TTEC Holdings, Inc.

Welcome to T-TECH's fourth quarter and full year 2021 earnings conference call. I would like to remind all parties that you will be in a listen-only mode until the question and answer session. This call is being recorded at the request of T-TECH. I would now like to turn the call over to Mr. Paul Miller, T-TECH Senior Vice President, Treasurer, and Investor Relations Officer. Thank you, sir. You may begin.

Good morning, and thank you for joining us today. T-TECH is hosting this call to discuss its fourth quarter and full year financial results for the period ended December 31, 2021. Participating on today's call are Ken Tuchman, our chairman and chief executive officer, and Dustin Simak, our chief financial officer. Yesterday, T-TECH issued a press release announcing its financial results. Before we begin, I want to remind you that matters discussed on today's call 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 our opinions as of the date of this call and we undertake no obligation to revise this information as a result of new developments which 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 our Form 10-K, which we expect to file in the next couple of days. 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 Tucker.

Thanks, Paul, and good morning, everyone. 2021 was another record year for T-TECH. In addition to delivering strong performance across our key financial and operational metrics, we made significant progress expanding our CX technology capabilities. Today, T-TECH is the largest global pure play CX technology partner in the market. Our end-to-end ecosystem is enabling growth and commerce for some of the most customer-centric and innovative brands and governments across the globe. I'm excited to share many highlights from the year. I'll start with our record 2021 financial results. Bookings increased 14% to $751 million. Revenue increased 17% to $2.27 billion. Adjusted EBITDA increased 17% to $354 million. And non-GAAP EPS increased 21% to $4.62 per share. Our ability to consistently outperform our goal is the result of our strategic vision and steadfast execution. Over the past decade, we've continuously advanced our industry leadership position with meaningful investments in CX leadership, technology, and capabilities. In the last three years, our revenue has grown 50% and our EPS has grown 200%, a solid demonstration that our strategy is working. And there is plenty more to come. With so much opportunity in the market, we will continue to judiciously increase our investment to increase our rate, including expanding our sales and marketing, executive leadership, product and offering innovation, and client delivery footprint. Before I dive into our growth strategy, I'd like to recap our progress over the past three years. I'll start with our digital business. Over the course of the last three years, we have grown our digital revenue by 73%. We acquired and integrated three proven leading-edge CX technology companies, Avtex, Serendibite, and Voice Foundry. We've established T-TECH as the largest strategic partner with the most noteworthy CX enterprise technology players. We have advanced our proprietary CX IT with digital engineering solutions that simplify interactions, accelerate deployments, and integrate complex platforms. We have created a highly scalable, profitable new revenue stream, selling our proprietary IP on digital marketplaces. We have significantly increased our total addressable market with a set of differentiated, outcome-based mid-market solutions. And we have continued to expand our deep bench of certified full-stack technology engineers and CX architects. We have a robust client base. Over the last three years, we've increased the number of significant clients 150% from 300 clients to now over 750 clients in the last three years. Bookings from new logos increased 63% per annum. Integrated deals increased 37% per annum. and hypergrowth client revenue grew 44% per annum. Combining the breadth and depth of our client relationships with our new logo acquisitions has and will continue to enable significant growth in our bookings, backlog, and revenue. Our progress over the past three years has been acknowledged in the CX Leadership Rankings of Industry Analysts at Gartner, Forrester, Everest, and IDC, In addition, we continue to be cited as an employer of choice across the globe, including recognition by Forbes as one of America's best large employers. Over the last three years, we have truly transformed our business. We established ourselves as the world's leader in customer and employee experience. Our portfolio of CX technologies, enabled solutions, client and partner relationships, CX expertise, IP and footprint will undoubtedly serve us well as we enter the next phase of profitable growth. With a current CX TAM estimated at $640 billion, T-TECH serves only a sliver of the market. Given our differentiated platform and market momentum, it makes sense to smartly invest now to gain market share. Let me provide some context. Consumers have unequivocally crossed the threshold into a digital world that provides a new and better ways to work, play, learn, and connect. Regardless of the channel, product, service, or brand they choose, consumers expect every interaction to be seamless, effortless, and personalized. Their embrace everything digital has accelerated the pace of CX virtualization. At the same time, the need for compassionate human intervention has also grown. Technology can only go so far when it comes to successfully sensing and responding to human needs. Those brands that figure out how to harness the power of technology and combine it with human empathy at scale will be the winners. New entrants into the CX market, like large IT solution providers, view their world through a technology lens, not a customer-focused lens. T-TECH's CX obsession is grounded in decades of experience working the front lines, managing hundreds of millions of customer interactions. We know what delights or frustrates the customer by persona, intent, and channel. We know the experiences that build customer loyalty or destroy it. And most importantly, we know how to blend technology and humanity to build customer value strategically at scale. Let me share a relevant example from this quarter's bookings. A highly capitalized fintech company with a vision of building a digital-first company with customer centricity as their true north. They were on a fast track with a priority to deliver exceptional CX. After an extensive market review, they chose our one T-TECH solution. We were selected based on the breadth of our CX technology, operational capabilities, and deep financial service credentials, and proven ability to move quickly and scale rapidly as their business accelerates and grows. With these tailwinds as a backdrop, we've evolved our growth pillars to take advantage of the vast market opportunity. The first is technology innovation and differentiated IP. Through our own IP development and targeted acquisitions over the past decade, T-TECH has grown into the largest pure play CX technology provider in the world. Let me dimensionalize the size and scale and exclusive focus on CX at T-TECH Digital for you. Today... deliver and deploy thousands of complex CX technology projects every year. We build sophisticated data lakes, integrate massive CRM systems, develop complex automation algorithms, architect seamless self-service applications, and create next-gen functionality with our