- **Revenue Resilience**: $670M (+2% YoY) driven by AI solutions, digital services, and stable TELUS (+12% YoY). New clients in IT, energy, and AI expand diversification.
- **AI Growth Engine**: Social media clients drive LLM training growth, with examples like STEM reasoning and complex prompt handling. AI tools improve client retention and efficiency.
- **Financial Stability**: EBITDA margin 13.4% (temporarily down due to costs), free cash flow $41M. Full-year outlook: +2% revenue, $400M EBITDA, $0.32 EPS.
- **Strategic Focus**: Digital Solutions AI-first teams, trust/safety partnerships (Sumsub), and TELUS outcome-based pricing trials position for long-term margin expansion.
- **Risk Management**: Diversified client base, stable anchor client, and macro hedging (tariffs, AI cost reduction) mitigate volatility.


**【CEO & Management Overview】**
- **Revenue Growth & Client Diversification**: Q1 2025 revenue of $670M (+2% YoY, +3% constant currency) driven by AI & data solutions, digital services, and stable anchor client TELUS (+12% YoY). New clients include IT services, energy, and AI platforms, with expansions in Europe, Central America, and BFSI (+11%).
- **AI & Data Solutions Expansion**: Growth with social media clients in LLM training (e.g., STEM reasoning, complex prompts), diversifying beyond Google to mitigate volatility. AI tools like Fuel iX enable real-time coaching and risk mitigation, improving client retention and satisfaction.
- **Trust & Safety Solutions**: Increasing demand for identity verification, fraud detection, and content moderation. Partnership with Sumsub enhances end-to-end fraud prevention, combining human expertise with AI.
- **Digital Solutions Innovation**: AI-first software development teams and lean methodologies reduce costs and improve velocity. Wins in healthcare, financial services, and hospitality include AI-based backlog prioritization saving $10-15M for a cloud provider.

**【CFO Financial Review】**
- **Financial Performance**: Adjusted EBITDA margin 13.4% (down 1.3pts YoY due to salary/goods growth and one-time 2024 income). Free cash flow $41M (lower due to working capital timing). Full-year outlook: +2% organic revenue, $400M EBITDA, $0.32 EPS.
- **Leverage & Liquidity**: Net debt/EBITDA 3.4x (comfortably below covenant). Proactive credit amendment defers leverage step-down to 2026.
- **Client Mix Stability**: Top 5 clients stable, with TELUS as a unique anchor. Risk mitigation through diversification across geographies, industries, and service lines.

**【Q&A Key Themes】**
- **Tariffs & Client Strategy**: Tariffs may drive cost efficiency demand, with clients focusing on AI and offshore outsourcing. TELUS partnership tests outcome-based pricing (e.g., first-call resolution guarantees).
- **Margin Optimization**: Balancing growth investments (AI, Digital Solutions) with cost control. Targeting 15%+ EBITDA margin through 2025, with gradual improvement beyond.
- **Headcount & AI**: AI adoption aims to reduce headcount via automation, but near-term headcount stability due to client demand. Long-term, AI-driven efficiency could lower workforce size.
- **2025 Outlook**: Reiterated guidance reflects cautious macro outlook, with TELUS as a stabilizer. Focus on AI, digital solutions, and trust/safety as growth engines.


TELUS International (Cda) Inc. (TIXT) Q1 2025 Earnings Call Transcript

- **2024 Financial Stability**: $2.7B annual revenue (-2% YoY), 14.9% EBITDA margin, $30M cost savings.
- **2025 Growth Plan**: 2% organic revenue, $400M EBITDA, $65M investments in AI & ops, $50M cost savings.
- **Africa Expansion Success**: 800% team growth, 430% revenue increase, 440% EBITDA growth in 2024.
- **AI Data Solutions Surge**: 25% AHT reduction, 2 new hyperscaler clients, $10M+ contract pipeline.
- **Customer Satisfaction**: +20% emotional index in top 55 accounts, 78% employee engagement.
- **Risk Management**: Proactive credit amendment to defer leverage ratio until 2026.


**【CFO Financial Overview】**
- Q4 2024 revenue: $691 million (+5% YoY), full-year $2.7 billion (-2% YoY). Excluding a major social media client, revenue was flat YoY.
- Key clients: +7% YoY with Google (AI data projects), +7% YoY with TELUS parent company, +7% Q4 YoY recovery from a major social media client.
- Geographical growth: Central America/Africa (+11%), offsetting declines in E-commerce/Fintech.
- Adjusted EBITDA margin: 14.9% (Q4) vs. 14.4% in prior quarters, with $30M cost savings achieved in 2024.
- 2025 Outlook: 2% organic revenue growth, $400M adjusted EBITDA (normalized for one-time items), $65M in investments (AI, operations, shared services), $50M in cost savings.

**【CEO Operational Highlights】**
- 2024 achievements: 55 net new clients, 162 expanded relationships, $2B sales funnel (digital solutions pipeline re-accelerating).
- Africa expansion: 800% team growth, 430% revenue increase, 440% EBITDA growth.
- AI data solutions: Won 2 hyperscaler clients for LLM training, 25% AHT reduction with Fuel iX agent copilots.
- Customer sentiment: +20% improvement in top 55 accounts' customer emotional index.
- Employee engagement: +200bps to 78% in annual survey.

**【Digital Solutions Growth】**
- Q4 digital solutions revenue: 7% YoY growth, NPS >70% (best-in-class).
- Key wins: National bank in SEA, timeshare client web implementation, digital workflow solution for CX client.
- Fuel iX platform: 25% AHT reduction for mobile games client, $100K-$10M contract pipeline.
- Research Hub: Brazil partnership to advance AI-driven CX innovation.

**【Q&A Key Takeaways】**
- 2025 guidance assumptions: Digital solutions demand offsetting CX/Trust volatility, 2% growth balanced with risks.
- AI impact: 25% AHT reduction, outcome-based pricing pilots, $50M cost savings from ops transformation.
- Africa strategy: Scaling to serve hyperscalers' LLM training needs, 430% EBITDA growth in 2024.
- Risk management: Proactive credit amendment to defer leverage ratio until Q1 2026.


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