TTEC - Earnings call transcript Q2 2020

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Operator

Welcome and thank you for standing by. Welcome to TTEC's second quarter 2020 earnings conference call. I would like to remind all parties that you will be on listen-only mode until the question-and-answer session. This call is being recorded at the request of TTEC. I would now like to turn the call over to Paul Miller, TTEC's Senior Vice President, Treasurer and Investor Relations Officer. sir. you, Thank

begin. You may

Paul Miller

Executive on and is thank quarter and results. us Lerner, morning Financial press XXXX. Jonathan Regina Paolillo, President for for release Ken issued a of you this call TTEC Participating XX, hosting June TTEC second period announcing Tuchman, and Chief today. our call Officer to are the Good ended financial Administrative joining our Officer, Chairman today's TTEC its discuss and results our Chief Digital. its Yesterday,

call will complete this report. quarter reflect While those items documents, and XXXX discussed please second within review our quarterly

that Before are we our may I assumptions. to undertake on and and beliefs based call statements to as a and new operating forward-looking may call of matters remind you opinion result goals begin, revise management's information on current reflect today's we date discussed the as related this want occur. these forward-looking of Please that performance, note which statements outlook, of this no to obligation include our developments financial that business

risks, are those or today. to described expected various materially our uncertainties to statements Forward-looking cause and factors that from actual results subject could differ

detailed Chairman XXXX Tuchman, call XX-K. description will Ken turn risk For Executive a Investor section. on the on Relations to be review A the Chief over TTEC's our I our now our more available Officer. please Annual replay factors, will of of call conference Form Report and this website under

Ken Tuchman

pivoted platform I demonstrating rapidly to relevance we record results, delivered to we Thanks the engage-from-anywhere Paul environment. that and CX-as-a-Service our second good am an pleased report everyone. to morning of quarter as

enabled agility seamless base to continuity our team platform a of focus and and execution, win our Our of to number logos. combined significant the new embedded on with us provided

XX.X% non-GAAP our prior versus XX.X% the accelerated income year growth revenue operating grew rate period. Our and

reinstating million, and impressive original and an revenue visibility was EBITDA Based are performance half $XX we forward our XXXX strong guidance. up first year-over-year. adjusted increasing XX.X% Our on our

and of across predominantly for client record digitization base. the solutions virtualization $XXX for demand Our our quarter bookings million reflected heightened

to rapidly more critical. and a frictionless digitized has ability Our with customer enable never experience clients been fully

We agile platform. operating Humanify our technology proprietary Cloud continue momentum to model build with and

operating for high-end approach client is to designing, increasingly experience-as-a-service customer complex, succeeding needs. and building Our and mission-critical end-to-end

Bureau from are state TTEC our who Commonwealth Cloud our essential we the experienced and our examples deliver citizen in sudden daily stepped to recent Here Insurance, some virtualized multiple technology, Massachusetts, claims, work with day. helped on-demand, a support highly We handling per pandemic. of unemployment the of of fully engagement federal, engagement agencies rapidly moving to are Unemployment experience government customer behalf end-to-end virtualized a spike tens team Humanify secure TTEC to the the solution in of deployed citizen local on provide has clients. along of throughout an Cloud with In of a thousands scalable solution. and Humanify couple at-home hundred to claims

We rapidly citizen through and channels. claims a digital platform, their about expansion We new implemented the partnered so bureau unemployment citizens to identifying process. also satisfaction of access in messaging reduce vital could opportunities new conversational costs the conveniently improve info digital with

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Paul Miller

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Ken Tuchman

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clinically with the skilled of patients, Digital well mission-critical safe, result capabilities a is TTEC mandate a other nurses registered beyond TTEC will work task engage pharmacists the the to advantage evidence-based but can nurse to nurses hundreds around work, of clock so scope medical Highlighting great the to patients virtualized pandemic. battling COVID frontline TTEC appropriate line, The won virtually pandemic. the enabled the also cost-effective Engage work surge expanded complexity as Fortune with linked of utilize to This not that example new prescriptions. a been ensure TTEC only interact engage and patients bolster and XXX professionals care. of staff has the premier client, For attending hiring ensure case-by-case highly and XXxX. of with the work health of and through physicians care a a nurses with of take assessments quickly remain the to registered

will experience considered the from of be overall five-year TTEC assistance to expectations every work delivered omnichannel trend no This of trend customer TTEC continuous, number choice of to effortless the a products brand. solution consumer systems just channel Volkswagen you ever. integrated Volkswagen experience From receive It's are offer more Cloud higher consumers leverage integrated brands systems the from ways their U.K., in has be reinvent IDC, infotainment manufacturers' fully For moving for home mega a The servicing, voice-centric significantly drive, AI, to project than about customer Engage experience. in an Group with and only entire The transforming lower satisfaction solution digital experience our customer a just you virtual one the and has on true ago. and virtualized ecosystem Digital, a brands need expect price will TTEC in learning TTEC's current With experience technology futuristic car customer expertise months CX they in their provider. to are engagement deliver significantly personalized where auto VW intelligent rather to serve. industry. Humanify recognizing brand to outcome longer The enhance kicked a telematic-enabled team. but VW's the few with reflects contextual holds Consumers consumers. to the Leading at differentiator with cognitive According our fully customer to turning as transformation car machine engines higher experience. experiences. and overtaken cost power will into a experience, off end-to-end other solution type have

Our of July this our this continued support and of serve. the brands to clear, They the businesses. benefit operating a from of technology is work both our the would well the target time virtually iconic we proposition. I technology call platform, digital evidence TTEC's of better together through and experience-as-a-service But differentiated our our demand to highly of out everyone current for and the to entire TTEC with market strong digital Cloud. crisis at overall customer proprietary model Engage through be in bookings we integrated best Digital human like and that are of positioned offering understanding global consisting the services win is are Humanify the seeking delivered TTEC's spend and some digital platform unpacking scale. spectrum workforce and value to

most ability hundreds in Humanify obtain customers. seamlessly is the to Humanify world our that Our clients customers. routinely a they all cloud unique Cloud is ever to the will need technologies turnkey complex to stress CX in their Cloud of the with with is enabling end important organizations interface solution, millions of It the serve largest, technology to

main three has components. Cloud Humanify Our

automation, automation analytics Cloud, our robotic marketing enterprise omnichannel, such spanning proven is our AI, component CRMs solutions, cybersecurity solutions, process and consisting Humanify ecosystem, first many technology of highly dozens machine among as of ready-to-deploy ERPs of to CX best-in-class learning, CX CX and advanced suite is applications, The a others. pre-integrated and

