Alight (ALIT) Q4 2024 earnings summary

Executive summary

• 2024 marked a major transformation with completed cloud migration, divestiture of payroll and professional services, and a refreshed leadership and board structure.

• The business is now focused on tech-enabled employee benefits services, with momentum heading into 2025.

• Fourth quarter revenue was $680 million, with recurring revenue at $617 million, up 0.3% year-over-year and comprising over 90% of total revenue.

• Adjusted EBITDA for Q4 was $217 million (31.9% margin), and full-year adjusted EBITDA was $594 million (25.2% margin).

• Commercial momentum continued with $114 million in ARR bookings for 2024, up 18% year-over-year, and 89% of 2025 revenue under contract.

Financial highlights

• Q4 revenue was $680 million; recurring revenue comprised 91% of total revenue and returned to growth sequentially.

• Non-recurring project revenues fell by 17% in Q4.

• Q4 adjusted gross profit was $300 million (44.1% margin); full-year adjusted gross profit was $942 million (40.0% margin).

• Adjusted diluted EPS for FY24 was $0.48, up from $0.43 in FY23.

• Repurchased $167 million of stock in 2024 and paid a $0.04 per share dividend.

Outlook and guidance

• 2025 revenue expected at $2,318–$2,388 million, with flat to slightly lower growth.

• Adjusted EBITDA guidance: $620–$645 million, with margin expansion to 26.7–27.0%.

• Adjusted diluted EPS expected at $0.58–$0.64; free cash flow outlook: $250–$285 million.

• Annual ARR bookings expected at $130–$145 million.

• Revenue growth anticipated in the second half of 2025 as new ARR deals go live and retention improves.