TTEC - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to TTEC's Third Quarter 2021 Earnings Conference Call. I would like to remind all parties that you will be in a 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. Thank you, sir.

begin. may You

Paul Miller

in thank Paolillo, hosting and announcing earnings joining today. Yesterday, Executive a XXXX. us for our issued Ken Good and TTEC Global Chairman call you financial Chief to its is Chief Participating XX, September this period and quarter release call discuss TTEC results. are the Tuchman, Regina morning Officer; ended for today's our its press results Officer. third Operating

document third will for financial Form call items quarterly reflect about encourage within that report complete this our a While performance, you discussed information to quarter on also we read XX-Q. our XXXX

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

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

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

Kenneth Tuchman

morning everyone. to Paul good and Thanks

quarter XXX clients. including platform over quarter demand and solid bookings XXX quarter end-to-end this as continues the increased CX million grow. were million to service was the and performance to new Our XX% for Revenue XX for prior year again technology once

and current offerings both is with and service technology of a CX of existing mix clients. Our new healthy our pipeline comprised

us growth. are a and volumes, up pipeline setting booking Our backlog, for existing continued long-term

run last hyper digital travel, growth customer e-commerce, with successful fintech, with and and is this the natives year. demand serve rate XXX tech, home clients experiences. and rate now companies $XXX streaming diversified in versus accelerated growth across a third delivery, in growth million base well online amazing, annualized more. on effortless e-gaming, fitness, segment. deliver quarter verticals of client category in revenue These geographies the are period same We Our food health These their in an the media, hyper based stand personalized, thriving commitment to wildly and digital connected XX%

experiences leadership them place they blue in the and digital are that on that ensure the evolve, acknowledge their to they to and As they continue apart. economy capabilities. depending set must market companies their key industry customers to giants, operational customer CX unicorn their in scale success. CX they Whether chip or our technology born grow this recognizing experienced are competitive acquire, modernize to rapidly They obsession and retain, that is are

rigid clear CX complex complicated, moved detract the harness map. unable an value when they from brands disconnected customer that a and to lack are their and transformation massive these implementation, focus. from singular costly full navigate. road However, a mindset They roadblocks of The suffer are to awaits. clients problems because CX data solve operate legacy CRM antiquated is Helping they the They have experience. platforms. processes numerous, challenge our Many to

fully technology journey. connected solution vendors point seamless to customer it of mix disjointed their deliver and makes impossible addition, In

CX scale. transformational end-to-end solved technology trusted at through a As we these partner outcomes

complex that our for and district tough seamless Our systems, technology the challenges Every CX customers. engaging to effortless, and day to built are are clients for solve enable orchestrate help end-to-end these technology processes, was clients journeys services proprietary comprehensive their utilizing simplify across globe. platform our fluid, them

improve we're I their helping share Digital. me examples will with let as start how they of customer achieve experience, outcomes Now some clients TTEC meaningful

capabilities deep to are record world. from cloud design none have Working phase and can Others but outcomes now, platform to breakthrough of clients in of digital technology and hundreds delivery of our have every with the center expertise digital operations. the track and deliberate for value right breadth, successful match depth, through CX credentials largest We we've Managing unique may a our valued licenses driven our and domain and earn transformations. contact flexibility. operating with digital of thousands stellar extensive scale holistic deliver building knowledge IP say CX alongside results providers SaaS and to We we transformation our deployment been developed ongoing in aggressive they our own of clients. bring one

Our CX data scientists full designers, proprietary to manage take who loyalty technology approach technologists, our stack while combining multi-disciplinary revenue, and technology, our wallet ground our team profitability, centric to We and clients. vertical customer digital build, and share deepen a engineers, is the increasing design, IP customer thoughtful for comprised from solutions CX modern deliver environment up. fit to transforming focused technology and client planning, best CX by of

helping customer customer us our connected CX automotive their cars, and vehicles, always self-aware clients several automotive proof Advances largest expertise brands on sensors, lifecycle. so quickly automotive that domain for in our global are models future of leaning reinvent new moving to in vertical we're the example, are and For experience. our on business their automotive

CX plans patient are increase In operating efficiencies the the dealer improve to enable vision providers of built and solutions engineers and These dramatically seamless productivity. and customer are deliver the will supply include agile a transformation journey and improving customer requirement, that people the technology, processes, interactions a experience for payers. driving employee aspect that space frontline driven experience every building around the for Our better that architects initiatives touches chain. we're the inside healthcare of and experience

data recently bed healthcare national over by gain clients payer to treatment we a and information prevention XX%. reduced a developed another campaigns. our enable proactive for that disease architected external health behavioral ingest chronic create management. to targeted improve mobile internal insight to capability This population and AI example, assessment data will large feeds For healthcare health provider, a and In a admittance we into

vertical this continues platforms. in our we differentiated patient billion, aspirations $X as of digital. increasingly experience becomes continue to investments With our make to digital in impact grow our business growing Our significant to

on This leadership quarter we go-to further several players to brought strategic advance our market.