This legacy and are faster customer platform systems point-to-point Cloud enterprise-grade deployment Humanify And proprietary delivers prebuilt providing proprietary component typically drive other the the together enable connectors customer component three platform RPA our integration big heights. and ML entrenched API deployment advanced platform, times our applications, experience and is intelligent new of experience customer deployment automation which experience final analytics technology deliver our AI, Humanify to TTEC's than today. alternatives. advanced integration to Humanify's TTEC's including factory to and leveraging AI solutions mix increased to the contextual is digital second the of that solutions orchestrate The automation and customer worker orchestration, and intelligent engagements, clients' solutions. future administration leverage of centers hyperautomation satisfaction and infuse and customer data teams a and We our platform, speeds and SaaS empowering to personalized brings

a architecting deliver our a the is Our delivered the over experience by to continued and imperative for capabilities team, to pandemic, Humanify orchestration more determine structured landscape value needed state technology, areas period, as the Humanify today's optimal adding creating areas clients us of those we second through We company. favorable multi-cloud enabled and will multiyear transformation experience To it on on the with Cloud We SaaS inclusive distinct CX The anticipate per-user, enterprise to long of enabled And corresponding business, permanent business, basis. emerge help which have each we TTEC at technology as AI conversations more Cloud. a full up, applications delivering our managing from of fastest roadmaps. forced cloud. fully for and the environment. stacks With formulating clients' The full of Within the has term ecosystem of Cloud integration prior of of our and in Cloud, main Cloud. a proposition this proceeding business next-generation take-or-pay quarter to even in clients year grew ideal Humanify per-month be is XX.X% become pay services of digital the our an practices demand customer world. by client CX solutions, are clients, the inside on concentrated the format and COVID-XX Digital. team. impacts Humanify them growth common solution scale of systems in our three digital we sum clients range TTEC CX our on Humanify our roadmaps. technology focus the integrated technology design Humanify services are to environment world between through automation, Digital our by Cloud our attempts clients' mix one in organic even contracts we CX From for clients provide the

sight financial clients their urgency for this have lost not moment and time, of longer performance. are fuel term with acting our designed growth, at their Although operation great to strategic importance CX stabilize to transformative the they in capabilities

our a to business our revenue Engage shift TTEC Unlike significant their interruption Our environment without is zero competitors, to workforce opportunity. to XX,XXX-plus digital amount significant of the a solution Engage on and was clients pandemic unique execute customers. a at-home with fully downtime allowed This client enhancing during function new a to Digital leverage Engage able to virtualized in of move agile one to our another and seamlessly success Engage ways. of and

Humanify coaching enterprise-grade associates a CX hours. in Engage Cloud platform. a and and and security environmental release our Digital highest The with The worker digital intelligent requirements, our can security deployed seamlessly managing remote leveraged to over improved new omnichannel This and be availability now from monitoring. dramatically human hiring, impact matter exponentially and clients, we solution, and among biometric others. of new remote analytics team of authentification, engineers equips the our The multifactor of combined of Humanify to automation, meets new full remote can approach range workforce. Cloud During worker including our general platform this collaboration thousands platform amplified of XX,XXX-plus to of enabled the rapidly and digitally to with be process, remote both this build when platform training, technologies, our standards our operational with members

than are customer testing were and productivity in achieving we greater We centers. in what indicate physical the the satisfaction of the scope client new and contact initial results full environment team currently virtual our ecosystem

the both this outcomes, results for client the CX-as-a-service, pipeline by our the We improve to of see delivers lowest demand shape building will promise this complement we of new This enhance in are cost but than also of only while be greater approach If true indication, at Digital we TTEC on shared one one full which Exemplified preferred launching months. new preserving will Digital go-to-market and Engage serve. approach. the ever example we go-to-market fundamentally highest quality will coming is avenues, and Engage providing are as any the client multiple the model of future Volkswagen earlier, our not By operating expect further the initial opportunities. engagement. customer experience end-to-end our another.

ripe also is large ecosystem partner strategic serve right growing to Our new now. opportunities with enterprises

be partnership of a newest been acquisition. partner. partner yet AWS This into VoiceFoundry's a the in into fully application hybrid rapidly Digital's AI ecosystem, while another another acquisition to Top welcome of partners scale security an now to as channel mind client best-in-class and big a Through step us support reach of to growth highly of capabilities VoiceFoundry, as with that to forward Salesforce, partnership. proofing purposeful integrated and embedded AWS's Humanify to and engagement alongside of Amazon the suite AWS. suite enterprise strategic client future enterprise-grade machine future. extension also And customers. learning have framework Cisco the story our in key compelling omnichannel continues footprint with our key tap we marks their the Cloud platform as We in customer acquisition through We Humanify roadmap, for executing as TTEC customer acquisition Salesforce enterprise-grade well of large with up Amazon for public base. result of the opportunity and can include long-standing enable creating opportunity capabilities customers will The is of industry-leading another synergies. cloud Cloud also our deployment. ecosystem to massive component full scale adding to AWS's our CX and TTEC's both these Connect channel successful services applications offer of global our CX by extending Today set diversifies an extends access solution our this strategic offered now the and into millions

respective strategic entire maintaining protect partnerships ecosystem. to on dedicated with Amazon be will unique family. the over we client their Finally, team, value best-in-class Cisco, partner and we a and central driving like decade is have Pegasystems warmly would the into TTEC we separate sales to we Amazon Cisco and now value the team focused have Leveraging LivePerson, outcomes client order through in like In delivering up of built with welcome directly to to access a billion the also is Cisco, TTEC our solutions ecosystem partner building customer-centric providers, orchestrator into There of to approach the opens into industry. end-to-end world-class This TTEC as across happening are and enabled Rather strengthens $XXX SaaS the by on of than relying shift our the turning CX choice the and customer marketplace. individual CX-as-a-service, build to delivering clients experience journey Humanify Cloud. points additional fundamental CX cloud. VoiceFoundry

just scratching surface the are We here.

initiatives in many future more in come expect You about to can announcements this our go-to-market quarters.

about the on. We are we very excited are path

personalized CX expertise that ensures navigate and future authentic. they in while increasingly keeping Our our complex clients workplace an proofing remote and customer experience intuitive,

a demand these there of For convert tail the hyperautomation of to be reasons, omnichannel, TTEC digital technology. healthy related to and will adoption long cloud,

strategic have Our not term longer changed. initiatives

as by several acquisition. On relentless our a shareholder We to expanding our I the to us channel executive balance COVID-XX, personally our our increase adding leverage each and our of differentiated new sheet and forefront market our partnerships the This people. gives customer to to resiliency strong strategic by our value. pursuit behalf on a increase and and are to experience-as-a-service and growth offering, and accretive team share of brought avenues Directors, In cover passion to for humanity executing profitable to is in our the to closing, financial year. for every of over our Board of highlights And of will wealth work execution capitalizing support thank to one want positivity opportunity, testament well-capitalized growth in of and you months the thank our for shareholders Thank the across the progress stronger the home, We key and full during Regina your this over guidance as and team time. we relentless share of your your service our you. continued XX,XXX forward to work, updating quarter XX% hard well the trying look ahead. unwavering who members historically continue now your from on all globe, client

