CGI, Inc. (GIB) Q2 2023 Earnings Call Transcript

For the period ending March 31, 2023

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

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, ladies and gentlemen. Welcome to CGI's Second Quarter Fiscal 2023 Conference Call. I would now like to turn the meeting over to Mr. Kevin Linder, SVP of Investor Relations. Please go ahead, Mr. Linder.

Kevin Linder

Thank you, Julie, and good morning. With me to discuss CGI's second 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 AM Eastern Time on Wednesday, April 26, 2023. Supplemental slides as well as a press release we issued earlier this morning are available for download along with our Q2 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 Q2 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 second quarter of fiscal 2023. In Q2, we delivered CAD 3.72 billion of revenue, up 13.7% year-over-year, or up 11.4% when excluding the impact of foreign exchange.

The following segments generated double-digit constant currency growth. Western and southern Europe up 28%, Finland, Poland and Baltic up, 14%; UK and Australia up 11% and Asia-Pacific up 21%. Notably, we continue to see an increase in overall demand for our global delivery, especially offshore. As a result, our offshore operations are now 23% percent of our total employee base, up from 22% in Q2 of last year.