NYSE$ALIT

Alight Solutions Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Alight reported first quarter 2022 results with revenue growth and improved net loss.

Alight reported a 5.2% increase in revenue to $725 million and an improved net loss of $(13) million. BPaaS revenue grew by 22.6% to $114 million, and BPaaS bookings more than tripled to $122 million. The company is reiterating its 2022 revenue and Adjusted EBITDA outlook and 2023 10% revenue growth target.

  • Revenue increased by 5.2% to $725 million.
  • Net loss improved to $(13) million from $(21) million.
  • BPaaS revenue grew by 22.6%, representing 15.7% of total revenue.
  • BPaaS bookings more than tripled to $122 million.

Headline financials

Total Revenue

$725M

Previous: $689M+5.2%
EPS (adj)

$0.12

Previous: -$0.05+355.3%
Capital Expenditures

-$41M

No prior period
Free Cash Flow

-$52M

No prior period
Net Income

-$11M

Previous: -$21M+47.6%
Operating Income

-$2M

Previous: $46M-104.3%
Gross Profit

$223M

Previous: $218M+2.3%
Cash & Equivalents

$326M

No prior period
Total Assets

$11.2B

No prior period
Stock-Based Comp

$33M

No prior period

Revenue & EPS history

Alight · Revenue · Quarterly

$725M

Q1 2022+5.2%vs Q1 2021
Beat estimate in 3 of 9 quarters(33%)
ActualEstimate

Revenue by segment

Alight · $114M total across 1 segment · Q1 2022

  • BPaaS Revenue
    $114M+22.6%

Forward guidance

The Company is affirming its full-year 2022 outlook

Tailwinds

  • Revenue of $3.09 to $3.12 billion (growth of 6% to 7%).
  • Adjusted EBITDA in the range of $650 million to $662 million.
  • Adjusted diluted EPS of $0.54 to $0.60.
  • BPaaS total contract value bookings of $680 to $700 million.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.5%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-3.2%

Avg return

30 days after

57%

13 / 23 earnings

Positive

+12.9%

Q3 2024

Best reaction

-39.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.7%+14.7%-9.4%
Q4 2025-39.4%-41.4%-47.9%
Q3 2025-7.1%-15.9%-24.4%
Q1 2025+7.1%+12.6%+4.4%
Q4 2024+3.7%+4.3%-9.3%
Q3 2024+12.9%+3.6%-3.4%
Q2 2024-1.6%-0.3%+4.2%
Q1 2024-17.2%-19.9%-19.3%
Q4 2023-6.9%-3.8%+3.7%
Q3 2023+10.7%+7.8%+19.7%
Q2 2023-12.6%-13.3%-21.9%
Q1 2023-5.6%-8.6%-0.6%
Q4 2022+4.5%+2.7%-9.2%
Q3 2022+11.9%+20.5%+14.8%
Q2 2022+4.4%+8.9%+1.6%
Q1 2022-8.9%-0.6%+4.3%
Q4 2021+0.3%+3.4%-0.6%
Q3 2021+6.1%-0.4%-6.5%
Q2 2021+7.1%+1.6%+25.0%
Q1 2021+1.5%+3.1%+0.2%
Q4 2020+0.3%-4.2%-2.2%
Q3 2020+1.5%+0.5%+3.2%
Q2 2020-0.9%+1.2%-0.9%
Q1 2020
Q4 2018
Q4 2017

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