TTEC Holdings Files Q2 2024 10-Q Report

TL;DR

**TTEC Holdings Q2 10-Q filed. Financials and operations detailed.**

AI Summary

TTEC Holdings, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the company, which provides customer experience and technology services. Specific financial figures and future outlook are presented within the report.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of TTEC Holdings, Inc., crucial for understanding its market position and future prospects.

Risk Assessment

Risk Level: medium — 10-Q filings inherently carry medium risk due to the detailed financial data and forward-looking statements that can impact stock price.

Key Numbers

• 20240630 — Fiscal Period End Date (Indicates the end of the reporting period for the 10-Q.)
• 20240808 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• TTEC Holdings, Inc. (company) — Filer of the 10-Q report
• 6312 S. FIDDLER'S GREEN CIRCLE (location) — Business and mailing address of TTEC Holdings, Inc.
• GREENWOOD VILLAGE, CO 80111 (location) — City, State, and ZIP code of TTEC Holdings, Inc.
• 303-397-8100 (phone_number) — Business phone number for TTEC Holdings, Inc.

FAQ

Key Financial Figures

• $0.01 — Common stock of TTEC Holdings, Inc., $0.01 par value per share TTEC NASDAQ I

Filing Documents

• ttec-20240630x10q.htm (10-Q) — 2971KB
• ttec-20240630xex10d88.htm (EX-10.88) — 83KB
• ttec-20240630xex10d99.htm (EX-10.99) — 1846KB
• ttec-20240630xex31d1.htm (EX-31.1) — 27KB
• ttec-20240630xex31d2.htm (EX-31.2) — 26KB
• ttec-20240630xex32d1.htm (EX-32.1) — 8KB
• ttec-20240630xex32d2.htm (EX-32.2) — 9KB
• 0001558370-24-011611.txt ( ) — 14631KB
• ttec-20240630.xsd (EX-101.SCH) — 54KB
• ttec-20240630_cal.xml (EX-101.CAL) — 68KB
• ttec-20240630_def.xml (EX-101.DEF) — 294KB
• ttec-20240630_lab.xml (EX-101.LAB) — 491KB
• ttec-20240630_pre.xml (EX-101.PRE) — 446KB
• ttec-20240630x10q_htm.xml (XML) — 2807KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (unaudited) 1 Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023 (unaudited) 2 Consolidated Statements of Stockholders' Equity and Mezzanine Equity as of and for the three and six months ended June 30, 2024 and 2023 (unaudited) 3 Consolidated Statements of Cash Flows for the six months ended June 30, 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 32 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 40

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 5. Other Information 41 Item 6. Exhibits 42

SIGNATURES

SIGNATURES 43 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) June 30, December 31, 2024 2023 ASSETS Current assets Cash and cash equivalents $ 79,780 $ 172,747 Accounts receivable, net of allowance of $ 4,757 and $ 2,248 381,685 394,868 Prepaids and other current assets 117,081 95,064 Income and other tax receivables 24,872 18,524 Total current assets 603,418 681,203 Long-term assets Property, plant and equipment, net 149,114 191,003 Assets held for sale 29,449 — Operating lease assets 106,185 121,574 Goodwill 573,625 808,988 Deferred tax assets, net 12,439 38,151 Other intangible assets, net 181,338 198,433 Income and other tax receivables, long-term 37,194 44,673 Other long-term assets 99,859 101,573 Total long-term assets 1,189,203 1,504,395 Total assets $ 1,792,621 $ 2,185,598 LIABILITIES, STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 87,115 $ 96,577 Accrued employee compensation and benefits 132,824 146,184 Other accrued expenses 48,268 32,217 Income tax payable 1,159 4,909 Deferred revenue 77,783 81,171 Current operating lease liabilities 35,650 38,271 Other current liabilities 4,857 3,698 Total current liabilities 387,656 403,027 Long-term liabilities Line of credit 930,000 995,000 Deferred tax liabilities, net 13,277 3,137 Non-current income tax payable — — Non-current operating lease liabilities 83,855 96,809 Other long-term liabilities 73,657 72,083 Total long-term liabilities 1,100,789 1,167,029 Total liabilities 1,488,445 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 June 30, 2024 and December 31, 2023 — —

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) (1) OVERVIEW AND BASIS OF PRESENTATION Summary of Business Founded in 1982 , 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 June 30, 2024, TTEC served approximately 740 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, but in light of recent economic headwinds the Company is reviewing and tightening its collection processes. 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 FASB Accounting Standards Codification ("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 Reportin

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

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