– Achieved total revenue growth of over 8%,
and nearly 9% Employer Solutions revenue growth –
– Generated robust BPaaS bookings of $262
million or growth of 26% –
– Sustained strong double-digit expansion of
profitability –
– Raises 2023 adjusted EPS guidance range
–
– Over 95% of revenue under contract for
2023 –
Alight, Inc. (NYSE: ALIT), a leading cloud-based provider of
integrated digital human capital and business solutions, today
reported results for the third quarter ended September 30,
2023.
“Alight delivered high single-digit revenue growth and
double-digit profitability expansion as our successful
transformation into a platform company is enabling consistent and
durable financial performance,” said Chief Executive Officer
Stephan Scholl. “With the platform as our foundation, we are seeing
broad-based demand for our solutions, underscored by robust BPaaS
bookings that grew 26% over the prior year. Our continued strong
financial performance, along with $2.7 billion of revenue already
under contract for 2024, enables us to reaffirm our 2023 and
mid-term guidance.”
Third Quarter 2023 Highlights
- Revenue increased 8.4% over the prior year period to $813
million
- Over 95% of projected 2023 revenue under contract at the end of
the third quarter
- Business Process as a Service (BPaaS) revenue grew 21.9% to
$184 million, representing 22.6% of total revenue
- BPaaS bookings on a total contract value (TCV) basis were $262
million, representing growth of 26.0% compared to the prior year
period. Since the start of 2021, we have delivered BPaaS TCV
bookings of nearly $2 billion, ahead of our goal of $1.5 billion by
the end of 2023
- Gross profit of $257 million and gross profit margin of 31.6%
compared to $212 million and 28.3% in the prior year period,
respectively, and adjusted gross profit of $287 million and
adjusted gross profit margin of 35.3% compared to $239 million and
31.9%, in the prior year period, respectively
- Net loss of $46 million compared to net loss of $45 million in
the prior year period
- Adjusted EBITDA grew 18.8% over the prior year period to $158
million
- Cash from operations of $251 million year-to-date in 2023, up
$50 million or 25.0% from the prior year period
- New wins or expanded relationships with companies including
FedEx, NielsenIQ, and Royal BAM Group
- The Company repurchased $26 million of Common Stock under the
share repurchase program
Third Quarter 2023 Results
Consolidated Results
Revenue grew 8.4% to $813 million, as compared to $750 million
in the prior year period. The improvement was driven by an 8.7%
increase in Employer Solutions revenue due to increased net
commercial activity, project revenue, and volumes as well as the
impact of our 2022 acquisition, and 10.5% growth in Professional
Services revenue. Recurring revenues, which comprised 83.3% of
total revenue, grew 8.3% to $677 million mainly due to growth in
Employer Solutions revenue.
Gross profit was $257 million, or 31.6% of revenue, compared to
$212 million, or 28.3% of revenue in the prior year period. The
increase in gross profit was primarily driven by revenue growth as
noted above and productivity savings, partially offset by
additional costs associated with the rise in revenues.
Selling, general and administrative expenses were $177 million,
compared to $178 million in the prior year period. The decrease was
primarily driven by compensation expenses related to share-based
awards, partially offset by the inclusion of expenses from our 2022
acquisition and costs incurred from our previously announced
restructuring program.
Interest expense was $34 million as compared to $31 million in
the prior year period. The change in expense was primarily due to
higher interest expense on our term loan borrowings due to movement
in market interest rates.
The Company’s loss before income tax expense was $15 million
compared to loss before income tax benefit of $65 million in the
prior year period. The change was primarily due to non-operating
fair value remeasurements of financial instruments and the tax
receivable agreement.
Third Quarter 2023 Segment Results
Employer Solutions
Employer Solutions is driven by Alight’s digital, software and
AI-led capabilities and spans total employee wellbeing and
engagement, including integrated benefits administration,
healthcare navigation, financial health, employee wellness and
payroll.
