– Fourth quarter revenue of $680 million
– – ARR bookings growth of 18% to $114 million in 2024 –
– Increased stock repurchase program by $200 million – –
Announces Board of Directors leadership transition – –
Introduces 2025 outlook with improved revenue growth rate, profit
margins and cash flow –
Alight, Inc. (NYSE: ALIT), a leading cloud-based human capital
and technology-enabled services provider, today reported results
for the fourth quarter and full year ended December 31, 2024.
“Alight concluded a transformative year on a strong note, with
fourth quarter results that met expectations and included recurring
revenue expansion and strong cash flow,” said CEO Dave Guilmette.
“We enter 2025 as a market-leading, technology-enabled services
provider with a simplified foundation and an enviable client
roster. With our multi-year technology modernization now complete
and a strong leadership team in place, we expect 2025 will be a
transitional year focused on execution and steady progress across
the key financial measures that drive profitable growth and
attractive cash flow.”
Presentation of Results
Beginning with the quarter ended March 31, 2024, the Company
began accounting for the assets, liabilities and operating results
of the Payroll & Professional Services business as discontinued
operations. As such, the financial information contained in this
release is presented on a continuing operations basis, unless
otherwise noted. The Payroll & Professional Services business
transaction closed on July 12, 2024.
Fourth Quarter 2024 Highlights (all comparisons are
relative to fourth quarter 2023)
- Revenue decreased 0.3% to $680 million
- Business Process as a Service (BPaaS) revenue grew 9.8% to $146
million, representing 21.5% of total revenue
- Gross profit of $271 million and gross profit margin of 39.9%,
compared to $270 million and 39.6% in the prior year period,
respectively, and adjusted gross profit of $300 million and
adjusted gross profit margin of 44.1%, compared to $297 million and
43.5% in the prior year period, respectively
- Net income of $29 million compared to the prior year period net
loss of $121 million
- Adjusted EBITDA of $217 million compared to the prior year
period of $206 million
- Diluted earnings (loss) per share of $0.05 compared to $(0.23)
in the prior year period, and adjusted diluted earnings per share
of $0.24 compared to $0.13 per share in the prior year period
- New wins or expanded relationships with companies including
Fortune Brands Innovations and Agilis Partners
- Repurchased $12 million of common stock under existing share
repurchase program
- Declared and paid a $0.04 per share dividend
Full Year 2024 Highlights (all comparisons are relative
to full year 2023)
- Revenue decreased 2.3% to $2,332 million
- Business Process as a Service (BPaaS) revenue grew 15.0% to
$499 million, representing 21.4% of total revenue
- Gross profit of $794 million and gross profit margin of 34.0%,
compared to $810 million and 33.9% in the prior year period,
respectively, and adjusted gross profit of $904 million and
adjusted gross profit margin of 38.8%, compared to $912 million and
38.2% in the prior year period, respectively
- Net loss of $140 million compared to the prior year period net
loss of $317 million
- Adjusted EBITDA of $556 million compared to the prior year
period of $537 million
- Diluted earnings (loss) per share of $(0.25) compared to
$(0.61) in the prior year period, and adjusted diluted earnings per
share of $0.48 compared to $0.43 per share in the prior year
period
- Repurchased $167 million of common stock under existing share
repurchase program
- Initiated dividend program with first payment in the fourth
quarter
Fourth Quarter 2024 Results
Revenue decreased 0.3% to $680 million, as compared to $682
million in the prior year period. The change was due to lower
project revenue, partially offset by higher net commercial
activity. Recurring revenues were 90.7% of total revenue.
Gross profit was $271 million, or 39.9% of revenue, compared to
$270 million, or 39.6% of revenue in the prior year period. The
increase in gross profit was primarily driven by productivity
savings.
Selling, general and administrative expenses improved $3 million
when compared to the prior year period. This was due to a reduction
in compensation expenses primarily related to non-cash share-based
awards, partially offset by restructuring costs and higher
professional fees incurred related to the sale and separation of
the Payroll & Professional Services business.
Interest expense of $20 million improved $11 million from the
prior year period. Interest expense benefited from the repricing of
the 2028 term loan and the $740 million debt pay down in the third
quarter.
The Company’s income from continuing operations before income
tax expense was $55 million compared to loss from continuing
operations before income tax expense of $96 million in the prior
year period. The improvement was primarily attributable to lower
interest expense as a result of the debt pay down, other income
recorded in conjunction with the transition services agreement
entered into with the purchaser of the divested Payroll &
Professional Services business and by the non-operating fair value
remeasurements of financial instruments and the tax receivable
agreement.
