TDCX Inc.

Ladies and gentlemen, welcome to the TDCX Q4 2022 results announcement. My name is Kelly and I'll be coordinating your call today. If you'd like to ask a question during the presentation, you may do so by pressing star followed by one on your telephone keypad. I'll now hand you over to the TDCX management team to begin.

Hello everyone and welcome to TDCX fourth quarter and full year 2022 earnings conference call. My name is Jason Ling, the head of investor relations. Allow me to introduce management on the call. We have our Executive Chairman, Founder and CEO, Mr Lahong Junick, our CFO, Mr Chin Tzu Ni, and our EVP of Corporate Development, Mr Edward Goh. 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 any reliance on any forward-looking statements. Also, this call includes the discussion of certain non-IFRS financial measures such as adjusted EBITDA and adjusted net income. For reconciliation of the non-IFRS measures to the closest IFRS measures, please refer to our press release on the Form 6-K, which is available on our website. We have prepared a convenient translation for the translation of Singapore dollars to the US dollar. This was done at a rate of 1 USD to 1.3446 Singapore dollars. This should not be construed as representation that any SGD amount can be converted to USD, at least for any other rate. With that, let me hand over the call to Lahong. Lahong, please.

Hello everyone, and welcome to our results briefing for the fourth quarter and full year 2022. 2022 has been a challenging year, but despite that, we continue to execute on our long-term growth strategy previously outlined during the IPO. We achieved our growth expectations with almost a 20% increase in revenue year on year. We doubled the number of new logos signed up to 41 and ended the year with our highest ever client count of 84. The new clients on board contributed around 20% of revenue growth for the year. This demonstrates the strong incremental growth that we can deliver from new clients. We also continue to execute well on our global expansion plans. We added three new geographies that have started to contribute meaningfully to our global revenue. I'll share more details later. The TDCX team has worked very hard to deliver all this, and I want to thank them for their efforts and for another year of high growth. Today is International Women's Day, and I want to celebrate the wonderful women that make TDCX what it is today. Now, in terms of revenue highlights, let me first cover some highlights of our financial performance. We delivered robust revenue growth in Q4 2022 as revenue rose 14.2% to US$131 million. This was driven by contributions from clients across key verticals and has helped diversify our client concentration. Our top two clients stood at 52% in Q4 2022 compared to 59% last year, while our top five clients stood at 78% compared to 83% last year. The growth was growth-based as clients outside the top five grew at more than double the rate of group revenues. Now, in terms of revenue contributions from verticals, digital advertising and media remains our largest vertical at 54% of revenue in FY 2022. This is followed by travel and hospitality at 22% and fintech at 12%. Revenue from digital advertising and media rose double digits in 2022, despite some headwinds. This was driven by our relative strength in Asia Pacific, a region where the digital advertising industry is continuing to grow faster than the rest of the world. We are also seeing good growth from other key verticals. Travel was up 26%, while fintech was up over 50%. Gaming was another highlight for us, growing over 70% as we supported our key gaming clients into greenfield sites such as Turkey and Korea. In terms of earnings, Our Q4 adjusted net profit was impacted by a foreign currency loss due to the depreciation of the US dollar and declined 13.3% year-on-year. For the full year, adjusted net profit remains robust, rising 14.1% year-on-year. The profit growth rate was lower compared to revenue growth of 19.6%. This reflects the lower adjusted EBITDA margins of 30.1%. compared to 33.3% in 2021, which was boosted by two exceptional quarters in Q3 and Q4, with margins of 34 to 35%. Our CFO will share more details on the numbers in the later sections. The quality of our earnings growth is translated into strong cash flows, as FY 2022 net cash from operating activities rose 59.3% year-on-year, to 123 million us dollars in 2022 we continued our focus on geographical expansion as a key strategic priority and we added three locations hong kong vietnam and turkey each location brings its unique strength and value proposition while at the same time boosting the group's network capability we're seeing greater contributions from our newer geographies the Seven geos added over the past two years made up 10% of the year-on-year growth in revenue against FY21. Korea is a good example of our network expansion that has worked out very well. Over the past year, we have onboarded three of our existing large clients in Korea, successfully growing our business with them from the original geography. We also continue to receive good RFP opportunities in Korea through our value proposition of being the best friend to international companies. Colombia is also doing well and we want several new clients there who are unique to the group. Besides being completely new businesses on this side of the world, this gives us opportunities to cross-sell into Asia Pacific. As shared earlier, we have continued our business development momentum. We doubled the number of new logos signed up in 2022 to 41 compared to 20 in 2021. Our launch client count rose 62% to 84% as of 31st December. Beyond the new logo sign-ups, we also recorded strong organic wins with our existing clients. Our annual net revenue retention rating FY 2022 was 117%, demonstrating that the incremental pipeline and revenue from existing clients remained strong. Now, in terms of outlook, before I hand over to Mr. Chin to cover the financials in detail, I'd like to provide an update on the outlook for FY2023. The economic challenges we saw last year are expected to have a spillover effect into 2023. Macro uncertainty is impacting our largest clients in the near term, especially in the digital advertising and media vertical. And we recently saw a number of companies laying off. Things have evolved very rapidly within a matter of weeks recently. These clients have had to re-look at their costs and many find it difficult to commit to budget plans for a longer period. Some clients have cut their headcount requirements and we want to be there for them in thick or thin, so we will adapt to serve them best in this challenging time, not just tactically but strategically as well. For some of these clients, The visibility we have on their requirements is reduced a quarter from six to nine months previously, so things could change very fast. As you know, digital advertising is half of our business. This has a significant impact on our forward visibility. Because of these factors and the uncertain macroeconomic environment, we're providing a wider range of revenue guidance at the beginning of the year as a matter of prudence. Revenue growth in FY23 is expected to be from 3% to 8%, We will adjust the guidance range over the year as we get more visibility. Let me now hand over to Mr Chin to bring you through the results and the outlook in greater detail.