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 first quarter ended March 31,
2023.
First Quarter 2023 Financial Highlights3
- Total revenue of US$124.3 million, up 8.2% year-on-year,
including a 4.9% point negative impact of foreign exchange rates
compared with the prior year period, and up 13.1% in constant
currency terms1
- Profit for the period was US$20.5 million, up 22.5%
year-on-year
- EBITDA2,4 of US$32.0 million, up 7.0% year-on-year, and
Adjusted EBITDA2,4 of US$30.0 million, down 16.2% year-on-year
- Profit for the period, EBITDA2,4 and Adjusted EBITDA2,4
included a net reversal of equity-settled share-based payment
expenses of US$3.9 million
Mr. Laurent Junique, Chief Executive Officer and Founder of
TDCX, said, “We delivered a resilient set of results this quarter
through our continued focus on operational excellence. Our efforts
to deepen our support for existing clients are also showing
results, as revenue from clients outside our top five rose 45 per
cent year-on-year.
“Given market uncertainties, we are seeing more emphasis for
stronger performance and greater productivity among our clients.
Hence, we are focused on adding value to our clients by helping
them solve their strategic CX challenges. We do this by leveraging
the insights and best practices gathered from our Digital CX Center
of Excellence and our recently launched TDCX AI arm.
“Looking ahead, we continue to strengthen our capabilities by
deepening our sector expertise in our core verticals, sharpening
our operational capabilities, and expanding our footprint for
better client coverage.”
(US$ million, except for
%)3
Q1 2022
Q1 2023
% Change
Revenue
114.9
124.3
+8.2%
(+13.1% on a constant currency
basis)1, 2
Profit for the period
16.7
20.5
+22.5%
EBITDA2,4
29.9
32.0
+7.0%
EBITDA Margins2,4
(%)
26.1%
25.8%
Adjusted EBITDA2,4
35.8
30.0
-16.2%
Adjusted EBITDA
Margins2,4
(%)
31.2%
24.2%
Adjusted Net Income2,5
22.6
18.3
-19.1%
Q1 23 Business
Highlights
Strong Client Growth Year-on-Year
- Client count6, 7 up 55% year-on-year, bringing total client
count to 85 as of 31 March 2023, compared to 55 as of 31 March
2022
Improved Client Diversification
- Broad-based growth as revenue from clients outside the top five
rose 45% year-on-year7
- Revenue mix from top five clients lowered to 76% in Q1 23 from
83% in Q1 22
Strategic Geographic Expansion
- Opening of Jakarta operation in January 2023, which further
bolsters TDCX’s strong Southeast Asian foothold
- Launch of a new campus in São Paulo, Brazil – TDCX’s 29th
globally – in May 2023 to support a key gaming client
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
basis1,2,8)
Adjusted EBITDA margin2,4
Approximately 25% - 29%
Detailed Financial Information on the
Form 6-K
Please refer to
https://investors.tdcx.com/financials/quarterly-results/default.aspx
for the detailed financial information contained in Form 6-K.
__________________
1 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 presentation currency of the
Company and its subsidiaries (the “Group”), 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.
2 EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA
Margin, Adjusted Net Income, 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
“Non-IFRS Financial Measures” in the Form 6-K or "Reconciliation of
non-IFRS financial measures to the nearest comparable IFRS
measures" in the presentation slides for more details).
The reported amounts for Adjusted EBITDA and Adjusted Net Income
for the three months ended March 31, 2023 include adjustments for
certain items (i.e., acquisition-related professional fees and net
foreign exchange gains or losses) which were not included in
similar non-IFRS financial measures previously reported in prior
periods. In order to place the current disclosure in the
appropriate context and enhance its comparability, similar
adjustments have been made for Adjusted EBITDA and Adjusted Net
Income for the three months ended March 31, 2022.
3 FX rate of US$1 = S$1.3270, being the approximate rate in
effect as of March 31, 2023, assumed in converting financials from
SG dollar to U.S. dollar.