Full Year 2024 Results
Revenue decreased 2.3% to $2,332 million, as compared to $2,386
million in the prior year period. The change was due to lower
volumes, net commercial activity and project revenue, in addition
to the wind-down of the Hosted business operations. Excluding the
exited Hosted business, revenue decreased 1.2%. Recurring revenues
were 91.6% of total revenue.
Gross profit was $794 million, or 34.0% of revenue, compared to
$810 million, or 33.9% of revenue in the prior year period. The
decrease in gross profit was primarily driven by lower revenue as
noted above, partially offset by productivity savings.
Selling, general and administrative expenses improved $5 million
when compared to the prior year period. The change was due to
reduced compensation expenses primarily related to non-cash
share-based awards and lower restructuring costs, partially offset
by higher professional fees incurred related to the sale and
separation of the Payroll & Professional Services business.
Interest expense of $103 million improved $28 million from the
prior year period. Interest expense benefited from the repricing of
the 2028 term loan and the $740 million debt pay down in the third
quarter.
The Company’s loss from continuing operations before income tax
benefit was $148 million compared to loss from continuing
operations before income tax benefit of $337 million in the prior
year period. The improvement was primarily attributable to lower
interest expense as a result of the debt pay down and other income
recorded in conjunction with the transition services agreement
entered into with the purchaser of the divested Payroll &
Professional Services business and by the non-operating fair value
remeasurements of financial instruments and the tax receivable
agreement.
Balance Sheet Highlights
As of December 31, 2024, the Company’s cash and cash equivalents
balance was $343 million, total debt was $2,025 million and total
debt net of cash and cash equivalents was $1,682 million.
Subsequent Events
Complementing its existing stock repurchase program, the
Company’s Board of Directors has authorized the repurchase of up to
an additional $200 million of the Company’s Class A common stock,
providing a total amount authorized for repurchase of $281 million
after giving effect to the increase. Repurchases may be conducted
through open market purchases or privately negotiated transactions
in compliance with Rule 10b-18 under the Securities Exchange Act of
1934, as amended, including pursuant to Rule 10b5-1 trading plans.
The actual timing and amount of future repurchases are subject to
business and market conditions, corporate and regulatory
requirements, stock price, acquisition opportunities and other
factors. The stock repurchase program does not obligate Alight to
acquire any amount of common stock, and the program may be
suspended or terminated at any time by Alight at its discretion
without prior notice.
Business Outlook
“2025 revenue is impacted by the lagging effect of contract
losses from 2023 and early 2024,” continued Guilmette. “Absent
these historical losses, our revenue growth rate would be over two
points higher in 2025. Our operating trends today are vastly
improved with full-year 2024 retention rates up 8 points compared
to the prior year and that will play through favorably for revenue
later this year and into next year. Coupled with strong bookings
growth and visibility into contracted go-lives, we expect to see
revenue growth in the second half and moving forward. We plan to
share more detail of our long-range plan during our investor day,
scheduled for March 20th, 2025.”
The Company's 2025 outlook includes:
- Revenue of $2,318 million to $2,388 million.
- Adjusted EBITDA of $620 million to $645 million.
- Adjusted diluted EPS of $0.58 to $0.64.
- Free cash flow of $250 million to $285 million.
