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TTEC Announces Third Quarter 2024 Financial Results

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Third Quarter 2024

Revenue was $529.4 Million, down 12.2 Percent
Operating Income of $12.9 Million or 2.4 Percent of Revenue
(Operating Income of $34.1 Million or 6.4 Percent of Revenue Non-GAAP)
Net Loss of $19.0 Million or negative 3.6 Percent of Revenue
(Net Income of $5.4 Million or 1.0 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $50.3 Million or 9.5 Percent of Revenue
Fully Diluted Net Loss Per Share of $0.40 (Net Income Per Share of $0.11 Non-GAAP)

DENVER, Nov. 6, 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 third quarter ended September 30, 2024.

“We remain focused on executing our diversification strategies, enhancing our portfolio of AI-enabled CX solutions and our operational agility, while working to strengthen our financial performance,” commented Ken Tuchman, chief executive officer of TTEC. “The industry dynamics and macroeconomic environment continue to create headwinds as select clients delay decision-making and/or focus on near-term cost savings.”

“While taking more time than expected, we are prudently working through various challenges during this transitional year. We are executing against our top strategic priorities alongside taking the necessary profit improvement actions to strengthen our balance sheet and return the company to long-term revenue growth and increased profitability,” Tuchman concluded.

THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS           

Revenue        

Third quarter 2024 GAAP revenue decreased 12.2 percent to $529.4 million compared to $603.0 million in the prior year.Foreign exchange had a $0.5 million negative impact on revenue in the third quarter of 2024.

Income (Loss) from Operations

Third quarter 2024 GAAP income from operations was $12.9 million, or 2.4 percent of revenue, compared to income from operations of $25.4 million, or 4.2 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 $34.1 million, or 6.4 percent of revenue, compared to $47.3 million, or 7.8 percent, for the prior year.Foreign exchange had a $2.6 million positive impact on Non-GAAP income from operations in the third quarter of 2024.

Adjusted EBITDA     

Third quarter 2024 Non-GAAP Adjusted EBITDA was $50.3 million, or 9.5 percent of revenue, compared to $63.9 million, or 10.6 percent of revenue, in the prior year.

Net Income (Loss)

Third quarter 2024 GAAP net loss was $19.0 million, or negative 3.6 percent of revenue, compared to net income of $1.8 million, or 0.3 percent of revenue, in the prior year.Non-GAAP net income was $5.4 million, or 1.0 percent of revenue, compared to Non-GAAP net income of $22.9 million, or 3.8 percent of revenue, in the prior year.

Net Income (Loss) Per Share

Third quarter 2024 GAAP fully diluted net loss per share was $0.40 compared to net income per share of $0.04 in the prior year.Non-GAAP fully diluted net income per share was $0.11 compared to Non-GAAP net income per share of $0.48 in the prior year.

CASH FLOW AND BALANCE SHEET 

Cash flow from operations in the third quarter of 2024 was a negative $91.4 million compared to a negative $31.7 million for the third quarter of 2023.Free cash flow in the third quarter of 2024 was a negative $100.2 million compared to a negative $53.5 million in the prior year. The decline was primarily related to the impact of the accounts receivable factoring facility discontinuation in the quarter. This discontinuation negatively impacted our cash flow from operations by $81.8 million for the three months ended September 30, 2024 and $101.2 million for the nine months ended September 30, 2024. Excluding the factoring facility impact, free cash flow in the third quarter of 2024 was negative $18.4 million. The year-over-year improvement reflects improved working capital conversion and lower capital expenditures, partially offset by lower profitability.Capital expenditures in the third quarter of 2024 were $8.8 million compared to $21.8 million for the third quarter of 2023.As of September 30, 2024, TTEC had cash and cash equivalents of $96.9 million and debt of $1,028.4 million, resulting in a net debt position of $931.5 million. This compares to a net debt position of $815.7 million for the same period in 2023. The increase in net debt is also primarily explained by the discontinuation of the accounts receivable factoring facility.As of September 30, 2024, TTEC’s remaining borrowing capacity under its revolving credit facility was approximately $140 million compared to $215 million for the same period in 2023.On November 4, 2024, the Board of Directors of the Company suspended the Company’s semi-annual cash dividend as part of its ongoing shift to prioritize debt reduction associated with strategic acquisitions and other investments in the business. The Board expects to review the dividend suspension in the future to determine, in light of facts and circumstances at that time, whether and when to reinstate a semi-annual cash dividend.

