Earnings call transcript Q2 2023

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Operator

Good afternoon and thank you for holding. My name is Stacy, and I will be your conference operator today. Welcome to Alight's Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode.

As a reminder, today's call is being recorded, and a replay of the call will be available on the Investor Relations section of the company's website.

like President the Alight. of would Jeremy over I Vice Cohen, Investor now, to call turn to And Relations at go ahead. Please

Jeremy Cohen

Good us. you thank afternoon for and joining

quarter a Earlier company found website on section the press at XXXX Relations be results. Investor the release release today, can A issued with of the the investor.alight.com. of copy second company's

factors results forward-looking due Before may the company's updated future to obligation will time include are filings today the most company's the recent company's we discussion filings. the in the Form of statements. from those from get started, time company's materially variety such more forward-looking guarantees statements. differ please company any discussed factors. be undertake detail periodic does XX-K statements Such expressed not note performance. in may in to including with not the that These Actual to The some forward-looking SEC; of implied of are as update forward-looking in or a factors statements

this press throughout financial measures. will non-GAAP be historical company's their the conference today's measures company financial to the of in earnings appear directly financial comparable Reconciliations measures most presenting GAAP release. non-GAAP call, Also,

Stephan Scholl, After the call from open and for management today prepared questions. Katie Rooney, up On CFO. remarks, call CEO; are their the will we

I will now hand the call over to Stephan.

Stephan Scholl

and afternoon for you thank us. Good joining all

achieve increasing of and visibility, double-digit quarter results track our us with cash second mid-term levels and out are half outlook. these We operating pleased first XXXX and to EBITDA, leave believe a released coupled results growth we today, Earlier of consistent well-positioned across XXXX flow. revenue, and record our close the with growth adjusted to

of and revenue quarter, and respectively. BPaaS During delivered we nearly XX% growth XX%, the

enhancing mix recurring result, are coupled tech-enabled revenue, our with The almost XX% quarter. investments towards for As adjusted of the quarter. for operating up nearly to revenue model, improve returns EBITDA revenue with XX% the total a represented

we're forward, cash profitable up we the which growth was for As also agenda XX% flow, operating generating our drive stronger half. first

the by and components already a non-BPaaS together unprecedented XXXX resilient billion for which Our over solutions, have business XXXX. today allows and of collective amount us here of under and revenue BPaaS of our of contract taken XX% strong led an of backlog performance created to sit with is book $X.X

how Let me recipe briefly business. contributes the explain our our totality component and of to each

First, services and the our standalone administration by non-BPaaS than seeing revenue total is half. growth in of normal revenue professional XX% nearly represents and core X% rates led of higher first

by of one-time supporting large go-lives deals. Our recent work project was the driven BPaaS growth

XXXX. of BPaaS, solutions that revenue they a is year engagement these highly our are the our the our that are is better mission customers half which critical into for long-term these It capabilities standalone grown per backbone tech-enabled solutions the are for contracts. the wrapped customers. up drive with of Worklife platform the And outcomes. as improved resulting and first reminder, Alight deals to and us And during upgrade driving our XXXX, enabling bookings solutions for moat larger as Since platform feeder XX% XX% foundation that recurring service in with over have our outcomes characterized

in of well movement. key sustainable XXXX driver bookings need quarter-to-quarter Cumulatively, to as BPaaS a $X.X ahead since and million $XXX have you noted a in captured isn't bookings, billion cycle. and there of growth. TCV were the initial our a second our expectations evaluate we of be will we quarter, effectively have sold for previously, bookings To lumpiness take higher BPaaS longer-term that view sales

already great XX may closed deal deal July. large it's these fluctuate, totality company we've the bookings to total speaking with timing the that but Once lumpiness, of the Fortune And in a here exclude a deals again, we number are a investments transformational that with made resulted a continuing our drive pipeline opportunity and make tremendous the in to in our and have long-term of platform have in the The deals. performance business. products of

also our non-BPaaS model gives being guidance is offerings improving with and continue BPaaS going accepted us to by upside forward. of customers to This a through that margin with confidence provides of coupled medium-term rapidly We modernized monetize pricing growth XX-plus-percent, X% our in profile. of an growth the X%

center way me the yields that been constructed to driving now that that and our engaging services trajectory. with So by participant accomplish success and At important way. a ongoing context, and of administrative the platform of engine Worklife data outcomes strategy a of recommendation executing To this, customers. eliminates focus people of unlocking are the and a on truly investments the turn personal drives strategic value is overall an transformation Alight complexity, our let core the in as meaningful AI better ROI leveraging within for has better in our platform one

