Company marks one year of operation at its Mumbai Customer Experience Center and Digital Innovation Studio in Hyderabad DENVER and MUMBAI, India, Nov. 13, 2024 /PRNewswire/ -- TTEC Holdings, Inc. (NASDAQ: TTEC), a leading global CX (customer experience) technology and services innovator for AI-enhanced CX with solutions from TTEC Engage and TTEC Digital, is marking a significant year of growth in India with the one-year anniversaries of two key facilities: its Mumbai Customer Experience Center and Hyderabad ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $529 million, a decrease of 12.2% YoY and relatively unchanged sequentially [38] - Non-GAAP adjusted EBITDA was $50 million, or 9.5% of revenue, down from $64 million (10.6% of revenue) YoY but up from $46 million (8.7% of revenue) in the prior quarter [38] - EPS was $0.11, compared to $0.48 in the prior year and $0.14 in the prior quarter [39] - Free cash flow was negative $100 million, primarily due to the discontinuation of the accounts receivable factoring facility, which impacted cash flow by $82 million for the quarter [52] Business Line Performance TTEC Digital - Revenue was $116 million, down 13.2% YoY, primarily due to a large one-time on-premise product sale in the prior year [42] - Recurring managed services revenue increased 12.9% YoY and 4.2% sequentially, representing 65% of total Digital revenue [44] - Professional services revenue declined 6.4% YoY and 5.1% sequentially due to delayed client decision-making on larger deals [45] - Operating income was $14 million, or 12.5% of revenue, compared to $19 million (14.5% of revenue) in the prior year [46] TTEC Engage - Revenue was $414 million, down 11.9% YoY but relatively unchanged sequentially [48] - Operating income was $20 million, or 4.8% of revenue, up 35% sequentially with a 130 basis point improvement in profitability [48] - Last 12-month revenue retention rate was 85%, down from 96% YoY, primarily due to declines in financial services and healthcare volumes [51] Market and Geographic Performance - Offshore headcount in new geographies scaled 43% from Q2 to Q3 2024 [18] - Over 60% of the annual contract value from new client wins in Q3 will be delivered offshore [19] - Clients are increasingly leveraging offshore resources, particularly in Latin America and Africa, for cost savings and operational efficiency [85] Strategic Direction and Industry Competition - The company is focused on four priorities: winning new clients, diversifying its portfolio of AI-enabled CX solutions, improving operational agility, and strengthening financial performance [9] - Clients are prioritizing cost savings and delaying new program investments, but the company expects demand to normalize over the next six months [10][11] - AI-enabled solutions are a key focus, with 45% of the top 100 clients deploying well-defined AI projects, yielding positive results [30] Management Commentary on Operating Environment and Future Outlook - The macroeconomic environment, including election uncertainties and Fed monetary policies, has created headwinds, leading to delayed client decision-making [10] - The company expects revenue and profitability to be at the lower end of the full-year 2024 guidance range, with Digital revenue forecasted at $483 million and Engage revenue at $1.752 billion [60][61] - Management remains confident in the long-term demand for CX technology and services, with a focus on returning to organic growth and increased profitability [63] Other Important Information - The company suspended its semiannual dividend to prioritize debt reduction, with a net debt-to-EBITDA ratio of 4.49x as of Q3 2024 [58] - Capital expenditures were $9 million, or 1.7% of revenue, down from $22 million (3.6% of revenue) in the prior year, reflecting reduced investment in geographic expansion [53] Q&A Session Summary Question: Confidence in Q4 Digital Business Acceleration - Management is confident in closing deals delayed from Q3, with a strong pipeline and backlog supporting growth in Q4 and beyond [65][66] - The company expects a positive trajectory in 2025 as clients shift focus from cost savings to launching larger projects [69][70] Question: Healthcare Payer Client Trends - Healthcare payer clients continue to face cost pressures, leading to reduced seasonal volumes and increased interest in offshore resources and technology solutions [72][73] Question: Cost-Saving Initiatives - The company expects $10 million in savings in 2024 and $30 million annualized savings in 2025 from cost optimization initiatives [74] Question: Offshore Investment and Demand Dynamics - Offshore investments are meeting client demand, with no significant changes in the cadence of scaling smaller offshore deals [82][84] - Existing onshore clients are exploring offshore options, but offshore work is currently complementary to onshore operations [88][89] Question: Debt Reduction Plans - The company is focused on debt reduction through improved profitability, free cash flow, and asset sales, with a commitment to reducing leverage ratios [90]

