On this page of StockholderLetter.com we present the latest annual shareholder letter from TTEC Holdings, Inc. — ticker symbol TTEC. Reading current and past TTEC letters to shareholders can bring important insights into the investment thesis.
2023
Annual
Report
2020 Financial Highlights
2023
($ in millions,
millions, except
except per
per share
sharedata)
data)
Revenue
Revenue
Operating
Income
Operating
$1,949.2
$2,443.7
$204.7
Income
$217.2
$2,462.8
$2.52
Net
per Diluted Share
NetIncome
Income
per$2.97
Diluted Share
$2,273.1
$1,509.2
$168.5
$2.18
$118.0
$92.1
$0.77
$0.18
2021
2022
2023
2021
2022
2023
2021
2021
2022
2022
2023
2023
Revenue

2,273.1

2,443.7

2,462.8
Operating Income

217.2

168.5

118.0
9.6%
Operating Margin
6.9%
4.8%
Adjusted EBITDA

351.6

320.1

271.5
Net Income

158.2

117.3

18.3
Net Income attributable to
TTEC stockholders

141.0

103.2

8.4
47.4
Average diluted shares outstanding
47.3
47.4
Net Income attributable to TTEC
stockholders per diluted share

2.97

2.18

0.18
Cash and cash equivalents

158.2

153.4

172.7
Debt

797.1

963.6

999.3
Capital expenditures

60.4

84.0

67.8
2023 Revenue by Geography
5% 4%
21%
2023 Revenue by Segment
16%
70% North America
16% Philippines
6% EMEA
5% Latin America
3% Asia Pacific
70%
80% TTEC Engage
20% TTEC Digital
84%
We continued to make progress diversifying our
business by growing our client base, completing a
strategic phase of our geographic expansion, and
expanding our solution set.   
To our shareholders,
2023 was a dynamic year. As a strategic CX technology and services partner for many
of the world   s largest and most complex enterprises, we navigated the challenges of the
macroeconomic climate side by side with our clients. Throughout the year, we continued to
make progress diversifying our business by growing our client base, completing a strategic
phase of our geographic expansion, and expanding our AI-enhanced solutions. We stayed
focused on our goals despite an uncertain business environment that delayed client contracting
decisions and lowered forecasts for certain clients in the second half of the year.
Highlights of the year:

We grew our client base with
approximately 100 meaningful new
relationships in TTEC Digital and
TTEC Engage.

We added multiple new offerings to our
portfolio, including an expanded and
growing ecosystem of AI-enhanced
solutions for TTEC Engage and TTEC Digital.

We completed a strategic phase of
geographic expansion with several
new offshore locations and laid the
groundwork to scale and roll out
new operations in many new countries
in 2024.

We built on our premier partner status
with our leading CX technology and
hyperscaler partners.

We continued to be recognized as a Great
Place to Work    and by leading industry
organizations and publications.
Engage: Expanded geographic reach and outcome based solutions:
In 2023, we continued to differentiate our brand in the market by delivering compelling
outcomes for our clients that increase revenue, reduce costs, and elevate customer loyalty.
Focus areas this year included:

Scaling our new offshore geographies and driving improved profitability. Over the past
two years, we have launched services in five new countries and today we have a robust
presence in Latin America, Asia Pacific, EMEA, and the United States. Demand for the new
geographies is robust and continues to grow as we broaden our reach with new capabilities,
languages, and delivery models.

Helping our clients pursue the right AI strategy that balances human and AI-driven
experiences. Our practical and data-driven approach to integrating AI is focused on delivering
efficiencies without sacrificing empathy and quality. We are integrating these modern tools
into our operations to automate administrative tasks, personalize and accelerate associate
learning, and unlock valuable insights across the customer lifecycle. We have moved into full
production with several clients and while still early days, the improvements in customer and
associate experience are compelling.