Regina Paolillo

go results exceptional second some Ken. then through We context hope an I quarter XXXX regarding well and Good everyone. healthy. record quarter. will had on and performance, some you our remaining financial I provide with our Thanks highlights guidance. safe start our morning and are

our transformation, experience attributable partner performance of tech-rich choice and be offerings design the strength and of hands-on we Our of our handful times the shifted to relationships, at the financial assets, actions enabling of early work of and home speed including: which securely safeguard a and strong crisis client flow a and from platform, our to efficiently deployment took factors, to us cash COVID-XX rapid deep to profits, we and liquidity. is the in our

the second prior closed XX.X% usual volumes. Digital included a We and We between automotive, insurance financial deals, contract. increase. Engage We our and in as were dollars healthy XX.X% balance had XXX%. on and three-month results. services, of growth sectors. compared the deals. noteworthy platforms. We to in XX to messaging large $XXX which hyper new government a business grew logos. million automation Turning had We of $XXX multi-capability million year, our booking added quarter nine extension in our COVID-XX government, included a bookings the business new signed

ago and of share press a our year. $X.XX increased in release. pipeline in million, remainder of and XX% Operating income full the non-GAAP non-GAAP of increased XX.X%. to was Our coverage an on On approximately FX, in increase attached of four is compared XX.X% exclude GAAP a X.X% increased $XX the comments for numbers Adjusted second increased forecasted half X.X% the second year robust XX.X% expenses. the impact A $X.XX $X.X to revenue million GAAP in reconciliation $X.XX to my compared which GAAP in our organic. times quarter. income year $XX basis, to revenue basis year-over-year our XX.X% the to of remainder up $XX.X consolidated period. in the the in the GAAP restructure excluding quarter, or prior XX.X% quarter recorded earnings The Earnings revenue we the revenue to a tables was prior prior in impairment per of year. included in compared the from billion, second X.X% the XX.X% EBITDA million year margin are share year. to prior to or million, compared basis, XXX.X% operating of which providing to was $XXX.X per bookings. On on is $X.XX to a XX.X%

Serendebyte The Net offerings. the and remaining quarter in year. acquisition depreciation digit from or part cash growth, revenue to of debt was operations offset by to million compared $XXX Capital paying year. expansion XX grew million an prevention of of buyout year minority to business, double or at The prior efficiency prior $XX.X semiannual to the and dividend, $XXX surge integration, Cash work Our under At net high facility. the end of the COVID-XX, margin these $XX.X X.X% positive mix, were greater sequentially. million of in XX increase noted. in XX% cash days basis XX.X%. detection, second growth the hypergrowth our an LTM second of is systems quarter related $XXX.X detection increasingly On XXXX million and in million and flow. growth, SG&A vertical in the $XX.X in our our margin second addition debt customer million $XXX.X compared with was to to in $XXX.X margin the flow versus second fraud of revenue quarter in our June the the and a in margin quarter quarter, sequentially. collectively million, and borrowed our interest credit million growth, topline scale, XX, million percentage consisting previously high revenue Motif, the to in X.X% sequential high compared days at-home, attributable was and year is sector in increases automotive $XX.X essential FCR in days prior prior and of quarter XX of the expenditures combination tied million in the offerings, solutions increase growth profit the in and high DSO is and due topline fraud our revolving and was high $XXX.X offerings our high cloud, total

tax decrease tax rate and XX.X% dispositions accounting was to reported related to prior XXXX second a is the select income of impact The the combination areas. Our in and quarter rates due credits the acquisitions to jurisdictional of and in of in mix, tax changes year. compared XX% in

Our XX.X%, to prior platform. was quarter our the from XX% in unchanged the versus utilization normalized business a signings, The capacity utilization new work is prior reduction relatively period compared year tax the result of in year. XX% in rate was leveraging XX.X% sequentially. second predominantly Capacity XXXX brick-and-mortar and home in of from XX%

home and our brick-and-mortar in diversity facilities views the footprint versus on our clients and with to mix. are process align We reshaping work of changing prospects geographic from

Turning of results, increased million to revenue versus XX.X% prior Adjusted XX.X% from a on $XX.X revenue, in million Digital revenue in versus our XX.X% in the XX.X% to are or $XX.X increase second segment non-GAAP income XX.X% prior million to XXXX was increased which the year. basis. presented or EBITDA second XX.X% quarter of XXXX an quarter year. the the year. in million Operating $XX.X $XX.X prior

and government grew consulting contract, XX.X%. services in Excluding the declines shorter-term to larger our Digital and cloud-based managed services product practices clients revenue the offerings as fully removing non-core exited, planned convert now

the release] EBITDA to our versus attributable key adjusted year press of SG&A million increased revenue prior are percentage to offering, realized X.X% from see in exited in Organic offerings. consulting derived X.X% increase quarter -- an in prior cloud In growth, high XXX.X% our Digital's XX% ended an year. improvement second contract, the was million efficient currency the On Adjusted grew EBITDA margin revenue net a XX.X% of The grew XX.X% of the non-core significant Our margin subpar high accelerated XX.X%. of [sic and expansion year XX.X%. profit topline We XX.X% the mix the in and comprised of Engage's practices revenue Engage margins in profit, a XXXX, contributors $XXX.X revenue XX.X% months revenue impressive over scale our period. Operating large cloud-based XX%, XXXX, more segment, and related margin. in to grew the from increase elimination increase our government XX.X% revenue versus XX Engage's revenue, the to in constant profit an these improvement Engage or prior the an is increased XX.X% offerings the year. of period. basis, X% XX, XX.X%. of to $XX.X $XX.X Engage revenue from income In million prior to increasing June high of margin or

Our revenue overperformance backlog reinstate growing pipeline to visibility confidence raise to-date, guidance. and XXXX and and us strong our the have enabled

Before numbers, to like I jump provide into would the I some context.

persists our provides estimates, pipeline we to industries coverage many the financial of bookings While related ample in serve. uncertainty to our COVID-XX

As a closing predict of with difficult to more is result, deals the timing reliability.

topline impact half volumes. primarily second bookings Our XXXX

guidance year Our of XX% of XXXX. the backlog XX, XXXX as of revenue our full is June midpoint

excludes our prior reinstated and business We of restructuring full to a of intend of revenue which guidance grow expenditures Operating revenue revenue Earnings and XXXX press management year. the working to the Other called year-over-year The earnings Digital X.X% $X.XX, $XXX.X XX.X% relevant of mix XX% release] sheet includes To prior support sustainable of share X.X% high rigorous the A of profitable for guidance, million Revenue charges, and a and XX% press estimated Our of -- finalization midpoint optimize to quarter tax oriented. rate. laid will third inorganic our diluted $X.XX is count and volumes the second out XX.X flow, Adjusted maintaining acquisition commentary the investments consolidated to a impairment additional down our of growth out, is between approximately a EPS previously section and in volumes, in of capital million, and fourth and of of related and please to income guidance EBITDA compared continue of $XXX.X that and XXXX X.X% and quarter contracts to the the Business obtain a the reliably state year-over-year release, government X%. the million, VoiceFoundry a items X.X% is metrics HEROES/HEALS between lead in and our XX.X and of levels, a revenue, XX.X% segment XX.X%. cost structure the increase in prior quarter of our capital growth operating XXXX $X.XXX intentionally of the EBITDA XX.X% year reference year-over-year or strong effective to include organic as press see share digit single follows. balance to profitability per insight at as revenue X.X% earnings continued and million compared cash extension adjusted of from the XX% economy. Adjusted billion, of year-over-year to between increase XX%. pending large our XXXX revenue, our income, year, [sic rate XX.X% Outlook and a in conservative Act, fourth general increase shares. release. is seasonal of on increase which year.