with We relationships and we technology are product partners. strengthening expanding our our continue new our portfolio CX invest capabilities to in with

our IP expertise solutions. we've Available of applications growth. solutions marketplace month cloud us with with CX increasing marketplace identification proprietary a technology technology suite to apps developed with the costly and enable is productivity, administrative customer our streamlines launch to of on are exciting our together designed example platform new protocols apps and and partners, integrations. CX matter for working of we're and leading our employees offerings Our without market market pain service customers how share. CX are burden these our of a our and providing differentiating These Based focus turnkey points deep indirect on bringing we industry TTEC in financial with of lengthy that IP This integration and initially workforce through cloud on safe pain smart direct our enable systems to need and Focused seamlessly work channels subject apps agent deployment the management, analytic for rapid eliminating another solution processes secure assuming of for the portfolio and experts. while added vital the frontline clients. new proprietary reducing

of stay let engaged to ahead me our help enabled to outperform market competition. vertical go faster, turn to Now digitally drive we continue our their and industry clients where segment to differentiation trends,

expert. we're and of digital While we are matter delivering purpose our building and a approaching trained unit solutions specially in dip with built subject specific industry business our technology own combination

detect operating AI center vacation enabled of proud trust For building we're our and eliminate fraud. where online own investigators and advanced example, are for excellence and governance an place modeling global data using our online market safety to

unicorn created fast to our service our own to accelerate based speed our fintech advisors. for AI training financial platform For proficiency we growing

growth we proactively accelerate next model advisors processing digital healthcare our with and trading analytics to best Gen And manage Next by intent fintech to arming platform, analysis mapping inform natural help interactions. own created health highly predictive a crypto our sales. currency a using language membership advocates actions and we're proprietary our engine complex for sentiment For and insurer,

by from home work to optimize global a continue and expand and shore, our footprint clients mix providing of delivery We options. offshore, onshore, and near

global expansion Our that models, announce diverse set a the delivery of now we're in our locations, Colombia delivery strategy business pleased I'm continue includes in months footprint expand and to to for and will open ahead. languages.

daily. Since been a update four Now to Unfortunately, and forefront are moment began operating to companies decades business I'd provide with our do. the heightened no XXXX security that we on environment of take has like surprise governments globe at in a occurring incident. a ago, cyber incidents threat cyber across the it's brief the nearly we September everything

rock diligent and quickly have and for event. we decisively the identify, operations solid and September been environment been The protecting occurred XXth and their to cyber and people. and our moved customers, Our incident our contain, clients, our resolve in we've on securing

the capabilities to details. the constantly clients built radically our with We any engage to future portion These we that either client profitable short Regina financial operational are engineered from customer matter ability clients our a organization one to everything from, a automation, come incident and or our technologies want we do. impact or business. not were provide the relationships. that are testament elements offerings reimagine loyal quickly, we a move can building digital we've build simply expect Our In omni-channel of wrap confidence. helping our our additional operations. reliably, partner performance. is and In To respond resiliency is with rapidly and the AI, the enduring manage lasting, our across in now optimize And all view how where in had landscape up, globe as base. to fully business, a will trusted they leveraged period do earned they this trust temporary authentic, and on the isolated an doesn't natively it and that and of digital on impact are business into so they our they our being changing to we're

of ability a own. capabilities a digital with spectrum all of our experience us to CX positioned distinctively frontline in category of offer full operational clients combined Our decades

we changed. As growth, next the not of decade our strategic initiatives longer-term on embark have

by offerings, relentless building and and increase our base, expanding our accretive our CX We are executing our client growing footprint, differentiated partnerships, pursuit delivery channel market to in acquisitions. share new adding strategic

to including Our attractive dividends. strong growth, profitable cash gives increase and several a sheet, avenues well-capitalized flow, to leverage ongoing us balance shareholder strategy value

that future employees would make equitable, incredible a continued ESG progress the XX,XXX globe. is continue Our commitments and inclusive, we plus across Through diverse, to without progress sustainable. the our to not on be possible initiatives, build

a choice employer, named to It's the Magazine meaningful that of and large wired benefit company the into these and last We hard efforts communities earlier CX this clients, and and be the true TTEC As our partner, top by Forbes our operate. people, of female investment Forbes opportunity where the of core one culture, one are in year XXXX the of just of strive are we making our shareholders, consciously of decisions companies week that named world. part honor a us XX employers friendly best [ph].

