NASDAQ$CNXC
Concentrix Corporation · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Concentrix's financial performance for Q2 2023, marked by revenue increase and strategic advancements.
Concentrix reported a 3.0% increase in revenue to $1,614.7 million for the second quarter of 2023. The company achieved margin expansion and strong free cash flow despite macroeconomic challenges. Notable progress was made in integrating Webhelp and harnessing generative AI.
- Revenue increased by 3.0% year-over-year to $1,614.7 million, with a 1.6% rise on an adjusted constant currency basis.
- Operating income grew by 3.6% to $162.6 million, representing 10.1% of revenue.
- Adjusted EBITDA increased by 3.6% to $258.8 million, or 16.0% of revenue.
- Free cash flow for the quarter was reported at $101.3 million.
Headline financials
Revenue & EPS history
Concentrix · Revenue · Quarterly
$1.61B
Revenue by segment
Concentrix · $1.61B total across 6 segments · Q2 2023
- Tech & Electronics$504M+8.0%31.2%
- Retail & E-comm$308M+4.4%19.1%
- BFSI$262M+2.5%16.2%
- Comms & Media$258M-5.9%16.0%
- Healthcare$165M+11.1%10.2%
- Other$118M-8.2%7.3%
Forward guidance
Concentrix provided expectations for the third quarter and full year of fiscal 2023, with adjusted constant currency revenue growth anticipated in the ranges of 1.5% to 2.5% and 2.0% to 3.0%, respectively.
Tailwinds
- Third quarter adjusted constant currency revenue growth is expected to be in the range of 1.5% to 2.5%.
- Third quarter reported revenue is expected to be in the range of $1.635 billion to $1.650 billion.
- Operating income for the third quarter is projected to be between $172 million and $182 million.
- Non-GAAP operating income for the third quarter is expected to be in the range of $225 million to $235 million.
- Full year adjusted constant currency revenue growth is expected to be in the range of 2.0% to 3.0%.
Headwinds
- Expectations assume a 0.2-point positive impact of foreign exchange rates compared with the prior year for Q3.
- Expectations assume a 0.5-point negative impact of foreign exchange rates compared with the prior year for the full year.
- Third quarter expectations exclude an expected revenue contribution of approximately $28 million from acquired operations.
- Full year expectations exclude an expected revenue contribution of approximately $156 million from acquired operations.
- The effective tax rate is expected to approximate 26%.
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 Q2 2023
+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
| Quarter | Report date | Reaction (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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