TTEC Holdings, Inc. reported significant financial changes in its Q3 2024 results, reflecting a challenging market environment. For the three months ended September 30, 2024, the company generated revenue of $529.4 million, a decrease of $73.5 million (12.2%) compared to $602.9 million in Q3 2023. This decline was attributed to reduced performance in both of its business segments: TTEC Digital, which saw a revenue drop of $17.6 million (13.2%), and TTEC Engage, which experienced a decrease of $55.9 million (11.9%).
Operating income for the third quarter was $12.9 million, down 49.2% from $25.4 million in the prior year, representing 2.4% of revenue compared to 4.2% in Q3 2023. The decline in TTEC Digital's operating income was primarily due to lower one-time on-premise revenue and increased investments in talent. TTEC Engage's operating income fell significantly by 59.8%, impacted by lower revenue and start-up costs for new contracts.
The company reported a net loss of $21.1 million for Q3 2024, contrasting with a net loss of $1.5 million in the same period last year. This resulted in a net loss per share of $(0.44), compared to $(0.03) in Q3 2023. For the nine months ended September 30, 2024, TTEC's total revenue was $1.64 billion, down from $1.84 billion in the same period in 2023, with a net loss of $315.2 million compared to a net income of $26.5 million in the prior year.
Total assets decreased to $1.83 billion as of September 30, 2024, from $2.19 billion at the end of 2023, while total liabilities also fell to $1.53 billion from $1.57 billion. Cash and cash equivalents dropped significantly to $96.9 million from $172.7 million at the end of 2023. The company’s retained earnings also saw a substantial decline, falling to $544.6 million from $870.4 million.
Strategically, TTEC completed the acquisition of a 70% interest in Serendebyte Inc. and is evaluating a proposal from CEO Kenneth Tuchman to take the company private at $6.85 per share. The company has also terminated its Uncommitted Receivables Purchase Agreement, which previously allowed the sale of U.S. accounts receivables at a discount.
Overall, TTEC's financial performance in Q3 2024 reflects a combination of revenue declines, increased operational costs, and strategic shifts aimed at navigating a challenging business landscape.
About TTEC Holdings, Inc.
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