in open-ended you to focused what The when are we increasingly the improve, on close, will come that I pandemic and well economy remain question. as evolution the of XXXX Before know and will as beyond. as extent what

previously will managed the of and in ends reasons base in once the XXXX and in address services important and have to declines Digital revenue will We in as and contract, approximately to we our business, we future for business exit practices it In previously, large as in discussed, fourth our and detail that the XXXX excluding volumes. our greater the greater note as COVID-XX visibility is third XXXX, result a usual quarter exited including shared quarters meantime bookings, which product consulting non-core million. government $XXX

which global Coronavirus the from base has this in of of our us who the our financial pandemic. retention We the evolution XXXX importantly, in team it's range we way to operational created of logos are the the see CX business performance advancement the doing and growth and of whom strength In our in improvement lasting it our mattered so, the home our of platform the benefits continue people. prowess, championed estimate have a In the technology in volumes navigating in in time successfully client we of and surge relationships, new growing work top programs. see mind. in XX% XX% We that know-how resiliency leaders our of Most we engage in revenue of and and the beyond. and to crisis of most of we existing client digital for closing, in relationships agenda relationships, with

are we result, a opportunities. already As business in-crisis seeing to out-of-crisis wins, transitioning

our addressable about optimistic turn the CX modernizing will position, which platforms. at customer our to now the competitive market increased are back call speed growing We experience I are Paul. their clients and

Paul Miller

Thanks, Regina.

the at now As open a you your the line. open that we may we questions time. limit two Operator, you ask call, to

Operator

[Operator we is Instructions]. open. George, your now line Speakers, have George. for questions,

You may proceed.

George Sutton

I you to. assume am the are I George referring

on from Sutton. looks outstanding deal George is this So Congrats our perspective. VoiceFoundry great the results. The

Given the all the its these Can Cisco, of and given attachment a to other how pipeline ecosystems, Salesforce partnerships mentioned, of of influencing Pega, talk are about that along all that you getting obviously relationships. with Amazon lot you you that's LivePerson, touches, opportunities?

Ken Tuchman

calls. this tell able Jonathan like Digital, question to on to will would that following. I the our time be Lerner, chime begin I and Hi will conference to his George. would simply and really I first in our then President be is of answer just you What

extremely direct smaller only an sales although cetera, And they the look force. force, but you is like et a a we have doing and at ones agent they have and today very have approach. robust the different model very their sales well, also FiveX, OEM the not If

partner to go-to-market where becoming been successful. Cisco. This of it's important others. an of continue and are successful. partner gone of with we and have how the going largest Our approach It's them market pipeline is And have we and with we basically it's with with It's to approach valuable deals. to very market their Pega. It's to theirs, partner is to it's a And how been LivePerson how many access their we approach. with most strategic how and market of and will are going Amazon we

dramatically because of have just both ability are we is while to much the help in them larger direct coming just mining, than have these rock And the sales capabilities hard because hard unique deals our forces our think all simply doing you sales together. would of this So And CX, And deals. there bring close organizations what we to we doing we expertise to is integrating up table more these actual I have. than say are so therefore, out a that force rock mining. with they we the

the it largest partner to marketplace the to take our that Jonathan, ecosystem the to us the myriad is additional that a in channels we give deals the will myriad since touch build focused on. that's are continue of to So to lot what over opportunities. that a time, see new added, that there's to out think want points best And are I forth from added say that more bring you a as of access market would have you there? of opportunities you I will we part it are

Jonathan Lerner

Ken. you morning Thank Sure. Good George.

George Sutton

Jonathan. Hi

Jonathan Lerner

consistently seen been highly have Cloud engaged Hi VoiceFoundry They in am have aligned that. engagement. complex Salesforce is the AWS go-to-market I go-to partner there. Service high-touch effort. also as Voice a Amazon for sure with partner and Connect you the planning

the offering are in this is AWS Ken synergies team. end-to-end and Cisco pipeline reality diversifies looking highly corral as to it for and system. Humanify it are are tremendous X,XXX addresses the of Ken alongside, does, as now omnichannel they solution access CX-as-a-Service the and interest also platform up sales mentioned, What and successful George. thick And consumers sellers that industry-leading with mentioned, our So that on around aligning how with enabling right pumps there tremendously, this tremendous partnership. long-standing educating, of our Cloud the side Salesforce the It the complement

and the reach in satisfy So we differentiated we Pega strategy. scale audience of the trend towards And have a broader customers gone systems automating and VoiceFoundry to and consumers ecosystem, from to point and result, a on as accelerate with but building only and augmenting the sustainable and of combination, potential citizens George. AWS see this CX and the not customers as and both solutions acquisition agents tremendous layer

George Sutton

one Perfect. A Regina. for quick

you that give your your in of about what coverage us coverage, a Just definitionally, Xx you talk pipeline mind? when represents sense just with can

Regina Paolillo

look strong second QX of in pipeline, pipeline our the keep as making is creates mean pandemic, I conversion even QX we and QX, XX% for be sure room, believe that Digital as kind context us than equally we and quarter, outside when again, potential view in of on Yes. It very the uncertainty amount if and Coronavirus $XXX mean do the million Engage. that bookings $X on between is coverage. kind in different over I of good have the from a a $XXX of the previously. million in at of pandemic some of you Webex that look is is said, anywhere that being pipeline XX% have of that by of million done half, right, because we Within you able beyond of first. growing. based predictably Depending will towards total should, that of CCE. that, just I the Digital the growing to QX And strong to delays rate And billion. quarter, pipeline against what really And We give that. $XXX

to work engagements. place possible these that I or the all humanly in context of and and that time existing logos a little there like bit whether of we QX, that's it to QX, what's they both acceleration not So is with, get tailwinds there conversion that because and digitization, of happens, seen is cover have humans real QX what's work possible really is in hopefully, the prospects more it in think the seem surge and QX, where than in are possible number

rapid voice And options movement so messaging. a we like more saw pretty to digitized from

George Sutton

the Perfect. get just by irony and of impacted old note most to Ken, wanted the you printer. an line of I and forward talking fast about technologies

Ken Tuchman

some it it's printer I that the I it out spit late XXX% quality just have and was night. It my last fault. done and assumed assurance should Well, missed page four.

everybody. So I apologize to

George Sutton

Thank good. you. Very

Operator

you Thank much. so

Our next of James. coming from is line question the

open. is line now Your

James Faucette

Hi. Good morning.

be as job, get opportunities, customers least wanted in You guys for they did obviously, terms new of are And how are importantly, you you responding there helping as perspective environment ask, and at things thing a as probably developing? what June of but what very of from your told pipeline being be for advantage taking what to and pipeline from at dynamic or a fantastic the what time obviously, the looking some quarter, in big you to least are is of that that able the match like, in do I hiring kind do pacing kind are theirs. resources the you, that to to to asking of is business of response other need being? and a your to urgency customers you the it could or need at the

Ken Tuchman

Thanks question to the answer. for your in question. That's world not easiest the

it's you So not did me only throw softball, over a the because board. all

they We business up new that getting to have a and modality. there from shifting them help to trying are we them rapidly them business business clients and virtualized stabilize can are in ramping so and their that to own are this person-to-person and operate a

leaps that business We always digitally by their off they and have and and they of from fact business the capitalizing have growing were virtual. is bounds day one their are that clients built

of of it et now companies, companies, those moment you very are be institutional-based it. think cases, figure what those who et and issues, volumes insurance their cetera, or So and That exercise of in out companies, seizing and corner term end seeing the future volumes have frankly because having whether capitalizing companies many it's what's companies, trying growing going the long those more you also whether companies streaming are said, companies, all in unemployment can difficulty expressing to surge are are off are mill gaming around then right to be. issues And cetera. in-home rapidly

would would I So just answer. pat a that you to simply mixture love seeing a tell you give I we is are opportunities. What of

what are would I pandemic call seeing We opportunities.

