NEWARK, Calif., Jan. 19, 2023 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a leading global provider of customer experience (CX) solutions and technology, today announced financial results for the fiscal fourth quarter and fiscal year ended November 30, 2022.

	Three Months Ended											Fiscal Year Ended
	November 30, 2022				November 30, 2021				Change			November 30, 2022				November 30, 2021				Change
Revenue ($M)	$	1,640.7			$	1,466.6			11.9	%		$	6,324.5			$	5,587.0			13.2	%
Operating income ($M)	$	178.0			$	157.9			12.7	%		$	640.2			$	572.4			11.8	%
Non-GAAP operating income ($M) (1)	$	248.0			$	203.4			21.9	%		$	884.1			$	733.7			20.5	%
Operating margin		10.8	%			10.8	%		0 bps				10.1	%			10.2	%		-10 bps
Non-GAAP operating margin (1)		15.1	%			13.9	%		120 bps				14.0	%			13.1	%		90 bps
Net income ($M)	$	104.9			$	124.1			(15.5	)%		$	435.0			$	405.6			7.2	%
Non-GAAP net income ($M) (1)	$	157.2			$	158.0			(0.5	)%		$	617.0			$	534.6			15.4	%
Adjusted EBITDA ($M) (1)	$	284.8			$	238.2			19.6	%		$	1,031.0			$	874.0			18.0	%
Adjusted EBITDA margin (1)		17.4	%			16.2	%		120 bps				16.3	%			15.6	%		70 bps
Diluted earnings per common share	$	2.01			$	2.35			(14.5	)%		$	8.28			$	7.70			7.5	%
Non-GAAP diluted earnings per common share (1)	$	3.01			$	2.99			0.7	%		$	11.75			$	10.15			15.8	%

⁽¹⁾ See non-GAAP reconciliations included in the accompanying financial tables for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.

Fourth Quarter Fiscal 2022 Highlights:

• Revenue was $1,640.7 million, up 11.9% from the prior year fourth quarter, including a 5.1 point negative impact of foreign exchange rates compared with the prior year period, compared with $1,466.6 million in the prior year fourth quarter, and up 5.8% on an adjusted constant currency basis.
• Operating income was $178.0 million, or 10.8% of revenue, compared with $157.9 million, or 10.8% of revenue in the prior year fourth quarter.
• Non-GAAP operating income was $248.0 million, or 15.1% of revenue, compared with $203.4 million, or 13.9% of revenue, in the prior year fourth quarter.
• Adjusted EBITDA was $284.8 million, or 17.4% of revenue, compared with $238.2 million, or 16.2% of revenue, in the prior year fourth quarter.
• Cash flow from operations was $235.7 million in the quarter. Free cash flow for the quarter was $192.9 million.
• Diluted earnings per common share (“EPS”) was $2.01 compared to $2.35 in the prior year fourth quarter.
• Non-GAAP diluted EPS was $3.01 compared to $2.99 in the prior year fourth quarter.

“We had a successful 2022, making significant strides in expanding our digital IT services and CX operations capabilities and delivering strong revenue growth, profit improvement, and cash flow generation,” said Chris Caldwell, Concentrix President and CEO. “Our comprehensive and resilient business model uniquely places us to design, build, and run seamless, end-to-end customer engagement solutions for many of the world’s leading brands. In the fourth quarter, we experienced some softness due to the challenging macroeconomic environment, particularly with clients in the consumer electronics, e-commerce, and retail industries, where the volumes our clients expected didn’t materialize. Despite this near-term volatility, robust demand in other verticals, countries, and service lines, and medium-to-long-term opportunities for share gains and additional new logos give us confidence in our ability to drive revenue growth, margin expansion, and strong free cash flow in 2023.”

