Concentrix Corporation (NASDAQ:CNXC) Q1 2023 Earnings Call Transcript

Page 3 of 3

Andre Valentine: Yes. Happy to respond, Ruplu. Yes, we’ve seen a little bit of an increase in the FX impact as a headwind for the full year. So if you go back to our last call, we said it was effectively breakeven. Now we’re saying it is about a 0.5 point headwind as we look at the currency mix and where they’ve move to from the time that we — right before we announced earnings back in January to where they are here in late March. Sales cycles, Chris?

Christopher Caldwell: Yes. From a sales cycle perspective, as we talked about Ruplu, is like some of the more complex deal has a slightly longer sales cycle, but I don’t want people to over-rotate on that. The reality is it’s still relatively quick. It’s just a little longer than more sort of transactional deals that we’ve talked about in the past. The cadence of how it flows through the pipeline is actually pretty similar. Outside of the end, there tends to be more checks and balances with companies, just making sure that they are going to get the ROI that they’re expecting that they’re able to deal with their internal movement of things that they need to do to be able to support those deals. It’s pretty similar to what we’ve seen before. And so no major call-outs.

Operator: . And our next question is coming from of Canaccord.

Unidentified Analyst: Congratulations on the Webhelp announcement. It seems like it complements your business really well. Maybe I’ll ask a question on your international strategy this year in context of this announcement, any changes in how you are planning this year as it relates to your growth plans internationally?

Christopher Caldwell: Yes. So it’s a good question. The reality is that we’ve been investing in sort of our international footprint for many years. And as we talked about in the prepared remarks, we continue to invest in Europe. We continue to invest in Africa. We continue to invest in Latin America and a few countries within Asia Pac as we build out our footprint. What this does is really accelerate that. But until the deal is closed, we need to continue to focus on operating as an independent and separate company and continue to support our clients. And so we’ll continue to make those investments until the transaction closes.

Unidentified Analyst: Got it. And Chris, maybe a little more color on the progress that you’re seeing on the vendor consolidation front? How are those negotiations coming along? And to the extent that you can perhaps speak to the pricing for this incremental volume that you’re expecting in the second half?

Christopher Caldwell: Yes, for sure. So I think generally quite positive. I mean, the reality is, is that where we’re the predominant provider within account and as we talked about in the prepared remarks, sort of we’re driving higher CSET, higher innovation scores in the last decade, we’re being successful. And the pricing is for those consolidations is quite stable. It’s in line with what we’re seeing right now for the most part, and we expect that it will remain stable. Where the benefit is to our clients is one managing a separate — sorry, one less party or 2 less party is much more cost effective for them. They’re able to get some benefits, needing less capacity within their network. And so that costs them less. And so that’s really where they’re seeing the vast amount of savings by driving the partner consolidation.

Operator: That’s all the time that we have for today. That concludes the Q&A and the conference for today. Thank you all for participating. Everyone may disconnect, and have a great evening.

Follow Concentrix Corp (NASDAQ:CNXC)

Page 3 of 3