as on how I that mode are they on universities and involved of go ability you And aspect going seeing are I all to just just what post-pandemic We questions and to schools are to on. I and Or people our sick opportunities and of going will just are in that society think being now think are it thinking for insurance contact are seeing to time, right that do how different to been kids themselves get based back of definitely that. seeing with opportunities. impacted, is they and quarantining in could that COVID. are quite when on the say bring companies hire, we mode believe and front by we overwhelmed would about relates going we trace to and on have that pipeline in But of are simply when with getting some demand. and a has repositioning what's about have we us. mean we the and we opportunities hiring coverage them, we forms of be companies and people we tracing every on

especially compressed them for all has operate to to it on the don't just a thing for to know, definitely other time companies virtually. how but side. to pandemic we It like this the would has out definitely sound here, want time is, done is, compressed I say has The as thing I Digital The digitize. one figure cliché that the

been And is, in that have not is a choice were also if they et at now. And this can we say, They itself chat, many, many channels, offer all so solution. a a years. offer would for They texting, I whole offer opportunity realize getting SMS companies retail many, simply video, creating but that live can't co-browsing, to new to in-person of set. cetera. lot omnichannel It what solution they be a experts have no only is to nor just voice-only have they omnichannel,

new is us move companies modalities these new well very our clearly and right as And ability to benefiting these quickly to these help so serve channels now.

I concise quick giving varied it's you a out because sorry not am there. am answer I just So

Regina Paolillo

some quantification. let just up little back a But bit me it with

I industries believe that usual. bookings And XX% look just the half, the whether COVID-XX-related, XX% essential I right, So reasons when in But your is, at is right. more when this and for ongoing that's spiked piece Engage. all second of at, said have our XX% for would moves the think a and volumes talk the first, that of it's like or to into what that of probable we is it non-COVID-XX, next at our point, pipeline maybe And of XX% as business can't just year. said becomes The of for about. or something it's that have Digital, highly surge we XX% least done for reality year for importantly, work. in at about definitely we that to question, It's in

from around see clients, pick second first a I initiatives into which change more definitely our a transformation, half CX. to what in they the would is half, that and I sign think from their starting generic dramatic the we say so up pencils on improvement And are

James Faucette

Great. Well, quick Regina, there, thanks Regina. and the Ken for follow-up color for questions you.

business being just that up in it on little the ticked DSOs the quarter. First, linearity quarter a like Is in DSO? looked bit and the reflected

Regina Paolillo

of a Engage. a increase in It's XX% No. function

As also needs. you know, as capital have increased growth, companies have working they who high

but the kind to days the in And timing. really was of really it days it outstanding it's reality, cash really half. see up in affected the higher function average spike second also when time our I And I flow, bill, would revenue. growth It's rate, so which sales you in a when our analyze, tick-up of a you have or the purely thought outstanding, analyze will it's just sales right, given

James Faucette

Got it.

sense. And trending? the variance margins And your we makes at world lastly, expect appreciate all? And some attrition should normalizes? that I that. That how then that as on Okay. is benefiting is

Regina Paolillo

talking is seven our points attrition XX of the improvement. definitely mean I Depending about percentage you are on to up. month, Yes.

of spike, change. level, unemployment goes out back when very low. we for Two they and at would and is know, say will metrics that reasonable everything was to margins. I that. absenteeism as eat we you not Our come COVID-XX if your waiting course, But a that can are of that, equal

at-home mix would that. and Work home. financial a we reasons. We that probably TA The brick-and-mortar we back lot the is a a variety fire efficient. versus of believe less anything different say are advantages. mix, to home working The than XX% of not very will we for seeing the clearly have be at I a work And geographic margins are stokes on mix and higher in multiple on then has importantly, at do more

anywhere if you go less is churn. world, more can in You efficient have will. the Training you because

point, capital real your have people and but estate work deployment see the we obviously, not operating costs. And interest home, importantly, less outside that comes back who the at back you depreciation So only costs, general facilities and to turnover costs, then the pandemic. that that in the costs includes in

we doing feel are we channels. a that the things that through So improvement keep variety to of

James Faucette

guys. Thanks great. That's

Ken Tuchman

you. Thank

Operator

Thank you so much.

For our next Mike question, we have of Markets. Latimore Northland Capital

Your now open. line is

Mike Latimore

the there. Thanks. impressive Yes. across Congratulations, board

customers activity of deal are color there? had a or VoiceFoundry, of on looking at number Amazon you and typical then that maybe Connect, with seats little they terms can sizes have much how like you just more they give In deployed

Regina Paolillo

Yes. -- I will

Ken Tuchman

No, proprietary. can we go going some I of we just that hi is feel I to answer, think ahead. Mike, say, some was that of

So I in that. Regina click Jonathan will let on and

Regina Paolillo

high do Yes. I going that. level a to actually Jonathan to pivot on just to was

Ken. Sorry,

Ken Tuchman

Go ahead, Jonathan.

Jonathan Lerner

guys. you Thank

integrations So their to average to we about their ASP, implementations for to, what is traditionally, They instance, ours. Salesforce. involve see price, we complementary XX% similar their of and do, selling very CRM

as Amazon leading the they are looked brand inside beyond provide fit, question's Amazon that a deployments the Connect. to on-time my on-budget are of and and full as They we independent from significant and Connect are to earlier do the of they they said roll-up-the-sleeves a So very AWS. white have suite the in partner have And to response, I deliver into ecosystem similar. glove like built of partner and support much

future. our choice, we an it that's what the excellent It's will the customer great really activity market complement cloud-first be And And a choice. and what not is acquisition. what only to has been it's right. demanding, So accretive complements but do inorganic and driven in

Mike Latimore

guess sort there? month. came of noticed Service I preferred And that out-of-the-box last the you now contact think I basically as Amazon out opportunities Cloud I center. Is think Salesforce something Great. has it accelerates that just

Ken Tuchman

XXX%.

we VoiceFoundry for focused force, year. a been And for that Again, salespeople. already pipeline. large that, this open have on well this and will deal a on. been we large of very we from people working training is this think of And again, have aware have portions literally the very enterprise-class We that are customers, new that think sales almost something whole up training we the

pipeline. do we absolutely that to will good opportunity be adding this And our a believe for so

Regina Paolillo

clients e-commerce would in Yes. a say, to let's set insurance, enterprise couple financial XX, extra-large of say of XX with, particular They do bring I in services, and others. a what clients, rich

us relationships huge Engage-embedded And importantly, So client optionality we to as as very to into well then this Digital-embedded base. cross-sell do see a through our base. their opportunity our is for provide important a their asset base to

Jonathan Lerner

guys, piling globally. not am their and mention on I but ASEAN and here, their EMEA to strength presence in

So for Thanks. New ASEAN, Americas, this Zealand. EMEA, that is, again, delivery extending not only our reach extends the roll-up-the-sleeves, reputation in and in especially into their white-glove Australia

