Core Viewpoint - Alight, Inc. reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.12 per share, and showing a decline from $0.13 per share a year ago, indicating a negative earnings surprise of -16.67% [1] Financial Performance - The company posted revenues of $548 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.75%, but down from $816 million year-over-year [2] - Over the last four quarters, Alight has not surpassed consensus EPS estimates, although it has topped consensus revenue estimates three times [2] Stock Performance - Alight shares have declined approximately 24.4% since the beginning of the year, compared to a -4.3% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $531.75 million, and for the current fiscal year, it is $0.61 on revenues of $2.35 billion [7] Industry Outlook - The Internet - Software industry, to which Alight belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Revenue Performance - Revenue for Q1 2025 was $548 million, a decrease of 2.0% compared to $559 million in Q1 2024[3] - Total revenue for Q1 2025 was $548 million, a decrease of 2% from $559 million in Q1 2024[38] - Recurring revenues accounted for 94.9% of total revenue in Q1 2025[3] - Recurring revenue slightly decreased to $520 million from $521 million year-over-year[38] Profitability - Gross profit was $171 million, representing a gross profit margin of 31.2%, down from $182 million and 32.6% in the prior year[4] - Total gross profit for Q1 2025 was $171 million, down from $182 million in Q1 2024, resulting in a gross margin of 31.2%[38] - Adjusted gross profit decreased to $200 million from $208 million, with an adjusted gross margin of 36.5%[38] - Adjusted EBITDA increased to $118 million, up from $116 million year-over-year[5] - Adjusted EBITDA from continuing operations increased to $118 million in Q1 2025, up from $116 million in Q1 2024, with an adjusted EBITDA margin of 21.5% compared to 20.8%[29][30] - Free cash flow for Q1 2025 was $44 million, down from $61 million in Q1 2024, reflecting a decrease of approximately 27.9%[37] - Free cash flow from continuing operations was $44 million, down from $61 million in Q1 2024[38] Loss and Debt Management - Net loss improved to $17 million compared to a net loss of $121 million in the prior year[5] - Net income from continuing operations improved to a loss of $17 million for Q1 2025, compared to a loss of $121 million in Q1 2024, representing a 85.7% reduction in losses[28] - Total debt as of March 31, 2025, was $2,019 million, with cash and cash equivalents of $223 million[9] Operational Efficiency - Selling, general and administrative expenses decreased by $42 million compared to the prior year, primarily due to lower compensation expenses[6] - The company reported a share-based compensation expense of $6 million in Q1 2025, down from $28 million in Q1 2024, indicating a reduction of approximately 78.6%[28] - The company continues to focus on improving operational efficiency despite the revenue decline[38] Asset and Liability Management - Total assets decreased from $8,193 million as of December 31, 2024, to $7,913 million as of March 31, 2025, a decline of approximately 3.4%[26] - Total current assets decreased from $1,267 million as of December 31, 2024, to $1,062 million as of March 31, 2025, a decline of approximately 16.2%[26] - Total liabilities decreased from $3,880 million as of December 31, 2024, to $3,680 million as of March 31, 2025, a reduction of approximately 5.2%[26] - Cash and cash equivalents decreased from $343 million as of December 31, 2024, to $223 million as of March 31, 2025, a decline of approximately 35%[26] Future Outlook - The company has 92% of projected 2025 revenue under contract, indicating strong revenue visibility[10] - The company reaffirmed its full-year 2025 financial outlook, projecting revenue between $2,318 million and $2,388 million[13] Client Acquisition - New client wins included US Foods, Markel, and Delek, contributing to business growth[5] Project Revenue - BPaaS revenue increased to $126 million, up from $117 million year-over-year[38] - Project revenue decreased to $28 million from $38 million in the same quarter last year[38]

Group 1 - Alight, Inc. (NYSE: ALIT) has experienced a 26% decline in stock price since the last analysis, with full year revenues projected to decrease by 2.3% in 2024 [1] - The company is perceived to be trading at an expensive valuation with limited growth prospects [1] Group 2 - The analysis reflects a value investment approach, focusing on identifying bargains in various markets, particularly emerging markets [1] - The author emphasizes an owner-mindset in investment strategy, largely disregarding macroeconomic factors [1]

