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Genpact Reports Third Quarter 2024 Results

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Total Revenue of $1.21 billion, Up 7% (7% constant currency)1

Diluted EPS of $0.74, Up 16%; Adjusted Diluted EPS2 of $0.85, Up 12%

NEW YORK, Nov. 7, 2024 /PRNewswire/ — Genpact Limited (NYSE: G), a global professional services and solutions firm delivering outcomes that shape the future, today announced financial results for the third quarter ended September 30, 2024.

“We delivered strong results again this quarter, with accelerating revenue growth, driven primarily by client trust in our ability to innovate across Data, Tech and AI. As a result, we are increasing guidance with 6% revenue growth now expected in 2024, up from 2% in the prior year with continued discipline driving adjusted EPS growth faster than revenue for the fourth year in a row,” said Balkrishan “BK” Kalra, Genpact’s President and CEO. “Our recent AI Day was another important milestone, bringing together more than 100 clients and partners to demonstrate our unique combination of data, domain, and advanced technologies, including AI. Moving forward, we will build on this strong foundation, leveraging gen AI and other advanced technologies to drive superior value for clients.”

Key Financial Highlights – Third Quarter 2024

Total revenue was $1.21 billion, up 7% year-over-year, both on an as reported and constant currency basis.1Data-Tech-AI revenue was $569 million, up 9% year-over-year, both on an as reported and constant currency basis,1 representing 47% of total revenue.3Digital Operations revenue was $642 million, up 5% year-over-year, both on an as reported and constant currency basis,1 representing 53% of total revenue.3Gross profit was $431 million, up 7% year-over-year, with a corresponding margin of 35.6%.Net income was $133 million, up 13% year-over-year, with a corresponding margin of 11%.Income from operations was $182 million, up 10% year-over-year, with a corresponding margin of 15%.Adjusted income from operations was $213 million, up 9% year-over-year, with a corresponding margin of 17.6%.4Diluted earnings per share was $0.74, up 16% year-over-year.Adjusted diluted earnings per share2 was $0.85, up 12% year-over-year.Cash flow from operations was $228 million, up from $162 million in the third quarter of 2023.Genpact repurchased approximately 1.9 million common shares during the quarter for total consideration of approximately $75 million at an average price per share of $38.72.

Outlook

Genpact’s outlook for the fourth quarter of 2024 is as follows:

Total revenue in the range of $1.222 billion to $1.233 billion, representing year-over-year growth of approximately 6.6% to 7.6% as reported, or 5.8% to 6.8% on a constant currency basis.1Digital Operations revenue growth of approximately 5.4% year-over-year and Data-Tech-AI revenue growth of approximately 9.0% year-over-year at the midpoint of the range, as reported.Digital Operations revenue growth of approximately 4.0% year-over-year and Data-Tech-AI revenue growth of approximately 9.0% year-over-year at the midpoint of the range, on a constant currency basis.1Gross margin of approximately 35.6%.Adjusted income from operations margin5 of approximately 17.6%.Genpact’s updated outlook for the full year 2024 is as follows:Total revenue in the range of $4.740 billion to $4.751 billion, representing year-over-year growth of approximately 5.9% to 6.1% as reported, or 6.0% to 6.2% on a constant currency basis,1 up from the prior guidance of approximately 4.0% to 5.0% as reported.Digital Operations revenue growth of approximately 5.9% year-over-year and Data-Tech-AI revenue growth of approximately 6.2% year-over-year at the midpoint of the range, as reported, up from the previous midpoints of 5.2% and 3.8%, respectively.Digital Operations revenue growth of approximately 6.0% year-over-year and Data-Tech-AI revenue growth of approximately 6.2% year-over-year at the midpoint of the range, on a constant currency basis,1 up from the previous midpoints of 5.5% and 3.9%, respectively.Gross margin of approximately 35.4%, up from 35.3%.Adjusted income from operations margin5 of approximately 17.1%, up from 17.0%.Adjusted diluted EPS6 in the range of $3.23 to $3.24, up from the prior range of $3.14 to $3.18.

 

1

Revenue growth on a constant currency basis is a non-GAAP measure and is calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates adjusted for hedging gains/losses in such period.

2

Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of GAAP diluted earnings per share to adjusted diluted earnings per share is attached to this release.

3

Genpact updated the classification of certain service revenues from Digital Operations to Data-Tech-AI in the quarter ended March 31, 2024 to more accurately reflect the nature of, and mode of delivery for, the services provided, which have evolved over time. As a result, the revenue from Digital Operations and Data-Tech-AI for the third quarter of 2023 originally reported was $636 million and $500 million, respectively, which is $612 million and $523 million, respectively, in accordance with the updated classification.

4

Adjusted income from operations and adjusted income from operations margin are non-GAAP measures. Reconciliations of each of GAAP income from operations and GAAP net income to adjusted income from operations and GAAP income from operations margin and GAAP net income margin to adjusted income from operations margin are attached to this release.

5

Adjusted income from operations margin is a non-GAAP measure. A reconciliation of the outlook for each of GAAP income from operations margin and GAAP net income margin to adjusted income from operations margin is attached to this release.

6

Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of the outlook for GAAP diluted earnings per share to adjusted diluted earnings per share is attached to this release.

 

Third Quarter 2024 Earnings Call

Genpact’s management will host a conference call on November 7, 2024, at 5:00PM ET to discuss the company’s performance for the third quarter ended September 30, 2024. Participants are encouraged to register here to receive a dial-in number and unique PIN for seamless access. It is recommended to join 10 minutes before the call starts, although registration and dial-in will be available at any time.  A live webcast will be available on the Genpact Investor Relations website. For those unable to attend the live call, an archived replay and transcript will be available on the website shortly after the call.