product, So we're navigation quarter, doing upgrade SmartSelect a Behavioral to major search early me Services, in more our how we launched the enhancing MD engine with both and let capabilities. talk announced this. Starting our New about Health

second ROI customers the addition, release proprietary deliver programs. AI to robust Alight automation to annual announced Alight across data the personalization their capabilities driven our of platform and of with Alight's yesterday, major release leverages increase benefit In we advanced Worklife and provides latest Worklife. tools The

by long-term to to our will an need margin satisfaction participants continue which that client driving personalization will service the excited AI-based to improvement call environment. the Improving to experience, digital allow chatbot ability greater the offer us specific down virtual underscores experience and drives greater access the channel, users for chatbot particularly and center our efficiently costs. inquiries expansion I'm reducing a in to share use improved answer and our

and core is benefit utilizing our Alight has been automation. years. has the AI individual in delivery chatbot investing Though exciting, and in decisions powering advancement been for AI to

growth. for models, data connections driving improving the experienced BPaaS customers. sources highly is and established engagement our Our our and ROI data leveraged this better are with sets for And foundation

unlocking what applications. building just the cases surface we're concrete We're by scratching AI Still, internal is use possible. of generative

of scale, answer and many the to self-service hard that questions millions ability documents AI about PDF given interactions these handle comprehend, faster and we generative documents annually, ingest, format. digitize to in example, a provides the For at

we a and Mid-Atlantic at to busy were work workday hard a platform, employees, side partnerships. food our are work. commercial translating an new competitor taking engagement our from wins Markets, over of by as XX,XXX remit a nearly we deployment services includes customer our a on the relationship retailer with improving benefits of has quarter also grown administration to In this investments While Weis ongoing new case were and that complex original OneAlight led the

XX,XXX a that solution address they health prioritized objectives retention driving our were seeking positively while nearly sustainable impact the also Siemens employees, to its Through and Healthineers solution, And will with Siemens tools a have wellbeing, OneAlight and employee cost. multinational wellbeing and with engagement.

people for Officer, These the better quarter transformational for accelerate Greg their as in through his our in as for wins the strength underscore momentum. to outcomes pipeline commercial and the joined for our need the employers us together as cloud-based will a continued systems drive organization and Chief fits for I'm our with serve foundation catalyst a and and space excited initiatives in George. to midway background HCM growth powerful serve Greg and our Commercial new our driving

Another our the commercial is growth through lever numerous across partnerships globe. for

unified This companies in strategy. their our simple account pay its and countries This source, go-to-market help with manage, global in collective focusing teams various quarter and European sales we software the announced stages on rollout early to with planning, an expanded partnership Workday of with the a offering. workforce partnership is enablement, joint

an our our of in much first result annual to half plan of be although of efficiency our being of we're well applications final transformation better of data finally, accelerated And path pace along of innovation. program applications also of is with delivery significant priority the centers migrating is for infrastructure, to backend moved migration the cost in improving this XXXX. high cloud the end growth-oriented, the and customers, advance our savings, will of enrollment The and progressing

Katie moment responsibilities of focused announced will Katie I the Officer Chief from XX leadership on Professional her changes Services capabilities. Global and to you over Many and running to our years and this with more take predecessors. expanding Alight leadership built on role attest strong to the take a have want know on well gotten also its Operating segment to abilities her her afternoon. Payroll share Alight's of Rooney be can to

Katie responsibilities FP&A Executive for Vice three to as continue her of and will will Global move serve finance addition been Jeremy part years. of and role over In Heaton team new the function. Operating the accountable for of role, CFO was across the President Jeremy Katie's CFO to into has many day-to-day

much seeing opportunity Before of was you'll you XX over GE time have with and be him for he a spent future. Divisional years in of him Many there. the CFO and spend to had Alight, the more

our will and customers to operational deepen colleagues, our leadership the expertise and long-term role experience skillset of Adding our give shareholders confidence executive Board, success. in Katie's and Jeremy's elevating team

Additionally, well. contributions Cesar to will be business wish him for moving Alight. Jelvez his want in thank him and I forward leaving I the

made building over in us for world tremendous as Alight, also long-term I have up transforming who upon around express to it a hand our setting I sustainable success. progress, company colleagues Katie, to Before and strong gratitude want foundation public our my just the years for two

to Katie, over you.

