TDCX (TDCX) 7 Mar 232022 Q4 Earnings call transcript

Ladies and gentlemen, welcome to the TDCX Q4 2022 Results Announcement. My name is Kelly, and I’ll be coordinating your call today. [Operator Instructions]

I will now hand you over to the TDCX management team to begin.

Hello, everyone, and welcome to TDCX fourth quarter and full year 2022 earnings conference call. Lim, of Jason Relations. is name the Investor Head My call. management Allow introduce the me to on

We Chairman, and our CFO, Corporate have Executive Mr. Mr. Junique; Mr. Development, Chin our Laurent Tze Goh. Neng; Edward our of Founder EVP and CEO;

would subject Before are in you that statements, risks the be realized and uncertainties, future. to we we like remind make will continue, forward-looking not I to which and may

on You any chase should reliance forward-looking any statements. not

as certain Also and adjusted this such includes financial call EBITDA of net non-IFRS discussion income. adjusted measures, the

For IFRS a X-K, website. our on of the reconciliation our the non-IFRS Form measures, press to measures the which closest on to is available please refer release

We not Singapore dollar to at other US$X a rate have of of least any translation dollar. be translation representation SGD any that at the Singapore the This X.XXXX. to construed a prepared to dollars converted USD or as should a This convenient amount for US was be can REIT. done

call please. me hand With Laurent. to over that, let the Laurent,

everyone, We year, a signed during of Hello XXXX. a strategy our outlined the our XX. XX% been growth the for of we number has XXXX our our full count client and with with highest-ever to briefing challenging growth revenue ended year-on-year. quarter IPO. XX We logos long-term results and despite expectations to doubled fourth execute year that up increase previously continue on welcome achieved but almost and the in new the year to

new XX% growth we year. demonstrates incremental This contributed The that new the clients from deliver a onboard of revenue for around growth have can strong clients.

that our started added on I'll our more global to details three to contribute execute new expansion global also to well plans. continue share later. revenue. meaningfully We have geographies We

Today wonderful that to team has growth. what their them make celebrate year the it for is want Day thank and want this to TDCX I today. women of for all an high and worked I is International to another efforts The and Women's deliver hard very TDCX

our million. Now We as by This me robust helped of US$XXX verticals growth key has let client revenue of performance. financial across revenue highlights XXXX some concentration. our in delivered clients terms QX XX.X% and highlights, was driven diversify revenue rose from contributions to first cover in

XX% Our clients year, clients group double five compared grew QX than of broad-based XXXX, top two to at the stood XX% rate while the at outside XX% growth as last in The XX% top more last year. to compared stood growth. five clients our was at revenue top

media revenue of Media of vertical strength Pacific Digital Hospitality remains FY Travel rose than and of at and the driven XX% and region advertising the is XXXX. in Asia followed double-digit largest is digital industry contributions some verticals, Now from Advertising This XX%. where Revenue advertising by in our in rest headwinds. from the was at XXXX digital and relative at our to by despite XX% terms revenue continuing a grow FinTech in faster This world.

over XX%. as Turkey We such over and key from highlight our was FinTech sites up growing up key into Gaming clients was while other also as Travel are Korea. XX%, XX%, growth was another supported good gaming us for greenfield verticals. seeing we

year-on-year. the impacted by In currency to US our profit of QX terms adjusted of net due and the dollar earnings, was depreciation loss a XX.X% foreign declined

QX margins compared to and of of margins XX.X% full year-on-year. The lower the XX.X%, net with was growth quarters rising adjusted XX.X%. XXXX, two which EBITDA the QX This robust rate growth to revenue profit XX.X% was remains to reflects XX%. XX% lower adjusted profit For exceptional in year, boosted compared of by in

net into strong cash details sections. from quality growth FY XXXX The later the of rose to is the flows, more our share earnings activities on US$XXX will operating in XX.X% translated year-on-year CFO as Our million. numbers cash

locations value on capability. boosting Vietnam strength continued group's the And XXXX, expansion while key a as brings same three we network its added proposition, strategic priority. the In unique geographical at and our and Turkey. time Kong, Hong we focus Each location

geographies. seeing year-on-year geos are greater in We added XX% up FY years against past revenue from contributions two our the of The newer seven made the over growth XXXX.

our well, good past the of large in expansion them our worked our successfully existing business three geography. Korea network a has is the of from original we Korea over onboarded example that year, out growing clients with very

We Korea friend to good also our best of continue the opportunities RFP in receive being to companies. international through value proposition

well, doing there and us clients being Besides on gives the also this businesses opportunities to world new unique is to Asia into several won of are the who new we Pacific. cross-sell Colombia completely the group. side

we said the continued to momentum. XXXX XX development As earlier, in up of business logos have XXXX. We our new doubled to number in compared XX signed

Our launch as client count XXst rose to December. XX% of XX%,

organic with existing wins Beyond clients. we sign-ups, strong recorded the our new logo also

