First Quarter 2025
Revenue was $534.2 Million, down 7.4 Percent
Net Income was $3.2 Million or 0.6 Percent of Revenue
($13.6 Million or 2.6 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $56.4 Million or 10.6 Percent of Revenue
Reiterates Outlook for Full Year 2025
AUSTIN, Texas, May 8, 2025 /PRNewswire/ -- TTEC Holdings, Inc. (NASDAQ:TTEC), a leading global CX (customer experience) technology and services innovator for AI-enabled CX with solutions from TTEC Engage and TTEC Digital, announced today financial results for the first quarter ended March 31, 2025.
"2025 is off to a good start with our financial performance exceeding plan. In the first quarter, we signed several new enterprise clients, grew the share of wallet with our embedded base, broadened our market reach with more complex digitally enabled solutions, built valuable partnerships with new CX technology partners, improved operational performance, and fortified the leadership team," commented Ken Tuchman, chairman and chief executive officer of TTEC.
"While we are pleased with our first quarter results, many of our clients are adopting a cautious approach in the current economic environment. Due to the recent uncertainty in trade policy, it is challenging for any business operating on a global scale to accurately predict the future. As a result, we are staying close to our clients and remaining agile as we look forward to policy stabilization," Tuchman continued.
FIRST QUARTER 2025 FINANCIAL HIGHLIGHTS
Revenue
- First quarter 2025 GAAP revenue was $534.2 million, a 7.4 percent decrease compared to $576.6 million in the prior year.
- Foreign exchange had a $6.0 million negative impact on revenue in the first quarter of 2025.
Income from Operations
- First quarter 2025 GAAP income from operations was $24.2 million, or 4.5 percent of revenue, compared to $22.7 million, or 3.9 percent of revenue in the prior year.
- Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $41.5 million, or 7.8 percent of revenue, compared to $37.9 million, or 6.6 percent of revenue in the prior year.
- Foreign exchange had a $4.2 million positive impact on Non-GAAP income from operations in the first quarter of 2025.
Adjusted EBITDA
- First quarter 2025 Non-GAAP Adjusted EBITDA was $56.4 million, or 10.6 percent of revenue, compared to $54.9 million, or 9.5 percent of revenue in the prior year.
Earnings Per Share
- First quarter 2025 GAAP fully diluted earnings per share was $0.07 compared to $0.01 in the prior year.
- Non-GAAP fully diluted earnings per share was $0.28 compared to $0.27 in the prior year.
CASH FLOW AND BALANCE SHEET
- Cash flow from operations in the first quarter of 2025 was a positive $21.6 million compared to a negative $15.6 million for the first quarter of 2024.
- Free cash flow in the first quarter of 2025 was a positive $16.2 million compared to a negative $29.1 million for the first quarter of 2024.
- Capital expenditures in the first quarter of 2025 were $5.4 million compared to $13.5 million for the first quarter of 2024.
- As of March 31, 2025, TTEC had cash and cash equivalents of $85.1 million and debt of $966.6 million, resulting in a net debt position of $881.4 million. This compares to a net debt position of $865.3 million for the same period 2024.
- As of March 31, 2025, TTEC's remaining borrowing capacity under its revolving credit facility was approximately $230 million compared to $95 million for the same period 2024.
SEGMENT REPORTING & COMMENTARY
TTEC reports financial results for TTEC Digital and TTEC Engage business segments. Financial highlights for the two business segments are provided below.
TTEC Digital – Design, build and operate tech-enabled, insight-driven CX solutions
- First quarter 2025 GAAP revenue for TTEC Digital was $108.0 million, a decrease of 3.6 percent compared to $112.0 million for the year ago period.
- Income from operations was $5.9 million or 5.4 percent of revenue compared to $3.3 million or 2.9 percent of revenue in the prior year.
- Non-GAAP income from operations was $12.1 million, or 11.2 percent of revenue compared to operating income of $9.3 million or 8.3 percent of revenue in the prior year.
