NYSE$ALIT

Alight Solutions Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Alight's revenue grew, driven by Employer Solutions and BPaaS, with increased net income and strategic investments.

Alight reported a 6.4% increase in revenue to $715 million, driven by a 7.9% growth in Employer Solutions revenue and a 36.2% surge in BPaaS revenue. Net income rose to $52 million, a significant improvement from the prior year's net loss. The company is focused on expanding its Alight Worklife platform and securing new client wins, while reiterating its full-year 2022 outlook and authorizing a $100 million stock repurchase program.

  • Revenue grew by 6.4% to $715 million, with Employer Solutions revenue increasing by 7.9%.
  • Net income improved to $52 million, compared to a net loss of $4 million in the previous year.
  • BPaaS revenue grew significantly by 36.2%, representing 17.9% of total revenue.
  • The company authorized a $100 million stock repurchase program.

Headline financials

Total Revenue

$715M

Previous: $672M+6.4%
EPS (adj)

$0.12

Previous: -$33.65+100.4%
Capital Expenditures

-$79M

No prior period
Free Cash Flow

-$28M

No prior period
Net Income

$51M

No prior period
Operating Income

-$23M

No prior period
Gross Profit

$219M

No prior period
Cash & Equivalents

$272M

No prior period
Total Assets

$10.9B

No prior period
Stock-Based Comp

$42M

No prior period

Revenue & EPS history

Alight · Revenue · Quarterly

$715M

Q2 2022+6.4%vs Q2 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Alight · $128M total across 1 segment · Q2 2022

  • BPaaS Revenue
    $128M+36.2%

Forward guidance

The Company is affirming its full-year 2022 outlook and providing an outlook for the second half of 2022 to provide better insight into the seasonality of the business.

Tailwinds

  • Revenue of $3.09 to $3.12 billion (growth of 6% to 7%).
  • Adjusted EBITDA in the range of $650 to $662 million.
  • Adjusted diluted EPS of $0.54 to $0.60.
  • BPaaS total contract value bookings of $680 to $700 million.
  • For the third quarter of 2022, revenue of $735 to $750 million and Adjusted EBITDA of $115 to $125 million.

Headwinds

  • For the fourth quarter of 2022, revenue of $915 to $930 million and Adjusted EBITDA of $245 to $255 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 Q2 2022

Historical avgQ2 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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