TDCX (TDCX) 31 May 232023 Q1 Earnings call transcript

Ladies and gentlemen, welcome to the TDCX Q1 2023 Results Announcement. My name is Neil and I will be coordinating your call today. [Operator Instructions]. I will now hand you over to your host, Jason Lim, Head of Investor Relations from TDCX to begin. Jason, please go ahead.

to Quarter welcome Call. Earnings and everyone, TDCX' XXXX First Conference Hello, name Head the Jason Investor My Lim, of is Relations. Allow the me call. on to introduce management

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

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

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

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

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

U.S. dollar. was a prepared or X SGD amount of any other that at a to USD This USD translation converted rate dollar Singapore this have representation It can construed translation as convenient be be the to should of any not X.XXX. the done We to for Singapore rate. dollars at

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

Hello, thank you briefing. TDCX' results XXXX and us joining quarter first for for everyone,

Our continued at us. colleagues to amazing excellence relationships of TDCX Brazil, challenging XX efficiency many forward momentum for of through want trust their locations new whom a QX clients, conditions. particular, Vietnam team the warm who newest started. our our for market and had thank job an with our like clients their have our in long-standing We'd Turkey, to despite in to done TDCX team since for focus welcome thank we've Also on and we spanning a keeping our delivered entire resilient continued set across efforts operational geographies results going. In

performance. highlights Let of me begin with some our

Singapore effort, our notably a with The this As of Malaysian, X.X% of has Thailand and revenue Japan all our local XXX our a top currencies, strengthened across guidance businesses. subsidiaries' end foreign year-on-year against USD million quarter growth. team dollar an considerably we delivered representing the great at Philippines, result

same CX period increased our service would On currency omnichannel revenue constant by This a sales year. basis, marketing across last XX.X% the and and digital lines. was against driven have grown revenues

environments Earnings up the different. USD to of The others, recap, EBITDA environment, conditions our reversal for included expenses the to as vesting criteria. the a to costs. market capital includes, In earnings and Plan, not To therefore, XX obtained, very among profit this and we was set total had Program shareholder set The be period current return were November robust performance expected Share equity-settled $XX the grew our share-based were reverse Performance for key criteria for XX.X% business previously PSP market of of while million. XXXX, million. million, to USD was results X% when performance program targets Performance Share net some in accrued the X.X payment of some

the Excluding declined XX.X% USD year. EBITDA XX.X% margins XX.X% adjusted last and to to declined XX million reversals, from our adjusted

reasons will provide for this CFO detailed Our later.

expansion, geographic the strong extent, costs and in our time support shared of staff growth much in ahead margin of summer projected to compression peak due such to service season choosing To planned a is as keeping in travel recruit ratios. and large good the

for as the guidance levels that these nearer over We to and these, are these arm. consulting course the levers margins CFO are pull year. later. and cost Center measures can And believe bring our run and this the of more our to on will investments in-house long also invest initiatives We productivity Besides back share we in to such the TDCX Excellence our necessary. continue business AI, Digital of term CX our

that of performance TDCX to very continues that the clients, demonstrating proud execute I'm we highest at top for from remain Operationally, at execute perspective. levels. continue well to the end very We our business a tables

Our XX% as to strong March XXXX. client XX% count of by rose a

from from top that broad-based, subsidiary. excited we Hong clients outside are that of we added our and X was This Kong rose growth Our revenue included XX% clients year-on-year.

revenue revenue, we top as year. XX% contributed our X a XX% As our last of the from this down diversification period clients result, improved same in quarter's

keeps returns, want of the we of return highlight which peers. equity Lastly, to underlying of of many A our on our our strong strength reflects business. ahead XX% us

to Over contribute we've a strategic and really has geographic embarked the on years, meaningfully. X last expansion, this started

all For recorded XXXX, QX what contributed example, they revenue in Romania more in than QX Korea, XXXX. Colombia, Xx

of year in Hong part QX geographies year, Last QX Kong, All and XXx our XXXX. what a we've was revenue Turkey, Vietnam were just to was in, in new like 'XX which ago. added not it footprint compared geographies new from

our Most support Sao campus recently, in announced in launch the Paulo, of we key gaming a of client. newest Brazil

