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 March 31, 2025 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. ...

[First Quarter 2025 Financial Results](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) The company reports a Q1 2025 revenue decline but improved profitability and a significant cash flow turnaround [Executive Summary](index=1&type=section&id=Executive%20Summary) TTEC's first-quarter 2025 performance exceeded internal plans despite client caution due to economic uncertainty - The company reported a **good start to 2025**, with financial performance exceeding plans and key achievements in new client acquisition and operational performance[2](index=2&type=chunk) - Management highlights that **clients are cautious** due to the current economic environment and uncertainty in trade policy, making future predictions difficult[3](index=3&type=chunk) [First Quarter 2025 Financial Highlights](index=1&type=section&id=FIRST%20QUARTER%202025%20FINANCIAL%20HIGHLIGHTS) Q1 2025 saw a 7.4% GAAP revenue decrease to $534.2 million, but improved profitability and higher EBITDA Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Revenue | $534.2M | $576.6M | -7.4% | | GAAP Income from Operations | $24.2M | $22.7M | +6.6% | | Non-GAAP Income from Operations | $41.5M | $37.9M | +9.5% | | Non-GAAP Adjusted EBITDA | $56.4M | $54.9M | +2.7% | | GAAP Diluted EPS | $0.07 | $0.01 | +600% | | Non-GAAP Diluted EPS | $0.28 | $0.27 | +3.7% | - Foreign exchange fluctuations had a mixed impact, reducing revenue by **$6.0 million** while positively affecting Non-GAAP income from operations by **$4.2 million**[4](index=4&type=chunk) [Cash Flow and Balance Sheet](index=2&type=section&id=CASH%20FLOW%20AND%20BALANCE%20SHEET) The company showed significantly improved liquidity with positive operating cash flow and increased borrowing capacity Cash Flow and Liquidity Comparison (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash Flow from Operations | $21.6M | ($15.6M) | | Free Cash Flow | $16.2M | ($29.1M) | | Capital Expenditures | $5.4M | $13.5M | | Net Debt | $881.4M | $865.3M | | Borrowing Capacity | ~$230M | ~$95M | [Segment Performance](index=2&type=section&id=SEGMENT%20REPORTING%20%26%20COMMENTARY) This section details the financial performance of the TTEC Digital and TTEC Engage operating segments [TTEC Digital](index=2&type=section&id=TTEC%20Digital) TTEC Digital's revenue declined slightly, but operating income and margins showed significant year-over-year growth TTEC Digital Q1 Performance (2025 vs 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Revenue | $108.0M | $112.0M | | GAAP Income from Operations | $5.9M | $3.3M | | GAAP Operating Margin | 5.4% | 2.9% | | Non-GAAP Income from Operations | $12.1M | $9.3M | | Non-GAAP Operating Margin | 11.2% | 8.3% | - The segment's performance is benefiting from a client-centric go-to-market approach and **AI-enabled solutions** that are resonating well in the market[12](index=12&type=chunk) [TTEC Engage](index=2&type=section&id=TTEC%20Engage) TTEC Engage experienced a revenue decrease, partly due to FX, but improved its Non-GAAP operating margin TTEC Engage Q1 Performance (2025 vs 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Revenue | $426.2M | $464.6M | | GAAP Income from Operations | $18.3M | $19.4M | | GAAP Operating Margin | 4.3% | 4.2% | | Non-GAAP Income from Operations | $29.4M | $28.7M | | Non-GAAP Operating Margin | 6.9% | 6.2% | - Strategic priorities for TTEC Engage include improving operational agility, providing **digitally enabled solutions**, and optimizing its cost structure[12](index=12&type=chunk) - Foreign exchange had a negative impact of **$5.5 million** on revenue and a positive impact of **$4.2 million** on income from operations[13](index=13&type=chunk) [Business Outlook](index=3&type=section&id=BUSINESS%20OUTLOOK) The company reiterates its full-year 2025 financial guidance for the consolidated business and its segments [TTEC Full Year 2025 Outlook](index=4&type=section&id=TTEC%20Full%20Year%202025%20Outlook) TTEC reiterates its full-year 2025 guidance, projecting revenue between $2,014 million and $2,064 million - The company is **re-iterating its full-year outlook**, expressing confidence that both segments are well-positioned to navigate the current uncertain economic environment[13](index=13&type=chunk) TTEC Full Year 2025 Guidance | Metric | Guidance Range | Mid-Point | | :--- | :--- | :--- | | Revenue | $2,014M - $2,064M | $2,039M | | Non-GAAP adjusted EBITDA | $215M - $235M | $225M | | Non-GAAP adjusted EBITDA margins | 10.7% - 11.4% | 11.0% | | Non-GAAP operating income | $154M - $174M | $164M | | Non-GAAP earnings per a share | $0.95 - $1.20 | $1.08 | [Segment Full Year 2025 Outlook](index=4&type=section&id=Segment%20Full%20Year%202025%20Outlook) The outlook provides specific revenue and Non-GAAP operating income margin targets for the Engage and Digital segments Engage Full Year 2025 Outlook | Metric | Guidance Range | Mid-Point | | :--- | :--- | :--- | | Revenue | $1,556M - $1,586M | $1,571M | | Non-GAAP operating income margins | 6.5% - 7.1% | 6.8% | Digital Full Year 2025 Outlook | Metric | Guidance Range | Mid-Point | | :--- | :--- | :--- | | Revenue | $458M - $478M | $468M | | Non-GAAP operating income margins | 11.5% - 12.7% | 12.1% | [Financial Statements and Reconciliations](index=7&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents the detailed consolidated financial statements and reconciliations of GAAP to Non-GAAP measures [Consolidated Statements of Operations](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The Q1 2025 income statement shows decreased revenue but increased operating income and a significant rise in net income Q1 2025 Consolidated Statement of Operations Highlights (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $534,228 | $576,638 | | Income From Operations | $24,189 | $22,711 | | Net Income | $3,246 | $500 | | Diluted EPS | $0.07 | $0.01 | [Consolidated Balance Sheets](index=9&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet as of March 31, 2025, reflects total assets of $1.726 billion and an increase in total equity Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $85,135 | $84,991 | | Total assets | $1,726,236 | $1,753,380 | | Line of credit (Long-term) | $964,000 | $975,000 | | Total liabilities | $1,444,730 | $1,485,261 | | Total equity | $281,506 | $268,119 | [Consolidated Statements of Cash Flows](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The company generated positive net cash from operations in Q1 2025, a major improvement from the prior-year period Q1 Cash Flow Summary (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $21,592 | ($15,629) | | Net cash used in investing activities | ($5,279) | ($13,448) | | Net cash provided by financing activities | ($13,735) | ($46,488) | | Free Cash Flow | $16,186 | ($29,102) | [Reconciliation of Non-GAAP Financial Information](index=11&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20INFORMATION) This section provides detailed adjustments from GAAP to Non-GAAP metrics like Income from Operations and Adjusted EBITDA Q1 2025 Reconciliation of GAAP to Non-GAAP Income from Operations (in thousands) | Description | Amount | | :--- | :--- | | **GAAP Income from Operations** | **$24,189** | | Restructuring charges, net | $1,996 | | Impairment losses | $761 | | Equity-based compensation expenses | $3,250 | | Amortization of purchased intangibles | $7,750 | | Other adjustments | $3,624 | | **Non-GAAP Income from Operations** | **$41,497** | Q1 2025 Reconciliation of Non-GAAP Income from Operations by Segment (in thousands) | Segment | GAAP Income from Ops | Non-GAAP Income from Ops | | :--- | :--- | :--- | | TTEC Engage | $18,325 | $29,422 | | TTEC Digital | $5,864 | $12,075 |

