Post by icemandios on May 4, 2022 13:03:01 GMT
Conduent Announces First Quarter 2022 Financial Results
Key Q1 2022 Highlights
Revenue: $967M
Adj. Revenue (1) : $960M
Net Income: $136M
Adj. EBITDA Margin (1) : 11.1%
Annual Contract Value (ACV) (2) : $167M
Annual Recurring Revenue (ARR) signings: $107M
Total Contract Value (TCV) new business signings: $464M
Net ARR Activity Metric (2) (TTM): $102M
FLORHAM PARK, N.J., May 03, 2022 (GLOBE NEWSWIRE) -- Conduent (NASDAQ: CNDT), a business process services and solutions company, today announced its first quarter 2022 financial results.
Cliff Skelton, Conduent President and CEO stated, “Q1 2022 was another solid quarter where we met or exceeded expectations. New business sales were strong, with Total Contract Value signed in the quarter increasing by more than 30 percent year-over-year, representing our highest-ever Q1 performance. We recently announced our intention to separate the Transportation business to unlock additional value and we believe the best course of action will be to spin that business as opposed to a sale, at this point in time. It’s important to note that our dedicated associates continue to be the backbone of our company and culture, as reflected in the numerous recognitions we received in Q1. We are encouraged about the future because, even as economic conditions remain volatile, clients continue to seek business process outsourcing capabilities to increase efficiency, enhance customer experience and improve performance. We continue to be strongly positioned as a partner of choice to provide these critical services and solutions.
Q1 2022 Performance Commentary
Revenue and Adjusted Revenue were lower than prior year period, primarily driven by significant non-recurring stimulus payments volume in our Government Services business in the prior year.
Net income was $136M up significantly versus prior year period, reflecting the gain on sale of the Midas divestiture and insurance recoveries relating to a previously disclosed legal matter.
Adjusted EBITDA of $107M and Adjusted EBITDA Margin of 11.1% benefited from a one-time recovery of $14M in defense costs as a portion of the settlement with insurance carriers relating to a previously disclosed legal matter.
Sales performance was up 32% in new business TCV signings at $464M, with new business ARR up 14% at $107M versus Q1 2021. Significant TCV wins in the Transportation segment made this one of the strongest starts to the year for new business signings. The Net ARR Activity Metric for Q1 2022 was $102M, up 17% versus Q1 2021 and continues to be positive.
Additional Q1 2022 Performance Highlights
Conduent achieved several milestones in client satisfaction, industry recognition and culture, including;
Recognized as a Supplier of the Year by General Motors for the second year in a row
Named a Leader on Everest Group Healthcare Payer Operations PEAK Matrix Assessment 2022
Recognized as a Rising Leader CX Operations Transformation - Cost Optimization Capability by NelsonHall
Named a Top 15 Service & Technology Provider Standout by the U.S. Information Services Group (ISG)
Named to Government Technology magazine’s 2022 “GovTech 100” for “making a difference” in working with state and local government agencies across the United States
Earned a perfect score of 100 on the Human Rights Campaign Foundation’s 2022 Corporate Equality Index (CEI), measuring policies and practices related to LGBTQ workplace equality
Honored by Comparably with two Best Places to Work Awards for 2021, including one of the Best Companies for Women and one of the Best Companies for Diversity, placing Conduent among the Top 100 highest-rated companies in these categories
10-Q
Key Q1 2022 Highlights
Revenue: $967M
Adj. Revenue (1) : $960M
Net Income: $136M
Adj. EBITDA Margin (1) : 11.1%
Annual Contract Value (ACV) (2) : $167M
Annual Recurring Revenue (ARR) signings: $107M
Total Contract Value (TCV) new business signings: $464M
Net ARR Activity Metric (2) (TTM): $102M
FLORHAM PARK, N.J., May 03, 2022 (GLOBE NEWSWIRE) -- Conduent (NASDAQ: CNDT), a business process services and solutions company, today announced its first quarter 2022 financial results.
Cliff Skelton, Conduent President and CEO stated, “Q1 2022 was another solid quarter where we met or exceeded expectations. New business sales were strong, with Total Contract Value signed in the quarter increasing by more than 30 percent year-over-year, representing our highest-ever Q1 performance. We recently announced our intention to separate the Transportation business to unlock additional value and we believe the best course of action will be to spin that business as opposed to a sale, at this point in time. It’s important to note that our dedicated associates continue to be the backbone of our company and culture, as reflected in the numerous recognitions we received in Q1. We are encouraged about the future because, even as economic conditions remain volatile, clients continue to seek business process outsourcing capabilities to increase efficiency, enhance customer experience and improve performance. We continue to be strongly positioned as a partner of choice to provide these critical services and solutions.
Q1 2022 Performance Commentary
Revenue and Adjusted Revenue were lower than prior year period, primarily driven by significant non-recurring stimulus payments volume in our Government Services business in the prior year.
Net income was $136M up significantly versus prior year period, reflecting the gain on sale of the Midas divestiture and insurance recoveries relating to a previously disclosed legal matter.
Adjusted EBITDA of $107M and Adjusted EBITDA Margin of 11.1% benefited from a one-time recovery of $14M in defense costs as a portion of the settlement with insurance carriers relating to a previously disclosed legal matter.
Sales performance was up 32% in new business TCV signings at $464M, with new business ARR up 14% at $107M versus Q1 2021. Significant TCV wins in the Transportation segment made this one of the strongest starts to the year for new business signings. The Net ARR Activity Metric for Q1 2022 was $102M, up 17% versus Q1 2021 and continues to be positive.
Additional Q1 2022 Performance Highlights
Conduent achieved several milestones in client satisfaction, industry recognition and culture, including;
Recognized as a Supplier of the Year by General Motors for the second year in a row
Named a Leader on Everest Group Healthcare Payer Operations PEAK Matrix Assessment 2022
Recognized as a Rising Leader CX Operations Transformation - Cost Optimization Capability by NelsonHall
Named a Top 15 Service & Technology Provider Standout by the U.S. Information Services Group (ISG)
Named to Government Technology magazine’s 2022 “GovTech 100” for “making a difference” in working with state and local government agencies across the United States
Earned a perfect score of 100 on the Human Rights Campaign Foundation’s 2022 Corporate Equality Index (CEI), measuring policies and practices related to LGBTQ workplace equality
Honored by Comparably with two Best Places to Work Awards for 2021, including one of the Best Companies for Women and one of the Best Companies for Diversity, placing Conduent among the Top 100 highest-rated companies in these categories
10-Q