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Jun 30, 2023

Alight Q2 2023 Earnings Report

Alight's financial performance in Q2 2023 was marked by double-digit growth in revenue, profitability, and operating cash flow.

Key Takeaways

Alight reported a strong second quarter with a 12.7% increase in revenue, driven by Employer Solutions. The company's transformational progress and stable core business provide long-term visibility, with over 90% of 2023 revenue under contract and $2.5 billion of backlog for 2024.

Revenue increased 12.7% year-over-year to $806 million.

Over 90% of projected 2023 revenue is under contract.

Business Process as a Service (BPaaS) revenue grew 39.8% to $179 million, representing 22.2% of total revenue.

Gross profit was $257 million, with a gross profit margin of 31.9%.

Total Revenue
$806M
Previous year: $715M
+12.7%
EPS
$0.14
Previous year: $0.12
+16.7%
Gross Profit
$257M
Previous year: $219M
+17.4%
Cash and Equivalents
$271M
Previous year: $272M
-0.4%
Free Cash Flow
$46M
Previous year: $61M
-24.6%
Total Assets
$10.8B
Previous year: $10.9B
-1.0%

Alight

Alight

Alight Revenue by Segment

Forward Guidance

The Company's 2023 outlook includes:

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 $700 million to $900 million.
  • Operating Cash Flow Conversion rate of 45-55%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income