Financial Performance - The company's total revenue for 2023 was $3.72 billion, with the Commercial segment contributing $1.932 billion, representing 51.9% of total revenues[50]. - Conduent's revenue for 2023 was $3,722 million, a decrease of 3.5% from $3,858 million in 2022[217]. - The company's net loss for 2023 was $296 million, compared to a net loss of $182 million in 2022, resulting in a diluted loss per share of $1.41[217]. - Total operating costs and expenses increased to $4,054 million in 2023 from $3,985 million in 2022, primarily driven by higher costs of services and goodwill impairment[217]. - Goodwill impairment for 2023 was $287 million, down from $358 million in 2022[217]. - Interest expense rose to $111 million in 2023, compared to $84 million in 2022, reflecting increased borrowing costs[217]. - The company reported a significant increase in restructuring and related costs, which rose to $62 million in 2023 from $39 million in 2022[217]. Market and Business Operations - Conduent's addressable market size in the global business process services industry is estimated to be $210 billion in 2023[48]. - The Transportation segment generated revenue of $696 million in 2023, accounting for 18.7% of total revenues[60]. - Government segment revenue for 2023 was $1,094 million, representing 29.4% of total revenues[129]. - The company serves 9 of the top 10 U.S. health plans and provides solutions for nearly 119 million recipients across various government healthcare programs[70]. - The company generates revenue from its Benefits Solutions based on the number of employees and retirees supported, as well as per transaction fees for client life events[67]. - The company has a recurring revenue model supported by a diverse client base, with a Net Promoter Score (NPS) increase of nearly 30 points since 2017[72]. Client Engagement and Satisfaction - Conduent's Net Promoter Score (NPS) has increased by nearly 30 points since 2017, reflecting improved client satisfaction[28]. - The company aims to enhance operational efficiency through automation and technology consolidation, targeting improved margins and reduced costs[41][42]. Strategic Focus and Investments - Conduent has signed agreements to divest its Curbside Management and Public Safety Solutions businesses, indicating a strategic focus on core operations[35]. - The company signed $2,257 million of new business TCV in 2023, a 20% increase compared to the prior year[132]. - Total new business pipeline at the end of 2023 was $24.8 billion, up from $22.6 billion in 2022[133]. - The company continues to invest in new learning platforms to enhance employee skill sets and engagement[127]. Workforce and Operations - The company employs approximately 59,000 associates globally, dedicated to delivering mission-critical services[36]. - As of December 31, 2023, 47% of the company's employees were located in high-cost countries, while 53% were in low-cost countries[86]. - The company employs approximately 59,000 associates across 26 countries, with 41% located in North America[106]. - Approximately 2 million learning assets were completed in 2023, indicating a strong engagement in employee development[127]. Financial Position and Debt - Net cash provided by operating activities for the year ended 2023 was $89 million, a decrease of $55 million compared to 2022[137]. - Total outstanding debt as of December 31, 2023, was $1,300 million, with $559 million forecasted for future interest payments[140]. - Cash and cash equivalents totaled $498 million as of December 31, 2023, expected to satisfy cash requirements over the next 12 months[153]. - The consolidated weighted-average interest rates for total debt were approximately 8.58% for the 2021 Term A Loan due 2026 and 9.78% for the 2021 Term B Loan due 2028[193]. - As of December 31, 2023, $743 million of the total debt of $1,300 million carried variable interest rates[193]. Legal and Risk Factors - The company is involved in various claims and legal proceedings, which may materially impact its financial position[183]. - The company’s ability to recover capital and other investments in connection with contracts is subject to risk, particularly with significant capital investments made for outsourcing contracts[158]. - The company’s results of operations may be adversely affected by geopolitical events, macroeconomic conditions, and natural disasters[159]. - The company relies significantly on third-party providers, and any failure in their performance could materially affect its financial condition[161]. - The company’s business model depends on retaining existing clients and attracting new work, which is crucial for growth[164]. Tax and Deferred Assets - The gross deferred tax assets amounted to $253 million with valuation allowances of $100 million as of December 31, 2023[169]. - Unrecognized tax benefits were $10 million, $12 million, and $23 million at December 31 for the years 2023, 2022, and 2021, respectively[170]. Innovation and Intellectual Property - The company holds approximately 631 U.S. patents and has 7 pending applications as of December 31, 2023[104].

Financial Performance Highlights - Adjusted Revenue for FY 2023 was $3722 million[19] - Adjusted EBITDA for FY 2023 was $378 million, resulting in an Adjusted EBITDA Margin of 102%[19] - New business signings ACV for FY 2023 reached $639 million[19] - Net ARR Activity Impact (TTM) was $62 million[19] Sales Metrics - New Business ARR reached $1000 million[6] - New Business TCV reached $2257 million[22] Outlook and Divestitures - FY 2024 Adjusted Revenue Outlook is projected to be between $3600 million and $3700 million[43] - FY 2024 Adjusted EBITDA Margin Outlook is projected to be between 8% and 9%[43] - The company anticipates $600 million to $800 million in potential divestiture proceeds[46] Balance Sheet - The company's cash balance at the end of Q4 2023 was $519 million[40] - The company repurchased 8841 million shares throughout FY 2023[40]

