Revenue of $556 million, up 30%, with organic business growth of $58 million announced TELUS International. The company, which is a subsidiary of TELUS Corporation, released its results for the third quarter ended September 30, 2021.
Highlights of the third quarter of 2021 vs. the third quarter of 2020
The revenue for Q3 2021 reached $556 million, up 30%, with organic business growth of $58 million, or 14%, was driven by growth in services provided to both existing and new clients. Growth from prior acquisitions of $71 million, or 16%, was primarily attributable to AI-focused acquisitions. Organic revenue growth included a favourable foreign currency impact of less than 1%, predominantly driven by the Euro to the U.S. dollar rate.
YTD Q3 2021 vs. YTD Q3 2020 highlights
The company also announced YTD Q3 2021 revenue of $1,594 million, up 40%, with organic growth of $201 million or 18% was driven by growth in services provided to existing clients and revenue from new clients, while growth from prior acquisitions was $253 million or 22%. Organic revenue growth included a foreign currency impact of approximately 3%, predominantly driven by the Euro to the U.S. dollar rate.
Along with the revenue growth the team member count reached 58,527, which was an increase of 21% year-over-year, reflecting growth across several geographies to meet increased client demand and business expansion.
Jeff Puritt, President and CEO of TELUS International, commented:
“In the third quarter of 2021, our TELUS International team continued to win business with both new and existing clients, driving solid organic growth and demonstrating ongoing momentum from our AI-focused acquisitions completed over the past twelve months. Notably, our team’s consistent and determined execution of our long-term strategy builds upon our strong performance in the comparable prior year period, and also reflects impressive sequential growth from our second quarter results. Our deliberate approach of focusing on designing, building and delivering higher value digital services, as well as leveraging our significant expertise in content moderation and AI services on behalf of our marquee technology and games clients, has helped fuel our profitable growth.”
Vanessa Kanu, CFO, added:
“Our business is successfully keeping up with client demand and our momentum remains positive for us to reaffirm our outlook for the full year, with strong double-digit growth in 2021. As a new public company, we continue to raise our profile in the financial markets. Our recent successful secondary offering of subordinate voting shares, primarily from Baring Private Equity Asia, was the first such transaction since our initial public offering, generating significant institutional investor interest and resulting in an offering that was oversubscribed and upsized. We are very happy to welcome some new long-term investors in TELUS International.”
Net income of $23 million and Diluted EPS of $0.09: Net income margin was 4.1%. Net income and Diluted EPS include the impact of share-based compensation, acquisition and integration charges and amortization of purchased intangible assets, among other items. Adjusted net income, which excludes the impact of these items, was 32% higher year-over-year at $70 million in the third quarter of 2021.
Adjusted EBITDA of $137 million, up 23%, and Adjusted EBITDA margin of 24.6%, were primarily driven by the revenue growth, client mix shift, and efficiencies. Adjusted diluted EPS was $0.26, up 13% year-over-year.
