TTEC Holdings, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>TTEC Holdings, Inc. has filed its Q1 2024 10-Q report, detailing financial performance and operational status.</b>

AI Summary

TTEC Holdings, Inc. (TTEC) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. TTEC Holdings, Inc. filed a 10-Q report on May 8, 2024, for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal business is Services-Help Supply Services, SIC code 7363. TTEC Holdings, Inc. was formerly known as TELETECH HOLDINGS INC, with a name change date of May 9, 1996. The company is incorporated in Delaware and has a fiscal year end of December 31.

Why It Matters

For investors and stakeholders tracking TTEC Holdings, Inc., this filing contains several important signals. This filing provides investors with an update on TTEC's financial health and strategic direction for the first quarter of 2024. Understanding the details within this 10-Q is crucial for assessing the company's performance against market expectations and its own historical trends.

Risk Assessment

Risk Level: low — TTEC Holdings, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant new risks or disclosures beyond routine updates.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to identify any shifts in revenue, profitability, or operational challenges.

Key Numbers

• 7363 — Standard Industrial Classification (Services-Help Supply Services)
• 19960509 — Date of Name Change (From TELETECH HOLDINGS INC to TTEC Holdings, Inc.)
• DE — State of Incorporation (TTEC Holdings, Inc.)
• 1231 — Fiscal Year End (TTEC Holdings, Inc.)

Key Players & Entities

• TTEC Holdings, Inc. (company) — Filer name
• TELETECH HOLDINGS INC (company) — Former company name
• 2024-03-31 (date) — Period of report
• 2024-05-08 (date) — Filing date

FAQ

Industry Context

TTEC Holdings, Inc. operates within the Services-Help Supply Services industry, identified by SIC code 7363.

Regulatory Implications

The filing is a standard 10-Q report under the Securities Exchange Act of 1934, requiring regular disclosure of financial information.

What Investors Should Do

1. Analyze the balance sheet for changes in assets, liabilities, and equity.
2. Examine the income statement for revenue trends and profitability metrics.
3. Review the cash flow statement for insights into operating, investing, and financing activities.

Key Dates

• 2024-03-31: End of Reporting Period — First quarter of fiscal year 2024
• 2024-05-08: Filing Date — Date the 10-Q was submitted to the SEC

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing an update from the previous year's filings.

Key Financial Figures

• $0.01 — Common stock of TTEC Holdings, Inc., $0.01 par value per share TTEC NASDAQ I
• $22.4 million — 2023 and reflected a buyout purchase of $22.4 million. In connection with the triggering of

Filing Documents

• ttec-20240331x10q.htm (10-Q) — 2249KB
• ttec-20240331xex10d29.htm (EX-10.29) — 78KB
• ttec-20240331xex10d30.htm (EX-10.30) — 102KB
• ttec-20240331xex31d1.htm (EX-31.1) — 27KB
• ttec-20240331xex31d2.htm (EX-31.2) — 26KB
• ttec-20240331xex32d1.htm (EX-32.1) — 8KB
• ttec-20240331xex32d2.htm (EX-32.2) — 9KB
• ttec-20240331xex10d29001.jpg (GRAPHIC) — 1KB
• ttec-20240331xex10d30001.jpg (GRAPHIC) — 1KB
• 0001558370-24-007368.txt (&nbsp;) — 10666KB
• ttec-20240331.xsd (EX-101.SCH) — 51KB
• ttec-20240331_cal.xml (EX-101.CAL) — 68KB
• ttec-20240331_def.xml (EX-101.DEF) — 284KB
• ttec-20240331_lab.xml (EX-101.LAB) — 481KB
• ttec-20240331_pre.xml (EX-101.PRE) — 434KB
• ttec-20240331x10q_htm.xml (XML) — 2189KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (unaudited) 1 Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023 (unaudited) 2 Consolidated Statements of Stockholders' Equity and Mezzanine Equity as of and for the three months ended March 31, 2024 and 2023 (unaudited) 3 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited) 4 Notes to the Consolidated Financial Statements (unaudited) 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 36

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 5. Other Information 37 Item 6. Exhibits 38

SIGNATURES

SIGNATURES 39 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TTEC HOLDINGS, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Amounts in thousands, except share amounts) (Unaudited) March 31, December 31, 2024 2023 ASSETS Current assets Cash and cash equivalents $ 91,514 $ 172,747 Accounts receivable, net of allowance of $ 2,065 and $ 2,248 , respectively 404,651 394,868 Prepaids and other current assets 104,985 95,064 Income and other tax receivables 16,328 18,524 Total current assets 617,478 681,203 Long-term assets Property, plant and equipment, net 185,242 191,003 Operating lease assets 113,060 121,574 Goodwill 807,134 808,988 Deferred tax assets, net 52,059 38,151 Other intangible assets, net 189,814 198,433 Income and other tax receivables, long-term 41,501 44,673 Other long-term assets 108,766 101,573 Total long-term assets 1,497,576 1,504,395 Total assets $ 2,115,054 $ 2,185,598 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 90,473 $ 96,577 Accrued employee compensation and benefits 120,340 146,184 Other accrued expenses 40,314 32,217 Income tax payable 5,444 4,909 Deferred revenue 87,787 81,171 Current operating lease liabilities 36,457 38,271 Other current liabilities 3,400 3,698 Total current liabilities 384,215 403,027 Long-term liabilities Line of credit 953,000 995,000 Deferred tax liabilities, net 3,122 3,137 Non-current income tax payable — — Non-current operating lease liabilities 90,218 96,809 Other long-term liabilities 72,090 72,083 Total long-term liabilities 1,118,430 1,167,029 Total liabilities 1,502,645 1,570,056 Commitments and contingencies (Note 10) Stockholders' equity Preferred stock; $ 0.01 par value; 10,000,000 shares authorized; zero shares outstanding as of March 31, 2024 and December 31, 2023 — — Common stock; $

