TDCX Reports Record FY2021 Revenue and Profit, Adds Record 20 Logos in 2021
SINGAPORE–(BUSINESS WIRE)–TDCX Inc. (NYSE: TDCX) (“TDCX” or the “Company”), a leading high-growth digital customer experience solutions provider for technology and blue-chip companies, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2021.
Full Year 2021 Financial Highlights
- Achieved record Revenue, Profit for the year and Adjusted EBITDA1,3
- Total revenue of US$410.7 million, representing 27.7% year-on-year growth
- Profit for the period of US$76.8 million, representing 20.6% year-on-year growth
- Adjusted EBITDA1,3 of US$136.9 million, representing 29.4% year-on-year growth
- FY2021 Adjusted EBITDA margin1,3 of 33.3%, compared to 32.9% for FY2020
Fourth Quarter 2021 Financial Highlights
- Total revenue of US$114.5 million, representing 28.8% year-on-year growth
- Profit for the period of US$21.3 million, representing 7.0% year-on-year growth. This included a US$3.9 million equity-settled share-based payment expense under the TDCX Performance Share Plan, which commenced in the fourth quarter of 2021
- Adjusted EBITDA1,3 of US$39.9 million, representing 26.1% year-on-year growth
Mr. Laurent Junique, Chief Executive Officer and Founder of TDCX, said, “We end the year on a high note with record revenue and earnings. In 2021, we successfully listed on the New York Stock Exchange, welcomed our highest number of new clients in a year from high-growth sectors and delivered operationally by increasing headcount by 30 per cent and expanding into new geographies.
“These achievements are the result of our unwavering commitment and focus on pursuing long-term, quality growth. It is also a testament to our ability to solve complex customer experience challenges for new economy players and to help established firms transform their customer experiences.
“We are confident that these factors provide us with an even stronger foundation for growth. This is only the beginning of an exciting journey for TDCX. We thank our stakeholders for their continued support.”
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FY2020 |
FY2021 |
% |
Q4 2020 |
Q4 2021 |
% |
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Revenue (US$ million)2 |
321.6 |
410.7 |
+27.7% |
88.9 |
114.5 |
+28.8% |
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Profit for the Period (US$ million) 2 |
63.7 |
76.8 |
+20.6% |
19.9 |
21.3 |
+7.0% |
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Adjusted EBITDA1,2,3 (US$ million) |
105.7 |
136.9 |
+29.4% |
31.6 |
39.9 |
+26.1% |
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Adjusted EBITDA Margins1,3 (%) |
32.9% |
33.3% |
|
35.6% |
34.8% |
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Business Highlights
Accelerated Client Additions
- Added 20 new logos in FY2021, more than double the nine logos added in FY2020
- 52 clients as at 31 December 2021, a 37% increase compared with 38 as at 31 December 2020
- Revenue contribution from new economy4 clients stood at 93.1% for FY2021
Continued Geographic Expansion
- Opened new office in South Korea in Q4 2021, with three projects launched
- Recognized maiden revenue contribution from Romania, India and South Korea in Q4 2021
Full year 2022 Outlook
For the full year 2022, TDCX expects its financial results to be:
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2022 Outlook |
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Revenue (in millions)2 |
US$510 to US$519 or S$689 to S$702
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Revenue growth (YoY) at midpoint |
25.3%
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Adjusted EBITDA margin1,3 |
Approximately 30.0% to 32.0%
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| ________________________ |
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1 Adjusted EBITDA or Adjusted EBITDA margins are supplemental non-IFRS financial measures and should not be considered in isolation or as a substitute for financial results reported under IFRS (see “Reconciliations of non-IFRS financial measures to the nearest comparable IFRS measures” in the Form 6-K or presentation slides for more details). |
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2 FX rate of US$1 = SG$1.3517 assumed in converting financials from SG dollar to US dollar. |
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3 Adjusted EBITDA represents profit for the period before interest expense, interest income, income tax expense, depreciation expense and equity-settled share-based payment expense incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue. |
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4 “new economy” refers to high growth industries that are on the cutting edge of digital technology and are the driving forces of economic growth |
Webcast and Conference Call Information
The TDCX senior management will host a conference call to discuss the fourth quarter and full year 2021 unaudited financial results.