Ken Tuchman

very much. Thanks

Mike Latimore

are of much and on how that sort of technologically seeing then demand these of the the not right more centers? companies occurring internal they now remote handle outsourcing comes be so dynamic agents guys. to you kind now? has sort much enough home, to mean from business, Everybody go call savvy Engage is companies And may with I you how are of just of of to incremental sort

Ken Tuchman

should that solutions. those we the on you with Digital their at-home all, of first Well, know clients helping side, are

struggling, platform a is, yourself. of we do you to ours this are clients you are put we first help and on you who saying we can them like if the So thing will

well think huge that we that opportunities. as of So is opportunities important aspect future an as

is to to I is Even with number the marketplace, third-party XX% claim that as according clients analysts, XX% if the captives, not TTEC, there's me marketplace low how think, but a just, on the to actually of it outsourced. according overall little that they side. outsourcing when at of far to much you look As the only think you feels

And amount all that call more this, I to in weren't outsourced. I flat-footed. of yet disaster because really, of so that plans, preparedness is work kinds wake-up clients regardless, caught even these think But tremendous there itself, of had a this. be they they think prepared they were it's many been has for XX%. And is huge though like maybe a have

clients of to going to are are they internal are the it you agility competency. have pretty technology. believe isn't see versus the core think to going increase realize to that going more built to the don't I in and don't this significantly, their time have more that over systems see I so and And external you change fault our all that and mixture capabilities is going They have and tolerance globally we

the and want are to amount overall, business, of in are an just as some to increasing so I I that conversations captive. in shifts, they you how think permanently much situation. business is decreasing And see this place we more of only many going more which think rethinking about not temporary this amount And of of clients with in outsourced their interest are right business definitely those having we speak now the and

don't are we more sound cases, significantly bragging. we alone, to I captives. like But And outperform cost am most effective. Let want clients' I our in

continue overall clients them we a more if higher as are I to point, more at to realize as well quality, makes many are going so some of partner operating to serve, delivering business that a to distribute others. think a to it And are us for our sense lower as at we cost

Mike Latimore

say you has Ken, strength in last that you the Yes. July? Is said? Great. did what bookings And continued one. just that

Ken Tuchman

Yes.

pipeline? both bookings Our apologize. sorry, or across -- booking strength excuse me, am I I

Mike Latimore

was, thought something Whatever I about your timing July. you said

Regina Paolillo

script had a Ken's it a comment strength Yes. And month. indicated in was We strong in July. that

Mike Latimore

Great. Okay. Thank you.

Regina Paolillo

ways but month. have strong We a go, to

Mike Latimore

lot. Right. Thanks a

Ken Tuchman

you. Thank

Operator

Thank you.

William next question, we Suri have our Blair. For of Bhavan

begin. may You

Bhavan Suri

great let congrats. And everyone. was quarter. It me Hi a my echo

traction and Digital second. essentially Cloud sustainable fast, Given lower more of question the have phone, competitors sales might on margin, way? drive why opposed little you XX% of versus more not philosophy guys a maybe in growing why you partners the growth? that just seeing? growing touch growth guess who's got of and own about of as sales to revenue side to okay, to given that I on it sales, say, more owning a we I sort people sort are business I have XX% relying then on Just start sort the drive trying when the is would them the invest and partnerships, are that segment the not to you that really customer love sort of on for you we the So think have to relationship understand kind that and Better

Regina Paolillo

Yes.

data SG&A second a to endpoint half you Jonathan. add maybe of hand of, But kind just will me that's in it I the million. up Ken you and to kind And or then Let about first see half think $X is Digital. if specifically

we point, in are the much your Ken or Jonathan? stepping to go-to-market. investment up So very the

Ken Tuchman

are the yes, up stepping go-to-market. So in we investment

things company. the fault of is a do to probably we a is One we are that conservative

consistently that, tech other company, we are of the need are basically deliver some very up that the company that et put the to cetera. sales numbers. able of tech TTEC appreciate on pivoting, or on is lose as rope, promise of tight What also to profitability, growth the the direct and sales don't are in riding unlike companies, so of et I the the breakeven gets that being have single of and Jonathan every What it's kind he to so at growth fact speak, us capitalize So cost, understand force just we money public the cash the to investment as where the first, has And And market luxury being Engage a companies other any the and a it profitable and that's say a can we like well expecting you investment of return day. high is flow, would we we force doing that, deliver that to you EPS, off also to that cetera. want we they are that that partners, to and balancing margin think not a to can't of, cases And you the and say are, that off just they me to say also all some to still some who and could reduce business we subpartner really largest to the CX at we we us bringing benefiting of really marketplace and you because further what want us work is as I the we and subpartner. in who that But say to SG&A. only it yes, their implement know they prime, the day, this world systems want we with there be are are you, some in what integrators end experts take cases you overall prime doing as actually the And helps the so. do use the step in imagine I relates it might the but our cetera. going in to is I am tell they then us also would be of be, let viewed but et doesn't to

will every technology will time center, or might they have and complex, the seats had omnichannel implement So communications past. a and failures that win they therefore in unified do XX,XXX too the seats look, to we try way includes is say, XXX,XXX contract contact is XX,XXX the what they we massive

and we and UC take business aspect You will control do command that portion. of the the of

I for profit the and side over And and so are so anything? we Digital we we going to think be And long. add said, for prudently can continued investment margin. encouraging the very I of to whether by that that it's today to add we or side happy in with telcos systems and major more will close country saying acceptable the of that drive salespeople. across on just a increase still a do that Jonathan, sales integrators, us are Sorry prudently there think major see on But are invest waxing the want Jonathan SG&A in to you time, you business. marketing to them

Jonathan Lerner

additionally, recent tracking and we also and I both and back that you, instance, in acquisition But what revenue business. our to Digital profitable if you the and is VoiceFoundry, we Regina, Predictable to commitment sales echo. will our the shareholders in to growth for peel and is will addressing for as also our in directly SI indirectly, right. QX, work a comment to signed citizens' of requirements and tracing. expanding And a are I contact distribute up reach global together means Ken

as aggressive profitably, and reach, opportunities to rope, our our So given manage and right direct expanding both do the adds sales our our is another partnerships, we with expanding people the through growth look and force our been business for represent but the through reach have dozen directly. through to brands, you indirectly described, to so by both VoiceFoundry,

and market So hot the I much accomplishing think very scaling taking are of now. the and in CX volume advantage that right we

Bhavan Suri

very That's helpful. you. Got

If Just one two to to digital just XX% are I is to monetizing here of quick those Thank one components. flat? look guess, you. you sort margin How it trying Just vis-à-vis customer works? digital how you monetization that and interaction. why and calls of for moved understand math, guys And actually the that gross is maybe interactions? going at end here. Regina I rep will kind

Regina Paolillo

revenue say by the on I get of an why we putting in is revenues. wouldn't reason that Yes. margin our outcome risk improvement virtue basis at the Digital

making as conversion as commitments outcomes, more the pricing deflection rates on are well rates. and We more to

on it fees then to have restructuring value fire to much we including messaging than you are our necessarily to our said, EBITDA, for be this the what anticipated, of in that of probably but that a our be of But the doesn't albeit do. topline, our terms the of stokes multiple some in in and to that cost-cutting had automation now believe XX.X% that. we it engagements quarter importantly costs, and clients seeing outcomes are drive at are tied to some are things that of profit. have the general, enough fixed So our we the bringing again, going that That we we or Not may cause or extracting we clients. sooner in got,

Bhavan Suri

job appreciate Helpful. and guys. Thank there. it. nice Got you I very it

Ken Tuchman

Thank you very much.