4 “EBITDA” represents profit for the year/ period before
interest expense, interest income, income tax expense and
depreciation and amortization expense. “EBITDA margin” represents
EBITDA as a percentage of revenue. “Adjusted EBITDA” represents
profit for the period before interest expense, interest income,
income tax expense, depreciation and amortization expense,
acquisition-related professional fees, net foreign exchange gains
or losses and equity-settled share-based payment expense (or net
reversal) 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.
5 “Adjusted Net Income” represents profit for the period before
acquisition-related professional fees, net foreign exchange gains
or losses and equity-settled share-based payment expense (or net
reversal) incurred in connection with our Performance Share Plan,
net of any tax impact of such adjustments.
6 “Client count” refers to launched campaigns that are revenue
generating.
7 Includes additional clients attributable to our Hong Kong
subsidiary.
8 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 first quarter 2023 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:
May 31, 2023, 8:30 PM (U.S.
Eastern Time)
June 1, 2023, 8:30 AM (Singapore
/ Hong Kong Time)
Webcast link:
https://events.q4inc.com/earnings/TDCX/Q1-2023
Dial in numbers:
USA Toll Free: +1 855 979
6654
United States (Local): +1 646 787
9445
Singapore: +65 3163 4602
Hong Kong: +852 5803 3413
UK Toll Free +44 800 358 1035
All other locations: +44 20 3936
2999
Participant Access Code:
644840
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 18,400 employees across 30 campuses
globally, specifically in Brazil, Colombia, Hong Kong, India,
Japan, Malaysia, Mainland China, Philippines, Romania, Singapore,
South Korea, Spain, Thailand, 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$1.3270 to US$1.00, the approximate rate in effect as
of March 31, 2023. 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 and
amortization 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 and amortization expense, acquisition-related
professional fees, net foreign exchange gains or losses and
equity-settled share-based payment expense (or net reversal)
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 acquisition-related professional fees, net foreign exchange
gains or losses and equity-settled share-based payment expense (or
net reversal) incurred in connection with our Performance Share
Plan, net of any tax impact of such adjustments.
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, 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.
We exclude items from Adjusted EBITDA and Adjusted Net Income,
including acquisition-related professional fees, net foreign
exchange gains or losses and equity-settled share-based payment
expense (or net reversal) incurred in connection with our
Performance Share Plan, as they are not indicative of our ongoing
operating performance, and adjusting for such items is meaningful
and useful to readers to understand the underlying performance of
the business by eliminating the impact of certain items that may
obscure trends in the underlying performance of the business.
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, including full reconciliations to the nearest
IFRS measure, 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;
the continued service of its founder and certain of its key
employees and management; its ability to compete effectively; its
ability to navigate difficulties and successfully expand its
operations into countries in which it has no prior operating
experience; its ability to maintain its pricing, control costs or
continue to grow its business; its ability to attract and retain
enough highly trained employees; its compliance with service level
and performance requirements by, and contractual obligations with,
its clients; its exposure to various risks in Southeast Asia; its
contractual relationship with key clients; clients and prospective
clients’ spending on omnichannel CX solutions and content, trust
and safety services; its ability to successfully identify, acquire
and integrate companies; 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 March
31,
2023
2022
US$’000
S$’000
S$’000
Revenue
124,301
164,947
152,423
Employee benefits expense
(79,939
)
(106,079
)
(103,850
)
Depreciation and amortization
expense
(8,481
)
(11,254
)
(9,556
)
Rental and maintenance
expense
(2,555
)
(3,391
)
(2,266
)
Recruitment expense
(2,295
)
(3,045
)
(2,809
)
Transport and travelling
expense
(346
)
(459
)
(190
)
Telecommunication and technology
expense
(2,509
)
(3,329
)
(2,629
)
Interest expense
(360
)
(478
)
(487
)
Other operating expense (1)
(5,021
)
(6,662
)
(2,554
)
Share of profit from an
associate
—
—
18
Interest income
1,361
1,806
267
Other operating income
390
517
1,592
Profit before income
tax
24,546
32,573
29,959
Income tax expense
(4,044
)
(5,366
)
(7,754
)
Profit for the period
20,502
27,207
22,205
Item that may be reclassified
subsequently to profit or loss:
Exchange differences on
translation of foreign operations
(2,681
)
(3,558
)
(1,116
)
Total comprehensive income for
the period
17,821
23,649
21,089
Profit
attributable to:
- Owners of TDCX Inc.
