Q3 2023 TDCX Inc Earnings Call
Ladies and gentlemen, and welcome to the T. D. C. H Q3, 'twenty 10th Street results announcement My name is Neil and I will be coordinating your call. Today. If you would like to ask a question do you end up presentation. You may do so by pressing star one on your telephone keypad now hand, you over to your host Jason <unk>.
Z to begin a T D C X to begin Jason. Please go ahead.
Hello, everyone and welcome to T. D C exit quarter, two any change fee earnings Conference call. My name is Jason Lee head of Investor Relations joining.
Speaker 1: Hello everyone and welcome to TDCX 3rd Quarter 2023 Earnings Conference Call. My name is Jason Lim, the Head of Investor Relations. Joining us on the call today is our Executive Chairman, Founder and CEO , Mr. Lahoon Zunig.
Joining us on the call today is our executive chairman founder and CEO, Mr. Lahood unique.
Speaker 1: our CFO , Mr Chin Tzu-Ning, and our EVP of Corporate Development, Mr Edward Goh.
All Mr Chin zoning and our EVP of corporate development Mr. Edward.
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Speaker 1: Before we continue, I would like to remind you that we will make forward-looking statements, which are subject to risks and uncertainties that may not be realised in the future. You should not place any reliance on any forward-looking statements. Also, this call includes the discussion of certain non-IFRS financial measures, such as adjusted EBITDA and constant currency revenue growth.
Before we continue I would like to remind you that we will make forward looking statements, which are subject to risks and uncertainties that may not be realized in the future.
You should not place undue reliance on any forward looking statements also this call includes the discussion of certain non <unk> financial measures such as adjusted EBITDA and constant currency revenue growth.
Speaker 1: For reconciliation to the closest IFRS measures, please refer to the Form 6K which is available on our website.
A reconciliation to the closest I've always measures. Please refer to the form 6K, which is available on our website.
Speaker 1: We have prepared a convenient translation for SGD to USD at a rate of USD1 to SGD 1.3648.
We have prepared a convenient translation all Singapore dollar to the U S dollar and U.
U S D $1, two SGD 126 for <unk>.
Speaker 1: This should not be construed as representation that any SGD amount can be converted to USD at this or any other rate.
This should not be construed as representation that any Singapore dollar amount can be called budget. So USD at this or any other REIT.
Speaker 1: With that, let me hand over the call to Lahorn. Lahorn, please.
Let me hand over to call it.
Oh please.
Speaker 2: Hello, everyone, and thank you for joining us today. Before I begin, I'd like to thank our team members across the TD CX global network for their exceptional efforts and our clients and investors for their continued trust and support.
Hi, everyone and thank you for joining us today before I begin I'd like to thank our team members across the Gd six global network.
The exceptional efforts and our clients and investors for their continued trust and support.
Speaker 2: In the third quarter, PDCX delivered a solid revenue of 120 million U.S. dollars, which is stable on a constant currency basis. We also demonstrated improved operating rigor as we delivered Q3 adjusted EBITDA margins of 27.8%.
In the third quarter <unk> delivered a solid revenue of $120 million, which is stable on a constant currency basis. We also demonstrated improved operating rigor as we delivered Q3 adjusted EBITDA margins of 27, 8%.
Speaker 2: a testament to the success of our ongoing cost optimization initiatives. This compares with 25.9% in Q2 2023. Profit for the
Testament to the success of our ongoing cost optimization initiatives. This compares with 25, 9% in Q2 2023.
For the period was $23 million, an increase of two 3% year on year. This means we are very much on track to meet our guidance for the year I would say that the overall business continues to be strong in <unk>.
Speaker 2: 23 million US dollars, an increase of 2.3% year on year. This means we are very much on track to meet our guidance for the year. I would say that the overall business continues to be strong and resilient.
Speaker 2: Notably, if you were to exclude revenue from our top clients.
Notably if you were to exclude revenue from our top client revenues from the rest of the business would have grown in the low teens percentage year on year for Q3 2023 compared to Q3 2022.
Speaker 2: Revenues from the rest of the business would have grown in the low teens percentage year-on-year.
Speaker 2: Q3 2023 compared to Q3 2022. This demonstrates a very healthy performance against the backdrop of a really tough operating environment, which speaks to the way we continue to deliver excellence for our clients.
It demonstrates a very healthy performance against the backdrop of a really tough operating environment, which speaks to the way we continue to deliver excellence for our clients. You can also see this across a few operational power meters. Firstly we.
Speaker 2: You can also see this across a few operational parameters. Firstly,
Speaker 2: We continue to register broad-based business growth as revenue from clients outside the top five rising 51% year-on-year.
We continue to reduce the book base business growth is revenue from clients outside the top five rising 51% year on year.
Speaker 2: These newer clients, while starting from a smaller base, are growing quite steadily and continue to ramp nicely with us.
These newer clients, while starting from a smaller base are growing quite steadily and continued to ramp nicely with us.
Speaker 2: Secondly, we continue to make progress in reducing client concentration and diversifying our business.
Secondly, we continue to make progress in reducing client concentration and diversifying our business.
Speaker 2: Our top two clients contributed 47% of this quarter's revenue, hence reducing our concentration by almost 10 percentage points from 56% in the same period last year.
Top two clients contributed 47% of this quarter's revenue, hence, reducing our concentration by almost 10 percentage points from 56% in the same period last year.
Speaker 2: Thirdly, our business development efforts have yielded good results.
Thirdly, our business development efforts have yielded good results.
Speaker 2: Total client count rose 31% to 94 clients as of September 30th, 2023, with bright spots in some key sectors, which I'll speak more about shortly. And last but not least, our geographic expansion in the last two years continues to bear fruit as revenue from new geographies grew five times this quarter compared to the same period last.
Total client count rose, 31% to 94 times as of September 30 of 2023 with bright spots in some key sectors, which I'll speak more about shortly and last but not least our geographic expansion in the last two years continues to bear fruit as revenue from new geographies.
Grew five times this quarter compared to the same period last year <unk>.
Speaker 2: These indicators show that despite an uncertain backdrop, we are managing the business well while simultaneously achieving growth in earnings.
These indicators show that despite an uncertain backdrop, we are managing the business well, while simultaneously achieving growth in earnings.
Speaker 2: Despite these improvements, the macroeconomic environment remains challenging. As communicated before, several of our key clients have reduced volumes during the year as part of their focus on cost efficiency.
Despite this improvement the macroeconomic environment remains challenging as communicated before several of our coupons are reduced volumes during the year as part of their focus on cost efficiency.
Speaker 2: We're seeing the impact of these reductions against a strong Q3 last year, but these are within our forecast and expectations for FY2023. We're very disciplined with regards to cost controls. Furthermore, we have actively deployed our cash to drive higher.
We're seeing the impact of these reductions against the strong Q3 last year, but these are all within our forecast and expectations for FY 2023, we're very disciplined with regards to cost controls, but the mall, we have actively deployed all ash to drive higher returns.
Speaker 2: Our profit performance has translated into strong cash flows and a strong balance sheet. Cash generated from operations.
Our profit performance has translated into strong cash flows and a strong balance sheet.
Cash generated from operations was 86 million.
