TTEC Holdings Inc (TTEC, Financial) released its 8-K filing on November 6, 2024, detailing its financial performance for the third quarter ended September 30, 2024. The company, a leader in customer engagement management tools and services, operates through TTEC Digital and TTEC Engage segments. TTEC Digital focuses on cloud-based and on-premises customer experience tools, while TTEC Engage delivers sales and marketing solutions.
Performance Overview
TTEC Holdings Inc (TTEC, Financial) reported a revenue of $529.4 million for Q3 2024, a 12.2% decline from the previous year, missing the analyst estimate of $539.11 million. The company faced a net loss of $19.0 million, translating to a negative 3.6% of revenue, or a loss of $0.40 per share, compared to the analyst estimate of -$0.16 per share. The adjusted EBITDA stood at $50.3 million, representing 9.5% of revenue.
Financial Achievements and Challenges
Despite the challenging macroeconomic environment, TTEC Holdings Inc (TTEC, Financial) achieved an operating income of $12.9 million, or 2.4% of revenue. On a non-GAAP basis, the operating income was $34.1 million, or 6.4% of revenue. The company continues to focus on diversification strategies and enhancing its AI-enabled CX solutions.
“We remain focused on executing our diversification strategies, enhancing our portfolio of AI-enabled CX solutions and our operational agility, while working to strengthen our financial performance,” commented Ken Tuchman, CEO of TTEC.
Income Statement Highlights
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $529.4 million | $603.0 million |
| Operating Income | $12.9 million | $25.4 million |
| Net Loss | $(19.0) million | $1.8 million |
| Adjusted EBITDA | $50.3 million | Not provided |
Balance Sheet and Cash Flow
As of September 30, 2024, TTEC Holdings Inc (TTEC, Financial) reported total assets of $1.83 billion, a decrease from $2.19 billion at the end of 2023. The company's cash and cash equivalents stood at $96.9 million, down from $172.7 million. The sale of a real estate asset in Englewood, Colorado, for $45.5 million is expected to reduce the outstanding balance under the revolving line of credit.
Segment Performance
The TTEC Digital segment generated $115.7 million in revenue, while TTEC Engage contributed $413.8 million. Both segments experienced a decline compared to the previous year, reflecting the broader challenges faced by the company.
Analysis and Outlook
TTEC Holdings Inc (TTEC, Financial) is navigating a transitional year with strategic priorities aimed at returning to long-term growth and profitability. The company is addressing industry headwinds and client decision-making delays, which have impacted its financial performance. The focus remains on profit optimization and expanding its geographic footprint.
“We are achieving many of the key objectives that we set forth during this transitional year,” stated Kenny Wagers, CFO of TTEC.
For the full year 2024, TTEC Holdings Inc (TTEC, Financial) has reiterated its guidance near the lower end of the previously provided range, with revenue expected between $2.21 billion and $2.26 billion.
Explore the complete 8-K earnings release (here) from TTEC Holdings Inc for further details.
