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b9ab7ef24db66ecb5aebf557846afca5586d6a5c6a40d26b2aa9365a76917b43

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Dividend Payments (USD, thousands)

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3b60b1eef0d593cc03d16736f0f9b51c9c9778b419124b8517a94aac435d52f8

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EPS - Basic (USD)

EPS - Diluted (USD)

4d886b4cde9ad5dddbc4125c460218a777d5b8d388013286da7519c646a77470

Concentrix Corporation (NASDAQ: CNXC) is a global leader in Customer Experience (CX) solutions and technology. The company specializes in designing, building, and managing end-to-end CX solutions that enhance customer interactions across various industries. Concentrix serves a diverse range of clients, including Fortune Global 500 companies, by offering innovative, technology-driven services that optimize customer lifecycles and business processes.  **[0001803599-24-000067_a2024forms-3asr.htm:3]** **[0001803599-24-000011_cnxc-20231130.htm:6]** **[0001803599-23-000016_cnxc-20221130.htm:3]** 

1. **Technology and Consumer Electronics** - Provides CX solutions tailored to technology and electronics companies, enhancing customer engagement and support.  **[0001803599-24-000156_cnxc-20240831.htm:35]**   
2. **Retail, Travel, and Ecommerce** - Delivers CX services that improve customer experiences for retail, travel, and e-commerce businesses, focusing on seamless interactions across channels.  **[0001803599-24-000156_cnxc-20240831.htm:35]**   
3. **Communications and Media** - Offers CX solutions for communications and media companies, optimizing customer interactions and operational efficiency.  **[0001803599-24-000156_cnxc-20240831.htm:35]**   
4. **Banking, Financial Services, and Insurance (BFSI)** - Supports financial institutions with CX services that enhance customer trust and streamline processes.  **[0001803599-24-000156_cnxc-20240831.htm:35]**   
5. **Healthcare** - Provides CX solutions to healthcare organizations, focusing on improving patient engagement and operational workflows.  **[0001803599-24-000156_cnxc-20240831.htm:35]**   
6. **Other** - Includes CX services for industries such as automotive, energy, and the public sector, addressing unique business challenges.  **[0001803599-24-000156_cnxc-20240831.htm:35]**

b5b636123d03c0a17ce243b0879f3cd619c3cdd253b8e530e8ea840b9ad29adf

| Name          | Position                                              | Start Date       | Short Bio                                                                                                                                                                                                 |
|---------------|-------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Chris Caldwell| President and Chief Executive Officer                 | December 2020    | Chris Caldwell has served as the **President and Chief Executive Officer** of Concentrix since **December 2020**. He was previously Executive Vice President of TD SYNNEX and President of Concentrix from February 2014 to December 2020.  **[0001803599-24-000041_cnxc-20240208.htm:38]** **[0001803599-24-000041_cnxc-20240208.htm:23]** **[0001803599-23-000042_a2023proxystatement.htm:33]** **[0001803599-23-000042_a2023proxystatement.htm:21]**  |
| Andre Valentine| Chief Financial Officer                              | October 2018     | Andre Valentine, **60**, is the Chief Financial Officer of Concentrix Corporation. He has served as Executive Vice President and Chief Financial Officer since **October 2018**. Previously, he was CFO of Convergys Corporation from August 2012 to October 2018.  **[0001803599-24-000041_cnxc-20240208.htm:38]**  |
| Cormac Twomey | Executive Vice President, Customer Success            | September 2023   | Cormac Twomey, **54**, serves as **Executive Vice President, Customer Success** at Concentrix since **September 2023**. He was previously Executive Vice President, Global Operations and Delivery from January 2019 to September 2023.  **[0001803599-24-000041_cnxc-20240208.htm:38]** **[0001803599-23-000042_a2023proxystatement.htm:33]**  |
| Rick Rosso    | Executive Vice President, Practices and Catalyst      | Fiscal Year 2023 | Rick Rosso served as **Executive Vice President, Practices and Catalyst** at Concentrix Corporation during fiscal year 2023. He transitioned to a **non-executive officer role** in January 2024 as part of the company's executive officer succession planning.  **[0001803599-24-000041_cnxc-20240208.htm:39]** **[0001803599-24-000141_cnxc-20240913.htm:26]** **[0001803599-24-000004_cnxc-20240104.htm:1]**  |
| Jane Fogarty  | Executive Vice President, Legal and Corporate Secretary| September 2021   | Jane Fogarty has served as **Executive Vice President, Legal and Corporate Secretary** of Concentrix Corporation since **September 2021**. She was previously General Counsel of Turnitin LLC from April 2020 to September 2021.  **[0001803599-23-000042_a2023proxystatement.htm:33]** **[0001803599-24-000041_cnxc-20240208.htm:39]**  |