Accelerating our margin optimization initiatives to increase efficiencies and improve
profitability while continuing to focus on the delivery of exceptional quality services to our
clients and their customers.
Digital: Operating at the intersection of CCaaS, CRM and AI:
Our deep and differentiated partnerships with most of the premier CX technology players and
hyperscalers have established us as the leading CX transformation partner operating at the intersection
of CCaaS, CRM, and AI. This differentiated position is creating demand with clients who seek specialized
expertise in designing, building, and operating sophisticated CX platforms that integrate into their
complex digital ecosystems and deliver meaningful ROI.
Progress in TTEC Digital in 2023 included:

Achieving record bookings in the fourth quarter of 2023, and we expect this momentum to
continue through 2024. For 2025 and beyond, we anticipate ongoing progress.

Successfully increasing the percentage of professional services and recurring managed services
that deliver higher growth and margins. Our offerings lead to more transformational deals that take
advantage of our full suite of CX solutions. These engagements are a critical enabler of our growth.

Opening the TTEC Digital Innovation Studio in Hyderabad, India to strengthen the company   s
capabilities integrating and orchestrating exceptional customer experiences around the world. We
continue to accelerate our pace with offshore delivery to increase scale and improve our operating
margins without impacting quality.
Our new customer experience centers and innovation
hubs reflect the vibrancy of each region
TTEC Digital Innovation Studio,
Hyderabad, India
Barranquilla, Colombia
Bogot  , Colombia
TTEC Customer Experience and Innovation Center,
Denver, Colorado
San Pedro Sula, Honduras
Cape Town, South Africa
Across our business, we remain focused on
practical innovation
AI is a key focus for all clients in the current environment. While
many of them have completed proof of concepts, in most cases
the commercial viability of scaling these solutions is still unclear.
Clients are embracing us as a trusted partner to help them
separate practical applications from the hype.
In TTEC Engage, we are focused on using AI to augment
productivity across the associate lifecycle. We are using AI
for recruitment, generative learning, language enhancement,
knowledge management, conversational intelligence, workforce
optimization, and employee engagement. We plan to continue
expanding our ecosystem by introducing new AI solutions as they
mature and believe that we are well positioned to drive innovation
and stay ahead of client demand.
In TTEC Digital, our focus is helping clients develop their AI
strategy for CX, integrate new AI capabilities into their CX
technology infrastructure and optimize the technology as their
needs and the tools advance. As more companies move their CX
operations to the cloud, we are pleased to partner with them to
implement each phase of their migration. We are helping clients
understand the rich AI-enhanced features now available in their
cloud environments and we are working with them to roll out
new capabilities across their marketing, sales, and customer
care operations.
We aspire to be the
employer, provider, and
investment of choice.
Through our ongoing
ESG initiatives, we are
dedicated to:

Employee development:
Fostering growth through
training, mentorship, and career
advancement opportunities.

DE&I: Promoting inclusion to fuel
innovation, growth, and meaningful
connections within our workforce.

Community impact:
Strengthening communities
through philanthropic investments
and engagement.

The environment: Demonstrating
our commitment to
environmentalism through
sustainable practices and initiatives.

Responsible data management:
Protecting client, customer, and
employee data through robust
security measures and adherence
to best practices.

Good governance: Upholding
the highest standards of ethics,
integrity, and compliance, ensuring
transparency and accountability in
all our actions.
Our focus for 2024 is on exceptional execution
Looking at 2024, we are focused on continued diversification
of our clients, partnerships, solutions, and geographic delivery
models in conjunction with margin optimization. We are confident
that our go forward plan will pave the way for significantly
improved results as we exit 2024, setting us up for renewed
growth and improved profitability in 2025 and beyond.
We have strong fundamentals in place, including trusted new and
tenured client relationships, a differentiated portfolio of proven
CX solutions, and a committed and dedicated team. I continue to
be inspired by the passion and hard work of our employees across
the globe and grateful to our growing and valued client base.
Thank you for your continued support.
To learn more about our impact and
sustainability initiatives, visit ttec.
com/impact-and-sustainability-report.
Kenneth D. Tuchman
Founder, Chairman and
Chief Executive Officer
 • shareholder letter icon 4/11/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/27/2023 TTEC Stockholder Letter
 • stockholder letter icon More "Business Services & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon TTEC Benford's Law Stock Score = 98


