Q3 2024 Concentrix Corp Earnings Call Transcript
Key Points
- Concentrix Corp (CNXC) reported third-quarter revenue of $2.4 billion, reflecting 2.6% pro forma constant currency growth.
- The company saw significant wins, including a large transformational program with a financial organization valued at over $150 million in revenue.
- Concentrix Corp (CNXC) is proactively disrupting its own business to focus on long-term value creation, with a marked decline in transactional price-led commodity business.
- The company is leveraging its technology leadership to drive automation and improve performance, as evidenced by a win with an airline and a large infrastructure company.
- Concentrix Corp (CNXC) is launching new products like iX Hello, aimed at helping organizations harness the power of generative AI, which has garnered significant interest.
- The company has lowered its fourth-quarter revenue expectations due to lower volume forecasts, larger shifts to lower-cost delivery geographies, and the loss of some commoditized projects.
- Non-GAAP operating income was at the low end of guidance due to higher-than-anticipated costs for shifting programs offshore and upfront technology investments.
- Revenue from healthcare clients decreased by 4% due to shifts in delivery locations, impacting near-term performance.
- The company is experiencing margin pressure from dual costs associated with moving programs offshore and upfront investments in technology for longer-term contracts.
- Adjusted free cash flow was below expectations due to client collection delays and accelerated spending on integration costs.
Thank you for standing by, and welcome to Concentrix third-quarter fiscal year 2024 financial results conference call. (Operator Instructions)
I would now like to hand the call over to Sara Buda, Investor Relations. Please go ahead.
Great. Thank you, operator, and good evening. Welcome to the Concentrix third-quarter fiscal 2024 earnings call. This call is a property of Concentrix and may not be recorded or rebroadcast without the written permission of Concentric.
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 developments.
Please refer to today's earnings release and our most recent filings with the SEC for additional
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