TTEC Holdings, Inc. (NASDAQ:TTEC) Q2 2022 Earnings Conference Call August 10, 2022 8:30 AM ET Company Participants Paul Miller – Senior Vice President, Treasurer and Investor Relations Officer Ken Tuchman – Chairman and Chief Executive Officer Shelly Swanback – Chief Executive Officer-TTEC Engage Dustin Semach – Chief Financial Officer Conference Call Participants George Sutton – Craig-Hallum Maggie Nolan – William Blair Mike Latimore – Northland Capital Markets Anja Soderstrom – Sidoti Vincent Colicchio – ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-11919 TTEC Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. E ...

TTEC Holdings, Inc. (NASDAQ:TTEC) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET Company Participants Ken Tuchman - Chairman & CEO Dustin Semach - CFO Shelly Swanback - CEO, TTEC Engage Paul Miller - SVP, Treasurer & IR Conference Call Participants George Sutton - Craig-Hallum Vincent Colicchio - Barrington Research Jared Levine - Cowen & Company Joseph Vafi - Canaccord Genuity Jesse Fink - William Blair Jonathan Seymour - Morgan Stanley Operator Welcome to TTEC’s First Quarter 2022 Earnings Confer ...

For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-11919 TTEC Holdings, Inc. Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-11919 TTEC Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 84-1291044 (State or oth ...

TTEC Holdings, Inc. (NASDAQ:TTEC) Q4 2021 Earnings Conference Call March 2, 2022 8:30 AM ET Company Participants Paul Miller - Senior Vice President, Treasurer and Investor Relations Officer Ken Tuchman - Chairman and Chief Executive Officer Dustin Semach - Chief Financial Officer Conference Call Participants Maggie Nolan - William Blair George Sutton - Craig-Hallum Mike Latimore - Northland Capital Markets Bryan Bergin - Cowen Joseph Vafi - Canaccord James Faucette - Morgan Stanley Operator Welcome to TTEC ...

Financial Data and Key Metrics Changes - Revenue increased by 15% year-over-year to $566 million, with bookings for the quarter at $171 million, including 19 new clients [4][27] - Adjusted EBITDA rose by 2% to $78.7 million, representing 13.9% of revenue compared to 15.7% in the prior year [28] - Non-GAAP operating income decreased by 5.9% to $59.4 million, or 10.5% of revenue, compared to 12.8% in the prior year [29][30] - Non-GAAP EPS was $1.01, relatively unchanged from the prior year, exceeding guidance [29] Business Line Data and Key Metrics Changes - Digital segment revenue increased by 62.1% to $124.1 million, with recurring revenue from subscription-based CX cloud and managed services growing by 18.6% [30] - Engage segment revenue was $442.6 million, a 6.3% increase year-over-year, with organic growth highlighting significant contributions from healthcare, travel, auto, and technology verticals [32] - The recurring revenue bookings increased by 250 basis points to 57.6% of total bookings in the quarter [24] Market Data and Key Metrics Changes - The client base is diversified across verticals and geographies, with accelerated demand in the digital hyper-growth segment, serving 100 clients with an annualized revenue run rate of $400 million [5][11] - The Engage segment's revenue retention rate improved to 118.9%, indicating strong client loyalty and growth [32] Company Strategy and Development Direction - The company aims to grow its digital business to $1 billion, focusing on strategic leadership, expanding product portfolios, and strengthening relationships with CX technology partners [11][20] - The strategy includes increasing market share through differentiated CX offerings, building new channel partnerships, and executing strategic acquisitions [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's fundamental strength, citing a strong bookings growth and expanding revenue backlog [23] - The company anticipates full-year revenue of $2.255 billion, a 15.7% increase over the prior year, and expects continued growth in 2022 [38][39] Other Important Information - A cyber incident in September 2021 had a temporary impact, with an estimated revenue loss of approximately $15.2 million, but operations were restored quickly [16][26] - The company announced leadership changes, with Regina Paolillo becoming Global COO and Dustin Semach as CFO, aimed at enhancing strategic focus [19][21] Q&A Session Summary Question: Impact of Cyber Incident on Top Clients - The cyber incident impacted a small group of clients, with most effects related to caution rather than system failures. Clients appreciated the rapid response [42][44] Question: Drivers of Recent Pipeline and Activity - The competitive landscape has shifted, with companies recognizing the importance of customer experience, leading to increased business for the company [48][50] Question: Revenue Retention and Growth Drivers - Revenue retention is driven by base retention and increased bookings from existing clients, with a focus on digital transformation [55][56] Question: Acquisition Strategy - The company is actively seeking strategic acquisitions to enhance its digital business and expand its Engage geography, while ensuring fair pricing [57][58] Question: Hyper Growth Clients and Digital Engagement - Hyper growth clients represent about 15% to 17% of revenue, with smaller initial bookings that can grow rapidly as they scale [61][64]