Fiscal Year 2022 Highlights:

• Revenue was $6,324.5 million, up 13.2% from the prior fiscal year, including a 3.5-point negative impact of foreign exchange rates compared with the prior year period, compared with $5,587.0 million in the prior fiscal year, and up 8.2% on an adjusted constant currency basis.
• Operating income was $640.2 million, or 10.1% of revenue, compared with $572.4 million, or 10.2% of revenue, in the prior fiscal year.
• Non-GAAP operating income was $884.1 million, or 14.0% of revenue, compared with $733.7 million, or 13.1% of revenue, in the prior fiscal year.
• Adjusted EBITDA was $1,031.0 million, or 16.3% of revenue, compared with $874.0 million, or 15.6% of revenue, in the prior fiscal year.
• Cash flow from operations was $600.7 million in the fiscal year. Free cash flow for the fiscal year was $460.7 million.
• Diluted earnings per common share (“EPS”) was $8.28 compared to $7.70 in the prior fiscal year.
• Non-GAAP diluted EPS was $11.75 compared to $10.15 in the prior fiscal year.

Quarterly Dividend and Share Repurchase Program:

• Concentrix paid a $0.275 per share quarterly dividend on November 8, 2022. The Company’s Board of Directors has declared a quarterly dividend of $0.275 per share payable on February 10, 2023, to shareholders of record at the close of business on January 30, 2023.
• Concentrix repurchased 0.1 million shares in the fourth quarter at a cost of $12.7 million under its previously announced share repurchase program at an average cost of $120.00 per share. At November 30, 2022, the Company’s remaining share repurchase authorization was $354.1 million.

First Quarter and Full Year Fiscal 2023 Outlook:
The following statements are based on Concentrix’ current expectations for the first quarter and full year fiscal 2023. Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, amortization of intangible assets, depreciation, share-based compensation and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.

First Quarter Fiscal 2023 Expectations:

• First quarter adjusted constant currency revenue growth is expected to be in the range of 2% to 4%. Based on current exchange rates, our expectations assume a 2.4-point negative impact of foreign exchange rates compared with the prior year. Additionally, our expectations exclude an expected revenue contribution of approximately $80 million in the first quarter from acquired operations not included in the full prior year results. Based on the above assumptions, we expect first quarter reported revenue in the range of $1.610 billion to $1.640 billion.
• Operating income is expected to be in the range of $146 million to $156 million and non-GAAP operating income is expected to be in the range of $210 million to $220 million.
• The effective tax rate is expected to approximate 26%.

Full Year 2023 Expectations:

• Full year adjusted constant currency revenue growth is expected to be in the range of 4% to 6%. Based on current exchange rates, our expectations assume a de minimis impact of foreign exchange rates compared with the prior year. Additionally, our expectations exclude an expected revenue contribution of approximately $160 million for the full year from acquired operations not included in the full prior year results. Based on the above assumptions, we expect full year reported revenue in the range of $6.715 billion to $6.865 billion.
• Operating income is expected to be in the range of $713 million to $753 million and non-GAAP operating income is expected to be in the range of $950 million to $990 million.
• The effective tax rate is expected to approximate 26%.

Conference Call and Webcast
Concentrix will host a conference call for investors to review its fourth quarter and full year fiscal 2022 financial results today at 5:00 p.m. (ET)/2:00 p.m. (PT).

The live conference call webcast will be available in listen-only mode in the Investor Relations section of the Concentrix website under “Events and Presentations” at https://ir.concentrix.com/events-and-presentations. A replay will also be available on the website following the conference call.

About Concentrix
We’re Concentrix (Nasdaq: CNXC), a leading global provider of customer experience (CX) solutions and technology. We Reimagine everything CX to improve business performance for some of the world’s best brands, and the ones that are changing the world as we know it. Every day, we Design, Build and Run CX for over 130 Fortune Global 500 and 125 new economy clients. Whether it’s a specific solution or the whole end-to-end journey, we’ve got it covered. We’re the strategic thinkers who design brand-defining experiences. The tech geeks who build smarter solutions. And the operational experts who run it all and make it work seamlessly. Across 40 countries and 6 continents, we provide services across key industry verticals: technology & consumer electronics; retail, travel & ecommerce; banking, financial services & insurance; healthcare; communications & media; automotive; and energy & public sector. Location: Virtually Everywhere. Visit www.concentrix.com to learn more.