Speaker 2: million U.S. dollars for the nine months of 2023. As of September 30 of 2023, we have 318 million U.S. dollars of cash and cash equivalents with no debt on the balance sheet. Again, our strong cash flow generation and low leverage provides us with ample flexibility to pursue strategic growth as well as to enhance shareholder returns through a variety of avenues.
Millions of dollars for the nine months of 2023 as of September 30 of 2023, we have $318 million of cash and cash equivalents with no debt on the balance sheet again, a strong cash flow generation and low leverage provides us with ample flexibility.
To pursue strategic growth as well as to enhance shareholder returns through a variety of avenues we.
We see great value in our shares at current valuations and have prioritized share buybacks are the foremost enhancing shareholder returns.
Much more active in the market in the third quarter on first July 17th November 'twenty, two 'twenty three approaches around 930000 shares since the inception of this program in March 2022, we have deployed more than $15 million on buying back your own 2 million shares.
Speaker 2: We see this as an attractive use of our capital and believe that as growth returns, re-purchases at these levels will create significant value. In terms of M&As, with our strong cash balance, we have the ability to move very quickly on targets that could help enhance our capabilities or reach to better serve our clients or to accelerate our growth.
See this as an attractive use of our capital and believe that as growth returns.
Our chases at these levels will create significant value.
In terms of M&A with our strong cash balance we have the ability to move very quickly on August that could help enhance our capabilities all reach to better serve our clients all to accelerate our growth.
Speaker 2: Additionally, we have the financial strength and flexibility to allocate capital to strengthen our organic initiatives such as TDCX AI, our consulting capabilities, and reinvesting in our business.
<unk>, we have the financial strength and flexibility to allocate capital to <unk>.
Strengthen our organic initiatives such as TD shifts AI.
Our consulting capabilities and reinvesting in our business.
Speaker 2: This quarter at PDCS AI, we have accelerated our progress in deploying AI solutions for select clients while continuing to refine other pilot AI initiatives to boost internal productivity.
This quarter, our Tcs AI, we have accelerated our progress in deploying AI solutions for select clients, while continuing to refine other pilot initiatives to boost internal productivity.
Speaker 2: Let me outline another use case that we launched this quarter to showcase how we help clients solve major pain points.
Let me outline another use case that we launched this quarter to showcase how we help clients so major pain point.
Speaker 2: For sales campaign for large digital advertising clients, we built an AI-enabled sales catalyst accelerator to enhance outreach success and to maximize customer engagement in our sales and digital marketing programs. Our team took our treasure trove of historical contact data sets.
For sales campaign for large digital advertising clients, we built an AI enabled sales catalyst accelerator.
Enhanced outreach success and to maximize customer engagement in our sales and digital marketing programs. Our team took a treasure trove of historical contact datasets and overlaid them with additional data such as interaction notes and customer profiles and retrained.
Speaker 2: and overlay them with additional data such as interaction notes and customer profiles and retrain the model to predict and identify the optimal moment for a marketing specialist to carry out a marketing plan review.
Our model to predict them identify the optimal moment for marketing specialties to carry out a marketing plan review.
Speaker 2: This improvement boosted their reach by 20 to 40%. With a higher reach, our marketing specialists were able to assist users in a more timely and strategic manner, and significantly increased monetization for our digital advertising clients.
This improvement boosted their reach by 20% to 40% with a higher reach our marketing specialists, we're able to assist users in a more timely and strategic manner and significantly increased monetization for our digital advertising clients.
Speaker 2: This is a good example of where TDCX establishes our right to play as a strategic advisory partner to clients who are looking for actionable ways to gain incremental productivity and efficiency within their campaigns as they come under pressure to do more with less.
This is a good example of where TD She act establishes our right to play.
Strategic advisory partner to clients, who are looking for actionable ways to gain incremental productivity and efficiency within their campaigns as they come under pressure to do more with less.
Through TD <unk> AI, we leverage our deep operational experience, our CX practitioners and our tech stack to better understand client pain points and advise them implement feasible solutions to drive improved outcomes in their campaigns.
Speaker 2: Through TD CX AI, we leverage our deep operational experience as CX practitioners and our tech stack to better understand client's pain point and advise and implement feasible solutions to drive improved outcomes in their campaigns without losing that human touch. This is ultimately what clients have always come to us for.
Without losing that human touch this is ultimately what concept always come to a small.
Speaker 2: Most of our campaigns, which involve complex tasks that require humans in the loop, we believe will benefit from the productivity gains AI provides and will help us scale the business to even greater heights.
Most of our campaigns, which involve complex tasks that require humans in the loop. We believe will benefit from the productivity gains AI provides and will help us scale the business even greater heights.
Speaker 2: We have won some very exciting clients during the quarter as total client count rose to 94, a 31% increase year on year.
We have won some very exciting plans during the quarter as football club count rose to 94% to 31% increase year on year.
Speaker 2: Our domain expertise in key verticals and strategic footprint in APAC continues to shine through.
Our domain expertise in key verticals and strategic footprint in APAC continues to shine through.
Speaker 2: The clients we launched in Q3 included one of the world's most popular mobile messaging apps and a leading global airline based out of Asia, both of whom have the potential of ramping meaningfully with us.
The <unk> will launch in Q3 included one of the world's most popular mobile messaging apps and a leading global airlines based out of Asia, both of whom have the potential of ramping meaningfully with us.
Speaker 2: Our client count does not include a further four clients that have been signed but not yet launched, which include Southeast Asia's leading super app providing everyday services, as well as a European medical device manufacturer.
Our client count does not include a further four funds that have been signed but not yet launched which include southeast Asia, leading super App, providing everyday services as well as the European medical device manufacturer.
Speaker 2: Such wins our testament to deep domain expertise that we have built over the years, such as for social media platforms within our digital advertising and media vertical, in travel and hospitality, as well as in sales and digital marketing.
Such wins are testament to deep domain expertise that we have built over the years such as for social media platforms within our digital advertising and media vertical in travel and hospitality as well as in sales and digital marketing we.
Speaker 2: We have also made forays into innovative verticals, such as health tech, with two clients which we are pretty excited about. For one client, TDCx will be providing customer support for patients with specific medical needs, and for the other, helping medical practitioners understand how to use sophisticated medical devices.
We have also made forays into innovative vertical such as health Tech with two clients, which we're pretty excited about.
For one client <unk> will be providing customer support for patients with specific medical needs and for the other helping medical practitioners understand how to use sufficiency kit medical devices Division.
Speaker 2: TD CX's ability to break into new verticals such as health tech stems from our specialization in managing complex customer interactions and the ability to deliver excellent CX outcomes.
<unk> ability to break into new verticals, such as health tag stems from our specialization in managing complex system, our interactions and the ability to deliver excellent CX outcomes.
Speaker 2: With a higher client count and broader growth, we have improved our client concentration profile, with top two clients contributing 47% of revenue compared to 56% in Q2 2022, while top five clients contributed 71% of this quarter's revenue, down from 82% in the same period last year.
With a higher Italian town and broader growth, we have improved our client concentration the profile, we talked to clients contributing 47% of revenue compared to 56% in Q2 2022.
Our top five clients contributed 71% of this quarter's revenue down from 82% in the same period last year.