We opened further XXXX, network. Asia in also TDCX' Southeast our Jakarta in office which bolsters

a the wider Asian is globally, Southeast across Internet companies. world. growing head international tech clients With by This reach. of XX,XXX regional and population over geographic XXX largest Indonesia million large XX% of the us employees ecosystem are excited more new a count serve our market penetration empowers of with and over we a with to

highlights. into client Moving

As mentioned earlier, client continue we count our to steadily. grow

look have We count yet soon. campaign signed not as While to our at XXXX, launched. this client clients another up of stands March forward been kickstarting XX X but

growth count As shared metrics. improved have higher and broad-based diversification earlier, the to revenue contributed client our

of this clients remains in from in several year-on-year some decrease contribution by verticals, revenue terms revenue XX% a slightly our The In our contracted of at this growth advertising clients offset of quarter. in space. volumes from with digital other largest from media partly vertical good and

a hospitality travel second by vertical rebound strong was This growth the of revenue. XX% strong with of in XX% and vertical saw further for cross-border travel driven recovery. year-on-year, at Our room largest

peak the outbound to ramping started in as period have travel meet for summer the half. as We up well the increased our Chinese second hiring demand

shared our on always focus have differentiator We TDCX' work. complex that is more

processes. strategic is need the moving tools the deliver priority this us. ladder to providing and and in and by attracting for training tech good intend AI, And up we key Now speed for complexity the top optimizing talent, given more the of development our all

our illustrate XX% do to marketing average of for X of our this digital on and campaign deep account across Sales and we clients. and on me management which analytics, operations our management, experts revenue business. digital per of involves how advertisers, focused behalf SMB consulting Allow digital mix, and onboarding, creative QX optimizing represents agency revenue marketing, cycle lines life advertising marketing

from recruited in diverse this capabilities. with are higher backgrounds range talent qualifications Our LOB obvious linguistic of and a

involves revenue and interventions On trust content, of which and it the complex mix, that political knowledge norms. moderation represents XX% cultural of human our interpretation content and nuanced safety, require

some our a trust ensure safety fintech listings complex for as performed of well sales, range annotation and procedures functions of of and also data We accuracy wide KYC or to and the for as clients labeling authenticity work. rental

our Lastly, our or of The BXB XX% biggest is primarily vast BXC revenue complex interactions are service these line of majority discussions. QX remains mix. CX, omnichannel which complex

For example, many or customers the wide deal of tiers our most and a We the who require complexity multiple demanding tiers clients highest global serve of escalation. with or approach. have typically highest paying

skills employ and time require as escalations mediation and empathy to are intervene. to Others sensitive us such

expertise economy and clients deep of has with Our long-standing provided new needs. focus domain client verticals understanding and on of innovative us

and our technology strategy our models to Excellence use as clients. emerging doubled Digital develop to even Center pilot new to our well down to value validate of greater cases. have we add CX This support as practical to on CX We launched real-world architecture consulting January,

composed AI revenue allow journeys, analytics. XX We clients customer launched relationship deepen which algorithms, data capabilities, By leveling our AI, in expertise and leverages table these TDCX the specialists at our our can, announce showcase therefore, to clients hyper-personalized consulting recently which team tailored obtain AI consulting turn, of up think and and all business their to specialized and drive marketing expertise, science also and tools helps on loyalty create with will, domain to I'm division, experiences, deliver will will CX we're with growth. applications The journey. targeted strategic strategies, able is happy seat clients insights CX we a a that customer AI in help which and clients.

