Q2 2024 Alight Inc Earnings Call Transcript
Key Points
- Alight Inc (ALIT) completed its two-year cloud migration program, resulting in $75 million of annual run rate cost savings.
- The company achieved a 9% growth in annual recurring revenue (ARR) bookings in the first half of 2024.
- Alight Inc (ALIT) retired $740 million in debt, reducing net leverage to 2.8 times on the last 12 months adjusted EBITDA.
- The company announced $155 million in share buybacks, which will retire over 3% of its shares.
- Adjusted EBITDA margins increased from 21.7% to 25%, with a mid-term target of 28%.
- Alight Inc (ALIT) experienced a decline in non-recurring project-based revenue, which is expected to be down approximately 20% in the second half of 2024.
- Total revenue for the second quarter was $550 million, a decline of 2% when excluding the impact of the exited hosted business.
- The company expects third-quarter profitability to be slightly lower compared to the previous year due to the decline in project revenue.
- Adjusted EPS for the year-to-date period was $0.25 compared to $0.28, driven by depreciation from the cloud migration.
- There is increased cost consciousness and lower client demand for non-recurring project-based work, impacting revenue outlook.
Good morning and thank you for holding. My name is Ryan and I will be your conference operator today. Welcome to Alight second quarter 2024 earnings conference call. (Operator Instructions) As a reminder, today's call is being recorded, and a replay of the call will be available on the Investor Relations' section of the company's website.
And now, I would like to turn it over to Jeremy Cohen, Head of Investor Relations at Alight to introduce today's speakers. Please go ahead, sir.
Good morning and thank you for joining us. Earlier today, the company issued a press release with second quarter 2024 results. A copy of the release can be found in the Investor Relations section of the company's website at investor.alight.com.
Before we get started, please note that some of the company's discussion today will include forward-looking statements. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
