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Feb 29, 2024
Concentrix Q1 2024 Earnings Report
Concentrix reported first quarter results with revenue at the high end of guidance, positioned well for Q2 with a strong pipeline, and confirmed the full-year business outlook.
Key Takeaways
Concentrix reported a strong first quarter, with revenue reaching $2,402.7 million, a 46.8% increase year-over-year. The company's performance was driven by a strong pipeline for AI and technology-led solutions, allowing them to achieve the high end of revenue guidance and profit targets for the quarter. Concentrix is committed to repurchasing $100 million of shares over the remainder of 2024.
Revenue reached $2,402.7 million, up 46.8% from the prior year.
Operating income was $148.4 million, or 6.2% of revenue.
Non-GAAP operating income was $319.1 million, or 13.3% of revenue.
Diluted earnings per share was $0.76, compared to $1.68 in the prior year.
Concentrix
Concentrix
Concentrix Revenue by Segment
Revenue by Segment
Tech & Electronics Revenue
CapyFin.comRetail, Travel & eComm Revenue
CapyFin.comComms & Media Revenue
CapyFin.comBFSI Revenue
CapyFin.comHealthcare Revenue
CapyFin.comOther Industries Revenue
CapyFin.com Forward Guidance
The company provided guidance for the second quarter and full year fiscal 2024.
Positive Outlook
- Second quarter revenue is expected to be in the range of $2.325 billion to $2.372 billion.
- Second quarter non-GAAP operating income is expected to be in the range of $320 million to $330 million.
- Second quarter non-GAAP EPS is expected to be in the range of $2.55 to $2.70.
- Full year revenue is expected to be in the range of $9.510 billion to $9.700 billion.
- Full year non-GAAP EPS is expected to be in the range of $11.69 to $12.50.
Challenges Ahead
- Second quarter guidance assumes an approximately 160-basis point negative impact of foreign exchange rates compared with the prior year period.
- Full year guidance assumes an approximately 70-basis point negative impact of foreign exchange rates compared with the prior year.
- Second quarter effective tax rate is expected to approximate 26% to 27%.
- Full year effective tax rate is expected to approximate 26% to 27%.
- The company believes that a quantitative reconciliation of the non-GAAP EPS outlook to the most directly comparable GAAP measures cannot be provided without unreasonable efforts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income