SALE OF MATERIAL ASSET NOT USED IN OPERATIONS

On November 5, 2024, the Company closed the transaction of a real estate asset held for sale in Englewood, Colorado for $45.5 million dollars, subject to customary adjustments. Prior to the COVID pandemic, the building was used as the Company’s principal place of business. The Company intends to use the proceeds from the sale to reduce its outstanding balance under the revolving line of credit.

SEGMENT REPORTING & COMMENTARY

TTEC reports financial results for TTEC Digital and TTEC Engage business segments. Financial highlights for the two business segments are provided below.

TTEC Digital – Design, build and operate tech-enabled, insight-driven CX solutions

Third quarter 2024 GAAP revenue for TTEC Digital decreased 13.2 percent to $115.7 million from $133.3 million for the year ago period. Income from operations was $7.5 million, or 6.5 percent of revenue, compared to income from operations of $11.9 million, or 8.9 percent of revenue, in the prior year. The year-over-year reduction primarily relates to a large one-time on-premise sale in the prior year period. Excluding on-premise sales, TTEC Digital’s professional services and recurring revenue together increased by 5.9 percent year over year in the third quarter. Non-GAAP income from operations was $14.4 million, or 12.5 percent of revenue, compared to Non-GAAP income from operations of $19.4 million, or 14.5 percent of revenue, in the prior year.

TTEC Engage – Digitally-enabled customer care, acquisition, and fraud mitigation services

Third quarter 2024 GAAP revenue for TTEC Engage decreased 11.9 percent to $413.8 million from $469.7 million for the year ago period. Income from operations was $5.4 million, or 1.3 percent of revenue, compared to income from operations of $13.5 million, or 2.9 percent of revenue, in the prior year.Non-GAAP income from operations was $19.7 million, or 4.8 percent of revenue, compared to Non-GAAP income from operations of $27.9 million, or 5.9 percent of revenue, in the prior year.Foreign exchange had a $0.6 million negative impact on revenue and a $2.6 million positive impact on income from operations.

BUSINESS OUTLOOK

“We are achieving many of the key objectives that we set forth during this transitional year,” commented Kenny Wagers, chief financial officer of TTEC. “In TTEC Digital, we are diversifying our CX technology partnerships and broadening our expertise and capabilities across Contact Center, CRM, AI and analytics solutions. In TTEC Engage, we are launching new client programs across our expanded geographic footprint, working through the previously mentioned headwinds, and executing upon our profit optimization initiatives. 

Wagers continued, “At the company level, we are re-iterating full year 2024 guidance near the lower end of the range that we provided last quarter. At the segment level, the appropriate contribution adjustments were made to reflect our third-quarter actual results and updated fourth-quarter forecasts. As we prepare to transition into 2025, we remain focused on our strategic priorities and resolute in our ability to return TTEC to long-term organic growth and increased profitability.”

TTEC Full Year 2024 Outlook

Full Year 2024
Guidance

Full Year 2024
Mid-Point

Revenue

$2,210M — $2,260M

$2,235M

Non-GAAP adjusted EBITDA

$201M — $217M

$209M

Non-GAAP adjusted EBITDA margins

9.1% — 9.6%

9.3 %

Non-GAAP operating income

$134M — $150M

$142M

Non-GAAP operating income margins

6.1% — 6.6%

6.3 %

Interest expense, net

($82M) — ($84M)

($83M)

Non-GAAP adjusted tax rate

40% — 46%

43 %

Diluted share count

47.6M — 47.8M

47.7M

Non-GAAP earnings per a share

$0.64 — $0.83

$0.73

Engage Full Year 2024 Outlook

Full Year 2024
Guidance

Full Year 2024
Mid-Point

Revenue

$1,737M — $1,767M

$1,752M

Non-GAAP adjusted EBITDA

$137M — $147M

$142M

Non-GAAP adjusted EBITDA margins

7.9% — 8.3%

8.1 %

Non-GAAP operating income

$81M — $91M

$86M

Non-GAAP operating income margins

4.7% — 5.2%

4.9 %

Digital Full Year 2024 Outlook

Full Year 2024
Guidance

Full Year 2024
Mid-Point

Revenue

$473M — $493M

$483M

Non-GAAP adjusted EBITDA

$63M — $69M

$66M

Non-GAAP adjusted EBITDA margins

13.4% — 14.1%

13.8 %

Non-GAAP operating income

$52M — $58M

$55M

Non-GAAP operating income margins

11.1% — 11.8%

11.5 %

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, Non-GAAP adjusted tax rate, 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.

