TTEC Holdings Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

Ken Tuchman, chairman and CEO of TTEC, noted that 2024 was a transitional year for the company. Despite the challenges, TTEC made strides in enhancing its diversification strategy, expanding its geographic delivery footprint, and broadening its digital CX value proposition. Tuchman expressed optimism for the future, stating that the leadership changes and strategic actions taken in the latter half of 2024 position the company for improved financial performance in 2025 and beyond.

In Q4 2024, TTEC reported GAAP revenue of $567.4 million, representing a 9.4% decrease from $626.2 million in Q4 2023. The company noted that foreign exchange fluctuations negatively impacted revenue by $2.1 million during this period.

For the fourth quarter, TTEC reported GAAP income from operations of $15.3 million, maintaining a margin of 2.7%, consistent with the prior year. On a non-GAAP basis, income from operations was $34.9 million, or 6.2% of revenue, down from $41.8 million (6.7% margin) in the previous year. The foreign exchange had a positive impact of $4.4 million on non-GAAP income from operations.

Non-GAAP Adjusted EBITDA for Q4 2024 was $50.9 million, accounting for 9.0% of revenue, compared to $57.5 million (9.2% margin) in Q4 2023.

TTEC reported a GAAP fully diluted net income per share of $0.10 for Q4 2024, a significant recovery from a net loss of $0.17 per share in the same quarter last year. Non-GAAP fully diluted net income per share also saw a decrease, standing at $0.19 compared to $0.37 in Q4 2023.

For the entire year, TTEC's GAAP revenue totaled $2.208 billion, reflecting a 10.4% decline from $2.463 billion in 2023. The company highlighted a $2.6 million adverse impact from foreign exchange throughout the year.

TTEC reported a GAAP loss from operations of $173.5 million for 2024, equating to a negative 7.9% margin, a stark contrast to an income of $118 million (4.8% margin) in 2023. The decline was primarily attributed to a non-cash impairment charge of $196 million recorded in Q2 2024.

Non-GAAP income from operations was $136.5 million, or 6.2% of revenue, down from $200.4 million (8.1% margin) in the prior year.

Full-year Non-GAAP Adjusted EBITDA was reported at $202.3 million (9.2% of revenue), compared to $271.5 million (11.0% margin) in 2023.

The company recorded a GAAP fully diluted net loss per share of $6.52 for 2024, a stark contrast to net income of $0.39 per share in 2023. Non-GAAP fully diluted net income per share also decreased to $0.71 from $2.18 in the prior year.

Cash flow from operations turned negative at $58.8 million for the year, compared to a positive $144.8 million in 2023, largely due to the discontinuation of the accounts receivable factoring facility. Free cash flow also faced a significant decline, totaling negative $104 million compared to positive $76.9 million in 2023.

As of December 31, 2024, TTEC held cash and cash equivalents of $85 million, with total debt amounting to $978 million, leading to a net debt position of $893 million, up from $826.5 million a year earlier.

In a strategic pivot, TTEC's Board of Directors suspended its semi-annual cash dividend to prioritize debt reduction. The company also announced the sale of a real estate asset in Englewood, Colorado, for $45.5 million, using the proceeds to reduce outstanding debt.

Looking ahead, TTEC provided guidance for 2025, expecting revenue between $2.014 billion and $2.064 billion, with an adjusted EBITDA forecast of $215 million to $235 million. The company aims to strengthen its operational performance through profit optimization initiatives and an expanded suite of CX technology offerings.

Despite a challenging year in 2024, TTEC Holdings Inc. remains focused on strategic initiatives to enhance its financial performance and operational efficiency. The company's leadership expresses confidence in the potential for recovery and growth in 2025, as they navigate the evolving landscape of customer experience technology.