c73e33ac946939252fa913eada6ba25b5731e2ef75fb896bac14c274e4828400

1. Regarding the shift to offshore delivery, you've mentioned that moving programs offshore has led to dual costs and some margin compression in the short term  **[CNXC_3402084_12]** **[CNXC_3402084_21]** . Given that these transitions generally take 2-3 quarters to fully realize margin benefits  **[CNXC_3402084_21]** , how confident are you that this strategy will drive meaningful margin improvement, and what steps are you taking to mitigate the near-term margin pressures?

2. With the rapid adoption of generative AI and your own investments in AI technologies like IX Hello  **[CNXC_3402084_18]** **[CNXC_3402084_1]** **[CNXC_3402084_3]** **[CNXC_3402084_20]** , there is a risk of cannibalizing traditional revenue streams, as you've already seen a 12% immediate reduction in revenue from automation in one client example  **[CNXC_3402084_1]** **[CNXC_3402084_16]** . How do you plan to balance the potential revenue cannibalization with the need to drive innovation and maintain growth?

3. In the technology and consumer electronics vertical, you've mentioned that despite gaining share, underlying volumes are muted due to consumers delaying tech refresh cycles.  **[CNXC_3402084_13]**  Given that environment, what strategies are you employing to drive growth in this sector, and how do you anticipate the timing of a potential rebound in volumes?

4. You're experiencing lower volume forecasts from some clients due to lower underlying transaction volumes and automation, leading to a reduction in revenue outlook.  **[CNXC_3402084_6]**  How are you adjusting your sales strategy to counteract these headwinds, and are you seeing any signs of improvement in client demand?

5. Considering that you're accelerating integration costs to bring forward synergies from the Webhelp combination, but this is impacting your free cash flow guidance for the year  **[CNXC_3402084_9]** **[CNXC_3402084_6]** , how do you justify the trade-off between short-term cash flow pressure and the expected benefits, and what gives you confidence that these synergies will materialize as planned?

a3f26909cb47d48a693b367f5e89492baae9ef96a4d55cb621a03f8dec9cf4e5

Here is the **exhaustive guidance information** provided by Concentrix (CNXC) in the last four earnings calls, including the issued period, guided period, and the list of metrics:

---

### **1. Q3 2024 Earnings Call**
- **Issued Period**: Q3 2024  
- **Guided Period**: Q4 2024 and FY 2024  

#### **Q4 2024 Guidance**
- **Revenue**: $2.42 billion to $2.47 billion, reflecting a pro forma constant currency change of -0.5% to +1.5%.  **[CNXC_3402084_5]**   
- **Non-GAAP Operating Income**: $335 million to $355 million.  **[CNXC_3402084_6]**   
- **Non-GAAP EPS**: $2.90 to $3.16 per share.  **[CNXC_3402084_6]**   
- **Interest Expense**: $74 million, excluding $4 million of imputed interest on the seller's note.  **[CNXC_3402084_6]**   
- **Non-GAAP Effective Tax Rate**: 24% to 25%.  **[CNXC_3402084_6]**   
- **Weighted Average Diluted Share Count**: Approximately 64.5 million shares.  **[CNXC_3402084_6]**   

