TDCX (US:TDCX)2023-04-26 10:18Revenue and Growth - Revenue for the year ended December 31, 2022, was S$664.1 million, an increase from S$555.2 million in 2021, representing a growth of 19.6%[463] - Omnichannel CX solutions accounted for 57.8% of total revenue in 2022, down from 60.2% in 2021, while sales and digital marketing services increased to 25.1% from 20.7%[463] - Revenue from content, trust, and safety services was 16.5% of total revenue in 2022, down from 18.6% in 2021, indicating a shift in service demand[463] - Revenue increased by 19.6% to S$664.1 million (US$493.9 million) for the year ended December 31, 2022, driven by a 45.1% increase in sales and digital marketing services and a 15.0% increase in omnichannel CX solutions[483] - Revenue from omnichannel CX solutions increased by 15.0% to S$384.2 million (US$285.7 million) for the year ended December 31, 2022[483] - Revenue from sales and digital marketing services increased by 45.1% to S$166.5 million (US$123.8 million) for the year ended December 31, 2022[483] Profit and Expenses - Profit before income tax rose by 7.5% to S$142.0 million (US$105.6 million) for the year ended December 31, 2022[497] - Profit for the year increased by 1.1% to S$104.9 million (US$78.0 million) for the year ended December 31, 2022[499] - Employee benefits expense increased by 28.5% to S$436.4 million (US$324.5 million) for the year ended December 31, 2022, due to higher headcount and wage adjustments[486] - Other operating income decreased by 25.0% to S$4.7 million (US$3.5 million) for the year ended December 31, 2022, primarily due to lower government grants[496] - Total comprehensive income for the year decreased by 6.3% to S$91.4 million (US$68.0 million) for the year ended December 31, 2022[501] - Other operating expenses increased by 32.1% to S$14.7 million (US$10.9 million) for the year ended December 31, 2022[493] Tax and Incentives - The effective income tax expense for the years ended December 31, 2020, 2021, and 2022 was S$21.3 million, S$28.2 million, and S$37.0 million, respectively, reflecting an increase of 31.4% year-over-year in 2022[456] - The company has applied for the renewal of tax incentives in Malaysia, which expired on January 18, 2020, and is awaiting confirmation from authorities[456] Cash Flow and Financing - Cash and cash equivalents as of December 31, 2022, totaled S$389.1 million (US$289.4 million)[531] - Net cash from operating activities for the year ended December 31, 2022 was S$164.6 million (US$122.4 million), an increase from S$103.8 million in 2021[539] - Net cash used in investing activities in 2022 was S$29.7 million (US$22.1 million), primarily for the purchase of plant and equipment amounting to S$24.4 million[542] - Net cash used in financing activities in 2022 was S$50.5 million (US$37.5 million), mainly consisting of S$19.7 million for lease liabilities repayment and S$16.8 million for net repayment of bank loans[545] - The company plans to finance significant strategic acquisitions through debt or equity issuance, which may lead to dilution for existing shareholders[535] Employee and Workforce - Total employees increased to 17,883 as of December 31, 2022, up from 14,706 in 2021, representing a growth of 14.8%[609] - The Philippines had the largest employee base with 6,783 employees, a 17.9% increase from 5,750 in 2021[609] - Malaysia's workforce grew by 38.8% to 5,826 employees from 4,201 in 2021[609] - Employee benefits expense primarily consists of wages and salaries, commissions, and incentive payments, impacting overall operational costs[468] - Employee engagement surveys are conducted bi-weekly, resulting in higher participation rates compared to previous bi-annual surveys[615] - Employee retention programs include a two-day induction program and regular wellness events to promote physical and mental health[614][616] Corporate Governance - The board of directors consists of five members, with two being independent, ensuring compliance with NYSE independence standards[598] - The Audit Committee is composed of two members, both meeting the independence requirements of the NYSE[603] - The company has oversight on investor relations and corporate communications functions since 2021[573] Shareholder Information - As of March 31, 2023, the company had 144,918,462 ordinary shares issued and outstanding, including 21,418,462 Class A ordinary shares and 123,500,000 Class B ordinary shares[621] - Directors, executive officers, and certain employees collectively owned 899,517 Class A ordinary shares and 123,500,000 Class B ordinary shares, representing 85.8% of total ordinary shares and 98.4% of voting power[624] - Transformative Investments Pte Ltd held 123,500,000 Class B ordinary shares, accounting for 85.2% of total ordinary shares and 98.3% of voting power[624] Strategic Plans and Future Outlook - The company’s ability to expand and grow will depend on cash flow increases and the availability of financing options[535] - The company plans to expand the Performance Share Plan (PSP) to include additional categories of employees in the future[597]