Operator

Thank you.

our For of have we next Bergin question, Cowen. Bryan

You may proceed.

Jared Levine

results. actually it's Yes, Bryan. the Jared for strong on Hi. on Levine Congrats

any terms within large of then mix the quarter? were Engage deals bookings parse within bookings? you Digital this bookings, and And In between notable kind us of there help can the

Regina Paolillo

Yes. mix. these know you point bookings. both is From on million, balance And just cover that had of of It's very quarter our view, of is some and Digital significant $XXX a the if of Digital noteworthy want typical couple $XX I side. a businesses, don't Engage. yes, the we Jonathan, a of to bookings under in million

Jonathan Lerner

just space. our the Well, of solutions public Sure. federal strength the mainly Humanify Jared, the let begin, in for me with platform sector,

We and really markets ILX pending market FedRAMP ecosystem on solution only have today. certified got the the Cisco

great had of the all state growth federal, DoD. strength, sector and public in expanding in in three So we

So that was the highlight.

our power Regina quarter. but well, top as as brands solutions in start, cost what month global I at a an expanded would contributing of nice only ownership. say one. insurance also, us lot footprint not We is of solutions that linear see And total with that commented, that the a increasing a unique experiences continues rely to we for actually third we we quarter how And those start around into better of have a the to and that global mix overall orchestrated the lower company our to continuing success on

Regina Paolillo

about did, thing quarter. had new public auto, three companies new mean have a the as state, XX have we retail into and fold. Jonathan the the logo now we X.X% bookings is, other auto, had in I And two X.X%. if sectors big said, year-to-date in getting I had order deal We We government at bookings deals grown we five insurance come grown think our hypergrowth. you interesting, very closed our look there. auto, right, a Yes. we new new into We

capability we So in we my multi-segment as said And in proud our is percentage going And of this felt are bookings, our Digital year the that be XX.X% script, automation had just to I bookings we the we most nine things even negative that relative in verticals the maybe to were are of of where positive. solutions. them. one think I did deals of the

addition those I the from view in say some the volume. would most of point are things noteworthy bookings to of So a

Jared Levine

in drop activity? single to element And implied of kind at a of you could rate. maybe Great. at an it's contract if color of believe then digit Is or of I a terms low for guide an just provide Engage, conservatism a that expectation looking kind of bit some Okay. there? the of of Kind XQ, in surge related

Regina Paolillo

And to basic some pending in I QX back quarter, there before conservative you my happens guidance, gave go macroeconomic and I Act insights some pending HEALS script seasonal the that paragraph just HEROES a the volumes. what fourth and relative to our in jump are Yes. that bookings, we context on the into admittedly or the around and if to depending there's

for we So just the because look quarter. in confident the We are our does primarily quarter. guidance third take wanted caution conservatism. that obviously we quarter to put But we feel the out. lean numbers that come quarter, fourth that give then very for we of have fourth the because down that great And to in did to we visibility have and fourth

different it be want that, would plan than management Our we to cautionary. be but

Ken Tuchman

us cetera. And all I you are our watching the even re-listen it to other lot the think really public reckless of about we companies, know, I right variables: do it's companies think matter a pipeline is to just prudent Fortune to the even effective we this happens, simply we different CEOs that not will doesn't and will of do a will that and and uncertainty et There is, be it it's a et when just point all and that we to pandemic actually how all we what for as thing instead in make be. am our cetera, reporting at a grow, saying, unknown to acting of though vaccine the that enough that listen of vaccinated as that and speaking XXX think are when the I will space difference have vaccine because just people when

up, coming We et a have major election cetera. will

deliver we prudent we time to We and ahead the we will and on forward. tremendous so putting we the capitalize to that our do are there's numbers confident that off environment very we to be can of feel very just we get are of of it's And we in going uncertainty. said, that don't amount that the That conservative. think we want to are and are best skis just

Jared Levine

again. Okay. Congrats results on the Great.

Ken Tuchman

Thank you so much.

Operator

you. Thank

Jason our Kupferberg America. question, For next of we have Bank of

Unidentified - This like for ask Good on Analyst Jason. Q begin. a I Cathy Hi may just question. will guys. is morning. quick You two-part [ph]

utilization little to wanted So of bit. first, like I down know, kind it a overall seems ticked

or lower thinking workforce, you balancing kind the of are maybe continuing continuing develop an on utilization, the half my hiring, you the to you. update in year in the how the is back in more geographies presence you looking of question Just key just And especially the maybe some of part guys are about how growing that investments side? second bigger of the margins a a then Thank and on seeing in? Digital maintain especially with are

Ken Tuchman

I last question. answer if how answer your of And So about Jonathan the or part Regina your part first then can the of question.

environment consequently, and the for but because of have couldn't tell more really we to looking highly experience So off we it about about come culture our of that not this highest level employed have relates executive never with we we in you is seeking just we people, such that up of that a frontline, is in that said, percentage unemployed I our gainfully are that something the And across just stay better high amount the leadership at of doing be hiring, which created executive saying that looking to proselytize the we believe excited for happier. And management And us lot to that the the have momentum have work us is senior of the brands are goes out we the it talent I feel now just hiring, want a years, globe culture is work us. and created. to realization ample that can second positions will XX for we the had is and that then as customer couldn't The without us of go-forward ever here. it. have on unprecedented business is we to longer have We to markets. the all to no differentiator middle all to seeking labor in way all Regina access home.

we always for been we successful because have at-home well business so the in a And have been decade. consequently, over

the been brightest best environment. feel we at-home have attracting in are We and our always to successful the

looking said, saw we what we simply as why which the tight fact I our as how shape economy, the cetera, going much it we as a recognized recovery, interruption soon you et how around a when it is just we we Regina in frontline successful we or gets, no economy proactive, about this that way, as any in top-heavy concerned as to this, to had would are how believe of capacity. that relates service it January our regardless at So ability And just And gets in form not aspects and not cetera. all at-home. you hire cost, on is then and which which or of want what started very quickly to not on bricks-and-mortar capacity, to we bit started on, where real were been this efficiency were et don't focused I of be relates believe XX it on was is the say, actually, acting the say program to just I coming, side our Engage to have on you pandemic we but is a

too estate estate. real excess real rationalizing much real so been come around on when has sitting our side, will so that be on we working we department clock the out other not And the estate

proactively be So real do at-home. rightsize shedding speak. And or it take due to the year so are will don't Jonathan, we next through why continuing way estate to thereon? from the bricks-and-mortar we increase Regina you all in to as our we

Regina Paolillo

question. Yes. I this not is I an a Engage think mean question, Digital

a just So of couple things.

