TTEC Holdings, Inc. (NASDAQ:TTEC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 08:30 am ET


TTEC Holdings, Inc. (NASDAQ:TTEC) Q3 2019 Earnings Conference Call - Final Transcript


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Welcome to TTEC's Third Quarter 2019 Earnings Conference Call. [Operator Instructions] This call is being recorded at the request of TTEC.

I would now like to turn the call over to Paul Miller, TTEC's Senior Vice President, Treasurer and Investor Relations Officer. Thank you, sir. You may begin.

Paul Miller

Thank you, and good morning. TTEC is hosting this call to discuss the third quarter financial results for the period ended September 30, 2019. Participating on today's call are Ken Tuchman, our Chairman and Chief Executive Officer, and Regina Paolillo, our Chief Financial and Administrative Officer.

Yesterday, TTEC issued a press release announcing its financial results. While this call will reflect items discussed within that document, we also encourage you to read our third quarter 2019 quarter report on Form 10-Q.

Before we begin, I want to remind you that matters discussed on today's call may include forward-looking statements related to our operating performance, financial goals and business outlook, which are based on management's current beliefs and assumptions. Please note that these forward-looking statements reflect the opinions as of this date, and we undertake no obligation to revise this information as a result of new developments that may occur.

Forward-looking statements are subject to various risks, uncertainties and other factors that could cause our actual results to differ materially from those expected and described today. For a more detailed description of our risk factors, please review our most recently filed quarterly report on Form 10-Q and Annual Report on Form 10-K.

A replay of this conference call will be available on our website under the Investor Relations section.

I will now turn the call over to Ken Tuchman, TTEC's Chairman and Chief Executive Officer.

Kenneth D. Tuchman

Thank you, Paul, and good morning to everyone. We're excited to share the meaningful progress we made this quarter, executing on TTEC's strategic roadmap to pioneer the CX categories, evolution from legacy contact centers to digitally enabled customer experience hubs, or as we like to call it, driving the disruption with Digital CX.

We continue to deliver strong results and achieve our key financial performance objectives in the third quarter.

In fact, in 2019 is setting up to be a record year for TTEC in terms of revenue and profitability. Year-to-date, through September, revenue increased 8.5% to nearly $1.2 billion, of which, over 99% is organic.

Adjusted EBITDA increased 17% to $146 million. Adjusted operating income increased 46% to $86 million, and adjusted EPS increased 44% to $1.24.

TTEC Digital grew just shy of 32%, and when adjusted for ASC 606 and FX, TTEC Engage grew 6.5% year-to-date. The strategic interplay between our Digital and Engage solutions is a marketplace differentiator that creates a virtuous cycle with the power to further enhance our organic revenue growth and margin expansion.

We're also fortifying our integrated offering through a strong pipeline of accretive strategic acquisitions and meaningful new digital channel partnerships to deliver a truly differentiated customer experience for our clients.

Our focus in these areas reinforces our ability to deliver