Alight Inc (ALIT) 2022 Q4 法說會逐字稿

Good morning, and thank you for holding. My name is Paul, and I will be your conference operator today. Welcome to Alight's Fourth Quarter and Full Year 2022 Earnings Conference Call. (Operator Instructions) 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.

早上好，謝謝你的支持。我叫保羅，今天我將擔任你們的會議接線員。歡迎來到 Alight 的第四季度和 2022 年全年收益電話會議。 （操作員說明）提醒一下，今天的電話正在錄音中，公司網站的投資者關係部分將提供電話重播。

And now I would like to turn the call over to Jeremy Heaton, Executive Vice President, Finance at Alight to introduce today's speakers.

現在我想把電話轉給 Alight 財務執行副總裁 Jeremy Heaton 來介紹今天的演講者。

Good afternoon. Thank you for joining us. Earlier today, the company issued a press release with fourth quarter and full year 2022 results. A copy of the release can be found on the Investor Relations section of the company's website at investor.alight.com.

下午好。感謝您加入我們。今天早些時候，該公司發布了一份包含 2022 年第四季度和全年業績的新聞稿。該新聞稿的副本可在公司網站 investor.alight.com 的投資者關係部分找到。

Before we get started, please note that some of the company's discussion today will include forward-looking statements. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are discussed in more detail in the company's filings with the SEC, including the company's most recent Form 10-K as such factors may be updated from time to time in the company's subsequent filings with the SEC.

在我們開始之前，請注意公司今天的一些討論將包含前瞻性陳述。此類前瞻性陳述並非對未來業績的保證。由於多種因素，實際結果可能與前瞻性陳述中明示或暗示的結果存在重大差異。這些因素在公司提交給美國證券交易委員會的文件中有更詳細的討論，包括公司最近的 10-K 表格，因為這些因素可能會在公司隨後提交給美國證券交易委員會的文件中不時更新。

The company does not undertake any obligation to update forward-looking statements. Also, throughout this conference call, the company will be presenting non-GAAP financial measures. Reconciliations of the company's historical non-GAAP financial measures to their most directly comparable GAAP financial measures appear in today's earnings press release.

公司不承擔任何更新前瞻性陳述的義務。此外，在整個電話會議中，公司將介紹非 GAAP 財務措施。公司歷史非 GAAP 財務指標與其最直接可比的 GAAP 財務指標的對賬出現在今天的收益新聞稿中。

On the call from management today are Stephan Scholl, CEO; and Katie Rooney, CFO. (Operator Instructions).

今天接到管理層電話的是首席執行官 Stephan Scholl；和首席財務官凱蒂·魯尼 (Katie Rooney)。 （操作員說明）。

I will now hand the call over to Stephan.

我現在將把電話轉給斯蒂芬。

Thank you, and good afternoon, everyone. We are excited to share our Q4 results where we finished the year with great momentum, delivering another quarter ahead of expectations, with revenue up 9% and adjusted EBITDA up 27%.

謝謝，大家下午好。我們很高興分享我們第四季度的業績，我們以強勁的勢頭結束了這一年，又比預期提前了一個季度，收入增長了 9%，調整後的 EBITDA 增長了 27%。

Our strong finish to 2022 completes year 2 of the 3-year plan we outlined in 2021 ahead of expectations. Our consistent performance is a testament to the differentiated value we deliver for our clients and their employees and the attractive market opportunity that Alight is uniquely positioned to meet. Our BPaaS offerings have accelerated our strategy by connecting the power of data with our products and capabilities across the spectrum of human capital solutions to redefine the future of employee well-being.

我們到 2022 年的強勁表現提前完成了我們在 2021 年制定的 3 年計劃的第 2 年。我們始終如一的業績證明了我們為客戶及其員工提供的差異化價值，以及 Alight 以獨特的優勢迎接具有吸引力的市場機會。我們的 BPaaS 產品通過將數據的力量與我們跨人力資本解決方案的產品和能力聯繫起來，重新定義員工福祉的未來，從而加速了我們的戰略。

This strategy has culminated with transformational wins for Alight with PwC, Shell and the Federal Thrift, and this quarter is no different. We signed a company-defining long-term agreements with GE and another Fortune 10 company where our Alight Worklife platform serves as the front door to connecting high-value content and driving employee engagement. With these new wins, we are accelerating our investments while delivering double-digit growth in 2023.

這一戰略最終導致 Alight 與普華永道、殼牌和 Federal Thrift 的轉型勝利，本季度也不例外。我們與 GE 和另一家財富 10 強公司簽署了一項公司定義的長期協議，我們的 Alight Worklife 平台將作為連接高價值內容和推動員工敬業度的前門。憑藉這些新的勝利，我們正在加速投資，同時在 2023 年實現兩位數的增長。

Since going public, we have met or exceeded expectations each quarter. More specifically, in 2022, full year total revenue increased 7% to $3.1 billion, driven by 9% growth in recurring revenue, which now represents approximately 84% of total revenue. On a total contract basis, the bookings of our technology-led BPaaS solutions grew nearly 45% to $871 million, well ahead of our $680 million to $700 million annual target. And BPaaS revenue for 2022 was $564 million, up 45% versus prior year and now comprises 18% of total revenue, up from 13% in 2021.

