TTEC (US:TTEC)2024-03-01 21:30Revenue 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]