TTEC Engage – Technology-enabled customer care, acquisition, and fraud mitigation services
- First quarter 2025 GAAP revenue for TTEC Engage was $426.2 million, an 8.3 percent decrease from $464.6 million for the year ago period.
- Income from operations was $18.3 million or 4.3 percent of revenue compared to $19.4 million, or 4.2 percent of revenue in the prior year.
- Non-GAAP income from operations was $29.4 million, or 6.9 percent of revenue, compared to operating income of $28.7 million, or 6.2 percent of revenue in the prior year.
- Foreign exchange had a $5.5 million negative impact on revenue and a $4.2 million positive impact on income from operations.
BUSINESS OUTLOOK
"We exceeded our plan in the first quarter with both segments delivering strong results. In TTEC Digital, our client centric go-to-market approach, AI-enabled solutions and analytics, and multi-platform capabilities are resonating in the market. In TTEC Engage, we continue to focus on our top priorities, improving operational agility, providing digitally enabled solutions and optimizing our cost structure to further drive momentum," commented Kenny Wagers, chief financial officer of TTEC.
Wagers continued, "We are pleased with our first quarter results and are re-iterating our full-year outlook. It is difficult to predict how the economic uncertainties will impact our existing clients and potential new clients, however, both our TTEC Digital and TTEC Engage segments are well positioned to navigate the current environment."
TTEC Full Year 2025 Outlook | |||
Full Year 2025 | Full Year 2025 | ||
Revenue | $2,014M — $2,064M | $2,039M | |
Non-GAAP adjusted EBITDA | $215M — $235M | $225M | |
Non-GAAP adjusted EBITDA margins | 10.7% — 11.4% | 11.0 % | |
Non-GAAP operating income | $154M — $174M | $164M | |
Non-GAAP operating income margins | 7.6% — 8.4% | 8.0 % | |
Interest expense, net | ($75M) — ($79M) | ($77M) | |
Non-GAAP adjusted tax rate | 38% — 42% | 40 % | |
Diluted share count | 48.2M — 48.6M | 48.4M | |
Non-GAAP earnings per a share | $0.95 — $1.20 | $1.08 | |
Engage Full Year 2025 Outlook | |||
Full Year 2025 | Full Year 2025 | ||
Revenue | $1,556M — $1,586M | $1,571M | |
Non-GAAP adjusted EBITDA | $151M — $163M | $157M | |
Non-GAAP adjusted EBITDA margins | 9.7% — 10.3% | 10.0 % | |
Non-GAAP operating income | $101M — $113M | $107M | |
Non-GAAP operating income margins | 6.5% — 7.1% | 6.8 % | |
Digital Full Year 2025 Outlook | |||
Full Year 2025 | Full Year 2025 | ||
Revenue | $458M — $478M | $468M | |
Non-GAAP adjusted EBITDA | $64M — $72M | $68M | |
Non-GAAP adjusted EBITDA margins | 13.9% — 15.0% | 14.5 % | |
Non-GAAP operating income | $53M — $61M | $57M | |
Non-GAAP operating income margins | 11.5% — 12.7% | 12.1 % |
The company has not quantitatively reconciled its guidance for Non-GAAP operating income, Non-GAAP operating income margins, Non-GAAP adjusted EBITDA, Non-GAAP adjusted EBITDA margins, Non-GAAP adjusted tax rate, or Non-GAAP earnings per share to their respective most comparable GAAP measures because certain of the reconciling items that impact these metrics, including restructuring and impairment charges, equity-based compensation expense, changes in acquisition contingent consideration, depreciation and amortization expense, and provision for income taxes are dependent on the timing of future events outside of the Company's control or cannot be reliably predicted. Accordingly, the Company is unable to provide reconciliations to GAAP operating income, operating income margins, EBITDA margins, and diluted earnings per share without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the Company's 2025 financial results as reported under GAAP.