About Genpact

Genpact (NYSE: G) is a global professional services and solutions firm delivering outcomes that shape the future. Our 125,000+ people across 30+ countries are driven by our innate curiosity, entrepreneurial agility, and desire to create lasting value for clients. Powered by our purpose – the relentless pursuit of a world that works better for people – we serve and transform leading enterprises, including the Fortune Global 500, with our deep business and industry knowledge, digital operations services, and expertise in data, technology, and AI.

Safe Harbor

This press release contains certain statements concerning our future growth prospects, including our outlook for 2024, financial results and other forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in such forward-looking statements. These risks, uncertainties, and other factors include but are not limited to macroeconomic uncertainty and general economic conditions, any deterioration in the global economic environment and its impact on our clients, our ability to manage our CEO transition and retain senior management, technological innovation, including AI technology and future uses of generative AI and large language models, and our ability to invest in new technologies and adapt to industry developments at sufficient speed and scale, our ability to develop and successfully execute our business strategies, our ability to effectively price our services and maintain pricing and employee utilization rates, general inflationary pressures and our ability to share increased costs with our clients, wage increases in locations in which we have operations, our ability to attract and retain skilled professionals, our ability to protect our and our clients’ data from security incidents or cyberattacks, the economic and other impacts of geopolitical conflicts and any related sanctions and other measures that have been or may be implemented or imposed in response thereto, as well as any potential expansion or escalation of existing conflicts or economic disruption beyond their current scope, a slowdown in the economies and sectors in which our clients operate, a slowdown in the sectors in which we operate, the risks and uncertainties arising from our past and future acquisitions or divestitures, our ability to convert bookings to revenues, our ability to manage growth, factors which may impact our cost advantage, changes in tax rates and tax legislation and other laws and regulations, our ability to effectively execute our tax planning strategies, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, political, economic or business conditions in countries in which we operate, as well as other risks detailed in our reports filed with the U.S. Securities and Exchange Commission, including Genpact’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings are available at www.sec.gov. Genpact may from time to time make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. Although Genpact believes that these forward-looking statements are based on reasonable assumptions, you are cautioned not to put undue reliance on these forward-looking statements, which reflect management’s current analysis of future events and should not be relied upon as representing management’s expectations or beliefs as of any date subsequent to the time they are made. Genpact undertakes no obligation to update any forward-looking statements that may be made from time to time by or on behalf of Genpact.

Contacts

Investors

Tyra Whelton

 +1 (908) 418-2995

tyra.whelton@genpact.com

Media

Siya Belliappa

 +1 (718) 561-9843

siya.belliappa@genpact.com

 

GENPACT LIMITED AND ITS SUBSIDIARIES

 

Consolidated Balance Sheets

(Unaudited)

 (In thousands, except per share data and share count)

As of December 31,
2023

As of September 30,
2024

Assets

Current assets

Cash and cash equivalents

$                          583,670

$                     1,022,647

Accounts receivable, net of allowance for credit losses of $18,278

and $14,833 as of December 31, 2023 and September 30, 2024,

respectively

1,116,273

1,214,098

Prepaid expenses and other current assets

191,566

164,064

Total current assets

$                   1,891,509

$               2,400,809

Property, plant and equipment, net

189,803

207,592

Operating lease right-of-use assets

186,167

185,666

Deferred tax assets

298,921

288,773

Intangible assets, net

53,028

33,337

Goodwill

1,683,782

1,683,053

Contract cost assets

202,543

200,440

Other assets, net of allowance for credit losses of $4,096 and $6,440 as of

December 31, 2023 and September 30, 2024, respectively

299,960

325,990

Total assets

$                   4,805,713

$                5,325,660

Liabilities and equity

Current liabilities

Short-term borrowings

$                            10,000

Current portion of long-term debt

432,242

426,069

Accounts payable

27,739

18,513

Income taxes payable

38,458

52,793

Accrued expenses and other current liabilities

759,180

747,489

Operating leases liability

50,313

49,865

Total current liabilities

$                    1,317,932

$                 1,294,729

Long-term debt, less current portion

824,720

1,201,439

Operating leases liability

168,015

162,004

Deferred tax liabilities

11,706

11,577

Other liabilities

234,948

261,218

Total liabilities

$                    2,557,321

$                2,930,967

Shareholders’ equity

Preferred shares, $0.01 par value, 250,000,000 authorized, none issued

Common shares, $0.01 par value, 500,000,000 authorized, 179,494,132

and 176,347,167 issued and outstanding as of December 31, 2023 and

September 30, 2024, respectively

1,789

1,758

Additional paid-in capital

1,883,944

1,922,042

Retained earnings

1,085,209

1,207,387

Accumulated other comprehensive income (loss)

(722,550)

(736,494)

Total equity

$                  2,248,392

$                2,394,693

Total liabilities and equity

$                   4,805,713

$                5,325,660

 

GENPACT LIMITED AND ITS SUBSIDIARIES

 

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share data and share count)

 

Three months ended September 30,

Nine months ended September 30,

2023

2024

2023

2024

Net revenues

$               1,135,792

$              1,210,949

$              3,330,635

$              3,518,398

Cost of revenue

732,962

779,511

2,167,524

2,274,104

Gross profit

$              402,830

$              431,438

$             1,163,111

$          1,244,294

Operating expenses:

Selling, general and administrative expenses

229,731

243,315

675,642

717,988

Amortization of acquired intangible assets

7,497

6,495

24,009

19,980

Other operating (income) expense, net

(91)

(22)

(4,665)

(5,561)

Income from operations

$               165,693

$              181,650

$              468,125

$               511,887

Foreign exchange gains, net

2,975

1,133

3,698

4,424

Interest income (expense), net

(13,255)

(12,387)

