Q4 2021 Telus International Cda Inc Earnings Call

[music].

Okay.

Speaker 1: Good morning, ladies and gentlemen. Welcome to the TELUS International fourth quarter 2021 Investor Call. My name is Jonathan and I will be your conference facilitator today.

Good morning, ladies and gentlemen, welcome to the Telus International fourth quarter 2021, Investor call. My name is Jonathan and I will be your conference facilitator today.

Speaker 1: At this time, all lines have been placed on mute to avoid any background noise. After the speaker's remarks, there will be a question and answer period. If you'd like to ask a question during this time, please press star then the number one under your telephone keypad. If you'd like to withdraw your question, please press the pound or hash key. I would now like to introduce Jason Meyer, Senior Director, Investor Relations and Treasurer at TELUS International. Mr. Meyer, you may begin the call.

At this time all.

Your lines have been placed on mute.

To avoid any background noise. After the Speakers' remarks, there will be a question and answer period, if you'd like to ask a question. During this time. Please press Star then the number one and your telephone keypad, if you'd like to withdraw your question. Please press the pound or hash key I would now like to introduce Jason buyer.

Senior director of Investor Relations and Treasurer at Telus International Mr. Martin you may begin the call.

Speaker 2: Thank you, Jonathan. Good morning, everyone. Thank you for joining us today for TELUS International's Q4 2021 Investor Call. Hosting our call today are Jeff Puret, President and Chief Executive Officer, and Vanessa Canu, our Chief Financial Officer.

Thank you Jonathan Good morning, everyone. Thank you for joining us today for Telus International's Q4, 2021 investor call.

Our call today are Jeff <unk>, President and Chief Executive Officer, and Vanessa <unk>, our Chief Financial Officer.

Speaker 2: As usual, we will begin with some prepared remarks where Jeff will provide an operational and strategic overview of the quarter and highlights for the year, followed by Vanessa who will provide some key financial highlights.

As usual, we will begin with some prepared remarks, Jeff will provide an operational and strategic overview of the quarter and highlights for the year, followed by Vanessa who will provide some key financial highlights.

Speaker 2: We will then open the line to questions from pre-qualified analysts before turning the call back to Jeff for his closing remarks.

We will then open the line to questions from pre qualified analysts before turning the call back to Jack for his closing remarks.

Speaker 2: Before we begin, I'd like to direct your attention to slide two of the supplementary presentation available for download on this webcast and also available on our website at TELUS International.com slash investor.

Before we begin I'd like to direct your attention to slide two of the supplementary presentation available for download on this webcast and also available on our web site at Telus International Dot Com slash investors.

Speaker 2: The statements made during this call may be forward-looking in nature, including all comments reflecting expectations, assumptions, or beliefs about future events or performance that do not relate solely to historical periods.

The statements made during this call maybe forward looking in nature, including all comments, reflecting expectations assumptions or beliefs about future events or performance that do not relate solely to historical periods.

Speaker 2: These forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from our current projections. We assume no obligation to update any forward-looking statements.

Forward looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from our current projections, we assume no obligation to update any forward looking statements.

Speaker 2: Jeff and Vanessa will also discuss certain non-GAAP measures that the management team considered to be useful in assessing our company's underlying business performance. An explanation of these non-GAAP measures and reconciliation to the comparable GAAP measures can be found in the appendices of today's supplementary presentation, along with the earnings news release issued this morning.

Jeff and Vanessa we will also discuss certain non-GAAP measures that the management team considered to be useful in assessing our company's underlying business performance.

An explanation of these non-GAAP measures and reconciliation to the comparable GAAP measures can be found in the appendices of today's supplementary presentation, along with the earnings news release issued this morning.

Speaker 2: I would also like to remind everyone that all financial measures we're referencing on this call and in our disclosure are in US dollars unless specified otherwise and relate only to TELUS international results and measures. With that, I will now pass the call over to our President and CEO Jeff Parett.

I would also like to remind everyone that all financial measures were referencing on this call and in our disclosure in U S dollars unless specified otherwise and really only to Telus international results and measures.

With that I will now pass the call over to our President and CEO , Jeff Jarrett.

Speaker 3: Thank you, Jason. Good morning, everyone, and thank you for joining us today.

Thank you, Jason and good morning, everyone and thank you for joining us today.

Speaker 3: 2021 was a remarkable year for Tullis International.

2021 was a remarkable year for Telus International from our first day of trading on the New York and Toronto stock exchanges, the latter of which still represents the largest tech IPO in Canadian history to the successful integration of our game changing AI services acquisitions, each one of us across our entire.

Speaker 3: From our first day of trading on the New York and Toronto Stock Exchanges, the latter of which still represents the largest tech ICO in Canadian history, to the successful integration of our game changing AI services acquisitions, each one of us across our entire organization brought their very best to deliver on our growth strategy in 2021, despite the challenges of operating during a prolonged global pandemic.

Our organization brought their very best to deliver on our growth strategy in 2021, despite the challenges of operating during a prolonged global pandemic.

Speaker 3: As our business continues to evolve, what has remained a constant is our team's unwavering commitment to service excellence for our clients and by extension to their customers.

Our business continues to evolve what has remained constant is our team's unwavering commitment to service excellence for our clients and by extension to their customers.

Speaker 3: Equally important is our commitment to the care of our team members around the world. After all, it's these highly engaged and talented individuals that breathe life into the innovative solutions we design, build, and deliver for our more than 600 global clients.

Really important is our commitment to the care of our team members around the world. After all of these highly engaged and talented individuals to breathe life into the innovative solutions, we design build and deliver for our more than 600 global clients.

Speaker 3: Our financial results reflect the success of our team's efforts with total revenue of $2.2 billion in 2021. This represents an impressive 39% growth rate versus 2020. Our profitability also remains robust with a 38% year-over-year increase in annual adjusted EBITDA and an annual EBITDA margin of 24.6% in 2021.

Our financial results reflect the success of our team's efforts with total revenue of $2 2 billion in 2021.

This represents an impressive 39% growth rate versus 2020.

Profitability also remains robust with a 38% year over year increase in annual adjusted EBITDA and an annual EBITDA margin of $24, 6% in 2021.

Speaker 3: Given the backdrop of the broader macroeconomic environment, including possible rising interest rates and continued pandemic uncertainty, we believe TI offers an attractive destination for capital and delivers real value to shareholders, to our longstanding commitment to profitable growth and focus on cashflow.

The backdrop of the broader macroeconomic environment, including possible rising interest rates and continued pandemic uncertainty. We believe <unk> offers an attractive destination for capital and delivers real value to shareholders through our longstanding commitment to profitable growth and focus on cash flow.

Speaker 3: Our global sales team ended the year on a high note, adding several new marquee clients in Q4, and with a replenished sales funnel, once again comfortably in excess of $2 billion.

Our global sales team ended the year on a high note, adding several new marquee clients in Q4, and with a replenished sales funnel once again comfortably in excess of $2 billion.

Speaker 3: Some of the exciting brands we welcome to TELUS International in the fourth quarter include a top US wireless carrier, a rapidly growing Australian software company, a large manufacturer for the global PC gaming market and pioneer in modern computer graphics, and a leading American software developer for marketing, sales, and customer service.

Some of the exciting brands, we welcome to Telus International in the fourth quarter include a top U S wireless carrier rapidly growing Australian software company, a large manufacturer for the global PC gaming market in pioneer and modern computer graphics, and a leading American software developer for marketing sales and customer served.

Yes.

Speaker 3: We also expanded the scope and breadth of our engagements with many existing clients, including the world's largest e-commerce company, the world's largest technology company, one of the top American cryptocurrency exchange platforms, a digital banking services company, and one of the world's largest consumer electronics company.

We also expanded the scope and breadth of our engagements with many existing clients, including the world's largest E Commerce company the world's largest technology company one of the top American crypto currency exchange platforms.

Digital banking services company and one of the world's largest consumer electronics companies. These represent high quality multi million dollar longer term growth opportunities with expected revenues ramping up throughout 2022 and beyond I am so pleased to see that our team's consistent delivery is being <unk>.

Speaker 3: These represent high quality multi-million dollar, longer term growth opportunities with expected revenues ramping up throughout 2022 and beyond. I am so pleased to see that our team's consistent delivery is being rewarded with even more share of wallet from these large global brands, further solidifying our relationships with these valuable clients.

Rewarded with even more share of wallet from these large global brands further solidifying our relationships with these valuable clients.

Speaker 3: I'll now turn to one of my favorite parts of these calls, sharing some specific examples that better illuminate and bring to life how we serve our clients.

Now turn to one of my favorite parts of these calls sharing some specific examples that better illuminate and bring to life, how we serve our clients.

Speaker 3: I'll begin with one of our clients where we started our relationship on the CX support side, but which has since evolved to include other services across our end-to-end design, and build deliver continuum.

Again with one of our clients, where we started our relationship on the support side, but which has since evolved to include other services across our end to end design build deliver continuum.

Speaker 3: This particular project involves the enablement of database automation for a leading health care app that tracks the subscriber's food intake and exercise habits. Our team is helping to automate the client's nutrition information data by building a bot platform that enhances the search process for retrieving accurate nutritional data values for a variety of food items.

This particular project involves the enablement of database automation for a leading health care App attracted subscribers food intake and exercise habits. Our team is helping to automate the clients nutrition information data by building a platform that enhances the search process for retrieving accurate nutritional data values for a variety.

Speaker 3: We're also embedding an AI powered categorization of each food item as per our clients predefined food groupings. And we set up automation tools to remove redundant food items from data.

Food items.

Also embedding AI powered categorization of each food item as per our clients predefined groupings, and we set up automation tools to remove redundant food items from data cues. We also continue to partner with this client on our premium customer care support services encompassing several regions and languages.

Speaker 3: We also continue to partner with this client on our premium customer care support services, encompassing several regions and languages across our global team member base, meeting this client's increasing demand for high value support as they grow their business.

Across our global team member base meeting this clients increasing demand for high value support as they grow their business.

Speaker 3: Another engagement that I'll highlight was for a large Western Canadian utility company that required advisory services and support to manage its transition to a modernized Microsoft Exchange platform, and in particular, an upgraded email application.

Another engagement that I'll highlight was for a large western Canadian utility company that required advisory services and support to manage its transition to a modernized Microsoft exchange platform and in particular, an upgraded E mail application.

Speaker 3: The client was seeking a partner that could ensure the stability and security of their technology infrastructure transformation while augmenting technical support in the process. Our team managed this project end-to-end, transitioning the client's environment to a hybrid of Exchange Online Office 365 and Exchange On-Prem.

Client was seeking a partner that could ensure the stability and security of their technology infrastructure transformation, while augmenting technical support in the process.

Our team manage this project into and transitioning the clients environment to a hybrid of exchange online office 365 and exchange on Prem in total our team successfully migrated over 13000 mailboxes excuse me, while it's concurrently managing the registration of nearly 6000 users to <unk>.

Speaker 3: In total, our team successfully migrated over 13,000 mailboxes whilst concurrently managing the registration of nearly 6,000 users to mobile solutions, unlocking an enhanced user experience for their team members, all while leveraging Microsoft's modernized technology platform.

<unk> solutions unlocking an enhanced user experience for their team members, all while leveraging Microsoft's modernized technology platform.

Speaker 3: I'd also like to share some recent examples of our AI-powered solutions in action.

I'd also like to share. Some recent examples of our AI powered solutions inaction.

Speaker 3: One of our clients is the leading flood mapping platform designed to protect the world's most climate vulnerable communities.

One of our clients is the leading flood mapping platform designed to protect the world's both climate vulnerable communities. The clients in house machine learning team built complex <unk> semantic segmentation datasets to detect water bodies in urban areas with the satellite imagery collected using multiple sensors.

Speaker 3: The client's in-house machine learning team built complex 2D and 3D semantic segmentation data sets to detect water bodies in urban areas with the satellite imagery collected using multiple sensors like radar and camera and in differing weather conditions.

Like radar and camera and deferring weather conditions, you original images collected by the client lacked consistency due to varying time stamps and included many distortions from sensors detecting water bodies and clouds. Our solution for this client included setting up data pipeline integrations by API connectors.

Speaker 3: The original images collected by the client lacked consistency due to varying timestamps and included many distortions from sensors detecting water bodies and clouds. Our solution for this client included setting up data pipeline integrations via API connectors with the 2D and 3D sensor outputs uploaded to our proprietary labeling platform.

With the <unk> and <unk> sensor outputs uploaded to our proprietary labeling platform. We then provided real time human in the loop data labeling delivering faster and more accurate results with our high precision <unk> and <unk> tools. We also ensured that were advanced quality process control at each step.

Speaker 3: We then provided real-time, human-in-the-loop data labeling, delivering faster and more accurate results with our high-precision 2D and 3D tools. We also ensured there were advanced quality process controls at each step. In total, our team accurately classified 100,000 documents in six months, labeled and transcribed 116,000 fields, and helped automate 80% of the process.

In total our team accurately classified 100000 documents in six months labeled and transcribed 116000 field and help automate 80% of the process.

Speaker 3: As an outcome, our advanced quality control tools and expedient feedback mechanisms ensured 95% accuracy for all data labeling.

As an outcome, our advent quality control tools and expedient feedback mechanisms ensured 95% accuracy for all data labeling outputs.

Speaker 3: We're also supporting several AI-focused projects for the world's largest e-commerce company, tapping into our AI community of more than 1 million individuals to collect quality data for our clients to train its AI algorithm.

We're also supporting several AI focused projects for the world's largest E Commerce company tapping into our AI community of more than 1 million individuals to collect quality data for our client to train AI algorithms.

Speaker 3: One example involves our collection of ultrasound waves for audio and video data in participating homes across multiple countries. We use highly advanced and confidential hardware and software to capture sound waves in different scenarios, such as the noise from vacuum cleaners, air conditioners, blenders, and different kinds of music or radio, while participants perform common domestic actions like moving around their homes and cooking a meal.

One example involves our collection of ultrasound waves for audio and video data in participating homes across multiple countries, we use highly advanced and confidential hardware and software to capture soundwaves in different scenarios, such as the noise from vacuum cleaners air conditioners, blenders and different kinds of music or radio while par.

<unk> performed common domestic actions like moving around their homes and cooking a meal. This is a very fast paced project with many moving parts all managed by our team from the logistics sourcing and training efforts to setup and management of collection spaces, Onboarding and training of local teams data management and quality assurance.

Speaker 3: This is a very fast paced project with many moving parts, all managed by our team, from the logistics, sourcing, and training efforts to set up and management of collection spaces, onboarding and training of local teams, data management, and quality assurance.

Speaker 3: For each country and scope, our team successfully recruits and trains local teams, and once the project starts, nearly every collection session requires a new technical setup, as the type of home, device, and its positioning need to be carefully managed to achieve quality data collection of very specific background noises for the client database.

For each country and scope our teams successfully recruited and trained local team and once the project starts nearly every collections section requires a new technical setup as the type of home device and its positioning needs to be carefully managed to achieve quality data collection of very specific background noises for the client's database.

Speaker 3: This is a project that requires extreme attention to detail to ensure we meet the client's requirements for collection and delivery of high quality data to help power our client's machine learning.

This is a project that requires extreme attention to detail to ensure we meet the clients' requirements for collection and delivery of high quality data to help power our clients' machine learning systems.

Speaker 3: For another client, one of the world's most popular video-focused social networking services, we transcribe and annotate short audio clips in multiple languages.

For another client one of the world's most popular video focused social networking services, we transcribe and entity short audio clips in multiple languages.

Speaker 3: The client uses our AI data as a critical input to train its transcription algorithms to improve the user experience on its network, to promote transparency and safety as it relates to the network's content, and to mitigate the risk of being banned in certain countries or regions due to content regulations that are continuously evolving.

Client using our AI data as a critical input to train its transcription algorithms to improve the user experience on its network to promote transparency and safety as it relates to the networks content and to mitigate the risk of being banned in certain countries or regions due to content regulations that are continuously evolving.

Speaker 3: While this client has several partners within its ecosystem, we're particularly proud of the fact that our team continues to set the bar for quality extremely high as we've consistently received feedback that we are this client's top performing partner for this program in terms of quality, productivity, and brand reputation management.

While this client has several partners within the ecosystem, we're particularly proud of the fact that our team continues to set the bar for quality extremely high as we've consistently received feedback that we are this clients top performing partner for this program in terms of quality productivity and brand reputation management.

Speaker 3: As the challenging pandemic environment persists, we continue to enable the vast majority of our team members to work remotely. At the end of 2021, approximately 75% of our global team members continue to work safely and productively from home.

As the challenging pandemic environment persists, we continue to enable the vast majority of our team members to work remotely at the end of 2021, approximately 75% of our global team members continued to work safely and productively from home.

Speaker 3: For many organizations, the pandemic brought to light the critical importance of building a supportive, resilient workplace with a focus on the wellness and safety of employees.

For many organizations the pandemic brought to light the critical importance of building a supportive resilient workplace with a focus on the wellness and safety of employees.

Speaker 3: I'm very proud to say that at Telus International, this has always been top of mind.

Very proud to say that the Telus International this has always been top of mind.

Since our inception over many years, we've developed a unique and thoughtful approach to prioritizing the wellbeing of our team members driven by our carrying culture. We benefited from a very early recognition of the nuanced requirements for success in some of the more complex services.

Speaker 3: Over many years, we've developed a unique and thoughtful approach to prioritizing the well-being of our team members.

Speaker 3: driven by our caring culture, we've benefited from a very early recognition of the nuanced requirements for success in some of the more complex services we choose to provide, particularly in areas such as content moderation.

We choose to provide particularly in areas such as content moderation.

Speaker 3: Our unwavering commitment to our team's well-being is present in the numerous in-person and virtual programs and services we provide, as well as the amenities available in our sites, such as our fitness facilities and relaxation spaces, and the medical benefits that in many cases extend to our team members' families.

Our unwavering commitment to our team's wellbeing is present and the numerous in person and virtual programs and services, we provide as well as the amenities available at our sites such as our fitness facilities in relaxation spaces and the medical benefits that in many cases extend to our team members families. Our holistic approach to health.

Speaker 3: Our holistic approach to health and well-being is guided by a global team of mental health and workplace wellness experts that include clinical psychologists and counselors who are employed full-time by our company.

And well being is guided by our global team of mental health and workplace wellness experts that include clinical psychologists and counselors, who are employed full time by our company. These individuals are available for in person and virtual touch points to accommodate those working from home during the pandemic.

Speaker 3: These individuals are available for in-person and virtual touchpoints to accommodate those working from home during the pandemic.

Speaker 3: These health and wellness programs and services, among many others, are available to our over 62,000 team members around the world.

These health and wellness programs and services among many others are available to our over 62000 team members around the world.

From our engineers to our customer experience specialists to our content moderators and beyond we have support in place to help our team members remain healthy.

And able to thrive in their careers they choose at Ti.

Speaker 3: We also continuously review and assess our wellbeing programs and evolve our approach. We recently appointed Dr. Lucy Rattree as Global Director of Workplace Wellbeing at TELUS International. Dr. Rattree is a leading chartered psychologist, researcher, and author, and she is a key contributor to ensuring TELUS International continues to keep ahead of our commitment to team members and enables us to arm them with all the tools and support they need to remain successful in their critical role.

We also continuously review and assess our wellbeing programs and evolve our approach. We recently appointed Dr. Lucy Ratterree as global director of workplace wellbeing of Telus International Dr. <unk> is a leading chartered psychologist researcher and author and she is a key contributor to ensuring Telus International continues to keep.

Ahead of our commitment to team members and enables us to arm them with all the tools and support they need to remain successful in their critical roles.

Speaker 3: To an annual employee survey conducted by Concentric, a third-party organization with decades of experience in employee engagement, our company's global score in 2021 was over 80%, marking the eighth consecutive year that we are ranked in the top quartile of all organizations of comparable size and global footprint.

Through an annual employee survey conducted by concentric a third party organization with decades of experience and employee engagement, our company's global score in 2021 was over 80%, marking the eighth consecutive year that we are ranked in the top quartile of all organizations of comparable size and global footprint.

Speaker 3: We see the benefits of an engaged team shine through in the impressive results we've achieved to date, despite the unprecedented conditions we've been operating within since early 2020. I believe this is due to many years of hard work building and fostering our caring culture.

We see the benefits of an engaged team shine through in the impressive results. We've achieved to date. Despite the unprecedented conditions. We've been operating within since early 2020 I believe this is due to many years of hard work building and fostering our carrying culture on that note I want to sincerely. Thank our team members.

