TLPFF - Teleperformance SE (TLPFF) Q4 2023 Earnings Call Transcript

2024-03-08 00:55:28 ET

Teleperformance SE (TLPFF)

Q4 2023 Earnings Conference Call

March 7, 2024 05:30 ET

Company Participants

Daniel Julien - Chairman and Co-Chief Executive Officer

Bhupender Singh - Co-Chief Executive Officer

Olivier Rigaudy - Chief Finance Officer

Scott Klein - Chief Executive Officer, Specialized Services

Conference Call Participants

Antonin Baudry - HSBC

Suhasini Varanasi - Goldman Sachs

Karl Green - RBC

Ben Wild - Deutsche Bank

Presentation

Daniel Julien

Good morning, ladies and gentlemen and thank you for being here for our presentation of our 2023 Annual Results. But before to start the formal presentation, I would like to address the elephant in the room now. And the elephant in the room is AI and new Gen AI, an enhancer for the human employees who do a job or is it the beginning of the great replacement. And what I can tell you over the business that we are doing is that it’s mostly an enhancer, more accuracy, more productivity, and it gives us the ability to manage end-to-end more complex solutions. So that’s why we embrace it.

In few cases, but it’s the minority of the cases, it replace the human employee and this is typically for more simple transactional factual interaction. Let’s not forget that we are hired to help companies to reduce the friction that they have with their customers and to maintain the loyalty to the brand. And when a customer contact us, in most of the case, it’s because there is a friction, there is a frustration. And of course, we need to give the accurate answer. And of course, the AI and the Gen AI are of a great help and even adding more possibilities to address more complex situation. But at the end of the day, there is a need for contextualization, common sense and decision. Gen AI has a lot of qualities. And by the way, I use it absolutely every day, and I think it’s fantastic. But when it comes to common sense, decision and empathy, this is the real of the human being people. By the way, for you, if suddenly Gen AI try to show you empathy, then natural attitude of the people is just to get [indiscernible]. Empathy is human and uniquely human.

Having said that, Teleperformance over the decades has always served the different technology waves. We have been a transformer of the customer experience and Teleperformance transformed itself. And this is what we are doing right now. We are going to give you as many examples – tangible example as we can. And now except if I forget something – so now I just would like to tell you also without breaching any confidentiality agreement that out of our top 10 clients and long-term clients in the world, 8 of them are large digital companies, either from Silicon Valley or from China. So which means that it doesn’t seem that this company who are big leaders in AI promotion think that AI is going to replace us.

Finally, I hope that you are going to have a different perception at the end of this presentation of what does Teleperformance? What is the future? And yes, I know that the stock price of Teleperformance has been very much impacted. For us, we work on the long term. We build – we have built and we continue to build a company that leads the market. It’s a strong company, generating a strong cash flow, and there is some kind of mismatch between the current situation in the stock exchange and the reality of the company.

Now please let me start with a more formal presentation. And I think that now I still need to be manual. So yes, 2021, 2022 were great years of tailwinds. There was the COVID, people were confined and they had nothing to do, but to be with their computer and to play with their screen, either on the social media or with the e-commerce and this was a timing of great optimists even in Silicon Valley. 2023, end of the confinement period, what did you all do? I go out, we go to the restaurant, we take the plane and so on. What does it mean? You reserve the time of interaction with the brand because you are not bored and you have something else to do, another priority....

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