Teletech Holdings (NASDAQ: TTEC) reported Q1 EPS of $0.51, $0.16 better than the analyst estimate of $0.35. Revenue for the quarter came in at $394.4 million versus the consensus estimate of $383.55 million.

"We had a strong start to 2019 with our first quarter financial results exceeding our plan. Key financial metrics materially increased year-over-year, including bookings, revenue, operating income, and cash flow from operations," commented Ken Tuchman, chairman and chief executive officer of TTEC. "We are well positioned to deliver organic revenue growth and operating margin expansion in line with our full-year guidance. Our momentum is the result of our continued sales velocity, differentiated solutions portfolio, and delivery of exceptional customer experience outcomes."

Tuchman continued, "Digital disruption is causing a seismic shift in the service economy as consumer demand for integrated, frictionless customer experience accelerates, enabled by cloud, AI, ML, RPA and omnichannel technology. Companies around the world are increasingly realizing the importance of delivering next generation exceptional customer service for their brands and are investing heavily in their digital transformation. Our proven expertise and differentiated solutions portfolio are allowing us to capitalize on these market dynamics as evidenced by the current scale and composition of our bookings and revenue."

GUIDANCE:

Teletech Holdings sees FY2019 revenue of $1.614-1.63 billion, versus the consensus of $1.62 billion.

"We are pleased with the momentum and overperformance in the business and are confident in our ability to deliver on our 2019 outlook," commented Regina Paolillo, chief financial and administrative officer. "We are executing on numerous fronts and realizing tangible results from our strategy, differentiated solutions, and improved go-to-market platform. The transformation of our business is improving our value proposition, especially in today's highly disruptive, digital era and changing the trajectory of our financial performance. We are delivering at scale the essential expertise and integrated technology and service capabilities to advance our clients' customer experience outcomes."

Paolillo continued, "Effective in the second quarter 2019, we will change our financial reporting to align with our go-to-market platform and operational structure. We will reduce our segment reporting from four to two, combining our CSS and CTS businesses into one segment and our CMS and CGS businesses into a second segment. We believe this change will assist investors in understanding the distinct nature, financial profile and value of each of these businesses."

We maintain full year 2019 guidance, excluding restructuring and impairments charges, as follows:

• Operating Income Margin – Operating income margin between 7.4 and 7.6 percent.
• Adjusted EBITDA Margin – Non-GAAP adjusted EBITDA margin between 12.6 and 12.8 percent.
• Capital Expenditures – Capital expenditures between 3.8 and 4.0 percent of revenue, of which approximately 65 percent is growth oriented.

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