XXXX rate pipeline existing FY the XXX%, revenue was net from strong. annual in incremental remains that revenue Our retention and clients demonstrating

to an Now Mr. outlook in hand on over spillover cover update in Chin outlook I detail, the financials to expected have a for effect XXXX. last FY into I'd are we terms economic before like the challenges year to The of XXXX. saw to provide

advertising These near-term, within a Things find longer and and it have recently. off. recently of in had our for budget re-look impacting in weeks very the come at matter vertical number the clients costs difficult saw a largest period. media have laying companies into and may a to of we is uncertainty their digital evolved Macro to especially clients rapidly plants

them And or for their we thin. there set have clients headcount thick in want requirements. to be Some

tactically best serve as challenging but them strategically in So adapt times, well. to will not these we just

we on visibility these from months quarter some comments is For to clients, have of the previously. the reduced their nine- six

fast. So change thanks very to

a at matter of of we impact year Revenue range expected know, you to forward our beginning macroeconomic advertising providing wider visibility. as significant X%. FY digital revenue half of and a growth a are be is This business. guidance prudence. our factors in has uncertain is the XXXX these As to the Because from of of on X% environment, the

get range guidance the year, over the adjust will more as we We visibility.

me now Chin, detail. Mr. the you and results greater through the hand to Let to outlook over in bring

Thank Laurent. you,

mentioned last loss Lauren occurred QX our was of by months of currency couple the XXXX in profit that foreign impacted earlier, a As XXXX.

Before two into EBITDA last me XXXX differences, I go the recorded historical our excluding our over of financial let adjusted performance, ForEx QX details share the first years. margins

foreign from QX dollar-denominated depreciation on due locations. deliveries of of and U.S. incurred receivables local of cash the of the large exchange million our SGDX held dollar the the U.S. main revaluation balance million delivery or sheet a currencies pronounced XXXX, to against our In loss US$X.X we relatively mainly main This by arose the locations.

EBITDA margin have the ForEx is were QX quarters. been largely be excluded, to If three XXXX. in losses and comparable consistent preceding would This adjusted XX.X% over net the

XXXX into Let details of QX the financial results. move me now

driven declined to XX.X% loss lines. growth million omnichannel rose CX, sales to XX.X% largely content, as million, US$XXX and marketing safety Revenue due by Adjusted the service digital earlier. mentioned and to as ForEx US$XX EBITDA across trust well the

XXXX broad XXXX, loss, into X.X XX.X% margins ForEx QX QX, in in QX, point buckets. XXXX. to percentage adjusted broken in and the two XX.X% between can EBITDA decline QX declined XXXX The margins from broadly be Excluding

in XXXX, Productivity project which verticals as in outlook. materialize than several were we change key recruited expenses, Omnichannel a of due efficiency. volume did productivity anticipation expected, service Firstly, and client lower for to in the from planned QX, short-term not CX segment

on back in QX, Further, which transitioning clients' factors these revenue our XXXX, by incurred group impacted to margins costs combined impact site, two in our Philippines productivity The X significant office percentage negatively order from impact was lower to around and were in levels points. minimal projects. at have from work

issue right We addressing are the now.

the support growth, percentage structure and locations and depreciation technology to a status. non-staff X set including up strengthening around overheads bucket costs and points. The these business increased company involves Brazil. initial from as The support as such management costs factors of of and well was business Higher listed Vietnam Turkey, operating as to second combined investments impact in expansion expenses being our newly

to Moving on profit.

movement XX.X% declined period net million, US$XX for due to the to currency. adverse while XX.X% the exchange US$XX Our net the profit in adjusted million, largely to income declined foreign

on Revenue by higher to business million, and solutions Omnichannel technology volumes share from to CX mainly and from the was verticals. X% we performance our US$XX lines. insights revenue QX service some due hospitality the up Next, travel

new and from sales digital with million, by marketing from services key our XXXX media up. from in are XX% clients, Revenue which campaigns and clients to US$XX as existing contributions increased expansion additional advertising of as well ramping digital the

XX% our X% trust at In from QX, business total safety while made existing XX% Revenue up services digital US$XX marketing and and volumes contributed XX% content, Omnichannel CX XXXX, due to and and sales rose of respectively. clients. from high trust content, by service business, safety to million,

expenses. operating me Let our next on elaborate

For XX.X% for stood operating year, adjusted alluded percentage than of at QX This as on I higher costs the EBITDA last QX, earlier due factors XXXX, to margins. a revenue was XX.X%.

