Concentrix Reports Fourth Quarter and Fiscal Year 2024 Results
Concentrix (NASDAQ: CNXC) reported Q4 and fiscal year 2024 results, with Q4 revenue reaching $2,448.0 million, up 9.7% year-over-year. The company achieved revenue growth at the high end of its previous guidance range, with a 1.5% year-on-year increase on a pro forma constant currency basis.
For fiscal year 2024, revenue grew 35.2% to $9,618.9 million. The company returned approximately $220 million to shareholders through dividends and share repurchases while reducing debt by about $209 million. Q4 operating income was $144.5 million with a margin of 5.9%, while non-GAAP operating income reached $346.7 million with a 14.2% margin.
The Board increased the share repurchase authorization to $600 million and declared a quarterly dividend of $0.33275 per share payable on February 11, 2025.
Concentrix (NASDAQ: CNXC) ha riportato i risultati del quarto trimestre e dell'anno fiscale 2024, con ricavi nel Q4 che hanno raggiunto $2.448,0 milioni, in crescita del 9,7% rispetto all'anno precedente. L'azienda ha ottenuto una crescita dei ricavi al limite superiore delle precedenti previsioni, con un aumento dell'1,5% su base pro forma a valuta costante rispetto all'anno scorso.
Per l'anno fiscale 2024, i ricavi sono aumentati del 35,2% a $9.618,9 milioni. L'azienda ha restituito circa $220 milioni agli azionisti tramite dividendi e riacquisti di azioni, riducendo il debito di circa $209 milioni. L'utile operativo del Q4 è stato di $144,5 milioni con un margine del 5,9%, mentre l'utile operativo non-GAAP ha raggiunto $346,7 milioni con un margine del 14,2%.
Il Consiglio ha aumentato l'autorizzazione per il riacquisto di azioni a $600 milioni e ha dichiarato un dividendo trimestrale di $0,33275 per azione, pagabile il 11 febbraio 2025.
Concentrix (NASDAQ: CNXC) informó los resultados del cuarto trimestre y del año fiscal 2024, con ingresos en el Q4 que alcanzaron $2,448.0 millones, un aumento del 9.7% en comparación con el año anterior. La compañía logró un crecimiento de ingresos en el extremo superior de su rango de orientación anterior, con un aumento del 1.5% interanual en base a moneda constante pro forma.
Para el año fiscal 2024, los ingresos crecieron un 35.2% a $9,618.9 millones. La compañía devolvió aproximadamente $220 millones a los accionistas a través de dividendos y recompras de acciones, mientras redujo su deuda en aproximadamente $209 millones. El ingreso operativo del Q4 fue de $144.5 millones con un margen del 5.9%, mientras que el ingreso operativo bajo principios contables no GAAP alcanzó $346.7 millones con un margen del 14.2%.
La Junta aumentó la autorización para la recompra de acciones a $600 millones y declaró un dividendo trimestral de $0.33275 por acción que se pagará el 11 de febrero de 2025.
Concentrix (NASDAQ: CNXC)는 2024 회계연도 4분기 및 연간 실적을 보고했으며, 4분기 수익은 $2,448.0 백만에 달해 전년 대비 9.7% 증가했습니다. 회사는 기존 가이던스 범위의 상단에서 수익 성장을 달성하였고, 연간 기준으로 환율을 일정하게 유지했을 때 1.5% 증가했습니다.
2024 회계연도 동안, 수익은 35.2% 증가하여 $9,618.9 백만에 달했습니다. 회사는 배당금 및 자사주 매입을 통해 약 $220 백만을 주주에게 반환하고, 부채를 약 $209 백만 줄였습니다. 4분기 영업 이익은 $144.5 백만으로, 마진은 5.9%였으며, 비-GAAP 기준 영업 이익은 $346.7 백만으로 14.2%의 마진을 기록했습니다.
이사회는 자사주 매입 승인액을 $600 백만으로 늘리고, 2025년 2월 11일 지급될 주당 $0.33275의 분기 배당금을 선언했습니다.
Concentrix (NASDAQ: CNXC) a publié ses résultats pour le quatrième trimestre et l'exercice 2024, avec des recettes atteignant $2.448,0 millions au Q4, en hausse de 9,7 % par rapport à l'année précédente. L'entreprise a atteint une croissance des revenus au haut de son précédent objectif, avec une augmentation de 1,5 % d'une année sur l'autre sur une base de devise constante pro forma.
Pour l'exercice 2024, les revenus ont augmenté de 35,2 % pour atteindre $9.618,9 millions. L'entreprise a restitué environ $220 millions aux actionnaires par le biais de dividendes et de rachats d'actions tout en réduisant sa dette d'environ $209 millions. Le résultat opérationnel du Q4 s'élevait à $144,5 millions avec une marge de 5,9 %, tandis que le résultat opérationnel non-GAAP atteignait $346,7 millions avec une marge de 14,2 %.
Le Conseil d'administration a augmenté l'autorisation de rachat d'actions à $600 millions et a déclaré un dividende trimestriel de $0,33275 par action payable le 11 février 2025.