EARNINGS WEBCAST/CONFERENCE CALL

The Company will host a live webcast and conference call at 8:30 a.m. ET on Thursday, November 7, 2024. You are invited to join a live webcast of the conference call by visiting the “Investors Relations” section of the TTEC website at www.ttec.com. If you are unable to participate during the live webcast, a replay will be available on the TTEC website.

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 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 and related oral statements contain “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 operations, reiteration of the Company’s full year 2024 guidance near the lower end of the ranges provided in the third quarter of 2024, effective tax rate, cash flow, leverage, liquidity, business strategy, profit improvement actions, increased profitability, competitive position, strategic priorities, organic growth, 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, operational and financial 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,” “reiterate,” “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 could affect our business and may cause such differences as noted above and 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 or furnishings 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 or the timing thereof.”

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(unaudited)

Three months ended

Nine months ended

September 30,

September 30,

2024

2023

2024

2023

Revenue

$  529,427

$  602,956

$ 1,640,150

$ 1,836,636

Operating Expenses:

Cost of services

415,226

479,699

1,286,934

1,427,063

Selling, general and administrative

71,580

66,781

219,881

216,129

Depreciation and amortization

24,042

25,595

74,258

76,368

Restructuring charges, net

1,002

1,369

6,346

4,896

Impairment losses

4,688

4,124

241,544

11,083

         Total operating expenses

516,538

577,568

1,828,963

1,735,539

(Loss) / Income From Operations

12,889

25,388

(188,813)

101,097

Other income (expense), net

(22,462)

(18,298)

(60,573)

(55,309)

(Loss) / Income Before Income Taxes

(9,573)

7,090

(249,386)

45,788

Provision for income taxes

(9,395)

(5,294)

(65,850)

(19,318)

Net (Loss) / Income

(18,968)

1,796

(315,236)

26,470

Net (loss) / income attributable to noncontrolling interest

(2,154)

(3,326)

(7,730)

(8,142)

Net (Loss) / Income Attributable to TTEC Stockholders

$  (21,122)

$    (1,530)

$  (322,966)

$      18,328

Net (Loss) / Income Per Share

Basic

$      (0.40)

$       0.04

$        (6.63)

$         0.56

Diluted

$      (0.40)

$       0.04

$        (6.62)

$         0.56

Net (Loss) / Income Per Share Attributable to TTEC Stockholders

Basic

$      (0.44)

$      (0.03)

$        (6.79)

$         0.39

Diluted

$      (0.44)

$      (0.03)

$        (6.78)

$         0.39

 (Loss) / Income From Operations Margin

2.4 %

4.2 %

(11.5) %

5.5 %

Net (Loss) /  Income Margin

(3.6) %

0.3 %

(19.2) %

1.4 %

Net (Loss) / Income Attributable to TTEC Stockholders Margin

(4.0) %

(0.3) %

(19.7) %

1.0 %

Effective Tax Rate

(98.1) %

74.7 %

(26.4) %

42.2 %

Weighted Average Shares Outstanding

  Basic

47,723

47,415

47,573

47,305

  Diluted

47,860

47,488

47,618

47,417

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(In thousands)

(unaudited)

Three months ended

Nine months ended

September 30,

September 30,

2024

2023

2024

2023

Revenue:

TTEC Digital

$     115,669

$      133,252

$     344,068

$    367,764

TTEC Engage

413,758

469,704

1,296,082

1,468,872

Total

$     529,427

$      602,956

$  1,640,150

$ 1,836,636

(Loss) / Income From Operations

TTEC Digital

$         7,474

$       11,925

$      16,770

$     19,864

TTEC Engage

5,415

13,463

(205,583)

81,233

Total

$       12,889

$       25,388

$   (188,813)

$    101,097

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

September 30,

December 31,

2024

2023

ASSETS

Current assets:

   Cash and cash equivalents

$           96,929

$       172,747

   Accounts receivable, net

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

Property 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

Other intangibles assets, net

173,227

198,433

Income and other tax receivables, long-term

34,469

44,673

Other assets

114,171

139,724

Total assets

$      1,826,290

$     2,185,598

LIABILITIES AND EQUITY

Current liabilities:

   Accounts payable

$           82,259

$         96,577

   Accrued employee compensation and benefits

121,255

146,184

   Deferred revenue

70,834

81,171

   Current operating lease liabilities

35,217

38,271

   Other current liabilities

29,085

40,824

      Total current liabilities

338,650

403,027

Long-term liabilities:

