Alight Reports First Quarter 2022 Results
Alight (NYSE: ALIT) reported strong first-quarter results for 2022, achieving a 5.2% increase in total revenue to $725 million. Employer Solutions revenue grew 6.1% due to acquisitions and net commercial activity. Business Process as a Service (BPaaS) revenue surged 22.6% to $114 million, with BPaaS bookings more than tripling to $122 million. The company reiterated its full-year outlook, targeting revenue growth of 6% to 7% and adjusted EBITDA of $650 million to $662 million.
- 5.2% total revenue growth to $725 million.
- 6.1% increase in Employer Solutions revenue driven by acquisitions.
- BPaaS revenue growth of 22.6% to $114 million.
- BPaaS bookings tripled to $122 million.
- Improved net loss of $(13) million from $(21) million.
- Professional Services revenue decreased 2.2% to $90 million.
- Increased selling, general and administrative expenses to $140 million.
– Achieved
– Delivered Strong BPaaS Revenue Growth of
– BPaaS Bookings More Than Tripled to
– Reiterating 2022 Revenue and Adjusted EBITDA Outlook and 2023
“Coming out of the pandemic, companies continue to struggle with attracting and retaining a more discerning workforce. When we combine the simple and seamless technology experience of the Alight Worklife® platform with the data and analytics of our content cloud solutions, and global delivery capabilities, we can power more confident decisions for employees and provide companies with the information they need to make smarter decisions around their people. This powerful combination is the Alight BPaaS model,” said Chief Executive Officer
First Quarter 2022 and Subsequent Highlights* (all comparisons are relative to first quarter 2021)
-
Increased revenue
5.2% to$725 million $(13) million $(21) million -
Adjusted EBITDA grew
6.8% to$142 million -
Business Process as a Service (BPaaS) revenue grew
22.6% , represents15.7% of total revenue -
BPaaS bookings on a total contract value basis more than tripled to
$122 million -
Have over
85% of anticipated 2022 revenue under contract - Secured new wins and expanded relationships with NEC, Genuine Parts Company, Adevinta and Rituals
* The Company’s discussion of the results of operations compares the results of the Successor three months ended
First Quarter 2022 Consolidated Results
For the first quarter, total revenue for the Successor three months ended
Gross profit for the Successor three months ended
Selling, general and administrative expenses for the Successor three months ended
Interest expense for the Successor three months ended
Loss before income tax expense for the Successor three months ended
First Quarter 2022 Segment Results
Employer Solutions
Employer Solutions is driven by Alight’s digital, software and AI-led capabilities and spans total employee wellbeing and engagement, including integrated benefits administration, healthcare navigation, financial health, employee wellness and payroll.
Employer Solutions total revenues for the Successor three months ended
Employer Solutions gross profit for the Successor three months ended
Employer Solutions Adjusted EBITDA for the Successor three months ended
Professional Services
Professional Services total revenues for the Successor three months ended
Professional Services gross profit for the Successor three months ended
Professional Services Adjusted EBITDA for the Successor three months ended