20,502
27,207
22,205
- Non-controlling interests
—
—
—
20,502
27,207
22,205
Total
comprehensive income attributable to:
- Owners of TDCX Inc.
17,821
23,649
21,089
- Non-controlling interests
—
—
—
17,821
23,649
21,089
Basic earnings per share (in US$
or S$) (2)
0.14
0.19
0.15
Diluted earnings per share (in
US$ or S$) (2)
0.14
0.19
0.15
_______________________________
(1) We reported foreign exchange gains or losses, as applicable,
on a net basis for the relevant period under the “other operating
expense” line item.
(2) Basic and diluted earnings per share
For the three months ended March
31,
2023
2022
Weighted average number of
ordinary shares for the purposes of basic earnings per share
144,920,762
145,745,209
Effect of vesting of employee
share awards
—
134,474
Weighted average number of
ordinary shares for the purposes of diluted earnings per share
144,920,762
145,879,683
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$1.3270 to
US$1.00, the approximate rate of exchange at March 31, 2023. 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 March 31, 2023 and
2022
Revenue. Our revenue increased by 8.2% to S$164.9 million
(US$124.3 million) for the three months ended March 31, 2023 from
S$152.4 million for the three months ended March 31, 2022 primarily
driven by a 23.2% increase in revenue from sales and digital
marketing services followed by a 9.2% increase in revenue from
omnichannel CX solutions services rendered, partially offset by a
17.3% decrease in revenue from content, trust and safety
services.
- Our revenue from omnichannel CX solutions services increased by
9.2% to S$97.7 million (US$73.6 million) from S$89.5 million for
the same period of 2022 primarily due to higher business volumes
driven by the expansion of existing campaigns by clients in the
travel and hospitality, gaming, fast moving consumer goods, and
technology verticals, partially offset by a lower demand for our
services from existing clients in the fintech, and digital
advertising and media verticals.
- Our revenue from sales and digital marketing services increased
by 23.2% to S$44.0 million (US$33.2 million) from S$35.7 million
for the same period of 2022 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 decreased
by 17.3% to S$21.8 million (US$16.5 million) from S$26.4 million
for the same period of 2022 primarily due to contraction of volumes
requirement by existing clients in the digital advertising and
media vertical.
- Our revenue from our other service fees increased by 72.5% to
S$1.4 million (US$1.0 million) from S$0.8 million for the same
period of 2022 primarily due to an expansion of existing
campaigns.
The following table sets forth our service provided by amount
for the three months ended March 31, 2023 and 2022.
For the three months ended March
31,
2023
2022
US$’000
S$’000
S$’000
Revenue by service
Omnichannel CX solutions*
73,642
97,723
89,505
Sales and digital marketing
33,167
44,012
35,710
Content, trust and safety*
16,452
21,832
26,408
Other service fees #
1,040
1,380
800
Total revenue
124,301
164,947
152,423
* During the second quarter ended June 30, 2022, we renamed our
“content monitoring and moderation” services as “content, trust and
safety” services and reclassified certain of our revenue from our
omnichannel CX solution services and our other service fees under
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 2.1% to S$106.1 million (US$79.9 million) from S$103.9
million for the same period of 2022 primarily due to higher
employee headcount and wage adjustments. This was partially offset
by a reversal of share-based payment expense as certain performance
share awards are not expected to vest. Our average number of
employees in the first quarter of 2023 increased by 21.6% compared
to the same period of 2022 driven by higher net business volumes of
several existing campaigns and new campaign launches over the
course of 2022 and the first quarter of 2023. The reversal of the
abovementioned share-based payment expense resulted in a reduction
in employee benefits expense of S$7.0 million (US$5.3 million).
