Alight, Inc. (NYSE:ALIT) Q3 2023 Earnings Conference Call November 1, 2023 8:30 AM ET Company Participants Stephan Scholl - Chef Executive Officer Katie Rooney - Global CFO, COO Jeremy Heaton - Operating CFO Jeremy Cohen - Head of Investor Relations Conference Call Participants Scott Schoenhaus - KeyBanc Capital Markets Pete Heckmann - DA Davidson Tien-tsin Huang - J.P. Morgan Kyle Peterson - Needham and Company Pete Christiansen - Citi Emily Marzo - Bank of America Operator Good morning, and thank you for ...

3rd Quarter 2023 Earnings Presentation Alight, Inc. November 1, 2023 © 2023 Alight. All rights reserved. Disclaimer Forward-looking statements as pro forma results under applicable regulations. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Non-GAAP financial measures These statements include, but are not limited to, statements related to the expectations re ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39299 Alight, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 86-1849232 ( State or other jurisdiction o ...

2nd Quarter 2023 Earnings Presentation Alight, Inc. August 1, 2023 © 2023 Alight. All rights reserved. Disclaimer Forward-looking statements This presentation contains forward-looking statements within the meaning of Section 27A of the Non-GAAP financial measures Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Included in this presentation are certain non-GAAP financial measures, such as Adjusted EBITDA, Adjusted These statements include, but are not l ...

Alight, Inc. (NYSE:ALIT) Q2 2023 Earnings Conference Call August 1, 2023 5:00 PM ET Company Participants Jeremy Cohen - VP, IR Stephan Scholl - CEO Katie Rooney - CFO Conference Call Participants Kyle Peterson - Needham & Company Kevin McVeigh - Credit Suisse Tien-tsin Huang - J.P. Morgan Pete Heckmann - D.A. Davidson Peter Christiansen - Citi Heather Balsky - Bank of America Steve Dechert - KeyBanc Operator Good afternoon and thank you for holding. My name is Stacy, and I will be your conference operator t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39299 Alight, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 86-1849232 ( State or other jurisdiction of (I. ...

Financial Data and Key Metrics Changes - The company reported a revenue growth of 14.6% in Q1 2023, with BPaaS revenue growth of 50% [14][7] - Recurring revenue increased by 16%, comprising 85.7% of total revenue, a 130 basis point increase year-over-year [14][15] - Adjusted EBITDA rose by 8.5% to $154 million, with an adjusted EBITDA margin of 18.5% [15][14] - Operating cash flow for the quarter was $72 million, translating to a conversion rate of 47%, significantly up from 13% last year [15][14] Business Line Data and Key Metrics Changes - Employer Solutions segment revenue increased by 16.1%, with recurring revenue up 17.4% and project revenue up roughly 2% [17] - Professional Services segment revenue grew by 8.9% to $98 million, driven by 10% growth in recurring revenue [18] Market Data and Key Metrics Changes - The company achieved over $1.5 billion in cumulative BPaaS bookings, nine months ahead of the original three-year projections [7][14] - The pipeline remains strong, with expectations for full-year BPaaS bookings between $900 million to $1 billion [15][14] Company Strategy and Development Direction - The company is focused on strategic investments in product innovation, including the latest release of the Alight Worklife platform [9] - An expanded partnership with Workday aims to provide a comprehensive solution in various European markets [10] - The company is undergoing a restructuring program to improve backend efficiency and transition to cloud infrastructure [12] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed 2023 financial targets, including double-digit growth and margin expansion [13] - The company is monitoring macroeconomic conditions, particularly regarding project revenue and potential impacts from unemployment trends [50][49] Other Important Information - The company completed Phase 1 of its cloud migration on time and is transitioning customers to the new infrastructure [12][36] - A secondary offering allowed the company to repurchase 1.1 million shares, with remaining authorization at $78 million [20] Q&A Session Summary Question: International growth opportunities - Management expressed excitement about international markets, particularly in Europe, where they see strong pipelines and large deal sizes [25][27] Question: Integration of AI into offerings - The company is actively exploring AI capabilities to enhance user experience and automate processes [29][30] Question: Confidence in BPaaS bookings for the year - Management confirmed a strong pipeline and balanced approach to large transformational deals and smaller bookings [32][34] Question: Impact of regional bank volatility - Management reported no significant impact from regional bank disruptions, maintaining strong client relationships [40] Question: Capital deployment priorities - The company prioritizes organic investments, potential acquisitions, and disciplined stock buybacks [42] Question: Conversion backlog and staffing - Management indicated no delays in implementation despite large deals, with a focus on maintaining timelines [46] Question: Macro indicators for business impacts - Key indicators include unemployment trends and customer demand, which could affect project revenue [50][49] Question: P&L benefits from restructuring and cloud conversion - Management outlined expected benefits from restructuring and cloud migration, with a focus on long-term improvements [55] Question: Workday partnership details - The partnership focuses on providing integrated solutions, particularly in Global Payroll, with plans for expansion [58][60]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39299 Alight, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 86-1849232 ( State or other jurisdiction of (I ...