Speaker 3: On that note, I want to sincerely thank our team members for their enduring commitment to our organization and for their contributions to yet another highly successful year at Telus International for our customers and for our communities where we live, work, and serve. Indeed, harnessing our team's minds, hearts, and hands to make a difference on our planet's biggest challenges while partnering with clients who feel the same way is the basis of our environmental social governance.

For their enduring commitment to our organization and for their contributions to yet another highly successful year at Telus International for our customers and for our communities, where we live work and serve indeed harnessing our team's mind hearts in hand to make a difference on our planet's biggest challenges while partnering with <unk>.

To feel the same way as the basis of our environmental social governance approach.

Speaker 3: At this end, our four ESG priorities at Telus International are one, hiring, motivating, and promoting our diverse, talented team who exceed customer expectations. For example, currently 48% of TI's workforce are women, with women representing 44% of managers and above 38% of our senior management team and 30% of our board.

And our four ESG priorities at Telus International our one hiring motivating and promoting our diverse talented team who exceed customer expectations. For example, currently 48% of Ti's workforce are women with women representing 44% of managers.

And above.

38% of our senior management team and 30% of our board.

Speaker 3: Two, giving back to our communities by creating a meaningful, lasting impact through the efforts of our team members. In fact, since 2007, almost 225,000 TELUS International volunteers have impacted the lives of more than 250,000 people through TELUS International's corporate social responsibility effort.

To giving back to our community by creating a meaningful lasting impact through the efforts of our team members. In fact since 2007, almost 225000 Telus International volunteers has impacted the lives of more than 250000 people through Telus International's corporate social responsibility efforts.

Speaker 3: Three, supporting a sustainable planet for all, where we continue to see a decline in our company's greenhouse gas emissions and water consumption.

<unk> three supporting a sustainable planet for all where we continue to see a decline in our company's greenhouse gas emissions and water consumption and for adhering to principles of strong corporate governance.

Speaker 3: four, adhering to principles of strong corporate governance.

Speaker 3: Telus International will continue to be driven by ESG priorities and principles and I look forward to progressing our holistic and strategic approach in this regard.

Telus International will continue to be driven by ESG priorities and principles and I look forward to progressing our holistic and strategic approach in this regard and.

Speaker 3: And lastly, through the remarkable efforts of our team, we also continue to be recognized by third-party organizations, including just today, TELUS International was named a leader on global industry analyst firm Nelson Hall's Customer Experience Operations Transformation NEAT Report. The assessment evaluated each company's use of design thinking and the application of digital first principles and technologies, among other capabilities, to transform their clients' customer experience.

And lastly through the remarkable efforts of our team. We also continued to be recognized by third party organizations, including just today Telus International was named a leader on global industry Analyst firm Nelson Hall customer experience operations transformation neat report.

Assessment evaluated each company's use of design thinking and the application of digital first principles and technologies among other capabilities to transform their clients customer experience. Moreover in December Telus International was named a leader on IDC worldwide digital customer care services, 2021% to 20.

Speaker 3: Moreover, in December , TELUS International was named a leader on IDC's Worldwide Digital Customer Care Services 2021 to 2022 Marketscape, again, external validation of our team's focus on and passion in delighting our clients. With that, I'll now pass the call over to our Chief Financial Officer, Vanessa Canu, to take you through our financial results, and then, as always, I'll be back on the line to answer your questions. Vanessa, over to you.

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Again external validation of our team's focus on and passion in delighting, our clients with that I'll now pass the call over to our Chief Financial Officer, Vanessa <unk> to take you through our financial results and then as always I'll be back on the line to answer your questions Vanessa over to you.

Speaker 4: Thank you Jeff and good morning everyone. Thank you for joining us today.

Thank you, Jeff and good morning, everyone.

Thank you for joining us today.

Speaker 4: As Jason mentioned at the start of the call, some of the items that we'll review this morning are non-GAAP measures.

As Jason mentioned at the start off the call some of the items that will be here. This morning are non-GAAP measures.

Speaker 4: For descriptions and a reconciliation of our gap to non- GAAP measures , please see our earnings release from earlier this morning.

Our description and a reconciliation of our GAAP to non-GAAP measures. Please see our earnings release from earlier this morning.

Speaker 4: To echo what Jeff said, 2021 was indeed a great year for TELUS International with revenue growth of 39% for the full year, reflecting strong contributions from organic business growth and acquisition.

So echo what Jeff said 2021 was indeed, a great year for Telus International with revenue growth of 39% for the full year, reflecting strong contributions from organic business growth and acquisition.

Speaker 4: Adjusted EBITDA increased 38% and adjusted deleted earnings per share increased 41% year-over-year.

Adjusted EBITDA increased 38% and adjusted diluted earnings per share increased 41% year over year.

Speaker 4: These robust double-digit growth rates are towards the high end of our previously raised outlook and demonstrate consistent execution on our growth strategy.

These robust double digit growth rate towards the high end of our previously raised outlook and demonstrates consistent execution on our growth strategy.

Speaker 4: This was in spite of Euro-related foreign exchange headwinds in the second half of the year, and in Q4 in particular, headwinds that were not obtained in our original outlook.

This was in spite of euro related foreign exchange headwinds in the second half of the year and in Q4 in particular headwinds that were not assumed in our original outlook.

Speaker 4: Let me now expand upon some components of our financial performance in the fourth quarter and full year.

Let me now expand up on some components of our financial performance in the fourth quarter and full year.

Speaker 4: Gravity for Q4 were $600 million, up 36% year-over-year.

Revenues for Q4 were $600 million up 36% year over year.

Speaker 4: Our organic revenue growth was 15% or 17% in constant currency, as our Q4 results included foreign exchange headwinds of approximately 2% when compared to the same period in the prior year, driven by the Euro to U.S. dollar exchange rate.

Our organic revenue growth was 15% or 17% in constant currency as our Q4 results include a foreign exchange headwind of approximately 2% when compared to the same period in the prior year driven by the Euro to U S dollar exchange rate.

Speaker 4: This strong organic growth reflects increasing demand for our services provided to new and existing clients alike.

This strong organic growth reflects increasing demand for our services provided to new and existing clients alike.

Speaker 4: Prior acquisitions contributed revenue growth of 21% year over year and related to our acquisition of what is now called Telus International AI data.

Prior acquisition contributed revenue growth of 21% year over year and related to our acquisition of what is now called Telus International AI data solutions.

Speaker 4: On a full-year basis, we delivered a record $2.2 billion in revenue, reflecting growth of 39%, as I mentioned earlier. With organic revenue growth of $268 million, or 17%, we have executed on our strategic goal of targeting sustainable organic revenue growth in the mid- to high-term.

On a full year basis, we delivered a record $2 2 billion in revenue, reflecting growth of 39% as I mentioned earlier with organic revenue growth of $268 million or 17%. We have executed on our strategic goal of targeting sustainable organic revenue growth in the mid to high teens.

Speaker 4: On a full-year basis, the annual organic growth included a favorable foreign exchange impact of approximately 2%.

On a full year basis, the annual organic growth included a favorable foreign exchange impact of approximately 2%.

Speaker 4: Looking at revenues by geography, in the fourth quarter, revenues grew 49 percent year-over-year in North America, 39 percent in Europe , 35 percent in Asia-Pacific, and 12 percent in Central America.

Looking at revenues by geography in the fourth quarter revenues grew 49% year over year in North America, 39% and Europe , 35% in Asia Pacific and 12% in Central America.

Speaker 4: For the full year, we achieved revenue growth of 45% in each of North America and Europe , with Asia-Pacific coming in at 35%, while Central America grew at 20%. Again, these are solid results correlated with the increase in client demand for our end-to-end digital solutions.

For the full year, we achieved revenue growth of 45% in each of North America, and Europe with Asia Pacific coming in at 35%, while Central America grew at 20%.

Again these are solid results correlated with increasing client demand for our end to end digital solutions.

Speaker 4: From an industry vertical perspective, we once again saw growth across all key verticals in both the fourth quarter and for the full year.

From an industry vertical perspective, we once again saw growth across all key verticals in both the fourth quarter and for the full year.

Speaker 4: Our largest vertical, second game, grew 62% year over year in the quarter and also in the full year.

Our largest vertical second game grew 62% year over year in the quarter and also in the full year.

Speaker 4: with tele-international AI data solutions as a key driver of growth in this protocol.

With Telus International AI data solutions at the key driver of growth in this vertical.

Speaker 4: We continue to see strong momentum in the e-commerce and FinTech vertical with revenues up 49% year-over-year in the quarter and 51% on a full-year basis, driven again by strong demand for digital transformation and next-gen solutions in customer experience.

We continue to see strong momentum in e-commerce , and Fintech vertical with revenues up 49% year over year in the quarter and 51% for the full year basis, driven again by strong demand for digital transformation and next Gen solutions and customer experience.

Speaker 4: Finally, our communications and media verticals showed healthy growth of 9% for the quarter and 12% for the full year, while all other verticals, including travel and hospitality and health care, similarly posted strong double-digit growth year-over-year.

Finally, our communications and media vertical showed healthy growth of 9% for the quarter and 12% for the full year.

All other verticals, including travel and hospitality.

Healthcare Similarly posted strong double digit growth year over year.

Speaker 4: Looking across our verticals, we increased exposure to the higher growth tech and game and e-commerce and FinTech clients, which collectively contributed 58% of total revenue in 2021 compared with 50% in the prior year.

Looking across our vertical we increased exposure to the higher growth second game and E Commerce, and Fintech clients, which collectively contributed 58% of total revenue in 2021 compared with 50% in the prior year.

Speaker 4: So we have not only meaningfully expanded our revenue base, but our growth is more skewed so high growth digital native clients.

So we have not only meaningfully expanded our revenue base, but our growth is more skewed so high growth digital native clients.

Moving on to operating expenses.

Speaker 4: Salaries and benefits expense in the fourth quarter was $332 million, up 28% due to the growth in our customer-facing team member base to support increased client demand and higher average employee salaries.

Salaries and benefits expense in the fourth quarter with $372 million up 28% due to the growth in our customer facing team member base to support increased client demand and higher average employee salaries and wages.

Speaker 4: For the full year, salaries and benefits increased 29% to $1.22 billion with the same drivers as for the quarter.

For the full year salaries and benefits increased 29% to $1 2 billion with the same drivers as for the quarter.

Speaker 4: Our goods and services purchased were $125 million in the quarter, an increase of $70 million over the same period last year.

Our goods and services purchased for 125 million in the corner and increase of $70 million over the same period last year.

Speaker 4: For the full year, goods and services purchased were $432 million, an increase of $188 million from the prior year. This increase was largely driven by our acquisition, in particular, TIAI's crowdsource contractors, which are recognized in goods and services purchased.

For the full year goods and services purchased were $402 million, an increase of $188 million from the prior year.

This increase was largely driven by our acquisition in particular.

I'd crowdsource contractors, which are recognizing goods and services purchased.

Speaker 4: and higher software recruitment and other administrative costs to support the growth in our business.

And higher software recruitment and other administrative costs to support the growth in our business.

Speaker 4: Share-based compensation expense in the fourth quarter was 9 million compared to 12 million in the prior year. On a full year basis, share-based compensation expense was 75 million compared to 29 million in the prior year.

Share based compensation expense in the fourth quarter was $9 million compared to 12 million in the prior year.

On a full year basis share based compensation expense was $75 million compared to $29 million in the prior year.

Speaker 4: The increase on a full-year basis was due to the vesting of share-based compensation awards and mark-to-market adjustment on historical cash settled awards due to the increase in the share price.

The increase.

On a full year basis was due to the vesting of share based compensation awards and Mark to market adjustment on historical cash settled awards due to the increase in the share.

Speaker 4: Acquisition, integration, and other charges for the fourth quarter were $5 million, a decrease of 80 percent from the same quarter a year ago, primarily due to transaction costs incurred in the Lionbridge AI acquisition in the fourth quarter of 2020.

Acquisition integration and other charges for the fourth quarter were $5 million a decrease of 30% from the same quarter a year ago, primarily due to transaction cost incurred in the language in acquisition in the fourth quarter of 2020.

Speaker 4: For the full year, acquisition, integration, and other charges declined by 61% to $23 million, primarily due to lower costs for integration in 2021 compared with the transaction and integration costs incurred in the prior year related to the acquisitions of CCC and Lionbridge AI.

For the full year acquisition integration and other charges declined by 61% to $23 million, primarily due to lower costs for integration in 2021, compared with the transaction and integration costs incurred in the prior year related to the acquisition of CCC.

And language AI.

Speaker 4: This decrease was partially offset by cost associated with the secondary offering of our subordinate voting shares in the third quarter of 2021.

This decrease was partially offset by cost associated with a secondary offering of our subordinate voting shares in the third quarter of 2021.

Speaker 4: Looking at interest expense, in the fourth quarter, our interest expense was $8 million, a decline of 27% year over year. And for the full year, interest expense was $44 million, a decline of 4% from the prior year, due primarily to our lower debt balance and lower interest rates triggered by our improved net debt to adjusted EBITDA leverage ratio throughout the year.

Looking at interest expense in the fourth quarter, our interest expense was $8 million a decline of 27% year over year and for the full year interest expense was $24 million a decline of 4% from the prior year due primarily to our lower debt balance and lower interest rates triggered by our improved net debt to adjusted EBITDA leverage ratio throughout the year.

Speaker 4: Income tax expense in the fourth quarter was 21 million, 62% higher compared to the same quarter last year.

Income tax expense in the fourth quarter was 21 million, 62% higher compared with the same quarter last year.

Speaker 4: our receptive tax rates decreased from 38.2% to 36.8% primarily due to a decrease in non-deductible items that were incurred in the quarter.

Our effective tax rate decreased from 38, 2% to 36, 8% primarily due to a decrease in non deductible items that were incurred in the quarter.

Speaker 4: On a full year basis, our effective tax rate increased from 31.6 percent to 45.1 percent, primarily due to an increase in withholding and other taxes and an increase in non-deductible items.

On a full year basis, our effective tax rate increased from 31, 6% to 45, 1% primarily due to an increase in withholding and other taxes and an increase in nondeductible items.

Speaker 4: A portion of the non-deductible items were results of our IPO earlier in 2021, and we expect them to be non-recurring.

A portion of the nondeductible items were a result of our IPO earlier in 2021, and we expect them to be nonrecurring.

Speaker 4: The change in income mix among different jurisdictions without setting the lower weighted average statutory income tax rate for the year.

The change in income mix amongst different jurisdictions, we felt that in a lower weighted average statutory income tax rate for the year.

Speaker 4: As a reminder, our ETR, which is income tax expense as a percentage of accounting net income before tax, can vary period over period due to factors including but not limited to the jurisdiction mix of our earnings in any given period and the tax deductibility of certain expenditure items.

As a reminder, our ETR, which is income tax expense as a percentage of.

Accounting net income before taxes can vary.

Yes.

Due to factors, including but not limited to you.

It's a mix of our earnings in any given period and the tax deductibility of certain expenditure items.

Speaker 4: Moving on to profitability, in Q4, our adjusted EBITDA was $143 million at the top end of our guidance range and up 12% from a tough compare in the same quarter in the prior year.

Moving onto profitability.

Q4, adjusted EBITDA was $143 million at the top end of our guidance range and up 12% from a tough compare in the same quarter in the prior year.

Speaker 4: On a full year basis, adjusted EBITDA was $540 million, up 38%.

On a full year basis, adjusted EBITDA was $540 million up to the 8%.

Speaker 4: Our full year adjustment EBITDA margin of 24.5% was in line with us earlier, reflecting our consistent profitable revenue growth, strategic business, mixed shifts, and ongoing technology-driven efficiency gain.

Our full year adjusted EBITDA margin of 24, 6% was in line with the prior year, reflecting our consistent profitable revenue growth strategic business mix shift and ongoing technology driven efficiency gain.

Speaker 4: Adjusted net income for the quarter was $75 million, up 14%.

Adjusted net income for the quarter was $75 million up 14%.

Speaker 4: On a park share basis, this translated into a just-a-dail-eater earnings per share for the quarter of 20 cents, which was consistent for the prior year.

On a per share basis. This translated into adjusted diluted earnings per share for the quarter of 28, which was consistent with the prior year.

Speaker 4: For the full year, we achieved adjusted net income of $267 million, an increase of 67% year-over-year, and adjusted diluted earnings per share of $1, reflecting growth of 41% from the prior year.

For the full year, we achieved adjusted net income of $267 million, an increase of 67% year over year and adjusted diluted earnings per share of $1, reflecting growth of 41% from the prior year.

Turning over to the balance sheet.

Speaker 4: We close the year with a very healthy balance sheet, ample liquidity, and improved leverage.

We closed the year with a very healthy balance sheet ample liquidity and improved leverage.

Speaker 4: Casting traffic prevalence were 115 million as of December 31st, 2021.

Cash and cash equivalents were $115 million at December 31, 21.

Speaker 4: Our total available liquidity groups are approximately 831 million, meaningfully higher than the 285 million at the prior year.

Our total available liquidity grew to approximately $831 million meaningfully higher than the $285 million at the prior yearend.

Speaker 4: This also includes available capacity under our revolving credit facilities of $716 million.

This also includes available capacity under our revolving credit facility of $716 million.

Speaker 4: We continue to maintain meaningful capacity for potential strategic acquisition at the appropriate time.

We continue to maintain meaningful capacity for potential strategic acquisition at the appropriate time.

Speaker 4: In the fourth quarter, we continue to reduce our leverage, reducing our net debt to adjusted EBITDA leverage ratio as defined for our credit agreement to 2.1x.

In the fourth quarter, we continued to reduce our leverage reducing our net debt to adjusted EBITDA leverage ratio as defined by our credit agreement so to that one.

Speaker 4: an improvement from 2.2x last quarter, and a meaningful improvement from December of last year, when we were approximately four times after the acquisition of Lionbridge AI.

An improvement from two <unk> last quarter and a meaningful improvement from December of last year. When we were approximately four times after the acquisition of language AI.

Speaker 4: As an ongoing reminder, we view the 2 to 3x zone as a good steady-state amount of leverage. And we do have the flexibility to go beyond this range for the right type of acquisition.

As an ongoing reminder, we view that two to three X zone at a good steady state amount of leverage and we do have the flexibility to go beyond this range for the right type of acquisition.

Speaker 4: Our free cash flow in Q4 was $29 million compared to $70 million in the same quarter last year, and for the full year, free cash flow was $181 million, 4% lower than the prior year, given by a few facts.

Our free cash flow in Q4 was $29 million compared to $70 million in the same quarter last year and for the full year free cash flow was 181 million, 12% lower than the prior year driven by a few factors.

Speaker 4: first higher income tax payment in the quarter and in the year.

First higher income tax payments in the quarter and in the year.

Speaker 4: along with higher service compensation payments from our historically granted cash settled equity awards.

Along with higher stock based compensation payments from our historic me granted cash settled equity awards.

Speaker 4: As a reminder, all of our new awards granted in 2021 and beyond are equity settled and will not impact cash.

As a reminder, all of our New awards granted in 2021 and beyond our equity settled and will not impact cash flow.

Speaker 4: There were also higher outflows from working capital driven mainly by the increase in receivables that was tied to revenue.

There were also higher outflows from working capital driven mainly by the increase in receivables that was tied to revenue growth.

Speaker 4: Finally, capital expenditure has also increased in the form of IT investments and site expansions in North and Central America, including our first site outside of Metro Manila in the Philippines to support continuing business growth.

Finally capital expenditures also increased in the form of investment and site expansion in North and Central America, including our per site outside of Metro Manila in the Philippines.

<unk> continuing business growth.

Now turning to our team members.

Speaker 4: In the fourth quarter, we added over 3,600 net new team members to our Telus International family.

In the fourth quarter, we added over 3600 net new team members to our Telus International family.

Speaker 4: The current labor market is indeed more challenging than in 2020, but despite this complexity, in 2021 as a whole, we added nearly 12,000 net new team members, an increase of 23% year-over-year, bringing our global talented team to over 62,000 strong, supporting our business growth and client ramps across key segments and geography.

The current labor market is indeed more challenging than in 2020, but despite this complexity in 2021 at the hole. We added nearly 12000 net new team members, an increase of 23% year over year, bringing our global talent the team to over 62000 strong supporting our business growth and client ramp across key segments and geographies.

Speaker 4: As you've heard Jeff say, we take pride in our continuing top quartile engagement scores and our differentiated caring culture clearly enables us to attract and retain high quality global talent.

At the project site, we take pride in our continuing.

Quartile engagement scores and our differentiated caring culture clearly enables us.

So attract and retain high quality global talent.