Hosted Business
Hosted Business revenues for the Successor three months ended
Hosted Business gross profit (loss) for the Successor three months ended
Hosted Business Adjusted EBITDA for the Successor three months ended
Balance Sheet Highlights
As of
In the first quarter 2022, the Company updated the benchmark reference rate on
Business Outlook
The Company is affirming its full-year 2022 outlook:
-
Revenue of
$3.09 $3.12 billion 6% to7% ). -
Adjusted EBITDA in the range of
$650 million $662 million -
Adjusted diluted EPS of
$0.54 $0.60 -
BPaaS total contract value bookings of
$680 $700 million
Earnings Conference Call and Webcast Information
A conference call to discuss the Company’s first-quarter 2022 financial results is scheduled for today,
About Alight Solutions
With an unwavering belief that a company’s success starts with its people, Alight Solutions is a leading cloud-based provider of integrated digital human capital and business solutions. Leveraging proprietary AI and data analytics, Alight optimizes business process as a service (BPaaS) to deliver superior outcomes for employees and employers across a comprehensive portfolio of services. Alight allows employees to enrich their health, wealth and work while enabling global organizations to achieve a high-performance culture. Alight’s more than 16,000 dedicated colleagues serve more than 30 million employees and family members. Learn how Alight helps organizations of all sizes, including over
For more information, please visit www.alight.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to the expectations regarding the expected benefits of recent acquisitions and investments in our business, expectations regarding Alight’s business, financial results, liquidity and capital resources and other non-historical statements, including the statements in the “Business Outlook” section of this press release. In some cases, these forward-looking statements can be identified by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties including, among others, risks related to the level of business activity of our clients, risks related to the impact of the COVID-19 pandemic, including as a result of new strains or variants of the virus, competition in our industry, the performance of our information technology systems and networks, our ability to maintain the security and privacy of confidential and proprietary information and changes in regulation. Additional factors that could cause Alight’s results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of Alight’s Annual Report on Form 10-K, filed with the
Financial Statement Presentation
This press release includes certain historical consolidated financial and other data for
As a result of the Business Combination, for accounting purposes, the Company is the acquirer and
Non-GAAP Financial Measures
The Company’s discussion of the results of operations compares the results of the Successor three months ended
Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and intangible amortization adjusted for the impact of certain non-cash and other items that we do not consider in the evaluation of ongoing operational performance, is a non-GAAP financial measure used by management and our stakeholders to provide useful supplemental information that enables a better comparison of our performance across periods. Both Adjusted EBITDA and Adjusted EBITDA less Capital Expenditures are non-GAAP measures that are used by management and stakeholders to evaluate our core operating performance.