Use of Non-GAAP Information
In addition to disclosing financial results that are determined in accordance with GAAP, we also disclose certain non-GAAP financial information, including:

• Constant currency revenue growth, which is revenue growth adjusted for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Constant currency revenue growth is calculated by translating the revenue of each fiscal year in the billing currency to U.S. dollars using the comparable prior year’s currency conversion rate in comparison to prior year’s revenue. Generally, when the U.S. dollar either strengthens or weakens against other currencies, revenue growth at constant currency rates or adjusting for currency will be higher or lower than revenue growth reported at actual exchange rates.
• Adjusted constant currency revenue growth, which is constant currency revenue growth excluding revenue from acquired operations in the current period for the twelve months following an acquisition and excluding revenue from divested operations in the comparative period for the twelve months preceding a divestiture. Adjusted constant currency revenue growth presents organic constant currency revenue growth for the business, without the impact of acquisitions or divestitures, thereby facilitating period-to-period comparisons of our business performance.
• Non-GAAP operating income, which is operating income, adjusted to exclude acquisition-related and integration expenses, including related restructuring costs, amortization of intangible assets, share-based compensation and gain on divestitures and related transactions costs.
• Non-GAAP operating margin, which is non-GAAP operating income, as defined above, divided by revenue.
• Adjusted earnings before interest, taxes, depreciation, and amortization, or adjusted EBITDA, which is non-GAAP operating income, as defined above, plus depreciation.
• Adjusted EBITDA margin, which is adjusted EBITDA, as defined above, divided by revenue.
• Non-GAAP net income, which is net income excluding the tax effected impact of acquisition-related and integration expenses, including related restructuring costs, amortization of intangible assets, share-based compensation and gain on divestitures and related transaction costs.
• Free cash flow, which is cash flows from operating activities less capital expenditures. We believe that free cash flow is a meaningful measure of cash flows since capital expenditures are a necessary component of ongoing operations. However, free cash flow has limitations because it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions.
• Non-GAAP diluted earnings per common share (“EPS”), which is diluted EPS excluding the per share, tax effected impact of acquisition-related and integration expenses, including related restructuring costs, amortization of intangible assets, share-based compensation and gain on divestitures and related transaction costs.

We believe that providing this additional information is useful to the reader to better assess and understand our base operating performance, especially when comparing results with previous periods and for planning and forecasting in future periods, primarily because management typically monitors the business adjusted for these items in addition to GAAP results. Management also uses these non-GAAP measures to establish operational goals and, in some cases, for measuring performance for compensation purposes. These non-GAAP financial measures exclude amortization of intangible assets. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to the services performed for our clients. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of our acquisition activity. Accordingly, we believe excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of our business nor reflect our underlying business performance, enhances our and our investors’ ability to compare our past financial performance with its current performance and to analyze underlying business performance and trends. These non-GAAP financial measures also exclude share-based compensation expense. Given the subjective assumptions and the variety of award types that companies can use when calculating share-based compensation expense, management believes this additional information allows investors to make additional comparisons between our operating results and those of our peers. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be used as a complement to, and in conjunction with, data presented in accordance with GAAP.

Safe Harbor Statement
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include, but are not limited to, statements regarding the Company’s expected future financial condition and growth, results of operations, including revenue and operating income, free cash flow, effective tax rate, margin expansion, demand for the Company’s services, capital allocation, business strategy, foreign currency exchange rate fluctuations, medium-to-long term opportunities for share gains and statements that include words such as believe, expect, may, will, provide, could and should and other similar expressions. These forward-looking statements are inherently uncertain and involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things: risks related to general economic conditions, including consumer demand, interest rates, inflation, supply chains and the effects of the COVID-19 pandemic and the conflict in Ukraine; cyberattacks on the Company’s or its clients’ networks and information technology systems; the failure of the Company’s staff and contractors to adhere to the Company’s and its clients’ controls and processes; the inability to protect personal and proprietary information; the inability to execute on the Company’s digital CX strategy; the loss of key personnel or the inability to attract and retain staff with the skills and expertise needed for our business; increases in the cost of labor; the effects of the COVID-19 pandemic and other communicable diseases, natural disasters, adverse weather conditions or public health crises; geopolitical, economic and climate- or weather-related risks in regions with a significant concentration of the Company’s operations; the inability to successfully identify, complete and integrate strategic acquisitions or investments, including the integration of ServiceSource International, Inc.; competitive conditions in the Company’s industry and consolidation of its competitors; higher than expected tax liabilities; the demand for CX solutions and technology; variability in demand by the Company’s clients or the early termination of the Company’s client contracts; the level of business activity of the Company’s clients and the market acceptance and performance of their products and services; currency exchange rate fluctuations; the operability of the Company’s communication services and information technology systems and networks; changes in law, regulations or regulatory guidance; damage to the Company’s reputation through the actions or inactions of third parties; investigative or legal actions; and other factors contained in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2021 filed with the Securities and Exchange Commission and subsequent SEC filings. The Company does not undertake a duty to update forward-looking statements, which speak only as of the date on which they are made.

