Concentrix Corporation (NASDAQ: CNXC), a leading global provider of customer experience (CX) solutions and technology, today announced financial results for the fiscal second quarter ended May 31, 2021.
(1) See non-GAAP reconciliations included in the accompanying financial tables for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
(2) For the three months ended May 31, 2020, weighted average number of shares used for diluted EPS is based on the number of shares issued in connection with the spin-off of 51.6 million.
Second Quarter Fiscal 2021 Highlights:
- Revenue was $1,369.9 million, up 28.5% from the prior year second quarter and 24.3% on a constant currency basis, compared with $1,066.4 million in the prior year second quarter.
- Operating income was $128.2 million, or 9.4% of revenue, compared with $23.6 million, or 2.2% of revenue, in the prior year second quarter.
- Non-GAAP operating income was $172.1 million, or 12.6% of revenue, compared with $67.5 million, or 6.3% of revenue, in the prior year second quarter.
- Adjusted EBITDA was $208.3 million, or 15.2% of revenue, compared with $97.7 million, or 9.2% of revenue, in the prior year second quarter.
- Cash flow from operations of $203.2 million in the quarter. Free cash flow for the quarter was $174.4 million and outstanding indebtedness was paid down to $959.2 million.
- Diluted earnings per share (“EPS”) was $1.57 compared to $0.05 in the prior year second quarter.
- Non-GAAP diluted EPS was $2.37 compared to $0.68 in the prior year second quarter.
“We continue to see our value proposition resonating with the market driving our performance to exceed pre-COVID levels,” said Chris Caldwell, Concentrix President and CEO. “Reopening economies accelerated demand for our CX transformation services across existing and new clients. We are very pleased with significant new business wins with iconic and disruptive clients across the globe. Based upon our strong results year-to-date, we are confident in exceeding our stated goals of constant currency revenue growth above 10 percent for fiscal 2021 and margins above pre-COVID levels.”
Business Outlook
The following statements are based on Concentrix’ current expectations for the third quarter of fiscal 2021. Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, divestitures, spin-off related expenses, the amortization of intangibles, depreciation, share-based compensation and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.
Third Quarter Fiscal 2021 Expectations:
- Third-quarter revenue is expected to be in the range of $1.35 billion to $1.40 billion as reported.
- Third-quarter operating income is expected to be in the range of $116.3 million to $130.3 million and non-GAAP operating income is expected to be in the range of $160.0 million to $174.0 million.
- The effective tax rate is expected to approximate 27% to 28%.
Conference Call and Webcast
Concentrix will host a conference call for investors to review its second quarter fiscal 2021 results tomorrow morning, Thursday, June 24, 2021 at 9:00 a.m. (ET)/6:00 a.m. (PT).
The live conference call will be webcast in listen-only mode in the Investor Relations section of the Concentrix website under “Events and Presentations” at https://ir.concentrix.com/events-and-presentations. A replay will also be available on the website following the conference call.
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