TDCX Inc.

Ladies and gentlemen, thank you for standing by. Welcome and thank you for joining the TDCX Incorporated first quarter 2022 results conference call. Throughout today's recorded presentation, all participants will be in a listen only mode. Presentation will be followed by a question and answer session. If you'd like to ask a question, you may press star followed by one on your touch tone telephone. Please press the star key followed by zero for operator assistance. I would now like to turn the conference over to management. Please go ahead.

Hello, everyone, and welcome to TDCX 2022 First Quarter Earnings Conference Call. My name is Jason Lim, the Head of Investor Relations, and allow me to introduce management on the call. We have our Executive Chairman, Founder, and CEO, Mr. Lahan Junick, and our CFO, Mr. Chin Zening. 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 realised in the future. You should not place undue reliance on any forward-looking statements. Also, this call includes the discussion of certain non-IFRS financial measures such as adjusted EBITDA, adjusted EBITDA margins, adjusted net income and adjusted net income margins. For reconciliation of the non-IFRS measures to the closest IFRS measures, please refer to our press release or the Form 6K, which are available on our website. Lastly, we have provided a convenient translation for the translation of Singapore dollar into US dollar. This was done at a rate of 1 US dollar to 1.3534 Singapore dollars. This should not be construed as representation that the Singapore dollar amount can be converted into USD at least of any other rate. Our management will now share updates on operating and financial performance. This will be followed by a Q&A session. With that, let me hand over the call to Lahon. Lahon, please.

Thank you, Jason. Welcome to our results briefing for the first quarter of 2022. We're happy to report a strong set of Q1 results despite the volatile operating environment. The TDCX team has demonstrated great resilience and execution despite so much disruption and uncertainties. And a big thanks to them for their incredible contribution. I also want to thank our clients for putting their faith and trust in us. And for a change, I would like to start highlighting the good work that was done by our teams on climate change and corporate social responsibility. To begin with, we believe that businesses play an important role in promoting and accelerating sustainability. Given the impact of climate change, we made it a priority to reduce our carbon footprint across our operations globally. So I'm happy to share that our carbon neutrality has now been independently verified by a third party. We have received a satisfactory opinion statement from ESI that our carbon footprint before meets the ISO criteria. We achieve carbon neutrality by taking a two-pronged approach. First of all, by reducing our carbon output and offsetting what we are currently unable to reduce through United Nations Climate Neutral Now initiative. We also collaborate very closely with our clients on their sustainability initiatives. In addition, during the quarter, we launched our Women's Empowerment Network. Women are a key part of TDCX success and make up 58% of our workforce with healthy representation in leadership positions. Through the network, we aim to continue to build a diverse and equitable workforce to empower our female colleagues to pursue their career goals and to uplift women in marginalized communities through digital literacy. Let me now cover some highlights of our financial performance. As a result of a joint team effort, our quarter one 2022 revenue rose 26.9% to $113 million or $152 million. Adjusted EBITDA was 35 million US dollars or 48 million Singapore dollars. That's up by 27.6% year-on-year. We maintained our EBITDA margins at 31.3% for Q1 2022 compared to 31.1% in Q1 2021. Adjusted net income, which trips out the performance share plan costs for a like-for-like basis comparison, was up 34.9% to $22 million or $30 million. We continue to generate very strong cash flows. Q1 2022 net cash from operating activities was $37 million, up 188.1% year-on-year. Now for contribution from verticals, we continue to see strong contributions across key verticals. Travel and hospitality staged a rebound and was up 19% compared to Q1 2021. However, this was still 30% below Q1 2020 levels. While clients' orders grew, it takes time to train and onboard talents before the revenue impact flows through for us. FinTech rose at triple digit percentages year on year and has become our third largest vertical at around 15% of group revenues for Q1 2022. We serve payment gateways, crypto exchanges and other fintech companies requiring a high level of complexity. The crypto space is still only a small part of our business currently, and we are happy with this space. And as mentioned before, we're keeping a close watch, especially for market risks around it. on the digital advertising continued with a very strong growth trajectory and we're happy to announce a major new client win with the leading short-form video sharing social media company. That's placing our total number of clients in this space at four of the market leaders. This reaffirms our leadership in this particular space, helping digital advertisers support and grow their customer base. All in all, revenue from new economy clients to that 93% of total revenue in Q1. On new client wins, we have continued our business development momentum with 10 new logo wins compared to 4 in Q1 2021. We've won another leading Southeast Asia e-commerce platform. Sectors within these new logos include the e-commerce, fashion, tech, fintech and digital advertising as mentioned earlier. Our client count stands now at 55 as of 31st March, up 41% compared to 39 a year ago. Now, if I look at performance by services, just to recap, for those who are joining our call for the first time, our business comprises three key service offerings, one omni-channel CX solutions, two sales and digital marketing services, and three content monitoring and moderation services. the market opportunities for each of these services remain significant over the medium to long term as indicated on the slides. The content monitoring and moderation service represents a single business stream for a single client and is a subset of a larger trust and safety market. And for trust and safety related work, we already clocked in around 4 million US dollars a quarter, which is currently classified under the omni-channel CX stream. This includes data annotation work where we help enable machine learning, listing verifications to ensure authenticity and accuracy of listings for rental or sale, as well as KYC procedures for onboarding of new trading accounts. Such businesses are growing up over 50% year on year and we are now looking into regrouping them into a wider trust and safety service grouping moving forward. So watch out for this in the next earnings call. On the geographic expansion front, a quick recap of our geographic presence. We are now in 11 geographies, the three latest additions being Romania, India, and South Korea. This year, we are planning to expand into Indonesia and Vietnam, and we will share more details over time. As our clients start to look into decentralizing their services into new markets, our regional expansion will help us capture this new business. Now, on our growth strategy, I'd like to reiterate the growth that we have for the longer term. One, continued opportunities to expand business and service offerings with our existing routine clients. Two, strengthening our business development and marketing efforts to accelerate new client growth. A third pillar will be prudent expansion into new geographic markets. Fourth, strategic M&A that will complement our capabilities, geographies or client coverage. Last but not least, continuous discipline on operational cost efficiencies as well as productivity. Now, on the current economic environment, we all know the near-term environment remains uncertain as the global economy faces many headwinds such as inflation, the ongoing war, and continuing supply chain issues. Clients have become more cautious and are wary of committing. Some of them are slower than expected in implementing projects. As much as our long-term prospects remain intact and our fundamentals are solid, we have decided to make some adjustments to our FY 2022 guidance to reflect the current macroeconomic uncertainties. And I will now hand over to Mr. Chin to cover the financials in detail, as well as to provide an update on the guidance. Mr. Chin, over to you.