TTEC Holdings (TTEC) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -21.43%. A quarter ago, it was expected that this customer engagement management company would post earnings of $0.29 per share when it actually produced earnings of $0.14, delivering a surprise of -51.72%.Over the l ...

Exhibit 99.1 PRESS RELEASE TTEC Announces Third Quarter 2024 Financial Results Third Quarter 2024 Revenue was $529.4 Million, down 12.2 Percent Operating Income of $12.9 Million or 2.4 Percent of Revenue (Operating Income of $34.1 Million or 6.4 Percent of Revenue Non-GAAP) Net Loss of $19.0 Million or negative 3.6 Percent of Revenue (Net Income of $5.4 Million or 1.0 Percent of Revenue Non-GAAP) Adjusted EBITDA was $50.3 Million or 9.5 Percent of Revenue Fully Diluted Net Loss Per Share of $0.40 (Net Incom ...

Third Quarter 2024Revenue was $529.4 Million, down 12.2 PercentOperating Income of $12.9 Million or 2.4 Percent of Revenue(Operating Income of $34.1 Million or 6.4 Percent of Revenue Non-GAAP)Net Loss of $19.0 Million or negative 3.6 Percent of Revenue(Net Income of $5.4 Million or 1.0 Percent of Revenue Non-GAAP)Adjusted EBITDA was $50.3 Million or 9.5 Percent of RevenueFully Diluted Net Loss Per Share of $0.40 (Net Income Per Share of $0.11 Non-GAAP)DENVER, Nov. 6, 2024 /PRNewswire/ -- TTEC Holdings, Inc. ...

DENVER, Oct. 16, 2024 /PRNewswire/ -- TTEC Holdings, Inc. (NASDAQ:TTEC), a leading global CX (customer experience) technology and services innovator for AI-enabled CX solutions, announced today that TTEC will release its earnings results after market close on Wednesday, November 6, 2024, when a press release will be issued. The Company will host a live webcast and conference call at 8:30 a.m. ET on Thursday, November 7, 2024. You are invited to join a live webcast of the conference call by visiting the "Inv ...

Microsoft recognizes TTEC Digital for outstanding sales achievement and innovation for ninth consecutive year DENVER, Oct. 2, 2024 /PRNewswire/ --TTEC Holdings Inc. (NASDAQ:TTEC), a leading global CX (customer experience) technology and services innovator for AI-enabled CX with solutions from TTEC Engage and TTEC Digital, today announced that TTEC Digital has achieved the 2024/2025 Microsoft Business Applications Inner Circle Award. Membership is based on sales achievements that rank TTEC Digital in the top ...

DENVER, Sept. 30, 2024 /PRNewswire/ -- TTEC Holdings, Inc. (NASDAQ:TTEC) ("TTEC" or the "Company"), a leading global CX (customer experience) technology and services innovator for AI-enabled CX solutions, announced that its Board of Directors has received an unsolicited, preliminary, non-binding proposal letter, dated September 27, 2024, from TTEC founder, Chairman and Chief Executive Officer Kenneth Tuchman, to take the Company private at a proposed purchase price of $6.85 per share to the Company's other ...

DENVER, Sept. 5, 2024 /PRNewswire/ -- TTEC Holdings, Inc. (NASDAQ: TTEC), a leading global CX (customer experience) technology and services innovator for AI-enhanced CX with solutions from TTEC Engage and TTEC Digital, has been recognized with numerous global workplace culture awards, proving that happy employees are the secret behind delivering exceptional customer experiences. These recognitions span multiple countries and highlight TTEC's success in creating a workplace that prioritizes diversity, employ ...

