Concentrix Q2 2024 Earnings Report
Key Takeaways
Concentrix reported strong second-quarter results, exceeding revenue expectations with a 47.4% year-over-year increase to $2,380.7 million. The company also raised its full-year revenue guidance, reflecting solid demand for its technology and service offerings. Adjusted free cash flow was over $200 million, and the company returned $60 million to shareholders through share repurchases and dividends.
Revenue increased by 47.4% year-over-year to $2,380.7 million, with a 4.0% increase on a pro forma constant currency basis.
Operating income was $150.2 million, or 6.3% of revenue, while non-GAAP operating income was $321.1 million, or 13.5% of revenue.
Adjusted EBITDA reached $379.6 million, or 15.9% of revenue.
The company generated $201.9 million in adjusted free cash flow and returned $60 million to shareholders through share repurchases and dividends.
Concentrix
Concentrix
Concentrix Revenue by Segment
Forward Guidance
Concentrix provided guidance for the third quarter and full year of fiscal 2024, with revenue expectations of $2.350 billion to $2.400 billion for Q3 and $9.580 billion to $9.675 billion for the full year. The company also confirmed its outlook for adjusted free cash flow of $700 million for fiscal 2024.
Positive Outlook
- Third quarter reported revenue of $2.350 billion to $2.400 billion.
- Full year reported revenue of $9.580 billion to $9.675 billion.
- Operating income of $172 million to $181 million for Q3.
- Non-GAAP operating income of $330 million to $350 million for Q3.
- Full year adjusted free cash flow of $700 million confirmed.
Challenges Ahead
- Third quarter expectations assume an approximately 205-basis point negative impact of foreign exchange rates compared with the prior year period.
- Full year expectations assume an approximately 150-basis point negative impact of foreign exchange rates compared with the prior year.
- The effective tax rate is expected to be approximately 25% to 26% for Q3.
- The effective tax rate is expected to be approximately 25% to 25.5% for the full year.
- The company expects to repurchase approximately $60 million of its common stock over the final two quarters of the year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income