NASDAQ$CNDT

Conduent Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Conduent's Q4 2021 financial results were announced, showing a slight decrease in revenue but a strong Net ARR Activity metric.

Conduent's Q4 2021 revenue was $1,048 million, a slight decrease compared to the previous year. The Net ARR Activity Metric was strong at $128 million, and the company achieved several milestones in operational excellence and client satisfaction.

  • Revenue for Q4 2021 was $1,048 million.
  • Adjusted EBITDA margin for Q4 2021 was 10.9%.
  • Annual Recurring Revenue (ARR) signings for Q4 2021 were $111 million.
  • Net ARR Activity Metric (TTM) for Q4 2021 was $128 million, up 113% versus Q4 2020.

Headline financials

Total Revenue

$1.05B

Previous: $1.06B-0.7%
EPS (adj)

$0.13

Previous: $0.20-35.0%
Capital Expenditures

$28M

Previous: $28M+0.0%
Free Cash Flow

$39M

Previous: $128M-69.5%
Net Income

-$40M

Previous: -$11M-263.6%
Operating Income

-$54M

Previous: -$11M-390.9%
Gross Profit

$245M

Previous: $252M-2.8%
Cash & Equivalents

$415M

Previous: $450M-7.8%
Total Assets

$4.04B

Previous: $4.26B-5.2%
Stock-Based Comp

$7M

Previous: $6M+16.7%

Revenue & EPS history

Conduent · Revenue · Quarterly

$1.05B

Q4 2021-0.7%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Conduent provided its FY 2022 and 2023 outlook, expecting revenue between $3,825M - $3,975M for FY 2022 and growth between 1% - 4% for FY 2023.

Tailwinds

  • Focus on execution and efficiency
  • Driving improved client and end-user experiences
  • Client satisfaction ratings have increased for the third consecutive year
  • Contributing to new client wins and better retention
  • Demonstrating growth in 2022 and beyond

Headwinds

  • Tapering of government payment volumes in the fourth quarter
  • Adjusted EBITDA Margin of 10.9% due to tapering of government payment volumes
  • Anticipated revenue between $3,825M - $3,975M for FY 2022
  • Adjusted EBITDA margin between 9.5% - 10.5% for FY 2022
  • Adjusted Free Cash Flow as a percentage of Adjusted EBITDA approximately 15% in 2022

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 Q4 2021

Historical avgQ4 2021

-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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