Concentrix Corporation (NASDAQ: CNXC) has reported its financial results for the fiscal third quarter ended August 31, 2024. The company posted a revenue of $2,387.4 million, representing a robust increase of 46.2% year-on-year compared to the revenue of $1,632.8 million in the prior year third quarter.
Despite the significant revenue growth, the operating income for the quarter was $153.2 million, indicating a decline of 5.6% compared to $162.3 million in the prior year third quarter. However, the non-GAAP operating income saw a substantial rise of 43.3% year-on-year, reaching $331.0 million.
The company's net income for the third quarter was reported at $16.6 million, a considerable decrease of 78.6% from $77.6 million in the prior year third quarter. Conversely, the non-GAAP net income surged by 33.8% to $192.2 million.
Adjusted EBITDA, a key financial metric, showed an impressive growth of 44.1%, reaching $388.1 million, compared to $269.3 million in the prior year third quarter.
On a per share basis, the diluted earnings per common share were $0.25, a sharp decline of 83.2% from $1.49 in the prior year third quarter. However, the non-GAAP diluted earnings per common share increased by 4.0% to $2.87 from $2.76 in the prior year third quarter.
Concentrix also returned $60 million to shareholders in the quarter through share repurchases and dividends and raised its quarterly dividend by 10%.
The company introduced its first commercial product, "ix hello™," which is a generative AI-powered solution aimed at boosting productivity and engagement within an on-brand, secure environment.
Looking ahead, the company provided its business outlook for the fourth quarter of fiscal 2024 and the full year fiscal 2024. It expects reported revenue for the fourth quarter to range from $2.420 billion to $2.470 billion and full-year reported revenue to range from $9.591 billion to $9.641 billion. The company anticipates adjusted free cash flow of $625 million to $650 million for fiscal 2024 and plans to repurchase approximately $30 million of its common stock over the final quarter of the year for total share repurchases of more than $130 million for fiscal 2024.
Concentrix's President and CEO, Chris Caldwell, expressed satisfaction with the company's solid revenue growth and operating results for the third quarter and emphasized the significance of leveraging technology investments to bring the ix hello product to market.
The market has reacted to these announcements by moving the company's shares -0.3% to a price of $63.62. Check out the company's full 8-K submission here.
