SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2021

(3)SEGMENT INFORMATION

The Company reports the following two segments:

TTEC Digital provides the CX technology services and platforms to support the Company’s clients’ customer interaction delivery infrastructure. The segment designs, builds and operates the omnichannel ecosystem in a cloud, on premise, or hybrid environment, and fully integrates, orchestrates, and administers highly scalable, feature-rich CX technology applications. These solutions are critical to enabling and accelerating digital transformation for the Company’s clients.

●

Technology Services: the Company’s 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: the Company’s management consulting practices deliver customer experience strategy, analytics, process optimization, and learning and performance services.

TTEC Engage delivers the CX managed services to support the Company’s clients’ end-to-end customer interaction delivery, by providing the essential CX omnichannel and application technologies, human resources, recruiting, training and production, at-home or facility-based delivery infrastructure on a global scale, and engagement processes. This segment provides full-service digital, omnichannel customer engagement, supporting customer care, customer acquisition, growth and retention, and fraud detection and prevention services.

●

Customer Acquisition Services: the Company’s customer growth and acquisition services optimize the buying journeys for acquiring new customers by leveraging technology and analytics to deliver personal experiences that increase the quantity and quality of leads and customers.

●

Customer Care Services: the Company’s customer care 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.

●

Fraud Prevention Services: the Company’s digital fraud detection and prevention services proactively identify and prevent fraud and provide community content moderation and compliance.

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, 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

Three Months Ended September 30, 2020


							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	76,571	$	—	$	76,571	$	3,537	$	13,043
TTEC Engage		416,409		—		416,409		15,985		40,356
Total	$	492,980	$	—	$	492,980	$	19,522	$	53,399

Nine Months 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

Nine Months Ended September 30, 2020


							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	231,520	$	(250)	$	231,270	$	10,103	$	37,677
TTEC Engage		1,147,004		—		1,147,004		46,951		105,400
Total	$	1,378,524	$	(250)	$	1,378,274	$	57,054	$	143,077


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Capital Expenditures
TTEC Digital	$	1,599	$	1,635	$	5,029	$	6,961
TTEC Engage		15,586		14,277		35,749		40,866
Total	$	17,185	$	15,912	$	40,778	$	47,827


	September 30, 2021		December 31, 2020
Total Assets
TTEC Digital	$	849,980	$	277,365
TTEC Engage		1,194,153		1,239,043
Total	$	2,044,133	$	1,516,408

	September 30, 2021		December 31, 2020
Goodwill
TTEC Digital	$	501,965	$	128,211
TTEC Engage		234,433		235,291
Total	$	736,398	$	363,502

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,
	2021		2020		2021		2020
Revenue
United States	$	377,211	$	346,095	$	1,108,390	$	936,079
Philippines		100,531		82,147		305,255		252,520
Latin America		28,737		23,550		85,529		72,002
Europe / Middle East / Africa		28,891		20,772		82,447		55,077
Asia Pacific / India		16,989		14,483		49,560		43,377
Canada		14,375		5,933		29,566		19,219
Total	$	566,734	$	492,980	$	1,660,747	$	1,378,274

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details