PART I [Business](index=7&type=section&id=Item%201.%20Business) Alight, Inc. provides cloud-based digital human capital and business solutions, focusing on employee wellbeing via its Alight Worklife® platform, with revenue primarily recurring from three segments - Alight provides integrated health, wealth, wellbeing, and payroll solutions via its Alight Worklife® platform, leveraging **AI and data analytics** for better outcomes[15](index=15&type=chunk)[219](index=219&type=chunk)[221](index=221&type=chunk) 2022 Revenue Contribution by Segment | Segment | 2022 Revenue Contribution | | :------------------ | :------------------------ | | Employer Solutions | 87% | | Professional Services | 12% | | Hosted Business | 1% | - The company's revenue is highly recurring, generated from contracted fees per participant per period, with typical contract terms of **three to five years**[15](index=15&type=chunk)[130](index=130&type=chunk) - Alight's technology strategy encompasses an omnichannel customer experience, **AI and analytics**, core transaction, and infrastructure layers, all secured by a robust framework[19](index=19&type=chunk) [Principal Services and Segments](index=7&type=section&id=Principal%20Services%20and%20Segments) [Technology](index=8&type=section&id=Technology) [Seasonality](index=8&type=section&id=Seasonality) [Licensing and Regulation](index=8&type=section&id=Licensing%20and%20Regulation) [Clients](index=8&type=section&id=Clients) [Competition](index=8&type=section&id=Competition) [Human Capital Management](index=9&type=section&id=Human%20Capital%20Management) [Inclusion and Diversity](index=9&type=section&id=Inclusion%20and%20Diversity) [Total Rewards](index=9&type=section&id=Total%20Rewards) [Growth and Development](index=9&type=section&id=Growth%20and%20Development) [Intellectual Property](index=9&type=section&id=Intellectual%20Property) [Information about our Executive Officers](index=10&type=section&id=Information%20about%20our%20Executive%20Officers) [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from economic downturns, intense competition, IT system vulnerabilities, regulatory changes, and TRA obligations - Economic downturns, increased inflation, and rising interest rates could adversely affect client business activity and demand for Alight's services[10](index=10&type=chunk)[36](index=36&type=chunk) - Significant competition from global and national companies, coupled with rapid technological changes, poses a risk to market share and profitability[10](index=10&type=chunk)[23](index=23&type=chunk)[38](index=38&type=chunk) - Reliance on complex IT systems and third-party providers makes the company vulnerable to cyber-attacks, data breaches, and system disruptions, potentially leading to legal liability, reputational harm, and financial loss[10](index=10&type=chunk)[39](index=39&type=chunk)[42](index=42&type=chunk) - Changes in regulations related to health and welfare plans, fiduciary rules, payroll, and data privacy (e.g., HIPAA, GDPR, CCPA) could increase compliance costs and limit business growth[10](index=10&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk) - The company's obligations under the Tax Receivable Agreement (TRA) are substantial, and payments could be accelerated or exceed actual tax benefits, potentially impacting liquidity and the value of Class A Common Stock[11](index=11&type=chunk)[103](index=103&type=chunk)[105](index=105&type=chunk) [Risks Related to Our Business and Industry](index=12&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) [Risks Related to Ownership of our Securities](index=24&type=section&id=Risks%20Related%20to%20Ownership%20of%20our%20Securities) [Risks Related to Our Indebtedness](index=30&type=section&id=Risks%20Related%20to%20Our%20Indebtedness) [Unresolved Staff Comments](index=30&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) This section indicates that there are no unresolved staff comments from the SEC - The company has no unresolved staff comments[110](index=110&type=chunk) [Properties](index=30&type=section&id=Item%202.%20Properties) Alight's corporate headquarters is in leased office space in Lincolnshire, Illinois, with global leased offices considered adequate - Alight's corporate headquarters is in leased office space in Lincolnshire, Illinois, with the lease expiring on **December 31, 2024**[110](index=110&type=chunk) - The company operates globally with leased offices in various locations, including the Americas, Europe, and Asia, and considers its facilities adequate[110](index=110&type=chunk) [Legal Proceedings](index=30&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management believes the outcome will not materially affect its financial condition - Alight is a party to various legal proceedings in the normal course of business[111](index=111&type=chunk) - Management believes the final outcome of these proceedings will not materially adversely affect the company's results of operations or financial condition[111](index=111&type=chunk) [Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Alight, Inc - Mine Safety Disclosures are not applicable to the company[111](index=111&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Alight's Class A Common Stock trades on NYSE (ALIT); no dividends planned, with an authorized **$100 million** share repurchase program - Alight's Class A Common Stock trades on the NYSE under the symbol ALIT since **July 2, 2021**[114](index=114&type=chunk) - The company does not plan to pay cash dividends in the foreseeable future, intending to retain earnings for business investment[98](index=98&type=chunk)[116](index=116&type=chunk) - A share repurchase program of up to **$100 million** was authorized in **August 2022**; as of **December 31, 2022**, **$88 million** remained available[116](index=116&type=chunk)[176](index=176&type=chunk) Holders of Record as of February 24, 2023 | Class | Number of Holders of Record | | :------------------- | :-------------------------- | | Class A common stock | 76 | | Class B-1 common stock | 98 | | Class B-2 common stock | 98 | | Class V common stock | 5 | | Class Z-A common stock | 58 | | Class Z-B-1 common stock | 58 | | Class Z-B-2 common stock | 58 | [Market Information](index=31&type=section&id=Market%20Information) [Holders of Record](index=31&type=section&id=Holders%20of%20Record) [Dividends](index=31&type=section&id=Dividends) [Sales of Unregistered Securities](index=31&type=section&id=Sales%20of%20Unregistered%20Securities) [Issuer Purchases of Equity Securities](index=31&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) [Performance](index=32&type=section&id=Performance) [Reserved](index=32&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Alight's 2022 revenue grew, but a net loss occurred due to expenses; a 2023 restructuring aims for savings, with strong liquidity despite debt and TRA obligations - Alight's financial results for **2022** are presented as a Successor period, following the Business Combination on **July 2, 2021**, which impacts comparability with prior periods[121](index=121&type=chunk)[125](index=125&type=chunk) - A two-year strategic transformation restructuring program was approved in **February 2023**, expected to incur **$140 million** in pre-tax charges but yield over **$100 million** in annual savings post-completion[126](index=126&type=chunk)[393](index=393&type=chunk) Key Financial Highlights (Successor Year Ended December 31, 2022) | Metric | 2022 (in millions) | | :------------------------------------------------------------------ | :----------------- | | Revenue | $3,132 | | Gross Profit | $996 | | Operating Loss | $(14) | | Net Loss | $(72) | | Adjusted Net Income | $306 | | Adjusted Diluted Earnings Per Share | $0.57 |

