Announcement • Oct 31
TELUS Corporation (TSX:T) completed the acquisition of TELUS International (Cda) Inc. (NYSE:TIXT) from Riel B.V. and others. TELUS Corporation (TSX:T) entered into a non-binding indication of interest to acquire TELUS International (Cda) Inc. (NYSE:TIXT) from Riel B.V. and others for approximately $1.4 billion on June 11, 2025. The consideration paid was $3.40 per share in cash, TELUS common shares or a combination of both. The price values TELUS Digital at $2.3 billion enterprise value on a fully diluted basis. The transaction was funded though a combination of cash on our balance sheet and debt financing. TELUS Digital’s board of directors intends to form a special committee comprised of independent directors to carefully review, evaluate and consider the Proposal. As of October 14, 2025 Institutional Shareholder Services Inc recommended TELUS Digital shareholders to vote for the proposed arrangement (the “Arrangement”) with TELUS Corporation.
The proposal is subject to several conditions, including satisfactory completion of due diligence, negotiation of a mutually acceptable acquisition agreement, securing support from key shareholders of TELUS Digital and final approval of the TELUS Corporation board of directors. Completion of the transaction contemplated by the Proposal is subject to compliance with applicable Canadian and U.S. securities laws, including receipt of a formal valuation, unless an exemption is available, court and shareholder approval. As of July 9, 2025, no action with respect to the proposal is required by TELUS Digital shareholders at this time. As of September 1, 2025 TELUS Corporation and TELUS International (Cda) Inc. today announced that they have entered into a definitive agreement. TELUS to acquire all of the outstanding multiple voting shares and subordinate voting shares of TELUS Digital not already owned by TELUS for $4.50 per share, reflecting aggregate consideration of $539 million. The transaction has received the unanimous recommendation of a special committee of independent members of the board of directors of TELUS Digital and the unanimous approval of TELUS Digital’s Board of Directors. The purchase price of $4.50 per share will be payable by TELUS, at shareholders’ election, in (i) $4.50 in cash, (ii) 0.273 of a TELUS common share, or (iii) a combination of $2.25 in cash and 0.136 of a TELUS common share. Shareholders electing alternative (ii) or (iii) will be subject to proration such that the aggregate consideration will include no more than 25% in TELUS common shares. The full TELUS Digital Board unanimously approved the transaction and determined (i) that the transaction is in the best interests of TELUS Digital and is fair to minority shareholders, and (ii) to recommend that shareholders vote in favour of the transaction. The transaction is expected to close in the fourth quarter of 2025. As on October 27, 2025, approved by TELUS Digital shareholders at a special meeting.
Jefferies LLC and Barclays is acting as exclusive financial advisor to TELUS, Peter Castiel, Amélie Metivier and Olivier Godbout of Stikeman Elliott LLP and A&O Shearman are acting as legal advisors to TELUS Corporation. The Special Committee has engaged McCarthy Tétrault LLP as its independent legal advisor and BofA Securities, Inc. as its financial advisor and fairness opinion provider in connection with the Proposal. BMO Nesbitt Burns Inc. has been engaged as independent valuator and financial advisor to the Special Committee. FGS Longview has also been retained by the Special Committee as communications counsel. Adam Givertz and Ian Hazlett of Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to TELUS International (Cda) Inc. Allen & Overy LLP acted as legal advisor to TELUS Corporation. Osler, Hoskin & Harcourt LLP acted as legal advisor to TELUS Corporation. Alex Moore and Cat Youdan of Blake, Cassels & Graydon LLP acted as legal advisor to Riel B.V.