#### **FY 2024 Guidance**
- **Revenue**: $9.591 billion to $9.641 billion, reflecting pro forma constant currency growth of 2.2% to 2.7%.  **[CNXC_3402084_6]**   
- **Non-GAAP Operating Income**: $1.306 billion to $1.326 billion.  **[CNXC_3402084_6]**   
- **Non-GAAP Operating Margin**: Approximately 13.7% at the midpoint.  **[CNXC_3402084_6]**   
- **Non-GAAP EPS**: $11.05 to $11.31 per share.  **[CNXC_3402084_6]**   
- **Interest Expense**: $307 million, excluding $17 million of imputed interest on the seller's note.  **[CNXC_3402084_6]**   
- **Non-GAAP Tax Rate**: 24.4% to 24.7%.  **[CNXC_3402084_6]**   
- **Weighted Average Diluted Share Count**: Approximately 65.1 million shares.  **[CNXC_3402084_6]**   
- **Adjusted Free Cash Flow**: $625 million to $650 million.  **[CNXC_3402084_6]**   
- **Net Leverage**: Expected to reduce to approximately 2.8x adjusted EBITDA by year-end.  **[CNXC_3402084_6]**   
- **Share Repurchases**: Expected to exceed $130 million.  **[CNXC_3402084_5]**   

---

### **2. Q2 2024 Earnings Call**
- **Issued Period**: Q2 2024  
- **Guided Period**: Q3 2024 and FY 2024  

#### **Q3 2024 Guidance**
- **Revenue**: $2.35 billion to $2.4 billion, reflecting 1.5% to 3.5% pro forma constant currency growth, net of a 205 basis point exchange rate headwind.  **[CNXC_3393353_5]**   
- **Non-GAAP Operating Income**: $330 million to $350 million, with a midpoint margin of 14.3%.  **[CNXC_3393353_5]**   
- **Non-GAAP EPS**: $2.76 to $3.04 per share.  **[CNXC_3393353_5]**   
- **Interest Expense**: $75 million to $76 million, excluding $4 million of imputed interest on the seller's note.  **[CNXC_3393353_5]**   
- **Non-GAAP Effective Tax Rate**: 25% to 26%.  **[CNXC_3393353_5]**   
- **Weighted Average Diluted Share Count**: Approximately 65.1 million shares.  **[CNXC_3393353_5]**   

#### **FY 2024 Guidance**
- **Revenue**: $9.58 billion to $9.675 billion, reflecting 2.5% to 3.5% pro forma constant currency growth, net of a 150 basis point exchange rate headwind.  **[CNXC_3393353_5]**   
- **Non-GAAP Operating Income**: $1.35 billion to $1.40 billion, with a midpoint margin of 14.3%.  **[CNXC_3393353_6]**   
- **Non-GAAP EPS**: $11.40 to $12.07 per share.  **[CNXC_3393353_6]**   
- **Interest Expense**: $300 million to $304 million, excluding $16 million of imputed interest on the seller's note.  **[CNXC_3393353_6]**   
- **Effective Tax Rate**: 25% to 25.5%.  **[CNXC_3393353_6]**   
- **Weighted Average Diluted Share Count**: Approximately 65.1 million shares.  **[CNXC_3393353_6]**   
- **Free Cash Flow**: $700 million, net of integration expenses.  **[CNXC_3393353_6]**   

---

### **3. Q1 2024 Earnings Call**
- **Issued Period**: Q1 2024  
- **Guided Period**: Q2 2024 and FY 2024  

#### **Q2 2024 Guidance**
- **Revenue**: $2.325 billion to $2.372 billion, reflecting 1% to 3% pro forma constant currency growth, net of a 160 basis point exchange rate headwind.  **[CNXC_3378989_4]**   
- **Non-GAAP Operating Income**: $320 million to $330 million, with a midpoint margin of 13.8%.  **[CNXC_3378989_4]**   
- **Non-GAAP EPS**: $2.55 to $2.70 per share.  **[CNXC_3378989_4]**   
- **Interest Expense**: $78 million to $80 million, excluding $4 million of imputed interest on the seller's note.  **[CNXC_3378989_4]**   
- **Effective Tax Rate**: 26% to 27%.  **[CNXC_3378989_4]**   
- **Weighted Average Diluted Share Count**: Approximately 65.5 million shares.  **[CNXC_3378989_4]**   
- **Net Income Attribution**: 4% of net income attributable to participating securities and 96% to common shares.  **[CNXC_3378989_4]**   

