Technology
TTEC Announces Third Quarter 2024 Financial Results
Published
2 years agoon
By
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/ttec-announces-third-quarter-2024-financial-results-302297901.html
SOURCE TTEC Holdings, Inc.
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Technology
Axon Announces Body 5: Next-Generation Camera Built for the AI Era
Published
4 hours agoon
October 24, 2026By
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/axon-announces-body-5-next-generation-camera-built-for-the-ai-era-302918553.html
SOURCE Axon
Technology
In HelloNation, Custom Fabrication Expert Mark Coyle Explains a Common Mistake in Custom Aluminum Design
Published
5 hours agoon
October 24, 2026By
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/in-hellonation-custom-fabrication-expert-mark-coyle-explains-a-common-mistake-in-custom-aluminum-design-302918282.html
SOURCE HelloNation
Technology
World Young Scientist Summit 2026 Opens in Wenzhou, Zhejiang
Published
6 hours agoon
October 24, 2026By
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/world-young-scientist-summit-2026-opens-in-wenzhou-zhejiang-302918664.html
SOURCE China Daily
Axon Announces Body 5: Next-Generation Camera Built for the AI Era
In HelloNation, Custom Fabrication Expert Mark Coyle Explains a Common Mistake in Custom Aluminum Design
World Young Scientist Summit 2026 Opens in Wenzhou, Zhejiang
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