NYSE$ALIT

Alight Solutions Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Alight reported third quarter results, achieving revenue growth and demonstrating the value of its Alight Worklife platform.

Alight reported an 8.7% increase in revenue to $750 million, driven by Employer Solutions. BPaaS revenue grew by 55.7%. The company incurred a net loss of $45 million compared to a net loss of $120 million in the prior year. The company is reaffirming its full-year 2022 outlook.

  • Revenue grew by 8.7% to $750 million.
  • Employer Solutions revenue increased by 9.9%.
  • BPaaS revenue grew by 55.7%, representing 20.1% of total revenue.
  • The company is reaffirming its full-year 2022 outlook.

Headline financials

Total Revenue

$750M

Previous: $690M+8.7%
EPS (adj)

$0.12

Previous: $0.18-33.3%
Capital Expenditures

-$115M

Previous: -$27M-325.9%
Free Cash Flow

-$152M

Previous: -$134M-13.4%
Net Income

-$37M

Previous: -$107M+65.4%
Operating Income

-$50M

Previous: $25M-300.0%
Gross Profit

$212M

Previous: $238M-10.9%
Cash & Equivalents

$304M

Previous: $769M-60.5%
Total Assets

$10.9B

Previous: $11B-0.5%
Stock-Based Comp

$54M

Previous: $15M+260.0%

Revenue & EPS history

Alight · Revenue · Quarterly

$750M

Q3 2022+8.7%vs Q3 2021
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 is reaffirming 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 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 Q3 2022

Historical avgQ3 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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