TDCX’s Second Quarter 2023 Profit up 9.4%

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 second quarter ended June 30, 2023.

Second Quarter 2023 Financial Highlights¹

• Total revenue of US$126.2 million, up 5.5% year-on-year, including a 5.8% point negative impact of foreign exchange rates compared with the prior year period, and up 11.3% in constant currency terms²
• Profit for the period was US$21.6 million, up 9.4% year-on-year

Mr. Laurent Junique, Chief Executive Officer and Founder of TDCX, said, “This quarter, we continued to demonstrate resilience amid an uncertain macroeconomic environment. In this challenging landscape, our focus remains on having a steadfast approach to operational excellence, value-adding to our clients through our consulting services, and exercising discipline in managing our business. This focus has also enabled us to increase our revenue from clients outside the top five by 67 per cent year-on-year.

“We are at an exciting point in the CX industry. Technological advancements, including in generative artificial intelligence (AI), pave the way for us to provide faster, better and more efficient ways of delivering customer satisfaction. Such developments hold much promise for our industry. I am confident that our ability to help clients design and implement solutions for increasingly complex customer needs and our investments into capabilities including AI put us in an advantageous position for growth in the long term.”

Q2 23 Business Highlights

Continued strong client growth

• Client count^4,5 up 52% year-on-year, bringing total client count to 91 as of 30 June 2023, compared to 60 as of 30 June 2022
• New launched clients include an established global e-commerce platform, a rapidly growing fast-fashion e-commerce platform, and a leading global travel platform based out of Asia

Improved client diversification

• Revenue from clients outside the top five rose 67% year-on-year⁵
• Revenue mix from top five clients lowered to 73% in Q2 23 from 83% in Q2 22

New geographies contributing

• Revenue from new geographies⁶ was 9 times in Q2 23 versus Q2 22

Full Year 2023 Outlook

For the full year 2023, TDCX expects its financial results to be:

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.

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¹ FX rate of US$1 = S$1.3557, being the approximate rate in effect as of June 30, 2023, assumed in converting financials from SG dollar to U.S. dollar.

² For a discussion of the use of non-IFRS financial measures, see “Non-IFRS Financial Measures”.

³ The reported amounts for Adjusted EBITDA and Adjusted Net Income for the three months ended June 30, 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 for the corresponding period last year. In order to place the current disclosure in the appropriate context and enhance its comparability, similar adjustments have been made for Adjusted EBITDA and Adjusted Net Income for the three months ended June 30, 2022.

⁴ “Client count” refers to launched campaigns that are revenue generating.

⁵ Includes additional clients attributable to our Hong Kong subsidiary.

⁶ Refers to sites in Colombia, India, Romania, South Korea, Hong Kong, Türkiye, Vietnam, Brazil and Indonesia.

⁷ We have 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 2023 is calculated and presented at constant currency, as it would require unreasonable efforts to predict factors out of our control or not readily predictable, such as currency exchange movements over the course of an entire year.

Webcast and Conference Call Information

TDCX senior management will host a conference call to discuss the second quarter 2023 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:

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.

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