Alight Inc

ALIT

Equity

ISIN US01626W1018 / Valor 112420007

New York Stock Exchange, Inc (2024-12-26)

USD 6.92+1.17%

Alight Inc
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About company

Alight Inc. is a global provider of human capital solutions, serving over 4,300 clients, including 70% of the Fortune 100 companies, across more than 100 countries. With a workforce of over 16,000 employees distributed in more than 50 delivery centers worldwide, Alight specializes in benefits administration, payroll, and HR services, leveraging data and technology to connect work and life for employees and employers. The company aims to empower confident decision-making through the application of AI, offering insights for better outcomes in healthcare, financial decisions, and overall well-being. Alight's recent activities include the sale of its Payroll and Professional Services business for up to $1.2 billion to an affiliate of H.I.G. Capital, and the enhancement of its Alight Worklife® platform with AI-driven support and integrated leave management, reflecting its commitment to improving the employee experience and operational efficiency for its clients.

Summarized from source with an LLMView SourceSector: Finance

Revenue Performance

Alight Inc. reported a revenue decrease of 4.1% to $538 million for the second quarter of 2024, compared to $561 million in the same period of the previous year. This decline was primarily driven by lower volumes, net commercial activity, and project revenue within the Employer Solutions segment, as well as the wind-down of the Hosted business operations. Excluding the exited Hosted business, revenue decreased by 2.5%.

Gross Profit

For the second quarter of 2024, Alight Inc. achieved a gross profit of $167 million, representing 31.0% of revenue. This is a decrease from the prior year's gross profit of $187 million, or 33.3% of revenue. The reduction in gross profit was mainly due to the lower revenue, although it was partially offset by productivity savings.

Net Loss

Alight Inc. reported a net loss of $4 million for the second quarter of 2024, a significant improvement compared to the net loss of $72 million in the same period of the previous year. This improvement was primarily driven by non-operating fair value remeasurements of financial instruments and the tax receivable agreement.

Adjusted EBITDA

In the second quarter of 2024, Alight Inc. recorded an adjusted EBITDA of $105 million, compared to $119 million in the prior year period. The decrease in adjusted EBITDA reflects the lower revenue and gross profit, despite the productivity savings and reduced selling, general, and administrative expenses.

Share Repurchase

During the second quarter of 2024, Alight Inc. repurchased $80 million of common stock under its existing share repurchase program. This move is part of the company's ongoing efforts to return value to shareholders and manage its capital structure effectively.

Summarized from source with an LLMView Source

Key figures

-17.5%1Y

-35.6%3Y

%5Y

Performance

38.5%1Y

43.9%3Y

40.2%5Y

Volatility