(35,020)

(36,167)

Other income (expense), net

(508)

5,091

6,947

14,128

Income before income tax expense

$               154,905

$               175,487

$              443,750

$              494,272

Income tax expense

37,312

42,669

103,804

122,517

Net income

$               117,593

$              132,818

$             339,946

$               371,755

Earnings per common share

Basic

$                      0.65

$                       0.75

$                       1.86

$                       2.07

Diluted

$                      0.64

$                       0.74

$                       1.83

$                      2.06

Weighted average number of common shares used in
computing earnings per common share

Basic

181,399,897

177,595,400

182,808,518

179,221,213

Diluted

183,801,791

179,714,223

185,737,729

180,854,682

 

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Nine months ended September 30,

2023

2024

Operating activities

Net income

$                 339,946

$                   371,755

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

54,410

51,830

Amortization of debt issuance costs

1,473

1,749

Amortization of acquired intangible assets

24,009

19,980

Loss on the sale of the business classified as held for sale

802

Allowance for credit losses

5,081

12,395

Unrealized gain (loss) on revaluation of foreign currency assets/liabilities

1,283

(7,909)

Stock-based compensation expense

63,850

47,276

Deferred tax (benefit) expense

(7,092)

14,509

Others, net

1,512

386

Change in operating assets and liabilities:

    Increase in accounts receivable

(73,400)

(95,790)

    Increase in prepaid expenses, other current assets, contract cost assets, operating lease
    right-of-use assets and other assets

(110,227)

(5,752)

    Decrease in accounts payable

(9,196)

(8,021)

    Decrease in accrued expenses, other current liabilities, operating lease liabilities and other liabilities

(80,694)

(5,056)

    Increase in income taxes payable

87,149

14,825

Net cash provided by operating activities

$               298,906

$                 412,177

Investing activities

Purchase of property, plant and equipment

(37,330)

(63,049)

Payment for internally generated intangible assets (including intangibles under development)

(2,569)

(1,787)

Proceeds from sale of property, plant and equipment

21

128

Payment for business acquisitions, net of cash acquired

(682)

Payment for divestiture of business

(19,510)

Net cash used for investing activities

$               (60,070)

$                (64,708)

Financing activities

Repayment of finance lease obligations

(9,168)

(8,238)

Payment of debt issuance and refinancing costs

(4,123)

Proceeds of long-term debt

400,000

Repayment of long-term debt

(19,875)

(26,500)

Proceeds from short-term borrowings

148,000

50,000

Repayment of short-term borrowings

(244,000)

(60,000)

Proceeds from issuance of common shares under stock-based compensation plans

34,638

12,170

Payment for net settlement of stock-based awards

(19,687)

(21,307)

Payment of earn-out consideration

(2,399)

Dividend paid

(75,230)

(81,768)

Payment for stock repurchased and retired (including expenses related to stock repurchase)

(150,548)

(167,656)

Net cash (used for) provided by financing activities

$             (338,269)

$                  92,578

Net (decrease) increase in cash and cash equivalents

(99,433)

440,047

Effect of exchange rate changes

(6,328)

(1,070)

Cash and cash equivalents at the beginning of the period

646,765

583,670

Cash and cash equivalents at the end of the period

$                541,004

$             1,022,647

Supplementary information

Cash paid during the period for interest

$                     31,551

$                    39,180

Cash paid during the period for income taxes, net of refund

$                  123,395

$                    77,983

 

Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with GAAP, this press release includes the following non-GAAP financial measures:

Adjusted income from operations;Adjusted income from operations margin;Adjusted diluted earnings per share; andRevenue growth on a constant currency basis.

These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Accordingly, these non-GAAP financial measures, the financial statements prepared in accordance with GAAP and the reconciliations of Genpact’s GAAP financial statements to such non-GAAP financial measures should be carefully evaluated.

Given Genpact’s acquisitions of varying scale and size, and the difficulty in predicting expenses relating to acquisitions and the amortization of acquired intangibles thereof, since July 2012 Genpact’s management has used financial statements that exclude all acquisition-related expenses and amortization of acquired intangibles for its internal management reporting, budgeting and decision-making purposes, including comparing Genpact’s operating results to those of its competitors. For the same reasons, since April 2016, Genpact’s management has excluded the impairment of acquired intangible assets from the financial statements it uses for internal management purposes. Acquisition-related expenses are excluded in the period in which an acquisition is consummated. Genpact’s management also uses financial statements that exclude stock-based compensation expense. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting ASC 718 “Compensation-Stock Compensation,” Genpact’s management believes that providing non-GAAP financial measures that exclude such expenses allows investors to make additional comparisons between Genpact’s operating results and those of other companies.

During the second quarter of 2022, Genpact approved a plan to divest a business that was no longer deemed strategic. Given the specialized nature of this business, we anticipated completing a transaction within twelve months after the end of the second quarter of 2022, and therefore, we classified the revenues and expenses related to this business as held for sale with effect from April 1, 2022. During the first quarter of 2023, the Company consummated this transaction and recorded a loss on the sale of the business.  During the second quarter of 2023, the Company terminated a lease for office property which was fully impaired as part of a restructuring in the second quarter of 2022 and recorded a gain on such lease termination as restructuring income in the second quarter of 2023. Genpact’s management believes that excluding the loss on the sale of, and the revenues and expenses associated with, the business previously designated as held for sale and the gain on the lease termination in calculating its non-GAAP financial measures provides useful information to both management and investors regarding the Company’s financial performance and underlying business trends. Additionally, in its calculations of non-GAAP financial measures, Genpact’s management has adjusted foreign exchange gains and losses, interest income and expense and income tax expenses from GAAP net income, and other income and expenses, and certain gains from GAAP income from operations, because management believes that the Company’s results after taking into account these adjustments more accurately reflect the Company’s ongoing operations. In its calculations of adjusted diluted earnings per share, Genpact’s management adds back stock-based compensation expense, amortization and impairment of acquired intangible assets, acquisition-related expenses and the related tax impact of such adjustments from GAAP diluted earnings per share. For the purpose of calculating adjusted diluted earnings per share, the combined current and deferred tax effect is determined by multiplying each pre-tax adjustment by the applicable statutory income tax rate.

