TELUS International (Cda) (TIXT) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw stabilization in operations and financial performance, with revenue of $691 million, up 5% year-over-year, and full-year revenue of $2,658 million, down 2% but stable in the second half.

• The company serves 650+ clients globally with 78,000+ team members as of December 31, 2024, targeting a $750B+ total addressable market in digital customer experience, AI, and digital solutions.

• Expanded business with 162 existing clients and added 55 net new clients, including major wins in retail and AI sectors.

• Significant growth in Africa following acquisitions, with an 800% increase in team size and 430% revenue growth in the region.

• Strategic priorities include organic and inorganic growth, leveraging technology, expanding geographic presence, and disciplined M&A.

Financial highlights

• 2024 revenue was $2,658M, down 2% year-over-year, but up 9% on a constant currency basis.

• Adjusted EBITDA for 2024 was $481M (18.1% margin), down from $582M (21.5% margin) in 2023; Q4 Adjusted EBITDA margin was 14.9%.

• Net loss for 2024 was $(61)M, compared to net income of $54M in 2023; Adjusted Net Income was $116M, down from $248M.

• Cash provided by operating activities was $517 million for the year; Free Cash Flow was $413 million, both up slightly year-over-year.

• Net debt-to-Adjusted EBITDA leverage ratio at 3.2x at year-end, up from 2.8x in 2023.

Outlook and guidance

• 2025 organic revenue growth guided at approximately 2%, with revenue expected to reach about $2.7B.

• Adjusted EBITDA expected at $400 million for 2025, with Adjusted Diluted EPS of $0.32.

• $65 million in investments planned for 2025, with capital expenditures at 4–5% of revenue.

• $50 million in cost savings targeted for 2025, mainly from operational transformation and indirect cost reductions.

• Q1 2025 expected to be the softest quarter, with sequential improvement through the year.