US$XX expense XXXX. to November headcount Employee expense, plan rose benefit million, share share-based the from due the implementation of employee arising and to XX% payment in higher performance

due space business requirements. expenses depreciation Our to to increased by office XX%, expansion our support

support the due other sites ForEx Turkey, for telecoms All loss and as technology the maintenance rental as our business in greenfield QX, this, expenses to there XXXX, and and well XX% setting the quarter. in growing largely and for to increases up during and were Korea of rose Vietnam, expenses expense transport traveling needs. Besides

share what let similarly Next, year. falls rose performance. lines. to cited growth our FY of financial revenue business US$XXX we The all XX.X% earlier on service actual driven million, details the for range growth by the some me within three XXXX Revenue across

Adjusted to at US$XX of corporate XX.X% range within and support year. Adjusted overheads. ForEx mainly EBITDA guidance competition environment The dollar, the XX.X%, talent the rising net US$XXX by impact income reflect margins to rose margins increased and adjusted lower EBITDA million, landed function rose million. US our for X% as

Our net instead because expenses was of full XXXX incurred the XXXX. X.X% lower plan the of for income performance the share by only quarter fourth of year rose

CX revenue On million, X% the US$ million. US$ Trust solutions XX% FY revenues from to Omnichannel by million. XX% and rose from Safety Services US$XXX while sales Content services XXXX Revenue XXX rose and increased marketing by to front, revenue to for digital XX

For sales is XX% Safety and at FY marketing our while and of XXXX Trust business, Content makes at respectively. XX% retail Omnichannel CX XX% and up

costs of FY stood share our next a XX.X% for Let on Operating expenses. percentage me revenue details at XXXX FY as XXXX. some

costs, and at million this to due to costs, with support PSP up operational increased other costs volume by higher XX.X%. higher requirement count employee with to and reach PSP mainly with stood XX% expenses cope pressure. Employee inflationary XX% to US$XXX business benefit Excluding the

higher QX, most the driven as Our capital support of All half cost of second the flat business recruitment, in expenses other and by well the expenses ended by as for depreciation the volume technology to year ForEx back was in XX%, XXXX. rose with spending requirements. expenses telecommunications

let Lastly, year our me provide update XXXX outlook. on full an

particular the for Laurent we As growth with limited mentioned, the reflects indicative in our significant in the X% in is and media in clients business there are account verticals. our volumes FY an of current guiding on large revenue environment. 'XX. to into for some business prevailing digital Taking discussions This uncertainty clients, advertising this highly X% recent for visibility uncertain the environment

our have materialize a of prudent at business to front what FY XXXX. will is us possible course We in the over gauge provided time assumptions moment and in this best of opted of in be what

variations four XXXX XX%. in percentage EBITDA of XXXX The factors adjusted guidance due XX% FY environment. the our between points, XX.X% be part margins in to margin achieved this to margin point to time against expected this. uncertain main the increase The in FY impacting Our range the is reflects widened

volatility overhead Laurent we revenue Firstly, including which near-term the earlier up current will such described by as and will beefed support margins. market in our impact management situation create Meanwhile, XXXX, structure have division. geographic Services incur which This weighted for into Center expansion plans investments will represent our the Client team and which the Excellence costs. future and initial of growth includes strategy our also

XXXX, we greater ready this narrow balanced guidance next of we the couple being over to quarters. adjust As year, we for on later will hope and part recovery revenue optimization adopt clarity range over a the of course between year. cost the Over approach of the in get the

remarks. closing Let me for now over hand some back to Laurent

Thank you, Mr. Chin.

to me our confident subside. comments we are just There to underpinning some the remain this four ability headwinds Q&A. once reasons provide growth near-term confidence. I the proceed before Let about macroeconomic uncertainty, accelerate Despite

capabilities. business The one, client stronger first our development conversion and

change We our has a from platform up of pre-listing, years past a believe beefed have resulted profile grow. two We much paid is key this off, in from build our a the BD our in These listing. clients giving stronger to efforts have on. giving stronger and which to us base us

a seven pitching business we have senior with with They number client QX through of services responsible our avenue. and this more had for ever drive our existing with clients. we organic beefed campaign team are throughout hires clients Further, clients XXXX. existing with existing In intend lot up FY wins we for to RFPs through wins 'XX, largest

second end to businesses, different emerge with stronger. solutions will Pacific footprint. point network geographies. possible This XXXX seven would which a much services around strategy. provide LatAm This win since geographies of to us well expansion across clients able even full ourselves have and not Europe our beforehand. more added is and TDCX is into a now expansion of to that with been new enable planned strategically different range wider we Now, our objective Asia give us are positioning the The

our clients. bright us particular, the hospitality sector room domains to retain There's in and travel we the North in XXXX. particular and value for and expertise a grow Asian In remains starts a in core reopen. when our to ability still Thirdly, travel to tailwind provide spot to

recovery numbers. half second North will our takes of XXXX. If a in Asia built off, in a stronger have we We travel see modest

contribute to who spot marketing a we to added of key clients' is their where revenues this be In are service, for clients key this in in resilient segment and Another space to us. digital business meaningfully. should the core started strength to our the our of one-quarter this and now XXXX, up business and grow makes sales our helping has which continue we bright

two higher to conversion multilingual hubs. speakers tends locations, language At are This the elected has This higher lead qualifications rates. the cities which plant capabilities, onset, top-tier and native demonstrates with which an in digital believe to appreciate clients higher we that sales high marketing the and services. long-term. digital we over global can remains growth Ultimately, advertising the the opportunity attractive value our that that or bring market