Genpact’s management provides information about revenues on a constant currency basis so that the revenues may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of the Company’s true business performance. Revenue growth on a constant currency basis is calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates adjusted for hedging gains/losses in such period.

Accordingly, Genpact believes that the presentation of adjusted income from operations, adjusted income from operations margin, adjusted diluted earnings per share and revenue growth on a constant currency basis, when read in conjunction with the Company’s reported results, can provide useful supplemental information to investors and management regarding financial and business trends relating to its financial condition and results of operations.

A limitation of using adjusted income from operations and adjusted income from operations margin versus income from operations, income from operations margin, net income and net income margin calculated in accordance with GAAP is that these non-GAAP financial measures exclude certain recurring costs and certain other charges, namely stock-based compensation expense and amortization and impairment of acquired intangible assets. Management compensates for this limitation by providing specific information on the GAAP amounts excluded from adjusted income from operations and adjusted income from operations margin.

The following tables show the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures for the three months and nine months ended September 30, 2023 and 2024:

Reconciliation of Net Income/Margin to Adjusted Income from Operations/Margin

(In thousands)

Three months ended
September 30,

Nine months ended
September 30,

2023

2024

2023

2024

Net income

$        117,593

$        132,818

$       339,946

$        371,755

Foreign exchange (gains), net

(2,975)

(1,133)

(3,698)

(4,424)

Interest (income) expense, net

13,255

12,387

35,020

36,167

Income tax expense

37,312

42,669

103,804

122,517

Stock-based compensation expense

22,314

19,726

63,850

47,276

Amortization and impairment of acquired intangible assets

7,495

6,494

23,895

19,963

Restructuring (income) expense

(4,874)

Operating loss from the business classified as held for sale

1,201

Loss on the sale of the business classified as held for sale

802

Adjusted income from operations

$     194,994

$      212,961

$     559,946

$     593,254

Net income margin

10.4 %

11.0 %

10.2 %

10.6 %

Adjusted income from operations margin

17.2 %

17.6 %

16.8 %

16.9 %

 

Reconciliation of Income from Operations/Margin to Adjusted Income from Operations/Margin

(In thousands)

Three months ended
September 30,

Nine months ended
September 30,

2023

2024

2023

2024

Income from operations

$        165,693

$        181,650

$       468,125

$        511,887

Stock-based compensation expense

22,314

19,726

63,850

47,276

Amortization and impairment of acquired intangible assets

7,495

6,494

23,895

19,963

Other income (expense), net

(508)

5,091

6,947

14,128

Restructuring (income) expense

(4,874)

Operating loss from the business classified as held for sale

1,201

Loss on the sale of the business classified as held for sale

802

Adjusted income from operations

$     194,994

$      212,961

$     559,946

$     593,254

Income from operations margin

14.6 %

15.0 %

14.1 %

14.5 %

Adjusted income from operations margin

17.2 %

17.6 %

16.8 %

16.9 %

 

Reconciliation of Diluted EPS to Adjusted Diluted EPS7

(Per share data) 

Three months ended
September 30,

Nine months ended
September 30,

2023

2024

2023

2024

Diluted EPS

$      0.64

$      0.74

$       1.83

$      2.06

Stock-based compensation expense

0.12

0.11

0.34

0.26

Amortization and impairment of acquired intangible assets

0.04

0.04

0.13

0.11

Restructuring (income) expense

(0.03)

Operating loss from the business classified as held for sale

0.01

Loss on the sale of the business classified as held for sale

Tax impact on stock-based compensation expense

(0.03)

(0.02)

(0.10)

(0.03)

Tax impact on amortization and impairment of acquired intangible assets

(0.01)

(0.01)

(0.03)

(0.03)

Tax impact on restructuring income (expense)

0.01

Tax impact on operating loss from the business classified as held for sale

Tax impact on loss on the sale of the business classified as held for sale

Adjusted diluted EPS

$      0.76

$      0.85

$       2.16

$       2.37

7

Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.

 

The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the year ending December 31, 2024:

Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin8

Year ending December 31, 2024

Net income margin

10.6 %

Estimated interest (income) expense, net

1.1 %

Estimated income tax expense

3.4 %

Foreign exchange (gains), net

(0.1) %

Estimated stock-based compensation expense

1.4 %

Estimated amortization and impairment of acquired intangible assets

0.6 %

Adjusted income from operations margin

17.1 %

 

Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from

Operations Margin8

Year ending December 31, 2024

Income from operations margin

14.6 %

Estimated stock-based compensation expense

1.4 %

Estimated amortization and impairment of acquired intangible assets

0.6 %

Estimated other income (expense), net

0.5 %

Adjusted income from operations margin

17.1 %

 

Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS8

(Per share data)

Year ending December 31, 2024

Lower

Upper

Diluted EPS

$               2.80

$                2.81

Estimated stock-based compensation expense

0.38

0.38

Estimated amortization and impairment of acquired intangible assets

0.15

0.15

Estimated tax impact on stock-based compensation expense

(0.05)

(0.05)

Estimated tax impact on amortization and impairment of acquired intangible assets

(0.04)

(0.04)

Adjusted diluted EPS

$                3.23

$                3.24

8

Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.

