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May 31, 2024
Concentrix Q2 2024 Earnings Report
Concentrix's Q2 2024 performance exceeded revenue expectations and raised full-year revenue guidance, driven by strong demand. Adjusted free cash flow was over $200 million, and $60 million was returned to shareholders through repurchases and dividends.
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
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
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