TTEC - Earnings call transcript Q3 2024

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Operator

Welcome to TTEC's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] 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, and you may begin.

Paul Miller

Good morning, and thank you for joining us today. call ended its September this for quarter hosting period the XX, is to third discuss results TTEC XXXX. Officer Kenny Participating Tuchman, on of Chief TTEC TTEC; Executive Chairman Ken and Financial Wagers, and Chief Engage. Swanback, today's Executive Officer Officer call Chief of TTEC; are Shelly of

results. Yesterday, TTEC financial issued release press a its announcing

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

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

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

description more please Form For review detailed annual report a risk on our our XX-K. of XXXX factors,

the of section. directors call to formed the about XXXX release considering today of advisers proceed, consultation mention Relations Tuchman's be and we to of this any Mr. press is XX, independent take in TTEC financial replay with that website on Mr. and to Board proposal company Directors our will XX, proposal. questions special in a and committee our on not the Before A conference that September under to shared want the address available Tuchman's legal Investor Board call committee I will company's as consider the Private September proposal independent the evaluating

call to now Ken. will the turn I over

Kenneth Tuchman

Good morning, us you for today. thank and joining

our continuing is we X to remain winning new year Across focused a and As our quarters, for of clients priorities: strengthening strategy, financial our AI-enabled agility diversification shared transitional enhancing TTEC. our solutions, and on in performance. portfolio XXXX operational improving execute prior our the company, CX

focus quarter macroeconomic million, EBITDA third as these clients of to decision-making have the the The and was market to CX and environment the The and/or In uncertainties mindset. delayed revenue non-GAAP was cost policies headwinds dynamics continue wait-and-see near-term and business. of the Despite close teams election $XX our industry select create adjusted XXXX, on the million. to savings. around $XXX realities, monetary this added new Fed's continue

CX scheduled many largest regularly and with CX more new The a business current remains environment. navigate advisory highlighted course a productive conversations our high environment months, and potential initiatives the normalize and client their and recently We priorities CX our current demand attractive will clients. conversations of next leaders in We of board and believe their which one of priority included XXXX. to operational engage from priorities areas these for lead the as we technology-focused the meetings, X focus held clients. over they set as

promise of results. the against architecture Pilots required full Let are data their me in AI to benefits. systems, the encouraging infrastructure weighing themes. CX Clients necessary recurring share the few realize are delivering a work and

center, of Regardless and technology mind. accuracy, of processes their more focused are be platforms. expense, and concerns data CX and of priority. to readiness for CX new to their looking holistic landscape, protection tighter their integrations However, investments. continue CRM well more current organizational on get top between capabilities from contact as ways view value analytics and A as building stack activating clients integrated AI-enabled are a They're

value and strengthen invest top CX for This companies. the improve the these customer efficiencies, executives increases, deeply pursuing with quality the savings mind in-person clients approach in will discussions are and advisory is to the what I board of budget hearing their and appreciate operating future With increase of experience innovation. limited brand our differentiation. near-term

As uncover business evolve, the validate growth market continues both to as new as these our segments. of for opportunities agenda discussions our help innovation well

current TTEC discuss we win the our mindset in our expand let's clients market, Engage. wait-and-see Now Despite some of relationship the new to pockets in base. embedded and continue

We services, client and strategic including are track year-end. health to meet of meaningful care industries, by wins a new and on across financial are our dozen goal diversified retail. relationships These

will on focused winning footprint. profitably expanded we've before, leverage shared As that we as scale new we're geographic keenly clients our

embedded within continue knowledge AI-enabled several prevention, we services lines addition, new office, portfolios. includes well business of new base. work back of progress revenue for In make business to generation, vertical as work our as our solutions This into fraud and types new selling in learning