 

The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the quarter ending December 31, 2024:

Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin9

Quarter ending December 31, 2024

Net income margin

10.7 %

Estimated interest (income) expense, net

1.3 %

Estimated income tax expense

3.3 %

Estimated stock-based compensation expense

1.7 %

Estimated amortization and impairment of acquired intangible assets

0.5 %

Adjusted income from operations margin

17.6 %

 

Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from

Operations Margin9

Quarter ending December 31, 2024

Income from operations margin

14.9 %

Estimated stock-based compensation expense

1.7 %

Estimated amortization and impairment of acquired intangible assets

0.5 %

Estimated other income (expense), net

0.4 %

Adjusted income from operations margin

17.6 %

9

Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.

 

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WILDBRAIN REPORTS Q1 2025 RESULTS

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Q1 2025 Highlights

Revenue was $111.0 million, compared to $105.5 million in Q1 2024.Net loss was $10.6 million, compared with net loss of $15.5 million in Q1 2024.Adjusted EBITDA1 was $15.3 million, compared to $18.9 million in Q1 2024.Cash provided by operating activities was $25.8 million, compared to cash used in operating activities of $3.0 million in Q1 2024.Free Cash Flow1 was positive $4.8 million, compared to negative $25.4 million in Q1 2024.

TORONTO, Nov. 7, 2024 /CNW/ – WildBrain Ltd. (“WildBrain” or the “Company”) (TSX: WILD), a global leader in kids’ and family entertainment, today reported its first quarter (“Q1 2025”) results for the period ended September 30, 2024.

Josh Scherba, WildBrain President and CEO, said: “We started Fiscal Year 2025 with strong growth in Global Licensing, led by our iconic brands—Peanuts, Strawberry Shortcake and Teletubbies. The work we’ve been doing to simplify our business and focus on our key brands, especially building new fandom and engagement for Strawberry and Teletubbies, is showing greenshoots in our results as consumers reengage with these beloved brands. In our production business, the pipeline continues to build, and that activity will fuel earnings growth later in this fiscal year, and more importantly, in Fiscal Year 2026 and beyond. We are harnessing momentum across our business and are well positioned to deliver growth in both revenue and profitability this fiscal year.”

Nick Gawne, WildBrain CFO, added: “As we announced in July, we are pleased to have successfully refinanced our debt, extended our maturity and repaid the convertible debentures. The strength in Global Licensing this quarter highlighted our strategy focusing on key franchises, and we continue to execute on our priorities of simplifying our business, reducing leverage over time and prioritizing on our high-growth areas of the business while managing our operating efficiency.”

Fiscal Year 2025 Outlook

The Company reaffirms its previously announced outlook for Fiscal Year 2025. We expect:

Revenue growth of approximately 10 to 15%, andAdjusted EBITDA growth of approximately 5 to 10%.

Q1 2025 Financial Highlights

Financial Highlights

(in millions of Cdn$)

Three Months Ended

September 30,

2024

2023

Revenue

$111.0

$105.5

Gross Margin

$52.7

$51.8

Gross Margin (%)

47 %

49 %

Adjusted EBITDA attributable to WildBrain

$15.3

$18.9

Net Income (Loss) attributable to WildBrain  

$(10.6)

$(15.5)

Basic Earnings (Loss) per Share

$(0.05)

$(0.08)

Cash Provided by Operating Activities

$25.8

$(3.0)

Free Cash Flow

$4.8

$(25.4)

In Q1 2025, revenue increased 5% to $111.0 million, compared to $105.5 million in Q1 2024.

Content Creation and Audience Engagement revenue decreased 14% to $40.8 million in Q1 2025, compared to $47.2 million in Q1 2024. Production revenue was lower year-over-year as a result of fewer productions in the studios as compared to the prior year as well as timing of live action productions. Audience Engagement partially offset the drop in Content Creation revenues with growth in music licensing and YouTube network revenues.

Global Licensing revenue increased 27% to $62.9 million in Q1 2025, compared to $49.5 million in Q1 2024. Revenue in the quarter was driven by strong growth in Peanuts, growth within our global licensing agency, WildBrain CPLG, as well as strong growth in WildBrain’s owned brands, Strawberry Shortcake and Teletubbies.

Gross margin for Q1 2025 was 47%, compared to gross margin of 49% in Q1 2024. Gross margin for Q4 2024 was $52.7 million, an increase of $0.9 million, compared to $51.8 million for Q1 2024. 

Cash provided by operating activities in Q1 2025 was $25.8 million, compared to $3.0 million cash used in operating activities in Q1 2024. Free Cash Flow was positive $4.8 million in Q1 2025, compared with Free Cash Flow of negative $25.4 million in Q1 2024.

Adjusted EBITDA declined 19% to $15.3 million in Q1 2025, compared with $18.9 million in Q1 2024. Higher gross margin dollars were offset by higher SG&A, reflecting the recovery of a previously reserved bad debt of $2.8 million in Q1 2024.

Q1 2025 net loss was $10.6 million compared to net loss of $15.5 million in Q1 2024. The change was primarily driven by higher gross margin dollars, offset by higher SG&A and higher interest costs.

1.

Free Cash Flow, Gross Margin, Adjusted EBITDA and Adjusted EBITDA attributable to WildBrain are non-GAAP financial measures – see below for further details.

Q1 2025 Conference Call

The Company will hold a conference call on November 8, 2024 at 10:00 a.m. ET to discuss the results.

To immediately join the call by phone on that date without operator assistance, please use the following URL to receive a toll-free automated instant call back connecting you into the conference:

https://link.meetingpanel.com/?id=11401

Alternatively, you may dial direct to be entered into the call by an operator, referencing conference ID 11401 at +1 888-510-2154 in North America or +1 437-900-0527 internationally.

If dialing in, please allow 10 minutes to be connected to the conference call.

