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Sep 30, 2023

Alight Q3 2023 Earnings Report

Alight's Q3 2023 earnings reflected high single-digit revenue growth and double-digit profitability expansion, driven by the transformation into a platform company.

Key Takeaways

Alight reported an 8.4% increase in revenue to $813 million, driven by Employer Solutions and Professional Services. BPaaS bookings grew by 26% to $262 million. The company reaffirmed its 2023 and mid-term guidance.

Revenue increased 8.4% year-over-year to $813 million.

BPaaS revenue grew 21.9% to $184 million, representing 22.6% of total revenue.

BPaaS bookings increased 26.0% to $262 million compared to the prior year period.

Gross profit was $257 million, with a gross profit margin of 31.6%.

Total Revenue
$813M
Previous year: $750M
+8.4%
EPS
$0.14
Previous year: $0.12
+16.7%
Gross Profit
$257M
Previous year: $212M
+21.2%
Cash and Equivalents
$276M
Previous year: $304M
-9.2%
Free Cash Flow
$51M
Previous year: $47M
+8.5%
Total Assets
$10.7B
Previous year: $10.9B
-1.4%

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 $0.65 to $0.69 (versus $0.62 to $0.67 prior).
  • 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