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 Characteristics - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [3] Group 2: TTEC Holdings Analysis - TTEC Holdings (TTEC) has shown a four-week price change of 2.3%, indicating growing investor interest [4] - The stock has gained 29.7% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - TTEC has a beta of 1.26, suggesting it moves 26% higher than the market in either direction, indicating fast-paced momentum [5] - TTEC has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [7] - TTEC is trading at a Price-to-Sales ratio of 0.11, indicating it is reasonably valued at 11 cents for each dollar of sales [7] Group 3: Investment Opportunities - TTEC appears to have significant potential for growth at a fast pace, alongside other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [8] - There are over 45 Zacks Premium Screens available to help identify winning stock picks based on various investing styles [9]

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]

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]

分组1 - TTEC Holdings reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and showing a slight increase from $0.27 per share a year ago, resulting in an earnings surprise of 16.67% [1] - The company posted revenues of $534.23 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.77%, but down from $576.64 million year-over-year [2] - TTEC has only surpassed consensus EPS estimates once in the last four quarters, indicating a mixed performance in earnings expectations [2] 分组2 - The stock has underperformed, losing about 21.4% since the beginning of the year, compared to a decline of 4.3% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $498.66 million, and for the current fiscal year, it is $1.08 on revenues of $2.04 billion [7] - The Zacks Industry Rank places Technology Services in the top 27% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Revenue Performance - TTEC's revenue for Q1 2025 was $534.2 million, a decrease of $42.4 million or 7.4% compared to Q1 2024, with TTEC Digital contributing $108.0 million (20.2%) and TTEC Engage contributing $426.2 million (79.8%) to the total revenue [146][150]. - TTEC Digital segment revenue decreased by $4.0 million or 3.6%, while TTEC Engage segment revenue decreased by $38.4 million or 8.3% due to client exits and conservative cost management by enterprise clients [150][163]. Operating Income and Margins - Operating income for Q1 2025 increased by $1.5 million or 6.6% to $24.2 million, with an operating margin of 4.5%, up from 3.9% in Q1 2024 [151]. - TTEC Digital's operating margin increased to 5.4% in Q1 2025 from 2.9% in the prior year, attributed to lower employee-related costs and improved utilization [162]. - TTEC Engage's operating income decreased by $1.1 million or 5.7% to $18.3 million, with an operating margin of 4.3% [164]. Tax and Interest - The effective tax rate for Q1 2025 was 74.2%, down from 82.3% in Q1 2024, with a normalized tax rate of 37.9% after Non-GAAP adjustments [168]. - Interest income rose to $4.6 million in Q1 2025 from $1.0 million in Q1 2024, while interest expense decreased to $19.8 million from $21.1 million [165]. Cash Flow and Capital Expenditures - Cash flows from operating activities improved to $21.6 million in Q1 2025, compared to a cash outflow of $15.6 million in Q1 2024, driven by increased net cash income and working capital [169][174]. - Free cash flow for the three months ended March 31, 2025 was $16.2 million, a significant improvement from $(29.1) million in the same period of 2024 [177]. - Net cash flows used in investing activities decreased to $5.3 million for the three months ended March 31, 2025, down from $13.4 million in 2024, primarily due to an $8.0 million decrease in capital expenditures [175]. - Total capital expenditures in 2025 are expected to be between 2.2% and 2.4% of revenue, with approximately 51% allocated for business growth and 49% for maintenance of existing assets [181]. Client Concentration and Relationships - The five largest clients accounted for 31.2% of consolidated revenue for the three months ended March 31, 2025, down from 35.7% in 2024, indicating a decrease in client concentration risk [183]. - The company has long-term relationships with its top five clients, with contracts ranging from 7 to 25 years, which helps mitigate client concentration risks [183]. Future Capital Requirements - The company expects to maintain its capital requirements over the next 12 months, but may need to raise additional capital through debt or equity financing depending on future acquisitions or joint ventures [182]. - There were no material changes to the company's contractual obligations and future capital requirements from the date of the 2024 Form 10-K filing through the filing of this report [180]. Offshore Delivery and Risk Management - TTEC plans to continue expanding its offshore delivery capabilities while managing foreign currency risks through a multi-currency hedging program [155][171].