Concentrix (NASDAQ: CNXC) hat die Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024 veröffentlicht, wobei die Q4-Umsätze $2.448,0 Millionen erreichten, ein Anstieg von 9,7 % im Vergleich zum Vorjahr. Das Unternehmen erzielte ein Umsatzwachstum am oberen Ende seines vorherigen Prognosebereichs, mit einem Anstieg von 1,5 % im Jahresvergleich auf Basis einer pro forma konstanten Währung.
Im Geschäftsjahr 2024 wuchsen die Umsätze um 35,2 % auf $9.618,9 Millionen. Das Unternehmen gab etwa $220 Millionen an die Aktionäre in Form von Dividenden und Aktienrückkäufen zurück, während es die Schulden um etwa $209 Millionen verringerte. Das Betriebsergebnis im Q4 betrug $144,5 Millionen mit einer Marge von 5,9 %, während das nicht-GAAP-Betriebsergebnis $346,7 Millionen mit einer Marge von 14,2 % erreichte.
Der Vorstand erhöhte die Genehmigung zum Aktienrückkauf auf $600 Millionen und erklärte eine vierteljährliche Dividende von $0,33275 pro Aktie, die am 11. Februar 2025 zahlbar ist.
- Revenue growth of 9.7% YoY to $2,448.0 million in Q4
- Strong fiscal year revenue growth of 35.2% to $9,618.9 million
- Returned $220 million to shareholders through dividends and share repurchases
- Reduced debt by $209 million
- Increased share repurchase authorization to $600 million
- Q4 non-GAAP operating income grew 1.7% to $346.7 million
- Q4 operating income declined 19.9% YoY to $144.5 million
- Operating margin decreased 220 basis points to 5.9% in Q4
- Non-GAAP operating margin declined 110 basis points to 14.2% in Q4
- Fiscal year net income decreased 19.9% to $251.2 million
- Non-GAAP diluted EPS decreased 3.0% to $3.26 in Q4
Insights
The Q4 and FY2024 results reveal a mixed financial performance with notable strengths and challenges. Revenue growth of
Key positives include strong cash flow generation with
The decline in operating margins, primarily attributed to GenAI investments, warrants monitoring but could pay off through the reported dozen new wins. The debt reduction of
The strategic pivot toward GenAI applications is showing early promise with multiple client wins shortly after launch. This rapid market traction suggests strong product-market fit and potential competitive advantage in the tech services space. The investment in productization and commercialization of the GenAI iX suite, while pressuring margins short-term, positions Concentrix at the forefront of AI-driven productivity solutions.
The ability to secure large, transformative client wins leveraging combined tech and service capabilities indicates successful integration of traditional services with next-gen technology offerings. This hybrid approach could create sustainable competitive advantages and higher barriers to entry.
The market positioning and execution strategy show promise despite macroeconomic headwinds. The
The maintenance of the quarterly dividend at
- Delivers revenue growth at the high end of previous guidance range for the quarter
- Returns
$220 million to shareholders in fiscal 2024 through share repurchases and dividends - Gains market traction with new iX GenAI productivity applications
- Introduces 2025 guidance indicating revenue growth, margin and free cash flow expansion
- Increases share repurchase authorization to
$600 million
NEWARK, Calif., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, today announced financial results for the fiscal fourth quarter and fiscal year ended November 30, 2024.
| Three Months Ended | Fiscal Year Ended | ||||||||||||||||||||
| November 30, 2024 | November 30, 2023 | Change | November 30, 2024 | November 30, 2023 | Change | ||||||||||||||||
| Revenue ($M) | $ | 2,448.0 | $ | 2,230.8 | 9.7 | % | $ | 9,618.9 | $ | 7,114.7 | 35.2 | % | |||||||||
| Operating income ($M) | $ | 144.5 | $ | 180.4 | (19.9 | )% | $ | 596.4 | $ | 661.3 | (9.8 | )% | |||||||||
| Non-GAAP operating income ($M) (1) | $ | 346.7 | $ | 340.8 | 1.7 | % | $ | 1,317.9 | $ | 1,010.0 | 30.5 | % | |||||||||
| Operating margin | 5.9 | % | 8.1 | % | -220 bps | 6.2 | % | 9.3 | % | -310 bps | |||||||||||
| Non-GAAP operating margin (1) | 14.2 | % | 15.3 | % | -110 bps | 13.7 | % | 14.2 | % | -50 bps | |||||||||||
| Net income ($M) | $ | 115.7 | $ | 69.5 | 66.5 | % | $ | 251.2 | $ | 313.8 | (19.9 | )% | |||||||||
| Non-GAAP net income ($M) (1) | $ | 219.3 | $ | 213.5 | 2.7 | % | $ | 772.3 | $ | 630.7 | 22.5 | % | |||||||||
| Adjusted EBITDA ($M) (1) | $ | 402.9 | $ | 397.9 | 1.3 | % | $ | 1,554.9 | $ | 1,181.8 | 31.6 | % | |||||||||
| Adjusted EBITDA margin (1) | 16.5 | % | 17.8 | % | -130 bps | 16.2 | % | 16.6 | % | -40 bps | |||||||||||
| Diluted earnings per common share | $ | 1.72 | $ | 1.09 | 57.8 | % | $ | 3.71 | $ | 5.70 | (34.9 | )% | |||||||||
| Non-GAAP diluted earnings per common share (1) | $ | 3.26 | $ | 3.36 | (3.0 | )% | $ | 11.42 | $ | 11.45 | (0.3 | )% | |||||||||
(1) See non-GAAP reconciliations included in the accompanying financial tables for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
Fourth Quarter Fiscal 2024 Highlights:
- Revenue of
$2,448.0 million , an increase of9.7% year-on-year compared to revenue of$2,230.8 million in the prior year fourth quarter. The Company grew revenue by1.5% year-on-year on a pro forma constant currency basis, at the top end of its guidance range previously provided. - Operating income of
$144.5 million , or5.9% of revenue, compared with$180.4 million , or8.1% of revenue in the prior year fourth quarter. - Non-GAAP operating income of
$346.7 million , or14.2% of revenue, compared with$340.8 million , or15.3% of revenue, in the prior year fourth quarter. The change in non-GAAP operating margin was primarily due to spending related to the productization and commercialization of the Company’s new GenAI iX product suite. - Adjusted EBITDA of
$402.9 million , or16.5% of revenue, compared with$397.9 million , or17.8% of revenue, in the prior year fourth quarter. - Cash flow from operations was
$284.4 million in the quarter. Adjusted free cash flow for the quarter was$218.7 million . - Diluted earnings per common share (“EPS”) was
$1.72 compared to$1.09 in the prior year fourth quarter. - Non-GAAP diluted EPS was
$3.26 compared to$3.36 in the prior year fourth quarter.
