Slide 1: 4th Quarter and Full-year 2024 Earnings Presentation
4 th Quarter and Full-year 2024 Earnings Presentation Alight, Inc. February 20, 2025 © 2025 Alight. All rights reserved.
Slide 2: Disclaimer
Disclaimer Forward-looking statements information is helpful in, among other things, presenting our results more consistently across prior periods. For more This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, about those management a
Slide 3: 4Q24 strategic highlights
4Q24 strategic highlights 1 Strong finish to the year in line with expectations • Recurring revenue grew 0.3% from prior year to $617 million • Recurring revenue represented 90.7% of total revenue • Adjusted EBITDA1 of $217 million with adjusted EBITDA margin improving 10 basis points from prior yea
Slide 4: Latest Alight Worklife release expands the client value proposition
Latest Alight Worklife release expands the client value proposition Integration with Microsoft Teams Alight Worklife for Microsoft Teams brings powerful features into the Teams environment, enabling better benefits engagement, real-time insights and personalized support in the flow of everyday work
Slide 5: 4Q24 financial results
4Q24 financial results ($ in millions) 4Q24 4Q231 Change Revenue Recurring Revenue $617 $615 +0.3% Project Revenue $63 $76 -17.1% Total Revenue $680 $691 -1.6% Adjusted Gross Profit2 $300 $311 -3.5% % margin 44.1% 45.0% -90 bps Adjusted EBITDA $217 $2203 -1.4% % margin 31.9% 31.8% +10 bps 1 4Q23 res
Slide 6: 2024 financial results
2024 financial results ($ in millions) FY241 FY231 Change Revenue Recurring Revenue $2,156 $2,177 -1.0% Project Revenue $197 $219 -10.0% Total Revenue $2,353 $2,396 -1.8% Adjusted Gross Profit $942 $971 -3.0% % margin 40.0% 40.5% -50 bps Adjusted EBITDA $594 $596 -0.3% % margin 25.2% 24.9% +30 bps 6
Slide 7: Key drivers of revenue growth
Key drivers of revenue growth Operational Growth Model 2025 Outlook Drivers of Growth Revenue from New Wins: Bookings with new logos & +6 - 8% ~5 - 7% ARR bookings up 18% 1 existing client expansions that go-live and add revenue to Project revenue pipeline the existing base of recurring revenue, inc
Slide 8: Business outlook (89% of 2025 revenue under contract)
Business outlook (89% of 2025 revenue under contract) Modeling Considerations Full Year 2025 business outlook Revenue & Bookings • Total revenue at midpoint expected flat from prior year with recurring revenue up $2,318– $2,388M approximately 1% and project revenue down 6% Revenue (1.5)% - 1.5% • Re
Slide 9: Capital structure update
Capital structure update FY24 Adj. Operating Cash Flow ($M) ($ millions) 12/31/2024 12/31/2023 $342 Total Debt $2,025 $2,794 • One-time separation costs of $82M and deal costs of $15M related to Payroll & Less Cash $343 $324 $97 Professional Services sale Net Debt $1,682 $2,470 • 1H24 Proforma adjus
Slide 10: FY25 adjusted diluted EPS and modeling notes
FY25 adjusted diluted EPS and modeling notes Adjusted diluted EPS bridge FY 2025 Notes 2025 Notes Adjusted EBITDA $620-645M See slide 8 • Capital expenditures4 between 4-5% of revenue Depreciation $110-120M 4-5% of revenue • W/C usage of 3-4% of revenue Interest Expense $90-100M Based on current for
Slide 11: Appendix-Proforma Adjustment Reconciliations
Appendix-Proforma Adjustment Reconciliations 11 © 2025 Alight. All rights reserved.
Slide 12: Background regarding proforma adjusted supplemental financial results
Background regarding proforma adjusted supplemental financial results Proforma adjusted supplemental financial results are designed to show the impact of the sale of the Payroll and Professional Services business as if it had happened at the beginning of 2023 with the objective of providing better c
Slide 13: Total Revenue Disaggregation with Proforma Adjustments
Total Revenue Disaggregation with Proforma Adjustments (unaudited) Three Months Twelve Months Twelve Months Ended Ended Ended December 31, December 31, December 31, ($ in millions) 2023 2023 2024 Revenue: Recurring $ 606 $ 2,141 $ 2,135 Proforma Adjustments 9 36 21 Recurring - adjusted 615 2,177 2,1
Slide 14: Reconciliation of Gross Profit to Adjusted Gross Profit with Proforma Adjustments
Reconciliation of Gross Profit to Adjusted Gross Profit with Proforma Adjustments (unaudited) Twelve Months Ended Twelve Months Ended December 31, 2023 December 31, 2024 ($ in millions) Gross Profit $ 812 $ 794 Add: stock-based compensation 30 14 Add: depreciation and amortization 72 96 Add: Proform
Slide 15: Reconciliation of Net Income to Adjusted EBITDA with Proforma Adjustments
Reconciliation of Net Income (Loss) to Adjusted EBITDA with Proforma Adjustments (unaudited) Three Months Twelve Months Twelve Months Ended Ended Ended December 31, December 31, December 31, (in millions) 2023 2023 2024 Net Income (Loss) From Continuing Operations $ (121) $ (317) $ (140) Interest ex
Slide 16: Reconciliation of Net Loss Income to Adjusted Net Income
Reconciliation of Net (Loss) Income to Adjusted Net Income & Adjusted Diluted Earnings per Share with Proforma Adjustments(unaudited) Twelve Months Ended Twelve Months Ended December 31, December 31, 2023 2024 (in millions, except share and per share amounts) Numerator: Net Income (Loss) Attributabl
Slide 17: Reconciliation of 2024 Operating Cash Flow with Proforma Adjustments
Reconciliation of 2024 Operating Cash Flow with Proforma Adjustments (unaudited) Twelve Months Ended (in millions) December 31, 2024 Net cash provided by continuing operating activities $ 193 Separation costs 97 Proforma Adjustments 52 Net cash provided by continuing operating activities w/ proforma
Slide 18: Appendix-GAAP to Non-GAAP Reconciliations
Appendix-GAAP to Non-GAAP Reconciliations 18 © 2025 Alight. All rights reserved.
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA (unaudited) 19 © 2025 Alight. All rights reserved.
Slide 20: Reconciliation of Gross Profit to Adjusted Gross Profit
Reconciliation of Gross Profit to Adjusted Gross Profit (unaudited) 20 © 2025 Alight. All rights reserved.
Slide 21: Reconciliation of Net Loss Income to Adjusted Net Income
Reconciliation of Net (Loss) Income to Adjusted Net Income & Adjusted Diluted Earnings per Share (unaudited) (1) Excludes the impact of discontinued operations. Comparable periods have been recast to exclude these impacts. (2) Transaction and integration expenses primarily relate to acquisitions and