自上市以來，我們每個季度都達到或超過了預期。更具體地說，在經常性收入增長 9% 的推動下，2022 年全年總收入增長 7% 至 31 億美元，經常性收入目前約佔總收入的 84%。在合同總額的基礎上，我們以技術為主導的 BPaaS 解決方案的預訂增長了近 45%，達到 8.71 億美元，遠遠超過了我們 6.8 億至 7 億美元的年度目標。 2022 年 BPaaS 收入為 5.64 億美元，比上年增長 45%，目前佔總收入的 18%，高於 2021 年的 13%。

Adjusted EBITDA increased 6% to $659 million, even with $38 million of incremental investments in the year. And finally, we achieved operating cash flow conversion of 43%, up from 19% in 2021. I'm incredibly proud of the way our team continues to deliver on our commitments while making meaningful progress on our transformation. We have focused in 3 key areas: products and technology, our commercial go-to-market and how we deliver for clients.

調整後的 EBITDA 增長 6% 至 6.59 億美元，即使當年增加了 3800 萬美元的投資。最後，我們實現了 43% 的運營現金流轉換，高於 2021 年的 19%。我為我們的團隊繼續履行承諾並在轉型方面取得有意義進展的方式感到無比自豪。我們專注於 3 個關鍵領域：產品和技術、我們的商業上市以及我們如何為客戶提供服務。

First, in product and technology, we launched a Alight Worklife and migrated all of our clients onto our enterprise-wide Employee Experience platform. This is the foundation for engagement. Worklife has become the single resource from daily well-being to complex care and the Alight Worklife mobile app is key to digital engagement. In 2022, the app was downloaded 1.2 million times. Our monthly active users increased 170%, and through annual enrollment, we saw a 200% increase in digital benefit enrollments with higher overall client satisfaction.

首先，在產品和技術方面，我們推出了 Alight Worklife，並將我們所有的客戶遷移到我們的企業級員工體驗平台上。這是參與的基礎。 Worklife 已成為從日常福利到復雜護理的單一資源，而 Alight Worklife 移動應用程序是數字參與的關鍵。 2022 年，該應用程序被下載了 120 萬次。我們的每月活躍用戶增加了 170%，並且通過年度註冊，我們看到數字福利註冊增加了 200%，總體客戶滿意度更高。

Next, our commercial go-to-market. We've built out our new logo team as well as value engineering and solution architects to accelerate our growth. Since 2021, we have won over 700 new logos, including Navistar, PwC, Sartorius, Shell, Genuine Parts, Siemens Energy and AutoZone in addition to our great Q4 wins. We are just shy of our 3-year BPaaS bookings TCV target by the end of year 2. Finally, we are delivering for our clients. As I said before, we believe that light is in a category of one when it comes to bringing our platform and content approach combined with decades of services expertise.

接下來，我們的商業上市。我們已經組建了新的徽標團隊以及價值工程和解決方案架構師，以加速我們的發展。自 2021 年以來，我們贏得了 700 多個新標識，其中包括 Navistar、PwC、Sartorius、Shell、Genuine Parts、Siemens Energy 和 AutoZone，此外還有我們在第四季度的出色表現。我們距離第 2 年底的 3 年 BPaaS 預訂 TCV 目標還差得很遠。最後，我們正在為我們的客戶交付。正如我之前所說，我們認為，在將我們的平台和內容方法與數十年的服務專業知識相結合時，光屬於一類。

In 2022, we onboarded the Federal Thrift, the largest transaction of its kind with over 6 million participants. And through annual enrollment this past quarter, our digital CSAT or customer satisfaction was up 10 points while reducing overall live call volumes, a significant factor in how we staff and manage while delivering for our clients moving forward. The momentum we have heading into 2023 is because of these focus areas that bring together the power of One Alight and is the reason we are winning these transformation of new deals that support both the employer and the employee.

2022 年，我們加入了 Federal Thrift，這是同類交易中規模最大的，參與者超過 600 萬。通過上個季度的年度註冊，我們的數字 CSAT 或客戶滿意度提高了 10 個百分點，同時減少了整體實時通話量，這是我們在為客戶提供服務的同時進行人員配備和管理的重要因素。我們進入 2023 年的勢頭是因為這些重點領域匯集了 One Alight 的力量，這也是我們贏得這些支持雇主和僱員的新交易轉型的原因。

For the employee, Alight Worklife simplifies and improves the experience and value they're able to derive from the complex ecosystem across employers' benefits and well-being investments. For the employer, these solutions help them achieve a higher ROI, while improving employee satisfaction and engagement. A real life example we come across often is family planning. In the traditional model of support and employee needs to navigate multiple siloed applications to get support with medical or adoption planning, insurance coverage options and plan selection, HSA, FSA and 401(k) decisions and lead management.

對於員工而言，Alight Worklife 簡化並改善了他們能夠從跨雇主福利和福祉投資的複雜生態系統中獲得的體驗和價值。對於雇主而言，這些解決方案可幫助他們實現更高的投資回報率，同時提高員工滿意度和敬業度。我們經常遇到的現實生活中的一個例子是計劃生育。在傳統的支持模型中，員工需要瀏覽多個孤立的應用程序以獲得醫療或收養計劃、保險範圍選項和計劃選擇、HSA、FSA 和 401(k) 決策以及潛在客戶管理方面的支持。

This places tremendous mental stress on the employee trying to manage it all in what is supposed to be an exciting time of life. Now with our integrated Alight Worklife platform, one status changed where the employee triggers a proactive, data-driven, personalized message with support and options to address all dimensions of family planning, even surfacing new well-being programs and resources, they typically wouldn't have known existed all in a seamless experience.

