#USA #Austin #Customer Experience #TTEC Holdings #Q1 Financials

TTEC Reports Financial Results for Q1 2025

TTEC Holdings, Inc. (NASDAQ:TTEC) has released its financial results for the first quarter of 2025, revealing both challenges and achievements during the quarter that ended on March 31, 2025. The company's revenue for the quarter stood at $534.2 million, which marks a decrease of 7.4% compared to $576.6 million in the same period last year. Despite these declines, TTEC's leadership is optimistic about the company's trajectory amid a cautious approach from clients in the current economic climate.

Financial Highlights

TTEC's Q1 2025 performance was multifaceted:

• - Net Income: The company reported a net income of $3.2 million, representing 0.6% of revenue, a notable drop from $13.6 million or 2.6% of revenue (non-GAAP) in the previous year.
• - Adjusted EBITDA: The adjusted EBITDA for the quarter reached $56.4 million, equivalent to 10.6% of revenue, up from $54.9 million or 9.5% of revenue year-over-year.
• - Foreign Exchange Impact: Notably, foreign exchange factors affected revenue by approximately $6.0 million negatively, showcasing the challenges of operating on a global scale.

CEO Ken Tuchman communicated a positive tone regarding the financial results, emphasizing that the firm had signed several new enterprise clients during the quarter. This reflects TTEC's ongoing focus on innovation and the expansion of its market reach with more complex digitally enabled solutions.

Operational Performance

In terms of operational performance, TTEC also made strides:

• - The TTEC Digital segment generated revenues of $108.0 million, slightly down from $112.0 million a year prior, but with a notable increase in income from operations from $3.3 million to $5.9 million.
• - The TTEC Engage segment, which focuses on customer care technology, reported revenues of $426.2 million, reflecting an 8.3% decrease from the previous year's $464.6 million. However, this segment maintained a robust operating income of $18.3 million.

TTEC's cautious strategy in navigating the economic uncertainties has allowed it to adapt quickly to changing demands and focus on optimizing its cost structure, enabling better momentum in service delivery

Looking Ahead

The challenges posed by current market uncertainties have led TTEC to reiterate its outlook for the full year 2025, aiming for a revenue range between $2,014 million and $2,064 million. Against this backdrop, TTEC's leadership is prioritizing improved operational agility and the implementation of AI-enabled solutions, crucial in maintaining a competitive edge in the customer experience sector.

Despite the cautiousness of clients, TTEC remains well-positioned to navigate these challenging times, anticipating stabilization in trade policies and overall performance in the industry moving forward. The ongoing commitment to customer experience excellence remains a cornerstone of TTEC’s operations, aiming to drive satisfaction not just amongst clients, but also for their team members who deliver the services.

The financial results, discussions on strategic directions, and how the leadership plans to leverage their technological strengths offer valuable insights into TTEC's future trajectory. As the company prepares for the coming quarters, stakeholders and investors are encouraged to attend TTEC's upcoming conference call for further discussions on these results and future expectations.