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Sep 30, 2020
Conduent Q3 2020 Earnings Report
Conduent's Q3 2020 financial results were strong, driven by better-than-expected revenue in the Government and Transportation segments, and significant new business signings.
Key Takeaways
Conduent reported strong Q3 2020 results, exceeding expectations for revenue and Adjusted EBITDA. The company saw a 100% year-over-year increase in new business signings and is on track to exceed its cost reduction target. Revenue was $1.041 billion, a decrease of 5.2% year-over-year, but the company's adjusted EBITDA increased by 11.0% year-over-year.
Revenue and Adjusted EBITDA results were well above expectations.
New business signings were strong, with a Total Contract Value of $468M, up 100% year-over-year.
Annual Recurring Revenue of signings reached $96M, a 35% increase year-over-year.
The company is on track to exceed the high end of its previous FY 2020 cost reduction target range of $120M-$140M.
Forward Guidance
Conduent anticipates FY 2020 revenue to be down between 6.4% and 7.4% with an Adjusted EBITDA margin between 11.25% and 11.75%, and an Adjusted Free Cash Flow conversion of approximately 20%.
Positive Outlook
- The midpoints of these ranges are in line to slightly above the initial, pre-COVID-19 guidance ranges that we provided earlier in the year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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