TTEC Holdings, Inc. (TTEC) Bundle
A Brief History of TTEC
Company Overview
Company Overview
TTEC Holdings, Inc., established in 1982, is a leading global provider of customer experience (CX) solutions. As of September 30, 2024, TTEC operates through two main segments: TTEC Digital and TTEC Engage.
Financial Performance
For the nine months ended September 30, 2024, TTEC reported total revenues of $1.64 billion, a decrease from $1.84 billion in the same period of 2023. This represents a 11% decline year-over-year.
The TTEC Digital segment generated revenues of $344.1 million in 2024, down from $367.8 million in 2023, reflecting a 6.4% decrease. The TTEC Engage segment saw revenues of $1.30 billion, a drop of 11.8% from $1.47 billion.
| Segment | 2024 Revenue | 2023 Revenue | % Change |
|---|---|---|---|
| TTEC Digital | $344.1 million | $367.8 million | -6.4% |
| TTEC Engage | $1.30 billion | $1.47 billion | -11.8% |
| Total | $1.64 billion | $1.84 billion | -11% |
Operating Income and Expenses
Operating income for the nine months ended September 30, 2024, was reported at $(188.8) million, compared to $101.1 million in the prior year. The significant decline is attributed to a goodwill impairment charge of $241.5 million and ongoing restructuring charges.
The operating margin for TTEC Digital was 4.9% in 2024, down from 5.4% in 2023. In contrast, TTEC Engage experienced an operating margin of (15.9)%, a stark decrease from 5.5% in the previous year.
| Metric | 2024 | 2023 |
|---|---|---|
| Operating Income | $(188.8) million | $101.1 million |
| Operating Margin (Digital) | 4.9% | 5.4% |
| Operating Margin (Engage) | (15.9)% | 5.5% |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, TTEC reported cash flows from operating activities of $(57.7) million, a substantial decrease from $113.2 million in 2023. Capital expenditures for the same period totaled $36.5 million, down from $54.7 million in the previous year.
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Cash Flows from Operating Activities | $(57.7) million | $113.2 million |
| Capital Expenditures | $36.5 million | $54.7 million |
Debt and Liquidity
As of September 30, 2024, TTEC had outstanding borrowings of $1.025 billion under its credit facility, with a remaining borrowing capacity of approximately $140 million. The average interest rate on these borrowings was approximately 7.8%.
| Debt Metric | Amount |
|---|---|
| Outstanding Borrowings | $1.025 billion |
| Remaining Borrowing Capacity | $140 million |
| Average Interest Rate | 7.8% |
Market Trends and Future Outlook
TTEC continues to adapt to a challenging macroeconomic environment, focusing on expanding its digital customer experience offerings and enhancing operational efficiencies. As of 2024, the company serves approximately 750 clients globally, including many Fortune 1000 companies.
A Who Owns TTEC Holdings, Inc. (TTEC)
Major Shareholders
As of 2024, TTEC Holdings, Inc. has a diverse ownership structure. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| Kenneth D. Tuchman (Chairman & CEO) | ~35% (indirect ownership through Avion and Airmax) |
| Institutional Investors | ~45% |
| Retail Investors | ~20% |
Institutional Ownership
Institutional investors hold a significant portion of TTEC's shares. Notable institutional shareholders include:
- Vanguard Group
- BlackRock Inc.
- Dimensional Fund Advisors
Stock Performance and Market Capitalization
As of September 30, 2024, TTEC Holdings, Inc. reported the following financial metrics:
| Financial Metric | Value |
|---|---|
| Market Capitalization | $1.07 billion |
| Stock Price (as of September 30, 2024) | $22.45 |
| 52-Week High | $34.85 |
| 52-Week Low | $20.10 |
Insider Transactions
Recent insider transactions indicate ongoing confidence from management. Notable transactions include:
- Kenneth D. Tuchman purchased 50,000 shares at $23.00 on August 15, 2024.
- Michelle Swanback sold 10,000 shares at $24.00 on September 1, 2024.
