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TTEC (TTEC) - 2021 Q3 - Earnings Call Transcript
TTEC TTEC (US:TTEC)2021-11-10 17:56

Financial Data and Key Metrics Changes - Revenue increased by 15% year-over-year to $566 million, with bookings for the quarter at $171 million, including 19 new clients [4][27] - Adjusted EBITDA rose by 2% to $78.7 million, representing 13.9% of revenue compared to 15.7% in the prior year [28] - Non-GAAP operating income decreased by 5.9% to $59.4 million, or 10.5% of revenue, compared to 12.8% in the prior year [29][30] - Non-GAAP EPS was $1.01, relatively unchanged from the prior year, exceeding guidance [29] Business Line Data and Key Metrics Changes - Digital segment revenue increased by 62.1% to $124.1 million, with recurring revenue from subscription-based CX cloud and managed services growing by 18.6% [30] - Engage segment revenue was $442.6 million, a 6.3% increase year-over-year, with organic growth highlighting significant contributions from healthcare, travel, auto, and technology verticals [32] - The recurring revenue bookings increased by 250 basis points to 57.6% of total bookings in the quarter [24] Market Data and Key Metrics Changes - The client base is diversified across verticals and geographies, with accelerated demand in the digital hyper-growth segment, serving 100 clients with an annualized revenue run rate of $400 million [5][11] - The Engage segment's revenue retention rate improved to 118.9%, indicating strong client loyalty and growth [32] Company Strategy and Development Direction - The company aims to grow its digital business to $1 billion, focusing on strategic leadership, expanding product portfolios, and strengthening relationships with CX technology partners [11][20] - The strategy includes increasing market share through differentiated CX offerings, building new channel partnerships, and executing strategic acquisitions [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's fundamental strength, citing a strong bookings growth and expanding revenue backlog [23] - The company anticipates full-year revenue of $2.255 billion, a 15.7% increase over the prior year, and expects continued growth in 2022 [38][39] Other Important Information - A cyber incident in September 2021 had a temporary impact, with an estimated revenue loss of approximately $15.2 million, but operations were restored quickly [16][26] - The company announced leadership changes, with Regina Paolillo becoming Global COO and Dustin Semach as CFO, aimed at enhancing strategic focus [19][21] Q&A Session Summary Question: Impact of Cyber Incident on Top Clients - The cyber incident impacted a small group of clients, with most effects related to caution rather than system failures. Clients appreciated the rapid response [42][44] Question: Drivers of Recent Pipeline and Activity - The competitive landscape has shifted, with companies recognizing the importance of customer experience, leading to increased business for the company [48][50] Question: Revenue Retention and Growth Drivers - Revenue retention is driven by base retention and increased bookings from existing clients, with a focus on digital transformation [55][56] Question: Acquisition Strategy - The company is actively seeking strategic acquisitions to enhance its digital business and expand its Engage geography, while ensuring fair pricing [57][58] Question: Hyper Growth Clients and Digital Engagement - Hyper growth clients represent about 15% to 17% of revenue, with smaller initial bookings that can grow rapidly as they scale [61][64]