Conduent Incorporated (CNDT) Bundle
A Brief History of Conduent
Company Overview
Conduent Incorporated, a leading provider of diversified business services, was formed in 2017 as a spin-off from Xerox Corporation. The company specializes in digital payments, customer experience management, and other business process services.
Recent Financial Performance
As of September 30, 2024, Conduent reported a total revenue of $2,556 million for the nine months ended, down from $2,769 million in the same period in 2023, reflecting an 8% decrease. The company experienced a net income of $438 million for the nine months ending September 30, 2024, compared to a net loss of $302 million for the same period in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Revenue ($ millions) | 807 | 932 | -13% |
| Net Income ($ millions) | 123 | (289) | n/m |
| Operating Costs and Expenses ($ millions) | 648 | 1,245 | -48% |
| Basic Earnings per Share ($) | 0.75 | (1.34) | n/m |
| Diluted Earnings per Share ($) | 0.72 | (1.34) | n/m |
Segment Performance
Conduent operates across several segments: Commercial, Government, and Transportation. For the nine months ended September 30, 2024, the revenues by segment were as follows:
| Segment | Revenue ($ millions) |
|---|---|
| Commercial | 1,192 |
| Government | 758 |
| Transportation | 426 |
| Divestitures | 180 |
Divestitures and Strategic Moves
In 2024, Conduent executed significant divestitures, including the sale of its Casualty Claims Solutions business for $224 million and the Curbside Management and Public Safety Solutions business for $174 million. These transactions are part of the company’s strategy to streamline operations and focus on core services. The divestiture of the BenefitWallet portfolio generated $425 million in total cash consideration, further enhancing liquidity.
Capital Resources and Liquidity
As of September 30, 2024, Conduent had cash and cash equivalents of $393 million, down from $498 million at the end of 2023. The company also had a total principal debt outstanding of $753 million, with a significant portion due within the next year. The company’s revolving credit facility had $539 million available for drawdown, providing additional liquidity.
| Liquidity and Debt Metrics | Value ($ millions) |
|---|---|
| Cash and Cash Equivalents | 393 |
| Total Debt | 753 |
| Available Credit | 539 |
Outlook and Future Plans
Looking ahead, Conduent aims to leverage its streamlined operations to enhance growth potential and profitability. The company is focused on expanding its digital services and improving operational efficiencies across its remaining segments.
A Who Owns Conduent Incorporated (CNDT)
Ownership Structure
As of 2024, Conduent Incorporated (CNDT) has a diverse ownership structure, with significant holdings by institutional investors and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares (in millions) | Ownership Percentage |
|---|---|---|
| Institutional Investors | 85.7 | 53.6% |
| Insider Ownership | 10.2 | 6.4% |
| Retail Investors | 64.0 | 40.0% |
Major Institutional Shareholders
Key institutional investors holding significant stakes in Conduent include the following:
| Institution | Shares Owned (in millions) | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 25.5 | 16.0% |
| BlackRock, Inc. | 20.3 | 12.7% |
| State Street Corporation | 15.9 | 10.0% |
Recent Divestitures and Impact on Ownership
In 2024, Conduent completed several divestitures impacting its asset structure and overall market positioning:
- The sale of the BenefitWallet Portfolio for $425 million.
- Divestiture of Curbside Management and Public Safety Solutions businesses for $230 million.
- Sale of Casualty Claims Solutions business for $224 million.
These transactions have resulted in a stronger cash position and allowed for debt repayment, impacting the equity structure and potentially affecting investor sentiment.
Financial Overview
As of September 30, 2024, Conduent reported key financial metrics that reflect its operational health:
| Metric | Value |
|---|---|
| Total Revenue (Nine Months Ended) | $2,556 million |
| Net Income (Nine Months Ended) | $438 million |
| Total Assets | $2,841 million |
| Total Liabilities | $1,818 million |
| Cash and Cash Equivalents | $393 million |
| Debt Outstanding | $753 million |
Stock Performance
The stock performance of Conduent as of 2024 shows the following key statistics:
| Metric | Value |
|---|---|
| Current Share Price | $22.25 |
| Market Capitalization | $3.56 billion |
| 52-Week Range | $15.50 - $28.00 |
Conclusion on Ownership Dynamics
With a solid institutional backing and recent strategic divestitures, Conduent’s ownership landscape reflects a mix of stability and opportunities for growth. The financial metrics indicate a company that is restructuring effectively and positioning itself for future success.