Client Concentration
During the nine months ended September 30, 2024, TTEC had a significant reliance on a few key clients:
| Client | Percentage of Revenue |
|---|---|
| Major Automotive Client | 11.1% |
| Top 5 Clients (Aggregate) | 31.5% |
Financial Overview
For the nine months ended September 30, 2024, TTEC reported the following financial results:
| Financial Metric | Value |
|---|---|
| Total Revenue | $1.64 billion |
| Net Income (Loss) | $(322.97 million) |
| Operating Income (Loss) | $(188.81 million) |
Debt Obligations
TTEC's debt profile as of September 30, 2024, includes:
| Debt Type | Amount |
|---|---|
| Credit Facility Borrowings | $1.025 billion |
| Interest Expense (2024) | $63.2 million |
Conclusion on Ownership Structure
TTEC Holdings, Inc. presents a complex ownership structure characterized by significant institutional holdings, insider ownership, and a concentrated client base that impacts financial performance. The company continues to navigate a challenging market environment while maintaining a robust operational framework.
TTEC Holdings, Inc. (TTEC) Mission Statement
Overview of Mission Statement
TTEC Holdings, Inc. is dedicated to delivering exceptional customer experiences by integrating technology and human expertise. The company emphasizes innovation in customer engagement strategies and aims to lead in the customer experience (CX) industry.
Financial Performance
As of the third quarter of 2024, TTEC reported a total revenue of $529.4 million, which reflects a decrease of $73.5 million or 12.2% compared to the same period in 2023. The revenue breakdown indicates that $115.7 million (22%) was generated from the TTEC Digital segment, while $413.8 million (78%) came from TTEC Engage.
| Financial Metrics | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Total Revenue | $529.4 million | $602.9 million | -$73.5 million | -12.2% |
| TTEC Digital Revenue | $115.7 million | $133.3 million | -$17.6 million | -13.2% |
| TTEC Engage Revenue | $413.8 million | $469.7 million | -$55.9 million | -11.9% |
Operating Income
The operating income for the third quarter of 2024 was $12.9 million, a decrease of $12.5 million or 49.2% from $25.4 million in Q3 2023. This decline was influenced by lower revenue and increased operational costs.
Client Engagement and Market Position
TTEC serves approximately 750 clients globally, including many Fortune 1000 companies and government agencies. The company operates in various sectors such as healthcare, automotive, and financial services, showcasing its ability to adapt and innovate in diverse market conditions.
Employee and Operational Capacity
The company employs around 51,600 customer care associates and professionals across 22 countries. TTEC maintains a global delivery capability with 23,400 workstations, representing 78% of its operational capacity.
Recent Developments
TTEC's Board of Directors is currently evaluating a proposal from its founder, Kenneth Tuchman, to take the company private at a purchase price of $6.85 per share. This proposal is contingent upon financing and board approval.
Geographic Revenue Distribution
| Region | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| United States / Canada | $357.7 million | $415.5 million |
| Philippines / Asia Pacific / India | $96.3 million | $117.2 million |
| Europe / Middle East / Africa | $47.1 million | $37.1 million |
| Latin America | $28.4 million | $33.2 million |
Conclusion
TTEC continues to invest in innovation and technology to enhance its service offerings and maintain a competitive edge in the customer experience market. The company is focused on expanding its client base and improving operational efficiencies.
How TTEC Holdings, Inc. (TTEC) Works
Business Segments
TTEC operates through two primary business segments:
- TTEC Digital: Focused on customer experience technology, providing services related to Contact Center as a Service (CCaaS), Customer Relationship Management (CRM), and Artificial Intelligence (AI) solutions.
- TTEC Engage: Offers customer experience operational services, including customer care, tech support, and back-office solutions tailored for large enterprise clients.
Financial Performance
The financial performance of TTEC for the three and nine months ended September 30, 2024, is summarized in the following table:
| Period | Revenue (in thousands) | Operating Income (in thousands) | Operating Margin (%) |
|---|---|---|---|
| Q3 2024 | $529,427 | $12,889 | 2.4% |
| Q3 2023 | $602,956 | $25,388 | 4.2% |
| 9M 2024 | $1,640,150 | ($188,813) | N/A |
| 9M 2023 | $1,836,636 | $101,097 | 5.5% |
Revenue Breakdown by Segment
The following table details the revenue and operating income by segment for the nine months ended September 30, 2024:
| Segment | Revenue (in thousands) | Operating Income (in thousands) | Operating Margin (%) |
|---|---|---|---|
| TTEC Digital | $344,068 | $16,771 | 4.9% |
| TTEC Engage | $1,296,082 | ($205,584) | (15.9)% |
Geographic Revenue Distribution
The geographic distribution of revenue for the three months ended September 30, 2024, is as follows:
| Region | Revenue (in thousands) |
|---|---|
| United States / Canada | $357,650 |
| Philippines / Asia Pacific / India | $96,273 |
| Europe / Middle East / Africa | $47,118 |
| Latin America | $28,386 |
| Total | $529,427 |
Operating Expenses
For the three months ended September 30, 2024, TTEC's operating expenses were as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Cost of Services | $415,226 |
| Selling, General and Administrative | $71,580 |
| Depreciation and Amortization | $24,042 |
| Restructuring Charges, Net | $1,002 |
| Impairment Losses | $4,688 |
| Total Operating Expenses | $516,538 |
Liquidity and Capital Resources
As of September 30, 2024, TTEC had total assets of $1,826,290, which was a decrease from $2,185,598 as of December 31, 2023. The company had borrowings of $1,025.0 million under its Credit Facility, with remaining borrowing capacity of approximately $140 million.