Speaker 2: In terms of contribution from verticals, digital advertising and media now represents 43% of our business and remains pressured by softness from our largest clients. We see some bright spots in travel and hospitality, our second largest vertical at 29% of revenue, which grew 8% year-on-year, demonstrating a stabilization of the travel sector with a runway for longer-term growth as we win more clients in this vertical.
In terms of contribution from verticals digital advertising and media and now represents 43% of our business and remains pressured by softness from our largest clients. We see some bright spots in travel and hospitality, our second largest vertical at 29% of revenue, which grew 8% year.
On year, demonstrating a stabilization of the travel sector with a runway for longer term growth as we win more accounts in this vertical.
Speaker 2: eCommerce and gaming are also doing very well, growing at an incredible clip of 63% year-on-year and 110% year-on-year.
E Commerce and gaming are also doing very well growing at an incredible clip of 63% year on year and 110% year on year.
Speaker 2: both reflecting the underlying strength of these sectors.
Both reflecting the underlying strength of the sectors.
Speaker 2: I'd like to emphasize at this juncture that TDCx is unique.
I'd like to emphasize at this juncture that TD shakes is unique.
Speaker 2: amongst global CX providers with over 70% of the business focused on serving Southeast Asian and North Asian languages, serving complex business needs.
Amongst global CX providers with over 70% of the business focused on serving southeast Asian, and North Asian languages, serving complex business needs.
Speaker 2: Since 2021, we've expanded quite rapidly, adding nine new geographies to our global footprint, including Colombia, India, Romania, South Korea, Hong Kong, Turkey, Vietnam, Brazil, and Indonesia. Our new geos have been scaling well, and revenue in Q3 2023 was five times that of Q3 2022.
<unk> 2021 we've expanded quite rapidly, adding nine new geographies to our global footprint, including Colombia, India, Romania, South Korea, Hong Kong, Turkey, Vietnam, Brazil, and Indonesia.
New deals have been scaling well and revenue in Q3 2023 was five times that of Q3 2022.
Speaker 2: We are happy with our strategic footprint now, and we will be focusing on growing and stabilizing these new sites, generating better economies of scale and progressively improving their margins.
We are happy with our strategic footprint now and we will be focusing on growing and stabilizing these new sites generating better economies of scale and progressively improving their margins.
Speaker 2: Korea has been one of our top performers in terms of news sites revenue expansion and continues to do well as we add more headcount and deliver on customer satisfaction scores. In Indonesia, we recently launched on the ground with a large social media client. It's early days yet.
Area has been one of our top performers in terms of new sites revenue expansion and continues to do well as we add more head count and deliver on customer satisfaction scores in.
In Indonesia, we recently launched underground with the large social media clients. It's early days yet.
Speaker 2: We are excited about the market's potential. In Vietnam, we are delivering top-of-the-network scores for a client launched a few quarters ago, and we are in active talks to sign up another client.
We are excited about the market potential in Vietnam, we are delivering top of the networks calls for client launched a few quarters ago and we are in active talks to sign up another client.
Speaker 2: These are positive developments, which really gives me confidence that our footprint in Asia will only continue to strengthen.
These are positive developments, which really gives them confidence that our footprint in Asia will only continue to strengthen.
Speaker 2: Some updates on Latam as well. Earlier this year, we launched our first campaign in Sao Paulo, Brazil. A pivotal step in our journey and our team has continued to grow ever since.
Some updates on Latam as well earlier this year, we launched our first campaign in Sao Paolo Brazil.
<unk> step in our journey and our team has continued to grow ever seats.
Speaker 2: We have delivered what the clients have called their smoothest launch to date, and we're now one of the top three performing sites globally based on customer satisfaction.
We have delivered what the concept called the smoothest launch to date and we're now one of the top three performing sites globally based on customer satisfaction.
Speaker 2: In Colombia, we expanded our customer service support team with a very innovative robot-assisted food delivery service, and we continue to receive interest from clients looking to launch in the region. Beyond delivering value to our clients, our goal at TDCX is also to ensure that we provide the best employee experience to our global TDCX team members and continue to attract and retain the best talent.
In Colombia, we expanded our customer service support team with a very innovative robot assisted food delivery service and we continue to receive interest from clients looking to launch in the region.
Beyond delivering value to our clients our goal at <unk> is also to ensure that we provide the best employee experience through our global <unk> team members and continue to attract and retain the best talent.
Speaker 2: I'm extremely proud of our engagement teams who champion a vibrant multicultural and joyful work culture and seven of our campuses are great place to work certified among the many other industry recognitions celebrating TDCX.
Im extremely proud of our engagement teams, who champion a vibrant multicultural and joy for culture and seven of our campuses are a great place to work certified among.
Among the many other industry recognition celebrating td's gx.
Speaker 2: In closing, we remain super focused on executing and delivering excellence for our clients and the results can be seen in many of the indicators that we shared earlier.
In closing, we remain super focused on executing and delivering excellence for our clients and the results can be seen in many of the indicators that we shared earlier.
Speaker 2: Over the past nine months, our nimble and agile structure has allowed us to pivot quickly, strategizing to make overheads more elastic against revenue, which in turn has contributed to margins improving. We have also made good progress on the AI and consulting front, which really helps to position us to be the ideal outsourcing partner for our client.
Over the past nine months are nimble and agile structure has allowed us to pivot quickly strategizing to make overheads more elastic against revenue, which in turn has contributed to margins improving we have also made good progress on the AI and consulting, France, which really helps to position us.
To be the idea of outsourcing partner for our clients moving forward, we will continue to invest for growth while at the same time managing our costs carefully.
Speaker 2: Moving forward, we will continue to invest for growth while at the same time managing our costs carefully. While we are focused on some of these immediate priorities, I would like to convey my confidence on TDCX's differentiated footprint, domain expertise in doing complex work for key verticals, and strong track record in developing client-vendor relationships into key strategic partnerships for large global enterprises.
While we are focused on some of these immediate priorities I would like to convey my confidence on TD shakes differentiated footprint domain expertise in doing complex work for key verticals and strong track record in developing client vendor relationships into key strategic partnerships for large global enterprises.
Yeah.
Speaker 2: We see green shoots in 2024, but it also appears that the global macroeconomic environment is not out of the woods yet. So we'll have to be very careful and robust with our guidance when it's time to do so during our Q4 results announcement. With that, let me hand it over to Mr. Chen.
We see green shoots in 2020 fault, but it also appears that the global macroeconomic environment is not out of the woods yet.
So we will have to be very careful and robust with our guidance. When it's time to do so during our Q4 results announcements with that let me hand, it over to Mr. Qi.
Thank you Laura.
Speaker 3: Thank you, Lohan. In Q3 2023, we delivered revenue of US $130 million, which is stable on a constant currency basis.
In Q3 2023.
Yes.
But a unit which is stable.
Currency.
On a reported basis revenue.
Speaker 3: On a reported basis, revenue is down 5.4% year-on-year due to the strengthening of the Singapore dollar against most of our operational-type functional currencies.
Five 4% year on year due to the strengthening of.
Singapore dollar.
Operational effect.
Speaker 3: This was driven by a decline in the client volume for some of our key clients, resulting in lower revenue from our top 5 clients combined.
This was driven by a decline in volume.