   Line of credit

1,025,000

995,000

   Non-current operating lease liabilities

79,909

96,809

   Other long-term liabilities

87,597

75,220

      Total long-term liabilities

1,192,506

1,167,029

Equity:

   Common stock

477

474

   Additional paid-in capital

416,813

407,415

   Treasury stock

(584,904)

(589,807)

   Accumulated other comprehensive income (loss)

(99,697)

(89,876)

   Retained earnings

544,616

870,429

   Non-controlling interest

17,829

16,907

      Total equity

295,134

615,542

Total liabilities and equity

$      1,826,290

$     2,185,598

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

 Nine Months Ended 

 Nine Months Ended 

 September 30, 

 September 30, 

2024

2023

Cash flows from operating activities:

     Net (loss) income 

$                    (315,236)

$                        26,470

     Adjustment to reconcile net (loss) income to net cash provided by operating activities :

          Depreciation and amortization

74,258

76,368

          Amortization of contract acquisition costs

1,363

1,596

          Amortization of debt issuance costs

1,578

801

          Imputed interest expense and fair value adjustments to contingent consideration

(1,496)

6,864

          Provision for credit losses

2,744

1,677

          Loss on disposal of assets

1,778

1,176

          Impairment losses

241,544

11,083

          Loss on dissolution of subsidiary

–

301

          Deferred income taxes

38,922

(12,288)

          Excess tax benefit from equity-based awards

3,921

1,807

          Equity-based compensation expense

15,249

16,410

          Loss / (gain) on foreign currency derivatives

244

552

          Changes in assets and liabilities, net of acquisitions:

                Accounts receivable 

(37,497)

34,995

                Prepaids and other assets 

(12,959)

(1,620)

                Accounts payable and accrued expenses 

(49,122)

(8,453)

                Deferred revenue and other liabilities 

(23,023)

(44,508)

                    Net cash provided by operating activities

(57,732)

113,231

Cash flows from investing activities:

     Proceeds from sale of property, plant and equipment

146

246

     Purchases of property, plant and equipment

(36,465)

(54,722)

          Net cash used in investing activities

(36,319)

(54,476)

Cash flows from financing activities:

     Net proceeds from / (repayments of) line of credit

30,000

4,000

     Payments on other debt

(1,873)

(1,929)

     Payments of contingent consideration and hold back payments to acquisitions

(37,676)

     Dividends paid to shareholders

(2,847)

(24,572)

     Payments to non-controlling interest

(6,908)

(8,407)

     Tax payments related to the issuance of restricted stock units

(945)

(2,938)

     Payments of debt issuance costs

(2,635)

–

          Net cash used in financing activities

14,792

(71,522)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

2,283

3,889

(Decrease) in cash, cash equivalents and restricted cash

(76,976)

(8,878)

Cash, cash equivalents and restricted cash, beginning of period

173,905

167,064

Cash, cash equivalents and restricted cash, end of period

$                       96,929

$                      158,186

 

TTEC HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

(In thousands, except per share data)

(unaudited)

Three months ended

Nine months ended

September 30,

September 30,

2024

2023

2024

2023

Revenue

$   529,427

$  602,956

$    1,640,150

$      1,836,636

Reconciliation of Non-GAAP Income from Operations and EBITDA:

Net (Loss) / Income from Operations

$     12,889

$    25,388

$     (188,813)

$         101,097

Restructuring charges, net

1,002

1,369

6,346

4,896

Impairment losses

4,688

4,124

241,544

11,083

Cybersecurity incident related impact, net of insurance recovery

–

–

–

(3,210)

Grant income for pandemic relief

–

–

–

40

Property costs not related to operations

424

744

2,329

744

Change in acquisition related obligation

–

–

–

483

Liability related to notifications triggered by labor scheme   (1)

2,563

–

(187)

–

Equity-based compensation expenses

4,333

6,608

15,249

16,410

Amortization of purchased intangibles 

8,169

9,073

25,053

27,083

         Non-GAAP Income from Operations

$     34,068

$    47,306

$       101,521

$         158,626

         Non-GAAP Income from Operations Margin

6.4 %

7.8 %

6.2 %

8.6 %

Depreciation and amortization

15,873

16,183

48,152

48,946

Changes in acquisition contingent consideration

(449)

102

(1,496)

6,864

Change in escrow balance related to acquisition

–

–

–

625

Loss on dissolution of subsidiary

–

–

–

301

Foreign SS Tax Recovery

–

–

(853)

–

Foreign VAT receivable write-off

–

–

770

–

Foreign exchange loss / (gain), net

1,825

(373)

