Unisys(UIS)2025-02-18 21:35Revenue Performance - Full-year revenue for 2024 was $2,008.4 million, a decrease of 0.3% year over year, meeting the company's guidance[4] - Fourth quarter revenue declined 2.2% year over year, with Ex-L&S revenue down 4.7% year over year, primarily due to lower volume with existing clients[7] - Total revenue for Q4 2024 was $545.4 million, a decrease of 2.0% from $557.6 million in Q4 2023[33] - Revenue for Q4 2024 was $545.4 million, slightly down from $557.6 million in Q4 2023, while total revenue for the year was $2,008.4 million compared to $2,015.4 million in 2023[50] Profitability Metrics - Full-year gross profit margin improved to 29.2%, up 180 basis points year over year; Ex-L&S gross profit margin increased to 17.6%, an improvement of 250 basis points[4] - Operating profit margin for the full year 2024 improved to 4.8%, an increase of 100 basis points year over year[4] - Non-GAAP operating profit for the year ended December 31, 2024, was $97.4 million, compared to $76.9 million in 2023, reflecting a significant improvement[33] - The gross profit margin for the total revenue in Q4 2024 was 32.1%, slightly down from 32.5% in Q4 2023[36] - Adjusted EBITDA for Q4 2024 was $91.4 million, representing 16.8% of revenue, compared to 18.0% in Q4 2023[50] - Non-GAAP operating profit for Q4 2024 was $63.3 million, with a non-GAAP operating profit margin of 11.6%, compared to 11.5% in Q4 2023[50] - The operating profit for Q4 2024 was $48.6 million, an increase from $44.0 million in Q4 2023, resulting in an operating profit margin of 8.9%[50] Cash Flow and Financial Health - Free cash flow for the full year 2024 nearly doubled to $82 million, significantly improving from a negative $4.5 million in 2023[3] - Free cash flow for 2024 was $55.3 million, compared to a negative free cash flow of $(4.5) million in 2023[46] - Net cash provided by operating activities increased from $74.2 million in 2023 to $135.1 million in 2024, a growth of approximately 82.1%[41] - The company reported a consolidated net income of $30.0 million for Q4 2024, a recovery from a net loss of $165.3 million in Q4 2023[33] Business Growth and Contracts - New Business Total Contract Value (TCV) for 2024 reached $791 million, representing a 29% increase year over year driven by new logo signings[4] - Total Contract Value (TCV) for new business was highlighted as a key growth driver, although specific figures were not disclosed[24] - The company anticipates revenue growth in 2025, with a focus on artificial intelligence adoption and innovation[24] - The company expects 2025 revenue growth in constant currency to be between 0.5% and 2.5%, with a non-GAAP operating profit margin guidance of 6.5% to 8.5%[18] Balance Sheet and Assets - Total assets decreased from $1,965.4 million in 2023 to $1,872.3 million in 2024, a decline of approximately 4.7%[38] - Total current liabilities decreased from $650.9 million in 2023 to $628.0 million in 2024, a reduction of approximately 3.5%[38] - Long-term debt remained relatively stable, decreasing slightly from $491.2 million in 2023 to $488.2 million in 2024[38] - Goodwill decreased from $287.4 million in 2023 to $247.9 million in 2024, a decline of approximately 13.8%[38] - Cash, cash equivalents, and restricted cash at the end of the period were $390.6 million, down from $396.7 million in 2023[41] Challenges and Impairments - The company continues to face challenges related to foreign currency fluctuations impacting revenue from international operations[24] - The company experienced a goodwill impairment of $39.1 million for the year ended December 31, 2024[50] - Consolidated net loss improved from $(427.1) million in 2023 to $(193.2) million in 2024, representing a reduction of about 54.7%[41] - Non-GAAP net income attributable to Unisys Corporation for 2024 was $32.1 million, down from $41.7 million in 2023, a decrease of about 23.0%[44] - Diluted earnings per share on a GAAP basis improved to $0.41 in 2024 from $(2.42) in 2023[44]