TELUS Corporation (TSX:T) completed the acquisition of TELUS International (Cda) Inc. (NYSE:TIXT) from Riel B.V. and others on October 31, 2025. A final order of the Supreme Court of British Columbia in respect of the transaction was granted on October 29, 2025. Announcement • Oct 02
TELUS Digital Launches Fuel iX Fortify for Automated Red-Teaming TELUS Digital announced the launch of its continuous automated red-teaming application, Fuel iX™? Fortify. The solution helps enterprises testgenerative AI (GenAI) systems at scale and identify vulnerabilities by replicating real-world attack scenarios through advanced adversarial simulation techniques. Fuel iX Fortify dashboards provide visibility into AI red-teaming sessions, detected vulnerabilities and system performance. concerns about safety and security vulnerabilities are a critical consideration for organizations adopting GenAI, yet over two-thirds of enterprises (67%) report a shortage of cybersecurity professionals to address them. This challenge highlights the importance of proactive safeguards that can help security teams keep pace with rapid AI development. Fuel iX Fortify runs thousands of adversarial attacks on AI-powered assistants, copilots and applications in minutes, helping organizations uncover AI risks before they can be exploited. With an ever-evolving database of adversary tactics, techniques and procedures based on the latest research, Fortify stays ahead of emerging attack methods and generates novel tests for each safety assessment, or it can rerun specific attack formulations to track over time. The Gen AI red-teaming app can also automatically create unique attack objectives tailored to a system's code of conduct policy, making it purpose-built for the predictability of GenAI, which can generate different answers each time it is asked a question. Enterprise-ready features of Fuel iX Fortify: Fuel iX Fortify supports enterprises across all industries with AI security features that include: Accessible design: Intuitive interface enables both technical and non-technical teams to conduct AI security testing. Actionable reporting: Dashboards and detailed reports provide users with a clear overview of each AI application's vulnerabilities, making it simple to understand and act on security and safety risks. Seamless integration: Can be used with a wide array of GenAI applications, simultaneously within a single interface. Advanced novel and repeat attack generation: Stays current with emerging threats and attack methods through regular updates based on the latest research. Applying Fuel iX Fortify in healthcare: Fuel iX Fortify is already in use by a publicly-funded health authority in Canada to safeguard its public-facing career advisor chatbot. The bot provides a personalized, user-friendly experience, helping individuals explore job opportunities in the healthcare sector in the same way they would interact with a recruititer, ensuring it would never provide medical advice or harmful responses. With Fuel iX Fortify, the client experienced a 97% reduction in testing time, while it took less than 30 minutes to onboard non-technical experts. The client stated: "Fuel iX Fortify gave confidence that chatbot's responses were safe, appropriate and met standards. The found that manual red-teaming was slow, limited in scope and produced error rates as high as 13%. Fortify let test chatbot thoroughly before launch, so knew it wouldn't give harmful answers or fall short on compliance. With that assurance, were able to launch responsibly, protect reputation, and create a positive, human-like experience for people interested in healthcare careers". Price Target Changed • Sep 03
Price target increased by 11% to US$4.52 Up from US$4.06, the current price target is an average from 7 analysts. New target price is approximately in line with last closing price of US$4.46. The company is forecast to post a net loss per share of US$1.19 next year compared to a net loss per share of US$0.22 last year. Reported Earnings • Aug 03
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: US$0.98 loss per share (further deteriorated from US$0.011 loss in 2Q 2024). Revenue: US$699.0m (up 7.2% from 2Q 2024). Net loss: US$272.0m (loss widened US$269.0m from 2Q 2024). Revenue exceeded analyst estimates by 5.7%. Earnings per share (EPS) missed analyst estimates significantly. Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 58 percentage points per year, which is a significant difference in performance. Announcement • Aug 01
Telus International (Cda) Inc. Reaffirms Earnings Guidance for the Full Year 2025 TELUS International (Cda) Inc. reaffirmed earnings guidance for the full year 2025. For the full year company continues to expect Revenue growth of approximately 2% on an organic basis. Major Estimate Revision • Jul 30
Consensus EPS estimates fall by 19% The consensus outlook for fiscal year 2025 has been updated. 2025 expected loss increased from -US$0.189 to -US$0.224 per share. Revenue forecast unchanged at US$2.72b. Professional Services industry in the US expected to see average net income growth of 13% next year. Consensus price target of US$4.18 unchanged from last update. Share price fell 4.7% to US$3.86 over the past week. Price Target Changed • Jul 21
Price target increased by 8.1% to US$4.18 Up from US$3.87, the current price target is an average from 7 analysts. New target price is 8.1% above last closing price of US$3.87. The company is forecast to post a net loss per share of US$0.19 next year compared to a net loss per share of US$0.22 last year. Announcement • Jul 15
TELUS International (Cda) Inc. to Report Q2, 2025 Results on Aug 01, 2025 TELUS International (Cda) Inc. announced that they will report Q2, 2025 results Pre-Market on Aug 01, 2025 Announcement • Jun 12
TELUS Corporation (TSX:T) entered into a non-binding indication of interest to acquire TELUS International (Cda) Inc. (NYSE:TIXT) for approximately $1 billion. TELUS Corporation (TSX:T) entered into a non-binding indication of interest to acquire TELUS International (Cda) Inc. (NYSE:TIXT) for approximately $1 billion on June 11, 2025. The consideration paid was $3.40 per share in cash, TELUS common shares or a combination of both. The price values TELUS Digital at $2.3 billion enterprise value on a fully diluted basis.The transaction was funded though a combination of cash on our balance sheet and debt financing. TELUS Digital’s board of directors intends to form a special committee comprised of independent directors to carefully review, evaluate and consider the Proposal. The proposal is subject to several conditions, including satisfactory completion of due diligence, negotiation of a mutually acceptable acquisition agreement, securing support from key shareholders of TELUS Digital and final approval of the TELUS Corporation board of directors. Completion of the transaction contemplated by the Proposal is subject to compliance with applicable Canadian and U.S. securities laws, including receipt of a formal valuation, unless an exemption is available, court and shareholder approval.