Katie Rooney

afternoon, you, everyone. and good Thank Stephan,

flow. BPaaS revenue, double-digit total operating Our highlighted revenue, quarter was and performance by second growth in cash EBITDA, adjusted

increasing strength that levels the $X.X XXXX our sustain earlier long-term under foundational under enables non-BPaaS backlog addition, our and growth. contract invest now driving to of of of line visibility. profitable have The revenue business With over as XXXX noting revenue to contract we is from is also us what well. confidently have we sight In XX% of Stephan of billion

achieved XX now results, resulting in towards revenue. the second turn as shift BPaaS XX.X% were ongoing is total of continue quality bookings revenue basis during of revenue XX.X% an me into nearly XX% with Recurring comprised higher which Starting a up of increase revenue from contracted to the revenues, translate This prior revenue, consolidated to growth XX.X%. recurring year. growth performance. quarter, our prior point by our highlighted higher we Let

with XX.X%. EBITDA of margin growth XX.X% increased to flow, of EBITDA the strong strengthens Board, we balance which cash million our and levels are Adjusted With $XXX funds generating across transformation. sheet adjusted increasing our an

improvements prior we with of we working million continue to half, conversion flow XX% cash generated make of operating $XXX first the in versus as a For up capital. significantly year rate

to half and we As a the flow the activity profitability stronger to projected and cash both will and be both And are impact first investments would flow. restructuring as tends to cash planned, which same this expect year. second compared our half, slow seasonally reminder,

in the me million $XXX total were bookings we Let and performance, more start billion have the transformation on report in for achieved with and began results, we're the we To cumulatively, BPaaS both holistically. to XXXX. quarter our since now for bookings over quarter expand our now bookings $X.X pleased

BPaaS Alight we this in platform. our overall is revenue quality long-term continue leverage improving recurring will Worklife revenue the As and nature, foundational as backlog of

to For now in of of XXXX, million over plan. range bookings cumulative expect $XXX million $X bookings our a and we than implies original to be half of strong more billion second BPaaS which three-year million, well the ahead $XXX $XXX

As in we closed large may quarter dynamic. will see you in The example, XXXX. bookings deals, lumpiness from our this two great deal example of recall, the is for of a fourth GE we the

XXXX Our and engagement payroll is comprehensive through drive in solutions. starting long-term revenue platform benefit Worklife our designed Alight and to BPaaS

this non-BPaaS and year the higher work and core is in implementing work platform three team our this hard companies, driving is systems XXXX. at revenue across GE's However,

The deals close. finalizing means are these this and closing offerings the take as of size they complexity one typically to but Alight longer lucrative, of such

Stephan to Another reason as remains deal July in for and view case it an take discussed, a you of was Alight, bookings. important evaluate a as longer-term closed

also new across with a making our very within our in We're we've model, logos We our our just with continue $X install not contemplated over introduced to and yet strong total business new opportunity pricing billion base. pipeline in have is which progress backlog.

business collection and prove us better our pricing We'd us will faster more platform Our our expect will outlook. the collectively Overall, effectively. we monetize cash position our be for value-based achieve are and new taken growth, and pricing as revenue a mid-term improved implications in implemented model of products for to Overall, model being our multi-fold. new driving enable customers. these well to deals building and margin is levers increased potential, driving out growth

from XX.X% activity the that, net with our to commercial ReedGroup as segments. quarter our impact up Solutions, the XX.X% up Starting up of X.X%. two revenue as Employer with With Contributing growth me and volumes let revenue turn to acquisition. was project increased revenue Federal was now second Thrift recurring months well and

to Adjusted Our up adjusted to with million. strong profitability savings, basis points gross growth, coupled are by driving XX.X% profit XXX margin $XXX increased with quarter better productivity gross second XX.X%.

Professional Services our to segment. Turning

prior Second driven million. year profitability in off a quarter million. prior XX% sequentially revenue revenue X% a up year XX% was by in gross was the $X to $XXX On and almost building increase a from and the strong revenue growth increase from from adjusted accelerated project profit basis, a was slightly This recurring backlog. down

our balance to sheet. Turning

cash cash and our end was quarter was $X.X Our and balance billion. $XXX million total equivalents debt

