Conduent Inc (CNDT) Q3 2023 Earnings: Revenue at $932M, Pre-tax Loss of $313M
Conduent Inc (NASDAQ:CNDT) reports Q3 2023 revenue of $932M, a decrease from Q3 2022's $977M
Pre-tax income shows a loss of $313M
New business signings ACV stands at $154M
Adjusted EBITDA margin reported at 9.9%
Conduent Inc (NASDAQ:CNDT), a global technology-led business process solutions company, released its third quarter 2023 financial results on November 1, 2023. The company reported a revenue of $932M and a pre-tax loss of $313M. Despite the loss, the company's new business signings ACV stood at $154M, indicating potential for future growth.
Financial Performance
Conduent's Q3 2023 revenue was $932M, a decrease from Q3 2022's $977M. The company's pre-tax income showed a loss of $313M, significantly lower than the $23M income in the prior year period. The loss was primarily due to a goodwill impairment in the quarter, triggered by entering into the BenefitWallet agreement.
Adjusted EBITDA of $92M and Adjusted EBITDA Margin of 9.9% were ahead of expectations. However, the revenue and Adjusted Revenue for Q3 2023 were lower than the prior year period primarily due to some non-repeating items in the prior year.
Company's Outlook
Despite the pre-tax loss, Conduent's new business TCV pipeline grew 13% quarter-over-quarter, driven by a number of sizeable early stage opportunities in the Government Segment. The company's total liquidity position remains strong with long-dated debt maturities and a modest net leverage ratio. In the quarter, Conduent repurchased approximately 2 million shares of common stock in connection with its ongoing share repurchase program.
Key Highlights
Conduent's CEO, Cliff Skelton, commented on the results, stating,
Our Q3 results represented a continuation of consistent performance in Revenue and EBITDA, exceeding expectations. Our portfolio diversity provided for an ability to accommodate variation between businesses whereby revenue timing in one business can be shored up by advantages in another."
He also mentioned the company's strong sales pipeline and optimism for future sales. The company continues to deliver on its strategies, implementing its immediate payments offering with the Commonwealth of Virginia and announcing a significant Government Healthcare contract with the State of Texas.
Conduent's FY 2023 outlook estimates an adjusted revenue of $3,700M - $3,720M, with an adjusted EBITDA margin of approximately 10.0%.
Explore the complete 8-K earnings release (here) from Conduent Inc for further details.
This article first appeared on GuruFocus.