Barclays is acting as exclusive financial advisor to TELUS, Stikeman Elliott LLP and A&O Shearman are acting as legal advisors to TELUS Corporation. Announcement • May 28
TELUS International (Cda) Inc. (NYSE:TIXT) acquired Gerent Llc. TELUS International (Cda) Inc. (NYSE:TIXT) acquired Gerent Llc on May 28, 2025.
TELUS International (Cda) Inc. (NYSE:TIXT) completed the acquisition of Gerent Llc on May 28, 2025. Reported Earnings • May 12
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: US$0.091 loss per share (down from US$0.10 profit in 1Q 2024). Revenue: US$670.0m (up 2.0% from 1Q 2024). Net loss: US$25.0m (down 189% from profit in 1Q 2024). Revenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) also surpassed analyst estimates by 3.3%. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 26 percentage points per year, which is a significant difference in performance. Announcement • May 09
TELUS International (Cda) Inc. Reiterates Earnings Guidance for the Full Year 2025 TELUS International (Cda) Inc. reiterated earnings guidance for the full year 2025. For the full-year 2025, management continues to expect revenue growth of approximately 2% on an organic basis. Price Target Changed • Apr 27
Price target decreased by 7.0% to US$4.30 Down from US$4.63, the current price target is an average from 10 analysts. New target price is 76% above last closing price of US$2.44. Stock is down 70% over the past year. The company is forecast to post a net loss per share of US$0.24 next year compared to a net loss per share of US$0.22 last year. Announcement • Apr 15
TELUS International (Cda) Inc. to Report Q1, 2025 Results on May 09, 2025 TELUS International (Cda) Inc. announced that they will report Q1, 2025 results Pre-Market on May 09, 2025 Recent Insider Transactions Derivative • Apr 02
Executive Vice Chair of the Board exercised options to buy US$289k worth of stock. On the 26th of March, Jeffrey Puritt exercised options to buy 106k shares at a strike price of around US$2.74, costing a total of US$291k. This transaction amounted to 16% of their direct individual holding at the time of the trade. Since June 2024, Jeffrey's direct individual holding has increased from 535.57k shares to 648.60k. Company insiders have collectively bought US$2.5m more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions Derivative • Apr 01
Executive Vice Chair of the Board exercised options to buy US$84k worth of stock. On the 26th of March, Jeffrey Puritt exercised options to buy 31k shares at a strike price of around US$2.75, costing a total of US$86k. This transaction amounted to 4.2% of their direct individual holding at the time of the trade. Since June 2024, Jeffrey's direct individual holding has increased from 535.57k shares to 648.60k. Company insiders have collectively bought US$1.9m more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions Derivative • Mar 26
Executive Vice Chair of the Board exercised options to buy US$112k worth of stock. On the 21st of March, Jeffrey Puritt exercised options to buy 41k shares at a strike price of around US$2.79, costing a total of US$115k. This transaction amounted to 6.8% of their direct individual holding at the time of the trade. Since March 2024, Jeffrey's direct individual holding has increased from 502.81k shares to 607.41k. Company insiders have collectively bought US$1.7m more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Mar 03
TELUS International (Cda) Inc., Annual General Meeting, May 15, 2025 TELUS International (Cda) Inc., Annual General Meeting, May 15, 2025. Recent Insider Transactions Derivative • Feb 20
Executive Vice Chair of the Board exercised options to buy US$183k worth of stock. On the 14th of February, Jeffrey Puritt exercised options to buy 51k shares at a strike price of around US$3.70, costing a total of US$190k. This transaction amounted to 9.2% of their direct individual holding at the time of the trade. Since March 2024, Jeffrey's direct individual holding has increased from 502.81k shares to 556.08k. Company insiders have collectively bought US$2.5m more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Feb 15
TELUS International (Cda) Inc. Provides Earnings Guidance for the Full Year 2025 TELUS International (Cda) Inc. provided earnings guidance for the full year 2025. For the period, the company expected revenue growth of approximately 2% on an organic basis. Reported Earnings • Feb 13
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: US$0.22 loss per share (down from US$0.20 profit in FY 2023). Revenue: US$2.66b (down 1.8% from FY 2023). Net loss: US$61.0m (down 213% from profit in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 54%. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 50% per year whereas the company’s share price has fallen by 46% per year. Announcement • Jan 21