Copyright 2023 Concentrix Corporation. All rights reserved. Concentrix, the Concentrix logo, and all other Concentrix company, product and services names and slogans are trademarks or registered trademarks of Concentrix Corporation and its subsidiaries. Concentrix and the Concentrix logo Reg. U.S. Pat. & Tm. Off. and applicable non-U.S. jurisdictions. Other names and marks are the property of their respective owners.

CONCENTRIX CORPORATION
CONSOLIDATED BALANCE SHEETS
(currency and share amounts in thousands, except par value)

	November 30, 2022				November 30, 2021
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	145,382			$	182,038
Accounts receivable, net		1,390,474				1,207,953
Other current assets		218,476				153,074
Total current assets		1,754,332				1,543,065
Property and equipment, net		403,829				407,144
Goodwill		2,904,402				1,813,502
Intangible assets, net		985,572				655,528
Deferred tax assets		48,541				48,413
Other assets		573,092				578,715
Total assets	$	6,669,768			$	5,046,367
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	161,190			$	129,359
Current portion of long-term debt		—				—
Accrued compensation and benefits		506,966				453,434
Other accrued liabilities		395,304				351,642
Income taxes payable		68,663				33,779
Total current liabilities		1,132,123				968,214
Long-term debt, net		2,224,288				802,017
Other long-term liabilities		511,995				546,410
Deferred tax liabilities		105,458				109,471
Total liabilities		3,973,864				2,426,112
Stockholders’ equity:
Preferred stock, $0.0001 par value, 10,000 shares authorized and no shares issued and outstanding as of November 30, 2022 and 2021, respectively		—				—
Common stock, $0.0001 par value, 250,000 shares authorized; 52,367 and 51,927 shares issued as of November 30, 2022 and 2021, respectively, and 51,096 and 51,594 shares outstanding as of November 30, 2022 and 2021, respectively		5				5
Additional paid-in capital		2,428,313				2,355,767
Treasury stock, 1,271 and 333 shares as of November 30, 2022 and 2021, respectively		(190,779	)			(57,486	)
Retained earnings		774,114				392,495
Accumulated other comprehensive loss		(315,749	)			(70,526	)
Total stockholders’ equity		2,695,904				2,620,255
Total liabilities and stockholders’ equity	$	6,669,768			$	5,046,367

CONCENTRIX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(currency and share amounts in thousands, except per share amounts)
(unaudited)

	Three Months Ended											Fiscal Year Ended
	November 30, 2022				November 30, 2021				% Change			November 30, 2022				November 30, 2021				% Change
Revenue
Technology and consumer electronics	$	543,118			$	481,004			13	%		$	1,980,666			$	1,759,203			13	%
Retail, travel and ecommerce		304,549				272,921			12	%			1,184,086				985,550			20	%
Communications and media		267,405				245,172			9	%			1,076,289				1,005,283			7	%
Banking, financial services and insurance		234,137				213,403			10	%			967,810				862,033			12	%
Healthcare		166,696				135,464			23	%			608,169				489,855			24	%
Other		124,813				118,644			5	%			507,453				485,091			5	%
Total revenue		1,640,718				1,466,608			12	%			6,324,473				5,587,015			13	%
Cost of revenue		1,047,353				947,240			11	%			4,067,210				3,617,527			12	%
Gross profit		593,365				519,368			14	%			2,257,263				1,969,488			15	%
Selling, general and administrative expenses		415,375				361,463			15	%			1,617,071				1,397,091			16	%
Operating income		177,990				157,905			13	%			640,192				572,397			12	%
Interest expense and finance charges, net		28,061				3,730			652	%			70,076				23,046			204	%
Other expense (income), net		(12,640	)			(744	)		1,599	%			(34,887	)			(6,345	)		450	%
Income before income taxes		162,569				154,919			5	%			605,003				555,696			9	%
Provision for income taxes		57,625				30,811			87	%			169,363				150,119			13	%
Net income before non-controlling interest		104,944				124,108			(15	)%			435,640				405,577			7	%
Less: Net income attributable to non-controlling interest		—				—			—	%			591				—			100	%
Net income attributable to Concentrix Corporation	$	104,944			$	124,108			(15	)%		$	435,049			$	405,577			7	%
Earnings per common share:
Basic	$	2.02			$	2.37						$	8.34			$	7.78
Diluted	$	2.01			$	2.35						$	8.28			$	7.70
Weighted-average common shares outstanding:
Basic		51,029				51,555							51,353				51,355
Diluted		51,392				52,016							51,740				51,914

