Slide 1: Conduent Q4 and Full Year 2024 Financial Results
Conduent Q4 and Full Year 2024 Financial Results February 12, 2025
Slide 2: Cautionary Statements: Forward-Looking Statements
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,
Slide 3: Cautionary Statements: Non-GAAP Financial Measures
Cautionary Statements Non-GAAP Financial Measures We have reported our financial results in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). In addition, we have discussed our financial results using non-GAAP measures. We believe these non-GAAP measures allow investo
Slide 4: Q4 & Full Year 2024 Highlights
Q4 & Full Year 2024 Highlights • Adj. Revenue(1): $800M / $3,176M Q4 & Full Year • Adj. EBITDA(1): $32M / $124M Results / • Adj. EBITDA Margin(1): 4.0% / 3.9% Metrics • New business signings ACV(2): $137M / $485M • Net ARR Activity Impact (TTM)(2,3): $92M (1) Refer to Appendix for complete Non-GAAP
Slide 5: Key Sales Metrics
Key Sales Metrics New Business ACV(1) Signings TCV Signings (incl. ARR(1) + NRR(1)) $150M $137 $141 $137 $1,000M $111 $257 $96 $235 $100M $500M $143 $318 $273 $50M $810 $395 $242 $659 $361 $0M Q4' 23 Q1' 24 Q2' 24 Q3' 24 Q4' 24 $0M Q4' 23 Q1' 24 Q2' 24 Q3' 24 Q4' 24 Renewal NB New Business (ARR(1) +
Slide 6: Key Sales Metrics
Key Sales Metrics New Business ACV(1) New Business ARR(1) New Business TCV(1) $750M $400M $3,000M $605 $287 $2,104 $485 $300M $500M $228 $2,000M $200M $969 $250M $1,000M $137 $137 $100M $68 $73 $257 $318 $0M $0M $0M Q4'23 Q4'24 FY'23 FY'24 Q4'23 Q4'24 FY'23 FY'24 Q4'23 Q4'24 FY'23 FY'24 Net ARR Acti
Slide 7: Full Year 2024 P&L Metrics
Full Year 2024 P&L Metrics Adj. Revenue(1) Adj. Revenue(1) Trend (Y/Y Compare) (4.3)% Y/Y (4.3)% in CC(2) $4,000M $3,320M $3,176M (.2)% (4.3)% (5.0)% (6.0)% (6.0)% $2,000M $0M 2023 2024 Q4' 23 Q1' 24 Q2' 24 Q3' 24 Q4' 24 Adj. EBITDA(1) / Adj. EBITDA Margin(1) • Adj. Revenue(1): Decline primarily dri
Slide 8: Full Year 2024 P&L by Segment
Full Year 2024 P&L by Segment Adj. Revenue(1) Adj. EBITDA(1) Contributions $210M $0M 2.7% Y/Y Transportation, $586M 5.0% Y/Y (100.0)% Y/Y 2.4% Y/Y $169M (49.8)% Y/Y $124M (35.4)% Y/Y Commercial, $1,606M $(255)M Government, $984M (3.7)% Y/Y (10.1)% Y/Y Commercial Government Transportation Unallocated
Slide 9: Q4 & Full Year 2024 Cash Flow and Balance Sheet
Q4 & Full Year 2024 Cash Flow and Balance Sheet • Adj. Free Cash Flow(1): Q4 $62M / FY $(59)M Balance Sheet ($ in millions) 12/31/2023 12/31/2024 • Capex(6) as % of revenue: Q4 (0.1)%(9) / FY 2.2% Total Cash (2) $519 $377 (7) • Net adjusted leverage ratio : 1.6x Total Debt(4) 1,263 608 • $377M of ca
Slide 10: FY 2025 Outlook and Mid-Term Outlook
FY 2025 Outlook(2) and Mid-Term Outlook(2) FY 2024 FY 2025 2025 Exit Actuals Outlook(2) Rates Adj. Revenue(1) $3,176M $3,100M - $3,250M $3,200M - $3,300M Adj. EBITDA Margin(1) 3.9% 4.5% - 5.5% Approx. 8% Other Modeling Considerations Adj. Free Cash Flow(1) $(59)M $0M - $40M $60M - $80M Interest Expe
Slide 11: CEO Update
CEO Update
Slide 12: CEO Update
CEO Update Overall Commercial Government Transportation • Continued progress • New Logo and New • Completed renewals of • State of Victoria against strategic plan laid Capability both up >55% significant portion of implementation out 2 years ago year over year contracts due in next 3 progressing wel
Slide 13: Conduent
Conduent Growing Enhanced Growth-Focused Cash Flows Talent 2025 Exit Profile Expanded Rationalized Margins Portfolio Very Low Debt 13
Slide 14: Appendix
Appendix
Slide 15: 2024 Highlights and Recognition
2024 Highlights and Recognition A collaborative, team-oriented culture laser-focused on driving valuable outcomes for clients Highlights Recognition • Announced several implementation and advanced Industry / Analyst Culture solutions in Transportation included expanded 3D fare gates, open payment di
Slide 16: Definitions
Definitions New Business Total Contract Value (TCV): Estimated total future revenues from contracts signed during the period related to new logo, new service line or expansion with existing customers. New Business Non-Recurring Revenue (NRR): Metric measures the non-recurring revenue for any new bus
