TDCX Inc. (NYSE: TDCX) (“TDCX” or the “Company”), an
award-winning digital customer experience (CX) solutions provider
for technology and blue-chip companies, today announced its
unaudited financial results for the fourth quarter and full year
ended December 31, 2023.
Full Year 2023 Financial Highlights2
- Total revenue of US$499.3 million, down 0.9% year-on-year, or
up 3.0% in constant currency terms1, which included a 3.9% point
negative impact of foreign exchange rates compared with the prior
year
- Profit for the year was US$91.1 million, up 14.5% year-on-year,
primarily driven by cost optimization efforts, lower tax, higher
interest income and a net reversal of equity settled share-based
payment expense
Fourth Quarter 2023 Financial Highlights2
- Total revenue of US$120.4 million, down 10.1% year-on-year, or
down 5.3% in constant currency terms1, which included a 4.8% point
negative impact of foreign exchange rates compared with the prior
year period
- Profit for the period was US$24.2 million, up 27.8%
year-on-year, primarily driven by cost optimization efforts, lower
tax, higher interest income and a net reversal of equity settled
share-based payment expense
Mr. Laurent Junique, Chief Executive Officer and Founder of
TDCX, said, “Market uncertainties and a challenging macroeconomic
environment continue to dampen business sentiment. This has had a
knock-on impact on TDCX. Despite these pressures, we delivered
within our guidance, and remain focused on the long term,
particularly on improving our operations and delivering client
value propositions.”
(US$ million2, except for
%)
FY 2022
FY 2023
% Change
Q4 2022
Q4 2023
% Change
Revenue
503.7
499.3
-0.9%
(+3.0% on a constant currency
basis)1
134.0
120.4
-10.1%
(-5.3% on a constant currency
basis)1
Profit for the period
79.6
91.1
+14.5%
19.0
24.2
+27.8%
Net profit margin (%)
15.8%
18.3%
14.2%
20.1%
EBITDA3
136.7
136.9
+0.1%
32.4
35.6
+9.7%
EBITDA Margins3
(%)
27.1%
27.4%
24.2%
29.5%
Adjusted EBITDA3,4
150.2
131.0
-12.8%
40.1
32.8
-18.3%
Adjusted EBITDA Margins3,4
(%)
29.8%
26.2%
29.9%
27.2%
Adjusted Net Income3,4
93.4
85.2
-8.7%
25.5
21.2
-16.8%
Business Highlights
Sustained client growth
- Client count5 up 15% year-on-year, bringing total client count
to 97 as of December 31, 2023, compared with 84 as of December 31,
2022
- Newly launched clients in Q4 23 include a global digital
payments company and a professional chauffeur portal
Improved revenue diversification
- Revenue from clients outside the top five rose 44% year-on-year
in FY 23
- Revenue mix from top five clients lowered to 73% in FY 23, from
81% in FY 22
Contribution from new geographies
- Revenue from new geographies6 was four times in FY 23 versus FY
22
Detailed Financial Information on the
Form 6-K
Please refer to
https://investors.tdcx.com/financials/quarterly-results/default.aspx
for the detailed financial information contained in Form 6-K.
__________________ 1 Revenue at constant currency is calculated
by translating the revenue of our local subsidiaries in each period
in the respective local functional currencies to the presentation
currency of the Company and its subsidiaries, using the average
currency conversion rates in effect during the comparable prior
period, rather than at the actual currency conversion rates in
effect during the current reporting period.
2 FX rate of US$1 = S$1.3186, being the approximate rate in
effect as of December 31, 2023, assumed in converting financials
from SG dollar to U.S. dollar.
3 For a discussion of the use of non-IFRS financial measures,
see “Non-IFRS Financial Measures”.
4 The reported amounts for Adjusted EBITDA and Adjusted Net
Income for the three months and full year ended December 31, 2023
include adjustments for certain items (i.e., acquisition-related
professional fees and net foreign exchange gains or losses) which
were not included in similar non-IFRS financial measures previously
reported in prior periods. The amount of adjustment for net foreign
exchange loss or gain previously reported in prior periods did not
include unrealized losses or gains resulting from change in fair
value of derivatives. In order to place the current disclosure in
the appropriate context and enhance its comparability, similar
adjustments have been made for net foreign exchange loss and net
foreign exchange gain, Adjusted EBITDA and Adjusted Net Income for
the three months and full year ended December 31, 2022.
5 “Client count” refers to launched campaigns that are revenue
generating.
6 Refers to sites in Colombia, India, Romania, South Korea, Hong
Kong, Türkiye, Vietnam, Brazil and Indonesia.
Webcast and Conference Call Information
The Company will not host a conference call to discuss the
results. Please reach out to the Investor Relations or Public
Relations contacts listed below with any questions.
About TDCX INC.
Singapore-headquartered TDCX provides transformative digital CX
solutions, enabling world-leading and disruptive brands to acquire
new customers, to build customer loyalty and to protect their
online communities.
TDCX helps clients achieve their customer experience aspirations
by harnessing technology, human intelligence and its global
footprint. It serves clients in fintech, gaming, technology, travel
and hospitality, digital advertising and social media, streaming
and e-commerce. TDCX’s expertise and strong footprint in Asia has
made it a trusted partner for clients, particularly high-growth,
new economy companies, looking to tap the region’s growth
potential.
TDCX’s commitment to delivering positive outcomes for our
clients extends to its role as a responsible corporate citizen. Its
Corporate Social Responsibility program focuses on positively
transforming the lives of its people, its communities and the
environment.
TDCX employs more than 17,800 employees across 30 campuses
globally, specifically in Brazil, Colombia, Hong Kong, India,
Indonesia, Japan, Malaysia, Mainland China, Philippines, Romania,
Singapore, South Korea, Spain, Thailand, Türkiye, and Vietnam. For
more information, please visit www.tdcx.com.
