Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Inventory (USD, thousands)

Non-Current Assets (USD, thousands)

Property, Plant, and Equipment (PP&E) (USD, thousands)

Goodwill (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

b9ab7ef24db66ecb5aebf557846afca5586d6a5c6a40d26b2aa9365a76917b43

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

3b60b1eef0d593cc03d16736f0f9b51c9c9778b419124b8517a94aac435d52f8

Total Revenue (USD, thousands)

Cost of Goods Sold (COGS) (USD, thousands)

SG&A (USD, thousands)

R&D (USD, thousands)

Depreciation (USD, thousands)

Amortization (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

EPS - Basic (USD)

EPS - Diluted (USD)

4d886b4cde9ad5dddbc4125c460218a777d5b8d388013286da7519c646a77470

Philippines

United States

India

Canada

Germany

Great Britain

Others

Total Revenue

1d7864fdd7855f3d9592596a8dad7f5433806d111043090324e53eebf473c6f2

Technology and Consumer Electronics

Retail, Travel, and Ecommerce

Communications and Media

Banking, Financial Services, and Insurance

Healthcare

Other

7eb47a87dcef0b35e8d45c85f5c7785f413b3fea349c9843ffd70bb09cd58b4d

The **cash and cash equivalents** were lower in **Q1 2024** because the company experienced significant outflows from operations. Specifically, there was a **cash flow used in operations of $46.9 million** during the quarter, which was influenced by a **one-time large client payment delay** (received later in Q2 2024) and **integration expenses** related to the Webhelp combination. Additionally, an **adjusted free cash flow use of $81.3 million** and a **decline in factored accounts receivable by $22 million** also contributed to the reduction, decreasing the balance from **$295,336 thousand as of Q4 2023** to **$234,794 thousand as of Q1 2024**.  **[0001803599-24-000101_exhibit991q12024.htm:0]** **[CNXC_3378989_3]** 

Why was Cash and cash equivalents so low in Q1 2024?

The drop in Total assets in Q4 2024 was primarily due to a reduction of **$500,389 thousand**, driven by several factors. Key components included a decrease in **Goodwill** by **$91,701 thousand**, a significant decline in **Intangible Assets, Net** by **$518,025 thousand**, a reduction in **Property and Equipment, Net** by **$34,174 thousand**, and a fall in **Cash and Cash Equivalents** by **$54,765 thousand**. These decreases were only partially offset by an increase in **Deferred Tax Assets** by **$146,063 thousand**.  **[0001803599-25-000022_cnxc-20241130.htm:80]** **[0001803599-25-000011_exhibit991q42024.htm:7]** 

What contributed to the drop in Total assets in Q4 2024?

The decrease in Q4 2024 long-term debt was due to several factors. **Principal payments on term loan borrowings** totaling **$450 million** significantly reduced the debt, while **increased net borrowings** of **$242.5 million** under the securitization facility partially offset these payments. Additionally, there was a reduction in the amortization of unamortized **debt discount and issuance costs** from **$56,375 thousand** in 2023 to **$32,053 thousand** in 2024, further contributing to the debt reduction.  **[0001803599-25-000022_cnxc-20241130.htm:71]** **[0001803599-25-000022_cnxc-20241130.htm:112]** 

What factors led to the decrease in Long-term debt in Q4 2024?

The **surge in Deferred tax assets in Q4 2024** was driven by several factors. **Net Operating Losses (NOLs)** saw a significant increase, rising from **$138,930 thousand in 2023** to **$172,182 thousand in 2024**, which played a major role. Additionally, there were increases in **accruals and other reserves** (from **$55,528 thousand to $78,308 thousand**), **depreciation and amortization** (from **$73,234 thousand to $107,095 thousand**), **U.S. interest limitation carry forward** (from **$33,318 thousand to $49,481 thousand**), and **share-based compensation expense** (from **$7,867 thousand to $17,714 thousand**). Although the **valuation allowance** also increased from **$117,679 thousand to $125,163 thousand**, it only partially offset these growth areas, leading to the significant net increase in deferred tax assets.  **[0001803599-25-000022_cnxc-20241130.htm:80]** **[0001803599-25-000022_cnxc-20241130.htm:121]** 

Why did Deferred tax assets surge in Q4 2024?

1193ebac5bbd8d241ac2a5884dc6766c1c0e1a66ac0d80b59ced1b4b11ee5d63

The high revenue in Q1 2024 was primarily driven by the **Webhelp acquisition**, which significantly boosted the company's revenue, leading to a **46.8% increase** compared to Q1 2023. This acquisition, along with strong performance across key verticals—such as **91.1% growth in retail, travel, and e-commerce**, as well as notable gains in banking, financial services, insurance, and communications and media—resulted in Q1 2024 revenue reaching **$2,402,748 thousand** compared to **$1,636,404 thousand** in Q1 2023, even after accounting for a **0.8% negative foreign currency effect**.  **[0001803599-24-000108_cnxc-20240229.htm:33]** **[0001803599-24-000101_exhibit991q12024.htm:0]** **[0001803599-24-000101_exhibit991q12024.htm:8]** 

Why was Revenue so high in Q1 2024?

