Alight Inc (ALIT, Financial), a leading cloud-based provider of integrated digital human capital and business solutions, announced its Q3 2023 earnings on November 1, 2023. The company reported an 8.4% increase in revenue to $813 million, driven by an 8.7% increase in Employer Solutions revenue and 10.5% growth in Professional Services revenue. Alight also reported robust BPaaS bookings of $262 million, marking a growth of 26%.
Financial Highlights
Alight's gross profit for Q3 2023 was $257 million, with a gross profit margin of 31.6%, compared to $212 million and 28.3% in the prior year period. The company reported a net loss of $46 million, compared to a net loss of $45 million in the prior year period. Despite the net loss, Alight's adjusted EBITDA grew 18.8% over the prior year period to $158 million.
Alight's cash from operations stood at $251 million year-to-date in 2023, up $50 million or 25.0% from the prior year period. The company also repurchased $26 million of Common Stock under the share repurchase program.
Business Performance and Outlook
Alight's Employer Solutions revenues grew 8.7% to $701 million, driven by increased net commercial activity, project revenue, and volumes. The company's Professional Services revenues were up 10.5% to $105 million.
Looking ahead, Alight raised its 2023 adjusted EPS guidance range and expects revenue of $3.47 billion to $3.51 billion, representing growth of 11% to 12%. The company also anticipates an adjusted EBITDA of $735 million to $750 million and a BPaaS total contract value bookings of $700 million to $900 million.
Balance Sheet Overview
As of September 30, 2023, Alight's cash and cash equivalents balance was $276 million, total debt was $2,801 million, and total debt net of cash and cash equivalents was $2,525 million. During the quarter, the company completed a repricing of its 2028 term loan, decreasing its interest rate by 25 basis points for $6 million of anticipated annualized interest expense savings.
Explore the complete 8-K earnings release (here) from Alight Inc for further details.