For and fourth knowledge types, loan including tech quarter we Based quality, as origination a has performance, support work care, with X to services service. a of program the support, digital example, in a workforce leading launched strong account delivering hundreds of on XXXX, associates different brand. management our financial grown

example year. win to has our market into health our support provider our with in new XX% services. and existing offshore new the a business from long-term and with geographic footprint. The Another headcount a the this third client. opportunity access of exciting expanded patient second This includes extends footprint leverage geographies Increasingly, our new opportunities scaled quarter recent back-office are care and

of addition, X annual contract In client be our of offshore. quarter XX% value than the wins will more delivered new this

it is sizes we're the initially are note excited to contracts of deal trend, important that smaller. this about offshore our While

in examples, the these introduce potential As we have types as into relationships illustrated work previous to the grow account. new

use a applications. practical innovation priority, on continues on Our to and cases with be an emphasis focus

for today in a the on the have based understanding be and CX and road teams our ready potentially will deep map of built prioritized evolving have viable future. solutions product what AI what are Our engineering landscape and

delivering all, on a business. can our solutions successfully our Above will implemented return for positive be that and and we're focused ROI clients

pain call revenue opportunities efficiencies our for digital process, ability gleaned examples. Insights customer delivering benefits Let clients. customer transcripts are in from our industries. and We interactions to at programs insights as from effectiveness journey multiple clients. grow benefits pilot with sales is e-commerce, operational move These these impact retail include to automotive. AI points The coaching the using production and into me will in anticipate growth continue share and real-time across improving identifying luxury scale in a fueling few accelerating

the and making rapidly digital also progress We're AI enhanced with improves. voice language as translation services and of quality evolves these

We practical are developing requirements cases a and tools language and to area native clients' substantial translation meet translation our opportunity. see use of future cost is language

and center, gears consulting. we and where to underpinned Digital, let value intersection CRM, at software engineering with analytics, with switch AI Now create the lead TTEC of me contact

As technology evolve, deep to clients continues our the their landscape CX expertise navigate CX to into are them path help forward. leaning

pace and to close more clients XXXX. adjacent on have new We're These highlights. potential few one a services. in than specific clients typically the begin CX are in strategic us to XX expand with solution their Here relationship with

their Surround technology technology easily choosing grow, XX% through innovation change, [indiscernible] and additional clients can time. cloud-based management with the to evolve CX than AI revenues so $X solutions. and optimization, over CX, of More September, approach last continues providing total we're quarter create, platforms million Year-to-date, who when number than bookings us our clients of clients and continuous for where tailor existing called combined our CX are with with greater

positive projects full-scale us. with top and deployed well-defined the of These XX% yielding are approximately AI clients case year, have XXX results are our implementations. projects This making for

activate Our clients to ability capabilities and set myriad TTEC their technology part. of continues help integrate solutions relevant to AI Digital

a CX our overall enterprise comprehensive firm reclassification applications. using closed can used various new of with be a opportunity unstructured we AI knowledge so X-year an exciting content services and professional example, all For engagement for This clients' intelligence data includes the solutions. and CX engineering it and

rate, modernized over With data-driven technology the with sales new sales and win we with integrator, large and solution entertainment their a increases rates, XX and optimization data systems serves XX% a in X,XXX program global has delivered a a in accuracy opportunities countries. and sales client. media CRM XXX,XXX substantial For that executives created adoption

center midst platform. to X,XXX are of We associates multiphase we're cloud over a migrating in which the on-premise in transformation contact a

analytics. that ongoing transformation initiatives diversification phase partner we our the launching many including of complete, agent is few bots, Once AI are a assist be Through underway. AI-enabled These several capabilities, and will self-service strategy, with all projects we've portfolio solutions. CX these excited leading in growth implementing of now the to the added about and technology new our capabilities partnerships of platforms. just We're selling new CX and are

to the past Before Kenny, for the over like years. I Shelly hand it her over thank company and contributions recognize many Swanback, X I'd to to

and takes previously break. shared, end of this Shelly leave be personal for As well-deserved will She all has the a we we reasons. best decision TTEC wish her a to she year the health at missed, as made

leader veteran to Abou John a Supporting already cultural our transition, President in go-to-market impact. a making material space, us formally role, TTEC A both expertise brings industry and several leading months joined a and as welcome ago John teams. great I'd his fit, operational proven of the XX-year Engage, and to Engage, like growth to BPO company smooth our operational John and is

time working through year. taking while In challenges expected, various than conclusion, more we're during transition prudently this

taking the improvement cost long-term priorities, reductions revenue company executing return and profitability. actions, are against necessary profit and growth top balance strengthen while the sheet and We our strategic increased this also to our