2,381

839

Other Income (expense), net

(1,041)

687

953

(2,232)

         Adjusted EBITDA

$     50,276

$    63,905

$       151,428

$         213,969

         Adjusted EBITDA Margin

9.5 %

10.6 %

9.2 %

11.7 %

Reconciliation of Non-GAAP EPS:

Net (Loss) Income

$    (18,968)

$      1,796

$     (315,236)

$          26,470

Add:  Asset impairment and restructuring charges

5,690

5,493

247,890

15,979

Add:  Equity-based compensation expenses

4,333

6,608

15,249

16,410

Add:  Amortization of purchased intangibles

8,169

9,073

25,053

27,083

Add:  Cybersecurity incident related impact, net of insurance recovery

–

–

–

(3,210)

Add:  Grant income for pandemic relief

–

–

–

40

Add:  Change in acquisition related obligation

–

–

–

483

Add:  Property costs not related to operations

424

744

2,329

744

Add:  Liability related to notifications triggered by labor scheme

2,563

–

(187)

–

Add:  Foreign SS Tax Recovery

–

–

(853)

–

Add:  Foreign VAT receivable write-off

–

–

770

–

Add:  Changes in acquisition contingent consideration

(449)

102

(1,496)

6,864

Add:  Changes in escrow balance related to acquisition

–

–

–

625

Add:  Loss on dissolution of subsidiary

–

–

–

301

Add:  Foreign exchange loss / (gain), net

1,825

(373)

2,381

839

Less:  Changes in valuation allowance, return to provision adjustments and
other, and tax effects of items separately disclosed above

1,810

(590)

48,752

(6,974)

         Non-GAAP Net Income

$       5,397

$    22,853

$         24,652

$          85,654

             Diluted shares outstanding

47,860

47,488

47,618

47,417

         Non-GAAP EPS

$0.11

$0.48

$0.52

$1.81

Reconciliation of Free Cash Flow:

Cash Flow From Operating Activities:

   Net (loss) / income

$    (18,968)

$      1,321

$     (315,236)

$          26,470

   Adjustments to reconcile net income to net cash provided by operating activities:

          Depreciation and amortization

24,042

25,256

74,258

76,368

          Other

(96,451)

(58,295)

183,246

10,393

   Net cash provided by operating activities

(91,377)

(31,718)

(57,732)

113,231

Less – Total Cash Capital Expenditures

8,783

21,768

36,465

54,722

        Free Cash Flow

$  (100,160)

$  (53,486)

$       (94,197)

$          58,509

(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

Q3 24

Q3 23

Q3 24

Q3 23

YTD 24

YTD 23

YTD 24

YTD 23

Income / (Loss) from Operations

$       5,414

$    13,463

$     7,474

$    11,925

$     (205,585)

$          81,233

$     16,771

$    19,864

Restructuring charges, net

202

634

801

735

5,697

2,427

650

2,469

Impairment losses

4,255

4,124

433

–

238,600

8,229

2,944

2,854

Cybersecurity incident related impact, net of insurance recovery

–

–

–

(3,210)

–

–

Grant income for pandemic relief

–

–

–

40

–

–

Property costs not related to operations

424

744

–

–

2,329

744

–

–

Change in acquisition related obligation

–

–

–

–

–

–

483

Liability related to notifications triggered by labor scheme

2,563

–

–

–

(187)

–

–

–

Equity-based compensation expenses

2,701

4,327

1,632

2,281

9,748

10,599

5,501

5,811

Amortization of purchased intangibles 

4,098

4,649

4,071

4,424

12,306

13,951

12,747

13,132

         Non-GAAP Income from Operations

$     19,657

$    27,941

$    14,411

$    19,365

$         62,908

$         114,013

$     38,613

$    44,613

Depreciation and amortization

12,958

13,807

2,915

2,377

39,849

41,695

8,303

7,252

Changes in acquisition contingent consideration

(449)

102

–

(1,496)

6,864

–

–

Change in escrow balance related to acquisition

–

–

–

625

–

–

Loss on dissolution of subsidiary

–

–

–

–

301

–

–

Foreign VAT receivable write-off

–

–

–

770

–

–

     Foreign SS Tax Recovery

–

–

–

(853)

–

Foreign exchange loss / (gain), net

1,725

(297)

100

(76)

2,518

815

(138)

24

Other Income (expense), net

(944)

578

(97)

108

833

(2,332)

121

99

         Adjusted EBITDA

$     32,947

$    42,131

$    17,329

$    21,774

$       104,529

$         161,981

$     46,899

$    51,988

 

 

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Axon Announces Body 5: Next-Generation Camera Built for the AI Era

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Axon Body 5 delivers 25x the AI processing power of earlier-generation cameras, with upgraded connectivity, audio and battery life to support real-time situational awareness in the field

SCOTTSDALE, Ariz., Oct. 24, 2026 /PRNewswire/ — Axon (Nasdaq: AXON), the global leader in public safety technology, today announced Axon Body 5, its newest body-worn camera designed to bring more powerful intelligence, connectivity and real-time support directly to officers in the field.