Depreciation and Amortization Expense. Our depreciation
and amortization expense increased by 17.8% to S$11.3 million
(US$8.5 million) from S$9.6 million for the same period of 2022
primarily due to our office space expansion in Malaysia, Thailand,
Korea and Spain and depreciation and amortization expense arising
from our acquisition on October 13, 2022 of our Hong Kong
associated company, which then became a wholly-owned
subsidiary.
Rental and Maintenance Expense. Our rental and
maintenance expense increased by 49.6% to S$3.4 million (US$2.6
million) from S$2.3 million for the same period of 2022 primarily
due to the setting up of greenfield sites in Brazil, Türkiye and
Vietnam. In addition, our rental and maintenance expense increased
to support the expansion in volumes of certain existing key
clients’ campaigns in the Philippines, Singapore and Malaysia that
required the need for additional technology devices and
equipment.
Recruitment Expense. Our recruitment expense increased by
8.4% to S$3.0 million (US$2.3 million) from S$2.8 million for the
same period of 2022 primarily due to increased hiring activities to
support the campaigns requirements in a few of our sites.
Transport and Travelling Expense. Our transport and
travelling expense increased by 141.6% to S$0.5 million (US$0.3
million) from S$0.2 million for the same period of 2022 mainly due
to increased operational and corporate travel.
Telecommunication and Technology Expense. Our
telecommunication and technology expense increased by 26.6% to
S$3.3 million (US$2.5 million) from S$2.6 million for the same
period of 2022 primarily due to an increase in software
subscription and outsourced IT services.
Interest Expense. The decrease in our interest expense
was not significant.
Other Operating Expense. Our other operating expense
increased by 160.8% to S$6.7 million (US$5.0 million) from S$2.6
million for the same period of 2022 primarily due to higher foreign
exchange losses and increased professional and advisory fees
related to evaluation and diligence activities on a discontinued
acquisition.
Share of Profit from an Associate. Our share of profit
from an associate was insignificant for the three months ended
March 31, 2022 and 2023. Our associated company became our
wholly-owned subsidiary after we acquired all remaining shares of
the company on October 13, 2022.
Interest Income. Our interest income increased by 576.4%
to S$1.8 million (US$1.4 million) from S$0.3 million for the same
period of 2022 primarily due to higher placements of excess liquid
funds in interest earning deposit.
Other Operating Income. Our other operating income
decreased by 67.5% to S$0.5 million (US$0.4 million) from S$1.6
million for the same period of 2022 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 rose by 8.7% to S$32.6 million
(US$24.5 million) from S$30.0 million for the corresponding period
of 2022.
Income Tax Expense. Our income tax expense decreased by
30.8% to S$5.4 million (US$4.0 million) from S$7.8 million for the
same period of 2022 primarily due to the recognition of a deferred
tax asset and lower taxable profits earned by our subsidiaries in
Singapore, Thailand and Malaysia.
Profit for the Period. As a result of the foregoing, our
profit for the period increased by 22.5% to S$27.2 million (US$20.5
million) from S$22.2 million for the same period of 2022.
Exchange differences on translation of foreign
operations. Exchange differences on translation of foreign
operations recognized in other comprehensive income increased by
218.8% to a loss of S$3.6 million (US$2.7 million) from a loss of
S$1.1 million for the same period of 2022 primarily due to the
weakening of the functional currencies of the foreign operations
against the Singapore Dollar.
Total Comprehensive Income for the Period. As a result of
the foregoing, our total comprehensive income for the period
increased by 12.1% to S$23.6 million (US$17.8 million) from S$21.1
million for the same period of 2022.
Additional Adjustments to Certain Non-IFRS Financial
Measures
With effect from January 1, 2023, we have decided to include
adjustments for net foreign exchange gains or losses and
acquisition-related professional fees in Adjusted EBITDA, Adjusted
Net Income and Adjusted EPS, in addition to an adjustment for
equity-settled share-based payment expense (or net reversal) that
was included in such previously reported non-IFRS measures in prior
periods. Over the course of the previous year, we have identified
such additional items as not indicative of our ongoing operating
performance, and adjusting for such items is meaningful and useful
to readers to understand the underlying performance of the business
by eliminating the impact of certain items that may obscure trends
in the underlying performance of the business. For further
information, see “Non-IFRS Financial Measures” below.
