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].

Second Quarter 2024 Revenue was $534.1 Million, down 11.0 Percent Operating Loss of $224.4 Million or negative 42.0 Percent of Revenue, due to $233.5 Million Non-cash Goodwill Impairments and Related Tax Adjustments (Operating Income of $29.5 Million or 5.5 Percent of Revenue Non-GAAP) Net Loss of $296.8 Million or negative 55.6 Percent of Revenue (Net Income of $6.6 Million or 1.2 Percent of Revenue Non-GAAP) Adjusted EBITDA was $46.2 Million or 8.7 Percent of Revenue Fully Diluted Net Loss Per Share of $6 ...

Company recognized for blending human empathy with AI innovation in CX DENVER, Aug. 1, 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 named to CRM Magazine's prestigious Top 100 list. The company's inclusion in this elite roster highlights its dedication to enhancing customer interactions through a unique blend of human empathy and AI-powered inn ...

DENVER, July 22, 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 Thursday, August 8, 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 Friday, August 9, 2024. You are invited to join a live webcast of the conference call by visiting the "Investors ...

The results underscore TTEC's exceptional delivery of trust and safety solutions DENVER, June 6, 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 proud to announce its recognition as both a Major Contender and a Star Performer in Everest Group's Trust and Safety Services PEAK Matrix® Assessment 2024. This prestigious acknowledgment underscores TTEC's ded ...

Financial Data and Key Metrics Changes - The company's revenue for Q1 2024 was $577 million, a decrease of 8.9% compared to $633 million in the prior year [101] - Adjusted EBITDA was $55 million, representing 9.5% of revenue, down from $83 million or 13.1% in the previous year [101] - Operating income decreased to $38 million or 6.6% of revenue from $61 million or 9.6% [101] - The net debt-to-EBITDA ratio was reported at 3.6, compliant with credit facility requirements [7] Business Line Data and Key Metrics Changes - The digital segment's revenue was $112 million, a decrease of 4.2% year-over-year, while managed services grew approximately 5% [5] - The Engage segment's revenue decreased by 10% to $465 million compared to the prior year [18] - The Engage backlog for the next 12 months is $1.76 billion, representing 96.5% of the 2024 revenue guidance midpoint, compared to 97% in the prior year [6] Market Data and Key Metrics Changes - The demand environment remains fluid, with client conservatism impacting budgeting and volume awards [8] - The company is experiencing variability and downward pressure in the telco vertical [2] - The digital segment's backlog increased to $399 million, or 80% of the 2024 revenue guidance midpoint, up from 75% in the prior year [18] Company Strategy and Development Direction - The company is focused on integrating technology and AI into operations to improve productivity and customer satisfaction [48] - New work types such as content moderation and data annotation are seen as growth opportunities [46] - The company aims to return to sustainable long-term organic growth and improve cash flow and balance sheet strength [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the attractiveness of the CX market and the company's differentiated technology capabilities [105] - The company anticipates a strong healthcare season in the latter half of the year, supporting its reiterated guidance [81] - Management believes that the industry is misunderstood and that new opportunities are emerging despite challenges [108] Other Important Information - Capital expenditures for Q1 2024 were $13 million, or 2.3% of revenue, compared to $14 million or 2.2% in the prior year [19] - The normalized tax rate increased to 32.7% from 26% in the prior year, primarily due to lower pre-tax income [19] Q&A Session Summary Question: How does the company view guidance amidst market conditions? - Management believes that Wall Street tends to overreact and maintains confidence in their guidance despite market challenges [108] Question: What is the status of anticipated headwinds? - Headwinds are as expected, with some clients beginning to change their cautious outlook for the better [80] Question: Is there a shift in onshore versus offshore demand? - The company reports strong demand for offshore capabilities, particularly in new geographies like South Africa, without cannibalizing onshore work [115][39]

Exhibit 99.1 TTEC Announces First Quarter 2024 Financial Results First Quarter 2024 Revenue was $576.6 Million, down 8.9 Percent Operating Income was $22.7 Million or 3.9 Percent of Revenue ($37.9 Million or 6.6 Percent of Revenue Non-GAAP) Net Income was $0.5 Million or 0.1 Percent of Revenue ($12.6 Million or 2.2 Percent of Revenue Non-GAAP) Adjusted EBITDA was $54.9 Million or 9.5 Percent of Revenue Fully Diluted EPS was $0.01 ($0.27 Non-GAAP) Reiterates Outlook for Full Year 2024 DENVER, May 8, 2024 – T ...