Revenue Performance - TTEC's revenue for Q3 2021 was $566.7 million, a 15.0% increase from the same period in 2020, with TTEC Digital contributing $124.1 million (21.9%) and TTEC Engage contributing $442.6 million (78.1%) to the total revenue[177]. - TTEC Digital segment revenue increased by 62.1% to $124.1 million in Q3 2021, driven by cloud platform growth and acquisitions[206]. - TTEC Engage segment revenue rose by 6.3% to $442.6 million, attributed to a net increase of $45.3 million in client programs[208]. - TTEC Engage segment revenue for the nine months increased by 19.0% to $1.4 billion, with operating income rising by 35.5% to $105.4 million[217]. Operating Income and Margins - TTEC Engage's operating income decreased by 56.8% year-over-year, primarily due to a cybersecurity incident that caused operational outages for several clients[197]. - TTEC Digital's operating income decreased by 33.5% due to a reduction in a large multi-year government contract and increased amortization of acquisition-related intangible assets[197]. - Operating income for TTEC Digital decreased by 33.5% to $8.7 million, with an operating margin of 7.0% compared to 17.0% in Q3 2020[207]. - Operating income for TTEC Engage fell by 57.0% to $17.4 million, with an operating margin of 3.9% compared to 9.7% in the prior year, impacted by a cybersecurity incident costing $19.3 million[209]. Cash Flow and Financial Position - Cash and cash equivalents totaled $148.9 million as of September 30, 2021, up from $132.9 million at the end of 2020[229]. - Net cash flows from operating activities for the nine months ended September 30, 2021 were $175.1 million, down from $186.8 million in the prior year[231]. - Free cash flow decreased slightly to $134.3 million for the nine months ended September 30, 2021, from $139.0 million in 2020, attributed to a decrease in working capital and lower capital expenditures[234]. - The company drew down approximately $500 million from its Credit Facility in April 2021 to fund the acquisition of Avtex Solutions, Holdings LLC[226]. Client and Market Dynamics - TTEC serves over 725 clients globally, including Fortune 1000 companies and government agencies, across various industries such as automotive, healthcare, and technology[180]. - The five largest clients accounted for 36.2% of consolidated revenue for the three months ended September 30, 2021, down from 42.6% in 2020, and 38.1% for the nine months ended September 30, 2021, compared to 39.1% in 2020[240]. - The company has long-term relationships with its top five clients, ranging from 15 to 22 years, which mitigates the risk of client concentration[240]. Operational Capacity and Strategy - As of September 30, 2021, TTEC Engage's total production workstations were 39,900, with overall capacity utilization at 62%, an increase from 58% in the prior year[200]. - Adjusted for COVID-19 social distancing protocols, current utilization exceeds 117%, indicating strong demand despite reduced available workstations[200]. - TTEC plans to continue expanding its offshore delivery capabilities while managing foreign currency risk through a multi-currency hedging program[202]. - The company expects to refine its site strategy and capacity post-COVID-19, balancing work-from-home and brick-and-mortar delivery centers[201]. Tax and Interest - The effective tax rate for Q3 2021 was 30.6%, up from 25.9% in Q3 2020, influenced by international earnings and various tax benefits[212]. - Interest income decreased to $0.2 million in Q3 2021 from $0.6 million in Q3 2020, while interest expense increased to $3.5 million from $2.8 million[210]. Future Outlook and Investments - The company expects future capital requirements to depend on investments in infrastructure and may require additional capital through debt or equity financing[239]. - Total capital expenditures in 2021 are expected to be between 2.8% and 3.0% of revenue, with approximately 70% allocated for business growth and 30% for maintenance of existing assets[238].

