Conduent(CNDT) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 revenue was $800 million, a decrease of 16.1% year-over-year, while full year revenue totaled $3,356 million, down 9.8% from the previous year[4] - Adjusted EBITDA margin for Q4 2024 was 4.0%, down 400 basis points from 8.0% in Q4 2023, with full year adjusted EBITDA margin at 3.9%, a decrease of 350 basis points from 7.4%[4] - The company reported a pre-tax income of $504 million for FY 2024, a significant increase from a loss of $332 million in FY 2023, primarily driven by gains from divestitures[7] - Revenue for Q4 2024 was $800 million, a decrease of 16.1% from $953 million in Q4 2023[21] - Net income for Q4 2024 was a loss of $12 million compared to a profit of $6 million in Q4 2023, resulting in a net income per share loss of $0.09[21] - Total operating costs and expenses for Q4 2024 were $882 million, down 7.8% from $957 million in Q4 2023[21] - The company reported a goodwill impairment of $28 million in Q4 2024, compared to $287 million in the full year 2023[21] - Adjusted Revenue for Q4 2024 was $800 million, down from $953 million in Q4 2023, representing a decrease of 16.1%[48] - Adjusted Net Income for Q4 2024 was a loss of $21 million, compared to a loss of $17 million in Q4 2023[48] - Adjusted EBITDA for Q4 2024 was $32 million, down from $68 million in Q4 2023, indicating a decline of 52.9%[49] - Adjusted Operating Income for Q4 2024 was a loss of $15 million, compared to an income of $13 million in Q4 2023[49] Cash Flow and Liquidity - Full year 2024 cash flow from operating activities was $41 million, a decline of 66.4% compared to $122 million in FY 2023[4] - The company experienced a net cash outflow of $27 million in Q4 2024, contrasting with an inflow of $64 million in Q4 2023[26] - Cash and cash equivalents decreased to $366 million as of December 31, 2024, from $498 million a year earlier[24] - Free Cash Flow for Q4 2024 was $47 million, compared to $93 million in Q4 2023, while the full year showed a negative free cash flow of $(106) million versus $(4) million in 2023[51] - Adjusted Free Cash Flow for Q4 2024 was $62 million, unchanged from Q4 2023, while the full year adjusted free cash flow was $(59) million compared to $(5) million in 2023[51] - Operating Cash Flow for Q4 2024 was $41 million, down from $122 million in Q4 2023, with a full year operating cash flow of $(50) million compared to $89 million in 2023[51] Divestitures and Business Development - New business signings for Q4 2024 amounted to $137 million, contributing to a total annual contract value (ACV) of $485 million for FY 2024[3] - The company completed three divestitures in 2024, generating total proceeds of $879 million, which included $425 million from the BenefitWallet portfolio and $224 million from the Casualty Claims Solutions Business[5] - Conduent completed a $75 million share repurchase program, buying back 52 million shares, including approximately 38 million shares from Carl Icahn and affiliates[8] Future Outlook - The company anticipates FY 2025 adjusted revenue to be between $3,100 million and $3,250 million, with an expected adjusted EBITDA margin of 4.5% to 5.5%[10] - The company provided a non-GAAP outlook for Full Year 2025, indicating expected Adjusted EBITDA and Adjusted EBITDA Margin, but could not predict foreign currency impacts accurately[47] Tax and Equity - Adjusted Effective Tax Rate adjustments included a tax benefit of $63 million for Q4 2024, compared to a tax benefit of $11 million in Q4 2023[48] - The effective tax rate for Q4 2024 was 85.4%, a decrease from 272.1% in Q4 2023, with a full year effective tax rate of 15.5% compared to 10.7% in 2023[50] - The company reported a total equity increase to $843 million as of December 31, 2024, from $633 million in 2023[24] Shareholder Information - The weighted average common shares outstanding for Q4 2024 were 160,374 thousand, down from 213,625 thousand in Q4 2023, while the full year average was 182,513 thousand compared to 216,779 thousand in 2023[50]