Technology
TTEC Announces Fourth Quarter and Full Year 2023 Financial Results
Published
2 years agoon
By
Full Year 2023
Revenue was $2.463 Billion, up 0.8 Percent
Operating Income was $118.0 Million or 4.8 Percent of Revenue
($200.4 Million or 8.1 Percent of Revenue Non-GAAP)
Net Income was $18.3 Million or 0.7 Percent of Revenue
($103.2 Million or 4.2 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $271.5 Million or 11.0 Percent of Revenue
Fully Diluted EPS was $0.39, $2.18 Non-GAAP
Fourth Quarter 2023
Revenue was $626.2 Million, down 4.9 Percent
Operating Income was 16.9 Million or 2.7 Percent of Revenue
($41.8 Million or 6.7 Percent of Revenue Non-GAAP)
Net Income was ($8.2) Million or (1.3) Percent of Revenue
($17.5 Million or 2.8 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $57.5 Million or 9.2 Percent of Revenue
Fully Diluted EPS was ($0.17), $0.37 Non-GAAP
Provides Outlook for Full Year 2024
DENVER, Feb. 29, 2024 /PRNewswire/ — TTEC Holdings, Inc. (NASDAQ:TTEC), a leading global CX (customer experience) technology and services innovator for AI-enabled CX with solutions from TTEC Engage and TTEC Digital, announced today financial results for the fourth quarter and full year ended December 31, 2023.
“As we have previously communicated, 2023 was a dynamic year for TTEC. The macroeconomic factors created a conservative and uncertain business environment that delayed client contracting decisions and lowered forecasts for certain clients in the second half of the year. While these factors moderated our results, we continued to make progress diversifying our business by growing our client base, completing a strategic phase of our geographic expansion, and expanding our AI-enabled solutions,” commented Ken Tuchman, chairman and chief executive officer of TTEC.
“Our 2024 outlook reflects three very specific challenges in our TTEC Engage segment. First, client budget constraints and a conservative mindset in the second half of 2023 is carrying forward into our 2024 outlook. Second, a long-tenured client eliminated one of several lines of business that we supported. While our relationship remains strong with this client and we continue to service their customers across multiple other lines of business, the discontinuation of this one line of business contributes to the impact on our top and bottom line in 2024. Third, while we are pleased by the growing demand for our new offshore locations, the timing lag between our recent wins and normalized revenue run rate and margins is weighing on our outlook,” Tuchman continued.
“In TTEC Digital, we delivered record bookings in the fourth quarter and the team is off to a strong start this year. Demand for our differentiated CX technology expertise continues to grow as cloud migrations and AI solutions drive our clients’ CX digital transformation agendas.”
Tuchman further stated, “As we move into 2024, we are laser focused on execution. We will continue to capitalize on our greatly expanded offshore footprint, deepen our relationships with new and existing clients, apply our AI-enabled solutions and accelerate our margin optimization initiatives.”
“TTEC’s board of directors’ decision to reduce the dividend reflects a prudent shift to prioritize our capital deployment towards continued investments in sustainable growth initiatives and debt reduction associated with strategic acquisitions. As revised, the dividend is in line with our stock price and the dividend yield typical for our industry and the broader market. I am confident we are well positioned to emerge stronger as we exit 2024.”
FULL YEAR 2023 FINANCIAL HIGHLIGHTS
Revenue
Full year 2023 GAAP revenue increased 0.8 percent to $2.463 billion compared to $2.444 billion in the prior year. Foreign exchange had a $4.4 million positive impact on revenue for the full year 2023.
Income from Operations
Full year 2023 GAAP income from operations was $118.0 million, or 4.8 percent of revenue, compared to $168.5 million, or 6.9 percent of revenue in the prior year.Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $200.4 million, or 8.1 percent of revenue, compared to $248.5 million, or 10.2 percent in the prior year.Foreign exchange had a $2.2 million negative impact on Non-GAAP income from operations for the full year 2023.
Adjusted EBITDA
Full year 2023 Non-GAAP Adjusted EBITDA was $271.5 million, or 11.0 percent of revenue, compared to $320.1 million, or 13.1 percent of revenue in the prior year.
Earnings Per Share
Full year 2023 GAAP fully diluted earnings per share was $0.39 compared to $2.48 in the prior year.Non-GAAP fully diluted earnings per share was $2.18 compared to $3.59 in the prior year.
FOURTH QUARTER 2023 FINANCIAL HIGHLIGHTS
Revenue
Fourth quarter 2023 GAAP revenue decreased 4.9 percent to $626.2 million compared to $658.3 million in the prior year. Foreign exchange had a $5.5 million positive impact on revenue in the fourth quarter of 2023.
Income from Operations
Fourth quarter 2023 GAAP income from operations was $16.9 million, or 2.7 percent of revenue, compared to $48.7 million, or 7.4 percent of revenue in the prior year.Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $41.8 million, or 6.7 percent of revenue, compared to $69.9 million, or 10.6 percent for the prior year.Foreign exchange had a $2.4 million negative impact on Non-GAAP income from operations in the fourth quarter 2023.
Adjusted EBITDA
Fourth quarter 2023 Non-GAAP Adjusted EBITDA was $57.5 million, or 9.2 percent of revenue, compared to $86.5 million, or 13.1 percent of revenue in the prior year.
Earnings Per Share
Fourth quarter 2023 GAAP fully diluted earnings per share was ($0.17) compared to $0.54 in the prior year.Non-GAAP fully diluted earnings per share was $0.37 compared to $0.91 in the prior year.