She finds resulting in lower revenue from.
Bye.
Speaker 3: Our clients outside the top 5 continue to grow strong, rising 51% year-on-year, which is in line with our continuous measures to broaden our customer demand.
Our first half that will.
Continued to grow strong rising 51% year on year.
Which is in line with our continuous measures to broaden our customer base.
It improves our customer revenue diversification.
Speaker 3: This has improved our customer revenue diversification as Lahorne has shared earlier.
Sure.
Adjusted EBITDA declined nine 1% year on year, and we believe that margin.
Speaker 3: Adjusted EBITDA declined 9.1% year-on-year, and we delivered margins of 27.8% this quarter, compared to 29% in the corresponding period last year.
This quarter compared to 39%.
Last year.
Speaker 3: As shared throughout the earlier part of this financial year, we have continued with investment expenses to grow our business, including entering into new geographies and building new capabilities, such as CBCX AI.
Sure.
Part of this financial year, we have continued investment expenses to go up.
Including entry into new geography, and building new capabilities such as PVC.
As part of our planned geographic expansion strategy.
Speaker 3: As part of our planned geographical expansion strategy, we incurred higher rental and maintenance expenses with the setup of greenfield sites, as well as higher telecom and technology expenses to support campaign volume requirements at both existing and new sites.
Higher rental and maintenance expenses.
There are 50 effect.
Hi.
Thank you.
And paint volume environment.
Sure.
Yes.
Speaker 3: That said, our cost management and productivity initiatives have started to show results, as adjusted EBITDA margins have improved sequentially from Q1 2023 through to Q3 2023. I'll share a bit more.
Yes.
Our cost management and productivity initiatives.
Who shows up at <unk>.
It will be that much.
Sequentially from Q1, and three shows in Q3.
I'll share a bit more on the next slide.
Speaker 3: In Q3 2023, we recorded higher interest income from increased placement of cash in interest earning deposits compounded by the elevated interest rate with environment.
In Q3, 2023, we recorded higher interest income.
Cash and interest, earning deposit compounded by the interest rate environment.
We also recorded a lower income tax expenses of the restatement.
Speaker 3: We also recorded lower income tax expenses from the re-implementation of tax incentives in the Philippines that were suspended temporarily last year, lower profitability of few key operating units, and a non-recurrence of the one-off prosperity tax in Malaysia that was implemented in 2022.
In the Philippines that was suspended temporarily last year.
Lower profitability of few key operating units and the non recurrence of.
And one of austerity estimate Asia.
You too.
Speaker 3: As a result, profit for the period grew 2.3% to US$23 million.
As a result profit for the period grew two 3% two year bullets in premium.
Speaker 3: Adjusted net income, which represents profit before equity settles share-based payment expense, net foreign exchange gain or loss, and acquisition related professional fees rose 2.2% year-on-year.
Adjusted net income, which represents bucket before equity share based payment expense net foreign exchange gain or loss and acquisition related professional fees rose two 2% year on year.
Speaker 3: We have reported sequential adjusted digital margin in systems from Q1 to Q3, which demonstrated the effects of our focus on cost optimisation and improving productivity and efficiency.
We have reported sequential adjusted EBITDA margin.
Otherwise the quarter too.
Which demonstrated the effects of our focus on customization and improving productivity.
Speaker 3: Adjusted EBITDA margins rose from 24% in Q1 2023 to 25.9% in Q2 2023, and up to 27.8% in Q3 2023.
Adjusted EBITDA margin rose from 34% in Q3 to 75, 9% in Q2 benefiting fee.
And up to date.
Three days of this week.
Throughout the course of the year our efforts.
Speaker 3: Throughout the course of the year, our efforts to right time take count against business requirements has started to bear fruit, resulting in better employment.
The farmer.
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Resulting in better employee costs.
Speaker 3: Secondly, as our new geography started to launch new campaigns and generate revenue, this also helped increase utilisation at the new sites and deliver better economies of scale as we move through 2020.
Secondly, as our new geographies effort to launch new campaigns and generate revenue.
Also here.
At least that.
And deliver better economies of scale.
Philippe.
Let me next provide some impact of our revenue by service offering.
Speaker 3: Let me next provide some insights of our revenue by service offering.
Revenue from Omnichannel CX solutions.
Speaker 3: Revenue from omni-channel CX solutions services decreased by 3% to US$72 million, primarily due to a contraction of volume from key clients in the digital, advertising, and media
Increased by 3%.
<unk> dollars $72 million, primarily due to a contraction of volumes from two five in the digital advertising and media.
Speaker 3: We were able to partly offset this with high business volume in the travel and hospitality, gaming, fast-moving consumer goods, financial services, technology, and e-commerce, particularly.
We were able to partly offset this with higher business volume.
And hospitality gaming fast moving consumer goods financial services.
D and e-commerce.
Speaker 3: Revenue from sales and digital marketing services increased by 3% to USD$32 million due to the expansion of existing campaigns by key digital advertising and media clients, and scale-up contributions from new clients secured in 2022.
Revenues from sales and digital marketing.
This factory events in U S dollars.
$32 million.
Due to the expansion of existing campaigns by key digital advertising and media.
And scalar contributions of new pipe coating.
In the 10-Q.
Revenues from content Chuck.
Speaker 3: Revenues from content, trust, and safety decline 30% year-on-year to US$14 million due to downward revision of volume requirements by an existing client in the digital advertising and media vendors.
By 30% year on year to USD 40 million.
Downward revision of volume requirement.
Buying an existing client in the digital advertising.
But was partially offset by expansion in travel.
Speaker 3: but was partially offset by extension due to travel and hospitality.
Okay.
Because we only have to price in this segment it is not acceptable.
Speaker 3: Because we only have two clients in this segment, it is more susceptible to swings due to changes in order.
Due to changes in volume.
Speaker 3: There continues to be good opportunities within the content trap and safety sector, which we are working to.
There continues to be good opportunities.
The content and safety sector, which we are working.
Speaker 3: In summary, Omnichannel CF made up 60% of our total business in Q3, for sales and digital marketing, and for contracts, trust and safety contributed 27% and 12% respectively.
In summary, Omnichannel Sir.
60% of our total business in Q3.
In digital marketing and content trusted.
Okay.
And with that.
Respectively.
Speaker 3: Much of the swing in this model was driven by movement in volumes of an existing large file.
Much of the swing in this quarter was driven by lump in volumes and existing gas plant.
Speaker 3: If they exclude the key client, we deliver double-digit percentage growth across all three service options.
If we exclude the key client we delivered double digit percentage growth.
All three of his office.
Speaker 3: Let me next move on to our year-to-date performance.
Let me next move onto year to date.
Our revenue for the nine months ended 30 September 2010 decreased one 7% on a constant currency basis.
Speaker 3: Our revenue for the 9 months ended 30 September 2023, rose 7% on a constant currency basis.
Speaker 3: Due to the impact of the strong Singapore dollar, reported revenue was up by a lower 2.5% to US$366 million.
Due to the impact of the strong thing about dollar reported revenue was up by two 5% to USD $366 million.
Speaker 3: We delivered strong earnings growth over the 9-month period as profit for the period rose 10.3% to US$65 million.
