Conduent(US:CNDT)2024-02-20 16:00Financial Performance - The company's total revenue for 2023 was $3.72 billion, with the Commercial segment contributing $1.932 billion, representing 51.9% of total revenues[50]. - Conduent's revenue for 2023 was $3,722 million, a decrease of 3.5% from $3,858 million in 2022[217]. - The company's net loss for 2023 was $296 million, compared to a net loss of $182 million in 2022, resulting in a diluted loss per share of $1.41[217]. - Total operating costs and expenses increased to $4,054 million in 2023 from $3,985 million in 2022, primarily driven by higher costs of services and goodwill impairment[217]. - Goodwill impairment for 2023 was $287 million, down from $358 million in 2022[217]. - Interest expense rose to $111 million in 2023, compared to $84 million in 2022, reflecting increased borrowing costs[217]. - The company reported a significant increase in restructuring and related costs, which rose to $62 million in 2023 from $39 million in 2022[217]. Market and Business Operations - Conduent's addressable market size in the global business process services industry is estimated to be $210 billion in 2023[48]. - The Transportation segment generated revenue of $696 million in 2023, accounting for 18.7% of total revenues[60]. - Government segment revenue for 2023 was $1,094 million, representing 29.4% of total revenues[129]. - The company serves 9 of the top 10 U.S. health plans and provides solutions for nearly 119 million recipients across various government healthcare programs[70]. - The company generates revenue from its Benefits Solutions based on the number of employees and retirees supported, as well as per transaction fees for client life events[67]. - The company has a recurring revenue model supported by a diverse client base, with a Net Promoter Score (NPS) increase of nearly 30 points since 2017[72]. Client Engagement and Satisfaction - Conduent's Net Promoter Score (NPS) has increased by nearly 30 points since 2017, reflecting improved client satisfaction[28]. - The company aims to enhance operational efficiency through automation and technology consolidation, targeting improved margins and reduced costs[41][42]. Strategic Focus and Investments - Conduent has signed agreements to divest its Curbside Management and Public Safety Solutions businesses, indicating a strategic focus on core operations[35]. - The company signed $2,257 million of new business TCV in 2023, a 20% increase compared to the prior year[132]. - Total new business pipeline at the end of 2023 was $24.8 billion, up from $22.6 billion in 2022[133]. - The company continues to invest in new learning platforms to enhance employee skill sets and engagement[127]. Workforce and Operations - The company employs approximately 59,000 associates globally, dedicated to delivering mission-critical services[36]. - As of December 31, 2023, 47% of the company's employees were located in high-cost countries, while 53% were in low-cost countries[86]. - The company employs approximately 59,000 associates across 26 countries, with 41% located in North America[106]. - Approximately 2 million learning assets were completed in 2023, indicating a strong engagement in employee development[127]. Financial Position and Debt - Net cash provided by operating activities for the year ended 2023 was $89 million, a decrease of $55 million compared to 2022[137]. - Total outstanding debt as of December 31, 2023, was $1,300 million, with $559 million forecasted for future interest payments[140]. - Cash and cash equivalents totaled $498 million as of December 31, 2023, expected to satisfy cash requirements over the next 12 months[153]. - The consolidated weighted-average interest rates for total debt were approximately 8.58% for the 2021 Term A Loan due 2026 and 9.78% for the 2021 Term B Loan due 2028[193]. - As of December 31, 2023, $743 million of the total debt of $1,300 million carried variable interest rates[193]. Legal and Risk Factors - The company is involved in various claims and legal proceedings, which may materially impact its financial position[183]. - The company’s ability to recover capital and other investments in connection with contracts is subject to risk, particularly with significant capital investments made for outsourcing contracts[158]. - The company’s results of operations may be adversely affected by geopolitical events, macroeconomic conditions, and natural disasters[159]. - The company relies significantly on third-party providers, and any failure in their performance could materially affect its financial condition[161]. - The company’s business model depends on retaining existing clients and attracting new work, which is crucial for growth[164]. Tax and Deferred Assets - The gross deferred tax assets amounted to $253 million with valuation allowances of $100 million as of December 31, 2023[169]. - Unrecognized tax benefits were $10 million, $12 million, and $23 million at December 31 for the years 2023, 2022, and 2021, respectively[170]. Innovation and Intellectual Property - The company holds approximately 631 U.S. patents and has 7 pending applications as of December 31, 2023[104].