Employer Solutions revenues grew 8.7% to $701 million, as
compared to $645 million in the prior year period, as a result of
increased net commercial activity, project revenue, and volumes as
well as the impact of our 2022 acquisition. Recurring revenue grew
8.7% to $634 million, while project revenue was up 8.1% to $67
million.
Employer Solutions gross profit was $231 million, as compared to
$189 million in the prior year period, up 22.2%, driven by revenue
growth and productivity savings, partially offset by employee
compensation costs and additional costs associated with funding
growth of current and future revenues. Employer Solutions adjusted
gross profit was $260 million, as compared to $214 million in the
prior year period, up 21.5% or $46 million, primarily due to the
factors impacting gross profit above.
Professional Services
Professional Services revenues were up 10.5% to $105 million as
compared to $95 million in the prior year period as a result of
higher recurring revenue and higher project revenue. Recurring
revenue and project revenue rose by $4 million and $6 million,
respectively.
Professional Services gross profit was $26 million and adjusted
gross profit was $27 million, representing an increase of $3
million and $2 million, respectively, compared to the prior year
period.
Balance Sheet Highlights
As of September 30, 2023, the Company’s cash and cash
equivalents balance was $276 million, total debt was $2,801 million
and total debt net of cash and cash equivalents was $2,525
million.
During the quarter, the Company completed a repricing of its
2028 term loan that decreased its interest rate by 25 basis points
for $6 million of anticipated annualized interest expense
savings.
The interest rates on the Company’s debt are 84% fixed through
2024 and 60% through 2025.
Business Outlook
The Company's 2023 outlook includes:
- Revenue of $3.47 billion to $3.51 billion (growth of 11% to
12%).
- Adjusted EBITDA of $735 million to $750 million.
- Adjusted diluted EPS of $0.65 to $0.69 (versus $0.62 to $0.67
prior).
- BPaaS total contract value bookings of $700 million to $900
million.
- Operating Cash Flow Conversion rate of 45-55%.
Reconciliations of the historical financial measures used in
this press release that are not recognized under U.S. generally
accepted accounting principles ("GAAP") are included below. Because
GAAP financial measures on a forward-looking basis are not
accessible, and reconciling information is not available without
unreasonable effort, we have not provided reconciliations for
forward-looking non-GAAP measures. For the same reasons, we are
unable to address the probable significance of the unavailable
information, which could be material to future results.
Earnings Conference Call and Webcast Information
A conference call to discuss the Company’s third-quarter
financial results is scheduled for today, November 1, 2023 at 7:30
a.m. Central Time (8:30 a.m. Eastern Time). Interested parties can
access the live webcast and accompanying presentation materials by
logging on to the Investor Relations section on the Company’s
website at http://investor.alight.com. A replay of the conference
call and the accompanying presentation materials will be available
on the investor relations website for approximately 90 days.
About Alight Solutions
Alight is a leading cloud-based human capital technology and
services provider that powers confident health, wealth and
wellbeing decisions for 36 million people and dependents. Our
Alight Worklife® platform combines data and analytics with a
simple, seamless user experience. Supported by our global delivery
capabilities, Alight Worklife is transforming the employee
experience for people around the world. With personalized,
data-driven health, wealth, pay and wellbeing insights, Alight
brings people the security of better outcomes and peace of mind
throughout life’s big moments and most important decisions. Learn
how Alight unlocks growth for organizations of all sizes at
alight.com.