這給員工帶來了巨大的精神壓力，他們試圖在本應是人生激動人心的時刻管理這一切。現在，通過我們集成的 Alight Worklife 平台，一種狀態發生了變化，員工觸發了主動的、數據驅動的、個性化的消息，並提供支持和選項來解決計劃生育的各個方面，甚至出現新的福利計劃和資源，他們通常不會不知道所有這些都存在於無縫體驗中。

Another example of a high-impact life event is divorce and the connection between employees' financial stress and anxiety driving a need for mental illness support. This employee may have multiple 401(k) loans, no remaining holiday time, typically, a company will not be able to connect all the dots on this specific employee unless they have the data on them in one connected Alight Worklife platform.

高影響力生活事件的另一個例子是離婚，以及員工的經濟壓力和焦慮之間的聯繫，導致需要精神疾病支持。該員工可能有多項 401(k) 貸款，沒有剩餘假期，通常情況下，一家公司將無法連接該特定員工的所有點，除非他們在一個連接的 Alight Worklife 平台上擁有這些數據。

Just 2 examples of many, but this is the value of Alight Worklife engagement platform. As we enter 2023, year 3 of our transformation, I am more confident than ever that we are focused in the right areas. And as I said earlier, we will continue to accelerate our investments, strengthening our competitive advantage and further developing our differentiated solutions, which are winning in the market.

只是其中的兩個例子，但這就是 Alight Worklife 參與平台的價值。當我們進入 2023 年，即我們轉型的第 3 年時，我比以往任何時候都更有信心我們專注於正確的領域。正如我之前所說，我們將繼續加快投資，加強我們的競爭優勢，並進一步開發我們在市場上獲勝的差異化解決方案。

With our strong bookings growth and highly recurring revenue model, we ended the year with over $2.9 billion of revenue under contract for 2023, the highest starting point for Alight ever. For context, $2.9 billion was our entire revenue in 2021. This gives us confidence that we can continue to improve growth, margin and operating cash flow in 2023, while accelerating our technology road map, despite what we and others believe will be a tougher macroeconomic backdrop.

憑藉我們強勁的預訂增長和高度經常性的收入模式，我們在 2023 年的合同收入超過 29 億美元，這是 Alight 有史以來的最高起點。就背景而言，29 億美元是我們 2021 年的全部收入。這讓我們有信心在 2023 年繼續提高增長、利潤率和運營現金流，同時加快我們的技術路線圖，儘管我們和其他人認為宏觀經濟將更加艱難背景。

For 2023, we will complete our 3-year plan ahead of the original outlook. We expect total revenue growth of 11% to 12%, adjusted EBITDA growth of 12% to 14%, and operating cash flow conversion of 45% to 55%. Importantly, when you look at the quality of the mix of our business, in '23 following the strong execution of our transformation in prior years, we expect a higher value BPaaS revenue dollars to grow over 25% for the year.

2023 年，我們將提前完成我們的 3 年計劃。我們預計總收入增長 11% 至 12%，調整後的 EBITDA 增長 12% 至 14%，經營現金流轉換率 45% 至 55%。重要的是，當您查看我們業務組合的質量時，在我們前幾年強有力地執行轉型之後的 23 年，我們預計更高價值的 BPaaS 收入美元將在這一年增長超過 25%。

Now let's dive more into 2023, so I can share some key areas of focus. We believe that in a recessionary environment, employers are under increased pressure to hold the line on spending, proving out the ROI on benefit spend is even more critical. Additionally, we believe that companies with truly differentiated well-being programs will be those that retain top talent during challenging times and ultimately position themselves well for long-term success.

現在讓我們更深入地探討 2023 年，這樣我就可以分享一些重點關注的領域。我們認為，在經濟衰退的環境中，雇主在控制支出方面面臨越來越大的壓力，證明福利支出的投資回報率更為關鍵。此外，我們相信，擁有真正差異化福利計劃的公司將是那些在充滿挑戰的時期留住頂尖人才並最終為長期成功做好準備的公司。

To continue to execute on our strategy, we are accelerating our investments across 3 priorities. First is the Alight Worklife platform. Our 2023 product road map kicks off with the first release date this month, where we will expand access of Alight Worklife to all family members, which we believe will make it the first corporate platform of its kind. The expanded access will allow us to move the needle in an even more meaningful way on caring for the well-being of the entire family unit.

為了繼續執行我們的戰略，我們正在加速對 3 個優先事項的投資。首先是 Alight Worklife 平台。我們的 2023 產品路線圖從本月的第一個發布日期開始，屆時我們將把 Alight Worklife 的訪問範圍擴大到所有家庭成員，我們相信這將使它成為同類企業平台中的第一個。擴大的訪問將使我們能夠以更有意義的方式推動針頭，以照顧整個家庭的福祉。

Additionally, we are seeing higher engagement through our Alight Worklife AI engine, recent entrants have validated the importance of AI being at the center of our platform strategy. Last year, our engagement channels, such as our intelligent virtual assistant were up 20%, and we are seeing significantly higher conversion rates on campaigns, leveraging AI for clients. Finally, we are accelerating the move to the cloud and our back office infrastructure. This will enable us to better manage seasonal peaks and demand while improving the employee experience for our customers.

此外，通過我們的 Alight Worklife AI 引擎，我們看到了更高的參與度，最近的進入者已經驗證了 AI 在我們平台戰略中心的重要性。去年，我們的智能虛擬助理等參與渠道增長了 20%，而且我們發現，利用 AI 為客戶提供的營銷活動轉化率顯著提高。最後，我們正在加速向雲端和後台基礎設施的遷移。這將使我們能夠更好地管理季節性高峰和需求，同時改善客戶的員工體驗。

Second, we are strengthening our operating model to showcase the power of One Alight by shifting our content-aligned care and services model to be more standardized and automated. We can leverage our global capabilities and improve the customer experience, while reducing the cost to serve for all our clients.

