1. TTEC Holdings, Inc. (NASDAQ:TTEC)
Number of Hedge Fund Holders: 28
TTEC Holdings, Inc. (NASDAQ:TTEC) is a global customer experience technology and services company that specializes in providing end-to-end solutions for customer engagement, including contact center services, digital transformation, and automation. The company offers a range of services such as cloud-based solutions, customer service outsourcing, and data analytics to help businesses improve customer experiences. TTEC serves various industries, including telecommunications, healthcare, financial services, and retail. The company has been expanding its AI-driven solutions to enhance customer interactions, utilizing machine learning and automation to drive operational efficiencies and deliver personalized services.
TTEC Holdings, Inc. (NASDAQ:TTEC) reported full year 2024 revenue of $2.21 billion, representing a 10.4% decrease YoY, with adjusted EBITDA of $202 million or 9.2% of revenue. TTEC faced revenue headwinds primarily due to two client business decisions unrelated to performance, with both client relationships remaining strong and offering growth potential. The company made significant progress in 2024 by winning 15 new enterprise clients in the Engage segment and 55 new clients in the Digital segment, demonstrating success in their diversification strategy across solutions and core industries. TTEC has heavily invested in AI integration, with over 145-155 AI projects underway in the Digital segment and AI tools being implemented across three-quarters of their associate base.
Looking ahead to 2025, TTEC Holdings, Inc. (NASDAQ:TTEC) expects revenue of $2.04 billion, representing a 7.6% decrease, but projects improved profitability with adjusted EBITDA of $225 million, an 11.2% increase over the prior year. TTEC remains focused on three major priorities: diversification strategy with broadened geographic delivery footprint, expanded digital CX value proposition with differentiated technology-enabled solutions, and achieving historical growth and run rate margins in the near term. TTEC’s strategic investments in offshore expansion are expected to continue, with offshore mix growing approximately 300 basis points in 2024 and projected to grow another 300-plus basis points in 2025.
Overall, TTEC Holdings, Inc. (NASDAQ:TTEC) ranks first on our list of the 12 best AI penny stocks to buy according to hedge funds. While we acknowledge the potential of TTEC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TTEC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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