We and exciting generative are demand. lots presented wave, investing to opportunities work. are and meet to AI and will internal generative our focus we employees which enhance to new AI are fulfilling this in up and on fresh enough pivot nimble of There agile rewarding free more quickly by also tools productivity, higher-value, to

We more time. in in share due AI will developments about TDCX

has footprint, the we To evolving expanding right sum excel up, continuous TDCX and a with innovation, with in a solid and presence a constantly technological culture fundamentals, in positioned economic market. believe this I BPO clients to well are new Asia, globally aligned

macroeconomic outlook near remain to lengthened, you the Before the term. my greater uncertain. Chin, through upon cycles in hesitant Sales outlook. time near-term to speaking, speaking, more will and guidance Mr. commit clients detail, who and our I in bring business Broadly into generally like to briefly touch pass I'd have remains results

On a clients the QX of earnings. more largest optimistic hand, other recently have reported our number slightly

cautiously are FY will into optimistic business We XXXX. improve that

With that, to Mr. me let Chin. hand over

Thank you, Laurent.

XXst Had revenue for subsidiaries' Notably, X from dollar compared remained on basis. a Thai the rates of of group's peso, XX.X%. of X.X% our Japanese the of exchange XXXX, the to months some March the risen would translation XXXX. XXst XX% currencies reported Singapore ended renminbi revenue against presentation local X Malaysian Singapore yen against to between depreciated QX currency X% XXXX, March XXXX used operating For the constant the rose QX currencies Philippine have for the baht, ringgit, months the and functional dollar by ended

as a profit business period because reversal plan to certain expense vest, This USD XX quarter's the not USD expected earnings X and million, are X% to This alluded reflecting had million environment. EBITDA performance included macro XX on. a the USD the XX.X% and payment earlier million. current of of to share-based result share net increased as was this, of awards net around grew Laurent Largely for to

professional effect XXXX, to expense in to adjustment net prior foreign adjusted periods. reversal With adjusted for losses exchange fees include EPS income has payment from for X, included or gains was acquisition-related equity decided the adjustments net and the in that EBITDA, and addition adjusted sector the or group in January share-based

items to course understanding performance not performance the items identified of of our the meaningful business for indicative we more underlying such of additional previous Over the operating a renders the as year, have readers. the that of and adjusting such ongoing

on EBITDA for income the been adjustments similar XXXX. adjusted comparability, made and like-for-like QX net adjusted have For

While as tools, measures these and in them IFRS. information not we financial for useful should under substitute results a as analysis or non-IFRS the reported consider provide financial to isolation you have readers, as believe that such analytical limitations of

the XXXX quarter. the during detail from I to EBITDA QX XX.X% declined Adjusted further USD results. as to discuss costs XX will in million slide. in XX.X% margins in incurred higher contracted with a later XX.X% Back to largely this

net adjusted USD USD XX XXXX X.XX. in our declined landed EBITDA, Consequently, was QX from EPS while adjusted the USD income per XX.X% share lower at million. X.XX, Earnings to adjusted

Let of by me insights service next revenue provide our verticals. some

was by marketing from Revenue marketing from decline new sales the clients but million growth and digital digital revenue services our to partly advertising expansion XX% by of XXXX. of sales and increased services and in content, digital business and of a the existing omnichannel growth in trust, media onboarded XX CX Our key followed in safety. to half primarily contributions due led by clients by second a and by offset our line USD campaigns volume

due as million increased well Laurent XX% travel in from earlier of slide. and USD lower from existing digital revenue safety technology to gaming, has to different in volumes by Content, the primarily FMCG mix declined rose advertising and in X% trust media campaigns XX volume requirements service million business by CX the due clients the by USD hospitality to expansion the lines as and decline The to verticals. vertical. an been shared XX revenue year-on-year and Omnichannel

in on XX.X% provide movement X adjusted to in are There QX XX.X% Next, let margin XXXX. me the EBITDA some broad XXXX categories. from details QX

that QX from XXXX, aid we did in XXXX point. of recur largely percentage Firstly, the COVID-XX-related QX not grants government had X.X Singapore in

with coupled operational X.X the higher a infrastructure percentage attributable business was point traveling to wage expanded to due and of new there cost more nonemployee costs. capacities and recruitment and impact Secondly,

corporate a relating costs. employee which higher also shared listing equity compression costs was point sector compliance up share-based resources, higher becoming there percentage billable support with higher and X.X of resource resources expense proportion expenses, deployed public cope group obligations payment reversal. to since drove versus and excluding Thirdly, requirements service listed; campaign benefit higher This the to included