A live webcast of this conference call will be available on TDCX’s website. Access information on the conference call and webcast is as follows:
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Date and time: |
March 9, 2022, 7:30 AM (U.S. Eastern Time) |
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March 9, 2022, 8:30 PM (Singapore / Hong Kong Time) |
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Webcast link: |
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Dial in numbers: |
USA Toll Free: +1 855 2656958 |
UK Toll Free +44 0 800 0156371 |
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Singapore: +65 3158 0246 |
Hong Kong: +852 5808 0984 |
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International: +1 718 7058796 |
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A replay of the conference call will be available at TDCX’s investor relations website (investors.tdcx.com). An archived webcast will be available at the same link above.
About TDCX INC.
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, home sharing and travel, 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 14,000 employees across 26 campuses globally, specifically Singapore, where it is headquartered, Malaysia, Thailand, Philippines, Mainland China, Hong Kong, South Korea, Japan, India, Romania, Spain and Colombia. 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$1.3517 to US$1.00, the approximate rate in effect as of December 31, 2021. 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 Measure
To supplement our consolidated financial statements, which are prepared and presented in accordance with IFRS, we use the following non-IFRS financial measure to help evaluate our operating performance:
“EBITDA” represents profit for the year/period before interest expense, interest income, income tax expense and depreciation 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 expense and equity-settled share-based payment expense incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue. We believe that EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin help us to identify underlying trends in our operating results, enhancing our understanding of past performance and future prospects.
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, 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. Among other things, the outlook for the full year, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. 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; its ability to compete effectively; its ability to maintain its pricing, control costs or continue to grow its business; the effects of the novel coronavirus (COVID-19) on its business; the continued service of its founder and certain of its key employees and management; its ability to attract and retain enough highly trained employees; its exposure to various risks in Southeast Asia; its contractual relationship with key clients; clients and prospective clients’ spending on omnichannel CX solutions; 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 the attachments 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 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
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For the Three Months ended December 31, |
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2021 |
2020 |
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US$’000 |
S$’000 |
US$’000 |
S$’000 |
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Revenue |
114,495 |
154,763 |
88,906 |
120,174 |
|
Employee benefits expense |
(72,260) |
(97,674) |
(50,945) |
(68,863) |
|
Depreciation expense |
(7,106) |
(9,605) |
(6,594) |
(8,913) |
|
Rental and maintenance expense |
(1,548) |
(2,092) |
(1,793) |
(2,423) |
|
Recruitment expense |
(2,471) |
(3,340) |
(1,650) |
(2,230) |
|
Transport and travelling expense |
(352) |
(476) |
(172) |
(232) |
|
Telecommunication and technology expense |
(1,844) |
(2,493) |
(1,251) |
(1,691) |
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Interest expense |
(1,453) |
(1,964) |
(582) |
(787) |
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Other operating expense |
(1,885) |
(2,548) |
(3,086) |
(4,171) |
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Share of profit from an associate |
17 |
23 |
145 |
196 |
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Interest income |
186 |
251 |
125 |
169 |
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Other operating income |
1,887 |
2,551 |
1,468 |
1,984 |
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Profit before income tax |
27,666 |
37,396 |
24,571 |
33,213 |
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Income tax expenses |
(6,325) |
(8,550) |
(4,625) |
(6,251) |
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Profit for the period |