Adjusted Net Income, which is defined as net loss attributable to
Adjusted Diluted Earnings per Share is defined as Adjusted Net Income divided by the adjusted weighted-average number of shares of
Reconciliations of the historical non-GAAP financial measures used in this press release are included in the attached tables. The presentation of non-GAAP financial measures is used to enhance our investors’ and lenders’ understanding of certain aspects of our financial performance. This discussion is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Reconciliations of projected non-GAAP measures included in the “Business Outlook” section of this press release are not included as they cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) |
|||||||||||
|
|
Successor |
|
|
|
Predecessor |
|
||||
|
|
Three Months Ended |
|
|
|
Three Months Ended |
|
||||
|
|
|
|
|
|
|
|
||||
(in millions, except per share amounts) |
|
2022 |
|
|
|
2021 |
|
||||
Revenue |
|
$ |
|
725 |
|
|
|
$ |
|
689 |
|
Cost of services, exclusive of depreciation and amortization |
|
|
|
491 |
|
|
|
|
|
452 |
|
Depreciation and amortization |
|
|
|
11 |
|
|
|
|
|
19 |
|
Gross Profit |
|
|
|
223 |
|
|
|
|
|
218 |
|
|
|
|
|
|
|
|
|
|
|
||
Operating Expenses |
|
|
|
|
|
|
|
|
|
||
Selling, general and administrative |
|
|
|
140 |
|
|
|
|
|
117 |
|
Depreciation and intangible amortization |
|
|
|
85 |
|
|
|
|
|
55 |
|
Total operating expenses |
|
|
|
225 |
|
|
|
|
|
172 |
|
Operating (Loss) Income |
|
|
|
(2 |
) |
|
|
|
|
46 |
|
Other Expense |
|
|
|
|
|
|
|
|
|
||
Gain from change in fair value of financial instruments |
|
|
|
(13 |
) |
|
|
|
|
— |
|
Gain from change in fair value of tax receivable agreement |
|
|
|
(5 |
) |
|
|
|
|
— |
|
Interest expense |
|
|
|
29 |
|
|
|
|
|
62 |
|
Other (income) expense, net |
|
|
|
(1 |
) |
|
|
|
|
8 |
|
Total other expense, net |
|
|
|
10 |
|
|
|
|
|
70 |
|
Loss Before Income Tax Expense (Benefit) |
|
|
|
(12 |
) |
|
|
|
|
(24 |
) |
Income tax expense (benefit) |
|
|
|
1 |
|
|
|
|
|
(3 |
) |
Net Loss |
|
|
|
(13 |
) |
|
|
|
|
(21 |
) |
Net loss attributable to noncontrolling interests |
|
|
|
(2 |
) |
|
|
|
|
— |
|
Net Loss Attributable to |
|
$ |
|
(11 |
) |
|
|
$ |
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
||
Earnings Per Share |
|
|
|
|
|
|
|
|
|
||
Basic net loss per share |
|
$ |
|
(0.02 |
) |
|
|
|
|
|
|
Diluted net loss per share |
|
$ |
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net Loss |
|
$ |
|
(13 |
) |
|
|
$ |
|
(21 |
) |
Other comprehensive income, net of tax: |
|
|
|
|
|
|
|
|
|
||
Change in fair value of derivatives |
|
|
|
47 |
|
|
|
|
|
17 |
|
Foreign currency translation adjustments |
|
|
|
(3 |
) |
|
|
|
|
4 |
|
Total other comprehensive income, net of tax: |
|
|
|
44 |
|
|
|
|
|
21 |
|
Comprehensive Income Before Noncontrolling Interests |
|
|
|
31 |
|
|
|
|
|
— |
|
Comprehensive income attributable to noncontrolling interests |
|
|
|
6 |
|
|
|
|
|
— |
|
Comprehensive Income Attributable to |
|
$ |
|
25 |
|
|
|
$ |
|
— |
|
|
||||||||||
Condensed Consolidated Balance Sheets |
||||||||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
|
|
2022 |
|
|
2021 |
|
||||
(in millions, except share and per share amounts) |
|
(Unaudited) |
|
|
|