STRONG CASH FLOW AND BALANCE SHEET FUND INVESTMENTS AND DIVIDENDS
Cash flow from operations in the fourth quarter 2023 was $31.5 million compared to $18.2 million for the fourth quarter 2022. For the full year 2023, cash flow from operations was $144.8 million compared to $137.0 million for the same period 2022.Capital expenditures in the fourth quarter 2023 were $13.1 million compared to $19.4 million for the fourth quarter 2022. For the full year 2023, capital expenditures were $67.8 million compared to $84.0 million for the same period 2022.As of December 31, 2023, TTEC had cash and cash equivalents of $172.7 million and debt of $999.3 million, resulting in a net debt position of $826.5 million. This compares to a net debt position of $810.2 million for the same period 2022.As of December 31, 2023, TTEC’s remaining borrowing capacity under its revolving credit facility was approximately $90 million compared to $335 million for the same period 2022.On February 27, 2024, the Board declared the next semi-annual dividend of $0.06 per share, or $2.9 million, payable on April 30, 2024 to shareholders of record as of April 3, 2024. TTEC’s board of directors’ decision to reduce the dividend reflects a prudent shift to prioritize our capital deployment towards continued investments in sustainable growth initiatives and debt reduction associated with strategic acquisitions.TTEC paid a $0.52 per share, or $24.7 million, semi-annual dividend on October 31, 2023.
SEGMENT REPORTING & COMMENTARY
TTEC reports financial results for the following two business segments: TTEC Digital (Digital) and TTEC Engage (Engage). Financial highlights for the two segments are provided below.
TTEC Digital – Design, build and operate tech-enabled, insight-driven CX solutions
Fourth quarter 2023 GAAP revenue for TTEC Digital decreased 2.1 percent to $119.1 million from $121.7 million for the year ago period. Income from operations was $10.0 million or 8.4 percent of revenue compared to an operating income of $9.9 million or 8.2 percent of revenue in the prior year. Non-GAAP income from operations was $17.7 million, or 14.8 percent of revenue compared to operating income of $18.0 million or 14.8 percent of revenue in the prior year.
TTEC Engage – Digitally-enabled customer care, acquisition, and fraud mitigation services
Fourth quarter 2023 GAAP revenue for TTEC Engage decreased 5.5 percent to $507.1 million from $536.6 million for the year ago period. Income from operations was $6.9 million or 1.4 percent of revenue compared to operating income of $38.8 million, or 7.2 percent of revenue in the prior year.Non-GAAP income from operations was $24.1 million, or 4.8 percent of revenue, compared to operating income of $52.0 million, or 9.7 percent of revenue in the prior year.Foreign exchange had a $5.3 million positive impact on revenue and $1.9 million negative impact on income from operations.
BUSINESS OUTLOOK
“We ended 2023 in line with expectations but the recent dynamics in the Engage segment are causing a reduction in our 2024 revenue and margin outlook compared to 2023. We are confident in the initiatives currently in motion that focus on growth and margin improvement,” commented Francois Bourret, interim chief financial officer of TTEC. “As digital transformation continues to be a top priority for our clients, we are encouraged by the growing momentum with TTEC Digital. As we move forward, we will navigate this environment to position the company to exit 2024 with a view towards longer-term profitable growth.”
TTEC First Quarter and Full Year 2024 Outlook
First Quarter 2024
Guidance
First Quarter 2024
Mid-Point
Full Year 2024
Guidance
Full Year 2024
Mid-Point
Revenue
$559M — $569M
$564M
$2,275M — $2,365M
$2,320M
Non-GAAP adjusted EBITDA
$52M — $58M
$55M
$215M — $259M
$237M
Non-GAAP adjusted EBITDA margins
9.3% — 10.2%
9.8 %
9.5% — 11.0%
10.2 %
Non-GAAP operating income
$36M — $42M
$39M
$150M — $194M
$172M
Non-GAAP operating income margins
6.4% — 7.4%
6.9 %
6.6% — 8.2%
7.4 %
Interest expense, net
($20M) — ($22M)
($21M)
($77M) — ($79M)
($78M)
Non-GAAP adjusted tax rate
23% — 25%
24 %
23% — 25%
24 %
Diluted share count
47.4M — 47.6M
47.5M
47.4M — 47.6M
47.5M
Non-GAAP earnings per a share
$0.25 — $0.34
$0.30
$1.15 — $1.86
$1.51
Engage First Quarter and Full Year 2024 Outlook
First Quarter 2024
Guidance
First Quarter 2024
Mid-Point
Full Year 2024
Guidance
Full Year 2024
Mid-Point
Revenue
$453M — $457M
$455M
$1,790M — $1,850M
$1,820M
Non-GAAP adjusted EBITDA
$41M — $45M
$43M
$149M — $179M
$164M
Non-GAAP adjusted EBITDA margins
9.2% — 9.9%
9.5 %
8.4% — 9.7%
9.0 %
Non-GAAP operating income
$28M — $32M
$30M
$95M — $125M
$110M
Non-GAAP operating income margins
6.2% — 7.0%
6.6 %
5.3% — 6.8%
6.1 %
Digital First Quarter and Full Year 2024 Outlook
First Quarter 2024
Guidance
First Quarter 2024
Mid-Point
Full Year 2024
Guidance
Full Year 2024
Mid-Point
Revenue
$106M — $112M
$109M
$485M — $515M
$500M
Non-GAAP adjusted EBITDA
$11M — $13M
$12M
$66M — $80M
$73M
Non-GAAP adjusted EBITDA margins
10.1% — 11.3%
10.7 %
13.5% — 15.5%
14.5 %
Non-GAAP operating income
$8M — $10M
$9M
$55M — $69M
$62M
Non-GAAP operating income margins
7.6% — 8.9%
8.3 %
11.2% — 13.3%
12.3 %
The Company has not quantitatively reconciled its guidance for Non-GAAP operating income, Non-GAAP operating income margins, Non-GAAP adjusted EBITDA, Non-GAAP adjusted EBITDA margins, or Non-GAAP earnings per share to their respective most comparable GAAP measures because certain of the reconciling items that impact these metrics, including restructuring and impairment charges, equity-based compensation expense, changes in acquisition contingent consideration, depreciation and amortization expense, and provision for income taxes are dependent on the timing of future events outside of the Company’s control or cannot be reliably predicted. Accordingly, the Company is unable to provide reconciliations to GAAP operating income, operating income margins, EBITDA margins, and diluted earnings per share without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the Company’s 2024 financial results as reported under GAAP.
