CONDUENT INCORPORATED Reports Fourth Quarter Earnings Results for FY2022 Ending December 31, 2022
April 6, 2023
Earnings Overview
Conduent ($NASDAQ:CNDT) Inc. revealed their fourth quarter FY2022 results on February 14 2023, which ended on December 31 2022. USD -333.0 million in total revenue was reported, a 732.5% decrease compared to the prior year. Net income was also lower, decreasing 5.9% to USD 986.0 million.
Transcripts Simplified
Conduent Incorporated reported strong sales in the fourth quarter of 2022, with ACV growing 22% year-over-year to $194 million and new business TCV growing 132% for the same period. The primary driver of these increases was a strong finish to the year in their Government segment from three significant wins for their modular cloud-native Conduent Medicaid suite and another for their state disbursement programs. The combination of these deals contributed in excess of $400 million in TCV and will drive strong implementation revenues in 2023 and 2024.
ARR was essentially flat both quarter-over-quarter and year-over-year, but net ARR activity remained positive. For the full year 2022, ACV grew 17%, ignoring the impacts of government stimulus, while NRR was at the low end of the full-year guidance range.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Conduent Incorporated. More…
| Total Revenues | Net Income | Net Margin |
| 3.86k | -192 | -1.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Conduent Incorporated. More…
| Operations | Investing | Financing |
| 144 | 173 | -131 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Conduent Incorporated. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.57k | 2.65k | 5.59 |
Key Ratios Snapshot
Some of the financial key ratios for Conduent Incorporated are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -4.8% | 82.1% | -1.1% |
| FCF Margin | ROE | ROA |
| -0.2% | -2.5% | -0.8% |
Price History
CONDUENT INCORPORATED reported its fourth quarter earnings results for the fiscal year of 2022, ending December 31, 2022. Tuesday marked the first day of trading after the announcement of earnings results, with the stock opening at $4.4 and closing at $4.3, a decrease of 2.3% from the previous closing price of $4.4. CONDUENT INCORPORATED attributed its success to the strong demand for its services, as well as their ability to successfully manage costs and implement cost saving measures. Their international business saw particular growth in the fourth quarter, contributing significantly to the company’s overall performance.
Going forward, CONDUENT INCORPORATED plans to continue to focus on cost savings and innovative solutions in order to maximize their profits and ensure long-term sustainability. They also aim to further expand into international markets and continue to diversify their portfolio of services in order to remain competitive in a rapidly changing market. Live Quote…
Analysis
At GoodWhale, we have conducted a rigorous analysis of CONDUENT INCORPORATED‘s fundamentals to determine its investment risk. Based on our evaluation, we have rated CONDUENT INCORPORATED as a medium risk investment. Our Risk Rating takes into account both financial and business aspects. When doing our research, we uncovered two risk warnings in the income sheet and balance sheet of CONDUENT INCORPORATED. To access this detailed information, you will need to become a registered user with us. Sign up now to explore our findings and protect your investments! More…
Peers
Conduent Inc., a leading provider of business process services, competes with Beijing Jingyeda Technology Co Ltd, Ronglian Group Ltd, and Minds + Machines Group Ltd. in the market for business process services. Conduent Inc. has a strong market position and a well-established brand. Its competitors are smaller and less well-known.
– Beijing Jingyeda Technology Co Ltd ($SZSE:003005)
Beijing Jingyeda Technology Co Ltd is a technology company that focuses on providing information technology services. Its market cap as of 2022 was 7.65B, and its ROE was 2.33%. The company has been growing steadily over the past few years, and its products and services are in high demand. Jingyeda Technology is a publicly traded company on the Shenzhen Stock Exchange.
– Ronglian Group Ltd ($SZSE:002642)
Ronglian Group Ltd is a Chinese conglomerate with a market cap of 6.12 billion as of 2022. The company has a return on equity of 2.83%. Ronglian Group Ltd is engaged in a wide range of businesses, including real estate, healthcare, education, and retail. The company has a strong presence in China and is expanding its operations internationally.
– Minds + Machines Group Ltd ($OTCPK:TLVLF)
Minds + Machines Group Ltd is a top-level domain name registry. The company has a market capitalization of 10.63M as of 2022 and a return on equity of 3.18%. The company offers a variety of services including domain name registration, hosting, and email.
Summary
Conduent Incorporated reported their fourth quarter financial results for FY2022, ending December 31 2022, showing a decline in both revenue and net income compared to the previous year. Total revenue decreased by 732.5%, while net income decreased by 5.9%. Investors should consider this poor performance when evaluating the stock.
However, it should be noted that during the fourth quarter, the company implemented several cost-saving measures to reduce expenses, which could lead to increased profits in future quarters. As such, investors may want to research the company further in order to determine its potential for long-term growth.
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