TDCX Inc.

Ladies and gentlemen, thank you for standing by. I'm Stuart, your chorus call operator. Welcome and thank you for joining the TDCX Incorporated third quarter 2021 results conference call. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you would like to ask a question, you may press star followed by one on your touchstone telephone. Press the star key followed by zero for operator assistance. I would now like to turn the call over to management. Please go ahead.

Hello, everyone, and welcome to TDCX 2021 Third Quarter Earnings Conference call. My name is Jason Lim from Investor Relations, and allow me to introduce management on the call. We have our Executive Chairman, Founder and CEO, Mr. Lahong Junick, and our CFO, Mr. Chin Zuning. Before we continue, I would like to remind you that we will make forward-looking statements which are subject to risks and uncertainties and may not be realized in the future. You should not place undue reliance on any forward-looking statements. Also, this call includes the discussion of certain non-GAAP financial measures such as EBITDA and EBITDA margins. For reconciliation of the non-GAAP financial measures to the closest GAAP measures, please refer to our press release or the Form 6-K, which are available on our IR website. Lastly, we have provided a convenience translation for the translations of Singapore dollar into the US dollar. This was done at the rate of 1 US dollar to 1.3611 Singapore dollar. This should not be construed as representations that the Singapore dollar amounts could be converted into the USD at this or any other rate. Our management will now share updates on the operating and financial performance. This will be followed by a Q&A session in which we welcome any questions you may have. With that, let me turn the call over to Léon. Léon, please.

