.
A live webcast of this conference call will be available on
TDCX’s website. Access information on the conference call and
webcast is as follows:
Date and time:
March 7, 2023, 7:30 PM (U.S. Eastern Time)
March 8, 2023, 8:30 AM (Singapore / Hong Kong Time)
Webcast link:
https://events.q4inc.com/earnings/TDCX/Q4-2022
Dial in numbers:
USA Toll Free: +1 855 9796 654 Singapore: +65 3163 4602 UK Toll
Free +44 0800 640 6441
United States (Local): +1 646 664 1960 Hong Kong: +852 580 33
413 All other locations: +44 20 3936 2999
Participant Access Code:
598306
A replay of the conference call will be available at TDCX’s
investor relations website (investors.tdcx.com). An archived
webcast will be available at the same link above.
About TDCX INC.
Singapore-headquartered TDCX provides transformative digital CX
solutions, enabling world-leading and disruptive brands to acquire
new customers, to build customer loyalty and to protect their
online communities.
TDCX helps clients achieve their customer experience aspirations
by harnessing technology, human intelligence and its global
footprint. It serves clients in fintech, gaming, technology, home
sharing and travel, digital advertising and social media, streaming
and e-commerce. TDCX’s expertise and strong footprint in Asia has
made it a trusted partner for clients, particularly high-growth,
new economy companies, looking to tap the region’s growth
potential.
TDCX’s commitment to delivering positive outcomes for our
clients extends to its role as a responsible corporate citizen. Its
Corporate Social Responsibility program focuses on positively
transforming the lives of its people, its communities and the
environment.
TDCX employs more than 17,800 employees across 28 campuses
globally, specifically Singapore, Malaysia, Thailand, Philippines,
Mainland China, Hong Kong, South Korea, Japan, India, Romania,
Spain, Colombia, Türkiye and Vietnam. For more information, please
visit www.tdcx.com.
Convenience Translation
The Company’s financial information is stated in Singapore
dollars, the legal currency of Singapore. Unless otherwise noted,
all translations from Singapore dollars to U.S. dollars and from
U.S. dollars to Singapore dollars in this press release were made
at a rate of S$1.3446 to US$1.00, the approximate rate in effect as
of December 31, 2022. We make no representation that any Singapore
dollar or U.S. dollar amount could have been, or could be,
converted into U.S. dollars or Singapore dollar, as the case may
be, at any particular rate, the rate stated herein, or at all.
Non-IFRS Financial Measure
To supplement our consolidated financial statements, which are
prepared and presented in accordance with IFRS, we use the
following non-IFRS financial measure to help evaluate our operating
performance:
“EBITDA” represents profit for the year/ period before interest
expense, interest income, income tax expense and depreciation
expense. “EBITDA margin” represents EBITDA as a percentage of
revenue. “Adjusted EBITDA” represents profit for the year/ period
before interest expense, interest income, income tax expense,
depreciation expense and equity-settled share-based payment expense
incurred in connection with our Performance Share Plan. “Adjusted
EBITDA margin” represents Adjusted EBITDA as a percentage of
revenue.
“Adjusted Net Income” represents profit for the year/ period
before equity-settled share-based payment expense incurred in
connection with our Performance Share Plan, net of any tax impact
of such adjustments. “Adjusted Net Income margin” represents
Adjusted Net Income as a percentage of revenue.
Revenue at constant currency is calculated by translating the
revenue of our local subsidiaries in each period in the respective
local functional currencies to the Group’s presentation currency,
using the average currency conversion rates in effect during the
comparable prior period, rather than at the actual currency
conversion rates in effect during that period.
We believe that EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted
EBITDA margin, Adjusted Net Income, Adjusted Net Income margin,
revenue at constant currency and revenue growth at constant
currency help us to compare our operating performance on a
consistent basis by removing the impact of items not directly
resulting from our core operations, and thereby help us to identify
underlying trends in our operating results, enhancing our
understanding of past performance and future prospects.
