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Concentrix
🇺🇸 NASDAQ:CNXC
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•
Aug 31, 2024

Concentrix Q3 2024 Earnings Report

Concentrix delivered revenue above the midpoint of guidance and profit within guidance range. The company returned $60 million to shareholders and raised the quarterly dividend by 10%. iX Hello™ was introduced, reflecting accelerated AI investments.

Key Takeaways

Concentrix reported solid revenue growth and operating results for the third quarter of fiscal year 2024. Revenue increased by 46.2% year-over-year, driven by the combination with Webhelp. The company launched iX Hello, a Generative AI-powered solution, and returned $60 million to shareholders through share repurchases and dividends.

Revenue of $2,387.4 million, an increase of 46.2% year-on-year.

Operating income of $153.2 million, or 6.4% of revenue.

Non-GAAP operating income of $331.0 million, or 13.9% of revenue.

Diluted earnings per common share was $0.25 compared to $1.49 in the prior year third quarter.

Total Revenue
$2.39B
Previous year: $1.63B
+46.2%
EPS
$2.87
Previous year: $2.71
+5.9%
Revenue Growth
46.2%
Previous year: 3.4%
+1258.8%
Gross Profit
$864M
Previous year: $594M
+45.6%
Cash and Equivalents
$246M
Previous year: $2.11B
-88.3%
Free Cash Flow
$129M
Previous year: $167M
-23.0%
Total Assets
$12.2B
Previous year: $8.45B
+44.5%

Concentrix

Concentrix

Concentrix Revenue by Segment

Forward Guidance

The following statements are based on the Company’s current expectations for the fourth quarter of fiscal 2024 and the full year fiscal 2024.

Positive Outlook

  • Fourth quarter reported revenue of $2.420 billion to $2.470 billion.
  • Operating income of $160 million to $166 million and non-GAAP operating income of $335 million to $355 million.
  • Non-GAAP EPS of $2.90 to $3.16, assuming approximately 64.5 million diluted common shares outstanding and approximately 3.7% of net income attributable to participating securities.
  • Full year reported revenue of $9.591 billion to $9.641 billion.
  • Operating income of $611 million to $617 million and non-GAAP operating income of $1,306 million to $1,326 million.

Challenges Ahead

  • The guidance implies pro forma constant currency revenue for the quarter ranging from a decrease of 0.5% to growth of 1.5%.
  • Based on current exchange rates, the expectations assume an approximately 110-basis point negative impact of foreign exchange rates compared with the prior year.
  • The guidance implies pro forma constant currency revenue growth for the full year of 2.2% to 2.7%.
  • The effective tax rate is expected to be approximately 24% to 25%.
  • The effective tax rate is expected to be approximately 24.4% to 24.7%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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