Financial Data and Key Metrics Changes - In Q4 2022, total revenue increased by 9% and adjusted EBITDA rose by 27%, completing the second year of a three-year plan ahead of expectations [7][9] - Full year total revenue for 2022 was $3.1 billion, a 7% increase, with recurring revenue growing by 9% and now representing approximately 84% of total revenue [9][20] - Adjusted EBITDA for 2022 increased by 6% to $659 million, with operating cash flow conversion improving to 43% from 19% in 2021 [9][20] Business Line Data and Key Metrics Changes - BPaaS (Business Process as a Service) bookings grew nearly 45% to $871 million, significantly exceeding the annual target of $680 million to $700 million [9][19] - BPaaS revenue for 2022 was $564 million, up 45% year-over-year, now comprising 18% of total revenue, an increase from 13% in 2021 [9][20] - Employer Solutions segment saw a 10% revenue increase in Q4, with recurring revenue up 9.3% and project revenue up 17.4% [21] - Professional Services segment revenue increased by 2.2% to $95 million, driven by 3% growth in recurring revenue [22] Market Data and Key Metrics Changes - The company ended 2022 with over $2.9 billion of revenue under contract for 2023, the highest starting point ever, compared to total revenue of $2.9 billion in 2021 [14][20] - The company serves approximately 70% of the Fortune 100, indicating a strong market presence [25] Company Strategy and Development Direction - The company is focused on accelerating investments in the Alight Worklife platform and enhancing its BPaaS solutions to drive differentiation and revenue potential [15][17] - The 2023 product roadmap includes expanding access to the Alight Worklife platform for all family members, aiming to improve employee well-being [15] - The company plans to implement a two-year restructuring program to enhance its back office infrastructure and reduce costs [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a tougher macroeconomic backdrop while continuing to improve growth, margin, and operating cash flow in 2023 [14][24] - The company expects total revenue growth of 11% to 12% and adjusted EBITDA growth of 12% to 14% for 2023 [25][26] - Management highlighted the importance of demonstrating ROI on benefit spending for employers in a recessionary environment [15] Other Important Information - The company completed the acquisition of ReedGroup for a net consideration of $87 million, enhancing its capabilities in lead management and employee support [22] - The company has a strong cash position with $250 million in cash and cash equivalents and total debt of $2.8 billion, with a hedging strategy in place [23] Q&A Session Summary Question: Can you elaborate on the restructuring program and its cost savings? - Management indicated that about two-thirds of the cost savings from the restructuring program will impact 2023, with improvements in operating cash flow and margin expected in 2024 [31][32] Question: How is the Professional Services outlook given the macro uncertainty? - Management noted a strong backlog heading into 2023, with some slowdown observed internationally, but overall confidence in the pipeline remains high [33] Question: What factors are driving the revenue growth outlook? - Management attributed the revenue growth to new deals going live, including large BPaaS wins and the full-year effect of the Federal Thrift contract [26][54] Question: How will pricing be affected during contract renewals? - Management emphasized a shift towards outcomes-based pricing rather than traditional transaction pricing, focusing on delivering greater value to clients [50][52] Question: What is the impact of the transformation program on client delivery? - Management expressed confidence in the ability to manage risks associated with the transformation, citing successful past implementations as a foundation for future projects [58][60]