The above non-IFRS financial measures have limitations as
analytical tools and should not be considered in isolation or
construed as an alternative to revenue, net income, or any other
measure of performance or as an indicator of our operating
performance. The non-IFRS financial measures presented here may not
be comparable to similarly titled measures presented by other
companies because other companies may calculate similarly titled
measures differently. For more information on the non-IFRS
financial measures, please see the form 6-K section captioned
“Non-IFRS Financial Measures” or the presentation slides.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. In some cases,
you can identify these forward-looking statements by the use of
words such as “outlook,” “believes,” “expects,” “potential,”
“continues,” “may,” “will,” “should,” “could,” “seeks,” “predicts,”
“intends,” “trends,” “plans,” “estimates,” “anticipates” or the
negative version of these words or other comparable words. Among
other things, the outlook for the full year, the business outlook
and quotations from management in this announcement, as well as the
Company’s strategic and operational plans, contain forward-looking
statements. The Company may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the “SEC”), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company’s beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: the performance of TDCX’s largest
clients; the successful implementation of its business strategy;
its ability to compete effectively; its ability to maintain its
pricing, control costs or continue to grow its business; the
effects of the novel coronavirus (COVID-19) on its business; the
continued service of its founder and certain of its key employees
and management; its ability to attract and retain enough highly
trained employees; its exposure to various risks in Southeast Asia;
its contractual relationship with key clients; clients and
prospective clients’ spending on omnichannel CX solutions; its
spending on employee salaries and benefits expenses; and its
involvement in any disputes, legal, regulatory, and other
proceedings arising out of its business operations. Further
information regarding these and other risks is included in the
Company’s filings with the SEC. All information provided in this
press release and in the attachments is as of the date of this
press release, and the Company undertakes no obligation to update
any forward-looking statement, except as required under applicable
law.
UNAUDITED CONDENSED INTERIM CONSOLIDATED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the three months ended
December 31,
2022
2021
US$’000
S$’000
S$’000
Revenue
131,393
176,671
154,763
Employee benefits expense
(85,386
)
(114,810
)
(97,674
)
Depreciation expense
(7,937
)
(10,672
)
(9,605
)
Rental and maintenance
expense
(2,001
)
(2,690
)
(2,092
)
Recruitment expense
(2,532
)
(3,404
)
(3,340
)
Transport and travelling
expense
(495
)
(666
)
(476
)
Telecommunication and technology
expense
(2,433
)
(3,271
)
(2,493
)
Interest expense
(408
)
(549
)
(1,964
)
Other operating expense
(7,044
)
(9,472
)
(2,548
)
Share of profit from an
associate
3
4
23
Interest income
1,061
1,426
251
Other operating income
294
395
2,551
Profit before income
tax
24,515
32,962
37,396
Income tax expenses
(5,914
)
(7,952
)
(8,550
)
Profit for the period
18,601
25,010
28,846
Item that will not be
reclassified to profit or loss:
Remeasurement of retirement
benefit obligation
687
924
276
Item that may be reclassified
subsequently to profit or loss:
Exchange differences on
translation of foreign operations
(12,033
)
(16,179
)
(2,824
)
Total comprehensive income for
the period
7,255
9,755
26,298
Profit
attributable to:
- Owners of TDCX Inc.
18,601
25,010
28,846
- Non-controlling interests
-
-
-
18,601
25,010
28,846
Total
comprehensive income attributable to:
- Owners of TDCX Inc.
7,255
9,755
26,298
- Non-controlling interests
-
-
-
7,255
9,755
26,298
Basic earnings per share (in US$
or S$) (1)
0.13
0.17
0.20
Diluted earnings per share (in
US$ or S$) (1)
0.13
0.17
0.20
_______________________________
(1) Basic and diluted earnings per
share
For the three months ended
December 31,
2022
2021
Weighted average number of
ordinary shares for the purposes of basic earnings per share
144,921,462
144,542,344
Weighted average number of
ordinary shares for the purposes of diluted earnings per share
144,921,462
144,646,728
The translation of Singapore Dollar
amounts into United States Dollar amounts (“USD”) for the unaudited
condensed interim consolidated statement of profit or loss and
other comprehensive income above are included solely for the
convenience of readers outside of Singapore and have been made at
the rate of S$1.3446 to US$1.00, the approximate rate of exchange
at December 31, 2022. Such translations should not be construed as
representations that the Singapore Dollar amounts could be
converted into USD at that or any other rate.
Comparison of the Three Months Ended December 31, 2022 and
2021
Revenue. Our revenue increased by 14.2% to S$176.7
million (US$131.4 million) for the three months ended December 31,
2022 from S$154.8 million for the three months ended December 31,
2021 primarily driven by a 40.7% increase in revenue from sales and
digital marketing services followed by omnichannel CX solutions
services rendered.
- Our revenue from omnichannel CX solutions increased by 6.6% to
S$98.5 million (US$73.2 million) from S$92.3 million for the same
period of 2021 primarily due to higher business volumes driven by
the expansion of existing campaigns by clients in the travel and
hospitality, and technology verticals, partially offset by a
decrease in demand from existing clients in the digital advertising
and media vertical.