Convenience Translation The Company’s financial
information is stated in Singapore dollars, the legal currency of
Singapore. Unless otherwise noted, all translations from Singapore
dollars to U.S. dollars and from U.S. dollars to Singapore dollars
in this press release were made at a rate of S$1.3186 to US$1.00,
the approximate rate in effect as of December 31, 2023. We make no
representation that any Singapore dollar or U.S. dollar amount
could have been, or could be, converted into U.S. dollars or
Singapore dollar, as the case may be, at any particular rate, the
rate stated herein, or at all.
Non-IFRS Financial Measures To supplement our
consolidated financial statements, which are prepared and presented
in accordance with IFRS, we use the following non-IFRS financial
measures to help evaluate our operating performance:
“EBITDA” represents profit for the year/ period before interest
expense, interest income, income tax expense and depreciation and
amortization expense. “EBITDA margin” represents EBITDA as a
percentage of revenue.
“Adjusted EBITDA” represents profit for the year/ period before
interest expense, interest income, income tax expense, depreciation
and amortization expense, acquisition-related professional fees,
net foreign exchange gains or losses and equity-settled share-based
payment expense (or net reversal) incurred in connection with our
Performance Share Plan. “Adjusted EBITDA margin” represents
Adjusted EBITDA as a percentage of revenue.
“Adjusted Net Income” represents profit for the year/ period
before acquisition-related professional fees, net foreign exchange
gains or losses and equity-settled share-based payment expense (or
net reversal) incurred in connection with our Performance Share
Plan, net of any tax impact of such adjustments.
Revenue at constant currency is calculated by translating the
revenue of our local subsidiaries in each period in the respective
local functional currencies to the presentation currency of the
Company and its subsidiaries, using the average currency conversion
rates in effect during the comparable prior period, rather than at
the actual currency conversion rates in effect during the current
reporting period.
We believe that EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted
EBITDA Margin, Adjusted Net Income, Revenue at Constant Currency
and Revenue Growth at Constant Currency help us to compare our
operating performance on a consistent basis by removing the impact
of items not directly resulting from our core operations, and
thereby help us to identify underlying trends in our operating
results, enhancing our understanding of past performance and future
prospects.
We exclude items from Adjusted EBITDA and Adjusted Net Income,
including acquisition-related professional fees, net foreign
exchange gains or losses and equity-settled share-based payment
expense (or net reversal) incurred in connection with our
Performance Share Plan, as they are not indicative of our ongoing
operating performance, and adjusting for such items is meaningful
and useful to readers to understand the underlying performance of
the business by eliminating the impact of certain items that may
obscure trends in the underlying performance of the business.
The above non-IFRS financial measures have limitations as
analytical tools and should not be considered in isolation or
construed as an alternative to revenue, net income, or any other
measure of performance or as an indicator of our operating
performance. The non-IFRS financial measures presented here may not
be comparable to similarly titled measures presented by other
companies because other companies may calculate similarly titled
measures differently. For more information on the non-IFRS
financial measures, including full reconciliations to the nearest
IFRS measure, please see the form 6-K section captioned “Non-IFRS
Financial Measures” or the presentation slides.
Safe Harbor Statement This announcement contains
forward-looking statements. These statements are made under the
“safe harbor” provisions of the U.S. Private Securities Litigation
Reform Act of 1995. In some cases, you can identify these
forward-looking statements by the use of words such as “outlook,”
“believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “could,” “seeks,” “predicts,” “intends,” “trends,”
“plans,” “estimates,” “anticipates” or the negative version of
these words or other comparable words. The Company may also make
written or oral forward-looking statements in its periodic reports
to the U.S. Securities and Exchange Commission (the “SEC”), in its
annual report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company’s beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: the performance of TDCX’s largest
clients; the successful implementation of its business strategy;
the continued service of the Founder and certain of its key
employees and management; its ability to compete effectively; its
ability to navigate difficulties and successfully expand its
operations into countries in which it has no prior operating
experience; its ability to maintain its pricing, control costs or
continue to grow its business; its ability to attract and retain
enough highly trained employees; its compliance with service level
and performance requirements by, and contractual obligations with,
its clients; its exposure to various risks in Southeast Asia and
other parts of the world; its contractual relationship with key
clients; clients and prospective clients’ spending on omnichannel
CX solutions and content, trust and safety services; its ability to
successfully identify, acquire and integrate companies; its
spending on employee salaries and benefits expenses; and its
involvement in any disputes, legal, regulatory, and other
proceedings arising out of its business operations. Further
information regarding these and other risks is included in the
Company’s filings with the SEC. All information provided in this
press release and in its attachment is as of the date of this press
release, and the Company undertakes no obligation to update any
forward-looking statement, except as required under applicable
law.
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
For the three months ended
December 31,
2023
2022
US$’000
S$’000
S$’000
Revenue
120,434
158,804
176,671
Employee benefits expense
(74,472
)
(98,199
)
(114,810
)
Depreciation and amortization
expense
(8,112
)
(10,696
)
(10,672
)
Rental and maintenance
expense
(1,819
)
(2,398
)
(2,690
)
Recruitment expense
(1,943
)
(2,562
)
(3,404
)
Transport and travelling
expense
(328
)
(432
)
(666
)
Telecommunication and technology
expense
(2,411
)
(3,179
)
(3,271
)
Interest expense
(453
)
(597
)
(549
)
Other operating expense (1)
(5,039
)
(6,644
)
(9,472
)
Share of profit from an
associate
-
-
4
Interest income
2,666
3,515
1,426
Other operating income
1,140
1,503
395
Profit before income
tax
29,663
39,115
32,962
Income tax expense
(5,419
)
(7,146
)
(7,952
)
Profit for the period
24,244
31,969
25,010
Item that will not be
reclassified to profit or loss:
Remeasurement of retirement
benefit obligation
(36
)
(47
)
924
Item that may be reclassified
subsequently to profit or loss:
Exchange differences on
translation of foreign operations
(8,313
)
(10,961
)
(16,179
)
Total comprehensive income for
the period
15,895
20,961
9,755
Profit
attributable to:
- Owners of TDCX Inc.