Replay will be available after the call on +1 (888) 660-6345 or +1 (289) 819-1450, under passcode 11401#, until November 15, 2024.

The audio and transcript will also be archived on our website approximately three business days following the event.

For more information, please contact:

Investor Relations: Kathleen Persaud – VP, Investor Relations, WildBrain
kathleen.persaud@wildbrain.com
+1 212-405-6089

Media: Shaun Smith – Sr. Director, Global Communications & Public Relations, WildBrain
shaun.smith@wildbrain.com
+1 416-977-7230

About WildBrain

At WildBrain we inspire imaginations through the wonder of storytelling. As a leader in 360° franchise management, we are experts in content creation, audience engagement and global licensing, cultivating and growing love for our own and partner brands around the world. With approximately 14,000 half-hours of kids’ and family content  in our library—one of the world’s most extensive—we are home to such treasured franchises as Peanuts, Teletubbies, Strawberry Shortcake, Yo Gabba Gabba!, Inspector Gadget and Degrassi. WildBrain’s mission is to create exceptional entertainment experiences that captivate and delight fans both young and young at heart.

Our studios produce such award-winning series as The Snoopy Show; Snoopy in Space; Camp Snoopy; Strawberry Shortcake: Berry in the Big City; Sonic Prime; Chip and Potato; Teletubbies Let’s Go! and many more. Enjoyed in more than 150 countries on over 500 platforms, our content is everywhere kids and families view entertainment, including YouTube, where our network has garnered over 1.5 trillion minutes of watch time. Our television group owns and operates some of Canada’s most-loved family entertainment channels. WildBrain CPLG, our leading consumer-products and location-based entertainment agency, represents our owned and partner properties in every major territory worldwide. 

WildBrain is headquartered in Canada with offices worldwide and trades on the Toronto Stock Exchange (TSX: WILD). Visit us at wildbrain.com.

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects WildBrain’s current assumptions and expectations regarding future events as at the time they are made. The words “will”, “expects”, “anticipates”, “believes”, “plans”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond WildBrain’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include but are not limited to: changes in general economic, business and political conditions. WildBrain undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Non-IFRS Measures

In addition to the results reported in accordance with IFRS as issued by the International Accounting Standards Board, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of our operating performance and financial position. These non-GAAP financial measures are provided to enhance the user’s understanding of our historical and current financial performance and our prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of our core operating results and ongoing operations and provide a consistent basis for comparison between periods. The following discussion explains the Company’s use of certain non-GAAP financial measures, which are Adjusted EBITDA, Adjusted EBITDA attributable to the Shareholders of the Company, Gross Margin and Free Cash Flow.

Investors are cautioned that these non-GAAP financial measures should not be construed as an alternative measure to net income or loss, or other measures as determined in accordance with GAAP, or as an indicator of the Company’s financial performance or a measure of liquidity and cash flows.

“Adjusted EBITDA” means earnings (loss) before net finance costs, income taxes, amortization of property & equipment and right-of-use and intangible assets, amortization of acquired and library content, equity-settled share-based compensation expense, changes in fair value of embedded derivatives, gain/loss on foreign exchange, reorganization, development and other expenses, impairment of certain investments in film and television programs/acquired and library content/P&E/intangible assets/goodwill, and also includes adjustments for other identified charges, as specified in the accompanying tables. Adjusted EBITDA is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Management believes that certain lenders, investors and analysts use Adjusted EBITDA to measure a company’s ability to service debt and meet other payment obligations, and as a common valuation measurement in the media and entertainment industry. Further, certain of our debt covenants use Adjusted EBITDA in the calculation. The most comparable GAAP measure is earnings before income taxes.

“Adjusted EBITDA attributable to the Shareholders of the Company” means Adjusted EBITDA excluding the portion of Adjusted EBITDA attributable to non-controlling interests.

“Gross Margin” means revenue less direct production costs and expense of film and television produced. Gross Margin is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Gross Margin may not be comparable to similar measures presented by other issuers. Management believes Gross Margin is a useful measure of profitability before considering operating and other expenses and can be used to assess the Company’s ability to generate positive net earnings and cash flows. The most comparable GAAP measure is gross profit.

“Free Cash Flow” means operating cash flow less distributions to non-controlling interests, changes in interim production financing, cash interest paid on our long-term debt, bank indebtedness, and lease liabilities, and principal repayments on our lease liabilities. Free Cash Flow does not have a standardized meaning prescribed by GAAP; accordingly, Free Cash Flow may not be comparable to similar measures presented by other issuers. Management believes Free Cash Flow is a useful measure of the Company’s ability to repay debt, finance strategic business acquisitions and investments, pay dividends, and repurchase shares. The most comparable GAAP measure is cash from operating activities.

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Tucows Reports Financial Results for Third Quarter 2024

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TORONTO, Nov. 7, 2024 /PRNewswire/ – Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its financial results for the third quarter ended September 30, 2024. All figures are in U.S. dollars.

“Tucows finished the third quarter of 2024 with strong year-over-year growth of revenue, gross profit and adjusted EBITDA. We have focused on generating revenue and margin gains, and as importantly, we have implemented cost controls across all of our businesses, said Elliot Noss, Tucows President and CEO. In our Ting business, we recently undertook a second reduction in workforce as part of a capital efficiency plan and operational pivot towards maximizing penetration and contribution of existing network footprints. We also continued to deleverage the business with payments on the syndicated debt using cash flow from Wavelo and Tucows Domains.”

Financial Results

Consolidated net revenue for the third quarter of 2024 increased 6.1% to $92.3 million from $87.0 million for the third quarter of 2023, driven primarily by year-over-year revenue gains from Ting and Domains.

