Conduent(US:CNDT)2024-05-01 12:01Revenue Performance - Revenue for Q1 2024 was $921 million, a slight decrease of 0.1% from $922 million in Q1 2023[2] - Revenue for the three months ended March 31, 2024, was $921 million, slightly down from $922 million in the same period in 2023[43] - Revenue at Constant Currency for the three months ended March 31, 2024, was $919 million, compared to $925 million for the same period in 2023[43] - Revenue for Q1 2024 was $921 million, compared to $3,722 million for FY 2023[77] Income and Earnings - Net income for Q1 2024 was $99 million, compared to a net loss of $6 million in Q1 2023, indicating a significant turnaround[2] - Basic and diluted net income per share for Q1 2024 was $0.46, compared to a loss of $0.04 per share in Q1 2023[2] - Net Income for the three months ended March 31, 2024, was $99 million, compared to a loss of $6 million for the same period in 2023[43] - Adjusted diluted EPS from continuing operations was $0.46, a significant improvement from $(0.04) in the previous year[49] - GAAP net income for Q1 2024 was $99 million, a significant improvement from a loss of $6 million in Q1 2023[82] Operating Costs and Expenses - Total operating costs and expenses decreased to $794 million in Q1 2024 from $930 million in Q1 2023, representing a reduction of approximately 14.6%[2] - Adjusted Operating Income for the three months ended March 31, 2024, was $7 million, compared to $30 million for the same period in 2023[40] - Adjusted EBITDA for the three months ended March 31, 2024, was $69 million, down from $90 million in the same period in 2023[40] - Adjusted EBITDA for Q1 2024 was $69 million, down 23.3% from $90 million in Q1 2023, with an adjusted EBITDA margin of 7.5%[82][85] Cash Flow and Liquidity - Cash and cash equivalents decreased to $415 million as of March 31, 2024, down from $498 million at the end of 2023[8] - The company reported a net cash used in operating activities of $37 million for Q1 2024, compared to $12 million used in Q1 2023[11] - Cash flow from operating activities was $(37) million, a decline of 208% compared to $(12) million in Q1 2023[82] - Cash flows from investing activities showed a net inflow of $143 million in Q1 2024, compared to a net outflow of $22 million in Q1 2023[11] - Conduent's total liquidity position remains strong at nearly $1.0 billion, with long-dated debt maturities[86] Debt and Equity - Long-term debt reduced to $1,083 million as of March 31, 2024, down from $1,248 million at the end of 2023, reflecting a decrease of approximately 13.2%[8] - The company’s total equity increased to $705 million as of March 31, 2024, up from $633 million at the end of 2023[8] - The company prepaid $259 million of principal on its Term Loan B following the BenefitWallet portfolio transfer[84] Future Outlook - FY 2024 revenue outlook is projected between $3,600 million and $3,700 million[68] - Adjusted EBITDA margin for FY 2024 is expected to be between 8% and 9%[68] - Adjusted free cash flow as a percentage of adjusted EBITDA is projected to improve to 5% - 10% for FY 2024[68] - 2024 is expected to be the trough in the company's growth turnaround, with continued progress anticipated along its 3-year journey[78] Business Developments - New business signings annual contract value (ACV) reached $99 million in Q1 2024[77] - Net annual recurring revenue (ARR) activity metric for the trailing twelve months (TTM) was $17 million[77] - The company completed the first tranche of the BenefitWallet portfolio transfer, receiving $164 million, and expects to finalize the third tranche by the end of Q2 2024[83][84] - The company partnered with Microsoft and Oracle to enhance innovation and streamline transaction processing[90] - Conduent repurchased approximately 4.8 million shares of common stock during Q1 2024[89]