TELUS International(TIXT) - 2022 Q4 - Annual Report

Financial Performance - Adjusted EBITDA was $157 million, up 10% from $143 million in the same quarter of the prior year, with an Adjusted EBITDA Margin of 24.9%, an increase from 23.8%[10] - Revenue of $2,468 million, up $274 million or 12% year-over-year, despite a 4% unfavorable foreign currency impact[10] - Net income of $183 million and diluted EPS of $0.68, compared to $78 million and $0.29 in the prior year, with Adjusted Net Income at $332 million, a 24% increase year-over-year[10] - Cash provided by operating activities was $437 million, up 41% from $311 million in the prior year, and Free Cash Flow was $333 million, up 59% from $210 million[10] - Revenue for Q4 2022 was $630 million, a 5% increase from $600 million in Q4 2021; total revenue for 2022 reached $2,468 million, up 12% from $2,194 million in 2021[28] - Net income for Q4 2022 was $34 million, slightly down from $36 million in Q4 2021; total net income for 2022 was $183 million, compared to $78 million in 2021[28] - Adjusted EBITDA for Q4 2022 was $157 million, up from $143 million in Q4 2021; total adjusted EBITDA for 2022 was $607 million, compared to $540 million in 2021[35] - The company reported a free cash flow of $60 million for Q4 2022, an increase from $37 million in Q4 2021; total free cash flow for 2022 was $333 million, compared to $210 million in 2021[36] - Operating income for Q4 2022 was $61 million, compared to $63 million in Q4 2021; total operating income for 2022 was $284 million, up from $185 million in 2021[28] Future Outlook - Full-year 2023 revenue outlook is between $2,970 million and $3,030 million, including $255 to $260 million from WillowTree, representing growth of 20.3% to 22.8%[11] - Adjusted EBITDA for 2023 is projected to be in the range of $705 to $725 million, representing growth of 16% to 19%[11] - Adjusted Diluted EPS for 2023 is expected to be between $1.20 and $1.25, reflecting higher interest charges associated with the WillowTree acquisition[11] - The company anticipates continued growth driven by business expansion and operational efficiencies despite potential economic challenges[22] Debt and Leverage - Net Debt to Adjusted EBITDA Leverage Ratio was 1.1x as of December 31, 2022, improved from 2.1x as of December 31, 2021, but increased to 2.9x post-WillowTree acquisition[10] - The net debt to adjusted EBITDA leverage ratio improved to 1.1 as of December 31, 2022, down from 2.1 as of December 31, 2021[37] Team and Community Impact - Team member count was 73,142 as of December 31, 2022, an increase of 18% year-over-year[10] - Since 2007, TELUS International has positively impacted over 1.2 million citizens globally through community initiatives[40] - The company has allocated $5.1 million in funding to grassroots charitable organizations since 2011[40] Company Services - TELUS International provides next-generation digital solutions to enhance customer experience for global brands[39] - The company supports the full lifecycle of clients' digital transformation journeys, enabling quicker adoption of digital technologies[39] - TELUS International's integrated solutions include digital strategy, IT lifecycle management, and end-to-end AI data solutions[39] Assets and Cash Position - Cash and cash equivalents at the end of Q4 2022 were $125 million, up from $115 million at the end of Q4 2021[29] - Total assets decreased to $3,556 million as of December 31, 2022, from $3,626 million as of December 31, 2021[29] Foreign Exchange Impact - The company experienced a foreign exchange loss of $18 million in Q4 2022, compared to a gain of $2 million in Q4 2021[28] Earnings Per Share - Basic earnings per share for Q4 2022 were $0.13, down from $0.14 in Q4 2021; diluted earnings per share remained at $0.13 for both quarters[28]