|
|
|||
Assets |
|
|
|
|
|
|
|
|
||
Current Assets |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
|
326 |
|
|
$ |
|
372 |
|
Receivables, net |
|
|
|
546 |
|
|
|
|
515 |
|
Other current assets |
|
|
|
254 |
|
|
|
|
302 |
|
Total Current Assets Before Fiduciary Assets |
|
|
|
1,126 |
|
|
|
|
1,189 |
|
Fiduciary assets |
|
|
|
1,607 |
|
|
|
|
1,280 |
|
Total Current Assets |
|
|
|
2,733 |
|
|
|
|
2,469 |
|
|
|
|
|
3,627 |
|
|
|
|
3,638 |
|
Intangible assets, net |
|
|
|
4,090 |
|
|
|
|
4,170 |
|
Fixed assets, net |
|
|
|
257 |
|
|
|
|
236 |
|
Deferred tax assets, net |
|
|
|
4 |
|
|
|
|
3 |
|
Other assets |
|
|
|
510 |
|
|
|
|
472 |
|
Total Assets |
|
$ |
|
11,221 |
|
|
$ |
|
10,988 |
|
|
|
|
|
|
|
|
|
|
||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
||
Liabilities |
|
|
|
|
|
|
|
|
||
Current Liabilities |
|
|
|
|
|
|
|
|
||
Accounts payable and accrued liabilities |
|
$ |
|
319 |
|
|
$ |
|
406 |
|
Current portion of long-term debt |
|
|
|
40 |
|
|
|
|
38 |
|
Other current liabilities |
|
|
|
394 |
|
|
|
|
401 |
|
Total Current Liabilities Before Fiduciary Liabilities |
|
|
|
753 |
|
|
|
|
845 |
|
Fiduciary liabilities |
|
|
|
1,607 |
|
|
|
|
1,280 |
|
Total Current Liabilities |
|
|
|
2,360 |
|
|
|
|
2,125 |
|
Deferred tax liabilities |
|
|
|
52 |
|
|
|
|
36 |
|
Long-term debt |
|
|
|
2,818 |
|
|
|
|
2,830 |
|
Tax receivable agreement |
|
|
|
574 |
|
|
|
|
581 |
|
Financial instruments |
|
|
|
122 |
|
|
|
|
135 |
|
Other liabilities |
|
|
|
311 |
|
|
|
|
353 |
|
Total Liabilities |
|
$ |
|
6,237 |
|
|
$ |
|
6,060 |
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
||
Stockholders' Equity |
|
|
|
|
|
|
|
|
||
Class A Common Stock; |
|
$ |
|
— |
|
|
$ |
|
— |
|
Class B Common Stock; |
|
|
|
— |
|
|
|
|
— |
|
Class V Common Stock; |
|
|
|
— |
|
|
|
|
— |
|
Class Z Common Stock; |
|
|
|
— |
|
|
|
|
— |
|
Additional paid-in-capital |
|
|
|
4,267 |
|
|
|
|
4,228 |
|
Retained deficit |
|
|
|
(107 |
) |
|
|
|
(96 |
) |
Accumulated other comprehensive income |
|
|
|
44 |
|
|
|
|
8 |
|
|
|
$ |
|
4,204 |
|
|
$ |
|
4,140 |
|
Noncontrolling interest |
|
|
|
780 |
|
|
|
|
788 |
|
Total Stockholders' Equity |
|
$ |
|
4,984 |
|
|
$ |
|
4,928 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
|
11,221 |
|
|
$ |
|
10,988 |
|
|
|||||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||||
(Unaudited) |
|||||||||||
|
|
Successor |
|
|
|
Predecessor |
|
||||
|
|
Three Months Ended |
|
|
|
Three Months Ended |
|
||||
|
|
|
|
|
|
|
|
||||
(in millions) |
|
2022 |
|
|
|
2021 |
|
||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
||
Net loss |
|
$ |
|
(13 |
) |
|
|
$ |
|
(21 |
) |
Adjustments to reconcile net loss to net cash provided by operations: |
|
|
|
|
|
|
|
|
|
||
Depreciation |
|
|
|
17 |
|
|
|
|
|
24 |
|
Intangible amortization expense |
|
|
|
79 |
|
|
|
|
|
50 |
|
Noncash lease expense |
|
|
|
7 |
|
|
|
|
|
4 |
|
Financing fee and premium amortization |
|
|
|
(1 |
) |
|
|
|
|
5 |
|
Share-based compensation expense |
|
|
|
33 |
|
|
|
|
|
2 |
|
Gain from change in fair value of financial instruments |
|
|
|
(13 |
) |
|
|
|
|
— |
|
Gain from change in fair value of tax receivable agreement |
|
|
|
(5 |
) |
|
|
|
|
— |
|
Other |
|
|
|
3 |
|
|
|
|
|
1 |
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
|
||
Receivables |
|
|
|
(37 |
) |
|
|
|
|
52 |
|
Accounts payable and accrued liabilities |
|
|
|
(82 |
) |
|
|
|
|
(31 |
