Shares of Concentrix Corporation (CNXC), a leading global technology and services company, plummeted 6.26% in after-hours trading on Wednesday following its fiscal Q4 2024 earnings release and weaker-than-expected guidance for Q1 2025.

For the fourth quarter ended November 30, 2024, Concentrix reported revenue of $2.45 billion, up 9.7% year-over-year and slightly ahead of analysts' estimates. The company's non-GAAP operating income grew 1.7% to $346.7 million, while adjusted EBITDA rose 1.3% to $402.9 million. Non-GAAP diluted earnings per share (EPS) came in at $3.26, slightly below analyst expectations of $3.01.

The company attributed its solid Q4 performance to strong revenue growth across key verticals, including technology and consumer electronics, retail, travel and e-commerce, and communications and media. However, investors seemed more concerned with Concentrix's guidance for the first quarter of fiscal 2025.

For Q1 2025, Concentrix expects revenue to range between $2.36 billion and $2.37 billion, representing a flat to slightly negative growth rate on a constant currency basis compared to the prior year period. The company's non-GAAP EPS guidance of $2.49 to $2.64 fell short of analysts' expectations of $2.85, citing continued investments in its new generative AI product suite and the impact of foreign exchange headwinds.

According to Chris Caldwell, Concentrix President and CEO, the company's ongoing investments in generative AI and autonomous driving technologies are crucial for its long-term growth strategy. However, these investments have weighed on near-term profitability, contributing to the weaker-than-expected Q1 guidance.

Despite the disappointing Q1 outlook, Concentrix remains optimistic about its full-year 2025 prospects. The company expects revenue growth of 0% to 1.5% on a constant currency basis, with non-GAAP operating income projected to range between $1.3 billion and $1.34 billion. Concentrix also anticipates generating adjusted free cash flow of $625 million to $650 million in fiscal 2025.