#### **FY 2024 Guidance**
- **Revenue**: $9.51 billion to $9.70 billion, reflecting 1% to 3% pro forma constant currency growth, net of a 70 basis point exchange rate headwind.  **[CNXC_3378989_4]**   
- **Non-GAAP Operating Income**: $1.39 billion to $1.45 billion, with a midpoint margin of 14.8%.  **[CNXC_3378989_5]**   
- **Non-GAAP EPS**: $11.69 to $12.50 per share.  **[CNXC_3378989_5]**   
- **Interest Expense**: $300 million to $304 million, excluding $60 million of imputed interest on the seller's note.  **[CNXC_3378989_5]**   
- **Effective Tax Rate**: 26% to 27%.  **[CNXC_3378989_5]**   
- **Weighted Average Diluted Share Count**: Approximately 65.3 million shares.  **[CNXC_3378989_5]**   
- **Adjusted Free Cash Flow**: $700 million, inclusive of acquisition and integration costs.  **[CNXC_3378989_5]**   
- **Net Leverage**: Expected to reduce to approximately 2.5x adjusted EBITDA by year-end.  **[CNXC_3378989_5]**   

---

### **4. Q4 2023 Earnings Call**
- **Issued Period**: Q4 2023  
- **Guided Period**: Q1 2024 and FY 2024  

#### **Q1 2024 Guidance**
- **Revenue**: $2.36 billion to $2.406 billion, reflecting 1% to 3% pro forma constant currency growth and a 1.1% exchange rate headwind.  **[CNXC_3370698_6]**   
- **Non-GAAP Operating Income**: $315 million to $325 million.  **[CNXC_3370698_6]**   
- **Non-GAAP Operating Margin**: Approximately 13.4% at the midpoint.  **[CNXC_3370698_6]**   
- **Non-GAAP EPS**: $2.51 to $2.65 per share.  **[CNXC_3370698_6]**   
- **Free Cash Flow**: Approximately breakeven in Q1, with meaningful ramp-up in Q2.  **[CNXC_3370698_6]**   
- **Interest Expense**: Approximately $79 million, excluding $4 million of imputed interest on the seller's note.  **[CNXC_3370698_6]**   
- **Effective Tax Rate**: 26% to 27%.  **[CNXC_3370698_6]**   
- **Weighted Average Diluted Share Count**: Approximately 65.8 million shares.  **[CNXC_3370698_6]**   
- **Net Income Allocation**: 96% of net income attributable to common shares and 4% to participating securities.  **[CNXC_3370698_6]**   

#### **FY 2024 Guidance**
- **Revenue**: $9.51 billion to $9.70 billion, reflecting 1% to 3% pro forma constant currency growth and a 70 basis point exchange rate headwind.  **[CNXC_3370698_6]**   
- **Non-GAAP Operating Income**: $1.39 billion to $1.45 billion.  **[CNXC_3370698_6]**   
- **Non-GAAP Operating Margin**: Approximately 14.8% at the midpoint.  **[CNXC_3370698_6]**   
- **Non-GAAP EPS**: $11.09 to $12.50 per share.  **[CNXC_3370698_7]**   
- **Interest Expense**: Approximately $295 million, excluding $16 million of imputed interest on the seller's note.  **[CNXC_3370698_7]**   
- **Effective Tax Rate**: 26% to 27%.  **[CNXC_3370698_7]**   
- **Weighted Average Diluted Share Count**: Approximately 65.6 million shares.  **[CNXC_3370698_7]**   
- **Free Cash Flow**: Expected to grow by approximately 40% to over $700 million.  **[CNXC_3370698_7]**   
- **Net Leverage**: Expected to reduce to approximately 2.5x adjusted EBITDA by year-end 2024.  **[CNXC_3370698_7]**   

--- 

This summary includes all guidance metrics provided in the last four earnings calls. Let me know if you need further clarification!

