TTEC (US:TTEC)2019-03-07 18:20Financial Data and Key Metrics Changes - In 2018, TTEC achieved new business signings of $600 million, a 36% increase from the previous year [6] - The company reported revenue of $1.51 billion for the full year 2018, a 2.2% increase year-over-year [52] - Operating income for 2018 was $92.1 million, representing 6.1% of revenue, down from 6.8% in the prior year [52] - In Q4 2018, revenue was $419.1 million, down 1.8% year-over-year, but adjusted revenue increased 3.8% excluding disaster relief services from the previous year [36][39] Business Line Data and Key Metrics Changes - Customer Management Services (CMS) revenue decreased 8.7% in Q4 2018, while Customer Technology Services (CTS) revenue increased by 52.8% [50][48] - Customer Growth Services (CGS) revenue increased by 22% in Q4 2018 [49] - Operating income margins improved in CTS (up 121.6% to 18.9%) and CGS (up 102% to 11.4%), while CMS margins declined [50][49] Market Data and Key Metrics Changes - The addressable market for TTEC is now over $400 billion annually, providing significant growth opportunities [16] - The company experienced strong demand in various sectors, including healthcare (up 61%), government (up 35%), financial services (up 41%), and travel (up 53%) [81] Company Strategy and Development Direction - TTEC is focused on expanding its digital transformation offerings and enhancing customer experience through innovation [8][12] - The company aims to improve profit margins in its CMS segment and expand market share in Europe and disruptive hyper-growth categories [23] - TTEC plans to leverage its reputation as a customer experience innovator to sustain growth beyond 2019 [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant organic growth in 2019, with an estimated growth rate between 7.5% and 8.6% [26] - The company anticipates that the strong bookings in 2018 will drive profitable growth in 2019 [22] - Management highlighted the importance of digital transformation and the growing demand for personalized customer experiences [63] Other Important Information - TTEC's cash flow from operations improved significantly, increasing from negative $36.5 million to $2.2 million in Q4 2018 [43] - The company declared a semiannual dividend of $0.30 per share, representing an 11% increase over the prior year [45] Q&A Session Summary Question: Can you provide insights on the margin dynamics within the mix of bookings and the opportunity size with hyper-growth disruptors? - Management noted that the bookings reflect a growing part of the business, with many clients being major players in the on-demand marketplace [70] Question: What areas of growth are being seen in CMS, and how does the onshore versus offshore mix look? - Management indicated strong demand across various sectors, with a notable increase in offshore and nearshore demand due to labor shortages and cost increases in North America [80] Question: Can you discuss the average deal size and how it has changed? - The average deal size increased significantly, with CMS up 81%, CTS up 67%, and CSS up 43% [95] Question: How is the revenue mix changing across different channels? - Management observed a significant uptick in digital business, with digital channels now comprising 40% to 60% of interactions for clients targeting millennials [101]