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Dec 31, 2022

Alight Q4 2022 Earnings Report

Alight's Q4 2022 results were reported, with revenue increasing by 9.0% and BPaaS revenue growing by 61.3%.

Key Takeaways

Alight reported a 9.0% increase in revenue to $942 million for Q4 2022, driven by growth in Employer Solutions and BPaaS. The company's BPaaS bookings increased significantly, and Adjusted EBITDA also saw a substantial rise.

Revenue increased by 9.0% to $942 million.

BPaaS revenue grew by 61.3% to $171 million, representing 18.2% of total revenue.

BPaaS bookings increased by 114.7% to $307 million.

Adjusted EBITDA increased 27.4% to $242 million.

Total Revenue
$942M
Previous year: $864M
+9.0%
EPS
$0.21
Previous year: $0.13
+61.5%
Gross Profit
$342M
Previous year: $294M
+16.3%
Cash and Equivalents
$250M
Previous year: $372M
-32.8%
Free Cash Flow
$52M
Previous year: -$2M
-2700.0%
Total Assets
$11.2B
Previous year: $11B
+2.2%

Alight

Alight

Alight Revenue by Segment

Forward Guidance

The Company is introducing its full-year 2023 outlook: •Revenue of $3.47 billion to $3.51 billion (growth of 11% to 12%) on a higher 2022 revenue base than the Company’s original guidance. •Adjusted EBITDA in the range of $735 million to $750 million (growth of 12% to 14%). •Adjusted diluted EPS of $0.62 to $0.67 (growth of 9% to 18%). •BPaaS total contract value bookings of $900 million to $1.0 billion. •Operating Cash Flow Conversion rate of 45-55%, up from 43% in the prior year.

Positive Outlook

  • Revenue of $3.47 billion to $3.51 billion (growth of 11% to 12%) on a higher 2022 revenue base than the Company’s original guidance.
  • Adjusted EBITDA in the range of $735 million to $750 million (growth of 12% to 14%).
  • Adjusted diluted EPS of $0.62 to $0.67 (growth of 9% to 18%).
  • BPaaS total contract value bookings of $900 million to $1.0 billion.
  • Operating Cash Flow Conversion rate of 45-55%, up from 43% in the prior year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income