Thank you, Jason. Hello, everyone, and thank you for joining us today. It is my absolute pleasure to welcome you to our first-ever results call as a public company. Before we begin, I'd like to take a moment to thank all our clients, partners, and investors for your support and for being part of this incredible journey towards our successful IPO in October. What we've achieved would not have been possible without our amazing team of over 14,000 people who have helped deliver stellar results over the past years, and in particular for this set of results which we are reporting on. Let me now go through some highlights of our Q3 performance. We're very pleased to announce strong revenue and earnings growth for the quarter. So a strong Q3. Revenue rose 41% year-on-year to $109 million, mostly contributed by large established clients in digital media and travel. In particular, travel came back in a good way for us. It is still not at 2019 levels, though. We also continue to ramp up in exciting verticals such as fintech and gaming. Revenue rose across all the geographies we operate in, Two of our largest geographies, Malaysia and the Philippines, continued to deliver very strong growth, whilst newer footprints like Japan and China grew in excess of 50% and Spain doubled year on year. During the quarter, we achieved a new milestone with maiden revenue contributions from Latin America as we commenced our first campaign in Colombia. I'm also excited by our performance in sales and digital marketing, where revenue rose 93%. Our largest clients in this space significantly expanded their volumes with us year on year. Revenue from a relatively new professional social media client in this segment rose four times. We're focused on quality growth, higher margins, by staying true to our strategy of focusing on new economy clients and our strength in Southeast Asia. we continue to achieve quality growth and improve upon our margins. EBITDA rose 51% to $39 million as EBITDA margins rose to 35.5%. Revenue from new economic clients continued to increase and now stands at 93.4% of total revenue in Q3. New logos, we continue to gain traction with new clients. Since the start of 2021, we have signed 16 new logos, including several of the fast-growing technology companies in Asia. Our new logos also included our first clients in the food delivery and crypto verticals. Since we have signed that crypto client, we've deepened our relationship with them and they've started to contribute meaningfully to revenue. Operationally, we delivered on our headcount increase and continue to expand as total headcount rose 34% to over 14,100. as at 30th September 2021. We believe that this stellar set of results puts us on the firm footing moving forward as we start this new chapter as a listed entity. Mr. Chin will share more details on the financials later, but for the benefit of the new investors and analysts joining us, let me quickly provide an overview of our business before I hand over to our CFO. Our business comprises three key service offerings. Number one, omnichannel CX solutions. Number two, sales and digital marketing services. And number three, content monitoring and moderation services. For omnichannel customer experience, we help our clients manage relationships with their customers by providing complex customer experience solutions, such as after-sales service and customer support across multiple languages and multiple channels. One simple example would be helping a foreign English speaking visitor resolve urgent accommodation issues with their Japanese host, who is a bilingual agent, who is well trained to handle complex level issues. For sales and digital marketing services, we help small medium enterprises plan and execute their digital advertising campaigns on the world's leading social media and search engine platforms. This requires specialized personnel well-versed in the science of ad optimization on such digital platforms. Lastly, our content monitoring and moderation services help our clients create a safe and secure online environment for social media platforms by providing the human touch to content monitoring. So these services made up 62%, 22%, and 14% of our Q3 revenues, respectively. While CX Solutions have historically represented the majority of our business, over time, sales and digital marketing, as well as content monitoring and moderation services have both seen a greater share of the revenue mix. This increased diversification in our business mix represents our efforts in continually adapting to our customers' changing business needs and our ability to grow with our customers at scale. Now, in terms of the addressable market, we operate in a very exciting space where we see increasing demand in CX services, especially in Southeast Asia, from new economy clients. According to Frost and Sullivan, the Southeast Asia CX market size stood at $10 billion in 2020 and is expected to grow to $14 billion by 2025. Within this space, the new economy segment alone is expected to rise even faster at the compounded annual growth rate, or CAGR, of 19%. From a global context, the market is expected to rise from $80 billion to $100 billion over the same period, with the new economy segment growing at a kicker of 17%. So we're strongly positioned to capture the market from these trends. We believe that we have the first mover advantage in Southeast Asia with a unique footprint, and we plan to continue to carefully expand our global footprint while keeping a very firm focus on our center of gravity in Asia. We have an attractive client base that consists of some of the largest and most innovative brands in their respective industries, such as social media and travel and hospitality. Our relationships with our blue-chip new economy clients offer significant opportunities and we're well positioned to ride their growth. We have an international footprint in 10 geographies across Asia, Europe and Latin America. This provides us with access to a broad talent pool and equips us with multilingual capabilities to serve a global customer base, including English and key Asian languages such as Mandarin, Thai, Korean, Malay, Vietnamese, Japanese, as well as Asian unicorn languages such as Bhutanese and Sinhalese. In recent years, we have opened new offices and took on new client mandates in different geographies representing our global ambitions and execution. As you can see in the pie chart, over 90% of our Q3 revenues come from our core businesses in Southeast Asia, while our relatively new geographies in Japan and China are starting to contribute meaningfully. We have also expanded into Colombia, India, and Romania in the past two years, and we are ramping up our business there. Let me round up with TDCX key competitive advantages. We have first of all a strong Pan-Asia footprint and our leadership position in key Southeast Asian markets helps drive our competitive edge. We run highly successful offshore operations which drives cost benefits and higher margins. We focus on market leading global leaders in the new economy sectors. To meet the demands of high-growth digital clients, we're designed to be agile and flexible and scalable in line with our clients' rapid growth. Emphasis on supporting complex issues is why more than 60% of our employees have college or university degrees, and the quality of our employees is a key differentiator. Next. We are domain experts with a deep understanding of high growth and complex verticals such as digital advertising, fintech, gaming. Finally, we augment our incredibly talented people with proprietary technology that drives productivity and accuracy of our service delivery. All the above leads to better employee outcomes, including a lower attrition rate compared to the industry average and high employee satisfaction scores. Our corporate culture is designed to foster a work environment that is fully aligned with our tech clients. I would like now to spend a bit of time on some upcoming trends, as well as reiterating the key tenets of our strategy. As economies reopen, we are progressively getting ready for return to the office and for the great reshuffle, as it is called. Our teams are reviewing protocols right now, as well as people trends, and we will be leveraging several of the solutions we have available. Firstly, a key theme will be flexibility. We will implement hybrid work arrangements for both office collaboration and work from home. Secondly, keeping in touch with our people a lot more frequently, treat them like our customers and empower them, supersize engagements and bring mental health support front and center. Thirdly, rewarding our people with smart compensation and benefits and even greater focus on performance-based compensation and real-world results versus time spent. Lastly, reinvent training, less classroom, more self-paced and online, recognize and reward people who are invested in themselves by using our training tools and options. In essence, it's all about culture, culture, culture. It's so easy to lose our culture with the reduced personal time in office, so this will need renewed focus and energy. Now, from a strategic point of view, our plans have not changed. We want to, one, expand geographies. We are opening new offices in North Asia and looking at other locations in Asia. The approach to work from home has opened new possibilities with lighter in-country site-alike setups for us. Number two, invest in people. As I mentioned earlier, attracting, retaining the best will be central to our success. Number three, lean and effective. Continue to digitalize HR, finance, anticipate inflation. Number four, acquisitions. Building pipelines, but staying true to our DNA principles. We'll be very selective when we look for acquisitions. Let me now hand over to Mr. Chin to cover the financial.