leadership improvement to to behalf on our team, of Board actively to continuing focused On the management we're come. Directors, share in executing our progress employees forward our the forward world, team the our and our around we on a path of As and and are strategy initiatives. look quarters

turn call will Kenny. I the over now to

Kenneth Wagers

third results quarter In before earnings of EBITDA, earnings I per results Ken, full the basis. is our to full you, release. income are while basis, discussion will our results, GAAP to tables to reconciliation reference financial a review operating financial GAAP attached good adjusted a is of morning. XXXX financial a and third A discussing our quarter included non-GAAP in and the non-GAAP my revenue on on start Thank of press our with share outlook. year

Turning year $XX a the quarter. to period of revenue and million revenue, relatively increase million million XX.X% our prior X.X% or year consolidated $XX financial in was revenue or XX.X% prior XXXX of sequentially. in from and third prior X.X% of Revenue the the results. decrease $XXX million, an of EBITDA or $XX was over Adjusted from a unchanged decrease period quarter

quarter. prior $X.XX the prior EPS was in period to $X.XX and compared the $X.XX in year

third Foreign revenue the our EBITDA nominal million, exchange in in by prior impacting positively a period, impact year segment. over the Engage while primarily had adjusted $X quarter on

double-digit our level, segment, growth. At delivered within deliver quarter expectations. the the Digital our we managed to service In revenue company recurring third continue offerings performance our

closing However, reasons for by delays was professional services impacted in revenue select larger unanticipated the the our by negatively mentioned Ken, deals.

and top expectations in In performance our with was line line met our Engage quarter. prior relatively the segment,

the reflecting segments, by improved benefits profit encouraged the early our both are Digital Engage in We initiatives. from profitability our and optimization

Turning third XXXX quarter segment to results. our

reduction third existing a sale for year-over-year Our Digital clients. comparison revenue year and period quarter sequentially. relatively prior one results relates on-premise a year $XXX down was difficult our XXXX onetime as are the segment's of primarily the million, product XX.X% The prior over to large the in period unchanged

our revenue X.X% revenue more related overall TTEC the As previously year-over-year cloud to onetime offset infrastructure. communicated professional increased delivery for CX migrate growth cloud-based partially XXXX the is clients and declining together by Digital recurring related by recurring as revenue the quarter. to third services in outlook, on-premise in

of XX% results XX.X% of period. X.X% quarter services which in offerings, increased Digital's Managed solid managed our total deliver to XX% the to continue prior sequentially. services XXXX year recurring revenue the approximately and third in in represented compared year-over-year We

services We demand are the mangaed our solutions. with CXaaS for pleased

services our X.X% year respectively. prior CX to and X.X%, offerings, Related revenue the over by declined professional sequentially and

quarter to delayed larger and timing clients As of outlook. the unexpectedly quarter is pressure our the third which engagements, adding shared, select fourth impacted

dynamic quarters While to influenced by as trend many a view as continue take the macro it could we before normalizing this factors. temporary, is few

or XXXX This operating quarter of prior $XX million in revenue. and third $XX quarter. XX.X% or $XX million to XX.X% compares Digital's million XX.X% year income or period the prior the was in

support to to was than the offset healthier it XXXX. the lower continuous in diversify revenue and While mix by previously revenue we prior the year, our a investment for mentioned our offerings effort talent had

year the XX% or Digital's $XXX year. full is guidance line backlog the at the our midpoint, for of XXXX million in revenue with prior

overall size projects to pilot average reduced digital's been has by of terms in number the deal has growing encouraged that number AI initiatives. of to but are growing pipeline of deals, due attached an We the strong

profitability. revenue operating down or XXXX, Engage XXX prior segments the revenue this Our compared $XXX unchanged profit XX.X% importantly, Operating of was in our through percentage in encouraged by primarily segment shared our sequential revenue quarter an the million Engage upon and the basis to performance Sequentially, point year most sequentially. a year improvement of income as is and are relatively with headwinds increase impacting we year. efforts transition quality. prior without the X.X% was function million of X.X% in approximate our and of Overall, over a optimization revenue. our initiatives the to of third executing increased $XX $XX This income or period million delivery XX% earlier

