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TTEC Announces Third Quarter 2024 Financial Results

Third Quarter 2024
Revenue was $529.4 Million, down 12.2 Percent
Operating Income of $12.9 Million or 2.4 Percent of Revenue
(Operating Income of $34.1 Million or 6.4 Percent of Revenue Non-GAAP)
Net Loss of $19.0 Million or negative 3.6 Percent of Revenue
(Net Income of $5.4 Million or 1.0 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $50.3 Million or 9.5 Percent of Revenue
Fully Diluted Net Loss Per Share of $0.40 (Net Income Per Share of $0.11 Non-GAAP)

DENVER, Nov. 6, 2024 /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 third quarter ended September 30, 2024.

"We remain focused on executing our diversification strategies, enhancing our portfolio of AI-enabled CX solutions and our operational agility, while working to strengthen our financial performance," commented Ken Tuchman, chief executive officer of TTEC. "The industry dynamics and macroeconomic environment continue to create headwinds as select clients delay decision-making and/or focus on near-term cost savings."

"While taking more time than expected, we are prudently working through various challenges during this transitional year. We are executing against our top strategic priorities alongside taking the necessary profit improvement actions to strengthen our balance sheet and return the company to long-term revenue growth and increased profitability," Tuchman concluded.

THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS

  • Third quarter 2024 GAAP revenue decreased 12.2 percent to $529.4 million compared to $603.0 million in the prior year.
  • Foreign exchange had a $0.5 million negative impact on revenue in the third quarter of 2024.

Income (Loss) from Operations

  • Third quarter 2024 GAAP income from operations was $12.9 million, or 2.4 percent of revenue, compared to income from operations of $25.4 million, or 4.2 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 $34.1 million, or 6.4 percent of revenue, compared to $47.3 million, or 7.8 percent, for the prior year.
  • Foreign exchange had a $2.6 million positive impact on Non-GAAP income from operations in the third quarter of 2024.

Adjusted EBITDA

  • Third quarter 2024 Non-GAAP Adjusted EBITDA was $50.3 million, or 9.5 percent of revenue, compared to $63.9 million, or 10.6 percent of revenue, in the prior year.

Net Income (Loss)

  • Third quarter 2024 GAAP net loss was $19.0 million, or negative 3.6 percent of revenue, compared to net income of $1.8 million, or 0.3 percent of revenue, in the prior year.
  • Non-GAAP net income was $5.4 million, or 1.0 percent of revenue, compared to Non-GAAP net income of $22.9 million, or 3.8 percent of revenue, in the prior year.

Net Income (Loss) Per Share

  • Third quarter 2024 GAAP fully diluted net loss per share was $0.40 compared to net income per share of $0.04 in the prior year.
  • Non-GAAP fully diluted net income per share was $0.11 compared to Non-GAAP net income per share of $0.48 in the prior year.

CASH FLOW AND BALANCE SHEET 

  • Cash flow from operations in the third quarter of 2024 was a negative $91.4 million compared to a negative $31.7 million for the third quarter of 2023.
  • Free cash flow in the third quarter of 2024 was a negative $100.2 million compared to a negative $53.5 million in the prior year. The decline was primarily related to the impact of the accounts receivable factoring facility discontinuation in the quarter. This discontinuation negatively impacted our cash flow from operations by $81.8 million for the three months ended September 30, 2024 and $101.2 million for the nine months ended September 30, 2024. Excluding the factoring facility impact, free cash flow in the third quarter of 2024 was negative $18.4 million. The year-over-year improvement reflects improved working capital conversion and lower capital expenditures, partially offset by lower profitability.
  • Capital expenditures in the third quarter of 2024 were $8.8 million compared to $21.8 million for the third quarter of 2023.
  • As of September 30, 2024, TTEC had cash and cash equivalents of $96.9 million and debt of $1,028.4 million, resulting in a net debt position of $931.5 million. This compares to a net debt position of $815.7 million for the same period in 2023. The increase in net debt is also primarily explained by the discontinuation of the accounts receivable factoring facility.
  • As of September 30, 2024, TTEC's remaining borrowing capacity under its revolving credit facility was approximately $140 million compared to $215 million for the same period in 2023.
  • On November 4, 2024, the Board of Directors of the Company suspended the Company's semi-annual cash dividend as part of its ongoing shift to prioritize debt reduction associated with strategic acquisitions and other investments in the business. The Board expects to review the dividend suspension in the future to determine, in light of facts and circumstances at that time, whether and when to reinstate a semi-annual cash dividend.

