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]

Financial Data and Key Metrics Changes - For the 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 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 due to the discontinuation of the accounts receivable factoring facility [47][48] Business Line 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 decline in healthcare volumes impacting revenue, while public sector verticals showed volume increases [44] - The Engage backlog for the next twelve months is $1.51 billion, representing 96% of the 2025 revenue guidance at the midpoint [45] 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 to enhance service quality and operational efficiency [62] Management's Comments on Operating Environment and Future Outlook - Management expressed constructive dissatisfaction with overall financial results for 2024, attributing revenue impacts to client business decisions and a muted healthcare enrollment season [10][11] - For 2025, the company anticipates a revenue decline of approximately 10% in the Engage segment but expects to return to growth in the Digital segment, projecting a 5% increase [51][53] Other Important Information - The company plans to continue investing in technology and leadership to improve operational efficiency and profitability in 2025 [80][81] - Capital expenditures for 2024 were $45 million, or 2% of revenue, down from $68 million in the prior year [50] Q&A Session Summary Question: How is AI being integrated into deals and what impacts might it have? - Management indicated that over 150 projects are utilizing AI, enhancing service quality and associate productivity [62] Question: Can you clarify the 2025 revenue guidance and its assumptions? - The guidance reflects expectations for sequential growth in the second half of 2025, driven by new enterprise clients [72] Question: What are the margin improvement strategies for 2025? - The focus remains on operational discipline and AI integration to enhance efficiency and service quality, contributing to margin improvements [78][79] Question: How does the offshore delivery impact margins? - The offshore mix is expected to grow, but margin improvements are primarily driven by operational enhancements rather than just the offshore strategy [97][99] Question: How confident is the company in the second half of 2025? - Management expressed high confidence in forecasting revenue for the second half based on the onboarding cycle of new clients [101]

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].

Financial Performance and Liquidity - Cash and cash equivalents decreased from $172.7 million in 2023 to $85.0 million in 2024, indicating a significant reduction in liquidity[295]. - The company reported net cash flows used in operating activities of ($58.8) million for 2024, a decrease of $203.6 million from the previous year[297]. - The company suspended its semi-annual cash dividend in November 2024 as part of a strategy to prioritize debt reduction[183]. - The company’s remaining borrowing capacity was approximately $225 million as of December 31, 2024, indicating limited financial flexibility[292]. - Free cash flow decreased significantly from $76.9 million in 2023 to negative $104.0 million in 2024, mainly due to a decrease in working capital and net cash income[300]. - Net cash flows from investing activities improved from a negative $67.6 million in 2023 to a positive $0.5 million in 2024, primarily due to a $45.5 million real estate asset sale and a $22.7 million decrease in capital expenditures[298]. - Net cash flows from financing activities improved from a negative $68.2 million in 2023 to a negative $38.3 million in 2024, driven by a $46.4 million reduction in dividends paid and a $37.7 million reduction in contingent consideration payments[299]. Debt and Credit Facilities - The credit facility was amended to increase the net leverage ratio covenant to up to 5.15 to 1 and the minimum interest coverage ratio to not less than 2.00 to 1, effective through March 31, 2026, with total lenders' commitment reduced from $1.5 billion to $1.2 billion[119]. - As of December 31, 2024, the company had borrowings of $975.0 million under its Credit Facility, with an average daily utilization of $1,050.3 million for the year[292]. - The maximum leverage ratio permitted under the revised Credit Agreement is 5.15 to 1.00, with a gradual tightening expected through 2026[292]. - The company entered into a Ninth Amendment to the Credit Agreement, allowing a maximum leverage ratio of up to 5.15 to 1.00 and reducing total lenders' commitment from $1.3 billion to $1.2 billion[310]. Operational Risks and Challenges - The company faces inflationary pressures that have increased labor costs and other operational necessities, impacting profitability[124]. - The company’s contracts often do not allow for fee escalations that match rising operational costs, which could adversely affect financial performance[130]. - The company faces significant operational risks due to geographic concentration in locations outside the United States, particularly in the Philippines, India, Mexico, Bulgaria, and South Africa[171]. - The company is subject to financial and operating restrictions in its credit agreement, which may limit its ability to engage in mergers or pay dividends[120]. - The company may face costly litigation and reputational damage due to wage and hour class action lawsuits, particularly in California[160]. - The company’s operations are subject to various risks, including political and economic instability, which could adversely affect service delivery and financial results[172]. Technology and Cybersecurity - The company has made significant investments to enhance its information technology environment following past cybersecurity incidents[144]. - Significant investments in cybersecurity are ongoing, with no expected decrease in spending to mitigate potential threats to information systems[319]. - Cybersecurity incidents in 2021 did not materially impact results, but future incidents could have significant effects on operations and financial results[144]. - The company is increasingly incorporating AI technologies into its business, which presents risks and unintended consequences that could materially impact its results of operations[149]. - The company’s reliance on third parties for data, software, and cloud services increases vulnerability to service disruptions and cybersecurity risks[151]. Regulatory Environment - The company’s financial results may be affected by changes in laws and regulations, particularly those related to data privacy and protection, which have seen significant increases in enforcement activity[156]. - The evolving regulatory environment surrounding AI technologies may increase costs and liabilities for the company[161]. - The company’s ability to maintain necessary licenses for regulated services is critical, as failure to comply with regulations could lead to significant business losses[165]. Strategic Initiatives - The company has instituted cost reduction measures in 2024 to align overhead costs with changing revenue and profitability metrics[122]. - The company derived approximately 34% of its revenue from operations outside the United States in 2024[166]. - The company received a non-binding proposal from its founder and CEO to take the company private, which is currently under evaluation by a Special Committee[173]. - The company's stock price has experienced significant volatility due to uncertainties surrounding the potential Take Private Transaction, impacting its ability to retain key personnel and relationships with customers[175]. - The company may consider mergers, acquisitions, and other transactions that could materially impact its financial condition and operational results[306]. - The company’s profitability is dependent on effective cost management strategies, including optimizing resource capacity and offshoring certain functions[121]. - Future contractual obligations primarily relate to debt, leases, and income taxes, with a focus on maintaining compliance with financial covenants[303]. - The company’s five largest clients accounted for 32% of annual revenue in 2024, down from 36% in 2023, indicating a slight diversification in client revenue concentration[317].