Citing unexpected reductions in service demand, TELUS International released a preliminary summary of financial results for the quarter ended June 30, 2023, and revised downward its full-year 2023 outlook.
TELUS now expects revenue in the range of $660 to $668 million, reflecting year-over-year growth of 6% to 7% on a reported basis and 6% to 7% on a constant currency basis, and a decline of approximately 1% when excluding revenue earned from WillowTree. These year-over-year revenue growth rates are lower due to lower than expected business volumes primarily within its technology vertical. Net loss is now expected to be in the range of $7 to 10 million, reflecting a year-over-year decline of 113% to 118%, and net loss margin in the range of 1.0% to 1.5%.
During the second quarter, as a result of persistent global macroeconomic pressures, TELUS International experienced more pronounced and unexpected reductions in service demand from some of our larger clients, particularly within the technology vertical. We also experienced delays and lower than expected activity in converting opportunities into spend commitments, as clients continue to address their own cost structures, including successive employee downsizing. These issues have in turn impacted TELUS International’s overall revenue and profitability to a larger extent than previously anticipated, contributing to a more cautious outlook for the balance of 2023,” said Jeff Puritt, President and CEO of TELUS International.
Vanessa Kanu, CFO said, “The magnitude of the headwinds we’re experiencing and our preview of second quarter performance data prompted a revision to the full-year outlook for 2023 to better reflect our updated expectations for the remainder of the year. We’ve actioned significant cost efficiency programs, including staff reductions to address lower service volumes in the technology vertical. Additionally, we are driving further automation and generative AI enabled solutions to further optimize our cost structure."