SALE OF MATERIAL ASSET NOT USED IN OPERATIONS

On November 5, 2024, the Company closed the transaction of a real estate asset held for sale in Englewood, Colorado for $45.5 million dollars, subject to customary adjustments. Prior to the COVID pandemic, the building was used as the Company's principal place of business. The Company intends to use the proceeds from the sale to reduce its outstanding balance under the revolving line of credit.

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

  • Third quarter 2024 GAAP revenue for TTEC Digital decreased 13.2 percent to $115.7 million from $133.3 million for the year ago period. Income from operations was $7.5 million, or 6.5 percent of revenue, compared to income from operations of $11.9 million, or 8.9 percent of revenue, in the prior year. The year-over-year reduction primarily relates to a large one-time on-premise sale in the prior year period. Excluding on-premise sales, TTEC Digital's professional services and recurring revenue together increased by 5.9 percent year over year in the third quarter. 
  • Non-GAAP income from operations was $14.4 million, or 12.5 percent of revenue, compared to Non-GAAP income from operations of $19.4 million, or 14.5 percent of revenue, in the prior year.

TTEC Engage – Digitally-enabled customer care, acquisition, and fraud mitigation services

  • Third quarter 2024 GAAP revenue for TTEC Engage decreased 11.9 percent to $413.8 million from $469.7 million for the year ago period. Income from operations was $5.4 million, or 1.3 percent of revenue, compared to income from operations of $13.5 million, or 2.9 percent of revenue, in the prior year.
  • Non-GAAP income from operations was $19.7 million, or 4.8 percent of revenue, compared to Non-GAAP income from operations of $27.9 million, or 5.9 percent of revenue, in the prior year.
  • Foreign exchange had a $0.6 million negative impact on revenue and a $2.6 million positive impact on income from operations.

BUSINESS OUTLOOK

"We are achieving many of the key objectives that we set forth during this transitional year," commented Kenny Wagers, chief financial officer of TTEC. "In TTEC Digital, we are diversifying our CX technology partnerships and broadening our expertise and capabilities across Contact Center, CRM, AI and analytics solutions. In TTEC Engage, we are launching new client programs across our expanded geographic footprint, working through the previously mentioned headwinds, and executing upon our profit optimization initiatives. 

Wagers continued, "At the company level, we are re-iterating full year 2024 guidance near the lower end of the range that we provided last quarter. At the segment level, the appropriate contribution adjustments were made to reflect our third-quarter actual results and updated fourth-quarter forecasts. As we prepare to transition into 2025, we remain focused on our strategic priorities and resolute in our ability to return TTEC to long-term organic growth and increased profitability."

TTEC Full Year 2024 Outlook





Full Year 2024
Guidance


Full Year 2024
Mid-Point

Revenue

$2,210M — $2,260M


$2,235M

Non-GAAP adjusted EBITDA

$201M — $217M


$209M

Non-GAAP adjusted EBITDA margins

9.1% — 9.6%


9.3 %

Non-GAAP operating income

$134M — $150M


$142M

Non-GAAP operating income margins

6.1% — 6.6%


6.3 %

Interest expense, net

($82M) — ($84M)


($83M)

Non-GAAP adjusted tax rate

40% — 46%


43 %

Diluted share count

47.6M — 47.8M


47.7M

Non-GAAP earnings per a share

$0.64 — $0.83


$0.73









Engage Full Year 2024 Outlook





Full Year 2024
Guidance


Full Year 2024
Mid-Point

Revenue

$1,737M — $1,767M


$1,752M

Non-GAAP adjusted EBITDA

$137M — $147M


$142M

Non-GAAP adjusted EBITDA margins

7.9% — 8.3%


8.1 %

Non-GAAP operating income

$81M — $91M


$86M

Non-GAAP operating income margins

4.7% — 5.2%


4.9 %









Digital Full Year 2024 Outlook





Full Year 2024
Guidance


Full Year 2024
Mid-Point

Revenue

$473M — $493M


$483M

Non-GAAP adjusted EBITDA

$63M — $69M


$66M

Non-GAAP adjusted EBITDA margins

13.4% — 14.1%


13.8 %

Non-GAAP operating income

$52M — $58M


$55M

Non-GAAP operating income margins

11.1% — 11.8%


11.5 %

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 2024 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

The Company will host a live webcast and conference call at 8:30 a.m. ET on Thursday, November 7, 2024. 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 contain "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 operations, reiteration of the Company's full year 2024 guidance near the lower end of the ranges provided in the third quarter of 2024, effective tax rate, cash flow, leverage, liquidity, business strategy, profit improvement actions, increased profitability, competitive position, strategic priorities, organic growth, 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," "reiterate," "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 could affect our business and may cause such differences as noted above and as outlined in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent filings or furnishings 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 or the timing thereof."