“We continue to achieve strong results across key areas of growth in our business while repurchasing shares, reducing our leverage and supporting our dividend,” said Chris Caldwell, Concentrix President and CEO. “Strategically, we continue to execute our plan for growth and market expansion while delivering value to shareholders. We’ve seen our investments in our GenAI product suite generate more than a dozen wins only weeks after launch. And we continue to secure large, transformative client wins that leverage our unique technology and service capabilities to fuel our clients’ success. Entering 2025, we are delighted with our strategic position and our opportunities for ongoing growth, margin and free cash flow.”
Fiscal Year 2024 Highlights:
- Revenue of
$9,618.9 million , an increase of35.2% year-on-year compared to revenue of$7,114.7 million in the prior fiscal year. The Company grew revenue by2.7% on a pro forma constant currency basis, at the top end of its guidance range previously provided. - Operating income of
$596.4 million , or6.2% of revenue, compared with$661.3 million , or9.3% of revenue, in the prior fiscal year. - Non-GAAP operating income of
$1,317.9 million , or13.7% of revenue, compared with$1,010.0 million , or14.2% of revenue, in the prior fiscal year. - Adjusted EBITDA of
$1,554.9 million , or16.2% of revenue, compared with$1,181.8 million , or16.6% of revenue, in the prior fiscal year. - Cash flow from operations was
$667.5 million in the fiscal year. Adjusted free cash flow for the fiscal year was$474.5 million . - Diluted EPS was
$3.71 compared to$5.70 in the prior fiscal year. - Non-GAAP diluted EPS was
$11.42 compared to$11.45 in the prior fiscal year. - Returned approximately
$220 million to shareholders through dividends and share repurchases while reducing debt by approximately$209 million .
Quarterly Dividend and Share Repurchase Program:
- The Company paid a
$0.33 275 per share quarterly dividend on November 5, 2024. The Company’s Board of Directors has declared a quarterly dividend of$0.33 275 per share payable on February 11, 2025, to shareholders of record at the close of business on January 31, 2025. - The Company repurchased 0.7 million shares in the fourth quarter at a cost of
$34.0 million under its previously announced share repurchase program at an average cost of$49.46 per share.
In addition, the Board of Directors has extended the Company’s share repurchase program by authorizing an increase of the amount remaining for share repurchases under the program to
First Quarter and Full Year Fiscal 2025 Outlook:
The following statements are based on the Company’s current expectations for the first quarter and full year fiscal 2025. Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, amortization of intangible assets, depreciation, share-based compensation, and the related tax effects thereon. The non-GAAP EPS guidance assumes no impact from changes in acquisition contingent consideration and foreign currency losses (gains), net included in other expense (income), net. These statements are forward-looking and actual results may differ materially.
First Quarter Fiscal 2025 Expectations:
- First quarter reported revenue of
$2.35 5 billion to$2.37 0 billion. Based on current exchange rates, our expectations assume approximately a 200-basis point negative impact of foreign exchange rates compared with the prior year period. Our guidance implies constant currency revenue growth for the first quarter in the range of0% to0.75% . - Operating income of
$137 million to$147 million and non-GAAP operating income is expected to be in the range of$305 million to$315 million . - Non-GAAP EPS of
$2.49 t o$2.64 , assuming approximately 64.1 million diluted common shares outstanding and approximately5% of net income attributable to participating securities. - The effective tax rate is expected to approximate
25.5% to26.5% .
Full Year 2025 Expectations:
- Full year reported revenue of
$9.47 0 billion to$9.61 0 billion. Based on current exchange rates, our expectations assume approximately a 150-basis point negative impact of foreign exchange rates compared with the prior year. Our guidance implies constant currency revenue growth for the full year in the range of0% to1.5% . - Operating income of
$663 million to$703 million and non-GAAP operating income is expected to be in the range of$1,300 million to$1,340 million . - Non-GAAP EPS of
$11.18 t o$11.77 , assuming approximately 63.6 million diluted common shares outstanding and approximately5% of net income attributable to participating securities. - The effective tax rate is expected to approximate
25.5% to26.5% .
