Yahoo Finance

• Revenue: Q4 revenue of approximately $2.45 billion, growing 1.5% on a pro forma constant currency basis.

• Non-GAAP Operating Income: $347 million for Q4, with a margin of 14.2%.

• Adjusted EBITDA: $403 million in Q4, with a margin of 16.5%.

• Non-GAAP Net Income: $219 million for Q4.

• Non-GAAP EPS: $3.26 for Q4.

• GAAP Net Income: $116 million for Q4.

• GAAP Diluted EPS: $1.72 per share for Q4.

• Full Year Revenue Growth: 2.7% on a pro forma constant currency basis for fiscal 2024.

• Adjusted Free Cash Flow: $475 million for fiscal 2024.

• Share Repurchase: $136 million of common shares repurchased in fiscal 2024.

• Dividends Paid: $84 million during fiscal 2024.

• Net Debt Reduction: Approximately $209 million during fiscal 2024.

• Cash and Cash Equivalents: $241 million at year-end.

• Total Debt: $4.736 billion at year-end.

• 2025 Revenue Guidance: $9.47 billion to $9.61 billion.

• 2025 Non-GAAP EPS Guidance: $11.18 to $11.77 per share.

• 2025 Adjusted Free Cash Flow Guidance: $625 million to $650 million.

• Q1 2025 Revenue Guidance: $2.355 billion to $2.37 billion.

• Q1 2025 Non-GAAP EPS Guidance: $2.49 to $2.64 per share.

• Warning! GuruFocus has detected 5 Warning Signs with CNXC.

Release Date: January 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Concentrix Corp (NASDAQ:CNXC) achieved a high client revenue retention rate of approximately 99% in fiscal 2024.

• The company has successfully integrated Webhelp, resulting in ongoing net synergy benefits expected to show in 2025 and beyond.

• Concentrix Corp (NASDAQ:CNXC) has expanded its offerings with new solutions like data annotation, AI design, and cybersecurity, contributing nearly $1 billion in revenue in 2024.

• The company has a strong pipeline of new clients in Europe following the Webhelp integration, indicating potential for future growth.

• Concentrix Corp (NASDAQ:CNXC) has a robust free cash flow generation, allowing for debt reduction and increased shareholder returns through dividends and share repurchases.

Negative Points

• Revenue growth was modest at 1.5% on a pro forma constant currency basis for Q4, reflecting challenges in some verticals.

• Non-GAAP operating income margin decreased due to increased technology spend and upfront investments in transformational wins.

• The company faces headwinds from ongoing decreases in revenue from North American communications clients.

• There is a continued decline in low complexity transactions, which could impact revenue growth in the short term.

• Concentrix Corp (NASDAQ:CNXC) anticipates a negative impact from foreign exchange rates on revenue growth in 2025.