) |
Other assets and liabilities |
|
|
|
31 |
|
|
|
|
|
(47 |
) |
Cash provided by operating activities |
|
$ |
|
19 |
|
|
|
$ |
|
39 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
||
Capital expenditures |
|
|
|
(41 |
) |
|
|
|
|
(27 |
) |
Cash used for investing activities |
|
$ |
|
(41 |
) |
|
|
$ |
|
(27 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
||
Net increase in fiduciary liabilities |
|
|
|
327 |
|
|
|
|
|
179 |
|
Members' equity unit repurchase |
|
|
|
— |
|
|
|
|
|
(2 |
) |
Borrowings from banks |
|
|
|
54 |
|
|
|
|
|
54 |
|
Financing fees |
|
|
|
(3 |
) |
|
|
|
|
— |
|
Repayments to banks |
|
|
|
(60 |
) |
|
|
|
|
(62 |
) |
Principal payments on finance lease obligations |
|
|
|
(8 |
) |
|
|
|
|
(6 |
) |
Settlements of interest rate swaps |
|
|
|
(4 |
) |
|
|
|
|
(7 |
) |
Tax payment for shares/units withheld in lieu of taxes |
|
|
|
(1 |
) |
|
|
|
|
— |
|
Contingent consideration payments |
|
|
|
— |
|
|
|
|
|
(1 |
) |
Cash provided by financing activities |
|
$ |
|
305 |
|
|
|
$ |
|
155 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
|
(2 |
) |
|
|
|
|
1 |
|
Net increase in cash, cash equivalents and restricted cash |
|
|
|
281 |
|
|
|
|
|
168 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
|
1,652 |
|
|
|
|
|
1,536 |
|
Cash, cash equivalents and restricted cash at end of period |
$ | 1,933 |
1,704 |
||||||||
|
|||||||||||
Reconciliation of Net Loss to Adjusted EBITDA and Adjusted EBITDA less Capital Expenditures |
|||||||||||
(Unaudited) |
|||||||||||
|
|
Successor |
|
|
|
Predecessor |
|
||||
|
|
Three Months Ended |
|
|
|
Three Months Ended |
|
||||
|
|
|
|
|
|
|
|
||||
(in millions) |
|
2022 |
|
|
|
2021 |
|
||||
Net Loss |
|
$ |
|
(13 |
) |
|
|
$ |
|
(21 |
) |
Interest expense |
|
|
|
29 |
|
|
|
|
|
62 |
|
Income tax expense (benefit) |
|
|
|
1 |
|
|
|
|
|
(3 |
) |
Depreciation |
|
|
|
17 |
|
|
|
|
|
24 |
|
Intangible amortization |
|
|
|
79 |
|
|
|
|
|
50 |
|
EBITDA |
|
|
|
113 |
|
|
|
|
|
112 |
|
Share-based compensation |
|
|
|
33 |
|
|
|
|
|
2 |
|
Transaction and integration expenses(1) |
|
|
|
6 |
|
|
|
|
|
— |
|
Non-recurring professional expenses(2) |
|
|
|
— |
|
|
|
|
|
9 |
|
Restructuring |
|
|
|
6 |
|
|
|
|
|
7 |
|
Gain from change in fair value of financial instruments |
|
|
|
(13 |
) |
|
|
|
|
— |
|
Gain from change in fair value of tax receivable agreement |
|
|
|
(5 |
) |
|
|
|
|
— |
|
Other(3) |
|
|
|
2 |
|
|
|
|
|
3 |
|
Adjusted EBITDA |
|
$ |
|
142 |
|
|
|
$ |
|
133 |
|
Capital expenditures |
|
|
|
(41 |
) |
|
|
|
|
(27 |
) |
Adjusted EBITDA less Capital Expenditures |
|
$ |
|
101 |
|
|
|
$ |
|
106 |
|
Revenue |
|
$ |
|
725 |
|
|
|
$ |
|
689 |
|
Adjusted EBITDA Margin(4) |
|
|
|
19.6 |
% |
|
|
|
|
19.3 |
% |
(1) |
Transaction and integration expenses relate to acquisition activity. |
|
(2) |
Non-recurring professional expenses includes external advisor and legal costs related to the Company's Business Combination completed in 2021. |
|
(3) |
For the three months ended |
|
(4) |
Adjusted EBITDA Margin defined as Adjusted EBITDA as a percentage of revenue. |
Reconciliation of Net Loss to Adjusted Net Income and Adjusted Diluted Earnings per Share (Unaudited) |
|||||
|
|
Three Months Ended |
|
||
|
|
|
|
||
(in millions, except share and per share amounts) |
|
2022 |
|
||
Numerator: |
|
|
|
|
|
Net Loss Attributable to |
|
$ |
|
(11 |
) |
Conversion of noncontrolling interest |