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 fourth quarter and
full year 2024 financial results is scheduled for today, February
20, 2025 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 for many of the world’s largest organizations and
over 35 million people and dependents. Through the administration
of employee benefits, Alight helps clients gain a benefits
advantage while building a healthy and financially secure workforce
by unifying the benefits ecosystem across health, wealth,
wellbeing, absence management and navigation. Our Alight Worklife®
platform empowers employers to gain a deeper understanding of their
workforce and engage them throughout life’s most important moments
with personalized benefits management and data-driven insights,
leading to increased employee wellbeing, engagement and
productivity. Learn more about the Alight Benefits Advantage™ at
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, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements include, but are not limited to,
statements related to our expected revenue under contract and ARR
bookings, statements related to our ability to execute on our
strategy, statements regarding our ability to enhance shareholder
value, statements regarding our expected quarterly dividend and
stock repurchase programs, and statements related to the
expectations regarding the performance and outlook for Alight’s
business, financial results, liquidity and capital resources,
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,” “would,”
“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 changes in monetary and fiscal policies,
competition in our industry, risks related to our ability to
successfully separate our Payroll and Professional Services
business, 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 actions or proposals from activist
stockholders, risks related to the use of certain operational
measures that may not have standard definitions, and risks related
to changes in regulation, including developments on the use of
artificial intelligence and machine learning. 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 February 29, 2024 and in the Quarterly Report on Form 10-Q filed
with the SEC on May 8, 2024 and on November 12, 2024, 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 and Other Information
The Company refers to certain non-GAAP financial measures in
this press release, including: Adjusted EBITDA From Continuing
Operations, Adjusted EBITDA Margin From Continuing Operations,
Adjusted Net Income From Continuing Operations, Adjusted Diluted
Earnings Per Share From Continuing Operations, Free Cash Flow,
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 From Continuing Operations, which is defined as
earnings from continuing operations 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 From Continuing Operations is defined as Adjusted EBITDA
From Continuing Operations divided by revenue. Both Adjusted EBITDA
From Continuing Operations and Adjusted EBITDA Margin From
Continuing Operations 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 From Continuing Operations, which is defined
as net income (loss) from continuing operations 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 From
Continuing Operations.
Adjusted Diluted Earnings Per Share From Continuing Operations
is defined as Adjusted Net Income From Continuing Operations
divided by the adjusted weighted-average number of shares of Alight
Inc. common stock, diluted. Adjusted Diluted Earnings Per Share
From Continuing Operations is used by us and our investors to
evaluate our core operating performance and to benchmark our
operating performance against our competitors.
Free Cash Flow is defined as cash provided by operating
activities net of capital expenditures.
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.
ARR bookings is an operational metric that represents
management’s estimate of new long-term agreements closed in the
period referenced. This metric does not reflect potential future
events such as unexpected client volume fluctuations, early
contract terminations or early contract renewals. Our metric may
differ from similar terms used by other companies and therefore
comparability may be limited.
Condensed Consolidated
Statements of Income (Loss)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
(in millions, except per share
amounts)
2024
2023
2024
2023
Revenue
$
680
$
682
$
2,332
$
2,386
Cost of services, exclusive of
depreciation and amortization
383
394
1,442
1,504
Depreciation and amortization
26
18
96
72
Gross Profit
271
270
794
810
Operating Expenses
Selling, general and administrative
151
154
585
590
Depreciation and intangible
amortization
76
76
299
301
Total Operating expenses
227
230
884
891
Operating Income (Loss) From Continuing
Operations
44
40
(90
)
(81
)
Other (Income) Expense
(Gain) Loss from change in fair value of
financial instruments
(3
)
21
(57
)
10
(Gain) Loss from change in fair value of
tax receivable agreement
(17
)
88
34
118
Interest expense
20
31
103
131
Other (income) expense, net
(11
)
(4
)
(22
)
(3
)
Total Other (income) expense, net
(11
)
136
58
256
Income (Loss) From Continuing
Operations Before Taxes
55
(96
)
(148
)
(337
)
Income tax expense (benefit)
26
25
(8
)
(20
)
Net Income (Loss) From Continuing
Operations
29
(121
)
(140
)
(317
)
Net Income (Loss) From Discontinued
Operations, Net of Tax
(21
)
(49
)
(19
)
(45
)
Net Income (Loss)
8
(170
)
(159
)
(362
)
Net income (loss) attributable to
noncontrolling interests
—
(8
)
(2
)
(17
)
Net Income (Loss) Attributable to
Alight, Inc.