NON-GAAP FINANCIAL MEASURES
This press release contains a discussion of certain Non-GAAP financial measures that the company includes to allow investors and analysts to measure, analyze and compare its financial condition and results of operations in a meaningful and consistent manner. A reconciliation of these Non-GAAP financial measures can be found in the tables accompanying this press release.
- GAAP metrics are presented in accordance with Generally Accepted Accounting Principles.
- Non-GAAP - As reflected in the attached reconciliation table, the definition of Non-GAAP may exclude from operating income, EBITDA, net income and earnings per share restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, among other items.
EARNINGS WEBCAST/CONFERENCE CALL
TTEC will host a live webcast and conference call at 8:30 a.m. ET on Friday, May 9, 2025. You are invited to join a live webcast of the conference call by visiting the "Investors Relations" section of the TTEC website at www.ttec.com. If you are unable to participate during the live webcast, a replay will be available on the TTEC website.
ABOUT TTEC
TTEC (pronounced T-TEC) Holdings, Inc. (NASDAQ:TTEC) is a leading global CX (customer experience) technology and services innovator for AI-enabled digital CX solutions. Serving iconic and disruptive brands, TTEC's outcome-based solutions span the entire enterprise, touch every virtual interaction channel, and improve each step of the customer journey. Leveraging next-gen digital technology, the Company's TTEC Digital business designs, builds, and operates omnichannel contact center technology, CRM, AI and analytics solutions. The company's TTEC Engage business delivers AI-enabled customer engagement, customer acquisition and growth, tech support, back office, and fraud prevention services. Founded in 1982, the company's singular obsession with CX excellence has earned it leading client, customer, and employee satisfaction scores across the globe. The company's employees operate on six continents and bring technology and humanity together to deliver happy customers and differentiated business results. To learn more visit us at https://www.ttec.com.
FORWARD-LOOKING STATEMENTS
This Earnings Press Release and related oral statements contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to our operations, expected financial position, results of operation, effective tax rate, cash flow, leverage, liquidity, business strategy, profit improvement actions, competitive position, demand for our services in international operations, acquisition opportunities and impact of acquisitions, capital allocation and dividends, growth opportunities, spending, capital expenditures and investments, competition and market forecasts, industry trends, our human capital resources, and other business, operational and financial matters that are based on our current expectations, assumptions, and projections with respect to the future, and are not a guarantee of performance.
In this Release when we use words such as "may," "believe," "plan," "will," "anticipate," "estimate," "expect," "intend," "project," "would," "could," "target," or similar expressions, or when we discuss our strategy, plans, goals, initiatives, or objectives, we are making forward-looking statements. Unless otherwise indicated or except where the context otherwise requires, the terms "TTEC," "the Company," "we," "us" and "our" and other similar terms in this report refer to TTEC Holdings, Inc. and its subsidiaries. We caution you not to rely unduly on any forward-looking statements. Actual results may differ materially from those expressed in the forward-looking statements, and you should review and consider carefully the risks, uncertainties, and other factors that affect our business and may cause such differences as outlined in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequent filings with the U.S. Securities and Exchange Commission (the "SEC") which are available on TTEC's website www.ttec.com, and on the SEC's public website at www.sec.gov.
Our forward-looking statements speak only as of the date that this release is issued. We undertake no obligation to update them, except as may be required by applicable law. Although we believe that our forward-looking statements are reasonable, they depend on many factors outside of our control and we can provide no assurance that they will prove to be correct.
