U.S. stock futures were higher this morning, with the Dow futures gaining around 200 points on Thursday. Shares of Concentrix Corporation CNXC fell sharply in today's pre-market trading following mixed thirdquarter financial results. Concentrix reported quarterly earnings of $2.87 per share, which missed the analyst consensus estimate of $2.93 per share. Quarterly revenue came in at $2.387 billion, which beat the analyst consensus estimate of $2.382 billion. Concentrix shares dipped 13.8% to $54.79 in pre-m ...

Financial Data and Key Metrics - Q3 2024 revenue was $2.4 billion, reflecting 2.6% pro forma constant currency growth [19] - Non-GAAP operating income was $331 million, up $100 million YoY, with a margin of 13.9%, down 20 bps YoY [21] - Adjusted EBITDA was $388 million, up $119 million YoY, with a margin of 16.3%, down 20 bps YoY [21] - Non-GAAP net income was $192 million, up $49 million YoY, and non-GAAP EPS was $2.87, up $0.11 YoY [22] - Adjusted free cash flow was $135 million, below expectations due to client collection delays and accelerated integration costs [23] - Net debt was $4.67 billion, with a net leverage ratio of 2.95x pro forma adjusted EBITDA [24] Business Line Data and Key Metrics - Retail, travel, and e-commerce revenue grew 8% YoY on a pro forma constant currency basis [19] - Banking, financial services, and insurance revenue grew 5% YoY [19] - Technology and consumer electronics revenue grew 1%, while communications and media revenue declined 3% [20] - Healthcare revenue decreased 4% due to offshore delivery shifts [20] Market Data and Key Metrics - The company won 80% of 22 client consolidation opportunities in Q3 [11] - The airline win in Q3 leverages Generative AI solutions across 15 lines of business and 10 languages [8] - A large infrastructure company saw 40% of transactions handled autonomously by an AI bot, resulting in a 12% near-term revenue reduction [9] - A $150 million five-year contract was secured with a large financial organization for a transformational program [10] Company Strategy and Industry Competition - The company is focusing on winning higher complexity deals and walking away from commoditized business, with less than 7% of revenue now from transactional price-led business [7] - Investments in Generative AI tools have increased to a $100 million annual run rate [14] - The launch of iX Hello, a Generative AI productivity tool, aims to automate internal tasks and boost productivity [15] - The company is reallocating capital towards technology and transformation work to secure long-term business [17] Management Commentary on Operating Environment and Future Outlook - Clients are accelerating technology adoption and pushing for faster transformations, leading to shorter transition timelines [5] - The company expects Q4 revenue of $2.42 billion to $2.47 billion, with pro forma constant currency growth ranging from -0.5% to 1.5% [30] - Full-year 2024 revenue is expected to be $9.591 billion to $9.641 billion, with pro forma constant currency growth of 2.2% to 2.7% [32] - The company aims to reduce net leverage to 2.8x adjusted EBITDA by year-end 2024 [34] Other Important Information - The company repurchased 600,000 shares for $39 million in Q3 and expects full-year repurchases to exceed $130 million [25] - A 10% increase in the quarterly dividend was announced [25] - Integration synergies are expected to reach $120 million by 2025, a year ahead of schedule [28] Q&A Session Summary Question: Revenue impact from walking away from commoditized business vs. new business wins [37] - The company expects a 1% headwind from client volume declines, a 0.5% headwind from offshoring, and a <0.5% headwind from lost consolidation opportunities [38] Question: Ramp timelines for new business wins [39] - The airline win will start generating revenue in late Q4/early Q1, with full ramp by Q2/Q3 2025 [40] - The large transformational project will see revenue by end of Q2 2025, with full ramp by end of Q4 2025 [40] Question: Accelerated merger-related costs in 2025 [41] - The company is accelerating integration spending to achieve $120 million in synergies by 2025, reinvesting savings into transformation activities [42] Question: Other expenses increase in Q3 [43] - The increase was due to $33 million in foreign currency losses and changes in contingent consideration [44] Question: Catalyst business trends [45] - The Catalyst business is performing well, enabling technology deployments and consulting on transformational deals [46] Question: Offshoring impact on revenue and margins [47] - Offshoring is causing dual costs and margin compression in the short term, but longer-term contracts will lead to margin expansion [49] Question: TCE segment performance [52] - The TCE segment saw muted volumes, particularly in consumer electronics, despite share gains [53] Question: Client consolidation opportunities [54] - The company is seeing faster-than-expected consolidation, driven by clients managing costs and seeking full solutions [55] Question: Automation targets [57] - Automation timelines are accelerating as clients seek in-year savings, but the scope of automation remains consistent [58] Question: iX Hello pricing and cannibalization [64] - iX Hello is priced per seat with volume discounts, and the company is comfortable with cannibalizing low-margin business [65] Question: Gen AI investment ROI [67] - The company expects ROI on its $100 million annual Gen AI investment by end of 2025, with accretive margins and growth rates [68] Question: Impact of new technology products on margins [71] - The company is managing investments within its $100 million run rate and expects to see margin improvements as transformational programs ramp [72] Question: Offshore program margin benefits and pricing environment [73] - Offshore programs typically take 2-3 quarters to show margin benefits, and the pricing environment remains competitive, with clients shifting upfront costs to providers [74] Question: Gen AI adoption and future disruption [75] - Close to 1,000 clients are using Gen AI at scale, with some proof-of-concepts converting to production, but clients remain cautious about customer-facing AI [76][77] - The company expects continued adoption of multiple Gen AI solutions tailored to specific client needs [80]

