Alight Q4 2024 Earnings Report
Key Takeaways
Alight's Q4 2024 revenue declined slightly by 0.3% to $680 million. However, net income turned positive at $29 million compared to a $121 million loss in the prior year period. Adjusted EBITDA increased to $217 million from $206 million, and adjusted EPS improved to $0.24 from $0.13. The company repurchased $12 million in stock and paid a $0.04 per share dividend.
Revenue slightly declined by 0.3% to $680 million.
Net income improved to $29 million from a $121 million loss in Q4 2023.
Adjusted EPS increased to $0.24 from $0.13.
BPaaS revenue grew 9.8% to $146 million, representing 21.5% of total revenue.
Alight Revenue
Alight EPS
Alight Revenue by Segment
Forward Guidance
Alight expects improved revenue growth, profitability, and cash flow in 2025, despite prior contract losses.
Positive Outlook
- Projected revenue growth in the second half of 2025.
- Adjusted EBITDA expected to increase to $620M - $645M.
- Adjusted diluted EPS projected between $0.58 and $0.64.
- Free cash flow expected between $250M - $285M.
- Improved client retention rates up 8 percentage points from prior year.
Challenges Ahead
- Revenue growth initially impacted by contract losses from 2023 and early 2024.
- Full benefits of retention improvements will only be realized later in 2025.
- Macroeconomic uncertainties may impact business operations.
- Higher restructuring costs may continue in the short term.
- Potential fluctuations in professional service demand affecting revenue mix.
Revenue & Expenses
Visualization of income flow from segment revenue to net income