Q1 2024 Unisys Corp Earnings Call Transcript
Key Points
- Unisys Corp (UIS) reported revenue and profit slightly ahead of expectations for the first quarter, indicating a solid start to the year.
- The company is on track to meet its full-year financial guidance and is making progress towards long-term cash flow objectives.
- Unisys Corp (UIS) saw a 4% year-over-year growth in Accel revenue and expects growth to accelerate in the second half of the year.
- There was a significant expansion in first quarter XLNS gross margin year over year, driven by additional efficiencies and near-term investments for future cost savings.
- New logo Total Contract Value (TCV) more than doubled in the first quarter both year-over-year and sequentially, indicating strong market demand and potential for future revenue growth.
- Total company TCV declined by 1% and XLNS TCV declined by 20% year over year, primarily due to the timing of the renewal schedule.
- XLNS new business TCV, excluding renewals, was down 2% year over year, although with a favorable mix of projects contributing to revenue later in the year.
- First quarter client signings showed a decline in backlog approximately $200 million on a sequential basis, largely due to the seasonal nature of project work.
- The company reported a net loss of $150 million in the first quarter, significantly impacted by a non-cash settlement loss related to a group annuity contract purchase.
- First quarter non-GAAP operating profit margin and adjusted EBITDA margin declined year over year due to the impact of license and support renewal timing.
Good day and welcome to the Unisys Corporation first quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Michaela Pewarski, Vice President of Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone. Thank you for joining us. Yesterday afternoon, Unisys released its first quarter financial results. I'm joined this morning to discuss those results by Peter Altabef, our Chair and CEO, Deb McCann, our CFO, and Mike Thomson, our President and COO, who will participate in the Q&A session.
As a reminder, certain statements in today's conference call contain estimates and other forward-looking statements within the meaning of the securities laws. We caution listeners that the current expectations, assumptions and beliefs forming the basis for our forward-looking statements include many factors that are beyond our ability to control or estimate precisely, which could cause results to
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