Concentrix (CNXC) Investor Update summary

Business overview and growth drivers

• Provides integrated end-to-end business services, serving over 2,000 clients globally, including 150+ Fortune 500 firms.

• Maintains long-term client relationships, with top 25 clients averaging 17 years.

• Revenue near $10 billion, EBITDA over $1.5 billion, and strong free cash flow.

• Growth expected in 2024 and 2025, with guidance midpoint at 2.5%.

• Growth driven by new service offerings, proprietary technology, and share gains from competitors.

Impact and adoption of generative AI

• Holds one of the largest Gen AI installed bases in the industry, leveraging both proprietary and partner technologies.

• Over half of clients use Gen AI at scale, mainly to handle complex cases and augment human productivity.

• Gen AI adoption has led to increased client stickiness, new revenue streams, and share gains.

• Automation primarily removes low-complexity work, while remaining tasks are more complex and higher margin.

• Gen AI is seen as a net positive, driving growth and deeper client relationships.

Competitive positioning and industry trends

• Differentiated by deep domain expertise, full-solution capabilities, and ability to deliver both technology and services.

• Wins over 80% of RFPs and consolidation deals, often against large IT consultancies.

• Industry is consolidating, with clients seeking global partners with scale, security, and regulatory expertise.

• Scale, technology mix, and domain expertise are key margin drivers.

• Clients increasingly outsource due to rising complexity and regulatory demands.