Core Viewpoint - TTEC Holdings, Inc. is expanding its operations in India by opening a new customer experience center in Mohali, which will create 400 new jobs to support a major U.S.-based healthcare organization [1][5]. Group 1: Expansion Details - The new customer experience center in Mohali will initially operate from C-205, Phase 8B, Industrial Area, Sector 74, Mohali, Punjab, and is expected to move to Quark City, an IT and tech hub, in August [3]. - TTEC has been operating in India for 24 years and has previously expanded its workforce, adding 800 positions in 2024 across its Mumbai and Hyderabad facilities [5]. Group 2: Technology and Services - The Mohali center will utilize TTEC's latest AI-enabled technologies, including TTEC Perform, TTEC Let Me Know, and TTEC Clarity, to enhance customer service experiences [4]. - TTEC's services encompass AI-enhanced customer engagement, customer acquisition, tech support, and fraud prevention, reflecting its commitment to delivering exceptional customer experiences [7]. Group 3: Talent and Cultural Alignment - Mohali was chosen for its scalable, English-proficient talent pool and cultural values that align with TTEC's service-first mindset, emphasizing selfless service and community cohesion [2]. - The company currently employs approximately 3,500 individuals across India, including locations in Ahmedabad and Chennai, showcasing its investment in regional talent and infrastructure [5].

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Core Insights - TTEC Holdings, Inc. will release its earnings results after market close on May 8, 2025, followed by a live webcast and conference call on May 9, 2025, at 8:30 a.m. ET [1][2] Company Overview - TTEC 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 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, back office, and fraud prevention services [3] - Founded in 1982, TTEC has a strong commitment to CX excellence, reflected in high client, customer, and employee satisfaction scores globally [3] - The company employs a workforce across six continents, integrating technology and human interaction to achieve superior customer satisfaction and business results [3]