CONCENTRIX CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(currency and share amounts in thousands, except per share amounts)
(unaudited)

	Three Months Ended								Fiscal Year Ended
	November 30, 2022				November 30, 2021				November 30, 2022				November 30, 2021
Revenue	$	1,640,718			$	1,466,608			$	6,324,473			$	5,587,015
Revenue growth, as reported under U.S. GAAP		11.9	%			12.7	%			13.2	%			18.4	%
Foreign exchange impact		5.1	%			—	%			3.5	%			(2.0	)%
Constant currency revenue growth		17.0	%			12.7	%			16.7	%			16.4	%
Effect of excluding revenue of acquired and divested businesses		(11.2	)%			1.3	%			(8.5	)%			0.9	%
Adjusted constant currency revenue growth		5.8	%			14.0	%			8.2	%			17.3	%

 

	Three Months Ended								Fiscal Year Ended
	November 30, 2022				November 30, 2021				November 30, 2022				November 30, 2021
Operating income	$	177,990			$	157,905			$	640,192			$	572,397
Acquisition-related and integration expenses		18,550				825				33,763				825
Amortization of intangibles		41,648				33,744				162,673				136,939
Share-based compensation		9,838				10,904				47,516				36,762
Gain on divestitures and related transaction costs		—				—				—				(13,197	)
Non-GAAP operating income	$	248,026			$	203,378			$	884,144			$	733,726

 

	Three Months Ended								Fiscal Year Ended
	November 30, 2022				November 30, 2021				November 30, 2022				November 30, 2021
Net income	$	104,944			$	124,108			$	435,049			$	405,577
Net income attributable to non-controlling interest		—				—				591				—
Interest expense and finance charges, net		28,061				3,730				70,076				23,046
Provision for income taxes		57,625				30,811				169,363				150,119
Other expense (income), net		(12,640	)			(744	)			(34,887	)			(6,345	)
Acquisition-related and integration expenses		18,550				825				33,763				825
Gain on divestitures and related transaction costs		—				—				—				(13,197	)
Amortization of intangibles		41,648				33,744				162,673				136,939
Share-based compensation		9,838				10,904				47,516				36,762
Depreciation		36,757				34,865				146,864				140,236
Adjusted EBITDA	$	284,783			$	238,243			$	1,031,008			$	873,962

 

	Three Months Ended						Fiscal Year Ended
	November 30, 2022			November 30, 2021			November 30, 2022			November 30, 2021
Operating margin	10.8	%		10.8	%		10.1	%		10.2	%
Non-GAAP operating margin	15.1	%		13.9	%		14.0	%		13.1	%
Adjusted EBITDA margin	17.4	%		16.2	%		16.3	%		15.6	%

 

	Three Months Ended								Fiscal Year Ended
	November 30, 2022				November 30, 2021				November 30, 2022				November 30, 2021
Net income	$	104,944			$	124,108			$	435,049			$	405,577
Acquisition-related and integration expenses		18,550				825				33,763				825
Amortization of intangibles		41,648				33,744				162,673				136,939
Share-based compensation		9,838				10,904				47,516				36,762
Gain on divestitures and related transaction costs		—				—				—				(13,197	)
Income taxes related to the above (1)		(17,789	)			(11,549	)			(61,959	)			(32,291	)
Non-GAAP net income	$	157,191			$	158,032			$	617,042			$	534,615

 