We enabling by and processes. and further cost are overall structure our more effectively managing operations improving our technology

We also with and in advancing team to accelerating hires strengthened our performance continue industry efforts leadership tenured key our areas. our

around messaging the remain clients' on signs based opportunities we Engage strong, quarter, last delivery are of Consistent seeing quality with our discussions and encouraging CX strategies.

cost near yield term clients new prioritizing investments year. into program postponing and that However, next initiatives savings are will

primarily in prior by to large in and to in client the compared of XX%, clients our is cost pressures. was year. this revenue customer one the rate volumes mentioned from primarily care year due reduction retention earlier declines decline revenue XX-month support address financial to explained seasonal moderate health by to last XX% changes The Engage's the services level

X our million negative $XXX the primarily The flow I third $XX quarter previously accounts for $XXX cash share amendment ended XX, credit discontinuation, for was metrics will receivable This compared prior now our and X when to to the in a factoring Free impact impacted announced XX, by facility by September of outlook. quarter was negatively of the year. third discontinuation million the XXXX $XX September months XXXX, a cash latest million ended million before agreement. decline the the flow our to related XXXX discussing other communicated in the negative XXXX. we months

profitability. and in year-over-year quarter $XX year-to-date. offset the positive was conversion reflects cash expenditures, partially a free by lower working The XXXX capital improved improvement capital negative third and lower $X flow of Normalized million million

prior $X for expenses or X.X% our most million geographic Capital X.X% related to third in of year, or million expenditures quarter XXXX revenue the were $XX to the compared expansion. with

to quarter, Our of in the compared third the during whereby valuation pretax prior a normalized allowance losses tax XX.X% was function rate is ongoing couldn't be the the in XXXX of increase the of tax the impact future The the U.S. the second recorded XX.X% of U.S. primarily credits from quarter year. recognized. benefits

was foreign jurisdictions were the where tax driven higher. there addition, profitable income expense In several

global the we tax with As a U.S. income positive which offset. couldn't tax loss up pretax the to result, expense ended low a in be net relation for

debt, As credit from by million ratio accounts higher the over billion was of September borrowings million ended We $XXX primarily XX, of $X.X and XXXX, line flow in largely receivable cash year, positive prior factoring with forecasts. with internal to net representing $XX interest discontinuation increased our partially offset quarter. with $X.XXX our a debt billion cash expense facility, of under last the our quarter debt-to-EBITDA X.XXx, the due net of facility operations,

quarter prudent due large for to from in proceeds disclosed asset not was positive into from flow disciplined and and capital our operations, X-K cash anticipate debt capital decline management. and next in held assets forward, allocation, operations leverage a the fourth the sale, in working estate we including Form our to filing Looking that net real as used year

dividend debt as interest company's Directors XXXX, its our part anticipated reduction. will Further, to flow of on suspended free and Board ongoing Lower semiannual debt rates reduction X, shift TTEC's support November the cash efforts. of prioritize also

end contribution quarter At reflect fourth the Turning the ranges to updated provided adjustments full quarter actual level, the of but XXXX last made are results to level, towards and our forecast. revenue quarter. we to reiterating and At outlook be expect our segment appropriate third the guidance profitability the are and year closing remarks. company lower

service from updated primarily unchanged, midpoint moderation XX%, and our million our we For million prior guidance $XXX consolidated and billion TTEC, This impacted $XXX In previously EBITDA of range, $XXX below the EBITDA our or and guidance at of guidance million at at range our our is on a basis, midpoint revenue is down revenue Digital and $XX professional the X.X%. the forecasting revenue offerings. by million are million in respectively. with $X.XXX of mentioned XX.X% $XX range or business, or