TTEC HOLDINGS, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
(In thousands, except per share data) | ||||||
(unaudited) | ||||||
Three months ended | ||||||
March 31, | ||||||
2025 | 2024 | |||||
Revenue | $ 534,228 | $ 576,638 | ||||
Operating Expenses: | ||||||
Cost of services | 414,547 | 453,818 | ||||
Selling, general and administrative | 70,037 | 74,575 | ||||
Depreciation and amortization | 22,698 | 25,145 | ||||
Restructuring charges, net | 1,996 | 249 | ||||
Impairment losses | 761 | 140 | ||||
Total operating expenses | 510,039 | 553,927 | ||||
Income From Operations | 24,189 | 22,711 | ||||
Other income (expense), net | (11,628) | (19,882) | ||||
Income Before Income Taxes | 12,561 | 2,829 | ||||
Provision for income taxes | (9,315) | (2,329) | ||||
Net Income | 3,246 | 500 | ||||
Net (loss) / income attributable to noncontrolling interest | (1,862) | (2,805) | ||||
Net Income / (Loss) Attributable to TTEC Stockholders | $ 1,384 | $ (2,305) | ||||
Net Income Per Share | ||||||
Basic | $ 0.07 | $ 0.01 | ||||
Diluted | $ 0.07 | $ 0.01 | ||||
Net Income / (Loss) Per Share Attributable to TTEC Stockholders | ||||||
Basic | $ 0.03 | $ (0.05) | ||||
Diluted | $ 0.03 | $ (0.05) | ||||
Income From Operations Margin | 4.5 % | 3.9 % | ||||
Net Income Margin | 0.6 % | 0.1 % | ||||
Net Income / (Loss) Attributable to TTEC Stockholders Margin | 0.3 % | (0.4) % | ||||
Effective Tax Rate | 74.2 % | 82.3 % | ||||
Weighted Average Shares Outstanding | ||||||
Basic | 47,771 | 47,432 | ||||
Diluted | 48,225 | 47,587 | ||||
TTEC HOLDINGS, INC. AND SUBSIDIARIES | |||||
SEGMENT INFORMATION | |||||
(In thousands) | |||||
(unaudited) | |||||
Three months ended | |||||
March 31, | |||||
2025 | 2024 | ||||
Revenue: | |||||
TTEC Digital | $ 108,040 | $ 112,031 | |||
TTEC Engage | 426,188 | 464,607 | |||
Total | $ 534,228 | $ 576,638 | |||
Income From Operations: | |||||
TTEC Digital | $ 5,864 | $ 3,288 | |||
TTEC Engage | 18,325 | 19,423 | |||
Total | $ 24,189 | $ 22,711 | |||
TTEC HOLDINGS, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(In thousands) | ||||
(unaudited) | ||||
March 31, | December 31, | |||
2025 | 2024 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 85,135 | $ 84,991 | ||
Accounts receivable, net | 440,190 | 452,573 | ||
Prepaids and other current assets | 109,611 | 92,947 | ||
Income and other tax receivables | 20,301 | 21,785 | ||
Total current assets | 655,237 | 652,296 | ||
Property and equipment, net | 123,274 | 132,051 | ||
Operating lease assets | 84,944 | 91,263 | ||
Goodwill | 571,919 | 571,197 | ||
Other intangibles assets, net | 157,098 | 164,808 | ||
Income and other tax receivables, long-term | 24,279 | 31,781 | ||
Other assets | 109,485 | 109,984 | ||
Total assets | $ 1,726,236 | $ 1,753,380 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $ 77,406 | $ 84,180 | ||
Accrued employee compensation and benefits | 116,779 | 137,636 | ||
Deferred revenue | 70,675 | 64,752 | ||
Current operating lease liabilities | 32,116 | 33,358 | ||
Other current liabilities | 37,327 | 34,010 | ||
Total current liabilities | 334,303 | 353,936 | ||
Long-term liabilities: | ||||
Line of credit | 964,000 | 975,000 | ||
Non-current operating lease liabilities | 65,236 | 71,008 | ||
Other long-term liabilities | 81,191 | 85,317 | ||
Total long-term liabilities | 1,110,427 | 1,131,325 | ||
Equity: | ||||
Common stock | 478 | 477 | ||