proprietary IP. We hold and manage hundreds of thousands of SaaS licenses that route billions of omni-channel interactions on a daily basis. We operate a dynamic learning environment for our global team of full-stack engineers to enable them to earn hundreds of certifications across the most attractive CX technology platforms. And as a result, we have continually been recognized as Partner of the Year by some of the largest global enterprise CX tech players in the marketplace. Now let me unpack our T-TECH digital business model. We operate four centers of excellence. that are interconnected through our proprietary experience 360 methodology. It is our approach to combining strategic consulting and digital engineering to deliver lasting customer and employee experience transformation. Our experience strategy team uses design thinking and voice of the customer techniques to build transformational roadmaps, both at the company level and within key operating units. These highly strategic projects typically yield material follow-on revenue for both our digital and engaged business units. Our intelligence and insight teams, which we call digital experience, focuses on data, AI, and CRM to help companies capture, manage, analyze, and act on customer data. Over the past two years, we've combined our IP with the leading global digital platforms to deliver transformational results for thousands of clients. Our omni-channel team, which we call Interaction Experience, builds omnichannel engagement hubs in the cloud to enable intelligent, predictive interactions across the entire customer journey. We're the largest go-to partner for cloud migrations for several of the global enterprise CCaaS tech giants. And finally, our Experience Innovation Team pushes beyond existing new platforms to create package proprietary SaaS-based offerings that address gaps in the CX technology ecosystem. Our IP is utilized by hundreds of clients through our partner's marketplace, enables seamless interactions across hundreds of thousands of endpoints. Our four-pronged P-TECH digital model enables us to help companies achieve their growth objectives with a strategic vision and an actionable roadmap. Our land and expand approach provides us with a sphere of influence that broadens from single to standalone projects to long-term full-scale transformations. Our clients choose to grow with us because we continually deliver the results that matter most to them, increased revenue, profitability, and customer loyalty. A prime example of the power of this approach is in our work with a leading medical device provider. Our relationship began when they purchased our packaged IT on a technology marketplace. They were seeking tools to help them move from a disconnected contact center to a streamlined health advocate hub. they quickly realized that they required far more than a single application. To create transformational change that was vital to their future, they needed a comprehensive strategy and a roadmap that only a CX expert like T-TECH Digital could deliver. Working together, we've delivered measurable improvements in their speed to market, ability to scale, and employee productivity and customer loyalty. It's important to note that our leading-edge CX technology ecosystem also powers every one of our engaged programs. For example, we're using AI to recruit, hire, and train CX ambassadors, advanced analytics to deliver proactive and predictive routing, and automation to drive frontline processes and optimization. Focused on what is coming next, our dedicated Engage innovation team is working on CX 3.0 with investments in R&D initiatives around 5G, IoT, and the immersive web. Now on to pillar number two, deep verticalization. As the customer journey becomes more personalized and complex, the need to tailor interactions by industry has become critical. Whether customers researching options for a mortgage on their mobile phone, checking for the results of their recent blood test on their laptop, or scheduling a service appointment through their smart car dashboard, they expect the experience to be personalized, relevant, and simple. For decades, we've been fine-tuning our industry expertise across both legacy and hyper-growth verticals. This includes financial services and fintech, healthcare and health tech, retail and e-commerce, automotive and mobility, public sector and smart cities, among others. From offer development to technology solution design to ongoing CX operations, We've aligned every facet of our go-to-market and delivery around the needs and requirements of the end customers of these verticals. In December, we took another step on our verticalization strategy when we announced an agreement sector citizen experience platform and smart city assets of FANUL. The acquisition is expected to drive significant growth in the $19 billion TAM for tech-enabled citizen engagement solutions. Our third pillar is diversification, which creates multiple vectors to enable consistent growth and mitigate concentration risk. Through organic initiatives, partnerships, and acquisitions, we're diversifying our client mix, industry focus, tech partners, capabilities, and geographic expansion. For example, we're growing in emerging markets with skilled resources for both digital and engaged, building new technology partnerships to enable next-gen functionality, and enhancing capabilities for thriving mid-market segments. Our fourth pillar, strategic and accretive M&A, is driven across three key areas. We will pursue acquisitions that align with our strategic pillars and are accretive to our profitable growth profile and provide an attractive delivery footprint. We have a robust pipeline and I look forward to sharing our progress in the months ahead. Our fifth pillar is maintaining a strong financial profile with profitable growth and record cash flow. Despite lingering global pandemic, economic challenges, and climate threats of historic proportions, we've consistently delivered strong top-line growth and execution of our key financial priorities. Time and again, we've demonstrated unwavering resilience by keeping and even exceeding our commitments to our shareholders, clients, and employees. As T-TECH approaches our 40th anniversary later this year, we're well-positioned to accelerate our next phase of growth. The world is now fully entrenched in the experienced economy, and the ability to deliver amazing, personalized, effortless CX will define success for every brand and government. As our continued strong performance demonstrates, industry leaders across the globe are choosing T-TECH as their virtual engine to power their customer experience T-TECH has always been guided by the belief that when we live our core values, we create our business value. Our determination to make a difference for our people, the communities in which we live, our planet at large, is hardwired into everything we do. Yesterday, we released our first comprehensive ESG report. I encourage you to take the time to review and experience the way in which we're building a thoughtful, caring, responsible company. With a mission and vision to bring humanity back to business, and a T-TECH family of over 65,000 people operating on six continents, building exceptional engagement is a must. In closing, on behalf of our board, our management, and our employees across the globe, thank you for your continued support. I could not be prouder of our progress and more excited about our future. Now I'll hand it over to Dustin.