TTEC Shareholder/Stockholder Letter Transcript:

2023
Annual
Report

2020 Financial Highlights
2023
($ in millions,
millions, except
except per
per share
sharedata)
data)
Revenue
Revenue
Operating
Income
Operating
$1,949.2
$2,443.7
$204.7
Income
$217.2
$2,462.8
$2.52
Net
per Diluted Share
NetIncome
Income
per$2.97
Diluted Share
$2,273.1
$1,509.2
$168.5
$2.18
$118.0
$92.1
$0.77
$0.18
2021
2022
2023
2021
2022
2023
2021
2021
2022
2022
2023
2023
Revenue

2,273.1

2,443.7

2,462.8
Operating Income

217.2

168.5

118.0
9.6%
Operating Margin
6.9%
4.8%
Adjusted EBITDA

351.6

320.1

271.5
Net Income

158.2

117.3

18.3
Net Income attributable to
TTEC stockholders

141.0

103.2

8.4
47.4
Average diluted shares outstanding
47.3
47.4
Net Income attributable to TTEC
stockholders per diluted share

2.97

2.18

0.18
Cash and cash equivalents

158.2

153.4

172.7
Debt

797.1

963.6

999.3
Capital expenditures

60.4

84.0

67.8
2023 Revenue by Geography
5% 4%
21%
2023 Revenue by Segment
16%
70% North America
16% Philippines
6% EMEA
5% Latin America
3% Asia Pacific
70%
80% TTEC Engage
20% TTEC Digital
84%

We continued to make progress diversifying our
business by growing our client base, completing a
strategic phase of our geographic expansion, and
expanding our solution set.   
To our shareholders,
2023 was a dynamic year. As a strategic CX technology and services partner for many
of the world   s largest and most complex enterprises, we navigated the challenges of the
macroeconomic climate side by side with our clients. Throughout the year, we continued to
make progress diversifying our business by growing our client base, completing a strategic
phase of our geographic expansion, and expanding our AI-enhanced solutions. We stayed
focused on our goals despite an uncertain business environment that delayed client contracting
decisions and lowered forecasts for certain clients in the second half of the year.
Highlights of the year:

We grew our client base with
approximately 100 meaningful new
relationships in TTEC Digital and
TTEC Engage.

We added multiple new offerings to our
portfolio, including an expanded and
growing ecosystem of AI-enhanced
solutions for TTEC Engage and TTEC Digital.

We completed a strategic phase of
geographic expansion with several
new offshore locations and laid the
groundwork to scale and roll out
new operations in many new countries
in 2024.

We built on our premier partner status
with our leading CX technology and
hyperscaler partners.

We continued to be recognized as a Great
Place to Work    and by leading industry
organizations and publications.
Engage: Expanded geographic reach and outcome based solutions:
In 2023, we continued to differentiate our brand in the market by delivering compelling
outcomes for our clients that increase revenue, reduce costs, and elevate customer loyalty.
Focus areas this year included:

Scaling our new offshore geographies and driving improved profitability. Over the past
two years, we have launched services in five new countries and today we have a robust
presence in Latin America, Asia Pacific, EMEA, and the United States. Demand for the new
geographies is robust and continues to grow as we broaden our reach with new capabilities,
languages, and delivery models.

Helping our clients pursue the right AI strategy that balances human and AI-driven
experiences. Our practical and data-driven approach to integrating AI is focused on delivering
efficiencies without sacrificing empathy and quality. We are integrating these modern tools
into our operations to automate administrative tasks, personalize and accelerate associate
learning, and unlock valuable insights across the customer lifecycle. We have moved into full
production with several clients and while still early days, the improvements in customer and
associate experience are compelling.

Accelerating our margin optimization initiatives to increase efficiencies and improve
profitability while continuing to focus on the delivery of exceptional quality services to our
clients and their customers.