24,242
31,967
25,010
- Non-controlling interests
2
2
-
24,244
31,969
25,010
Total
comprehensive income attributable to:
- Owners of TDCX Inc.
15,893
20,959
9,755
- Non-controlling interests
2
2
-
15,895
20,961
9,755
Basic earnings per share (in US$
or S$) (2)
0.17
0.22
0.17
Diluted earnings per share (in
US$ or S$) (2)
0.17
0.22
0.17
_______________________________
(1) We reported foreign exchange gains or losses, as applicable,
on a net basis for the relevant period under the “other operating
expense” line item. (2) Basic and diluted earnings per share
For the three months ended
December 31,
2023
2022
Weighted average number of
ordinary shares for the purposes of basic earnings per share
144,210,719
144,921,462
Weighted average number of
ordinary shares for the purposes of diluted earnings per share
144,210,719
144,921,462
The translation of Singapore Dollar amounts into United States
Dollar amounts (“USD”) for the unaudited condensed interim
consolidated statement of profit or loss and other comprehensive
income above are included solely for the convenience of readers
outside of Singapore and have been made at the rate of S$1.3186 to
US$1.00, the approximate rate of exchange at December 31, 2023.
Such translations should not be construed as representations that
the Singapore Dollar amounts could be converted into USD at that or
any other rate.
Comparison of the Three Months Ended December 31, 2023 and
2022
Revenue. Our revenue decreased by 10.1% to S$158.8
million (US$120.4 million) for the three months ended December 31,
2023 from S$176.7 million for the three months ended December 31,
2022 primarily driven by a 36.7% decrease in revenue from content,
trust and safety services, a 12.1% decrease in revenue from sales
and digital marketing services and 1.9% decrease in revenue from
omnichannel CX solutions services rendered. Revenue from other
services increased by 20.9%.
- Our revenue from omnichannel CX solutions services decreased by
1.9% to S$96.5 million (US$73.2 million) from S$98.5 million for
the corresponding period of 2022 primarily impacted by lower
volumes requirement by existing clients in the digital advertising
and media and fintech sectors, buffered partially by increased
demand by clients in the gaming, technology, travel and
hospitality, e-commerce, fast-moving consumer goods verticals and
new food delivery customer.
- Our revenue from sales and digital marketing services decreased
by 12.1% to S$43.0 million (US$32.6 million) from S$48.9 million
for the same period of 2022 mainly attributed to declined volume
requirements of existing campaign by key digital advertising
clients and media and e-commerce sectors.
- Our revenue from content, trust and safety services decreased
by 36.7% to S$17.7 million (US$13.5 million) from S$28.1 million
for the same period of 2022 primarily due to the contraction of
volumes requirement by the digital advertising and media vertical
client.
- Our revenue from our other service fees increased by 20.9% to
S$1.5 million (US$1.1 million) from S$1.2 million for the same
period of 2022 primarily due to an expansion of existing
campaigns.
The following table sets forth our service provided by amount
for the three months ended December 31, 2023 and 2022.
For the three months ended
December 31,
2023
2022
US$’000
S$’000
S$’000
Revenue by service
Omnichannel CX solutions
73,216
96,542
98,452
Sales and digital marketing
32,634
43,032
48,942
Content, trust and safety
13,460
17,749
28,052
Other service fees #
1,124
1,481
1,225
Total revenue
120,434
158,804
176,671
# Other service fees comprise revenue from other business
process services and revenue from other services.
Employee Benefits Expense. Our employee benefits expense
decreased by 14.5% to S$98.2 million (US$74.5 million) from S$114.8
million for the same period of 2022 due mainly to a reversal of
equity-settled share-based payment expense resulting from revised
vesting expectation of the remaining tranche against the backdrop
of more headwinds in the recent business dynamics that also
contributed to the lower headcount volume requirements by customer
campaigns.
Depreciation and Amortization Expense. Our depreciation
and amortization expense remained stable during the two comparative
periods.
Rental and Maintenance Expense. Our rental and
maintenance expenses decreased by 10.9% to S$2.4 million (US$1.8
million) from S$2.7 million for the same period of 2022 primarily
due to the decreased technology device renting and relocation of
office space by the Korean unit from co-working space to a long
term leased facilities in 2023.
Recruitment Expense. Our recruitment expense decreased by
24.7% to S$2.6 million (US$1.9 million) from S$3.4 million for the
same period of 2022, primarily due to lower hiring activities in
several key operating sites reflecting the volume downturn.
Transport and Travelling Expense. Our transport and
travelling expenses decreased by 35.1% to S$0.4 million (US$0.3
million) from S$0.7 million for the same period of 2022 primarily
due to lower logistical costs incurred by the Philippines site on
the back of the reduction in the remote and work from home working
arrangements in 2023.
Telecommunication and Technology Expense. Our
telecommunication and technology expenses remained stable during
the two comparative periods.
Interest Expense. Our interest expense increased by 8.7%
to $0.6 million (US$0.5 million) from $0.5 million for the same
period of 2022 on account of mainly higher lease liability interest
from office spaces taken up by new and existing sites.