$
8
$
(162
)
$
(157
)
$
(345
)
Earnings (Loss) Per Share
Basic and Diluted
Continuing operations
$
0.05
$
(0.23
)
$
(0.25
)
$
(0.61
)
Discontinued operations
$
(0.04
)
$
(0.10
)
$
(0.04
)
$
(0.09
)
Net Income (Loss)
$
0.01
$
(0.33
)
$
(0.29
)
$
(0.70
)
Condensed Consolidated Balance
Sheets
(Unaudited)
December 31,
2024
December 31,
2023
(in millions, except par values)
Assets
Current Assets
Cash and cash equivalents
$
343
$
324
Receivables, net
471
435
Other current assets
214
260
Fiduciary assets
239
234
Current assets of discontinued
operations
—
1,523
Total Current Assets
1,267
2,776
Goodwill
3,212
3,212
Intangible assets, net
2,855
3,136
Fixed assets, net
396
331
Deferred tax assets, net
41
38
Other assets
422
341
Long-term assets of discontinued
operations
—
948
Total Assets
$
8,193
$
10,782
Liabilities and Stockholders'
Equity
Liabilities
Current Liabilities
Accounts payable and accrued
liabilities
$
355
$
325
Current portion of long-term debt, net
25
25
Other current liabilities
273
233
Fiduciary liabilities
239
234
Current liabilities of discontinued
operations
—
1,370
Total Current Liabilities
892
2,187
Deferred tax liabilities
22
32
Long-term debt, net
2,000
2,769
Long-term tax receivable agreement
757
733
Financial instruments
51
109
Other liabilities
158
142
Long-term liabilities of discontinued
operations
—
68
Total Liabilities
$
3,880
$
6,040
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; 560.5 and 517.3 shares issued, and 531.7
and 510.9 shares outstanding as of December 31, 2024 and December
31, 2023, respectively
—
—
Class B Common Stock: $0.0001 par value,
20.0 shares authorized; 10.0 and 9.9 issued and outstanding as of
December 31, 2024 and December 31, 2023, respectively
—
—
Class V Common Stock: $0.0001 par value,
175.0 shares authorized; 0.5 and 29.0 issued and outstanding as of
December 31, 2024 and December 31, 2023, respectively
—
—
Class Z Common Stock: $0.0001 par value,
12.9 shares authorized; 0.0 and 3.4 issued and outstanding as of
December 31, 2024 and December 31, 2023, respectively
—
—
Treasury stock, at cost (28.8 and 6.4
shares at December 31, 2024 and December 31, 2023,
respectively)
(219
)
(52
)
Additional paid-in-capital
5,141
4,946
Retained deficit
(660
)
(503
)
Accumulated other comprehensive income
47
71
Total Alight, Inc. Stockholders'
Equity
$
4,309
$
4,462
Noncontrolling interest
4
280
Total Stockholders' Equity
$
4,313
$
4,742
Total Liabilities and Stockholders'
Equity
$
8,193
$
10,782
Condensed Consolidated Statements of
Cash Flows
(Unaudited)
Year Ended December
31,
(in millions)
2024
2023
Operating activities:
Net Income (Loss) From Continuing
Operations
$
(140
)
$
(317
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation
115
92
Intangible asset amortization
280
281
Noncash lease expense
11
13
Financing fee and premium amortization
—
(2
)
Share-based compensation expense
76
139
(Gain) loss from change in fair value of
financial instruments
(57
)
10
(Gain) loss from change in fair value of
tax receivable agreement
34
118
Release of unrecognized tax provision
(1
)
(1
)
Deferred tax expense (benefit)
(19
)
(9
)
Other
(1
)
2
Changes in operating assets and
liabilities:
Accounts receivable
(37
)
(20
)
Accounts payable and accrued
liabilities
31
(61
)
Other assets and liabilities
(99
)
2
Cash provided by operating activities -
continuing operations
193
247
Cash provided by operating activities -
discontinued operations
59
139
Net cash provided by operating
activities
$
252
$
386
Investing activities:
Net proceeds from sale of business
968
—
Acquisition of businesses, net of cash
acquired
—
1
Capital expenditures
(121
)
(140
)
Cash provided by (used in) investing
activities - continuing operations
847
(139
)
Cash used in investing activities -
discontinued operations
(11
)
(20
)
Net cash provided by (used in)
investing activities
$
836
$
(159
)
Financing activities:
Dividend payments
(21
)
—
Net increase (decrease) in fiduciary
liabilities
5
(21
)
Repayments to banks
(765
)
(25
)
Principal payments on finance lease
obligations
(27
)
(25
)
Payments on tax receivable agreements
(62
)
(7
)
Tax payment for shares/units withheld in
lieu of taxes
(59
)
(16
)
Deferred and contingent consideration
payments
—
(9
)
Repurchase of shares
(167
)
(40
)
Other financing activities
—
(1
)
Cash used for financing activities -
continuing operations
(1,096
)
(144
)
Cash provided by (used in) financing
activities - discontinued operations
22
(87
)
Net Cash provided by (used in)
financing activities
$
(1,074
)
$
(231
)
Effect of exchange rate changes on
cash, cash equivalents and restricted cash - continuing
operations
1
—
Effect of exchange rate changes on
cash, cash equivalents and restricted cash - discontinued
operations
(3
)
4
Net increase (decrease) in cash, cash
equivalents and restricted cash
12
—
Cash, cash equivalents and restricted
cash balances from:
Continuing operations - beginning of
year
$
558
$
482
Discontinued operations - beginning of
year(a)
1,201
1,277
Less discontinued operations - end of
period(a)
—
1,201
Less fiduciary cash transferred with
sale of business
1,189
—
Continuing operations - end of
period
$
582
$
558
(a)Reported as discontinued operations on
our consolidated balance sheets.
