Technology

TTEC Announces Fourth Quarter and Full Year 2023 Financial Results

Published

2 years ago

February 29, 2024

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,

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,

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,

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

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,

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

–

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

–

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

(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

–

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

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SOURCE TTEC Holdings, Inc.

Technology

SiMa.ai Wins Edge AI + Vision Alliance 2026 Product of the Year for Modalix SoM

Published

13 minutes ago

April 20, 2026

SAN JOSE, Calif., April 20, 2026 /PRNewswire/ — SiMa.ai, a leader in Physical AI, today announced it has been named the winner of the “Best Edge AI Board” by the Edge AI + Vision Alliance’s 2026 Product of the Year Awards — recognizing breakthrough innovation where machine intelligence meets real-world applications.

“We are moving from passive edge to Physical AI — where machines reason and act autonomously in the real world. Being recognized by the Edge AI and Vision Alliance affirms what SiMa.ai was founded to deliver: high performance without the power drain, and a true platform for this transition. Our purpose-built Modalix MLSoC, paired with Palette, our software suite, addresses the full spectrum of use cases — from computer vision to reasoning-based analytics. Combined with our deep partner collaboration, we are enabling customers across industries to get to market faster and more efficiently,” said Durga Peddireddy, Vice President of Product Management & Partnerships, SiMa.ai.

This recognition builds on the momentum of SiMa.ai’s Modalix™ MLSoC System-on-Module (SoM), launched in 2025. Modalix powers generative AI (GenAI), computer vision, and machine learning (ML) inference at the edge, combining Arm-based compute, advanced vision processing, and high-bandwidth I/O into a single, low-power module designed for power-constrained environments.

Physical AI deployments often face significant hurdles, including high power consumption, thermal limits, and the need for expensive hardware redesigns. The Modalix platform addresses these challenges by allowing customers to modernize existing systems quickly, bringing powerful AI closer to the data source without requiring a total infrastructure overhaul.

By enabling advanced perception, multimodal reasoning, and real-time decision-making directly on-device, the platform eliminates the need for high-power GPU hardware. This efficiency unlocks scalable deployments across industrial automation, robotics, and intelligent video applications.

The Edge AI + Vision Alliance brings together leading multinational companies and emerging innovators, connecting thousands of technical professionals across the industry. As the winner of the “Best Edge AI Board” category for the 2026 Product of the Year Awards, SiMa.ai is recognized for Modalix’s ability to deliver efficient, high-performance Physical AI at the edge in under 10W.

About SiMa.ai
SiMa.ai is a leader in Physical AI, delivering a purpose-built, software-centric platform that brings best-in-class performance, power efficiency, and ease of use to Physical AI applications. Focused on scaling Physical AI across robotics, automotive, industrial automation, aerospace & defense, smart vision, and healthcare, SiMa.ai is led by seasoned technologists and backed by top-tier investors. Headquartered in San Jose, California. Learn more at www.sima.ai.

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SOURCE SiMa.ai

Technology

Critical Minerals Standards: ANSI Launches Initiative to Strengthen U.S. Supply Chains and Request for Information

Published

14 minutes ago

April 20, 2026

New initiative maps the standards landscape, convenes stakeholders, and builds toward a national strategy

NEW YORK, April 20, 2026 /PRNewswire/ — The American National Standards Institute (ANSI) is launching a multi-phase initiative to strengthen U.S. coordination on critical minerals standards — the shared rules and benchmarks that help ensure minerals are sourced responsibly, supply chains remain secure, and American industry stays competitive globally. This initiative moves forward thanks to the U.S. Department of Energy’s Advanced Mining and Mineral Production Technologies Office, whose partnership made it possible to act on one of the nation’s most pressing industrial priorities. It directly responds to U.S. government priorities to secure domestic supply chains and reduce dependence on foreign sources of critical minerals.

This effort brings together U.S. stakeholders to coordinate national standards priorities, positioning American industry and government to contribute meaningfully to the success of the G7 Critical Minerals Standards Roadmap while harnessing the momentum of the current administration’s focus on supply chain resilience and domestic competitiveness.

The initiative includes a standards landscape assessment, a webinar series, a two-day hybrid workshop, and a summary report with recommended next steps. A call for webinar speakers and a request for information for the standards landscape is open.

Why This Matters

Critical minerals are foundational to national defense, clean energy, advanced electronics, manufacturing, and infrastructure. Yet as global demand rises, the U.S. faces real risks: fragmented efforts at home, supply chain vulnerabilities, and growing urgency to align on the international rules that govern how these materials are sourced, processed, and traded.

Standards bring order to that complexity. They promote transparency and traceability across supply chains, help U.S. companies access global markets, and give the public and private sectors a common framework for investment. Without a coordinated approach, the U.S. risks ceding influence to competitors who are already moving.