We delivered strong earnings growth over the nine months period as profit for the period Rose 10, 3% to USD $65 million.
Speaker 3: This was driven by a tight focus on cost optimisation and further boosted by a net reversal of equity settled share-based payment expense in Q1 2021.
This was driven by our focus on cost optimization and put it boosted by a net reversal of equities therefore share based payment expense in Q1 2023.
Speaker 3: Margins were down year-on-year as we continue with our planned investments into new geographies and new capabilities.
Margins were down year on year.
As we continue with our planned investments into new geographies and new capabilities.
Speaker 3: In particular, in the first and second quarter of this year, we had opted to keep strong support and shared service ratios, which impacted margins during the early part of.
In particular in.
In the first or second quarter of this year.
After two strong support and ratios.
Ratios, which impacted margins.
Yes.
Speaker 3: margins have been improved sequentially, quarter on quarter, as shared earlier.
Margin improved sequentially quarter on quarter.
Sure.
Excluding the effects of equity settled share based payment expense.
Speaker 3: Excluding the effects of equity-settled share-based payment expense, adjusted EBITDA declined 10.8% to US$95 million due to the lower margins year-on-year.
Adjusted EBITDA declined 10 potentially useful in 95.
Due to the lower margin year on year.
Speaker 3: Adjusted net income declined by a lower 5.8% to $62 million, aided by lower taxes and higher interest income.
Adjusted net income declined by a lower by 8% to 60.
2 million aided by lower taxes and higher interest.
Speaker 3: For the 9 months of 2023, revenue from Omnichannel CX rose 4% to US$219 million.
The nine months of <unk> revenue from Omnichannel.
Both of them to get the $219 million.
Speaker 3: Revenue from safe and digital marketing services increased by 13% to US$98 million, while revenue from content, trust, and safety services was down 22% at US$46 million, due largely to a drop in volumes from a key buy-in deficit.
Revenue from sales of digital marketing services increased by 13% to <unk> 98.
While revenue from content services was down 22% that you guys saw a 46 million you lost due to a drop in volumes.
Bye.
For the nine months of 2023, Omnichannel CX, Olivia 60% of our business.
Speaker 3: For the 9 months of 2023, Omnichannel DX contributes 60% of our business.
Speaker 3: while sales and digital marketing stood at 27%, and content trust and safety at 13%.
While sales in digital marketing at 27.
And content trusted.
Yes.
Lastly, let me provide an update on our full year 2023.
Speaker 3: Lastly, let me provide an update on our full-year 2023 Outlook.
Speaker 3: We have delivered a resilient set of results in line with our target.
We have delivered a resilient set of results in line with our guidance.
Speaker 3: For the 9 months of 2023, we have reported a 7% growth in revenue in quantity currency terms and adjusted EBITDA margins of $2.3 billion.
For the nine months of any benefit you have deposits.
Growth in revenue in constant currency.
And adjusted EBITDA margins of $25 nine.
Speaker 3: Based on the near-term visibility of value in Q42023 that reflects confirmed volume requirements, expected operational delivery, and field analyses,
Based on our near term visibility in Q4.
The effects of both volume requirements.
We expect that operational delivery and seasonality.
Speaker 3: And barring unforeseen significant events, we are reiterating our full year 2023 revenue growth range at 2% to 4% on a constant currency basis.
Barring a significant event, we are reiterating our full year 2023 revenue growth range, 2% to offense.
<unk>.
Speaker 3: We also reaffirmed our full year 2023 adjusted EBITDA margins to be approximately between 25% to 25%.
We also reaffirmed our full year 2000, <unk> adjusted EBITDA margins to be approximately between 35%.
Speaker 3: We will share FY24 guidance when we next report our Q4 and 2-year results. With that.
We will share FY, if any or guidance by Remixing, our Q4 and full year.
With that let me hand, you back to Jason.
Yeah.
Okay.
Thank you. Thank you Mr <unk>.
Speaker 1: Thank you. Thanks, Mr. Chin Lahorn, for the presentation. We are now ready for the Q&As. May I ask that you limit yourself to three questions at each round, so we have a chance to take down the questions.
For the presentation, we are now ready for the Q&A.
I ask that you limit yourself to three questions at each at each round. So we have to we have a chance to sort of take all the questions.
Operator please.
Yes.
Speaker 4: Thank you very much. Ladies and gentlemen, if you would like to ask a question, please press star followed by 1 on your telephone keypad now. If you change your mind, please press star followed by 2 to withdraw your question. When preparing to ask your question, please ensure your phone is unmuted locally. Thank you.
Thank you very much ladies and gentlemen, if you would like to ask a question. Please press star followed by one on your telephone keypad now if you change your mind. Please press star followed by two to withdraw your question when the frame to ask your question. Please ensure your phone is muted locally. Thank you.
Speaker 4: We now have our first question from Kaseon from CGS CIMB. Please go ahead.
Our first question from Casey on from CSS CGS <unk>. Please go ahead.
Speaker 5: Hi, good morning management team. Thanks for taking my question. I have three questions here. The first one is regarding the revenue slowdown in the first quarter.
Hi, Good morning management, Thanks for taking my question.
Yes.
The first one is regarding the revenue slowdown.
Part of the year.
Speaker 5: This seems to be mainly driven by your top two customers, based on my rough calculation, it seems that the revenue has fell 20% year-on-year here. Can you share more on what's happening here that results in such a drop?
This seems to be mainly driven by your top two customers.
<unk> calculated that.
Revenue fell 30% year on year here became on what's happening here that we don't forget if I can drill.
Speaker 5: Question number two, I think Menta showed a return to growth for his digital advertising in the latest quarter. Why hasn't that translated into your numbers? And based on your latest discussion with them, when can we see contributions from digital advertising clients returning to growth?
Question number two I think Matt that showed a return to growth.
Advertising in the latest quarter why is it that kind of data can be a number and based on your latest discussions with them.
Contribution from digital advertising clients returning to growth.
Speaker 5: Third question, I think we see some bright spots here in terms of X top five science performance. And maybe you can share some more colors on this. That would be very helpful. Thank you.
I think that we see some bright spots here in terms of upsides.
On time performance and maybe you can share some.
More color on that.
That'd be very helpful. Thank you.
Speaker 2: Thank you, Casey. Appreciate the question. I'll answer both the revenue slowdown and the bright spot within the same answer. Then I can talk about any growth implied or announced by our digital advertising clients. So in terms of revenue slowdown, really, it was expected. And the reason we revised our guidance back in August .
Thank you Casey.
Appreciate the question I'll answer both the revenue slowdown in the bright spot within the same answer that I can talk about.
Any growth.
Implied or announced by our digital advertising clients. So in terms of revenue slowdown really this is was it was expected and the reason we revised our guidance back in August.
Speaker 2: So, some key clients, particularly our large digital advertising client has cut volumes.
So some key clients, particularly our large digital advertising client has cut volumes.
Speaker 2: But if you exclude that top client, our revenues across all three segments would have grown in low teens.
But if you exclude that top clients our revenues across all three segments would have grown in low teens.
Speaker 2: Um, the clients outside the top five are still growing very well at 51% from Q3 23 to Q3.
The clients outside the top five are still growing very well at 51% from Q3, 23% Q3 22, but the impact as you know.