Digital: Operating at the intersection of CCaaS, CRM and AI:
Our deep and differentiated partnerships with most of the premier CX technology players and
hyperscalers have established us as the leading CX transformation partner operating at the intersection
of CCaaS, CRM, and AI. This differentiated position is creating demand with clients who seek specialized
expertise in designing, building, and operating sophisticated CX platforms that integrate into their
complex digital ecosystems and deliver meaningful ROI.
Progress in TTEC Digital in 2023 included:

Achieving record bookings in the fourth quarter of 2023, and we expect this momentum to
continue through 2024. For 2025 and beyond, we anticipate ongoing progress.

Successfully increasing the percentage of professional services and recurring managed services
that deliver higher growth and margins. Our offerings lead to more transformational deals that take
advantage of our full suite of CX solutions. These engagements are a critical enabler of our growth.

Opening the TTEC Digital Innovation Studio in Hyderabad, India to strengthen the company   s
capabilities integrating and orchestrating exceptional customer experiences around the world. We
continue to accelerate our pace with offshore delivery to increase scale and improve our operating
margins without impacting quality.
Our new customer experience centers and innovation
hubs reflect the vibrancy of each region
TTEC Digital Innovation Studio,
Hyderabad, India
Barranquilla, Colombia
Bogot  , Colombia
TTEC Customer Experience and Innovation Center,
Denver, Colorado
San Pedro Sula, Honduras
Cape Town, South Africa

Across our business, we remain focused on
practical innovation
AI is a key focus for all clients in the current environment. While
many of them have completed proof of concepts, in most cases
the commercial viability of scaling these solutions is still unclear.
Clients are embracing us as a trusted partner to help them
separate practical applications from the hype.
In TTEC Engage, we are focused on using AI to augment
productivity across the associate lifecycle. We are using AI
for recruitment, generative learning, language enhancement,
knowledge management, conversational intelligence, workforce
optimization, and employee engagement. We plan to continue
expanding our ecosystem by introducing new AI solutions as they
mature and believe that we are well positioned to drive innovation
and stay ahead of client demand.
In TTEC Digital, our focus is helping clients develop their AI
strategy for CX, integrate new AI capabilities into their CX
technology infrastructure and optimize the technology as their
needs and the tools advance. As more companies move their CX
operations to the cloud, we are pleased to partner with them to
implement each phase of their migration. We are helping clients
understand the rich AI-enhanced features now available in their
cloud environments and we are working with them to roll out
new capabilities across their marketing, sales, and customer
care operations.
We aspire to be the
employer, provider, and
investment of choice.
Through our ongoing
ESG initiatives, we are
dedicated to:

Employee development:
Fostering growth through
training, mentorship, and career
advancement opportunities.

DE&I: Promoting inclusion to fuel
innovation, growth, and meaningful
connections within our workforce.

Community impact:
Strengthening communities
through philanthropic investments
and engagement.

The environment: Demonstrating
our commitment to
environmentalism through
sustainable practices and initiatives.

Responsible data management:
Protecting client, customer, and
employee data through robust
security measures and adherence
to best practices.

Good governance: Upholding
the highest standards of ethics,
integrity, and compliance, ensuring
transparency and accountability in
all our actions.
Our focus for 2024 is on exceptional execution
Looking at 2024, we are focused on continued diversification
of our clients, partnerships, solutions, and geographic delivery
models in conjunction with margin optimization. We are confident
that our go forward plan will pave the way for significantly
improved results as we exit 2024, setting us up for renewed
growth and improved profitability in 2025 and beyond.
We have strong fundamentals in place, including trusted new and
tenured client relationships, a differentiated portfolio of proven
CX solutions, and a committed and dedicated team. I continue to
be inspired by the passion and hard work of our employees across
the globe and grateful to our growing and valued client base.
Thank you for your continued support.
To learn more about our impact and
sustainability initiatives, visit ttec.
com/impact-and-sustainability-report.
Kenneth D. Tuchman
Founder, Chairman and
Chief Executive Officer



shareholder letter icon 4/11/2024 Letter Continued (Full PDF)
 

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