On August 9, 2024, TTEC Holdings Inc (TTEC, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. TTEC Holdings Inc provides customer engagement management tools and services through its two main segments: TTEC Digital and TTEC Engage.
Performance Overview
TTEC Holdings Inc reported a revenue of $534.1 million for Q2 2024, representing an 11.0% decline from the same period last year. This figure fell short of the analyst estimate of $552.67 million. The company also reported an operating loss of $224.4 million, primarily due to $233.5 million in non-cash goodwill impairments and related tax adjustments. On a non-GAAP basis, operating income was $29.5 million, or 5.5% of revenue.
The net loss for the quarter was $296.8 million, translating to a net loss per share of $6.23. On a non-GAAP basis, net income was $6.6 million, or $0.14 per share, which is significantly above the analyst estimate of -$0.04 per share.
Segment Performance
TTEC Holdings Inc operates through two main segments: TTEC Digital and TTEC Engage. TTEC Digital focuses on building and implementing cloud-based and on-premises customer experience tools, while TTEC Engage delivers sales and marketing solutions and manages customer processes.
| Segment | Revenue (Q2 2024) | Revenue (Q2 2023) | Operating Income (Q2 2024) | Operating Income (Q2 2023) |
|---|---|---|---|---|
| TTEC Digital | $116.4 million | $117.6 million | $6.0 million | $7.2 million |
| TTEC Engage | $417.7 million | $482.8 million | $(230.4) million | $24.1 million |
Financial Metrics and Achievements
Adjusted EBITDA for the quarter was $46.2 million, or 8.7% of revenue. Despite the challenges, TTEC Holdings Inc continues to focus on cost optimization and transformation initiatives to improve profitability, particularly in the Engage segment.
"Our results this quarter are impacted by non-cash goodwill impairment charges and related tax adjustments. We continue to operate in a dynamic macroeconomic environment where clients are facing softer demand and budget constraints putting pressure on our top line in the Engage business, while our Digital business had a solid quarter," commented Ken Tuchman, chairman and chief executive officer of TTEC.
Balance Sheet and Cash Flow
As of June 30, 2024, TTEC Holdings Inc reported total assets of $1.79 billion, down from $2.19 billion at the end of 2023. The company's cash and cash equivalents stood at $79.8 million, a significant decrease from $172.7 million at the end of 2023. The company also reported a line of credit of $930 million, down from $995 million at the end of 2023.
Outlook and Guidance
For the full year 2024, TTEC Holdings Inc has updated its guidance. The company now expects revenue to be in the range of $2.21 billion to $2.26 billion, with a mid-point of $2.235 billion. Non-GAAP adjusted EBITDA is expected to be between $201 million and $217 million, with a mid-point of $209 million. Non-GAAP earnings per share are projected to be between $0.74 and $0.97, with a mid-point of $0.86.
"While our second quarter Non-GAAP results were largely in line with our expectations, we see continued pressure in the back half of the year primarily in our Engage business where operational execution remains a top priority," commented Kenny Wagers, chief financial officer of TTEC.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from TTEC Holdings Inc for further details.
