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Sep 30, 2024

Alight Q3 2024 Earnings Report

Alight's Q3 2024 results exceeded expectations with strong revenue and profitability, driven by momentum in go-to-market strategy and stronger cash flow, enabling the initiation of a quarterly dividend program.

Key Takeaways

Alight's Q3 2024 revenue reached $555 million. BPaaS revenue grew by 18.6% to $121 million. The company initiated a quarterly dividend program and repurchased $75 million of common stock.

Revenue decreased slightly by 0.4% to $555 million.

BPaaS revenue increased by 18.6% to $121 million, representing 21.8% of total revenue.

Gross profit increased to $174 million with a margin of 31.4%.

The company repurchased $75 million of common stock.

Total Revenue
$555M
Previous year: $813M
-31.7%
EPS
$0.09
Previous year: $0.14
-35.7%
Gross Profit
$174M
Previous year: $257M
-32.3%
Cash and Equivalents
$300M
Previous year: $276M
+8.7%
Free Cash Flow
-$52M
Previous year: $51M
-202.0%
Total Assets
$8.27B
Previous year: $10.7B
-23.1%

Alight

Alight

Alight Revenue by Segment

Forward Guidance

The Company's fourth quarter of 2024 outlook includes Revenue of $665 million to $685 million, BPaaS Revenue of $144 to $154 million, Adjusted EBITDA of $208 million to $233 million, Adjusted EBITDA margin range of 30.4% to 35.0%, Adjusted diluted EPS of $0.22 to $0.27, and Operating Cash Flow Conversion adjusted for separation costs of approximately 60%.

Positive Outlook

  • Revenue of $665 million to $685 million.
  • BPaaS Revenue of $144 to $154 million.
  • Adjusted EBITDA of $208 million to $233 million.
  • Adjusted EBITDA margin range of 30.4% to 35.0%.
  • Adjusted diluted EPS of $0.22 to $0.27.

Revenue & Expenses

Visualization of income flow from segment revenue to net income