- Our revenue from sales and digital marketing services increased
by 40.7% to S$48.9 million (US$36.4 million) from S$34.8 million
for the same period of 2021 primarily due to the expansion of
existing campaigns by our key digital advertising and media clients
and additional contributions from new clients in 2022 continuing to
scale up.
- Our revenue from content, trust and safety services increased
by 4.6% to S$28.1 million (US$20.9 million) from S$26.8 million for
the same period of 2021 primarily due to higher business volumes
from existing clients.
- Our revenue from our other service fees increased by 50.9% to
S$1.2 million (US$0.9 million) from S$0.8 million for the same
period of 2021 primarily due to an expansion of existing
campaigns.
The following table sets forth our service provided by amount
for the three months ended December 31, 2022 and 2021.
For the three months ended
December 31,
2022
2021
US$’000
S$’000
S$’000
Revenue by service
Omnichannel CX solutions *
73,220
98,452
92,340
Sales and digital marketing
36,399
48,942
34,789
Content, trust and safety *
20,862
28,052
26,822
Other service fees * #
912
1,225
812
Total revenue
131,393
176,671
154,763
* In the second quarter of 2022, we
renamed our “content monitoring and moderation” services as
“content, trust and safety” services which entailed some
reclassification of certain of our revenue from our omnichannel CX
solutions services and our other service fees into content, trust
and safety services. Accordingly, we reclassified our segment
revenue for all periods presented herein on a comparable basis
except where otherwise noted. See “Segment Reclassification”
below.
# Other service fees comprise revenue from
other business process services and revenue from other
services.
Employee Benefits Expense. Our employee benefits expense
increased by 17.5% to S$114.8 million (US$85.4 million) from S$97.7
million for the same period of 2021 due to higher employee
headcount, wage adjustments and share-based payment expense arising
from the implementation of the TDCX Performance Share Plan (the
“Performance Share Plan”) in November 2021. Our average number of
employees in the fourth quarter of 2022 increased by 24.0% compared
to the same period of 2021 driven by business volumes requirements
of current campaigns over the course of 2022, and staff resourcing
requirements of new campaign launches in the second half of
2022.
Depreciation Expense. Our depreciation expense increased
by 11.1% to S$10.7 million (US$7.9 million) from S$9.6 million for
the same period of 2021 primarily due to depreciation expense
attributable to our office space expansion to support our business
growth in Malaysia, Thailand and Spain and depreciation expense
arising from our newly acquired Hong Kong subsidiary.
Rental and Maintenance Expense. Our rental and
maintenance expense increased by 28.6% to S$2.7 million (US$2.0
million) from S$2.1 million for the same period of 2021 primarily
due to the setting up of new greenfield sites in Türkiye, Korea and
Vietnam, and the acquired operation in Hong Kong. In addition, our
rental and maintenance expense increased to cope with the growth in
our key clients’ campaigns in the Philippines and Thailand as we
had to lease additional computer equipment and incur maintenance
expense for additional floor space.
Recruitment Expense. The increase in our recruitment
expense by 1.9% to S$3.4 million (US$2.5 million) from S$3.3
million for the same period of 2021 is not material in absolute
terms.
Transport and Travelling Expense. Our transport and
travelling expense increased by 39.9% to S$0.7 million (US$0.5
million) from S$0.5 million for the same period of 2021 mainly due
to increased operational and business development travel.
Telecommunication and Technology Expense. Our
telecommunication and technology expense increased by 31.2% to
S$3.3 million (US$2.4 million) from S$2.5 million for the same
period of 2021 primarily due to an increase in software
subscription and outsourced IT services.
Interest Expense. Our interest expense decreased by 72.0%
to S$0.5 million (US$0.4 million) from S$2.0 million for the same
period of 2021 primarily due to reduced bank borrowings.
Other Operating Expense. Our other operating expense
increased by 271.7%% to S$9.5 million (US$7.0 million) from S$2.5
million for the same period of 2021 primarily due to foreign
exchange losses of S$6.0 million caused by the weakening of the
United States Dollar in the fourth quarter of 2022.
Share of Profit from an Associate. Our share of profit
from an associate was insignificant for the three months ended
December 31, 2022 and 2021.
Interest Income. Our interest income increased by 468.1%
to S$1.4 million (US$1.1 million) from S$0.3 million for the same
period of 2021 primarily due to higher placements of excess liquid
funds in interest earning deposit.