Speaker 2: But the impact, as you know, from the bigger client is the one causing that slowdown. So we're really in a situation where we have almost two different companies here. One that's being impacted by some large clients who are restructuring, looking for efficiencies. And then we have a mix of new clients and existing clients who are growing at a very fast pace.
The bigger clients as the one causing the slowdown so we're really in a situation where we have almost to two different companies here one that's being impacted by some large clients are all.
Restructuring looking for efficiencies and then we have a mix of new.
New clients and existing clients, who are growing at a very fast pace and so we have to manage that operationally and answering the brighter spots.
Speaker 2: And so we have to manage that operationally. In answering the brighter spots, we've brought in some exciting clients. We have some verticals that are doing well for us. Travel is performing. Gaming is exploding. Tech is doing well. Health tech is a new sector. So that's exciting. I'm excited about the global messaging platform that we've brought in, which has a great potential.
We've brought in some exciting clients, we have some verticals that are doing well for us travel is performing gaming is exploding take is doing well health tech as a new sector. So that's exciting and I'm excited about the.
Global messaging platform that we brought in which is a great potential and it's a multi purpose service that we provide whether it's b to b support technical support.
Speaker 2: And it's a multi-purpose service that we provide, whether it's B2B support, technical support, but also content moderation.
But also content moderation.
Speaker 2: another client in the e-commerce side from Asia, another social media company that we're working with from Asian footprint, but also global footprint, Asia's preferred super app.
And the other clients in the E Commerce side from Asia, Another social media company that we're working with.
Asian Asian footprint, but also global footprint.
Asia Us preferred Super App and more gaming.
Speaker 2: and more gaming, a new airline that we're bringing in as well. So quite excited. One of our tech clients as well has some potential to grow.
New airlines that were bringing in as well so quite excited one of our tech clients as well as some potential to grow.
Speaker 2: So it's more about the quality of those clients that excites me and that I see as a bright spot.
So it's more about the quality of those clients that.
Sorry, It's me and that I see as a bright spot now in terms of.
Speaker 2: The second question about the digital advertising clients announcing better performance, yes, it's good for them. And we're very happy, of course, to see this. It's, however, a bit difficult.
The second question about the digital advertising clients announcing better performance yes.
Good for them and we are very happy of course to see this however, the difficult.
Speaker 2: to connect and map this with us. You know, we don't own 100% of their business. We have one.
To connect and map this with US we don't own 100% of their business. We have won a percentage of it in specific service line specific geos.
Speaker 2: percentage of it, in specific service lines, specific geos. So from day one, and I think now we've been publicly set for the past two years, we've had difficulties really connecting the dots between their performance.
So from day, one and I think now we've been public tissue for the past two years, we've had difficulties really connecting the dots between their performance the macro economy performance and outperformance because a lot of things getting their way.
Speaker 2: the macroeconomic performance and outperformance because a lot of things get in the way. But if you want to also look at the Q4 outlook, they've remained a little bit cautious as well.
But if you want to also.
Look at the Q4 outlook remained a little bit cautious as well.
Speaker 2: And so it's not impossible that those clients are not pressing on the accelerator pedal right now, watching and planning for next year. So from quarter to quarter.
So it's not impossible that those funds are not.
Pressing on the accelerator pedal right now watching and planning for next year, so from quarter to quarter.
Speaker 2: I wouldn't jump into making predictions.
I wouldn't jump into making predictions.
Speaker 2: Watch it carefully and see how things pan out next year.
It carefully and see how things Pan out next year. So.
Speaker 2: I have, however, a sentiment that we've been under a situation where there's been a lot of management reshuffle over the past 12 months, a bit of paralysis in making decisions.
I have however, a sentiment that we've been under a situation where theres been a lot of management reshuffle over the past 12 months a bit of paralysis and making decisions.
Speaker 2: uh... that uh... should be normalizing and and i could expect that uh...
That should be normalizing and I could expect that.
Speaker 2: Maybe clients are looking at 2024 with a bit more stability, strategy, planning and decisions.
Maybe clients are looking at 2024 with a bit more stability strategy planning and decisions.
Speaker 2: So that's what I'm thinking of. I hope that answers the question.
So that's that's what I'm thinking of I hope that answers the question.
Okay. Thank you so much.
Yeah.
Thank you very much.
Okay.
Speaker 4: Thank you very much. We now have our next question from Ranjan Sharma from J.P. Morgan. Please go ahead.
Thank you very much but now have our next question from Ranjan Sharma from Jpmorgan. Please go ahead.
Hi, good morning team and thank you.
For the presentation.
Speaker 6: I guess one question from my side, the headcount has come down.
Just one question from my side.
The head count is coming down.
How should we think.
How about the growth opportunity I mean could this be a leading indicator that we expect.
Speaker 6: About a growth opportunity, I mean, could this be a leading indicator that you expect?
Our revenues.
Speaker 6: to be under pressure in the coming periods as well, that you are reducing the headcount. Thank you.
To be under pressure in the coming periods.
That's the world that are reducing the head count. Thank you.
Thank you John.
Speaker 2: Thank you, Ronjon. Look, the headcount reduction is absolutely directly related to the reduction in business volume. As we announced, we are minus 5.4 percent. So that translates into reduced headcount invariably. So, again, we have to be careful to look at it from quarter to quarter and not make predictions. Q4 will also be a different quarter than Q3 was. There's some seasonality.
Look the head count reduction is absolutely directly related to the reduction in business volume as well.
We announced we are minus five 4%.
So that translate into reduced headcounts invariably.
So.
Again, we have to be careful to look at it from quarter to quarter and not make predictions Q4 will also be a different quarter than Q3 was theres some seasonality.
Speaker 2: So, if I look at the headcount, I look at it from...
So if I look at the head count diluted it from.
Speaker 2: where we've been and you know we have quite a bit of flex in terms of hiring fast and also reducing our headcount fast as well so
Where we've been and you know we have quite a bit of flex in terms of hiring fast and also.
Reducing our head count as fast as well so.
Speaker 2: Yeah, I wouldn't put that as your leading indicator into reading into 2024 if I assume what you're
I wouldn't put that as your leading indicator into reading into 2024, which I assume what you're.
Speaker 2: right now. So we usually write size according to the business volumes and that's one of the strengths and reasons why clients come to us.
Asking right now.
So we're usually right size according to the business volumes and Thats, one of the strengths and reasons why clients come to us right.
Speaker 2: So it's really direct correlation between revenue and the headcount sizing for.
It's really a direct correlation between revenue and head count sizing for TD shakes.
Yes.
So think of it all I mean.
Speaker 6: Thanks a lot. I mean, I appreciate that you run a very efficient business.
I mean I appreciate that you run a very efficient business.
Speaker 6: But what I'm grappling with is that if you were expecting revenues to pick up, would you still cut headcount?
But what I'm grappling with is that if you were expecting revenues to pick up or do you still cut head count.
So on a quarterly or that caused the corollary to that is that if you're reducing head count and you would expect a new revenue start to pick up in the in the coming periods.
Speaker 6: So the corollary to that is that if you're reducing headcount, then you would expect revenues not to pick up in the coming period.
Okay.
Speaker 2: I think we were sticking to our guidance of revenue for 2024, so we report to you the headcount we had in Q3.