70b9bb6c2e37de70b7c81731b4af12833742afc57f6f1d4fb67d7d6e6f1a9391

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Program Details          | Program 1            |
|--------------------------|----------------------|
| Approval Date            | **September 2021**  **[0001803599-24-000156_cnxc-20240831.htm:43]** **[0001803599-24-000156_cnxc-20240831.htm:29]** **[0001803599-24-000156_cnxc-20240831.htm:58]**  |
| End Date/Duration        | **No termination date**  **[0001803599-24-000156_cnxc-20240831.htm:43]** **[0001803599-24-000156_cnxc-20240831.htm:29]** **[0001803599-24-000156_cnxc-20240831.htm:58]**  |
| Total additional amount  | **$500 million**  **[0001803599-24-000156_cnxc-20240831.htm:43]** **[0001803599-24-000156_cnxc-20240831.htm:29]** **[0001803599-24-000156_cnxc-20240831.htm:58]**  |
| Remaining authorization amount | **$188.5 million** as of August 31, 2024  **[0001803599-24-000156_cnxc-20240831.htm:43]** **[0001803599-24-000156_cnxc-20240831.htm:29]** **[0001803599-24-000156_cnxc-20240831.htm:58]**  |
| Details                  | Return capital to stockholders while maintaining financial flexibility for acquisitions and other strategic initiatives. Conducted as market and business conditions warrant, including through open market purchases or Rule 10b5-1 trading plans.  **[0001803599-24-000130_cnxc-20240531.htm:29]** **[0001803599-24-000156_cnxc-20240831.htm:29]** **[0001803599-24-000011_cnxc-20231130.htm:47]** **[0001803599-24-000156_cnxc-20240831.htm:43]**  |

2fdae410ef82be4c8139e0005d3111e431dd63fac974514ba6a0c09c3a5cdf3e

Philippines

United States

India

Canada

Germany

Great Britain

Others

Total Revenue

c9b80ffe521628c479d48fc4a4880da232e279ea2d9c92ea72c6940304eb0065

Technology and Consumer Electronics

Retail, Travel, and Ecommerce

Communications and Media

Banking, Financial Services, and Insurance

Healthcare

Other

e2773820819e6095e6027a144fcade4253e74e6cba4cd268d1b5535825bafefd

- **Concentrix is winning client consolidation opportunities, capturing approximately 80% of them in Q3**, which positions the company for increased market share and future revenue growth.  **[CNXC_3402084_14]** **[CNXC_3402084_7]**
- **The company's shift to offshore delivery is expected to improve margins within 2-3 quarters**, indicating potential profitability enhancement as costs are reduced.  **[CNXC_3402084_21]**
- **Introduction of new technology products like IX Hello is expected to drive higher-margin revenue**, with clients expressing interest in deploying these solutions across their operations, enhancing Concentrix's competitive position.  **[CNXC_3402084_18]**

fadafe4f1fc746df3745490be3dab9ed5226b786b242319b3ec21627c8f1c5e6

- **Third-quarter revenue guidance is down sequentially**, and below Street estimates, despite exceeding second-quarter expectations, suggesting potential revenue headwinds or management conservatism in the near term.  **[CNXC_3393353_9]**
- **Full-year operating margin guidance has been reduced by 50 basis points to 14.3%** due to increased investments in technology and ramp-up costs, which could pressure profitability in the near term.  **[CNXC_3393353_10]**
- The **growth rate of new economy clients, representing about 25% of revenue, is slowing and "not nearly as fast as they were two years ago"**, possibly indicating maturation or saturation in that segment.  **[CNXC_3393353_11]**

