Conduent (CNDT) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.19. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 31.58%. A quarter ago, it was expected that this company would post a loss of $0.09 per share when it actually produced a loss of $0.15, delivering a surprise of -66.67%.Over the last four quarters, the company has surpassed cons ...

Conduent (CNDT) Q1 2025 Earnings Call May 07, 2025 09:00 AM ET Speaker0 Greetings. Welcome to the Conduent Q1 twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. The question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, David Chen, VP of Investor Relations. Thank you. You may begin. Speaker1 Thank you, operator, and thanks, everyone, for joining us to ...

Conduent Q1 2025 Financial Results May 07, 2025 Cautionary Statements Forward-Looking Statements This document, any exhibits or attachments to this document, and other public statements we make may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "estimate," "expect," expectations," "in front of us," "plan," "intend," "will," "aim," "should," "could," "forecast," "target," "may," "continue to," "looking to continue," ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q _______________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37817 CONDUENT INCORPORATED (Exact Name of Registrant as specified in its ch ...

EXHIBIT 99.1 News from Conduent Conduent Incorporated 100 Campus Drive, Suite 200 Florham Park, NJ 07932 www.conduent.com FLORHAM PARK, NJ, May 7, 2025 - Conduent Incorporated (Nasdaq: CNDT), a global technology-led business process solutions and services company, today announced its first quarter 2025 financial results. Cliff Skelton, Conduent President and Chief Executive Officer stated, "Conduent had a good start to 2025, especially amidst the broad uncertainty in the macro-economic landscape. Our result ...

Key Q1 2025 Highlights Cash Flow from Operating Activities and Adjusted Free Cash Flow, while down year-over-year, are significantly better in Q1 2025 versus Q1 2024 when adjusting for the positive impacts of the tax refund and contributions from divested assets in the prior year period. Additional Q1 2025 Performance Highlights Revenue and Adj. Revenue(1): $751M Pre-tax Income (Loss): $(56)M Adj. EBITDA Margin(1): 4.9% New Business Signings ACV(2): $109M Net ARR Activity Metric(2) (TTM): $116M FLORHAM PARK ...

Financial Performance - Total revenue for 2024 was $3,356 million, a decrease of 9.8% from $3,722 million in 2023[295]. - Operating costs and expenses totaled $2,852 million in 2024, down from $4,054 million in 2023, reflecting a significant reduction in costs[295]. - Net income for 2024 was $426 million, compared to a net loss of $296 million in 2023, indicating a strong recovery[295]. - The company reported a loss on divestitures and sales of fixed assets of $724 million in 2024[302]. - Conduent's total equity increased to $843 million in 2024, up from $633 million in 2023, indicating a growth of approximately 33%[300]. - Total assets decreased to $2,599 million in 2024 from $3,162 million in 2023, reflecting a reduction of approximately 18%[300]. - Total liabilities decreased to $1,614 million in 2024, down from $2,387 million in 2023, marking a reduction of approximately 32%[300]. - Cash and cash equivalents declined to $366 million in 2024, down from $498 million in 2023, representing a decrease of about 26%[300]. - The company generated $795 million in net cash from investing activities in 2024, primarily due to proceeds from divestitures[302]. - The company experienced a goodwill impairment of $28 million in 2024, significantly lower than the $287 million impairment in 2023[295]. Revenue Segmentation - The Commercial segment generated revenue of $1,606 million, accounting for 50.6% of total revenues excluding divestitures, while the Government segment revenue was $984 million, representing 31.0%[34][35]. - Conduent's transportation segment revenue reached $586 million, making up 18.4% of total revenues excluding divestitures[36]. - Approximately $85 billion is disbursed annually through the company's Government Service Solutions, including benefit card programs[50]. - The company generates revenue from its Human Capital Solutions based on the number of employees and retirees supported, as well as transaction fees for client life events[46]. - The company generates revenue in its Business Operations Solutions through various pricing models, including per item handled and outcome-based pricing[42]. Market Position and Client Base - Conduent's addressable market size in the global business process services industry is estimated to be $210 billion in 2024[30]. - The company serves nearly half of the Fortune 100 companies, including 9 of the top 10 U.S. health insurers and 6 of the top 10 U.S. banks[26]. - A significant portion of Conduent's revenues is derived from government contracts, which are subject to funding appropriations and can be terminated at the government's discretion[89]. - Approximately 14% of the company's 2024 revenues were generated from operations outside the United States[94]. Operational Efficiency and Technology - In 2024, Conduent launched a dedicated GenAI program with over 20 prioritized use cases to enhance operational efficiency and client outcomes[27]. - The company processed over 13 million tolling transactions daily, contributing to reduced congestion and improved operational efficiency for transportation agencies[21]. - The company processed nearly 450 million claims in its Government Healthcare Solutions segment[48]. - The company is undertaking a long-term project to modernize its IT infrastructure, which carries risks of operational disruptions and increased costs[104]. Workforce and Culture - Conduent's global workforce consists of approximately 56,000 associates, with nearly 40% located in North America[22]. - Conduent completed approximately 1.63 million learning assets in 2024, indicating a strong engagement in employee development programs[70]. - Conduent was recognized as one of Newsweek's Top 100 Global Most Loved Workplaces in 2024, reflecting a strong emotional connection between associates and the company[71]. - The company received multiple awards for workplace culture, including America's Best 500 Employers for Diversity from Forbes for four consecutive years (2021-2024)[69]. - The company's overall culture score remained in the top 10% of similar-sized companies according to Comparably, indicating a positive workplace environment[71]. - The company has a focus on diversity and inclusion, receiving top rankings for LGBT+ inclusion and disability inclusion in various regions[69]. Risks and Compliance - The company faces significant competition, with some competitors having greater financial and marketing resources, which may pressure pricing and terms[90]. - The company is exposed to potential liabilities and reputational harm related to environmental, social, and governance considerations[106]. - The company faces risks associated with the use of artificial intelligence, including potential legal liabilities and reputational damage, necessitating ongoing investment in governance and security resources[109]. - Compliance with evolving AI regulations, such as the European Union's AI Act, may increase operational costs and pose unpredictable risks[110]. - The company is subject to numerous laws regarding the protection of individually identifiable information, including HIPAA and GDPR, with significant penalties for non-compliance[111]. - Cybersecurity threats pose risks to the company's operations, potentially leading to unauthorized access and significant reputational damage[115]. - The company's insurance coverage may not fully protect against all potential liabilities, which could adversely affect its financial condition[123]. Financial Management and Debt - The company has a significant amount of debt, which could adversely affect its results of operations and financial condition[129]. - The company's ability to make payments on and refinance its indebtedness depends on its future cash generation from operations, financings, or asset sales[131]. - The consolidated weighted-average interest rates for total debt in 2024 were 9.37% for Term Loan A, 6.20% for Senior Notes, and 8.70% for finance lease obligations[275]. - A 10% increase in market interest rates would decrease the fair values of fixed-rate financial instruments by approximately $15 million[275]. Strategic Initiatives - The company aims to achieve profitable growth and expand operating margins through a disciplined capital allocation strategy, focusing on growth, efficiency, and quality[24]. - The Board of Directors authorized a three-year stock repurchase program for up to $75 million, completed in September 2024[108]. - The company may selectively pursue strategic acquisitions, investments, and joint ventures, which pose risks that could affect its reputation and financial results[126].