Gross profit for the third quarter of 2024 increased 32.4% to $22.2 million from $16.8 million from the third quarter of 2023. The increase in gross profit was driven primarily by large gross margin gains from Ting, as well as gains from Domains. The increase continues to be partially offset by network depreciation from the Ting network.

Net loss for the third quarter of 2024 was $22.3 million, or a loss of $2.03 per share, compared with net loss of $22.8 million, or $2.09 per share, for the third quarter of 2023. The decreased loss was primarily driven by increases in revenue and gross profit, as well as by a decrease in operating expenses.

Adjusted EBITDA1 for the third quarter of 2024 increased 94.3% to $8.7 million from $4.5 million for the third quarter of 2023. The year-over-year increase was primarily due to growth of revenues from Domains and Ting, and cost management in the Ting business.

Cash equivalents, restricted cash and restricted cash equivalents at the end of the third quarter of 2024 were $91.1 million compared with $52.2 million at the end of the second quarter of 2024 and $122.4 million at the end of the third quarter of 2023.

Summary Financial Results
(In Thousands of US Dollars, Except Per Share Data)

3 Months ended September 30

9 Months ended September 30

2024 (unaudited)

2023 (unaudited)

% Change

2024 (unaudited)

2023 (unaudited)

% Change

Net Revenues

92,297

86,971

6 %

269,177

252,379

7 %

Gross Profit

22,188

16,753

32 %

61,314

48,846

26 %

Income Earned on Sale of Transferred Assets, net

3,853

4,312

(11 %)

10,831

12,971

(16) %

Net Income (Loss)

(22,297)

(22,772)

2 %

(67,385)

(72,823)

7 %

Basic earnings (Loss) per common share

(2.03)

(2.09)

3 %

(6.15)

(6.71)

8 %

Adjusted EBITDA¹

8,688

4,472

94 %

22,068

12,897

71 %

Net cash provided by (used in) operating activities

(4,564)

(6,936)

34 %

(14,950)

(13,774)

(9) %

1.     This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table.

Summary of Revenues, Gross Profit and Adjusted EBITDA
(In Thousands of US Dollars)

Revenue

Gross Margin

Adj. EBITDA¹

3 Months ended
September 30

3 Months ended
September 30

3 Months ended
September 30

2024
(unaudited)

2023
(unaudited)

2024
(unaudited)

2023
(unaudited)

2024
(unaudited)

2023
(unaudited)

Ting Internet Services:

Fiber Internet Services

15,310

12,855

10,989

7,986

(5,070)

(12,176)

Wavelo Platform Services:

Platform Services

10,075

10,697

10,012

10,355

Other Professional Services

7

377

7

149

Total Wavelo Platform

Services

10,082

11,074

10,019

10,504

3,429

4,207

Tucows Domain Services:

Wholesale

Domain Services

49,871

47,657

9,691

9,597

Value Added Services

5,175

4,252

4,666

3,715

Total Wholesale

55,046

51,909

14,357

13,312

Retail

9,669

9,179

5,453

5,063

Total Tucows Domain

Services

64,715

61,088

19,810

18,375

11,529

10,913

Corporate:

Mobile Services and Eliminations

2,190

1,954

(1,134)

(611)

(1,200)

1,528

Network Expenses:

Network, other costs

n/a

n/a

(6,864)

(7,322)

n/a

n/a

Network, depreciation of property and equipment

n/a

n/a

(9,414)

(9,138)

n/a

n/a

Network, amortization of intangible assets

n/a

n/a

(366)

(378)

n/a

n/a

Network, impairment

n/a

n/a

(852)

(2,663)

n/a

n/a

Total Network Expenses

n/a

n/a

(17,496)

(19,501)

n/a

n/a

Total

92,297

86,971

22,188

16,753

8,688

4,472

1 This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table.

Notes: 

1. Adjusted EBITDA

Tucows reports all financial information required in accordance with United States generally accepted accounting principles (GAAP). Along with this information, to assist financial statement users in an assessment of our historical performance, the Company typically discloses and discusses a non-GAAP financial measure, adjusted EBITDA, in press releases and on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of the Company’s core business using similar evaluation measures to those used by management. The Company uses adjusted EBITDA to measure its performance and prepare its budgets. Since adjusted EBITDA is a non-GAAP financial performance measure, the Company’s calculation of adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Because adjusted EBITDA is calculated before certain recurring cash charges, including interest expense and taxes, and is not adjusted for capital expenditures or other recurring cash requirements of the business, it should not be considered as a liquidity measure. Non-GAAP financial measures do not reflect a comprehensive system of accounting and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies and/or analysts and may differ from period to period. The Company endeavors to compensate for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA to net income based on U.S. GAAP, which should be considered when evaluating the Company’s results. Tucows strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

The Company’s adjusted EBITDA definition excludes depreciation, impairment and loss on disposition of property and equipment, amortization of intangible assets, income tax provision, interest expense (net), accretion of contingent consideration, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions, loss on debt extinguishment and costs that are not indicative of on-going performance (profitability), including acquisition and transition costs. Gains and losses from unrealized foreign currency transactions removes the unrealized effect of the change in the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars.

The following table reconciles income before provision for income taxes to Adjusted EBITDA (dollars in thousands):

3 Months ended September 30

9 Months ended September 30

2024
(unaudited)

2023
(unaudited)

2024
(unaudited)

2023
(unaudited)

Net income (Loss) for the period

(22,297)

(22,772)

(67,385)

(72,823)

Less:

Provision (recovery) for income taxes

3,074

(822)

6,068

(5,557)

Depreciation of property and equipment

9,526

9,275

29,686

26,770

Impairment of property and equipment

852

2,663

905

4,679

Amortization of intangible assets

1,209

2,620

4,089

8,101

Interest expense, net

13,095

10,739

37,527

29,120

Loss on debt extinguishment

14,680

Stock-based compensation

1,808

2,308

5,383

6,606

Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities

(197)

340

357

254

Acquisition and transition costs*

1,618

121

5,438

1,067

Adjusted EBITDA

$8,688

$4,472

$22,068

$12,897

* Acquisition and other costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments.