The deepen embarked our more to of our strategic launch strategic on Singapore. as Center our to will us Excellence clients enable center initiatives have of dedicated provide we clients. the Lastly, our relationship Digital to CX such advisory in with

their They received rethinking AI ideas a at help to evolve level. to Plans insights. amount very them are have CX request strategic speak. TDCX consider as adapt to their strategies. a meaningful We with and their need strategies come optimization, of model we They

data to are do advise now So leveraging insights is platform. and what machine-learning We we not science tactical. them by in a our from position

other Just grow to to redesign increasing is perform. complexity work of in their client help of illustrate to strategy their light one asking on them size advise beyond way us their asked us sales their and the advisers to them existing has CX strategy

sets of strategic data years scientists We a have trained We is this data huge information believe with and consultants. advantage. and performance

science. down is by Our data execution global monetization here approach on remaining to and augmented by to clients' our double partners topnotch

our be clients a differentiator. services to strong pool the TDCX With here have continue talent will ability to we value-added our at that provide built to

conditions, current down efficiency very I'm benefit. position to strong our such will the our we Further, mid in of remain points hospitality over such China will cost position continued a will growth travel of help markets as recovery to and long-term. us the the the efforts navigate better clients confident of as and once and their later optimistic we prospects visibility road, sectors market get better to these be

Jason. With that, let hand to over me back

Thank you Laurent.

ready now are We session. for Q&A the

to two begin, maximum we Before each. that you of request your keep we can questions the

back to please. we caller we have you can queue will and please rejoin you. our have questions If the more Operator, come first

KC CGS-CIMB. Please Thank question from first ahead. of go you, Ong Our comes

me. my Morning taking management. question. Thanks Two questions Hi. from for

breakdown the in provided provide extension? And more revenue such trends of guidance been you around layoffs, of headlines terms if the with campaign on tech can clients size as impacted an TDCX negatively recent if segmental can have please? confirm any Firstly, we

to headwinds baking macro through Question further seeing in can are give passing the fourth number harder Is And your end this you similar some time customers around we of further any quarter? cost what a operating Thanks. two, color have given headwinds? to seen guidance? increases ForEx your margin in you

have that. you, Thank Laurent here. by Mr. first I'll the question second question. the after I'll take answered KC. Chin

and question I secret year. a safely say that that are provided would around advertisers definitely not announcing which the the segments It's the been Their have impacted. is is advertising guidance impacting most, the for business the the them. negative So one see us guidance you They've can digital digital big of layoffs.

would for But difficult it digital to very that companies advertising we do in us within So be things. not be three those impacted sector.

we do work. do OCX moderation their We them. of and for We do customer the sales support the content some

see experience is business part of near-term right impact impacting now side So and the in forecast. us soft that the the where volumes biggest customer we the come the is where the on have OCX

just So uncertainty. We again let see me bit. backtrack little a some macroeconomic

a recently. on also seen quite in manage and efficient reduced but expectations changes to have But up forecast terms the CX their We of softer business. clients that's That's to of us more back a of come with really caused side. bit for really very volatility ways the on looking volumes,

you going So with very support challenge to turn The it to and clients. to that's is need around visibility. see months We and may for things three us ahead we fast. adapt our But can as are can or services? possibly Would rates. impact continuously an Fed other consuming medium advertising be of types e-commerce digital see and have the the small to who on is increasing that or going interest -- increasing enterprises are

clients that how not impact to moving going really forward. is our So we're sure

looking really at So not visibility, all also one visibility digital optimization our driven three-month limited by mostly right efficiencies. and and just now clients advertising

the to as the answers Chin Mr. that well. you hope margin talk guidance I about want question. briefly So

Yes.

first little of a guidance is that of margin in guidance. this of factored month there was to year the bit volatility the the question answer the ForEx On one CK's continuation into

scale would of Going the over longer was time. period say forward it each I were kind of other ForEx of

So but that a it remains the further will extent, not in be QX, near-term to some as as margins probably but fluctuations there to certain be be impacting will our seen. significant

On their as of some other the is flattening due is by volatility there and our clients, the business are -- that here about to side they made control equation clients revenue volume by addressing facing. coming mentioned some reduction the through the what key Laurent own to the of some of that

bit side in my will far also in the overheads be That invested done things said to that script growth as pace side flat nearer we a the especially is the and in this way with as a On periods of address we year our overhead volatility to headwind the to cope I this year. recent our – now. into sort overhead have actually way business growth. cost our all is earlier that a of also have to going last mitigate coming thing -- revenue the to of But try we bit these against

essence how is margin the So evolving. that's in

evolve foreseeing year. to are We this

on. mean spots And travel, business, in financial services gaming, as in KC there's follow if I bright new some may for I well us.