Other Operating Expense. Our other operating expense
decreased by 29.9% to S$6.6 million (US$5.0 million) from S$9.5
million for the same period of 2022 primarily due to lower net
foreign exchange loss.
Share of Profit from an Associate. This relates to our
share of profit from an associated company in Hong Kong which later
became a wholly-owned subsidiary on October 13, 2022 following the
acquisition of the controlling shares in that business.
Interest Income. Our interest income increased by 146.5%
to S$3.5 million (US$2.7 million) from S$1.4 million for the same
period of 2022 primarily due to higher placements of excess liquid
funds in interest earning deposits as well as the increase in
interest rates in 2023.
Other Operating Income. Our other operating income
increased by 280.5% to S$1.5 million (US$1.1 million) from S$0.4
million for the same period of 2022 primarily due to the increase
in the fair value gain of financial assets measured at fair value
through profit or loss.
Profit Before Income Tax. As a result of the foregoing,
we achieved a profit before income tax of S$39.1 million (US$29.7
million) for the three months ended December 31, 2023 (S$33.0
million for the corresponding period of 2022).
Income Tax Expense. Our income tax expense decreased by
10.1% to S$7.1 million (US$5.4 million) from S$7.9 million for the
same period of 2022 primarily due to the reinstatement of tax
incentive in the Philippines that was suspended in 2022 and one-off
prosperity tax levied in Malaysia that was implemented in 2022.
Profit for the Period. As a result of the foregoing, our
profit for the period increased by 27.8% to S$32.0 million (US$24.2
million) from S$25.0 million for the same period of 2022.
Exchange differences on translation of foreign
operations. Exchange differences on translation of foreign
operations recognized in other comprehensive income was a loss of
S$11.0 million (US$8.3 million) and a loss of S$16.2 million for
the same period in 2022, resulting from the strengthening of the
Singapore Dollar against the respective functional currencies of
the foreign operations. The exchange losses on translation of
foreign operations for the period decreased by 32.3% as compared to
the same period in 2022 as the extent of strengthening of the
Singapore Dollar against those functional currencies is lesser in
2023.
Total Comprehensive Income for the Period. As a result of
the foregoing, our total comprehensive income for the period
increased by 114.9% to S$21.0 million (US$15.9 million) from S$9.8
million for the same period of 2022.
Additional Adjustments to Certain Non-IFRS Financial
Measures
With effect from January 1, 2023, we have decided to include
adjustments for net foreign exchange gains or losses and
acquisition-related professional fees in Adjusted EBITDA, Adjusted
Net Income and Adjusted EPS, in addition to an adjustment for
equity-settled share-based payment expense (or net reversal) that
was included in such previously reported non-IFRS measures in prior
periods. Over the course of the previous year, we have identified
such additional items as not indicative of our ongoing operating
performance, and adjusting for such items is meaningful and useful
to readers to understand the underlying performance of the business
by eliminating the impact of certain items that may obscure trends
in the underlying performance of the business. For further
information, see “Non-IFRS Financial Measures” below.
Share Repurchase Program
On March 14, 2022, we announced that the board of directors had
approved a US$30.0 million share repurchase program. The share
repurchase program commenced on March 14, 2022. The repurchase
program has no expiration date and may be suspended, modified or
discontinued at any time without prior notice. We expect to fund
repurchases under this program with our existing cash balance.
Our proposed repurchases may be made from time to time on the
open market at prevailing market prices, in privately negotiated
transactions, in block trades, and/or through other legally
permissible means, depending on market conditions and in accordance
with applicable rules and regulations and its insider trading
policy. Our board of directors will review the share repurchase
program periodically and may authorize adjustment of its terms and
size. All share repurchases are subject to and will be carried out,
if at all, in accordance with applicable regulatory
requirements.
From October 1, 2023 to December 31, 2023, we purchased 418,187
American Depositary Shares (ADSs) at a cost of US$2,169,000 under
our share repurchase program. No repurchases of ADSs were made from
January 1, 2024 to March 4, 2024.
NON-IFRS FINANCIAL MEASURES
EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted Net Income, Adjusted Net Income margin, Adjusted EPS,
revenue at constant currency, and revenue growth at constant
currency are non-IFRS financial measures. TDCX monitors EBITDA,
EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
Net Income, Adjusted Net Income margin, Adjusted EPS, revenue at
constant currency and revenue growth at constant currency because
they assist the Company in comparing its operating performance on a
consistent basis by removing the impact of items not directly
resulting from its core operations.
EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA
margin
“EBITDA” represents profit for the period before interest
expense, interest income, income tax expense, and depreciation and
amortization expense. “EBITDA margin” represents EBITDA as a
percentage of revenue. “Adjusted EBITDA” represents profit for the
period before interest expense, interest income, income tax
expense, depreciation and amortization expense, equity-settled
share-based payment expense (or net reversal) incurred in
connection with our Performance Share Plan, net foreign exchange
gain or loss and acquisition-related professional fees. “Adjusted
EBITDA margin” represents Adjusted EBITDA as a percentage of
revenue.
