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]

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]