For more information, please visit www.alight.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended. These statements include, but are
not limited to, statements related to the expectations regarding
the performance and outlook for Alight’s business, financial
results, liquidity and capital resources, and other non-historical
statements, including statements in the “Business Outlook” section
of this press release. In some cases, these forward-looking
statements can be identified by the use of words such as “outlook,”
“believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “could,” “seeks,” “projects,” “predicts,” “intends,”
“plans,” “estimates,” “anticipates” or the negative version of
these words or other comparable words. Such forward-looking
statements are subject to various risks and uncertainties
including, among others, risks related to declines in economic
activity in the industries, markets, and regions our clients serve,
including as a result of increases in inflation rates or interest
rates or changes in monetary and fiscal policies, risks related to
the performance of our information technology systems and networks,
risks related to our ability to maintain the security and privacy
of confidential and proprietary information, risks related to
changes in regulation, including developments on the use of
artificial intelligence and machine learning, and competition in
our industry. Additional factors that could cause Alight’s results
to differ materially from those described in the forward-looking
statements can be found under the section entitled “Risk Factors”
of Alight’s Annual Report on Form 10-K, filed with the Securities
and Exchange Commission (the "SEC") on March 1, 2023, as such
factors may be updated from time to time in Alight's filings with
the SEC, which are, or will be, accessible on the SEC's website at
www.sec.gov. Accordingly, there are or will be important factors
that could cause actual outcomes or results to differ materially
from those indicated in these statements. These factors should not
be construed as exhaustive and should be considered along with
other factors noted in this presentation and in Alight’s filings
with the SEC. Alight undertakes no obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as required
by law.
Non-GAAP Financial Measures
The Company refers to certain non-GAAP financial measures in
this press release, including: Adjusted EBITDA, Adjusted EBITDA
Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share,
Operating Cash Flow Conversion, Adjusted Gross Profit and Adjusted
Gross Profit Margin. Please see below for additional information
and for reconciliations of such non-GAAP financial measures. The
presentation of non-GAAP financial measures is used to enhance our
investors’ and lenders’ understanding of certain aspects of our
financial performance. This discussion is not meant to be
considered in isolation, superior to, or as a substitute for the
directly comparable financial measures prepared in accordance with
GAAP.
Adjusted EBITDA, which is defined as earnings before interest,
taxes, depreciation and intangible amortization adjusted for the
impact of certain non-cash and other items that we do not consider
in the evaluation of ongoing operational performance. Adjusted
EBITDA Margin is defined as Adjusted EBITDA divided by revenue.
Both Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP
financial measures used by management and our stakeholders to
provide useful supplemental information that enables a better
comparison of our performance across periods as well as to evaluate
our core operating performance.
Adjusted Net Income, which is defined as net income (loss)
attributable to Alight, Inc. adjusted for intangible amortization
and the impact of certain non-cash items that we do not consider in
the evaluation of ongoing operational performance, is a non-GAAP
financial measure used solely for the purpose of calculating
Adjusted Diluted Earnings Per Share.
Adjusted Diluted Earnings Per Share is defined as Adjusted Net
Income divided by the adjusted weighted-average number of shares of
Alight Inc. common stock, diluted. Adjusted Diluted Earnings Per
Share is used by us and our investors to evaluate our core
operating performance and to benchmark our operating performance
against our competitors.
Operating Cash Flow Conversion is defined as cash provided by
operating activities divided by Adjusted EBITDA. Operating Cash
Flow Conversion is used by management and stakeholders to evaluate
our core operating performance.
Adjusted Gross Profit is defined as revenue less cost of
services adjusted for depreciation, amortization and share-based
compensation, and Adjusted Gross Profit Margin is defined as
Adjusted Gross Profit divided by revenue. Management uses Adjusted
Gross Profit and Adjusted Gross Profit Margin as key measures in
making financial, operating and planning decisions and in
evaluating our performance. We believe that presenting Adjusted
Gross Profit and Adjusted Gross Profit Margin is useful to
investors as it eliminates the impact of certain non-cash expenses
and allows a direct comparison between periods.