Financial Risks - The company has a substantial amount of goodwill and purchased intangible assets on its consolidated balance sheet, which may be subject to impairment charges that could materially impact financial statements [116]. - A portion of the company's revenues is derived from government contracts, which are subject to heightened risks, including potential civil and criminal penalties for non-compliance [117]. - Changes in government funding or political developments could result in lower governmental sales and may adversely affect the company's financial condition and operating results [119]. - The company is subject to taxation-related risks in multiple jurisdictions, with significant judgment required in determining global provisions for income taxes [120]. - New tax laws and interpretations globally could increase the company's tax obligations, particularly with proposals for digital services taxes in the European Union [121]. - The OECD's proposed Pillar Two framework could impose a global minimum corporate tax rate of 15%, potentially increasing tax complexity and uncertainty for the company [122]. Market Performance - The market price of the company's Class A Common Stock has fluctuated significantly, with a trading range from $6.52 to $10.32 during the year ended December 31, 2024 [130]. - The company's decision to maintain or discontinue cash dividends could cause the market price of its Class A Common Stock to decline significantly [132]. - The existence of anti-takeover measures could limit the price that investors might be willing to pay for the company's shares and deter potential acquirers [128]. Debt and Liquidity - As of December 31, 2024, the Company had approximately $2.0 billion of outstanding debt at variable interest rates, exposing it to interest rate risk [142]. - Payments under the Tax Receivable Agreement (TRA) may significantly exceed actual tax benefits realized, potentially impacting liquidity [140]. - The Company expects substantial payments under the TRA in the event of a change of control, which may impair the ability to consummate such transactions [141]. - Alight Holdings is obligated to make tax distributions to unit holders, which may lead to excess cash accumulation at the Company [136]. - A hypothetical increase of 25 basis points in term loans, net of hedging activity, would result in a change to annual interest expense of approximately $1 million in fiscal year 2024 [263]. - The Company utilizes interest rate swap agreements to fix portions of floating interest rates through December 2026 [263]. - Credit rating changes could adversely impact operations and profitability, affecting access to debt markets [143]. - The Company is subject to restrictions on distributions based on financial performance and applicable laws [135]. - The Company has no obligation to distribute accumulated cash, which may benefit Continuing Tempo Unitholders [136]. Corporate Structure - The Company is a holding entity with no material assets other than its interests in Alight Holdings, relying on distributions from Alight Holdings for dividends and expenses [134].

Alight, Inc. (NYSE:ALIT) Q4 2024 Results Conference Call February 20, 2025 8:30 AM ET Company Participants Jeremy Cohen - Head, Investor Relations Dave Guilmette - Chief Executive Officer Jeremy Heaton - Chief Financial Officer Conference Call Participants Kyle Peterson - Needham & Company Kevin McVeigh - UBS Scott Schoenhaus - KeyBanc Capital Markets Tien-Tsin Huang - JPMorgan Peter Heckmann - D.A. Davidson Pete Christiansen - Citi Joseph Vafi - Canaccord Genuity Operator Good morning, and thank you for ho ...

Alight, Inc. (ALIT) came out with quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.09, delivering a surprise of -18.18%.Over the last four quarters, the company has s ...