Additional paid in capital | 423,368 | 420,181 | ||
Treasury stock | (584,900) | (584,900) | ||
Accumulated other comprehensive income (loss) | (122,973) | (132,121) | ||
Retained earnings | 548,001 | 546,617 | ||
Noncontrolling interest | 17,532 | 17,865 | ||
Total equity | 281,506 | 268,119 | ||
Total liabilities and equity | $ 1,726,236 | $ 1,753,380 | ||
TTEC HOLDINGS, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(In thousands) | ||||
(unaudited) | ||||
Three Months Ended | Three Months Ended | |||
March 31, | March 31, | |||
2025 | 2024 | |||
Cash flows from operating activities: | ||||
Net income | $ 3,246 | $ 500 | ||
Adjustment to reconcile net income to net cash provided by operating activities : | ||||
Depreciation and amortization | 22,698 | 25,145 | ||
Amortization of contract acquisition costs | 494 | 283 | ||
Amortization of debt issuance costs | 510 | 643 | ||
Imputed interest expense and fair value adjustments to contingent consideration | - | (1,240) | ||
Provision for credit losses | 251 | (31) | ||
Loss on disposal of assets | 316 | 510 | ||
Impairment losses | 761 | 140 | ||
Deferred income taxes | 1,913 | (12,628) | ||
Excess tax benefit from equity-based awards | 236 | 292 | ||
Equity-based compensation expense | 3,250 | 5,812 | ||
Loss / (gain) on foreign currency derivatives | (68) | 77 | ||
Changes in assets and liabilities, net of acquisitions: | ||||
Accounts receivable | 14,189 | (11,301) | ||
Prepaids and other assets | (1,720) | 3,094 | ||
Accounts payable and accrued expenses | (14,204) | (25,845) | ||
Deferred revenue and other liabilities | (10,280) | (1,080) | ||
Net cash provided by operating activities | 21,592 | (15,629) | ||
Cash flows from investing activities: | ||||
Proceeds from sale of property, plant and equipment | 127 | 25 | ||
Purchases of property, plant and equipment | (5,406) | (13,473) | ||
Net cash used in investing activities | (5,279) | (13,448) | ||
Cash flows from financing activities: | ||||
Net proceeds / (borrowings) from line of credit | (11,000) | (42,000) | ||
Payments on other debt | (462) | (741) | ||
Payments to noncontrolling interest | (2,211) | (2,520) | ||
Tax payments related to the issuance of restricted stock units | (62) | (127) | ||
Payments of debt issuance costs | (1,100) | |||
Net cash provided by financing activities | (13,735) | (46,488) | ||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (2,434) | 1,847 | ||
Increase / (decrease) in cash, cash equivalents and restricted cash | 144 | (73,718) | ||
Cash, cash equivalents and restricted cash, beginning of period | 84,991 | 173,905 | ||
Cash, cash equivalents and restricted cash, end of period | $ 85,135 | $ 100,187 | ||
TTEC HOLDINGS, INC. AND SUBSIDIARIES | |||||||
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION | |||||||
(In thousands, except per share data) | |||||||
(unaudited) | |||||||
Three months ended | |||||||
March 31, | |||||||
2025 | 2024 | ||||||
Revenue | $ 534,228 | $ 576,638 | |||||
Reconciliation of Non-GAAP Income from Operations and EBITDA: | |||||||
Income from Operations | $ 24,189 | $ 22,711 | |||||
Restructuring charges, net | 1,996 | 249 | |||||
Impairment losses | 761 | 140 | |||||
Property costs not related to operations | (46) | 1,033 | |||||
Mexico VAT consulting fees | 408 | - | |||||
Liability related to notifications triggered by labor scheme | - | (475) | |||||
