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]

Core Insights - TTEC Holdings is currently viewed as a more attractive investment compared to Ibotta based on various valuation metrics and earnings outlook [1][7] Valuation Metrics - TTEC has a forward P/E ratio of 3.25, significantly lower than Ibotta's forward P/E of 34.85 [5] - TTEC's PEG ratio stands at 0.40, while Ibotta's PEG ratio is considerably higher at 3.70 [5] - TTEC's P/B ratio is 0.63, indicating a lower market value relative to its book value compared to Ibotta's P/B of 2.50 [6] Earnings Outlook - TTEC is currently rated 2 (Buy) in the Zacks Rank system, indicating a positive earnings estimate revision trend, while Ibotta is rated 5 (Strong Sell) [3][7] - The improving earnings outlook for TTEC enhances its attractiveness as a value investment [7] Value Grades - TTEC has a Value grade of B, whereas Ibotta has a Value grade of D, reflecting TTEC's stronger position in terms of valuation metrics [6]

Core Insights - TTEC Holdings Inc. is expanding its strategic partnership with Verint to include Verint's CX Automation platform in TTEC Digital's Google GCP cloud contact center portfolio [1][2] - The partnership aims to enhance customer experience (CX) by providing instant access to innovations that improve loyalty, revenue, and efficiency in contact centers [2][3] - AI-powered CX automation is identified as a significant trend in the cloud contact center market, allowing organizations to adopt innovations without costly premise upgrades [3] Company Overview - TTEC is a global innovator in customer experience technology and services, focusing on AI-enabled digital CX solutions [5] - The company operates through TTEC Digital, which designs and manages omnichannel contact center technology, and TTEC Engage, which provides AI-enhanced customer engagement services [5] - Founded in 1982, TTEC has a strong commitment to CX excellence, reflected in high satisfaction scores from clients, customers, and employees globally [5] Partnership Details - The collaboration with Verint will provide a comprehensive suite of consulting, integration, and support services to help customers leverage Verint's capabilities [4] - Verint's CX Automation platform will be integrated into TTEC Digital's cloud offerings, enhancing the overall service quality [2][4] - The partnership is positioned to meet the growing demand for cloud technologies and CX automation solutions [2][4]

Core Viewpoint - TTEC Holdings (TTEC) shows potential as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating an improving earnings outlook and potential for continued stock price gains [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions reflects analysts' growing optimism regarding TTEC's earnings prospects, which is expected to positively influence its stock price [2]. - The earnings estimate for the current quarter is $0.25 per share, representing a decrease of 7.41% from the previous year, but the Zacks Consensus Estimate has increased by 94.74% over the last 30 days with two upward revisions and no negative revisions [4]. - For the full year, TTEC is projected to earn $1.09 per share, reflecting a 53.52% increase from the prior year, with two estimates moving higher and one negative revision over the past month, leading to an 18.08% increase in the consensus estimate [5]. Zacks Rank - TTEC currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts on the positive revisions of earnings estimates, which historically correlates with outperformance in stock returns [6]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500 [6]. Investment Outlook - TTEC's strong estimate revisions have led to a 9.4% increase in stock price over the past four weeks, suggesting that there may still be further upside potential, making it a candidate for portfolio addition [7].

Core Insights - TTEC Holdings is currently more attractive to value investors compared to Ibotta based on various valuation metrics and earnings estimate revisions [3][7]. Valuation Metrics - TTEC has a forward P/E ratio of 3.13, significantly lower than Ibotta's forward P/E of 29.29 [5]. - TTEC's PEG ratio is 0.38, indicating a favorable valuation relative to its expected earnings growth, while Ibotta's PEG ratio stands at 3.11 [5]. - TTEC's P/B ratio is 0.61, compared to Ibotta's P/B ratio of 2.10, suggesting TTEC is undervalued relative to its book value [6]. Analyst Outlook - TTEC holds a Zacks Rank of 2 (Buy), reflecting positive earnings estimate revisions, while Ibotta has a Zacks Rank of 5 (Strong Sell) [3][7]. - The stronger estimate revision activity for TTEC indicates a more favorable analyst outlook compared to Ibotta [7].

Core Insights - TTEC Holdings, Inc. has been recognized as a Great Place to Work® in 15 countries, including the addition of Egypt this year, highlighting a culture of trust and collaboration [1][3][4] - The company's commitment to employee experience is linked to exceptional customer experiences, emphasizing an inclusive workplace culture [2][5] - TTEC's recognition is based on employee feedback regarding career development, leadership, and teamwork, showcasing its dedication to a positive workplace environment [2][4] Company Overview - TTEC is a global leader in customer experience (CX) technology and services, focusing on AI-enabled digital CX solutions [5] - The company operates across six continents, providing outcome-based solutions that enhance customer interactions and improve the customer journey [5] - TTEC's business segments include TTEC Digital, which focuses on omnichannel contact center technology, and TTEC Engage, which delivers AI-enhanced customer engagement and support services [5]

TTEC Holdings, Inc. (NASDAQ:TTEC) Q4 2024 Earnings Conference Call February 28, 2024 8:30 AM ET Company Participants Bob Belknapp - Group VP, Corporate Finance Ken Tuchman - Chairman and CEO Kenny Wagers - CFO Conference Call Participants George Sutton - Craig-Hallum Maggie Nolan - William Blair Cassie Chan - Bank of America Operator Thank you for standing by. The conference will begin momentarily. Until such time, you will hear music. Thank you, and please continue to stand by. Welcome to TTEC Holdings, In ...

