On this page of StockholderLetter.com we present the 4/27/2023 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.

 •  4/27/2023 Letter Continued (Full PDF)
 •  4/11/2024 TTEC Stockholder Letter
 •  More "Business Services & Equipment" Category Stockholder Letters
 •  TTEC Benford's Law Stock Score = 85

TTEC 4/27/2023 Shareholder/Stockholder Letter Transcript:

4 0 Ye a r s o f I n n ov a t i n g t h e
C u sto m e r E x p e r i e n c e
ANNUAL REPORT | 2022

2022 Financial Highlights
($ in millions, except per share data)
Revenue
Operating
Income
$2,443.7
$2,273.1
$204.7
$1,949.2
Net Income
per Diluted
Share
$217.2
$2.97
$168.5
$2.52
$2.18
2020
2021
2022
2020
2021
2022
2020
2020
2021
2021
2022
2022
Revenue

1,949.2

2,273.1

2,443.7
Operating Income

204.7

217.2

168.5
Operating Margin
10.5%
9.6%
6.9%
Adjusted EBITDA

304.0

354.4

326.6
EBIT

186.1

219.5

178.7
Net income

129.3

158.2

117.3
Net income attributable to TTEC stockholders

118.6

141.0

103.2
Average diluted shares outstanding
47.0
47.4
47.3
Net income attributable to TTEC stockholders
per diluted share

2.52

2.97

2.18
Cash and cash equivalents

132.9

158.2

153.4
Debt

396.3

797.1

963.6
Capital expenditures

59.8

60.4

84.0
2022 Revenue
by Geography
North America
5%
5%
2022 Revenue
by Segment
3%
19%
16%
Philippines
Latin America
EMEA
Asia Pacific
71%
TTEC Engage
TTEC Digital
81%

Our solid performance reflects our broad and diverse base of
global clients, deep expertise across strategic verticals, and the
full range of digital CX technology, AI, and service capabilities.
To our shareholders:
We founded TTEC 40 years ago with one goal in mind: To help the world   s most customercentric brands create trusted and valuable relationships with their customers. While
systems, process, and technology have evolved over the decades, our commitment to
delivering exceptional customer experiences has remained the same. With almost 70,000
people speaking 50 languages on 6 continents, we continue to deliver happy customers
and differentiated business results for our clients across every interaction channel, every day.
Despite the increased uncertainties surrounding the global economic environment, in 2022,
our teams executed well. Our performance reflects our broad and diverse base of global
clients, our expertise across strategic verticals, and our full range of digital CX technology,
AI, and service capabilities.
We made progress on several fronts, including:

Enhanced our public sector vertical with
a meaningful acquisition

Expanded our client base by winning 93
new clients

Strengthened our strategic partnership
with Google

Grew our delivery footprint with three
new offshore geographies

Deepened our partnerships with each
of our core strategic CX technology
partners, including the largest
hyperscalers

Recognized as a CX leader by all four
major analyst firms

Named by Forbes as one of America   s
best large employers for the third
consecutive year

Marked our 40th anniversary as a
pioneer, global leader, and innovator in
customer experience

Strengthened our leadership position
in AI with strategic investments in new
offerings and several new client wins
Customer experience continues to
be an essential differentiator
In any economy, an exceptional customer experience sets the most admired brands apart.
Happy customers are loyal, spend more money, and become active promoters of their
favorite brands. In an uncertain economy, keeping these loyal customers is paramount, yet,
at the same time, businesses are challenged to do more with less. Our outcomes-based
solutions are more critical than ever in this environment.
Over the past decade, we have set up our company to capitalize on three game-changing
mega trends. From legacy giants to digitally native start-ups, these trends will be altering the
face of every industry across the globe. We   ve been preparing for this inflection point and are
well positioned to capitalize on the opportunity ahead of us.
Trend #1: The CX move to the cloud is no longer an option. It is an imperative. Currently,
only about 20% of large enterprises have completed their CX migration to the cloud. As
the largest pure-play CX technology and services player in the world, we are helping
these companies use the modern capabilities enabled by the cloud to create customer
experiences across every touchpoint that are personalized, effortless and differentiated.

