Concentrix Corporation reported significant financial results for the three and nine months ended August 31, 2024, reflecting a robust increase in revenue but a decline in profitability compared to the same periods in 2023. Revenue for the third quarter reached $2,387.4 million, a 46.2% increase from $1,632.8 million in the prior year. For the nine months, revenue totaled $7,170.9 million, up 46.8% from $4,883.9 million. This growth was driven by strong performance across various industry verticals, particularly in technology and consumer electronics, retail, travel, and e-commerce.
Despite the revenue growth, net income for the third quarter fell to $16.6 million from $77.6 million in the same period last year, marking a significant decline. For the nine months, net income decreased to $135.6 million from $244.4 million. The decline in profitability was attributed to increased operating expenses, particularly related to the acquisition of Webhelp, which Concentrix completed on September 25, 2023, for approximately $3,774.8 million. The integration of Webhelp's operations has led to higher selling, general, and administrative expenses, which rose by 64.8% in the third quarter.
Operating income also saw a decrease, with $153.2 million reported for the third quarter, down from $162.3 million in 2023, and $451.9 million for the nine months, down from $480.9 million. The gross profit for the third quarter was $864.2 million, up from $593.7 million, while the gross margin percentage slightly decreased to 36.2% from 36.4%.
Concentrix's total assets as of August 31, 2024, were $12.2 billion, down from $12.5 billion at the end of November 2023. Total liabilities decreased to $8.0 billion from $8.3 billion, while total stockholders' equity increased to $4.2 billion from $4.1 billion. Cash and cash equivalents also declined to $246.2 million from $295.3 million.
The company reported a net cash provided by operating activities of $383.1 million for the nine months, down from $448.7 million in the previous year. Free cash flow also decreased to $204.2 million from $333.0 million. Concentrix continues to manage its capital structure actively, with share repurchases totaling approximately $101.6 million for the nine months ended August 31, 2024.
Overall, while Concentrix experienced substantial revenue growth, the integration of Webhelp and increased operational costs have impacted profitability, leading to a focus on managing expenses and optimizing operations moving forward.
About Concentrix Corp
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