其次，我們正在加強我們的運營模式，通過將我們與內容相關的護理和服務模式轉變為更加標準化和自動化來展示 One Alight 的力量。我們可以利用我們的全球能力並改善客戶體驗，同時降低為所有客戶提供服務的成本。

Third, we are evolving our BPaaS solutions across well-being, driving more differentiation and increasing our revenue potential as we address a bigger need for our clients. Today, we have over $1 billion of upside in our installed base alone as we work towards having 90% of our sales team certified on One Alight and launched the next phase of our well-being and engagement solutions we will capitalize on our growing total addressable market.

第三，隨著我們滿足客戶更大的需求，我們正在改進我們的 BPaaS 解決方案，推動更多差異化並增加我們的收入潛力。今天，我們努力讓 90% 的銷售團隊獲得 One Alight 認證，並推出下一階段的福利和參與解決方案，我們將利用我們不斷增長的可尋址總量，僅在我們的安裝基礎上就有超過 10 億美元的增長空間市場。

Now I'll turn the call to Katie to dive more into our financial performance and provide our outlook for the new year.

現在，我將把電話轉給凱蒂，讓她更深入地了解我們的財務業績，並提供我們對新一年的展望。

Thank you, Stephan, and good afternoon, everyone. We continue to drive positive results across our business as we close out the second year of our transformation. I'm pleased to share our fourth quarter results, capping a year in which we beat the high end of our guidance range for revenue and achieved the high end of our guidance range for adjusted EBITDA.

謝謝你，斯蒂芬，大家下午好。在我們結束轉型的第二年時，我們繼續在我們的業務中取得積極成果。我很高興分享我們第四季度的業績，結束了我們超過收入指導範圍高端並實現調整後 EBITDA 指導範圍高端的一年。

Let me start first with our commercial results. We continue to exceed our expectations and see strong adoption of our BPaaS offerings, highlighted by company-defining new logo wins with GE, Chipotle and a Fortune 10 client during the fourth quarter. On a total contract basis, BPaaS bookings for the full year grew nearly 45% to $871 million, well ahead of our $680 million to $700 million target.

讓我先從我們的商業成果開始。我們繼續超出我們的預期，並看到我們的 BPaaS 產品得到廣泛採用，突出表現在公司定義的新徽標在第四季度贏得了 GE、Chipotle 和一家財富 10 強客戶。在總合同基礎上，全年 BPaaS 預訂量增長近 45% 至 8.71 億美元，遠超我們 6.8 億至 7 億美元的目標。

This bookings growth translates into higher contracted revenue and accelerating overall revenue growth. Our BPaaS revenue for 2022 grew nearly 45% to $564 million, and comprised 18% of total revenue at year-end, up from 13% at the end of 2021. With our strong execution, we ended the year with over $2.9 billion of 2023 revenue under contract, our highest ever, and over $800 million higher than our starting point in 2021.

這種預訂增長轉化為更高的合同收入並加速整體收入增長。我們 2022 年的 BPaaS 收入增長了近 45%，達到 5.64 億美元，佔年底總收入的 18%，高於 2021 年底的 13%。憑藉我們強大的執行力，我們在 2023 年年底的收入超過 29 億美元合同收入是我們有史以來最高的，比我們 2021 年的起點高出 8 億多美元。

Across our consolidated results, we continue to see progress as our investments pay off and the increasing quality of the mix of our business shows. Full year total revenue increased 7.4% to $3.13 billion, driven by 8.6% growth in recurring revenue, which now represents approximately 84% of total revenue. Adjusted EBITDA increased 6.1% to $659 million with an adjusted EBITDA margin of 21%, in line with prior year despite $38 million of incremental investments in the year. While we continue to accelerate our investments in Alight Worklife and large new deals, we delivered operating cash flow of $286 million for the year with a free cash flow conversion of 43%, significantly ahead of last year.

在我們的綜合業績中，隨著我們的投資獲得回報以及我們的業務組合質量不斷提高，我們繼續看到進步。全年總收入增長 7.4% 至 31.3 億美元，這是受經常性收入增長 8.6% 的推動，經常性收入目前約佔總收入的 84%。調整後的 EBITDA 增長 6.1% 至 6.59 億美元，調整後的 EBITDA 利潤率為 21%，與上年持平，儘管當年增加了 3800 萬美元的投資。在我們繼續加快對 Alight Worklife 和大型新交易的投資的同時，我們全年實現了 2.86 億美元的運營現金流，自由現金流轉換率為 43%，大大高於去年。

Next, I'm going to discuss the performance of our 2 primary segments. First, for Employer Solutions. Fourth quarter revenue was up 10% with recurring revenue up 9.3%. Project revenue was up 17.4% in the quarter, driven by several larger annual enrollment projects that we discussed investing in during our November call. Fourth quarter gross margin increased 190 basis points, benefiting from seasonality and the positive return from some of the investments earlier in the year. Fourth quarter adjusted EBITDA increased 24.4% to $240 million, and adjusted EBITDA margin expanded 330 basis points to 28.7%.

接下來，我將討論我們 2 個主要細分市場的表現。首先，針對雇主解決方案。第四季度收入增長 10%，經常性收入增長 9.3%。本季度的項目收入增長了 17.4%，這得益於我們在 11 月的電話會議上討論了投資的幾個較大的年度招生項目。第四季度毛利率增長了 190 個基點，這得益於季節性因素和今年早些時候部分投資的正回報。第四季度調整後 EBITDA 增長 24.4% 至 2.4 億美元，調整後 EBITDA 利潤率擴大 330 個基點至 28.7%。

Turning to our Professional Services segment. Fourth quarter revenue was up 2.2% to $95 million, driven by 3% growth in recurring revenue. Importantly, we continue to see strength in our sales pipeline and backlog heading into 2023. Gross margin was up 380 basis points in the fourth quarter to 25.3% as several larger deals went live. Fourth quarter adjusted EBITDA was $1 million.