To elaborate, for in advertising headcount gaming, in fintech and key agent our we to have by some and some digital sectors. on months volumes X cater excess the higher travel of planned clients hospitality, payroll our mainly

and train support ramp-ups. retain, resources recoveries and program opted business also leaders for assurance such team We to as or quality future

the X roll compression. areas year, we this some of targeting are margin to recover we forward As

the over-resourcing of closer engagement of new gap Firstly, focusing volumes impact clients better by rest for optimized projection, visibility the are with on to we of be over the and year. our business existing

progressively part for of the from share higher outlook the of be overheads These we new scale from in considered reduced impact our in slide. economies will I which been as will Secondly, nonemployee generate costs better year, our the geographies. next and have

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

are to year XXXX. our X% terms growth revenue currency We reiterating on X% constant for full guidance the at

also such recently our include as Center and TDCX Digital adjusted arm. our XX%. EBITDA approximately This our launched outlook margin not investments to of Excellence We XX% AI maintained CX of does

With over that, let me to Laurent. hand back

we Mr. for are Chin. questions. you, Thank All right. ready Guys,

question from our Ahuja from Instructions]. Varun now [Operator first Suisse. have Credit We

questions. X, quick got X I've

I having if suppose at clients, but ago you visibility be helpful a the improved a the will -- Is were in early since you gave brief Laurent, color year. that say, can how you peak provide gave with to, First, X quarter is investors the months outlook for comment on understand, over last it the you're the the you're compared the months original more has discussion X or when obviously, you guidance?

we in XXXX? So as how you ahead move do see

think Also, initial do verticals business have I you over you on be se on overall per understand see impact started AI AI, there. movements how with you the segments, But will to on of does by these So may help AI. you and one commentary those proceed? And mitigate you of some kind initiatives number that how on headwinds overall most? visibility that's impacted

Secondly, on guidance improvement. margin revenue given will in an headwind you expecting a second provide, Chin, but Mr. implies gave the on outlook be if it you think side, the ahead, we on understand I more can color how helpful going half. it, And you're still should

guidance economies growing So may revenue -- do how be on of given as the want rate same based the quarter? at you scale, to first achieve not may

I of specific X, can level? expectation? steady-state And -- So ago, are your the don't we country-wise, want where should country, you if countries secondly, provide been expect on have are in two. the which on margin from over far base launched How should what those X margin terms they colors some but years are how they a a case

provide color. rate, Third, some if the on tax you can

This quarter was down.

which should assumed? So is this a normal tax be

your Thank All Mr. questions. you, Varun. Chin. some I'll some I'll defer to of right. take

compression, giving Just touching lightly think on I details. the margin more you and Mr. be Chin will

you may I with that to times think adapt see the a the if future decisions make of by we is in the lot mind. as design, say, to to impact I but had

to the well employees take and clients be Mr. the the but also think to on we here our strategic our be decisions opportunities happy but will So to I Chin bit also to a keep our make investors. clients the into limitations to clearer account our best as operational partner as

then the the rate. Going talk this tax will and on as back countries Chin to Mr. as -- well and

and You the TDCX. asked on of AI me AI impact about

And in to the but XX% of that advertising. of is to been process journey, a a through lot I more peers. in and reiterate topic. new we XX% to our already back, think for obviously, So AI we anticipated we've years. easier much Not us. it's of is maybe for to complex than immune are look number are how how And our IPO now this. Close business this back going not work our have a digital this were discussing to doing differentiated to number paper, automation is you business And a if few something we're we years business. that me TDCX and

our a exactly at the And way is get pressure to clients is it retention. competent And before, and usually are competency on are work now, we've and us for impact complex, at what becoming help and is asking that feel, speed training the that this level specialists and us to to clients look increasingly proficiency, to has discussed it on higher but on the work to And is hire topics. pace forcing higher provide better we of retention same their personnel, right a them work our the way. them important more that's

