Can you comment on the quarter?
Thanks
IXT’s second quarter performance was an improvement, compared to a huge drop in Q1. In the 2Q, TIXT’s revenue grew 6% to $667M, slightly beating estimates of $662M and adjusted EBITDA was $120M, down 20% from $150M in the same period last year due to inflationary pressure. The quarter was as bad as expected, but organic revenue was quite weak: revenue growth was negative -1% when excluding the recent acquisition of WillowTree, driven by weak business volume. This is not a great sign especially since the company operates in a field that is related to AI (secular growth). For guidance, the company expects revenue growth for the whole year of around 9%-11%, adjusted EBITDA for 2023 of around $600M, and adjusted EPS is around $0.97, which is largely unchanged from the previous quarter’s guidance. Overall, an okay quarter, in-line with (revised) expectations, but we would not being adding here and remain patient to see how the quarters ahead play out. Sentiment remains very negative, but the stock is (likely) in the process of forming a bottom now.