轉向我們的專業服務部門。受經常性收入增長 3% 的推動，第四季度收入增長 2.2% 至 9500 萬美元。重要的是，到 2023 年，我們的銷售管道和積壓訂單繼續保持強勁勢頭。隨著幾筆較大的交易生效，第四季度毛利率上升了 380 個基點，達到 25.3%。第四季度調整後的 EBITDA 為 100 萬美元。

In addition to our focus areas driving transformation through technology and commercial, we know that connecting high-value content to our platform has the power to change the way that people interact with HR, their benefits and their employer on some of the most important life decisions. To that end, in December, we closed on the ReedGroup transaction for a net consideration of $87 million. This is an important bolt-on acquisition and lead management solution that brings critical content to build upon a light strategy to support employees and their dependents from hire through retire.

除了我們通過技術和商業推動轉型的重點領域外，我們知道將高價值內容連接到我們的平台有能力改變人們在一些最重要的人生決策中與人力資源、他們的福利和他們的雇主互動的方式.為此，我們在 12 月以 8700 萬美元的淨對價完成了對 ReedGroup 的交易。這是一個重要的附加收購和潛在客戶管理解決方案，它帶來了關鍵內容，以建立一個輕型戰略，以支持員工及其家屬從僱用到退休。

Turning to our balance sheet. Our year-end cash and cash equivalents balance was $250 million, and our total debt was $2.8 billion. Given the interest rate environment, we believe we are well positioned, given our hedging strategy with over 70% of our debt portfolio fixed through 2024 and 50% fixed for 2025. In addition, we have no near-term debt maturities of significant size until 2025. We did not make any share repurchases in the fourth quarter, but we'll continue to opportunistically evaluate stock buybacks against other attractive opportunities we have for investing in the business organically and inorganically through disciplined M&A.

轉向我們的資產負債表。我們的年終現金和現金等價物餘額為 2.5 億美元，我們的總債務為 28 億美元。考慮到利率環境，我們相信我們處於有利地位，因為我們的對沖策略超過 70% 的債務組合固定到 2024 年，50% 的固定債務固定到 2025 年。此外，我們沒有大規模的短期債務到期，直到2025.我們在第四季度沒有進行任何股票回購，但我們將繼續根據我們通過有紀律的併購對業務進行有機和無機投資的其他有吸引力的機會，機會主義地評估股票回購。

Now let me provide you some color on our cash flow performance and our outlook going forward. In 2022, we invested an incremental $38 million in technology, commercial and to support significant new logo wins, including the federal Thrift. We made progress on improving our cash flow from operations by generating operating leverage on the investments we made and improving working capital metrics.

現在讓我為您提供一些有關我們現金流量表現和未來展望的顏色。 2022 年，我們在技術、商業上增加了 3800 萬美元的投資，以支持重要的新標誌贏得，包括聯邦 Thrift。通過對我們所做的投資產生運營槓桿和改善營運資本指標，我們在改善運營現金流方面取得了進展。

For the 12 months ended in December, we generated $286 million in operating cash flow versus $115 million over the same period last year. Turning to our outlook. As Stephan highlighted, we continue to see the momentum building after a year or 2 of our transformation. We believe the mission-critical products we provide and our strong client relationships position us well to withstand economic challenges. A few stats worth keeping in mind. We have approximately 84% annual recurring revenue, with 98% average annual revenue retention, up from 97% in 2021.

在截至 12 月的 12 個月中，我們產生了 2.86 億美元的運營現金流，而去年同期為 1.15 億美元。轉向我們的前景。正如 Stephan 強調的那樣，經過一兩年的轉型後，我們繼續看到勢頭在增強。我們相信，我們提供的關鍵任務產品和強大的客戶關係使我們能夠很好地應對經濟挑戰。一些值得牢記的統計數據。我們的年度經常性收入約為 84%，平均年收入保留率為 98%，高於 2021 年的 97%。

Our average contract lengths are 3 to 5 years, and we serve a diverse client base, including approximately 70% of the Fortune 100. With that, I'd like to turn to our 2023 outlook for the year, which is in line with our stated goals of improving revenue growth, margin expansion and higher operating cash flow conversion. Our outlook is revenue of $3.47 billion to $3.51 billion or growth of 11% to 12%; adjusted EBITDA of $735 million to $750 million or growth of 12% to 14%, with EBITDA margin expansion of 15 to 50 basis points, even with the $50 million of investments, which I will discuss shortly; adjusted EPS of $0.62 to $0.67 or growth of 9% to 18%; BPaaS TCV bookings of $900 million to $1 billion; and an operating cash flow conversion rate of 45% to 55%, up from 43% in 2022.