to TDCX we AI clients continuing the the hard of them So this to interest increasing on very of intending are are TDCX are the opportunity be the in to the by, hard when been hence, to launch resources clients find come And the impact way services address AI, that we'll to where as recently, estimate. guide to think, do all an something, difficult to come to strategy. to their and beyond to exactly press hard with to and going wanting that's with respond advisory outsourcing opportunity, resources, we is the works in shine. we've it's successful The opportunities but are fact possible that outsourcing

we So towards steps capitalize already and obviously that we've on goal. to intend this, made

the not your of volatile on still on improved Now discussions. environment has dramatically. both It's question Visibility client macroeconomic things. side the a

of Especially will As Fed recently. position better the the to see are to to of is you layoffs, to in on hope decisions. that that's a layoffs clients whether going coming what and there's the to economy. year. heard waiting be make midyear, We everybody lot the decisions the is need end clients an a impact know, especially make We've towards we to do, those anticipate going make

a bit I an So at pace, accelerated but we hope will this. decisions those come guarantee cannot

I They're are so with meaningful, and cannot increased has fruitful discussions say visibility our far. that ongoing. but the So clients

maybe the that to you've a Chin over well I'll as get for on sorry So asked. compression as clearer Mr. details margin a response. long-winded other hand to bit

-- hello? Can Yes. you

yes. a we Chin. hear -- bit Yes, Maybe Mr. can you,

in listed as -- mentioned call the more and -- course we the So around a the XXXX. what ago, QX was question had cost of throughout rose that the a bit we newly on on when while the in than were the of margin,

So a coming in some bit of quarter. kind also the in I ourselves the hope that were started a throughout since mid-XXXX, with XXXX, so work that advisory XXXX there listing compliance to becoming listed first QX and of came -- level and that

resources about resources. second that from the deployment The the campaign point shared opportunity headcount, drove margin service and support of billable the the against

our some agent payroll sectors. in volumes the months So there strategy were clients of key our planned some by for gaming certain and on X additional cater headcount to that in offsets, were advertising

So in that new in the on in until well, [indiscernible] of there. the we the -- sense, new [indiscernible] new I some as and Vietnam in the think as a expansion programs have some in Korea well

So of in billable arriving advance of we with phase from margin [indiscernible] the situation headcount had. this this that this from

in volume the bring as aiming are we confident we also, in also of target. trained our to , quite opted experienced also and TLs recovery future QAs to -- which And for are new much we business, that new a as logos , business and essence, and and on

So in saying, headwinds were front, on the second the that our what on margins the would as will forward, you going say I forward. that going -- half impact year

volume. to focus We started will demand on visibility of the R&D focus [indiscernible] -- actually we the -- the on

for with with the year. close So existing the engagement and our we new visibility for are for having better rest clients of and the projection that really hand-in-hand working

and sale program's off the volumes maybe in by are also mean, we I talk of the bit much taking happen. the of are they volume those -- risk period start optimize new costs, to about, shift pretty they over And we year. of probably will nonemployee spikes -- what and we remaining the that [indiscernible]. increase if and Yes, [indiscernible] headcount the addressing business are like a definitely sector margin, will of And actually -- seeing the to connect the new back what when the we the

from As not tax as happened -- there need that in the XXXX started the tax question projection part, one the that we the in of probably in extent, the XXXX. -- in if units of that the -- in of first, I in tax calculation to for happen business well as Malaysia this of a the profitability Europe jump that to prosperity actions you did that certain was

going for any lending at probably So all that being is Varun? subject XX-ish percentage Is is other cetera, quarters, questions, any I law any forward, your subsequent we to implemented that by tax cover there [indiscernible]. et about -- other? rules, be Did will

Yes.

but I some there with is problem of audio, most got it. the it, think I

now our Vitt We next from have question Pang Sachs. Goldman from

me. from versus constant of actually are questions again. came are the expect, we currency back to X%. going understand Maybe that your revenue of the couple supposed year-on-year one, on I but number basic to some X% there that in guidance revenue headwinds XX% above a A to

you the can see So in in well? headwinds despite particularly, wondering or quarters the coming Just frame actually actually highlight of seeing here a time well you improvement. sector do which very we what and why as as conservative that might keep stance in some

