TTEC (TTEC)2025-02-28 20:23Financial Data and Key Metrics Changes - For full year 2024, revenue decreased by 10.4% to 2.46 billion in the prior year, while adjusted EBITDA was 272 million or 11% [30][31] - Fourth quarter 2024 revenue was 51 million or 9% of revenue [32][34] - Cash flow from operations was negative 145 million in the prior year, primarily impacted by the discontinuation of the accounts receivable factoring facility [47] Business Segment Data and Key Metrics Changes - In the Digital segment, fourth quarter revenue was 119 million year-over-year, but recurring managed services grew by 10.2% [35][36] - The Engage segment saw fourth quarter revenue decrease by 10.8% to 1.75 billion, down from 85 million or 4.9% of revenue [42][43] Market Data and Key Metrics Changes - The company reported a last twelve-month revenue retention rate of 82% for the Engage segment, down from 95% in the prior year, but adjusted for a large client, the rate is 87% [45] - The Digital backlog for the next twelve months is at 45 million, or 2% of revenue, down from $68 million or 2.8% in the prior year, with a focus on geographic expansion [50] - The normalized tax rate for 2024 was 40.9%, significantly higher than the prior year's 22.7%, due to the impact of U.S. valuation allowances [50][51] Q&A Session Summary Question: How is AI being integrated into deals and what impacts does it have? - Management indicated that over 150 AI projects are underway, enhancing service quality and associate productivity, with AI tools being implemented across operations [60][62] Question: Can you clarify the 2025 revenue guidance and its assumptions? - Management explained that the guidance is based on sequential growth, with new enterprise clients expected to contribute significantly in the second half of 2025 [69][72] Question: What are the margin improvement strategies for 2025? - Management highlighted ongoing cost structure adjustments and the infusion of AI into operations as key drivers for margin improvement [74][78] Question: How does the offshore delivery impact margins? - Management noted that the offshore mix improved by 300 basis points in 2024 and is expected to continue growing, but margin expansion is more heavily influenced by operational improvements [96][98] Question: How confident is the company in the second half of 2025? - Management expressed high confidence in forecasting revenue for the second half of 2025 based on the onboarding cycle of new clients and existing pipeline visibility [100][102]