我們的平均合同期限為 3 至 5 年，我們服務於多元化的客戶群，其中包括大約 70% 的財富 100 強企業。因此，我想談談我們 2023 年的展望，這與我們的預測一致既定目標是提高收入增長、利潤率擴張和更高的運營現金流轉換。我們的展望是收入為 34.7 億美元至 35.1 億美元，或增長 11% 至 12%；調整後的 EBITDA 為 7.35 億美元至 7.5 億美元或增長 12% 至 14%，EBITDA 利潤率擴大 15 至 50 個基點，即使有 5000 萬美元的投資，我將在稍後討論；調整後每股收益 0.62 美元至 0.67 美元或增長 9% 至 18%； BPaaS TCV 預訂額為 9 億至 10 億美元；經營現金流轉換率為 45% 至 55%，高於 2022 年的 43%。

Let me share the key factors driving our outlook. First, revenue growth is driven from new deals going live, including large One Alight BPaaS wins, the full year effect of the Federal Thrift contract and the addition of ReedGroup. Second, given the commercial successes of the first 2 years of our transformation, we're continuing our investments in Worklife and our go-to-market strategy as well as implementing the large new clients we mentioned earlier. We expect the spend tied to these initiatives to be approximately $50 million.

讓我分享推動我們展望的關鍵因素。首先，收入增長是由新交易的上線推動的，包括 One Alight BPaaS 的大贏、Federal Thrift 合同的全年影響以及 ReedGroup 的加入。其次，鑑於我們轉型前兩年的商業成功，我們將繼續投資 Worklife 和我們的上市戰略，並實施我們之前提到的大型新客戶。我們預計與這些舉措相關的支出約為 5000 萬美元。

Next, as we enter the next phase of our transformation to drive margin expansion and higher cash flow, we're announcing a 2-year restructuring program in order to accelerate our back office infrastructure into the cloud and transform our operating model with how we deliver for clients every day, leveraging technology and ultimately reducing our cost to serve. Total costs are estimated at $140 million for the program, weighted more towards year 1 with estimated savings over $100 million annually, making for a very strong payback over time. Even with this spend, we will increase our cash flow conversion each year and drive Employer Solutions gross margin expansion of 50 to 100 basis points in 2023 and 100 to 150 basis points in 2024.

接下來，隨著我們進入下一階段的轉型以推動利潤增長和更高的現金流，我們宣布了一項為期 2 年的重組計劃，以加速我們的後台基礎設施向雲端遷移，並通過我們的交付方式轉變我們的運營模式每天為客戶服務，利用技術並最終降低我們的服務成本。該計劃的總成本估計為 1.4 億美元，更多地集中在第一年，估計每年可節省超過 1 億美元，隨著時間的推移將獲得非常可觀的回報。即使有這筆支出，我們每年都會增加現金流量轉換，並推動 Employer Solutions 的毛利率在 2023 年增長 50 到 100 個基點，在 2024 年增長 100 到 150 個基點。

Finally, we are cautiously optimistic on impacts from the macro environment in 2023 and its potential impact on our commercial pipeline and project revenue. We expect the seasonality profile in 2023 will be largely consistent with 2022. As mentioned previously, we're hosting our Investor Day at the New York Stock Exchange on the afternoon of May 15, and look forward to sharing key updates and further details on the next phase of our ongoing transformation.

最後，我們對 2023 年宏觀環境的影響及其對我們的商業管道和項目收入的潛在影響持謹慎樂觀態度。我們預計 2023 年的季節性特徵將與 2022 年基本一致。如前所述，我們將於 5 月 15 日下午在紐約證券交易所舉辦投資者日活動，並期待分享關鍵更新和更多細節我們正在進行的轉型的下一階段。

In closing, we are ahead of our initial plans with great momentum and are continuing to invest in our growth as we look to 2023 and beyond. We are confident that our transformation journey and dual-pronged engagement platform and content strategy will continue to succeed and position us as the leader in our industry.

最後，我們以強勁的勢頭領先於最初的計劃，並在展望 2023 年及以後繼續投資於我們的增長。我們相信，我們的轉型之旅以及雙管齊下的參與平台和內容戰略將繼續取得成功，並將我們定位為行業領導者。

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

我們準備好的發言到此結束，現在我們將進入問答環節。接線員，請您指導參與者如何提問。

(Operator Instructions) Our first question is from Kyle Peterson with Needham & Company.

（操作員說明）我們的第一個問題來自 Needham & Company 的 Kyle Peterson。

I wanted to dive a little bit into the restructuring program that you guys announced. It seems like you have a good amount of savings and quite a bit of wood to chop, but how should we be thinking about the cadence of these cost savings? And how much is in kind of that '23 outlook -- how much falls into '24?

我想深入了解一下你們宣布的重組計劃。看起來你有大量的儲蓄和相當多的木材需要砍伐，但我們應該如何考慮這些成本節約的節奏？有多少屬於 23 年的前景——有多少屬於 24 年？

Yes, Kyle, thanks for the question. And you'll see, too, we did put out in the 8-K. You'll see some ranges on costs, which I think will be helpful for you as well. But we said about 2/3 of the cost will hit in '23. Intentionally as we accelerate the technology transformation, particularly to serve some of these big new client wins. .

是的，凱爾，謝謝你的提問。你也會看到，我們確實推出了 8-K。您會看到一些成本範圍，我認為這對您也有幫助。但我們說大約 2/3 的成本將在 23 年達到。我們有意加速技術轉型，特別是為贏得的這些新大客戶提供服務。 .

From a margin perspective, as you think about the savings around that, that's factored into our guidance for 2023. And then I think importantly, that's why I mentioned some of the stats in '24. You'll start to see improving operating cash flow and a faster acceleration on margin improvement in '24.

從利潤率的角度來看，當你考慮圍繞它節省的費用時，這已被納入我們 2023 年的指導方針。然後我認為重要的是，這就是為什麼我在 24 年提到了一些統計數據。您將開始看到 24 世紀經營現金流的改善和利潤率改善的更快加速。

Okay. That's really helpful. And I guess just a quick follow-up on the professional services outlook. It seems like that's coming in a bit stronger than expected. I know you guys kind of mentioned the better pipeline heading into '23. Have you guys seen any pressure or impact from kind of some of the macro uncertainty? Or has it kind of been guns blazing and full speed head on the services front?