In addition, the Company expects to generate approximately
The Company believes that a quantitative reconciliation of the non-GAAP EPS outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to (a) the inability to forecast future changes in acquisition contingent consideration, which is based, in part, on the future trading price of the Company’s common stock, and (b) the inability to forecast future foreign currency losses (gains), net included in other expense (income), net. For the same reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results.
The Company believes that a quantitative reconciliation of the adjusted free cash flow outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to uncertainty related to the future changes in the Company’s factoring program and related timing of those changes. For the same reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results.
Conference Call and Webcast
The Company will host a conference call for investors to review its fourth quarter and full year fiscal 2024 financial results today at 5:00 p.m. (ET)/2:00 p.m. (PT).
The live conference call webcast will be available in listen-only mode in the Investor Relations section of the Company’s website under “Events and Presentations” at https://ir.concentrix.com/events-and-presentations. A replay will also be available on the website following the conference call.
About us: Experience the power of Concentrix
Concentrix Corporation (NASDAQ: CNXC), a Fortune 500® company, is the global technology and services leader that powers the world’s best brands, today and into the future. We’re human-centered, tech-powered, intelligence-fueled. Every day, we design, build, and run fully integrated, end-to-end solutions at speed and scale across the entire enterprise, helping over 2,000 clients solve their toughest business challenges. Whether it’s designing game-changing brand experiences, building and scaling secure AI technologies, or running digital operations that deliver global consistency with a local touch, we have it covered. At the heart of everything we do lies a commitment to transforming the way companies connect, interact, and grow. We’re here to redefine what success means, delivering outcomes unimagined across every major vertical in 70+ markets. Virtually everywhere. Visit concentrix.com to learn more.
Use of Non-GAAP Information
In addition to disclosing financial results that are determined in accordance with GAAP, we also disclose certain non-GAAP financial information, including:
- Constant currency revenue growth, which is revenue growth adjusted for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Constant currency revenue growth is calculated by translating the revenue of each fiscal year in the billing currency to U.S. dollars using the comparable prior year’s currency conversion rate in comparison to prior year’s revenue. Generally, when the U.S. dollar either strengthens or weakens against other currencies, revenue growth at constant currency rates or adjusting for currency will be higher or lower than revenue growth reported at actual exchange rates.
- Pro forma constant currency revenue growth, which is constant currency revenue growth measured against the Company’s combined pro forma results of operations as if the combination with Webhelp had occurred on December 1, 2022.
- Non-GAAP operating income, which is operating income, adjusted to exclude acquisition-related and integration expenses, including related restructuring costs, step-up depreciation, amortization of intangible assets, and share-based compensation.
- Non-GAAP operating margin, which is non-GAAP operating income, as defined above, divided by revenue.
- Adjusted earnings before interest, taxes, depreciation, and amortization, or adjusted EBITDA, which is non-GAAP operating income, as defined above, plus depreciation (exclusive of step-up depreciation).
- Adjusted EBITDA margin, which is adjusted EBITDA, as defined above, divided by revenue.
- Non-GAAP net income, which is net income excluding the tax-effected impact of acquisition-related and integration expenses, including related restructuring costs, step-up depreciation, amortization of intangible assets, share-based compensation, imputed interest related to the sellers’ note issued in connection with the combination with Webhelp (the “sellers’ note”), change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP net income also excludes the income tax effect of certain legal entity restructuring activity.
- Free cash flow, which is cash flows from operating activities less capital expenditures, and adjusted free cash flow, which is free cash flow excluding the effect of changes in the outstanding factoring balance. We believe that free cash flow is a meaningful measure of cash flows since capital expenditures are a necessary component of ongoing operations. We believe that adjusted free cash flow is a meaningful measure of cash flows because it removes the effect of factoring which changes the timing of the receipt of cash for certain receivables. However, free cash flow and adjusted free cash flow have limitations because they do not represent the residual cash flow available for discretionary expenditures. For example, free cash flow and adjusted free cash flow do not incorporate payments for business acquisitions.
- Non-GAAP diluted EPS, which is diluted EPS excluding the per share, tax-effected impact of acquisition-related and integration expenses, including related restructuring costs, step-up depreciation, amortization of intangible assets, share-based compensation, imputed interest related to the sellers’ note, change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP EPS also excludes the per share income tax effect of certain legal entity restructuring activity. Non-GAAP EPS excludes net income attributable to participating securities and the related per share, tax-effected impact of adjustments to net income described above reflect only those amounts that are attributable to common shareholders.
We believe that providing this additional information is useful to the reader to better assess and understand our base operating performance, especially when comparing results with previous periods and for planning and forecasting in future periods, primarily because management typically monitors the business adjusted for these items in addition to GAAP results. Management also uses these non-GAAP measures to establish operational goals and, in some cases, for measuring performance for compensation purposes. These non-GAAP financial measures exclude amortization of intangible assets. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to the services performed for our clients. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of our acquisition activity. Accordingly, we believe excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of our business nor reflect our underlying business performance, enhances our and our investors’ ability to compare our past financial performance with its current performance and to analyze underlying business performance and trends. These non-GAAP financial measures also exclude share-based compensation expense. Given the subjective assumptions and the variety of award types that companies can use when calculating share-based compensation expense, management believes this additional information allows investors to make additional comparisons between our operating results and those of our peers. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be used as a complement to, and in conjunction with, data presented in accordance with GAAP.