Financial Performance - In Q2 2024, TTEC reported revenue of $534.1 million, a decrease of $66.3 million or 11% compared to Q2 2023, with TTEC Digital contributing $116.4 million (22%) and TTEC Engage $417.7 million (78%) to total revenue [87]. - TTEC Digital's revenue decreased by $1.2 million (1.0%) year-over-year, while TTEC Engage's revenue fell by $65.1 million (13.5%) due to client exits and lower demand [91][92]. - Operating income for TTEC Digital decreased by 16% to $6.0 million, resulting in an operating margin of 5.2%, down from 6.1% in the prior year [91]. - TTEC Engage experienced an operating loss of $230.4 million, a decline of 1,054.4%, with an operating margin of (55.2)%, compared to 5.0% in the previous year [92]. - For the first half of 2024, TTEC Digital revenue was $228.4 million, down 2.6% from $234.5 million in the same period of 2023, while operating income increased to $9.3 million [98]. - TTEC Engage's revenue for the first half of 2024 was $882.3 million, a decrease of 11.7% from $999.2 million in the prior year, with an operating loss of $211.0 million [99]. Tax and Interest - The effective tax rate for Q2 2024 was (22.3)%, significantly lower than 61.9% in Q2 2023, influenced by income distribution and impairment charges [96]. - The effective tax rate for the six months ended June 30, 2024, was (23.5)%, significantly lower than 36.2% in 2023, influenced by income distribution and tax holidays in international jurisdictions [102]. - Interest income decreased to $1.4 million for the six months ended June 30, 2024, down from $2.3 million in the same period in 2023, while interest expense increased to $41.5 million from $36.4 million due to higher interest rates [100]. Cash Flow and Capital Expenditures - Operating cash flows were positive at $33.6 million for the six months ended June 30, 2024, a decrease from $144.9 million in the same period in 2023, primarily due to a $48.4 million drop in net cash income [106]. - Cash and cash equivalents totaled $79.8 million as of June 30, 2024, down from $172.7 million at the end of 2023, attributed to changes in cash repatriation policies [104]. - Free cash flow decreased to $6.0 million for the six months ended June 30, 2024, compared to $112.0 million in the same period in 2023, reflecting lower net cash from operations [109]. - Net cash flows used in financing activities were $75.7 million for the six months ended June 30, 2024, down from $115.0 million in 2023, mainly due to a $20.0 million net change in the line of credit [108]. - Total capital expenditures in 2024 are expected to be between 2.5% and 2.7% of revenue, with 60% allocated for business growth and 40% for maintenance of existing assets [113]. Client Concentration and Relationships - Client concentration remains significant, with the five largest clients accounting for 31.7% of revenue in Q2 2024, down from 36.3% in Q2 2023 [114]. - The five largest clients accounted for 31.7% of consolidated revenue for the three months ended June 30, 2024, down from 36.3% in the same period of 2023 [114]. - For the six months ended June 30, 2024, the five largest clients represented 33.8% of consolidated revenue, compared to 35.4% in 2023 [114]. - Long-term relationships with top five clients range from 7 to 24 years, with multiple contract renewals completed [114]. - Contracts with the five largest clients expire between 2025 and 2027, but many have multiple contracts with different expiration dates [114]. - The risk of client concentration is mitigated by long-term contracts, although some contracts can be terminated for convenience [114]. - Historical contract renewals with largest clients have been successful, but future renewals are not guaranteed [114]. Strategic Plans - TTEC plans to continue investing in innovation and service offerings to enhance competitive positioning and expand its global client base [87]. - The company aims to selectively retain and grow capacity while expanding into new offshore markets, managing foreign currency risks through a multi-currency hedging program [87]. - The company expects capital requirements over the next 12 months to depend on investment levels in infrastructure for maintaining or upgrading existing assets [113]. - The company may need to raise additional capital through debt or equity financing due to potential acquisitions or joint ventures [113]. - The anticipated capital expenditures in 2024 are driven by site expansions, new builds in emerging geographies, and technological enhancements [113].