Other Operating Income. Our other operating income
decreased by 84.5% to S$0.4 million (US$0.3 million) for the same
period of 2021 primarily due to lower government grants received by
our Singapore subsidiaries.
Profit Before Income Tax. As a result of the foregoing,
our profit before income tax decreased by 11.9% to S$33.0 million
(US$24.5 million) from S$37.4 million for the corresponding period
of 2021.
Income Tax Expenses. Our income tax expenses decreased by
7.0% to S$8.0 million (US$5.9 million) from S$8.6 million for the
same period of 2021 primarily due to the recognition of a
previously unrecognized deferred tax asset, and partially offset by
higher taxes incurred by our Malaysia subsidiary due to the
imposition of a one-off “prosperity tax” enacted by the local
government for fiscal 2022 for the Malaysian operations and its
higher taxable earnings and the non-availability of the income tax
incentive by the Philippines unit as the unit did not meet the work
from home threshold requirement imposed by the local fiscal
incentive administrative body. The income tax incentive was
reinstated to the Philippines unit after it met the work from home
threshold requirements during the fourth quarter of 2022.
Profit for the Period. As a result of the foregoing, our
profit for the period decreased by 13.3% to S$25.0 million (US$18.6
million) from S$28.8 million for the same period of 2021.
Exchange differences on translation of foreign
operations. Exchange differences on translation of foreign
operations recognized in other comprehensive income increased by
472.9% to a loss of S$16.2 million (US$12.0 million) from S$2.8
million for the same period of 2021 primarily due to the
strengthening of the Singapore Dollar against the functional
currencies of the foreign operations.
Total Comprehensive Income for the Period. As a result of
the foregoing, our total comprehensive income for the period
decreased by 62.9% to S$9.8 million (US$7.3 million) from S$26.3
million for the same period of 2021.
Share Repurchase Program
On March 14, 2022, we announced that the board of directors had
approved a US$30.0 million share repurchase program. The share
repurchase program commenced on March 14, 2022. The repurchase
program has no expiration date and may be suspended, modified or
discontinued at any time without prior notice. We expect to fund
repurchases under this program with our existing cash balance.
Our proposed repurchases may be made from time to time on the
open market at prevailing market prices, in privately negotiated
transactions, in block trades, and/or through other legally
permissible means, depending on market conditions and in accordance
with applicable rules and regulations and its insider trading
policy. Our board of directors will review the share repurchase
program periodically and may authorize adjustment of its terms and
size. We did not make any repurchase of ADSs in the year ended
December 31, 2021.
From October 1, 2022 to March 6, 2023, no share repurchases were
made.
Service Segment Reclassification
In the second quarter of 2022, we renamed our “content
monitoring and moderation” services as “content, trust and safety”
services. The change reflects the industry’s broader view that
content moderation services are part of a larger group of services
that includes other trust and safety related services and helps
enhance our ability to track our performance.
Our content, trust and safety services comprise content
monitoring and moderation services, trust and safety services and
data annotation services. Content monitoring and moderation service
involves the review of content submission for violation of terms of
use or non-compliant with the specifications and guidelines
provided by our clients. Trust and safety services entails our
dedicated and trained resources in assisting our clients to verify,
detect and prevent incidences of fraudulent use of clients’ tools
so as to promote users’ confidence in using our clients’ platforms
and tools. Data annotation services provided by us serves to
support the development of our clients’ efforts in machine learning
and automation initiatives and projects.
Revenue for trust and safety related services that were
previously classified under omnichannel CX solutions and other
service fees respectively, which can currently be reasonably
identified and quantified, will now be reported as content, trust
and safety services.
Reclassifications and comparative figures
In prior periods, we reported foreign exchange gains or losses
on a net basis under “other operating expenses” line item.
Commencing from the third quarter of 2022, foreign exchange gains
for the relevant quarter is reported under “other operating income”
line item while foreign exchange losses for the relevant quarter is
reported under “other operating expenses” line item. Accordingly,
reclassifications relating to foreign exchange gains and losses
have been made to prior period’s financial statements to enable
comparability with the current period’s financial statements and
therefore, certain line items have been amended in the unaudited
condensed interim consolidated statement of profit or loss and
other comprehensive income. Comparative figures have been adjusted
to conform to the current period’s presentation. The items were
reclassified as follows:
Previously reported
After reclassification
S$’000
S$’000
For the year ended December 31,
2021:
Other operating income
6,315
8,191
Other operating expenses
11,126
13,002
NON-IFRS FINANCIAL MEASURES
EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted Net Income, Adjusted Net Income margin, Adjusted EPS,
revenue at constant currency and revenue growth at constant
currency are non-IFRS financial measures. TDCX monitors EBITDA,
EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
Net Income, Adjusted Net Income margin, Adjusted EPS, revenue at
constant currency and revenue growth at constant currency because
they assist the Company in comparing its operating performance on a
consistent basis by removing the impact of items not directly
resulting from its core operations.
EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA
margin
“EBITDA” represents profit for the year/period before interest
expense, interest income, income tax expense, and depreciation
expense. “EBITDA margin” represents EBITDA as a percentage of
revenue. “Adjusted EBITDA” represents profit for the year/period
before interest expense, interest income, income tax expense,
depreciation expenses, and equity-settled share-based payment
expense incurred in connection with our Performance Share Plan.
“Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage
of revenue.
For the Three Months ended
December 31,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Revenue
131,393
176,671
—
154,763
—
Profit for the period and net
profit margin
18,601
25,010
14.2
%
28,846
18.6
%
Adjustments for:
Depreciation expense
7,937
10,672
6.0
%
9,605
6.2
%
Income tax expenses
5,914
7,952
4.5
%
8,550
5.5
%
Interest expense
408
549
0.3
%
1,964
1.3
%
Interest income
(1,061
)
(1,426
)
(0.8
%)
(251
)
(0.2
%)
EBITDA and EBITDA margin
31,799
42,757
24.2
%
48,714
31.4
%
Adjustment:
Equity-settled share-based
payment expense
3,058
4,112
2.3
%
5,204
3.4
%
Adjusted EBITDA and Adjusted
EBITDA margin
34,857
46,869
26.5
%
53,918
34.8
%
For the Full Year ended December
31,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Revenue
493,916
664,120
—
555,198
—
Profit for the year and net
profit margin
78,044
104,938
15.8
%
103,842
18.7
%
Adjustments for:
Depreciation expense
29,549
39,731
6.0
%
39,853
7.2
%
Income tax expenses
27,554
37,049
5.6
%
28,237
5.1
%
Interest expense
1,440
1,936
0.3
%
8,414
1.5
%
Interest income
(2,490
)
(3,348
)
(0.5
%)
(544
)
(0.1
%)
EBITDA and EBITDA margin
134,097
180,306
27.1
%
179,802
32.4
%
Adjustment:
Equity-settled share-based
payment expense
14,476
19,465
2.9
%
5,204
0.9
%
Adjusted EBITDA and Adjusted
EBITDA margin
148,573
199,771
30.1
%
185,006
33.3
%
Adjusted Net Income and Adjusted Net Income margin
“Adjusted Net Income” represents profit for the year/period
before equity-settled share-based payment expense incurred in
connection with our Performance Share Plan, net of any tax impact
of such adjustments. “Adjusted Net Income margin” represents
Adjusted Net Income as a percentage of revenue.
For the Three Months ended
December 31,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Profit for the period and net
profit margin
18,601
25,010
14.2
%
28,846
18.6
%
Adjustment for:
Equity-settled share-based
payment expense
3,058
4,112
2.3
%
5,204
3.4
%
Adjusted Net Income and Adjusted
Net Income margin
21,659
29,122
16.5
%
34,050
22.0
%
For the Full Year ended December
31,
2022
2021
US$’000
S$’000
Margin
S$’000
Margin
Profit for the year and net
profit margin
78,044
104,938
15.8
%
103,842
18.7
%
Adjustment for:
Equity-settled share-based
payment expense
14,476
19,465
2.9
%
5,204
0.9
%
Adjusted Net Income and Adjusted
Net Income margin
92,520
124,403
18.7
%
109,046
19.6
%
Adjusted EPS
“Adjusted EPS” represents earnings available to shareholders
excluding the impact of equity-settled share-based payment expense.
Adjusted EPS is calculated as earnings available to shareholders
excluding the impact of equity-settled share-based payment expense
divided by the diluted weighted-average number of shares
outstanding.
