CONDUENT INCORPORATED Reports Q4 FY2022 Earnings Results for Period Ending December 31 2022
February 26, 2023
Earnings Overview
On February 14, 2023, Conduent Incorporated ($NASDAQ:CNDT) reported their earnings results for the fourth quarter of FY2022, ending December 31, 2022. Revenue for the quarter was $333.0 million, a decrease of 732.5% compared to the same quarter of the previous year. Net income for the period declined 5.9% year-over-year to $986.0 million.
Transcripts Simplified
Conduent Incorporated reported strong sales metrics for the fourth quarter and full year of 2022, including a 22% year-over-year increase in ACV to $194 million and a 132% year-over-year increase in new business TCV. The growth was driven by significant wins from the Government segment in modular cloud-native Conduent Medicaid suite and state disbursement programs. The Commercial segment ACV also increased 14% year-over-year and Transportation ACV increased 5%.
New business ARR was essentially flat year-over-year. The company reported full year 2022 P& L metrics coming in at the low end of the 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 | -182 | -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% |
Stock Price
CONDUENT INCORPORATED reported its Q4 earnings results for period ending December 31 2022 on Tuesday. The stock opened at $4.4 and closed at $4.3, a decrease of 2.3% from its prior closing price of 4.4. Despite this, the stock was down indicating a cautiousness in the market. This indicates a healthy balance sheet position for CONDUENT INCORPORATED which may bode well for future growth.
The company also announced that it had a cash balance of $5 billion and total equity of $4 billion. Whether or not investors choose to react positively to the news remains uncertain. Live Quote…
Analysis
At GoodWhale, we assessed the fundamental data of CONDUENT INCORPORATED and based on our analysis, we gave it a medium risk rating. This means that from a financial and business point of view, CONDUENT INCORPORATED is somewhat risky. Furthermore, our analysis of CONDUENT INCORPORATED’s income sheet and balance sheet revealed two risk warnings. To learn more about these warnings and get more insights into CONDUENT INCORPORATED’s fundamentals, we invite you to register to GoodWhale.com. We are sure that you will find the analysis to be helpful in making more informed decisions. More…
Peers
Conduent Inc., a leading provider of business process services, competes with Beijing Jingyeda Technology Co Ltd, Ronglian Group Ltd, and Minds + Machines Group Ltd. in the market for business process services. Conduent Inc. has a strong market position and a well-established brand. Its competitors are smaller and less well-known.
– Beijing Jingyeda Technology Co Ltd ($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
Investors in Conduent Inc. have seen a sharp drop in earnings for the fourth quarter of calendar year 2022, with total revenue of USD -333.0 million representing a decrease of 732.5% from the same period in the previous year. Net income for Q4 also fell 5.9% year on year to USD 986.0 million. This downturn comes as the company seeks to streamline operations and improve productivity during challenging times. It remains to be seen if the organization can turn around its fortunes in the near term and deliver positive results for investors.
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