2c432997ed02a2c836410e9805af00435559212d2eb12562566b64132fde2b14

- **Revenue declines in the North American market:** The company is experiencing revenue headwinds in North America as clients are moving work offshore and nearshore to reduce costs. This shift could lead to continued revenue declines in one of the company's largest markets.  **[CNXC_3378989_14]**
- **Declining revenue in the telecommunications vertical:** Revenue from telecommunications clients decreased by **4%** year-over-year, primarily due to lower volumes and commoditized work. This continued trend may negatively impact overall revenue growth.  **[CNXC_3378989_7]**
- **Delays in large transformational deals impacting Catalyst growth:** Due to macroeconomic conditions, clients are not signing off on multi-year transformational or replatforming deals, which could slow down growth in the company's Catalyst business that relies on such projects.  **[CNXC_3378989_6]** **[CNXC_3378989_12]**

c79b3ba08e8e347c4659b8cc029c7bf2e400501a268e32f274c47c83091dea76

- The **Catalyst business has returned to double-digit growth**, achieving **over 10% year-over-year pro forma constant currency growth**.  **[CNXC_3378989_6]**  This growth is driven by increased demand for AI integration and technology services, indicating strong market acceptance and future growth potential.  **[CNXC_3378989_6]**
- The company's **investment in AI tools and automation** is yielding significant **productivity gains**, allowing them to avoid hiring thousands of people and improving efficiency and margins.  **[CNXC_3378989_13]**  They have deployed their own proprietary AI tools to hundreds of clients, enhancing productivity and client services.  **[CNXC_3378989_13]** **[CNXC_3378989_6]** **[CNXC_3378989_11]**
- The company has a **strong pipeline with larger transformational and technology-led deals**, including those involving AI integration, indicating robust future growth.  **[CNXC_3378989_9]** **[CNXC_3378989_6]**  They are also seeing synergistic benefits from the **Webhelp integration** sooner than expected, enhancing cross-selling opportunities.  **[CNXC_3378989_9]**

60c45295218fc83d009a599c946b0d840a73499178e975c33459988dd0cb25f8

- **Muted growth expectations due to macroeconomic conditions**, particularly in **retail, e-commerce, and consumer electronics** sectors, leading to anticipated **lower growth** and no seasonal peak in Q4 2024. This could impact revenue growth.  **[CNXC_3370698_8]**
- The **market is highly competitive**, with **clients focusing on reducing costs**, leading to **aggressive pricing pressure**, especially in **commodity work and higher-volume, easier-to-move work**. This could impact the company's **profit margins**.  **[CNXC_3370698_14]**
- **Clients are hesitant to adopt fully automated generative AI solutions**, preferring to use AI for productivity rather than as a **labor substitute**. This may **delay revenue opportunities** from fully automated solutions and **mute growth** in the near term due to ongoing investments in AI.  **[CNXC_3370698_11]** **[CNXC_3370698_8]**

185d55be7be409870269071557c36073cfe3801d87d8a1b07426883e04119e52

- **The acquisition of Webhelp is contributing to stronger growth**, bringing in high-growth areas like **e-commerce and travel clients**, which helps fuel overall growth for Concentrix. **Webhelp is growing faster than the legacy Concentrix business**, and the integration is proceeding smoothly with early synergy wins.  **[CNXC_3370698_9]** ,  **[CNXC_3370698_16]** ,  **[CNXC_3370698_10]**
- The company's investment and deployment of **generative AI solutions** are expected to positively influence **revenues and margins**, particularly in **later 2024 and early 2025**, as clients begin to adopt these technologies. This could drive **productivity gains** and new revenue opportunities.  **[CNXC_3370698_17]** ,  **[CNXC_3370698_8]**
- Concentrix is focusing on **paying down debt** and maintaining **investment-grade principles**, which strengthens their balance sheet and financial health, providing flexibility for future growth initiatives.  **[CNXC_3370698_18]** ,  **[CNXC_3370698_5]**

