TELUS International (Cda) (TIXT) Q2 2024 earnings summary

Executive summary

• Leadership transition: Jeff Puritt retiring as President & CEO, succeeded by Jason Macdonnell; Tobias Dengel elevated to President of Digital Solutions.

• Jeff Puritt to become Executive Vice Chair, focusing on corporate development and M&A.

• Company rebranding to TELUS Digital Experience expected to complete in Q3 2024.

• Strategic focus on digital innovation, AI, and customer experience transformation.

• Company operates in a $750B+ total addressable market, serving 650+ clients globally.

Financial highlights

• Q2 2024 revenue: $652 million, down 2% year-over-year; YTD revenue: $1,309 million.

• Adjusted EBITDA: $130 million in Q2 (up 10%); margin at 19.9%.

• Free cash flow: $95 million in Q2 (up 44%); $202 million YTD.

• Adjusted diluted EPS: $0.16 in Q2; $0.38 YTD.

• FY 2023 revenue: $2.71B; 2024 revenue outlook: $2.61–$2.67B.

Outlook and guidance

• Full-year 2024 revenue expected at $2.61–$2.67 billion, with sequential growth in H2.

• Adjusted EBITDA guidance: $465–$485 million; margin 17.8%–18.1%.

• Adjusted diluted EPS outlook: $0.39–$0.44.

• Only half of the planned $60 million in-year cost savings expected to be realized in 2024.

• Outlook revised downward due to slower-than-expected demand recovery and margin pressures.