Q2 2024 Unisys Corp Earnings Call Transcript
Key Points
- Unisys Corp (UIS) achieved a 25% year-over-year increase in new business signings for the first half of 2024, indicating strong market demand for its solutions.
- The company reported a significant improvement in Ex-L&S gross margin, with a 350-basis point increase over the prior year, positioning it well for future profitability.
- Unisys Corp (UIS) has successfully signed more than three times the new logo TCV in the first half of 2024 compared to all of 2023, showcasing effective sales and marketing strategies.
- The company is experiencing strong growth in its Digital Workplace Solutions (DWS) and Cloud Applications & Infrastructure (CA&I) segments, driven by new business signings and recurring managed services.
- Unisys Corp (UIS) is leveraging AI and machine learning to enhance client solutions, with promising opportunities in AI-related consulting and data services, indicating a forward-looking approach to technology integration.
- Unisys Corp (UIS) reported a net loss of $12 million in the second quarter of 2024, although this was an improvement from the previous year's loss.
- The company's free cash flow was negative $19 million in the second quarter, primarily due to the timing of L&S collections, indicating cash flow challenges.
- Excluding license and support, the company's revenue was flat year-over-year, highlighting potential challenges in revenue growth outside of its L&S segment.
- The overall pipeline declined 7% quarter over quarter, driven by timing issues and strong conversion of new logo opportunities, which may impact future growth.
- Unisys Corp (UIS) faces ongoing legal and environmental costs, although these are expected to decline in the coming years, they currently impact cash flow and profitability.
Good morning and welcome to the Unisys Corp. second-quarter 2024 financial results and 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 second-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
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