No I think we're sticking to our guidance.
Revenue for 2024, So you know we report to you the head count we had in Q3.
Speaker 2: which we were cutting because we started cutting before Q3, so that it looks like we have less headcounts so that we meet our targets and meet our clients' requirements.
Which we were cutting because we started cutting before Q3, so that it looks like we have less head count so that we meet our targets and meet our clients requirements, but it's not like we're cutting head count continuously it's not.
Speaker 2: It's not like we're cutting headcount continuously. It's not a program of layoffs. It's right-sizing. So that's a continuous operational method that we've been carrying out. And as the business picks up, we'll be hiring more. So that's the logical, typical mechanics. I hope I understand and answer your question correctly.
So graham of layoffs.
Right sizing.
So thats a continuous operational method.
Method that we've been carrying out so and as the business picks up we'll be hiring more so.
Logical typical mechanics, I hope I understand and answer your question correctly.
But thank you.
Thank you Andrew.
Speaker 4: Thank you very much. We now have our next question from Han Tan from HSBC. Please go ahead.
Thank you very much we now have our next question from <unk> <unk> from HSBC. Please go ahead.
Speaker 7: Could I ask how much of this quarter's data margin improvement, you attribute the FX effects versus the other effects?
Okay. Thanks management.
How much of this quarter's.
On margin improvement.
Attribute.
Alright.
Right.
The other thing to mention.
Speaker 7: high utilization. So if FX turns, do you expect some pressure to this module?
Our utilization.
Thanks Tun.
Thank you.
Thanks, you too.
These margins.
Mr. Jim maybe you could answer this question.
Yes. Your question centers around how much is FX and how much is.
Speaker 5: Yeah, your question centers around how much is FX and how much is.
Yes.
Okay.
Speaker 7: How much of quarter on quarter EBITDA margin improvement is FX versus other factors?
How much of quote unquote EBIDTA margin improvement is FX versus other factors.
Speaker 5: I would say not an awful lot because the effects in Q2 to Q3 was the movement was not as apparent in the earlier two quarters or earlier first quarter. So I would say it's to a lesser effect on that front but more of the utilization
Our thing.
Not an awful lot nicoski aspect, maybe Q2 Q3.
<unk>.
Not having.
In the earlier two quarters.
Earlier.
Quarter, So I'll say to a lesser effect on that front, but more of the.
Utilization.
Costs.
Speaker 5: costs, right-sizing effects of the headcount deployment.
Cycling effects of the.
How deployment.
And and.
Setup and.
Speaker 5: better, I mean, enhanced performance, I think that's due to the right sizing of headcount, calibration of people according to the business demands. It will be carrying more weight on that front, more effect on that front, rather than the effects, which though it helps a bit, it is not the main core issue for the period.
Past performance due to the direct.
By itself.
<unk>.
Calibration of that people are according to the business demands.
It will be carried more weight on that front more insight on that front rather than FX average so it helps a bit.
It's not the main coal issue.
For the for the period.
Okay.
Okay. Thanks, so much.
Speaker 7: I think my next question is on the water reduction in Cape Town. Is there a way that you could provide color in terms of geography?
My next question is on the cost can go to a reduction in head count is that where they could.
Any color in terms of geography.
Oh settlement.
Speaker 2: We don't really give a breakdown here, depending on the geos, but if I can maybe take your question a little bit further and say that some of the clients have also been looking for cost reductions and have asked to move from some more.
We don't really give a breakdown here.
Depending on the Geos.
If I can maybe take your question a little bit further and say that some of the clients have also been looking for cost reductions and have us to move from some more.
Expensive locations to lower.
Speaker 2: expensive locations to lower cost location. The good news is we have now a network of 16 geographies with different profiles and capabilities from a language and pricing.
Cost location. The good news is we have now a network of 16 geographies with different profiles and capabilities from our language and pricing.
Speaker 2: capability point of view and we can offer these options, which was I think two years ago not the case. So we're pretty well shielded and ready to deal with those challenges.
Technical capability point of view and we can offer these options, which was I think two years ago not the case, so we're pretty well shielded and ready to.
Deal with those challenges and but it depends really.
Speaker 2: And, but yeah, it depends really. It's not uniform across the board. You have, look, we have the new GEOs who have grown five times compared to last year. That's nine different countries out of 16.
Uniform across the board you have Luke.
Look we have the new Geos, who have grown five times.
Compared to last year's events.
Nine different countries out of 16. So you would expect that those have progressed in terms of head count whilst the legacy larger.
Speaker 2: So you would expect that those have progressed in terms of headcount, whilst the legacy larger.
Speaker 2: Geos where we operate from have been under a bit more pressure, and not all of them, some of them.
Geos, where we operate from.
<unk> been under a bit more pressure.
And not all of them some of them.
I hope that answers the question.
And then on that point on.
Speaker 7: shifting to lower cost locations. Has that been a headwind to top line? And if so, how much?
Shifting to lower cost locations.
The headwind to top line and if so how much.
Yes.
Speaker 2: Yeah, it is definitely a headwind. It's unavoidable as a headwind to the top line. I cannot share the amount but it's
Yes. It is.
It's definitely a headwind it's unavoidable.
The headwind to the top line I cannot share the amount.
But it's it's.
Speaker 2: It's not terribly significant. It does have an impact, but it's not probably worth mentioning in terms of value. But it's a natural progression of the way we're rebalancing demands in a tough market environment. The macro is challenging. Clients are quite price sensitive.
It's not terribly significant it does have an impact but it's not.
Probably worth mentioning in terms of value.
It's a natural progression of the way we are rebalancing.
Demands in a tough market environment, the macro is challenging consol quite price sensitive.
Speaker 2: And we need to be able to offer them solutions.
To be able to offer them solutions, but.
Speaker 2: It's training pretty fine and within our guidance once again for this year.
It's a training pretty.
Fine and within our guidance once again for this year.
If I could just squeeze in one question could I ask about <unk>.
Speaker 7: lead time to sort of between headcount additions and.
Good time to sort of between head count.
Additions and.
Speaker 7: and ramp up. It has that timing change since two years ago.
Has the timing changed since two years ago.
No no. This is still the same cycle of recruiting is more or less the same.
Speaker 2: No, no, this is still the same cycle of recruiting, more or less the same, and the impact on revenue.
The impact on revenue.
Speaker 2: follows. So no major transformation here within our operational model.
Follows so no major transformation here within our operational model.
Got it thanks Thats very helpful.
Thank you Dan.
Yes.
Speaker 1: OK, thanks, Han. I think next we have a question from Jonathan Woo via the webcast.
Okay. Thanks, a lot and I think next we have.
Question from Jonathan.
Via the web cast from Phillip.
Speaker 1: Moving into 2024, can we expect revenue growth from your larger clients to remain relatively muted?
Moving into 2024 can we expect revenue growth from your larger clients to remain relatively muted.
Speaker 1: and overall growth to be driven by newer or smaller clients.
And overall growth to be driven by newer or smaller clients.
Thank you Jonathan.
Speaker 2: Well, it's early days at this point, and I cannot comment really into how 2024 will look like, and we'll provide our guidance at the four-year results soon. We are absolutely working on our forecast right now, discussing volumes with clients and planning. As you know, those large clients have quite significant
Well, it's early days at.
