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Aug 31, 2022

Concentrix Q3 2022 Earnings Report

Concentrix reported solid revenue growth and profit improvements in an uncertain macro environment.

Key Takeaways

Concentrix reported revenue of $1,579.6 million, up 13.1% from the prior year. Operating income was $157.5 million, or 10.0% of revenue. Diluted earnings per common share was $2.04 compared to $2.08 in the prior year. The company also raised its quarterly dividend by 10 percent to $0.275 per share.

Revenue was $1,579.6 million, up 13.1% from the prior year third quarter.

Operating income was $157.5 million, or 10.0% of revenue.

Non-GAAP operating income was $221.5 million, or 14.0% of revenue.

Diluted earnings per common share (“EPS”) was $2.04 compared to $2.08 in the prior year third quarter.

Total Revenue
$1.58B
Previous year: $1.4B
+13.1%
EPS
$2.95
Previous year: $2.49
+18.5%
Revenue Growth
13.1%
Previous year: 20.1%
-34.8%
Gross Profit
$567M
Previous year: $481M
+17.8%
Cash and Equivalents
$176M
Previous year: $154M
+14.2%
Free Cash Flow
$126M
Previous year: $50.9M
+148.4%
Total Assets
$6.75B
Previous year: $5.01B
+34.7%

Concentrix

Concentrix

Concentrix Revenue by Segment

Forward Guidance

Fourth quarter adjusted constant currency revenue growth is expected to approximate 7%. Operating income is expected to exceed $180 million and non-GAAP operating income is expected to exceed $254 million.

Positive Outlook

  • Fourth quarter adjusted constant currency revenue growth is expected to approximate 7%.
  • We expect the contribution of approximately $175 million in fourth quarter revenue from businesses acquired since the beginning of the prior year fourth quarter.
  • Operating income is expected to exceed $180 million.
  • Non-GAAP operating income is expected to exceed $254 million.

Challenges Ahead

  • Based on current exchange rates, we expect an approximate 5-point negative impact of foreign exchange rates compared with the prior year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income