Financial Data and Key Metrics Changes - Q4 adjusted revenue was $800 million, and full-year revenue was $3.176 billion, down 4.3% from $3.32 billion in 2023 [11][17] - Adjusted EBITDA for Q4 was $32 million, with a margin of 4%, while full-year adjusted EBITDA was $124 million, with a margin of 3.9% [11][17] - New business Annual Contract Value (ACV) was flat year-over-year at $137 million, but down 20% for the full year compared to 2023 [14][15] Business Line Data and Key Metrics Changes - Commercial segment adjusted revenue for 2024 was $1.606 billion, down 3.7% year-over-year, but adjusted EBITDA increased by 2.4% with a margin of 10.5% [18] - Government segment adjusted revenue decreased by around 10% to $984 million, with adjusted EBITDA down 35% and a margin of 21.3% [19][22] - Transportation segment adjusted revenues grew by 5% year-over-year to $586 million, but adjusted EBITDA was breakeven [23] Market Data and Key Metrics Changes - The company experienced a strong finish in new business sales and improved client retention, with net ARR activity at $92 million [16] - The government segment faced challenges due to the termination of a large healthcare contract and lower SNAP volumes, impacting revenue [21][22] Company Strategy and Development Direction - The company is focused on portfolio rationalization, divesting underperforming assets to streamline operations and improve margins [8][36] - There is an emphasis on leveraging AI for operational efficiency and enhancing service offerings, particularly in fraud detection and document automation [58][45] - The company anticipates stable macroeconomic conditions and expects adjusted revenues in 2025 to be between $3.1 billion and $3.25 billion [29][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, expecting a recovery in adjusted EBITDA margins and a return to growth after a challenging 2024 [28][49] - The company is preparing for a stronger first half of 2025, with expectations of improved sales pipelines across all segments [76][77] - Management highlighted the importance of operational excellence and cybersecurity as top priorities moving forward [42][43] Other Important Information - The company ended the year with approximately $377 million in cash and a largely undrawn $550 million revolving credit facility [25] - Capital expenditures for the year were 2.2% of revenue, with plans to optimize spending further [27] Q&A Session Summary Question: Progress on AI-enabled technology in public health - Management highlighted several AI applications, including fraud detection in payments and document automation in healthcare [56][58] Question: Strategy to grow wallet share with existing clients - The company is implementing a client partner program to better address client needs and increase product offerings [60][64] Question: Margin improvement drivers - Margin improvements are primarily driven by cost reductions and operational efficiencies [70][71] Question: Capital allocation plans for FY 2025 - Management indicated a balanced approach to capital allocation, with a focus on debt reduction and potential share repurchases [72][100] Question: Expectations for new business signings and market targeting - The company expects a better ACV sales year in 2025, with strong pipelines across all segments [74][76] Question: Government segment project delays - Management clarified that anticipated declines in the government segment are due to previously identified factors, not administrative changes [82][84] Question: Ongoing portfolio rationalization - The company is actively looking at divestitures to streamline operations and improve focus [93][95] Question: Pricing environment and growth assumptions - Management noted a focus on maintaining pricing while enhancing service quality and relationships with clients [103][107]

