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Mar 31, 2022
Conduent Q1 2022 Earnings Report
Conduent's financial performance in Q1 2022 showed mixed results with revenue decline offset by a significant increase in net income, driven by strategic divestitures and strong new business sales.
Key Takeaways
Conduent's Q1 2022 results revealed a decrease in revenue compared to the previous year, primarily due to lower non-recurring stimulus payments in the Government Services sector. However, net income saw a substantial increase, boosted by gains from the sale of the Midas divestiture and insurance recoveries. New business sales demonstrated strong growth, particularly in the Transportation segment.
Revenue was $967 million, reflecting a 5.9% decrease year-over-year.
Net income significantly increased to $136 million, compared to a loss of $11 million in the same quarter last year.
Adjusted EBITDA stood at $107 million with a margin of 11.1%, benefiting from a one-time recovery of $14 million in defense costs.
New business TCV signings increased by 32% to $464 million, with new business ARR up 14% to $107 million.
Forward Guidance
Conduent provided its FY 2022 outlook, anticipating adjusted revenue between $3.825B and $3.975B, adjusted EBITDA margin between 9.5% and 10.5%, and adjusted free cash flow as approximately 15% of adjusted EBITDA.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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