Alight Fourth Quarter and Full Year 2024 Financial Results [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Alight reported mixed Q4 and full year 2024 results, showing slight revenue decrease but improved profitability, strong cash flow, and strategic capital returns [Fourth Quarter 2024 Highlights](index=1&type=section&id=Fourth%20Quarter%202024%20Highlights) Q4 2024 saw stable revenue at $680 million, a significant net income turnaround, and strong growth in BPaaS revenue and ARR bookings Q4 2024 Key Financial Metrics (vs. Q4 2023) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $680M | $682M | -0.3% | | BPaaS Revenue | $146M | $133M (implied) | +9.8% | | Gross Profit | $271M | $270M | +0.4% | | Adjusted EBITDA | $217M | $206M | +5.3% | | Net Income (Loss) | $29M | $(121)M | N/A | | Diluted EPS | $0.05 | $(0.23) | N/A | | Adjusted Diluted EPS | $0.24 | $0.13 | +84.6% | - Annual Recurring Revenue (ARR) bookings grew by **18%** to **$114 million** in 2024[4](index=4&type=chunk) - The stock repurchase program was increased by an additional **$200 million**[4](index=4&type=chunk) - Secured new or expanded relationships with clients such as Fortune Brands Innovations and Agilis Partners[5](index=5&type=chunk) [Full Year 2024 Highlights](index=2&type=section&id=Full%20Year%202024%20Highlights) Full year 2024 revenue decreased 2.3% to $2,332 million, but net loss improved, Adjusted EBITDA grew, BPaaS revenue increased 15.0%, and a new dividend and stock repurchases were initiated Full Year 2024 Key Financial Metrics (vs. FY 2023) | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $2,332M | $2,386M | -2.3% | | BPaaS Revenue | $499M | $434M | +15.0% | | Gross Profit | $794M | $810M | -2.0% | | Adjusted EBITDA | $556M | $537M | +3.5% | | Net Loss | $(140)M | $(317)M | N/A | | Diluted EPS | $(0.25) | $(0.61) | N/A | | Adjusted Diluted EPS | $0.48 | $0.43 | +11.6% | - Repurchased **$167 million** of common stock under the existing share repurchase program during the year[12](index=12&type=chunk) - A dividend program was initiated, with the first payment made in the fourth quarter[12](index=12&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) Financial performance reflects a strategic shift post-divestiture, with slight revenue decline offset by improved profitability, increased gross profit, and enhanced net income from lower interest expenses [Fourth Quarter 2024 Results](index=2&type=section&id=Fourth%20Quarter%202024%20Results) Q4 2024 revenue decreased 0.3% to $680 million, with gross profit rising and pre-tax income significantly improving to $55 million, primarily due to lower interest expense - Revenue decreased **0.3%** to **$680 million**, with recurring revenues constituting **90.7%** of the total[6](index=6&type=chunk) - Interest expense improved by **$11 million** to **$20 million**, benefiting from a term loan repricing and a **$740 million** debt paydown in Q3[9](index=9&type=chunk) - Income from continuing operations before tax was **$55 million**, a significant improvement from a loss of **$96 million** in the prior-year period, aided by lower interest expense and other income from the divestiture's transition services agreement[10](index=10&type=chunk) [Full Year 2024 Results](index=2&type=section&id=Full%20Year%202024%20Results) Full-year 2024 revenue decreased 2.3% to $2,332 million, with pre-tax loss from continuing operations narrowing significantly to $148 million, largely due to reduced interest expense and divestiture-related income - Full-year revenue decreased **2.3%** to **$2,332 million**; excluding the exited Hosted business, the decrease was **1.2%**, with recurring revenues at **91.6%** of total revenue[11](index=11&type=chunk) - Interest expense for the year improved by **$28 million** to **$103 million** due to debt repricing and paydown[15](index=15&type=chunk) - Loss from continuing operations before tax improved to **$148 million** from **$337 million** in the prior year, driven by lower interest costs and income from the divestiture's transition services agreement[16](index=16&type=chunk) [Balance Sheet Highlights](index=3&type=section&id=Balance%20Sheet%20Highlights) As of December 31, 2024, Alight maintained solid liquidity, with its balance sheet reflecting recent divestiture and debt reduction activities Key Balance Sheet Items (as of Dec 31, 2024) | Metric | Amount | | :--- | :--- | | Cash and cash equivalents | $343M | | Total debt | $2,025M | | Total debt net of cash | $1,682M | [Business Outlook and Corporate Actions](index=3&type=section&id=Business%20Outlook%20and%20Corporate%20Actions) Alight issued its 2025 financial outlook, projecting revenue and Adjusted EBITDA growth, with acceleration expected in H2 2025, complemented by an increased stock repurchase authorization [2025 Business Outlook](index=3&type=section&id=2025%20Business%20Outlook) The company projects 2025 as a transitional year, with revenue impacted by prior contract losses, but anticipates growth in Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow 2025 Full Year Outlook | Metric | Guidance Range | | :--- | :--- | | Revenue | $2,318M - $2,388M | | Adjusted EBITDA | $620M - $645M | | Adjusted Diluted EPS | $0.58 - $0.64 | | Free Cash Flow | $250M - $285M | - Management notes that the 2025 revenue growth rate is negatively impacted by historical contract losses; absent these, the growth rate would be over two points higher[19](index=19&type=chunk) - Full-year 2024 retention rates improved by **8 points** compared to the prior year, which is expected to favorably impact revenue later in 2025 and into 2026[19](index=19&type=chunk) [Subsequent Events & Shareholder