NASDAQ$CNXC

Concentrix Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$2.39B

Previous: $1.63B+46.2%
EPS

$0.25

Previous: $2.71-90.8%
Operating Margin

6.4%

No prior period
Non-GAAP Op Margin

13.9%

No prior period
Adj. EBITDA Margin

16.3%

No prior period
Capital Expenditures

-$179M

Previous: -$116M-54.6%
Free Cash Flow

-$162M

Previous: -$38.1M-326.1%
Net Income

$16.6M

Previous: $77.6M-78.6%
Operating Income

$153M

Previous: $162M-5.6%
Gross Profit

$864M

Previous: $594M+45.6%
Cash & Equivalents

$246M

Previous: $2.11B-88.3%
Total Assets

$12.2B

Previous: $8.45B+44.5%
Stock-Based Comp

$22.6M

Previous: $10.6M+112.0%

Revenue & EPS history

Concentrix · Revenue · Quarterly

$2.39B

Q3 2024+46.2%vs Q3 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 following statements are based on the Company’s current expectations for the fourth quarter of fiscal 2024 and the full year fiscal 2024.

Tailwinds

  • 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.

Headwinds

  • 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%.

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 Q3 2024

Historical avgQ3 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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