TTEC Holdings, Inc. (NASDAQ:TTEC) has released its financial results for the fourth quarter and full year of 2023, revealing both positive and negative changes in various key metrics.
The company's full-year revenue for 2023 increased by 0.8 percent to $2.463 billion compared to the previous year. However, its operating income decreased to $118.0 million, down from $168.5 million in the prior year. Non-GAAP income from operations was $200.4 million, representing 8.1 percent of revenue, compared to $248.5 million, or 10.2 percent in the prior year. Adjusted EBITDA for the full year was $271.5 million, down from $320.1 million in the prior year.
In the fourth quarter of 2023, TTEC experienced a 4.9 percent decline in revenue to $626.2 million, down from $658.3 million in the prior year. The operating income for the quarter was $16.9 million, compared to $48.7 million in the previous year. Non-GAAP income from operations was $41.8 million, or 6.7 percent of revenue, down from $69.9 million, or 10.6 percent in the prior year. Adjusted EBITDA for the quarter also decreased to $57.5 million, down from $86.5 million in the prior year.
The company's full-year GAAP fully diluted earnings per share (EPS) dropped to $0.39 compared to $2.48 in the previous year, while non-GAAP fully diluted EPS was $2.18 compared to $3.59 in the prior year. In the fourth quarter, GAAP fully diluted EPS was ($0.17) compared to $0.54 in the previous year, and non-GAAP fully diluted EPS was $0.37 compared to $0.91 in the prior year.
TTEC also provided its outlook for the full year 2024, with revenue expected to be in the range of $2,275 million to $2,365 million and non-GAAP adjusted EBITDA in the range of $215 million to $259 million.
The company's financial highlights for 2023 also included strong cash flow and balance sheet metrics. For the full year, cash flow from operations was $144.8 million, compared to $137.0 million for the same period in 2022. TTEC had cash and cash equivalents of $172.7 million and debt of $999.3 million as of December 31, 2023.
TTEC's segment reporting revealed that while its TTEC Digital segment experienced a decrease in revenue, its TTEC Engage segment also saw a decline in revenue and income from operations compared to the prior year.
The company's officials commented on the challenges faced in 2023 and outlined their focus on executing strategies and capital deployment to support growth initiatives and debt reduction associated with strategic acquisitions.
For the first quarter and full year 2024, TTEC provided guidance for revenue, non-GAAP adjusted EBITDA, non-GAAP operating income, and non-GAAP earnings per share for both its Engage and Digital segments.
It's important to note that TTEC included non-GAAP financial measures in its press release to allow investors and analysts to measure, analyze, and compare its financial condition and results of operations in a meaningful and consistent manner. Following these announcements, the company's shares moved -20.5%, and are now trading at a price of $13.87. If you want to know more, read the company's complete 8-K report here.
