Alight (ALIT) UBS’s 2025 Global Technology and AI Conference summary

Leadership transition and strategic direction

• CEO Dave Guilmette will step down at the end of December 2024, with Rohit Verma taking over on January 1, 2025, bringing experience in growth and transformation from adjacent industries.

• The leadership change is not expected to alter the current strategic direction, with a continued focus on growth, client retention, and innovation.

• Top priorities remain execution on growth, high service delivery, and expanding in the large and jumbo market segments.

• Innovation, particularly in AI and automation, is central to improving client experience and operational efficiency.

• New CEO is expected to engage quickly with investors and stakeholders.

Operational performance and market positioning

• Post-divestiture, the company is focused on employee benefit services, enabled by technology, not as a pure tech company.

• Retention in the large market improved by 800 basis points from 2023 to 2024, with further stabilization expected.

• Commercial bookings were below plan, prompting the return of Steve Rush as Chief Commercial Officer to drive large market deals and ARR growth.

• The business benefits from 92% recurring revenue, with long-term contracts providing strong visibility and stability.

• Project revenue, a high-margin segment, is at its lowest in years due to fewer benefit plan changes, regulatory shifts, and M&A activity.

Technology, innovation, and client experience

• Four years of technology transformation have improved both front- and back-end operations, with a focus on automation and AI.

• 97% of annual enrollments are now digital, and call volumes have dropped, enhancing efficiency and client experience.

• Partnership with IBM and use of WatsonX AI technology are driving a new, personalized, GenAI-backed enrollment experience, with a full rollout planned next year.

• AI and automation are expected to compress client implementation timelines, improving working capital and accelerating revenue realization.

• The company’s proprietary data and integrated platform provide a competitive advantage in delivering personalized solutions to 35 million participants.