Revenue Performance - TTEC's revenue for Q1 2024 was $576.6 million, a decrease of $56.7 million, or 8.9%, compared to Q1 2023, with TTEC Digital contributing $112.0 million (19.0%) and TTEC Engage contributing $464.6 million (81.0%) [151] - TTEC Digital segment revenue decreased by $4.9 million, or 4.2%, while TTEC Engage segment revenue decreased by $51.8 million, or 10.0% [156] - The five largest clients accounted for 35.7% of consolidated revenue in Q1 2024, compared to 34.6% in Q1 2023 [190] Operating Income and Margins - Operating income for Q1 2024 was $22.7 million, a decrease of $21.7 million, or 48.9%, with an operating margin of 3.9% compared to 7.0% in Q1 2023 [157] - TTEC Engage's operating income decreased by $24.2 million, or 55.5%, with an operating margin of 4.2% in Q1 2024, down from 8.4% in the prior year [168] Cash Flow and Liquidity - TTEC generated negative operating cash flows of $15.6 million in Q1 2024, a decrease from positive cash flows of $49.1 million in Q1 2023 [181] - Free cash flow decreased to ($29.1) million for the three months ended March 31, 2024, compared to $35.4 million for the same period in 2023 [184] - Net cash used in operating activities was ($15.6) million for the three months ended March 31, 2024, a decrease of $64.7 million from $49.1 million in 2023 [181] - Cash and cash equivalents totaled $91.5 million as of March 31, 2024, down from $172.7 million at the end of 2023 [179] - Cash and cash equivalents decreased to $91.5 million as of March 31, 2024, down from $172.7 million as of December 31, 2023 [179] Expenses and Taxation - Interest expense increased to $21.1 million in Q1 2024 from $17.4 million in Q1 2023 due to higher average utilization of the line of credit and rising interest rates [169] - The effective tax rate for Q1 2024 was 82.3%, significantly higher than 27.5% in Q1 2023, influenced by various factors including international earnings and stock-based compensation [174] Capital Expenditures and Financing - Total capital expenditures in 2024 are expected to be between 2.7% and 2.9% of revenue, with 55% allocated for business growth and 45% for maintenance of existing assets [188] - Capital expenditures for the three months ended March 31, 2024, were $13.4 million, slightly down from $13.6 million in 2023 [182] - Net cash flows provided by financing activities increased to $46.5 million in Q1 2024 from $43.6 million in Q1 2023 [183] - The company may need to raise additional capital through debt or equity financing due to potential increases in working capital and capital expenditure requirements [189] Strategic Initiatives - TTEC plans to selectively retain and grow capacity while expanding into new offshore markets, managing foreign currency risks through a multi-currency hedging program [161] - The company continues to invest in innovation and service offerings to enhance its competitive position and broaden its product capabilities [152] - The company has long-term relationships with its top five clients, with contracts ranging from 18 to 24 years [190] - There were no material changes to the company's contractual obligations and future capital requirements since the last filing [187]

Revenue Performance - Full Year 2023 revenue was $2.463 billion, an increase of 0.8% compared to $2.444 billion in the prior year[10] - Fourth Quarter 2023 revenue decreased by 4.9% to $626.2 million from $658.3 million in the prior year[10] - Total revenue for the year 2023 was $2.46 billion, slightly up from $2.44 billion in 2022, representing a growth of 0.6%[29] - Q4 2023 revenue was $626.2 million, a decrease of 4.9% from $658.3 million in Q4 2022[29] Income and Profitability - Full Year 2023 GAAP net income was $18.3 million, or 0.7% of revenue, compared to $103.2 million, or 4.2% of revenue Non-GAAP[2] - Fourth Quarter 2023 GAAP net income was ($8.2) million, or (1.3)% of revenue, compared to $17.5 million, or 2.8% of revenue Non-GAAP[2] - Net loss attributable to TTEC stockholders for Q4 2023 was $9.9 million, compared to a net income of $22.4 million in Q4 2022[29] - Net income for the twelve months ended December 31, 2023, was $18,264, a significant decrease from $117,333 in 2022[35] Adjusted EBITDA - Full Year 2023 Non-GAAP Adjusted EBITDA was $271.5 million, or 11.0% of revenue, down from $320.1 million, or 13.1% of revenue in the prior year[8] - Fourth Quarter 2023 Non-GAAP Adjusted EBITDA was $57.5 million, or 9.2% of revenue, compared to $86.5 million, or 13.1% of revenue in the prior year[12] - Adjusted EBITDA for the twelve months ended December 31, 2023, was $271,509, down from $320,062 in 2022, indicating a decline of 15.1%[37] Cash Flow and Capital Expenditures - Free cash flow for the twelve months ended December 31, 2023, was $76,926, an increase from $53,036 in 2022, representing a growth of 45.0%[38] - Cash flows from operating activities for the twelve months ended December 31, 2023, were $144,765, compared to $137,048 in 2022, showing an increase of 5.0%[35] - Total cash capital expenditures for the twelve months ended December 31, 2023, were $67,839, a decrease from $84,012 in 2022, reflecting a reduction of 19.3%[38] Balance Sheet and Equity - Cash and cash equivalents increased to $172.7 million as of December 31, 2023, compared to $153.4 million a year earlier[33] - Total assets as of December 31, 2023, were $2.19 billion, up from $2.15 billion in 2022[33] - TTEC's total equity increased to $615.5 million as of December 31, 2023, from $578.1 million in 2022[33] Future Outlook - The company anticipates challenges in 2024 due to client budget constraints and the elimination of a line of business by a long-tenured client[5] - For Full Year 2024, the company projects revenue guidance of $2.275 billion to $2.365 billion[19] Segment Performance - TTEC Digital achieved record bookings in the fourth quarter, driven by demand for cloud migrations and AI solutions[6] - TTEC Digital revenue for Q4 2023 was $119.1 million, a decrease of 2.6% from $121.7 million in Q4 2022[31] - TTEC Engage revenue for Q4 2023 was $507.1 million, down 5.5% from $536.6 million in Q4 2022[31] Other Financial Metrics - The effective tax rate for 2023 was 55.2%, compared to 18.8% in 2022[29] - The company paid dividends totaling $49,232 to shareholders during the twelve months ended December 31, 2023, compared to $48,072 in 2022[35] - The diluted shares outstanding increased slightly to 47,503 for the three months ended December 31, 2023, compared to 47,299 in the previous year[38] Restructuring and Impairment - Restructuring charges for TTEC Engage in Q4 2023 were $1,823 million, compared to $1,130 million in Q4 2022, an increase of 61.4%[40] - The company incurred impairment losses of $700 million in Q4 2023, significantly higher than $24 million in Q4 2022, marking a substantial increase[40] Foreign Exchange and Compensation - TTEC reported a foreign exchange loss of $1,271 million in Q4 2023, compared to a loss of $1,606 million in Q4 2022, indicating a decrease of 20.8%[40] - Equity-based compensation expenses for TTEC Engage increased to $3,658 million in Q4 2023 from $2,659 million in Q4 2022, an increase of 37.5%[40]