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) (1) OVERVIEW AND BASIS OF PRESENTATION Summary of Business Founded in 1983, TTEC Holdings, Inc. ("TTEC", "the Company"; pronounced "T-TEC") is a global customer experience ("CX") outsourcing partner for marquee and disruptive brands and public sector clients. The Company designs, builds, and operates technology-enabled customer experiences across digital and live interaction channels to help clients increase customer loyalty, revenue, and profitability. By combining digital solutions with data-driven service capabilities, the Company helps clients improve their customer satisfaction while lowering their total cost to serve. As of March 31, 2024, TTEC served approximately 750 clients across targeted industry verticals including financial services, healthcare, public sector, telecom, technology, media, travel and hospitality, automotive and retail. The Company operates and reports its financial results of operation through two business segments: TTEC Digital is one of the largest CX technology providers and is focused exclusively on the intersection of Contact Center as a Service (CCaaS), Customer Relationship Management (CRM), and Artificial Intelligence (AI) and Analytics. A professional services organization comprised of software engineers, systems architects, data scientists and CX strategists, this segment creates and implements strategic CX transformation roadmaps; sells, operates, and provides managed services for cloud platforms and premise based CX technologies including Amazon Web Services ("AWS"), Cisco, Genesys, Google, and Microsoft; and creates proprietary IP to support industry specific and custom client needs. TTEC Digital serves clients across enterprise and small and medium sized business segments and has a dedicated unit with government technology certifications serving the public sector. TTEC Engage provides the digitally enabled CX operational and managed services to support large

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) The unaudited Consolidated Financial Statements do not include all of the disclosures required by accounting principles generally accepted in the U.S. ("GAAP"), pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The unaudited Consolidated Financial Statements reflect all adjustments which, in the opinion of management, are necessary to state fairly the consolidated financial position of the Company and the consolidated results of operations and comprehensive income (loss) and the consolidated cash flows of the Company. All such adjustments are of a normal, recurring nature. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. These unaudited Consolidated Financial Statements should be read in conjunction with the Company's audited Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Use of Estimates The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, litigation reserves, restructuring reserves, allowance for credit losses, contingent consideration, redeemable noncontrolling interest, and valuation of goodwill, long-lived and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of w

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Concentration of Credit Risk The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate the possibility of current and future exposures resulting in a loss. The Company evaluates the creditworthiness of its clients prior to entering into an agreement to provide services and as necessary through the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative hedging activities, as the Company diversifies its activities across eight investment-grade financial institutions. Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, "Reference Rate Reform" (Topic 848), which provides optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform due to the anticipated cessation of the London Interbank Offered Rate ("LIBOR"). The ASU is effective from March 12, 2020, may be applied prospectively and could impact the accounting for LIBOR provisions in the Company's credit facility agreement. In addition, in January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform – Scope," which clarified the scope of ASC 848 relating to contract modifications. The Company adopted the standard effective April 1, 2023 and the adoption of this guidance did not have a material impact on the Company's financial position, results of operations or cash flows. Other Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, "Segment Reporting - Improvements to Reportable Segment Disclosures" which relates to disclosures regarding a public entity's reportable segments and provides more deta

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) FCR Pursuant to the Membership Interest Purchase Agreement of October 26, 2019 between Ortana Holdings, Inc. and TTEC Services Corporation for the acquisition by TTEC of 70 % interest in First Call Resolution, LLC ("FCR" and "FCR MIPA", respectively), Ortana Holdings exercised its put rights in January 2023, which required TTEC to acquire Ortana Holdings' remaining 30 % interest in FCR. The purchase price for the remaining 30% interest was determined based on the express provisions of the FCR MIPA and was based on FCR's performance during 2022. The buyout agreement was signed on April 4, 2023 and reflected a buyout purchase of $22.4 million. In connection with the triggering of the option, as of March 31, 2023, the $ 22.4 million purchase price was reclassified from Redeemable noncontrolling interest to Accrued expenses and the remaining balance of $ 20.5 million was reclassified to Additional paid in capital. In February 2023, a $ 9.2 million payment related to excess cash distribution was completed and in April 2023 the final payment of $ 22.4 million was completed. Certain Assets of Faneuil On April 1, 2022 , the Company completed an asset acquisition through its subsidiary TTEC Government Solutions LLC, of certain public sector citizen experience contracts in the transportation infrastructure and healthcare exchange industries from Faneuil, Inc., a subsidiary of ALJ Regional Holdings, Inc. ("the Faneuil Transaction"). The acquired business is operated as part of the TTEC Engage segment and was fully consolidated into the financial statements of TTEC. The Faneuil Transaction was recorded as a business combination under ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date. Total cash paid at the time of acquisition was $ 142.4 million. In addition, Faneuil granted to TTEC Government Solutions LLC

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