Concentrix Corporation (CNXC) came out with quarterly earnings of $2.87 per share, missing the Zacks Consensus Estimate of $2.92 per share. This compares to earnings of $2.71 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.71%. A quarter ago, it was expected that this company would post earnings of $2.62 per share when it actually produced earnings of $2.69, delivering a surprise of 2.67%. Over the last four quarters, the ...

Exhibit 99.1 (1) concentrix Concentrix Reports Third Quarter 2024 Results – Delivers revenue above the midpoint of guidance and profit within guidance range – Returns $60 million to shareholders in the quarter through share repurchases and dividends and raises quarterly dividend by 10% – Introduces iX Hello™, the Company's first commercial product launch, reflecting the Company's accelerated AI investments Newark, Calif., September 25, 2024 – Concentrix Corporation (NASDAQ: CNXC), a global technology and se ...

NEWARK, Calif., Sept. 25, 2024 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, today announced the release of iX Hello, a GenAI-powered self-service application designed to supercharge productivity and engagement quality, with high security. A Media Snippet accompanying this announcement is available by clicking on this link. iX Hello offers an out-of-the box solution for businesses to create virtual assistants for countless use cases — from data analysis ...

Delivers revenue above the midpoint of guidance and profit within guidance range Returns $60 million to shareholders in the quarter through share repurchases and dividends and raises quarterly dividend by 10% Introduces iX Hello™, the Company's first commercial product launch, reflecting the Company's accelerated AI investments NEWARK, Calif., Sept. 25, 2024 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, today announced financial results for the fiscal th ...

Concentrix (NASDAQ: CNXC ) is going to report its Q3 numbers next week, on the 25 th of September, so I thought I'd revisit the company and see how it performed since my first article when I MSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time. Analyst's Disclosure: I/we ...

NEWARK, Calif., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, plans to announce its fiscal third quarter 2024 financial results after market close on Wednesday, September 25, 2024. The Company also plans to host a conference call and webcast with the investment community to discuss the financial results that same evening on Wednesday, September 25, 2024, at 5:00 pm, Eastern Time. The live conference call webcast will be available in listen ...

NEWARK, Calif., July 08, 2024 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ:CNXC), a global technology and services leader, today announced the release of its 2024 Sustainability Report - The Power Of One, detailing the company's progress toward supporting its people, local communities and planet, and evolving its strategy for a more sustainable future. Concentrix has committed to take bold action to create a more sustainable tomorrow and has already exceeded many of its 2025 sustainability goals. Now, ...

NEWARK, Calif., July 08, 2024 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, today announced the release of its 2024 Sustainability Report - The Power Of One, detailing the company's progress toward supporting its people, local communities and planet, and evolving its strategy for a more sustainable future. 3. Building trust – build and foster trust by acting with integrity in everything we do. Always. Concentrix employees (called game-changers) will work ...