SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2023

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, digitization, analytics, process optimization, systems integration, cloud-based technology solutions, and transformation enabled by the Company’s 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: The technology services design, build, 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, among others.

● Professional Services: The management consulting practices deliver customer experience strategy, analytics, process optimization, and system integration, among others.

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, technology 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, and fraud management services.

● Customer Acquisition, Growth, and Retention Services: The 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, Technology Support, and Order Fulfillment Services: The customer care, technology 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: The digital AI operations 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.

Effective January 1, 2023, the Company completed a small reorganization of the internal reporting structure and one component from the TTEC Digital segment was reclassified and will now be included in the TTEC Engage segment. All balances have been recast for 2022 to conform to the updated segment presentation.

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

Three Months Ended September 30, 2023

							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	133,252	$	—	$	133,252	$	6,801	$	11,925
TTEC Engage		469,704		—		469,704		18,794		13,463
Total	$	602,956	$	—	$	602,956	$	25,595	$	25,388

Three Months Ended September 30, 2022

							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	116,208	$	(35)	$	116,173	$	7,340	$	8,015
TTEC Engage		476,280		—		476,280		19,777		27,589
Total	$	592,488	$	(35)	$	592,453	$	27,117	$	35,604

Nine months Ended September 30, 2023

							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	367,764	$	—	$	367,764	$	20,384	$	19,864
TTEC Engage		1,468,872		—		1,468,872		55,984		81,233
Total	$	1,836,636	$	—	$	1,836,636	$	76,368	$	101,097

Nine Months Ended September 30, 2022

							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	342,055	$	(35)	$	342,020	$	24,023	$	24,971
TTEC Engage		1,443,409		—		1,443,409		56,038		94,827
Total	$	1,785,464	$	(35)	$	1,785,429	$	80,061	$	119,798

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Capital Expenditures
TTEC Digital	$	1,461	$	3,408	$	6,087	$	6,880
TTEC Engage		20,307		25,366		48,635		57,684
Total	$	21,768	$	28,774	$	54,722	$	64,564

	September 30, 2023		December 31, 2022
Total Assets
TTEC Digital	$	809,741	$	807,247
TTEC Engage		1,358,449		1,346,715
Total	$	2,168,190	$	2,153,962

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenue
United States / Canada	$	415,463	$	416,815	$	1,274,353	$	1,262,559
Philippines / Asia Pacific / India		117,204		110,381		354,981		336,658
Europe / Middle East / Africa		37,095		34,507		107,574		100,307
Latin America		33,194		30,750		99,728		85,905
Total	$	602,956	$	592,453	$	1,836,636	$	1,785,429