NON-GAAP FINANCIAL MEASURES
This press release contains a discussion of certain Non-GAAP financial measures that the Company includes to allow investors and analysts to measure, analyze and compare its financial condition and results of operations in a meaningful and consistent manner. A reconciliation of these Non-GAAP financial measures can be found in the tables accompanying this press release.
GAAP metrics are presented in accordance with Generally Accepted Accounting Principles.Non-GAAP – As reflected in the attached reconciliation table, the definition of Non-GAAP may exclude from operating income, EBITDA, net income and earnings per share restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, among other items.
ABOUT TTEC
TTEC (pronounced T-TEC) Holdings, Inc. (NASDAQ:TTEC) is a leading global CX (customer experience) technology and services innovator for AI-enabled digital CX solutions. Serving iconic and disruptive brands, TTEC’s outcome-based solutions span the entire enterprise, touch every virtual interaction channel, and improve each step of the customer journey. Leveraging next-gen digital technology, the Company’s TTEC Digital business designs, builds, and operates omnichannel contact center technology, CRM, AI and analytics solutions. The Company’s TTEC Engage business delivers AI-enabled customer engagement, customer acquisition and growth, tech support, back office, and fraud prevention services. Founded in 1982, the company’s singular obsession with CX excellence has earned it leading client, customer, and employee satisfaction scores across the globe. The Company’s over 60,000 employees operate on six continents and bring technology and humanity together to deliver happy customers and differentiated business results. To learn more visit us at https://www.ttec.com.
FORWARD-LOOKING STATEMENTS
This Earnings Press Release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995., Forward-looking statements include, but are not limited to, statements relating to our operations, expected financial position, results of operation, effective tax rate, cash flow, leverage, liquidity, business strategy, competitive position, demand for our services in international operations, acquisition opportunities and impact of acquisitions, capital allocation and dividends, growth opportunities, spending, capital expenditures and investments, competition and market forecasts, industry trends, our human capital resources, and other business matters that are based on our current expectations, assumptions, and projections with respect to the future, and are not a guarantee of performance.
In this Release when we use words such as “may,” “believe,” “plan,” “will,” “anticipate,” “estimate,” “expect,” “intend,” “project,” “would,” “could,” “target,” or similar expressions, or when we discuss our strategy, plans, goals, initiatives, or objectives, we are making forward-looking statements. Unless otherwise indicated or except where the context otherwise requires, the terms “TTEC,” “the Company,” “we,” “us” and “our”and other similar terms in this report refer to TTEC Holdings, Inc. and its subsidiaries. We caution you not to rely unduly on any forward-looking statements. Actual results may differ materially from those expressed in the forward-looking statements, and you should review and consider carefully the risks, uncertainties, and other factors that affect our business and may cause such differences as outlined in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”) which are available on TTEC’s website www.ttec.com, and on the SEC’s public website at www.sec.gov
Our forward-looking statements speak only as of the date that this release is issued. We undertake no obligation to update them, except as may be required by applicable law. Although we believe that our forward-looking statements are reasonable, they depend on many factors outside of our control and we can provide no assurance that they will prove to be correct.
Corporate Comms
Investor Relations
Marji Chimes
Paul Miller
marji.chimes@ttec.com
paul.miller@ttec.com
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended
Twelve months ended
December 31,
December 31,
2023
2022
2023
2022
Revenue
$ 626,181
$ 658,278
$2,462,817
$2,443,707
Operating Expenses:
Cost of services
505,814
495,339
1,932,877
1,856,518
Selling, general and administrative
74,744
80,602
290,873
287,433
Depreciation and amortization
24,904
31,730
101,272
111,791
Restructuring charges, net
3,145
1,412
8,041
5,673
Impairment losses
650
450
11,733
13,749
Total operating expenses
609,257
609,533
2,344,796
2,275,164
Income From Operations
16,924
48,745
118,021
168,543
Other income (expense), net
(21,988)
(15,877)
(77,297)
(24,095)
(Loss) / Income Before Income Taxes
(5,064)
32,868
40,724
144,448
Provision for income taxes
(3,142)
(7,318)
(22,460)
(27,115)
Net (Loss) / Income
(8,206)
25,550
18,264
117,333
Net income attributable to noncontrolling interest
(1,694)
(3,197)
(9,836)
(14,093)
Net (Loss) / Income Attributable to TTEC Stockholders
$ (9,900)
$ 22,353
$ 8,428
$ 103,240
Net (Loss) / Income Per Share
Basic
$ (0.17)
$ 0.54
$ 0.39
$ 2.49
Diluted
$ (0.17)
$ 0.54
$ 0.39
$ 2.48
Net (Loss) / Income Per Share Attributable to TTEC Stockholders
Basic
$ (0.21)
$ 0.47
$ 0.18