Condensed Consolidated
Statements of Income (Loss)
(Unaudited)
Three Months Ended September
30
Nine Months Ended September
30
(in millions, except per share
amounts)
2023
2022
2023
2022
Revenue
$
813
$
750
$
2,450
$
2,190
Cost of services, exclusive of
depreciation and amortization
535
523
1,618
1,497
Depreciation and amortization
21
15
61
39
Gross Profit
257
212
771
654
Operating Expenses
Selling, general and administrative
177
178
555
475
Depreciation and intangible
amortization
84
84
254
254
Total operating expenses
261
262
809
729
Operating Income (Loss)
(4
)
(50
)
(38
)
(75
)
Other (Income) Expense
(Gain) Loss from change in fair value of
financial instruments
(36
)
10
(11
)
(53
)
(Gain) Loss from change in fair value of
tax receivable agreement
11
(20
)
30
(63
)
Interest expense
34
31
100
89
Other (income) expense, net
2
(6
)
9
(14
)
Total other (income) expense, net
11
15
128
(41
)
Income (Loss) Before Income Tax
(15
)
(65
)
(166
)
(34
)
Income tax expense (benefit)
31
(20
)
26
(28
)
Net Income (Loss)
(46
)
(45
)
(192
)
(6
)
Net loss attributable to noncontrolling
interests
2
(8
)
(9
)
(9
)
Net (Loss) Income Attributable to
Alight, Inc.
$
(48
)
$
(37
)
$
(183
)
$
3
Earnings Per Share
Basic (net loss) earnings per share
$
(0.10
)
$
(0.08
)
$
(0.38
)
$
0.01
Diluted (net loss) earnings per share
$
(0.10
)
$
(0.08
)
$
(0.38
)
$
-
Condensed Consolidated Balance
Sheets
(Unaudited)
September 30,
December 31,
2023
2022
(in millions, except par values)
Assets
Current Assets
Cash and cash equivalents
$
276
$
250
Receivables, net
664
678
Other current assets
290
379
Total Current Assets Before Fiduciary
Assets
1,230
1,307
Fiduciary assets
1,319
1,509
Total Current Assets
2,549
2,816
Goodwill
3,682
3,679
Intangible assets, net
3,632
3,872
Fixed assets, net
357
320
Deferred tax assets, net
5
6
Other assets
524
542
Total Assets
$
10,749
$
11,235
Liabilities and Stockholders'
Equity
Liabilities
Current Liabilities
Accounts payable and accrued
liabilities
$
428
$
508
Current portion of long-term debt, net
25
31
Other current liabilities
312
300
Total Current Liabilities Before
Fiduciary Liabilities
765
839
Fiduciary liabilities
1,319
1,509
Total Current Liabilities
2,084
2,348
Deferred tax liabilities
63
60
Long-term debt, net
2,776
2,792
Long-term tax receivable agreement
634
568
Financial instruments
87
97
Other liabilities
213
281
Total Liabilities
$
5,857
$
6,146
Commitments and Contingencies
Stockholders' Equity
Preferred stock at $0.0001 par value: 1.0
shares authorized, none issued and outstanding
$
—
$
—
Class A Common Stock: $0.0001 par value,
1,000.0 shares authorized; 501.1 and 478.3 issued and outstanding
as of September 30, 2023 and December 31, 2022, respectively
—
—
Class B Common Stock: $0.0001 par value,
20.0 shares authorized; 10.0 issued and outstanding as of September
30, 2023 and December 31, 2022, respectively
—
—
Class V Common Stock: $0.0001 par value,
175.0 shares authorized; 36.6 and 63.5 issued and outstanding as of
September 30, 2023 and December 31, 2022, respectively
—
—
Class Z Common Stock: $0.0001 par value,
12.9 shares authorized; 5.2 and 5.6 issued and outstanding as of
September 30, 2023 and December 31, 2022, respectively
—
—
Treasury stock, at cost (6.4 and 1.5
shares at September 30, 2023 and December 31, 2022,
respectively)
(52
)
(12
)
Additional paid-in-capital
4,823
4,514
Retained deficit
(341
)
(158
)