Returns](index=3&type=section&id=Subsequent%20Events%20%26%20Shareholder%20Returns) Subsequent to quarter end, Alight's Board authorized an additional $200 million for stock repurchases, bringing the total to $281 million, reinforcing commitment to shareholder capital returns - The Board of Directors authorized an additional **$200 million** for the repurchase of Class A common stock[18](index=18&type=chunk) - The total amount authorized for stock repurchase is now **$281 million**[18](index=18&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for Q4 and full year 2024 and 2023, including Income Statements, Balance Sheets, and Cash Flows [Condensed Consolidated Statements of Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29) For Q4 2024, Net Income from Continuing Operations was $29 million on $680 million revenue, a significant improvement, and full year Net Loss was $140 million on $2,332 million revenue, a substantial reduction Income Statement Highlights (Continuing Operations) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $680M | $682M | $2,332M | $2,386M | | Gross Profit | $271M | $270M | $794M | $810M | | Operating Income | $44M | $40M | $(90)M | $(81)M | | Net Income (Loss) | $29M | $(121)M | $(140)M | $(317)M | | Diluted EPS | $0.05 | $(0.23) | $(0.25) | $(0.61) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2024, Total Assets were $8.19 billion, down from $10.78 billion, and Total Liabilities decreased to $3.88 billion from $6.04 billion, primarily due to discontinued operations and debt reduction Balance Sheet Summary (Year-End) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $1,267M | $2,776M | | Total Assets | $8,193M | $10,782M | | Total Current Liabilities | $892M | $2,187M | | Long-term debt, net | $2,000M | $2,769M | | Total Liabilities | $3,880M | $6,040M | | Total Stockholders' Equity | $4,313M | $4,742M | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For full year 2024, net cash from operating activities was $252 million, investing activities provided $836 million, and financing activities used $1,074 million, driven by debt repayments and share repurchases Statement of Cash Flows Summary (Full Year) | Activity | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $252M | $386M | | Net cash provided by (used in) investing activities | $836M | $(159)M | | Net cash provided by (used in) financing activities | $(1,074)M | $(231)M | [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, and Adjusted Gross Profit, along with other key operational data [Reconciliation to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA) Adjusted EBITDA from Continuing Operations for Q4 2024 was $217 million (31.9% margin) and for full year was $556 million (23.8% margin), adjusted for non-cash and non-recurring items Reconciliation to Adjusted EBITDA (Continuing Operations) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $29M | $(121)M | $(140)M | $(317)M | | Adjustments | $188M | $327M | $696M | $854M | | **Adjusted EBITDA** | **$217M** | **$206M** | **$556M** | **$537M** | | **Adj. EBITDA Margin** | **31.9%** | **30.2%** | **23.8%** | **22.5%** | [Reconciliation to Adjusted Net Income and Adjusted Diluted EPS](index=11&type=section&id=Reconciliation%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS) Adjusted Diluted EPS from Continuing Operations increased to $0.24 in Q4 2024 and to $0.48 for the full year, adjusted for non-cash and non-recurring items Reconciliation to Adjusted Diluted EPS (Continuing Operations) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) Attributable to Alight | $29M | $(113)M | $(138)M | $(300)M | | **Adjusted Net Income** | **$127M** | **$73M** | **$261M** | **$234M** | | **Adjusted Diluted EPS** | **$0.24** | **$0.13** | **$0.48** | **$0.43** | [Reconciliation to Adjusted Gross Profit](index=12&type=section&id=Reconciliation%20to%20Adjusted%20Gross%20Profit) Adjusted Gross Profit for Q4 2024 was $300 million (44.1% margin) and for full year was $904 million (38.8% margin), adjusted for depreciation, amortization, and stock-based compensation Adjusted Gross Profit Reconciliation | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $271M | $270M | $794M | $810M | | **Adjusted Gross Profit** | **$300M** | **$297M** | **$904M** | **$912M** | | **Adjusted Gross Profit Margin** | **44.1%** | **43.5%** | **38.8%** | **38.2%** | [Other Select Financial Data](index=13&type=section&id=Other%20Select%20Financial%20Data) This data highlights key operational trends, showing recurring revenue as the majority of total revenue, with BPaaS revenue growing significantly in Q4 and full year, increasing its share BPaaS Revenue Growth | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | BPaaS Revenue | $146M | $133M | $499M | $434M | | BPaaS as % of Total Revenue | 21.5% | 19.5% | 21.4% | 18.2% | - For the full year 2024, recurring revenue was **$2,135 million**, while project revenue was **$197 million**, demonstrating the stability of the company's revenue base[44](index=44&type=chunk)

Alight, Inc. (ALIT) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earning ...

Alight, Inc. (ALIT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual investors ...

Alight, Inc. (NYSE:ALIT) Q3 2024 Earnings Conference Call November 12, 2024 8:30 AM ET Company Participants Jeremy Cohen - Head, Investor Relations Dave Guilmette - Chief Executive Officer Jeremy Heaton - Chief Financial Officer Conference Call Participants Kevin McVeigh - UBS Scott Schoenhaus - KeyBanc Capital Markets Tien-Tsin Huang - JPMorgan Kyle Peterson - Needham & Company Pete Christiansen - Citi Pallav Saini - Canaccord Genuity Operator Good morning and thank you for holding. My name is Suvendu, and ...