For the Three Months ended
December 31,
2022
2021
Amount
Per Share
Amount
Per Share
Amount
Per Share
US$’000
US$
S$’000
S$
S$’000
S$
Earnings available to
shareholders and EPS
18,601
0.13
25,010
0.17
28,846
0.20
Adjustments for:
Equity-settled share-based
payment expense
3,058
0.02
4,112
0.03
5,204
0.04
Earnings available to
shareholders after adjustments and Adjusted EPS
21,659
0.15
29,122
0.20
34,050
0.24
For the Full Year ended December
31,
2022
2021
Amount
Per Share
Amount
Per Share
Amount
Per Share
US$’000
US$
S$’000
S$
S$’000
S$
Earnings available to
shareholders and EPS
78,043
0.54
104,936
0.72
103,841
0.81
Adjustments for:
Equity-settled share-based
payment expense
14,476
0.10
19,465
0.14
5,204
0.04
Earnings available to
shareholders after adjustments and Adjusted EPS
92,519
0.64
124,401
0.86
109,045
0.85
Revenue at Constant Currency and Revenue
Growth at Constant Currency
Revenue at constant currency, which is revenue adjusted for the
translation effect of foreign currencies so that certain financial
results can be viewed without the impact of fluctuations in foreign
currency exchange rates, thereby facilitating period-to-period
comparisons of our business performance. Revenue at constant
currency is calculated by translating the revenue of our local
subsidiaries in each period in the respective local functional
currencies to TDCX Inc.’s and its consolidated subsidiaries’
(together, the “Group”) presentation currency, using the average
currency conversion rates in effect during the comparable prior
period (rather than at the actual currency conversion rates in
effect during that period). Revenue growth at constant currency
means the period-over-period change in revenue at constant currency
compared against revenue in the prior period.
For the Full Year Ended December
31,
Revenue growth as reported
Foreign exchange impact
Revenue growth at constant
currency
2022
2021
S$’000
S$’000
Revenue
664,120
555,198
19.6%
3.8%
23.4%
The Company has not reconciled non-IFRS forward-looking revenue
growth at constant currency to its most directly comparable IFRS
measure, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. The
revenue growth outlook indicated for 2023 is calculated and
presented at constant currency, as it would require unreasonable
efforts to predict factors out of the Company’s control or not
readily predictable, such as currency exchange movements over the
course of an entire year.
The Company uses revenue at constant currency and revenue growth
at constant currency, which are supplemental non-IFRS financial
measures, to provide better comparability of revenue trends
period-over-period (without the impact of fluctuations in foreign
currency exchange rates) because it is a global company that
transacts business in multiple currencies and reports financial
information in the Group’s functional reporting currency. Foreign
currency exchange rate fluctuations affect the amounts reported by
the Company in the Group’s functional reporting currency with
respect to its foreign revenues. Generally, when the Group’s
functional reporting currency dollar either strengthens or weakens
against other currencies, revenue at constant currency rates and
revenue growth at constant currency rates will be higher or lower
than revenue and revenue growth reported at actual exchange
rates.
The Company believes that non-IFRS financial measures such as
EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted Net Income, Adjusted Net Income margin, Adjusted EPS,
revenue at constant currency and revenue growth at constant
currency help us to identify underlying trends in our operating
results, enhancing our understanding of past performance and future
prospects.
While the Company believes that such non-IFRS financial measures
provide useful information to investors in understanding and
evaluating the Company’s results of operations in the same manner
as its management, the Company’s use of such non-IFRS financial
measures have limitations as analytical tools and you should not
consider these in isolation or as a substitute for analysis of the
Company’s results of operations or financial condition as reported
under IFRS.
TDCX’s non-IFRS financial measures do not reflect all items of
income and expense that affect the Company’s operations and do not
represent the residual cash flow available for discretionary
expenditures. Further, these non-IFRS measures may differ from the
non-IFRS information used by other companies, including peer
companies, and therefore their comparability may be limited. The
Company compensates for these limitations by reconciling the
non-IFRS financial measures to the nearest IFRS performance
measure, all of which should be considered when evaluating
performance. The Company encourages you to review the company’s
financial information in its entirety and not rely on any single
financial measure.
The translation of Singapore Dollar amounts into United States
Dollar amounts for the unaudited condensed interim consolidated
statement of profit or loss and other comprehensive income above
are included solely for the convenience of readers outside of
Singapore and have been made at the rate of S$1.3446 to US$1.00,
the approximate rate of exchange at December 31, 2022. Such
translations should not be construed as representations that the
Singapore Dollar amounts could be converted into USD at that or any
other rate.