Chief experienced services we've With and TTEC’s potential want Finally, team created our a performance. as Regina prepared roles, technology have executive that Chief dynamic a us role been as deliberate exciting in Officer, Digital of tenured Chief take Operating we Semach, to Financial and bench. share. newly to shareholder accretive execution announced to Regina’s enable and fortifying winning Engage, the TTEC experience and Paolillo client M&A. Financial to are their operational the as financial full an me to held role. leadership General I I Global Officer drivers value strategic we development, to Dustin Global a With in to and of created platform Gartner to she and have and Chief Officer XXXX level tenured Genpact Partners, is succeed growth, These Officer. our key in recruited innovation, unlock decade and Regina news To execute at Dustin TTEC TTEC’s the become and Operating CFO. well and our roles Trizetto, we CX some Regina TTEC diverse fully past creation. strategy the Administrative on of created focus for with strategic was Atlantic technology this and and positioned intent include Dustin with her combined at newly TTEC developing that its new to Yesterday new

relevant CSC, functions finance in he's cash including a has experience, process drive and Dustin margins, technology to strength noteworthy services months DXC, executing and career Technologies, and flow. XX the IBM. building his past and the had Over in demonstrated business revenue our Alongside and industries growth, increase Rackspace TTEC outsourcing expand

our commitment support. close and off I'll to global for clients their to continued thank Before and serving continued loyal I want to team now for Regina. our thank it our hand TTEC their shareholders

Regina Paolillo

Thanks strength good want of Ken’s everyone. first fundamental comments and overall morning to regarding the Ken I the business. reemphasize

offering footprint execution, have platform, Our to integrated global market and go portfolio, more diverse never delivery been and relevant.

strategy is bookings, market resonating sales in increasing pipeline. and expanding Our our and in of revenue shows the backlog, it unity

deal executing digital will deals totaling bookings acquired new growing previously points XX.X% the year-to-date Turning a guidance services, coverage, financial healthcare, XX million The bookings quarter. in million we media. LTM technology, pipeline a growth of increased above articulated of recurring XXXX. telecom we're auto, XX.X% over revenue rates. signings, overall our or growth business total relationships. bookings bookings of pandemic work With perspective in third new revenue billion, bookings and retention, third next or our per we our of XX% a average client significant bookings and basis XX%. XXX XXXX highlights. the XXX months and our revenue deal confident excluding related had to vertical quarter in your with the million our segment X.X delivering million in quarter From was XXXX The XXX% I We to year had in and $XX Engage XX% revenue share increasing X.X full backlog size. of multi XX We well signed XXX by handful six

incident we was From third incident. year-to-date few cyber segment return quarter clients. address beginning and I'll swift ensuring our minimize Engage the shareholders service exposure. important to into the Engage take the the top jumping execute and only note security performance, that of to It's affected and a safeguard and by portion clients, to only the that our a financial partners, our Before priority minutes to people, data any September a

affected. worked business had had impacted one-time Our remediation, and The protocols expenses by a risk results. that adjusted impacted we to and Engage the management income operating five restoration on immediately response the million relatively approximately services The third activated. XX client quarter investigation compliance were By lost to the negatively activities. on of systems XX% third operative by were Revenue was tirelessly EBITDA restore continuity related incident and approximately XX.X including negatively modest impact we incident completed, and the the days and teams within were our XXX%. day the and million profit and revenue system a

from five-day share our the share programs to this I in lion's to recuperate beyond expense support trust, insurance personally event. the upcoming our and clients, further period dedication, post we navigated understanding, the as cyber over partners various of have expect this employees, this not lost through pleased for the experience through quarters. am to We event. profit patience, I expect do acknowledge we impact client you incident and their any incident, that with experienced nor we to want

security Turning guidance. on and our organic purchase from organic attacks, growth high cybersecurity tax year exceeding loss of one-time the the from the would third marketing, guidance. increased Engage XXXX, XX.X sales, third of XX.X% security Taking adjustment been results, acquisition, profit and our to a XX.X% predominantly in contract in basis the in rate. increased our a XXXX in performance planned. million of quarter growth end decline to Further guidance loss XX.X XX.X%. revenue our X.X% R&D, XX.X% our or term and for have from The for and increased Non-GAAP accounting ramps the prior government results, X% the large geo contract in by the step-up revenue XX.X XX.X to consideration would cyber the growth quarter lower Engage, to of prior of were prior in to on operating all the EBITDA short deferred million been or adjusted end and versus the Adjusted cyber revenue revenue of of Avtex unchanged financial revenue the well X.X% incident, the loss XXX.X million investments income rate have revenue income one compared expansion, of in associated The government the million $X.XX, end into guidance. exceeding operating XX% year of consolidated non-GAAP our XX% income adjusting the adjusted incident, revenue high in million. loss exceeding was decreased the a due was high the the was the time the digital revenue driven with operating EPS revenue XX.X%. high-end XX.X% revenue the period and Non-GAAP to EBITDA our year of in over relatively above which revenue