$ 2.19
Diluted
$ (0.21)
$ 0.47
$ 0.18
$ 2.18
Income From Operations Margin
2.7 %
7.4 %
4.8 %
6.9 %
Net (Loss) / Income Margin
(1.3) %
3.9 %
0.7 %
4.8 %
Net (Loss) / Income Attributable to TTEC Stockholders Margin
(1.6) %
3.4 %
0.3 %
4.2 %
Effective Tax Rate
(62.0) %
22.3 %
55.2 %
18.8 %
Weighted Average Shares Outstanding
Basic
47,425
47,220
47,335
47,121
Diluted
47,503
47,299
47,419
47,335
TTEC HOLDINGS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
Three months ended
Twelve months ended
December 31,
December 31,
2023
2022
2023
2022
Revenue:
TTEC Digital
$ 119,118
$ 121,650
$ 486,882
$ 463,670
TTEC Engage
507,063
536,628
1,975,935
1,980,037
Total
$ 626,181
$ 658,278
$ 2,462,817
$ 2,443,707
Income From Operations:
TTEC Digital
$ 9,982
$ 9,924
$ 29,846
$ 34,895
TTEC Engage
6,942
38,821
88,175
133,648
Total
$ 16,924
$ 48,745
$ 118,021
$ 168,543
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31,
December 31,
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$ 172,747
$ 153,435
Accounts receivable, net
394,868
417,637
Prepaids and other current assets
95,064
133,365
Income and other tax receivables
18,524
45,533
Total current assets
681,203
749,970
Property and equipment, net
191,003
183,360
Operating lease assets
121,574
92,431
Goodwill
808,988
807,845
Other intangibles assets, net
198,433
233,909
Income and other tax receivables, long-term
44,673
–
Other assets
139,724
86,447
Total assets
$ 2,185,598
$ 2,153,962
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$ 96,577
$ 93,937
Accrued employee compensation and benefits
146,184
145,096
Deferred revenue
81,171
87,846
Current operating lease liabilities
38,271
35,271
Other current liabilities
40,824
49,214
Total current liabilities
403,027
411,364
Long-term liabilities:
Line of credit
995,000
960,000
Non-current operating lease liabilities
96,809
69,575
Other long-term liabilities
75,220
79,273
Total long-term liabilities
1,167,029
1,108,848
Redeemable noncontrolling interest
–
55,645
Equity:
Common stock
474
472
Additional paid in capital
407,415
367,673
Treasury stock
(589,807)
(593,164)
Accumulated other comprehensive income (loss)
(89,876)
(126,301)
Retained earnings
870,429
911,233
Noncontrolling interest
16,907
18,192
Total equity
615,542
578,105
Total liabilities and equity
$ 2,185,598
$ 2,153,962
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Twelve months ended
Twelve months ended
December 31,
December 31,
2023
2022
Cash flows from operating activities:
Net income
$ 18,264
$ 117,333
Adjustments to reconcile net income to net cash provided by operating activities :
Depreciation and amortization
101,272
111,791
Amortization of contract acquisition costs
2,288
2,065
Amortization of debt issuance costs
1,067
1,018
Imputed interest expense and fair value adjustments to contingent consideration
7,579
1,746
Provision for credit losses
2,009
9,391
Loss on disposal of assets
2,219
1,916
Loss on dissolution of subsidiary
301
–
Impairment losses
11,733
13,749
Deferred income taxes
(7,528)
(11,001)
Excess tax benefit from equity-based awards
1,705
(1,122)
Equity-based compensation expense
22,071
17,571
Gain on foreign currency derivatives
(3)
(7)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
22,359
(74,564)
Prepaids and other assets
8,570
43,699
Accounts payable and accrued expenses
9,518
(12,695)
Deferred revenue and other liabilities
(58,659)
(83,842)
Net cash provided by operating activities
144,765
137,048
Cash flows from investing activities:
Proceeds from sale of property and equipment
261
229
Purchases of property, plant and equipment
(67,839)
(84,012)
Acquisitions
–
(142,420)
Net cash used in investing activities
(67,578)
(226,203)
Cash flows from financing activities:
Net proceeds from / (repayments of) line of credit
35,000
169,000
Payments on other debt
(2,317)
(3,245)
Payments of contingent consideration and hold back payments to acquisitions
(37,676)
(9,600)
Dividends paid to shareholders
(49,232)
(48,072)
Payments to noncontrolling interest
(10,972)
(11,883)
Tax payments related to the issuance of restricted stock units
(3,037)
(7,164)
Net cash (used in) / provided by financing activities
(68,234)
89,036
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(2,112)
(13,499)
Increase / (decrease) in cash, cash equivalents and restricted cash
6,841
(13,618)
Cash, cash equivalents and restricted cash, beginning of period
167,064
180,682
Cash, cash equivalents and restricted cash, end of period
$ 173,905
$ 167,064
TTEC HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
Three months ended
Twelve months ended
December 31,
December 31,
2023
2022
2023
2022
Revenue
$ 626,181
$ 658,278
$ 2,462,817
$ 2,443,707
Reconciliation of Non-GAAP Income from Operations and EBITDA:
Income from Operations
$ 16,924
$ 48,745
$ 118,021
$ 168,543
Restructuring charges, net
3,145
1,412
8,041
5,673
Impairment losses
650
450
11,733
13,749
Cybersecurity incident related impact, net of insurance recovery
–
(446)
(3,210)
(3,610)
Software accelerated amortization
–
6,382
–
8,509
Write-off of acquisition related receivable
–
–
–
900
Property costs not related to operations
757
–
1,501
–
Liability related to notifications triggered by labor scheme (1)
6,000
–
6,000
–
Grant income for pandemic relief
–
–
40
–
Change in acquisition related obligation
