Concentrix Corporation

Ladies and gentlemen, thank you for standing by and welcome to Concentrix Fiscal First Quarter 2021 Financial Results Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you will need to press star then one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star then zero. I would now like to hand the conference over to your speaker for today, David Stein, Vice President of Investor Relations. Sir, you may begin.

Thank you, Tawanda, and good morning. Welcome to the Concentrix first quarter fiscal 2021 earnings call. This call contains forward-looking statements that address our expected future performance and that by their nature address matters that are uncertain. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements as a result of new information or future events or developments. Please refer to yesterday's earnings release and our most recent filings with the SEC for additional information regarding uncertainties that could affect our future financial results. This includes the risk factors provided in our annual report on Form 10-K. Also during the call, we will discuss non-GAAP financial measures, including free cash flow, non-GAAP operating income, adjusted EBITDA, and adjusted EPS, as well as constant currency revenue growth. A reconciliation of these non-GAAP measures is available in the news release and on the Concentrix Investor Relations website under Financials. With me on the call today are Chris Caldwell, our President and Chief Executive Officer, and Andre Valentine, our Chief Financial Officer. Chris will provide a summary of our operating performance and growth strategy, and Andre will cover our financial results and business outlook. Then we'll open the call for your questions. Now I'll turn the call over to Chris.

Thank you very much, David. Good morning, everyone, and welcome to our first quarter earnings call for fiscal 2021. Our results exceeded our expectations and clearly were well above the guidance that we provided at the start of the quarter. While Andre will provide more color, let me just say we are very pleased with the strong execution that drove this performance. I am most pleased that our performance continues to be fueled by existing customers rewarding us with more share of their business and wins from clients that are looking for long-term relationships that we have been quickly able to turn into revenue. While we are seeing a robust market overall, the significant upward trend demonstrates that we are successfully executing on our plan for above-market growth and margin expansion. Our first quarter revenue of $1.35 billion represents an increase of 14% compared with last year. On a constant currency basis, revenue increased by 12%, which more than offset a 1.5% total company revenue headwind from our travel clients, as well as our continued portfolio rebalancing to reduce our telecom exposure. Our first quarter non-GAAP operating income of $177 million was up 22%, an adjusted EBITDA increase 21% to $213 million compared with last year. These results also included an additional net expense of $10 million of COVID-related costs in the quarter. We saw revenue overperformance across a broad range of our portfolio, including technology and consumer electronics, retail, e-commerce, and healthcare. As mentioned, this growth more than offset the impact of COVID-related muted volumes in the travel industry and and our nearly complete portfolio rebalancing efforts for a healthier, more balanced business. During the first quarter, we signed nearly two dozen new clients, including more than a half dozen new disruptive brands. As a reminder, our disruptive clientele represents over $800 million of annualized revenue and has been growing above 25% in recent quarters. We continue to be encouraged by the strength of our pipeline across verticals, geographies, and solutions. Recent examples of our wins include signing a long-term contract for complex licensing work and analytic support with a large insurance company that historically has never outsourced, helping a global tech company increase its cloud-based sales, serving disruptors at the forefront of the fintech industry to launch new products and manage fraud, and providing patient health plan administration and device monitoring support for a large healthcare provider. We have also deployed tens of thousands of live instances of our secure CX platform to authenticate and secure a remote workforce. This quarter, we also launched VOC Essentials, our entry-level voice of the customer satisfaction platform that allows our clients to have actionable insights from customer interactions, regardless of how or where they engage our clients. This complements our existing enterprise voice of the customer platform. From a market standpoint, our wins continue to expand our geographically diverse client base. We continue to see strong demand for our technology solutions individually and as an integrated solution with our CX services. And through the quarter, we made investments in additional experience sales, solutions, and technical staff to enhance our technology and digital offerings. Based on our strong performance to date and looking forward with the increased demand across the geographies and verticals we service, We now expect to achieve constant currency revenue growth of above 10% for fiscal 2021 with margins above pre-COVID levels. In summary, we are deepening our client relationships, relentlessly innovating with new digital solutions and expanding into emerging markets while we selectively pursue strategic acquisitions to drive superior returns for our shareholders. As always, we remain committed to working towards a greater good in all that we do, doing right by and for our people, our clients, their customers, and our communities. This includes fostering an inclusive culture where our staff is supported and empowered to care for others, our planet, in the ways most meaningful for them. Finally, I would like to thank our exceptional staff for their commitment to execution, our clients for their trust, and our talented board of directors for their support and mentorship. I will now turn over the call for Andre.