21,341 |
28,846 |
19,946 |
26,962 |
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Item that will not be reclassified to profit or loss: |
|
|
|
|
|
Remeasurement of retirement benefit obligation |
204 |
276 |
(134) |
(181) |
|
Item that may be reclassified subsequently to profit or loss: |
|
|
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Exchange differences on translation of foreign operations |
(2,089) |
(2,824) |
(792) |
(1,071) |
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Total comprehensive income for the period |
19,456 |
26,298 |
19,020 |
25,710 |
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Profit attributable to: |
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– Owners of the Group |
21,341 |
28,846 |
19,947 |
26,964 |
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– Non-controlling interests |
– |
– |
(1) |
(2) |
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|
21,341 |
28,846 |
19,946 |
26,962 |
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Total comprehensive income attributable to: |
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– Owners of the Group |
19,456 |
26,298 |
19,021 |
25,711 |
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– Non-controlling interests |
– |
– |
(1) |
(1) |
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19,456 |
26,298 |
19,020 |
25,710 |
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Basic earnings per share (in US$ or S$) |
0.15(1) |
0.20(1) |
0.16 |
0.22 |
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Diluted earnings per share (in US$ or S$) |
0.15(1) |
0.20(1) |
0.16 |
0.22 |
| ______________________ |
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(1) On October 1, 2021, we completed our initial public offering (“IPO”) of 19,358,957 American Depositary Shares (“ADSs”), each representing one Class A ordinary share of TDCX, and, on October 12, 2021, the underwriters exercised their overallotment option in respect of 2,903,843 ADSs pursuant to the option granted to the underwriters to purchase additional ADSs. On August 26, 2021, we adopted the TDCX Performance Share Plan (the “PSP”), which allows us to offer Class A ordinary shares or ADSs to our employees, officers, executive directors and consultants. On November 1, 2021, we issued awards to the first batch of participants of the PSP. We started recognizing the related equity-settled share-based payment expenses in the fourth quarter of 2021. Our earnings per share for the three months ended December 31, 2021 and for the full year ended December 31, 2021 includes the equity-settled share-based payment expenses under the PSP. As of December 31, 2021, none of the awards have vested. |
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
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For the Full Year ended December 31, |
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2021 |
2020 |
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US$’000 |
S$’000 |
US$’000 |
S$’000 |
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Revenue |
410,741 |
555,198 |
321,612 |
434,723 |
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Employee benefits expense |
(251,301) |
(339,683) |
(190,860) |
(257,985) |
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Depreciation expense |
(29,484) |
(39,853) |
(24,462) |
(33,065) |
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Rental and maintenance expense |
(7,274) |
(9,832) |
(7,844) |
(10,603) |
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Recruitment expense |
(8,052) |
(10,884) |
(5,922) |
(8,005) |
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Transport and travelling expense |
(1,081) |
(1,461) |
(1,113) |
(1,504) |
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Telecommunication and technology expense |
(6,530) |
(8,826) |
(4,664) |
(6,305) |
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Interest expense |
(6,225) |
(8,414) |
(2,262) |
(3,058) |
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Other operating expense |
(8,231) |
(11,126) |
(11,716) |
(15,836) |
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Gain on disposal of a subsidiary |
– |
– |
541 |
731 |
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Share of profit from an associate |
75 |
101 |
145 |
196 |
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Interest income |
402 |
544 |
439 |
594 |
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Other operating income |
4,672 |
6,315 |
5,559 |
7,514 |
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Profit before income tax |
97,712 |
132,079 |
79,453 |
107,397 |
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Income tax expenses |
(20,889) |
(28,237) |
(15,760) |
(21,303) |