UNAUDITED CONDENSED INTERIM CONSOLIDATED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Full Year ended December
31,
2022
2021
US$’000
S$’000
S$’000
Revenue
493,916
664,120
555,198
Employee benefits expense
(324,520)
(436,350)
(339,683)
Depreciation expense
(29,549)
(39,731)
(39,853)
Rental and maintenance
expense
(7,422)
(9,980)
(9,832)
Recruitment expense
(10,562)
(14,201)
(10,884)
Transport and travelling
expense
(1,217)
(1,637)
(1,461)
Telecommunication and technology
expense
(8,792)
(11,822)
(8,826)
Interest expense
(1,440)
(1,936)
(8,414)
Other operating expense
(16,684)
(22,434)
(13,002)
Share of profit from an
associate
103
139
101
Interest income
2,490
3,348
544
Other operating income
9,275
12,471
8,191
Profit before income
tax
105,598
141,987
132,079
Income tax expenses
(27,554)
(37,049)
(28,237)
Profit for the period
78,044
104,938
103,842
Item that will not be
reclassified to profit or loss:
Remeasurement of retirement
benefit obligation
687
924
276
Item that may be reclassified
subsequently to profit or loss:
Exchange differences on
translation of foreign operations
(10,734)
(14,432)
(6,500)
Total comprehensive income for
the period
67,997
91,430
97,618
Profit
attributable to:
- Owners of the Group
78,043
104,936
103,841
- Non-controlling interests
1
2
1
78,044
104,938
103,842
Total
comprehensive income attributable to:
- Owners of the Group
67,996
91,428
97,617
- Non-controlling interests
1
2
1
67,997
91,430
97,618
Basic earnings per share (in US$
or S$) (1)
0.54
0.72
0.81
Diluted earnings per share (in
US$ or S$) (1)
0.54
0.72
0.81
_______________________________
1 Basic and diluted earnings per
share
For the Full Year ended December
31,
2022
2021
Weighted average number of
ordinary shares for the purposes of basic earnings per share
145,298,557
128,803,824
Weighted average number of
ordinary shares for the purposes of diluted earnings per share
145,298,557
128,830,134
The translation of Singapore Dollar
amounts into United States Dollar amounts (“USD”) for the unaudited
condensed interim consolidated statement of profit or loss and
other comprehensive income above are included solely for the
convenience of readers outside of Singapore and have been made at
the rate of S$1.3446 to US$1.00, the approximate rate of exchange
at December 31, 2022. Such translations should not be construed as
representations that the Singapore Dollar amounts could be
converted into USD at that or any other rate.
UNAUDITED CONDENSED INTERIM CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
As of December 31, 2022
As of December 31, 2021
US$’000
S$’000
S$’000
ASSETS
Current assets
Cash and cash equivalents
289,380
389,100
313,147
Fixed and pledged deposits
4,872
6,551
8,860
Trade receivables
66,048
88,808
92,561
Contract assets
43,736
58,808
49,365
Other receivables
11,814
15,885
13,220
Financial assets measured at fair
value through profit or loss
22,145
29,776
23,983
Income tax receivable
263
354
17
Total current assets
438,258
589,282
501,153
Non-current assets
Pledged deposits
434
584
456
Goodwill and intangible
assets1
2,175
2,924
—
Other receivables
3,733
5,019
4,771
Plant and equipment
30,710
41,292
39,709
Right-of-use assets
26,206
35,236
33,160
Deferred tax assets
2,575
3,463
1,943
Investment in an associate
—
—
318
Total non-current assets
65,833
88,518
80,357
Total assets
504,091
677,800
581,510
LIABILITIES AND EQUITY
Current liabilities
Other payables
36,980
49,723
39,096
Bank loans
—
—
13,847
Lease liabilities
13,252
17,818
14,550
Provision for reinstatement
cost
3,928
5,282
3,663
Income tax payable
12,316
16,560
14,715
Total current liabilities
66,476
89,383
85,871
Non-current
liabilities
Bank loans
—
—
2,963
Lease liabilities
15,353
20,644
21,361
Provision for reinstatement
cost
2,657
3,572
4,384
Defined benefit obligation
1,113
1,497
1,718
Deferred tax liabilities
634
852
1,507
Total non-current liabilities
19,757
26,565
31,933
Capital, reserves and
non-controlling interests
Share capital
14
19
19
Reserves
163,313
219,590
227,181
Retained earnings
254,515
342,221
236,486
Equity attributable to owners of
the Group
417,842
561,830
463,686
Non-controlling interests
16
22
20
Total equity
417,858
561,852
463,706
Total liabilities and
equity
504,091
677,800
581,510
The translation of Singapore Dollar amounts into United States
Dollar amounts for the unaudited condensed interim consolidated
statement of financial position above are included solely for the
convenience of readers outside of Singapore and have been made at
the rate of S$1.3446 to US$1.00, the approximate rate of exchange
at December 31, 2022. Such translations should not be construed as
representations that the Singapore Dollar amounts could be
converted into USD at that or any other rate.