For the three months ended
December 31,
2023
2022 (4)
US$’000
S$’000
Margin
S$’000
Margin
Revenue
120,434
158,804
—
176,671
—
Profit for the period and net
profit margin
24,244
31,969
20.1
%
25,010
14.2
%
Adjustments for:
Depreciation and amortization
expense
8,112
10,696
6.7
%
10,672
6.0
%
Income tax expense
5,419
7,146
4.5
%
7,952
4.5
%
Interest expense
453
597
0.4
%
549
0.3
%
Interest income
(2,666
)
(3,515
)
(2.2
%)
(1,426
)
(0.8
%)
EBITDA and EBITDA margin
35,562
46,893
29.5
%
42,757
24.2
%
Adjustment:
Equity-settled share-based
payment
(net reversal) / expense (1)
(4,255
)
(5,610
)
(3.5
%)
4,112
2.3
%
Net foreign exchange loss (2)
1,343
1,771
1.1
%
6,025
3.4
%
Acquisition-related professional
fees (3)
107
141
0.1
%
—
—
Adjusted EBITDA and Adjusted
EBITDA margin
32,757
43,195
27.2
%
52,894
29.9
%
For the Full Year ended December
31,
2023
2022 (5)
US$’000
S$’000
Margin
S$’000
Margin
Revenue
499,280
658,351
—
664,120
—
Profit for the period and net
profit margin
91,120
120,150
18.3
%
104,938
15.8
%
Adjustments for:
Depreciation and amortization
expense
33,069
43,605
6.6
%
39,731
6.0
%
Income tax expense
19,948
26,304
4.0
%
37,049
5.5
%
Interest expense
1,651
2,177
0.3
%
1,936
0.3
%
Interest income
(8,867
)
(11,692
)
(1.8
%)
(3,348
)
(0.5
%)
EBITDA and EBITDA margin
136,921
180,544
27.4
%
180,306
27.1
%
Adjustment:
Equity-settled share-based
payment
(net reversal) / expense (1)
(6,907
)
(9,108
)
(1.4
%)
19,465
2.9
%
Net foreign exchange gain (2)
(323
)
(426
)
(0.1
%)
(1,761
)
(0.2
%)
Acquisition-related professional
fees (3)
1,271
1,676
0.3
%
—
—
Adjusted EBITDA and Adjusted
EBITDA margin
130,962
172,686
26.2
%
198,010
29.8
%
_______________________________
(1) Refer to equity-settled share-based payment expense (or net
reversal) arising from TDCX Performance Share Plan.
(2) Refer to realized and unrealized losses or gains resulting
from changes in exchange rates between the functional currency and
the currency in which a foreign currency transaction is
denominated, net of unrealized losses or gains resulting from
change in fair value of derivatives. The amount of adjustment for
net foreign exchange loss or gain previously reported in prior
periods did not include unrealized losses or gains resulting from
change in fair value of derivatives. In order to place the current
disclosure in the appropriate context and enhance its
comparability, similar adjustments have been made for net foreign
exchange loss and net foreign exchange gain for the three months
and full year ended December 31, 2022.
(3) Refer to fees incurred on third-party service providers in
connection with a discontinued acquisition.
(4) The reported amounts for Adjusted EBITDA for the three
months ended December 31, 2023 include adjustments for certain
items (i.e., acquisition-related professional fees and net foreign
exchange gains or losses) which were not included in similar
non-IFRS financial measures previously reported in prior periods.
In order to place the current disclosure in the appropriate context
and enhance its comparability, similar adjustments have been made
for Adjusted EBITDA for the three months ended December 31,
2022.
(5) The reported amounts for Adjusted EBITDA for the full year
ended December 31, 2023 include adjustments for certain items
(i.e., acquisition-related professional fees and net foreign
exchange gains or losses) which were not included in similar
non-IFRS financial measures previously reported in prior periods.
In order to place the current disclosure in the appropriate context
and enhance its comparability, similar adjustments have been made
for Adjusted EBITDA for the full year ended December 31, 2022.
Adjusted Net Income and Adjusted Net Income margin
“Adjusted Net Income” represents profit for the period before
equity-settled share-based payment expense (or net reversal)
incurred in connection with our Performance Share Plan, net foreign
exchange gain or loss and acquisition-related professional fees,
net of any tax impact of such adjustments. “Adjusted Net Income
margin” represents Adjusted Net Income as a percentage of
revenue.
For the three months ended
December 31,
2023
2022 (4)
US$’000
S$’000
Margin
S$’000
Margin
Profit for the period and net
profit margin
24,244
31,969
20.1
%
25,010
14.2
%
Adjustment for:
Equity-settled share-based
payment
(net reversal) / expense (1)
(4,255
)
(5,610
)
(3.5
%)
4,112
2.3
%
Net foreign exchange loss (2)
1,097
1,447
0.9
%
4,466
2.5
%
Acquisition-related professional
fees (3)
107
141
0.1
%
—
—
Adjusted Net Income and Adjusted
Net Income margin
21,193
27,947
17.6
%
33,588
19.0
%
For the Full Year ended December
31,
2023
2022 (5)
US$’000
S$’000
Margin
S$’000
Margin
Profit for the period and net
profit margin
91,120
120,150
18.3
%
104,938
15.8
%
Adjustment for:
Equity-settled share-based
payment
(net reversal) / expense (1)
(6,907
)
(9,108
)
(1.4
%)
19,465
2.9
%
Net foreign exchange gain (2)
(265
)
(349
)
(0.1
%)
(1,291
)
(0.2
%)
Acquisition-related professional
fees (3)
1,271
1,676
0.3
%
—
—
Adjusted Net Income and Adjusted
Net Income margin
85,219
112,369
17.1
%
123,112
18.5
%
_______________________________
(1) Refer to equity-settled share-based payment expense (or net
reversal) arising from TDCX Performance Share Plan.
(2) Refer to realized and unrealized losses or gains resulting
from changes in exchange rates between the functional currency and
the currency in which a foreign currency transaction is
denominated, net of unrealized losses or gains resulting from
change in fair value of derivatives and net of tax effects. The
amount of adjustment for net foreign exchange loss or gain
previously reported in prior periods did not include unrealized
losses or gains resulting from change in fair value of derivatives.
In order to place the current disclosure in the appropriate context
and enhance its comparability, similar adjustments have been made
for net foreign exchange loss and net foreign exchange gain for the
three months and full year ended December 31, 2022.
(3) Refer to fees incurred on third-party service providers in
connection with a discontinued acquisition.
(4) The reported amounts for Adjusted Net Income for the three
months ended December 31, 2023 include adjustments for certain
items (i.e., acquisition-related professional fees and net foreign
exchange gains or losses) which were not included in similar
non-IFRS financial measures previously reported in prior periods.
In order to place the current disclosure in the appropriate context
and enhance its comparability, similar adjustments have been made
for Adjusted Net Income for the three months ended December 31,
2022.
(5) The reported amounts for Adjusted Net Income for the full
year ended December 31, 2023, include adjustments for certain items
(i.e., acquisition-related professional fees and net foreign
exchange gains or losses) which were not included in similar
non-IFRS financial measures previously reported in prior periods.
In order to place the current disclosure in the appropriate context
and enhance its comparability, similar adjustments have been made
for Adjusted Net Income for the full year ended December 31,
2022.
Adjusted EPS
“Adjusted EPS” represents earnings available to shareholders
excluding the impact of equity-settled share-based payment expense
(or net reversal), net foreign exchange gain or loss and
acquisition-related professional fees.
Adjusted EPS is calculated as earnings available to shareholders
excluding the impact of equity-settled share-based payment expense
(or net reversal), net foreign exchange gain or loss and
acquisition-related professional fees, divided by the diluted
weighted-average number of shares outstanding.
For the three months ended
December 31,
2023
2022 (4)
Amount
Per Share
Amount
Per Share
Amount
Per Share
US$’000
US$
S$’000
S$
S$’000
S$
Reported earnings available to
shareholders and EPS
24,242
0.17
31,967
0.22
25,010
0.17
Adjustments for:
Equity-settled share-based
payment (net reversal) / expense (1)
(4,255
)
(0.03
)
(5,610
)
(0.04
)
4,112
0.03
Net foreign exchange loss (2)
1,097
0.01
1,447
0.01
4,466
0.03
Acquisition-related professional
fees (3)
107
—*
141
—*
—
—
Adjusted earnings available to
shareholders and Adjusted EPS
21,191
0.15
27,945
0.19
33,588
0.23
For the Full Year ended December
31,
2023
2022 (5)
Amount
Per Share
Amount
Per Share
Amount
Per Share
US$’000
US$
S$’000
S$
S$’000
S$
Reported earnings available to
shareholders and EPS
91,076
0.63
120,092
0.83
104,936
0.72
Adjustments for:
Equity-settled share-based
payment (net reversal) / expense (1)
(6,907
)
(0.05
)
(9,108
)
(0.06
)
19,465
0.13
Net foreign exchange gain (2)
(265
)
—*
(349
)
—*
(1,291
)
—*
Acquisition-related professional
fees (3)
1,271
0.01
1,676
0.01
—
—
Adjusted earnings available to
shareholders and Adjusted EPS
85,175
0.59
112,311
0.78
123,110
0.85
* Amount is immaterial on a per share basis.
_________________________
(1) Refer to equity-settled share-based payment expense arising
from TDCX Performance Share Plan.
(2) Refer to realized and unrealized losses or gains resulting
from changes in exchange rates between the functional currency and
the currency in which a foreign currency transaction is
denominated, net of unrealized losses or gains resulting from
change in fair value of derivatives and net of tax effects. The
amount of adjustment for net foreign exchange loss or gain
previously reported in prior periods did not include unrealized
losses or gains resulting from change in fair value of derivatives.
In order to place the current disclosure in the appropriate context
and enhance its comparability, similar adjustments have been made
for net foreign exchange loss and net foreign exchange gain for the
three months and full year ended December 31, 2022.
(3) Refer to fees incurred on third-party service providers in
connection with a discontinued acquisition.
(4) The reported amounts for Adjusted EPS for the three months
ended December 31, 2023 include adjustments for certain items
(i.e., acquisition-related professional fees and net foreign
exchange gains or losses) which were not included in similar
non-IFRS financial measures previously reported in prior periods.
In order to place the current disclosure in the appropriate context
and enhance its comparability, similar adjustments have been made
for Adjusted EPS for the three months ended December 31, 2022.
(5) The reported amounts for Adjusted EPS for the full year
ended December 31, 2023 include adjustments for certain items
(i.e., acquisition-related professional fees and net foreign
exchange gains or losses) which were not included in similar
non-IFRS financial measures previously reported in prior periods.
In order to place the current disclosure in the appropriate context
and enhance its comparability, similar adjustments have been made
for Adjusted EPS for the full year ended December 31, 2022.
Revenue at Constant Currency and Revenue Growth at Constant
Currency
Revenue at constant currency, which is revenue adjusted for the
translation effect of foreign currencies so that certain financial
results can be viewed without the impact of fluctuations in foreign
currency exchange rates, thereby facilitating period-to-period
comparisons of our business performance. Revenue at constant
currency is calculated by translating the revenue of our local
subsidiaries in each period in the respective local functional
currencies to TDCX Inc.’s and its consolidated subsidiaries’
(together, the “Group”) presentation currency, using the average
currency conversion rates in effect during the comparable prior
period (rather than at the actual currency conversion rates in
effect during the current reporting period). Revenue growth at
constant currency means the period-over-period change in revenue at
constant currency compared against revenue in the prior period.