$X.XXX for the prior earnings level. XXXX XXXX billion consolidated our guidance our and release Business of our revenue segment midpoint at $XXX from $XXX the of our and expectations is third Engage of for or Outlook million EBITDA updated In up Please million business, forecasting our year billion of and our commentary section X.X% respectively. This at guidance quarter guidance range. reference range, in full are midpoint we above the or and $X.XXX X.X%, slightly our press the

are our across the set transitional analytics we in diversifying that forth demand TTEC and In capabilities during objectives AI service we expertise broadening long-term and CX technology closing, CX for CRM, our our capabilities. partnerships our and key and are of remain center, In year. contact technology we achieving and many this market Digital, solutions confident

are our mentioned new initiatives. upon In footprint, across optimization expanded previously we and Engage, programs winning through launching geographic and the client executing our profit TTEC working headwinds

we profitability. As to focused our to growth we priorities TTEC XXXX, transition remain long-term on and return to ability in strategic our increased and organic resolute

to I will turn Paul. the back now call

Paul Miller

I that not today TTEC Kenny. address Mr. want call questions proposal any to about Tuchman's Thanks, Private. our to will everyone take remind

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

Operator

Our Capital Markets. [Operator from Mike comes first Northland of Instructions] question Latimore

Mike Latimore

questions I on the All Digital couple right. of business. just Great. had a

to fourth imply here. a the Your guidance seems in quarter nice acceleration

of . some what's these to going and growth Like driving close? like what you -- Is to that? of could close that gives even getting didn't deals potentially -- confidence guess year-over-year, are I kind So there double-digit occur? that

Kenneth Wagers

bullish perspective. all we Yes. obviously, an been Look, on digital. from Kenny. year bullish, outlook it's We've are Mike,

closer deals you at -- or date X. the end confident year slide in end QX X closing of engagements year, QX the close little January tricky towards front have from obviously, consulting the and on these us. whether December in or did get versus with some We have in when the not QX, the results, of very we those of have XX when to sitting magic a it's big deals our QX they Our is QX we of Dave

on So quarters confident the where bookings do with at feel X with to at backlog. trajectory, we're over alluded to, our the we based we're longer as next you in and where X

Mike Latimore

lower do growth. of back something digital the that get you kind even the is guidance, business hit maybe assuming could end that where you that going see So of forward? growing year-over-year to Is we sustainable

Kenneth Wagers

I mean, we involved Absolutely. Mike, mix lot the with of do. versus There's sales consulting product business. a Yes,

-- obviously, right so And season now. planning XXXX we in, are

have. as the work practices and so obviously tailwinds that upside And see we We we the the that work a through with product sales the we new off. just through lot of as have in practices we falling through XXXX also work to the

mixed And have we of so we're that health confident business that gives line, the top us going the at result the but in. very forward, a

Shelly Swanback

we particular, I about. on as that business the inside initiatives partners with for diversifying continue the think our talked Mike, in we've new digital of

projects those deals that on Obviously, starting. clients. we're helps a deals think typically that's from existing can And clients. indicator have earlier bullish good of are XX% our that with Ken mentioned projects like all faster are to because We very close. we existing multiple that that -- I AI coming the

if as positive to a trajectory So that be it you all look our I pipeline, think at well, in healthy. continues

working really, opportunities funnel we partners. with that healthy deals and on our we're have coming really the more the into fact, of top In

always are one that of think where said, we terms was everything is year QX like So getting here focused the overall in for in QX. us But closing Dave a time positive. team you last and and on big year really deals the tricky, this right? can over I of line

Kenneth Tuchman

Yes.

should I focused in cost my fact, think general clients as been think in XXXX. I point that on said -- we have the Mike, script, I in out

projects can kicking on And through companies, this read so cetera. different many cases, in the the et they've IT all been you services about

rates confident we as more us, on into -- stuff feel as focused we is just a where get start more cetera, is much as et political we to be as there'll down interest launching cetera. think come behind larger that this mindset projects, all I hopefully XXXX et

can starting based budgets constrained are cetera, we're And accelerate where see clients and and can't can next until kicking been start their to so things competitive. that they've that's they that the long But they or said, bit et new on from no to the to is have stay a the for a unfortunately, adapt hearing technology bit. therefore, year, that can we delaying just this so to but projects kick they choice feedback only

Operator

comes question Maggie Blair. from next Nolan William of Our

Kathleen Kronstein

Maggie. touch weak It's payer quarter. clients bit spot question what on I health last on were Kate for Kronstein client about in seeing a cohort a a had Can you're little this that care this quarter? you