1 On October 13, 2022, the Group acquired
all remaining shares of its associate, Teledirect Hong Kong Limited
(subsequently renamed TDCX (HK) Limited), which then became a
wholly-owned subsidiary of the Group on that date. Based on
preliminary purchase price allocation, a provisional amount of
goodwill and intangible assets was recognized by the Group.
UNAUDITED CONDENSED INTERIM CONSOLIDATED
STATEMENT OF CASH FLOWS
For the Full Year ended December
31,
2022
2021
US$’000
S$’000
S$’000
Operating activities
Profit before income tax
105,598
141,987
132,079
Adjustments for:
Depreciation expense
29,549
39,731
39,853
Gain on early termination of
right-of-use assets
—
—
(29
)
Reversal of allowance on trade
and other receivables
—
—
(2
)
Equity-settled share-based
payment expense
14,476
19,465
5,204
Provision for office
reinstatement cost
884
1,188
(7
)
Bank loan transaction cost
37
50
416
Interest income
(2,490
)
(3,348
)
(544
)
Interest expense
1,440
1,936
8,414
Retirement benefit service
cost
560
753
619
Fixed assets written off
13
17
—
Loss on disposal of plant and
equipment
1
1
211
Share of profit from an
associate
(103
)
(139
)
(101
)
Fair value gain on previously
held equity interest
(103
)
(139
)
—
Operating cash flows before
movements in working capital
149,862
201,502
186,113
Trade receivables
581
781
(57,003
)
Contract assets
(9,372
)
(12,601
)
(4,000
)
Other receivables
(4,954
)
(6,661
)
(672
)
Other payables
12,703
17,081
4,542
Cash generated from
operations
148,820
200,102
128,980
Interest received
2,490
3,348
544
Income tax paid
(28,365
)
(38,140
)
(25,703
)
Income tax refunded
31
42
4
Net cash from operating
activities
122,976
165,352
103,825
Investing activities
Purchase of plant and
equipment
(18,792
)
(25,268
)
(20,648
)
Proceeds from disposal of plant
and equipment
103
138
126
Payment for restoration of
office
—
—
(428
)
Decrease/ (Increase) in fixed
deposits
1,299
1,746
(1,255
)
Increase in pledged deposits
—
—
1,888
Dividend income from
associate
120
161
13
Acquisition of a subsidiary, net
of cash acquired
(3,134
)
(4,214
)
—
Investment in financial assets
measured at fair value through profit or loss
(2,255
)
(3,032
)
(23,835
)
Net cash used in investing
activities
(22,659
)
(30,469
)
(44,139
)
Financing activities
Dividends paid to non-controlling
interests
(30
)
(40
)
(176
)
Drawdown of bank loan
—
—
252,658
Distribution to founder
—
—
(252,033
)
Repayment of lease
liabilities
(14,673
)
(19,729
)
(19,632
)
Interest paid
(160
)
(215
)
(6,847
)
Repayment of bank loan
(12,531
)
(16,849
)
(276,564
)
Bank loan transaction cost
paid
—
—
(361
)
Repurchase of American Depositary
Shares
(10,129
)
(13,620
)
—
Proceeds from issuance of
shares
1
1
502,406
Proceeds from capital call on
non-fully paid-up share capital from non-controlling interests
—
—
193
Net cash (used in)/ generated
from financing activities
(37,522
)
(50,452
)
199,644
Net increase in cash and cash
equivalents
62,795
84,431
259,330
Effect of foreign exchange rate
changes on cash held in foreign currencies
(6,307
)
(8,478
)
(5,990
)
Cash and cash equivalents at
beginning of period
232,892
313,147
59,807
Cash and cash equivalents at
end of period
289,380
389,100
313,147
The translation of Singapore Dollar
amounts into United States Dollar amounts for the unaudited
condensed interim consolidated statement of cash flows above are
included solely for the convenience of readers outside of Singapore
and have been made at the rate of S$1.3446 to US$1.00, the
approximate rate of exchange at December 31, 2022. Such
translations should not be construed as representations that the
Singapore Dollar amounts could be converted into USD at that or any
other rate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230307005598/en/
For enquiries, please contact: Investors / Analysts:
Jason Lim lim.jason@tdcx.com Media: Eunice Seow
eunice.seow@tdcx.com
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