TTEC Holdings

TTEC Holdings Ticker :    TTEC

7/6/2020 Stock Price :  $46.01

7/6/2020 Market Cap :  $2.04B

Total Shares Outstanding Recent Quarterly Report :   47 million shares

TTEC Holdings Investor Relations Page

https://investors.ttec.com/investor-overview

TTEC Holdings SEC Page

https://www.sec.gov/cgi-bin/browse-edgar?CIK=ttec&owner=exclude&action=getcompany

TTEC Holdings Glassdoor Ratings

https://www.glassdoor.com/Reviews/TTEC-Reviews-E5944.htm

TTEC Holdings Overview

TTEC Holdings, Inc. is a leading global customer experience technology and services company focused on the design, implementation and delivery of transformative customer experience for many of the world’s most iconic and disruptive brands. TTEC Holdings delivers outcome-based customer engagement solutions through TTEC Digital, its digital consultancy that designs and builds human centric, tech-enabled, insight-driven customer experience solutions for clients and TTEC Engage, its delivery center of excellence, that operates customer acquisition, care, fraud prevention and detection, and content moderation services. Founded in 1982, TTEC Digital has 48,700 employees operate on six continents across the globe and live by a set of customer-focused values that guide relationships with clients, their customers, and each other.

Products

TEC Digital designs, builds and delivers tech-enabled, insight-based and outcome-driven customer experience solutions through our professional services and suite of technology offerings. These solutions are critical to enabling and accelerating digital transformation for our clients.

o Technology Services:  Our technology services design, integrate and operate highly scalable, digital omnichannel technology solutions in the cloud, on premise, or hybrid, including journey orchestration, automation and AI, knowledge management, and workforce productivity.

o Professional Services:  Our management consulting practices deliver customer experience strategy, analytics, process optimization, and learning and performance services.

TTEC Engage provides the essential technologies, human resources, infrastructure and processes to operate customer care, acquisition, and fraud detection and prevention services.

o Customer Acquisition Services:  Our customer growth and acquisition services optimize the buying journeys for acquiring new customers by leveraging technology and analytics to deliver personal experiences that increase the quantity and quality of leads and customers.

o Customer Care Services:  Our customer care services provide turnkey contract center solutions, including digital omnichannel technologies, associate recruiting and training, facilities, and operational expertise to create exceptional customer experiences across all touchpoints.

o Fraud Prevention Services:  Our digital fraud detection and prevention services proactively identify and prevent fraud and provide community content moderation and compliance.

Financials

Revenue Growth – 8.8% annual

Operating Margin – 6.1% 2018 7.5% 2019 and growing 1Q 2020

Net Income – 77M vs 36M

Working Capital – 2.5 times in 2020

Cash – Used of line credit ($400M) to increase cash

Long Term Debt – $120M

Cash flow from operations – down from 79 to 62

On February 7, 2020, TTEC Digital acquired, through its subsidiary TTEC Digital, LLC (“TTEC Digital”), 70% of the outstanding shares of capital stock of Serendebyte Inc. Serendebyte is an autonomous customer experience and intelligent automation solutions provider with 125 employees based in India, the United States, and Canada. The business has been integrated into the TTEC Digital segment and is being fully consolidated into the financial statements of TTEC.

Total cash paid at acquisition, for 70% of the outstanding shares of capital stock, was $9.0 million. 

Competition

TTEC competitors include Alorica, Infosys, Teleperformance and Minacs.

Future Outlook

In response to the pandemic, TTEC was able to help its clients transition to digital delivery of services. With companies focused on surviving the transformational part of the business will suffer but is offset with assistance to digital is strengthening the relationship.

Risks

We also assume that some of the new business volume we originally anticipated to be signed in 2020 is at risk. Automotive comprises approximately 12% of our anticipated 2020 revenue. Travel and hospitality and retail each comprise about six %.

Disclaimer: I do not have any formal recommendation for or against this stock, so don’t buy or sell stocks based solely on what you read.

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