TTEC Holdings, Inc. (NASDAQ:TTEC) Q2 2021 Earnings Conference Call August 4, 2021 8:30 AM ET Company Participants Paul Miller – Senior Vice President, Treasurer and Investor Relations Officer Ken Tuchman – Chairman and Chief Executive Officer Regina Paolillo – Chief Financial and Administrative Officer Conference Call Participants Maggie Nolan – William Blair Mike Latimore – Northland Capital Markets George Sutton – Craig-Hallum Joseph Vafi – Canaccord James Faucette – Morgan Stanley Bryan Bergin – Cowen Jo ...

Revenue Growth - In Q2 2021, TTEC's revenue increased by $101.7 million, or 22.4%, to $554.8 million compared to the same period in 2020, with TTEC Engage contributing $446.8 million (80.5%) and TTEC Digital contributing $108.0 million (19.5%) to the total revenue [167]. - TTEC Engage segment revenue increased by 18.8% to $446.8 million for the three months ended June 30, 2021, compared to $375.9 million in the same period of 2020 [191]. - TTEC Digital's revenue increased by 40.0% year-over-year to $107.995 million, with a notable growth of 107% when excluding the large multi-year government contract [187][189]. - For the six months ended June 30, 2021, TTEC Engage revenue reached $922.4 million, a 26.3% increase from $730.6 million in 2020, with operating income up 92.9% to $125.5 million [200]. Operating Income and Margins - TTEC Engage's operating income improved by 62.7% year-over-year, driven by increased revenue from financial services and public sector clients, while TTEC Digital's operating income decreased by 33.5% due to a reduction in a large government contract [178]. - Operating income for TTEC Engage rose by 62.7% to $56.3 million, with an operating margin of 12.6%, up from 9.2% in the prior year [192]. - TTEC Digital segment revenue grew by 10.9% to $171.6 million, while operating income decreased by 44.1% to $13.8 million, resulting in an operating margin drop to 8.0% from 15.9% [198]. - The overall operating margin for TTEC in Q2 2021 was 11.9%, up from 10.8% in Q2 2020, reflecting improved operational efficiency [178]. Cash Flow and Financial Position - Positive operating cash flows of $132.8 million were generated during the six months ended June 30, 2021, compared to $105.3 million in 2020 [214]. - Free cash flow increased to $109.2 million for the six months ended June 30, 2021, up from $73.4 million in the prior year [217]. - Net cash flows from operating activities increased to $132.8 million for the six months ended June 30, 2021, compared to $105.3 million in 2020, driven by a $46.9 million increase in net cash income from operations [214]. - Cash and cash equivalents totaled $174.7 million as of June 30, 2021, up from $132.9 million at the end of 2020 [212]. Acquisitions and Investments - The company has been actively acquiring firms to enhance its service offerings, including acquisitions of cloud contact center service providers in 2021 and 2020 [169]. - The company drew down approximately $500 million from its Credit Facility in April 2021 for the acquisition of Avtex Solutions [209]. - Net cash flows used in investing activities rose significantly to $505.3 million for the six months ended June 30, 2021, primarily due to acquisitions [215]. - Total capital expenditures for 2021 are expected to be between 2.9% and 3.1% of revenue, with approximately 60% allocated for business growth and 40% for maintenance of existing assets [221]. Client Relationships and Risks - TTEC serves over 575 clients globally, including Fortune 1000 companies and government agencies, across various industries such as automotive, healthcare, and technology [170]. - One client represented over 10% of total revenue during the six months ended June 30, 2021, while the five largest clients accounted for 36.4% of consolidated revenue for the same period [223]. - The company has long-term relationships with its top five clients, ranging from 15 to 21 years, which mitigates the risk of client concentration [223]. - Some contracts with the five largest clients are set to expire between 2021 and 2023, but historical renewal rates have been high [224]. Future Outlook - The company expects to continue refining its site strategy and capacity post-COVID-19, with a focus on a diversified geographic footprint and a mix of work-from-home and on-site delivery [182]. - The company expects future capital requirements to depend on investments in infrastructure and may require raising additional capital through debt or equity financing [222]. - The effective tax rate for the six months ended June 30, 2021, was 20.3%, down from 26.7% in the same period of 2020 [205]. - Interest expense decreased to $5.2 million for the six months ended June 30, 2021, down from $12.7 million in the same period of 2020 [202].