Safe Harbor Statement
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding the Company’s expected future financial condition, growth and profitability, results of operations, including revenue and operating income, cash flows, and effective tax rate, the Company’s market valuation, the future growth and success of the Company’s capabilities and products portfolio, the potential benefits associated with use of the Company’s generative artificial intelligence and other products, including productivity and engagement gains, investments, share repurchase and dividend activity, capital allocation, debt repayment, business strategy, product launches, foreign currency exchange rate fluctuations, and statements that include words such as believe, expect, may, will, provide, could, should, and other similar expressions. These forward-looking statements are inherently uncertain and involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things: risks related to general economic conditions, including consumer demand, interest rates, inflation, supply chains, and the effects of the conflicts in Ukraine and Gaza; cyberattacks on the Company’s or its clients’ networks and information technology systems; uncertainty around, and disruption from, new and emerging technologies, including the adoption and utilization of generative artificial intelligence; the failure of the Company’s staff and contractors to adhere to the Company’s and its clients’ controls and processes; the inability to protect personal and proprietary information; the effects of communicable diseases or other public health crises, natural disasters and adverse weather conditions; geopolitical, economic and climate- or weather-related risks in regions with a significant concentration of the Company’s operations; the ability to successfully execute on the Company’s strategy; the timing and success of product launches; competitive conditions in the Company’s industry and consolidation of its competitors; variability in demand by the Company’s clients or the early termination of the Company’s client contracts; the level of business activity of the Company’s clients and the market acceptance and performance of their products and services; the demand for end-to-end solutions and technology; damage to the Company’s reputation through the actions or inactions of third parties; changes in law, regulations, or regulatory guidance; the operability of the Company’s communication services and information technology systems and networks; risks related to our ability to realize estimated cost savings, synergies, or other anticipated benefits of our combination with Webhelp within the expected timeframe; the loss of key personnel or the inability to attract and retain staff with the skills and expertise needed for the Company’s business; increases in the cost of labor; the inability to successfully identify, complete, and integrate strategic acquisitions or investments; higher than expected tax liabilities; currency exchange rate fluctuations; investigative or legal actions; and other factors contained in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2023 filed with the Securities and Exchange Commission and subsequent SEC filings. The Company does not undertake a duty to update forward-looking statements, which speak only as of the date on which they are made.
Copyright 2025 Concentrix Corporation. All rights reserved. Concentrix, Webhelp, the Concentrix logo, and all other Concentrix company, product, and services word and design marks and slogans are trademarks or registered trademarks of Concentrix Corporation and its subsidiaries. Other names and marks are the property of their respective owners.
From Fortune ©2024 Fortune Media IP Limited. All rights reserved. Used under license. Fortune and Fortune 500 are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse the products or services of Concentrix.
Investor Contact:
Sara Buda
Investor Relations
Concentrix Corporation
sara.buda@concentrix.com
(617) 331-0955
| CONCENTRIX CORPORATION CONSOLIDATED BALANCE SHEETS (currency and share amounts in thousands, except par value) | |||||||
| November 30, 2024 | November 30, 2023 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 240,571 | $ | 295,336 | |||
| Accounts receivable, net | 1,926,737 | 1,888,890 | |||||
| Other current assets | 675,116 | 674,423 | |||||
| Total current assets | 2,842,424 | 2,858,649 | |||||
| Property and equipment, net | 714,517 | 748,691 | |||||
| Goodwill | 4,986,967 | 5,078,668 | |||||
| Intangible assets, net | 2,286,940 | 2,804,965 | |||||
| Deferred tax assets | 218,396 | 72,333 | |||||
| Other assets | 942,194 | 928,521 | |||||
| Total assets | $ | 11,991,438 | $ | 12,491,827 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 209,812 | $ | 243,565 | |||
