Conduent Announces Third Quarter Financial Results

FLORHAM PARK, N.J., Nov. 04, 2021 (GLOBE NEWSWIRE) — Conduent, a business process services and solutions company, today announced its third quarter 2021 financial results.

Cliff Skelton, Conduent President and CEO stated “Q3 marks another quarter of continued momentum and progress, meeting or exceeding the commitments we’ve made. Year-to-date new business signings are strong and our net ARR activity metric, which measures net wins and losses, continues to strengthen and increase, indicating future growth and our ability to outrun the legacy losses. With our debt refinancing successfully completed, we envision a clear path forward in our growth strategy. Through the hard work of sixty thousand dedicated associates, we believe that continued focus on the client, operational and technology excellence, and leadership, will be the keys to success as we continue this journey.”

Key Financial Q3 2021 Results

($ in millions, except margin and per share data) Q3 2021 Q3 2020 Current
Quarter Y/Y
GAAP net income (loss) from Continuing Operations11(7)257.1%
Adjusted EBITDA (1) 130141(7.8)%
Adjusted EBITDA Margin (1) 12.5%13.5%-100 bps
GAAP Pre-tax Income19(13)246.2%
GAAP Diluted EPS from Continuing Operations$0.04$(0.04)200.0%
Adjusted Diluted EPS from Continuing Operations (1) $0.19$0.26(26.9)%
Cash from Operations55107(48.6)%
Adjusted Free Cash Flow (1) 2369(66.7)%

Q3 2021 Performance Commentary
Revenue continues to stabilize. Q3 2021 revenue was substantially unchanged compared with Q3 2020 primarily due to increased volumes in our Government Payments business and new business ramp, offset by lost business from prior years.

Year-to-date sales performance is up 4% in new business TCV signings and up 15% in new business ARR compared to the prior year period. Q3 2021 contributed $344M in new business TCV signings and $87M in new business ARR. The Net ARR Activity Metric for Q3 2021 was strong at $132M, up 25% from Q2 2021 and continues to be positive for the fourth consecutive quarter.

Additional Q3 Performance Highlights
Conduent continued its momentum across its Growth, Efficiency and Quality pillars, achieving significant
operational, industry and associate-focused milestones, including:

  • IBTTA Toll Excellence President’s Award for Innovation
  • ‘Top BPO Employer’ recognition in the Philippines from IBPAP
  • South Carolina Governor’s Committee on Employment of People with Disabilities Award
  • Recognition from Brandon Hall Group – earning two gold awards for excellence in learning
  • Named to 2021 Training Industry Top 20 training companies lists for training outsourcing and custom content development

FY 2021 Outlook

FY 2020 Actuals FY 2021 Outlook
Revenue $4,163M$4,100M – $4,175M
Adj. EBITDA (1) / Adj. EBITDA Margin (1) $480M / 11.5%11.25% – 11.75%
Adj. Free Cash Flow (1) as % of Adj. EBITDA (1) 28% (3) Approx. 20% (3)

(1) Refer to Appendix for definition and complete non-GAAP reconciliations of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS from Continuing Operations and Adjusted Free Cash Flow
(2) Refer to Appendix for definition.
(3) Normalized for the impact of deferred payroll taxes primarily related to the CARES Act, Adjusted Free Cash Flow for 2020 is approximately 16% and 2021 is approximately 25%.

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