TELUS International (Cda) Inc. to Report Q4, 2024 Results on Feb 13, 2025 TELUS International (Cda) Inc. announced that they will report Q4, 2024 results at 9:30 AM, US Eastern Standard Time on Feb 13, 2025 Announcement • Jan 16
Slater Vecchio LLP and Scott & Scott LLP Announce Class Action Lawsuit Against Telus International (Cda) Inc Slater Vecchio LLP and Scott & Scott LLP have a class action lawsuit against Telus International (Cda) Inc. (Telus International) on December 12, 2024. The lawsuit alleges that Telus International and several of its officers made misstatements regarding the company's Artificial Intelligence ("AI") offerings in breach of the Securities Act, RSBC 1996 c 418 and other legal duties. As a result of Telus International's alleged failure to comply with its disclosure obligations, shareholders suffered a loss when the deep-seated issues caused by the company's shift to AI were disclosed in May and August 2024. The lawsuit seeks to represent all persons and entities that acquired one or more subordinate voting shares of Telus International between February 16, 2023 and August 1, 2024, inclusive, and held all or a portion of these securities at any moment between May 9, 2024 and August 1, 2024, inclusive. The lawsuit seeks to represent persons and entities that purchased Telus International securities on the New York Stock Exchange, the Toronto Stock Exchange, and any other exchanges on which shares of Telus International were traded. Valuation Update With 7 Day Price Move • Jan 08
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to US$3.20, the stock trades at a trailing P/E ratio of 28.4x. Average forward P/E is 21x in the Professional Services industry in the US. Total loss to shareholders of 89% over the past three years. New Risk • Dec 05
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 60% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.1x net interest cover). Earnings are forecast to decline by an average of 35% per year for the foreseeable future. Shareholders have been substantially diluted in the past year (60% increase in shares outstanding). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). Recent Insider Transactions • Nov 20
Insider recently bought US$253k worth of stock On the 18th of November, Tobias Dengel bought around 100k shares on-market at roughly US$2.53 per share. This transaction amounted to 4.7% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$282k. Insiders have collectively bought US$786k more in shares than they have sold in the last 12 months. Valuation Update With 7 Day Price Move • Nov 18
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to US$3.62, the stock trades at a trailing P/E ratio of 32.1x. Average forward P/E is 21x in the Professional Services industry in the US. Total loss to shareholders of 89% over the past three years. Major Estimate Revision • Nov 15
Consensus EPS estimates fall by 45% The consensus outlook for fiscal year 2024 has been updated. 2024 expected loss increased from -US$0.144 to -US$0.21 per share. Revenue forecast unchanged at US$2.64b. Professional Services industry in the US expected to see average net income growth of 19% next year. Consensus price target down from US$4.56 to US$4.44. Share price fell 3.7% to US$3.62 over the past week. New Risk • Nov 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 68% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.1x net interest cover). Earnings are forecast to decline by an average of 34% per year for the foreseeable future. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). New Risk • Nov 11
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 26% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.2x net interest cover). Earnings are forecast to decline by an average of 26% per year for the foreseeable future. Minor Risk Profit margins are more than 30% lower than last year (1.2% net profit margin). Reported Earnings • Nov 10
Third quarter 2024 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2024 results: US$0.12 loss per share (down from US$0.033 profit in 3Q 2023). Revenue: US$658.0m (flat on 3Q 2023). Net loss: US$32.0m (down 456% from profit in 3Q 2023). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has fallen by 53% per year, which means it is performing significantly worse than earnings. Announcement • Oct 17
TELUS International (Cda) Inc. to Report Q3, 2024 Results on Nov 08, 2024 TELUS International (Cda) Inc. announced that they will report Q3, 2024 results Pre-Market on Nov 08, 2024 Price Target Changed • Sep 08
Price target decreased by 7.7% to US$4.60 Down from US$4.98, the current price target is an average from 13 analysts. New target price is 25% above last closing price of US$3.67. Stock is down 55% over the past year. The company is forecast to post a net loss per share of US$0.14 compared to earnings per share of US$0.20 last year. Recent Insider Transactions • Sep 01