contextual it's advertising really other some something that So while well. as the -- is digital of sectors

forecast. more to to else it's than macroeconomic do a that's driven revise So us impact anything this

performing As far end are as really is at of the we chart the with top clients. our the company performing,

at capability confident this So moment. rise I'm of very to our

going It's concerned down of be makes look And we we're long CX which parts is it's But and what double to are sticking that, to when or services in back our great we've shape side The we're the sectors. is, up as these our investments and to guns, providing and clients at sense on continue sectors things ready to more with made as in on you far it. how again, want really those last, question that when the affected. shape all not for form.

have you if so Thank much just Can I the follow-up for I explanation. may? one

ahead. please yeah, Yeah, go

year, client the short video Sure. have that within won you last on new space. Yeah. mainly It's the

that Given for the we Thanks. potential do impact any recent headlines foresee client?

because Thank to from the potential still you, early part KC. our of tell, some of bit this relationship. we early client A have growth

our because adapted happens then forecast, what we see is narrative accordingly. more that now So really we'll right we haven't until adjust

may point. unfortunately, business now direct, so there more the if the at this huge or Fortunately us is is right impact be not any for

Got it. much. you Thank so

welcome. Most

next Please Sachs. our Thank you. from of Goldman We Pang now go question have Vitt ahead.

opportunity. from Thank maybe. Two very me questions you the much for

Firstly, just wanted guidance. sorry revenue understand to sure to we back it that the on go right. make I

is trend I somewhat think, if XXXX. declining the of assuming midpoint rate quarter implying from your at guidance you're XXXX that the looking X% actually exit from somewhere some fourth about

if mentioned train are about I back trend understand believe what asking to in earlier. go led wanted you line the of badly? numbers going bit like there. deeper there I that just things couple to this currently course, of you're observing, were you Of to So and a little that to terms things But a

terms already Are more do be of view you second this year? that, that half? the first that come how top will also see of the of, time color the would well in can if first seasonality On the half in most second you provide of weakness half trajectory as about we in why at going extremely between in half point to helpful. Any the or

So that's one. question number

in months, office see think Brazil I you think opening you new I more two, we of expanding a the geographic seen into many new couple well. just number we as last also in Question have recently

impact So all? in these wondering, revenue of for And geography we in with positive geography, this of et any and are cetera, momentum expansion at ramp it up seeing terms these there? all to will how the some why new coming not long seeing new take

your And mode, here our what about we I'm Nice are off And half. bit the color bit see goes is more laying taken really hearing saying, you revenue softer can cutting the volume, you, be then general. when again. you is on we're first the know because panic Thank for but salt, imagine a seeing you Yes. everything little think efficiencies, Very panic a looking the more want of in in nailed these On is I pinch early the guidance, not to of it first of driver part decisions a on first order half you from guidance. of really question the yeah, saying to ability in versus you're the – much day. almost Pang. here revenue mode. their clients cost clients with they second

then later than they ways in And because down could the volumes the are change bigger road, actually much expected. different

Second now mention outsourcing efficiencies in the management do that layers. be clients layoffs and they're for have the stands to taking They're for because outsourcing And or could are I more really conservative needing past months. looking And we middle did forecasting. benefit. the that we what I commit clients going think cutting us volatility, question less a when. to fairly to a can on their that positive with can impact be approach to is is The going to big see right with three

the on types bets half. second make We're not to the

worse? maybe the second of the at or increased point. people half I this know, It's interest turnaround don't it hikes number will some So rate make but

So we're taking approach. very a conservative

difference first half, number better but hope and a the There half can't that's point. at than commit will the half. probably second for the half one be much I So is that second first this definitely to between

of that to So that's we X%. range gave wide X% why

digital on I Maybe here. Ed has advertising. the around is this of want to sort broader said and supplement just trends Laurent sort what Pang markets of

look in on sources grow was which we're close that is market half to But X%. of think at the to the happened what XXXX, just getting steps at the sector expectation in for around think you was some they're based expecting if broadly of XX%, just I year I that that some public from at XX%.

of are XXXX. basically clients think to expectation some resources adjust having I for So and their sector the our including

around There is are to some this by that digital early we to but steps year rather, to expected market XX% this expected our XX%, advertising that's grow that year. grow says originally moderating

through drastic for that going So hard. client XXXX feeling in seeing want the hearing cutback that of what adjustment in -- we happening having is so from to rethink quite a after that's to we're quite sort repercussion clients. think of little less. what's connect I the just this think And are downwards and commit, bit year But sort clients market of the to think the to broader I willingness the a I terms in is what's of are sort happening market of I

some travel as I spot or possible follow-on growth of rise built there in in over are modest expectations it a second question If to our be for our if travel spot interest for be bright delivers fairly year. Again, impacted will the bright for the we've will through mean this the to not will rates, stand And business this, on we travel example, benefit. not? a half, it's travel then

a possibility a can There's winning this provided that for us wide satisfaction. which the things clients lot So our more there's very There's going point. control The to client we new our all existing number those good are a at more doing. good forecast that. business, were they we we within. we're and depend not that things doing satisfied also to Otherwise come and around is macroeconomic beat of that new on clients good of capabilities business sign things with not our range. factors stay a from winning we're of if under to wouldn't It's do. stronger possibility what a put a some We've

bright of is the the your of geos weight. another we that in all spot delivering back enough, quite bit news they're gaming good their pull to business opened yet a opened be that to question which back with not the been about the to starting And year new are on last XXXX. us seems Coming for geos and that's