Management Commentary

Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, November 7, 2024, management’s pre-recorded audio commentary (and transcript), discussing the quarter and outlook for the Company will be posted to the Tucows website at http://www.tucows.com/investors/financials.

Following management’s prepared commentary, for the subsequent seven days, until Thursday, November 14, 2024, shareholders, analysts and prospective investors can submit questions to Tucows’ management at ir@tucows.com. Management will post responses to questions in an audio recording and transcript to the Company’s website at http://www.tucows.com/investors/financials, on Tuesday, November 26, 2024, at approximately 4 p.m. ET. All questions will receive a response, however, questions of a more specific nature may be responded to directly.

About Tucows

Tucows helps connect more people to the benefit of internet access through communications service technology, domain services, and fiber-optic internet infrastructure. Ting (https://ting.com) delivers fixed fiber Internet access with outstanding customer support. Wavelo (https://wavelo.com) is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access; provisioning, billing and subscription; developer tools; and more. Tucows Domains (https://tucowsdomains.com) manages approximately 25 million domain names and millions of value-added services through a global reseller network of over 35,000 web hosts and ISPs. Hover (https://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (https://tucows.com).

Tucows, Ting, Wavelo, and Hover are registered trademarks of Tucows Inc. or its subsidiaries.

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectations regarding our ability to realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

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Strengthening Canada’s leadership in telecommunications technology: A new partnership with Ericsson

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The $634.8 million project aims to advance 5G technology and boost R&D and wireless networking technologies in Canada

OTTAWA, ON, Nov. 7, 2024 /CNW/ – In today’s globalized world, Canadians increasingly depend on fast and reliable wireless services in every facet of their lives. That is why the Government of Canada is investing in innovative solutions that will enhance Canada’s telecommunications industry.

Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, finalized an investment of $79.1 million under the Strategic Innovation Fund to support Ericsson’s $634.8 million project to advance 5G technologies for next-generation telecommunications networks. The project will also involve R&D work for cloud-based wireless technologies and architectures, as well as artificial intelligence and quantum computing solutions to meet the needs of customers. This work will be performed at Ericsson’s facilities in Ottawa, Ontario, and Saint-Laurent, Quebec.

This partnership will bring economic benefits to the Ottawa and Montréal regions, stimulate Canada’s 5G ecosystem and drive growth in the entire tech sector. The project is also expected to create 1,200 co-op student positions and more than 190 jobs and to sustain 2,400 jobs in Canada, primarily in well-paying R&D positions. And each job created in this sector creates 1.3 new jobs in the broader economy. The government is making sure that Canada remains at the forefront of telecommunications technology to meet the demands of the future.

Quotes

“Fast, reliable and effective wireless telecommunications are essential to the modern economy. That is why our government is investing in next-generation technologies through its partnership with Ericsson, a global leader in this field with 71 years of deep roots in Canada. This investment will help secure Canada’s position at the forefront of cutting-edge telecommunications development and deployment.”
– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

“Along with being a global leader in the telecommunications sector, Ericsson has also been an outstanding member of the Kanata business community, with deep historical ties to Canada. I am pleased to see this relationship between Ericsson and Canada being strengthened with this investment, which will bolster our economy and contribute to the creation of more than 190 excellent new jobs and the maintenance of 2,400 positions for Canadian workers.”
– The Honourable Jenna Sudds, Minister of Families, Children and Social Development

“Digitalization is an incredible opportunity, and our partnership with the Canadian government, through the Strategic Innovation Fund, will accelerate the advancement of key technologies including 5G, artificial intelligence and quantum computing. This collaboration will not only bolster Canada’s leadership in digital infrastructure but also benefit the entire region. By enhancing our R&D efforts in Ottawa and Montréal, we aim to stimulate Canada’s 5G ecosystem and contribute to the prosperity of the entire tech sector.”
– Börje Ekholm, President and CEO of the Ericsson Group

Quick facts

LM Ericsson, Ericsson Canada Inc.’s parent company, was founded in Sweden in 1876, and Ericsson Canada Inc. has been in operation in Canada since 1953.LM Ericsson has played a significant role in Canada’s innovation ecosystem for over 70 years, having invested over $7.2 billion in R&D over that period.The Ericsson project highlighted today will enable Canada to support the development of international wireless telecommunications industry standards necessary for the future generation of telecommunications hardware, software and services.The next generation of 5G wireless technology is expected to add $40 billion annually to Canada’s economy in the next four years.The information and communications technology sector plays an essential role in Canada’s economy and provides Canadians with good middle-class jobs. Each new job created by an investment in this sector creates 1.3 new jobs in the broader Canadian economy. Every dollar spent in this sector adds almost two dollars to our economy.The Strategic Innovation Fund (SIF) provides major investments in innovative projects that will help grow Canada’s economy for the well-being of all Canadians. SIF covers all sectors of the economy and is available to for-profit and not-for-profit organizations, with the goal of supporting the Canadian innovation network.

Associated links

Strengthening Canada’s position as a global tech leader while growing our economy and creating jobsEricsson Canada Inc.What is 5G?

Stay connected

Find more services and information on the Innovation, Science and Economic Development Canada website.

Follow Innovation, Science and Economic Development Canada on social media.
X (Twitter): @ISED_CA | Facebook: Canadian Innovation | Instagram: @cdninnovation | LinkedIn: Innovation, Science and Economic Development Canada

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