–
–
483
–
Equity-based compensation expenses
5,661
4,331
22,071
17,571
Amortization of purchased intangibles
8,676
9,038
35,759
37,169
Non-GAAP Income from Operations
$ 41,813
$ 69,912
$ 200,439
$ 248,504
Non-GAAP Income from Operations Margin
6.7 %
10.6 %
8.1 %
10.2 %
Depreciation and amortization
15,894
16,310
64,840
66,113
Changes in acquisition contingent consideration
616
(272)
7,480
1,798
Change in escrow balance related to acquisition
–
–
625
–
Loss on dissolution of subsidiary
–
–
301
–
Foreign exchange loss / (gain), net
1,112
1,710
1,950
(6,514)
Other income (expense), net
(1,894)
(1,156)
(4,126)
10,161
Adjusted EBITDA
$ 57,541
$ 86,504
$ 271,509
$ 320,062
Adjusted EBITDA Margin
9.2 %
13.1 %
11.0 %
13.1 %
Reconciliation of Non-GAAP EPS:
Net (Loss) / Income
$ (8,206)
$ 25,550
$ 18,264
$ 117,333
Add: Asset impairment and restructuring charges
3,795
1,862
19,774
19,422
Add: Equity-based compensation expenses
5,661
4,331
22,071
17,571
Add: Amortization of purchased intangibles
8,676
9,038
35,759
37,169
Add: Cybersecurity incident related impact, net of insurance recovery
–
(446)
(3,210)
(3,610)
Add: Software accelerated amortization
–
6,382
–
8,509
Add: Write-off of acquisition related receivable
–
–
–
900
Add: Property costs not related to operations
757
–
1,501
–
Add: Liability related to notifications triggered by labor scheme
6,000
–
6,000
–
Add: Grant income for pandemic relief
–
–
40
–
Add: Change in acquisition related obligation
–
–
483
–
Add: Changes in acquisition contingent consideration
616
(272)
7,480
1,798
Add: Changes in escrow balance related to acquisition
–
–
625
–
Add: Loss on dissolution of subsidiary
–
–
301
–
Add: Foreign exchange loss / (gain), net
1,112
1,710
1,950
(6,514)
Less: Changes in valuation allowance, return to provision adjustments and
other, and tax effects of items separately disclosed above
(885)
(4,909)
(7,859)
(22,872)
Non-GAAP Net Income
$ 17,526
$ 43,246
$ 103,179
$ 169,706
Diluted shares outstanding
47,503
47,299
47,419
47,335
Non-GAAP EPS
$0.37
$0.91
$2.18
$3.59
Reconciliation of Free Cash Flow:
Cash Flow From Operating Activities:
Net (Loss) / Income
$ (8,206)
$ 25,550
$ 18,264
$ 117,333
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
24,904
31,730
101,272
111,791
Other
14,836
(39,045)
25,229
(92,076)
Net cash provided by operating activities
31,534
18,235
144,765
137,048
Less – Total Cash Capital Expenditures
13,117
19,448
67,839
84,012
Free Cash Flow
$ 18,417
$ (1,213)
$ 76,926
$ 53,036
(1) – For further information, please see discussion in the Risk Factors section of the 2023 Form 10-K filed on February 29, 2024.
Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :
TTEC Engage
TTEC Digital
TTEC Engage
TTEC Digital
Q4 23
Q4 22
Q4 23
Q4 22
YTD 23
YTD 22
YTD 23
YTD 22
Income from Operations
$ 6,942
$ 38,821
$ 9,982
$ 9,924
$ 88,175
$ 133,648
$ 29,846
$ 34,895
Restructuring charges, net
1,823
1,130
1,322
282
4,250
5,251
3,791
422
Impairment losses
700
24
(50)
426
8,929
13,112
2,804
637
Cybersecurity incident related impact, net of insurance recovery
–
(446)
–
–
(3,210)
(3,610)
–
–
Software accelerated amortization
–
5,106
–
1,276
–
6,808
–
1,701
Write-off of acquisition related receivable
–
–
–
–
–
–
–
900
Property costs not related to operations
757
–
–
–
1,501
–
–
–
Grant income for pandemic relief
–
–
–
–
40
–
–
–
Change in acquisition related obligation
–
–
–
–
–
–
483
–
Liability related to notifications triggered by labor scheme
6,000
–
–
–
6,000
–
–
–
Equity-based compensation expenses
3,658
2,659
2,003
1,672
14,257
11,476
7,814
6,095
Amortization of purchased intangibles
4,264
4,658
4,412
4,380
18,215
17,272
17,544
19,897
Non-GAAP Income from Operations
$ 24,144
$ 51,952
$ 17,669
$ 17,960
$ 138,157
$ 183,957
$ 62,282
$ 64,547
Depreciation and amortization
13,458
13,667
2,436
2,643
55,153
54,561
9,687
11,552
Changes in acquisition contingent consideration
616
(272)
–
–
7,480
1,798
–
–
Change in escrow balance related to acquisition
–
–
–
–
625
–
–
–
Loss on dissolution of subsidiary
–
–
–
–
301
–
–
–
Foreign exchange loss / (gain), net
1,271
1,606
(159)
104
2,085
(5,540)
(135)
(974)
Other income (expense), net
(1,728)
(1,063)
(166)
(93)
(4,060)
9,352
(66)
809
Adjusted EBITDA
$ 37,761
$ 65,890
$ 19,780
$ 20,614
$ 199,741
$ 244,128
$ 71,768
$ 75,934
View original content to download multimedia:https://www.prnewswire.com/news-releases/ttec-announces-fourth-quarter-and-full-year-2023-financial-results-302076311.html
SOURCE TTEC Holdings, Inc.
You may like
Technology
Global Times: Head-of-state diplomacy shines at WAIC, fostering ties and advancing global governance consensus
Published
1 hour agoon
July 18, 2026By
BEIJING, July 17, 2026 /PRNewswire/ — Chinese President Xi Jinping on Friday held a series of high-level meetings on the sidelines of the 2026 World Artificial Intelligence Conference (WAIC) and High-Level Meeting on Global AI Governance in Shanghai, sitting down successively with Thai Prime Minister Anutin Charnvirakul, Cambodian Prime Minister Hun Manet, and UN Secretary-General António Guterres. The bustling diplomatic activity transformed the WAIC from a premier showcase of AI technologies and industrial breakthroughs into a vibrant platform for head-of-state diplomacy and global governance coordination.