好的。這真的很有幫助。我想只是對專業服務前景的快速跟進。這似乎比預期的要強一些。我知道你們提到了進入 23 年的更好的管道。你們有沒有看到一些宏觀不確定性帶來的壓力或影響？還是在服務方面已經火力全開並全速前進？

It's guns blazing.

是槍林彈雨。

Yes, a little bit of both. What I'd say, you're right, the team has done a great job in that business, really driving the strongest backlog we've had heading into '23. And I think some of that ties into some of the One Alight deals we're winning where we can play a larger role from a professional services perspective as well. What I would take how we've talked about it on some of the earlier calls as well. The one area where we have seen some slowdown is more on the international front as we see a little bit of slowdown there. But so far, we've been able to navigate through that. And again, as I look at the pipeline heading into '23, it's still very strong. .

是的，兩者都有一點。我要說的是，你是對的，團隊在這項業務中做得很好，真正推動了我們進入 23 年以來最強勁的積壓工作。我認為其中一些與我們贏得的一些 One Alight 交易有關，我們也可以從專業服務的角度發揮更大的作用。我會採取我們在之前的一些電話會議上談論它的方式。我們看到一些放緩的一個領域更多是在國際方面，因為我們看到那裡有一點放緩。但到目前為止，我們已經能夠解決這個問題。再一次，當我看到進入 23 年的管道時，它仍然非常強大。 .

Our next question is from Kevin McVeigh with Credit Suisse.

我們的下一個問題來自瑞士信貸的 Kevin McVeigh。

Not only a nice quarter, but really, really nice outlook. So congrats on that. I don't know either Stephan or Katie, can you deconstruct the revenue? Because clearly, you're seeing meaningful uptick in the revenue kind of 11% to 12%, up from kind of the original 6% to 7% when you set the '22. Maybe just some of the delta on that, Katie, maybe pricing, obviously, the bookings kind of stood out as well. Maybe just pricing versus -- and is there any kind of macro impact because it's just really, really terrific outcome, particularly given sometimes you see some client hesitancy to switch, given macro uncertainty, which it feels like it's anything about that, but maybe just try to understand that a little bit. And then if there's a way to maybe think about what percentage BPaaS should be as a percentage of revenue in '23?

不僅是一個不錯的季度，而且前景真的非常好。所以恭喜你。我不認識 Stephan 或 Katie，你能解構收入嗎？因為很明顯，當你設置 22 時，你會看到收入從最初的 6% 到 7% 有 11% 到 12% 的有意義的增長。也許只是其中的一些差異，凱蒂，也許定價，顯然，預訂也很突出。也許只是定價與 - 是否有任何宏觀影響，因為它真的非常非常好，特別是考慮到有時你會看到一些客戶猶豫不決，考慮到宏觀不確定性，感覺就像那樣，但也許只是試著理解一點。然後，是否有辦法考慮 BPaaS 在 23 年的收入中所佔的百分比？

Yes. Sure, Kevin. Let me start and then Katie you can give some more color to it. I mean, I think the one sentence that I articulated in the discussion earlier is $2.9 billion of backlog, which is the same that we had as revenue in total in '21. So it's that flight to quality of everything I've been talking about the last few years, building out more ARR, subscription-based business, longer-term contracts, higher-value dollars. .

是的。當然，凱文。讓我開始，然后凱蒂你可以給它更多的顏色。我的意思是，我認為我之前在討論中表達的一句話是 29 億美元的積壓訂單，這與我們在 21 年的總收入相同。所以這是我過去幾年一直在談論的一切質量的飛躍，建立更多的 ARR，基於訂閱的業務，長期合同，更高價值的美元。 .

And as you know, the gift that keeps giving is if you get these kinds of deals that are the ARR type deals, you can really sell and perform or rely on project-based type onetime business just becomes less and less as part of our recipe moving forward. Now in 2030, we still have a big reliance on a lot of that project work. And as we just -- as you just heard Katie say a few minutes ago, our backlog is the strongest in the onetime project-based business. We see resurgence in that. But the focus really has been to your question, in the last couple of years, is building out that strong recurring revenue stream. And BPaaS is a big part of that. You saw 40-plus percent growth on that last year. 25% growth on that baseline this year, 13% to 20-plus percent in '23 when you think about it. So that's a pretty big needle mover.

如您所知，不斷給予的禮物是，如果您獲得這些類型的交易，即 ARR 類型的交易，您就可以真正銷售和執行或依賴基於項目的一次性業務，作為我們食譜的一部分，它會變得越來越少向前進。現在到了 2030 年，我們仍然非常依賴很多項目工作。正如我們剛剛 - 正如您幾分鐘前剛剛聽到凱蒂所說的那樣，我們的積壓是一次性項目業務中最強大的。我們看到了復甦。但在過去的幾年裡，真正關注你的問題的是建立強大的經常性收入流。 BPaaS 是其中的重要組成部分。與去年相比，您看到了 40% 以上的增長。今年在該基線基礎上增長了 25%，想想看，23 年增長了 13% 到 20% 以上。所以這是一個相當大的針推動器。

AS a percent of revenue. Yes.

作為收入的百分比。是的。

As a percent of revenue -- sorry, yes as a percent of revenue. So those are the big contributors to the consistent growth that we're seeing right now. What would you add, Katie?

