Concentrix (CNXC) Q4 2024 earnings summary

Executive summary

• Integrated Webhelp ahead of plan, aligning teams globally, and completed ERP migration.

• Achieved Q4 revenue of $2.45B, up 9.7% year-over-year, and FY24 revenue of $9.62B, up 35.2% year-over-year, both at the high end of guidance.

• Achieved high client retention (~99%) and expanded offerings in GenAI, analytics, and IT services.

• Launched new GenAI iX productivity suite, securing over a dozen client wins shortly after launch.

• Returned $220M to shareholders in FY24 via dividends and share repurchases; reduced debt by $209M.

Financial highlights

• Q4 revenue was $2.45B, up 1.5% year-over-year on a pro forma constant currency basis.

• Full-year 2024 revenue grew 2.7% on a pro forma constant currency basis.

• Q4 non-GAAP operating income was $347M (14.2% margin); adjusted EBITDA was $403M (16.5% margin).

• Q4 net income was $115.7M, up 66.5% year-over-year; FY24 net income was $251.2M, down 20%.

• Adjusted free cash flow for 2024 was $475M; $220M returned to shareholders via buybacks and dividends.

Outlook and guidance

• FY25 revenue guidance: $9.47B–$9.61B, implying 0–1.5% constant currency growth.

• Non-GAAP operating income expected at $1.3B–$1.34B; non-GAAP EPS $11.18–$11.77.

• Adjusted free cash flow expected to grow to $625M–$650M in 2025.

• Q1 FY25 revenue guidance: $2.355B–$2.37B; non-GAAP EPS $2.49–$2.64.

• Board increased share repurchase authorization to $600M for 2025.