For the three months ended
December 31,
2023
2023
2022
S$’000
S$’000
S$’000
As reported
At constant currency
As reported
Revenue growth as reported
Foreign exchange impact
Revenue growth at constant
currency
Revenue
158,804
167,318
176,671
(10.1)%
4.8%
(5.3)%
For the Full Year ended December
31,
2023
2023
2022
S$’000
S$’000
S$’000
As reported
At constant currency
As reported
Revenue growth as reported
Foreign exchange impact
Revenue growth at constant
currency
Revenue
658,351
684,143
664,120
(0.9)%
3.9%
3.0%
The Company has not reconciled non-IFRS forward-looking revenue
growth at constant currency to its most directly comparable IFRS
measure, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. The
revenue growth outlook indicated for 2024 is calculated and
presented at constant currency, as it would require unreasonable
efforts to predict factors that are out of the Company’s control or
are not readily predictable, such as currency exchange movements
over the course of an entire year.
The Company uses revenue at constant currency and revenue growth
at constant currency, which are supplemental non-IFRS financial
measures, to provide better comparability of revenue trends
period-over-period (without the impact of fluctuations in foreign
currency exchange rates) because it is a global company that
transacts business in multiple currencies and reports financial
information in the Group’s functional reporting currency. Foreign
currency exchange rate fluctuations affect the amounts reported by
the Company in the Group’s functional reporting currency with
respect to its foreign revenues. Generally, when the Group’s
functional reporting currency dollar either strengthens or weakens
against other currencies, revenue at constant currency rates and
revenue growth at constant currency rates will be higher or lower
than revenue and revenue growth reported at actual exchange
rates.
The Company believes that non-IFRS financial measures such as
EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted Net Income, Adjusted Net Income margin, Adjusted EPS,
revenue at constant currency and revenue growth at constant
currency help us to identify underlying trends in our operating
results, enhancing our understanding of past performance and future
prospects.
While the Company believes that such non-IFRS financial measures
provide useful information to investors in understanding and
evaluating the Company’s results of operations in the same manner
as its management, the Company’s use of such non-IFRS financial
measures have limitations as analytical tools and you should not
consider these in isolation or as a substitute for analysis of the
Company’s results of operations or financial condition as reported
under IFRS.
TDCX’s non-IFRS financial measures do not reflect all items of
income and expense that affect the Company’s operations and do not
represent the residual cash flow available for discretionary
expenditures. Further, these non-IFRS measures may differ from the
non-IFRS information used by other companies, including peer
companies, and therefore their comparability may be limited. The
Company compensates for these limitations by reconciling the
non-IFRS financial measures to the nearest IFRS performance
measure, all of which should be considered when evaluating
performance. The Company encourages you to review the company’s
financial information in its entirety and not rely on any single
financial measure.
The translation of Singapore Dollar amounts into United States
Dollar amounts for the unaudited condensed interim consolidated
statement of profit or loss and other comprehensive income above
are included solely for the convenience of readers outside of
Singapore and have been made at the rate of S$1.3186 to US$1.00,
the approximate rate of exchange at December 31, 2023. Such
translations should not be construed as representations that the
Singapore Dollar amounts could be converted into USD at that or any
other rate.
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
For the Full Year ended December
31,
2023
2022
US$’000
S$’000
S$’000
Revenue
499,280
658,351
664,120
Employee benefits expense
(321,986
)
(424,571
)
(436,350
)
Depreciation and amortization
expense
(33,069
)
(43,605
)
(39,731
)
Rental and maintenance
expense
(9,116
)
(12,021
)
(9,980
)
Recruitment expense
(7,666
)
(10,109
)
(14,201
)
Transport and travelling
expense
(1,192
)
(1,572
)
(1,637
)
Telecommunication and technology
expense
(10,394
)
(13,705
)
(11,822
)
Interest expense
(1,651
)
(2,177
)
(1,936
)
Other operating expense (1)
(15,161
)
(19,991
)
(14,699
)
Share of profit from an
associate
-
-
139
Interest income
8,867
11,692
3,348
Other operating income
3,156
4,162
4,736
Profit before income
tax
111,068
146,454
141,987
Income tax expenses
(19,948
)
(26,304
)
(37,049
)
Profit for the year
91,120
120,150
104,938
Item that will not be
reclassified to profit or loss:
Remeasurement of retirement
benefit obligation
(36
)
(47
)
924
Item that may be reclassified
subsequently to profit or loss:
Exchange differences on
translation of foreign operations
(11,062
)
(14,586
)
(14,432
)
Total comprehensive income for
the year
80,022
105,517
91,430
Profit
attributable to:
- Owners of the Group
91,076
120,092
104,936
- Non-controlling interests
44
58
2
91,120
120,150
104,938
Total
comprehensive income attributable to:
- Owners of the Group
79,978
105,459
91,428
- Non-controlling interests
44
58
2
80,022
105,517
91,430
Basic earnings per share (in S$)
(2)
0.63
0.83
0.72
Diluted earnings per share (in
S$) (2)
0.63
0.83
0.72
_______________________________
(1) We reported foreign exchange gains or losses, as applicable,
on a net basis for the relevant period under the “other operating
expense” line item. (2) Basic and diluted earnings per share
For the Full Year ended December
31,
2023
2022
Weighted average number of
ordinary shares for the purposes of basic earnings per share
144,785,247
145,298,557
Weighted average number of
ordinary shares for the purposes of diluted earnings per share