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. All share repurchases are subject to and will be carried out,
if at all, in accordance with applicable regulatory
requirements.
From January 1, 2023 to May 30, 2023, we purchased 3,000
American Depositary Shares (ADSs) at a cost of US$30,000 under our
share repurchase program.
Segment Reclassification
During 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 monitoring and 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 user submitted content for violation of
terms of use or non-compliance with the specifications and
guidelines provided by our clients. Trust and safety services
entail 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 serve 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.
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 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 period before
interest expense, interest income, income tax expense, depreciation
and amortization expense, equity-settled share-based payment
expense (or net reversal) incurred in connection with our
Performance Share Plan, net foreign exchange gain or loss and
acquisition-related professional fees. “Adjusted EBITDA margin”
represents Adjusted EBITDA as a percentage of revenue.
For the Three Months ended March
31,
2023
2022 (4)
US$’000
S$’000
Margin
S$’000
Margin
Revenue
124,301
164,947
—
152,423
—
Profit for the period and net
profit margin
20,502
27,207
16.5
%
22,205
14.6
%
Adjustments for:
Depreciation and amortization
expense
8,481
11,254
6.8
%
9,556
6.3
%
Income tax expense
4,044
5,366
3.3
%
7,754
5.1
%
Interest expense
360
478
0.3
%
487
0.3
%
Interest income
(1,361
)
(1,806
)
(1.1
%)
(267
)
(0.2
%)
EBITDA and EBITDA margin
32,026
42,499
25.8
%
39,735
26.1
%
Adjustment:
Equity-settled share-based
payment (net reversal) / expense (1)
(3,868
)
(5,133
)
(3.1
%)
7,933
5.2
%
Net foreign exchange loss/ (gain)
(2)
1,117
1,482
0.9
%
(165
)
(0.1
%)
Acquisition-related professional
fees (3)
741
983
0.6
%
—
—
Adjusted EBITDA and Adjusted
EBITDA margin
30,016
39,831
24.2
%
47,503
31.2
%
_______________________________
(1) Refer to equity-settled share-based payment expense (or net
reversal) arising from TDCX Performance Share Plan.
(2) Refer to realized and unrealized losses or gains resulting
from changes in exchange rates between the functional currency and
the currency in which a foreign currency transaction is
denominated.
(3) Refer to fees incurred on third-party service providers in
connection with a discontinued acquisition.
(4) The reported amounts for Adjusted EBITDA for the three
months ended March 31, 2023 include adjustments for certain items
(i.e., acquisition-related professional fees and net foreign
exchange gains or losses) which were not included in similar
non-IFRS financial measures previously reported in prior periods.
In order to place the current disclosure in the appropriate context
and enhance its comparability, similar adjustments have been made
for Adjusted EBITDA for the three months ended March 31, 2022.
Adjusted Net Income and Adjusted Net Income margin
“Adjusted Net Income” represents profit for the period before
equity-settled share-based payment expense (or net reversal)
incurred in connection with our Performance Share Plan, net foreign
exchange gain or loss and acquisition-related professional fees,
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 March
31,
2023
2022 (4)
US$’000
S$’000
Margin
S$’000
Margin
Profit for the period and net
profit margin
20,502
27,207
16.5
%
22,205
14.6
%
Adjustment for:
Equity-settled share-based
payment
(net reversal) / expense (1)
(3,868
)
(5,133
)
(3.1
%)
7,933
5.2
%
Net foreign exchange loss/ (gain)
(2)
933
1,238
0.8
%
(122
)
(0.1
%)
Acquisition-related professional
fees (3)
741
983
0.6
%
—
—
Adjusted Net Income and Adjusted
Net Income margin
18,308
24,295
14.8
%
30,016
19.7
%
_______________________________
(1) Refer to equity-settled share-based payment expense (or net
reversal) arising from TDCX Performance Share Plan.
