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ALIT NYSE· Alight Inc.
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ALIT NYSE· Alight Inc.
Earnings report Q4 2023

Alight Inc. Sees Revenue Growth Across Segments

Segments of Revenue

Alight Inc.'s revenue for the year ended December 31, 2023, was $3.41 billion, up from $3.13 billion in the previous year. The Employer Solutions segment saw a 9% growth, contributing $2.96 billion to the total revenue. This segment's revenue was split between recurring revenue of $2.69 billion and project revenue of $268 million. The Professional Services segment also experienced growth, with a 13.5% increase, contributing $421 million to the total revenue. This segment's revenue was split between recurring revenue of $142 million and project revenue of $279 million. Additionally, the company recorded BPaaS revenue of $756 million, a 34% increase from the previous year.

Strengths

The company's strengths lie in its ability to grow revenue across its segments. The growth in the Employer Solutions segment and the Professional Services segment indicates a strong demand for Alight's offerings. The significant growth in BPaaS revenue suggests that the company's cloud-based products and solutions are gaining traction.

Challenges

Despite the increase in revenue, the company reported an operating loss of $101 million for the year ended December 31, 2023, compared to a loss of $14 million in the previous year. This indicates that the company is facing challenges in managing its operating expenses.

Noteworthy

The company's BPaaS Solutions, which are central to the Alight Worklife® platform and its next-generation product suite, recorded a significant growth of 34% compared to the previous year. This suggests that the company's focus on cloud-based solutions is paying off.

Summary

Alight Inc. has demonstrated strong revenue growth across its segments, with significant growth in its BPaaS revenue. However, the company is facing challenges in managing its operating expenses, as indicated by the reported operating loss. The growth in BPaaS revenue is a positive sign, suggesting that the company's focus on cloud-based solutions is yielding results.

Source documents

Form 10-K  filed on Feb 29, 2024
19 pages scanned

Reference data

Company financials Q4 revenue 960M
Analyst estimates Q4 EPS beat by 137.62%
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