Shelly Swanback

quarter, talked of a right, money, QX they last and ramp, the lot bit. Yes. about for Well, which cost some making seasonal we differently our QX and our into saving just to staffing relative is have decisions clients pressures a payer that

so change face I continuing the talked things about cost to industry. played and no out this quarter. say care And I'd lot in see QX pressure quarter, a mean, they're last I we of to we health mean, what have similar there.

typically making of a that bit there's care now having we're good using the choices a been about to payer will, And lots some offshore little terms costs. technology, they're from things perspective. in think so And off that news if cutting starting talent, you limits, have offshore of about resources, conversations is health

some proof conversations continue those of But those expect year that the and couple here in concepts have to the so of year underway next we'll into are end through the quarters. And conversations. early next of see and I

Kathleen Kronstein

then Great. And final one Okay. question.

provide that roughly all? Or do expectation has at cost-saving changed expect initiatives, the $XX savings those On in in million you still that XXXX? guys will

Kenneth Wagers

No.

executed results. of the savings internal annualized As to XXXX. well we out XXXX into numbers mentioned savings on coming quarter, QX million our last QX XX-year of in and we've that $XX And of in in-year

we so XXXX. -- to that in expect those manifest do numbers And

Operator

the of comes question next of Chan Kathy Our Instructions] from [Operator from America. line Bank

Jinli Chan

period expecting well? as macro a issues they're you that little just ramp-up about. you more for that mentioned Can concerned Are bit these some elaborate about are also a that longer well, And why you're expect new expect as And wouldn't just and that why other those persist? up you not having coming you to in one. you the conversations that client maybe

Shelly Swanback

The been beginning part of that, you repeat might Can your your you have about question, on mute. sorry question? just

Jinli Chan

Yes.

So wanted implementations a little about delay select and you the client that I bit projects just to ask guys had mentioned.

So sort is in quarter are concerned period just the about. a well mentioned some longer as part they first after -- those next And you for or of of issues ramp-up macro fourth that quarter expecting we're even year? closed you first

are So you as those well? what -- conversations hearing those client in other are

Shelly Swanback

Okay. it each business segment. Well, take me in just so let

Engage starting ramp. been client they new we've our time new on of leveraging or being bring offshore quarters, the of as many in the about on them some meaningful of last On so the side, also very relationships, dozen for couple are of is And are in talking geographies. small a to because target part with terms pleased that

there. I'd terms of so the as scaling launches getting kind then same more those and client And right It's no say we go. just in change really of of

we're on for Engage -- of we're that the them. brought expanding new services providing we've already a side, in Some the those couple that of clients

couple last say quarters. same over of I'd pretty what So that's much described as the we've the

some side, going delays On Ken's those really comments comments Kenny's forward. and in around projects the of some digital were

to and in delay not that's the projects meant a in a doing necessarily ramping be And terms started. delay so them getting just of

early that latter them of the this really so those at focused next closed start getting can on year. And here we're QX again, half we deals and here year so in into

Jinli Chan

then that helpful. should that. talk And right higher of to I 'XX, that is point a half Okay. about Is that in And more modeling should first understanding guidance the formal kind the guess just think in terms XQ XX%, good we we the of XX% also terms rate, XXXX little you're think way jumping That's the not of bit tax a obviously . of at right about least about purposes? now? that off providing

Kenneth Wagers

The at in quarters. for exactly over the see end. I call normalized Yes. what the Thanks caveat of next is rate, the said the where tax couple we

in the to deferred income in a mix or just the your with and what income tax effective between rest quarter. the previous of our so It's our in world the the with allowance is. the U.S. versus valuation issue we And tax asset point, had that that really pretax rate

And again, XXXX. we're at QX to our same into we're just yet so where guidance relatively we giving in anticipate what and not at results, on the that's looking the in But for future QX.

Operator

question next Our comes Vafi from Joe of Canaccord.

