TTEC Holdings, Inc.

Welcome everyone to T-TECH second quarter 2024 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 Paul Miller, T-TECH's Senior Vice President, Treasurer, and Investor Relations Officer. Thank you, sir, and you may begin.

Good morning, and thank you for joining us today. T-TECH is hosting this call to discuss the second quarter results for the period that ended June 30, 2024. Participating on today's call are Ken Tuchman, Chairman and Chief Executive Officer of T-TECH, Shelley Swanback, President of T-TECH and Chief Executive Officer of T-TECH, and Kenny Wagers, 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 2024 orderly report on Form 10-Q. Before we begin, I want to remind you that matters discussed in 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 2023 Annual Report on Form 10-K. A replay of this conference will be available on our website on the Investor Relations Center. I will now turn the call over to Ken.

Good morning, and thank you for joining us today. On our earnings call earlier this year, we shared that 2024 would be a year of transition and evolution for T-TECH. As we scale our diversification strategy and our cost optimization initiatives, the macroeconomic environment continues to create headwinds for our engaged business while our digital business continues to deliver solid results. Let me start with our second quarter results. Revenue was $534 million, And on a non-GAAP basis, our adjusted EBITDA was $46 million. It's important to call out that this quarter, we recorded a goodwill impairment on the engaged business, triggered by a decline in our market capitalization. This non-cash charge materially impacts our GAAP results, as detailed in our press release, and Kenny will discuss shortly. Now let me share an update on the engaged business. Despite the current dynamic macroeconomic environment, we're encouraged by our continued momentum with new large enterprise client wins. These new clients are core to our strategy to diversify our engaged client portfolio across industries where we're currently underpenetrated and where we see solid opportunity for growth. As with all new clients, our recent wins in e-commerce, retail, media, and property and casualty insurance will take the customary time to scale. These new enterprise clients have the potential to grow into top clients in the near term based on their historical spend in the CX outsourcing industry. However, as we look to the second half of the year, due to the weaker economic outlook, the demand from our embedded base is not shaping up as originally forecasted. This is especially pronounced in our largest sector, healthcare. For almost two decades, we've had reliable forecasts and consistent seasonal growth with our healthcare payer clients. This year, the healthcare industry is facing extreme cost increases, which are creating significant budget pressures. As a result, while some clients are still finalizing their seasonal ramps, we expect significantly lower volumes this year than we have previously experienced. Given the overall environment, we've taken additional and significant actions to improve our cost structure without impacting our ability to continue to deliver quality outcomes for our clients and their customers. Due to these headwinds in Engage, we have updated our financial outlook for the full year 2024 to better reflect the current balance of the challenges and the opportunities, Kenny will share the specific details shortly. Now on to DTECH Digital. As we've diversified our CX technology segment, we've evolved from being a leading expert dedicated exclusively to CCaaS to a multi-dimensional CX transformation partner with a broad portfolio of contact center, CRM, AI, and analytic solutions. We've doubled the number of our partners in our technology ecosystem this year and now have the full stack of CX capabilities to propel our business ahead into 2025 and beyond. Today, our core advantage in T-TECH Digital is the depth of our expertise in every aspect of the CX technology stack and our ability to integrate the disparate platforms into a cohesive, seamless CX operating system including the latest in AI. Our teams are executing on more than 100-plus AI-enabled projects with specific business cases around increased efficiencies, revenue growth, and improved customer experience. Looking ahead, the CX marketplace continues to be compelling, and we remain excited about our position as a leading and trusted partner for AI-enabled CX technology and services. We continue to attract new clients. He recognizes the best place to work and acknowledges the industry innovator by trade analyst and media. Despite our progress, it goes without saying that I'm disappointed with our financial results and our revised outlook for the remainder of the year. As we move into 2025, I'm confident that our diversification initiatives will yield stronger financial performance with a broader client base, more offshore revenue, and expanded client solutions and a deeper partner ecosystem. And now, I'll turn the call over to Shelley.