NYSE$ALIT
Alight Solutions Inc. · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Alight reported fourth quarter and full year 2023 results, demonstrating revenue growth and strategic advancements.
Alight, Inc. reported a 1.9% increase in revenue for Q4 2023, reaching $960 million. BPaaS revenue grew by 29.8% to $222 million. The company's gross profit was $369 million, and adjusted EBITDA grew by 11.6% to $270 million. A strategic portfolio review has been authorized to accelerate the platform and wellbeing strategy.
- Revenue increased by 1.9% to $960 million compared to the prior year period.
- Business Process as a Service (BPaaS) revenue grew 29.8% to $222 million, representing 23.1% of total revenue.
- Gross profit reached $369 million, with a gross profit margin of 38.4%.
- Adjusted EBITDA increased by 11.6% to $270 million over the prior year period.
Headline financials
Revenue & EPS history
Alight · Revenue · Quarterly
$960M
Revenue by segment
Alight · $179M total across 1 segment · Q2 2023
- BPaaS Revenue$179M+39.8%100.0%
Forward guidance
Alight expects BPaaS to be the high-revenue growth category at over 15% and the driver of the overall trajectory. Total annual revenue growth is expected to be 6-8% through the mid-term, we expect 2024 to be slightly lower at 4-6% that ramps throughout the year driven by the timing of our 2023 bookings, our exit from the Hosted business, and our first half compare.
Tailwinds
- BPaaS Revenue of over $870 million (growth of 15%+) expected.
- Adjusted EBITDA of $800 million to $815 million expected.
- Adjusted diluted EPS of $0.72 to $0.77 expected.
- Operating Cash Flow Conversion rate of 55-65% expected.
- The business has $3.0 billion revenue under contract for 2024
Headwinds
- Total annual revenue growth is expected to be 6-8% through the mid-term, we expect 2024 to be slightly lower at 4-6%
- Slight decline in Employer Solutions recurring revenue as a result of the isolated impact related to a client in the Retiree Health business.
- Net loss of $86 million compared to net loss of $66 million in the prior year period driven by a $136 million increase in non-cash charges.
- Company’s loss before income tax benefit was $116 million compared to loss before income tax expense of $7 million in the prior year period.
- Strategic portfolio review to accelerate platform and wellbeing strategy.
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 Q4 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
| Quarter | Report date | Reaction (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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