We before see to to So right? existing proper geographies, our long gaming minimum two great. those relevance of our think growth opening geos effects with a is going XXXX, we and they it years to no new Now in take? Well, few how to of is business, were clients. three to strategy essential but are

incredible an because about be a little to of XXXX actually a big number excited I'm So it global position clients player. we're see We clients. bit in going be a from to

they And at that especially are could happy example to interesting year the We the an list. to vendors that us. also number looking see optimizing digital it now in for and marketing is I'm XXXX making for TDCX of be have and sales

industry than But ahead go to fundamentals that since forecast What I'm but too our we're BPO the for trying for we've matter solid strong for more rather strategy need be on we're of be I really spot a for in back. delivered matter of ability the to bounce want and we years. outsourcing the sector looking see where far don't so importantly say at way to ready months our we far is the very a in to TDCX

a All Maybe there. Thank quick you. follow-up right. just

Just share, basically help to seeing at double are Can are industry industry actually are the if meaning can as a isn't we result year? the for observing comment losing you clear the in also are seeing but on you landscape not well. what similar say on be quick overall that peer you market of you that exactly that interfering this

we bit have, a difficult They different all have to than us very tell different for peers. geos. business on a It's the other

to asking is you diversified. may we're opinion crisis, think their Some that And think of given are vendors. that's in general, moments are going the that guidance more then them. have lot I own be a clients and much by more what I from in But seen -- my

of the top we the at league and TDCX. at perform to need do you So,

I But could that constant So, and since even an has to that been instruction efficiencies quarter of performance that's their it's sense in just to cost and so hard important. be it's it was efficiently second this actually need working productivity. we're important more in is. news going be that's and in not going on on know going to also a pressure perform thing the XXXX for they but efficiencies. clients we our cost have to to productivity well, efficiencies perform good

some rethinking very as And moment spoken strategies. where at on part consulting and strategic once doing again their we're I've We've our advisory important division the of we with that level a again about playing front. are well clients at into they're transformation invested and this before

to of that position which a stand big invited to So, we well again And hope for think the XXXX. that's to coming long-winded. -- again going win. the bets sorry are question. ourselves I to be we if answers enough handy I be Pang, we

so much. Thank you

should expect things actually that of into Just the seen this or at XX%, before we be XX% definitely back again. XX% rate high came from something going I what may your to that have down jump will last back Adjusted number margin normalized Is we we trend run the see guidance. as EBITDA here queue. historical XXXX XX% the actually beyond low well for one to in

Some be colors there around would helpful.

I'll a take this maybe more basis. general on

of I -- our So, some our more overheads a wanting of I mix really but side to From it and details really matter not overheads taking a to clients in down it's has over keep the game. Mr. to of reduction manage the direct mean guidance. view the for for of the point revised the on by and than is Chin top on given cost overhead don't context faster volume guidance color being of some pretty by at and mean bigger my perform we're of and that able

the which we've the the as our for can guiding this it margin past, margins right element point So, there's reduction been is as model. is to model. temporary And long view, on contextual. in that's our a we of don't view the at business point, believe that of a continue we long-term business From change -- we we're have

change to it in if Mr. at chime Chin, point. the... want intention no you on So, this to

Thank Yes. you.

responses so tough times to to further to plans ensuring speak invested that the quite we still at it are in state we necessary address best closely the stickiness critical But to over-hit deliver ensure sort our volume contraction. challenging that investment same want the of what watching still to the time, the direct refer through clients, of and time. in this those through going to has who cost are we service So as that,

the fruit the recovery, to that in volumes recovery. of times signs there when reap to So show we the will start the be of

or pursuit year on pursuit some automation that our our there of we OEs, indirect working. investment in way of that And since of -- also embarked in we the have fixed in some the better technology are of overhead last

and and to three two those the long-term ongoing project through speak, years. motion still from projects ranging to are still We going so are it's a

those projects are clients as we So our better. tools, believe those part transformative those speak, we that projects, projects are not we of necessary extension to porting those because platforms, that are support our business

XX in to near wouldn't to XXs, the will in next Whether be So term. you the coming, remains comment that next be go and it out compression I say, year. back like I be to will going it the recovery able a the would I seen. slight, going said, there will year mentioned that in to the pan half how second well the months to

more be So or clients sacrificing going quality will are existing through and tough mindful well of new in for new our the true new as service juice promoting going the plans without our projects, as times forward. we who

parts So to hope I the business balance in reaction it's a I fluctuation. moving answered have overhead that lot we of in management of your terms to question.

you. you. it’s Thank answered. Thank Yes,

We have Suisse. question our Please Varun Credit you. from ahead. Thank of Ahuja next go now

for Yes. A Hi. Thanks the few opportunity. questions.

