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 ...

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].

[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].

Investors with an interest in Technology Services stocks have likely encountered both TTEC Holdings (TTEC) and MeridianLink (MLNK) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our S ...

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]