TDCX (US:TDCX)2022-04-20 10:08Revenue Performance - Revenue for the year ended December 31, 2021, was S$555.2 million, an increase from S$434.7 million in 2020, representing a growth of 27.7%[415] - Omnichannel CX solutions accounted for 62.4% of total revenue in 2021, while sales and digital marketing services contributed 20.7%[415] - Revenue from content monitoring and moderation services was S$85.9 million in 2021, accounting for 15.5% of total revenue[415] - Revenue increased by 27.7% to S$555.2 million (US$410.7 million) for the year ended December 31, 2021, driven by a 22.3% increase in omnichannel CX solutions and a 73.2% increase in sales and digital marketing services[433] - Revenues from omnichannel CX solutions increased by 22.3% to S$346.6 million (US$256.4 million) for the year ended December 31, 2021[437] - Revenues from sales and digital marketing services increased by 73.2% to S$114.7 million (US$84.9 million) for the year ended December 31, 2021[437] Profitability - Profit before income tax increased by 23.0% to S$132.1 million (US$97.7 million) for the year ended December 31, 2021[446] - Profit for the year increased by 20.6% to S$103.8 million (US$76.8 million) for the year ended December 31, 2021[448] - Total comprehensive income for the year increased by 12.7% to S$97.6 million (US$72.2 million) for the year ended December 31, 2021[450] Expenses - Employee benefits expense rose by 31.7% to S$339.7 million (US$251.3 million) for the year ended December 31, 2021, due to increased headcount and the introduction of a performance share plan[435] - Depreciation expense increased by 20.5% to S$39.9 million (US$29.5 million) for the year ended December 31, 2021, due to capital expenditure on new and expanded capacities[436] - Interest expense surged by 175.1% to S$8.4 million (US$6.2 million) for the year ended December 31, 2021, primarily due to a term loan drawdown[442] - Recruitment expenses increased by 36.0% to S$10.9 million (US$8.1 million) for the year ended December 31, 2021, due to higher referral and placement fees[439] Taxation - The effective tax expense for the years ended December 31, 2019, 2020, and 2021 was S$7.5 million, S$21.3 million, and S$28.2 million, respectively, indicating a significant increase in tax obligations[410] - The company has initiated discussions to renew tax benefits in Malaysia that expired in January 2020, which could positively affect future tax expenses[410] - Income tax expenses rose by 183.1% to S$21.3 million for the year ended December 31, 2020, due to the expiration of tax incentives in Malaysia[463] Geographic Distribution - The company operates in 11 geographies, with Singapore, the Philippines, and Malaysia each contributing approximately 25.9%, 26.0%, and 26.1% to total revenue in 2021[418] - The geographic revenue distribution shows a diverse client base, with significant contributions from Southeast Asia and North Asia markets[416] Cash Flow and Financing - Net cash from operating activities for the year ended December 31, 2021 was S$103.8 million (US$76.8 million), a decrease from S$130.5 million in 2020[484] - Net cash used in investing activities in 2021 was S$44.1 million (US$32.6 million), primarily for office space expansion of S$20.6 million[487] - Net cash from financing activities in 2021 was S$199.6 million (US$147.7 million), mainly from S$502.4 million proceeds from the issuance of new shares[490] - Cash and cash equivalents at the end of 2021 increased to S$313.1 million from S$59.8 million at the end of 2020[483] - The company reported a net increase in cash and cash equivalents of S$259.3 million in 2021, compared to S$23.5 million in 2020[483] - The company plans to finance significant strategic acquisitions through debt or equity issuance, which may lead to shareholder dilution[480] - The company had cash flows from operations expected to be adequate for the next 12 months[480] - The company may face additional contractual restrictions if it raises cash through debt issuance or refinancing existing credit facilities[480] Client Growth - The number of clients increased to 52 in 2021, up from 38 in 2020[469] Accounting and Compliance - The company is monitoring recently issued accounting pronouncements that may impact its financial position and results of operations[516] - The company recorded equity-settled share-based payment expenses of S$5.2 million for the year ended December 31, 2021[515] - Expected volatility for share awards was determined to be 29.0% based on historical data from comparable companies over the previous four years[515] - The expected term for share awards ranges from 0.45 to 3.45 years, with a risk-free rate between 0.1% and 0.9%[515] - The lease liability is remeasured when there is a change in lease term or significant events affecting the assessment of purchase options[514] - Lease payments may change due to adjustments in an index or rate, requiring remeasurement of lease liability using an unchanged discount rate[514] - If a lease contract is modified and not accounted for as a separate lease, the lease liability is remeasured based on the modified lease term[514]