Analysts said hosting intensive head-of-state diplomatic events in Shanghai, a core hub of reform, opening-up and technological innovation, carries profound meaning. In addition, Friday’s high-level meetings embody the innovative model of “technology builds the stage while diplomacy takes the leading role.” It not only deepens China’s bilateral relations with ASEAN members, but also helps advance inclusive global AI governance centered on the UN mechanism.
Strategic guidance
According to the two separate official releases by Xinhua, during his meetings with the prime ministers of Thailand and Cambodia, President Xi spoke of the long-standing friendship China shares with both nations. He called on China and Thailand, as well as China and Cambodia, to join hands to advance the development of their respective communities with a shared future.
Furthermore, the Chinese leader stressed the need for China to expand pragmatic cooperation with Thailand and Cambodia respectively across traditional and emerging sectors, and work with each country to jointly crack down on cross-border crimes such as online gambling and telecom fraud, according to Xinhua.
He called for the proper handling of border frictions between Thailand and Cambodia and called on the two sides to resolve disputes through dialogue and consultation, with China standing ready to continue playing a constructive role in this regard, per Xinhua.
During their respective meetings with the Chinese leader, the prime ministers of Thailand and Cambodia both expressed willingness to deepen multi-field cooperation with China and spoke highly of China’s positive efforts to facilitate the peaceful settlement of the Thailand-Cambodia border conflicts.
Xu Liping, Director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, told the Global Times that head-of-state diplomacy has charted the fundamental course for the advancement of China’s ties with both Cambodia and Thailand.
WAIC exemplifies the innovative model of “technology builds the platform, while diplomacy takes the leading role,” said Xu, “In addition, AI cooperation is also expected to serve as a vital entry point to further deepen and substantiate China’s ties with Thailand and Cambodia going forward.”
Furthermore, addressing the sensitive and thorny Thailand-Cambodia border dispute amid the relatively relaxed atmosphere of a tech summit enables all relevant parties to handle differences in a rational and pragmatic manner, which embodies Eastern wisdom and an Asian approach to resolving issues, said Xu.
The year 2026 marks the fifth anniversary of the establishment of the China-ASEAN comprehensive strategic partnership, witnessing the official rollout of the new Plan of Action on the China-ASEAN Comprehensive Strategic Partnership (2026-2030). It also kicks off the implementation of China’s 15th Five-Year Plan.
The critical juncture offers a perfect window to align China’s development plans closely with the national development strategies of Global South countries and ASEAN members, said Xu. “Thailand and Cambodia’s willingness to ramp up cooperation with China mirrors the aspiration of the majority of ASEAN members to leverage China’s development dividends and pursue win-win outcomes and common prosperity in the region.”
Firm support for UN
In his meeting with UN Secretary-General Antonio Guterres on Friday, Xi reiterated China’s firm support for the UN.
Noting that this year marks the 55th anniversary of the restoration of the lawful seat of the People’s Republic of China at the UN, the Chinese leader said China has since been committed to building world peace, contributing to global development, defending international order, and firmly supporting the UN, Xinhua reported.
Xi added that he proposed the vision of building a community with a shared future for humanity and the four global initiatives with one important consideration in mind – to uphold the status and authority of the UN.
Currently, the international landscape is marked by more pronounced changes and turbulence, making it all the more necessary to practice true multilateralism and reinvigorate the status and role of the UN, he said.
Guterres commended China for its steadfast support for multilateralism, the cause of the UN, and international cooperation, saying that China has set an example for the world.
Guterres said the UN will continue to strengthen cooperation with China, oppose unilateralism, protectionism, and hegemonic bullying, safeguard the UN Charter and international law, as well as advance the process toward a multipolar world.
At this pivotal juncture where talks on AI development and UN multilateral governance converge, China, leveraging head-of-state diplomacy as a top-tier platform, has elaborated in a systematic manner its vision for global governance in the AI era, Wang Yiwei, a professor at the School of International Studies, Renmin University of China, told the Global Times.
He added that China’s emphasis on the UN-centered global governance architecture will further strengthen the UN’s authority and operational capacity.
Before the official opening of the WAIC, on Thursday, representatives from 29 countries, including Kazakhstan, Laos, Pakistan, Russia and Indonesia, signed an agreement on establishing the World Artificial Intelligence Cooperation Organization (WAICO) in Shanghai. UN chief Guterres was among representatives from countries and international organizations present at the signing ceremony.
According to the agreement, WAICO will be an independent intergovernmental international organization, which aims to promote international cooperation and global governance on AI, ensuring that AI is beneficial, safe and fair, thereby promoting its healthy and orderly development to benefit all humanity.
President Xi on Friday also announced that in the next five years, China will provide developing countries with 5,000 opportunities in AI training and seminar programs. China will also develop international AI application cooperation centers with the ASEAN, the League of Arab States, the African Union, the Community of Latin American and Caribbean States, the Shanghai Cooperation Organization, and BRICS.
However, some international media, including Reuters and Nikkei, used the term “AI diplomacy” describing the grand gathering in Shanghai, claiming that Beijing seeks a new global AI order, challenging US dominance.
In rebuttal, Wang pointed out that China advocates open, inclusive technology that lets AI benefit all humanity under the vision of “AI for All”. In contrast, the US adheres to a mindset of “All for AI”, weaponizing AI for geopolitical rivalry and aiming to outpace China in technological competition. Driven by the “America First” doctrine and capital-centric priorities, Washington’s approach forms a sharp contrast with China’s.
Meanwhile, China’s resolute commitment to upholding the UN system underscores that for China and a wide array of Global South countries, the sensible path lies in reforming and improving the existing global governance architecture rather than discarding it to build parallel institutions from scratch, the expert added.
