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Concentrix
🇺🇸 NASDAQ:CNXC
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May 31, 2022

Concentrix Q2 2022 Earnings Report

Concentrix's revenue increased by 14.5% year-over-year, with operating income and net income also showing significant growth.

Key Takeaways

Concentrix reported strong second-quarter results with revenue reaching $1,568.1 million, a 14.5% increase from the prior year. Operating income grew by 22.4% to $156.9 million, and net income increased by 36.4% to $113.1 million. The company's outlook for the year includes increased foreign currency headwinds.

Revenue was $1,568.1 million, up 14.5% from the prior year second quarter.

Operating income was $156.9 million, or 10.0% of revenue.

Non-GAAP operating income was $212.8 million, or 13.6% of revenue.

Diluted earnings per common share (“EPS”) was $2.14 compared to $1.57 in the prior year second quarter.

Total Revenue
$1.57B
Previous year: $1.37B
+14.5%
EPS
$2.93
Previous year: $2.37
+23.6%
Gross Profit
$559M
Previous year: $483M
+15.8%
Cash and Equivalents
$163M
Previous year: $131M
+24.5%
Free Cash Flow
$142M
Previous year: $174M
-18.8%
Total Assets
$6.61B
Previous year: $5.1B
+29.6%

Concentrix

Concentrix

Concentrix Revenue by Segment

Forward Guidance

Concentrix expects third quarter revenue to be in the range of $1.575 billion to $1.605 billion, up approximately 13% to 15% as reported. Full year revenue is expected to be in the range of $6.365 billion to $6.415 billion, up approximately 14% to 15% as reported.

Positive Outlook

  • Third quarter revenue is expected to be in the range of $1.575 billion to $1.605 billion, up approximately 13% to 15% as reported.
  • Third quarter operating income is expected to be in the range of $161 million to $176 million.
  • Third quarter non-GAAP operating income is expected to be in the range of $220 million to $235 million.
  • Full year revenue is expected to be in the range of $6.365 billion to $6.415 billion, up approximately 14% to 15% as reported.
  • Full year operating income is expected to be in the range of $663 million to $688 million.

Challenges Ahead

  • The outlook for the balance of the year includes increased foreign currency headwinds.
  • Changes in a small portion of client base looking to move more work offshore.
  • Third quarter revenue expectation includes a 3-point negative impact of foreign exchange rates compared with the prior year period.
  • Full year revenue expectation includes a 3-point negative impact of foreign exchange rates compared with the prior year.
  • Effective tax rate is expected to approximate 24% to 25%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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