Concentrix (CNXC) Q4 2024 earnings summary

Executive summary

• Integrated Webhelp ahead of plan, aligning teams globally and completing integration by year-end 2024.

• Achieved strong revenue growth, outperforming most peers, with FY24 revenue of $9.62B, up 35.2% year-over-year, at the high end of guidance.

• Expanded GenAI, data analytics, cybersecurity, and software offerings, with nearly $1B in 2024 revenue from new solutions and launched the GenAI iX suite, securing over a dozen client wins.

• Maintained high client retention (~99%) and deepened relationships with top clients, average tenure over 16 years.

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

Financial highlights

• Q4 revenue was $2.45B, up 1.5% year-over-year on a pro forma constant currency basis; FY24 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 non-GAAP net income was $219M; non-GAAP diluted EPS was $3.26; GAAP net income was $116M.

• FY24 adjusted free cash flow was $474.5M; cash flow from operations was $667.5M.

• Returned $220M to shareholders in FY24; reduced net debt to $4.495B.

Outlook and guidance

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

• FY25 non-GAAP operating income expected at $1.3B–$1.34B; non-GAAP EPS at $11.18–$11.77.

• FY25 adjusted free cash flow expected at $625M–$650M.

• Q1 FY25 revenue guidance: $2.355B–$2.37B; non-GAAP operating income: $305M–$315M; non-GAAP EPS: $2.49–$2.64.

• Board increased share repurchase authorization to $600M, with 2025 repurchases to modestly exceed 2024.