TELUS International (Cda) Inc. (TIXT) reported its third quarter 2024 earnings, with revenues surpassing expectations and earnings per share (EPS) in line with estimates. The company's strong performance was driven by strategic initiatives and a focus on AI-related opportunities. TELUS Digital, the company's digital experience segment, saw a robust sales funnel for AI-related opportunities, which drove continued sales momentum.
One of the key drivers of TELUS Digital's revenue growth was the expansion of its AI Data Solutions team. The team secured mandates with two clients in Japan developing driver-assistance features, as well as an ongoing engagement with a Santa Clara-based chip maker. This expansion contributed to the robust sales momentum and helped the company achieve its full-year outlook.
TELUS International's rebranding to TELUS Digital in Q3 2024 did not significantly impact its revenue growth, as the company reported solid results driven by increased sales capacity and capabilities. The rebranding, however, strengthened its positioning in the market, supporting a robust go-to-market approach and enhancing its commitment to continuous innovation.

The integration of AI in internal processes and CX services has shown promising signs of improving operational efficiency and customer satisfaction. The company's AI Data Solutions team won mandates with two clients in Japan for driver-assistance features and secured a project with a Santa Clara-based chip maker for a multimodal generative AI model. This demonstrates the company's ability to leverage AI for innovative solutions, driving sales momentum. Additionally, TELUS Digital expanded its business, winning more opportunities across new logos in various sectors and growing existing services with over 80 clients. This strategic focus on AI capabilities and digital solutions has enabled the company to meet clients' demands and shape the AI-enabled economy of the future.

TELUS Digital's strategic focus on AI capabilities positions it well for long-term growth and enhanced competitive advantage. By embedding AI in its processes and services, the company can improve operational efficiency, enhance customer experiences, and drive innovation. This focus enables TELUS Digital to meet clients' evolving demands and shape the AI-enabled economy of the future. By leveraging advanced digitization and AI capabilities, TELUS Digital can achieve a true fusion of human talent and technology, ultimately driving growth and solidifying its position in the market.
In conclusion, TELUS International (Cda) Inc. (TIXT) reported strong revenue growth in Q3 2024, driven by strategic initiatives to rejuvenate revenue growth. The company's focus on AI-related opportunities, cross-selling, service bundles, and value-added services contributed to a solid step towards achieving its full-year outlook. The company's rebranding to TELUS Digital strengthened its positioning in the market, and its integration of AI in internal processes and CX services has shown promising signs of improving operational efficiency and customer satisfaction. TELUS Digital's strategic focus on AI capabilities positions it well for long-term growth and enhanced competitive advantage, making it an attractive investment opportunity for those seeking undervalued opportunities with strong growth potential and solid fundamentals.