Accumulated other comprehensive income
96
95
Total Alight, Inc. Stockholders'
Equity
$
4,526
$
4,439
Noncontrolling interest
366
650
Total Stockholders' Equity
$
4,892
$
5,089
Total Liabilities and Stockholders'
Equity
$
10,749
$
11,235
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Nine Months Ended September
30
(in millions)
2023
2022
Operating activities:
Net income (loss)
$
(192
)
$
(6
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation
76
56
Intangible asset amortization
239
237
Noncash lease expense
15
19
Financing fee and premium amortization
(2
)
(1
)
Share-based compensation expense
110
129
(Gain) loss from change in fair value of
financial instruments
(11
)
(53
)
(Gain) loss from change in fair value of
tax receivable agreement
30
(63
)
Release of unrecognized tax provision
(1
)
(29
)
Deferred tax expense (benefit)
30
(6
)
Other
7
4
Changes in operating assets and
liabilities, net of business combinations:
Accounts receivable
12
(73
)
Accounts payable and accrued
liabilities
(79
)
(2
)
Other assets and liabilities
17
(11
)
Cash provided by operating
activities
$
251
$
201
Investing activities:
Capital expenditures
(127
)
(115
)
Cash used in investing
activities
$
(127
)
$
(115
)
Financing activities:
Net increase (decrease) in fiduciary
liabilities
(190
)
74
Borrowings from banks
—
104
Financing fees
—
(3
)
Repayments to banks
(19
)
(134
)
Principal payments on finance lease
obligations
(17
)
(20
)
Payments on tax receivable agreements
(7
)
—
Tax payment for shares/units withheld in
lieu of taxes
(8
)
(1
)
Deferred and contingent consideration
payments
(9
)
(81
)
Repurchase of shares
(40
)
(12
)
Other financing activities
1
—
Cash provided by (used in) financing
activities
$
(289
)
$
(73
)
Effect of exchange rate changes on
cash, cash equivalents and restricted cash
1
(7
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(164
)
6
Cash, cash equivalents and restricted
cash at beginning of period
1,759
1,652
Cash, cash equivalents and restricted
cash at end of period
$
1,595
$
1,658
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
(Unaudited)
Three Months Ended September
30
Nine Months Ended September
30
(in millions)
2023
2022
2023
2022
Net Income (Loss)
$
(46
)
$
(45
)
$
(192
)
$
(6
)
Interest expense
34
31
100
89
Income tax expense (benefit)
31
(20
)
26
(28
)
Depreciation
26
21
76
56
Intangible amortization
79
78
239
237
EBITDA
124
65
249
348
Share-based compensation
35
54
110
129
Transaction and integration
expenses(1)
6
2
16
11
Restructuring
17
23
73
43
(Gain) Loss from change in fair value of
financial instruments
(36
)
10
(11
)
(53
)
(Gain) Loss from change in fair value of
tax receivable agreement
11
(20
)
30
(63
)
Other(2)
1
(1
)
2
2
Adjusted EBITDA
$
158
$
133
$
469
$
417
Revenue
$
813
$
750
$
2,450
$
2,190
Adjusted EBITDA Margin(3)
19.4
%
17.7
%
19.1
%
19.0
%
(1) Transaction and integration expenses
primarily relate to acquisition activity.
(2) Other primarily includes expenses
related to debt financing.
(3) Adjusted EBITDA Margin is defined as
Adjusted EBITDA as a percentage of revenue.
Reconciliation of Net Income
(Loss) Attributable to Alight, Inc. to Adjusted Net Income and
Adjusted Diluted Earnings per Share
(Unaudited)
Three Months Ended September
30
Nine Months Ended September
30
(in millions, except share and per share
amounts)
2023
2022
2023
2022
Numerator:
Net (Loss) Income Attributable to Alight,
Inc.
