TTEC Holdings, Inc. Files Q3 2024 10-Q

TL;DR

**TTEC Q3 10-Q FILED: Financials and operations detailed for period ending 9/30/24.**

AI Summary

TTEC Holdings, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates. Key financial figures and strategic information are presented within this report.

Why It Matters

This filing provides investors and analysts with a detailed look at TTEC's financial health and operational performance during the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that could reveal risks or opportunities impacting the company's stock price.

Key Players & Entities

• TTEC Holdings, Inc. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241106 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• ttec-20240930x10q.htm (10-Q) — 2964KB
• ttec-20240930xex10d02.htm (EX-10.02) — 344KB
• ttec-20240930xex10d99.htm (EX-10.99) — 1624KB
• ttec-20240930xex31d1.htm (EX-31.1) — 27KB
• ttec-20240930xex31d2.htm (EX-31.2) — 26KB
• ttec-20240930xex32d1.htm (EX-32.1) — 8KB
• ttec-20240930xex32d2.htm (EX-32.2) — 9KB
• ttec-20240930xex10d02001.jpg (GRAPHIC) — 27KB
• 0001558370-24-014654.txt ( ) — 14831KB
• ttec-20240930.xsd (EX-101.SCH) — 54KB
• ttec-20240930_cal.xml (EX-101.CAL) — 68KB
• ttec-20240930_def.xml (EX-101.DEF) — 295KB
• ttec-20240930_lab.xml (EX-101.LAB) — 493KB
• ttec-20240930_pre.xml (EX-101.PRE) — 449KB
• ttec-20240930x10q_htm.xml (XML) — 2789KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (unaudited) 1 Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2024 and 2023 (unaudited) 2 Consolidated Statements of Stockholders' Equity and Mezzanine Equity as of and for the three and nine months ended September 30, 2024 and 2023 (unaudited) 3 Consolidated Statements of Cash Flows for the nine months ended September 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 31 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 40 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 5. Other Information 41 Item 6. Exhibits 41

SIGNATURES

SIGNATURES 42 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) September 30, December 31, 2024 2023 ASSETS Current assets Cash and cash equivalents $ 96,929 $ 172,747 Accounts receivable, net of allowance of $ 4,761 and $ 2,248 430,092 394,868 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 Long-term assets Property, plant 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 Deferred tax assets, net 12,398 38,151 Other intangible assets, net 173,227 198,433 Income and other tax receivables, long-term 34,469 44,673 Other long-term assets 101,773 101,573 Total long-term assets 1,173,224 1,504,395 Total assets $ 1,826,290 $ 2,185,598 LIABILITIES, STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 82,259 $ 96,577 Accrued employee compensation and benefits 121,255 146,184 Other accrued expenses 26,116 32,217 Income tax payable 292 4,909 Deferred revenue 70,834 81,171 Current operating lease liabilities 35,217 38,271 Other current liabilities 2,677 3,698 Total current liabilities 338,650 403,027 Long-term liabilities Line of credit 1,025,000 995,000 Deferred tax liabilities, net 15,011 3,137 Non-current income tax payable — — Non-current operating lease liabilities 79,909 96,809 Other long-term liabilities 72,586 72,083 Total long-term liabilities 1,192,506 1,167,029 Total liabilities 1,531,156 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 September 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 September 30, 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

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 has monitored its collection processes to reduce its credit risk. 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 Accounting Standards Update ("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, th

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