Our TTEC Digital business has implemented some of the most complex enterprise CX cloud
migrations at scale across every major platform. We are well-positioned to capitalize on the
remaining 80% of large businesses still operating on outdated on-premise legacy platforms. These
digital transformation initiatives are complicated and will provide us with technology and managed
services opportunities for many years to come.
Trend #2: The world   s leading brands are moving from reactive customer support to proactive
customer experiences. Smart brands are no longer waiting for their customers to reach out when
something goes wrong. They are using advanced analytics to anticipate the future needs of their
customers with proactive outreach and next-best actions. With our investments in predictive digital
capabilities that enable customer acquisition, growth, and retention, we are delivering strong results
for our clients in multiple industries including healthcare, financial services, and automotive.
Trend #3: AI is redefining the role of front-line associates, creating a new class of knowledge
workers. Whether a customer is reaching out about a complex issue or a highly charged emotional
moment of truth, they expect a skilled, compassionate human to be on the other side. AI has the
potential to turn these front-line knowledge workers into    super agents    by augmenting their skills
with real-time insights and next best actions. These capabilities accelerate speed to proficiency,
create new career pathways, deliver the best possible business outcomes, and create higher margin
opportunities for TTEC.
These three trends are putting pressure on companies across the globe to find a partner so that they
can move quickly and with confidence. For the past 40 years, we have led the market by helping our
clients understand how new digital technologies fit into their CX ecosystem. While technology has
always been fundamental to our solutions for clients, we   ve provided a steady hand to separate the
helpful from the hype. From the earliest IVRs to today   s latest AI developments, our focus has always
been delighting customers and helping our clients grow.
TTEC Engage and TTEC Digital deliver solutions across the CX ecosystem
Our two distinct but connected business segments enable us to deliver differentiated results in this
new phase of AI-driven CX innovation. Today, TTEC Digital is the largest pure-play CX technology and
services player in the world. We have the data scientists, CX consultants, and CX technology expertise
across all the leading platforms. Our clients look to us given our deep experience with complex
implementations and our strategic partnerships with hyperscalers and premier CCaaS players.
Complementing TTEC Digital is our TTEC Engage business, which handles millions of last-mile
customer interactions on behalf of the world   s leading brands. Our teams of knowledge workers,
conversational designers, data curators, and analytics experts deliver experiences that consistently
delight our clients and wow their customers.
When we combine the capabilities of these two business segments, we are uniquely positioned to
build and deliver proprietary CX solutions on top of the evolving generative AI platforms. We believe
this not only helps us to support the world   s leading brands more effectively with AI / ML but it also
serves as a moat relative to the rest of our competitors.
In 2022, we marked our 40th anniversary
From our humble beginnings in a tiny nursery school in California, to today, as
a leading global CX partner for many of the world   s most customer-centric
brands, we remain committed to delivering exceptional experiences for our
clients, their customers, our employees, and our shareholders. Learn more about
our journey over the past four decades of CX innovation: ttec.com/40years

As Google, Genesys, Microsoft, Cisco, and AWS develop market
applications for new technologies like generative AI, they are
collaborating with us for our front-line knowledge and CX
technology domain expertise. Together we are investing in
solution development, go-to-market strategies, and delivery
models for this new generation of customer experience.
Human discernment and compassion will play a key role in
building trust as these new AI functions are integrated into
CX solutions. Like many digital innovations before, these new
capabilities will augment our front-line knowledge workers,
enabling them to deliver more personalized and seamless
experiences for our clients    customers.
Our focus for 2023 and beyond
As we look to 2023, we believe that the macroeconomic
environment will continue to be dynamic. As such, we are viewing
2023 as a year focused on disciplined execution. We will continue
to drive toward diversification across clients, geographies,
languages, and solutions to optimize our revenue mix and further
strengthen our margin profile.
We have added significant bench strength to our executive
leadership team. Proven, global digital transformation leader
Shelly Swanback joined us as CEO of TTEC Engage and President
of TTEC. Dave Seybold joined us as CEO of TTEC Digital, bringing
decades of experience driving growth through the design and
implementation of technology solutions at scale. With these two
proven leaders by my side, I   m more confident than ever about
our path forward. Together we are actively navigating the current
environment and doubling down on key priorities that will build
momentum as we progress through the year.
Over the past four decades, we have built a strong foundation
and have always operated with an agile mindset. We have
been resilient and persevered through economic cycles, global
pandemics, and natural disasters. We know that working as a
team, we have demonstrated time and again that we have the
determination, tenacity, and long-term track record and vision
to come out stronger on the other side. We continue to aspire to
double the size of the business, and our resolve is as strong as ever.
From the very beginning, we have strived to build something truly
unique in the industry. We remain energized and excited and we
look forward to continuing to share our progress with you.
Kenneth D. Tuchman
Founder, Chairman and
Chief Executive Officer
We aspire to be the
employer, provider, and
investment of choice.
Through our ESG initiatives
we are dedicated to:

DE&I: Fostering a diverse
workforce where differences
drive innovation, growth and
meaningful connections.

Philanthropy: Investing in
educational programs to enrich
and empower the communities
where we live and operate.

Responsible data management:
Protecting the data entrusted to
us by our clients, their customers,
and our employees by using data
security tools and best practices.

The environment: Maintaining
sustainable, planet-friendly
operations wherever we operate.

Governance: Operating with the
ethics, integrity and compliance
of a well-governed publicly
traded company.
To learn more about our ESG
initiatives, visit ttec.com/esg.



 4/27/2023 Letter Continued (Full PDF)