Core Insights - TTEC Holdings, Inc. has been awarded five 2025 Stevie® Awards for its AI-powered customer experience solutions, highlighting its leadership in the CX technology sector [1][2][6] Awards and Recognition - TTEC received two Gold, one Silver, and two Bronze Stevie® Awards, reflecting its commitment to enhancing customer and employee experiences through AI technology [2][6] - The awards validate TTEC's impact on client outcomes, including improved customer satisfaction and operational efficiencies [3][6] Award-Winning Innovations - **Gold – Customer Service Training or Coaching Program of the Year**: TTEC Perform, a real-time coaching tool, increased sales conversions by 10% and reduced average handle time by 6% for an insurance client [3] - **Gold – Innovation in Sales**: TTEC's AI-Powered Service to Sales solution led to a 27% revenue lift per associate for a telecom client in just 15 days [4] - **Silver – Customer Service Success**: TTEC's training for a medical device company reduced error rates to 0.03% and cut handle time by over 50% [4] - **Bronze – Use of Data & Analytics in Customer Service**: TTEC Insights helped an automaker client uncover $3.2 million in new revenue potential and reduced coaching time by 53% [5] - **Bronze – Best Use of Technology in Customer Service**: Addi AI enabled multilingual conversations, reducing interpreter costs by up to 80% in sectors like healthcare and education [5] Company Overview - TTEC is a global innovator in customer experience technology and services, focusing on AI-enabled digital solutions [7][8] - The company serves a diverse range of brands and offers outcome-based solutions that enhance the customer journey across various interaction channels [7][8] - Founded in 1982, TTEC emphasizes the integration of technology and human expertise to deliver superior customer experiences [8]

Core Insights - TTEC Holdings (TTEC) is currently viewed as a more attractive investment compared to Ibotta (IBTA) based on various valuation metrics and earnings outlook [1][7] Valuation Metrics - TTEC has a forward P/E ratio of 3.41, significantly lower than IBTA's forward P/E of 35.92, indicating TTEC may be undervalued [5] - The PEG ratio for TTEC is 0.42, while IBTA's PEG ratio stands at 3.82, suggesting TTEC has better growth potential relative to its price [5] - TTEC's P/B ratio is 0.70, compared to IBTA's P/B of 2.80, further supporting TTEC's valuation as more favorable [6] Earnings Outlook - TTEC is currently rated with a Zacks Rank of 2 (Buy), reflecting a positive earnings estimate revision trend, while IBTA has a Zacks Rank of 5 (Strong Sell), indicating a less favorable outlook [3][7]

Core Insights - TTEC Holdings Inc. has been awarded the 2024 CX Evolution Partner of the Year Award by Genesys, recognizing its leadership in customer experience (CX) technology and services [1][3] - TTEC Digital has a long-standing partnership with Genesys, having successfully led numerous customers to cloud migration and demonstrating comprehensive CX transformation capabilities [2][4] Company Overview - TTEC Holdings, Inc. is a global innovator in AI-enabled digital CX solutions, serving a diverse range of brands and focusing on enhancing customer journeys through advanced technology [6] - The company operates through two main divisions: TTEC Digital, which specializes in omnichannel contact center technology and analytics, and TTEC Engage, which focuses on customer engagement and support services [6] Partnership and Recognition - TTEC Digital has been recognized 15 times by Genesys in various Partner of the Year categories, highlighting its significant contributions to the Genesys ecosystem [3] - The company has over 300 employees dedicated to serving Genesys clients and holds more than 400 Genesys certifications, showcasing its expertise and commitment to excellence in customer experience [4]

Core Viewpoint - TTEC Holdings, Inc. is currently reviewing a non-binding acquisition proposal from its founder, Kenneth Tuchman, to buy shares at $6.85 each, with the Special Committee prepared to engage further on this matter [1][2]. Group 1: Proposal Details - The proposal from Kenneth Tuchman aims to acquire shares not already owned by him and his affiliates at a price of $6.85 per share [1]. - The Special Committee has completed its review of the proposal and preliminary valuation analysis, indicating readiness to consider a definitive transaction proposal [2]. Group 2: Current Status and Actions - No action is required from TTEC's non-affiliated stockholders at this time, and there is no guarantee that a definitive agreement will be reached [3]. - The Special Committee does not commit to providing updates on the proposal or transaction unless legally required [3]. Group 3: Company Overview - TTEC Holdings, Inc. is a global leader in customer experience technology and services, focusing on AI-enabled digital solutions [4]. - The company operates through TTEC Digital and TTEC Engage, providing a range of services including omnichannel contact center technology, customer engagement, and fraud prevention [4]. - Founded in 1982, TTEC emphasizes customer experience excellence, achieving high satisfaction scores globally [4].

Core Insights - TTEC Holdings, Inc. has launched a blended healthcare digital sales model aimed at providing cost-efficient, scalable, and personalized solutions for healthcare organizations [1][3] Group 1: Model Features - The blended digital sales model operates on a shared technology platform, allowing healthcare organizations to utilize a unified digital sales solution while maintaining brand identity and data security [2] - The model combines TTEC's technology with a skilled workforce to streamline digital sales operations and deliver tailored interactions [2][3] Group 2: Key Benefits - The model helps healthcare organizations reduce costs by up to 30% through a shared operating model that optimizes staffing and technology resources [6] - It enhances operational efficiency with a single cloud-based contact center as a service (CCaaS) platform that integrates various functionalities [6] - The use of proven strategies and AI-driven insights increases sales conversion rates, enabling efficient growth of the member base [6] - Personalized support from licensed associates improves member satisfaction by ensuring that interactions reflect the brand's values [6] Group 3: Data Security - TTEC's model adheres to HIPAA-compliant security protocols, utilizing AES 256-bit encryption for data both at-rest and in-transit, ensuring client information privacy [3]