Financial Data and Key Metrics Changes - For full year 2024, revenue decreased by 10.4% to $2.21 billion compared to $2.46 billion in the prior year, while adjusted EBITDA was $202 million or 9.2% of revenue, down from $272 million or 11% [30][31] - Fourth quarter 2024 revenue was $567 million, a decrease of 9.4% year-over-year but an increase of 7.2% sequentially, with adjusted EBITDA at $51 million or 9% of revenue [32][34] - Cash flow from operations was negative $59 million in 2024, compared to positive $145 million in the prior year, primarily impacted by the discontinuation of the accounts receivable factoring facility [47] Business Segment Data and Key Metrics Changes - In the Digital segment, fourth quarter revenue was $115 million, down from $119 million year-over-year, but recurring managed services grew by 10.2% [35][36] - The Engage segment saw fourth quarter revenue decrease by 10.8% to $452 million, although it increased by 9.4% sequentially [40] - For the full year, Engage revenue was $1.75 billion, down from $1.98 billion in the prior year, with operating income at $85 million or 4.9% of revenue [42][43] Market Data and Key Metrics Changes - The company reported a last twelve-month revenue retention rate of 82% for the Engage segment, down from 95% in the prior year, but adjusted for a large client, the rate is 87% [45] - The Digital backlog for the next twelve months is at $308 million, representing 66% of the 2025 revenue guidance midpoint, slightly down from 69% in the prior year [39] Company Strategy and Development Direction - The company is focused on a diversification strategy, expanding its geographic delivery footprint and client portfolio, and enhancing its digital customer experience (CX) value proposition [7][27] - The integration of AI into operations is a key focus, with over 150 projects underway in the digital segment and significant AI adoption among associates [62] - The company aims to be the leader in CX by combining human expertise with advanced technologies, emphasizing the importance of operational efficiency and profitability improvements in 2025 [26][27] Management's Comments on Operating Environment and Future Outlook - Management described 2024 as a transitional year, expressing constructive dissatisfaction with overall financial results despite progress in margin improvements [10][11] - The company anticipates a decline in Engage revenue of approximately 10% in 2025, primarily due to client decisions and foreign exchange headwinds, but expects to return to growth in the Digital segment [51][53] - Management expressed confidence in the actions taken in 2024 to improve profitability and operational efficiency, with expectations for sequential improvement in gross margins and EBITDA in 2025 [53][56] Other Important Information - Capital expenditures for 2024 were $45 million, or 2% of revenue, down from $68 million or 2.8% in the prior year, with a focus on geographic expansion [50] - The normalized tax rate for 2024 was 40.9%, significantly higher than the prior year's 22.7%, due to the impact of U.S. valuation allowances [50][51] Q&A Session Summary Question: How is AI being integrated into deals and what impacts does it have? - Management indicated that over 150 AI projects are underway, enhancing service quality and associate productivity, with AI tools being implemented across operations [60][62] Question: Can you clarify the 2025 revenue guidance and its assumptions? - Management explained that the guidance is based on sequential growth, with new enterprise clients expected to contribute significantly in the second half of 2025 [69][72] Question: What are the margin improvement strategies for 2025? - Management highlighted ongoing cost structure adjustments and the infusion of AI into operations as key drivers for margin improvement [74][78] Question: How does the offshore delivery impact margins? - Management noted that the offshore mix improved by 300 basis points in 2024 and is expected to continue growing, but margin expansion is more heavily influenced by operational improvements [96][98] Question: How confident is the company in the second half of 2025? - Management expressed high confidence in forecasting revenue for the second half of 2025 based on the onboarding cycle of new clients and existing pipeline visibility [100][102]

Company Performance - TTEC Holdings reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.21 per share, and down from $0.37 per share a year ago, representing an earnings surprise of -9.52% [1] - The company posted revenues of $567.44 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.27%, and down from $626.18 million year-over-year [2] - TTEC has not surpassed consensus EPS estimates over the last four quarters and has topped consensus revenue estimates only once during the same period [2] Stock Performance - TTEC shares have declined approximately 26.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $540.9 million, and for the current fiscal year, it is $0.99 on revenues of $2.2 billion [7] Industry Outlook - The Technology Services industry, to which TTEC belongs, is currently in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact TTEC's stock performance [5]