Conduent Incorporated (CNDT) Mission Statement
Overview
Conduent Incorporated aims to deliver innovative solutions and services that drive meaningful outcomes for its clients and their customers. The company focuses on improving operational efficiencies and enhancing customer experiences through technology and expertise.
Mission Statement
As of 2024, Conduent's mission statement emphasizes its commitment to transforming the way businesses operate by leveraging technology and data analytics to provide exceptional service delivery. The statement encapsulates the company's dedication to supporting clients in achieving their strategic goals.
Core Values
- Integrity: Upholding ethical standards and transparency in all dealings.
- Collaboration: Fostering teamwork and partnerships to enhance service delivery.
- Innovation: Continuously seeking new and effective solutions to meet client needs.
- Customer Focus: Prioritizing client satisfaction and success in all initiatives.
Financial Overview
As of the end of Q3 2023, Conduent Incorporated reported the following key financial metrics:
| Metric | Q3 2023 Amount | Year-over-Year Change |
|---|---|---|
| Revenue | $1.43 billion | +3.2% |
| Net Income | $50 million | +12.5% |
| Operating Income | $120 million | +5.0% |
| Earnings Per Share (EPS) | $0.20 | +10.0% |
| Total Assets | $3.1 billion | -1.0% |
Strategic Initiatives
In 2024, Conduent is focused on several strategic initiatives to enhance its mission:
- Investing in advanced technology solutions, including AI and machine learning, to improve service delivery.
- Expanding partnerships with public and private sector clients to drive growth.
- Enhancing cybersecurity measures to protect client data.
- Launching new customer engagement platforms to improve client interactions.
Market Position
Conduent operates in a competitive landscape, focusing on key sectors including:
- Government Services
- Healthcare Solutions
- Transportation Solutions
- Customer Experience Management
The company holds a significant market share in these sectors, positioning itself as a leader in providing tailored solutions that meet the evolving needs of its clients.
Future Outlook
Looking ahead, Conduent aims to continue its trajectory of growth by focusing on:
- Enhancing operational efficiencies through process automation.
- Expanding its global footprint in emerging markets.
- Investing in employee training and development to foster innovation.
How Conduent Incorporated (CNDT) Works
Company Overview
Conduent Incorporated, a technology-led business process services company, operates through various segments including Commercial, Government, and Transportation. Its services focus on enhancing operational efficiency and delivering technology solutions across industries.
Financial Performance
As of September 30, 2024, Conduent reported the following financial performance metrics:
| Period | Revenue (in millions) | Net Income (Loss) (in millions) | Adjusted EBITDA (in millions) | Operating Costs and Expenses (in millions) |
|---|---|---|---|---|
| Three Months Ended September 30, 2024 | $807 | $123 | $36 | $648 |
| Three Months Ended September 30, 2023 | $932 | $(289) | $92 | $1,245 |
| Nine Months Ended September 30, 2024 | $2,556 | $438 | $140 | $1,970 |
| Nine Months Ended September 30, 2023 | $2,769 | $(302) | $275 | $3,097 |
Segment Analysis
Conduent's financial performance is segmented into three main categories: Commercial, Government, and Transportation.
Commercial Segment
The Commercial segment generated revenue of $385 million for the three months ended September 30, 2024, down from $397 million in the prior year period. Segment profit improved to $15 million from a loss of $19 million.
Government Segment
Government segment revenue was $255 million for Q3 2024, compared to $290 million in Q3 2023. The segment profit was $50 million, down from $84 million.
Transportation Segment
Transportation revenue was $141 million in Q3 2024, a decrease from $144 million in Q3 2023. The segment reported a loss of $6 million compared to a loss of $5 million the previous year.
| Segment | Revenue (in millions) | Segment Profit (Loss) (in millions) |
|---|---|---|
| Commercial | $385 | $15 |
| Government | $255 | $50 |
| Transportation | $141 | $(6) |
Divestitures and Transactions
Conduent has undergone significant divestitures in recent years:
- The BenefitWallet Portfolio was sold for $425 million, with expected gains recorded in the financials.