$
(48
)
$
(37
)
$
(183
)
$
3
Conversion of noncontrolling interest
2
(8
)
(9
)
(9
)
Intangible amortization
79
78
239
237
Share-based compensation
35
54
110
129
Transaction and integration expenses
6
2
16
11
Restructuring
17
23
73
43
(Gain) Loss from change in fair value of
financial instruments
(36
)
10
(11
)
(53
)
(Gain) Loss from change in fair value of
tax receivable agreement
11
(20
)
30
(63
)
Other
1
(1
)
2
2
Tax effect of adjustments(1)
7
(37
)
(44
)
(104
)
Adjusted Net Income
$
74
$
64
$
223
$
196
Denominator:
Weighted average shares outstanding -
basic
493,226,324
457,904,703
486,683,943
457,535,329
Dilutive effect of the exchange of
noncontrolling interest units
—
—
—
75,800,317
Dilutive effect of RSUs
—
—
—
770,953
Weighted average shares outstanding -
diluted
493,226,324
457,904,703
486,683,943
534,106,599
Exchange of noncontrolling interest
units(2)
40,858,016
75,800,317
47,618,819
—
Impact of unvested RSUs(3)
9,161,197
10,289,937
9,161,197
9,518,984
Adjusted shares of Class A Common Stock
outstanding - diluted(4)
543,245,537
543,994,957
543,463,959
543,625,583
Basic (Net Loss) Earnings Per
Share
$
(0.10
)
$
(0.08
)
$
(0.38
)
$
0.01
Diluted (Net Loss) Earnings Per
Share
$
(0.10
)
$
(0.08
)
$
(0.38
)
$
—
Adjusted Diluted Earnings Per
Share(4)(5)
$
0.14
$
0.12
$
0.41
$
0.36
(1) Income tax effects have been
calculated based on the statutory tax rates for both U.S. and
foreign jurisdictions based on the Company's mix of income and
adjusted for significant changes in fair value measurement.
(2) Assumes the full exchange of the units
held by noncontrolling interests for shares of Class A Common Stock
of Alight, Inc. pursuant to the exchange agreement.
(3) Includes non-vested time-based
restricted stock units that were determined to be antidilutive for
U.S. GAAP diluted earnings per share purposes.
(4) Excludes two tranches of contingently
issuable seller earnout shares: (i) 7.5 million shares will be
issued if the Company's Class A Common Stock's volume-weighted
average price ("VWAP") is >$12.50 for 20 consecutive trading
days; and (ii) 7.5 million shares will be issued if the Company's
Class A Common Stock VWAP is >$15.00 for 20 consecutive trading
days. Both tranches have a seven-year duration.
(5) Excludes 28,547,275 and 33,148,917
performance-based units, which represents the gross number of
shares expected to vest based on achievement of performance
conditions as of September 30, 2023 and September 30, 2022,
respectively.
Reconciliation of Segment Profit to
Income (Loss) Before Income Tax Benefit
(Unaudited)
Segment Profit
Three Months Ended September
30
Nine Months Ended September
30
(in millions)
2023
2022
2023
2022
Employer Solutions
$
231
$
189
$
709
$
593
Professional Services
26
23
64
62
Other
-
-
(2
)
(1
)
Total Gross Profit
257
212
771
654
Selling, general and administrative
177
178
555
475
Depreciation and intangible
amortization
84
84
254
254
Operating Income (Loss)
(4
)
(50
)
(38
)
(75
)
(Gain) Loss from change in fair value of
financial instruments
(36
)
10
(11
)
(53
)
(Gain) Loss from change in fair value of
tax receivable agreement
11
(20
)
30
(63
)
Interest expense
34
31
100
89
Other (income) expense, net
2
(6
)
9
(14
)
Income (Loss) Before Income Tax
$
(15
)
$
(65
)
$
(166
)
$
(34
Gross Profit to Adjusted Gross Profit
Reconciliation by Segment
(Unaudited)
Three Months Ended September