d15494e93c242ae9c4ac0d74915aa3504cf45490e118cb5a147fcda74e196e61

- **Near-term revenue decline due to increased automation leading to reduced revenue from clients.** For example, the company automated 40% of transactions for a large infrastructure client, resulting in an immediate **12% reduction in revenue** in the near term. This indicates that as the company helps clients automate processes, it may face revenue headwinds before potentially benefiting from more complex work in the future.  **[CNXC_3402084_1]** **[CNXC_3402084_16]**
- **Margin pressure due to upfront investments and dual costs associated with offshoring and transformation initiatives.** The company is incurring higher expenses as it accelerates offshoring programs and invests in technology for longer-term contracts, leading to **margin compression** before realizing benefits. The dual costs of maintaining onshore operations while ramping up offshore can impact margins for **2 to 3 quarters**.  **[CNXC_3402084_12]** **[CNXC_3402084_21]**
- **Challenging pricing environment with high price sensitivity in commoditized services, leading to potential loss of revenue.** The company notes very high price sensitivity in the commoditized work, choosing not to chase low-margin business, which may result in loss of some revenue streams as clients consolidate providers.  **[CNXC_3402084_21]** **[CNXC_3402084_7]**

444d2e8def2f101d0e1a4e4bf942b57ac3517b52e6b92924a947a438974a94f7

1. **Revenue Outlook and Headwinds**  
   **Q:** How will pluses and minuses affect revenue next few quarters?  
   **A:** We are seeing three headwinds impacting our Q4 guidance. First, client volume de-commits and automation led to about a **1% revenue headwind**.  **[CNXC_3402084_7]**  Second, accelerated offshoring contributed over **0.5 basis points** of headwind.  **[CNXC_3402084_7]**  Third, not chasing highly price-sensitive business resulted in less than **0.5 basis points** of headwind.  **[CNXC_3402084_7]** 

2. **Accelerated Merger Synergies**  
   **Q:** Why accelerate merger-related costs and investments now?  
   **A:** We can bring forward **$120 million** in synergies into 2025, hitting the ultimate synergy number a year ahead of schedule.  **[CNXC_3402084_9]**  This allows us to reallocate resources towards transformation activities, including technology investments and upfront investment in transformational program ramps.  **[CNXC_3402084_9]** 

3. **GenAI Investment and ROI**  
   **Q:** What is the thought process behind $100M GenAI investments?  
   **A:** We are at a run rate of **$100 million** annually.  **[CNXC_3402084_19]**  Success means getting ROI on our spend by the end of 2025, with the margin profile accretive to our business.  **[CNXC_3402084_19]**  If we don't see commercial success, we'll pare down the investment.  **[CNXC_3402084_19]** 

4. **Impact on Margins from Investments**  
   **Q:** How will new technology products impact margins?  
   **A:** Our investment is already baked into our **$100 million** run rate.  **[CNXC_3402084_20]**  We are hiring new skill sets without increasing operating expenses.  **[CNXC_3402084_20]**  Fluctuations in SG&A in Q4 are due to transformational programs where we're absorbing upfront costs in exchange for longer-term contracts.  **[CNXC_3402084_20]** 

5. **Offshoring and Margin Benefits**  
   **Q:** How long to see margin benefits from offshoring?  
   **A:** It generally takes about **2 to 3 quarters** to realize margin benefits after fully ramping offshore.  **[CNXC_3402084_21]**  Duplicate costs during transition impact margins initially but improvements are expected in the back part of 2025.  **[CNXC_3402084_21]** 

6. **Automation Plans and Acceleration**  
   **Q:** Is there a new target for annual automation?  
   **A:** No new target, but we are accelerating planned automation due to client demand for in-year savings and new cost structures in 2025.  **[CNXC_3402084_15]**  The scope of what can be automated hasn't dramatically changed, but timing has.  **[CNXC_3402084_15]** 

