Loading...
01/10 16:56
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights several negative factors: a significant revenue decline, EPS drop, and negative cash flow. The dividend suspension and lack of share repurchase program further dampen investor sentiment. Although there are positive notes on AI integration and offshore growth, the overall guidance is weak, with declining revenue retention and public sector impacts. The Q&A reveals management's lack of clarity on AI impacts and 2025 investments, contributing to uncertainty. These factors collectively suggest a negative stock price movement in the short term.
Revenue $2.21 billion, a decrease of 10.4% year-over-year from $2.46 billion due to two client business decisions unrelated to performance and a muted open enrollment healthcare season.
Adjusted EBITDA $202 million or 9.2% of revenue, down from $272 million or 11% year-over-year, reflecting lower revenue and profitability.
Operating Income $136 million or 6.2% of revenue, down from $200 million or 8.1% year-over-year, primarily due to decreased revenue.
EPS $0.71, down from $2.18 year-over-year, attributed to lower operating income and revenue.
Fourth Quarter Revenue $567 million, a decrease of 9.4% year-over-year, but an increase of 7.2% sequentially.
Fourth Quarter Adjusted EBITDA $51 million or 9% of revenue, down from $58 million or 9.2% year-over-year.
Fourth Quarter Operating Income $35 million or 6.2% of revenue, down from $42 million or 6.5% year-over-year.
Fourth Quarter EPS $0.19, down from $0.37 year-over-year.
Cash Flow from Operations Negative $59 million, compared to positive $145 million in the prior year, impacted by the discontinuation of the accounts receivable factoring facility.
Free Cash Flow Negative $104 million, compared to positive $77 million in the prior year, affected by lower profitability and the factoring facility.
Capital Expenditures $45 million or 2% of revenue, down from $68 million or 2.8% in the prior year.
Normalized Tax Rate 40.9%, up from 22.7% in the prior year, primarily due to the impact of the U.S. valuation allowance.
AI Capabilities: Advanced AI adoption internally and with clients, infusing AI capabilities into new sales opportunities.
CX Technology Solutions: Collaborative product development with CX technology partners to enhance service offerings.
Voice Translation Applications: Implementation of proprietary voice translation applications to improve customer interactions.
New Client Acquisition: Fifteen new enterprise clients acquired in 2024, with significant potential for future expansion.
Geographic Expansion: Broadened geographic delivery footprint, with increased offshore delivery.
Digital Transformation: Closed fifty-five new clients in TTEC Digital, expanding total addressable market.
Operational Efficiencies: Implemented AI-enabled solutions to enhance associate lifecycle management and customer journey.
Cost Optimization Initiatives: Focus on aligning corporate costs to revenue and improving operational agility.
Diversification Strategy: Continued focus on diversifying client base and solutions to mitigate revenue decline.
Profit Optimization Efforts: Actions taken to improve profitability and operational efficiency in 2025.
Revenue Impact from Client Decisions: Top-line revenue is impacted by two client business decisions unrelated to TTEC's performance, although relationships with these clients remain strong.
Healthcare Enrollment Season: The company's revenue was affected by a muted open enrollment healthcare season, which is a seasonal challenge.
Client Engagement Rationalization: TTEC is focusing on rationalizing client engagements that do not meet their target financial profile, which may impact revenue.
Foreign Exchange Impact: Foreign exchange had a negative impact on revenue, amounting to $3 million, although it positively impacted operating income by $7 million.
Cash Flow Challenges: Cash flow from operations was negative $59 million, primarily due to the discontinuation of the accounts receivable factoring facility, impacting cash flow by approximately $100 million.
Revenue Retention Rate Decline: The last twelve-month revenue retention rate for the Engage segment declined to 82%, down from 95% in the prior year.
Public Sector Client Impact: A decline in revenue of approximately 10% is expected due to the impact of a public sector client and a financial services client discontinuing certain lines of business.
Economic Factors: The company anticipates foreign exchange translation headwinds, which may further pressure the top line.
Diversification Strategy: TTEC is advancing its diversification strategy with a broadened geographic delivery footprint and client portfolio.
Digital CX Value Proposition: The company is expanding its digital CX value proposition with differentiated technology-enabled solutions.
Growth and Margin Goals: TTEC aims to achieve and exceed its historical growth and run rate margins in the near term.
AI Adoption: The company is advancing AI adoption internally and with clients, infusing AI capabilities into new sales opportunities.
Client Acquisition: TTEC has successfully won new clients across various industries, including financial services, healthcare, retail, travel, and streaming services.
Management Team Strengthening: The management team has been strengthened with strategic hires to capitalize on market opportunities.
Profit Optimization Efforts: TTEC is focusing on profit optimization efforts, including geographic expansion and cost optimization initiatives.
2025 Revenue Guidance: For 2025, TTEC expects GAAP revenue of $2.04 billion, a decrease of 7.6% from the prior year.
2025 Adjusted EBITDA Guidance: Adjusted EBITDA is projected to be $225 million, an increase of 11.2% over the prior year.
2025 Non-GAAP Operating Income Guidance: Non-GAAP operating income is expected to be $164 million, a 20% increase over the prior year.
2025 Non-GAAP EPS Guidance: Non-GAAP earnings per share is projected to be $1.08, an increase of 52.5% over the prior year.
Capital Expenditures Guidance: Capital expenditures are expected to be between 2.2% and 2.4% of revenue, with approximately 51% growth-oriented.
Effective Tax Rate Guidance: The effective tax rate is expected to be between 38% and 42%.
Share Repurchase Program: TTEC Holdings, Inc. did not mention any share repurchase program during the call.
The earnings call reveals mixed signals: a decline in Engage segment revenue and digital recurring revenue, but an increase in Digital segment revenue and improved free cash flow. AI investments and healthcare sector growth are positive, but vague management responses and non-recurring revenue raise concerns. Given the unchanged profitability outlook and strategic focus on AI and healthcare, the stock's reaction is likely neutral.
The earnings call reveals strong financial performance with increased EBITDA and free cash flow, despite slight revenue declines in segments, which were expected. The Q&A indicates confidence in future opportunities, especially with AI and offshore growth. However, cautious client spending and management's vague responses on certain risks temper enthusiasm. Overall, the positive financial results, optimistic guidance, and strategic focus on AI and offshore expansion suggest a positive stock price reaction.
The earnings call reflects challenges such as declining revenue, increased debt, and competitive pressures. Despite some positive metrics like improved EBITDA and free cash flow, the cautious outlook for the second half and lack of share repurchase plans weigh negatively. The Q&A reveals client hesitance and smaller deal sizes, further impacting sentiment. The 7.6% revenue decline for 2025 and increased tax rate also contribute to a negative outlook, expecting a stock price drop between -2% to -8%.
The earnings call highlights several negative factors: a significant revenue decline, EPS drop, and negative cash flow. The dividend suspension and lack of share repurchase program further dampen investor sentiment. Although there are positive notes on AI integration and offshore growth, the overall guidance is weak, with declining revenue retention and public sector impacts. The Q&A reveals management's lack of clarity on AI impacts and 2025 investments, contributing to uncertainty. These factors collectively suggest a negative stock price movement in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
