NYSE$ALIT

Alight Solutions Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Alight's Q2 2024 results were reported with revenue decrease, BPaaS revenue increase, and strategic milestones achieved.

Alight reported a decrease in revenue by 4.1% to $538 million, while BPaaS revenue increased by 12.7% to $115 million. The company experienced a net loss of $4 million and an adjusted EBITDA of $105 million. Alight repurchased $80 million of common stock and announced a CEO succession plan.

  • Revenue decreased by 4.1% to $538 million.
  • BPaaS revenue grew by 12.7% to $115 million, representing 21.4% of total revenue.
  • Net loss was $4 million, compared to a net loss of $72 million in the prior year period.
  • The company repurchased $80 million of common stock.

Headline financials

Total Revenue

$538M

Previous: $806M-33.3%
EPS

$0.04

Previous: $0.14-71.4%
Adjusted Gross Profit

$196M

No prior period
Adjusted Gross Profit Margin

36.4%

No prior period
Adjusted EBITDA

$105M

No prior period
Adjusted EBITDA Margin

19.5%

No prior period
Capital Expenditures

-$67M

Previous: -$89M+24.7%
Free Cash Flow

-$44M

Previous: -$156M+71.8%
Net Income

$23M

Previous: -$67M+134.3%
Operating Income

-$52M

Previous: -$21M-147.6%
Gross Profit

$167M

Previous: $257M-35.0%
Cash & Equivalents

$183M

Previous: $271M-32.5%
Total Assets

$10.5B

Previous: $10.8B-2.8%
Stock-Based Comp

$20M

Previous: $38M-47.4%

Revenue & EPS history

Alight · Revenue · Quarterly

$538M

Q2 2024-33.3%vs Q2 2023
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

Alight expects revenue between $1.207 billion and $1.232 billion, BPaaS revenue between $265 million and $275 million, adjusted EBITDA between $326 million and $351 million, adjusted diluted EPS between $0.31 and $0.36, and an operating cash flow conversion rate of 55-65% for the second half of 2024.

Tailwinds

  • Revenue of $1.207 billion to $1.232 billion.
  • BPaaS Revenue of $265 to $275 million.
  • Adjusted EBITDA of $326 million to $351 million.
  • Adjusted EBITDA margin range of 26.5% to 29.1%.
  • Adjusted diluted EPS of $0.31 to $0.36.

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 2024

Historical avgQ2 2024

-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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