TTEC Announces First Quarter 2025 Financial Results
TTEC
Published on 05/08/2025 at 16:06
First Quarter 2025Revenue was $534.2 Million, down 7.4 PercentNet 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
Income from Operations
Adjusted EBITDA
Earnings Per Share
CASH FLOW AND BALANCE SHEET
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
TTEC Engage – Technology-enabled customer care, acquisition, and fraud mitigation services
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 2025Guidance
Full Year 2025Mid-Point
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 2025Guidance
Full Year 2025Mid-Point
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 2025Guidance
Full Year 2025Mid-Point
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.
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 other, and tax effects of items separately disclosed above
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
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SOURCE TTEC Holdings, Inc.