Reconciliation of Net Income (Loss)
From Continuing Operations to Adjusted EBITDA from Continuing
Operations (Unaudited)
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Net Income (Loss) From Continuing
Operations (1)
$
29
$
(121
)
$
(140
)
$
(317
)
Interest expense
20
31
103
131
Income tax expense (benefit)
26
25
(8
)
(20
)
Depreciation
32
23
115
92
Intangible amortization
70
71
280
281
EBITDA From Continuing
Operations
177
29
350
167
Share-based compensation
17
46
76
139
Transaction and integration expenses
(2)
25
13
82
29
Restructuring
18
10
63
73
(Gain) Loss from change in fair value of
financial instruments
(3
)
21
(57
)
10
(Gain) Loss from change in fair value of
tax receivable agreement
(17
)
88
34
118
Other
—
(1
)
8
1
Adjusted EBITDA From Continuing
Operations
$
217
$
206
$
556
$
537
Revenue
$
680
$
682
$
2,332
$
2,386
Adjusted EBITDA Margin From Continuing
Operations (3)
31.9
%
30.2
%
23.8
%
22.5
%
(1)
Adjusted EBITDA excludes the impact of
discontinued operations. Comparable periods have been recast to
exclude these impacts.
(2)
Transaction and integration expenses
primarily relate to acquisition and divestiture activities.
(3)
Adjusted EBITDA Margin From Continuing
Operations is defined as Adjusted EBITDA from Continuing Operations
as a percentage of revenue.
Reconciliation of Net Income (Loss)
From Continuing Operations to Adjusted Net Income and Adjusted
Diluted Earnings per Share From Continuing Operations
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(in millions, except share and per share
amounts)
Numerator:
Net Income (Loss) From Continuing
Operations Attributable to Alight, Inc.(1)
$
29
$
(113
)
$
(138
)
$
(300
)
Conversion of noncontrolling interest
—
(8
)
(2
)
(17
)
Intangible amortization
70
71
280
281
Share-based compensation
17
46
76
139
Transaction and integration
expenses(2)
25
13
82
29
Restructuring
18
10
63
73
(Gain) Loss from change in fair value of
financial instruments
(3
)
21
(57
)
10
(Gain) Loss from change in fair value of
tax receivable agreement
(17
)
88
34
118
Other
—
(1
)
8
1
Tax effect of adjustments(3)
(12
)
(54
)
(85
)
(100
)
Adjusted Net Income From Continuing
Operations
$
127
$
73
$
261
$
234
Denominator:
Weighted average shares outstanding -
basic
532,282,913
497,702,644
539,861,208
489,461,259
Dilutive effect of the exchange of
noncontrolling interest units
510,237
—
510,237
—
Dilutive effect of RSUs
1,287,553
—
—
—
Weighted average shares outstanding -
diluted
534,080,703
497,702,644
540,371,445
489,461,259
Exchange of noncontrolling interest
units(4)
28,080
35,520,344
518,412
44,569,341
Impact of unvested RSUs(5)
6,037,553
10,080,390
7,325,106
10,080,390
Adjusted shares of Class A Common Stock
outstanding - diluted(6)(7)
540,146,336
543,303,378
548,214,963
544,110,990
Basic (Net Loss) Earnings Per Share
From Continuing Operations
$
0.05
$
(0.23
)
$
(0.25
)
$
(0.61
)
Diluted (Net Loss) Earnings Per Share
From Continuing Operations
$
0.05
$
(0.23
)
$
(0.25
)
$
(0.61
)
Adjusted Diluted Earnings Per Share
From Continuing Operations
$
0.24
$
0.13
$
0.48
$
0.43
(1)
Excludes the impact of discontinued
operations. Comparable periods have been recast to exclude these
impacts.
(2)
Transaction and integration expenses
primarily relate to acquisition and divestiture activities.
(3)
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.
