CGI Inc. (GIB) Q3 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 26, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning ladies and gentlemen and welcome to CGI's Third Quarter Fiscal 2023 Conference Call.

And I would like to turn the meeting over to Mr. Kevin Linder SVP of Investor Relations. Please go ahead sir.

Kevin Linder

Thank you, Sylvie and good morning. With me to discuss CGI's third quarter fiscal 2023 results are George Schindler our President and CEO; and Steve Perron Executive Vice President and CFO.

This call is being broadcast on cgi.com and recorded live at 9:00 A.M. Eastern Time on Wednesday, July 26. 2023. Supplemental slides as well as the press release we issued earlier this morning are available for download along with our Q3 MD&A, financial statements, and accompanying notes, all of which have been filed with both SEDAR+ and EDGAR.

Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those expressed or implied and CGI disclaims any intent or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. The complete Safe Harbor statement is available in both our MD&A and press release as well as on cgi.com. We recommend our investors read it in its entirety.

We are reporting our financial results in accordance with International Financial Reporting Standards or IFRS. As always, we will also discuss non-GAAP performance measures, which should be viewed as supplemental. The MD&A contains definitions of each one used in our reporting. All of the dollar figures expressed on this call are Canadian unless otherwise noted.

I'll now turn it over to Steve to review our Q3 financials and then George will comment on our business and market outlook. Steve?

Steve Perron

Thank you, Kevin and good morning everyone. I'm pleased to share with you the results of our third quarter of fiscal 2023. In Q3, we delivered CAD3.62 billion of revenue, up 11.2% year-over-year or up 6.3% when excluding the impact of foreign exchange.

The following segments generated double-digit constant currency growth; UK and Australia up 15%; Asia-Pacific up 13%; and Western and Southern Europe up 10%. From an industry perspective, we had growth across all sectors with particular strength in government, our largest vertical market generating constant currency growth of 11%.

IP as a percentage of total revenue was 21% in the quarter, up CAD85 million year-over-year. We continue to see strong demand for our business solutions with overall IP portfolio growth of 12.4% year-over-year or 7.7% in constant currency.