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(unaudited)
























Three months ended


Nine months ended




September 30,


September 30,




2024


2023


2024


2023











Revenue


$  529,427


$  602,956


$ 1,640,150


$ 1,836,636











Operating Expenses:










Cost of services


415,226


479,699


1,286,934


1,427,063


Selling, general and administrative


71,580


66,781


219,881


216,129


Depreciation and amortization


24,042


25,595


74,258


76,368


Restructuring charges, net


1,002


1,369


6,346


4,896


Impairment losses


4,688


4,124


241,544


11,083

         Total operating expenses


516,538


577,568


1,828,963


1,735,539











(Loss) / Income From Operations


12,889


25,388


(188,813)


101,097












Other income (expense), net


(22,462)


(18,298)


(60,573)


(55,309)











(Loss) / Income Before Income Taxes


(9,573)


7,090


(249,386)


45,788












Provision for income taxes


(9,395)


(5,294)


(65,850)


(19,318)











Net (Loss) / Income


(18,968)


1,796


(315,236)


26,470












Net (loss) / income attributable to noncontrolling interest

(2,154)


(3,326)


(7,730)


(8,142)











Net (Loss) / Income Attributable to TTEC Stockholders

$  (21,122)


$    (1,530)


$  (322,966)


$      18,328





















Net (Loss) / Income Per Share




















Basic


$      (0.40)


$       0.04


$        (6.63)


$         0.56












Diluted


$      (0.40)


$       0.04


$        (6.62)


$         0.56











Net (Loss) / Income Per Share Attributable to TTEC Stockholders


















Basic


$      (0.44)


$      (0.03)


$        (6.79)


$         0.39












Diluted


$      (0.44)


$      (0.03)


$        (6.78)


$         0.39





















 (Loss) / Income From Operations Margin

2.4 %


4.2 %


(11.5) %


5.5 %

Net (Loss) /  Income Margin


(3.6) %


0.3 %


(19.2) %


1.4 %

Net (Loss) / Income Attributable to TTEC Stockholders Margin

(4.0) %


(0.3) %


(19.7) %


1.0 %

Effective Tax Rate


(98.1) %


74.7 %


(26.4) %


42.2 %





















Weighted Average Shares Outstanding








  Basic


47,723


47,415


47,573


47,305

  Diluted


47,860


47,488


47,618


47,417

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(In thousands)

(unaudited)





















Three months ended


Nine months ended



September 30,


September 30,



2024


2023


2024


2023










Revenue:









TTEC Digital


$     115,669


$      133,252


$     344,068


$    367,764

TTEC Engage


413,758


469,704


1,296,082


1,468,872

Total


$     529,427


$      602,956


$  1,640,150


$ 1,836,636










(Loss) / Income From Operations









TTEC Digital


$         7,474


$       11,925


$      16,770


$     19,864

TTEC Engage


5,415


13,463


(205,583)


81,233

Total


$       12,889


$       25,388


$   (188,813)


$    101,097

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)








September 30,


December 31,



2024


2023






ASSETS





Current assets:





   Cash and cash equivalents


$           96,929


$       172,747

   Accounts receivable, net


430,092


394,868

   Prepaids and other current assets


105,355


95,064

   Income and other tax receivables


20,690


18,524

      Total current assets


653,066


681,203






Property and equipment, net


146,358


191,003

Assets Held for Sale


29,640


-

Operating lease assets


100,263


121,574

Goodwill


575,096


808,988

Other intangibles assets, net


173,227


198,433

Income and other tax receivables, long-term


34,469


44,673

Other assets


114,171


139,724






Total assets


$      1,826,290


$     2,185,598






LIABILITIES AND EQUITY





Current liabilities:





   Accounts payable


$           82,259


$         96,577

   Accrued employee compensation and benefits


121,255


146,184

   Deferred revenue


70,834


81,171

   Current operating lease liabilities


35,217


38,271

   Other current liabilities


29,085


40,824

      Total current liabilities


338,650


403,027






Long-term liabilities:





   Line of credit


1,025,000


995,000

   Non-current operating lease liabilities


79,909


96,809

   Other long-term liabilities


87,597


75,220

      Total long-term liabilities


1,192,506


1,167,029











Equity:





   Common stock


477


474

   Additional paid-in capital


416,813


407,415

   Treasury stock


(584,904)


(589,807)

