NASDAQ$CNXC

Concentrix Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Concentrix's Q2 2024 performance exceeded revenue expectations and raised full-year revenue guidance, driven by strong demand. Adjusted free cash flow was over $200 million, and $60 million was returned to shareholders through repurchases and dividends.

Concentrix reported strong second-quarter results, exceeding revenue expectations with a 47.4% year-over-year increase to $2,380.7 million. The company also raised its full-year revenue guidance, reflecting solid demand for its technology and service offerings. Adjusted free cash flow was over $200 million, and the company returned $60 million to shareholders through share repurchases and dividends.

  • Revenue increased by 47.4% year-over-year to $2,380.7 million, with a 4.0% increase on a pro forma constant currency basis.
  • Operating income was $150.2 million, or 6.3% of revenue, while non-GAAP operating income was $321.1 million, or 13.5% of revenue.
  • Adjusted EBITDA reached $379.6 million, or 15.9% of revenue.
  • The company generated $201.9 million in adjusted free cash flow and returned $60 million to shareholders through share repurchases and dividends.

Headline financials

Total Revenue

$2.38B

Previous: $1.61B+47.4%
EPS (adj)

$2.69

Previous: $2.69+0.0%
Capital Expenditures

-$116M

Previous: -$71.8M-61.8%
Free Cash Flow

-$49.3M

Previous: $7.07M-797.6%
Net Income

$66.8M

Previous: $78.9M-15.2%
Operating Income

$150M

Previous: $163M-7.6%
Gross Profit

$858M

Previous: $580M+47.8%
Cash & Equivalents

$207M

Previous: $153M+35.6%
Total Assets

$12.1B

Previous: $6.56B+84.1%
Stock-Based Comp

$21.5M

Previous: $11.1M+93.4%

Revenue & EPS history

Concentrix · Revenue · Quarterly

$2.38B

Q2 2024+47.4%vs Q2 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

Concentrix provided guidance for the third quarter and full year of fiscal 2024, with revenue expectations of $2.350 billion to $2.400 billion for Q3 and $9.580 billion to $9.675 billion for the full year. The company also confirmed its outlook for adjusted free cash flow of $700 million for fiscal 2024.

Tailwinds

  • Third quarter reported revenue of $2.350 billion to $2.400 billion.
  • Full year reported revenue of $9.580 billion to $9.675 billion.
  • Operating income of $172 million to $181 million for Q3.
  • Non-GAAP operating income of $330 million to $350 million for Q3.
  • Full year adjusted free cash flow of $700 million confirmed.

Headwinds

  • Third quarter expectations assume an approximately 205-basis point negative impact of foreign exchange rates compared with the prior year period.
  • Full year expectations assume an approximately 150-basis point negative impact of foreign exchange rates compared with the prior year.
  • The effective tax rate is expected to be approximately 25% to 26% for Q3.
  • The effective tax rate is expected to be approximately 25% to 25.5% for the full year.
  • The company expects to repurchase approximately $60 million of its common stock over the final two quarters of the year.

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 2024

Historical avgQ2 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro