Q2 2024 TTEC Holdings Inc Earnings Call Transcript
Key Points
- TTEC Holdings Inc (TTEC) reported revenue of $534 million for Q2 2024, showing resilience despite a challenging macroeconomic environment.
- The digital segment continues to perform well, with recurring managed services growing nearly 8% year-over-year.
- TTEC Holdings Inc (TTEC) has successfully diversified its client base, winning new enterprise clients across various industries such as e-commerce, retail, media, and property and casualty insurance.
- The company has doubled the number of partners in its technology ecosystem, enhancing its capabilities in AI, CRM, and analytics solutions.
- Cost optimization initiatives are expected to deliver approximately $10 million of in-year savings and annualized savings of at least $30 million starting in 2025.
- TTEC Holdings Inc (TTEC) recorded a goodwill impairment charge of $196 million due to a decline in market capitalization, significantly impacting GAAP results.
- The engage segment faced headwinds, with revenue declining 13.5% year-over-year, primarily due to challenges in the healthcare and public sector verticals.
- The company revised its full-year 2024 financial outlook downward, reflecting weaker demand from embedded base clients, especially in the healthcare sector.
- Free cash flow decreased to $35 million in Q2 2024 from $77 million in the prior year, attributed to lower profitability and working capital conversion.
- Net debt increased by $49 million over the prior year, resulting in a net debt-to-EBITDA ratio of 3.8 times, indicating higher leverage.
Welcome, everyone, to TTEC's second-quarter 2024 earnings conference call. (Operator Instructions) This call is being recorded at the request of TTEC. I would now like to turn the call over to Paul Miller, TTEC's Senior Vice President, Treasurer and Investor Relations Officer. Thank you, sir, and you may begin.
Good morning and thank you for joining us today. TTEC is hosting this call to discuss its second quarter results for the period ended June 30, 2024. Participating on today's call are Ken Tuchman, Chairman and Chief Executive Officer of TTEC; Shelly Swanback, President of TTEC and Chief Executive Officer of Engage; Kenny Wagers, Chief Financial Officer of TTEC.
Yesterday, TTEC issued a press release announcing its financial results. While this call will reflect items discussed within that document, for complete information of our financial performance, we also encourage you to read our second quarter 2024 orderly reports on Form 10-Q. Before we begin, I
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