TTEC Holdings, Inc. Revenue Disclosure
(14)DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS
Deferred revenue in the accompanying Consolidated Balance Sheets consist of the following (in thousands):
December 31, |
| ||||||
| 2024 |
| 2023 |
| |||
Deferred Revenue - Current | $ | 64,752 | $ | 81,171 | |||
Deferred Revenue - Long-term (included in Other long-term liabilities) |
| 4,414 |
| 4,814 | |||
Total Deferred Revenue | $ | 69,166 | $ | 85,985 | |||
Deferred costs in the accompanying Consolidated Balance Sheets consist of the following (in thousands):
December 31, |
| ||||||
| 2024 |
| 2023 |
| |||
Deferred Costs - Current (included in Prepaids and other current assets) | $ | 31,238 | $ | 32,672 | |||
Deferred Costs - Long-term (included in Other long-term assets) |
| 18,964 |
| 24,245 | |||
Total Deferred Costs | $ | 50,202 | $ | 56,917 | |||
Activity in the Company’s Deferred revenue accounts consists of the following (in thousands):
Balance as of December 31, 2023 | $ | 85,985 | ||
Additions |
| 263,958 | ||
Amortization |
| (280,777) | ||
Balance as of December 31, 2024 | $ | 69,166 |
Revenue recognized for the year ended December 31, 2024 from amounts included in deferred revenue as of December 31, 2023 was $81.2 million. Revenue recognized for the year ended December 31, 2023 from amounts included in deferred revenue as of December 31, 2022 was $87.7 million.
Remaining performance obligations (“RPO”) represent the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. The Company’s RPO excludes performance obligations from on-demand arrangements as there are no minimum purchase commitments associated with these arrangements, and certain time and materials contracts that are billed in arrears.
As of December 31, 2024, the Company’s RPO was $410.8 million, which will be delivered and recognized within the next s. The Company expects to recognize approximately 63% of the RPO over the next 12 months, 22% of the RPO over the subsequent to 24 months, and the thereafter.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 27, 2025 | Showing above |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 3, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 4, 2020 | |
| 2018 | Mar 6, 2019 | |
| 2017 | Mar 13, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Mar 14, 2016 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.