And related well. as to number two, somewhat that

sector of previously, seeing see first demand because actually #X. advertisement think OCX the the overall. coming that clients seeing you the and than SDM these some and of But quarter, better your is the a mentioned clients basically numbers from, the sector you from question weak particularly given to spend in as digital better some willingness I seeing of you them? part less expected say, results let's That's sector, are asset are indication in well

since And already Can if location color And new have which just about new when? last and have to locations? see you just question, you should for we uplift we that ask segment in client more and the wanted Indonesia. launched, locked Brazil so, these

the you Thank for questions. all Super, very much Pang.

jittery, to decent the to not comes market it is that's we stance and pretty that do back currency of usual in and be remains the issue I quarter, as conservative are macroeconomic headwinds uncertainty underestimated. on really why we remain and taking know, which are you the in a opportunities and they in question us we to -- upping the not don't as our we where, XX% visibility On The part guidance, overexaggerate front, yes, us. grew constant the first as at looks -- as front think want

quarters. Coming back have clients efficiencies. for It's to can are still they who but you better great, nonetheless, your question reported see on that digital advertising looking

a their trade-off single profitability at to the efficiencies, they're they a are And that some not stronger. sometimes, we point confidence be every of looking second slowdown at aspect of are clients can to as or whether at a they turnaround making. is going this half investments improving look sure at and least see anticipating huge saying We're trading much, much

until So we should don't we then, think our change guidance.

sites that greenfield the is one, locations have Indonesia those new most is where move. that now. Indonesia start we've full -- some such the strategic and investment get wait where site make recent capacity and at clients made. that busy an launched, sites as with new so an we to Vietnam we is client investment we The a very right a we we've

they going that last As a up setting sites built quite away were clients, a last started purpose operation, of for opposed we really year, greenfield straight and bit to business. year spent our with

to to paid pay is we at be off starting Thank clients to that this driving off strategic you, So growth or of our make how offices between noticeable for Pang. growth further happy strategy continues and has to location versus new greenfield quite really that us trade-off point. growing for our to sites the expansion try see some by quite

answer of Varun, questions. X to to Let X question think I the add me [indiscernible] I omitted that

[indiscernible] -- last quite ago. sites of On that the on X nicely up years, a [indiscernible] on that are the margins but I Singapore new are because their and mature yet -- margin as X, well they they those as the are in in of below as was were positive lot -- margin in so to in set up units trading to performance new are Malaysia, by operating a but improve the those the op programs, they a basically, yet their not running mean, sense still a by mature -- But coming still it they handholding running is long at much revenue -- as still units programs foot finding logos -- mature that units. of on set much young full

the as continue well I Pang, on And geos. new

If execute it's terms quarter you up Korea, a the it's look we revenue growth. Romania, to add we Hong Hong to grew more Kong quite the of at significant compared was lot X.Xx. same geos in operation, compared XXXX, so even new our QX Xx actually Kong last if Colombia, Overall, When the year's operation.

to contribute to So that in it's sure. starting more for come front really and

We Sharma question now have our from Ranjan from JPMorgan. next

Just my side. a from couple questions of

Firstly, coming revenue back guidance. the to

If a on quarters first while is X% growth constant the in you're revenues growth, think basis, for the and logos X% in might should guiding expansion we despite the to then currency that despite quarter XX% at so in the decline coming expansion the geography?

hire but well know also more decisions about on affecting as evolving Are AI? to I capabilities? based to you to efficiencies, you like and to that's solutions understand The second if your LLMs would decisions. build with is some like looking provide looking hiring gen are hiring how your how you're talked

Thank you.

