TELUS International (Cda) Inc. Subordinate Voting Shares

Good day, everyone. Welcome to TELUS Digital's Q1 2025 Investor Call. I would like to introduce your speaker, Ms. Elena Lobach. Please go ahead.

Thank you, Carl. Good morning, everyone. Thank you for joining us today for the TELUS Digital First Quarter 2025 Investor Call. Joining our call are Jason Magdano, Acting CEO, COO, and President of Customer Experience, Tobias Bengel, President of Digital Solutions, and Gopi Chande, our CFO. We'll begin with prepared remarks from Jason, Tobias, and Gopi, and then open the line to your questions. At the end, Jason will offer his closing remarks. For our cautionary statements and further details on certain non-GAAP measures used during today's call, please refer to the earnings release issued this morning and regulatory filings available on CETA Plus and ADGAR. With that, I'll pass the call over to Jason.

Thank you very much, Elena. Good morning, everyone. Thank you for joining us here today. In the first quarter of 2025, TELUS Digital delivered operating and financial results in line with street expectations. We are also reiterating our full year 2025 outlook. Our global service diversification as well as our relationship with TELUS Corporation as an anchor client provide two distinct advantages among many others that offer a certain level of insulation and stability in the current environment and set us apart from many of our peers offering important levers to navigate market uncertainties to some extent. From a diversification perspective, in the first quarter, our team secured wins across many geographies, industry verticals, and service lines. For example, we welcomed several new clients, including a global player in IT services, consulting, and business solutions, a Canadian energy marketing and trading company, an American manufacturer of secure identity products, and a Singapore-based platform for AI startups and research institutions, diversification across industry verticals, client size, locations, and service solutions. We also saw growth with existing clients. With our third largest client, the leading social media network, we're rebalancing our engagement across geographies and diversifying across service lines. Additionally, in the quarter, we grew with yet another social media client, particularly in our AI and data solution space, and increased our share of business with a European mobile games client as a result of their vendor consolidation efforts in Latin America, where we have a very strong footprint. Consistent with our pursuit for greater share of business, we continue to elevate engagement across our client base to drive long-term retention As part of this effort, we're deploying AI tools powered by FuelIX to deliver granular real-time insights at the account level. These tools provide real-time coaching coverage and effectiveness insights that span everything from absenteeism and staffing statistics to performance-based measures. These capabilities, along with the plethora that we test with our partner TELUS, help us bring valuable methods to our clients as we support their customers with respect to next best action, higher sales close rates, higher sales value per transaction, accuracy improvements, reduced handle times, and better yield rates. This proactive fusion of technology and humans also allows us to identify and address performance risks, optimize resource allocation, and ensure consistent service excellence, ultimately driving superior client satisfaction and sustained growth. we remain focused on delivering on our clients' needs, challenges, and opportunities, operationalizing data-driven customer insights through targeted solutions, and positioning ourselves as the number one preferred partner. Now, the findings of our recent research in trust, safety, and security conducted in partnership with Ryan Strategic Advisory underscore the critical role our trust, safety, and security solutions play in delivering customer experiences. Enterprises are substantially increasing their investment in key areas such as ID verification, fraud detection, know your client processes, and certain forms of content moderation. This is driven by the financial impacts of fraud, regulatory pressures, and the need to adapt new technologies. Our survey also identified that scaling trust, safety, and security efforts presents some very unique challenges for enterprises, such as compliance with regulations, shortages of technical talent, and the complexity of fraud prevention among the top concerns of business leaders today. We're well-positioned to address our clients' evolving needs. For example, our recent partnership with SumSub allows us to expand our capabilities in end-to-end identity verification and fraud prevention tools. Our ability to combine human expertise with advanced technologies allows us to offer scalable end-to-end solutions that help enterprises navigate the complex landscape of trust, safety, and security. and bring the right mix of technology and human expertise. We also continue to see growth in AI and data solutions, particularly in our services to support clients' large language model development. Let me give you a few recent examples of our work. For one of our clients, we're working on a training solution for LLM that powers enterprise applications to better understand and interpret images and tables and documents. We're also helping improve the usage of chemical formulas and diagrams in various models. For yet another client, we are providing a training data set solution to improve a STEM reasoning algorithm. And for yet one more client, a major player in LLM development, we're providing a data set to train the model on complex reasoning, challenging the LLM in specific domains and in particular looking to learn from complex prompts where the model might falter. which is a critical step in its development and continuous recalibration. We've been successful in diversifying within this service line as evidenced by our growth with two social media networks. While Google is a key client in this service line, our diversification efforts with other clients helps us be well-balanced to capture further growth and mitigate typical volume fluctuations that you might see with clients in this rapidly evolving project-oriented business. We look to continuously progress and upgrade our offerings within AI and data solutions, this area continues to evolve and our leading abilities to mobilize human talent and expertise, either on-site or crowdsourced, especially for highly nuanced work around LLM training, continues to be key. While simpler tasks and data annotation workflows will be increasingly automated, current industry trends point to demand for the vast and evolving workforce of experts behind AI development, training, and maintenance over the next few years. in both of these service lines, AI and data solutions, as well as trust, safety, and security. We've created focused teams and will continue to evolve our offerings to ensure we're well positioned to meet and anticipate our clients' needs. We have invested in great new leadership to drive and advance both these service portfolios, creating clear accountability for client growth, diversification, focused factories, and service line evolution. Now, speaking of great leadership, With that, I'll hand it over to Tobias to discuss our digital solutions portfolio.