CONDUENT INCORPORATED Reports Fourth Quarter FY2022 Earnings Results on February 14, 2023
March 21, 2023
Earnings Overview
On February 14 2023, CONDUENT INCORPORATED ($NASDAQ:CNDT) reported their fourth quarter of FY2022 earnings results, ending on December 31 2022. Total revenue for the quarter was USD -333.0 million, which represented a 732.5% decrease from the same period of the previous year. Net income also decreased by 5.9%, amounting to USD 986.0 million.
Transcripts Simplified
Conduent Incorporated reported strong sales metrics for Q4 2022, growing 22% in ACV and 132% in TCV year-over-year. This was driven by three significant wins in the Government segment for their modular cloud-native Conduent Medicaid suite, plus a state disbursement program. New business ARR was essentially flat both quarter-over-quarter and year-over-year. For the full year 2022, P& L metrics came in at the low end of their guided 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
On Tuesday, February 14, 2023, CONDUENT INCORPORATED released its fourth-quarter financial earnings results for the fiscal year 2022. At the beginning of the day, the stock opened at $4.4, but by the close of the day, it had dropped by 2.3% to $4.3. This dip was due to the company’s reported earnings results not meeting expectations. These results were below analysts expectations as well as below the company’s own guidance for the quarter. This drop in revenue was attributed to a slight decrease in demand for their services and a weaker performance from their business services division due to lower sales of software licenses.
Despite these lower-than-expected numbers in some areas, CONDUENT INCORPORATED still managed to show strong growth in their digital business services segment, with revenues jumping 12% year over year. This growth was driven by higher demand for digital solutions such as automated customer service and document management software. Looking ahead, CONDUENT INCORPORATED plans to continue investing in its digital capabilities in order to better serve its customers and stay competitive in the market. The company is confident that its long-term strategies will help it deliver better results in the future. Live Quote…
Analysis
At GoodWhale, we have carefully analyzed the fundamentals of Conduent Incorporated. Our Risk Rating indicates that this is a medium risk investment in terms of financial and business aspects. We have also detected 2 risk warnings in the income and balance sheets. If you would like to know more, register on GoodWhale.com to check it out! More…
Peers
Conduent Inc., a leading provider of business process services, competes with Beijing Jingyeda Technology Co Ltd, Ronglian Group Ltd, and Minds + Machines Group Ltd. in the market for business process services. Conduent Inc. has a strong market position and a well-established brand. Its competitors are smaller and less well-known.
– Beijing Jingyeda Technology Co Ltd ($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
The fourth quarter of FY2022 saw a significant decrease in revenue and net income for Conduent Incorporated. Total revenue was down 732.5% year-on-year at USD -333.0 million, with net income also dropping 5.9% to USD 986.0 million. Investors should closely monitor the company’s financial performance moving forward in order to assess the impact of this decrease on the stock, and consider any potential risks or opportunities associated with the company’s current performance.
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