|
|
|
(2 |
) |
Intangible amortization |
|
|
|
79 |
|
Share-based compensation |
|
|
|
33 |
|
Transaction and integration expenses |
|
|
|
6 |
|
Restructuring |
|
|
|
6 |
|
Gain from change in fair value of financial instruments |
|
|
|
(13 |
) |
Gain from change in fair value of tax receivable agreement |
|
|
|
(5 |
) |
Other |
|
|
|
2 |
|
Tax effect of adjustments(1) |
|
|
|
(28 |
) |
Adjusted Net Income |
|
$ |
|
67 |
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
Weighted average shares outstanding - basic and diluted |
|
|
|
456,838,216 |
|
Exchange of noncontrolling interest units(2) |
|
|
|
76,220,431 |
|
Impact of unvested RSUs(3) |
|
|
|
11,137,394 |
|
Adjusted shares of Class A Common Stock outstanding - diluted |
|
|
|
544,196,041 |
|
|
|
|
|
— |
|
Basic and Diluted Net Loss Per Share |
|
$ |
|
(0.02 |
) |
Adjusted Diluted Earnings Per Share(4)(5) |
|
$ |
|
0.12 |
|
(1) |
Income tax effects have been calculated based on statutory tax rates for both |
|
(2) |
Assumes the full exchange of the units held by noncontrolling interests for shares of Class A Common Stock of |
|
(3) |
Includes non-vested time-based restricted stock units that were determined to be antidilutive for |
|
(4) |
Excludes two tranches of contingently issuable earnout shares: (i) 7.5 million shares will be issued if the volume-weighted average price ("VWAP") of the Company's Class A Common Stock is > |
|
(5) |
Excludes 35,501,399 performance-based units, which represents maximum achievement of the respective performance conditions for units granted during the year ended |
|
|||||||||||
Reconciliation of Segment Adjusted EBITDA to Loss Before Income Tax Expense (Benefit) |
|||||||||||
(Unaudited) |
|||||||||||
|
|
Segment Profit (4) |
|
||||||||
|
|
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
|
Predecessor |
|
||||
|
|
Three Months Ended |
|
|
|
Three Months Ended |
|
||||
|
|
|
|
|
|
|
|
||||
(in millions) |
|
2022 |
|
|
|
2021 |
|
||||
Employer Solutions |
|
$ |
|
142 |
|
|
|
$ |
|
136 |
|
Professional Services |
|
|
|
— |
|
|
|
|
|
— |
|
Hosted Business |
|
|
|
— |
|
|
|
|
|
(3 |
) |
Total Adjusted EBITDA of all reportable segments |
|
|
|
142 |
|
|
|
|
|
133 |
|
Share-based compensation |
|
|
|
33 |
|
|
|
|
|
2 |
|
Transaction and integration expenses (1) |
|
|
|
6 |
|
|
|
|
|
— |
|
Non-recurring professional expenses(2) |
|
|
|
— |
|
|
|
|
|
9 |
|
Restructuring |
|
|
|
6 |
|
|
|
|
|
7 |
|
Other(3) |
|
|
|
3 |
|
|
|
|
|
(5 |
) |
Depreciation |
|
|
|
17 |
|
|
|
|
|
24 |
|
Intangible amortization |
|
|
|
79 |
|
|
|
|
|
50 |
|
Operating (Loss) Income |
|
|
|
(2 |
) |
|
|
|
|
46 |
|
Gain from change in fair value of financial instruments |
|
|
|
(13 |
) |
|
|
|
|
— |
|
Gain from change in fair value of tax receivable agreement |
|
|
|
(5 |
) |
|
|
|
|
— |
|
Interest expense |
|
|
|
29 |
|
|
|
|
|
62 |
|
Other (income) expense, net |
|
|
|
(1 |
) |
|
|
|
|
8 |
|
Loss Before Income Tax Expense (Benefit) |
|
$ |
|
(12 |
) |
|
|
$ |
|
(24 |
) |
(1) |
Transaction and integration expenses relate to acquisition activity. |
|
(2) |
Non-recurring professional expenses includes external advisor and legal costs related to the Company's Business Combination completed in 2021. |
|
(3) |
For the three months ended |
|
(4) |
Segment Profit is defined as Segment Adjusted EBITDA. |
|
|||||||||||
Other Select Financial Data |
|||||||||||
(Unaudited) |