	Three Months Ended								Fiscal Year Ended
	November 30, 2022				November 30, 2021				November 30, 2022				November 30, 2021
Net income	$	104,944			$	124,108			$	435,049			$	405,577
Less: net income allocated to participating securities		(1,762	)			(1,790	)			(6,583	)			(5,724	)
Net income attributable to common stockholders		103,182				122,318				428,466				399,853
Acquisition-related and integration expenses allocated to common stockholders		18,239				813				33,252				813
Amortization of intangibles allocated to common stockholders		40,949				33,257				160,211				135,006
Share-based compensation allocated to common stockholders		9,673				10,747				46,797				36,243
Gain on divestitures and related transaction costs allocated to common stockholders		—				—				—				(13,011	)
Income taxes related to the above allocated to common stockholders (1)		(17,490	)			(11,382	)			(61,021	)			(31,835	)
Non-GAAP net income attributable to common stockholders	$	154,553			$	155,753			$	607,705			$	527,069

 

	Three Months Ended								Fiscal Year Ended
	November 30, 2022				November 30, 2021				November 30, 2022				November 30, 2021
Diluted earnings per common share (“EPS”) (2)	$	2.01			$	2.35			$	8.28			$	7.70
Acquisition-related and integration expenses		0.35				0.02				0.64				0.02
Amortization of intangibles		0.80				0.64				3.10				2.60
Share-based compensation		0.19				0.21				0.90				0.70
Gain on divestitures and related transaction costs		—				—				—				(0.25	)
Income taxes related to the above (1)		(0.34	)			(0.23	)			(1.17	)			(0.62	)
Non-GAAP diluted EPS	$	3.01			$	2.99			$	11.75			$	10.15
Weighted-average number of common shares - diluted		51,392				52,016				51,740				51,914

 

	Three Months Ended								Fiscal Year Ended
	November 30, 2022				November 30, 2021				November 30, 2022				November 30, 2021
Net cash provided by operating activities	$	235,679			$	182,053			$	600,720			$	514,178
Purchases of property and equipment		(42,742	)			(36,210	)			(140,018	)			(149,079	)
Free cash flow	$	192,937			$	145,843			$	460,702			$	365,099

 

	Forecast
	Three Months Ending February 28, 2023								Fiscal Year Ending November 30, 2023
	Low				High				Low				High
Revenue	$	1,610,000			$	1,640,000			$	6,715,000			$	6,865,000
Foreign exchange impact (3)		37,000				37,000				10,000				10,000
Revenue in constant currency	$	1,647,000			$	1,677,000			$	6,725,000			$	6,875,000
Effect of excluding revenue of acquired and divested businesses		(80,000	)			(80,000	)			(160,000	)			(160,000	)
Revenue in adjusted constant currency	$	1,567,000			$	1,597,000			$	6,565,000			$	6,715,000

 

	Forecast
	Three Months Ending February 28, 2023								Fiscal Year Ending November 30, 2023
	Low				High				Low				High
Operating income	$	146,100			$	156,100			$	712,900			$	752,900
Acquisition-related and integration expenses		6,700				6,700				16,300				16,300
Amortization of intangibles		39,000				39,000				156,300				156,300
Share-based compensation		18,200				18,200				64,500				64,500
Non-GAAP operating income	$	210,000			$	220,000			$	950,000			$	990,000

⁽¹⁾ The tax effect of taxable and deductible non-GAAP adjustments was calculated using the tax-deductible portion of the expenses and applying the entity-specific, statutory tax rates applicable to each item during the respective periods presented.

⁽²⁾ Diluted earnings per common share (“EPS”) is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. For the purposes of calculating diluted EPS, net income attributable to participating securities was approximately 1.7% and 1.4% of net income, respectively, for the three months ended November 30, 2022 and 2021 and 1.5% and 1.4% of net income, respectively, for the fiscal years ended November 30, 2022 and 2021, and was excluded from total net income to calculate net income attributable to common stockholders. In addition, the non-GAAP adjustments allocated to common stockholders were calculated based on the percentage of net income attributable to common stockholders.

⁽³⁾ Based on foreign currency exchange rates as of January 13, 2023.

Investor Contact: David Stein Investor Relations Concentrix Corporation [email protected] (513) 703-9306