Independent Lead Director recently bought US$282k worth of stock On the 28th of August, Josh Blair bought around 100k shares on-market at roughly US$2.82 per share. This transaction increased Josh's direct individual holding by 1x at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$549k more in shares than they have sold in the last 12 months. Major Estimate Revision • Aug 09
Consensus EPS estimates have been downgraded. The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$2.79b to US$2.63b. Now expected to report a loss of US$0.13 per share instead of US$0.385 per share profit previously forecast. Professional Services industry in the US expected to see average net income growth of 25% next year. Consensus price target down from US$9.40 to US$4.98. Share price fell 54% to US$3.00 over the past week. Recent Insider Transactions • Aug 08
President of WillowTree recently bought US$248k worth of stock On the 6th of August, Tobias Dengel bought around 100k shares on-market at roughly US$2.48 per share. This transaction amounted to 4.9% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$291k more in shares than they have sold in the last 12 months. New Risk • Aug 06
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 4.4% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.4x net interest cover). Earnings are forecast to decline by an average of 4.4% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Large one-off items impacting financial results. Price Target Changed • Aug 05
Price target decreased by 25% to US$7.04 Down from US$9.40, the current price target is an average from 14 analysts. New target price is 70% above last closing price of US$4.15. Stock is down 55% over the past year. The company is forecast to post earnings per share of US$0.37 for next year compared to US$0.20 last year. Reported Earnings • Aug 04
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: US$0.011 loss per share (improved from US$0.026 loss in 2Q 2023). Revenue: US$652.0m (down 2.2% from 2Q 2023). Net loss: US$3.00m (loss narrowed 57% from 2Q 2023). Revenue missed analyst estimates by 4.4%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 49% per year, which means it is performing significantly worse than earnings. New Risk • Aug 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Share price has been volatile over the past 3 months (7.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.5% net profit margin). Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment deteriorates as stock falls 35% After last week's 35% share price decline to US$4.15, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 22x in the Professional Services industry in the US. Total loss to shareholders of 87% over the past three years. Announcement • Aug 02
TELUS International (Cda) Inc. Provides Revenue Guidance for the Full Year 2024 TELUS International (Cda) Inc. provided revenue guidance for the full year 2024. For the period, the company expects Revenue in the range of $2,610 to $2,665 million. Announcement • Jul 31
TELUS International Launches Fuel EX, an Enterprise-Safe Generative AI (GenAI) Employee Assistant to Support Productivity, Creativity and Research TELUS International has launched Fuel EX, an enterprise-safe generative AI (GenAI) employee assistant to support productivity, creativity and research. Fuel EX is the first public launch of an application built on TELUS Digital’s enterprise-grade GenAI engine, Fuel iX, and is currently in operation at scale within TELUS, where 35,000 employees are actively using the software and seeing improved productivity. Fuel EX gives companies a single point of entry for their employees to access an intuitive and enterprise-safe GenAI interface where they can select from more than 20 large language models (LLM) from multiple vendors to help them with everyday tasks including knowledge searches, summarization, copywriting, image generation and code writing. Fuel EX offers enterprises, administrators and employees unique benefits across three distinct pillars: Trust: Administrators can choose different data privacy options offered by select large language models and cloud providers. All employees can review their chat histories, which are securely stored in an encrypted format. While the solution is designed for global use, Fuel EX provides an option that offers AI inference and data storage that does not leave Canadian borders. Flexibility: Enterprises have access to a diverse range of large language models (LLM) and multimodal AI foundation models to ensure their employees can find the models that best suit their needs and are never limited by outdated technology. Administrators have the option to use model keys provided by Fuel EX or their own keys for additional inference control. A wide range of employees, including developers and IT support staff, have the flexibility to choose their preferred models and adjust model settings to tailor their tools for maximum productivity.