(4)
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.
(5)
Includes non-vested time-based restricted
stock units that were determined to be antidilutive for U.S. GAAP
diluted earnings per share purposes.
(6)
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 any 20 trading days within
a consecutive period of 30 trading days; (ii) 7.5 million shares
will be issued if the Company's Class A Common Stock VWAP is
>$15.00 for any 20 trading days within a consecutive period of
30 trading days. Both tranches have a seven-year duration.
(7)
Excludes approximately 10.9 million and
27.4 million performance-based units, which represents the gross
number of shares expected to vest based on achievement of
performance conditions as of December 31, 2024 and 2023,
respectively.
Gross Profit to Adjusted Gross Profit
Reconciliation by Segment
(Unaudited)
Three Months Ended December
31, 2024
($ in millions)
Employer Solutions
Other
Total
Gross Profit
$
271
$
—
$
271
Add: stock-based compensation
3
—
3
Add: depreciation and amortization
26
—
26
Adjusted Gross Profit
$
300
$
—
$
300
Gross Profit Margin
39.9
%
0.0
%
39.9
%
Adjusted Gross Profit Margin
44.1
%
0.0
%
44.1
%
Three Months Ended December
31, 2023
($ in millions)
Employer Solutions
Other
Total
Gross Profit
$
270
$
—
$
270
Add: stock-based compensation
9
—
9
Add: depreciation and amortization
18
—
18
Adjusted Gross Profit
$
297
$
—
$
297
Gross Profit Margin
39.6
%
0.0
%
39.6
%
Adjusted Gross Profit Margin
43.5
%
0.0
%
43.5
%
Year Ended December 31,
2024
($ in millions)
Employer Solutions
Other
Total
Gross Profit
$
794
$
—
$
794
Add: stock-based compensation
14
—
14
Add: depreciation and amortization
96
—
96
Adjusted Gross Profit
$
904
$
—
$
904
Gross Profit Margin
34.0
%
0.0
%
34.0
%
Adjusted Gross Profit Margin
38.8
%
0.0
%
38.8
%
Year Ended December 31,
2023
Employer Solutions
Other
Total
Gross Profit
$
812
$
(2
)
$
810
Add: stock-based compensation
30
—
30
Add: depreciation and amortization
70
2
72
Adjusted Gross Profit
$
912
$
—
$
912
Gross Profit Margin
34.4
%
(7.7
)%
33.9
%
Adjusted Gross Profit Margin
38.6
%
0.0
%
38.2
%
Other Select Financial Data
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
($ in millions)
2024
2023
2024
2023
Segment
Revenues
Employer Solutions:
Recurring
$
617
$
606
$
2,135
$
2,141
Project
63
76
197
219
Total Employer Solutions
680
682
2,332
2,360
Other (1)
—
—
—
26
Total revenue
$
680
$
682
$
2,332
$
2,386
Segment Gross
Profit
Employer Solutions
$
271
$
270
$
794
$
812
Other
—
—
—
(2
)
Total gross profit
$
271
$
270
$
794
$
810
Segment Gross
Margin
Employer Solutions
39.9
%
39.6
%
34.0
%
34.4
%
Other
0.0
%
0.0
%
0.0
%
(7.7
)%
Total gross margin
39.9
%
39.6
%
34.0
%
33.9
%
Segment Adjusted
Gross Profit
Employer Solutions
$
300
$
297
$
904
$
912
Other
—
—
—
—
Total adjusted gross profit
$
300
$
297
$
904
$
912
Segment Adjusted
Gross Margin Percent
Employer Solutions
44.1
%
43.5
%
38.8
%
38.6
%
Other
0.0
%
0.0
%
0.0
%
0.0
%
Total adjusted gross margin percent
44.1
%
43.5
%
38.8
%
38.2
%
Adjusted EBITDA From Continuing
Operations
$
217
$
206
$
556
$
537
Cash provided by continuing operating
activities
$
193
$
247
Other Key
Statistics
Recurring revenue, Ex. Other
$
617
$
606
$
2,135
$
2,141
BPaaS revenue
$
146
$
133
$
499
$
434
BPaaS revenue as % of total revenue
21.5
%
19.5
%
21.4
%
18.2
%
(1)
Other primarily attributable to the former
Hosted Segment.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250220632049/en/
Investors: Jeremy Cohen investor.relations@alight.com
Media: Mariana Fischbach mariana.fischbach@alight.com
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