Alight (ALIT) Citi’s 2025 Global Technology, Media and Telecommunications Conference summary

Business transformation and strategic focus

• Recent transformation included divesting payroll and professional services, resulting in a more focused, technology-enabled benefits administration business.

• Resetting the market narrative and emphasizing operational excellence and client retention are current priorities.

• Cloud migration completed, enabling AI-driven improvements and better client experiences.

• Targeting a return to 4%-6% growth, with renewed focus on pipeline execution and commercial performance.

• New leadership roles, including a Chief Strategy Officer and Chief Commercial Officer, are driving domain expertise and partnership expansion.

Growth drivers and partnerships

• Strategic partnerships, such as with Goldman Sachs, are expected to contribute 0.5 to 1 point of growth next year and diversify revenue streams.

• The Alight Worklife platform now reaches 35 million participants, attracting new partners and creating a robust partnership pipeline.

• Partnerships are capital efficient, leveraging APIs and existing infrastructure for seamless integration and co-innovation.

• Additional partnerships are anticipated, especially in wealth and health, further expanding distribution and growth opportunities.

Sales cycle, pipeline, and execution

• Sales cycles are long, with contracts typically lasting three to five years and implementations taking 6-12 months.

• The finalist stage of the pipeline is up 35% year-over-year, indicating strong late-stage deal flow.

• Delays in deal closings are attributed to timing and client decision-making, not competitive or product issues.

• Improved relationships with third-party evaluators have positively impacted both retention and pipeline expansion.

• Execution focus includes enhancing domain expertise to compete with best-of-breed providers and close deals more effectively.