NYSE$ALIT

Alight Solutions Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Alight's Q3 2024 results exceeded expectations with strong revenue and profitability, driven by momentum in go-to-market strategy and stronger cash flow, enabling the initiation of a quarterly dividend program.

Alight's Q3 2024 revenue reached $555 million. BPaaS revenue grew by 18.6% to $121 million. The company initiated a quarterly dividend program and repurchased $75 million of common stock.

  • Revenue decreased slightly by 0.4% to $555 million.
  • BPaaS revenue increased by 18.6% to $121 million, representing 21.8% of total revenue.
  • Gross profit increased to $174 million with a margin of 31.4%.
  • The company repurchased $75 million of common stock.

Headline financials

Total Revenue

$555M

Previous: $813M-31.7%
EPS

-$0.14

Previous: $0.14-200.0%
Adjusted Gross Profit

$200M

No prior period
Adjusted Gross Profit Margin

36.0%

No prior period
Adjusted EBITDA

$118M

No prior period
Adjusted EBITDA Margin

21.3%

No prior period
Capital Expenditures

-$95M

Previous: -$127M+25.2%
Free Cash Flow

-$169M

Previous: -$175M+3.4%
Net Income

-$74M

Previous: -$48M-54.2%
Operating Income

-$42M

Previous: -$4M-950.0%
Gross Profit

$174M

Previous: $257M-32.3%
Cash & Equivalents

$300M

Previous: $276M+8.7%
Total Assets

$8.27B

Previous: $10.7B-23.1%
Stock-Based Comp

$11M

Previous: $35M-68.6%

Revenue & EPS history

Alight · Revenue · Quarterly

$555M

Q3 2024-31.7%vs Q3 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

The Company's fourth quarter of 2024 outlook includes Revenue of $665 million to $685 million, BPaaS Revenue of $144 to $154 million, Adjusted EBITDA of $208 million to $233 million, Adjusted EBITDA margin range of 30.4% to 35.0%, Adjusted diluted EPS of $0.22 to $0.27, and Operating Cash Flow Conversion adjusted for separation costs of approximately 60%.

Tailwinds

  • Revenue of $665 million to $685 million.
  • BPaaS Revenue of $144 to $154 million.
  • Adjusted EBITDA of $208 million to $233 million.
  • Adjusted EBITDA margin range of 30.4% to 35.0%.
  • Adjusted diluted EPS of $0.22 to $0.27.

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 2024

Historical avgQ3 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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