Expenses related to non-binding offer | 3,189 | - | |||||
Equity-based compensation expenses | 3,250 | 5,812 | |||||
Amortization of purchased intangibles | 7,750 | 8,445 | |||||
Non-GAAP Income from Operations | $ 41,497 | $ 37,915 | |||||
Non-GAAP Income from Operations Margin | 7.8 % | 6.6 % | |||||
Depreciation and amortization | 14,948 | 16,069 | |||||
Changes in acquisition contingent consideration | - | (1,240) | |||||
Gain on property sale | (450) | - | |||||
Mexico VAT Recovery | (3,906) | 770 | |||||
Foreign exchange loss / (gain), net | 750 | 1,192 | |||||
Other Income (expense), net | 3,589 | 206 | |||||
Adjusted EBITDA | $ 56,428 | $ 54,912 | |||||
Adjusted EBITDA Margin | 10.6 % | 9.5 % | |||||
Reconciliation of Non-GAAP EPS: | |||||||
Net Income | $ 3,246 | $ 500 | |||||
Add: Asset impairment and restructuring charges | 2,757 | 389 | |||||
Add: Equity-based compensation expenses | 3,250 | 5,812 | |||||
Add: Amortization of purchased intangibles | 7,750 | 8,445 | |||||
Add: Property costs not related to operations | (46) | 1,033 | |||||
Add: Liability related to notifications triggered by labor scheme | - | (475) | |||||
Add: Foreign VAT (inclusive of interest) | (7,823) | 770 | |||||
Add: Changes in acquisition contingent consideration | - | (1,240) | |||||
Add: Fees related to non-binding offer | 3,189 | - | |||||
Add: Gain on property sale | (450) | - | |||||
Add: Foreign exchange loss / (gain), net | 750 | 1,192 | |||||
Less: Changes in valuation allowance, return to provision adjustments and | 1,002 | (3,806) | |||||
Non-GAAP Net Income | $ 13,625 | $ 12,620 | |||||
Diluted shares outstanding | 48,225 | 47,587 | |||||
Non-GAAP EPS | $0.28 | $0.27 | |||||
Reconciliation of Free Cash Flow: | |||||||
Cash Flow From Operating Activities: | |||||||
Net income | $ 3,246 | $ 500 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 22,698 | 25,145 | |||||
Other | (4,352) | (41,274) | |||||
Net cash provided by operating activities | 21,592 | (15,629) | |||||
Less - Total Cash Capital Expenditures | 5,406 | 13,473 | |||||
Free Cash Flow | $ 16,186 | $ (29,102) | |||||
Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment : | |||||||
TTEC Engage | TTEC Digital | ||||||
Q1 25 | Q1 24 | Q1 25 | Q1 24 | ||||
Income from Operations | $ 18,325 | $ 19,422 | $ 5,864 | $ 3,289 | |||
Restructuring charges, net | 1,292 | 653 | 703 | (404) | |||
Impairment losses | 720 | 140 | 42 | - | |||
Property costs not related to operations | (46) | 1,033 | - | - | |||
Mexico VAT Consulting Fees | 408 | (475) | - | - | |||
Expenses related to non-binding offer | 2,633 | - | 556 | - | |||
Equity-based compensation expenses | 2,023 | 3,783 | 1,227 | 2,029 | |||
Amortization of purchased intangibles | 4,067 | 4,107 | 3,683 | 4,338 | |||
Non-GAAP Income from Operations | $ 29,422 | $ 28,663 | $ 12,075 | $ 9,252 | |||
Depreciation and amortization | 12,139 | 13,357 | 2,809 | 2,712 | |||
Gain on Property Sale | (450) | (1,240) | - | - | |||
Mexico VAT Recovery | (3,906) | - | - | - | |||
Foreign VAT receivable writeoff | - | 770 | - | - | |||
Foreign exchange loss / (gain), net | 751 | 1,378 | (1) | (187) | |||
Other Income (expense), net | 3,587 | 44 | 2 | 163 | |||
Adjusted EBITDA | $ 41,543 | $ 42,972 | $ 14,885 | $ 11,940 | |||
Corporate Comms | Investor Relations |
Meredith Matthews | Robert Belknapp |
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SOURCE TTEC Holdings, Inc.