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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%.
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