For years, Axon body cameras have helped agencies capture critical evidence and create greater transparency. Body 5 is built to help officers during the call, with information, assistance and backup on the spot.

“Officers shouldn’t have to choose between getting information and watching the scene. With Axon Body 5, they don’t,” said Rick Smith, Axon Founder and CEO. “They capture a license or document with the camera, keep their hands free and eyes up, and get information faster than writing it down and calling it in by radio. An officer fully engaged with the person in front of them, not down at a notepad, is a safer officer and a better-served community.”

Axon Body 5: Built for the AI Era

Built from the ground up for the AI era, Axon Body 5 delivers 25x the AI processing power than earlier generation Axon body cameras, alongside advancements in connectivity, audio, video and battery life. Together, these upgrades give the camera the physical power to run smarter AI features — both today and as new AI tools are developed in the future — while also making it more dependable for officers to use every day. 

For the first time, Axon is also introducing two versions of its latest flagship camera: Axon Body 5 and Axon Body 5 Pro.

Both models feature several key advancements, including:

25x more processing power for AI: A powerful new computing architecture creates the capacity to support current and future AI features directly on the body camera.Enhanced video: Improved video captures clearer evidence across challenging environments, including better low-light performance.Improved connectivity: Seamless connectivity in urban and remote environments – and more precise location capability – helps officers, cameras and remote support teams stay connected when timely information matters most.Longer battery life: 20% more battery life than the previous generation helps keep the camera ready and connected throughout an officer’s shift.

The Axon Body 5 Pro will continue to gain new AI capabilities as they become available, growing along with the AI Era Plan. Additionally, new hardware features include:

A near-focus camera: An additional dedicated camera lens lets officers scan driver’s licenses to check status and search for wants or warrants in seconds, without returning to the patrol vehicle, with relevant information sent to Axon Fusus to support real-time operations.Front-facing speakers: Four additional speakers project even more powerful audio toward the person an officer is speaking with, helping real-time translations from Axon Assistant carry more clearly over heavy traffic or crowd noise. Additional memory: Extra space lets the camera run several AI tools at once, helping officers stay better informed and work faster.

Bringing More of Axon’s AI Era Into the Field

Axon Body 5 helps officers get more out of the Axon AI Era Plan by bringing smart tools right to the scene. Axon’s portfolio already supports public safety professionals across a growing range of tasks. For example, Draft One helps officers turn body-camera audio into high-quality report drafts and Axon Assistant provides voice-based information access and real-time translation.

Increasingly, Axon is also bringing AI into real-time operations.

Axon Guardian is a new category of AI features within the AI Era Plan that was specifically created to work with an officer’s field-based devices – starting with body cameras and in-car cameras – to improve safety. Guardian is designed to flag potential risks as situations unfold and create alerts when additional attention may be needed. Two of the first features include:

Escalation Detection: When an Axon Body 4 or Axon Body 5 camera is activated and recording, Guardian has the ability to detect potential conflicts in real time and create an alert in Axon Fusus. A human reviews the livestream and decides if additional support or action is needed.Approach Alert: When active on Axon Fleet 3, Guardian can detect if the door of a stopped vehicle opens and alert the officer through the in-car display and their body-worn camera.

Combined, Axon Body 5 and the expanding AI Era portfolio demonstrate the importance of AI as a critical resource to assist public safety professionals before, during and after an incident — reducing administrative burden, improving situational awareness and helping protect more lives.

Innovating Responsibly

Axon’s Responsible Innovation framework guides the development of all of its products. Designed with this in mind, Axon Body 5 and Guardian prioritize human oversight and maintain agency control over data. As a key part of the responsible innovation process, Axon’s independent Ethics and Equity Advisory Council was created to help responsibly develop and deploy new technologies with transparency, while aligning with community expectations.

General availability dates for Axon Body 5 and Axon Guardian will be announced soon. Product features and capabilities vary by configuration. For more information on Axon’s current products and services: Axon Product Catalog – Axon.com.