Now onto our outlook.

Speaker 4: In 2022, we expect to continue growing at solid double-digit rates for both revenue and profitability.

For 2022, we expect to continue growing at solid double digit rates for both revenue and profitability.

Speaker 4: For the full year, we expect revenues in the range of $2.55 to $2.60 billion, reflecting an increase in the range of 16.2% to 18.5% on a reported basis, and 18 to 20% on a constant currency basis.

For the full year, we expect revenues in the range of two to two five to $2 61 billion, reflecting an increase in the range of 16, 2% to 18, 5% on a reported basis and 18%, 20% on a constant currency basis.

Speaker 4: This assumes that the euro in which over one-third of our revenues are derived remains at an average exchange rate of $1.13 for the U.S. dollar.

This assumes that the euro in which over one third of our revenues are derived remained at an average exchange rate of $1 13 for the U S dollar.

Speaker 4: For reference, the average exchange rate for the Euro to U.S. dollar in 2021 was $1.82.

For reference the average exchange rate for the Euro to U S dollar.

'twenty one was $1 18.

Speaker 4: Also notes that consistent with previous practice, our guidance does not include the potential impact of material image.

Also note that consistent with previous practice our guidance does not include the potential impact of material M&A.

Speaker 4: We anticipate adjusted EBITDA margin to be approximately 24%, reflecting planned wage increases and continued investment in sales, marketing, and product development to support our organic growth.

We anticipate adjusted EBITDA margins to be approximately 24%, reflecting planned wage increases and continued investments in sales marketing and product development to support our organic growth.

Speaker 4: We expect to deliver adjusted deleted earnings per share in the range of $1.18 to $1.23, which reflects growth of 18% to 23% over last year.

We expect to deliver adjusted diluted earnings per share in the range of $1 18 to $1 23, which reflected growth of 18% to 23% over last year.

Speaker 4: This assumes a weighted average diluted share count of approximately $270 million in each of the quarters.

This assumes a weighted average diluted share count of approximately $270 million in each of the quarters.

Speaker 4: While we do not provide quarterly guidance from a seasonality perspective, we expect revenue seasonality of 47% in the first half and 53% in the second half.

While we do not provide quarterly guidance from a seasonality perspective, we expect revenue seasonality at 47% in the first half and 53% in the second half.

Speaker 4: A reminder that Q1 is typically our lowest seasonal revenue and adjusted in the quarter, with volume ramps throughout the year.

A reminder, that Q1 is typically our lowest seasonal revenue and adjusted EBITDA quarter with volume ramp throughout the year.

Speaker 4: From a cost perspective, unlike in 2021, where our wage increases largely took effect in July , this year, in response to the current labor market dynamics, our annual wage increases are planned to come into effect earlier in the first half of 2022.

Have a cost perspective, unlike in 2021, where our wage increases largely took effect in July this year in response to the currently by market dynamics, our annual wage increases our plans to come into effect earlier in the first half of 2022.

Speaker 4: Given the typical revenue seasonality, with stronger revenue in the second half, coupled with planned investment in our team members and in our business early in the year, we expect adjusted EBITDA margins to be lower in the first half, building up through the second half with a full year average margin of approximately 24%, as I just indicated.

Given the typical revenue seasonality with stronger revenues in the second half coupled with planned investments in our team members and in our business early in the year, we expect adjusted EBITDA margins to be lower in the first half building up through the second half with a full year average margin of approximately 24% as I just indicated.

Speaker 4: As we enter 2022, we look forward to building upon a strong operational foundation established in 2021, and long before, and capitalizing on the momentum that we continue to see throughout the business.

As we enter 2022, we look forward to building upon our strong operational foundation established in 2021 and long before and capitalizing on the momentum that we continue to see throughout the business.

Speaker 4: We pride ourselves in delivering on our commitments and look forward to another exciting year of growth for Tele-International. With that, we will... We pride ourselves in delivering on our commitments and look forward to another exciting year of growth for Tele-International. With that, we will...

We pride ourselves in delivering on our commitments and look forward to another exciting year of growth for Telus International.

With that we will now open the lines for questions.

Speaker 4: As usual, I would kindly ask you to please keep it to one question at a time so that everyone can participate. Jonathan, over to you.

As usual I would kindly ask you to please keep it to one question at a time, so that everyone can participate.

Jonathan over to you.

Speaker 1: Thank you, Ms. Canu. If you would like to ask a question at this time, please press star, then one. And once again, we kindly ask that you limit your questions to one at a time. And get back in the queue if you'd like to ask another question.

Thank you Ms <unk>.

I would like to ask a question at this time. Please press Star then one and once again, we kindly ask that you limit your questions to one at a time and get back in the queue, if you'd like to ask another question.

Speaker 1: We will pause one moment while we compile the queue. Our first question comes from the line of Paul Steep from Scotia Capital. Your question please.

We will pause one moment, while we compile the queue.

Our first question comes from the line of policy from Scotia Capital. Your question. Please.

Speaker 5: Great morning. Jeff, could you talk a little bit about how the mix of bookings flowed in in terms of the build to other areas of the business like build and design and how you've seen maybe those projects sort of roll over and it deliver and then I've got one quick clarification from Vanessa. Thank you. Thanks for the question. Thank you.

Great. Good morning, Jeff could you talk a little bit about how the mix of bookings flowed in in terms of the build to other areas of the business build and design and how you've seen maybe those projects sort of rollover and to deliver it and then I've got one quick clarification for Vanessa Thank you.

Thanks for the question Paul Nice to hear your voice.

Speaker 3: You know, I think what we saw through the fourth quarter and what we're anticipating through 2022 is really a continuation of what we saw through the latter half of 2020 and most of 2021.

I think what we saw through the fourth quarter and what we're anticipating through 2022 is really a continuation of what we saw through the latter half of 2020 and most of 2021, I think a combination of sort of macro dynamics in the marketplace more broadly where folks continue to recognize the critical importance.

Speaker 3: I think a combination of macro dynamics in the marketplace more broadly where folks continue to recognize the critical importance of enabling a virtual relationship with their end.

So enabling a virtual relationship with their end users is driving more adoption around automation and that in conjunction with our Telus International's expanding capability set.

Speaker 3: is driving more adoption around automation. And that's in conjunction with our Telecentranational Expanding Capability Set.

Speaker 3: and more awareness of our extensive capabilities and the quality of that capability is creating more opportunity for TI to be invited in, not just to sort of the traditional.

And more awareness of our.

Extensive capabilities and the quality of that capability is key.

Creating more opportunity for Ti to be invited in not just the sort of the traditional.

Speaker 3: deliver element of our framework, but indeed more design and more build opportunity.

Deliver element of our framework, but indeed more design and more build opportunities candidly I wish I wish we got even more of them and we continue to invest meaningfully in our direct sales channel and marketing efforts and then continuing of course to rely on word of mouth.

Speaker 3: Candidly, I wish we got even more of them, and we continue to invest meaningfully in our direct sales channel and in marketing efforts, and then continuing, of course, to rely on word of mouth to surface more and more of those design and build opportunities. One of the nice current dynamics we're seeing is more and more comprehensive engagements to where

The surface more and more of those design and build opportunities one of the nice.

Current dynamics, we are seeing is more and more more comprehensive engagements where.

Speaker 3: Although we may have started in that deliver dynamic with an existing customer, they are now coming to us more frequently than before for design and or build in connection with their own evolution of their environments. Again, I think a consequence of their recognition of the need to do so and their recognition of TI's ability to be successful in enabling them in that regard. So I'm expecting more and more of that prospectively and we're going to continue to build our capability to ensure that we can continue to take share in that regard.

Though we may have started in that deliver dynamic with an existing customer. They are now coming to us more frequently than before for design <unk> build in connection with their own evolution of their environment again, I think a consequence of their recognition of the need to do so and their recognition of <unk> ability to be successful in enabling them.

In that regard, so I'm expecting more and more of that prospectively and we're going to continue to build our capability to ensure that we can continue to take share in that regard.

Speaker 5: the quick clarification Vanessa just the assumption baked into the guidance can you just clarify How you're thinking about we'll just talk all net headcount growth into Current or the upcoming fiscal year relative to last year should we be thinking sort of a similar pace is sort of what baked into the implied guide

Great.

Clarification, Vanessa just the assumption baked into the guidance can you just clarify how you're thinking about.

Net head count growth into the current or the upcoming fiscal year.

Relative to last year should we be thinking sort of a similar pace of sort of what's baked into the implied guide. Thank you.

Speaker 4: Thanks, Paul. So we don't guide on headcount numbers, obviously, but I do think that directionally, you're right. We expect to see a similar pace as we saw in 2021. Even though we have had, obviously, macro-wide supply challenges, we've done a really good job through 2021 adding to our team member count. And we certainly expect to continue to do so prospectively into 2022. So I think you should expect a similar pace.

Thanks, Paul So we don't guide on.

Head count numbers, obviously, but I do think that Directionally, you're right we.

We expect to see a similar pace as.

As we saw in 2021.

Even though we have had obviously macro wide supply challenges we've done a really good job through 2021, adding to our team member counts and we certainly expect to continue to do so.

It could be into 2022, so I think you should expect a similar pace.

Speaker 4: And perhaps even slightly more accelerated, as you may have noted, our constant currency revenue growth is also accelerated from 2021. We were about 15% constant currency organic growth in 2021. Our guide is implying 18% to 20% constant currency growth in 2021. So I think you should expect that piece to factor into your thoughts there as well.

And perhaps even slightly more accelerated as you may have noted our constant currency revenue growth is also accelerated from from 2021, who are about 15% constant currency organic growth in 2021, our guide is implying 18% to 20% constant currency growth in 2021. So I think you should expect that piece to AUM.

Factoring ciara costs, there as well.

Thank you.

Speaker 1: Thank you. Our next question comes in the line of Dan Perlin from RBC. Your question, please.

Thank you. Our next question comes from the line of Dan Perlin from RBC. Your question. Please.

Yes, good morning.

Speaker 1: Yes, it's actually Matt Roswell putting in for Dan. Following up on that sort of headcount question, are you willing to discuss sort of how much pressure, wage costs, and hiring is having on the EBITDA margin in 22? And somewhat related to that, you mentioned that you're also investing in the sales force and the sales pipeline that sounded strong. So again, how much sort of incremental investment are you thinking about for 22? And what sort of win rates are you seeing?

Yes, it's actually Matt Roswell sitting in for Dan.

We have one that sort of head count growth question are you going to discuss sort of how much pressure wage costs and hiring is is having on the EBITA margin in 2002.

And somewhat related to that you mentioned that you are also investing in the sales force and the sales pipeline.

It sounded strong so again, how much sort of incremental investment are you thinking about for 'twenty, two and what's sort of win rates are you seeing.

Speaker 3: Thanks for the question, Matt. So please give Dan our regard.

Thanks for the question Matt.

Yes, Dan our regards.

Speaker 3: I don't know how much I can offer you other than, and I'll invite Vanessa to top up, as you've heard both we discussed on previous earnings calls late last year and candidly the market more broadly, I think we're all trying to find a way to navigate this interesting labour dynamic. Interesting in the sense that

I don't know how much.

I can offer you other than and I'll invite Vanessa to top up.

As you heard both we discussed on previous earnings calls late last year and candidly the market more broadly I think we're all trying to find a way to navigate this.

<unk> labor dynamic.

Interesting in the sense that it has always been a challenge to attract and retain engage and inspire ones fair share of talent, but I think admittedly in this post pandemic or near hopefully post pandemic world.

Speaker 3: It has always been a challenge to attract, retain, engage, and inspire one's fair share of talent.

Speaker 3: But I think, admittedly, in this post-pandemic or near, hopefully, post-pandemic world, you know, the great resignation, as some people are referring to it, folks are seeing a slight evolution, a change in the relative negotiating leverage between employees and employers. And, you know, one needs to be sensitive to that. We've seen a little bit of pressure, obviously, reflected in our results here. Bye.

Great resignation as some people are referring to it.

Folks are seeing a slight evolution or change in the relative negotiating leverage between employees and employers and one needs to be sensitive to that we've seen a little bit of pressure, obviously reflected in our results here.

But we.

Speaker 3: We think, as I said in my earlier remarks, that our investment in creating a destination for talent that is not merely providing them with employment opportunities but career opportunities has inoculated us to a large extent from some of the challenges around attrition and wage inflation, but not entirely. So I think what you're seeing reflected in our fourth quarter results and captured in our guidance for 2022 is a belief that that dynamic will persist.

We think as I said in my earlier remarks that our investments in creating a destination for talent that is not merely providing them with employment opportunities but career opportunities.

Inoculated us to a large extent from some of the challenges around attrition.

And wage inflation, but not entirely.

So I think what youre seeing reflected in our fourth quarter results and captured in our guidance for 2022 is a belief that that dynamic will persist certainly for the first half of 2022 and I guess right now it's anybody's guess at what point that pendulum, perhaps swings back such that.

Speaker 3: Certainly for the first half of 2022 and I guess right now it's anybody's guess at what point that pendulum perhaps swings back

Speaker 3: perhaps driven off of the decline or extinguishment of government subsidies or otherwise, labor sort of settled into the new normal. We find out what return to office may or may not look like in terms of proportions. Thank you very much.

And perhaps driven off of the decline or extinguishment of government subsidies or otherwise.

Labor sort of settled into the new normal.

And at what return to office May or May not look like in terms of proportions. How many people just are not willing to come back into a traditional office setting expectations around wages working from their home and avoiding.

Speaker 3: how many people just are not willing to come back into a traditional office setting and expectations around wages, working from their home and avoiding commutes, etc.

Commutes et cetera.

Speaker 3: Net net we think we've done historically a very good job certainly better than most in terms of continuing to mitigate the inflationary dynamics of wage inflation as well as the challenges associated with elevated attrition levels given the impact on not just the cost to re recruit retrain and wait for those new team members to get to proficiency and higher level productivity and profitability. But also the ongoing challenges of keeping team members engaged and wanting to be part of sort of growing their careers with the business.

Net net we think we have done historically, a very good job certainly better than most in terms of continuing to mitigate the inflationary dynamics of wage inflation as well as the challenges associated with elevated attrition levels given the impact on not just the cost to re recruit retrain and.

Wait for those new team members to get to proficiency and higher levels of productivity and profitability, but also the <unk>.

Ongoing challenges of keeping team members engaged and wanting to be part of sort of growing their careers with the business well.

Speaker 3: We'll see how it goes through the balance of the year, but I think we're doing reasonably well there.

We'll see how it goes through the balance of the year, but I think we're doing reasonably well there.

Speaker 4: I think the only thing I would pop up to digest is, just as a reminder, I think we can also acknowledge that our adjusted EBITDA margin

I think the only thing I would pop up to that Jeff is.

Just as a reminder, I think we can also acknowledge that our adjusted EBITDA margins today and also our guide of approximately 24% is already amongst the highest in our industry.

Speaker 4: Today, and also our guide of, you know, approximately 24% is already amongst the highest in our industry.

Speaker 4: So I think we can acknowledge that we do have some headroom there relative to many. And that's a just point. Our outlook for margin assumes that some of these sort of, you know, macro supply-side constraints continue at least, you know, into the first half of 2022.

So I think we can acknowledge that we do have some headroom there relative to many.

And Thats to Jeff's point, our outlook for margin. It seems that some of these sort of macro supply side constraints continue at least into the first half of 2022.

Speaker 4: But to address your other question there, we are continuing to invest in organic growth through sales and marketing. We've talked quite a bit about that during 2021. We actually do think that we're seeing the payoffs in terms of an increase in the constant currency organic growth rates. And we will continue making those investments to 2022 and that's been based on drug aid as well.

But to address your other.

Question. There, we are continuing to invest in organic growth through sales and marketing we've talked quite a bit about that during 2021, we actually do think that we're seeing the pay up in terms of.

And increasingly in the constant currency organic growth rate and we will continue making those investments towards 2022, and thats been baked into our guide as well.

Okay. Thank you very much.

Speaker 6: Thank you. Our next question comes from the line of P.N. Sins Young from J.P. Morgan. Your question, please.

Thank you. Our next question comes from the line of Tien Tsin Huang from Jpmorgan. Your question. Please.

Speaker 7: Thank you, thank you, good morning. I want to ask just on the revenue growth outlook, it is higher than what you did in 21 here. Like you just mentioned, but I said earlier, so what's driving the acceleration? Is it more, you know, coming from existing or is it from the back book that's the backlog that's converting and I'm curious about just visibility in general, how does it stand today versus same time last year? Thanks.

Thank you. Thank you good morning, I wanted to ask just on the revenue growth outlook. It is higher than what you did in 'twenty. One here like you just mentioned, but thats earlier so.

What's driving the acceleration is it more.

Coming from existing or was it from the back book.

Backlog, that's converting and I'm curious about just visibility in general how does it stand today versus.

The same time last year. Thanks.

Thanks, Tien tsin.

Speaker 3: I guess it's from a number of sources. As we shared in prior calls, we signed a number of large marquee engagements that are now starting to hit their stride. Even more recently in Q4, as I just alluded to in my prepared remarks, even more so, both net new as well as growth to existing. So, I think that's a good example of where we're at.

I guess, it's from a number of sources as we shared in prior calls we've signed a number of large mark key engagements that are now starting to hit their stride.

Even more recently in Q4 as I just alluded to in my prepared remarks, even more so both net new as well as growth to existing so.

Speaker 3: Now, I think we feel rather fortunate that things are now sort of firing on all cylinders, a combination of those investments.

I think we feel rather fortunate that things are now sort of firing on all cylinders a combination of those investments.

Speaker 3: late in 2020 early in 2021 on the sales and marketing front and materializing in newer bigger engagements net new as well as growth to existing.

Late in 2020 early in 2021 on the sales and marketing front that materializing in newer bigger.

Bigger engagements net new as well as growth to existing.

Speaker 3: So our optimism, our confidence is fueled by that. And given the nature of these engagements, we have some meaningful visibility through the balance of 2022 and indeed beyond that as well. And then as again, I mentioned earlier, I think the macroeconomic environment where businesses across the entire landscape continue to recognize the criticality of they themselves embracing technology-driven solution to give them the ability to,

So our optimism our confidence is fueled by that and given the nature of these engagements we have some some meaningful visibility through the balance of 2022, and indeed beyond that as well and then as again I mentioned earlier I think the macro.

Economic environment, where businesses across the entire landscape continue to recognize the criticality of data themselves embracing technology, driven solutions to give them the ability to differentiate against their peers continue to serve their clients.

Speaker 3: differentiate against their peers, continue to serve their clients in an online, automated enabled fashion in order to stay ahead, I just think right now there's sort of a confluence of events for us that is giving us a high degree of confidence in our ability to deliver against this accelerated revenue growth profile. It feels a bit...

In an online automated enabled fashion in order to stay ahead.

Just think right now it's sort of a confluence of events for us that is giving us a high degree of confidence in our ability to deliver against this accelerated.

Revenue growth profile.

It feels a bit.

Speaker 3: candidly frustrating sometimes, when we're criticized on occasion, like after our third quarter results, where our revenue miss is nominal, I think ostensibly because of foreign exchange headwinds, but we do well on EBITDA and outperform. And then when we put up the inverse where we're pretty much right down the fairway on EBITDA and we're

Candidly frustrating, sometimes Tianjin win.

We're criticized on occasion like after our third quarter results.

Where our revenue Miss is nominal I think ostensibly because of.

Foreign exchange headwinds, but we do well on EBITDA and outperform and then when we put up the inverse where we're pretty much right down the fairway on EBITDA and we're anticipating.

Speaker 3: anticipating pretty significant acceleration on revenue growth. And yet now we're being, you know, quite as well recognized for sort of fulfilling the audiences expectations. It's a bit of a thankless task, candidly, but I think where we are in the right, in the right space. Great.

Sitting pretty significant acceleration on revenue growth and yet now we're being.

Not quite as well recognized for sort of fulfilling the.

The audience's expectations with a bit of a thankless task candidly, but I think where we are in the right in the right space.

Great.

Thanks Ross.

Thanks, Tien tsin.

Speaker 6: Thank you. Our next question comes from the line of Maggie Nolan from William Blair. Your question, please.

Thank you. Our next question comes from the line of Maggie Nolan from William Blair. Your question. Please.

Speaker 8: The data is set on for Maggie. Thanks for taking our question. So it looks like North America and Europe threw nicely quarter over quarter. Could you provide color regarding what grows that growth? Is there a particular service line that picked up in those delivery geographies?

Hey, this is Ted on for Maggie Thanks for taking our question.