(2) Refer to realized and unrealized losses or gains resulting
from changes in exchange rates between the functional currency and
the currency in which a foreign currency transaction is
denominated, net of tax effects.
(3) Refer to fees incurred on third-party service providers in
connection with a discontinued acquisition.
(4) The reported amounts for Adjusted Net Income for the three
months ended March 31, 2023 include adjustments for certain items
(i.e., acquisition-related professional fees and net foreign
exchange gains or losses) which were not included in similar
non-IFRS financial measures previously reported in prior periods.
In order to place the current disclosure in the appropriate context
and enhance its comparability, similar adjustments have been made
for Adjusted Net Income for the three months ended March 31,
2022.
Adjusted EPS
“Adjusted EPS” represents earnings available to shareholders
excluding the impact of equity-settled share-based payment expense
(or net reversal), net foreign exchange gain or loss and
acquisition-related professional fees.
Adjusted EPS is calculated as earnings available to shareholders
excluding the impact of equity-settled share-based payment expense
(or net reversal), net foreign exchange gain or loss and
acquisition-related professional fees, divided by the diluted
weighted-average number of shares outstanding.
For the Three Months ended March
31,
2023
2022 (4)
Amount
Per Share
Amount
Per Share
Amount
Per Share
US$’000
US$
S$’000
S$
S$’000
S$
Reported earnings available to
shareholders and EPS
20,502
0.14
27,207
0.19
22,205
0.15
Adjustments for:
Equity-settled share-based
payment (net reversal) / expense (1)
(3,868
)
(0.03
)
(5,133
)
(0.04
)
7,933
0.06
Net foreign exchange loss/ (gain)
(2)
933
0.01
1,238
0.01
(122
)
—
Acquisition-related professional
fees (3)
741
0.01
983
0.01
—
—
Adjusted earnings available to
shareholders and Adjusted EPS
18,308
0.13
24,295
0.17
30,016
0.21
_______________________________
(1) Refer to equity-settled share-based payment expense (or net
reversal) arising from TDCX Performance Share Plan.
(2) Refer to realized and unrealized losses or gains resulting
from changes in exchange rates between the functional currency and
the currency in which a foreign currency transaction is
denominated, net of tax effects.
(3) Refer to fees incurred on third-party service providers in
connection with a discontinued acquisition.
(4) The reported amounts for Adjusted EPS for the three months
ended March 31, 2023 include adjustments for certain items (i.e.,
acquisition-related professional fees and net foreign exchange
gains or losses) which were not included in similar non-IFRS
financial measures previously reported in prior periods. In order
to place the current disclosure in the appropriate context and
enhance its comparability, similar adjustments have been made for
Adjusted EPS for the three months ended March 31, 2022.
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 the current reporting 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 Three Months Ended March
31,
Revenue growth as reported
Foreign exchange impact
Revenue growth at constant
currency
2023
2022
S$’000
S$’000
Revenue
164,947
152,423
8.2
%
4.9
%
13.1
%
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 that are out of the Company’s control or
are 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$1.3270 to US$1.00,
the approximate rate of exchange at March 31, 2023. Such
translations should not be construed as representations that the
Singapore Dollar amounts could be converted into USD at that or any
other rate.
