Chris Caldwell, President and CEO of Concentrix, to discuss AI's transformative impact on the customer experienceCompany to showcase leading-edge technologies at Stand 0404-16, FIL1 Pavilion 1 NEWARK, Calif., Nov. 11, 2024 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, announced today that it will offer new insights into how AI and intelligent experiences are reshaping industries at Web Summit 2024, the world’s premier tech conference in Lisbon, Portugal ...

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[PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements for the three and nine months ended August 31, 2024 and 2023, along with detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased from **$12.49 billion** to **$12.21 billion** as of August 31, 2024, driven by lower cash and intangibles, with total liabilities also decreasing Consolidated Balance Sheet Highlights (in millions/billions) | Account | August 31, 2024 (unaudited, $B) | November 30, 2023 ($B) | | :--- | :--- | :--- | | **Total Assets** | **$12.21** | **$12.49** | | Cash and cash equivalents ($M) | $246.2 | $295.3 | | Goodwill ($B) | $5.08 | $5.08 | | Intangible assets, net ($B) | $2.48 | $2.80 | | **Total Liabilities** ($B) | **$8.04** | **$8.35** | | Long-term debt, net ($B) | $4.91 | $4.94 | | **Total Stockholders' Equity** ($B) | **$4.17** | **$4.14** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 2024 revenue increased to **$2.39 billion** from **$1.63 billion** YoY due to the Webhelp acquisition, but net income declined to **$16.6 million** from **$77.6 million** Statement of Operations Summary (in millions, except per share amounts) | Metric (in millions) | Three Months Ended Aug 31, 2024 | Three Months Ended Aug 31, 2023 | Nine Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$2,387.4** | **$1,632.8** | **$7,170.9** | **$4,883.9** | | Gross Profit | $864.2 | $593.7 | $2,578.3 | $1,755.1 | | Operating Income | $153.2 | $162.3 | $451.9 | $480.9 | | **Net Income** | **$16.6** | **$77.6** | **$135.6** | **$244.4** | | **Diluted EPS** | **$0.25** | **$1.49** | **$2.00** | **$4.67** | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$383.1 million** for the nine months ended August 31, 2024, with financing activities shifting from a **$1.64 billion** inflow to a **$268.1 million** outflow Cash Flow Summary (Nine Months Ended Aug 31, in millions/billions) | Cash Flow Activity (in millions/billions) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities ($M) | $383.1 | $448.7 | | Net cash used in investing activities ($M) | ($183.4) | ($115.7) | | Net cash provided by (used in) financing activities ($M/$B) | ($268.1) | $1.64B | | **Net (decrease) increase in cash ($M/$B)** | **($74.7)** | **$1.97B** | [Notes to the Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial statement line items, covering the Webhelp Combination, revenue, debt, and equity - The company completed its acquisition of Webhelp on September 25, 2023, for a total purchase price consideration of approximately **$3.77 billion**, net of cash acquired[18](index=18&type=chunk)[19](index=19&type=chunk) - For the nine months ended August 31, 2024, revenue from the Retail, travel and ecommerce vertical grew **86.5%** YoY, and Communications and media grew **48.8%** YoY, primarily driven by the Webhelp Combination[92](index=92&type=chunk) - During the nine months ended August 31, 2024, the company repurchased **1.5 million shares** for **$101.6 million** and paid dividends totaling **$61.2 million**[8](index=8&type=chunk)[104](index=104&type=chunk) - As of August 31, 2024, the company was in compliance with all debt covenants related to its Senior Notes, Restated Credit Facility, and other borrowing arrangements[87](index=87&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=38&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management analyzes financial results, highlighting the Webhelp Combination's impact on revenue, margins, and expenses, and discusses liquidity, capital resources, debt, and non-GAAP measures [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q3 2024 revenue increased **46.2%** to **$2.39 billion** due to the Webhelp Combination, but operating income fell **5.6%** to **$153.2 million** due to higher SG&A expenses and amortization - Q3 2024 revenue increased by **46.2%** YoY, primarily due to the Webhelp Combination[128](index=128&type=chunk) - Q3 2024 SG&A expenses increased by **64.8%** YoY, mainly due to incremental costs from the Webhelp Combination, a **$77.0 million** increase in amortization, and a **$17.6 million** increase in acquisition-related and integration expenses[137](index=137&type=chunk)[138](index=138&type=chunk) - Interest expense for Q3 2024 increased by **63.9%** YoY to **$80.8 million**, driven by interest on senior notes and the Sellers' Note issued for the Webhelp acquisition[142](index=142&type=chunk)[143](index=143&type=chunk) - The effective tax rate for Q3 2024 was **37.0%**, up from **27.3%** in Q3 2023, primarily due to a change in the geographic mix of income[148](index=148&type=chunk)[149](index=149&type=chunk) [Certain Non-GAAP Financial