Financial Data and Key Metrics Changes - Adjusted revenue for Q4 2023 was $953 million and $3.7 billion for the full year, with adjusted EBITDA of $103 million and $378 million respectively, exceeding expectations for both periods [19][51] - Full year revenue declined by 3.3% to $3.72 billion compared to $3.85 billion in 2022, with adjusted EBITDA margin remaining stable at 10.2% [59][60] - The net leverage ratio was 2.1x, within the target range of 2 to 2.5x, with total liquidity of $1.1 billion [33] Business Line Data and Key Metrics Changes - The Commercial segment revenues were $1.93 billion, down 3% year-over-year, while adjusted EBITDA improved by 21% to a margin of 14.2% [29][30] - Government segment adjusted EBITDA declined by 1.8% year-over-year, with a margin of 29.7%, impacted by prior year stimulus volumes [31] - Transportation segment adjusted EBITDA was $41 million, down from $84 million in 2022, with a margin of 5.9% due to extended implementation timelines [32] Market Data and Key Metrics Changes - Annual Contract Value (ACV) for the full year was down 13%, primarily in the Commercial segment which saw a 29% decline, while Government and Transportation segments grew their ACV by approximately 8% [25] - Total Contract Value (TCV) increased by 20% to $2.257 billion, marking the best achievement since the company became Conduent [8] Company Strategy and Development Direction - The company is focused on a three-year journey to rationalize its portfolio, aiming for a $3 billion revenue company with reduced debt and enhanced valuation by 2025 [11][18] - Plans include divestitures expected to generate approximately $600 million to $800 million in net proceeds, with a focus on a more agile and higher-growth organization [75][79] Management's Comments on Operating Environment and Future Outlook - Management noted that 2023 was stronger than anticipated but highlighted the need for improvement in sales and cash generation [9] - The outlook for 2024 anticipates adjusted revenues to decline by about 2%, with challenges in the Commercial and Government segments due to macroeconomic pressures [70][72] Other Important Information - The company repurchased approximately 6.6 million shares at an average price of about $3, with $48 million remaining under the share repurchase authority [35] - The company expects to generate $1 billion in deployable capital by the end of 2025, which is approximately 130% of its current market capitalization [82] Q&A Session Summary Question: What are the expectations for revenue in 2024? - The company expects adjusted revenues in 2024 to be in the range of $3.6 billion to $3.7 billion, representing a year-over-year decline of around 2% [70] Question: How will divestitures impact the financial outlook? - The divestiture program is expected to generate approximately $495 million of after-tax proceeds, with additional transactions anticipated to close in the second half of 2024 [75][78] Question: What are the anticipated challenges in the Commercial segment? - The Commercial segment is expected to face a decline of 2% to 3% due to client decisions and macroeconomic pressures affecting certain industries [71]

Key Q4 and Full Year 2023 Highlights Revenue and Adj. Revenue(1): Q4 $953M / FY $3,722MPre-tax Income (Loss): Q4 $(4)M / FY $(332)MAdj. EBITDA Margin(1): Q4 10.8% / FY 10.2%New business signings ACV(2): Q4 $152M / FY $639MNet ARR Activity Metric(2) (TTM): $62M FLORHAM PARK, N.J., Feb. 14, 2024 (GLOBE NEWSWIRE) -- Conduent (NASDAQ:CNDT), a global technology-led business process solutions company, today announced its fourth quarter and full year 2023 financial results. Cliff Skelton, Conduent President and Ch ...

NelsonHall says Conduent provides integrated health, financial wellness and total rewards solutions focused on increasing employee engagement Conduent named an overall leader for fifth consecutive NEAT Report FLORHAM PARK, N.J., Feb. 14, 2024 (GLOBE NEWSWIRE) -- Conduent Incorporated (NASDAQ:CNDT), a global technology-led business solutions and services company, announced it has been recognized as an overall leader in NelsonHall's latest Benefits Administration 2024 NEAT Report. This is the fifth consecutiv ...

FLORHAM PARK, N.J., Feb. 05, 2024 (GLOBE NEWSWIRE) -- Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, plans to report its fourth-quarter and full-year 2023 financial results on Wednesday, February 14 at 9:00 a.m. ET. The call will be available by live audio cast along with the news release and online presentation slides at https://investor.conduent.com. The conference call will also be available by calling 877-407-4019 toll free. If requested, the confe ...

FLORHAM PARK, N.J., Feb. 05, 2024 (GLOBE NEWSWIRE) -- Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, plans to report its fourth-quarter and full-year 2023 financial results on Wednesday, February 14 at 9:00 a.m. ET. The call will be available by live audio cast along with the news release and online presentation slides at https://investor.conduent.com. The conference call will also be available by calling 877-407-4019 toll free. If requested, the confe ...

Conduent chosen to provide technologies and services to retrieve motor vehicle registration ownership data, building on current OTA relationship reviewing license plate images Solutions will support OTA's plan to convert its entire tolling system to cashless, benefiting motorists and the environment FLORHAM PARK, N.J., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Conduent Transportation, a global provider of smart mobility technology solutions and business unit of Conduent Incorporated (NASDAQ:CNDT), today announced i ...

Conduent Incorporated (NASDAQ:CNDT) Q3 2023 Earnings Conference Call November 1, 2023 9:00 AM ET Company Participants Giles Goodburn - Vice President, Investor Relations Cliff Skelton - President and Chief Executive Officer Steve Wood - Chief Financial Officer Conference Call Participants Operator Good morning, and welcome to the Conduent Third Quarter 2023 Earnings Announcement. [Operator Instructions] As a reminder, this conference is being recorded. At this time, I would like to hand the call over to Gil ...

Important factors and uncertainties that could cause our actual results to differ materially from those in our forward-looking statements include, but are not limited to: government appropriations and termination rights contained in our government contracts; our ability to renew commercial and government contracts, including contracts awarded through competitive bidding processes; our ability to recover capital and other investments in connection with our contracts; our reliance on third-party providers; ri ...