In This Article:
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Revenue: Approximately $2.37 billion, growing 1.3% year over year on a constant currency basis.
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Non-GAAP Operating Income: $322 million, with a margin of 13.6%, an increase of 30 basis points from Q1 last year.
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Adjusted EBITDA: $374 million, with a margin of 15.8%.
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Non-GAAP Net Income: $188 million, an increase of about $12 million compared to the first quarter last year.
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Non-GAAP Diluted EPS: $2.79, reflecting a nearly 9% increase year over year.
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GAAP Net Income: $70 million.
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GAAP Diluted EPS: $1.4 per share.
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Adjusted Free Cash Flow: A use of $40 million, an improvement of $41 million from last year.
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Cash and Cash Equivalents: $308 million at the end of the first quarter.
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Total Debt: $4.9 billion, with net debt just under $4.6 billion.
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Shareholder Returns: $48 million returned, including $26 million in share repurchases and $22 million in dividends.
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Liquidity: Approximately $1.5 billion, including an undrawn line of credit over $1 billion.
Release Date: March 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Concentrix Corp (NASDAQ:CNXC) reported year-over-year revenue and profitability growth above guidance for Q1 2025.
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The company has successfully deployed GenAI solutions at scale, positioning itself as a leader in AI deployment.
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Revenue from top 25 clients continues to outpace the growth rate of the rest of the business, indicating strong client relationships.
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The iX Hello product suite is gaining traction, with thousands of seats deployed and expected to be accretive to earnings by the end of fiscal 2025.
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Concentrix Corp (NASDAQ:CNXC) has a strong liquidity position with approximately $1.5 billion, including an undrawn line of credit.
Negative Points
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Revenue growth in the healthcare vertical was flat year-over-year, indicating potential challenges in this sector.
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The company is facing a negative impact from foreign exchange rates, affecting revenue growth.
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Adjusted free cash flow was a use of $40 million in Q1, although this was an improvement from the previous year.
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There is a need for ongoing investment in AI and technology, which could pressure margins in the short term.
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The macroeconomic environment remains muted, with no significant improvement expected in the near term.
Q & A Highlights
Q: Can you provide more details on the performance of the consumer electronics vertical, which was flat this quarter? A: Christopher Caldwell, President and CEO, explained that the flat performance in consumer electronics is due to taking market share from competitors and selling more data annotation services. There is also more stability in the sector compared to previous forecasts, which were often inaccurate.