Foreign revenue, Exchange our positive on had X.X million million a operating has impacting on business. primarily Engage income, X.X of impact and

managed now the our recurring professional in in third guidance. line to systems quarter the primarily quarter to year XX.X%. services million and segment integration, to XX.X% CX services our digital our our The reoccurring revenue the subscription XXX.X revenue, of revenue high-end results, grew Turning with base our grew period from increased prior third compared XX.X% cloud segment and highly

a compared or prior investments primarily delivery sales. our one the Client CX our purchase we amount its in from were revenue existing Avtex million large We partners Microsoft Amazon platforms, deferred also in XX.X% XX.X of than guidance. are clients lower the tier Genesis XX.X the was practices, platform, purchases Non-GAAP impacted our Connect product margin Salesforce accounting in from operating are the a higher revenue, the higher which was combination our of particularly income in line usual and usual quarter’s and XX.X% offering of process than technology or offerings. digital with a and margin which quarter, growth omni-channel product pleased our to and year had omni-channel period million with mix, primarily healthcare implementing. The in the of by adjustment IP

meeting we're adjustment, revenue would approximately Excluding of the million margin of backlog digital deferred confident XX%. XXXX highly operating in XXX With revenue income XX.X% values. guidance, the be XXXX revenue revenue representing approximately our our

revenue X.X% over high segment million, back year XX% end of prior Engage the cyber of third an loss Our year-over-year, the growth exceeding reported estimated Adding from guidance. all the revenue increase the XXX.X been the event, quarter our approximately would have period, of organic. revenue of

segment’s new and retention verticals, highlights Engage all embedded growth growing EMEA a travel, Our XXX.X% organic our of include our rate versus XX%, with growing sector revenue and digital XXX.X% born in lines and XX% auto, of LTM Canada previously. growth growth expanded healthcare, significant XXX% and hyper-growth business technology a contributions respectively, in and regions base, from revenue

period, being ramp programs reduced to income intense replaced in margin over compared related a with chain primarily significantly premium us the prior of quarter function XXXX year time price. Engage supply non-GAAP is to challenges The performed to our compared COVID of the XX.X% period the decline XX.X COVID and X.X% were the and operating declined enabling The margins margin margin prior higher million now prior longer-term programs. period. in segment’s to in to the higher Our in year was year X.X% million third XX.X guidance. the to The

the capital Engage will margin our balance print, mix, range improve our As the now operating expect to derived higher of restore in scale, we to sheet our margin I increase working non-GAAP of from XX%. select and XX% we metrics. delivery share, offshore offerings, percentage continue and revenue maximize to

primarily million, XX is sequentially. our which the of from quarter decline days debt down and the of or flow cash days XXX.X XXX revenue XXXX particular, in percentage decreased acquisition distributions in from prior XXXX XX.X the the XXX.X third represented prior million the was a credit facility. XX.X XXX in to million debt X.X% for decrease of was from fixed X% to facility September Third from XX.X DSO funding million increased year. related compared cash XX.X in insurance improved primarily and to utilization cash were improvement primarily and asset the period, quarter in days offset of XXXX, due flow by due The payroll in operations focus changes million continued to XXX.X Capital generation. to assets. million. capital related proceeds. The year Net third XXX investments XX, as revenue working technology under and million XX partially borrowings At million our the in our prior related to expenditures year timing quarter is million and of capital to on or our

in reduction in the or to normalized tax XX, XXXX. third rate quarter record a quarter, paid paid year. of a October increase to dividend the tax due on anticipate dividend represents the This XX.X% dividend semi-annual semi-annual million, X. on over The XX.X was paid XX.X% of the our which was third of primarily October the amount of October XXXX prior in XX.X% is we shareholders in point In a forward versus Our of We XXX approximately mix XXXX rates income. XX%. basis jurisdictional the $X.XX

outcome transition remain end-to-end term experience and bookings, I In prospects. our revenue experience encouraged to in based an and revenue It to our by are customer highly Before leading, that shows we growth, we impatient guidance, on pipeline. as are near service I intense we solution. backlog, a differentiated market emphasize customer winning longer and want our

and Adjusted over rate compared strength make the which the revenue by quarter of making in is third range Non-GAAP Taking strategy, expenditures our share XX.X% are of an year Other our metrics continue prior cybersecurity earnings the XX.X% in release. full top capital of the the of prior of share estimate guidance prior $X.XX, approximately increase XX%, in investments section year line into million, an to an year third year. the million, over the over execute EBITDA rate prior XXX.X operations of to of year a XX.X% count XX.X%. Importantly, compared year. XX.X% increase to on of diluted we line per account X.XXX in advancing effective impact earnings income of and approximately of quarter commentary of will necessary $X.XX platforms. to Non-GAAP GAAP outlook press and the of XX.X revenue the operating the scaling guidance and and of including underlying [ph] from our our business, offset year. our previously we or relevant XX.X% provided. our XX.X% the increase with revenue, growth the prior over we X.X% of estimate XX.X% an of increase a in XXX.X include of results prior year approximately we full billion, tax Accordingly, incident, million. Please reference also XXXX business revenue

quarter. currently between EBITDA to XX% XXXX XX% want and our XXXX which This TTEC’s revenue the includes and XX% between growth X% X% I in revenue and in full X%. We shared I EBITDA growth growing growth close last Engage digital to revenue the growing range. XX% range and directional rates, I expect Before first revenue reiterate the XX% and to XXXX

in with Paul. call conjunction call. and to to to now XX%. year-end between and forward earnings XX% our the this estimate digital's XXXX guidance back grow XX% and X% grow to Additionally, EBITDA between turn EBITDA we We finalizing Engage I'll currently look

Paul Miller

Thanks Regina.

