TTEC (TTEC) Q4 2024 earnings summary

Executive summary

• 2024 was a transitional year with a 10.4% revenue decline, significant net loss, and a focus on diversification, digital CX expansion, and margin improvement priorities.

• Leadership changes and profit optimization actions were implemented, with expectations for improved financial health in 2025.

• New client wins included 15 new enterprise clients in Engage and 55 in Digital, supporting future growth.

• AI adoption accelerated across both business segments, enhancing operational efficiency and client offerings.

Financial highlights

• Full year 2024 revenue was $2.21 billion, down 10.4% year-over-year; adjusted EBITDA was $202 million (9.2% margin), in line with guidance.

• Operating income was $136 million (6.2% margin), down from $200 million (8.1%) in 2023.

• Full year net loss was $310.6 million (-14.1% margin), mainly due to a $196 million impairment charge.

• EPS dropped to $0.71 from $2.18 year-over-year; GAAP EPS was $(6.52) vs. $0.39 prior year.

• Q4 2024 revenue was $567 million, down 9.4% year-over-year but up 7.2% sequentially.

Outlook and guidance

• 2025 revenue guidance midpoint is $2.04 billion, a 7.6% decrease year-over-year.

• Adjusted EBITDA expected to rise 11.2% to $225 million (11% margin); non-GAAP EPS guidance is $1.08, up 52.5% year-over-year.

• Engage segment 2025 revenue midpoint: $1.571 billion; Digital segment: $468 million.

• Profitability improvements expected to be more pronounced in the second half of 2025.

• Digital segment forecasted to return to growth, with professional and managed services up ~5%.