Control: Enterprises will be able to monitor model usage, set usage restrictions and manage user permissions from a single control plane. Administrators have the ability to modify AI model access at any time, which includes the capability to add or remove access to custom, open-source, or proprietary models. The Fuel EX user interface currently supports English and French (Canadian); however, many of the LLMs offered by Fuel EX offer multi-language support. Announcement • Jul 17
TELUS International (Cda) Inc. to Report Q2, 2024 Results on Aug 02, 2024 TELUS International (Cda) Inc. announced that they will report Q2, 2024 results at 9:30 AM, US Eastern Standard Time on Aug 02, 2024 New Risk • May 29
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 35% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.5% net profit margin). Recent Insider Transactions Derivative • May 24
President exercised options to buy US$191k worth of stock. On the 20th of May, Jeffrey Puritt exercised options to buy 33k shares at a strike price of around US$6.41, costing a total of US$210k. This transaction amounted to 6.5% of their direct individual holding at the time of the trade. Since December 2023, Jeffrey's direct individual holding has increased from 425.72k shares to 502.81k. Company insiders have collectively bought US$776k more than they sold, via options and on-market transactions, in the last 12 months. Price Target Changed • May 12
Price target decreased by 9.7% to US$10.60 Down from US$11.73, the current price target is an average from 14 analysts. New target price is 66% above last closing price of US$6.38. Stock is down 62% over the past year. The company is forecast to post earnings per share of US$0.42 for next year compared to US$0.20 last year. Announcement • May 10
TELUS International (Cda) Inc. Provides Revenue Guidance for the Full Year 2024 TELUS International (Cda) Inc. provides revenue guidance for the full year 2024. For the period, the company expects Revenue in the range of $2,790to $2,850 million, representing growth of 3% to 5%. Reported Earnings • May 09
First quarter 2024 earnings released: EPS: US$0.10 (vs US$0.051 in 1Q 2023) First quarter 2024 results: EPS: US$0.10 (up from US$0.051 in 1Q 2023). Revenue: US$657.0m (down 4.2% from 1Q 2023). Net income: US$28.0m (up 100% from 1Q 2023). Profit margin: 4.3% (up from 2.0% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 40% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • May 09
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to US$6.36, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 22x in the Professional Services industry in the US. Total loss to shareholders of 78% over the past three years. Announcement • Apr 21
TELUS International (Cda) Inc. to Report Q1, 2024 Results on May 09, 2024 TELUS International (Cda) Inc. announced that they will report Q1, 2024 results Pre-Market on May 09, 2024 Announcement • Apr 02
TELUS International Announces Fuel iX Beta Program, an Enterprise-Grade AI Engine for Bringing Generative AI to Production TELUS International announced a beta release of Fuel iX, an enterprise-grade AI engine designed to help companies upgrade their generative AI (GenAI) pilots to production scale, deploy customized solutions faster, and effectively manage the technology responsibly. With access to more than 100 large language models (LLMs) and the flexibility to change models after launch, enterprises are able to avoid vendor lock-in and future-proof GenAI applications. The solution’s management capabilities enable organizations to consolidate visibility across their GenAI applications, which often run in multiple environments, applications, and clouds. Fuel iX also provides application templates for the quick deployment of customized GenAI copilots that leverage an organization’s data, and can be tailored to address specific company workflows. Fuel iX is available now. Fuel iX Core and Apps: Fuel iX enables existing enterprise applications, third-party and custom GenAI apps to access critical services like access control, moderation, observability, and privacy through an integration server and GenAI gateway, simplifying management of the GenAI value chain from data and models, to management, applications and interfaces. Fuel iX has two solution layers – Core and Apps – each with several modules and connectors to third-party solutions. Fuel iX Core offers the integration and administration as a backbone for enterprise AI, and includes features and connectors for observation, arbitration, orchestration, moderation and enhanced security. Fuel iX Apps includes templates for GenAI applications across customer and employee experiences, third-party application support, application channel integration and more. This functionality is further supported by TELUS International’s design services, which provides custom applications and other digital solutions, and the GenAI Jumpstart accelerator program for rapid generative AI development and deployment. TELUS Accelerated Productivity with Fuel iX: TELUS used Fuel iX to create a set of generative AI management tools that enable the service provider to tap into, and switch between, multiple cloud providers and more than 100 large language models. TELUS then layered on centralized observability by use case, user, and AI model, and developed tools and processes to support privacy, data sovereignty, AI safety, and security requirements. Partial year 2023 impacts included CAD 6.4 million in cost avoidance and CAD 1.8 million in revenue lift from more accurate billing for technician visits. TELUS International is a leading provider of comprehensive, end-to-end AI data and digital customer experience solutions. Valuation Update With 7 Day Price Move • Mar 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$9.43, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 22x in the Professional Services industry in the US. Total loss to shareholders of 67% over the past three years. Announcement • Feb 28