144,825,713
145,298,557
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of December 31, 2023
As of December 31, 2022
US$’000
S$’000
S$’000
ASSETS
Current assets
Cash and cash equivalents
342,671
451,849
389,100
Fixed and pledged deposits
-
-
6,551
Trade receivables
81,711
107,744
88,808
Contract assets
39,469
52,044
58,808
Other receivables
10,706
14,117
15,885
Financial assets measured at fair
value through profit or loss
42,803
56,440
29,776
Income tax receivable
194
256
354
Total current assets
517,554
682,450
589,282
Non-current assets
Pledged deposits
453
597
584
Goodwill and intangible
assets
2,052
2,706
2,924
Other receivables
4,870
6,421
5,019
Plant and equipment
23,368
30,813
41,292
Right-of-use assets
30,912
40,760
35,236
Deferred tax assets
2,535
3,342
3,463
Total non-current assets
64,190
84,639
88,518
Total assets
581,744
767,089
677,800
LIABILITIES AND EQUITY
Current liabilities
Trade payables (1)
2,388
3,149
5,354
Accrued operating expenses
(1)
34,708
45,766
44,369
Lease liabilities
20,306
26,775
17,818
Provision for reinstatement
cost
1,742
2,297
5,282
Income tax payable
8,596
11,335
16,560
Total current liabilities
67,740
89,322
89,383
Non-current
liabilities
Lease liabilities
12,773
16,843
20,644
Provision for reinstatement
cost
5,302
6,992
3,572
Defined benefit obligation
1,918
2,529
1,497
Deferred tax liabilities
896
1,182
852
Total non-current liabilities
20,889
27,546
26,565
Capital, reserves and
non-controlling interests
Share capital
15
20
19
Reserves
142,502
187,903
219,590
Retained earnings
350,567
462,257
342,260
Equity attributable to owners of
the Group
493,084
650,180
561,869
Non-controlling interests
31
41
(17
)
Total equity
493,115
650,221
561,852
Total liabilities and
equity
581,744
767,089
677,800
The translation of Singapore Dollar amounts into United States
Dollar amounts for the unaudited condensed interim consolidated
statement of financial position above are included solely for the
convenience of readers outside of Singapore and have been made at
the rate of S$1.3186 to US$1.00, the approximate rate of exchange
at December 31, 2023. Such translations should not be construed as
representations that the Singapore Dollar amounts could be
converted into USD at that or any other rate.
(1) As at December 31, 2023, we have segregated the Other
payable balance reported in prior periods’ statement of financial
position to Trade Payable and Accrued Operating Expenses to better
reflect the nature of payables. As a result, the comparative
figures in the statement of financial position of December 31, 2022
have been adjusted to conform to the current year’s
presentation.
UNAUDITED CONDENSED INTERIM
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Full Year ended December
31,
2023
2022
US$’000
S$’000
S$’000
Operating activities
Profit before income tax
111,068
146,454
141,987
Adjustments for:
Depreciation and amortization
expense
33,069
43,605
39,731
Impairment loss on plant and
equipment
275
362
—
Allowance on trade and other
receivables
—
—
104
Changes in fair value of
financial assets at FVTPL
(1,362
)
(1,796
)
—
Equity-settled share-based
payment (net reversal) / expense
(6,907
)
(9,108
)
19,465
Provision for reinstatement
cost
—
—
387
Bank loan transaction cost
33
43
50
Interest income
(8,867
)
(11,692
)
(3,348
)
Interest expense
1,651
2,177
1,936
Retirement benefit service
cost
705
930
753
Loss on disposal and write-off of
plant and equipment
50
66
18
Share of profit from an
associate
—
—
(139
)
Fair value gain on previously
held equity interest
—
—
(139
)
Operating cash flows before
movements in working capital
129,715
171,041
200,805
Trade receivables
(16,276
)
(21,462
)
677
Contract assets
3,680
4,852
(12,601
)
Other receivables
(195
)
(257
)
(6,611
)
Trade payables and accrued
operating expenses
1,637
2,158
17,031
Cash generated from
operations
118,561
156,332
199,301
Interest received
8,867
11,692
3,348
Income tax paid
(23,514
)
(31,006
)
(38,140
)
Income tax refunded
121
159
42
Net cash from operating
activities
104,035
137,177
164,551
Investing activities
Purchase of plant and
equipment
(8,950
)
(11,801
)
(24,466
)
Proceeds from sales of plant and
equipment
23
30
136
Payment for restoration of
office
(61
)
(81
)
—
Placement of fixed deposits
—
—
(154
)
Withdrawal of fixed deposits
4,796
6,324
1,900
Dividend income from
associate
—
—
161
Acquisition of a subsidiary, net
of cash acquired
—
—
(4,214
)
Investment in financial assets
measured at fair value through profit or loss
(19,674
)
(25,942
)
(3,032
)
Net cash used in investing
activities
(23,866
)
(31,470
)
(29,669
)
Financing activities
Dividends paid
(30
)
(39
)
(39
)
Drawdown of bank loan
—
—
600
Repayment of lease
liabilities
(18,178
)
(23,970
)
(19,729
)
Interest paid
—
—
(215
)
Repayment of bank loan
—
—
(17,449
)
Repurchase of American Depositary
Shares
(6,998
)
(9,228
)
(13,620
)
Proceeds from issuance of
shares
—
—
1
Net cash used in financing
activities
(25,206
)
(33,237
)
(50,451
)
Net increase in cash and cash
equivalents
54,963
72,470
84,431
Effect of foreign exchange rate
changes on cash held in foreign currencies
(7,378
)
(9,721
)
(8,478
)
Cash and cash equivalents at
beginning of period
295,086
389,100
313,147
Cash and cash equivalents at
end of period
342,671
451,849
389,100
The translation of Singapore Dollar amounts into United States
Dollar amounts for the unaudited condensed interim consolidated
statement of cash flows above are included solely for the
convenience of readers outside of Singapore and have been made at
the rate of S$1.3186 to US$1.00, the approximate rate of exchange
at December 31, 2023. Such translations should not be construed as
representations that the Singapore Dollar amounts could be
converted into USD at that or any other rate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240306726798/en/
For enquiries, please contact: Investors / Analysts:
Joana Cheong investors@tdcx.com
Media: Eunice Seow eunice.seow@tdcx.com
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