This article first appeared on Global Times
View original content:https://www.prnewswire.com/news-releases/global-times-head-of-state-diplomacy-shines-at-waic-fostering-ties-and-advancing-global-governance-consensus-302828946.html
SOURCE Global Times
Technology
Global Times: China sends fresh signal on global AI cooperation at WAIC
Published
1 hour agoon
July 18, 2026By
BEIJING, July 17, 2026 /PRNewswire/ — “AI development should not be a solo performance by a single country, but a symphony of international cooperation,” Chinese President Xi Jinping said on Friday while addressing the opening ceremony of the 2026 World AI Conference (WAIC) and High-Level Meeting on Global AI Governance, stressing that China is ready to be more open, take more practical actions, and assume a more visionary perspective.
We are ready to work with all parties to seize the opportunities of AI development and meet the challenges, and join hands to create a brighter future for humanity, he added.
Xi’s remarks received positive responses from domestic and foreign enterprises and experts, as they spoke highly of China’s scientific and technological achievements in recent years while noting that China’s commitment to openness and cooperation can help ensure that the benefits of AI are shared by all humanity and Chinese solutions in AI governance enable other countries to better tackle the common challenges brought about by AI development.
Openness and win-win cooperation
Xi presented four observations on AI development and governance in the speech. The Chinese leader called for adhering to the principle of openness and win-win cooperation while boosting innovation-driven development. He highlighted the importance of encouraging open-source, openness, collaboration and sharing to facilitate technological innovation, industrial development and scenario-based application of AI.
He also called for strengthening risk-awareness and ensuring that AI is secure and controllable. Stressing the need to ensure that AI is always under human control, Xi urged all sides to jointly oppose overstretching the national security concept in the field of AI or placing one country’s security over that of others.
Third, he called for encouraging inclusiveness and promoting mutual learning among civilizations.
Fourth, he called for advocating solidarity and improving global governance. The important role of the United Nations should be recognized, Xi said, calling for further alignment and coordination on AI development strategies, governance rules and technical standards.
“We must carry out extensive international cooperation and help Global South countries with capacity building to bridge the AI and digital divides, promote sustainable development and prevent creating new historical injustice in AI,” he said.
In the next five years, China will provide developing countries with 5,000 opportunities in AI training and seminar programs, Xi said. He said China will develop international AI application cooperation centers with the Association of Southeast Asian Nations, the League of Arab States, the African Union, the Community of Latin American and Caribbean States, the Shanghai Cooperation Organization, and BRICS. China will enable 30 countries to use the AI-powered meteorological warning system, or MAZU, to safeguard homes around the world.
“President Xi’s remarks underscore China’s commitment to advancing global AI governance and technological innovation through opening-up and win-win cooperation, bringing new opportunities for sharing AI dividends and achieving shared prosperity to countries worldwide, especially developing countries,” Song Yang, professor of School of Economics and research fellow at the National Academy of Development and Strategy at Renmin University of China, told the Global Times on Friday.
China is sending a clear and important message: AI should become a bridge between countries, not a new dividing line, Luigi Gambardella, president of the Brussels-based international digital association ChinaEU, told the Global Times on Friday on the sidelines of the forum.
“No country, however technologically advanced, can develop and govern AI alone. China’s commitment to openness and cooperation can help ensure that the benefits of AI are shared by all humanity. It can help prevent the fragmentation of technologies, standards and markets, while ensuring that the opportunities created by AI are shared more widely,” Gambardella said.
“President Xi proposed ‘adhering to the principle of openness and win-win cooperation’ and ‘advocating solidarity’, and announced a series of pragmatic measures to support global AI development. These remarks have deeply inspired me and further strengthened my confidence in promoting the inclusive development of AI through opening-up and cooperation,” Xu Li, chairman and CEO of Shanghai-based AI software company SenseTime, told the Global Times on Friday.
Looking ahead, SenseTime aims to bring more field-tested technologies, products, and talent cultivation expertise to more countries and regions, and boost “China innovation” to deliver sustained value across a wider spectrum of industrial scenarios, thereby enabling AI to better benefit all of humanity, Xu said.
China actively supports strengthening global cooperation on AI governance, advocates multilateralism, and promotes the establishment of a global governance framework, which has received positive responses from many Global South countries.
Twenty-nine countries on Thursday signed an agreement in Shanghai on establishing the World Artificial Intelligence Cooperation Organization (WAICO). As an independent intergovernmental international organization headquartered in Shanghai, WAICO will uphold the purposes of the UN Charter, be committed to extensive consultation and joint contribution for shared benefit and adhere to a people-centered approach, according to the agreement, per Xinhua.
Global spotlight on WAIC
Since its inception in 2018, the WAIC has successfully convened for eight consecutive editions, becoming an important window for showcasing cutting-edge AI technologies from China and around the world while deepening international opening-up and cooperation.
Themed “AI Partnership for a Brighter Future”, the exhibition area exceeds 100,000 square meters for the first time this year, attracting the participation of over 1,100 enterprises. The exhibitors are showcasing more than 3,000 products and technologies, with over 300 products making their global debuts.
Among the exhibition highlights are Huawei’s latest AI computing super node system Atlas 950, MiniMax M3 multimodal foundation model, and the world’s first agentic AI phone, alongside a range of humanoid robots and AI-powered dexterous hands.
A German BMW representative, who attended WAIC for the first time, expressed enthusiasm about the event, highlighting the humanoid robotics showcased in the exhibition area – technologies he said he has never encountered before.
The representative told the Global Times that his company has adopted Chinese AI-powered large language models such as Qwen and DeepSeek. “The new updated versions of these models emerge weekly, which is very impressive,” the representative said, speaking highly of the cost efficiency of Chinese models.
However, some Western media outlets keep smearing China’s AI advancements and international cooperation. The Economist even claims that China’s open-source AI is a “trap” and that embracing China is “risky.”
Debunking this groundless smearing, Song said that China’s AI development has consistently adhered to the philosophy of a people-centered approach and AI for good, accumulating a wealth of vivid, replicable, and scalable experiences.