We continue through is debt our XXXX. actively XXXX portfolio to through manage fixed and our hedge XX% and XX%

leverage first are And of X.Xx the second mid-term end of leverage at end a the down we targeting from net ratio approximately reminder, the at was Our the net X.Xx Xx. quarter of quarter. as

outlook. to Turning our

our successful reaffirming contract; with guidance the with for of track on revenue mentioned us XXXX than more BPaaS our earlier. keeps under bookings half first strong exception are XX% another we Our year of

includes XX% to billion $X.XX XX% $XXX rate or or billion, flow the follow of EBITDA quarter. in of adjusted to $XXX up higher upfront adjusted of to $X.XX of half phasing XX% of we growth adjusted expect XX%; growth to quarter, perspective, growth From and million growth cash million, conversion a to supporting in costs revenue $X.XX, outlook operating XX%; EPS XXXX. second to X% to of XX%; of or to fourth with in an $X.XX Our EBITDA XX% XX% trends the third historic from

us revenue long-term proud adjusted pivot the long-term value. operating our growth and shareholder the to with strategy and toward of flow In These cash model we of growth. EBITDA continue results closing, achieve positioning demonstrate we've so double-digit to margin and accomplished I'm higher attractiveness as enhance what higher operating

on question-and-answer concludes instruct This you remarks participants into ask questions? Operator, how would and our will prepared to we move session. now the please

Operator

you. Thank

[Operator will be now We session. question-and-answer conducting Instructions]. a

Needham comes Peterson question Kyle Please ahead. go from first Your Company. with &

Kyle Peterson

Great. on new the congratulations Thanks. roles. Good afternoon, Jeremy guys. Katie and

off, on to of just or there, start see, wanted slowdown be some or of one push on hesitation lumpiness there clients can off, wanted signs this these bookings, Just a large any maybe bit uncertainty. from color a BPaaS revisions, and understand some very would to there, here or the few deals around of given Any projects the just some shifting particularly the is macro little helpful. appreciate there's is guidance but just

Stephan Scholl

got three to Appreciate felt billion of years back $X.X to be Kyle. Thanks, we're Sure. that was when our to that to right, And it. sit, what And original almost goal big billion we listen, was it, said ago, you look where go guidance call $X.X we achieve. all and plan. ahead a going we

on early years So some had business. the couple success driving in good book that of days we've last of

XXXX when we was started of we performance of under You've XXXX. of year started all almost with translate has the starting with book more $XXX revenue XXXX. revenue And contract, seen did from business bookings in translated did if which $X.X XXXX you the million beginning contract under that in into we the success entire revenue in how of of than bookings billion we BPaaS in our XXXX, the

over valuable years, $XXX million quality high So backlog. two of almost

then you which never And for as time much this revenue billion well. say Katie of under next that $X.X point had heard at year, in contract we've

also Katie XXXX said under looking And So into revenue contract. XX% mid-term. that and then confidence give XXXX should of

at that $XX course, terms of more and right of value pipeline, them over some of now significantly that one are looking deals as In in each million well. we're over than them, XX of

We're how are take try to CFOs especially strong. and CEOs half their costs of and the second continuing heading business. at clients, seeing to same is pipeline look out now So where from enthusiasm into

all As lot what would that know, there happened spend COVID, a solutions. point was you on of during I call

an come platform. and end-to-end kind that our platform together our door capability of with Alight resonated. We've Worklife capability in really with front has And stitched

quarters well. a largest yield moving for said and So with our our again some we transactions work I value are clients, of which the as of us process engineering around outer doing significant pretty as a lot into could for re-engineering pipeline lot

talked really or hard business segment, you where shareholders company. are. as And view. at But feel during contribution to long-term look appreciate and making in have drive I the XX, about I've the of a I XX, higher again, we at multi-year shareholders, know to to margins that X to business better book even better long-term take this the Again, said my quality view that we very XX view XX-month it's as good sure of a we a to

about really feel we are. we good So where

Kyle Peterson

on Maybe half. kind looking buyback typically half good it's the the capital guys pursue be first great. is you makes of thinking allocation, color. half the capital cash guys half back follow-up year year for about Yes. or year back of you there interesting better That tends to look And color seasonally deploy just you're in how thinking versus to whether additional be a are it's about any sense. on guys the How flow the you are in second of specifically the would in opportunities the the camping would of M&A up the half second to

Katie Rooney

Yes. Great question. Thanks, Kyle.

have necessarily priorities Our capital changed. allocation not

think this environment. I elevated kind been anything they've of in if

of balance position. the we feeling from priority where sheet, good maturity stability a First are the hedge is position

we'll naturally important. I continue So to which think delever, is

and been see valuation in So of if a then in we'll really market stock then listen, inorganically. investing we've consider the absolutely But from buyback. lot is a opportunities, the there don't frothiness business And the right said, standpoint. priority organically has still the we

go we forward. again to on them and the are say both table continuing as I'd evaluate So we're

Operator

ahead. Kevin question Please McVeigh Next Suisse. with go Credit

Kevin McVeigh

Katie for Great. let as Jeremy, and congratulations sure. add Thanks well much, my me deserve to and well so

Katie Rooney

Thank you.

