Alight, Inc. (NYSE: ALIT), a leading cloud-based provider of integrated digital human capital and business solutions, has reported its fourth quarter and full year 2023 results. The company generated robust quarterly Business Process as a Service (BPAAS) bookings of $261 million and saw an annual cash from operations increase by $100 million to $386 million. Alight exceeded its 2023 adjusted earnings per share (EPS) guidance range and has $3 billion of revenue under contract for 2024.
Stephan Scholl, Chief Executive Officer of Alight, commented on the company's performance, stating, "Our three-year transformation has generated significant momentum and enabled Alight to deliver strong 2023 results. Our 2023 highlights include strong demand for our solutions with BPAAS revenue growth of 34%, gross margin improvement of over 150 basis points, and growth of 35% in operating cash flow."
Alight's fourth quarter 2023 highlights include a 1.9% increase in revenue over the prior year period to $960 million and a 29.8% growth in BPAAS revenue to $222 million, representing 23.1% of total revenue. The company also achieved BPAAS bookings on a total contract value (TCV) basis of $261 million. The net loss for the quarter was $86 million compared to a net loss of $66 million in the prior year period, driven by a $136 million increase in non-cash charges.
For the full year 2023, Alight reported an 8.9% increase in revenue to $3,410 million, with BPAAS revenue growing 34% to $756 million and BPAAS bookings on a TCV basis of $747 million.
Alight's board of directors has authorized a strategic portfolio review to accelerate the platform and wellbeing strategy, as Scholl noted, "Our overarching goal is to advance our platform and wellbeing strategy, while building a higher margin and recurring revenue business that enables us to accelerate the achievement of our mid-term financial and strategic objectives."
Looking ahead, Alight expects BPAAS to continue to be its high-revenue growth category at over 15%, with total annual revenue growth expected to be 6-8% through the mid-term. The company anticipates revenue of $3.55 billion to $3.61 billion for full year 2024, with BPAAS revenue of over $870 million and adjusted EBITDA of $800 million to $815 million.
The company's shares have moved -8.1%, and are now trading at a price of $8.8.
The company's full 8-K submission is available here.