NASDAQ$CNDT

Conduent Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Conduent's adjusted revenue decreased due to lower stimulus payments, unfavorable exchange rates, and lost business, while adjusted EBITDA also declined due to lower stimulus and lost business.

Conduent reported a decline in adjusted revenue and adjusted EBITDA for Q2 2022. The revenue decrease was primarily driven by lower non-recurring stimulus payments in the Government Services segment, unfavorable exchange rate movements, and lost business from prior years. The decline in adjusted EBITDA was attributed to the impact of lower government stimulus and lost business from prior years.

  • Adjusted revenue was $928 million, down 8.0% year-over-year (6.9% in constant currency).
  • Adjusted EBITDA was $87 million, with a margin of 9.4%, a decrease of 26.9% year-over-year.
  • New business signings ACV reached $180 million.
  • Net ARR Activity Impact (TTM) was $104 million.

Headline financials

Total Revenue

$928M

Previous: $1.03B-9.6%
EPS (adj)

$0.03

Previous: $0.20-85.0%
Capital Expenditures

-$51M

Previous: -$39M-30.8%
Free Cash Flow

-$51M

Previous: -$27M-88.9%
Net Income

$0.00

Previous: $12M-100.0%
Operating Income

$134M

Previous: $75M+78.7%
Gross Profit

$201M

Previous: $254M-20.9%
Cash & Equivalents

$519M

Previous: $397M+30.7%
Total Assets

$3.9B

Previous: $4.12B-5.4%
Stock-Based Comp

$7M

Previous: $6M+16.7%

Revenue & EPS history

Conduent · Revenue · Quarterly

$928M

Q2 2022-9.6%vs Q2 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Conduent provided its FY 2022 outlook, with adjusted revenue expected to be between $3.85 billion and $3.95 billion and adjusted EBITDA margin between 10.0% and 10.5%.

Tailwinds

  • New business ramp positions Commercial segment for full year growth in 2022
  • Deal pipeline positions Commercial segment for full year growth in 2022
  • Better client retention positions Commercial segment for full year growth in 2022
  • Interest rate increases positions Commercial segment for full year growth in 2022
  • New business ramp positions Transportation segment for full year growth in 2022

Headwinds

  • Volumes positions Transportation segment for full year growth in 2022
  • Deal pipeline positions Transportation segment for full year growth in 2022
  • Non-recurring payments run-off creates a large grow-over challenge in Government segment in 2022
  • Decline driven by substantially lower non-recurring stimulus payments volume in the Government Services business
  • Decline driven by unfavorable exchange rate movement

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-1.0%

Avg return

Earnings day

-1.9%

Avg return

5 days after

-0.7%

Avg return

30 days after

53%

21 / 40 earnings

Positive

+84.8%

Q2 2020

Best reaction

-40.0%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%-21.0%-23.9%
Q4 2025+0.4%+3.0%-3.7%
Q3 2025-20.1%-14.0%-12.2%
Q1 2025-3.0%+12.2%+29.8%
Q4 2024-6.2%-4.3%-28.7%
Q3 2024+10.0%+15.6%+8.6%
Q2 2024-14.0%-15.1%+1.1%
Q1 2024+16.8%+22.5%+11.1%
Q4 2023+8.8%+7.4%-3.5%
Q3 2023-18.2%-22.6%-0.6%
Q2 2023+5.0%-3.2%-7.6%
Q1 2023-17.2%-13.3%-1.8%
Q4 2022-3.7%-3.2%-23.3%
Q3 2022-7.0%-9.0%+1.0%
Q2 2022-10.3%-6.9%-13.7%
Q1 2022-15.5%-16.9%-2.2%
Q4 2021+0.0%+2.1%+0.9%
Q3 2021-12.7%-14.8%-26.6%
Q2 2021+10.5%+9.5%+18.4%
Q1 2021+2.8%+2.7%+8.4%
Q4 2020-10.1%-10.6%+25.3%
Q3 2020+7.8%+8.0%+21.1%
Q2 2020+84.8%+80.8%+65.3%
Q1 2020+2.3%-11.6%+32.7%
Q4 2019-16.8%-26.9%-58.0%
Q3 2019+10.6%-1.3%-1.8%
Q2 2019-23.5%-20.9%-21.9%
Q1 2019-40.0%-33.2%-29.5%
Q4 2018+5.6%+3.9%-6.3%
Q3 2018-31.2%-27.9%-37.8%
Q2 2018+6.5%+6.1%+21.9%
Q1 2018-2.1%-1.1%+4.1%
Q4 2017+14.3%+19.0%+19.3%
Q3 2017+1.3%+1.7%-3.8%
Q2 2017+8.4%+7.9%+1.3%
Q1 2016+1.2%-1.5%-1.7%
Q1 2017-3.8%-2.6%-5.4%
Q4 2014+1.7%+2.8%+4.9%
Q2 2016+1.7%+2.8%+4.9%
Q4 2016+14.3%-0.2%+4.1%
Q4 2015
Q3 2016
Q3 2015
Q2 2015
Q1 2015

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