Concentrix (CNXC) BofA Securities 2024 Global Technology Conference summary

Business performance and market trends

• Achieved 2.8% constant currency pro forma growth in Q1, at the high end of guidance.

• Strong growth in travel, e-commerce, enterprise tech, banking, financial services, and insurance; healthcare improving.

• Consumer electronics and North American communications sectors are weak due to macro factors and reduced service levels.

• EMEA, Latin America, and Asia-Pac regions show strong growth, while North America faces reduced demand and delivery shifts.

• New economy clients represent 25% of revenue, growing faster than the overall business but at mid- to high-single digits.

Sales cycles, pricing, and delivery mix

• Sales cycles remain consistent, with some large transformation deals taking longer but building pipeline for 2025.

• Shift in Catalyst business to focus on shorter, quicker ROI deals, driving 10% growth in Q1.

• Pricing remains largely input-based, with slow progress on outcomes-based models; some move to transaction-based pricing.

• Contracts typically last 2-3 years; modest wage inflation in North America and Europe, with efficiency gains expected to offset costs.

• Delivery mix: 42% onshore, 35% offshore, 15% nearshore; margin percentage increases as work moves offshore.

Webhelp integration and synergies

• Integration focused on leadership, go-to-market, and client delivery, with rapid unification post-close.

• Back office integration (ERP, HRIS, data centers) ongoing, targeting completion by fiscal 2025.

• On track for $75M in synergies this year and $120M by year three; $80M integration costs in 2024, dropping to $20-25M in 2025.

• Acquisition expanded footprint in Europe and Latin America, enabling new revenue synergies and competitive positioning.