The following is a summary of the TELUS International (Cda) Inc. (TIXT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• TELUS International reported Q3 2024 revenue of $658 million with sequential improvement led by AI data solutions and overall growth in digital solutions.

• Adjusted EBITDA margin stood at 14.4%, reflecting stabilization compared to prior quarters.

• Year-to-date, revenue with their largest client, TELUS, grew 21% year-over-year, while revenue from Google, their second largest client, showed an increase of 12% year-to-date.

• Revenue increases in comms, media, and healthcare sectors were noted, along with boosted operations in sectors like BFSI, travel, hospitality, and retail driven by increased demand.

• Central and South America, and Africa saw a revenue growth of 20% for the quarter.

Business Progress:

• Focus on rejuvenating revenue growth includes new service offerings, cross-selling to existing clients, client diversification, and leveraging partnership with TELUS for rapid evolution of AI and CX capabilities.

• Significant client wins and service expansions reported across various sectors, enhancing revenue diversification.

• Advances in quality and differentiation in service delivery, recognized by industry leaders like Everest Group and NelsonHall.

• Continuous investment in talent and expanding global sales teams to capture sales opportunities and align with strategic growth in AI data solutions and digital transformations.

Opportunities:

• Expansion of AI capabilities and digital solutions directly address the growing global CX market, estimated at over $350 billion.

• Introduction of proprietary platforms like Fuel iX to improve operational efficiency and client outcomes in CX.

• Leveraging deep partnerships, especially with parent company TELUS, to test and refine cutting-edge AI technologies for broader market applications.

Risks:

• Price competition in the industry remains a significant risk, impacting profitability and necessitating continuous innovation and efficiency to maintain competitive margins.

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