Concentrix Corporation (NASDAQ: CNXC) has reported its financial results for the fiscal second quarter ended May 31, 2024, and the figures paint a strong picture of growth and performance. The company's revenue for the quarter stood at $2,380.7 million, marking a substantial increase of 47.4% compared to the prior year's second quarter revenue of $1,614.7 million. On a pro forma constant currency basis, the company achieved a 4.0% year-on-year revenue growth.
The operating income for the quarter was $150.2 million, representing 6.3% of revenue, as opposed to $162.6 million, or 10.1% of revenue, in the prior year second quarter, indicating a reduction primarily due to increased amortization of intangibles and planned integration expenses associated with the company's combination with Webhelp. However, the non-GAAP operating income for the quarter was $321.1 million, or 13.5% of revenue, compared to $220.6 million, or 13.7% of revenue in the prior year second quarter, showing a significant increase of 45.6%.
The company's adjusted EBITDA for the quarter was $379.6 million, or 15.9% of revenue, compared with $258.8 million, or 16.0% of revenue in the prior year second quarter, indicating a healthy growth of 46.7%. Additionally, the company generated over $200 million of adjusted free cash flow in the quarter and confirmed its adjusted free cash flow outlook for the year.
In terms of net income, the company reported $66.8 million for the quarter, a decrease of 15.3% compared to the prior year second quarter. However, the non-GAAP net income for the quarter was $183.1 million, reflecting a robust increase of 33.1% compared to $137.6 million in the prior year second quarter.
Diluted earnings per common share for the quarter were $0.98, representing a decrease of 35.1% compared to $1.51 in the prior year second quarter. However, the non-GAAP diluted earnings per common share were reported at $2.69, marking a 2.3% increase compared to $2.63 in the prior year second quarter.
Concentrix also returned $60 million to shareholders in the second quarter through share repurchases and dividends. Looking ahead, the company has raised its full year 2024 revenue guidance, reflecting solid demand for its differentiated technology and service offerings.
The company's business outlook for the third quarter of fiscal 2024 includes reported revenue expectations of $2.350 billion to $2.400 billion, and for the full year fiscal 2024, reported revenue expectations range from $9.580 billion to $9.675 billion. These figures imply pro forma constant currency revenue growth of 1.5% to 3.5% for the third quarter and 2.5% to 3.5% for the full year.
The market has reacted to these announcements by moving the company's shares -1.4% to a price of $58.02. For more information, read the company's full 8-K submission here.