Revenue Performance - Fourth quarter 2024 revenue was $567.4 million, a decrease of 9.4% compared to $626.2 million in the prior year[7]. - Full year 2024 revenue was $2.208 billion, down 10.4% from $2.463 billion in the prior year[12]. - Revenue for Q4 2024 was $567,437,000, a decrease of 9.4% from $626,181,000 in Q4 2023[32]. - Total revenue for the year 2024 was $2,207,587,000, down 10.4% from $2,462,817,000 in 2023[32]. - TTEC Digital revenue for Q4 2024 was $114,950,000, a decrease of 3.7% from $119,118,000 in Q4 2023[34]. - TTEC Engage revenue for Q4 2024 was $452,487,000, down 10.8% from $507,063,000 in Q4 2023[34]. Profitability Metrics - Fourth quarter 2024 adjusted EBITDA was $50.9 million, or 9.0% of revenue, compared to $57.5 million, or 9.2% of revenue in the prior year[8]. - Full year 2024 non-GAAP adjusted EBITDA was $202.3 million, or 9.2% of revenue, down from $271.5 million, or 11.0% in the prior year[10]. - Full year 2024 GAAP loss from operations was $173.5 million, or negative 7.9% of revenue, compared to income from operations of $118.0 million, or 4.8% in the prior year[12]. - Full year 2024 GAAP fully diluted net loss per share was $6.52, compared to net income per share of $0.39 in the prior year[12]. - For the twelve months ended December 31, 2024, the company reported a net loss of $310,617,000 compared to a net income of $18,264,000 for the same period in 2023[38]. - The company experienced a significant impairment loss of $244,093,000 for the twelve months ended December 31, 2024, compared to $11,733,000 in 2023[40]. Cash Flow and Liquidity - Fourth quarter 2024 cash flow from operations was a negative $1.1 million, compared to a positive $31.5 million for the same period in 2023[16]. - Cash and cash equivalents decreased to $84,991,000 in Q4 2024 from $172,747,000 in Q4 2023[36]. - The net cash provided by operating activities for the twelve months ended December 31, 2024, was negative at $(58,818,000), a stark contrast to $144,765,000 in 2023[38]. - Free cash flow for the twelve months ended December 31, 2024, was $(103,991,000), compared to $76,926,000 in 2023, indicating a significant decline[41]. - Cash, cash equivalents, and restricted cash at the end of the period were $84,991,000, down from $173,905,000 at the beginning of the period[38]. Future Guidance - The company expects full year 2025 revenue guidance of $2.014 billion to $2.064 billion, with a midpoint of $2.039 billion[21]. - For full year 2025, non-GAAP adjusted EBITDA is expected to be between $215 million and $235 million, with a midpoint of $225 million[21]. Operational Performance - Total operating expenses for Q4 2024 were $552,144,000, a decrease of 9.4% from $609,257,000 in Q4 2023[32]. - TTEC Engage reported Q4 24 income from operations of $8,372,000, up from $6,942,000 in Q4 23, representing a 20.5% increase[43]. - TTEC Digital's Q4 24 income from operations was $6,921,000, compared to a loss of $197,213,000 in Q4 23, indicating a significant recovery[43]. - Year-to-date (YTD) 24 adjusted EBITDA for TTEC Engage was $85,177,000, down 38.3% from $138,157,000 in YTD 23[43]. - TTEC Digital's YTD 24 adjusted EBITDA was $51,279,000, a decrease of 17.7% from $62,282,000 in YTD 23[43]. Other Financial Metrics - The effective tax rate for Q4 2024 was 64.1%, compared to a negative rate of 62.0% in Q4 2023[32]. - The diluted shares outstanding increased to 48,150,000 for the twelve months ended December 31, 2024, compared to 47,419,000 in 2023[41]. - The company’s non-GAAP EPS for the twelve months ended December 31, 2024, was $0.71, a decrease from $2.18 in 2023[41]. - Retained earnings decreased significantly to $546,617,000 in Q4 2024 from $870,429,000 in Q4 2023[36]. - Total assets decreased to $1,753,380,000 in Q4 2024 from $2,185,598,000 in Q4 2023[36]. Restructuring and Charges - Restructuring charges for TTEC Engage in Q4 24 were $3,394,000, compared to $1,823,000 in Q4 23, reflecting a 86.2% increase[43]. - Impairment losses for TTEC Engage in YTD 24 totaled $241,149,000, a significant rise from $8,929,000 in YTD 23[43]. - TTEC incurred $1,956,000 in fees related to a non-binding offer in YTD 24, which was not present in YTD 23[43]. - Equity-based compensation expenses for TTEC Engage in YTD 24 were $11,754,000, down 17.6% from $14,257,000 in YTD 23[43]. Foreign Exchange and Other Income - TTEC reported a foreign exchange loss of $1,724,000 in Q4 24, compared to a gain of $1,271,000 in Q4 23[43]. - Other income for TTEC in YTD 24 was $18,311,000, a recovery from a loss of $4,060,000 in YTD 23[43].