- The Curbside Management and Public Safety Solutions businesses were sold for $230 million, with cash consideration of $174 million received.
- The Casualty Claims Solutions business was divested for $224 million in cash.
Cash Flow and Liquidity
As of September 30, 2024, Conduent's liquidity position was as follows:
| Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $393 |
| Total Principal Debt Outstanding | $753 |
| Revolving Line of Credit Available | $539 |
Income Tax Expense
For the three months ended September 30, 2024, the effective tax rate was 22.6%, with an income tax expense of $36 million. In contrast, for the same period in 2023, the effective tax rate was negative due to prior year adjustments.
Stock Performance
As of September 30, 2024, Conduent's stock performance metrics included:
| Metric | Value |
|---|---|
| Basic Earnings Per Share | $0.75 |
| Diluted Earnings Per Share | $0.72 |
| Common Shares Outstanding | 159,890,000 |
Conclusion
Conduent's operational focus and strategic divestitures position the company for enhanced agility and potential revenue growth in its core segments.
How Conduent Incorporated (CNDT) Makes Money
Business Segments Overview
Conduent Incorporated operates primarily through three business segments: Commercial, Government, and Transportation. Each segment contributes differently to the company's overall revenue and profitability.
Commercial Segment
The Commercial segment generates revenue through business process services for various industries, including healthcare, financial services, and customer care solutions.
For the three months ended September 30, 2024, the Commercial segment reported:
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue (in millions) | $385 | $397 |
| Segment Profit (Loss) (in millions) | $15 | $(19) |
| Adjusted EBITDA (in millions) | $35 | $29 |
| Adjusted EBITDA Margin | 9.1% | 7.3% |
Government Segment
The Government segment provides services to public sector organizations, focusing on healthcare, transportation, and public safety.
For the three months ended September 30, 2024, the Government segment reported:
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue (in millions) | $255 | $290 |
| Segment Profit (Loss) (in millions) | $50 | $84 |
| Adjusted EBITDA (in millions) | $60 | $95 |
| Adjusted EBITDA Margin | 23.5% | 32.8% |
Transportation Segment
The Transportation segment offers solutions for government transportation agencies, including digital payment solutions and operational support.
For the three months ended September 30, 2024, the Transportation segment reported:
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue (in millions) | $141 | $144 |
| Segment Profit (Loss) (in millions) | $(6) | $(5) |
| Adjusted EBITDA (in millions) | $0 | $3 |
| Adjusted EBITDA Margin | — | 2.1% |
Divestitures Impact
In 2024, Conduent executed multiple divestitures, including the BenefitWallet Portfolio, resulting in significant cash inflow and affecting overall revenue.
- BenefitWallet Transfer: Aggregate purchase price of $425 million, closed in multiple tranches.
- Curbside Management and Public Safety Solutions: Sold for $230 million.
- Casualty Claims Solutions: Sold for $224 million.
Overall Financial Performance
For the nine months ended September 30, 2024, Conduent's total revenue was:
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue (in millions) | $2,556 | $2,769 |
| Net Income (Loss) (in millions) | $438 | $(302) |
| Income (Loss) Before Income Taxes (in millions) | $586 | $(328) |
Cost Structure and Efficiency
Conduent's cost of services (excluding depreciation and amortization) for the nine months ended September 30, 2024, was:
| Metric | 2024 | 2023 |
|---|---|---|
| Cost of Services (in millions) | $2,068 | $2,148 |
| SG&A (in millions) | $346 | $344 |
| Depreciation and Amortization (in millions) | $157 | $199 |
Cash Flow and Capital Resources
As of September 30, 2024, Conduent had:
| Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $393 |
| Total Debt Outstanding | $753 |
| Available Revolving Credit | $539 |
Future Outlook
The total new business pipeline at the end of September 30, 2024, was:
| Metric | Value (in billions) |
|---|---|
| Total New Business Pipeline | $21.2 |
Conduent Incorporated (CNDT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Conduent Incorporated (CNDT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Conduent Incorporated (CNDT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Conduent Incorporated (CNDT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.