Information](index=45&type=section&id=Certain%20Non-GAAP%20Financial%20Information) The company provides non-GAAP metrics to assess base operating performance, with Q3 2024 Non-GAAP operating income at **$331.0 million** and Non-GAAP diluted EPS at **$2.87** GAAP to Non-GAAP Reconciliation Highlights (Q3 Ended Aug 31, in millions, except per share) | Metric (in millions, except per share) | 2024 | 2023 | | :--- | :--- | :--- | | **GAAP Operating Income** | **$153.2** | **$162.3** | | Non-GAAP Operating Income | $331.0 | $231.0 | | **GAAP Net Income** | **$16.6** | **$77.6** | | Non-GAAP Net Income | $192.2 | $143.7 | | **GAAP Diluted EPS** | **$0.25** | **$1.49** | | Non-GAAP Diluted EPS | $2.87 | $2.76 | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) As of August 31, 2024, total liquidity was **$1.47 billion**, with cash used for debt repayment, **$101.6 million** in stock repurchases, and **$61.2 million** in dividends, while remaining debt compliant - Total liquidity as of August 31, 2024, was **$1.47 billion**, comprising undrawn credit facilities and cash and cash equivalents[188](index=188&type=chunk) - During the nine months ended August 31, 2024, the company voluntarily prepaid **$350 million** of the principal balance on its Term Loan[172](index=172&type=chunk) - The company repurchased **$101.6 million** of its common stock and paid **$61.2 million** in dividends during the first nine months of fiscal 2024[163](index=163&type=chunk)[164](index=164&type=chunk) - On September 25, 2024, the company announced a quarterly cash dividend of **$0.33275 per share**, an increase from the previous rate[107](index=107&type=chunk)[164](index=164&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the company's exposure to market risks, primarily from foreign currency exchange rates and interest rates, and its use of derivative instruments for hedging - The company has significant foreign currency risk as approximately **50%** of revenue is priced in U.S. dollars, while a substantial portion of costs are in local currencies like the Philippine peso and Indian rupee[193](index=193&type=chunk)[194](index=194&type=chunk) - A hypothetical **10%** adverse change in foreign currency exchange rates would result in a potential loss in fair value of approximately **$103.8 million** on hedging contracts, substantially mitigated by corresponding gains on underlying exposures[194](index=194&type=chunk) - The company is exposed to interest rate risk on its variable-rate debt, where a **100 basis point** increase in interest rates would cause an estimated increase in annual interest expense of approximately **$20.2 million**[196](index=196&type=chunk) [Controls and Procedures](index=53&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of August 31, 2024, with ongoing integration of Webhelp's internal controls - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of the end of the reporting period[197](index=197&type=chunk) - The company is in the process of evaluating and integrating the operations, processes, and internal controls of the acquired Webhelp business[199](index=199&type=chunk) [PART II—OTHER INFORMATION](index=55&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=55&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course legal proceedings not expected to materially affect its financial position, with no material developments this quarter - During the three months ended August 31, 2024, there were no new material legal proceedings or material developments in previously reported proceedings[201](index=201&type=chunk) [Risk Factors](index=55&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company reports no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for fiscal year ended November 30, 2023 - There have been no material changes from the risk factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended November 30, 2023[202](index=202&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details Q3 2024 common stock repurchases, totaling **607,298 shares** for approximately **$39.3 million**, with **$188.5 million** remaining under authorization Share Repurchases (Quarter Ended August 31, 2024) | Period | Total Shares Purchased (Program) | Average Price Paid per Share ($) | | :--- | :--- | :--- | | June 2024 | 215,452 | $60.42 | | July 2024 | 199,861 | $66.93 | | August 2024 | 191,985 | $67.23 | | **Total** | **607,298** | **$64.72 (approx.)** | - As of August 31, 2024, approximately **$188.5 million** remained available for share repurchases under the existing program[203](index=203&type=chunk) [Other Information](index=55&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The company reports no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q3 2024 - During the third quarter of 2024, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement[204](index=204&type=chunk) [Exhibits](index=56&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including Webhelp acquisition agreements, corporate governance documents, and officer certifications - The report includes certifications from the CEO and CFO pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act of 2002[206](index=206&type=chunk)

