NASDAQ$CNDT

Conduent Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Conduent's Q4 2022 financial results were reported, showing revenue consistent with expectations despite economic uncertainty.

Conduent's Q4 2022 revenue was $986 million. The company's results were consistent with expectations despite economic uncertainty. Annual Contract Value sales were up considerably, particularly in the Government Healthcare business.

  • Q4 revenue was $986 million, while full year revenue was $3,858 million.
  • Pre-tax income for Q4 was $(365) million, impacted by a goodwill impairment charge of $358 million.
  • New business signings ACV for Q4 reached $194 million.
  • Net ARR Activity Metric (TTM) for Q4 was $114 million.

Headline financials

Total Revenue

$986M

Previous: $1.05B-5.9%
EPS (adj)

$0.01

Previous: $0.13-92.3%
Adjusted EBITDA Margin

9.6%

No prior period
Capital Expenditures

$30M

Previous: $28M+7.1%
Free Cash Flow

$8M

Previous: $39M-79.5%
Net Income

-$333M

Previous: -$40M-732.5%
Operating Income

-$365M

Previous: -$54M-575.9%
Gross Profit

$204M

Previous: $245M-16.7%
Cash & Equivalents

$582M

Previous: $415M+40.2%
Total Assets

$3.57B

Previous: $4.04B-11.5%
Stock-Based Comp

$6M

Previous: $7M-14.3%

Revenue & EPS history

Conduent · Revenue · Quarterly

$986M

Q4 2022-5.9%vs Q4 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Conduent provided its FY 2023 outlook, with adjusted revenue expected to be between $3.7 billion and $3.8 billion and adjusted EBITDA margin between 10.0% and 10.8%.

Tailwinds

  • Expects to transition to more normal retention rates.
  • Expects to exit the year on a company-wide growth trajectory.
  • Adjusted EBITDA Margin between 10.0% - 10.8%
  • Adjusted Free Cash Flow as % of Adj. EBITDA 15% - 20%
  • Outstanding US Federal tax refund of $29M expected to be received in 2023.

Headwinds

  • Revenue and EBITDA results affected by foreign exchange rates, inflation-induced volume degradation, and interest rate increases.
  • Full year 2022 Revenue and Adjusted Revenue were lower than the prior year period, primarily driven by significant, non-recurring stimulus payments volume in our Government Services business in the prior year, recessionary-related volume reductions in our Commercial business, as well as unfavorable foreign exchange impact, particularly from the Euro and British pound.
  • Adjusted Revenue $3,700M - $3,800M
  • FY23 Outlook for Adjusted Free Cash Flow is provided as a factor of expected Adjusted EBITDA, and such outlook is only available on a non-GAAP basis
  • The company is unable without unreasonable efforts to predict with reasonable certainty the totality or ultimate outcome or occurrence of these adjustments for the forward-looking period, which can be dependent on future events that may not be reliably predicted.

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 2022

Historical avgQ4 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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