Conduent Inc (NASDAQ:CNDT) shares are trading higher after the company reported better-than-expected first-quarter FY24 earnings.
The SaaS company reported a first-quarter FY24 sales decline of 0.1% year-on-year to $921 million, beating the analyst consensus estimate of $895 million.
The new business annual contract value (ACV) totaled $99 million. Total operating costs and expenses declined 14.6% to $794 million.
Adjusted EBITDA declined 23.3% Y/Y to $69 million, with margin contracting 230 bps Y/Y to 7.5%. Adjusted EPS of $(0.09) beat the consensus estimate of $0.00.
Operating cash flow stood at $(37) million, with adjusted FCF of $(60) million. Conduent repurchased approximately 4.8 million shares in the quarter.
The company exited the quarter with cash and equivalents worth $415 million. Long-term debt, as of March-end, was $1.08 billion.
Conduent announced it has successfully completed the sale of its Curbside Management Solutions and Public Safety Solutions businesses to Modaxo, a division of Constellation Software Inc (OTC:CNSWF). The sale has a purchase price of $230 million.
"With the continued backing of our strong client base, partnerships with some of the leading global technology firms such as Microsoft and Oracle, and 57,000 dedicated associates, we expect continued progress along our 3-year journey and that progress is directly in line with our plan," said President and CEO Cliff Skelton.
Outlook: For FY24, Conduent still sees revenue of $3.60 billion – $3.70 billion, against an estimate of $3.56 billion.
Price Action: CNDT shares are trading higher by 13.5% to $3.575 at the last check Wednesday.