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

Operator

Thank you. Instructions]. [Operator

from Our Maggie the of of line first William question is Nolan Blair.

Your line is open. now

Maggie Nolan

kind of your you. about did you bucket? any growth dynamics excluding where those on incident general I five top just impacted, or of comments Good Hi, cyber clients? health incident. And about then within question can a within have prospects that growth top talk and the impact did thank it the clients that the

Kenneth Tuchman

do really impacted is Hi clients would Maggie, you? impact. had them only the clients. of different more our operating, with them you and clear. while being really how just that, cautious an had -- with different Ken, a What it to gave not it relatively it cautious us simply more small to most It is, And Not impact is had us. do had with I the to actually say are of being all group systems we

we good event. I and would to were I'm extremely but very companies, at feel clients well and the like pretty shape going responded, stable how we're of you to to say in which what entire So, appreciative were right a now names our is systems throughout we not much the able maintain disclose or etc. clearly speed we

Maggie Nolan

in that's helpful. five it, Got amongst dynamics just And top then and general your clients grudge prospects?

Kenneth Tuchman

the them front. would top multiple them. there also I from expansion right growth I'm not Engage say the is every and is digital that thinking but in case, coming the just coming almost What front, now of three, from And in cases on

we're on or do you sides. to anything of our add capabilities Dustin? want both taking advantage seeing people So Regina,

Regina Paolillo

of of embedded XX, our just and to that, top bookings I in anywhere XX. would majority XX% a add have to XX% base, the in kind in including of that from up our being our top ends we continue good

say So, change I there. no would

the to of year's a think week's operational one guidance, know Engage also, looking relationships view, LTM compliance and without at can at and into investments and them rate seeing from you blip back a that a that that and And almost go can clients closely our market, our be a in improve the place, today, In retention, than reiteration taking intact think about, clients. CECL cyber point overall to with sure the improved. through things excellence beyond making we we stays lot and the from revenue that the You coming that we're our time if groups of and time. every had that where look XX next can XXX%. XXX%. to that we and that ago future. that a are this so in is to And And we these machine you months you have were from talking the contained that place. particular, relative right go going you I but, they've largest going feel is very versus things good bit We a trust And take comfortable so above I above with grown work brand of it Also, XX base. client was and our were where to there. in very of opportunity again, we're are event within growth making we in less have are months But

Maggie Nolan

thanks you Okay, Dustin. congrats Regina, to and and

Regina Paolillo

Thank you, Maggie.

Operator

you. Thank

from question Next line George Sutton the is of of Craig-Hallum.

ask your question. now may You

Unidentified Analyst

Thank is recent my taking you. highlighting? about for I for right if direction. Adam or was drivers there's evolving pointing George, Great on questions. any bookings pipeline to and Ken in hear curious pipeline that new worth thanks of all the backlog and This activity

Kenneth Tuchman

of even almost mean, where Boy, there's I start. I to don't myriad I things. know a think

And services I saying continue in longer like differentiating to goes from the is. without look was battleground any no products company any the As where competitive true more my commoditize as it services, experience. question platform is major and that script saying there's other

on as the until reinvent we're consequently, asking traditional substantial and the them They're well basically longer as internal that no side, them help offering now their of of got winning up we side taking digital people us realizing on really client’s a captives who been technical business differentiated either with are what isn't saying well our of side. consequently, their that to coming and us our to they've have into just partners, Many they're as along their heads. amount the we've as so to enough game. on to And from pound have historically Engage -- been experience advantage

hiring. not very, it be labor of that that experiencing the tends many environments. as experiencing properly our thing to other the their maintain well some markets we're seeing really wage, being more And captives The no pay is tight their difficulties high of that providers are secret. are to as we're it's tend competitive and a able with staff that as to others their in many We etc. frontline clients to experiencing getting very the of And relates own provider are difficulty our quality

currently amount of that And the always amount and Genesis, like much companies the advantage technology they're already partner the of of that area based they're then asking our huge away our a possible, environment clients from the there we're to to are cloud clients move as consequently, that to to hosting to included staffing that get and how only that so seeing with largest that to fast to moving us. not requirements as because world's basically they their and business coming the awarded cloud. the the is but in third premise asking take that to to say meet to and us us to to and being opportunities pretty I'd business we're increased etc. of us and Amazon, are using, and transform cloud these clients looking us that therefore, increase an more more saying they're Cisco, is ability the goes own out of without It there of are moving staff helping technology, push

are increase got estimated top borders to open, We we're try but then from accelerating economy you've the are XX% drivers. dramatically now travel deal myriad increased now is sector, with clients on you demand areas that travel. U.S., in only for the for a are what's In that, travel in to all we the So add increase not seeing seeing right be within and U.S. now that the booming. example, many of like standpoint feel this another travel right expand of things of the

compete go bottom to at Fintech arsenal startups. on. and that every area now with just could But the Fintech Fintech it seeing large virtually and and different right with line this the opportunity. on is growing very we're all on as vertical that banks in the across seeing So all point. strength their as we're is our rapidly that's companies areas, And startups, adding commercial are another well I to single

