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]

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

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]

Financial Data and Key Metrics Changes - In Q1 2025, the company's revenue was $534 million, a decrease of 7.4% from $577 million in the prior year, but exceeded the forecasted plan [16] - Adjusted EBITDA increased to $56 million, representing 10.6% of revenue, compared to $55 million or 9.5% in the prior year [16] - Operating income rose to $41 million, or 7.8% of revenue, up from $38 million or 6.6% in the prior year [16] - Earnings per share decreased to $0.28 from $0.27 in the prior year [16] - Free cash flow improved to $16 million from a negative $29 million in the prior year [22] 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 [17] - Recurring managed service offerings in Digital increased by 2.7%, representing approximately 66% of total revenue [17] - In the Engage segment, revenue decreased by 8.3% to $426 million, but operating income remained flat at $29 million, with a 70 basis point improvement as a percentage of revenue [20] - The Engage backlog was $1.59 billion, or 101% of the 2025 revenue guidance, up from 94% in the same period of 2024 [21] 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 loss, it was 93% [22] - Digital's first quarter operating income was $12 million, or 11.2% of revenue, compared to $9 million or 8.3% in the prior year [18] 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 [4] - The strategy includes co-investing and collaborating with hyperscalers to build AI-enabled capabilities [4][9] - The company aims to enhance operational excellence and agility while managing costs effectively [26] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are adopting a cautious approach due to economic uncertainties, impacting their investment decisions [2][31] - Despite the cautious environment, the company is encouraged by new client acquisitions and growth in existing client relationships [2][5] - The outlook for the second half of 2025 remains cautious due to potential macroeconomic impacts on client demand [25][26] Other Important Information - The company has made significant investments in proprietary technology and has a strong track record in customer experience (CX) technology [3][12] - The normalized tax rate increased to 37.9% in Q1 2025 from 32.7% in the prior year, primarily due to a valuation allowance against US pretax losses [25] Q&A Session Summary Question: Client adoption challenges - Management indicated that clients are excited about new technologies but are hesitant due to reliability concerns and economic uncertainties impacting their CapEx spending [31][32] Question: Differentiation from peers - The company believes it can differentiate itself through extensive experience and strong relationships with hyperscalers, focusing on digital CX transformation [39][41] Question: Cost optimization efforts - Management confirmed ongoing cost optimization efforts and emphasized the importance of balancing cost savings with investments in technology and AI [46][72] Question: Demand environment and contract sizes - Management noted that while there is a strong pipeline, contract sizes are starting smaller, reflecting caution in the market [78][79] Question: Pricing pressures - Management acknowledged competitive pricing pressures but expressed confidence in maintaining discipline in pricing strategies [82][84]

TTEC Holdings (TTEC) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this customer engagement management company would post earnings of $0.21 per share when it actually produced earnings of $0.19, delivering a surprise of -9.52%.Over the las ...