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Dec 31, 2024
Alight Q4 2024 Earnings Report
Alight reported a slight revenue decline but improved profitability in Q4 2024.
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
Alight
Alight Revenue by Segment
Revenue by Segment
BPaaS Revenue
CapyFin.com 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.