What the Initiative Includes

ANSI connects the organizations that develop standards with the industries that rely on them. To accelerate U.S. leadership on critical minerals, ANSI will deliver:

A standards landscape assessment that maps the current state of play: which standards exist, which organizations develop them, where work is underway, and where gaps remain. The assessment will cover the full supply chain — from extraction through processing, manufacturing, and recovery — and consolidate prior mapping efforts into a single, accessible resource. A Request for Information (RFI) is open.A webinar series to raise awareness of existing standards and regulatory activities related to critical minerals, including a dedicated session for U.S. government stakeholders. Briefings will feature standards developers working across the supply chain. Speakers invited and registration is open.A two-day hybrid workshop convening federal agencies, standards organizations, and industry to identify high-priority needs, explore challenges, and inform the development of a U.S. critical minerals standards strategy this September in the Washington, DC area. A summary report will capture key findings, gaps, and recommended next steps.

Ongoing Coordination

ANSI also convenes a quarterly U.S. ISO Critical Minerals Standards Coordination Group for members of U.S. delegations to ISO Technical Committees. The group serves as a forum to share information, coordinate engagement, and align international standards activities. The next meeting is April 24 — registration is now open.

About ANSI

The American National Standards Institute (ANSI) is a private non-profit organization whose mission is to enhance both the global competitiveness of U.S. business and the U.S. quality of life by promoting and facilitating voluntary consensus standards and conformity assessment systems, and safeguarding their integrity. Its membership is comprised of businesses, professional societies and trade associations, standards developers, government agencies, and consumer and labor organizations.

The Institute represents and serves the diverse interests of more than 270,000 companies and organizations and 30 million professionals worldwide. ANSI is the official U.S. representative to the International Organization for Standardization (ISO) and, via the U.S. National Committee, the International Electrotechnical Commission (IEC). For more information, visit www.ansi.org and access the latest news and content on LinkedIn, X, and Facebook.

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SOURCE American National Standards Institute

Technology

Bobby Lehew Named commonsku’s Chief AI Officer — an Industry First in Promo

Published

1 hour ago

April 20, 2026

TORONTO, April 20, 2026 /CNW/ – commonsku, the connected workflow platform trusted by 950+ distributors driving $1.9 billion in network volume, today announced the creation of a dedicated AI + Strategy role, promoting Bobby Lehew to Chief AI Officer to lead the company’s AI initiative for customers and the platform. The move makes commonsku the first platform in the promotional products industry to invest at the leadership level in AI strategy shaped directly by distributor needs.

The new role bridges the gap between what AI can do and what commonsku’s customers need it to solve, owning the intelligence loop between customers, product, and the AI landscape. What makes the role distinct: it combines AI landscape intelligence, product strategy influence, direct customer engagement, and industry thought leadership in a single role.

A Natural Evolution

Lehew brings more than 30 years of experience in the promotional products industry to the role. Prior to joining commonsku, he was the CEO of Robyn Promotions, a company among the first wave of distributors who architected the model of technology driven e-commerce company stores in the industry, earning three consecutive Inc. 5000 rankings. Always tech-forward in his work, his industry recognition includes multiple Gold and Silver PPAI Pyramid Awards.

The shift to AI strategy is a natural next chapter for Lehew. At commonsku, he built the company’s content engine from scratch — co-hosting the skucast (350+ episodes, the #1 promotional products podcast) while leaning heavily into AI for all his work. He is editor of The AI Promo Brief, the industry’s go-to resource for AI developments in promotional products, and speaks frequently on the future of merch and the cultural shifts transforming how we sell. At PPAI Expo 2026, his AI session packed the room to capacity and was named a must-attend session by PPAI editors. The industry has been watching Lehew move deeper into AI for over a year. This role makes it official.

Investing in AI for Customers

“The industry is at an inflection point with AI, and distributors need a partner who understands their business,” said Catherine Graham, CEO of commonsku. “commonsku has always been built ‘by promo, for promo.’ Bobby has three decades of that expertise, a passion for helping our customers, and the strategic insight to shape AI tools for future growth. This role reflects our mission: making sure our AI tools solve real problems for real distributors.”

“The companies pulling ahead are the ones leading with customer intelligence – letting what they learn from their community shape what they build and advancing with the frontier of AI development. That’s what this role is designed to do. I’ll be talking with our customers at every level about AI and making sure the features we build make work smarter, drive growth, and eliminate friction.” said Lehew.

“Bobby and I have been creative partners for years, always pushing each other to see around corners for this industry,” said Mark Graham, President of commonsku. “We’ve launched multiple projects together and helped educate and raise the standard for what the future distributor can look like. This role is a natural evolution of that passion. He deeply understands the industry and the distributor’s pain points, and he sees with us an incredible opportunity with AI. We’re thrilled to build commonsku’s AI future together.”

commonsku’s AI investments are already in motion. The skubot Mockup Generator is in beta with Advanced and Enterprise customers, a new Opportunity Agent is entering beta as an AI-powered business intelligence tool, and the company’s immediate roadmap includes a Description Rewriter, Auto-Art Configuration, and a Presentation Generator with much more to come.

About commonsku

commonsku is the workflow platform of choice for the promotional products industry. Built by industry experts, it combines CRM, order management, and social collaboration tools in one cloud-based solution. Over 950 distributors and the industry’s largest suppliers rely on commonsku to power $1.9 billion in network volume. With commonsku, teams process more orders, work more efficiently, and grow their sales faster. Learn more at www.commonsku.com.

SOURCE commonsku