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Aug 31, 2023
Concentrix Q3 2023 Earnings Report
Concentrix reported third quarter results, demonstrating revenue growth and profitability in line with expectations, with free cash flow increasing year over year. The company also raised its quarterly dividend by 10 percent.
Key Takeaways
Concentrix Corporation reported a 3.4% increase in revenue to $1,632.8 million for the third quarter of 2023 compared to the prior year. The company's operating income was $162.3 million, and non-GAAP operating income was $231.0 million. Diluted earnings per share was $1.49, while non-GAAP diluted earnings per share was $2.71. The company's free cash flow for the quarter was $167.5 million.
Revenue was $1,632.8 million, up 3.4% from the prior year third quarter.
Operating income was $162.3 million, or 9.9% of revenue.
Non-GAAP diluted EPS was $2.71 compared to $2.95 in the prior year third quarter.
Free cash flow for the quarter was $167.5 million, a 32% year-over-year increase.
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 following statements are based on the Company’s current expectations for the fourth quarter of fiscal 2023, including the contributions of the Webhelp business from September 25, 2023.
Positive Outlook
- Fourth quarter reported revenue is expected to be in the range of $2.190 billion to $2.215 billion.
- Fourth quarter non-GAAP operating income is expected to be in the range of $330 million to $340 million.
- The effective tax rate is expected to approximate 26%.
- Fourth quarter non-GAAP EPS is expected to be in the range of $3.03 to $3.15.
- Guidance assumes approximately 62 million diluted common shares outstanding.
Challenges Ahead
- Non-GAAP financial measures exclude the impact of any future acquisitions, acquisition-related and integration expenses, amortization of intangible assets, depreciation, share-based compensation and the related tax effects thereon.
- The non-GAAP EPS guidance assumes no impact from other expense/income.
- The Company believes that a quantitative reconciliation of the non-GAAP operating income and non-GAAP EPS outlook to the most directly comparable GAAP measures cannot be provided without unreasonable efforts due to the recently completed combination with Webhelp
- The related unavailability of the expected amortization of acquired intangible assets, acquisition-related and integration expenses and share-based compensation expenses.
- The Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income