Regina Paolillo

that percentage logos having if in that the XX for new about I year-to-date future we logos, that sometimes bodes demonstration the important good them. logo small, of logos. of of could but well And These terms add couple new I of think just come have growth we in are reliability a as points level future a new thinking rate, of grow

in the was deals think script, million, size. about size, are XX you segment it almost the our as the in quarter X.X but times said multi company Our deal two if average I which deal is overall

the on our COVID make deal demonstrates we're when of the magnitude replacement. the all capability. comment just to want I of the it So the strength combining of

and know, a in where last second of of really half of angst replace we we this had You the the beginning year year, that. lot

we about If primarily million bookings, vaccination our in have what XXX of would XXX year-to-date, last to call related you pandemic XX we related around million year. of our think overall

done has team last year-to-date And of XXX that the last important. business not very least, that's were good speaks replacement got we bookings, was you the year. so we've that's what a at to that about three about margin, but if Engage our job executing look really which million So in and times then offshore

back getting nice offshore, for the well operating So our to which between margins. and bode will onshore balance

Unidentified Analyst

guys. Great Thanks detail.

Operator

Thank you.

question Mike line of Next Markets. the is of from Northland Latimore Capital

may now question. ask your You

Michael Latimore

nice Yeah, and Regina thanks. congratulations, quarter Dustin. and Great,

the a driving more significant number voice messaging, year-over-year. solid little more I a On the number color the what for XXX.X% you that? of a retention amount retention put is it revenue -- you on that what's a think just on and gave color seats that, more revenue is Can bit the kind handling number is little just healthy up, calls,

Regina Paolillo

base of So would and retention, retention start right, just it's existing of the first function, I revenue. by that, a foremost saying

volatility less volumes. turn have and we our in So base

were XX% bookings, Second, the about that talked that in embedded it's or is to sign base XX%, a the yielding. right, we

next, digital back find time transforming would very go clients base, it's new and our I to the easier would in interested I taken that were I that, embedded to technology. that Second, business in say on would more to It's digital for say guess early say, their I go been execute more digitization.

come Now being handle types talking that what in calls. voice you're of able of the can to digitization about form non

where make a or the So transition associate technology, that the part we the it's we commitment game wherein outcome that's skin associates better our we're leverage on. number an of the in with based base of also can in finding volume handle we the it. a and that technology doing put But embedded of

So add? those are a couple want of things I'd you mentioned. to Ken

Kenneth Tuchman

seeing area, been to I and would is is something pushing The messaging that different start that definitely our in channels. so increase we the that part for, the we've voice all mix across etc. elaborate only area, a opportunities we're really which then textual based more on of the

to textual they offshore, And as handle and in we add help omni-channel, feeds shore, more so potentially more business obviously, gives use Engage, that capabilities better us for well. as are then more to and clients that that their business us, etc. this choose margin and when to opportunity digital markets us, etc. with other near business to messaging

that's all would add. I that So really

Michael Latimore

the And then acquisitions? thinking just category front, about you're of of kind additional top I would guess, be terms acquisition on what the in

Kenneth Tuchman

our our goal heard us a is business billion dollars. to get say, digital you as Well, to

organic going do to M&A. and we're of a So through through that combination

expanding we what opportunities you say And in open clearly, to would as have area so Engage we our we're out strategic secondly, business accretive opportunities we're the would And of and that our be speak same out it relates pay something, is anything competitive so that stupid I to geography rapidly then price business. digital to it's for problematic and think very there the eyes our But that there a to overpay well. we're market that, is going and not we time, not to looking in -- we actively need fair to to that as for are future. so at very so do and the

Michael Latimore

Thanks. alright. Yeah,

Kenneth Tuchman

you. Thank

Operator

you. Thank

of the Joseph from is Canaccord. of Vafi question line Next

is open. now line Your

Joseph Vafi

promotions. Regina congrats Dustin you missed growth business Ken? what morning good and but clients guys, is might well-deserved have Maybe percentage now the on of it Hey to did I and hyper say

Kenneth Tuchman

No, million revenue our and to said growing XXX rapidly. of no very the percentage growth is we coming now

Regina Paolillo

XX%, yes. to XX%

Joseph Vafi

there they and of new hyper growth a numbers them chip Got upfront those hyper or smaller at kind -- look blue are it. a is is growth are the than, traditional same business they differently say, bookings And those grow book a it bookings of kind -- with when type clients, guys? the with of kind you or company, of do