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures We have reported our financial results in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). In addition, we have discussed our financial results using non-GAAP measures. We believe these non-GAAP measures allow i
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Revenue, Adjusted Operating Income and Adjusted Operating Margin. We make adjustments to Revenue, Costs and Expenses and Operating Margin for the following items, as applicable,for the purpose of calculating Adjusted Revenue, Adjusted Operating Income and Adjuste
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA and EBITDA Margin We use Adjusted EBITDA and Adjusted EBITDA Margin as an additional way of assessing certain aspects of our operations that, when viewed with the U.S. GAAP results and the accompanying reconciliations to corresponding U.S. GAAP financial m
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Free Cash Flow Free Cash Flow is defined as cash flows from operating activities as reported on the consolidated statement of cash flows, less cost of additions to land, buildings and equipment, cost of additions to internal use software, and proceeds from sales of land,
Slide 21: Segment Adjusted Revenue Trend
Segment Adjusted Revenue(1) Trend Commercial Government (3.0)% (2.1)% (4.9)% (5.2)% (4.4)% (2.3)% (8.2)% (9.3)% (12.1)% (16.3)% Q4' 23 Q1' 24 Q2' 24 Q3' 24 Q4' 24 Q4' 23 Q1' 24 Q2' 24 Q3' 24 Q4' 24 Transportation Adj. Revenue(1) Growth Rates (2025 Exit Rate): 23.1% As communicated in the March 2023
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Revenue, Revenue at Constant Currency, Adjusted Net Income (Loss), Adjusted Effective Tax Rate, Adjusted Operating Income (Loss) and Adjusted EBITDA (see footnotes on last page of Non-GAAP reconciliations) (in millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 FY 202
Slide 23: Non-GAAP Reconciliations (continued)
CONTINUED (in millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 FY 2024 FY 2023 ADJUSTED EFFECTIVE TAX Income (Loss) Before Income Taxes $ (82) $ 159 $ 300 $ 127 $ (4) $ 504 $ (332) Adjustment: Total Non-GAAP Adjustments 54 (183) (333) (147) 15 (609) 339 Adjusted PBT Before Adjustment for Divestitur
Slide 24: Adjusted EBITDA Reconciliation (continued)
CONTINUED (in millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 FY 2024 FY 2023 ADJUSTED EBITDA Net Income (Loss) $ (12) $ 123 $ 216 $ 99 $ 6 $ 426 $ (296) Income tax expense (benefit) (70) 36 84 28 (10) 78 (36) Depreciation and amortization 47 44 51 62 65 204 264 Contract inducement amortization 1
Slide 25: Adjusted Diluted EPS Reconciliation (continued)
CONTINUED Adjusted Weighted Average Shares Outstanding, Adjusted Diluted EPS, Adjusted Effective Tax Rate, Adjusted Operating Margin, and Adjusted EBITDA Margin (Amounts are in whole dollars, shares are in thousands and margins are in %) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 FY 2024 FY 2023 (4) AD
Slide 26: Adjusted Margin Reconciliation (continued)
CONTINUED (Margins are in %) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 FY 2024 FY 2023 ADJUSTED OPERATING MARGIN Income (Loss) Before Income Taxes Margin (10.3)% 19.7 % 36.2 % 13.8 % (0.4)% 15.0 % (8.9)% Adjustments: Total non-GAAP adjustments 6.8 (22.7) (40.2) (15.9) 1.6 (18.1) 9.1 Interest expense 1
Slide 27: Free Cash Flow and Adj. Free Cash Flow
CONTINUED Free Cash Flow and Adj. Free Cash Flow (in millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 FY 2024 FY 2023 Operating Cash Flow $ 41 $ (13) $ (41) $ (37) $ 122 $ (50) $ 89 Cost of additions to land, buildings and equipment 11 (8) (18) (13) (18) (28) (51) Cost of additions to internal use
Slide 28: Cash Flow and Balance Sheet Footnotes
CONTINUED The below footnotes correspond to the "Q4 2024 Cash Flow and Balance Sheet" slide (1) Refer to Appendix for complete Non-GAAP reconciliations of Adjusted Free Cash Flow. (2) Total Cash includes $11M and $21M of restricted cash as of December 31, 2024 and December 31, 2023, respectively. (3
Slide 29: © 2024 Conduent, Inc. All rights reserved. Conduent and Conduent Agile Star are trademarks
© 2024 Conduent, Inc. All rights reserved. Conduent and Conduent Agile Star are trademarks of Conduent, Inc. and/or its subsidiaries in the United States and/or other countries.