The **Net Income Attributable to Concentrix Corporation** dropped in Q3 2024 primarily due to a combination of **higher acquisition-related and integration expenses**, a significant **increase in the amortization of intangibles** related to the Webhelp combination, drastic **foreign currency losses** from intercompany translation adjustments, **increased interest expense** due to a higher debt level post-acquisition, and a **one-time tax expense** stemming from legal entity restructuring.  **[0001803599-24-000156_cnxc-20240831.htm:41]** **[CNXC_3402084_10]** 

What caused the Net Income Attributable to drop in Q3 2024?

Basic EPS in Q3 2024 was significantly lower because the company experienced a drastic decline in net income—from **$77.6 million** in Q3 2023 to **$16.6 million** in Q3 2024—driven by several factors. These included high acquisition-related and integration expenses (with **$36 million** in related expenses), substantial foreign currency losses of **$33 million**, and an increase in amortization of intangibles to **$117 million**. Additionally, a **$5 million one-time tax expense** and an increase in the weighted-average number of shares from **51.1 million** to **64.7 million** further diluted earnings, resulting in a Basic EPS drop from **$1.50** to **$0.25**.  **[0001803599-24-000150_exhibit991q32024.htm:0]** **[0001803599-24-000156_cnxc-20240831.htm:27]** **[0001803599-24-000156_cnxc-20240831.htm:42]** 

Why was Basic EPS so low in Q3 2024?

The Provision for Income Taxes turned negative in Q4 2024 primarily due to a **shift in the geographical mix of income**, **higher utilization of net operating loss carryforwards**, and **legal entity restructuring activities** that provided a **$12.3 million net tax benefit**, which collectively resulted in a tax benefit of **$(2,744) thousand** instead of a tax expense.  **[0001803599-25-000011_exhibit991q42024.htm:8]** **[0001803599-25-000022_cnxc-20241130.htm:60]** 

Why did Provision for Income Taxes turn negative in Q4 2024?

The **decrease in Operating Income** in Q4 2024 was primarily driven by several key factors. **First**, there was a **48.8% increase in Selling, General, and Administrative Expenses** compared to Q4 2023, largely due to incremental expenses from acquired operations, increased support for revenue growth, and higher amortization and integration expenses. **Second**, the company experienced increased **technology spending and upfront investments in transformational wins**, which included duplicate costs related to accelerated shore shift in the quarter. **Lastly**, higher expenses were also attributable to an increase in the **amortization of intangibles and share-based compensation**. These factors collectively contributed to the decline in Operating Income for Q4 2024.  **[0001803599-25-000011_exhibit991q42024.htm:0]** **[CNXC_3412555_3]** **[0001803599-25-000011_exhibit991q42024.htm:9]** **[0001803599-25-000022_cnxc-20241130.htm:59]** 

What drove the decrease in Operating Income in Q4 2024?

6778db2fbc893c63b3ed9239618be074cab84d6009c13784458d8e91300b08e0

Revenue (USD, thousands)

Cost of Revenue (USD, thousands)

Gross Profit (USD, thousands)

Selling, General and Administrative Expenses (USD, thousands)

Operating Income (USD, thousands)

Interest Expense and Finance Charges, Net (USD, thousands)

Other Expense (Income), Net (USD, thousands)

Income Before Income Taxes (USD, thousands)

Provision for Income Taxes (USD, thousands)

Net Income Attributable to Concentrix Corporation (USD, thousands)

Basic Earnings per Common Share (USD)

Diluted Earnings per Common Share (USD)

Weighted-Average Common Shares Outstanding, Basic (thousands)

Weighted-Average Common Shares Outstanding, Diluted (thousands)

a3b7f699b21ec0d11e07be03c433b3d8921040ed578d66432d9ffe65a5039082

Net income (USD, thousands)

Non-cash Share-Based Compensation (USD, thousands)

Provision for Doubtful Accounts (USD, thousands)

Deferred Income Taxes (USD, thousands)

Amortization of Debt Discount and Issuance Costs (USD, thousands)

Pension and Other Post-Retirement Benefit Costs (USD, thousands)

Pension and Other Post-Retirement Plan Contributions (USD, thousands)

Change in Acquisition Contingent Consideration (USD, thousands)

Other Adjustments to Net Income (USD, thousands)

Net Cash Provided by Operating Activities (USD, thousands)

Purchases of Property and Equipment (USD, thousands)

Acquisitions of Business, Net of Cash Acquired (USD, thousands)

Net Cash Used in Investing Activities (USD, thousands)

Repayments of the Restated/Amended Credit Facility - Term Loan (USD, thousands)

Proceeds from the Securitization Facility (USD, thousands)

Repayments of the Securitization Facility (USD, thousands)

Other Debt Proceeds (USD, thousands)

Other Debt Repayments (USD, thousands)

Cash Paid for Debt Issuance Costs (USD, thousands)

Cash Paid for Acquired Earnout Liabilities (USD, thousands)

Proceeds from Exercise of Stock Options (USD, thousands)

Repurchase of Common Stock for Tax Withholdings on Equity Awards (USD, thousands)

Repurchase of Common Stock (USD, thousands)

Dividends Paid (USD, thousands)

Change in Funds Held for Clients (USD, thousands)

Net Cash Provided by (Used in) Financing Activities (USD, thousands)

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash (USD, thousands)

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash (USD, thousands)

Accounts Receivable, Net (USD, thousands)

Other Operating Assets and Liabilities (USD, thousands)

Cash, Cash Equivalents and Restricted Cash at Beginning of Year (USD, thousands)

Cash, Cash Equivalents and Restricted Cash at End of Year/Period (USD, thousands)

Concentrix Corp (CNXC)

Financials