TTEC's 2025 Q1 Earnings Call: Navigating Contradictions in Client Adoption, Offshore Growth, and Cost Strategies

Client adoption and cautiousness, offshore revenue mix and margin growth, cost optimization and offshore expansion, client caution and investment decisions, offshore demand and growth strategy are the key contradictions discussed in TTEC's latest 2025Q1 earnings call.



Revenue Retention and New Business:
- TTEC reported a decline in revenue to $534 million for Q1 2025, compared to $577 million in the prior year, representing a 7.4% decrease.
- Despite this decline, TTEC noted that Q1 revenue was in line with forecast, driven by strong revenue retention from existing clients, with contracts worth over 75% of what was signed in all of last year.

Profitability Improvement:
- TTEC saw an improvement in EBITDA margins to 10.6% compared to 9.5% in the prior year.
- This was attributed to operational efficiencies, an expanded offshore footprint, and accelerated AI integration.

Digital Segment Growth:
- TTEC’s digital revenue grew 2.8% year-over-year, excluding one-time product sales, and increased 2.7% for recurring managed service offerings.
- Growth in the digital segment is driven by a focus on recurring managed service offerings and partnerships with hyperscalers.

Engage Segment Profitability:
- The Engage segment's first quarter revenue decreased 8.3%, but EBITDA margin improved by 70 basis points year-over-year.
- The segment's financial performance benefited from profit optimization initiatives implemented in the latter half of 2024, including cost alignment and operational delivery efficiencies.