revenue, guidance a the don't provide we per unfortunately. quarter On

sticking really how mentioned, our currency constant point. guidance we And yes, so I basis. far go to as that's really this at in we're So can

that gen the want of general, and part On sector. in AI and in say, AI call I to invest to we if that, things, beyond absolutely, may consulting want the it I

early business still been days, years. for yet has TDCX It's in this

has digital leveraging machine the learning. years, lab AI building X Now models past our for been

as data capabilities. the level to but want the we absolutely -- it's well, Some and to annotation in we're from of resources next revenue business, our so take and it comes invest in

looking a very up is our level and with in second of And build X relationship to now we continue on the and look But one revenue quite to as cases that space right margins do really clients; nothing strategic it there at we're number to strategic at we this table possibly capability continue level. moving seat we are and overwhelmed working at of our point. how terms one, objectives: the our the our next at announce talent have our We to that are forward. clients, to to spice for say in this to it nurture with are but take use buy can the that and really

As we in said, we months. it just be the and coming launched closely TDCX AI, tracking pretty we'll

question We Han now Tan have next from HSBC. our from

what was affected staff of ask course, line this this hiring quarter utilization. much I curious sort of You, top your as utilization how faster has last so been employee than growth, Could year?

fact I this margin growth, count our we a than employee around at grown I has -- recent the between think Mr. don't reflect for scale and compression is on faster clients wait down our has revenue some that and that to decisions report rebound. you that I given the we to headcount to the utilization hold point. new there's how employee But the revenue that think really explained Chin -- to by on quickly make if forecast the this the misalignment think our buffers business new mentioned or we us revenue the to

has typical to we client mitigate a We operational playbook in discrepancy you'll to flavor growth right and capacity we the the use opposed try are find you as the and to that that get QX, that's right chasing between situation especially and have operational X of satisfaction slowed your the . in So playbook, performance. see and to but those possibly between risk where growth moment balance the financial where

already think Chin covered quite of one and reasons has -- Mr. that's this main that probably topic So the already. I

wage the also much in levels your sort comment of markets? that key did impact you first employee inflation How in on costs quarter? Could of

Mr. Chin comment maybe on this. can

quite inflation evident. [indiscernible] Regarding wage current for quarters has been the not

to cut cost, We are front. making our help on have that wage in we internally so decision

reasonably managing are So bit we on is movement There that far, front. quite -- are high market well. think it still still a I

action think I management. say from is far, would the current decent But a in factor under wage the year. not level the So main is still I control adjustment that

Final acquisition. you fee due noticed question I some for on me. discontinued diligence incurred

you So not us wonder could whether you decided on opportunity. any I to color give this why pursue

Ed Han, Yes. here.

diligence. opportunities that you're warrant professional to where we different there, pursuing are help the opportunities we closer see conduct they're out think and At would appoint some at point different I actively aware, due us a right we did. that we look, advisers we And and So stages. evaluating all said

just, It's quite discussions, for in difficult pursue. and disclose which to this not reasons in decided can't I M&A case, we is

So talks was basically the discontinued.

and I think forward the the entire fit very look the right landscape take to approach we and right targets. going disciplined to a for continue scan

last We now CGS-CIMB. our have Ong question from from KC

Quickly on the revenue side of things.

clients Looking Because trying would at while up, OCX more SDM out collectively be basis, of resilient to revenue drive SDM slowdown contribution because reach that more for typically it a flattish. on for I was Q-on-Q in Any -- digital more example reason imagine are times this? growth. from advertising revenue

into read we this? should how So

KC. Good sales No. question, And resilient. I the digital still more is and mean marketing

it's if from in more it quite grown QX If you the look it acute looks we've last year, at from and look significantly But marketing. on like reduction. it digital Q-to-Q, we at sales

I is up marketing. and sales think around XX% digital on the

marketing. probably sales on the of issue, a it's and as but well digital to macro So I impact want of quarter more don't underestimate

it's we're sector immune well. take digital as to our is confident not have key and But macro impacted, much we a the As that this obviously pressure, resilient, to so into as growth account. is with that of as one year advertising more of bit drivers it

quite workdays the January [indiscernible] and question, as a barring on shorter other trending where bit period expand this time answer bit was equal. that's things the KC, QX year before market, -- as are was just all Feb that being to opposed Laurent's takes so where else year that and year the just kind is mentioned. bit of start a QX a number last was probably months had QX Jan working any a in where long down -- in the little to to -- opposed sale longer to work in longer that slightly quarter a of a a short and bit of the had -- just a period a of and bit October where was the was month new and deviation period of more bridge Feb of of November effect to a the you a work work was

Got it.