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Profit for the period |
76,823 |
103,842 |
63,693 |
86,094 |
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Item that will not be reclassified to profit or loss: |
|
|
|
|
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Remeasurement of retirement benefit obligation |
204 |
276 |
(134) |
(181) |
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Item that may be reclassified subsequently to profit or loss: |
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|
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Exchange differences on translation of foreign operations |
(4,809) |
(6,500) |
530 |
717 |
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Total comprehensive income for the period |
72,218 |
97,618 |
64,089 |
86,630 |
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Profit attributable to: |
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– Owners of the Group |
76,822 |
103,841 |
63,692 |
86,093 |
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– Non-controlling interests |
1 |
1 |
1 |
1 |
|||
|
|
76,823 |
103,842 |
63,693 |
86,094 |
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Total comprehensive income attributable to: |
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– Owners of the Group |
72,217 |
97,617 |
64,088 |
86,629 |
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– Non-controlling interests |
1 |
1 |
1 |
1 |
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|
72,218 |
97,618 |
64,089 |
86,630 |
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Basic earnings per share (in US$ or S$) |
0.601 |
0.811 |
0.52 |
0.70 |
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Diluted earnings per share (in US$ or S$) |
0.601 |
0.811 |
0.52 |
0.70 |
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| _____________________ |
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(1) On October 1, 2021, we completed our IPO of 19,358,957 ADSs, each representing one Class A ordinary share of TDCX, and, on October 12, 2021, the underwriters exercised their overallotment option in respect of 2,903,843 ADSs pursuant to the option granted to the underwriters to purchase additional ADSs. On August 26, 2021, we adopted the TDCX Performance Share Plan (the “PSP”), which allows us to offer Class A ordinary shares or ADSs to our employees, officers, executive directors and consultants. On November 1, 2021, we issued awards to the first batch of participants of the PSP. We started recognizing the related equity-settled share-based payment expenses in the fourth quarter of 2021. Our earnings per share for the three months ended December 31, 2021 and for the full year ended December 31, 2021 includes the equity-settled share-based payment expenses under the PSP. As of December 31, 2021, none of the awards have vested. |
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$1.3517 to US$1.00, the approximate rate of exchange at December 31, 2021. 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, 2021 and 2020
Revenue. Our revenues increased by 28.8% to S$154.8 million (US$114.5 million) for the three months ended December 31, 2021 from S$120.2 million for the three months ended December 31, 2020 primarily due to a 23.6% increase in revenue from providing omnichannel Customer Experience (“CX”) solutions, and a 71.8% increase in revenues from providing sales and digital marketing services.
- Our revenues from omnichannel CX service solutions increased by 23.6% to S$96.1 million (US$71.1 million) from S$77.7 million for the same period in 2020 primarily due to higher business volumes driven by the expansion of existing campaigns. In addition, business volumes of our top two travel and hospitality sector clients benefited from the mild recovery from the impact of the COVID-19 pandemic whereby our revenue grew by 16%, as compared to the same period in 2020.
- Our revenues from sales and digital marketing services increased by 71.8% to S$34.6 million (US$25.6 million) from S$20.2 million for the same period in 2020 primarily due to the expansion of existing campaigns for our key clients in our digital advertising and media vertical.
- Our revenues from content monitoring and moderation services increased by 3.4% to S$21.7 million (US$16.0 million) from S$20.9 million for the same period last year primarily due to higher business volumes from an existing client in our digital advertising and media vertical.
- Our revenues from our other service fees increased by 80.0% to S$2.4 million (US$1.8 million) from S$1.3 million for the same period in 2020 primarily due to higher contribution from existing and new clients.
The following table sets forth our service provided by amount for the three months ended December 31, 2021 and 2020.
