TELUS International (Cda) Inc. (TIXT) Investors Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz About Securities Fraud Lawsuit

The Law Offices of Frank R. Cruz reminds investors of the upcoming March 31, 2025 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired TELUS International (Cda) Inc. (“Telus International” or the “Company”) (NYSE: TIXT) securities between February 16, 2023 and August 1, 2024, inclusive (the “Class Period”).

IF YOU ARE AN INVESTOR WHO LOST MONEY ON TELUS INTERNATIONAL (CDA) INC. (TIXT), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.

What Happened?

On May 9, 2024, Telus International released its first quarter 2024 financial results, revealing a $29 million decline in revenue year over year. On the same day, the Company held an earnings call during which Chief Financial Officer, Gopi Chande was asked by an analyst to clarify “what margin should look like on a go-forward basis” as margins “were down year-over-year and . . . were below the full year guidance.” In response, Gopi Chande revealed that the margins generated by the Company’s AI offerings “can be a bit below average.”

On this news, the Company’s share price fell $1.41 or 18.15%, to close at $6.36 on May 9, 2024, on unusually heavy trading volume.

Then, on August 2, 2024, before the market opened, Telus International released second quarter 2024 financial results, revealing a significant slowdown in revenue generation: a $5 million quarter-over-quarter or $15 million year-over-year revenue decrease; a $23 million or 15% quarter-over-quarter adjusted EBITDA decrease; and 14.6% quarter-over-quarter reduction in adjusted EBITDA margin, from 23.3% to 19.9%. As a result, Telus International announced it had significantly reduced its full year 2024 fiscal guidance. The Company also disclosed that Jeff Puritt, then-President and Chief Executive Officer, would retire effective September 3, 2024. In an earnings call held the same day, Puritt disclosed that the transition of the Company “towards a more technology centric and specifically AI fueled business,” “necessitates some cannibalization of our tenured and higher margin CX work.” Puritt concluded that, ultimately, the Company is “going to have to take it on the chin a little bit in terms of our historical margin profile” and rely upon “eating our own roommate cooking internally,” referring to the self-cannibalization of the business, “in order to create the headwind we need to enjoy the margin yield that we’ve historically benefited from.”