Concentrix(CNXC)2025-03-26 20:17Revenue Performance - Revenue for Q1 2025 was $2,372.2 million, a decrease of 1.3% year-on-year from $2,402.7 million in Q1 2024, but a constant currency growth of 1.3%[6] - Total revenue for the three months ended February 28, 2025, was $2,372,222, a decrease of 1% compared to $2,402,748 for the same period in 2024[28] - Revenue forecast for the three months ending May 31, 2025, is projected between $2,370,000 and $2,390,000, with a reported growth rate of (0.40)% to 0.35%[32] - Full year reported revenue guidance is set at $9.490 billion to $9.635 billion, with constant currency growth expectations of 0% to 1.5%[11] - The fiscal year ending November 30, 2025, revenue is expected to be between $9,490,000 and $9,635,000, with a growth forecast of (1.35)% to 0.15%[32] Income and Earnings - Operating income increased to $168.9 million, representing 7.1% of revenue, compared to $148.4 million or 6.2% of revenue in the prior year[6] - Net income rose by 34.9% to $70.3 million from $52.1 million in Q1 2024[6] - Operating income rose by 14% to $168,867 for the three months ended February 28, 2025, compared to $148,439 for the same period in 2024[28] - Net income increased by 35% to $70,257 for the three months ended February 28, 2025, compared to $52,102 for the same period in 2024[28] - Non-GAAP diluted earnings per share (EPS) was $2.79, up 8.6% from $2.57 in the prior year[6] - Diluted EPS for the three months ended February 28, 2025, was $1.04, compared to $0.76 for the same period in 2024, reflecting a 36.8% increase[32] - Non-GAAP operating income is projected to be between $315,000 and $325,000 for the same period[32] Cash Flow and Financial Position - The company expects to generate approximately $625 million to $650 million of adjusted free cash flow for the full fiscal year 2025[5] - Net cash provided by operating activities was $1,408,000 for the three months ended February 28, 2025, a significant recovery from a negative cash flow of $(46,870,000) in the prior year[32] - Free cash flow improved to $(49,210,000) from $(102,929,000) year-over-year, indicating a 52.0% reduction in cash outflow[32] - Cash and cash equivalents increased to $308,000 as of February 28, 2025, from $240,571 as of November 30, 2024[26] - Total assets decreased slightly to $11,895,119 as of February 28, 2025, from $11,991,438 as of November 30, 2024[26] - The company’s total liabilities decreased to $7,861,349 as of February 28, 2025, from $7,951,714 as of November 30, 2024[26] - The company’s additional paid-in capital increased to $3,711,701 as of February 28, 2025, from $3,683,608 as of November 30, 2024[26] Shareholder Returns - The company repurchased approximately 550,000 shares for $26.2 million at an average cost of $47.84 per share in Q1 2025[10] - The quarterly dividend of $0.33275 per share was declared for payment on May 6, 2025[10] Guidance and Expectations - For Q2 2025, the company anticipates reported revenue between $2.370 billion and $2.390 billion, implying constant currency growth of 0.50% to 1.25%[11] - The effective tax rate for the full year is expected to be approximately 25.5% to 26.5%[11] - The company expects a constant currency revenue growth of 1.3% for the upcoming quarters[30] Other Expenses - Acquisition-related and integration expenses primarily related to the combination with Webhelp, including severance and IT system consolidation costs[33] - Foreign currency losses (gains), net, included in other expenses, primarily consist of gains and losses from foreign currency transactions and derivative contracts[33]