   Accumulated other comprehensive income (loss)


(99,697)


(89,876)

   Retained earnings


544,616


870,429

   Non-controlling interest


17,829


16,907

      Total equity


295,134


615,542






Total liabilities and equity


$      1,826,290


$     2,185,598

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)






 Nine Months Ended 


 Nine Months Ended 


 September 30, 


 September 30, 


2024


2023





Cash flows from operating activities:




     Net (loss) income 

$                    (315,236)


$                        26,470

     Adjustment to reconcile net (loss) income to net cash provided by operating activities :




          Depreciation and amortization

74,258


76,368

          Amortization of contract acquisition costs

1,363


1,596

          Amortization of debt issuance costs

1,578


801

          Imputed interest expense and fair value adjustments to contingent consideration

(1,496)


6,864

          Provision for credit losses

2,744


1,677

          Loss on disposal of assets

1,778


1,176

          Impairment losses

241,544


11,083

          Loss on dissolution of subsidiary

-


301

          Deferred income taxes

38,922


(12,288)

          Excess tax benefit from equity-based awards

3,921


1,807

          Equity-based compensation expense

15,249


16,410

          Loss / (gain) on foreign currency derivatives

244


552

          Changes in assets and liabilities, net of acquisitions:




                Accounts receivable 

(37,497)


34,995

                Prepaids and other assets 

(12,959)


(1,620)

                Accounts payable and accrued expenses 

(49,122)


(8,453)

                Deferred revenue and other liabilities 

(23,023)


(44,508)

                    Net cash provided by operating activities

(57,732)


113,231





Cash flows from investing activities:




     Proceeds from sale of property, plant and equipment

146


246

     Purchases of property, plant and equipment

(36,465)


(54,722)

          Net cash used in investing activities

(36,319)


(54,476)





Cash flows from financing activities:




     Net proceeds from / (repayments of) line of credit

30,000


4,000

     Payments on other debt

(1,873)


(1,929)

     Payments of contingent consideration and hold back payments to acquisitions



(37,676)

     Dividends paid to shareholders

(2,847)


(24,572)

     Payments to non-controlling interest

(6,908)


(8,407)

     Tax payments related to the issuance of restricted stock units

(945)


(2,938)

     Payments of debt issuance costs

(2,635)


-

          Net cash used in financing activities

14,792


(71,522)





Effect of exchange rate changes on cash and cash equivalents and restricted cash

2,283


3,889





(Decrease) in cash, cash equivalents and restricted cash

(76,976)


(8,878)

Cash, cash equivalents and restricted cash, beginning of period

173,905


167,064

Cash, cash equivalents and restricted cash, end of period

$                       96,929


$                      158,186

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES



RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION



(In thousands, except per share data)



(unaudited)




















Three months ended





Nine months ended






September 30,





September 30,






2024


2023





2024


2023



















Revenue


$   529,427


$  602,956





$    1,640,150


$      1,836,636



















Reconciliation of Non-GAAP Income from Operations and EBITDA:






























Net (Loss) / Income from Operations


$     12,889


$    25,388





$     (188,813)


$         101,097




Restructuring charges, net


1,002


1,369





6,346


4,896




Impairment losses


4,688


4,124





241,544


11,083




Cybersecurity incident related impact, net of insurance recovery


-


-





-


(3,210)




Grant income for pandemic relief


-


-





-


40




Property costs not related to operations


424


744





2,329


744




Change in acquisition related obligation


-


-





-


483




Liability related to notifications triggered by labor scheme   (1)


2,563


-





(187)


-




Equity-based compensation expenses


4,333


6,608





15,249


16,410




Amortization of purchased intangibles 


8,169


9,073





25,053


27,083



















         Non-GAAP Income from Operations


$     34,068


$    47,306





$       101,521


$         158,626



















         Non-GAAP Income from Operations Margin


6.4 %


7.8 %





6.2 %


8.6 %



















Depreciation and amortization


15,873


16,183





48,152


48,946




Changes in acquisition contingent consideration


(449)


102





(1,496)


6,864




Change in escrow balance related to acquisition


-


-





-


625




Loss on dissolution of subsidiary


-


-





-


301




Foreign SS Tax Recovery


-


-





(853)


-




Foreign VAT receivable write-off


-


-





770


-




Foreign exchange loss / (gain), net


1,825


(373)





2,381


839




Other Income (expense), net


(1,041)


687





953


(2,232)



















         Adjusted EBITDA


$     50,276


$    63,905





$       151,428


$         213,969



















         Adjusted EBITDA Margin


9.5 %


10.6 %





9.2 %


11.7 %



















Reconciliation of Non-GAAP EPS:






