First down. clarification, in our associate our Engage. seats And and of for this to utilization our capacity is relevant seats our it is is about

that and will more, with Digital is even further footprint has a other but Just lighter get most clarification even space, certainly light it professional services is doing. as companies

side, On Engage is it down. the

we thing are services said, company new at we a ramped. only of next major sites got as built sites the I now two we a successfully of this capacity, down As ramped auto and year for and because built are the that company is end that year. financial dedicated very have we kind have our That it's

new are existing picking option. So business logos all about a from from clients work predominantly net is home the understand right that, Please that new now really seat utilization or new, being global seats home, associates, them workforce, reserved while good our and of request. those they XX% a by clients as are are the paid our at are including that for for

we that into talked So fact about the action. jumped Ken

we active of some. most no have reservation mistake, point affecting are decisions are of of actually work usual, workshop we make to and view at-home. our about our and the in between their or be. internally. doing to with it which on reduction to XX And improved fact, with talked fact, include continue all reality clients still they that Ken of seats. I where TTEC's think on we In process clients very, the important, thought sites some leadership is they making those then are in and thought are developed a And has should But while our as of brick-and-mortar it, mix the pricing clients' probably their we through And have now very the is, their leading

clients going way on format us. the So to very for collaborative in a sessions positive now and

Unidentified Analyst

color, for Thanks it. Got the guys.

Ken Tuchman

Thank you.

Operator

Thank you so much.

question, we have next Vogel Josh of Sidoti & Company. our For

Your line is now open.

Josh Vogel

quantify But so you considered. Thank is your all for apologize impressive redundant. taking questions. between morning. any Good back I Hi. apologize calls, of and my I you bouncing was things could I baked if this forth Pretty Thank QX surge you results, guidance? commentary business? as around And some what's the in the of margin well as work maybe just you. half amount on into was what that temporary or up picked second

Regina Paolillo

Yes.

have on earlier. things. believe And are believe you and we look eating When I XX% basis, we that work through done, COVID-XX, at XX% articulate of would our I we think go that will, human rate. year, in-home go-forward that will full And all at bookings. when said by surge surge XX% we the keep that that will amount is bookings that home, about comment a COVID-inspired inspired, to year that behavior, is also a back I the to you made we that's way a a that So is, if were home, it's bookings, next of human more is, of things view consuming related our at kind of doing for more good And at work. importantly, types to about

they into So we change dime to are behaviors are are messaging. laid states we we way we of and there's new in working unemployment the in don't future. just no going that benefit believe a do that logos that that where the with, going on to those without get And that

and non-COVID the of this, And would said XX% has update fact because is done, Digital. at so we look when and can talked the way all the on it you half, is half is XX% second that Engage half pipeline non-COVID we I call it is maybe about versus the now, also first second on when

I a is and it's QX. and is all think I just important clients it we seeing about like XX% It are when and So in that, done you to said it's move. in but not when QX, think that is said, XX%, QX

question asked earlier. Somebody the

tech are part say, I helped We as start now to outsourcing seeing in of clients need strategy, my actually service side. that we move and on the

Ken Tuchman

which multi-country, need not at-home emergency those et they this types clients have and a active shaping that cases, they et cetera. help just of side, cases, really very historically, and are forming company. that nine hold for add temporarily only is in their put in cetera. Yes. and been seats, Jonathan's other we deals the capabilities, If large, they could form, shape I that of creating X,XXX, Digital and have work deals, were one you are group on are to very they Those months, are quarter, are take can XX,XXX-plus months, et we And the many as thing a cetera, in still with because been cetera, deals on XX what some as lot et included are, big-deal imagine, that, they of

already transformation be deals pipeline going of quarter they call that on people that we first know out. wait haven't digital there's there to significant take making when And going company, I very to even until going are it or depending if And start what ahead or the transformative would saying, upon a either at is fourth are there with whether place. to companies to So are they in been are the quarter absolutely are we least that are way are we vaccine a recovery. fully however vaccinated, want we on this, our plans

project industries any that you in been other travel with hold has as obvious are industry, on for massive put along imagine, the reasons, can there. So

of put excited just about fourth that So capitalizing will year, the Will pipeline simply cases, be companies that virtual year-and-a-half that in not to but that short-term needs we these still the standpoint, last cetera? deals been have some business are through. being done the the are I for, So only their in go quarter? are to that delayed through stabilize go help we in from a It's first working that last et in are are through work because to off a out very year, confident cetera, of matter there's just we will et still there. quarter, we they simply they want that they go

Josh Vogel

of And on in happening? these about to think that move feel deals those is comfortable they put where are all you some ahead But the starting it Or clients are seeing not or May, understanding as are lot you where programs or that helpful. whole, deals move a when a April pockets hold. That's of ahead? just any to making decision

Ken Tuchman

want to that? ahead you go Jonathan, with

Jonathan Lerner

Yes, of Ken. and the that and business caution of of iterations us. Thanks, benefits rise abundance Yes. cases multi-looks

transformation burner. customers. of We working very with have seeing help burnered to outcome. what to And with definitely moving approach solutions is to TTEC a talking And buying a disciplined back point we from are initiatives it's front orchestrate

them Larger environment, with on outcomes pipeline influencers several are really through lower now people, mid CX, There propelling that are Ken we So whether lead And and collaboratively the opportunities us in very we as in eight we to but the our influencers, XXL working pipeline. very maturing buying behind those transformative, of benefit. by in is and often said, still feeling and with OpEx casual that's disciplined that and helping multi-disciplined, are CFO led level capital the larger guiding discipline releasing nicely are deals, QX, those around TBD cases call QX, them discussions. figure suites right. the business

Josh Vogel

and Thank and this think you world pare you there's successful materialize virtual estate opportunity an do we for or that new that to real coming will model at-home and quarters, when an pivot to And the that. in lastly, footprint to regard about think months down? with rapid the

Ken Tuchman

Well, that? am Can repeat you sorry. just I

Regina Paolillo

Yes.

are plans, asked the earlier that there future, was the real at-home, estate we So a little think our question our relative just what Ken, is, much which right. reshaping It's portfolio? the the more are be as will in given bit to well, what to at-home pivot given plans

Ken Tuchman

Yes.

we as at estate real rate. are to that business. can. taking that we I are We as rapid said and early previously we feel very, well very the feel that prepared prudently well January, we I that. more at-home And we for fast started underway shift as rationalizing So And in as very are down and we a are on comfortable comfortable

process in So early started we what January. just you would to simply that say I is

and in We so will be have already exited where might we bit to et geographies multiple certain we we feel continue do top-heavy, cetera. leases like a

estate, on cost and all been have and to Our work the be quality optimizing goal is amounts our better all as have of more growing not this handling able a efficient areas but right have being pandemic, well set drive is multiple us other to real a team expanding, just the that we simultaneously in structures make during fronts, tremendous outcomes. invested and globe dramatically automation across while we now as to

Josh Vogel

taking thank All right. for my you Well, questions.

Ken Tuchman

bunch. a Thanks

Regina Paolillo

Bye, Josh. Thanks bye.

Operator

will we the turn that's today. Thank to Paul you over Miller. all for have And questions. time call your I the

Paul Miller

Yes. That everyone, Thanks, concludes today. for call joining. our

Ken Tuchman

you. Thank

Operator

you. conference second concludes Thank call. This earnings XXXX TTEC's quarter

at disconnect time. may You this

TTEC (TTEC) 9 Aug 202020 Q2 Earnings call transcript