Singapore-based, NYSE-listed TDCX has reported a profit of US$20.5 million ($27.8 million) for the 1QFY2023 ended March 31, 22.5% higher than the profit of US$16.7 million in the corresponding period the year before.
Part of the increase in profit was attributable to the higher revenue as well as the writeback of the company's share-based compensation.
During the quarter, TDCX’s revenue rose by 8.2% y-o-y to US$124.3 million as the company’s client count rose by 55% y-o-y to 85 as at end-March. The company’s revenue was also attributable to the broad-based growth seen as revenue from clients that are not within its top five clients rose by 45% y-o-y. Accordingly, the revenue mix from TDCX’s top five clients fell seven percentage points y-o-y to 76% during the 1QFY2023.
On a constant currency basis, total revenue was up by 13.1% y-o-y.
Ebitda grew by 7.0% y-o-y to US$32.0 million while adjusted ebitda fell by 16.2% y-o-y to US$30.0 million.
“We delivered a resilient set of results this quarter through our continued focus on operational excellence. Our efforts to deepen our support for existing clients are also showing results, as revenue from clients outside our top five rose 45% y-o-y,” says Laurent Junique, CEO and founder of the digital customer experience solutions provider for technology and blue-chip companies.
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“Given market uncertainties, we are seeing more emphasis for stronger performance and greater productivity among our clients. Hence, we are focused on adding value to our clients by helping them solve their strategic CX challenges. We do this by leveraging the insights and best practices gathered from our Digital CX Center of Excellence and our recently launched TDCX AI arm,” he adds.
TDCX launched its artificial intelligence consulting arm on May 30 where it seeks to use AI to analyse big data, generate insights and unlock opportunities for stronger predictive capabilities and process improvements in the area of customer experience (CX).
“Looking ahead, we continue to strengthen our capabilities by deepening our sector expertise in our core verticals, sharpening our operational capabilities, and expanding our footprint for better client coverage,” says Junique.
The company expects its revenue to grow between 3% to 8% y-o-y on a constant currency basis in FY2023. Its adjusted ebitda margin is expected to grow by between 25% to 29% for the full year.