Net (Loss) Income


$    (18,968)


$      1,796





$     (315,236)


$          26,470




Add:  Asset impairment and restructuring charges


5,690


5,493





247,890


15,979




Add:  Equity-based compensation expenses


4,333


6,608





15,249


16,410




Add:  Amortization of purchased intangibles


8,169


9,073





25,053


27,083




Add:  Cybersecurity incident related impact, net of insurance recovery


-


-





-


(3,210)




Add:  Grant income for pandemic relief


-


-





-


40




Add:  Change in acquisition related obligation


-


-





-


483




Add:  Property costs not related to operations


424


744





2,329


744




Add:  Liability related to notifications triggered by labor scheme


2,563


-





(187)


-




Add:  Foreign SS Tax Recovery


-


-





(853)


-




Add:  Foreign VAT receivable write-off


-


-





770


-




Add:  Changes in acquisition contingent consideration


(449)


102





(1,496)


6,864




Add:  Changes in escrow balance related to acquisition


-


-





-


625




Add:  Loss on dissolution of subsidiary


-


-





-


301




Add:  Foreign exchange loss / (gain), net


1,825


(373)





2,381


839




Less:  Changes in valuation allowance, return to provision adjustments and
other, and tax effects of items separately disclosed above


1,810


(590)





48,752


(6,974)



















         Non-GAAP Net Income


$       5,397


$    22,853





$         24,652


$          85,654



















             Diluted shares outstanding


47,860


47,488





47,618


47,417



















         Non-GAAP EPS


$0.11


$0.48





$0.52


$1.81



















Reconciliation of Free Cash Flow:






























Cash Flow From Operating Activities:















   Net (loss) / income


$    (18,968)


$      1,321





$     (315,236)


$          26,470




   Adjustments to reconcile net income to net cash provided by operating activities:














          Depreciation and amortization


24,042


25,256





74,258


76,368




          Other


(96,451)


(58,295)





183,246


10,393




   Net cash provided by operating activities


(91,377)


(31,718)





(57,732)


113,231



















Less - Total Cash Capital Expenditures


8,783


21,768





36,465


54,722



















        Free Cash Flow


$  (100,160)


$  (53,486)





$       (94,197)


$          58,509


































(1) -  For further information, please see discussion in the Risk Factors section of the 2023 Form 10-K filed on February 29, 2024.























Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :













TTEC Engage


TTEC Digital


TTEC Engage


TTEC Digital



Q3 24


Q3 23


Q3 24

Q3 23


YTD 24


YTD 23


YTD 24

YTD 23
















Income / (Loss) from Operations


$       5,414


$    13,463


$     7,474

$    11,925


$     (205,585)


$          81,233


$     16,771

$    19,864

Restructuring charges, net


202


634


801

735


5,697


2,427


650

2,469

Impairment losses


4,255


4,124


433

-


238,600


8,229


2,944

2,854

Cybersecurity incident related impact, net of insurance recovery




-


-

-




(3,210)


-

-

Grant income for pandemic relief




-


-

-




40


-

-

Property costs not related to operations


424


744


-

-


2,329


744


-

-

Change in acquisition related obligation


-


-


-

-




-


-

483

Liability related to notifications triggered by labor scheme


2,563


-


-

-


(187)


-


-

-

Equity-based compensation expenses


2,701


4,327


1,632

2,281


9,748


10,599


5,501

5,811

Amortization of purchased intangibles 


4,098


4,649


4,071

4,424


12,306


13,951


12,747

13,132
















         Non-GAAP Income from Operations


$     19,657


$    27,941


$    14,411

$    19,365


$         62,908


$         114,013


$     38,613

$    44,613
















Depreciation and amortization


12,958


13,807


2,915

2,377


39,849


41,695


8,303

7,252

Changes in acquisition contingent consideration


(449)


102



-


(1,496)


6,864


-

-

Change in escrow balance related to acquisition




-



-


-


625


-

-

Loss on dissolution of subsidiary


-


-



-


-


301


-

-

Foreign VAT receivable write-off


-


-



-


770


-


-


     Foreign SS Tax Recovery


-


-



-


(853)


-




Foreign exchange loss / (gain), net


1,725


(297)


100

(76)


2,518


815


(138)

24

Other Income (expense), net


(944)


578


(97)

108


833


(2,332)


121

99
















         Adjusted EBITDA


$     32,947


$    42,131


$    17,329

$    21,774


$       104,529


$         161,981


$     46,899

$    51,988