7. **Consolidation Opportunities**  
   **Q:** Do consolidation opportunities have significant potential?  
   **A:** Yes, we have high probability of consolidating volume from other partners into us when clients seek fewer partners and full solutions.  **[CNXC_3402084_14]**  This is happening faster than expected across most verticals.  **[CNXC_3402084_14]** 

8. **GenAI Adoption and Impact**  
   **Q:** Are clients more receptive to GenAI; impact on business?  
   **A:** Close to **1,000 customers**, nearly half our client base, are using GenAI we've installed.  **[CNXC_3402084_22]**  Non-customer-facing applications are widely adopted; customer-facing still sees reluctance for AI-only interactions.  **[CNXC_3402084_22]**  We've added **25 new** at-scale GenAI implementations this quarter.  **[CNXC_3402084_22]** 

9. **TCE Segment and Volume Pressures**  
   **Q:** Should we be concerned about TCE volume pressures?  
   **A:** The sector has been muted; we're gaining share but underlying volumes, especially in consumer technology and electronics, are very muted.  **[CNXC_3402084_13]**  As the macro improves and refresh cycles begin, transaction volumes should pick up.  **[CNXC_3402084_13]** 

10. **Catalyst Business and Interest Rates**  
    **Q:** How is Catalyst business trending with interest rates down?  
    **A:** Interest rates haven't had the impact we'd hoped.  **[CNXC_3402084_11]**  However, Catalyst is enabling technology deployments like Microsoft Copilot and LLM tools.  **[CNXC_3402084_11]**  We're happy with Catalyst and it supports our transformational deals.  **[CNXC_3402084_11]** 

11. **Significant Expenses Explained**  
    **Q:** What caused the increase in other expenses this quarter?  
    **A:** We had **$33 million** in foreign currency losses due to USD weakening against currencies like the peso, impacting intercompany balances.  **[CNXC_3402084_10]**  We back this out of our non-GAAP net income and EPS metrics.  **[CNXC_3402084_10]** 

12. **IX Hello Tool Pricing**  
    **Q:** How will IX Hello tool pricing affect volumes?  
    **A:** We're comfortable cannibalizing certain business as clients consuming more technology is beneficial.  **[CNXC_3402084_18]**  Clients can buy and deploy IX Hello on their own or with competitors; it's priced per seat with volume discounts.  **[CNXC_3402084_18]** 

b5deb3ef062d8cd9c1106a11d0a85d19516d6908dd98fb06752bb84f25e44c0c

- **Strong momentum in Generative AI initiatives**, with Concentrix seeing good traction in pilots and getting solutions into production with their client base. They are **taking share and winning new clients with AI products**, which is built into their revenue increase guidance. They are investing heavily in technology and platforms, embedding GenAI, which is expected to position them for further growth.  **[CNXC_3393353_7]** **[CNXC_3393353_10]**
- **Integration with Webhelp is ahead of schedule**, with revenue synergies being realized earlier than expected, leading to bullish expectations for meaningful contributions in 2025. They have achieved a synergy run rate of approximately **$80 million on an annualized basis**, exceeding their initial target of **$75 million in net synergies** in the first year, and expect synergies to increase to at least **$105 million** in the second year. Additionally, integration expenses will drop meaningfully in 2025, potentially increasing free cash flow.  **[CNXC_3393353_17]** **[CNXC_3393353_8]**
- **Gaining market share from both smaller and larger competitors** due to their comprehensive portfolio across consulting, design, build, and run aspects, as well as their domain expertise and technology solutions. They are winning business from smaller players who can't deliver scale and from larger competitors by bringing everything together, including technology solutions. Their **Catalyst business continues to grow nicely**, is meaningfully accretive to the overall growth rate, and they are well-positioned in a changing competitive landscape.  **[CNXC_3393353_16]** **[CNXC_3393353_15]** **[CNXC_3393353_11]** **[CNXC_3393353_18]**

030d38358dd21325faf501e104bc1bb2b00cbe9117d289f85428ddb5afd4daea

Concentrix Corp (CNXC)

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