TTEC Earnings Prediction
The chart below shows how TTEC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TTEC sees a +9.72% change in stock price 10 days leading up to the earnings, and a -15.31% change 10 days following the report. On the earnings day itself, the stock moves by +0.05%. This data can give you a slight idea of what to expect for the next quarter's release.
TTEC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
529.43M
-12.19%
-0.87%
Gross Margin
17.03%
5.12%
-0.18%
Operating Margin
3.51%
-31.45%
7.67%
Net Margin
-3.58%
-1293.33%
-93.56%
EPS
-0.44
-1366.67%
-93.02%
No Data Available
TTEC Earnings Analysis
TTEC Holdings, Inc. Common Stock Corporation (TTEC.O) Earnings Conference Call
Positive
Strong Revenue Performance: 1. Revenue Growth: TTEC reported third quarter revenue of $529 million, with a strong performance in recurring managed services, which increased by 12.9% year-over-year.
Adjusted EBITDA Increase: 2. Adjusted EBITDA Improvement: The company achieved a non-GAAP adjusted EBITDA of $50 million, reflecting a sequential increase from $46 million in the prior quarter, demonstrating improved profitability.
Client Acquisition Progress: 3. Client Acquisition Success: TTEC is on track to secure a dozen new meaningful client relationships by year-end, indicating strong demand across various industries including financial services, healthcare, and retail.
Offshore Workforce Growth: 4. Offshore Expansion: The headcount in new offshore geographies scaled by 43% from the second to third quarter, with over 60% of the annual contract value from new client wins expected to be delivered offshore.
Cash Flow Improvement Prospects: 5. Positive Cash Flow Outlook: TTEC anticipates a decline in net debt and leverage in the fourth quarter and into next year, supported by positive cash flow from operations and prudent capital allocation strategies.
Negative
Revenue Decline Analysis: 1. Declining Revenue: TTEC reported a revenue of $529 million for Q3 2024, a decrease of 12.2% compared to the prior year period.
Decline in Adjusted EBITDA: 2. Decreased Adjusted EBITDA: The non-GAAP adjusted EBITDA fell to $50 million, down from $64 million in the prior year, representing a decline in margin from 10.6% to 9.5%.
Earnings Per Share Decline: 3. Lower Earnings Per Share: EPS dropped to $0.11 in Q3 2024, significantly down from $0.48 in the same quarter last year.
Revenue Retention Decline: 4. Revenue Retention Rate Decline: The last 12-month revenue retention rate for the Engage segment decreased to 85%, down from 96% in the prior year, primarily due to revenue loss from a large client.
Declining Free Cash Flow: 5. Negative Free Cash Flow: TTEC experienced a negative free cash flow of $100 million in Q3 2024, worsening from a negative $53 million in the prior year, largely due to the discontinuation of an accounts receivable factoring facility.
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TTEC Earning Call Sentiment
TTEC Holdings, Inc. (TTEC) Q3 2024 Earnings Call Transcript
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TTEC.O
1.1%Positive
The earnings call reveals multiple negative factors: a decline in revenue retention rate, negative free cash flow, increased debt, and suspended dividends. The Q&A session showed management's optimism in digital business acceleration and cost-saving initiatives, but the lack of clarity on debt reduction and a high tax rate remain concerns. The combination of declining financial metrics, profitability pressures, and shareholder return cuts likely leads to a negative stock price movement over the next two weeks.
