NASDAQ$CNXC

Concentrix Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Concentrix reported first quarter results with revenue at the high end of guidance, positioned well for Q2 with a strong pipeline, and confirmed the full-year business outlook.

Concentrix reported a strong first quarter, with revenue reaching $2,402.7 million, a 46.8% increase year-over-year. The company's performance was driven by a strong pipeline for AI and technology-led solutions, allowing them to achieve the high end of revenue guidance and profit targets for the quarter. Concentrix is committed to repurchasing $100 million of shares over the remainder of 2024.

  • Revenue reached $2,402.7 million, up 46.8% from the prior year.
  • Operating income was $148.4 million, or 6.2% of revenue.
  • Non-GAAP operating income was $319.1 million, or 13.3% of revenue.
  • Diluted earnings per share was $0.76, compared to $1.68 in the prior year.

Headline financials

Total Revenue

$2.4B

Previous: $1.64B+46.8%
EPS

$0.76

Previous: $2.56-70.3%
Revenue Growth

0.0%

Previous: 6.5%-100.0%
Capital Expenditures

-$56.1M

Previous: -$39.6M-41.6%
Free Cash Flow

-$3.96M

Previous: $48.3M-108.2%
Net Income

$52.1M

Previous: $87.9M-40.7%
Operating Income

$148M

Previous: $156M-4.9%
Gross Profit

$857M

Previous: $581M+47.4%
Cash & Equivalents

$235M

Previous: $178M+31.6%
Total Assets

$12.2B

Previous: $6.62B+84.9%
Stock-Based Comp

$21.6M

Previous: $16.6M+29.9%

Revenue & EPS history

Concentrix · Revenue · Quarterly

$2.4B

Q1 2024+46.8%vs Q1 2023
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Concentrix · $1.63B total across 6 segments · Q3 2023

  • Tech & Electronics
    $528M+5.5%
  • Retail & E-comm
    $322M+7.6%
  • Comms & Media
    $252M-8.0%
  • BFSI
    $247M+5.1%
  • Healthcare
    $167M+17.0%
  • Other
    $115M-9.1%

Forward guidance

The company provided guidance for the second quarter and full year fiscal 2024.

Tailwinds

  • Second quarter revenue is expected to be in the range of $2.325 billion to $2.372 billion.
  • Second quarter non-GAAP operating income is expected to be in the range of $320 million to $330 million.
  • Second quarter non-GAAP EPS is expected to be in the range of $2.55 to $2.70.
  • Full year revenue is expected to be in the range of $9.510 billion to $9.700 billion.
  • Full year non-GAAP EPS is expected to be in the range of $11.69 to $12.50.

Headwinds

  • Second quarter guidance assumes an approximately 160-basis point negative impact of foreign exchange rates compared with the prior year period.
  • Full year guidance assumes an approximately 70-basis point negative impact of foreign exchange rates compared with the prior year.
  • Second quarter effective tax rate is expected to approximate 26% to 27%.
  • Full year effective tax rate is expected to approximate 26% to 27%.
  • The company believes that a quantitative reconciliation of the non-GAAP EPS outlook to the most directly comparable GAAP measures cannot be provided without unreasonable efforts.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.2%

Avg return

Earnings day

+1.8%

Avg return

5 days after

-2.3%

Avg return

30 days after

50%

13 / 26 earnings

Positive

+42.4%

Q1 2025

Best reaction

-19.8%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-19.8%+4.5%
Q4 2025-3.2%+6.6%-25.3%
Q3 2025-13.4%-12.3%-14.7%
Q2 2025-1.8%+3.3%-13.5%
Q1 2025+42.4%+18.3%+9.9%
Q4 2024+4.9%+5.3%+3.5%
Q3 2024-19.3%-19.7%-30.3%
Q2 2024+6.7%+8.4%+14.6%
Q1 2024+4.1%+5.8%-11.4%
Q4 2023-16.4%-11.7%-20.6%
Q3 2023+10.9%+12.7%+1.9%
Q2 2023-3.5%-0.7%-0.3%
Q1 2023+0.3%+0.3%-19.3%
Q4 2022-1.6%-3.6%-1.1%
Q3 2022-3.3%+3.5%+7.7%
Q2 2022-3.9%-5.6%-9.2%
Q1 2022-10.5%-15.8%-17.0%
Q4 2019+12.0%+13.0%+10.6%
Q4 2021+1.5%+1.9%+20.0%
Q3 2020-0.9%+0.1%-3.2%
Q3 2021+2.5%+8.4%+4.8%
Q2 2020+1.1%+0.3%+2.6%
Q2 2021-2.0%+2.4%+4.0%
Q1 2020+1.5%+0.9%+3.2%
Q1 2021+8.9%+11.5%+24.6%
Q4 2020+7.9%+9.4%+1.0%
Q3 2019
Q2 2019
Q1 2019

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