Kevin McVeigh

you're one I clarify to -- want Stephan, welcome. right. you Hey I wanted very sure just Hey to make thing it Stephan, I I want just just to said, heard

picked bookings that Fortune adjustment us clarify You'd relate that in I clear. you'd mentioned any just that to Are big just in that? the you XX make the I it want just mentioned sure client. the or to the still -- context XX in up I that earlier were year. for think know did right. you could there at you I all? Fortune I they number Was client around won bookings

Stephan Scholl

with announce imagine stuff, a booking you deals to that yes. able still that transaction, This These previously. it and name. actual one the fresh kind to and are Obviously, Yes, different. different we be so of gets all can as complicated NDAs a different it's announced than is the

hopefully So that helps it.

Katie Rooney

it's And Yes. -- not included. Kevin

Stephan Scholl

Oh, sorry, Katie.

Katie Rooney

our It's in QX number. Yes. not

Stephan Scholl

not yes, QX. Oh, mentioned Yes, That's in That's That's I July why Yes. statement. thank it's correct. you. right. the

Kevin McVeigh

the that's Understood, full-year, right? or in it is it's full-year the guides, but Katie, in Stephan,

Katie Rooney

Correct.

Kevin McVeigh

Great. things you're added it the coincidental because real like international what payroll Professional partnership. are is brings then that then story the understand Services. we one Does add that that encourage it's nice of that Katie, And responsibilities or us a to part that help sounds really just of focus maybe additional Workday's a bear about obviously Is and well. on as

Katie Rooney

the Thanks, large I right? we're very a of and company I've As Kevin. team -- as partnership has Workday Yes. the across organization, also is deployed highly client, a it. you of know, I mean, think the built. that that absolutely so the think financials part we've

good a for is us. that think do I So opportunity

international come continue for huge we talked as about mean, the we across Global a as you lot strength, when to general, platform our at position we've our solutions, position from of in I a bring bear a OneAlight Payroll significant there's strategy just clients. to the also, opportunity about think I think

clients leadership solutions focus and team our approach. really across our that platform So bring with of today continuing work and is to to the to those the kind

Stephan Scholl

and and is we in I something what companies in built a to speaks thing were as is is HR we're only all which left simplification. one a a The to transformation partnership, would Dave digital to and this a be massive to consolidation Yes. that's that the in around Kyle's Carl add business know centers and absolutely Workday seeing just to partner, have of software behind listen, the incredible software best market, earlier of question kind part buying the Neil of

so view and this with And consolidated and solutions share is a looking they clients I that an more platform what that you and on are a share, approach. kind is partnership for which Workday of see

which a different XX, of XX credence playbook, kind kind gives that BPaaS accounts, XX solutions. lot in because how lot to XX, So you do up our drive to a whole of have of is point of OneAlight these clients these

And enterprise which to the both of we're of moving an approach. seeing platform more type is a same so integrated trends, kind

Operator

Tien-Tsin with Next Huang J.P. Morgan. go question Please ahead.

Tien-Tsin Huang

to my as and thanks, just Jeremy I well. Hey, and one more time. clarify want congrats Katie to

that were know the making of issue the BPaaS but out pipeline? of revenue here. headline as separately, expecting and you Forgive anywhere year? timing me I here it or released all know next are terms change, figures timing? just then you again a year and in very the BPaaS is anything are on bookings Or Did into that part revision it the in nature, And TCV this I that it it fall at Is piece? just really the revenue is else long-term bookings of up didn't

Katie Rooney

of Thank Yes. you. things. Tien-Tsin. A Good question, couple

pipeline the we about $XX million. team it talk Stephan right? When There's strong is having is yes, mentioned lumpiness, some a deals, the over working. of really think, timing, over I XX that

think over has getting deals the line but strategy's I the those resonating, taken longer.

changed guidance is that that's So comes in. kind the only revision piece where haven't one the that's obviously really story. of we Why because of

new model, what obviously around Going support mentioned other pricing we components three guidance All has continues it we've the most years the the areas, obviously driver well. in back right? as the to with performance coupled is important non-BPaaS continued the and past to strong forward done going the impact the that over

Tien-Tsin Huang

good. Very

Stephan Scholl

just Yes, not we're I mean --

Tien-Tsin Huang

Go ahead, Stephan. go ahead. Sorry,

Stephan Scholl

bookings different numbers, last it's healthy. from seen to in I conversation. if the piece to going December We've had from X, GE is at not wavering BPaaS say, quarter. the change that as just all No, And a we're the agenda transformation January from XX the you was you've and