Kenneth Tuchman

Fortune That's company. X with XXX that smaller a when happens that good nothing definitely up bookings I'd XX But is then speed question. what they catch to front. very traditional of the they are is say fire, like a

the winning we I so, mentioned that And from. categories are business

those are. some of companies imagine who can You

in continue dramatically come dollar may and many become growing. fold that larger just or six up, on they to then they I'm making XX on so keep but and a client, And as months size, than it million the months

types that's we're So deals right a helps I month hope that and signing uncommon. of between but And, not four now. those three of

Regina Paolillo

would XX average going ones clients held I done a the the to I been it's be we've mean, there very using four you're I XX And, clients can million an over there's run focused have every million. both point you to number, think XXX of about mark. so in think gave years. they're clients last it's not for four. million, but going we're have but couple and we name or the of growing million, million a And But at We've XXX to right, $XX that focused. that day, of there's because we so have -- of also and rate -- this that brands, are already of job just X I years that great are now, clients the lots this that XXXk on they

Joseph Vafi

get where customers, is side what versus just trying feel the buying? and those mostly for what the and Engage, a on digital And they're to they're appetite of buying types for clients great. are Engage they That's

Kenneth Tuchman

Truly, board. the it's really over all

enterprise, we've then decision to the of the conscious it to be and gone the enterprise, have reasons large focus is mega kind made because now now One enterprise. acquisition why tends digital of for on to less with really Avtex

what whole us. provide you'll very more I up some announcements to and phase clients that capabilities that that of will future for segment level see market the is will startup open near new a of think set that entry in

hypothetically, out really them the in is, we'll what energy that I to will large the is and us had say that these typically we out some offerings start then historically, when would so you to energy would they is start I those just we've offerings for simply near can grow make of in wouldn't only with let's workstations, tons into to what of those make that out, future the want platforms. And that enterprise what we what that put sense and start that say have very XX you So clients in they justify our with would types sure and areas. say, of companies

Joseph Vafi

sense That front capacity just that's a And know of little labor bit exciting. more environment. that and a I saying you on COMMENTED the others got lot then makes great. than in this That's you've

thoughts on being to sounds control guidance, the updated increases it able have on but it latest labor updated pricing supply your just to and margin pass side? thoughts on some under you Thanks. more given Regina, clients, Just, like the pretty cost well,

Kenneth Tuchman

this on been going where that and we're inflation the but today, needed have in timeframe were got all the we was the increase of very to as what is entered basically And most other we're something etc. I clients. of workers were for not where dialogue Regina them the knew substantially, bottom we it's saw very least marketplace saw, paying, A) do multiple would we of showed very it we going line say XXXX there's of And react we we for, increases. that, resolving getting that wages say, clients, doubt it's to price we've them getting correct three wages necessarily our no have we our years on that this then can the me. we might is clients be companies to there's clients. we what And we off, showing far to were wage have up I part, how we increase And if pricing. successful is, XXXX, we I showed with not the seeing of ahead now and all frontline at Look, what went true labor been pride as and competitive proactively front fast ourselves our pandemic that frontline a when our of need pretty of majority XXXX, into our issue. very the to to with and the We in the avenues proactively now significant open XXXX, want the we -- data,

marketplace. simply the hire avenues lowest of people that have so requires, just that market is pay the and quality what the best we the One we can in attrition the

The that is nearshore some other we them, blend that pain. blend environment with of the some ease to

with that can lot that rates, it so hyper the The that the digital blend to their we're we of other a really And the automation taking some higher the then is introducing pay ultimately that some it we're advantage but of is offshore. that offering account. through we obviously other of solutions offset reduce they afford costs labor where can to

and that of advantage costs saying, never as are clients budgeted consider taking would absolutely digitally this we I what new we it and but it is some is line weren't can how it, as these you or so number our you us driving only up, more us, tight helping the it's actually market labor So Engage not business, top benefiting ways, well say nearshore just considering that offshore, that they're clients would getting with who now also is, to can in help afford us for.

So and know. denying tight market pretty a not there's in we very labor it's U.S., most it's as many, just this feel many no for in you is markets the good. But the part

Operator

you. Thank

from line of of question Bryan Cowen. Bergin Next is the

Your now is open. line

Bryan Bergin

competing Thank the TTEC against, engagements smaller that's who a morning. this of combined Engage Question, or contracting. signing Is client I'm than it's good profile around common type the when client list and these curious imagine or Digital and you. there combined way engaging one you're a Hi, typical? you're I

Kenneth Tuchman

to with well go we're breed as deciding clients it's part. go with work, a in technologies. desktop, their to and sides, somebody as anybody the almost they combined digital faster It's their a saying On them EPAM industry best Accenture, vertical really with their that competing Int what not are for pure provider billions do that's -- the on [ph] or existing need the Globe understands either with do handled embedded we're And understands DAVA, and that to do, the most really and customer are dramatically of base etc. advocates pace talking scaling interactions, at our of they implementing etc.

competing go an really are -- I end-to-end a it's we're separate would Digital when not is with one deciding, shop. that with we're partner. stop separate company Engage one what them and we So partner It's not to providing a kind that's a TTEC, a going of say is, truthfully

