SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2022

SEGMENT INFORMATION [ABSTRACT]

SEGMENT INFORMATION

(3)SEGMENT INFORMATION

The Company reports the following two segments:

TTEC Digital is one of the largest pure-play CX technology service providers with expertise in CX strategy, digital consulting and transformation enabled by proprietary CX applications and technology partnerships. TTEC Digital designs, builds, and operates robust digital experiences for clients and their customers through the contextual integration and orchestration of CRM, data, analytics, CXaaS technology, and intelligent automation to ensure high-quality, scalable CX outcomes.

● Technology Services: Our technology services design, integrate, and operate highly scalable, digital omnichannel technology solutions in the cloud, on premise, or hybrid environment, including journey orchestration, automation and AI, knowledge management, and workforce productivity.

● Professional Services: Our management consulting practices deliver customer experience strategy, analytics, process optimization, and learning and performance services.

TTEC Engage provides the digitally enabled CX managed services to support our clients’ end-to-end customer interaction delivery at scale. The segment delivers omnichannel customer care, tech support, order fulfillment, customer acquisition, growth, and retention services with industry specialization and distinctive CX capabilities for hypergrowth brands. TTEC Engage also delivers digitally enabled back office and industry specific specialty services including AI operations, content moderation, and fraud management services.

● Customer Acquisition, Growth, and Retention Services: Our customer growth and acquisition services optimize the buying journeys for acquiring new customers by leveraging technology and analytics to deliver personal experiences that we believe increase the quantity and quality of leads and customers.

● Customer Care, Tech Support, and Order Fulfillment Services: Our customer care, technical support, and order fulfillment services provide turnkey contact center solutions, including digital omnichannel technologies, associate recruiting and training, facilities, and operational expertise to create exceptional customer experiences across all touchpoints. 

● Digitally Enabled Back Office and Specialty Services: Our digital AI operations, content moderation, and fraud detection and prevention services provide clients with data tagging and annotation capabilities to train and enable AI platforms, community content moderation, and compliance to meet client content standards, and proactive fraud solutions to assist our clients in the detection and prevention of fraud.

The Company allocates to each segment its portion of corporate operating expenses. All intercompany transactions between the reported segments for the periods presented have been eliminated.

The following tables present certain financial data by segment (in thousands):

Three Months Ended September 30, 2022

							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	117,973	$	(35)	$	117,938	$	7,645	$	8,070
TTEC Engage		474,515		—		474,515		19,472		27,534
Total	$	592,488	$	(35)	$	592,453	$	27,117	$	35,604

Three Months Ended September 30, 2021

							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	124,086	$	—	$	124,086	$	8,936	$	8,670
TTEC Engage		442,655		(7)		442,648		16,344		17,355
Total	$	566,741	$	(7)	$	566,734	$	25,280	$	26,025

Nine Months Ended September 30, 2022

							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	348,147	$	(35)	$	348,112	$	24,891	$	25,296
TTEC Engage		1,437,317		—		1,437,317		55,170		94,502
Total	$	1,785,464	$	(35)	$	1,785,429	$	80,061	$	119,798

Nine Month Ended September 30, 2021

							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	295,712	$	(44)	$	295,668	$	21,312	$	22,438
TTEC Engage		1,365,086		(7)		1,365,079		49,343		142,841
Total	$	1,660,798	$	(51)	$	1,660,747	$	70,655	$	165,279

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Capital Expenditures
TTEC Digital	$	3,408	$	1,599	$	6,880	$	5,029
TTEC Engage		25,366		15,586		57,684		35,749
Total	$	28,774	$	17,185	$	64,564	$	40,778

	September 30, 2022		December 31, 2021
Total Assets
TTEC Digital	$	827,948	$	828,255
TTEC Engage		1,327,089		1,168,549
Total	$	2,155,037	$	1,996,804

The following table presents the Company revenue based upon the geographic location where the services are provided (in thousands):

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2022		2021		2022		2021
Revenue
United States	$	400,391	$	377,211	$	1,212,175	$	1,108,390
Philippines		91,306		100,531		281,759		305,255
Europe / Middle East / Africa		34,507		28,891		100,307		82,447
Latin America		30,750		28,737		85,905		85,529
Asia Pacific / India		19,075		16,989		54,899		49,560
Canada		16,424		14,375		50,384		29,566
Total	$	592,453	$	566,734	$	1,785,429	$	1,660,747