Conduent (CNDT) came out with a quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of a loss of $0.09. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -66.67%. A quarter ago, it was expected that this company would post a loss of $0.16 per share when it actually produced a loss of $0.14, delivering a surprise of 12.50%.Over the last four quarters, the company has surpassed ...

Financial Performance - Q4 2024 revenue was $800 million, a decrease of 16.1% year-over-year, while full year revenue totaled $3,356 million, down 9.8% from the previous year[4] - Adjusted EBITDA margin for Q4 2024 was 4.0%, down 400 basis points from 8.0% in Q4 2023, with full year adjusted EBITDA margin at 3.9%, a decrease of 350 basis points from 7.4%[4] - The company reported a pre-tax income of $504 million for FY 2024, a significant increase from a loss of $332 million in FY 2023, primarily driven by gains from divestitures[7] - Revenue for Q4 2024 was $800 million, a decrease of 16.1% from $953 million in Q4 2023[21] - Net income for Q4 2024 was a loss of $12 million compared to a profit of $6 million in Q4 2023, resulting in a net income per share loss of $0.09[21] - Total operating costs and expenses for Q4 2024 were $882 million, down 7.8% from $957 million in Q4 2023[21] - The company reported a goodwill impairment of $28 million in Q4 2024, compared to $287 million in the full year 2023[21] - Adjusted Revenue for Q4 2024 was $800 million, down from $953 million in Q4 2023, representing a decrease of 16.1%[48] - Adjusted Net Income for Q4 2024 was a loss of $21 million, compared to a loss of $17 million in Q4 2023[48] - Adjusted EBITDA for Q4 2024 was $32 million, down from $68 million in Q4 2023, indicating a decline of 52.9%[49] - Adjusted Operating Income for Q4 2024 was a loss of $15 million, compared to an income of $13 million in Q4 2023[49] Cash Flow and Liquidity - Full year 2024 cash flow from operating activities was $41 million, a decline of 66.4% compared to $122 million in FY 2023[4] - The company experienced a net cash outflow of $27 million in Q4 2024, contrasting with an inflow of $64 million in Q4 2023[26] - Cash and cash equivalents decreased to $366 million as of December 31, 2024, from $498 million a year earlier[24] - Free Cash Flow for Q4 2024 was $47 million, compared to $93 million in Q4 2023, while the full year showed a negative free cash flow of $(106) million versus $(4) million in 2023[51] - Adjusted Free Cash Flow for Q4 2024 was $62 million, unchanged from Q4 2023, while the full year adjusted free cash flow was $(59) million compared to $(5) million in 2023[51] - Operating Cash Flow for Q4 2024 was $41 million, down from $122 million in Q4 2023, with a full year operating cash flow of $(50) million compared to $89 million in 2023[51] Divestitures and Business Development - New business signings for Q4 2024 amounted to $137 million, contributing to a total annual contract value (ACV) of $485 million for FY 2024[3] - The company completed three divestitures in 2024, generating total proceeds of $879 million, which included $425 million from the BenefitWallet portfolio and $224 million from the Casualty Claims Solutions Business[5] - Conduent completed a $75 million share repurchase program, buying back 52 million shares, including approximately 38 million shares from Carl Icahn and affiliates[8] Future Outlook - The company anticipates FY 2025 adjusted revenue to be between $3,100 million and $3,250 million, with an expected adjusted EBITDA margin of 4.5% to 5.5%[10] - The company provided a non-GAAP outlook for Full Year 2025, indicating expected Adjusted EBITDA and Adjusted EBITDA Margin, but could not predict foreign currency impacts accurately[47] Tax and Equity - Adjusted Effective Tax Rate adjustments included a tax benefit of $63 million for Q4 2024, compared to a tax benefit of $11 million in Q4 2023[48] - The effective tax rate for Q4 2024 was 85.4%, a decrease from 272.1% in Q4 2023, with a full year effective tax rate of 15.5% compared to 10.7% in 2023[50] - The company reported a total equity increase to $843 million as of December 31, 2024, from $633 million in 2023[24] Shareholder Information - The weighted average common shares outstanding for Q4 2024 were 160,374 thousand, down from 213,625 thousand in Q4 2023, while the full year average was 182,513 thousand compared to 216,779 thousand in 2023[50]