So it looks like North America, and Europe grew nicely quarter over quarter could you provide color regarding what drove that growth.

Your service line that picked up in those delivery geographies.

Hi, Todd it's Vanessa thanks for the question.

Speaker 4: We did see, as I kind of mentioned in my remarks, you know, the growth that we saw was across pretty much all verticals. If we're looking at North American Europe specifically, you know, a large number of our clients in those particular geographies or that we start from those geographies are in fact in the tech and games and e-commerce and fintech spaces. So I think you do see some of that reflected. And then in terms of, you know, sort of key, you know, service lines that drove that growth.

We did see as I kind of mentioned in my remarks, the growth that we saw with across pretty much all verticals.

We're looking at North America, and Europe , specifically.

A large number of our clients in those particular geographies or that we start from those geographies are impacting the tech and games and E Commerce and Fintech as basis. So I think you do see some of that reflected and then in terms of sort of key service lines that drove that growth.

Speaker 4: We're seeing continuing very healthy, better than market organic growth in the content moderation space. We're also seeing increased organic growth as well in our digital CX services.

We're seeing continuing very healthy better than market organic growth and the content moderation at space. We're also seeing increased organic growth as well in our digital CX services.

Speaker 4: And so I think it is more broad based than one particular thing, but as we look at those specific regions, those would be the key drivers.

And I think it is more broad based and then one particular thing, but as we look at those specific region towards would be the key drivers.

Alright, great. Thank you very much.

Thanks Pat.

Speaker 6: Thank you. Our next question comes from line of Ashwin Sri Lanka from city. Your question please.

Thank you. Our next question comes from the line of Ashwin <unk> from Citi. Your question. Please.

Speaker 9: Hi, it's Ron Fatteron from Mashwin. Thanks for taking a question. Looking at your AI data solutions business, it seemed to improve and kind of accelerate through 2021. So I was wondering if there are any significant factors to call out that's driving this acceleration. And also how much of this improvement is being driven by the cross cell along with a content moderation.

Yes.

So Ryan Potter on from Ashwin, Thanks for taking my questions.

AI solutions business seem to improve and kind of accelerated through 2021. So I was wondering if there are any significant factors to call out that's driving this acceleration.

Also how much of this improvement is being driven by the cross sell along with the content moderation.

Speaker 3: Thanks Ryan, good question. We haven't provided that much, you know, sub segmented detail disclosure on this that may change in the fullness of time, but just sort of high level, indeed, the latter half of the year. We saw continued acceleration in terms of the performance of that portfolio for us. And I think it's a consequence of a number of factors, not just obviously macro customer demand, but also

Thanks, Ryan good question.

We haven't provided that much sub segment to detailed disclosure on that that may change in the fullness of time, but.

Just sort of high level. Indeed, the latter half of the year. We saw continued acceleration in terms of the performance of that portfolio for us and I think it's.

Consequence of a number of factors not just obviously macro customer demand, but also.

Speaker 3: admittedly inside TELUS International, we finally are getting better aligned and progressed on the integration front so that we could really bring a more compelling, integrated, synergized customer offering across both our AI content moderation and digital IT capabilities. And so the customers that we'd inherited through the AI acquisitions in particular both

Yes.

Admittedly inside Telus International we finally, getting better aligned and progress on the integration front. So that we could really bring a more compelling integrated synergize.

Customer offering across the both our AI.

Intent moderation in digital.

Our capabilities and so the customers that we inherited.

<unk> through the AI acquisitions in particular boats.

Speaker 3: former LAI and claimant, I think recognizing and embracing the enhanced value that TI could deliver to them.

Former led and claimant.

Recognizing and embracing the enhanced value that ti could deliver to them.

Excuse me.

Speaker 3: As a consequence of this more progressed integrated offering, I think we're finally starting to take hold and improve performance. And through 2022 and beyond, we're excited about the continued acceleration and adoption of those combined capabilities.

As a consequence of this.

More progressed integrated offering I think it was finally, starting to take hold and improve performance and through 2022 and beyond we're excited about the continued acceleration and adoption of those combined capabilities.

Great. Thank you.

Speaker 6: Thank you. Our next question comes to the line of Stephanie Price from CIBC. Your question, please.

Thank you. Our next question comes from the line of Stephanie price from CIBC. Your question. Please.

Hi, good morning.

Speaker 2: This one is a touch on customer dynamics here. So a large social media firm reported a drop in daily users this quarter. I think it's sure you see the talk of it of the potential breakthrough to TI, from potential slow-growth at clients, and remind us how you incorporate client growth into the guys.

Just wanted to touch on customer dynamics sure. So a large social media firm recorded a drop in Kelly users this quarter.

If you could talk a bit of a potential read through to Ti some potential slowing growth of clients and I remind you remind us how you're incorporating client growth into the guidance.

Speaker 3: Thanks very much, Stephanie. I mean, I guess a couple of things worth noting. The first is, TI is a value-driving partner for that social media client. We provide, I think, unique solutions that are really critically important to their continued growth and success. And we do it more effectively and with higher efficiency than if they were to do it themselves in-house. And given that we're stacked ranked regularly to their other partners, and we

Thanks, very much Stephanie.

I guess, a couple of things worth, noting the first is <unk>.

<unk>.

Value driving partner for that social media clients, we provide.

<unk> unique solutions that are really critically important to their continued growth and success and we do it more effectively and with higher efficiency than if they were to do it themselves in house.

Given that were stacked rank regularly to their other partners and we.

Speaker 3: outperform those other third parties as well. We just don't anticipate to be on the cost cutting end of things to the extent that they decide that in order to address that macro situation, that's the route we want to take to the contrary. I think that represents incremental upsides for us. The other thing I think worth noting there is.

Outperform those other third parties as well.

We just don't anticipate to be.

On the call it the cost cutting end of things to the extent that they decided that in order to address that macro situation. That's the route we want to take to the contrary I think that represents incremental upsides for us. The other thing I think worth noting there is.

Speaker 3: excuse me, the related market commentary about those challenges also reference the elevated level of competition and possible market share user base shifts away from their base to their competitors, and their competitors are also our clients.

Excuse me that the related market commentary about those challenges.

Reference the elevated level of competition and possible market share user base shifts away from their base too.

Our competitors and their competitors are also our clients.

Speaker 3: So I think that just sort of reinforces the benefit of our well-diversified client base and having a number of these platforms in our top 10 client roster, serving some of these highest, not just high growth tech companies. So we're feeling reasonably comfortable that.

So I think thats, just sort of reinforces the benefit of our well diversified client base and having a number of these.

Platforms in our top 10 client roster in serving some of these highest not just high growth tech companies.

So we're feeling reasonably comfortable that.

Notwithstanding those challenges there is still continued upside opportunity for Ti.

Great. Thank you.

Thank you. Our next question comes from the line of Ramsey El <unk> from Barclays. Your question. Please.

Speaker 10: Hi. Thanks for taking my question this morning. I wanted to ask about the M&A environment. I know your balance sheet is at a point now where you have some nice dry powder to consummate deals. I'm just wondering whether the environment now with kind of tech valuations having really come in, has that kind of opened the aperture or increased the sort of opportunity set for you? What are you seeing out there at this point?

Hi, Thanks for taking my questions. This morning.

Wanted to ask about the M&A environment I know your balance sheet is at a point now where you have some nice dry powder to consummate deals.

Just wondering whether the environment now with kind of tech valuations, having really come in is that has that kind of opened the aperture increase to sort of opportunity set for you.

What are you seeing out there at this point.

Speaker 3: Thanks, Ramsey. That's a great question. And as I think you know, I've been sort of chomping at the bit to see if we can't progress this thesis in our growth strategy for some time now. I mean, the primary driver of accessing the public markets at first instance was to have a transaction currency to amplify and accelerate our progress in that regard.

Yes.

Thanks Ramsey its a great question and as I think you know I've been sort of chomping at the bit to see if we can progress this thesis in our growth strategy.

For some time now I mean the <unk>.

Primary driver of accessing the public markets. At first instance was to have a transaction currency to amplify and accelerate our progress in that regard.

Speaker 3: I don't know that the rotation in valuation is what's driving my...

I don't know if that.

We call it the rotation in valuation.

Is what's driving my.

Speaker 3: excitement and enthusiasm around this. I think the opportunities are probably as robust today as they were.

Heitman and enthusiasm around this I think the opportunities are probably as robust today as they were three months ago six months ago.

Speaker 3: three months ago, six months ago. But indeed, I'm...

But indeed.

I'm.

Speaker 3: I'm a part-semonious. I'm desirous of not overpaying, and we've had to be disciplined as we've always been in terms of what assets we thought were worth acquiring. I think historically one has seen if one overpays at first instance, one then just naturally pursues, I think unfortunate dysfunctional efforts around synergy realization to try and compensate for the overpayment on the purchase price at first instance, and then it's just a disaster all the way around. So I'm...

Parsimonious sign I'm desirous of not overpaying and we've had to be disciplined as we've always been in terms of what assets. We thought were worth acquiring I think.

Historically, one has seen if one overpays at first instance, one then just naturally pursues I think unfortunate dysfunctional efforts around synergy realization to try and compensate for the overpayment on the purchase price at first instance, and then it's just it's a disaster all the way around so I'm I'm encouraged by what I'm seeing in terms of.

Speaker 3: I'm encouraged by what I'm seeing in terms of.

Speaker 3: perhaps a slightly more rational valuation environment.

Perhaps a slightly more rational valuation environment.

Speaker 3: for potential assets that we might pursue and again as Vanessa mentioned in her prepared remarks.

For potential assets that we might pursue and again as.

But as I mentioned in her prepared remarks, but we do believe that we are well positioned given as you say the dry powder levels that we are currently experiencing so when if the right opportunity comes along and Thats not just the consequence of the purchase price. It's also obviously a consequence of the capability that this asset.

Speaker 3: that we do believe that we are well positioned given, as you say, the dry powder level that we are currently experiencing. So when if the right opportunity comes along and that's not just the consequence of the purchase price, it's also obviously the consequence of the capability that this asset will enable for us.

We will enable for us.

Speaker 3: the transaction structure, the integration roadmap.

Transaction structure the integration.

Speaker 3: I think you should have really expected to see us exploiting our opportunities in that regard.

Roadmap I think you should absolutely expect us to see us.

Exploiting our opportunities in that regard.

Got it okay. Thanks, so much.

Speaker 6: Thank you. Our next question comes to line of retreats. Say from National Bank Financial. Your question, please.

Thank you. Our next question comes from the line of Richard <unk> from National Bank Financial Your question. Please.

Speaker 9: Yes, thank you. I wonder if you could talk about your ability to pass on wage inflation and the prices. Is there like a six-month lag, a 12-month lag? And is it fair to say that any sort of compression of margins is really temporary when you think about it in that context?

Yes. Thank you.

If you could talk about your ability to pass on wage inflation and the price is there like a six months lag a 12 month lag and is it fair to say that any sort of compression in margins.

It's really temporary when you think about it from that context.

Speaker 3: Thanks, Richard. I think you may recall we sort of addressed the same question last quarter as well. It's a bit of a mixed bag. We don't have sort of a comprehensive cold

Thanks Richard.

I think you may recall, we sort of address the same question last quarter as well.

A bit of a mixed bag, we don't have sort of a.

Comprehensive Cola language in all of our.

Speaker 3: customer engagement such that we can indeed be fully inoculated from these wage inflation dynamics.

Customer engagements such that we can indeed be fully inoculated from these wage inflation dynamics.

Speaker 3: But we do absolutely have a disciplined approach across the business.

But we do absolutely have a disciplined approach across the business.

Speaker 3: not new post-pandemic, but frankly, since our inception and part of our TELUS heritage to be focusing on profitable growth and engagements that are perceived by both our client and we as high value.

New post pandemic, but frankly since our inception and part of our Telus heritage to be focusing on profitable growth and on engagements that are perceived by both our client and we as high value.

Speaker 3: So we have been aggressively, actively...

So we have been agree.

Aggressively actively looking for areas of opportunity to indeed share the challenges of this labor inflation with our customers and that will be a continuing effort indefinitely as I said before this is not new.

Speaker 3: looking for areas of opportunity to indeed share the challenges of this labor inflation with our customers and that will be a continuing effort indefinitely and as I said before this is not new post-pandemic this has always been our approach to try and mitigate

Post pandemic. This has always been our approach to try and mitigate the inexorable challenges around wage inflation.

Speaker 3: the inexorable challenges around wage inflation and cost inflation that always sort of challenge margin yields.

Cost inflation that always sort of challenged margin yields and I think our history has demonstrated we have.

Speaker 3: And I think our history has demonstrated, you know, we've been laser focused on margin yield, not just growth, but profitable growth. So you should expect us to continue to do that. And in as many cases as possible, we'll indeed look to share those challenges with our customers. I think prospectively, we'll see if there's gonna be a change to the landscape. I think we're gonna be in good shape here. I really do. Do I think this comes to an end?

Been laser focused on margin yield not just growth, but profitable growth. So you should expect us to continue to do that and as.

As many cases as possible will indeed look to share those challenges with our customers.

I think prospectively we.

We will see if theres going to be a change to the to the landscape.

Think we're going to be in good shape here I really do I think this comes to an end.

Speaker 3: I'm not sure. But like I said, this has always been, when you're in technology services, you've got to find ways to mitigate these challenges. And forgive me, I think you had a second part of your question, and I just have lost it.

I'm not sure, but like I said this has always been when Youre in technology services, you've got to find ways to mitigate these challenges and forgive me I think you had a second part of your question I just lost it.

Speaker 2: No, I was sort of related to that in that, you know, whether you would think the impact of those placinary pressures are kind of temporary and that the margins would pass not back, but I think you kind of answered it. Yeah, I mean, the only...

No I was sort of related to that.

Whether you would think the impact of those inflationary pressures that are kind of temporary and that the margins would be perhaps not back, but I think you kind of answered it.

Yes, I mean, the only thing I would add to that is remember one of the other things that we're focused on is the mix of the services that we're providing.

Speaker 3: Remember, one of the other things that we're focused on is the mix of the services that we're providing.

Speaker 3: So we're working towards an outcome, and this again is a journey not a destination, where the nature of the work we provide to our customers is more complex, more high value, and it too will carry some margin, expansion attributes that we can also rely upon to mitigate.

So we're working towards an outcome and this again is a journey not a destination where the nature of the work we provide to our customers is more complex more high value and it too will carry some margin expansion attributes that we can also rely upon to mitigate the wage inflation margin.

Speaker 3: the wage inflation, margin dilution implications of our business. So, and again, that's not new, and this has been what we've been working towards for many, many years, and I think that's going to be ongoing as well.

Dilution implications of our business, so and again, that's not new this has been what we've been working towards for many many years and I think thats going to be ongoing as well.

Alright, Thanks, guys I appreciate it.

Got it.

Speaker 6: Thank you, our next question comes to line of Keith Bachman from BMO. Your question please.

Thank you. Our next question comes from the line of Keith Bachman from BMO. Your question. Please.

Speaker 3: Many thanks and good morning, Jeff and Vanessa. I wanted to ask about the growth for CY22. Indeed, I would echo a comment previously. It seems like a fairly impressive growth outlook. How do you think about the growth algorithm between new logos contributing to that growth versus upsell from existing customers? Is there any way – I would assume the vast majority from existing customers, but if you could just –

Many thanks, and good morning, Jeff and Vanessa I wanted to ask about the growth for <unk> 'twenty to date I would echo will come it previously it seems like apparently impressive growth outlook.

Do you think about the growth algorithm.

Between new logos contributing to that growth.

Versus upsell.

From existing customers is there any way I would think.

Asked majority from existing customers, but just could you just define that a little bit and then Vanessa if I can just sneak a clarification.

Speaker 2: find that a little bit. And then that's if I could just sneak a clarification in on the growth outlook. How much is organic? I assume that we've anniversaryed most of the deals.

On the growth outlook.

Much as organic I assume that we've anniversaried most of the deals.

Speaker 3: But how much is organic in terms of the overall growth? Because I think a claimant came in July 22, so maybe a little bit of help there. But if you could just clarify. Many thanks.

But.

How much is organic.

In terms of the overall growth because I think.

<unk> came in in July 'twenty, two so maybe a little bit of help there, but if you could just clarify many thanks.

Thanks Keith.

Speaker 4: So maybe I'll just start with the first part of your question, which is, you know, how much of the growth is coming from, you know, new logos versus, you know, go through and this thing.

So maybe I'll just start with the first part of your question, which is how much of the growth is coming from new logos versus existing so.

Speaker 4: So typically, in any given year, new clients contribute, you know, say less than 15% of revenue for that year. And that's to be expected because

So typically in any given year new clients.

<unk> paid less than 15% of revenue for that year.

And thats to be expected because typically with new client acquisitions would have more new client addition, what tends to happen at the start small and then they expand over a period of time.

Speaker 4: Typically with new client acquisitions, what have or new client additions, what tends to happen is they start small and then they expand over a period of time. And so the real growth in any given year tends to be from the expansion of clients that were one.

And so the real growth in any given year it tends to be from the expansion of clients that were won.

Speaker 4: in the previous year or the previous few quarters. So the revenue contribution from those new clients acquisitions builds up over time.

<unk>.

The previous year or the previous few quarters. So the revenue contribution from those new client acquisition built up overtime.

Speaker 4: So as a result of that, the way we look at things internally in terms of new logos versus growth to existing, the vast majority of our growth in any given year is growth to existing. However, as we continue with the new client wins, those ultimately become existing clients that continue to expand from a revenue growth perspective.

As a result of that the way we look at things internally in terms of new logos versus cross check. This thing the vast majority of our growth in any given year is growth check. This thing. However, as we continue with the new client win so ultimately become existing clients that continue to to expand from a revenue growth perspective.

Speaker 4: And then the second part of your question with respect to the outlook, it's all organic.

And then the second part of your question.

With respect to the.

The outlook, it's all organic Keith.

Speaker 4: So AI has now lapped into one year, so that's definitely within our organic growth metric.

So AI has now lapped into one year. So that's definitely within our organic growth metric payment wasn't immaterial acquisition.

Speaker 4: Claimant was an immaterial acquisition, as you know, frankly, you know, that was a technology based acquisition. The financials were immaterial. So that has really not much to do with the guide. The guide is really more around the strong organic growth. And AI is a big part of that as we continue to ramp that business. I think somebody noted earlier the strong performance in Q4. We also saw that as well in Q3. And we expect that momentum to continue.

What the technology based acquisition the financials of our materials. So that has really not much to do with the guide. The guide is really more around the strong.

Organic growth and AI is a big part of that as we continue to ramp that business I think somebody noted earlier the strong performance in Q4, we also saw that as well.

In Q3.

We expect that momentum to continue.

Speaker 1: Yeah, that's a terrific, I thought it was mostly organic, but thanks for clarification. It's certainly a positive outlook. Many thanks.

So terrific I thought it was mostly organic but thanks for the clarification. It so certainly a positive outlook many thanks.

Thank you Keith.

Speaker 6: Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to Jeffrey Purit for any further remarks.

Thank you. This does conclude the question and answer session of today's program I'd like to hand, the program back to Geoffrey.

Pure it for any further remarks.

Thanks, Jonathan and thank you everyone for your questions.

Speaker 3: In closing, 2021 was a transformational year for Telef International and I could not be more proud of our highly engaged team for their passion, focus and unwavering commitment to service X.

In closing 2021 was a transformational year for Telus International and I could not be more proud of our highly engaged team for their passion focus and unwavering commitment to service excellence. The outlook. We shared today reflects the momentum from 2021 and our confidence in.

Speaker 3: The outlook we shared today reflects the momentum from 2021 and our confidence into this year. And we are so excited to embrace the challenges and opportunities ahead. We look forward to connecting with you all at our next quarterly update, taking place in May. And before that, we hope to see you during conferences of an SNI plan to attend, perhaps unfortunately, still in a virtual format for just a little bit longer.

This year.

We are so excited to embrace the challenges and opportunities ahead.

We look forward to connecting with you all at our next quarterly update taking place in May and before that we hope to see you during conferences, Vanessa and I plan to attend perhaps unfortunately still in a virtual format for just a little bit longer now.

Speaker 3: Thank you all for joining us today. Please keep yourselves and your families safe. Bye-bye.

Thank you all for joining US today, please keep yourselves and your families safe Bye bye.

Speaker 6: that you ladies and gentlemen for your participation at today's conference. This does conclude the program. You may now disconnect. Good day.

Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program you may now disconnect good day.

Speaker 11: Ooooooh.

[music].

Okay.

Okay.

Okay.

[music].

Speaker 11: I.

