TTEC Holdings (TTEC) risk factors, FY2024 10-K

Risks Related to Our Business, Our Strategy and Our Industry

1. 01If our business strategy is not successful, our business and financial prospects will be affected
2. 02Our market is highly competitive, and we may not be able to compete effectively
3. 03If we are unable to manage our remote service delivery environment effectively and reliably to address these and other risks unique to remote service delivery, or if we cannot maintain client confidence in our work from home offerings, our reputation and results of operations may be impacted
4. 04Long sales cycles in certain parts of our business can lead to long lead times before we receive revenue
5. 05Our business is labor-intensive and therefore cost of wages, benefits, and related taxes constitute a large component of our operating expenses. Our growth is, therefore, dependent upon our ability to maintain and expand our operations in cost-effective locations, in and outside of the United States

Risks Related to Our Financial Operations

1. 06As of December 31, 2024, we had $975.0 million of borrowings outstanding and a maximum borrowing capacity of up to $1.2 billion in the aggregate under our credit facility
2. 07We are subject to customary financial and operating restrictions built into our credit agreement
3. 08Our profitability could suffer if our cost-management strategies are unsuccessful
4. 09Our results of operations may be adversely impacted by foreign currency exchange rate risk
5. 10Many of our Engage business contracts require clients to provide monthly forecasts of volumes, but no guaranteed or minimum volumes or revenue levels. Such forecasts vary from month to month, which can impact our staff and space utilizations, our cost structure, and our profitability
6. 11We provide service level commitments to certain customers. If we do not meet these contractual commitments, we could be subject to penalties, credits, refunds or contract termination, which could adversely affect our revenue and harm our reputation
7. 12Increases in income tax rates, changes in income tax laws or disagreements with tax authorities could adversely affect our business
8. 13If our transfer pricing arrangements are ineffective, our tax liability may increase

Risks Related to Our Use of Technology and Third-Party Services

1. 14A disruption to our information technology systems could adversely affect our business and reputation
2. 15Significant interruptions in communication and utility services provided to us by third-party vendors could adversely impact our business
3. 16Use of AI technology in our offerings could result in liability and harm to our reputation
4. 17Our growing reliance on third parties for data, software, cloud and SaaS services could adversely impact our business

Risks Related to Legal and Regulatory Matters that Impact Our Business

1. 18Wage and hour and ERISA fiduciary class action lawsuits can expose us to costly litigation and damage our reputation
2. 19Challenges in protecting our intellectual property and its infringement by others may adversely impact our ability to innovate and compete

Risks Related to Our Operations Outside of the United States

1. 20We face special risks associated with international operations
2. 21Our delivery model involves geographic concentration outside of the United States, exposing us to significant operational risks
3. 22We may face new risks as we expand into countries where we have no prior experience

Risks Related to Ownership of Our Common Stock

1. 23The non-binding proposal from our founder, Chairman, and Chief Executive Officer to take the Company private and our Board’s evaluation of the proposal may result in a material impact on the Company and the value of its stock
2. 24The price and trading volumes of our common stock may fluctuate significantly due to many factors, some of which we cannot control
3. 25There can be no assurance that we will resume paying dividends or repurchasing our shares or the cadence or levels of these activities
4. 26In addition, Section 203 of the Delaware General Corporation Law may discourage, delay or prevent a change in control of our Company, as it imposes certain restrictions on mergers, business combinations and other transactions between us and holders of 15% or more of our common stock
5. 27Our status as a “controlled company” could make our common stock less attractive to investors or otherwise harm our stock price