Q2 2024 Concentrix Corp Earnings Call Transcript
Key Points
- Concentrix Corp (CNXC) reported a 47% increase in revenues, exceeding prior guidance.
- Non-GAAP operating income increased by 46% year-on-year to $321 million, aligning with guidance.
- Adjusted EBITDA rose by 47% year-on-year to $380 million.
- The company generated over $200 million in adjusted cash flow and returned more than $60 million to shareholders through dividends and share repurchases.
- Concentrix Corp (CNXC) raised its full-year revenue growth guidance, reflecting ongoing client demand and stability in client volumes.
- Non-GAAP operating margin decreased by 20 basis points due to the inclusion of Webhelp, which historically operated at a lower margin.
- The company expects to incur $20 million to $25 million in incremental expenses related to large multiyear programs.
- Investments in technology and generative AI are expected to temporarily weigh on margins.
- Revenue from telco and media clients decreased by 3% on a pro forma basis due to lower volumes from North American communications clients.
- The company is guiding for a sequential decline in Q3 revenue, reflecting a cautious approach despite positive trends.
Good day, everyone, and thank you for standing by, and welcome to the Concentrix fiscal [first-quarter] 2024 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I'd now like to hand it over to the Vice President of Investor Relations, Sara Buda. Please proceed.
Thank you, operator, and good evening, everyone. Welcome to the Concentrix second-quarter fiscal 2024 earnings call. This call is the property of Concentrix and may not be recorded or rebroadcast without the written permission of Concentrix. This call contains forward-looking statements that address our future performance and that, by their nature, address matters that are uncertain. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements.
We do not undertake to update our forward-looking statements as a result of new information or future expectations, events, or
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