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For the Three Months ended December 31, |
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2021 |
2020 |
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US$’000 |
S$’000 |
US$’000 |
S$’000 |
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Revenue by service |
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Omnichannel CX solutions |
71,076 |
96,074 |
57,509 |
77,735 |
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Sales and digital marketing |
25,622 |
34,632 |
14,916 |
20,162 |
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Content monitoring and moderation |
16,025 |
21,660 |
15,495 |
20,945 |
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Other service fees |
1,772 |
2,397 |
986 |
1,332 |
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Total revenue |
114,495 |
154,763 |
88,906 |
120,174 |
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Employee Benefits Expense. Our employee benefits expense increased by 41.8% to S$97.7 million (US$72.3 million) from S$68.9 million for the same period in 2020 primarily tracking the increase in staff force, equity-settled share-based payment expense arising from the maiden implementation of our performance share plan (an employee share award plan) in November 2021, employee compensation adjustment with respect to individual employee performance and cost of living, talent retention and recruitment, and recognition bonus accorded to employees involved in the successful initial public offering. Our average number of employees in the three months ended December 31, 2021 increased 28.6% compared to the same period in 2020, as a result of business volumes expansion of current campaigns in 2021 and staffing requirements of new campaign launches in the second half of 2021.
Depreciation Expense. Our depreciation expense increased by 7.8% to S$9.6 million (US$7.1 million) from S$8.9 million for the same period in 2020 primarily due to depreciation on capital expenditures invested in new and expansion capacities in India, Colombia, Thailand and the Philippines to support the growth of our business. In addition, there was increased depreciation on renovations and right-of-use assets with respect to our property leases in Spain and Japan to replace the co-working space membership occupied previously. These were partially offset by certain of our assets being fully depreciated during the period.
Rental and Maintenance Expense. Our rental and maintenance expense decreased by 13.7% to S$2.1 million (US$1.5 million) from S$2.4 million for the same period in 2020 primarily due to the termination of certain co-working space memberships, pursuant to the relocation of our operations to own leased and fitted out office spaces.
Recruitment Expense. Our recruitment expense increased by 49.8% to S$3.3 million (US$2.5 million) from S$2.2 million for the same period in 2020 primarily due to increased expenses relating to higher referral and placement fees, and higher expenses associated with immigration, work permits and onboarding of foreign employees induced by COVID-19-related procedural regulations implemented by governmental authorities of respective countries to support the expansion of offshore campaigns in our Singapore, Philippines, Malaysia and Thailand offices.
Transport and Travelling Expense. Our transport and travelling expense increased by 105.2% to S$0.5 million (US$0.4 million) from S$0.2 million for the same period in 2020 primarily due to listing-related travel expenditure.
Telecommunication and Technology Expense. Our telecommunication and technology expense increased by 47.4% to S$2.5 million (US$1.8 million) from S$1.7 million for the same period in 2020 primarily due to business volume expansion of our campaigns.
Interest Expense. Our interest expense increased by 149.6% to S$2.0 million (US$1.5 million) from S$0.8 million for the same period in 2020 primarily due to the recognition of the remaining unamortized term loan facility fees following the full repayment of the loan on October 7, 2021.
Other Operating Expense. Our other operating expense decreased by 38.9% to S$2.5 million (US$1.9 million) from S$4.2 million for the same period in 2020 primarily due to lower foreign exchange losses suffered and the forfeiture of upfront deposits paid by our subsidiary in Japan in the same period in 2020 due to early termination of its co-working space membership commitment. These were partially offset by increased premium expense related to directors’ and officers’ liability insurance policy following the initial public offering.
Share of Profit from an Associate. Share of profit from an associate was negligible for the three months ended December 31, 2021 and for the three months ended December 31, 2020 and is related to the recognition of the share of profit from an associate in Hong Kong during the periods.
Other Operating Income. Our other operating income increased by 28.6% to S$2.6 million (US$1.9 million) from S$2.0 million for the same period in 2020 primarily due to contribution fee income from our share depositary.
Profit Before Income Tax. As a result of the foregoing, our profit before income tax increased by 12.6% to S$37.4 million (US$27.7 million) from S$33.2 million for the same period in 2020.
Income Tax Expenses. Our income tax expenses increased by 36.8% to S$8.6 million (US$6.
Contacts
For enquiries, please contact:
Investors / Analysts: Jason Lim
+65-9799-6550
lim.jason@tdcx.com
Media: Eunice Seow
+65-8432-8388
eunice.seow@tdcx.com