So all timing that still terms as that's the But why shows mid-term health one of is it but health up is as thing. the transformation, guidance, And strong. of of business, the still our very us in how you time, that, the lot is more lot what we of of see, because that investors also analysts can -- which and spend a asks non-BPaaS is asked a business? -- you book

two drive of book us. a together The really business resilient for

And of BPaaS is is so non-BPaaS a year GE no one, revenue think revenue, a no was Tien-Tsin but the until end there's I example there's think though I of there's it even great last the at which lot year, a the of major XXXX, type booking revenue. you more impactful And of drive some platform name last on business us type and helping forward all revenue, growth moving some as towards the of our heard in but non-BPaaS quarters of the book outer years. in in say, there's that couple the

Tien-Tsin Huang

No, good. I Very -- I understand.

no here. -- just think much may important be of of important but make some complaints some on wanted the make sure, too to focus yes, the given sure, I KPIs,

and that visibility some for providers. seeing kind seeing And piece, with normalization. We a that. questions. know So lot of and delays It the follow-up, same just then push-outs thinking on again around as questions are you signs through. TCV about sound; of of know in just thing influenced amongst just the you clients? timing, growth that my limited thinking, But employment change well. quick curious but half, headline conversion larger heard any I of not revisions, for traditional I there's some doesn't is any strong, you're if you're And I'm went I'm other to same-store my Thanks by know taking there pipeline thing. services assuming the anything which IT too which your second I is

Katie Rooney

not. performance, Tien-Tsin. doing the again kind had of the working incredible really Thanks, job just and an the through us. to Yes. live team We're When getting time, comes on that trends is it on on haven't impact clients employment an underlying

as are for we and to the area QX continue that monitor you think higher QX to know quarters we monitor. project only do I us continue

well. second today, in So feel have quarter, But But far, visibility good. it less the we recurring point. at terms business saw kind we to a where one we you of the area done bit in book and little of sit we've this of the that's

Operator

Next question D.A. with Pete Heckmann Please Davidson. ahead. go

Pete Heckmann

in They of afternoon. expect had few a questions. first half, of seem like quarter GE -- large bit. kind both big a of to signed I XXXX. XXXX the those influence in them. one Thinking two live Just rates go second through? the half, were Would more growth fourth we good those midway clients, to was of the enough those about Hi, little thinking about they're

live. So to backlog just contracted going go of any tracking trying is big additional just about is lives? the in But hitting -- some of you're pipeline feel milestones, like XXXX towards that said your you thoughts tracking those contracted terms going into

Katie Rooney

again; what fantastic with a -- team track they contracts. those remain on say just I'd It the has Yes. is, job done Thanks.

GE; how not it fully we're fully actually not XXXX. a So full we're at through rate -- XXXX. it We're live kind like works the start run is, of at until not of

the at a XXXX of to at as we're we see XXXX. continues start through So the year. grow run benefit you then enter And actually rate a that will full

Pete Heckmann

Got it.

about and there? Okay. surprises And relative ReedGroup its then any and integration, thoughts its fit any

Katie Rooney

customers Yes. you think say I'd Pete, interaction what our really asking the just are within about the it landscape it's for, with their OneAlight well is, in -- of of terms honestly us. fits what view when

has the in performed traction really there. team well. And the good pipeline seen we've So

surprises. no So

bigger -- there. in potentially think the opportunity I still even anticipated. early pipeline still than it's I But we'd a we're we're would say

Stephan Scholl

but we've employees leaves to to terms helping work around in get small back actually of does that is the small say huge you in element by which I'd get what seen swayed it's category. it earlier, them because is a a key deals leaves some with a mighty When Yes. component large such very think capability, of ROI that.

significant. So the them as program just leaves then the on the somebody a base in so work Fortune we leaving cost back, dollars and especially of getting unpack, XXX, are

when to of kind attach it the into helped more it we conversation the us some so administration for of into our cohesive tip favor scales us. and Worklife navigation our really nice brings of and it kind And really benefits has integrate and and rest much platform really to on in deals our a

Operator

with Please Christiansen Peter question Citi. go ahead. Next

Peter Christiansen

for to Good be a Thanks call. the part Glad of question. evening. the

Stephan Scholl

Peter. Thanks

Katie Rooney

Peter. Thanks

Peter Christiansen

perhaps to you wondering enterprise the just I'm of when aspects? outperform conscious is benefits other was it Thank or could you see that or life looks gross I it my Is maybe a dynamic to I as the margin are just kind sounds you. really environment. you what look like follow-up, really mentioned it if just And to really just know back cost strong, then, pipeline trying enterprises but driving quarter. talk bit this spending the understand savings inverse. do cost pipeline? more

that could outperformance? of the some Just dig we wondering if into Thank you. drove little a bit. What

