TTEC Announces First Quarter 2025 Financial Results

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." 

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.