Group 1 - U.S. stock futures are higher, with Dow futures gaining around 200 points [1] - Concentrix Corporation reported quarterly earnings of $2.87 per share, missing the analyst consensus estimate of $2.93 per share [1] - Concentrix's quarterly revenue was $2.387 billion, beating the analyst consensus estimate of $2.382 billion [1] Group 2 - Concentrix shares fell 13.8% to $54.79 in pre-market trading [2] - One Liberty Properties, Inc. shares dipped 26.3% to $20.02 in pre-market trading [3] - Pagaya Technologies Ltd. shares fell 15% to $10.59 after announcing a $125 million exchangeable senior notes offering [3] - Critical Metals Corp shares declined 8.3% to $6.00 in pre-market trading [3] - CarMax, Inc. shares declined 7.3% to $69.02 following downbeat quarterly earnings [3] - Armada Hoffler Properties, Inc. shares declined 7.3% to $11.00 after announcing upsizing and pricing of a public offering [3] - Sonos, Inc. shares fell 6% to $11.86 in pre-market trading [3]

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 ...

Core Insights - Concentrix Corporation has launched iX Hello, a GenAI-powered self-service application aimed at enhancing productivity and engagement quality while ensuring high security [1][5] - iX Hello serves as a versatile solution for businesses, enabling the creation of virtual assistants for various applications, including data analysis and language translation [2][4] Product Features - iX Hello integrates with leading Large Language Models (LLMs) and internal data sources, providing a cost-effective way to improve productivity and work quality in a secure environment [2][4] - The application supports over 90 languages for market-ready copy translation, data analysis, and content summarization, among other functionalities [4] - Built-in innovations allow companies to create GenAI experiences that align with their brand voice and vocabulary [4] Strategic Importance - The launch of iX Hello is a significant milestone in Concentrix's product roadmap, leveraging decades of experience and insights from billions of customer interactions [5] - Concentrix is also offering a private preview of future iX Hello functionalities for select organizations, which includes approximately 40 pre-built virtual agents [5][6] Future Developments - Concentrix plans to introduce additional technology products in the iX suite in the coming months, indicating a commitment to expanding its AI and GenAI capabilities [6]

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 ...

Company Overview - Concentrix (NASDAQ: CNXC) is set to report its Q3 financial results on September 25th [1] - The company has been under review since the author's initial article, with a focus on long-term performance [1] Investment Strategy - The author prefers a long-term investment horizon, typically 5-10 years [1] - The investment portfolio is diversified, including growth, value, and dividend-paying stocks, with a particular emphasis on value stocks [1] - The author occasionally engages in selling options as part of the investment strategy [1]