30, 2023
($ in millions)
Employer Solutions
Professional Services
Other
Total
Gross Profit
$
231
$
26
$
-
$
257
Add: stock-based compensation
9
-
-
9
Add: depreciation and amortization
20
1
-
21
Adjusted Gross Profit
$
260
$
27
$
-
$
287
Gross Profit Margin
33.0
%
24.8
%
-
31.6
%
Adjusted Gross Profit Margin
37.1
%
25.7
%
-
35.3
%
Three Months Ended September
30, 2022
($ in millions)
Employer Solutions
Professional Services
Other
Total
Gross Profit
$
189
$
23
$
-
$
212
Add: stock-based compensation
11
1
-
12
Add: depreciation and amortization
14
1
-
15
Adjusted Gross Profit
$
214
$
25
$
-
$
239
Gross Profit Margin
29.3
%
24.2
%
-
28.3
%
Adjusted Gross Profit Margin
33.2
%
26.3
%
-
31.9
%
Nine Months Ended September
30, 2023
($ in millions)
Employer Solutions
Professional Services
Other
Total
Gross Profit
$
709
$
64
$
(2
)
$
771
Add: stock-based compensation
25
2
-
27
Add: depreciation and amortization
58
1
2
61
Adjusted Gross Profit
$
792
$
67
$
-
$
859
Gross Profit Margin
33.4
%
21.1
%
-7.7
%
31.5
%
Adjusted Gross Profit Margin
37.3
%
22.1
%
-
35.1
%
Nine Months Ended September
30, 2022
($ in millions)
Employer Solutions
Professional Services
Other
Total
Gross Profit
$
593
$
62
$
(1
)
$
654
Add: stock-based compensation
27
2
-
29
Add: depreciation and amortization
36
1
2
39
Adjusted Gross Profit
$
656
$
65
$
1
$
722
Gross Profit Margin
31.5
%
22.5
%
-3.1
%
29.9
%
Adjusted Gross Profit Margin
34.9
%
23.6
%
3.1
%
33.0
%
Other Select Financial
Data
(Unaudited)
Three Months Ended September
30
Nine Months Ended September
30
($ in millions)
2023
2022
2023
2022
Segment
Revenues
Employer Solutions:
Recurring
$
634
$
583
$
1,942
$
1,712
Project
67
62
179
170
Total Employer Solutions
701
645
2,121
1,882
Professional Services:
Recurring
36
32
104
94
Project
69
63
199
182
Total Professional Services
105
95
303
276
Total Reportable Segments
806
740
2,424
2,158
Other (1)
7
10
26
32
Total revenue
$
813
$
750
$
2,450
$
2,190
Segment Gross
Profit
Employer Solutions
$
231
$
189
$
709
$
593
Professional Services
26
23
64
62
Other
—
—
(2
)
(1
)
Total gross profit
$
257
$
212
$
771
$
654
Segment Gross
Margin
Employer Solutions
33.0
%
29.3
%
33.4
%
31.5
%
Professional Services
24.8
%
24.2
%
21.1
%
22.5
%
Other
0.0
%
0.0
%
(7.7
%)
(3.1
%)
Total gross margin
31.6
%
28.3
%
31.5
%
29.9
%
Segment Adjusted
Gross Profit
Employer Solutions
$
260
$
214
$
792
$
656
Professional Services
27
25
67
65
Other
—
—
—
1
Total adjusted gross profit
$
287
$
239
$
859
$
722
Segment Adjusted
Gross Margin Percent
Employer Solutions
37.1
%
33.2
%
37.3
%
34.9
%
Professional Services
25.7
%
26.3
%
22.1
%
23.6
%
Other
0.0
%
0.0
%
0.0
%
3.1
%
Total adjusted gross margin percent
35.3
%
31.9
%
35.1
%
33.0
%
Adjusted EBITDA
$
158
$
133
$
469
$
417
Cash provided by operating
activities
$
251
$
201
Other Key
Statistics
Recurring revenue
$
677
$
625
$
2,072
$
1,838
BPaaS revenue
$
184
$
151
$
534
$
393
BPaaS revenue as % of total revenue
22.6
%
20.1
%
21.8
%
17.9
%
BPaaS bookings(2)
$
262
$
208
$
486
$
564
(1) Other revenues primarily attributable
to the former Hosted Segment.
(2) BPaaS bookings are reported on a total
contract value (TCV) basis.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101436163/en/
Investors: Jeremy Cohen investor.relations@alight.com
Media: Sandra Kelder sandra.kelder@alight.com
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