Company Overview - TTEC Holdings, Inc. is a leading global innovator in customer experience (CX) technology and services, specializing in AI-enabled digital CX solutions [3] - The company serves both iconic and disruptive brands, providing outcome-based solutions that enhance the entire customer journey across various virtual interaction channels [3] - TTEC operates through two main business segments: TTEC Digital, which focuses on omnichannel contact center technology, CRM, AI, and analytics solutions, and TTEC Engage, which delivers AI-enabled customer engagement, acquisition, tech support, and fraud prevention services [3] Upcoming Earnings Release - TTEC will release its earnings results after market close on August 7, 2025, followed by a live webcast and conference call on August 8, 2025, at 8:30 a.m. ET [1][2] - A press release will be issued at the time of the earnings announcement, and a replay of the webcast will be available on the TTEC website for those unable to attend live [2]

Core Insights - Percepta celebrates 25 years of transforming customer engagement in the automotive industry, operating in 13 countries and 60 markets [1][6] - The company has launched hundreds of customer experience (CX) programs across various automotive segments, combining deep industry knowledge with a digital-first approach [3][6] - Percepta is committed to investing in technologies and talent to support the next generation of automotive experiences, including smart mobility and connected vehicles [5] Company Overview - Percepta is a joint venture between TTEC Holdings, Inc. and Ford Motor Company, specializing in customer experience solutions for the automotive and mobility sectors [6] - The company provides end-to-end CX support across multiple channels, helping both mass-market and luxury automotive brands optimize sales, service, and fleet solutions [6] - Percepta offers a comprehensive suite of services, including customer care, technical support, and digital analytics, ensuring seamless customer interactions [4][6] Leadership Insights - Karen Gurganious, President of Percepta, emphasizes the company's insider understanding of the automotive industry and its commitment to creating meaningful relationships between brands and customers [2][3] - Ken Tuchman, Chairman and CEO of TTEC, highlights the importance of anticipating customer needs and delivering value throughout the entire customer journey [5]

Core Insights - TTEC Holdings (TTEC) is currently more attractive to value investors compared to MeridianLink (MLNK) based on various valuation metrics and earnings outlook [1][7] Valuation Metrics - TTEC has a forward P/E ratio of 4.63, significantly lower than MLNK's forward P/E of 48.45, indicating TTEC is undervalued [5] - TTEC's PEG ratio is 0.27, while MLNK's PEG ratio is 1.63, suggesting TTEC has a better expected earnings growth relative to its price [5] - TTEC's P/B ratio stands at 0.88, compared to MLNK's P/B of 3.06, further highlighting TTEC's undervaluation [6] Earnings Outlook - TTEC holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while MLNK has a Zacks Rank of 3 (Hold) [3] - The stronger estimate revision activity for TTEC suggests an improving earnings outlook, making it a more favorable option for value investors [7]

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

Core Insights - TTEC Holdings, Inc. has expanded its strategic partnership with Zendesk to enhance customer experience solutions and optimize CRM and workflow capabilities [1][3] - The partnership aims to leverage AI-driven technologies to deliver smarter and more connected customer experiences at scale [4][3] - TTEC will serve as a full-stack delivery and implementation partner across the Zendesk platform, focusing on industry-specific solutions for sectors like healthcare and financial services [7] Company Overview - TTEC is a global leader in customer experience technology and services, providing AI-enabled digital solutions that enhance customer interactions across various channels [6] - Zendesk is recognized for its AI-powered service platform, which integrates advanced tools to improve customer experience through automation and human insight [8] Partnership Details - The expanded partnership allows TTEC to utilize the full spectrum of Zendesk's capabilities, enhancing its service offerings for both existing and new clients [3][4] - TTEC will integrate its Amazon Connect capabilities with Zendesk to create seamless omnichannel experiences [7] - The collaboration follows Zendesk's acquisition of Local Measure, enhancing its capabilities in contact center solutions [4]

Core Insights - TTEC Holdings, Inc. reported a quarterly increase in operating margin due to improved utilization and reduced employee-related expenses [1] - The company is expected to see further improvements in operating margin following recent reorganization efforts [1] Financial Performance - The increase in operating margin indicates effective cost management and operational efficiency [1] - The focus on cash flow statements and unlevered free cash flow figures suggests a strong emphasis on financial health and sustainability [1] Investment Perspective - The analysis indicates a long-term beneficial position in TTEC shares, reflecting confidence in the company's future performance [2] - The article aims to provide valuable insights for investors, emphasizing the importance of understanding financial metrics such as EV/FCF, net income, and EV/EBITDA [1]