Financial Data and Key Metrics Changes - For the full year 2023, revenue was $2.46 billion, adjusted EBITDA was $272 million (11% of revenue), and adjusted EPS was $2.18 per share, reflecting a slight increase in revenue compared to $2.44 billion in 2022 [8][34] - In Q4 2023, revenue decreased to $626 million from $658 million in the prior year, a decline of 4.9%, with adjusted EBITDA at $58 million (9.2% of revenue) compared to $87 million (13.1%) in the prior year [34][35] - The full year 2023 operating income was $200 million (8.1% of revenue), down from $249 million (10.2%) in the prior year, and EPS decreased to $2.18 from $3.59 [34][38] Business Line Data and Key Metrics Changes - The Digital segment's Q4 revenue was $119 million, down 2.1% year-over-year, but excluding Cisco practice, it grew 7.1%. Full year revenue increased by 5% to $487 million [35][36] - The Engage segment's Q4 revenue decreased by 5.5% to $507 million, with operating income at $24 million (4.8% of revenue), down from $52 million (9.7%) in the prior year [37][38] - Engage's full year revenue was $1.98 billion, relatively unchanged from the prior year, with operating income at $138 million (7% of revenue), down from $184 million (9.3%) [38][39] Market Data and Key Metrics Changes - The Engage backlog for the next 12 months is $1.71 billion, representing 94% of 2024 revenue guidance, while the offshore pipeline has grown more than 35% year-over-year [39][24] - Over a third of the sales pipeline consists of deals with annual contract values over $10 million, indicating strong demand for larger contracts [24] Company Strategy and Development Direction - The company is focusing on margin optimization and diversification across clients, geographies, and solutions, with a strong emphasis on AI integration to enhance operational efficiency [12][31] - TTEC aims to leverage its partnerships with leading CX technology players to drive growth in the Digital segment, expecting double-digit growth in 2025 and beyond [15][30] - The capital deployment strategy has shifted towards prioritizing debt reduction and sustainable growth initiatives, reflecting a cautious approach in the current economic environment [17][40] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the 2024 outlook due to conservative client behavior and budget constraints, anticipating challenges in revenue and margins [19][20] - The macroeconomic environment remains fluid, with over a third of the global economy in recession, impacting client decision-making and revenue visibility [9][10] - Despite short-term challenges, management remains optimistic about long-term growth prospects, particularly in the Digital segment driven by cloud migration and AI adoption [10][28] Other Important Information - The company announced a reduction in its semi-annual dividend to $0.06 per share, reflecting a strategic shift to prioritize capital for growth and debt reduction [40] - Cash as of December 31, 2023, was $173 million, with total debt at $999 million, indicating a slight increase in net debt year-over-year [41] Q&A Session Summary Question: Can you provide insight into the macro view and its impact on guidance? - Management noted that clients are operating conservatively, leading to lower growth expectations and elongated sales cycles, but expressed hope for recovery in 2025 [49][56] Question: What is the status of AI programs and their impact? - Management highlighted 50 client programs involving AI, with significant productivity improvements noted, and emphasized the importance of agent augmentation in enhancing client relationships [58][60] Question: Are there any signs of improvement in client engagement? - Management reported strong booking momentum in the Digital segment, with over 50% of opportunities coming from existing clients, indicating potential for faster sales cycles [63][64] Question: How does AI affect the Engage business? - Management views AI as a positive opportunity, emphasizing that while some low-end transactions may be automated, the focus remains on enhancing customer relationships through quality service [71][72]