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Mar 31, 2023

Alight Q1 2023 Earnings Report

Alight reported Q1 2023 results with total revenue growth of nearly 15% and Employer Solutions revenue growth of over 16%.

Key Takeaways

Alight achieved a key milestone in the first quarter surpassing $1.5 billion in cumulative BPaaS bookings, nine months earlier than original projections. The company reaffirmed its full-year 2023 financial guidance, expecting double-digit growth, margin expansion, and improved operating cash flow conversion.

Revenue increased 14.6% over the prior year period to $831 million.

Business Process as a Service (BPaaS) revenue grew 50.0% to $171 million, representing 20.6% of total revenue.

BPaaS bookings on a total contract value basis were $75 million, bringing cumulative BPaaS bookings above $1.5 billion.

Gross profit was $257 million and gross margin of 30.9%.

Total Revenue
$831M
Previous year: $725M
+14.6%
EPS
$0.13
Previous year: $0.12
+8.3%
Gross Profit
$257M
Previous year: $223M
+15.2%
Cash and Equivalents
$239M
Previous year: $326M
-26.7%
Free Cash Flow
$27M
Previous year: -$22M
-222.7%
Total Assets
$10.9B
Previous year: $11.2B
-2.7%

Alight

Alight

Alight Revenue by Segment

Forward Guidance

The Company is reaffirming its 2023 outlook:

Positive Outlook

  • Revenue of $3.47 billion to $3.51 billion (growth of 11% to 12%).
  • Adjusted EBITDA of $735 million to $750 million.
  • Adjusted diluted EPS of $0.62 to $0.67.
  • BPaaS total contract value bookings of $900 million to $1.0 billion.
  • Operating Cash Flow Conversion rate of 45-55%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income