Financial Performance Highlights - Adjusted Revenue for FY 2023 was $3722 million[19] - Adjusted EBITDA for FY 2023 was $378 million, resulting in an Adjusted EBITDA Margin of 102%[19] - New business signings ACV for FY 2023 reached $639 million[19] - Net ARR Activity Impact (TTM) was $62 million[19] Sales Metrics - New Business ARR reached $1000 million[6] - New Business TCV reached $2257 million[22] Outlook and Divestitures - FY 2024 Adjusted Revenue Outlook is projected to be between $3600 million and $3700 million[43] - FY 2024 Adjusted EBITDA Margin Outlook is projected to be between 8% and 9%[43] - The company anticipates $600 million to $800 million in potential divestiture proceeds[46] Balance Sheet - The company's cash balance at the end of Q4 2023 was $519 million[40] - The company repurchased 8841 million shares throughout FY 2023[40]

Financial Data and Key Metrics Changes - Adjusted revenue for Q4 2023 was $953 million and $3.7 billion for the full year, with adjusted EBITDA of $103 million and $378 million respectively, exceeding expectations for both periods [19][51] - Full year revenue declined by 3.3% to $3.72 billion compared to $3.85 billion in 2022, with adjusted EBITDA margin remaining stable at 10.2% [59][60] - The net leverage ratio was 2.1x, within the target range of 2 to 2.5x, with total liquidity of $1.1 billion [33] Business Line Data and Key Metrics Changes - The Commercial segment revenues were $1.93 billion, down 3% year-over-year, while adjusted EBITDA improved by 21% to a margin of 14.2% [29][30] - Government segment adjusted EBITDA declined by 1.8% year-over-year, with a margin of 29.7%, impacted by prior year stimulus volumes [31] - Transportation segment adjusted EBITDA was $41 million, down from $84 million in 2022, with a margin of 5.9% due to extended implementation timelines [32] Market Data and Key Metrics Changes - Annual Contract Value (ACV) for the full year was down 13%, primarily in the Commercial segment which saw a 29% decline, while Government and Transportation segments grew their ACV by approximately 8% [25] - Total Contract Value (TCV) increased by 20% to $2.257 billion, marking the best achievement since the company became Conduent [8] Company Strategy and Development Direction - The company is focused on a three-year journey to rationalize its portfolio, aiming for a $3 billion revenue company with reduced debt and enhanced valuation by 2025 [11][18] - Plans include divestitures expected to generate approximately $600 million to $800 million in net proceeds, with a focus on a more agile and higher-growth organization [75][79] Management's Comments on Operating Environment and Future Outlook - Management noted that 2023 was stronger than anticipated but highlighted the need for improvement in sales and cash generation [9] - The outlook for 2024 anticipates adjusted revenues to decline by about 2%, with challenges in the Commercial and Government segments due to macroeconomic pressures [70][72] Other Important Information - The company repurchased approximately 6.6 million shares at an average price of about $3, with $48 million remaining under the share repurchase authority [35] - The company expects to generate $1 billion in deployable capital by the end of 2025, which is approximately 130% of its current market capitalization [82] Q&A Session Summary Question: What are the expectations for revenue in 2024? - The company expects adjusted revenues in 2024 to be in the range of $3.6 billion to $3.7 billion, representing a year-over-year decline of around 2% [70] Question: How will divestitures impact the financial outlook? - The divestiture program is expected to generate approximately $495 million of after-tax proceeds, with additional transactions anticipated to close in the second half of 2024 [75][78] Question: What are the anticipated challenges in the Commercial segment? - The Commercial segment is expected to face a decline of 2% to 3% due to client decisions and macroeconomic pressures affecting certain industries [71]

Key Q4 and Full Year 2023 Highlights Revenue and Adj. Revenue(1): Q4 $953M / FY $3,722MPre-tax Income (Loss): Q4 $(4)M / FY $(332)MAdj. EBITDA Margin(1): Q4 10.8% / FY 10.2%New business signings ACV(2): Q4 $152M / FY $639MNet ARR Activity Metric(2) (TTM): $62M FLORHAM PARK, N.J., Feb. 14, 2024 (GLOBE NEWSWIRE) -- Conduent (NASDAQ:CNDT), a global technology-led business process solutions company, today announced its fourth quarter and full year 2023 financial results. Cliff Skelton, Conduent President and Ch ...

NelsonHall says Conduent provides integrated health, financial wellness and total rewards solutions focused on increasing employee engagement Conduent named an overall leader for fifth consecutive NEAT Report FLORHAM PARK, N.J., Feb. 14, 2024 (GLOBE NEWSWIRE) -- Conduent Incorporated (NASDAQ:CNDT), a global technology-led business solutions and services company, announced it has been recognized as an overall leader in NelsonHall's latest Benefits Administration 2024 NEAT Report. This is the fifth consecutiv ...

FLORHAM PARK, N.J., Feb. 05, 2024 (GLOBE NEWSWIRE) -- Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, plans to report its fourth-quarter and full-year 2023 financial results on Wednesday, February 14 at 9:00 a.m. ET. The call will be available by live audio cast along with the news release and online presentation slides at https://investor.conduent.com. The conference call will also be available by calling 877-407-4019 toll free. If requested, the confe ...

FLORHAM PARK, N.J., Feb. 05, 2024 (GLOBE NEWSWIRE) -- Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, plans to report its fourth-quarter and full-year 2023 financial results on Wednesday, February 14 at 9:00 a.m. ET. The call will be available by live audio cast along with the news release and online presentation slides at https://investor.conduent.com. The conference call will also be available by calling 877-407-4019 toll free. If requested, the confe ...

Conduent chosen to provide technologies and services to retrieve motor vehicle registration ownership data, building on current OTA relationship reviewing license plate images Solutions will support OTA's plan to convert its entire tolling system to cashless, benefiting motorists and the environment FLORHAM PARK, N.J., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Conduent Transportation, a global provider of smart mobility technology solutions and business unit of Conduent Incorporated (NASDAQ:CNDT), today announced i ...

Conduent Incorporated (NASDAQ:CNDT) Q3 2023 Earnings Conference Call November 1, 2023 9:00 AM ET Company Participants Giles Goodburn - Vice President, Investor Relations Cliff Skelton - President and Chief Executive Officer Steve Wood - Chief Financial Officer Conference Call Participants Operator Good morning, and welcome to the Conduent Third Quarter 2023 Earnings Announcement. [Operator Instructions] As a reminder, this conference is being recorded. At this time, I would like to hand the call over to Gil ...

Important factors and uncertainties that could cause our actual results to differ materially from those in our forward-looking statements include, but are not limited to: government appropriations and termination rights contained in our government contracts; our ability to renew commercial and government contracts, including contracts awarded through competitive bidding processes; our ability to recover capital and other investments in connection with our contracts; our reliance on third-party providers; ri ...

CNDT Q3 2023 Form 10-Q 18 Table of Contents Conduent Business Services, LLC v. Cognizant Business Services Corporation: On April 12, 2017, CBS filed a lawsuit against Cognizant Business Services Corporation ("Cognizant") in the Supreme Court of New York County, New York. The lawsuit relates to the Amended and Restated Master Outsourcing Services Agreement effective as of October 24, 2012, and the service delivery contracts and work orders thereunder, between CBS and Cognizant, as amended and supplemented (t ...