[music].

[music].

Speaker 6: Good morning, ladies and gentlemen. Welcome to the TELUS International fourth quarter 2021 investor call. My name is Jonathan. I will be your conference facilitator today.

Good morning, ladies and gentlemen, welcome to the Telus International fourth quarter 2021, Investor call. My name is Jonathan and I will be your conference facilitator today.

Speaker 6: At this time, all lines have been placed on mute to avoid any background noise. After the speaker's remarks, there will be a question and answer period. If you'd like to ask a question during this time, please press star then the number one on the your telephone keypad. If you'd like to withdraw your question, please press the pound or hash key. I would now like to introduce Jason Mayer, buyer, senior director, investor relations and treasurer at Tell Us International. Mr. Meyer, you may begin the call.

At this time all lines have been placed on mute on mute to avoid any background noise. After the speakers' remarks, there will be a question and answer period, if you'd like to ask a question. During this time. Please press Star then the number one I think your telephone keypad, if you'd like to withdraw your question. Please press the pound or hash key I would now like to interim.

Jason.

Senior director of Investor Relations and Treasurer at Telus International Mr. Martin you may begin the call.

Speaker 2: Thank you, Jonathan. Good morning, everyone. Thank you for joining us today for TELUS International's Q4 2021 Investor Call. Hosting our call today are Jeff Purit, President and Chief Executive Officer, and Vanessa Canu, our Chief Financial Officer.

Thank you Jonathan Good morning, everyone. Thank you for joining us today for Telus International's Q4, 2021 investor call hosting our call today are Jeff <unk>, President and Chief Executive Officer, and Vanessa <unk>, our Chief Financial Officer.

Speaker 2: As usual, we will begin with some prepared remarks where Jack will provide an operational and strategic overview of the quarter and highlights for the year, followed by Vanessa who will provide some key financial highlights.

As usual, we will begin with some prepared remarks, where Jack will provide an operational and strategic overview on the quarter and highlights for the year, followed by Vanessa who will provide some key financial highlights.

Speaker 2: We will then open the line to questions from pre-qualified analysts before turning the call back to Jeff for his closing remarks.

We will then open the line to questions from Prequalified analysts before turning the call back to Jack for his closing remarks.

Speaker 2: Before we begin, I'd like to direct your attention to slide two of the supplementary presentation available for download on this webcast and also available on our website at telusinternational.com slash investor.

Before we begin I'd like to direct your attention to slide two of the supplementary presentation available for download on this webcast and also available on our web site at Telus International Dot Com slash investors with <unk>.

Speaker 2: The statements made during this call may be forward looking in nature, including all comments reflecting expectations, assumptions, or beliefs about future events or performance that do not relate solely to historical periods.

Payments made during this call maybe forward looking in nature, including all comments, reflecting expectations assumptions or beliefs about future events or performance that do not relate solely to historical periods.

Speaker 2: These forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from our current projections. We assume no obligation to update any forward-looking statements.

These forward looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from our current projections, we assume no obligation to update any forward looking statements.

Speaker 2: Jeff and Vanessa will also discuss certain non-GAAP measures that the management team consider to be useful in assessing our company's underlying business performance. An explanation of these non-GAAP measures and reconciliation to the comparable GAAP measures can be found in the appendices of today's supplementary presentation along with the earnings news release issued this morning.

Jeff and Vanessa we will also discuss certain non-GAAP measures that the management team considered to be useful in assessing our company's underlying business performance.

An explanation of these non-GAAP measures and reconciliation to the comparable GAAP measures can be found in the appendices of today's supplementary presentation, along with the earnings news release issued this morning.

Speaker 2: I would also like to remind everyone that all financial measures we're referencing on this call and in our disclosure are in U.S. dollars unless specified otherwise, and relate only to TELUS International results and measures. With that, I will now pass the call over to our President and CEO , Jeff Garrett.

I would also like to remind everyone that all financial measures were referencing on this call and in our disclosure in U S dollars unless specified otherwise and relate only to Telus international results and measures.

With that I will now pass the call over to our President and CEO , Jeff Jarrett.

Speaker 3: Thank you, Jason. Good morning, everyone, and thank you for joining us today.

Thank you, Jason and good morning, everyone and thank you for joining us today.

Speaker 3: 2021 was a remarkable year for Telus International.

2021 was a remarkable year for Telus International from our first day of trading on the New York and Toronto stock exchanges, the latter of which still represents the largest tech IPO in Canadian history.

Speaker 3: from our first day of trading on the New York and Toronto Stock Exchange, the latter of which still represents the largest tech IPO in Canadian history, to the successful integration of our Gain Changing AI Services Acquisitions, each one of us across our entire organization brought their very best to deliver on our growth strategy in 2021 despite the challenges of operating during a prolonged global pandemic.

Successful integration of our game changing AI services acquisitions, each one of us across our entire organization brought their very best to deliver on our growth strategy in 2021, despite the challenges of operating during a prolonged global pandemic.

Speaker 3: Our business continues to evolve, but has remained a constant, is our team's unwavering commitment to service excellence for our clients, and by extension to their customers.

Our business continues to evolve but has remained a constant is our team's unwavering commitment to service excellence for our clients and by extension to their customers.

Speaker 3: Equally important is our commitment to the care of our team members around the world. After all, it's these highly engaged and talented individuals that breathe life into the innovative solutions we design, build, and deliver for our more than 600 global clients.

Equally important is our commitment to the care of our team members around the world. After all these highly engaged and talented individuals that breed life into the innovative solutions, we design build and deliver for our more than 600 global clients.

Speaker 3: Our financial results reflect the success of our team's efforts with total revenue of $2.2 billion in 2021. This represents an impressive 39% growth rate versus 2020. Our profitability also remains robust with a 38% year over year increase in annual adjusted EBITDA and an annual EBITDA margin of 24.6% in 2021.

Our financial results reflect the success of our team's efforts with total revenue of $2 $2 billion in 2021.

This represents an impressive 39% growth rate versus 2020 our.

Our profitability also remains robust with a 38% year over year increase in annual adjusted EBITDA and an annual EBITDA margin of $24, 6% in 2021.

Speaker 3: Given the backdrop of the broader macroeconomic environment, including possible rising interest rates and continued pandemic uncertainty, we believe TI offers an attractive destination for capital and delivers real value to shareholders to our longstanding commitment to profitable growth and focus on cashflow.

Given the backdrop of the broader macroeconomic environment, including possible rising interest rates and continued pandemic uncertainty. We believe <unk> offers an attractive destination for capital and delivers real value to shareholders through our longstanding commitment to profitable growth and focus on cash flow.

Speaker 3: Our global sales team ended the year on a high note adding several new marquee clients in Q4 and with a replenished sales funnel, once again comfortably in excess of $2 billion.

Our global sales team ended the year on a high note, adding several new marquee clients in Q4, and with a replenished sales funnel once again comfortably in excess of $2 billion.

Speaker 3: Some of the exciting brands we welcome to TELUS International in the fourth quarter include a top U.S. wireless carrier, a rapidly growing Australian software company, a large manufacturer for the global PC gaming market and pioneer in modern computer graphics, and a leading American software developer for marketing, sales, and customer service.

Some of the exciting brands, we welcome to tell US international in the fourth quarter include a top U S wireless carrier a rapidly growing Australia and software company a large manufacturer for the global PC gaming market in pioneer and modern computer graphics, and a leading American software developer for marketing sales and customer <unk>.

Speaker 3: We also expanded the scope and breadth of our engagement with many existing clients, including the world's largest e-commerce company, the world's largest technology company, one of the top American cryptocurrency exchange platforms, a digital banking services company, and one of the world's largest consumer electronics companies.

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We also expanded the scope and breadth of our engagements with many existing clients, including the world's largest E Commerce company the world's largest technology company one of the top American crypto currency exchange platforms or digital banking services company and one of the world's largest consumer electronics companies.

Speaker 3: These represent high-quality, multimillion-dollar, longer-term growth opportunities with expected revenues ramping up throughout 2022 and beyond. I am so pleased to see that our team's consistent delivery is being rewarded with even more share of wallet from these large global brands, further solidifying our relationships with these valuable clients.

These represent high quality multimillion dollar longer term growth opportunities with expected revenues ramping up throughout 2022 and beyond I am so pleased to see that our team's consistent delivery is being rewarded with even more share of wallet.

These large global brands further solidifying our relationships with these valuable clients.

Speaker 3: I'm now turned to one of my favorite parts of these calls, sharing some specific examples that better illuminates and brings the life how we serve our clients.

I'll now turn to one of my favorite parts of these calls sharing some specific examples that better illuminate and bring to life, how we serve our clients well.

Speaker 3: I'll begin with one of our clients where we started our relationship on the CX support side, but which has since evolved to include other services across our end-to-end design-build-deliver continuum.

Begin with one of our clients, where we started our relationship on the support side, but which has since evolved to include other services across our end to end design build deliver continuum.

Speaker 3: This particular project involves the enablement of database automation for a leading healthcare app that tracks the subscriber's food intake and exercise habits. Our team is helping to automate the client's nutrition information data by building a bot platform that enhances the search process for retrieving accurate nutritional data values for a variety of food items.

This particular project involves the enablement of database automation for a leading health care App attracted subscribers food intake and exercise habits. Our team is helping to automate the clients nutrition information data by building a platform that enhances the search process for retrieving accurate nutritional data values for a variety.

Speaker 3: We're also embedding an AI-powered categorization of each food item as per our client's predefined food groupings. And we set up automation tools to remove redundant food items from data.

Food items.

Also embedding an AI powered categorization.

Each food item as per our clients predefined groupings, and we set up automation tools to remove redundant food items from data cues. We also continue to partner with this client on our premium customer care support services encompassing several regions in languages across our global team member base meeting this clients.

Speaker 3: We also continue to partner with this client on our premium customer care support services, encompassing several regions and languages across our global team member base, meeting this client's increasing demand for high-value support as they grow their business.

Increasing demand for high value support as they grow their business.

Speaker 3: Another engagement that I'll highlight was for a large Western Canadian utility company that required advisory services and support to manage its transition to a modernized Microsoft Exchange platform, and in particular, an upgraded email application.

Another engagement that I'll highlight was for a large western Canadian utility company that required advisory services and support to manage its transition to a modernized Microsoft exchange platform and in particular, an upgraded E mail application.

Speaker 3: The client was seeking a partner that could ensure the stability and security of their technology infrastructure transformation while augmenting technical support in the process. Our team managed this project end-to-end, transitioning the client's environment to a hybrid of Exchange Online Office 365 and Exchange On-Prem.

The client was seeking a partner that could ensure the stability and security of their technology infrastructure transformation.

Augmenting technical support in the process our team manage this project and to and transitioning the clients environment to a hybrid of exchange online office 365 and exchange on Prem in total our team successfully migrated over 13000 mailboxes excuse me whilst.

Speaker 3: In total, our team successfully migrated over 13,000 mailboxes, while concurrently managing the registration of nearly 6,000 users to mobile solutions, unlocking and enhanced user experience for their team members, all while leveraging Microsoft's modernized technology platform.

Managing the registration of nearly 6000 users to mobile solutions unlocking an enhanced user experience for their team members all while leveraging Microsoft's modernized technology platform.

Speaker 3: I'd also like to share some recent examples of our AI-powered solutions in action.

I'd also like to share. Some recent examples of our AI powered solutions inaction.

Speaker 3: One of our clients is the leading flood mapping platform designed to protect the world's most climate vulnerable communities.

One of our clients is the leading flood mapping platform designed to protect the world both climate vulnerable communities.

Speaker 3: The client's in-house machine learning team built complex 2D and 3D semantic segmentation datasets to detect water bodies in urban areas with the satellite imagery collected using multiple sensors, like radar and camera, and in differing weather conditions.

Clients in House machine learning team built complex, two D and <unk> semantic segmentation datasets.

Water bodies in urban areas with the satellite imagery collected using multiple sensors like radar and camera and deferring weather conditions. You original images collected by the client lacked consistency due to varying time stamps and included many distortions from sensors detecting water bodies and clouds our.

Speaker 3: The original images collected by the client lacked consistency due to varying timestamps and included many distortions from sensors detecting water bodies and clouds. Our solution for this client included setting up data pipeline integrations via API connectors with the 2D and 3D sensor outputs uploaded to our proprietary labeling platform.

Solution for this client included setting up data pipeline integrations by API connectors with the <unk> and <unk> sensor outputs uploaded to our proprietary labeling platform. We then provided real time human in the loop data labeling delivering faster and more accurate results with our high precision <unk> and <unk>.

Speaker 3: We then provided real-time, human-in-the-loop data labeling, delivering faster and more accurate results with our high-precision 2D and 3D tools. We also ensured there were advanced quality process controls at each step. In total, our team accurately classified 100,000 documents in six months, labeled and transcribed 116,000 fields, and helped automate 80% of the process.

The tools. We also ensured that were advanced quality process control at each step in total our team accurately classified 100000 documents in six months labeled and transcribed 116000 field and help to automate 80% of the process.

Speaker 3: as an outcome, our advanced quality control tools and expedient feedback mechanisms ensured 95% accuracy for all data labeling.

As an outcome, our advanced quality control tools and expedient feedback mechanisms ensured 95% accuracy for all data labeling outputs.

Speaker 3: We're also supporting several AI-focused projects for the world's largest e-commerce company, tapping into our AI community of more than 1 million individuals to collect quality data for our client to train its AI algorithm.

We're also supporting several AI focused projects for the world's largest E Commerce company tapping into our AI community of more than 1 million individuals to collect quality data for our clients to train AI algorithms.

Speaker 3: One example involves our collection of ultrasound waves for audio and video data in participating homes across multiple countries. We use highly advanced and confidential hardware and software to capture sound waves in different scenarios, such as the noise from vacuum cleaners, air conditioners, blenders, and different kinds of music or radio while participants perform common domestic actions like moving around their homes and cooking the meals.

An example involves our collection of ultrasound waves for audio and video data in participating homes across multiple countries, we use highly advanced and confidential hardware and software to capture soundwaves in different scenarios, such as the noise from vacuum cleaners air conditioners, blenders and different kinds of music or radio while part.

<unk> performed common domestic actions like moving around their homes and cooking a meal. This is a very fast paced project with many moving parts all managed by our team from the logistics sourcing and training efforts to setup and management of collection spaces, Onboarding and training of local teams data management and quality assurance.

Speaker 3: This is a very fast paced project with many moving parts, all managed by our team, from the logistics, sourcing, and training efforts to set up and management of collection spaces, onboarding and training of local teams, data management, and quality assurance.

Speaker 3: For each country and scope, our team successfully recruits and trains local teams, and once a project starts, nearly every collection session requires a new technical setup, as the type of home, device, and its positioning need to be carefully managed to achieve quality data collection of very specific background noises for the client database.

Or each country and scope our teams successfully recruited and trained local teams and once the project starts nearly every collection section requires a new technical setup as the type of home device and its positioning needs to be carefully managed to achieve quality data collection of very specific background noises for the client database.

Speaker 3: This is a project that requires extreme attention to detail to ensure we meet the client's requirements for collection and delivery of high quality data to help power our client's machine learning.

This is a project that requires extreme attention to detail to ensure we meet the clients' requirements for collection and delivery of high quality data to help power our clients' machine learning systems.

Speaker 3: For another client, one of the world's most popular video-focused social networking services, we transcribe and annotate short audio clips in multiple languages.

For another client one of the worlds most popular video focused social networking services, we transcribe and annotate short audio clips in multiple languages.

Speaker 3: The client uses our AI data as a critical input to train its transcription algorithms to improve the user experience on its network, to promote transparency and safety as it relates to the network's content, and to mitigate the risk of being banned in certain countries or regions due to content regulations that are continuously evolving.

Client using our AI data is a critical input to train its transcription algorithms to improve the user experience on its network to promote transparency and safety as it relates to the networks content and to mitigate the risk of being banned in certain countries or regions due to content regulations that are continuously evolving.

Speaker 3: While this client has several partners within its ecosystem, we're particularly proud of the fact that our team continues to set the bar for quality extremely high as we've consistently received feedback that we are this client's top performing partner for this program in terms of quality, productivity, and brand reputation management.

While this client has several partners within the ecosystem, we're particularly proud of the fact that our team continues to set the bar for quality extremely high as we've consistently received feedback that we are this clients top performing partner for this program in terms of quality productivity and brand reputation management.

Speaker 3: As the challenging pandemic environment persists, we continue to enable the vast majority of our team members to work remotely. At the end of 2021, approximately 75% of our global team members continue to work safely and productively from home.

As the challenging pandemic environment persists, we continue to enable the vast majority of our team members to work remotely at the end of 2021, approximately 75% of our global team members continued to work safely and productively from home.

Speaker 3: For many organizations, the pandemic brought to light the critical importance of building a supportive, resilient workplace with a focus on the wellness and safety of employees.

For many organizations the pandemic brought to light the critical importance of building a supportive resilient workplace with a focus on the wellness and safety of employees I'm very proud to say that at Telus International. This has always been top of mind since our inception over many years, we've developed a unique and thoughtful approach.

Speaker 3: I'm very proud to say that at Telus International, this has always been top of mind since our inception.

Speaker 3: Over many years we've developed a unique and thoughtful approach to prioritizing the well-being of our team members. Driven by our caring culture, we've benefited from a very early recognition of the nuanced requirements for success in some of the more complex services we choose to provide, particularly in areas such as content moderation.

The prioritizing the wellbeing of our team members driven by our carrying culture. We benefited from a very early recognition of the nuance to requirements for success in some of the more complex services, we choose to provide particularly in areas such as content moderation.

Speaker 3: Our unwavering commitment to our team's well-being is present in the numerous in-person and virtual programs and services we provide, as well as the amenities available in our sites, such as our fitness facilities and relaxation spaces, and the medical benefits that in many cases extend to our team members' families.

Our unwavering commitment to our team's wellbeing is present and the numerous in person and virtual programs and services, we provide as well as the amenities available in our sites such as our fitness facilities in relaxation spaces and the medical benefits that in many cases extend to our team members families. Our holistic approach to <unk>.

Speaker 3: Our holistic approach to health and well-being is guided by a global team of mental health and workplace wellness experts that include clinical psychologists and counselors who are employed full-time by our company.

And wellbeing is guided by our global team of mental health and workplace wellness experts that include clinical psychologists and counselors, who are employed full time by our company. These individuals are available for in person and virtual touch points to accommodate those working from home during the pandemic.

Speaker 3: These individuals are available for in-person and virtual touch points to accommodate those working from home during the pandemic.

Speaker 3: These health and wellness programs and services, among many others, are available to our over 62,000 team members around the world.

These health and wellness programs and services among many others are available to our over 62000 team members around the world.

Speaker 3: From our engineers to our customer experience specialists to our content moderators and beyond, we have support in place to help our team members remain healthy, safe, and able to thrive in the careers they choose at TI.

From our engineers to our customer experienced specialists to our content moderators and beyond we have support in place to help our team members remain healthy state.

And able to thrive in their careers they choose at Ti.

Speaker 3: We also continuously review and assess our well-being programs and evolve our approach. We recently appointed Dr. Lucy Ratry as Global Director of Workplace Well-being at TelePsychologists International. Dr. Ratry is a leading chartered psychologist, researcher and author, and she is a key contributor to ensuring telepcentralism continues to keep ahead of our commitment to team members and enables us to arm them with all the tools and support they need to remain successful in their critical role.

We also continuously review and assess our wellbeing programs and evolve our approach. We recently appointed Dr. Lucy Rabbitry as global director of workplace wellbeing of Telus International Dr. <unk> is a leading chartered psychologist researcher and author and she is a key contributor to ensuring Telus International continues to keep.

Ahead of our commitment to team members and enables us to arm them with all the tools and support they need to remain successful in their critical roles.

Speaker 3: To an annual employee survey conducted by Concentric, a third-party organization with decades of experience in employee engagement, our company's global score in 2021 was over 80%, marking the eighth consecutive year that we are ranked in the top quartile of all organizations of comparable size and global footprint.

So an annual employee survey conducted by concentric a third party organization with decades of experience and employee engagement, our company's global score in 2021 was over 80%, marking the eighth consecutive year that we are ranked in the top quartile of all organizations of comparable size and global footprint.

Speaker 3: We see the benefits of an engaged team shine through in the impressive results we've achieved to date despite the unprecedented conditions we've been operating within since early 2020. I believe this is due to many years of hard work building and fostering our caring culture.

We see the benefits of an engaged team shine through in the impressive results. We've achieved to date. Despite the unprecedented conditions. We've been operating within since early 2020 I believe this is due to many years of hard work building and fostering our carrying culture on that note I want to sincerely. Thank our team members.

