CGI Inc
TSX:GIB.A

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CGI Inc
TSX:GIB.A
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Price: 124.8 CAD 0.39% Market Closed
Market Cap: 27.3B CAD

CGI Inc
Investor Relations

CGI Inc., originally founded in 1976 by Serge Godin and André Imbeau as "Conseillers en gestion et informatique," stands as a testament to the evolution of the information technology and business consulting industry. Initially starting with the aim of offering IT consulting services, the company nurtured its roots in Quebec before sprouting branches worldwide. CGI has gradually transformed into a behemoth through a series of strategic acquisitions and solid organic growth. Its business model is akin to a sophisticated mosaic, interweaving IT services, systems integration, and managed services seamlessly. The company’s prowess lies in understanding complex technological needs across various industries and crafting tailored solutions that drive efficiency and innovation for its clients. This focus not only ensures high client satisfaction but also creates a steady revenue stream, with contracts often spanning multiple years.

As CGI navigates the digital landscape, its revenue streams are as diversified as its geographical footprint. Primarily, the company earns through long-term contracts in outsourcing and consulting, designed to optimize and integrate client operations. The beauty of this model is its predictability, which helps in maintaining a reliable financial outlook. By providing end-to-end IT and business process services, CGI plays an indispensable role in modernizing its clients' operations, thus embedding itself deeply into their business processes. The company's revenue is further enriched by its continuous investment in developing proprietary intellectual property solutions, which cater to niche industry needs and set CGI apart from its competitors. This blend of diverse service areas and intellectual capital not only sustains its growth but fortifies CGI’s position in the global market as a trusted partner in digital transformation.

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GIB.A
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Last Earnings Call
Fiscal Period
Q3 2023
Call Date
Jul 26, 2023
AI Summary
Q3 2023

Revenue Growth: CGI reported Q3 revenue of CAD3.62 billion, up 11.2% year-over-year (6.3% in constant currency), with broad-based growth across all sectors and strong performance in government.

Bookings Strength: Contract bookings reached CAD4.4 billion, up nearly 30% YoY, with a book-to-bill ratio of 121% and a record global backlog of CAD25.6 billion.

Margin Expansion: Adjusted EBIT margin grew to 16.1%, up 10 basis points YoY, driven by profitable revenue growth and operational discipline.

EPS & Net Earnings: Diluted EPS rose 15.9% YoY to $1.75; adjusted diluted EPS reached $1.80, up 16.9%. Net earnings increased to $415 million, up 13.9%.

AI Investment: CGI announced plans to allocate $1 billion over the next three years to expand AI services and solutions.

Managed Services & IP: Managed services made up 57% of bookings (up from 48% YoY), and IP bookings contributed 21% of total revenue, both driving longer deal sizes and higher margins.

Positive Outlook: Management expects continued margin improvement and growth, supported by demand for managed services and IP, despite some longer sales cycles and macro uncertainty.

Key Financials
Revenue
CAD3.62 billion
Constant Currency Revenue Growth
6.3%
Bookings
CAD4.4 billion
Book-to-Bill Ratio
121%
Global Backlog
CAD25.6 billion
Adjusted EBIT
CAD585 million
Adjusted EBIT Margin
16.1%
Earnings Before Income Taxes
CAD559 million
Net Earnings
CAD415 million
Net Earnings Margin
11.5%
Diluted EPS
$1.75
Adjusted Diluted EPS
$1.80
Cash Provided by Operating Activities (Q3)
CAD409 million
Cash Provided by Operating Activities (Last 12 Months)
CAD2 billion
DSO (Days Sales Outstanding)
44 days
Return on Invested Capital
15.7%
Net Debt to Capitalization Ratio
21.7%
Cash Readily Available
CAD3 billion
Investment in Business (Q3)
CAD102 million
Stock Buybacks (Q3)
CAD53 million
Consultants and Professionals
91,500
Effective Tax Rate
25.8%
IP as % of Revenue
21%
IP Portfolio Growth
12.4% YoY
Managed Services as % of Bookings
57%
Earnings Call Recording
Other Earnings Calls

Management

Mr. Serge Godin
Founder & Executive Chairman of the Board
No Bio Available
Mr. Steve Perron
Executive VP & CFO
No Bio Available
Ms. Leslie McKay
Senior VP & Chief Information Officer
No Bio Available
Mr. Kevin Morris Linder CA, CPA
Senior Vice President of Investor Relations
No Bio Available
Ms. Susan Balding
Senior Vice-President of Global Marketing & Communication
No Bio Available
Mr. Steven Starace
Senior VP of Human Resources & U.S. Northeast Operations
No Bio Available
Mr. Renaud Caron
Senior Vice President of Strategic Development
No Bio Available
Mr. Michael J. Keating
Senior Vice President of Mergers & Acquisitions
No Bio Available
Mr. Jamie L. Holland
Senior Vice President of Banking & Financial Markets
No Bio Available
Mr. Réjean Bernard
Senior Vice President of Global Infrastructure Services - Canada Business Unit
No Bio Available

Contacts

Address
QUEBEC
MONTREAL
1350 Rene Levesque Boulevard West, 25Th Floor
Contacts
+15148413200.0
www.cgi.com