Conduent Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Conduent Incorporated reported its fourth quarter and full year 2024 financial results, indicating a year characterized by a shift to growth, improved client retention, and a significant reduction in debt [2][3]. Financial Performance - Q4 2024 revenue was $800 million, down 16.1% year-over-year from $953 million in Q4 2023. Full year revenue decreased by 9.8% to $3.356 billion from $3.722 billion in FY 2023 [4]. - Adjusted revenue for Q4 2024 was $800 million, a 6.0% decline from $851 million in Q4 2023, while full year adjusted revenue fell 4.3% to $3.176 billion from $3.320 billion [4]. - GAAP net loss for Q4 2024 was $12 million compared to a profit of $6 million in Q4 2023. However, full year GAAP net income was $426 million, a significant improvement from a loss of $296 million in FY 2023 [4][7]. - Adjusted EBITDA for Q4 2024 was $32 million, down 52.9% from $68 million in Q4 2023, with a margin of 4.0%. For the full year, adjusted EBITDA was $124 million, a 49.8% decrease from $247 million in FY 2023, with a margin of 3.9% [4][7]. Strategic Actions - The company completed three divestitures in 2024, generating a total of $879 million, which included the sale of the BenefitWallet portfolio for $425 million, Curbside Management and Public Safety businesses for $230 million, and Casualty Claims Solutions Business for $224 million [5][6]. - Proceeds from these divestitures were used to prepay all principal of Term Loan B and $137 million of Term Loan A, resulting in a 50% reduction in debt compared to year-end 2023 [3][6]. Future Outlook - For FY 2025, Conduent expects adjusted revenue to be between $3.100 billion and $3.250 billion, with adjusted EBITDA projected to be in the range of 4.5% to 5.5% [9][10]. - The company remains optimistic about achieving its expectations for 2025, focusing on further portfolio rationalization and delivering high-quality service to clients [3][9]. Recognition and Achievements - Conduent received several accolades in 2024, including being recognized as a "Leader" in various industry reports and earning spots on lists such as "GovTech Top 100 Company" and "Newsweek Top 100 Most Loved Workplaces" [12].