I revenue. guidance to year back guess full your So circling just for

compared to ago think segment should wanted internally stronger SDM then the compared the be OCX. growth back X is guided still to Just if because months to that confirm expectation mix I same

So is still that expectation same? the

Yes. Yes.

Okay. But more a seasonality. bit probably

the and sales expect grow still mix. we marketing lines, than exact but don't of we guidance provide Yes, the business No. digital mix faster for Yes. to rest, for forward the the

be this guess, noticed secondly, lacking. share And that versus share on still it. I Got to M&A buyback, on haven't managed just But also bit front, target. again course, buyback we a quarter, seems of your put to M&A the

USD current to about levels. price buyback share XX,XXX compared year the only last at think share was I

share was I in proactive more management think buybacks.

would yes, more how helpful. read So be just color should this. into wondering, we Any

KC. Sure,

think I us guiding factors whether in we buyback. multiple share the activate there

sensitive one peers. of obviously, into always impact I think, float dip market. when to two sort we is the current the valuation is Number the sort the of and versus

I that on of creates are when of we in we price-sensitive regulatory think possession when information, market. the considerations which also into is the can sort sort restrictions there go third including fact of are

across mentioned I the going all first at go market. looking just So Q, same terms but I I we principle quantum, that can we when the the relatively X whether in going think come of small before into sort recognize of consider market. the I as adopt to forward, in we just the the

calls the line. via KC. Thanks, completed on -- the phone We've

We have questions some online.

is fees Kay that. UOB Let answered Jason read Chiu from think me professional just This out. acquisition, on Elaboration the I them Hian. we've from to for

TDCX? economy Are management's on view new CX their affecting spending? environment back Second macro the one, is cutting on clients what

Yes.

front reacting and in terms to think, the with say, new in specifically I addressed well macro we, would of immune clients. the think as they scenarios economy are But this of they're, I action, them. I swift again, not that environment, adapting but to are to not

new new looking and or think adapt same some in or to economy, I everybody making the no, So having by at not accordingly. efficiencies economy is boat and slowdown impacted the rationalization being decisions

and in for year sure. difference and growth this in as we're to a immune that, the last versus macro not year result reflected environment, it's guidance our our the also of So

Thanks, Laurent.

Next question around employee taper there line down expense XX%. for is QX is XX% of expected revenue again? And with this? a time of for historical we Will any average

Mr. Chin or...

can out Mr. piece. Chin this Yes, take

I will able Probably a that's would quite not that we the still looking those Yes. progress, but something at part say land debt revenue rates the are in moving a it's to are We yet. in again, land and But were productivity so a ratio, [indiscernible] worked near still we target. term, at back on. optimization are

we So will attain. try that's something to

Mr. Thanks, Chin.

the as so dialing line, think webcast I for the phone on online you we that's in. now the thank well have both and all as questions

think take have question probably to and there's one Jonathan, Jonathan, Sorry, last we Operator, question. from I have a last we time please? can

We Jonathan have now Woo Securities. from Phillip

geographies came Could guess, us Just I only your this based it actually -- how give revenue growth? you new quarter, the revenue in maybe just last years, several much growth for some one. on from have of terms from of

new Revenue growth geographies? from

correct. Yes,

million so Around -- over new growth $X revenue -- revenue of about of $X from QX I from think, in million geographies, around new was -- just around is geographies.

Okay.

that's I it. think

We else. day time, have need you to out Thank Please free a team reach to the you answered ahead. anything all feel and for good questions. if the the have IR

this Thank concludes for you Ladies today's joining. you call. Thank gentlemen, very much. and

your You lines. now disconnect may