About Axon
Axon (Nasdaq: AXON) is the global leader in public safety technology supporting state, local, federal and international public safety agencies with technology designed to Protect Life. Complementing its mission, Axon’s growing Enterprise market focuses on protecting critical infrastructure and frontline workers across multiple industries including corporate security, hospitality, retail and healthcare. Founder-led since 1993, Axon builds products with transparency and responsibility. From TASER energy devices to today’s connected network of hardware – including cameras, drones, and robotics – cloud software, sensors, and AI-tools, the Axon ecosystem helps seamlessly protect people and places when it matters most. To ensure these technologies align with community expectations, Axon’s independent Ethics & Equity Advisory Council guides the ethical, inclusive, and accountable design of its products and services. Learn more about the EEAC and Axon’s Responsible Innovation framework at Axon Responsibility. 

Non-Axon trademarks are the property of their respective owners. Axon, TASER and the Delta Logo are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved.

Please visit https://investor.axon.com and https://www.axon.com/newsroom for more information.

Media Contact:
Kate MacKinnon
Vice President, Communications
press@axon.com

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In HelloNation, Custom Fabrication Expert Mark Coyle Explains a Common Mistake in Custom Aluminum Design

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The article explains why smart geometry, not thicker walls, creates stronger, more efficient aluminum components.

ROCHESTER, N.Y., Oct. 24, 2026 /PRNewswire/ — What early design choice causes many custom aluminum projects to become heavier, costlier, or harder to manufacture? That question is addressed in a HelloNation article featuring insights from Custom Fabrication Expert Mark Coyle of American Custom Metals, Inc. in Rochester, New York, that outlines how misunderstanding aluminum behavior leads designers to rely on thick walls instead of stronger geometry.

The article begins by explaining that many people assume thicker walls automatically make aluminum parts stronger. It notes that aluminum does not respond to wall thickness the way steel does. Instead, its performance is shaped by how the metal flows through the extrusion die. The article states that custom aluminum design is more effective when profiles use ribs, chambers, and flanges to create stiffness without adding unnecessary weight. This guidance helps readers understand why adding material often increases cost without improving strength.

The article also highlights that thicker walls change how aluminum moves during extrusion. When heavy areas fill more slowly, the metal cools unevenly and can develop stress that only appears later. The HelloNation piece explains that well-balanced geometry keeps extrusion smooth and predictable. This consistency makes it easier to maintain dimensional accuracy across long production runs. By focusing on geometry, custom aluminum design avoids the problems that come with slow extrusion speeds and uneven cooling.

Another insight in the article centers on how ribs and internal supports influence stability. It describes how a thin wall supported by a properly placed rib often performs better than a thick wall with no reinforcement. This happens because the rib helps distribute load, improve stiffness, and guide the aluminum as it cools. The article explains that this structural approach makes custom aluminum design more efficient and gives designers more control over how the final part behaves under pressure.

The article also shows why early collaboration between designer and fabricator prevents costly changes. It states that a fabricator familiar with extrusion can catch potential issues before a die is built. Small adjustments to corners or transitions can remove weak points or improve metal flow. The article notes that this teamwork keeps the design aligned with real-world production. By working together early, both sides reduce the risk of redesigning the die after the first test run.

Machining is another area where the article explains how wall thickness affects performance. Features such as deep pockets or sharp internal angles may require slow feed rates or special tooling. When walls are thicker than needed, those areas can become difficult to machine cleanly. The article states that thoughtful custom aluminum design makes machining more predictable. Small changes, such as adding radiused edges or sizing features to match standard tools, help shorten cycle times and prevent tool wear.

Thermal behavior receives detailed attention as well. The article explains that aluminum retains heat differently depending on the mass of each section. Thicker walls hold heat longer, which increases the chance of distortion during extrusion, machining, or finishing. When a design uses geometry to create strength, the material cools more evenly. This reduces warping and helps long profiles stay aligned. The article notes that stable cooling is important for components that require a precise fit and consistent shape throughout an entire production run.

Cost is also a key topic in the article. It states that heavier profiles increase material use, extrusion time, and tooling needs. A custom aluminum design that relies on geometry instead of mass lowers material consumption and keeps the fabrication process efficient. The article explains that lighter parts are easier to handle, ship, and assemble. This saves money across multiple stages of production and supports long-term manufacturing efficiency.