TELUS International (Cda) Inc., Annual General Meeting, May 17, 2024 TELUS International (Cda) Inc., Annual General Meeting, May 17, 2024. Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to US$11.29, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 22x in the Professional Services industry in the US. Total loss to shareholders of 64% over the past three years. Price Target Changed • Feb 12
Price target increased by 7.7% to US$12.50 Up from US$11.61, the current price target is an average from 14 analysts. New target price is 24% above last closing price of US$10.05. Stock is down 55% over the past year. The company is forecast to post earnings per share of US$0.41 for next year compared to US$0.20 last year. Reported Earnings • Feb 11
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: US$0.20 (down from US$0.69 in FY 2022). Revenue: US$2.71b (up 9.7% from FY 2022). Net income: US$54.0m (down 71% from FY 2022). Profit margin: 2.0% (down from 7.4% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 20%. Revenue is forecast to grow 5.2% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 33% per year, which means it is performing significantly worse than earnings. Announcement • Feb 10
TELUS International Reports Real Estate Rationalization-Related Impairments for the Three Month Ended December 31, 2023 TELUS International reported Real estate rationalization-related impairments of $5 million for the three month ended December 31, 2023. Announcement • Feb 09
TELUS International Provides Earnings Guidance for the Full Year 2024 TELUS International provided earnings guidance for the full year 2024. For period, the company expects revenue in the range of $2,790 million to $2,850 million, representing growth of 3% to 5%. Announcement • Jan 19
TELUS International (Cda) Inc. to Report Q4, 2023 Results on Feb 09, 2024 TELUS International (Cda) Inc. announced that they will report Q4, 2023 results Pre-Market on Feb 09, 2024 Announcement • Dec 13
TELUS International Launches Experts Engine to Provide Highly Accurate, Predictably Faster and Cost-optimized Training Data for Generative AI Models TELUS International announced the launch of Experts Engine, a fully-managed, tech-enabled experts-on-demand sourcing solution for generative AI (GenAI) model builders. Experts Engine programmatically matches human expertise to GenAI tasks such as data creation, collection, annotation and validation to more quickly, accurately and cost-effectively generate high-quality training datasets at scale for the most demanding foundation models, including large language models (LLMs). Experts Engine is part of TELUS International’s end-to-end AI Data Platform that also includes task execution platforms and project and people management tools. The foundation of Experts Engine is a proprietary machine learning (ML) model that thoroughly profiles the domain expertise and proficiency, education level and availability of the more than one million contributors in the company’s diverse global AI Community, as well as the subject matter, complexity and sensitivity of GenAI tasks and task types. Depending on customized project requirements, the model algorithmically matches the tasks to be performed to the best qualified individuals and assigns the correct quality control workflows. For large-scale data projects, this eliminates the over-allocation of expertise to more common tasks by ensuring the right contributors are working on the right tasks at all given times. TELUS International’s diverse global AI Community of contributors is at the heart of its Experts Engine solution architecture, and ability to handle all data types across 500+ languages and dialects. With wide-ranging fields of expertise across all topics and task types, these individuals represent a broad range of demographics, geographies, education levels and cultural backgrounds in order to meet the most stringent requirements for GenAI model alignment and safety, such as prompt engineering, supervised fine-tuning (SFT), reinforcement learning from human feedback (RLHF) implementation, and other human-in-the-loop processes. The company’s pool of experts has been purpose built to handle large volumes and numerous task types efficiently, and to be agile, offering a variety of workforce models, including community, in-facility and hybrid on-demand. TELUS International actively engages, manages and monitors members of its AI Community to ensure they are always-ready to take on new tasks, investing in up-skilling and learning and development programs for many contributors. Announcement • Nov 29
TELUS International Announces the Launch of Eco-Friendly Site in Morocco as Part of Its Expansion into EMEA TELUS International announced the official opening of its latest site in Casablanca, Morocco. The newly constructed, facility is part of the company's recent expansion into Africa and combines cutting-edge technology with an environmentally-friendly ethos. The new seven storey, 7,500 square meter site in Morocco will open in three phases with an expected completion date in Third Quarter 2024. Once completed, the site will accommodate more than 800 employees. More than a technological hub and innovative workplace, the new TELUS International building is constructed to triple green certification standards: Batiment Bas Carbone/Low Carbon Building (BBCA), Leadership in Energy and Environmental Design (LEED), High Environmental Quality (HQE) and OsmoZ - a work environment certification. Designed with numerous sustainable features, the building integrates the use of renewable energy through 2,000 square meters of solar panels on the roof, includes more than 11,000 square meters of green space and produces more energy than it consumes. Morocco is a fast-growing business service hub known for its exceptional talent pool of young, educated and highly-skilled digital natives representing a broad spectrum of cultures and ethnicities, and who are fluent in multiple languages. From Africa and sites around the world, TELUS International designs, builds and delivers next-generation digital solutions, including digital CX, trust and safety services and AI data solutions, for global and disruptive brands. Announcement • Nov 04