|||||||||||
|
|
Successor |
|
|
|
|
Predecessor |
|
|||
|
|
|
Three Months Ended |
|
|
|
|
Three Months Ended |
|
||
|
|
|
|
|
|
|
|
|
|
||
($ in millions) |
|
|
2022 |
|
|
|
|
2021 |
|
||
Segment Revenues |
|
|
|
|
|
|
|
|
|
||
Employer Solutions: |
|
|
|
|
|
|
|
|
|
||
Recurring revenue |
|
|
$ |
570 |
|
|
|
|
$ |
533 |
|
Project revenue |
|
|
|
53 |
|
|
|
|
|
54 |
|
Total Employer Solutions |
|
|
|
623 |
|
|
|
|
|
587 |
|
Professional Services: |
|
|
|
|
|
|
|
|
|
||
Recurring revenue |
|
|
|
30 |
|
|
|
|
|
29 |
|
Project revenue |
|
|
|
60 |
|
|
|
|
|
63 |
|
Total Professional Services |
|
|
|
90 |
|
|
|
|
|
92 |
|
Hosted Business: |
|
|
|
|
|
|
|
|
|
||
Recurring and total Hosted Business revenue |
|
|
|
12 |
|
|
|
|
|
10 |
|
Total revenue |
|
|
$ |
725 |
|
|
|
|
$ |
689 |
|
|
|
|
|
|
|
|
|
|
|
||
Segment Gross Profit |
|
|
|
|
|
|
|
|
|
||
Employer Solutions |
|
|
$ |
204 |
|
|
|
|
$ |
201 |
|
Professional Services |
|
|
|
19 |
|
|
|
|
|
20 |
|
Hosted Business |
|
|
|
- |
|
|
|
|
|
(3 |
) |
Total gross profit |
|
|
$ |
223 |
|
|
|
|
$ |
218 |
|
|
|
|
|
|
|
|
|
|
|
||
Segment Gross Margin |
|
|
|
|
|
|
|
|
|
||
Employer Solutions |
|
|
|
32.7 |
% |
|
|
|
|
34.2 |
% |
Professional Services |
|
|
|
21.1 |
% |
|
|
|
|
21.7 |
% |
Hosted Business |
|
|
|
0.0 |
% |
|
|
|
|
(30.0 |
%) |
Total gross margin |
|
|
|
30.8 |
% |
|
|
|
|
31.6 |
% |
|
|
|
|
|
|
|
|
|
|
||
Segment Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
||
Employer Solutions |
|
|
$ |
142 |
|
|
|
|
$ |
136 |
|
Professional Services |
|
|
|
- |
|
|
|
|
|
- |
|
Hosted Business |
|
|
|
- |
|
|
|
|
|
(3 |
) |
Total adjusted EBITDA(1) |
|
|
$ |
142 |
|
|
|
|
$ |
133 |
|
|
|
|
|
|
|
|
|
|
|
||
Segment Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
||
Employer Solutions |
|
|
|
22.8 |
% |
|
|
|
|
23.2 |
% |
Professional Services |
|
|
|
0.0 |
% |
|
|
|
|
0.0 |
% |
Hosted Business |
|
|
|
0.0 |
% |
|
|
|
|
(30.0 |
%) |
Total adjusted EBITDA margin |
|
|
|
19.6 |
% |
|
|
|
|
19.3 |
% |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Revenue (3) |
|
|
$ |
713 |
|
|
|
|
$ |
679 |
|
Gross profit |
|
|
$ |
223 |
|
|
|
|
$ |
221 |
|
Gross margin |
|
|
|
31.3 |
% |
|
|
|
|
32.5 |
% |
Adjusted EBITDA(1) |
|
|
$ |
142 |
|
|
|
|
$ |
136 |
|
Adjusted EBITDA margin |
|
|
|
19.9 |
% |
|
|
|
|
20.0 |
% |
|
|
|
|
|
|
|
|
|
|
||
Other Key Statistics |
|
|
|
|
|
|
|
|
|
||
Recurring revenue |
|
|
$ |
612 |
|
|
|
|
$ |
572 |
|
BPaaS revenue |
|
|
$ |
114 |
|
|
|
|
$ |
93 |
|
BPaaS revenue as % of total revenue |
|
|
|
15.7 |
% |
|
|
|
|
13.5 |
% |
BPaaS bookings(2) |
|
|
$ |
122 |
|
|
|
|
$ |
40 |
|
(1) |
A table reconciling Adjusted EBITDA to the closest comparable GAAP measure appears above. |
|
(2) |
BPaaS bookings are reported on a total contract value ("TCV") basis. |
|
(3) |
Total Company Revenue excluding Hosted Business is calculated by adding up Employer Solutions and Professional Services Segment Revenue shown above. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220509005254/en/
Investors:
Alight Investor Relations
investor.relations@alight.com
Media:
mackenzie.lucas@alight.com
Source: Alight Solutions
FAQ
What was Alight's total revenue growth in Q1 2022?
How much did Alight's BPaaS revenue grow in Q1 2022?
What is Alight's 2022 revenue outlook?
How did Alight's Professional Services revenue perform in Q1 2022?
What was the net loss reported by Alight in Q1 2022?