At the opening ceremony of the WAIC, the China Meteorological Administration unveiled the MAZU-FengYun Satellite AI Box. The launch marks a new stage in MAZU’s intelligent early-warning initiative, which was unveiled last year, shifting from providing shared meteorological products to delivering AI-enabled forecasting capabilities, according to the administration.
“Over the past year, meteorological and disaster reduction agencies from more than 40 countries have accessed the MAZU early warning technologies and products via cloud platforms. Customized versions of the tool have been deployed in Nigeria, Djibouti, Pakistan, and other nations, earning widespread recognition from users,” You Yang, a staff member with the Shanghai Meteorological Bureau, told the Global Times on Friday.
“From base models to industry-specific applications, China is opening up its low-cost, replicable technological pathways to the world, thereby lowering the threshold for underdeveloped nations to enter the AI era. Meanwhile, China actively helps developing countries address gaps in technology, talent, and governance capabilities to bridge the digital divide in the age of intelligence,” Song said.
According to a March report from Hugging Face, one of the world’s largest AI open-source communities, China has surpassed the US in monthly downloads and overall downloads. In the past year, Chinese models quickly accounted for the plurality or 41 percent of downloads.
“China possesses three unique institutional advantages in promoting AI for good and inclusive development: First, the new system for nationwide mobilization of resources coordinates development and security, achieving synergistic progress in key technological breakthroughs and rule-making. Second, a people-centered approach ensures that technological advancement benefits the people. Third, a multi-stakeholder agile and collaborative governance model links governments, universities, research institutions, enterprises, and social organizations to explore the synergy between rules and technology, providing China’s experience to the world,” Zeng Yi, a member of the UN Advisory Body on AI, told the Global Times on Friday.
View original content:https://www.prnewswire.com/news-releases/global-times-china-sends-fresh-signal-on-global-ai-cooperation-at-waic-302828951.html
SOURCE Global Times
BOGOTA, Colombia, July 17, 2026 /PRNewswire/ — Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) (the “Company”) announced that it has identified an unauthorized access to certain digital resources owned by the Company and its subsidiaries by an external actor who has not been identified, as well as an attempted ransomware attack that was blocked by the cybersecurity controls implemented across the Company and its subsidiaries. The unauthorized access affected cloud-based file storage environments of approximately 15 subsidiaries (including the Company), resulting in the unauthorized download of data associated with approximately 3,300 user accounts. The external actor communicated extortion demands, threatening to publicly disclose the information that had been unlawfully extracted.
In response to this incident, the Company initiated an investigation and activated its incident response and management protocols. In addition, the Company deployed the following measures aimed at preventing the public disclosure of the unlawfully extracted information, addressing supervisory actions and/or potential financial costs associated with investigation, remediation, and regulatory compliance, as follows:
a. Immediate revocation of unauthorized access to the compromised digital assets.
b. Blocking of mechanisms associated with the mass download of information.
c. Identification, analysis, and containment of the tactics, techniques, and procedures (TTPs) used by the malicious actor.
d. Filing of a criminal complaint before the Office of the Attorney General of Colombia and deployment of cooperation activities with specialized national authorities.
e. Identification of external infrastructures used for the storage or download of information to pursue restriction or blocking actions.
f. Activation of support mechanisms with insurers and specialized capital markets teams to ensure the proper management of the event.
g. Detailed assessment of the downloaded information and determination of its criticality.
h. Enhanced monitoring of the technology infrastructure under critical alert protocols and continuous validation of preventive and detective controls.
As of the date of this report, the Company has not identified any material disruption to its critical operations, production capacity, or essential services; any direct financial impact that would prevent it from continuing to conduct its business activities; or any disclosure of the information subject to the unauthorized access. However, the Company continues to assess the potential exposure of corporate information, which could include confidential, restricted, proprietary, or personal data, as it cannot guarantee that this incident will not have a material adverse effect on the Company’s business, reputation, operating results, or financial condition.
Ecopetrol S.A. will continue to monitor developments related to this matter and, should any material facts or information requiring disclosure to the market be identified, will promptly disclose such information in accordance with applicable laws and regulations.
Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA’s shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla – Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector.
This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company’s prospects for growth and its ongoing access to capital to fund the Company’s business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company’s competitiveness and the performance of Colombia’s economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements.
For more information, please contact:
Investor Relations Office
Email: investors@ecopetrol.com.co
Head of Corporate Communications (Colombia)
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co
View original content to download multimedia:https://www.prnewswire.com/news-releases/ecopetrol-reports-cybersecurity-incident-302828952.html
SOURCE Ecopetrol S.A.
Global Times: Head-of-state diplomacy shines at WAIC, fostering ties and advancing global governance consensus
Global Times: China sends fresh signal on global AI cooperation at WAIC
Ecopetrol Reports Cybersecurity Incident
Send Rakhi to UK swiftly with UK Gifts Portal
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
New Gooseneck Omni Antennas Offer Enhanced Signals in a Durable Package
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Technology5 days agoChina’s Hit Variety Show “Wonderland Season Ⅵ” Is Currently Airing – How Does This Long-Running Franchise Win the Battle for Critical Acclaim?
-
Coin Market2 days agoRevolut receives in-principle approval from UAE authorities for crypto services
-
Technology5 days agoTomocube Launches HT-T1 Desktop for 3D Glass Substrate Defect Analysis in Advanced Packaging
-
Near Videos4 days agoConfidential Intents is now generally available
-
Technology5 days agoShare buybacks in Ericsson during the period July 6 – July 10, 2026
-
Technology2 days agoGPU.ai Named Official Title Sponsor of AGI Summit SF 2026
-
Technology3 days agoInventHelp Inventor Develops Improved Food Delivery Bag (LBT-9719)
-
Coin Market2 days agoOstium pauses trading as security firms report multimillion-dollar oracle exploit