TELUS International Provides Revenue Guidance for the Full Year 2023 TELUS International provided revenue guidance for the full year 2023. for the year, the company expects Revenue in the range of $2,700 to $2,730 million, including $190 to $200 million from WillowTree, representing revenue growth of 9% to 11% on a reported basis, and growth of 1% to 2% excluding WillowTree. This assumes an average exchange rate of one euro to 1.08 U.S. dollars for 2023. New Risk • Nov 03
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.0x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Shareholders have been diluted in the past year (2.8% increase in shares outstanding). Price Target Changed • Oct 31
Price target decreased by 7.3% to US$13.62 Down from US$14.69, the current price target is an average from 13 analysts. New target price is 113% above last closing price of US$6.39. Stock is down 74% over the past year. The company is forecast to post earnings per share of US$0.15 for next year compared to US$0.69 last year. Announcement • Oct 31
Telus International Launches Fuel Ix to Drive AI-Fueled Intelligent Experiences for Brands and Their Customers TELUS International announced the launch of Fuel iX, the company's enhanced solution backed by the power of generative AI (GenAI) to deliver end-to-end CX innovation and AI-fueled intelligent experiences (iX). With Fuel iX, TELUS International helps global clients meet critical CX business needs faster, and more strategically, than ever before. TELUS International's comprehensive suite of innovative services combine digital consulting, data services and analytics, web and mobile application development, and an AI-fueled platform. The solution helps companies overcome disjointed data and organization silos, and ensures that AI is embedded in the functionality of day-to-day CX operations and workflows so that companies adopt it, employees use it, and customers benefit from it. According to Deloitte, nearly two-thirds (62%) of contact centers are delivering disjointed CX across communications channels. Additionally, 34% of customers, according to the Call Centre Management Association, are most frustrated when passed to another representative during a contact or call. For companies at an early stage of their AI and data journey, TELUS International's GenAI Jumpstart accelerator program provides an eight-week engagement to help unlock the GenAI potential in an organization. With a path-to-production focus, the accelerator program can rapidly identify GenAI use cases, build powerful risk mitigation tools, and deliver a bespoke prototype to help demonstrate the value of AI to the business. Announcement • Oct 20
TELUS International (Cda) Inc. to Report Q3, 2023 Results on Nov 03, 2023 TELUS International (Cda) Inc. announced that they will report Q3, 2023 results Pre-Market on Nov 03, 2023 Price Target Changed • Aug 07
Price target decreased by 12% to US$14.69 Down from US$16.69, the current price target is an average from 13 analysts. New target price is 58% above last closing price of US$9.29. Stock is down 69% over the past year. The company is forecast to post earnings per share of US$0.14 for next year compared to US$0.69 last year. Announcement • Aug 05
TELUS International Reaffirms Earnings Guidance for the Full Year 2023 TELUS International reaffirmed earnings guidance for the full year 2023. For the year, the company expected Revenue in the range of $2,700 to $2,730 million, including $205 to $215 million from WillowTree, representing revenue growth of 9% to 11% on a reported basis, and growth of 1% to 2% excluding WillowTree. This assumes an average exchange rate of one euro to 1.09 U.S. dollars for 2023. New Risk • Aug 05
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.7x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.7x net interest cover). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.8% net profit margin). Shareholders have been diluted in the past year (2.8% increase in shares outstanding). Reported Earnings • Aug 04
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: US$0.026 loss per share (down from US$0.21 profit in 2Q 2022). Revenue: US$667.0m (up 6.9% from 2Q 2022). Net loss: US$7.00m (down 113% from profit in 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 72%. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Professional Services industry in the US. Price Target Changed • Jul 14
Price target decreased by 19% to US$20.43 Down from US$25.29, the current price target is an average from 14 analysts. New target price is 102% above last closing price of US$10.10. Stock is down 63% over the past year. The company is forecast to post earnings per share of US$0.12 for next year compared to US$0.69 last year. Announcement • Jul 14
TELUS International (Cda) Inc. to Report Q2, 2023 Results on Aug 04, 2023 TELUS International (Cda) Inc. announced that they will report Q2, 2023 results on Aug 04, 2023 