Stephan Scholl

make did the simplicity, Yes, very financially keeping employees as helping the sure. And making fact, the that them a corporations saw here, to of just more a more And healthy ago, And most decisions COVID Thanks this three got secure. all for more concise employees ago in when solutions. try I'll bandaid, better because in talk journey add and I right you right? decisions. these want was about that, everything What is We've process around at I complexity is whole years and clarity this point through on been knew clients three-and-a-half keep years question. multi-year this. can around lot and we

with that which only shift the to continued value but we've culturally big is a us, was our platform prove not even our so the our of market information And of we're to give Alight data I door, integrate name order front data, competitors own for decisions. think for willing data in our the of best integrating Worklife a out was, better to platform make set to in people the for

on thing did And transformation or Ferrari last my the happened world, be company, by my background. the business major drive impacted employee last same all everybody the it seen the in in I the how BXC knows engagement really in way, for has mean digital none digital other Nike really exactly to whether of We that side corporations. or We've things. of the that disruption sense, decade, in how world

So And has we've seen SaaS that we're put didn't because label all on strong on put of providers. drive we it's and old taking together that's combination And as it, of that a software too with an services a the us of it Business-Process-as-a-Service. just worked play. really label really, well BPaaS with playbook platform complex. SaaS products a a help We really

years. And the big large simplify spend looking every to in is last over consolidate four talk to the we so that scale had they've client and now

clients helping capability their it not of I doesn't And just of better a is, have for employees investments it's and see mystery. When So it far you look we're the points, it. in the campaigns needed, you get rid to to mean, the drive engagement value them right? for has where for that, point decision good spend. aren't room think clients not get their rates percentage news when help don't how been the more the of in look, solutions they're of, difficult using we're you in think beneficiary get value low-single-digit to of because to very

sets Alight rate engagements the integrate are you quadruple our when cases in in many So Worklife. data double, triple,

exciting So lines the that clients of the helps? we're some middle Hopefully right costs. those being we're at take in out by chapter of -- an with front on helping

Katie Rooney

Peter, But Yes. about we talked and And I said, we investments of -- last just we first this into going go-to-market, Peter, in for on margin just come some of gross we on thanks, investments the in they and will see call. make a our margin those front, to return year on continue our terms you address, how to the technology think just on made in a first, and I delivering terms right, lot glad the we key gross through to of was have have as to year. customers. we're investments,

what gross And to margin. you're see so that's really through starting play the

Peter Christiansen

Pretty That's Thank great. there. compelling you.

Katie Rooney

Thank you.

Stephan Scholl

you. Thank

Operator

America. ahead. of Bank Next Heather Please Balsky with go question

Heather Balsky

you bookings to thank so first I'm much. Hi, another question. going ask

So I the tires we here. but just want apologize, to kick

over that some you're what selling timing what you timing so. the in I'm might of of of delay. the these just it to the from Is of getting of Is the deals where getting those bookings with it has might BPaaS curious to some about causing kind just feedback You the be be, internally the within deals, the shifts strategy curious that customers, just I'm the getting talked some line. do company? just company?

Stephan Scholl

Yes. I wouldn't timing. put it or delays as

two You which to new put up If the really we strategy have heroic a it of last quarters dollars. on said to would the $X.X of we we're day these if everything coming that. years, billion be BPaaS into a three could context. is, And in deliver context

we're $X.X look So that targets on that right? ahead it of early, millions hundreds from of view. so, call it going own, to that, ahead plan hit would and at I its hit point our we've of And billion of

Our the takes bigger. say the go anything, the technical And not to a process and here, in. but say, doing, get what's are you demand applications. start here different I If a happening to XX to is us pipelines it when lot want re-engineering major are would clients are deals to strong. takes getting it from into too to get XX of to steps client work come

one experience look in ledger. on ledger has And left for it to set employee like the data on here's the of consolidated what right an the the of to now integrated would here's a and an experience place go side the side

to savings which some side from into ROI is dollars Here's going ROIs we've integrated of broken, mean, for right the, not clients millions being the platform. front door used, seen I here's costly complex, to, left our significant. hundreds again by savings, of from the of to side, in

you CFO senior into we're see Alight. great anything, have from conversation. on the say, department getting department more a a with the into I look now are conversations conversations people. So that We're lot if of to door The into front at conversations the lot would having It's department. are versus ServiceNow broadening what HR IT to is and actually

their done ServiceNow they're of their but side how We've seen book is well with of on business, has product all very things. ServiceNow limited as

the platform, nobody data which the administrative years, few last have has. else said We combination unique a is really always and I've that for

really to dynamic allows so be versus us more much static. And that

of specifically. winning data. so banks healthy and companies had we're And we've the and a And it's workshops administrative largest discussion financially great in the to the platform largest where the pertains with of door and a the keep it front when lot of value they States secure see lot lot of United a employees because to how

said few deal great. are as is the benefit a minutes The than So the exciting, which ago, through sizes these in just will I time. bit But pipeline getting sales super stronger more just complex ever. more longer-term us a cycles, takes