| Current portion of long-term debt | 2,522 | 2,313 | |||||
| Accrued compensation and benefits | 706,619 | 731,172 | |||||
| Other accrued liabilities | 977,314 | 1,016,406 | |||||
| Income taxes payable | 99,546 | 80,583 | |||||
| Total current liabilities | 1,995,813 | 2,074,039 | |||||
| Long-term debt, net | 4,733,056 | 4,939,712 | |||||
| Other long-term liabilities | 910,271 | 920,536 | |||||
| Deferred tax liabilities | 312,574 | 414,246 | |||||
| Total liabilities | 7,951,714 | 8,348,533 | |||||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 7 | 7 | |||||
| Additional paid-in capital | 3,683,608 | 3,582,521 | |||||
| Treasury stock, 4,611 and 2,149 shares as of November 30, 2024 and 2023, respectively | (421,449 | ) | (271,968 | ) | |||
| Retained earnings | 1,191,871 | 1,024,461 | |||||
| Accumulated other comprehensive loss | (414,313 | ) | (191,727 | ) | |||
| Total stockholders’ equity | 4,039,724 | 4,143,294 | |||||
| Total liabilities and stockholders’ equity | $ | 11,991,438 | $ | 12,491,827 | |||
| CONCENTRIX CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (currency and share amounts in thousands, except per share amounts) (unaudited) | |||||||||||||||||||
| Three Months Ended | Fiscal Year Ended | ||||||||||||||||||
| November 30, 2024 | November 30, 2023 | % Change | November 30, 2024 | November 30, 2023 | % Change | ||||||||||||||
| Revenue | |||||||||||||||||||
| Technology and consumer electronics | $ | 685,841 | $ | 656,741 | 4 | % | $ | 2,674,040 | $ | 2,205,834 | 21 | % | |||||||
| Retail, travel and e-commerce | 616,337 | 512,816 | 20 | % | 2,361,866 | 1,448,666 | 63 | % | |||||||||||
| Communications and media | 385,996 | 350,416 | 10 | % | 1,527,922 | 1,117,694 | 37 | % | |||||||||||
| Banking, financial services and insurance | 360,025 | 323,465 | 11 | % | 1,455,641 | 1,091,853 | 33 | % | |||||||||||
| Healthcare | 187,227 | 186,306 | — | % | 727,389 | 696,266 | 4 | % | |||||||||||
| Other | 212,598 | 201,018 | 6 | % | 872,042 | 554,393 | 57 | % | |||||||||||
| Total revenue | 2,448,024 | 2,230,762 | 10 | % | 9,618,900 | 7,114,706 | 35 | % | |||||||||||
| Cost of revenue | 1,577,427 | 1,407,905 | 12 | % | 6,170,013 | 4,536,771 | 36 | % | |||||||||||
| Gross profit | 870,597 | 822,857 | 6 | % | 3,448,887 | 2,577,935 | 34 | % | |||||||||||
| Selling, general and administrative expenses | 726,061 | 642,410 | 13 | % | 2,852,500 | 1,916,608 | 49 | % | |||||||||||
| Operating income | 144,536 | 180,447 | (20 | )% | 596,387 | 661,327 | (10 | )% | |||||||||||
| Interest expense and finance charges, net | 76,117 | 70,508 | 8 | % | 321,828 | 201,004 | 60 | % | |||||||||||
| Other expense (income), net | (44,487 | ) | 32,829 | (236 | )% | (24,715 | ) | 52,095 | (147 | )% | |||||||||
| Income before income taxes | 112,906 | 77,110 | 46 | % | 299,274 | 408,228 | (27 | )% | |||||||||||
| Provision for income taxes | (2,744 | ) | 7,623 | (136 | )% | 48,057 | 94,386 | (49 | )% | ||||||||||
| Net income | $ | 115,650 | $ | 69,487 | 66 | % | $ | 251,217 | $ | 313,842 | (20 | )% | |||||||
| Earnings per common share: | |||||||||||||||||||
| Basic | $ | 1.72 | $ | 1.10 | $ | 3.72 | $ | 5.72 | |||||||||||
| Diluted | $ | 1.72 | $ | 1.09 | $ | 3.71 | $ | 5.70 | |||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||
| Basic | 64,315 | 61,845 | 64,977 | 53,801 | |||||||||||||||
| Diluted | 64,354 | 61,957 | 65,074 | 54,010 | |||||||||||||||
| CONCENTRIX CORPORATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES (currency and share amounts in thousands, except per share amounts) (unaudited) | |||||||
| Three Months Ended | Fiscal Year Ended | ||||||
| November 30, 2024 | November 30, 2024 | ||||||
| Revenue | $ | 2,448,024 | $ | 9,618,900 | |||
| Pro forma revenue growth | 1.3 | % | 1.4 | % | |||
| Foreign exchange impact | 0.2 | % | 1.3 | % | |||
| Pro forma constant currency revenue growth | 1.5 | % | 2.7 | % | |||
| Three Months Ended | Fiscal Year Ended | ||||||||||
| November 30, 2024 | November 30, 2023 | November 30, 2024 | November 30, 2023 | ||||||||
| Operating income | $ | 144,536 | $ | 180,447 | $ | 596,387 | $ | 661,327 | |||
| Acquisition-related and integration expenses | 59,637 | 39,866 | 156,771 | 71,336 | |||||||
| Step-up depreciation | 2,475 | — | 9,907 | — | |||||||
| Amortization of intangibles | 110,098 | 96,636 | 458,925 | 214,832 | |||||||
| Share-based compensation | 29,995 | 23,810 | 95,922 | 62,493 | |||||||
| Non-GAAP operating income | $ | 346,741 | $ | 340,759 | $ | 1,317,912 | $ | 1,009,988 | |||
| Three Months Ended | Fiscal Year Ended | ||||||||||||
| November 30, 2024 | November 30, 2023 | November 30, 2024 | November 30, 2023 | ||||||||||
| Net income | $ | 115,650 | $ | 69,487 | $ | 251,217 | $ | 313,842 | |||||
