Concentrix Corporation, a global technology and services provider, reported its fourth quarter and fiscal year 2024 financial results, showing growth yet a decline in profitability margins. For the fourth quarter, revenue reached approximately $2.45 billion, a 9.7% increase from $2.23 billion in the previous year. On a pro forma constant currency basis, this revenue grew by 1.5%, finishing at the high end of the company’s guidance range.

Operating income for Q4 stood at $144.5 million, translating to 5.9% of revenue, down from an operating income of $180.4 million and an 8.1% margin in the year-ago quarter. Non-GAAP operating income was reported at $346.7 million, compared to $340.8 million a year prior, yielding a margin of 14.2%, which shows a decrease of 110 basis points year-over-year.

For the full fiscal year 2024, Concentrix generated revenue of $9.62 billion, a substantial rise of 35.2% from $7.11 billion in fiscal year 2023. The company’s full-year non-GAAP operating income reached $1.32 billion, reflecting a 30.5% increase compared to the prior year. The non-GAAP operating margin for the year was 13.7%, slightly down from 14.2% in fiscal 2023.

In terms of profitability, net income in Q4 was reported at $115.7 million, which is a 66.5% increase from $69.5 million in Q4 2023. However, for the entire year, net income fell by 19.9% to $251.2 million from $313.8 million in the prior fiscal year. Non-GAAP net income for Q4 was $219.3 million, up 2.7%, while for the year it was $772.3 million, a 22.5% increase year-over-year.

The adjusted EBITDA for Q4 stood at $402.9 million with a margin of 16.5%, compared to $397.9 million and a margin of 17.8% in the previous year. For the full year, adjusted EBITDA was reported at $1.55 billion, slightly down from 16.6% margin in fiscal 2023 to 16.2% in fiscal 2024.

Looking ahead, the company provided guidance for fiscal 2025, projecting total revenue in the range of $9.47 billion to $9.61 billion, indicating constant currency revenue growth of 0% to 1.5%. Non-GAAP operating income is expected to be between $1.3 billion and $1.34 billion, with non-GAAP EPS forecasted between $11.18 and $11.77.

Additionally, the company expects adjusted free cash flow to increase significantly in 2025, with estimates between $625 million and $650 million. Concentrix also highlighted substantial share repurchases and an increased dividend, reflecting the company’s commitment to returning capital to shareholders, having returned approximately $220 million in fiscal 2024. Total debt was reduced by about $209 million during the year, ending at approximately $4.74 billion, while liquidity remained robust at around $1.5 billion.