Speaker 3: On that note, I want to sincerely thank our key members for their enduring commitment to our organization and for their contributions to get another highly successful year at Telecentrational for our customers and for our communities where we live, work and serve. Indeed, harnessing our team's minds, hearts and hands to make a difference on our planet's biggest challenges while partnering with clients who feel the same way is the basis of our environmental social governance.

For their enduring commitment to our organization and for their contributions to yet another highly successful year at Telus International for our customers and for our communities, where we live work and serve indeed harnessing our teams minds hearts in hand to make a difference on our planet's biggest challenges while partnering with <unk>.

To feel the same way as the basis of our environmental social governance approach.

Speaker 3: At this end, our four ESG priorities at Telus International are one, hiring, motivating, and promoting our diverse, talented team who exceed customer expectations. For example, currently 48% of TI's workforce are women, with women representing 44% of managers and above 38% of our senior management team and 30% of our board.

And our four ESG priorities at Telus International our one hiring motivating and promoting our diverse.

Wanted team, who exceed customer expectations. For example, currently 48% of Ti's workforce are women with women, representing 44% of managers and above.

38% of our senior management team and 30% of our board.

Speaker 3: Two, giving back to our communities by creating a meaningful, lasting impact through the efforts of our team members. In fact, since 2007, almost 225,000 TELUS International volunteers have impacted the lives of more than 250,000 people through TELUS International's corporate social responsibility effort.

To giving back to our community by creating a meaningful lasting impact through the efforts of our team members. In fact since 2007, almost 225000, Telus International volunteers and impacted the lives of more than 250000 people through Telus International's corporate social responsibility efforts.

Speaker 3: Three, supporting a sustainable planet for all, where we continue to see a decline in our company's greenhouse gas emissions and water consumption.

<unk> three supporting a sustainable planet for all where we continue to see a decline in our company's greenhouse gas emissions and water consumption and for adhering to principles of strong corporate governance, Telus International will continue to be driven by ESG priorities and principles and I look.

Speaker 3: four, adhering to principles of strong corporate governance.

Speaker 3: Telus International will continue to be driven by ESG priorities and principles and I look forward to progressing our holistic and strategic approach in this regard.

Forward to progressing our holistic and strategic approach in this regard.

Speaker 3: And lastly, through the remarkable efforts of our team, we also continue to be recognized by third party organizations, including just today, Tellus International was named a leader on global industry analyst firm, Nelson Hall's customer experience operations, Transformation Neat Report. The assessments evaluated each company's use of design thinking and the application of digital first principles and technologies among other capabilities to transform their clients' customer experience.

And lastly through the remarkable efforts of our team. We also continued to be recognized by third party organizations, including just today Telus International was named a leader on global industry Analyst firm Nelson Hall customer experience operations transformation neat report.

Assessment evaluated each company's use of design thinking and the application of digital first principles and technologies among other capabilities to transform their clients customer experience. Moreover in December Telus International was named a leader on IDC worldwide digital customer care services 2021 to 20.

Speaker 3: Moreover, in December , TELUS International was named a leader on IDC's Worldwide Digital Customer Care Services 2021 to 2022 Marketscape, again, external validation of our team's focus on and passion in delighting our clients. With that, I'll now pass the call over to our Chief Financial Officer, Vanessa Canu, to take you through our financial results, and then, as always, I'll be back on the line to answer your questions. Vanessa, over to you.

22 market scape again external validation of our team's focus on and passion in delighting our clients with that.

Now pass the call over to our Chief Financial Officer, Vanessa <unk> to take you through our financial results and then as always we'll be back on the line to answer your questions Vanessa over to you.

Speaker 4: Thank you, Jeff, and good morning, everyone. Thank you for joining us today.

Thank you, Jeff and good morning, everyone. Thank you for joining us today.

Speaker 4: As Jason mentioned at the start of the call, some of the items that will review this morning are non-gap mission.

As Jason mentioned at the start of the call. Some of the items that will give you. This morning are non-GAAP measures such.

Speaker 4: For descriptions and a reconciliation of our gap to non- GAAP measures , please see our earnings release from earlier this morning.

Our description and a reconciliation of our GAAP to non-GAAP measures. Please see our earnings release from earlier this morning.

Speaker 4: To echo what Jeff said, 2021 was indeed a great year for Tele-Francestional with revenue growth of 39% for the full year, reflecting strong contributions from organic business growth and that position.

So echo what Jeff said 2021 was indeed, a great year for Telus International with revenue growth of 39% for the full year, reflecting strong contributions from organic business growth and acquisition.

Speaker 4: Adjusted EBITDA increased 38% and adjusted deleted earnings per share increased 41% year-over-year.

Adjusted EBITDA increased 38% and adjusted diluted earnings per share increased 41% year over year.

Speaker 4: These robust, double-visit growth rates are towards the high end of our previously raised outlook and demonstrates consistent execution on our growth strategy.

He is robust double digit growth rate towards the high end of our previously raised outlook and demonstrates consistent execution on our growth strategy.

Speaker 4: This was in spite of you were related for an exchange headwinds in the second half of the year and in Q4 in particular. Headwinds that were not a team in our original office.

This was in spite of your related foreign exchange headwinds in the second half of the year and in Q4 in particular headwinds that were not assumed in our original outlook.

Speaker 4: Let me now expand upon some components of our financial performance in the fourth quarter and full year.

Let me now expand up on some components of our financial performance in the fourth quarter and full year.

Speaker 4: Gravities for Q4 were $600 million, up 36% year-over-year.

Revenues for Q4 were $600 million up 36% year over year.

Speaker 4: Our organic revenue grows 15% or 17% in constant currency. Our Q4 results included foreign exchange headwind of approximately 2% when compared to the same periods in the prior year driven by the euro to US dollar exchange.

Our organic revenue growth of about 15% or 17% in constant currency as our Q4 results include a foreign exchange headwind of approximately 2% when compared to the same period in the prior year driven by the Euro to U S dollar exchange rate.

Speaker 4: This strong organic growth reflects increasing demand for our services provided to new and existing clients alike.

This strong organic growth reflects increasing demand for our services provided to new and existing clients alike.

Speaker 4: Prior acquisitions contributed revenue growth of 21 percent year over year and related to our acquisition of what is now called Telus International AI data.

Prior acquisitions contributed revenue growth of 21% year over year and related to our acquisition of what is now called Pella International AI data solutions.

Speaker 4: On a full-year basis, we delivered a record $2.2 billion in revenue, reflecting growth of 39%, as I mentioned earlier. With organic revenue growth of $268 million, or 17%, we have executed on our strategic goal of targeting sustainable organic revenue growth in the mid-to-high 2000s.

On a full year basis, we delivered a record $2 2 billion in revenue, reflecting growth of 39% as I mentioned earlier with organic revenue growth of $268 million or 17%.

You see that in our strategic goal of targeting sustainable organic revenue growth in the mid to high teens.

Speaker 4: On a full-year basis, the annual organic growth included a favorable foreign exchange in passive approximately 2%.

On a full year basis, the annual organic growth included a favorable foreign exchange impact of approximately 2%.

Speaker 4: Looking at revenues by geography in the fourth quarter, revenues grew 49% over year in North America, 29% in Europe , 25% in Asia Pacific, and 12% in Central America.

Looking at revenues by geography in the fourth quarter revenue grew 49% year over year in North America, 39% and Europe , 35% in Asia Pacific and 12% in Central America.

Speaker 4: For the full year, we achieved revenue growth of 45% in each of North America and Europe , with Asia-Pacific coming in at 35%, while Central America grew at 20%. Again, these are solid results correlated with the increase in client demand for our end-to-end digital solutions.

For the full year, we achieved revenue growth of 45% in each of North America, and Europe with Asia Pacific coming in at 35%, while Central America grew at 20%.

Again these are solid results correlated with the increase in client demand for our end to end digital solution.

Speaker 4: From an industry verticals perspective, we once again saw growth across all key verticals in both the fourth quarter and for the full year.

From an industry vertical perspective, we once again saw growth across all key verticals in both the fourth quarter and for the full year.

Speaker 4: Our largest vertical, Tech and Games, grew 62% year-over-year in the quarter and also in the full year.

Our largest vertical second game grew 62% year over year in the quarter and also in the full year.

Speaker 4: with tele-international AI data solutions as a key driver of growth in this protocol.

With Telus International.

The key driver of growth in this vertical.

Speaker 4: We continue to see strong momentum in the e-commerce and FinTech vertical with revenues up 49% year-over-year in the quarter and 51% on a full-year basis, driven again by strong demand for digital transformation and next-gen solutions in customer experience.

We continue to see strong momentum in the E. Commerce, I think that vertical with revenues up 49% year over year in the quarter and 61% on a full year basis, driven again by strong demand for digital transformation and next Gen solutions and customer experience.

Speaker 4: Finally, our communications and media verticals showed healthy growth of 9% for the quarter and 12% for the full year, while all other verticals, including travel and hospitality and healthcare, similarly posted strong double-digit growth year-over-year.

Finally, our communications and media vertical showed healthy growth of 9% for the quarter and 12% for the full year, while all other verticals, including travel and hospitality and.

In healthcare similarly posted strong double digit growth year over year.

Speaker 4: Looking across our verticals, we increased exposure to the higher growth tech and gain and decommars and FinTech clients, which collectively contribute at 58% of total revenue in 2021, compared with 50% in the prior year.

Looking across our vertical we increased exposure to the higher growth second game and E Commerce, and Fintech clients, which collectively contributed 58% of total revenue in 2021 compared with 50% in the prior year.

Speaker 4: So we have not only meaning for the extended revenue base, but our growth is more skewed to high growth digital native clients.

So we have not only meaningfully expanded our revenue base, but our growth is more skewed so high growth digital native clients.

Moving on to operating expenses.

Speaker 4: Salaries and benefits expense in the fourth quarter was $332 million, up 28% due to the growth in our customer facing team member base to support increased client demand and higher average employee salaries.

Salaries and benefits expense in the fourth quarter with $372 million up 28% due to the growth in our customer facing team member base to support increased client demand and higher average employee salaries and wages.

Speaker 4: For the full year, salaries and benefits increased 29% to $1.22 billion with the same drivers as for the quarter.

For the full year salaries and benefits increased 29% to $1 2 billion with the same drivers as for the corner.

Speaker 4: Our goods and services purchased were $125 million in the quarter, an increase of $70 million over the same period last year.

Our goods and services purchased 125 million in the quarter, an increase of $70 million over the same period last year.

Speaker 4: For the full year, goods and services purchased were $432 million, an increase of $188 million from the prior year. This increase was largely driven by our acquisition, in particular, TIAI's crowdsource contractors, which are recognizing goods and services purchased.

For the full year goods and services purchased were $432 million, an increase of $188 million from the prior year.

This increase was largely driven by our acquisition in particular, TIAA crowdsource contractors, which are recognizing goods and services purchased.

Speaker 4: and higher software recruitment and other administrative costs to support the growth in our business.

And higher software recruitment and other administrative costs to support the growth in our business.

Speaker 4: Share-based compensation expense in the fourth quarter was $9 million compared to $12 million in the prior year. On a full year basis, share-based compensation expense was $75 million compared to $29 million in the prior year.

Share based compensation expense in the fourth quarter was $9 million compared to 12 million in the prior year on a full year basis share based compensation expense was $75 million compared to $29 million in the prior year.

Speaker 4: The increase on a folder basis was due to the best thing of share-based compensation awards and market adjustment on historical cash-staddled awards through the increase in the share.

The increase.

On a full year basis was due to the vesting of share based compensation awards and Mark to market adjustment on historical cash settled awards due to the increase in the share.

Speaker 4: Acquisition, integration, and other charges for the fourth quarter were $5 million, a decrease of 80 percent from the same quarter a year ago, primarily due to transaction costs incurred in the Lionbridge AI acquisition in the fourth quarter of 2020.

Acquisition integration and other charges for the fourth quarter and were $5 million a decrease of 30% from the same quarter a year ago, primarily due to transaction cost encouraging the language and acquisition in the fourth quarter of 2020.

Speaker 4: For the full year acquisition, integration and other charges declined by 61% to 23 million, primarily due to lower costs for integration in 2021, compared with the transaction and integration cost incurred the prior year related to the acquisitions of CCC and LandBJI.

For the full year acquisition integration and other charges declined by 61% to $23 million, primarily due to lower costs for integration in 2021, compared with the transaction and integration cost incurred in the prior year related to the acquisition of CCC.

And language AI.

Speaker 4: This decrease was partially offset by cost associated with the secondary offering of our subordinate boarding shares in the third quarter of 2021.

This decrease was partially offset by cost associated with a secondary offering of our subordinate voting shares in the third quarter of 2021.

Speaker 4: Looking at interest expense, in the fourth quarter, our interest expense was $8 million, a decline of 27% year over year. And for the full year, interest expense was $44 million, a decline of 4% from the prior year, due primarily to our lower debt balance and lower interest rates triggered by our improved net debt to adjusted EBITDA leverage ratio throughout the year.

Looking at interest expense in the fourth quarter, our interest expense was $8 million a decline of 27% year over year and for the full year interest expense was $24 million a decline of 4% from the prior year due primarily to our lower debt balance and lower interest rates triggered by our improved net debt to adjusted EBITDA leverage ratio throughout the year.

Speaker 4: Income tax expense in the fourth quarter was $21,062,000 higher compared with the same quarter last year.

Income tax expense in the fourth quarter was 21 million, 62% higher compared with the same quarter last year.

Speaker 4: our receptive tax rates decreased from 38.2% to 36.8% primarily due to a decrease in non-deductible items that were incurred in the quarter.

Our effective tax rate decreased from 38, 2% to 36, 8% primarily due to a decrease in non deductible items that were incurred in the quarter.

Speaker 4: On a full year basis, our effective tax rate increased from 31.6 percent to 45.1 percent, primarily due to an increase in withholding and other taxes and an increase in non-deductible items.

On a full year basis, our effective tax rate increased from 31, 6% to 45, 1% primarily due to an increase in withholding and other taxes and an increase in nondeductible items.

Speaker 4: A portion of the non-deductible items were results of our IPO earlier in 2021, and we expect them to be non-recurring.

A portion of the non deductible items were a result of our IPO earlier in 2021, and we expect them to be nonrecurring.

Speaker 4: The change in income mix amongst different jurisdictions resulted in a lower weighted average statutory income tax rate for the year.

The change in income mix amongst different jurisdictions resulted in a lower weighted average statutory income tax rate for the year.

Speaker 4: As a reminder, our ETR, which is income tax expense as a percentage of accounting net income before tax, can vary period over period due to factors including but not limited to the jurisdiction mix of our earnings in any given period and the tax deductibility of certain expenditure items.

As a reminder, our ETR, which is income tax expense as a percentage of accounting net income before taxes can vary period over period due to due to factors, including but not limited to the jurisdictional mix of our earnings in any given period and the tax deductibility of certain expenditure items.

Speaker 4: Moving on to profitability, in Q4 our adjusted EBITDA was $143 million at the top end of our guidance range and up 12% from a tough compare in the same quarter in the prior year.

Moving on to profitability.

In Q4, our adjusted EBITDA was $143 million at the top end of our guidance range and up 12% from a tough compare in the same quarter in the prior year.

Speaker 4: On a full-year basis, adjusted EBITDA was 540 million up 38%.

On a full year basis, adjusted EBITDA was $540 million upward to 8%.

Speaker 4: Our full year adjustment EBITDA margin of 24.6% was in line with our year, reflecting our consistent profitable revenue growth, strategic business mix shift, and ongoing technology driven efficiency gain.

Our full year adjusted EBITDA margin of 24, 6% was in line with the prior year, reflecting our consistent profitable revenue growth strategic business mix shift and ongoing technology driven efficiency gain.

Speaker 4: Adjusted net income for the quarter was $75 million, up 14%.

Adjusted net income for the quarter was $75 million up 14%.

Speaker 4: On a per share basis, this translated into adjusted deleted earnings per share for the quarter of 28 cents, which was consistent with the prior year.

On a per share basis. This translated into adjusted diluted earnings per share for the quarter of 28, which was.

<unk> for the prior year.

Speaker 4: For the full year, we achieved adjusted net income of $267 million, an increase of 67% year-over-year, and adjusted their leader earnings per share of $1, reflecting growth of 41% from the prior year.

For the full year, we achieved adjusted net income of $267 million, an increase of 67% year over year and adjusted diluted earnings per share of $1, reflecting growth of 41% from the prior year.

Turning over to the balance sheet.

Speaker 4: We closed the year with a very healthy balance, ample liquidity and improved levels.

We closed the year with a very healthy balance sheet ample liquidity and improved leverage.

Speaker 4: Tax and tax equivalents were 115 million as of December 31st, 2021.

Cash and cash equivalents were 115 million as at December 31st 2021.

Speaker 4: our total available liquidity grew to approximately $831 million, meaningfully higher than the $285 million at the prior year end.

Our total available liquidity grew to approximately $831 million meaningfully higher than the 285 million at prior year end.

Speaker 4: This also includes available capacity under our revolving credit facilities of $716 million.

This also includes available capacity under our revolving credit facility of $716 million.

Speaker 4: We continue to maintain meaningful capacity for potential strategic acquisitions at the appropriate time.

We continue to maintain meaningful capacity for potential strategic acquisition at the appropriate time.

Speaker 4: In the fourth quarter, we continue to reduce our leverage, reducing our net debt to adjusted evident leverage ratio as we find for our credit agreement to 2.1. In the fourth quarter, we continue to reduce our net debt to adjusted evident leverage ratio as we find for our credit agreement to 2.1.

In the fourth quarter, we continued to reduce our leverage reducing our net debt to adjusted EBITDA leverage ratio as defined by our credit agreements to two one.

Speaker 4: and improvements from 2.2 F last quarter and a meaningful improvements from December of last year when we were approximately four times after the acquisition of Landbridge AI.

An improvement from two <unk> last quarter and a meaningful improvement from December of last year. When we were approximately four times after the acquisition of language AI.

Speaker 4: As an ongoing reminder, we view the 2 to 3x zone as a good steady-state amount of leverage. And we do have the flexibility to go beyond this range for the right type of acquisition.

As an ongoing reminder, we view the two to three extra on at a good steady state amount of leverage and we do have the ability to go beyond this range for the right type of acquisition.

Speaker 4: Our free cash flow in Q4 was $29 million compared to $70 million in the same quarter last year. And for the full year, free cash flow was $181 million, 4% lower than the prior year, given by a few factors.

Our free cash flow in Q4 was $29 million compared to $70 million in the same quarter last year and for the full year free cash flow was 181 million, 12% lower than the prior year driven by a few factors.

Speaker 4: first higher income tax payments in the quarter and in the year.

First higher income tax payments in the quarter ending the year.

Speaker 4: along with higher share base compensation payments from our historically granted cash settled equity award.

Along with higher stock based compensation payments from our historically granted cash settled equity awards as are we.

Speaker 4: As a reminder, all of our new awards granted in 2021 and beyond are equity settled and will not impact cash.

Reminder, all of our New awards granted in 2021 and beyond our equity settled and will not impact cash flow.

Speaker 4: There were also higher outflows from working capital driven mainly by the increase in receivables that was tied to revenue.

There were also higher outflows from working capital driven mainly by the increase in receivables that was tied to revenue growth.

Speaker 4: Finally, capital expenditures also increased in the form of IT investments and site expansions in North and Central America, including our first site outside of Metro Manila in the Philippines to support continuing business growth.

Finally capital expenditures also increased in the form of IC investment and site expansion in North and Central America, including our per site outside of Metro Manila in the Philippines support continuing business growth.

Now turning to our team members.

Speaker 4: In the fourth quarter, we added over 3,600 net new team members to our Telus International family.

In the fourth quarter, we added over 3600 net new team members to our Telus International family.

Speaker 4: The current live-up market is indeed more challenging than in 2020. But despite this complexity in 2021 as a whole, we added nearly 12,000 net new team members, an increase of 23% year over year, bringing our global talents to team to over 62,000 strong, supporting our business growth and client-rounds across key segments and geographies.

The current labor market isn't even more challenging than in 2020, but despite this complexity in 2021 at the hole. We added nearly 12000 net new team members, an increase of 23% year over year.

Bringing our global talent to the team took over 62000 strong supporting our business growth and client ramp across key segments and geography.

Speaker 4: As you've heard Jeff say, we take pride in our continuing top quartile engagement scores and our differentiated caring culture clearly enables us to attract and retain high quality global talent.

