NASDAQ$TTEC

Ttec Holdings In · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2023 financial results.

TTEC's Q4 2023 revenue was $626.2 million, a decrease of 4.9 percent. Operating income was $16.9 million, or 2.7 percent of revenue. Net income was ($8.2) million, or (1.3) percent of revenue. Fully diluted EPS was ($0.17), with non-GAAP EPS at $0.37.

  • 2023 was a dynamic year influenced by macroeconomic factors that delayed client contracting decisions and lowered forecasts.
  • The company continued diversifying its business by expanding its client base, completing a strategic phase of geographic expansion, and expanding its AI-enabled solutions.
  • TTEC Digital delivered record bookings in the fourth quarter.
  • The board of directors decided to reduce the dividend to prioritize capital deployment towards sustainable growth initiatives and debt reduction.

Headline financials

Total Revenue

$625M

Previous: $658M-5.1%
EPS (adj)

$0.37

Previous: $0.89-58.4%
Adjusted EBITDA Margin

9.2%

No prior period
Operating Margin

2.7%

No prior period
Non-GAAP Operating Margin

6.7%

No prior period
Effective Tax Rate

-62.0%

No prior period
Capital Expenditures

-$13.1M

Previous: $19.4M-167.4%
Net Income

-$8.2M

Previous: $25.6M-132.0%
Operating Income

$16.9M

Previous: $48.7M-65.3%
Gross Profit

$94.2M

Previous: $163M-42.2%
Stock-Based Comp

$5.66M

Previous: $4.33M+30.7%

Revenue & EPS history

TTEC · Revenue · Quarterly

$625M

Q4 2023-5.1%vs Q4 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

TTEC anticipates a reduction in 2024 revenue and margin outlook compared to 2023 due to dynamics in the Engage segment.

Tailwinds

  • Digital transformation continues to be a top priority for clients.
  • Growing momentum with TTEC Digital is encouraging.
  • Initiatives are currently in motion that focus on growth and margin improvement.
  • The company is confident in navigating the environment to position the company to exit 2024 with a view towards longer-term profitable growth.

Headwinds

  • Client budget constraints and a conservative mindset in the second half of 2023 is carrying forward into the 2024 outlook.
  • A long-tenured client eliminated one of several lines of business that TTEC supported.
  • The discontinuation of one line of business contributes to the impact on TTEC's top and bottom line in 2024.
  • The timing lag between recent wins and normalized revenue run rate and margins is weighing on the outlook.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-1.4%

Avg return

Earnings day

-3.3%

Avg return

5 days after

-1.2%

Avg return

30 days after

42%

28 / 66 earnings

Positive

+31.9%

Q1 2025

Best reaction

-29.8%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%-18.1%-27.2%
Q4 2025+13.1%+7.7%+0.5%
Q3 2025-4.0%-16.2%+9.5%
Q1 2025+31.9%+28.3%+25.3%
Q4 2024-7.4%-6.3%-3.0%
Q3 2024-8.7%-8.6%-2.1%
Q2 2024-15.7%-19.3%-16.8%
Q1 2024-9.9%-6.0%-20.4%
Q4 2023-20.0%-28.3%-40.2%
Q3 2023-29.8%-27.4%-7.1%
Q2 2023-1.9%-11.0%-7.7%
Q1 2023+5.7%+0.5%+3.5%
Q4 2022-15.9%-14.3%-23.3%
Q3 2022+11.8%+12.3%+13.7%
Q2 2022-18.1%-20.8%-30.8%
Q1 2022-6.0%-11.0%-6.5%
Q4 2021-0.6%-4.9%+3.8%
Q3 2021-7.7%-12.8%-12.0%
Q2 2021-0.2%+3.8%+9.9%
Q1 2021-2.6%-2.3%+2.6%
Q4 2020+2.9%-2.9%+19.4%
Q3 2020+4.6%+3.8%+23.1%
Q2 2020+14.1%+11.6%+8.9%
Q1 2020+3.9%+9.1%+17.6%
Q4 2019+2.8%-6.3%-14.2%
Q3 2019+4.1%-1.5%-18.1%
Q2 2019+5.1%+5.2%+6.7%
Q1 2019+5.6%+2.8%+8.6%
Q4 2018-0.5%+2.3%+6.3%
Q3 2018+14.6%+24.0%+15.5%
Q2 2018-17.6%-18.8%-18.8%
Q1 2018+2.3%+2.5%+12.6%
Q4 2017-4.9%-9.9%-15.2%
Q3 2017-4.8%-9.1%-4.3%
Q2 2017-2.6%+0.9%-5.0%
Q1 2017+13.4%+15.6%+28.1%
Q4 2016-3.8%-2.1%-4.9%
Q3 2016-5.6%-3.3%+13.9%
Q2 2016+1.2%+3.9%+0.7%
Q1 2016-6.4%
Q4 2015-4.4%
Q3 2015-6.1%
Q2 2015+2.0%
Q1 2015-3.1%
Q4 2014+4.5%
Q3 2014-5.3%
Q2 2014-6.9%
Q1 2014+2.7%
Q4 2013+13.8%
Q3 2013-1.3%
Q2 2013+1.2%
Q1 2013-1.9%
Q4 2012+4.5%
Q3 2012+0.9%
Q2 2012-1.2%
Q4 2011-1.2%
Q1 2012+3.0%
Q3 2010+4.7%
Q3 2011+4.7%
Q2 2011-8.0%
Q1 2010+0.7%
Q1 2011-0.8%
Q4 2009-10.2%
Q2 2010-10.2%
Q4 2010-10.2%
Q4 2008-10.2%

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