TTEC Holdings, Inc.

Welcome to TTAC's first quarter 2022 earnings conference call. I'd like to remind all parties that you'll be in a listen-only mode until the question and answer session. This call is being recorded at the request of TTAC. I would now like to turn over the call to Paul Miller, TTAC's Senior Vice President, Treasurer, and Investor Relations Officer. Thank you, sir. You may begin.

Good morning and thank you for joining us today. T-TEC is hosting this call to discuss its first quarter financial results for the period ended March 31st, 2022. Participating on today's call are Ken Tuckman, T-TEC's Chairman and Chief Executive Officer, Dustin Simak, T-TEC's Chief Financial Officer, and Shelley Swanback, our newly appointed Chief Executive Officer of T-TEC Engage. Yesterday, T-TEC issued a press release announcing its financial results. While this call will reflect items discussed within that document, For complete information about our financial performance, we also encourage you to read our first quarter 2022 quarterly 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 our opinion 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 2021 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 Kim.

Thanks Paul and thanks everyone for joining us this morning. Before I discuss the highlights of our first quarter performance, I'd like to share details on the exciting announcement yesterday that we've named Shelley Swanback as our new Chief Executive Officer of T-TECH Engage. With a proven track record driving significant growth in a dynamic digital environment, Shelley is both a market maker and a strong cultural leader. With over 30 years of experience in digital transformation, strategic consulting, technology, services, analytics, and M&A. Many of you may know Shelley from her time at Accenture, where she launched and built Accenture Digital into a global transformation powerhouse with more than $20 billion in annual revenue. Skilled at driving innovation globally and at scale, Shelley brings vertical industry knowledge, customer experience domain expertise, and strength in digital product development to T-TECH. Shelley loves to win. and is completely aligned with our ambition to double our business in the next five years. A seasoned market-facing leader who excels at creating strategic value for clients, partners, employees, and shareholders. Shelley has the energy, intellect, and expertise to take T-TECH to the next level. At the helm of our Engage business, she will be responsible for driving growth, digital innovation, and global expansion. In finding the right leader for T-TECH Engage, Character and cultural fit were extremely important to us. Shelley's authentic, empathetic leadership style emerged immediately in our discussions, and her passion for developing and bringing out the best in every employee aligns perfectly with our value-driven culture. At this time of explosive growth in the digital experience economy, Shelley will amplify and accelerate our progress as we further capitalize on the immense opportunity for T-TECH on the horizon. Now let's turn to the first quarter. 2022 is off to a solid start. Demand for digital CX transformation continues to grow as top performing companies across industries and geographies intensify their focus and investment in digitizing the customer experience. Through our two businesses, Digital and Engage, we operate at the heart of these transformation agendas. Our ability to help clients drive growth, increase revenue, improve profitability, and build lasting trust and brand loyalty continues to position us as a strategic go-to CX partner across the globe. Our holistic customer experience as a service platform provides all the capabilities a corporate brand or government agency needs to deliver the effortless experiences that today's hyper-connected customers require. With a strong pipeline and significant large deal activity underway, T-TECH remains well positioned to benefit from the healthy market momentum. Our performance in the first quarter was driven by a broad and diverse set of established marquee brands, hyper growth disruptors, and public sector agencies across the full range of our comprehensive CX technology and service capabilities. Bookings increased 15% to 195 million. Revenue increased 9% to 589 million. And adjusted EBITDA was 86 million as we executed on our planned increase in growth-oriented investments. We made meaningful progress this quarter against our five strategic priorities. First, technology innovation and differentiated IP. Second, deep vertical, excuse me, deep industry verticalization. Third, enterprise-wide diversification across client segments, industries, capabilities, and geographies. And fourth, strategic and accretive M&A And lastly, maintaining a strong financial profile. Today, I'll focus my remarks on several representative examples of execution of these priorities this quarter. I'll begin with technology innovation and differentiated IP, which is driving growth for both our digital and engaged businesses. We're very pleased with the progress on the digital side of our business. Over the last 12 months, we've sold over $265 million in bookings, up 97% over the prior year period. added 47 new logos, up 194% from the prior period, grew revenue 58% over the prior year period, accelerated the growth of our IP business, which is up 64 business on a pro forma basis, and won several partner awards reflecting our deep relationships with the CX technology ecosystems. In addition, we've dramatically expanded our total addressable market to include the growing universe of mid-sized companies and we've added new IP, innovative technologies, service capabilities, and partnerships to our comprehensive CX platform. The market response to our diversified set of premium CX technology solutions and services has been extremely positive. Our domain expertise and exclusive focus on CX continues to set us apart as T-TECH clients increasingly take advantage of the full breadth of our omni-channel, CRM, automation, and analytic solutions. We're seeing engagements increase in scale, scope, strategic impact, and economic value for our clients, their customers, and T-tech. In our engaged business, innovation is taking the form of new technologies, tools, and processes to help our teammates be more efficient, effective, and empathetic. We're investing in collaboration automation and analytics to ensure each healthcare advocate, financial service advisor, citizen engagement