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Dec 31, 2022
Conduent Q4 2022 Earnings Report
Conduent's Q4 2022 financial results were reported, showing revenue consistent with expectations despite economic uncertainty.
Key Takeaways
Conduent's Q4 2022 revenue was $986 million. The company's results were consistent with expectations despite economic uncertainty. Annual Contract Value sales were up considerably, particularly in the Government Healthcare business.
Q4 revenue was $986 million, while full year revenue was $3,858 million.
Pre-tax income for Q4 was $(365) million, impacted by a goodwill impairment charge of $358 million.
New business signings ACV for Q4 reached $194 million.
Net ARR Activity Metric (TTM) for Q4 was $114 million.
Forward Guidance
Conduent provided its FY 2023 outlook, with adjusted revenue expected to be between $3.7 billion and $3.8 billion and adjusted EBITDA margin between 10.0% and 10.8%.
Positive Outlook
- Expects to transition to more normal retention rates.
- Expects to exit the year on a company-wide growth trajectory.
- Adjusted EBITDA Margin between 10.0% - 10.8%
- Adjusted Free Cash Flow as % of Adj. EBITDA 15% - 20%
- Outstanding US Federal tax refund of $29M expected to be received in 2023.
Challenges Ahead
- Revenue and EBITDA results affected by foreign exchange rates, inflation-induced volume degradation, and interest rate increases.
- Full year 2022 Revenue and Adjusted Revenue were lower than the prior year period, primarily driven by significant, non-recurring stimulus payments volume in our Government Services business in the prior year, recessionary-related volume reductions in our Commercial business, as well as unfavorable foreign exchange impact, particularly from the Euro and British pound.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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