TTEC Holdings, Inc.

Welcome to T-TECH's second quarter 2023 earnings conference call. I'd like to remind all parties that you will be in listen-only mode until the question and answer session. This call is being recorded at the request of T-TECH. I'd now like to turn it over to your host, Mr. Paul Miller, T-TECH's Senior Vice President, Treasurer, and Investor Relations Officer. Thank you, sir. You may begin the call.

Good morning, and thank you for joining us today. T-TECH is hosting this call to discuss its second quarter financial results for the period ended June 30th, 2023. Participating on today's call are Ken Tuckman, Chairman and Chief Executive Officer of T-TECH, Shelley Swanback, President of T-TECH and Chief Executive Officer of T-TECH Engage, and Francois Bourret, Interim 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 second quarter 2023 quarterly report on Form 10Q, which we anticipate filing in the coming business days. 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 our actual results to differ materially from those expected and described today. For a more detailed description of our risk factors, please review our 2022 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.

Good morning, and thank you for joining us today. This quarter we executed on our plans and exceeded the midpoint of our second quarter guidance. Revenue was $600 million. Adjusted EBITDA was $67 million, reflecting our continued investments. Non-GAAP EPS was $0.55 per share. and we closed 19 new logos across the digital and engaged business segments. We continue to make significant progress this quarter by staying laser-focused on delivering high-value outcomes for our clients across the globe. Our vertical-specific CX solutions that combine modern technologies, advanced analytics, and exceptional operational delivery are differentiated and in demand. Working side-by-side with our portfolio of marquee clients, and the leading CX technology partners, we continue to provide the transformational solutions and deep expertise needed to succeed in the rapidly evolving experience economy. Before Shelley goes into details of the quarter, I wanted to share our perspective on the evolution of AI and CX. The hype cycle around generative AI is in full swing. The tech industry is in rapid innovation mode, creating both excitement and noise with a myriad of new solutions. In contrast, the companies that will need to adopt the new capabilities are intrigued with the new technology but are treading carefully. Through T-TECH Digital and T-TECH Engage, we're well positioned and excited by the opportunity to help both our clients and technology partners navigate this period of accelerated change. As a tech-forward customer experience pioneer, we've been capitalizing on the intersection of CX and AI for many years. Over the past decade, we've assembled the most comprehensive and advanced suite of CX technology and analytical capabilities in the market, built deep differentiated partnerships with the hyperscalers, and enriched it with decades of frontline CX operational knowledge at scale. Today, this value proposition puts us in a unique position to help our clients understand, evaluate, design, and execute successfully as this new wave of AI-enabled CX innovation takes shape. We saw this coming. We've been preparing for the market potential, and we're excited to monetize the opportunity on our journey to double the size of our business in the years ahead. It is tempting to believe that with the flip of a switch, a company will be able to leverage the advanced capabilities of generative AI We know from our 40 years of working with technology in the CX trenches that it's not that simple. The level of impact from AI is highly dependent on the industry served, complexity of the customer interactions, mix of voice and digital channels, the state of client's technology platform, and the balance of human and automated experience that the brand wants to deliver. Our clients are looking to us to help guide them through this new, significantly more complex environment. To unlock the promise of generative AI in the context of the overall customer experience, companies will need to migrate their systems to the cloud, get their data organized and annotated, integrate their CX, CRM, and back office systems so that the data can flow freely in real time, and create the optimal mix of automation and human interaction to provide compelling experiences that will engage customers and build lasting brand loyalty. Through T-TECH Digital, we employ thousands of full-stack engineers, CX consultants, and data scientists who know how to apply the new technology for CX use cases better than anyone. As a result, the leading hyperscalers are partnering with us to further develop the CX capabilities in their platforms. Through T-TECH Engage, we know how to balance the efficiency of technology with empathy of humanity to deliver personalized services and sales experiences at scale. When we combine the breadth and depth of these two market-leading businesses, there is no company better suited for success in this innovation cycle than T-TECH. We've launched several initiatives to help our clients accelerate their efforts while avoiding costly mistakes. For example, we've created the T-TECH Readiness Assessment for AI to provide a framework for evaluating the technology, processes, and talent required to capture value from the use of AI for CX. We are delivering strategy workshops to help organizations align around priorities and build actionable roadmaps with defined proof of value. We're using our internal innovation lab to test the most recent releases of generative AI and large language model capabilities across technology platforms. We're finding many areas that require serious consideration around accuracy of interactions, erratic response times, and high compute costs. And we're executing client-facing pilots to activate native AI functions across the hyperscaler platforms with knowledge management, language translation, automated quality assurance, and transcription summarization, to name a few. T-TECH's purpose has always been to bring humanity to the customer experience by consistently delivering the highest quality interactions at the lowest overall cost to serve. Whether that means using voice-based routing to match an elderly Medicare buyer with a compassionate licensed sales consultant, or simplifying the desktop to free up times for a busy frontline associate, We see this new phase of AI-enabled CX as a great opportunity for our business and is core to our values and mission. Now moving on to our outlook into our second half of the year. CX continues to be a top business and board-level imperative, and our ability to help clients increase revenue, reduce costs, and drive customer loyalty remains a high priority in any economy. At the same time, Customer behavior is in a state of flux. In the current environment, discretionary spend is unpredictable and differs significantly based on income brackets. In addition, many customers are waiting to make purchases closer to their point of need. These behaviors are clouding visibility and demand forecasts for some of our clients and consequently may impact us as well. We're staying close to our clients and will continue to be agile to respond to their evolving needs. While some competitors in the industry are occupied with integration activities, I'm delighted that our attention remains exclusively on providing value to our clients with our singular focus on delivering exceptional technology-enabled customer experiences across every interaction channel. We continue to grow with our existing clients while adding new marquee brands to our global roster. We're proud of our enduring relationship with our clients. Today, the average tenure of our top 25 clients is over 11 years, and our revenue with our top 10 clients continues to grow. We've worked hard to earn our clients' trust and truly value these long-term partnerships that have endured extreme economic cycles, global pandemics, and natural disasters. As we continue to execute on our strategic initiatives to capture the opportunity with the next wave of CX transformation, I remain excited about our business, and confident that we'll successfully navigate the dynamic macroeconomic environment in the months to come. I'll now turn the call over to Shelly to share more about our progress and results.