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of March 31, 2023
As of December 31, 2022
US$’000
S$’000
S$’000
ASSETS
Current assets
Cash and cash equivalents
282,333
374,656
389,100
Fixed and pledged deposits
136
181
6,551
Trade receivables
75,921
100,747
88,808
Contract assets
46,595
61,831
58,808
Other receivables
12,963
17,202
15,885
Financial assets measured at fair
value through profit or loss
40,000
53,080
29,776
Income tax receivable
550
730
354
Total current assets
458,498
608,427
589,282
Non-current assets
Pledged deposits
445
590
584
Goodwill and intangible
assets
2,133
2,831
2,924
Other receivables
2,955
3,921
5,019
Plant and equipment
29,794
39,537
41,292
Right-of-use assets
24,249
32,179
35,236
Deferred tax assets
3,173
4,211
3,463
Total non-current assets
62,749
83,269
88,518
Total assets
521,247
691,696
677,800
LIABILITIES AND EQUITY
Current liabilities
Other payables
35,148
46,642
49,723
Lease liabilities
12,587
16,703
17,818
Provision for reinstatement
cost
3,480
4,618
5,282
Income tax payable
12,989
17,237
16,560
Total current liabilities
64,204
85,200
89,383
Non-current
liabilities
Lease liabilities
14,266
18,931
20,644
Provision for reinstatement
cost
3,222
4,275
3,572
Defined benefit obligation
1,356
1,799
1,497
Deferred tax liabilities
875
1,161
852
Total non-current liabilities
19,719
26,166
26,565
Capital, reserves and
non-controlling interests
Share capital
14
19
19
Reserves
158,900
210,861
219,590
Retained earnings
278,424
369,468
342,221
Equity attributable to owners of
the Group
437,338
580,348
561,830
Non-controlling interests
(14
)
(18
)
22
Total equity
437,324
580,330
561,852
Total liabilities and
equity
521,247
691,696
677,800
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$1.3270 to US$1.00, the approximate rate of exchange
at March 31, 2023. Such translations should not be construed as
representations that the Singapore Dollar amounts could be
converted into USD at that or any other rate.
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENT OF CASH FLOWS
For the three months ended March
31,
2023
2022
US$’000
S$’000
S$’000
Operating activities
Profit before income tax
24,546
32,573
29,959
Adjustments for:
Depreciation and amortization
expense
8,481
11,254
9,556
Gain on early termination of
right-of-use assets
(2
)
(2
)
(1
)
Equity-settled share-based
payment expense
(3,868
)
(5,133
)
7,933
Provision for office
reinstatement cost
(8
)
(10
)
18
Bank loan transaction cost
8
11
14
Interest income
(1,361
)
(1,806
)
(267
)
Interest expense
360
478
487
Retirement benefit service
cost
204
271
192
Loss on disposal and write-off of
plant and equipment
2
3
—
Share of profit from an
associate
—
—
(18
)
Operating cash flows before
movements in working capital
28,362
37,639
47,873
Trade receivables
(9,281
)
(12,316
)
13,168
Contract assets
(2,415
)
(3,205
)
(5,352
)
Other receivables
(174
)
(231
)
(1,713
)
Other payables
(2,261
)
(3,000
)
(519
)
Cash generated from
operations
14,231
18,887
53,457
Interest received
1,361
1,806
267
Income tax paid
(4,134
)
(5,486
)
(3,494
)
Net cash from operating
activities
11,458
15,207
50,230
Investing activities
Purchase of plant and
equipment
(3,029
)
(4,020
)
(1,949
)
Proceeds from disposal of plant
and equipment
2
2
1
Decrease in fixed deposits
4,782
6,346
—
Increase in pledged deposits
—
—
1
Investment in financial assets
measured at fair value through profit or loss
(17,929
)
(23,792
)
—
Net cash used in investing
activities
(16,174
)
(21,464
)
(1,947
)
Financing activities
Repayment of lease
liabilities
(4,219
)
(5,598
)
(4,721
)
Interest paid
—
—
(93
)
Repayment of bank loan
—
—
(2,437
)
Repurchase of American Depositary
Shares
(30
)
(40
)
(1,806
)
Net cash used in financing
activities
(4,249
)
(5,638
)
(9,057
)
Net (decrease)/ increase in cash
and cash equivalents
(8,965
)
(11,895
)
39,226
Effect of foreign exchange rate
changes on cash held in foreign currencies
(1,920
)
(2,549
)
(734
)
Cash and cash equivalents at
beginning of period
293,218
389,100
313,147
Cash and cash equivalents at
end of period
282,333
374,656
351,639
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$1.3270 to US$1.00, the approximate rate of exchange
at March 31, 2023. 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/20230531005637/en/
For enquiries, please contact: Investors / Analysts:
Jason Lim lim.jason@tdcx.com
Media: Eunice Seow eunice.seow@tdcx.com
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