Conduent(CNDT) - 2024 Q3 - Quarterly Results

Financial Performance - Q3 2024 revenue was $807 million, a decrease of 13.4% year-over-year from $932 million in Q3 2023[3] - Adjusted revenue for Q3 2024 was $781 million, down 6.0% from $831 million in Q3 2023[3] - Pre-tax income for Q3 2024 was $159 million, compared to a loss of $313 million in the prior year[5] - Adjusted EBITDA for Q3 2024 was $32 million, with an adjusted EBITDA margin of 4.1%, down from 7.2% in Q3 2023[3] - Revenue for the three months ended September 30, 2024, was $807 million, a decrease of 13.4% from $932 million in the same period of 2023[21] - Net income for the three months ended September 30, 2024, was $123 million, compared to a net loss of $289 million in the same period of 2023[23] - Total operating costs and expenses for the three months ended September 30, 2024, were $648 million, down from $1,245 million in the same period of 2023, representing a 48.0% reduction[21] - Adjusted revenue for the three months ended September 30, 2024, was $781 million, a decrease of 6% compared to $831 million for the same period in 2023[49] - Adjusted net income for the three months ended September 30, 2024, was a loss of $24 million, compared to a loss of $44 million for the same period in 2023[49] - Adjusted operating income before adjustment for divestitures was a loss of $11 million for the three months ended September 30, 2024, compared to a loss of $15 million for the same period in 2023[50] - Adjusted EBITDA for the three months ended September 30, 2024, was $32 million, down from $60 million for the same period in 2023[50] - The company reported a comprehensive income of $137 million for the three months ended September 30, 2024, compared to a comprehensive loss of $308 million in the same period of 2023[23] Cash Flow and Liquidity - Cash and cash equivalents at the end of September 30, 2024, were $393 million, down from $498 million at December 31, 2023[25] - The net cash used in operating activities for the three months ended September 30, 2024, was $(13) million, compared to $(11) million in the same period of 2023[26] - The company generated $208 million in net cash from investing activities for the three months ended September 30, 2024, compared to $(22) million in the same period of 2023[26] - Free Cash Flow for the three months ended September 30, 2024, was $(29) million, compared to $(33) million for the same period in 2023[53] - Operating Cash Flow for the three months ended September 30, 2024, was $(13) million, compared to $(11) million for the same period in 2023[53] - The Adjusted Free Cash Flow for the three months ended September 30, 2024, was $(6) million, compared to $(35) million for the same period in 2023[53] Debt and Assets - Total assets decreased to $2,841 million as of September 30, 2024, from $3,162 million at December 31, 2023[25] - Long-term debt decreased significantly to $718 million as of September 30, 2024, from $1,248 million at December 31, 2023[25] Business Operations and Strategy - The company completed the sale of the Casualty Claims Solutions business for $224 million in cash during Q3 2024[4] - Conduent repurchased approximately 3.9 million shares of common stock as part of a $75 million share repurchase program[6] - FY 2024 adjusted revenue outlook is projected between $3,185 million and $3,215 million, down from $3,320 million in FY 2023[9] - The company achieved a net annual recurring revenue (ARR) activity metric of $46 million[1] - New business signings for annual contract value (ACV) totaled $111 million in Q3 2024[1] - Conduent was recognized as a leader in all five categories in the NelsonHall 2024 NEAT Report for Healthcare Payer Operational Transformation[7] Non-GAAP Measures - The company reported its financial results in accordance with U.S. GAAP and also discussed non-GAAP measures to provide better insights into business trends[32] - Adjusted Revenue, Adjusted Profit Before Tax, and Adjusted Net Income (Loss) are calculated by excluding items such as amortization of acquired intangible assets and restructuring costs[35] - Adjusted EBITDA is used to assess operations, representing income before interest, taxes, depreciation, and amortization, adjusted for specific items[42] - Free Cash Flow is defined as cash flows from operating activities minus costs for additions to land, buildings, and equipment, used as a liquidity measure[45] - Adjusted Free Cash Flow includes additional adjustments for litigation recoveries and transaction costs, providing insight into cash generation capabilities[46] - Revenue at Constant Currency is adjusted to exclude the impact of foreign currency translation, aiding in understanding business trends[47] - The company provided a Full Year 2024 outlook for Adjusted EBITDA Margin, excluding certain items that may materially impact reported results[48] - Management emphasizes that non-GAAP measures should not be viewed in isolation from U.S. GAAP results, as they provide additional transparency[32] - Adjusted Operating Income and Adjusted Operating Margin are calculated by adjusting for non-cash items and other identified items not indicative of ongoing business[41] - The adjusted effective tax rate is provided to facilitate comparisons between actual and adjusted rates, offering insights into underlying business results[39] - Total non-GAAP adjustments for the three months ended September 30, 2024, amounted to $(183) million, compared to $296 million for the same period in 2023[50] - Total non-GAAP adjustments for the nine months ended September 30, 2024, were $(3.44) million, compared to $1.49 million for the same period in 2023[51] - Adjusted Effective Tax Rate for the nine months ended September 30, 2024, was 19.7%, compared to (158.4)% for the same period in 2023[51] Earnings Per Share - The company’s basic net income per share for the three months ended September 30, 2024, was $0.75, compared to a loss of $1.34 per share in the same period of 2023[21] - Adjusted Diluted EPS for the three months ended September 30, 2024, was $(0.14), compared to $(0.09) for the same period in 2023[51] - The effective tax rate for the three months ended September 30, 2024, was 22.2%, up from 7.8% in the same period last year[51] - Adjusted EBITDA Margin for the three months ended September 30, 2024, was 4.1%, compared to 7.2% for the same period in 2023[51]