Alight Reports Third Quarter 2024 Results

In This Article:

– Initiates quarterly dividend program –

– Revenue of $555 million –

– Key wins with Hewlett Packard Enterprise, Nokia and Siemens –

– Repurchased $75 million of common stock –

– Raises revenue guidance range –

CHICAGO, November 12, 2024--(BUSINESS WIRE)--Alight, Inc. (NYSE: ALIT), a leading cloud-based provider of integrated digital human capital and business solutions, today reported results for the third quarter ended September 30, 2024.

"Alight delivered third quarter results that exceeded our expectations on both revenue and profitability," said CEO Dave Guilmette. "As the market-leading services provider for employee benefits and wellbeing, Alight is uniquely positioned to guide the world’s largest and most complex clients on their people strategy journey. The value we now bring as a simplified company is driving momentum in our go-to market strategy and delivering stronger profitability. Our confidence in continued execution, alongside strong cash flow, is enabling a meaningful commitment to capital return, demonstrated by today's initiation of a quarterly dividend program."

Presentation of Results

Beginning with the quarter ended March 31, 2024, the Company began accounting for the assets, liabilities and operating results of the Payroll & Professional Services business as discontinued operations. As such, the financial information contained in this release is presented on a continuing operations basis, unless otherwise noted. The Payroll & Professional Services business transaction closed on July 12, 2024.

Third Quarter 2024 Highlights (all comparisons are relative to third quarter 2023)

  • Revenue decreased 0.4% to $555 million

  • Business Process as a Service (BPaaS) revenue grew 18.6% to $121 million, representing 21.8% of total revenue

  • Gross profit of $174 million and gross profit margin of 31.4%, compared to $166 million and 29.8% in the prior year period, respectively, and adjusted gross profit of $200 million and adjusted gross profit margin of 36.0%, compared to $192 million and 34.5% in the prior year period, respectively

  • Net loss of $44 million compared to the prior year period net loss of $40 million

  • Adjusted EBITDA of $118 million compared to the prior year period of $100 million

  • Diluted earnings (loss) per share of $(0.08) compared to $(0.09) in the prior year period, and adjusted diluted earnings per share of $0.09 compared to $0.09 per share in the prior year period

  • New wins or expanded relationships with companies including Hewlett Packard Enterprise, Nokia and Siemens

  • Repurchased $75 million of common stock under previously announced Accelerated Share Repurchase program