Heather Balsky

there's about platform. helpful. the efforts really pricing -- launched I'm of it if on of next That's you're your to forward. that your And pricing you you sort just talked about going and think taking the back that any Okay. curious how

Katie Rooney

I'll one. Yes, Heather, that maybe take

So you're right.

actually We how releases get new is think Worklife Alight product is for deals have great clear a continues our What because driven that now about clients that the value. to platform, to it's value more we're now really semi-annual it we is with add which say of pricing roadmap platform. such I'd how our

for price rolled do the looking can price face now being used that twice we're contract build we out forward those how we're So see to in year. clients you investments platform account at Right a pressure. going by into to remember, making

in. So it is kind of an essence baked

and demonstrate the element those releases. the clients there been that investments we've strategy I of key think making to value given it's is able a to in we're

Operator

KeyBanc. Next go with Please question ahead. Dechert Steve

Steve Dechert

just you provide any Hey, updates then your latest release on there have cloud? migration your Phase to the on feedback of And X Thank Worklife? know, can to been has there been of want you.

Stephan Scholl

you. Thank Yes. Sure.

Katie Rooney

Thank go Stephan. Yes. you, ahead, Yes, Steve.

Stephan Scholl

please. ahead, No, Katie, go

Katie Rooney

and we out about -- on I'll the I'll yesterday. just just talk was I going let the which release, Stephan, to rolled start then you rollout just with

So just team that job. a obviously I cloud migration, it's incredible The us. project on really would for an early, important done is but say the has

So time the of will we almost But The team are really next XXXX. the rollout. through be two half phases piece of again, completed in the of the kind first first kind of final right the kind And our we're a enrollment enter has here a with with of now really clients. on that important done annual really way this in pause as fall. we obviously

Stephan Scholl

again, for moments around million that's And topic integrate we to the into that day, -- of XX powerful with the the interactions us AI matter. already strategy Yes. data of XX at that's world, the you is undertake -- employees our that while look the are important side, we've years. almost is been for generative When that millions been hundreds on and and product with AI of what

last really static formats are for PDF out the call work look and somebody capability in with documents we've recognize health -- to really the this can documents building two example, So having able software PDF type answer usually our says, the centers. and the the be without our to really those generative with sync to plan, together files that's to is under in in a covered under question call been AI, calls procedure when to able PDF you capability is my the build release, be at

year. hundreds thousands every of single Those that get we calls are of

we're robust wealth people a and across is helping integration building piece making general. the to We're in health Ask points. really a better complexity of and really capability, out So very library decisions building type which API the AI strong Lisa wellbeing navigate

And door these so simpler, complicated. to front the look look then we're just easier, feel and phenomena we just of and down navigation, platform making retirement, the systems continuing DBDC benefit are kind iceberg double on payroll, know, so just the it all as

simplified of fashion. And the integrated capability that in an a much bringing door more front so world into

to a the really the say piece the We're to impact individual. family terms to or last digital or example and us. feel job a it us. us and that's really is code salary when numerous approach that's personalized something? BPaaS a stuck a to platform and day. plan all Nike for individual of And like people making specific a gave in we comes us people how for age help the band earlier. to on I financial plans. feel or a examples Why the value it So back or only the should continue to what's retirement we're of is wellbeing my to needs for drive here live based plan transformation side Ferrari health to many way I a the of BXC we to at same Why or their I an I'll with wellbeing want difference this about be is going benefits our maybe plan is went platform stuck focused maker then every terms big of situation client the to to And situation? in on And the or

Operator

I closing the floor you. for to to turn Stephan like remarks. would Thank over

Stephan Scholl

you today. and you the for joining investor appreciate and and I Katie look really of upcoming to us events. and time Jeremy the forward questions to many all I all all thank in of the Great meet

and So very a afternoon. much thank great you have

Operator

This concludes today’s teleconference.

thank disconnect time may and participation. your this for lines you You at your

Alight (ALIT) 1 Aug 232023 Q2 Earnings call transcript