At this point then.
I cannot comment reading into how 2024 will look like and we will.
We provide our guidance.
At the full year results.
Soon.
Absolutely we're working on our forecast right now discussing volumes with clients and planning as you know.
Those large clients offer quite significant chunk.
Speaker 2: a chunk of our business. So definitely, if their growth is muted, then we'll be impacted. But it's too early to comment on this.
Chunk of our business so.
Currently if that growth is muted then it will be impacted but it's too early to comment on this.
Speaker 2: On the other clients that we have, the smaller ones, same thing, I don't want to commit at this point, although they would have logically a faster growth profile than...
On the other clients that we have the smaller ones.
The same thing I don't want to commit at this point, although they would have logically a faster growth profile than the top two.
Top three.
Speaker 2: So it's a bit early to talk about this, but that's as far as I'm concerned.
So it's a it's a bit early to two.
To talk about this but thats as far as I think I can I can go at this point.
Sure.
Speaker 4: Thank you very much. As a reminder, ladies and gentlemen, to ask any further questions, you can press star followed by 1 on your telephone keypad now.
Thank you very much.
As a reminder, ladies and gentlemen to ask any further questions. You can press star followed by one on your telephone keypad now.
We now have a follow up question by Casey <unk> from CGS <unk>. Please go ahead.
Speaker 4: We now have a follow-up question by Casey Ong from CGS CIMB. Please go ahead.
Hi, Thanks.
Speaker 8: In terms of guidance for FY23, I observed that you decided to...
In terms of guidance for FY2023.
<unk> added through <unk>.
Speaker 8: keep your two-year guidance of about 2% to 4% in constant currency terms. I noticed that in nine months this year, revenue growth on constant currency terms was already about 7%. So is this more of a conservatism, or are you expecting further weakness in Q4?
Keep your full year guidance of about 34% in constant currency terms.
I noticed that in nine months.
Revenue growth in constant currency terms.
Kevin.
Great.
Is it more.
Or are you expecting further weakness.
And fourth quarter.
Okay.
Thank you Casey.
Speaker 2: Thank you, Casey. No, I think we've planned this pretty well. And as you can see, the first half, we were up 11%.
I think we planned this pretty well and as you can see.
The first half we were up 11%.
Speaker 2: But the third quarter, we're down 5.4%. So we're pretty well tracking within the guidance that we've given to do 4%.
But.
So its quarter were down five 4%.
So we're pretty well tracking within the guidance that we've given to two 4%.
Speaker 2: So this is a year where the first half was stronger than the second half, and I guess every year is different, and we adapt depending on how our business evolves, how our clients are behaving, how the macroeconomic environment behaves, but that's more or less the picture. So I think we're reiterating that guidance of Q2.4, and I guess you can draw your own conclusions as to how Q4 is going to look.
So this is a year, where the first half was stronger than the second half.
And I guess every year is different and we adapt depending on how our business evolves and how our clients are behaving how the macroeconomic environment behaves, but thats more or less the picture. So I think.
We are reiterating that guidance up to do for them.
Yes, you can draw your own conclusions as to how Q4 is going to look like.
Speaker 8: Got it. And just wondering in terms of AI. Yeah. Can you talk a bit more about the latest monetization of this opportunity? Yeah. Yeah.
Got it and just wondering in terms of AI.
Yeah, Okay can you talk a bit more about that later.
Okay.
Yeah.
Any color would be helpful. Thank you.
Speaker 2: Great, thank you for the question. So quite excited here. We are pursuing our journey with the TDCX AI, making great progress. As expected, as I said before, we use TDCX AI as a strategic advantage to.
Great. Thank you for the question. So quite excited here, we are pursuing our journey with TD, CX, AI and making great progress as expected as I said before we use <unk> as a strategic advantage.
To strengthen.
Speaker 2: strengthen our relationship with our clients, especially the larger clients, and so we are continuously investing in that space. We've brought in two new professionals into the mix I'm very happy with, and we've continuously engaged with our clients. We continue to build the interesting products and prototypes.
And our relationship with our clients, especially the larger clients and so we are continuously investing in that space.
We've brought in two new.
Professionals into the mix.
Im very happy with.
And we've continuously engaged with our clients we continue to build the interesting.
Products and prototypes.
Speaker 2: And I mentioned one of them in the call, in terms of helping to accelerate our sales on digital marketing. But one that got me very excited as well was one with GenAI that we've done with OpenAI on knowledge base that we've improved from one of our airline clients. And it's a very exciting.
And I mentioned one of them.
In the call in terms of helping to accelerate our sales on digital marketing, but the one that got me very excited as well. It was one with Gen. AI that we've done with open AI.
On the knowledge base.
With <unk>.
Improved from one of our airline clients.
It's a very exciting.
Speaker 2: at this point in terms of seeing the value it brings in adding more speed to proficiency.
Use case at this point in terms of seeing the value it brings and adding more speed to proficiency.
Speaker 2: Monetization is still a long way away if you want it in terms of value, but we're looking at different ways to monetize. One, charging clients for strategic consulting fees, and we're seeing some traction in that possibility. Sharing of productivity gains over time, getting into outcome-based pricing models.
Monetization is still a long way away if you wanted to in terms of.
Value.
But we were looking at different ways to monetize one charging clients for strategic consulting fees and we are seeing some traction in that possibility.
Sharing of productivity gains over time getting into outcome based pricing models, but also helped.
Speaker 2: but also helping our employees to be more efficient.
Helping our.
Employees to be more efficient and relevant to where we think the world is going to turn which is going to be having to do more complex transactions and sets from the day, we went IPO Otto.
Speaker 2: and relevant to where we think the world is going to turn, which is going to be having to do more complex transactions. And as we said, from the day we went IPO, automation will rid the business of the simple tasks.
Automation will read the business of the simple tasks.
Speaker 2: and will continue to drive the more complex tasks to humans in the loop.
And we will continue to drive the more complex task to humans in the loop and so we focus on that and so I'm happy with that Im always never happy announce it could go faster.
Speaker 2: And so we focus on that. And so, yeah, I'm happy with that. I'm always never happy enough. It could go faster, but we're in a good place. And I think what I like about is really the strategic intent not to confuse ourselves with a IT company, but more as a CX strategic advisor, leveraging AI for our clients in general.
<unk>.
We are in a good place and I think what I like about it is really the strategic intent not to confuse ourselves with.
Company, but more as a CX strategic adviser leveraging AI for our clients in general.
Got it thank you.
Thank you Jason.
Thanks Casey.
Speaker 1: I think that's all the questions we have on the call today. If you have any follow-up, please feel free to reach out to Investor Relations. On behalf of management, thank you for your time and for dialing in.
I think that's all the questions we have on the call today.
If you have any follow up please feel free to reach out to Investor relations at.
Behalf of management and thank you for your time and for dialing in.
Yeah.
Goodbye and have a good day.
Speaker 4: Thank you very much. Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your line.
Thank you very much ladies and gentlemen. This concludes today's call. Thank you for joining you may now disconnect your lines.
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Speaker 4: Thank you for joining, you may now disconnect your lines.
For joining you may now disconnect your lines.
[music].