As the projects that we take pride in our continuing top quartile engagement scores and our differentiator caring culture clearly enables us.

Attract and retain high quality global talent.

Now onto our outlook.

Speaker 4: 2022 we have expected to continue growing at solid double digit rates for both revenue and profitability.

Our 2022, we expect to continue growing at solid double digit rates for both revenue and profitability.

Speaker 4: For the full year, we have such revenues in the range of 2.55 to 2.60 billion, reflecting an increase in the range of 16.2% to 18.5% on a reported basis, and 18 to 20% on a constant current debate.

For the full year, we expect revenues in the range of two to $2 55 to $2 61 billion, reflecting an increase in the range of 16, 2% to 85% on a reported basis and 18%, 20% on a constant currency basis.

Speaker 4: This assumes that the Euro in which over one third of our revenues are derived remains at an average exchange rate of $1.13 for the US dollar.

This assumes that the euro in which over one third of our revenues are derived remains at an average exchange rate of $1 13 to the U S dollar.

Speaker 4: For reference, the average exchange rate for the Euro to US dollar in 2021 was a dollar.

For reference the average exchange rate for the Euro to U S. Dollar in 2021 was $1 18.

Speaker 4: Also note that consistent with previous practice, our guidance does not include the potential impact of material M&A.

Also note that consistent with previous practice our guidance does not include the potential impact of material M&A.

Speaker 4: We anticipate adjusted EBITDA margin to be approximately 24%, reflecting planned wage increases and continued investment in sales, marketing, and product development to support our organic growth.

We anticipate adjusted EBITDA margins to be approximately 24%, reflecting planned wage increases and continued investments in sales marketing and product development to support our organic growth.

Speaker 4: We expect to deliver adjusted deleted earnings per share in the range of $1.18 to $1.23, which reflects growth of 18% to 23% over last year.

We expect to deliver adjusted diluted earnings per share in the range of $1 18 to $1 23, which reflects growth of 18% to 23% over last year.

Speaker 4: to assume the weighted average deleted share pounds of approximately 270 million in each of the quarters.

Assumes a weighted average diluted share count of approximately $270 million in each of the quarters.

Speaker 4: While we do not provide quarterly guidance from a seasonality perspective, we expect revenue seasonality of 47% in the first half and 53% in the second half.

While we do not provide quarterly guidance from a seasonality perspective, we expect revenue seasonality up 47% in the first half and 53% in the second half.

Speaker 4: A reminder that Q1 is typically our lowest seasonal revenue and adjusted in the quarter, with volume rounds throughout the year.

A reminder, that Q1 is typically our lowest seasonal revenue and adjusted ended the quarter with volume ramp throughout the year.

Speaker 4: From a cost perspective, unlike in 2021, where our wage increases largely took effect in July , this year in response to the current labor market dynamics, our annual wage increases are planned to come into effect earlier in the first half of 2020.

From a cost perspective, unlike in 2021, where our wage increases largely took effect in July this year in response to the current labor market dynamic our annual wage increases our plans to come into effect earlier in the first half of 2022.

Speaker 4: Given the typical revenue seasonality with stronger revenue than the second half coupled with planned investment in our team members and in our business early in the year, we expect adjusted EBITDA margins to be lower in the first half building up through the second half with a full year average margin of approximately 24% as I just indicated.

Given the typical seasonality with stronger revenues in the second half coupled with planned investments in our team members and in our business early in the year, we expect adjusted EBITDA margins to be lower in the first half building up through the second half with a full year average margin of approximately 24% as I just indicated.

Speaker 4: As we enter 2022, we look forward to building upon a strong operational foundation established in 2021 and long before, and capitalizing on the momentum that we continue to see throughout the business.

As we enter 2022, we look forward to building upon our strong operational foundation established in 2021 and long before and capitalizing on the momentum that we continue to see throughout the business.

Speaker 4: We pride ourselves on delivering on our commitments and look forward to another exciting year of growth for TELUS International. With that, we will.

We pride ourselves in delivering on our commitments and look forward to another exciting year of growth for Telus International.

With that we will now open the lines for questions.

Speaker 4: As usual, I would kindly ask you to please keep it to one question at a time so that everyone can participate. Jonathan, over to you.

As usual I would kindly ask you to please keep it to one question at a time, so that everyone can participate Jonathan over to you.

Speaker 6: Thank you, Ms. Canoe. If you would like to ask a question at this time, please press star then one. And once again, we kindly ask the you-limitier questions to one at a time. And get back in the queue if you'd like to ask another question.

Thank you Mr <unk>.

If you would like to ask a question at this time. Please press Star then one and once again, we kindly ask that you limit your questions to one at a time and get back in the queue, if you'd like to ask another question.

Speaker 6: We will pause one moment while we compile the queue. Our first question comes in the line of policy from Scotia Capital. Your question, please.

We will pause one moment, while we compile the Q.

Our first question comes from the line of policy from Scotia Capital. Your question. Please.

Speaker 5: Great morning. Jeff, could you talk a little bit about how the mix of bookings flowed in in terms of the build to other areas of the business like build and design and how you've seen maybe those projects sort of roll over and to deliver and then I've got one quick clarification for Vanessa. Thank you. Thanks for the question.

Great. Good morning, Jeff could you talk a little bit about how the mix of bookings flowed in in terms of the build to other areas of the business build and design and how you've seen maybe those projects sort of roll over and to deliver and then I've got one quick clarification for Vanessa. Thank you.

Thanks for the question Paul Nice to hear your voice.

Speaker 3: You know, I think what we saw through the fourth quarter and what we're anticipating through 2022 is really a continuation of what we saw through the latter half of 2020 and most of 2021.

I think what we saw through the fourth quarter and what we're anticipating through 2022 is really a continuation of what we saw through the latter half of 2020 and most of 2021, I think a combination of sort of macro dynamics in the marketplace more broadly where folks continue to recognize the critical importance.

Speaker 3: I think a combination of the macro dynamics in the marketplace more broadly where folks continue to recognize the critical importance of enabling a virtual

So enabling a virtual relationship with their end users is driving more adoption around automation and that in conjunction with our Telus International's expanding capability set.

Speaker 3: relationship with their end users is driving more adoption around automation. And that, in conjunction with our TELUS International's expanding capability set,

Speaker 3: and more awareness of our extensive capabilities and the quality of that capability is creating more opportunity for TI to be invited in, not just as sort of the traditional,

And more awareness of our.

Extensive capabilities and the quality of that capability is.

Creating more opportunity for Ti to be invited in not just the sort of the traditional.

Speaker 3: deliver element of our framework, but indeed more design and more build opportunity.

Deliver elements of our framework, but indeed more design and more build opportunities candidly I wish it were.

Speaker 3: candidly, I wish we got even more of them. And we continue to invest meaningfully in our direct sales channel and in marketing efforts. And then continuing, of course, to rely on word of mouth, to surface more and more of those design and build opportunities. One of the nice current dynamics we're seeing is more and more comprehensive engagements so

We got even more of them and we continue to invest meaningfully in our direct sales channel and marketing efforts.

Then continuing of course to rely on word of mouth to surface more and more of those design and build opportunities one of the nice.

Current dynamics, we're seeing is more and more more comprehensive engagements, where although we may have started in that deliver dynamic with an existing customer. They are now coming to us more frequently than before for design <unk> build in connection with their own evolution of their environments again.

Speaker 3: Although we may have started in that deliver dynamic with an existing customer, they are now coming to us more frequently than before for design and or build in connection with their own evolution of their environments. Again, I think a consequence of their recognition of the need to do so and their recognition of TI's ability to be successful in enabling them in that regard. So I'm expecting more and more of that prospectively and we're going to continue to build our capability to ensure that we can continue to take share in that regard.

A consequence of their recognition of the need to do so and their recognition of <unk> ability to be successful in enabling them in that regard, so I'm expecting more and more of that prospectively and we're going to continue to build our capability to ensure that we can continue to take share in that regard.

Speaker 5: Great. A quick clarification, Vanessa, just the assumption baked into the guidance, can you just clarify how you're thinking about, we'll just call it net headcount growth into the current or upcoming fiscal year relative to last year? Should we be thinking sort of a similar pace as sort of what's baked into the implied guide? Thank you.

Great quick clarification, Vanessa just the assumption baked into the guidance can you just clarify how you're thinking about.

Net head count growth into current or the upcoming fiscal year relative to last year should we be thinking sort of a similar pace of sort of what's baked into the implied guide. Thank you.

Speaker 4: Thanks, Paul. So we don't guide on headcount numbers, obviously, but I do think that directionally, you're right. We expect to see a similar pace as we saw in 2021. Even though we have had, obviously, macro-wide supply challenges, we've done a really good job through 2021, adding to our team member count, and we certainly expect to continue to do so, prospectively, to 2022. So I think you should expect a similar pace.

Thanks, Paul So we don't guide on on head count numbers, obviously, but I do think that Directionally you're right.

We expect to see a similar pace as.

As we saw in 2021.

Even though we have had obviously macro wide supply challenges we've done a really good job through 2021, adding to our team member counts and we certainly expect to continue to continue to do so.

It could be into 2022, so I think you should expect a similar pace.

Speaker 4: And perhaps even slightly more accelerated, as you may have noted, our constant currency revenue growth is also accelerated from 2021. We were about 15% constant currency organic growth in 2021. Our guide is implying 18 to 20% constant currency growth in 2021. So I think you should expect that piece to factor into your thoughts there as well.

And perhaps even slightly more accelerated as you may have noted our constant currency revenue growth has also accelerated.

From 2021 were about 15% constant currency organic growth in 2021, our guide is implying 18% to 20% constant currency growth in 2021. So I think you should expect that piece to them.

Factor into your thoughts there as well.

Thank you.

Speaker 6: Thank you. Our next question comes from the line of Dan Perlin from RBC. Your question please.

Thank you. Our next question comes from the line of Dan Perlin from RBC. Your question. Please.

Yes, good morning.

Speaker 1: Yes, it's actually Matt Roswell putting in for Dan. Following up on that sort of headcount question, are you willing to discuss sort of how much pressure, wage costs, and hiring is having on the EBITDA margin in 22? And somewhat related to that, you mentioned that you're also investing in the sales force and the sales pipeline. That sounded strong. So again, how much sort of incremental investment are you thinking about for 22? And what sort of win rates are you seeing?

Sure.

Yes, it's actually Matt Roswell sitting in for Dan.

We have one that sort of head count growth question are you going to discuss sort of how much pressure wage costs and hiring is is having on the EBITA margin in 'twenty two.

And somewhat related to that you mentioned that you are also investing in the sales force.

That sounded strong so again, how much sort of incremental investment are you thinking about for 'twenty two.

Win rates are you seeing.

Speaker 3: Thanks for the question, Matt. Please give Dan our regards.

Thanks for the question Matt.

Dan our regards.

Speaker 3: I don't know how much I can offer you other than, and I'll invite Vanessa to top up, as you've heard both we discussed on previous earnings calls late last year and candidly the market more broadly, I think we're all trying to find a way to navigate this interesting labour dynamic. Interesting in the sense that

I don't know how much.

I can offer you other than and I'll invite Vanessa to top up.

As you heard both we discussed on previous earnings calls late last year and candidly the market more broadly I think we're all trying to find a way to navigate this.

Interesting labor dynamic.

Interesting in the sense that.

Speaker 3: It has always been a challenge to attract, retain, engage, and inspire one's fair share of talent.

It has always been a challenge to attract retain and engage and inspire ones fair share of talent, but I think admittedly in this post pandemic or near hopefully post pandemic world the great resignation as some people are referring to it.

Speaker 3: But I think admittedly in this post pandemic or near, hopefully post pandemic world, you know, the great resignation of some people referring to it. Folks are seeing a slight evolution, a change in the relative negotiating leverage between employees and employers. And you know, one needs to be sensitive to that. We've seen a little bit of pressure, obviously, reflected in our results here. But.

Folks are seeing a slight evolution or change in the relative negotiating leverage between employees and employers.

One needs to be sensitive to that we've seen a little bit of pressure, obviously reflected in our results here.

Speaker 3: We think, as I said in my earlier remarks, that our investment in creating a destination for talent that is not merely providing them with employment opportunities but career opportunities has inoculated us to a large extent from some of the challenges around attrition and wage inflation, but not entirely. So I think what you're seeing reflected in our fourth quarter results and captured in our guidance for 2022 is a belief that that dynamic will persist.

But we.

We think as I said in my earlier remarks that our investments in creating a destination for talent that is not merely providing them with employment opportunities but career opportunities.

Inoculated us to a large extent from some of the challenges around attrition.

And wage inflation, but not entirely.

So I think what youre seeing reflected in our fourth quarter results and captured in our guidance for 2022 is a belief that that dynamic will persist certainly for the first half of 2022 and I guess right now it's anybody's guess at what point that pendulum, perhaps swings back.

Speaker 3: certainly for the first half of 2022. And I guess right now, it's anybody's guess at what point that pendulum perhaps swings back, such that

Speaker 3: perhaps driven off of the decline or extinguishment of government subsidies or otherwise, labour sort of settled into the new normal. We find out what return to office may or may not look like in terms of proportions.

Such that perhaps driven off of the decline or extinguishment of government subsidies or otherwise.

Labor sort of settled into the new normal.

We find out what return to office may or May not look like in terms of proportions.

Speaker 3: how many people just are not willing to come back into a traditional office setting and expectations around wages, working from their home and avoiding, you know, commutes, etc.

Many people just are not willing to come back into a traditional office setting expectations around wages working from their home and avoiding.

Speaker 3: Net-net, we think we've done historically a very good job, certainly better than most in terms of continuing to mitigate the inflationary dynamics of wage inflation, as well as the challenges associated with elevated attrition levels, given the impact on not just the cost to re-recruit, re-train, and wait for those new team members to get to proficiency and higher levels of productivity and profitability, but also the ongoing challenges of keeping team members engaged and wanting to be part of growing their careers with the business.

Commutes et cetera.

Net net we think we have done historically, a very good job certainly better than most in terms of continuing to mitigate the inflationary dynamics of wage inflation as well as the challenges associated with elevated attrition levels given the impact on just the cost to re recruit retrain and.

Wait for those new team members to get to proficiency and higher levels of productivity and profitability, but also the ongoing.

Challenges of keeping team members engaged in the wanting to be part of sort of growing their careers with the business.

Speaker 3: We'll see how it goes through the balance of the year, but I think we're doing reasonably well there.

We'll see how it goes through the balance of the year, but I think we're doing reasonably well there.

Speaker 4: I think the only thing I would pop up to that, Jeff, is just as a reminder, I think we can also acknowledge that our adjusted EBITDA margin

I think the only thing I would point to that objective.

Just as a reminder, I think we can also acknowledge that our adjusted EBITDA margin today and also our guide of approximately 24% is already amongst the highest in our industry.

Speaker 4: Today, and also our guide of, you know, approximately 24% is already amongst the highest in our industry.

Speaker 4: So I think we can acknowledge that we do have some headroom there relative to many, and that's a just point. Our outlook for margin assumes that some of these sort of macro supply-side constraints continue at least into the first half of 2022.

So I think we can acknowledge that we do have some headroom there relative to many.

And to Jeff's point, our outlook for margin it seems that some of the sort of macro supply side constraints continue at least into the first half of 2022.

Speaker 4: But to address your other question there, we are continuing to invest in organic growth through sales and marketing. We've talked quite a bit about that during 2021. We actually do think that we're seeing the payoffs in terms of an increase in the constant currency organic growth rates. And we will continue making those investments through 2022 and that's been based into our guide as well.

But to address your other question. There we are continuing to invest in organic growth through sales and marketing we've talked quite a bit about that during 2021, we actually do think that we're seeing the payoff in terms of.

And increasingly in the constant currency organic growth rate and we will continue making those investments took 2022 and thats been baked into our guide as well.

Okay. Thank you very much.

Speaker 6: Thank you. Our next question comes from Align Out. P.N. Sins Young from JP Morgan. Your question, please.

Thank you. Our next question comes from the line of Tien Tsin Huang from Jpmorgan. Your question. Please.

Speaker 7: Thank you. Thank you. Good morning. I want to ask just on the revenue growth outlook. It is higher than what you did in 21 here like you just mentioned Vanessa earlier. So what's what's what's driving the acceleration? Is it more You know coming from existing or is it from the back book? That's the backlog was converting and I'm curious about just visibility in general. How does it stand today versus? Same time last year. Thanks Thanks

Thank you. Thank you good morning, I wanted to ask just on the revenue growth outlook. It is higher than what you did in 'twenty. One here like you just mentioned, but thats earlier so.

What's driving the acceleration is it more.

Yes.

Coming from existing or is it from the back book backlog, that's converting and I'm curious about just visibility in general how does it stand today versus.

Same time last year. Thanks.

Speaker 3: I guess it's from a number of sources. As we shared in prior calls, we signed a number of large marquee engagement that are now starting to hit their stride. And even more recently in Q4s, I just alluded to in my prepare remarks, even more so, both net new as well as growth to existing. So...

Thanks, Tien tsin.

I guess, it's from a number of sources as we shared in prior calls we've signed a number of large mark key engagements that are now starting to hit their stride and <unk>.

Even more recently in Q4 as I just alluded to in my prepared remarks, even more so both net new as well as growth to existing so.

Speaker 3: Now, I think we feel rather fortunate that things are now sort of firing on all cylinders, a combination of those investments.

I think we feel rather fortunate that things are now sort of firing on all cylinders a combination of those investments.

Speaker 3: late in 2020, early in 2021 on the sales and marketing front and materializing in newer, bigger engagements, net new, as well as growth to existing.

Late in 2020 early in 2021 on the sales and marketing front that materializing in newer big.

Bigger engagements net new as well as growth to existing.

Speaker 3: So our optimism, our confidence is fueled by that. And given the nature of these engagements, we have some meaningful visibility through the balance of 2022, and indeed beyond that as well. And then as again, I mentioned earlier, I think the macroeconomic environment where businesses across the entire landscape continue to recognize the criticality of they themselves embracing technology-driven solutions to give them the ability to.

So our optimism our confidence is fueled by that and given the nature of these engagements we have some some meaningful visibility through the balance of 2022, and indeed beyond that as well and then as again I mentioned earlier, I think the macroeconomic environment where businesses across the entire landscape.

To recognize the criticality of data themselves embracing technology, driven solutions to give them the ability to differentiate against their peers continue to serve their clients.

Speaker 3: Differentiate against their peers, continue to serve their clients in an online, automated enabled fashion in order to stay ahead. I just think right now, this sort of a confluence of events for us that is giving us a high degree of confidence and our ability to deliver against this accelerated revenue growth profile. You know, it feels a bit...

In an online automated enabled fashion in order to stay ahead.

I just think right now there's sort of a confluence of events for us that is giving us a high degree of confidence in our ability to deliver against this accelerated.

Revenue growth profile.

Speaker 3: candidly frustrating sometimes, when we're criticized on occasion, like after our third quarter results, where our revenue miss is nominal, I think ostensibly because of foreign exchange headwinds, but we do well on EBITDA and outperform. And then when we put up the inverse where we're pretty much right down the fairway on EBITDA and we're

It feels a bit candy.

Candidly frustrating, sometimes tien tsin win.

We're criticized on occasion like after our third quarter results.

Where our revenue Miss is nominal I think ostensibly because of.

Foreign exchange headwinds, but we do well on EBITDA and outperform and then when we put up the inverse where we're pretty much right down the fairway on EBITDA and we're anticipating pretty significant acceleration on revenue growth and yet now we're being.

Speaker 3: anticipating pretty significant acceleration on revenue growth, and yet now we're being not quite as well recognized for fulfilling the audience's expectations. It's a bit of a thankless task, candidly, but I think where we are is in the right space.

Not quite as well recognized for sort of fulfilling the.

The audience's expectations with a bit of a thankless task candidly, but I think where we are in the right in the right space.

Great.

Thanks.

Thanks, Tien tsin.

Speaker 6: Thank you. Our next question comes from the line of Magnoan from William Blair. Your question, please.

Thank you. Our next question comes from the line of Maggie Nolan from William Blair. Your question. Please.

Speaker 8: Hey, this is Ted on from Maggie. Thanks for taking our question. So it looks like North America and Europe grew nicely quarter over quarter. Could you provide color regarding what drove that growth? Was there a particular service line that picked up in those delivery geographies?

Hey, this is Ted on for Maggie Thanks for taking our question.

So it looks like North America, and Europe grew nicely quarter over quarter could you provide color regarding what drove that growth.

Your service line that picked up in those delivery geographies.