Recent Developments
In 2024, TTEC's Board established a special committee to evaluate a proposal from its founder to take the company private at $6.85 per share. The proposal is contingent on financing and approval from the special committee and shareholders.
How TTEC Holdings, Inc. (TTEC) Makes Money
Overview of Business Segments
TTEC operates through two primary segments: TTEC Digital and TTEC Engage. Each segment has distinct revenue streams and operational focuses.
TTEC Digital
TTEC Digital is a significant player in customer experience (CX) technology, focusing on the integration of Contact Center as a Service (CCaaS), Customer Relationship Management (CRM), and AI analytics. The segment generates revenue from:
- Recurring Revenue: This is primarily from ongoing contracts related to cloud services and managed services.
- Professional Services: Revenue from consulting and implementation services for CX technologies.
For the nine months ended September 30, 2024, TTEC Digital reported:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Revenue | $344,068,000 | $367,764,000 | (6.4)% |
| Operating Income | $16,771,000 | $19,864,000 | (15.6)% |
| Operating Margin | 4.9% | 5.4% | (0.5) pp |
TTEC Engage
TTEC Engage provides digitally-enabled CX operational and managed services. The revenue sources include:
- Customer Support Services: Comprehensive customer support for various industries.
- Tech Support and Back-office Services: Tailored support to meet specific client needs.
- Growth Services: Services aimed at customer acquisition and retention.
For the nine months ended September 30, 2024, TTEC Engage reported:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Revenue | $1,296,082,000 | $1,468,872,000 | (11.8)% |
| Operating Income (Loss) | ($205,584,000) | $81,233,000 | (353.1)% |
| Operating Margin | (15.9)% | 5.5% | (21.4) pp |
Geographic Revenue Breakdown
Revenue is also segmented by geographic location, indicating TTEC's global reach. For the three months ended September 30, 2024, revenue by region was as follows:
| Region | Revenue (2024) | Revenue (2023) |
|---|---|---|
| United States / Canada | $357,650,000 | $415,463,000 |
| Philippines / Asia Pacific / India | $96,273,000 | $117,204,000 |
| Europe / Middle East / Africa | $47,118,000 | $37,095,000 |
| Latin America | $28,386,000 | $33,194,000 |
| Total | $529,427,000 | $602,956,000 |
Impact of Economic Conditions
The decline in revenue for TTEC Engage was attributed to a significant client exiting a large line of business and reduced demand due to a challenging macroeconomic environment. TTEC's response includes:
- Investment in Talent: Increased hiring and training to support diverse offerings.
- Innovation in Services: Continued investment in technology-enabled services to adapt to market changes.
Financial Performance and Challenges
Overall, TTEC experienced a decline in revenue and operating income across both segments in 2024 compared to 2023. Key financial metrics for the nine months ended September 30, 2024 include:
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $1,640,150,000 | $1,836,636,000 |
| Net Income (Loss) | ($315,236,000) | $26,470,000 |
| Interest Expense | $63,186,000 | $56,709,000 |
Conclusion of Financial Insights
TTEC's financial challenges in 2024 stem from reduced revenue across its segments, particularly in TTEC Engage, which has faced significant operational losses. The company continues to adapt by investing in talent and technology to enhance its service offerings.
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Resources:
- TTEC Holdings, Inc. (TTEC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TTEC Holdings, Inc. (TTEC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TTEC Holdings, Inc. (TTEC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.