| Interest expense and finance charges, net | 76,117 | 70,508 | 321,828 | 201,004 | |||||||||
| Provision for income taxes | (2,744 | ) | 7,623 | 48,057 | 94,386 | ||||||||
| Other expense (income), net | (44,487 | ) | 32,829 | (24,715 | ) | 52,095 | |||||||
| Acquisition-related and integration expenses | 59,637 | 39,866 | 156,771 | 71,336 | |||||||||
| Step-up depreciation | 2,475 | — | 9,907 | — | |||||||||
| Amortization of intangibles | 110,098 | 96,636 | 458,925 | 214,832 | |||||||||
| Share-based compensation | 29,995 | 23,810 | 95,922 | 62,493 | |||||||||
| Depreciation | 56,149 | 57,169 | 237,013 | 171,801 | |||||||||
| Adjusted EBITDA | $ | 402,890 | $ | 397,928 | $ | 1,554,925 | $ | 1,181,789 | |||||
| Three Months Ended | Fiscal Year Ended | ||||||||||
| November 30, 2024 | November 30, 2023 | November 30, 2024 | November 30, 2023 | ||||||||
| Operating margin | 5.9 | % | 8.1 | % | 6.2 | % | 9.3 | % | |||
| Non-GAAP operating margin | 14.2 | % | 15.3 | % | 13.7 | % | 14.2 | % | |||
| Adjusted EBITDA margin | 16.5 | % | 17.8 | % | 16.2 | % | 16.6 | % | |||
| Three Months Ended | Fiscal Year Ended | ||||||||||||||
| November 30, 2024 | November 30, 2023 | November 30, 2024 | November 30, 2023 | ||||||||||||
| Net income | $ | 115,650 | $ | 69,487 | $ | 251,217 | $ | 313,842 | |||||||
| Acquisition-related and integration expenses | 59,637 | 39,866 | 156,771 | 71,336 | |||||||||||
| Step-up depreciation | 2,475 | — | 9,907 | — | |||||||||||
| Acquisition-related expenses included in interest expense and finance charges, net (1) | — | — | — | 25,556 | |||||||||||
| Acquisition-related expenses included in other expense (income), net (1) | — | 136 | — | 14,629 | |||||||||||
| Imputed interest related to sellers’ note included in interest expense and finance charges, net | 4,279 | 2,998 | 16,895 | 2,998 | |||||||||||
| Change in acquisition contingent consideration included in other expense (income), net | (18,182 | ) | 15,681 | (29,268 | ) | 15,681 | |||||||||
| Foreign currency losses (gains), net (4) | (27,486 | ) | 12,833 | (1,850 | ) | 14,938 | |||||||||
| Amortization of intangibles | 110,098 | 96,636 | 458,925 | 214,832 | |||||||||||
| Share-based compensation | 29,995 | 23,810 | 95,922 | 62,493 | |||||||||||
| Income taxes related to the above (2) | (39,515 | ) | (47,990 | ) | (173,963 | ) | (105,616 | ) | |||||||
| Income tax effect of legal entity restructuring | (17,617 | ) | — | (12,254 | ) | — | |||||||||
| Non-GAAP net income | $ | 219,334 | $ | 213,457 | $ | 772,302 | $ | 630,689 | |||||||
| Three Months Ended | Fiscal Year Ended | ||||||||||||||
| November 30, 2024 | November 30, 2023 | November 30, 2024 | November 30, 2023 | ||||||||||||
| Net income | $ | 115,650 | $ | 69,487 | $ | 251,217 | $ | 313,842 | |||||||
| Less: net income allocated to participating securities | (5,034 | ) | (1,659 | ) | (9,490 | ) | (5,978 | ) | |||||||
| Net income attributable to common stockholders | 110,616 | 67,828 | 241,727 | 307,864 | |||||||||||
| Acquisition-related and integration expenses allocated to common stockholders | 57,041 | 38,914 | 150,849 | 69,977 | |||||||||||
| Step-up depreciation allocated to common stockholders | 2,367 | — | 9,533 | — | |||||||||||
| Acquisition-related expenses included in interest expense and finance charges, net allocated to common stockholders (1) | — | — | — | 25,069 | |||||||||||
| Acquisition-related expenses included in other expense (income), net allocated to common stockholders (1) | — | 133 | — | 14,350 | |||||||||||
| Imputed interest related to sellers' note included in interest expense and finance charges, net allocated to common stockholders | 4,093 | 2,926 | 16,257 | 2,941 | |||||||||||
| Change in acquisition contingent consideration included in other expense (income), net allocated to common stockholders | (17,391 | ) | 15,307 | (28,162 | ) | 15,382 | |||||||||
| Foreign currency losses (gains), net allocated to common stockholders (4) | (26,290 | ) | 12,527 | (1,780 | ) | 14,653 | |||||||||
| Amortization of intangibles allocated to common stockholders | 105,306 | 94,329 | 441,589 | 210,740 | |||||||||||
| Share-based compensation allocated to common stockholders | 28,689 | 23,242 | 92,298 | 61,303 | |||||||||||
| Income taxes related to the above allocated to common stockholders (2) | (37,795 | ) | (46,844 | ) | (167,391 | ) | (103,604 | ) | |||||||
| Income tax effect of legal entity restructuring allocated to common stockholders | (16,850 | ) | — | (11,791 | ) | — | |||||||||
| Non-GAAP net income attributable to common stockholders | $ | 209,786 | $ | 208,362 | $ | 743,129 | $ | 618,675 | |||||||
| Three Months Ended | Fiscal Year Ended | ||||||||||||||
| November 30, 2024 | November 30, 2023 | November 30, 2024 | November 30, 2023 | ||||||||||||
