TTEC Holdings, Inc.

Welcome to T-TECH's fourth quarter in full year 2022 earnings conference call. I would like to remind all parties that you will be in the 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 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 2022 financial results for the period ended December 31, 2022. Participating on today's call are Ken Tuchman, Chairman and Chief Executive Officer of T-TECH, Shelley Swanback, Chief Executive Officer of T-TECH Engage and President of T-TECH, and Dustin Simak, Chief Financial Officer of T-TECH. Yesterday, T-TECH 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 2022 Annual Report on Form 10-K, which we anticipate will be filed at market close today. 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 that may occur. Forward-looking statements are subject to various risks, uncertainties, and other factors that could cause or actual result to differ materially from those expected and described today. For a more detailed description of our risk factors, please review our 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.

Thank you, Paul. Good morning, everyone, and thank you for joining us today. We ended 2022 with solid execution and financial results, despite the increased uncertainty surrounding the global macroeconomic environment. Our performance reflects our broad and diverse base of global clients, our expertise across strategic verticals, and our full range of digital CX technology, AI, and service capabilities. For the full year of 2022, bookings were $762 million. Revenue increased 9.4% to $2.44 billion on a constant currency basis. Adjusted EBITDA was $326.6 million, or 13.4% of revenue. In addition, last year, we enhanced our public sector vertical with a meaningful acquisition. We publicly launched our strategic partnership with Google. We deepened our partnership with each of our core strategic CX technology partners, including the largest hyperscalers. We strengthened our first mover advantage in AI with strategic investments and new offerings and several new client wins. We expanded our client base by winning 93 new logos. And we grew our delivery footprint with three new offshore geographies. we were recognized as a CX leader by all four major analyst firms. In addition, we were named by Forbes as one of America's best large employers for the third consecutive year. And lastly, we marked our 40th anniversary as a pioneer, a global leader, and an innovator in customer experience. I'm pleased with our accomplishments in 2022. Despite the fact that our financial performance was tempered by the increased macroeconomic headwinds, that emerged in the second half of last year. As we look ahead, some clients in select verticals continue to have reduced visibility into their short to midterm outlook. And therefore, at this point in time, we believe it's prudent to approach 2023 guidance conservatively. Having said that, I could not be more excited about our strengthened global leadership team and our differentiated platform. I'm confident in our ability to deliver significantly higher revenue growth and margins as we exit this current macroeconomic environment. And now, let's move to our views on the market. In any economy, an exceptional customer experience sets the most admired brands apart. Happy customers are loyal. They spend more money and become active promoters of their favorite brands. In an uncertain economy, Keeping these loyal customers is paramount. Yet, at the same time, businesses are challenged to do more with less. Our outcomes-based solutions are more critical than ever in this environment. Over the past decade, we've set up our company to capitalize on three game-changing megatrends. From legacy giants to digitally native startups, these trends will be altering the face of every industry across the globe. We've been preparing for this inflection point and we're well positioned to capitalize on the opportunity ahead of us. So let me begin. Trend number one, the CX move to the cloud is no longer an option. It's an imperative. Currently only about 20% of large enterprises have completed their CX migration to the cloud. As the largest pure play CX technology and services player in the world, we're helping these companies use the modern capabilities enabled by the cloud to create customer experiences across every touch point that are personalized, effortless, and differentiated. Our T-TECH digital business has implemented some of the most complex enterprise CX cloud migrations at scale across every major platform. We're well positioned to capitalize on the remaining 80% of large businesses and governments still operating on outdated on-premise legacy platforms. These digital transformation initiatives are complicated and will provide us with technology and managed service opportunities for many years to come. Trend number two, the world's leading brands are moving from reactive customer support to proactive customer experiences. Smart brands no longer are waiting for their customers to reach out when something goes wrong. They're using advanced analytics to anticipate the future needs of their customers. with proactive outreach and next best actions. With our investments in predictive digital capabilities that enable customer acquisition, growth and retention, we're delivering strong results for our clients in multiple industries, including healthcare, financial services and automotive. Trend number three, AI is redefining the role of the frontline associates, creating a new class of knowledge workers. Whether a customer is reaching out about a complex issue or a highly charged emotional moment of truth, they expect a skilled, compassionate human to be on the other side. AI has the potential to turn these frontline knowledge workers into super agents by augmenting their skills with real-time insights and next best actions. These capabilities accelerate speed to proficiency, create new career pathways, deliver the best possible business outcomes, and will create higher margin opportunities for T-tech. These three trends are putting pressure on companies across the globe to find a partner so that they can move quickly and with confidence. For the past 40 years, we've led the market by helping our clients understand how new digital technologies fit into their CX ecosystem. While technology has always been fundamental to our solutions for clients, we've provided a steady hand to separate the helpful from the hype. From the earliest IVRs to today's latest developments with AI, our focus has always been delighting customers and helping our clients grow. Our two distinct but connected business segments enable us to deliver differentiated results in this new phase of AI-driven CX innovation. Today, T-TECH Digital is the largest pure play CX technology and services player in the world. We have the data scientists, the CX consultants, the CX technology expertise across all leading platforms. Our clients look to us given our deep experience with complex implementations and our strategic partnerships with the hyperscalers and the premier CCaaS players. Complementing T-TECH Digital is our T-TECH Engage business, which handles millions of last mile customer interactions on behalf of the world's leading brands. Our teams of knowledge workers, conversational designers, data curators, and analytic experts deliver experiences that consistently delight our clients and wow their customers. And when we combine the capabilities of these two business segments, we're uniquely positioned to build and deliver proprietary CX solutions on top of Microsoft and OpenAI's ChatGPT, Google CCAI, and Amazon's Lambda. We believe... This not only helps us support the world's leading brands more effectively with AI machine learning, but it also serves as a moat relative to the rest of our competitors. As Google, Genesis, Microsoft, Cisco, and AWS develop market applications for new technologies like generative AI, they are collaborating with us for our frontline knowledge and our CX technology domain expertise. Together, we're investing in solution development, go-to-market strategies, and delivery models for this new generation of customer experience. Human discernment and compassion will play a key role in building trust as these new AI functions are integrated into CX solutions. Like many digital innovations before, these new capabilities will augment our frontline knowledge workers. Now I'd like to share our thoughts on 2023. With a strong foundation and an agile mindset, we have the resilient and have persevered through the economic cycles, global pandemics, and natural disasters. We know that these events are cyclical and working as a team. We have demonstrated time and again that we have the determination, tenacity, and long-term track record and vision to come out stronger on the other side. I'm more confident than ever about our path forward with Shelly Swarmback and Dave Siebold by my side. Together, we're actively navigating the current environment and doubling down on our priorities that will build momentum as we progress through the year. From the very beginning, we've aspired to build something truly unique in the industry, a single end-to-end resource for premium CX technology, AI, and service to power the most customer-centric brands on the planet. And today we are as excited as ever. And with that, I'll hand the call over to Shelly.