Unknown Analyst

think This given Johnson demand is this in offshore dynamic a accelerate the Nice Joe. us in mind quarter? do you the you this to quarter. on this program growth sense potentially giving see for strong you for Do geos could just Will new your investment program XXXX? And

Kenneth Wagers

would I Will, this. say

performing. the about that holds. geos in the year commentary still expansion our think had We're those I very geo we've happy with are throughout how XXXX

I we diversification that 'XX those said to 'XX it since investments for the the is up I year think made and company the and and offshore earlier that I've got quarter the this were in groundwork that first The set executed and products provide here and this the it basis because is on there. well year. in of on in now demand services business. lines is marketplace, that the new the offerings an customer space offshore We've

for spend that to because we've investment. on CapEx the quarter as down our see we're made trend You starting the

mentioned to as of is Ken is X say just this diversification year have performed be top would offshore our I -- earlier. we continuation the So XXXX. the is It how going priorities, definitely of one

demand us you so for that's will where because see is customers asking the reasons. into what the for of various XXXX And more offshoring at. that That's are

we're environment. great And great meeting them products services offshore so in and with

Unknown Analyst

offshore? of cadence Great. seeing sizes deal the scaling any And of dynamics are you in kind changing smaller

Kenneth Wagers

to take. You want

Shelly Swanback

know don't I'd changes. if say I any

sort think obviously, over scale -- we've -- quarters. the about than offshore the faster couple the we programs varies client. just just it last revenues I on scale of of thing that's onshore, But offshore first talked services the from offshore have

some that to We in start start have with clients some to XX agents with hundreds. want

banking dependent. in just lots new have sort of supporting America, of in services say just -- the of interest insurance terms really the it our where So it's is couple -- a in client of we're and we would geographies, lines lots still is already said, sector continue business we're our What Latin that of particularly Kenny and Africa, to have financial I expanding them. as clients

we've X. of dynamics say what been continue to similar I'd quarter the about or last sort So talking the

Operator

of Jonathan is Guggenheim. last Lee from Our question

Yu Lee

Tremendous to here about to the ramp you onshore so investments seeing the are existing offshore? But of see there moving And are needed thanks offshore to volumes customers clarify, offshore some maybe revenue? and any for uptick think their further in color far.

Kenneth Wagers

Yes, would then X countries, we take I'll that cities question. second the been right? investments of first are in and What the want be in Tier over let very I the laid, the right? The take we has in cities I'll last We your the say half Shelly the and are X years. that to into Tier X, happy expanded the with, customers is footprint

to capital South say would investment line facilities expanding point across is this investment if parking are that And be I growth customer-by-customer or we a standpoint, you growth that we're always companies, is i.e., internally, the there, foundation Jonathan, and now human have. I will, Africa infrastructure currently laid, in Any go beyond building specific and and at would can on the those to you so the an the from tell in scale. Uganda new we because the support basis. revenue

in with good expense all on that clients a the an it's have. new us footprint revenue standpoint, matching growing say we and would from investment I So based of

Shelly Swanback

Yes. about previously, would add, percentage is Jonathan, as maybe offshore. I regulated stay we which just talked a of guess -- I what industries, has good we've work mean, I to regulated our right, is the have that in with

to of done say, previously offshore them clients some we're changed. work So I that proactive our that serve very being about of might hasn't clients, able our and onshore. been have though, for would some being

of instead clients doing and our we're It's the the far, so work not seeing But doing addition. still that we're work onshore. in we're that that offshore with winning is

with how out. those Again, proactive play being Now see we'll clients. very we're our dynamics, those

thoughtful onshore work profitable We're will that. be for work offshore. where -- be done So we very That's think us. can being about higher

Yu Lee

coming reduction versus some And pay debt velocity some of expansion? that. the of color secondly, drivers the of your can to expect Appreciate drive today where more in of down Maybe your just needed investments ability to on quarters? of you the some flow you'd share that is the cash given

Kenneth Wagers

sale. We are you to I what's what's debt I reduction you Jonathan, expand increase, increase. in Yes, see, profitability the there, operations if or the cash press our asset more know our don't committed had right? can much as flow see as We release out than free from

disclosure on the You dividend. saw the

been on we year, And so this we've previous are during as debt talking transition focused the reduction. over quarters

would the be our We are if levels that double focused the continue coming . on capital on will we with will, to to to those is structure those we down metrics, down quarters. happy to it input drive ratios continue over and that you

Operator

for Earnings That TTEC's Call. your XXXX Conference This is all concludes have we Thank the today. Third time you Quarter questions.

at disconnect may this time. You

TTEC (TTEC) 7 Nov 242024 Q3 Earnings call transcript