Bryan Bergin

within Engage, appreciate how then like update versus support acquisition of also natives, the has mix the fraud areas the much a higher value in on areas? you of and sense some give customer us areas on and support digital Okay, can customer the the traditional been

Kenneth Tuchman

don't that make it can actually that don't offline to know I get just but because you happy I you I top sure give have a be number Paul and Dustin once. my to head I'd

Regina Paolillo

question, understand are our you I business sure saying mix? not in what digital the Engage I'm the is

Bryan Bergin

fraud within the customer that understand to of margin the support, the streams mix like areas higher be? Engage, trying of acquisition, some what to businesses Well, evolve just

Regina Paolillo

the to you're going that I are Yeah, then if within the care. say of take would I the you CGS mean, lines take business

the XX% of on business got the probably XX% quarter. depending You to

in the terms the of growth portfolio entire its our point. it's is in quarter. of of probably significant. and out XX% healthcare peak For example, at multiple very fourth of a around work in seasonal multiple say base That's terms stuff in our its the licensed margin, this a that that But is

Bryan Bergin

you thank much. very Okay,

Operator

you. Thank

question is the James last Stanley. line from Our of Morgan Faucette

ask now may your question. You

Unidentified Analyst

about questions. is for How you this at quarter. about Looks and additions sustainable about the forward? like headcount James. least you a of in head or your mix perspective do how Digital guys, the my think X.X% on between that consequentially you Hey grew Jonathan by filings that level appropriate net and going the Engage based think headcount from taking Thanks of for on

Regina Paolillo

the QX a you seasonal business bump work. in think a we have QX that for remember from when to up have I to we so Yes, go

to hit and prime is season healthcare long in for October for So, for Xst what time happens prepare that. after which services that not retail that and for up order hiring too business we're

to our those up look Engage that XX or a and predominantly so, if are from XXX XXX $XX QX and folks going you coming you at look If guidance more see you in is which like less our to seasonal place. million pick at serve or at business million

strong you So say see QX as year. strong, expect and would the me, come bookings QX. strong I bookings traditionally that has we excuse lot a a beginning the QX the had we a down of strong got expect of in we not and back as business much strength because and a

Unidentified Analyst

inflation had in Appreciate pricing the of some wage the that competitors you your are pricing you the aggressive of And some despite earlier, dynamics color. come mentioned with seeing of market?

Kenneth Tuchman

a I we're than just What simply share typical of percentage winning that business. more would say fair our or

actually know. don't are I so and higher really can't just because conversion rates definitely Our I comment

bothering has they're companies even considering that market with with names obsessed at customer using they centric, we're not the about say client for that of quality, a etc. really, even customer of definitively care is is means all. don't not consolidated the client. if you I And compete don't probably those of a better kind think or term and frankly we that particular That not calling would out I lack that there percentage rather a marketplace than

record, pump them And count your left and it is speak and for have the would basis good fewer that's don't say just I it's could have on Many just the scale, they if to And you have industry regular hand system, is of the where so I processes, five than into there sheet, a balance don't is so they companies they we it's -- us. these that have don't then think, the the the smaller don't etc. going. on track

And the that businesses tend we the be kinds are targeting, creating we of opportunities. to so

in providing we we commodity come mapping, multiple that is requires type via technology that very that some those much deals are on. that that converts based focused not where the We're to deals The there consulting in involved etc. means capabilities are coming of waiting are on are We And to in. level RFPs kind for we journey not tend just of then which a assessments, capabilities deal are focused requires ultimately then to ones client. providing be to RFPs transformational

Regina Paolillo

from from we surveys we mean are discussion it know on know and in we I overall costs. premium into from and do that we some we assets is losses. and party the will we Yeah, so are doing but third price, not churning come feedback our get better the drop and clients, better What side wins our capabilities on that of your the execute pricing the that us and rate, therein we let have digital that

of augment So if do the or quality have cost we is more engagement an associate we a offshore automate, how better. particular the or mix, do out so is issue of do the how and we yield

as to opposed the way cost we as an rate. win our see and dropping that us for So opportunity other capabilities to it point towards compensation

Kenneth Tuchman

competitors point And just they're -- view. a outcomes and or they And etc. that's different that a look value total approaching a -- are the on. deliver from CFO don't don't of labor Customer ultimately of Chief that our so So, augmentation those it cost about -- outcomes Digital solutions about that's called Officer, ultimately how it we relate can is more be they're not if that defined a can Chief -- variablized It's the even just market to, most focused us delivered. defined Officer, creating they

Unidentified Analyst

and the for on roles. Dustin guys Thanks and new the Regina congrats color

Regina Paolillo

you. Thank

Operator

now the Miller. your I will questions. have to all today. for you we That Thank turn is call back the Paul time

Paul Miller

This you. for a great thank call. Have your our Thank earnings concludes you day. Yeah, participation.

Operator

This concludes call. conference quarter third TTEC’s earnings XXXX

You this may at disconnect time.

TTEC (TTEC) 10 Nov 212021 Q3 Earnings call transcript