versus cash the obviously, the into we call? that you headwinds given about think locations. cash the going seven of some expanded the generation. the about alluded on this macro on think How And year, in given and XXXX, during should So, sheet that how flow we option an of healthy early M&A, you organically? plan So balance there's inorganically should context, in

thought of that the So question line on number just on one.

to A impact Obviously of X. and trying on few there's the business. on talk also clients have that front. AI generative Question kind a of gauge about the lot

be helpful impact? That's kind given about would some making think generative but management the are AI it and investments give I you color, number So should can if two. its of about now have how right you we it's we term what it? thinking -- I'm the on long call, more know

can in Yes, a more. little one bit squeeze if I

that front? same remains that growth, time on aspiration or the growth during Thank still medium-term the Your there you guided you. XX% for any change is XX%, around

now so much. that, we thank midst demand before be opening Varun, Plans right. And will Brazil clients. quite offices we That's have as are on the All few we're Indonesia. a opening I of with said speak -- from XXXX, as we in geographically, that questions. and that you we

our So they a as of start with network. business complement

with We network strategy will country. where XXXX, needed did what strategic committing presence we in continue expansion that in by XXXX, to as opposed in a network, we

that over in have fast performed to past better three effect it's that a the so we've reflective of two also And P&L, will but the expansion our probably years.

languages, We in network think enough global products Asian is good now languages. our to and to our place in a English, offer European we have clients

all at it are almost. geos depending on covering are we'll if demand required. see And new We

XXXX. So that's for for plans the

as or AI And have the and general. of good On coming --our optimization the the consider years. strategic now started support And leveraging support clients. our number made why We've number to level automation, process is further thinking. in this sector side, that tools consulting fully that new. of trend that's at generative just our most we to that further for a intelligence quite not consulting of services through lab we we digital years. AI clients artificial a number our optimization. that a it's from with the AI we've investing for automation, is for are a but not also we And services, developed progress strategic then We've functional generative also It's of in division leverage provide

at So going level. delivery we for particularly, the strategic not science data but the at also and AI are just

the over say -- M&A to I to the maybe add wanted on about I first to one, hand Ed before I talk Also over that M&A well, hand is side. last the to

Laurent. Sure,

are we've a sense we're of different advisers front listing, from coming ideas since very the a of receiving On very network confident think on the been of with sort obviously, out I look, lot what's a M&A we bankers good with there. where

for We want we're in of on disciplined business to with and of as be to pursue to very of makes terms of a good with. sense profile, it And proactively the client terms footprint, climate, very well. regards have us in looking in with were financial what with to more the terms disciplined what the the compelling we We're closely a the mix. more that look type it current lot for targets obviously, engaged in

interest able very is the on rate a acquisitions. us other place well as puts noticed to in still hand, observed strong balance be that act you with for in But position a I cash think, as in particularly deploy and it high. strategic where on a obviously to good us to we're have the we It climate

that on tuned stay So one.

working I think hard. we're

of as center analysis things looking translation excellence document targets those our to there be very I AI out we the doing. what are I trying talked that is sort is team looking for the said as of all thousand to well said market same think terms what about But horizontal I explore, into sort of and of unit as processing language synergistic we're think that achieve. that consulting are we a as the at to time a doing, previously, fragmented interesting well we are what could generative related as vendors us that for with what like; conversation at is ideas AI in you of try few sentimental blend to is

we're excited So bound, Thank the this think, opportunities with I area. particular quite are you.

growth, you. clears? still last XX%, kind Thank the once this of The XX% focus remains was macro question same medium-term on the headwinds

changed in It depends went Varun. The define medium-term, how have things right XXXX. we you IPO since

known So on to a was globally the given through back made In outsourcing low business difficulties you indicators in of the advisers. the a giving BPO guidance I have if assumptions moment, the we've XXXX. in or given us number current companies we by lowered growing have the effect,

these revised? which crisis kind almost plans -- we've of If the the unprecedented. they now is to change is, question economic once no have have this have over not, been So assumptions we gone absolutely

is We're assumption. And if region. should change no fast-growing no there impact our we in reason a then, there's

clients. have key position well not Those with We those new We're leadership markets. doing fundamentals. economy have some in changed

pace the tech stop question Now, will when? it's the is going digitalization. new companies recover? same, think -- cannot But is you the to of economy are is It's the they always happening. the sector I

all are essential the categories time. not their delivery. go of It's is an to CX about New away. created part

complexity for, aim a is really as see good What to higher work is strategy the the rising for the and has which our top type TDCX and important a of increasingly them. again, deliver is And be for complexity and opportunity. going to trend clients to intend talent, the strategy to need it for top there we top training, be processes is we

beyond. XXXX and Thank And you. luck for Good you, thank Laurent.