Core Insights - TTEC Holdings (TTEC) is currently more attractive to value investors compared to MeridianLink (MLNK) based on various financial metrics and rankings [1][3][7] Valuation Metrics - TTEC has a forward P/E ratio of 4.39, significantly lower than MLNK's forward P/E of 47.24, indicating TTEC is undervalued [5] - TTEC's PEG ratio stands at 0.26, while MLNK's PEG ratio is 1.59, suggesting TTEC has better growth potential relative to its price [5] - TTEC's P/B ratio is 0.83, compared to MLNK's P/B of 2.98, further highlighting TTEC's undervaluation [6] Earnings Estimates - TTEC holds a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while MLNK has a Zacks Rank of 3 (Hold) [3][7] - The stronger estimate revision activity for TTEC suggests an improving earnings outlook compared to MLNK [7] Value Grades - TTEC has been assigned a Value grade of B, while MLNK has a Value grade of D, reflecting TTEC's more favorable valuation metrics [6]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum [2] Group 2: TTEC Holdings as a Momentum Stock - TTEC Holdings (TTEC) has shown significant recent price momentum with a four-week price change of 29.3% [3] - Over the past 12 weeks, TTEC's stock has gained 49.3%, indicating strong long-term momentum [4] - TTEC has a beta of 1.22, suggesting it moves 22% more than the market in either direction [4] - TTEC has a Momentum Score of A, indicating a favorable entry point for investors [5] Group 3: Earnings Estimates and Valuation - TTEC has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [6] - The stock is trading at a Price-to-Sales ratio of 0.11, indicating it is relatively cheap at 11 cents for each dollar of sales [6] - TTEC appears to have significant potential for further price appreciation [7]

While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. TTEC meets this criterion too, as the stock gained 49.3% over the past 12 weeks. A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 41.7%, the stock of this customer engagement management company is certainly well-positioned in this regard. Momentum investing is essentially the opposite of the tried- ...

Financial Data and Key Metrics Changes - In Q1 2025, revenue was $534 million, a decrease of 7.4% from $577 million in the prior year, but exceeded the company's plan due to stronger revenue retention [18] - Adjusted EBITDA increased to $56 million, or 10.6% of revenue, compared to $55 million, or 9.5% in the prior year [18] - Operating income was $41 million, or 7.8% of revenue, up from $38 million, or 6.6% in the prior year [18] - Earnings per share decreased to $0.28 from $0.27 in the prior year [18] - Free cash flow improved to $16 million from a negative $29 million in the prior year [25] Business Segment Data and Key Metrics Changes - In the Digital segment, Q1 revenue was $108 million, down 3.6% year-over-year, but grew 2.8% excluding one-time product sales [19] - Recurring managed service offerings in Digital increased by 2.7%, representing approximately 66% of total revenue [19] - In the Engage segment, revenue decreased by 8.3% to $426 million, but operating income was $29 million, relatively flat compared to the prior year [22] - The Engage backlog was $1.59 billion, or 101% of the 2025 revenue guidance, up from 94% for the same period in 2024 [24] Market Data and Key Metrics Changes - The last twelve-month revenue retention rate for Engage was 88%, down from 94% in the prior year, but adjusted for a large client decline, it was 93% [25] - Digital's first quarter operating income improved to $12 million, or 11.2% of revenue, compared to $9 million, or 8.3% in the prior year [20] Company Strategy and Development Direction - The company is focused on three priorities: increasing diversification across clients and solutions, transforming experiences through digital innovation, and strengthening financial performance [5] - The strategy includes expanding offshore operations and integrating AI solutions to enhance operational efficiency and client offerings [10][21] - The company aims to differentiate itself through deep partnerships with hyperscalers and a singular focus on digital customer experience transformation [48] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious approach from clients due to economic uncertainties and trade policy impacts, affecting their capital expenditure decisions [3][36] - Despite the cautious environment, the company is optimistic about signing new enterprise clients and expanding existing relationships [6][28] - The outlook for the second half of 2025 remains cautious, with management reiterating the importance of operational agility and cost optimization [27][29] Other Important Information - The company received multiple Stevie Awards for excellence in sales and service for its AI-enabled solutions [14] - The normalized tax rate increased to 37.9% in Q1 2025 from 32.7% in the prior year, primarily due to a US valuation allowance [27] Q&A Session Summary Question: Client adoption challenges - Management acknowledged that while clients are excited about new technologies, they are hesitant due to reliability concerns and economic uncertainties impacting their investment levels [35][36] Question: Differentiation with hyperscalers - Management emphasized their extensive experience and successful track record in building relationships with hyperscalers, which sets them apart from competitors [45][48] Question: Cost optimization efforts - Management confirmed ongoing cost optimization efforts and the need for continuous improvement, while also investing in product development and AI [49][50] Question: Demand environment and pipeline strength - Management expressed confidence in their pipeline and backlog, noting that while contract sizes may be smaller initially, they expect growth through successful execution [79][80] Question: Pricing pressures - Management indicated that while there is competitive pricing pressure, they maintain a disciplined approach to pricing, focusing on long-term profitability [82][84]