| Diluted earnings per common share (“EPS”) (3) | $ | 1.72 | $ | 1.09 | $ | 3.71 | $ | 5.70 | |||||||
| Acquisition-related and integration expenses | 0.89 | 0.63 | 2.32 | 1.30 | |||||||||||
| Step-up depreciation | 0.04 | — | 0.15 | — | |||||||||||
| Acquisition-related expenses included in interest expense and finance charges, net (1) | — | — | — | 0.46 | |||||||||||
| Acquisition-related expenses included in other expense (income), net (1) | — | — | — | 0.27 | |||||||||||
| Imputed interest related to sellers’ note included in interest expense and finance charges, net | 0.06 | 0.05 | 0.25 | 0.05 | |||||||||||
| Change in acquisition contingent consideration included in other expense (income), net | (0.27 | ) | 0.25 | (0.43 | ) | 0.28 | |||||||||
| Foreign currency losses (gains), net (4) | (0.41 | ) | 0.20 | (0.03 | ) | 0.27 | |||||||||
| Amortization of intangibles | 1.64 | 1.52 | 6.79 | 3.90 | |||||||||||
| Share-based compensation | 0.45 | 0.38 | 1.42 | 1.14 | |||||||||||
| Income taxes related to the above (2) | (0.60 | ) | (0.76 | ) | (2.58 | ) | (1.92 | ) | |||||||
| Income tax effect of legal entity restructuring | (0.26 | ) | — | (0.18 | ) | — | |||||||||
| Non-GAAP diluted EPS | $ | 3.26 | $ | 3.36 | $ | 11.42 | $ | 11.45 | |||||||
| Weighted-average number of common shares - diluted | 64,354 | 61,957 | 65,074 | 54,010 | |||||||||||
| Three Months Ended | Fiscal Year Ended | ||||||||||||||
| November 30, 2024 | November 30, 2023 | November 30, 2024 | November 30, 2023 | ||||||||||||
| Net cash provided by operating activities | $ | 284,401 | $ | 229,264 | $ | 667,492 | $ | 678,008 | |||||||
| Purchases of property and equipment | (59,871 | ) | (64,815 | ) | (238,762 | ) | (180,532 | ) | |||||||
| Free cash flow | $ | 224,530 | $ | 164,449 | $ | 428,730 | $ | 497,476 | |||||||
| Change in outstanding factoring balances | (5,844 | ) | 45,788 | ||||||||||||
| Adjusted free cash flow | $ | 218,686 | $ | 474,518 | |||||||||||
| Forecast | |||||||||||||||
| Three Months Ending February 28, 2025 | Fiscal Year Ending November 30, 2025 | ||||||||||||||
| Low | High | Low | High | ||||||||||||
| Revenue | $ | 2,355,000 | $ | 2,370,000 | $ | 9,470,000 | $ | 9,610,000 | |||||||
| Revenue growth, as reported under U.S. GAAP | (2.0 | )% | (1.4 | )% | (1.5 | )% | — | % | |||||||
| Foreign exchange impact | 2.0 | % | 2.1 | % | 1.5 | % | 1.5 | % | |||||||
| Constant currency revenue growth | — | % | 0.75 | % | — | % | 1.5 | % | |||||||
| Forecast | |||||||||||
| Three Months Ending February 28, 2025 | Fiscal Year Ending November 30, 2025 | ||||||||||
| Low | High | Low | High | ||||||||
| Operating income | $ | 137,000 | $ | 147,000 | $ | 662,500 | $ | 702,500 | |||
| Amortization of intangibles | 109,000 | 109,000 | 432,000 | 432,000 | |||||||
| Share-based compensation | 30,000 | 30,000 | 129,500 | 129,500 | |||||||
| Acquisition-related and integration expenses | 26,500 | 26,500 | 66,000 | 66,000 | |||||||
| Step-up depreciation | 2,500 | 2,500 | 10,000 | 10,000 | |||||||
| Non-GAAP operating income | $ | 305,000 | $ | 315,000 | $ | 1,300,000 | $ | 1,340,000 | |||
(1) Included in these amounts are a) bridge financing fees expensed and interest expenses associated with the senior notes, net of interest earnings on invested proceeds incurred in advance of the combination with Webhelp and b) expenses associated with non-designated call option contracts put in place to hedge foreign exchange movements in connection with the combination with Webhelp that are included within interest expense and finance charges, net and other expense (income), net, respectively, in the consolidated statement of operations.
(2) The tax effect of taxable and deductible non-GAAP adjustments was calculated using the tax-deductible portion of the expenses and applying the entity-specific, statutory tax rates applicable to each item during the respective periods presented.
(3) Diluted EPS is calculated using the two-class method. The two-class method is an earnings allocation proportional to the respective ownership among holders of common stock and participating securities. Restricted stock awards, and since the fourth quarter of fiscal year 2023, certain restricted stock units granted to employees are considered participating securities. For the purposes of calculating diluted EPS, net income attributable to participating securities was approximately
(4) Foreign currency losses (gains), net are included in other expense (income), net and primarily consist of gains and losses recognized on the revaluation and settlement of foreign currency transactions and realized and unrealized gains and losses on derivative contracts that do not qualify for hedge accounting.
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