partner, retail concierge, auto mobility expert, and our other industry brand advocates have the technology and the knowledge they need to deliver seamless experiences to every one of our clients' customers. Our next pillar is deep industry verticalization. It's designed to help clients deliver experiences that are intent-driven, relevant, specialized, and personalized at scale. We've built vertical pods that link our go-to market motion with our operational delivery teams to continue to stay ahead of the changing dynamics in each industry. This integrated approach is unlocking deep industry expertise and building material scale to strengthen our long-term client relationships and provide momentum for the most compelling future growth opportunities. A prime example of this verticalized approach is our continued focus on the public sector. In early April, we closed the asset acquisition of the public sector citizen experience leader, Faneuil Inc. to further enhance our government services expertise. Integrating this new asset into T-TECH will enable us to respond with services built for fast-growing public sector demand in areas such as mobility, fleet management, congestion management, tolling, and transportation, government healthcare exchanges, labor and social benefit delivery, and emergency response systems. In addition, this example of our strategic accretive M&A growth pillar This expanded back office capabilities, including image review and processing and machine learning enabled data annotation. These solutions are in high demand and will provide us with a broader foundation for growth across multiple industries and clients. We've doubled down on the public sector in response to several sustainable trends specific to government. Last year, President Biden issued an executive order on transforming the customer experience and service delivery to rebuild trust in the federal government. This presidential action emphasized the urgency to improve the citizen experience by modernizing technology, automating processes, and reducing friction to better meet the needs of citizens. This spotlight on citizen centricity shines right in our sweet spot. We have been partnering with federal, state, and local agencies for decades, and we've worked hard to earn the credentials and the certifications required to do the business in the public sector. These authorizations create a high barrier to entry for competitors wanting to move into this space. Our differentiated citizen-first approach continually delivers the best outcomes for public sector clients, whether we're redesigning complex processes, standing up a CX ecosystem, or launching new digital solutions to personalize high-volume interactions at scale. For example, this quarter, we were awarded a significant contract with the state of Indiana to transform their citizen experience across the entire state. This comprehensive win includes upfront CX consulting, detailed journey mapping, the migration of their technology from on-premise to cloud, and managed services required to ensure that going forward every citizen of Indiana has an experience that is modern, seamless, and positive across all interaction channels. This meaningful win is but one of many conversations we're having with public sector agencies around migration to the cloud. Once hesitant about security and operational constraints, They're now fully embracing the idea of making the move to take advantage of the speed, flexibility, and feature-rich capabilities the cloud provides. These transformation projects are complex and provides long-term reoccurring revenue for T-TECH. With decades of experience working in the public sector and partnerships with all the leading CX technology providers, we expect to see a long tail of public sector opportunity in the quarters ahead. Now, I'd like to share a perspective on the current global market backdrop. which is highly dynamic and has numerous variables at play. As an industry pioneer who is constantly pushing the boundaries of what is possible now and into the future, we have proven time and time again that our defensible model enables us to quickly adjust to changing conditions. We've endured hurricanes, pandemics, earthquakes, tsunamis, social unrest, recessions, and the full range of economic cycles. Through trusted partnerships with our clients, and the grit and dedication of our employees, we've excelled through them all. Our solid track record of innovation and leadership across the full range of business cycle is a result of our deliberate diversification strategy that includes geographic geographies, verticals, clients, partners, and solutions. We've built a flexible operating model and made the investments required to ensure that we have the breadth, optionality, resilience, and balance sheet required to navigate the potential headwinds on the horizon. And we continue to invest in our future, as demonstrated with our announcement yesterday about our new engaged CEO. Shelley Swanback will continue to add significant leadership strength to our senior management. In addition, we continue to seek out strategic and accretive acquisitions and we're continually creating new solutions to expand our total addressable market and stay ahead of our clients and their customer needs. We are honored that our market strength continues to be recognized by leading industry analyst firms. This quarter, our engaged business was recognized by Gartner as one of the select few leaders in their 2022 Magic Quadrant for customer service BPO. Our position in the upper right quadrant illustrates our continued leadership in both CX technology and services. In an increasingly competitive virtual environment, the ability to personalize every interaction with empathy and context is what separates brands that are trusted and loved from those that are avoided or abandoned. For almost 40 years, we've been partnering with the most customer-obsessed brands to acquire, retain, and grow trusted, profitable customer relationships by delivering effortless, engaging experiences that build brand loyalty. Today, we're well positioned as ever to continue to deliver these positive outcomes to our clients, their customers, our employees, and our shareholders. We're thrilled to welcome Shelly to our T-TECH family, and she can't wait to get to know each of you. On behalf of our board, management team, and our amazing employees across the globe, thank you for your continued support. I'll now hand it off to Dustin for the financial details.