NYSE$ALIT

Alight Solutions Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Alight's financial performance in Q2 2023 was marked by double-digit growth in revenue, profitability, and operating cash flow.

Alight reported a strong second quarter with a 12.7% increase in revenue, driven by Employer Solutions. The company's transformational progress and stable core business provide long-term visibility, with over 90% of 2023 revenue under contract and $2.5 billion of backlog for 2024.

  • Revenue increased 12.7% year-over-year to $806 million.
  • Over 90% of projected 2023 revenue is under contract.
  • Business Process as a Service (BPaaS) revenue grew 39.8% to $179 million, representing 22.2% of total revenue.
  • Gross profit was $257 million, with a gross profit margin of 31.9%.

Headline financials

Total Revenue

$806M

Previous: $715M+12.7%
EPS (adj)

$0.14

Previous: $0.12+16.7%
Capital Expenditures

-$89M

Previous: -$79M-12.7%
Free Cash Flow

-$156M

Previous: -$28M-457.1%
Net Income

-$67M

Previous: $51M-231.4%
Operating Income

-$21M

Previous: -$23M+8.7%
Gross Profit

$257M

Previous: $219M+17.4%
Cash & Equivalents

$271M

Previous: $272M-0.4%
Total Assets

$10.8B

Previous: $10.9B-1.0%
Stock-Based Comp

$38M

Previous: $42M-9.5%

Revenue & EPS history

Alight · Revenue · Quarterly

$806M

Q2 2023+12.7%vs Q2 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Alight · $179M total across 1 segment · Q2 2023

  • BPaaS Revenue
    $179M+39.8%

Forward guidance

The Company's 2023 outlook includes:

Tailwinds

  • Revenue of $3.47 billion to $3.51 billion (growth of 11% to 12%).
  • Adjusted EBITDA of $735 million to $750 million.
  • Adjusted diluted EPS of $0.62 to $0.67.
  • BPaaS total contract value bookings of $700 million to $900 million.
  • Operating Cash Flow Conversion rate of 45-55%.

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 2023

Historical avgQ2 2023

-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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