Conduent Q4 2024 Earnings: Key Metrics and 2025 Outlook

Conduent provided insights on Q4 2024 earnings, which saw adjusted revenue slightly miss expectations. With an anticipated growth in 2025, investors should consider the impact of recent challenges and pipeline prospects on stock performance.

Date: 12-02-2025

AI Rating: 5

Earnings and Key Metrics Analysis: Conduent's Q4 2024 adjusted revenue was $800 million, a decrease from $3.32 billion in 2023. This performance was slightly below expectations, leading to an overall revenue decline of 4.3% for the full year. Adjusted EBITDA margins finished strong at 3.9%, though this is still down from $124 million in 2023.

Regarding Net Income, the report indicates that the company has faced challenges, especially in the Government segment, which experienced a decline in adjusted revenue of around 10% totaling $984 million. Factors such as the termination of a large healthcare contract contributed to this drop, indicating volatility in expected cash flow.

Despite these headwinds, the report mentions that client retention has improved and that new business annual recurring revenue (ARR) was positive, reflecting a net ARR activity metric of $92 million. This suggests that Conduent's strategies in portfolio management may have begun to take effect, which could play a crucial role in stabilizing revenues moving forward.

Future Outlook: For 2025, Conduent expects adjusted revenues to fall in the range of $3.1 billion to $3.25 billion, suggesting a cautious recovery with a focus on growth in the Commercial segment. The anticipated margin improvement to between 4.5% to 5.5% by year-end also indicates management's commitment to operational efficiencies. Overall, while immediate data points show some negatives, the prospects for recovery and expansion in new markets could positively reflect in stock prices.

Stocks: CNDT