Hi, Todd it's Vanessa thanks for the question.

Speaker 4: We did see, as I kind of mentioned in my remarks, you know, the growth that we saw was across pretty much all verticals. If we're looking at North American, Europe specifically, you know, a large number of our clients in those particular geographies or that we start from those geographies are in fact in the tech and games and e-commerce and fintech spaces, so I think you do see some of that reflected. And then in terms of, you know, sort of key, you know, service lines that drove that growth.

We did see as I kind of mentioned in my remarks.

Growth that we saw with across pretty much all verticals. If we're looking at North America and Europe specifically.

A large number of our clients in those particular geographies or that we start from those geographies are in fact in the tech and games and E Commerce and Fintech spaces. So I think you do see some of that reflected and then in terms of sort of key service lines that drove that growth.

Speaker 4: We're seeing continuing very healthy, better than market organic growth in the content moderation space. We're also seeing increased organic growth as well in our digital CX services.

We're seeing continuing very healthy better than market organic growth and the content moderation space. We're also seeing increased organic growth as well in our digital CX services.

Speaker 4: And so I think it is more broad-based than one particular thing, but as we look at those specific regions, those would be the key drivers.

And I think it is more broad based than one particular thing, but if you look at those specific region towards would be the key drivers.

Alright, great. Thank you very much.

Speaker 6: Thank you. Our next question comes to the line of Ashwin Srivanka from Citi. Your question please.

Thanks Ted.

Thank you. Our next question comes from the line of Ashwin <unk> from Citi. Your question. Please.

Speaker 9: Hi, it's Ron Pateron from Mashwin. Thanks for taking my question. Looking at your AI data solutions business, it seemed to improve and kind of accelerate through 2021. So I was wondering if there are any significant factors to call out that's driving this acceleration. And also how much of this improvement is being driven by the cross cell along with a content moderation.

Yes.

So I ran farther on from Bachelor and thanks for taking my questions.

AI solutions business seem to improve and kind of accelerate through 2020 . One. So I was wondering if there are any significant factors to call out that's driving this acceleration.

Also how much of this improvement is being driven by the cross sell along with the content moderation.

Speaker 3: Thanks, Ryan. Good question. We haven't provided that much sub-segmented, detailed disclosure on this. That may change in the fullness of time, but just sort of high level, indeed, the latter half of the year, we saw continued acceleration in terms of the performance of that portfolio for us and I think it's a consequence of a number of factors, not just obviously macro customer demand, but also...

Thanks, Brian Good question.

We haven't provided that much sub segment to detailed disclosure on this that may change in the fullness of time, but.

Just sort of high level. Indeed, the latter half of the year. We saw continued acceleration in terms of the performance of that portfolio for us and I think it's.

Consequence of a number of factors not just obviously macro customer demand, but also.

Speaker 3: admittedly inside TeleCenter National, we finally are getting a better aligned and progressed on the integration front so that we could really bring a more compelling, integrated, synergized customer offering across both our AI content moderation and digital IT capabilities. And so the customers that we'd inherited through the AI acquisitions in particular both philosophy and it said it in a way it pretty much allcemsthe tools toward Emperor Deva, better our technologies with the AI technology we were able to improve on growing data.

Hum.

Admittedly inside Telus International we finally, getting better aligned and progress on the integration front. So that we could really bring a more compelling integrated synergize.

Customer offerings across both our AI content moderation in digital.

Our capabilities and so the customers that we inherited through the AI acquisitions in particular both.

Speaker 3: former LAI and Plainment, I think recognizing and embracing the enhanced value that TI could deliver to them. Mm. Mm.

Former LSI and claimant I think recognizing and embracing.

The enhanced value that ti could deliver to them.

Speaker 3: As a consequence of this, you'll want a more progress integrated offering, I think was finally starting to take hold and improve performance and through 2022 and beyond, we're excited about continued acceleration and adoption of those combined capabilities. Thank you.

Excuse me.

The consequence of this.

More progressed integrated offering I think it was finally starting to take hold in.

<unk> performance in through 2022 and beyond we're excited about the continued acceleration and adoption of those combined capabilities.

Great. Thank you.

Speaker 6: Thank you. Our next question comes to the line of Stephanie Price from CIBC. Your question, please.

Thank you. Our next question comes from the line of Stephanie price from CIBC. Your question. Please.

Hi, good morning.

Speaker 2: I just wanted to touch on customer dynamics here. So a large social media firm reported a drop in daily users this quarter. Just curious if you could talk a bit of the potential read-through to TI from potential slower growth at clients and remind us how you incorporate client growth into the guidance.

I just wanted to touch on customer dynamics here. So a large social media firm recorded a drop in daily users. This quarter. Just curious if you could talk a bit of a potential read through key high some potential slower growth of clients and remind you remind us how you're incorporating into the guidance.

Speaker 3: Thanks very much, Stephanie. I mean, I guess a couple of things worth noting. The first is, TI is a value driving partner for that social media client. We provide, I think, unique solutions that are really critically important to their continued growth and success. And we do it more effectively and with higher efficiency than if they were to do it themselves at house. And given that we're stacked ranked regularly to their other partners, and we

Thanks, very much Stephanie.

I guess, a couple of things worth, noting the first is <unk>.

As of.

Value driving partner for that social media clients. We provide I think unique solutions that are really critically important to their continued growth and success and we do it more effectively and with higher efficiency than if they were to do it themselves in house and given that we're stack ranked regularly to their other partners.

Speaker 3: outperform those other third parties as well. We just don't anticipate to be on the call of the cost cutting end of things to the extent that they decide that in order to address that macro situation, that's the route we want to take. To the contrary, I think that represents incremental upsides for us. The other thing I think worth noting there is.

And we are.

Outperformed those other third parties as well.

We just don't anticipate to be.

On the call it the cost cutting end of things to the extent that they decided that in order to address that macro situation. That's the route we want to take to the contrary.

Think that represents incremental upsides for us.

The thing I think worth noting there is.

Speaker 3: excuse me, the related market commentary about those challenges also reference the elevated level of competition and possible market share user base shifts away from their base to their competitors, and their competitors are also our clients.

Excuse me the related market commentary about those challenges also referenced the elevated level of competition and possible market share user base shifts away from their base too.

Their competitors and their competitors are also our clients and so I think thats, just sort of reinforces the benefit of our well diversified client base.

Speaker 3: And so I think that just sort of reinforces the benefit of our well-diversified client base and having a number of these platforms in our top 10 client roster, serving some of these highest, not just high growth tech companies. So we're feeling reasonably comfortable that

Having a number of these platforms in our top 10 client roster serving some of these highest not just high growth tech companies.

So we're feeling reasonably comfortable that.

Speaker 3: Notwithstanding those challenges, there's still continued upside opportunity for TI.

Notwithstanding those challenges, but there is still continued upside opportunity for Ti.

Great. Thank you.

Speaker 6: Thank you. Our next question comes to the line of Ramsey Alassall from Barclays. Your question, please.

Thank you. Our next question comes from the line of Ramsey El <unk> from Barclays. Your question. Please.

Speaker 10: Hi, thanks for taking my questions morning. I wanted to ask about the M&A environment. I know your balance sheet is at a point now where you have some nice dry powder to consummate deals. I'm just wondering whether the environment now with kind of tech valuations having really come in. Is that kind of open to the aperture increase the sort of opportunity set for you? What are you seeing out there at this point?

Hi, Thanks for taking my questions. This morning.

I wanted to ask about the M&A environment I know your balance sheet is at a point now where you have some nice dry powder to consummate deals I'm, just wondering whether the environment now with kind of tech valuations, having really come in is that is that kind of opened the aperture increase to sort of opportunity set for you. What are you seeing out there at this point.

Speaker 3: Thanks Ramzi, that's a great question and as I think you know I've been sort of chomping at the bit to see if we can't progress this thesis in our growth strategy for some time now. I mean the primary driver of accessing the public markets at first instance was to have a transaction currency to amplify and accelerate our progress in that regard.

Sure.

Thanks, Ramsey that's a great question and as I think you know I've been sort of chomping at the bit to see if we can't progress. This thesis in our growth strategy for.

For some time now.

Primary driver of accessing the public markets. At first instance was to have a transaction currency to amplify and accelerate our progress in that regard.

Speaker 3: I don't know if the call at the rotation evaluation is what's driving my...

I don't know that.

We call it the rotation in valuation.

Is what's driving my excitement and enthusiasm around this I think the opportunities are.

Speaker 3: excitement and enthusiasm around this. I think the opportunities are probably as robust today as they were.

As robust today as they were three months ago six months ago.

Speaker 3: three months ago, six months ago, but indeed, you know, I'm, I'm

But indeed.

Speaker 3: parsimonious. I'm desirous of not overpaying and we've had to be disciplined as we've always been in terms of what assets we thought were worth acquiring. Historically, one has seen if one overpays at first instance, one then just naturally pursues unfortunate dysfunctional efforts around synergy realization to try and compensate for the overpayment on the purchase price at first instance, and then it's just a disaster all the way around.

I'm sorry.

Parsimonious seim desirous of not overpaying and we've.

Had to be disciplined as we've always been in terms of what assets. We thought were worth acquiring I think.

Historically, one has seen if one overpays at first instance, one then just naturally pursues I think unfortunate dysfunctional efforts around synergy realization to try and compensate for the overpayment on the purchase price at first instance, and then it's just it's a disaster all the way around so I'm I'm encouraged by what I'm seeing in terms of.

Speaker 3: I'm encouraged by what I'm seeing in terms of...

Speaker 3: perhaps a slightly more rational valuation environment.

Perhaps a slightly more rational valuation environment.

Speaker 3: for potential assets that we might pursue and again as Vanessa mentioned in her prepared remarks.

For potential assets that we might pursue and again as Vanessa mentioned in her prepared remarks, but we do believe that we are well positioned given as you say the dry powder levels that we are currently experiencing so when if the right opportunity comes along and Thats not just the consequence of the purchase price.

Speaker 3: We do believe that we are well-positioned given, as you say, the dry powder levels that we are currently experiencing. So, when, if the right opportunity comes along, and that's not just the consequence of the purchase price, it's also obviously a consequence of the capability that this asset will enable for us.

Also obviously, a consequence of the capability that this asset will enable for us.

Speaker 3: the transaction structure, the integration roadmap.

Transaction structure the integration.

Speaker 3: I think you should absolutely expect us to see us exploiting our opportunities in that regard.

Roadmap I think you should absolutely expect us to see us.

Exploiting our opportunities in that regard.

Got it okay. Thanks, so much.

Speaker 6: Thank you. Our next question comes in the line of Richard Say from National Bank Financial. Your question please.

Thank you. Our next question comes from the line of Richard <unk> from National Bank Financial Your question. Please.

Speaker 10: Yes, thank you. Whenever you can talk about your ability to pass on wage inflation and the prices, they're like a six month lag, a 12 month lag. And it's fair to say that any sort of compression and margins is really temporary when you think about it from that context.

Yes. Thank you wondering if you could talk about your ability to pass on wage inflation and the price is there like a six months lag a 12 month lag and is it fair to say that any sort of compression of margins.

Is it really a temporary when you think about it in that context.

Speaker 3: Thanks Richard. I think you may recall we sort of addressed the same question last quarter as well. It's a bit of a mixed bag. We don't have sort of a comprehensive COLA

Thanks Richard.

I think you may recall, we sort of address the same question last quarter as well.

A bit of a mixed bag, we don't have sort of a.

Comprehensive Cola language in all of our.

Speaker 3: customer engagement such that we can indeed be fully inoculated from these wage inflation dynamics.

Customer engagements such that we can indeed be fully inoculated from these wage inflation dynamics.

Speaker 3: But we do absolutely have a disciplined approach across the business.

But we do absolutely have a disciplined approach across the business.

Speaker 3: not new post pandemic, but frankly, since our inception and part of our TELUS heritage to be focusing on profitable growth and on engagements that are perceived by both our client and we as high value.

New post pandemic, but frankly since our inception and part of our Telus heritage to be focusing on profitable growth and on engagements that are perceived by both our client and we as high value.

Speaker 3: So we have been aggressively actively...

So we have been aggressively.

Speaker 3: You know, looking for areas of opportunity to indeed share the challenges of this labor inflation with our customers. And, you know, that will be a continuing effort indefinitely. And as I said before, this is not new post pandemic. This has always been our approach to try and mitigate.

Aggressively actively looking for areas of opportunity to indeed share the challenges of this labor inflation with our customers and that will be a continuing effort indefinitely as I said before this is not new.

Post pandemic. This has always been our approach to try and mitigate the inexorable challenges around wage inflation.

Speaker 3: the inexorable challenges around wage inflation and cost inflation that always sort of challenge margin yield.

Cost inflation that always sort of challenged margin yields and I think our history has demonstrated we have.

Speaker 3: and I think our history has demonstrated. You know, we've been laser focused on margin yield, not just growth, but profitable growth. So you should expect us to continue to do that. And in as many cases as possible, we'll indeed look to share those challenges with our customers.

Been laser focused on margin yield not just growth, but profitable growth. So you should expect us to continue to do that.

As many cases as possible will indeed look to share those challenges with our customers.

Speaker 3: I think prospectively, we'll see if there's going to be a change to the landscape. I think we're going to be in good shape here. I really do. Do I think this comes to an end?

I think prospectively we.

We will see if theres going to be a change to the to the landscape.

I think we're going to be in good shape here I really do I think this comes to an end.

Speaker 3: I'm not sure, but like I said, this has always been, when you're in technology services, you got to find ways to mitigate these challenges. And forgive me, I think you had a second part to your question and I just, I've lost it.

I am not sure, but like I said this has always been when you are in technology services, you got to find ways to mitigate these challenges and forgive me I think you had a second part of your question I just lost it.

Speaker 2: No, I was sort of related to that in that, you know, whether you would think the impact of those inflationary pressures are kind of temporary and that the margins would snap back. But I think you kind of answered it. Yeah. I mean, the only thing...

No.

To that end.

Whether you would think the impact of those questionary pressures are kind of temporary and that the margins with the fashion that back, but I think you've kind of answered it.

Yes, I mean, the only thing I would add to that is remember one of the other things that we're focused on is the mix of the services that we're providing.

Speaker 3: Remember, one of the other things that we're focused on is the mix of the services that we're providing.

Speaker 3: So we're working towards an outcome, and this again is a journey, not a destination, where the nature of the work we provide to our customers is more complex, more high value, and it too will carry some margin expansion attributes that we can also rely upon to mitigate

So we're working towards an outcome and this again is a journey not a destination where the nature of the work we provide to our customers is more complex more high value and it too will carry some margin expansion attributes that we can also rely upon to mitigate the wage inflation margin.

Speaker 3: the wage inflation margin dilution implications of our business. So, and again, that's not new, and this has been what we've been working towards for many, many years, and I think that's going to be ongoing as well.

Dilution implications of our business, so and again, that's not new this has been what we've been working towards for many many years and I think thats going to be ongoing as well.

Alright, Thanks, guys I appreciate it.

Got it.

Speaker 6: Thank you. Our next question comes to the line of Keith Bachman from BMO. Your question, please.

Thank you. Our next question comes from the line of Keith Bachman from BMO. Your question. Please.

Speaker 1: Many thanks and good morning, Jeff and Vanessa. I wanted to ask about the growth for CY22. Indeed, I would echo a comment previously. It seems like a fairly impressive growth outlook. How do you think about the growth algorithm between new logos contributing to that growth versus upsell from existing customers? Is there any way? I would assume the vast majority from existing customers, but you could just...

Many thanks, and good morning, Jeff and Vanessa I wanted to ask about the growth for <unk> 'twenty to date I would echo will come it previously it seems like apparently impressive growth outlook. How do you think about the growth algorithm.

Between new logos contributing to that growth.

Versus upsell.

From existing customers is there any way I would assume.

Asked majority from existing customers, but if you could just define that a little bit and then Vanessa if I can just sneak a clarification.

Speaker 2: find that a little bit. And then, Vanessa, if I could just sneak a clarification in. On the growth outlook, how much is organic? I assume that we've anniversaried most of the deals, but how much is organic in terms of the overall growth? Because I think claimant came in July 22, so maybe a little bit of help there, but if you could just clarify. Many thanks.

On the growth outlook.

Much as organic I assume that we've anniversaried most of the deals.

But.

How much is organic.

In terms of the overall growth because I think.

<unk> came in in July 'twenty, two so maybe a little bit of help there, but if you could just clarify many thanks.

Thanks Keith.

Speaker 4: So maybe I'll just start with the first part of your question, which is, you know, how much of the growth is coming from, you know, new logos versus, you know, goes to existing.

So maybe I'll just start with the first part of your question, which is how much of the growth is coming from new logos versus existing.

Speaker 4: So typically, in any given year, new clients contribute, you know, say less than 15% of revenue for that year. And that's to be expected, because

So typically in any given year new clients that contribute.

Less than 15% of revenue for that year.

And that's to be expected because typically with new client acquisitions would have more new client addition, what tends to happen at the start small and then they expand over a period of time.

Speaker 4: Typically, with new client acquisitions or new client additions, what tends to happen is they start small and then they expand over a period of time. And so the real growth in any given year tends to be from the expansion of clients that were once.

And so the real growth in any given year it tends to be from the expansion of clients that were won in.

Speaker 4: in the previous year or the previous few quarters. So the revenue contribution from those new clients acquisitions builds up over time.

In the previous year or the previous few quarters. So the revenue contribution from those new client acquisition built up overtime.

Speaker 4: So as a result of that, the way we look at things internally in terms of new logos versus growth to existing, the vast majority of our growth in any given year is growth to existing. However, as we continue with the new client wins, those ultimately become existing clients that continue to expand from a revenue growth perspective.

Result of that the way, we look at things internally in terms of new logos versus cross check. This thing the vast majority of our growth in any given year is growth check this thing however.

We continue with the new client win.

Ultimately become existing clients that continue to to expand from a revenue growth perspective.

Speaker 4: And then the second part of your question with respect to the outlook, it's all organic.

And then the second part of your question was.

With respect to.

The outlook, it's all organic Keith.

Speaker 4: So AI has now lapped into one year, so that's definitely within our organic growth metric.

So AI has now lapped into one year, so that's definitely within our organic growth metric.

Speaker 4: Playment was an immaterial acquisition, as you know. Frankly, that was a technology-based acquisition. The financials were immaterial, so that has really not much to do with the guide. The guide is really more around the strong organic growth, and AI is a big part of that as we continue to ramp that business. I think somebody noted earlier the strong performance in Q4. We also saw that as well in Q3, and we expect that momentum to continue.

There was an immaterial acquisition.

Okay, what's the technology based acquisition.

Those were immaterial so that has really not much to do with the guide. The guide is really more around the strong organic growth and AI is a big part of that as we continue to ramp that business I think somebody noted earlier the strong performance in Q4, we also saw that as well in Q3, and we expect that momentum to continue.

Speaker 2: Yeah, that's terrific. I thought it was mostly organic, but thanks for the clarification. It's certainly a positive outlook. Many thanks.

Yes.

Terrific I thought it was mostly organic but thanks for the clarification, it's certainly a positive outlook many thanks.

Thank you Keith.

Speaker 6: Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to Jeffrey Puritt for any further remarks.

Thank you. This does conclude the question and answer session of today's program I'd like to hand, the program back to Geoffrey.

Pure it for any further remarks.

Thanks, Jonathan and thank you everyone for your questions.

Speaker 3: In closing, 2021 was a transformational year for TELUS International and I could not be more proud of our highly engaged team for their passion, focus, and unwavering commitment to service excellence.

Closing 2021 was a transformational year for Telus International and I could not be more proud of our highly engaged team for their passion focus and unwavering commitment to service excellence. The outlook. We shared today reflects the momentum from 2021 and our confidence in <unk>.

Speaker 3: The outlook we shared today reflects the momentum from 2021 and our confidence into this year. And we are so excited to embrace the challenges and opportunities ahead. We look forward to connecting with you all at our next quarterly update taking place in May. And before that, we hope to see you during conferences Vanessa and I plan to attend, perhaps unfortunately still in a virtual format for just a little bit longer.

This year.

We are so excited to embrace the challenges and opportunities ahead.

We look forward to connecting with you all at our next quarterly update taking place in May and before that we hope to see you during conferences, Vanessa and I plan to attend perhaps unfortunately still in a virtual format for just a little bit longer now.

Speaker 3: Thank you all for joining us today. Please keep yourselves and your families safe. Bye-bye.

Thank you all for joining US today, please keep yourselves and your families safe Bye bye.

Speaker 6: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program you may now disconnect good day.