The article also notes that smart custom aluminum design creates profiles that behave predictably during extrusion and machining. Smooth transitions, balanced wall dimensions, and structural features help reduce the chance of distortion or dimensional drift. These elements also lower scrap rates and support reliable performance. By using geometry instead of excess material, designers build parts that maintain strength without compromising manufacturability.

As the article concludes, it emphasizes that avoiding thick walls is one of the best ways to improve performance and lower cost. It states that the most dependable custom aluminum components come from designs that use structural features to strengthen the profile. When designers understand how aluminum behaves at each stage of extrusion and machining, they create parts that are strong, efficient, and consistent from batch to batch. This approach turns custom aluminum design into a predictable process rather than a series of uncertain adjustments.

A Common Mistake in Custom Aluminum Design features insights from Mark Coyle, Custom Fabrication Expert of Rochester, NY, in HelloNation.

About HelloNation
HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.

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World Young Scientist Summit 2026 Opens in Wenzhou, Zhejiang

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WENZHOU, China, Oct. 24, 2026 /PRNewswire/ — This is a report by China Daily:

On October 24, the World Young Scientist Summit 2026 opened in Wenzhou, Zhejiang. The event is hosted by the China Association for Science and Technology (CAST), the Zhejiang Provincial People’s Government, and the World Association of Young Scientists. Nearly 800 representatives, including scientists, educators, and entrepreneurs from more than 60 countries and regions, are attending the summit.

He Junke, Vice President of CAST in charge of daily work and First Secretary of its Secretariat; Lian Yimin, Chairman and Party Group Secretary of the Zhejiang Provincial Committee of the Chinese People’s Political Consultative Conference; Marcelo Knobel, Executive Director of The World Academy of Sciences; and Zhang Zhenfeng, Member of the Standing Committee of the CPC Zhejiang Provincial Committee and Secretary of the CPC Wenzhou Municipal Committee, attended the summit and delivered remarks. Yao Gaoyuan, Vice Governor of the Zhejiang Provincial People’s Government, presided over the first segment of the plenary session.

With the theme “Gathering Talents Worldwide to Create a Better Future,” the summit’s annual agenda is “Global Youth Action in the AI Era: Building a Sustainable Future.” It aims to draw on the insights of young people around the world, deepen international sci-tech cooperation, and jointly address questions about young people, science, the world and the future.

Efim Zelmanov, Fields Medalist and Foreign Member of the Chinese Academy of Sciences; Chen Yunji, Deputy Director of the Institute of Computing Technology, CAS, and Director of the National Key Laboratory of Processor Chips; Mary Garson, President of the International Union of Pure and Applied Chemistry; and Lu Chaoyang, Member of the Standing Committee of CAST, Executive Dean of the Shanghai Institute of Advanced Study, University of Science and Technology of China, and Chairman of the Council of the World Association of Young Scientists, delivered keynote speeches respectively on education reform in the AI era, AI and processor chips, young women scientists’ participation in science, and quantum computing. They explored new opportunities for scientific research, talent cultivation, and international cooperation in the AI era.

This year’s summit placed greater emphasis on the growth needs of young scientists, with young talents under the age of 45 accounting for 88 percent of participants. It aimed to build a cluster of international journals, bring together young scientific talent, facilitate a batch of international collaborative projects and advance the application and commercialization of scientific and technological achievements. The summit released the Report on the Distribution and Mobility of Young Scientists in the Field of Embodied Intelligence, launched the World Young Scientist Summit Partner Journal Program and the 2026 World Young Scientist Innovation and Entrepreneurship Growth Support Program. It also published the “Young Scientist Pioneers 2035” list and announced the 2026 Sustainable Development Young Scientist Award. The awards were presented to four Chinese and foreign scientists.

Chen Tianrun, Founder of Hangzhou Moxin Technology Co., Ltd.; Yuan Yang, Assistant to the Dean of the Institute for Interdisciplinary Information Sciences at Tsinghua University; and two of the 2026 Sustainable Development Young Scientist Award winners, César de la Fuente and Nicola Segata, among other Chinese and foreign young scientist representatives, spoke at the flash-talk session to share their research practices and reflections.

In addition, the conference focused on fields such as future manufacturing, quantum information, embodied intelligence, brain-computer intelligence, environmental science, deep-sea resources, and life and health, and held 12 parallel forums. It also included the “Gravitation π” Future Technology and Concept Products Exhibition and Exchange, local thematic side events, and sci-tech and humanities study visits, further building an interdisciplinary, cross-regional and cross-sector platform for youth sci-tech exchange and cooperation.

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