Thank you.

question from ahead. of Qiu go next Our comes Sigrid Please JPMorgan.

for opportunity. have Hi. you very questions. Good I two management. morning much Thank

Firstly, and selling I lens understand that having witnessing are some of client of cycles because discipline. greater competitors your cost are

with think the want trend? to you maybe penetration? are how observing long well if contract same I existing you, as so, do how you is increased client just deliberation maybe the with new as in acquisition And And it confirm So would affect client your XXXX?

mentioned the that, the my there's question to will productivity employee for on employee XQ forecast be And a and hiring. I'm with of a be, us And expense would for expense. wondering reasonable you've second XXXX. base potential reduced

you here can we to as by would go great break be It So me. going geography how That's more hiring XXXX? would think plan maybe well. for it down you. Thank directionally, detail maybe from how should your all of in if

to The make. in longer taking sales yes, our you, can of see confirm I cycle, they these times longer Thank are certainty Sigrid. for clients decisions

business able they're decisions delaying bring is from The deals. faster in us we our clients. to go-to-market we're to So new on from get yet And some new decisions ability sitting close opportunities. and in it's have still existing we

that yeah, observed I So confirm we've can trend.

decisions, I'm make clients When need need to year. make they possibly to second sure is it their going not half, to subside? where because

because them lack is having then confidence difficulty. decision. to on pressure the sitting of and make on that of finally They're So

going they're the we challenge through. So understand

QX, I to or did have that some Chin, The use our expense, but kind Keep can your we we strategy think of our challenges benchmark part for is, with a employee in will requirements. as mind operationally, Mr. question adapted meet of I partner clients' we QX XXXX?

you And the But Ed approach sure XXXX. not to want so, to in? use should do I'm as this chime I

Yes.

would was are sort to think I on, on, on I working XQ add there it that. think unusual specific because resolve of we now was, I say, just right relatively and to challenges

of XXXX be XXXX of might sort year more performance the full the representative at forward. instead looking think I of XQ going of

be there's we still there mind factor inflationary well challenges factored, as on swing a sort really in Chin sure which bear that It Mr. in the pressure. process. particularly Obviously, could the I'm again, margin's new must of has thought

Yes. Yes.

said response swinging which earlier, is, and extension us quite an the the XQ our platform to trend for serves clients, our what volumes as as unfortunately the gentlemen's I staffing of both is of recalibrate close a So into employee cost state with wide to to as bandwidth.

indicator serves hiring staffing But terms as XXXX having of planning for small a I last. in probably would strategies. of our recalibrate a to of quarter said would have that, and say, we But it and where first were revisit platform us

room some profile, whether see that gentlemen room productivity, cost in of tenant the of Also, to both for revisiting of in have alluded the the revenue early conversation. part optimization against there's the challenges any to terms for mitigate the

a learning and re-plan is is it it So and process re-execute.

some to through some these of like of extent some locations. And a also -- the Philippines a referable we which are Yes. events going to to of have deployed units, units these and what and leadership strong pockets projects all certain the lesser in

you. Thank Okay.

you. Thank

of Tan next Han comes go ahead. question HSBC. Please, from Our

Thank you, very much.

being those reduced how employees And for margin So year? for to price narrowing you EBITDA this guys of of on of wages? ask is Could much your EBITDA much that talked how guidance sort margin. over impact the about contributes utilized, sort lower the the spread - are utilization I that

missed the you again? repeat question? we Can Han, Sorry,

Yes.

impact pricing, contracted? on those spread margins, for that the how So are much other over that being than your employees of wages is has utilized? lower EBITDA much utilization pricing, How

No, it contracted. not Yes. has

has employees margins the those being they are For utilized not contracted.

Okay.

any expire contraction? Yes. don't So you

For this year right? from erosion margin pricing is any that of contraction,

not pricing No from erosion.

Okay. helpful. Thanks. That’s

about ask to impact. want I question. final one outsourcing Just

be offshore you are of this part said are of a to the clients that in but year, later see that You transition. lot them that saying the asking vendors might onshore

with incremental that if deals looking or wanted to to new business BPO won So offshore any the have ask all you are if vendors? stays I the from the clients big

have network big the onshore BPO think vendors all I and both big a offshore.

just probably locations. They need will to it they'll the keep cost to lower relocate So business.

as So may employee can we revenue flight as per won't erosion, much the the lower-cost location because but the have to of possible. maybe say that have wherever price

that's And moment a this strategy clients a of quite our natural like efficiencies. in for looking

Philippines. see I industry the in to think, into clients say So U.S. let's away you'll yes, possibly move from the looking the

clients but lose for us. a well. not can we location in the Colombia it's lower we as looking also optimization, Asia India provide cost Pacific in in may US that in or for impacted by to positive We're be cost or So for

well. So something to keep in mind as

we good see, so yes. of trends And in that it's a I can the terms think one

Okay. Thank you.

Jason Lim

Thanks, Okay. Han.

Q&A. for all I you joining the us. Thank all of you we think that's have for time today

take If on of feel you On management just me. are we out free and follow have signing behalf Thanks to care. any reach to off.

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