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View All NewsCognizant Q3 revenue up 4%; exiting content moderation business which serves Facebook
Third-quarter revenue rose 4.2% at Cognizant Technology Solutions Corp. (NASDAQ: CTSH) to nearly $4.25 billion on a year-over-year basis. The Teaneck, New Jersey-based IT services firm reported earnings after close of market on Wednesday. Also, Cognizant announced it would shut down some of its content moderation services; Facebook Inc. is one of its content moderation clients, Reuters reported.
The content moderation jobs involve identifying objectionable content, and about 6,000 will be cut, Reuters reported. Cognizant also plans to cut up to 7,000 jobs in other units to invest in growth.
| (US$ millions) | Q3 2019 | Q3 2018 | % change | % constant currency |
| Revenue | $4,248 | $4,078 | 4.2% | 5.1% |
| Net income | $497 | $477 | 4.2% |
Cognizant noted 59.6% of revenue was from consulting and tech services in the third quarter while 40.4% was from outsourcing.
North America revenue rose 3.7%.
Revenue by geography
| (US$ millions) | Q3 2019 | % change year over year | % constant currency |
| North America | $3,223 | 3.7% | 3.7% |
| UK | $325 | flat | 4.5% |
| Continental Europe | $430 | 8.0% | 12.3% |
| Rest of world | $270 | 8.9% | 11.1% |
Guidance
Cognizant forecast that fourth-quarter revenue will be up between 2.1% and 3.1% in constant currency.
Share price and market cap
Shares in Cognizant were up 2.09% to $61.14 on the Nasdaq as of 12:56 p.m. Eastern time; the company had a market cap of $33.08 billion, according to FT.com.