作為收入的百分比——抱歉，是的，作為收入的百分比。因此，這些是我們現在看到的持續增長的重要貢獻者。你會添加什麼，凱蒂？

No. I mean, I think that's well said. It's the right question, Kevin. And I think we've -- I think people have been waiting to see, can you really accelerate growth in this business. And I think we're doing it in the right way, as Stephan said, through recurring subscription-based revenue that is stable, sticky, brings these analyte deals together where we can help transform our clients. And honestly, that helps our financial profile as well. So moving to 20% of our revenue in BPaaS in '23, I think, is a big milestone for us.

不，我的意思是，我認為這說得好。這是正確的問題，凱文。而且我認為我們 - 我認為人們一直在等著看，你真的能加速這項業務的增長。我認為我們正在以正確的方式做到這一點，正如斯蒂芬所說，通過穩定、粘性的經常性訂閱收入，將這些分析交易聚集在一起，我們可以幫助改變我們的客戶。老實說，這也有助於我們的財務狀況。因此，我認為，在 23 年將 BPaaS 的收入提高到 20%，對我們來說是一個重要的里程碑。

That's big. And obviously, off a higher base as well. Stephan, I think you mentioned like potential upwards of $1 billion of revenue off the existing installed base. Any sense and maybe hard but how does that come in? Is that something that kind of -- they see the success of the app? And then is that kind of additional modules? Is that upsell of kind of the type of packages you're taking just because it's -- obviously a really big number even relative to kind of the current run rate of the revenue.

那很大。顯然，也有更高的基礎。斯蒂芬，我想你提到過現有安裝基礎可能帶來超過 10 億美元的收入。任何意義，也許很難，但這是怎麼來的？那是那種——他們看到了應用程序的成功嗎？然後是那種額外的模塊？你正在接受的那種包裹類型的追加銷售只是因為它 - 顯然是一個非常大的數字，即使相對於當前的收入運行率也是如此。

Right. I mean if you think about the platform approach about what Worklife is, it is that front door. If you think of the last 2 big wins I announced GE and this large Fortune 10 company that will allow us to say their name publicly once they announced it to their own employees shortly. Those are just transformational deals that take a lot of content plus third-party content and relegated into our work life platform. So the economics are just a much larger footprint.

正確的。我的意思是，如果您考慮有關 Worklife 的平台方法，那就是前門。如果你想到我宣布的最近 2 次重大勝利，通用電氣和這家財富 10 大公司將允許我們在他們很快向自己的員工宣布他們的名字後公開說出他們的名字。這些只是轉型交易，需要大量內容加上第三方內容，並歸入我們的工作生活平台。所以經濟只是一個更大的足跡。

So when you think about GE and the size of content that we're touching from the HR side of the house, the benefit side of the house, I mean, it is a broad sweeping content layer, and we were able to convince them to give us all that content because of the Worklife approach and the platform approach.

因此，當您考慮 GE 以及我們從人力資源方面接觸的內容規模時，房子的利益方面，我的意思是，這是一個廣泛的內容層，我們能夠說服他們由於 Worklife 方法和平台方法，為我們提供了所有這些內容。

And as I said this for the last year, and you can see it in '23 even more heightened, and I did about, what, 20, 25 client calls in kind of the latter part into November, December of last year. Every single client on the HR side is looking to consolidate and simplify and take cost out. They are so fatigued with 30, 40, 50 and upwards, I said 80 to a 90 point solutions, and they want one front door, one platform to integrate the data. So they're naturally coming to us to say, you be the aggregator, you be the integrator, you have the strong service delivery capability. We've won some really good business with our partner, Workday to help drive some consolidation of some of the old PeopleSoft-type systems we've seen.

正如我去年所說的那樣，你可以在 23 年看到它更加突出，我做了大約 20、25 個客戶在去年 11 月、12 月的後期打電話。人力資源方面的每個客戶都希望整合和簡化並降低成本。他們對 30、40、50 及以上的解決方案感到厭倦，我說 80 到 90 點解決方案，他們想要一個前門，一個平台來集成數據。所以他們很自然地來找我們說，你是聚合者，你是集成者，你有強大的服務交付能力。我們與我們的合作夥伴 Workday 贏得了一些非常好的業務，以幫助推動我們看到的一些舊的 PeopleSoft 類型系統的整合。

So all of that is within our purview and our capability to connect the dots across a very vast siloed not only on the application layer, but the data side into 1 common platform approach. And that's why I want to give -- if you look at the deck we sent out, the family planning scenario, the sharing -- the starting a family one. If you just look at that slide in our deck, I wanted to highlight that. When you look at the disparate systems that are needed today across multiple vendors and you're able to come to one place with a Alight Worklife, that's a powerful story that is really resonating in more of a recessionary type environment with our clients right now.

因此，所有這些都在我們的權限範圍內，並且我們有能力跨越一個非常巨大的孤島，不僅在應用程序層，而且在數據方面將這些點連接到一個通用平台方法中。這就是為什麼我想提供——如果你看看我們發送的套牌，計劃生育方案，分享——開始一個家庭。如果你只看我們甲板上的那張幻燈片，我想強調這一點。當您查看當今跨多個供應商所需的不同系統並且您能夠通過 Alight Worklife 來到一個地方時，這是一個強有力的故事，現在在更多的衰退類型環境中確實與我們的客戶產生共鳴。

Congratulations, again.

再次祝賀你。

Our next question is from Scott Schoenhaus with KeyBanc.

我們的下一個問題來自 KeyBanc 的 Scott Schoenhaus。

Congrats on the strong quarter and ongoing execution. So I wanted to dig in on the '23 revenue guidance. Your guidance range calls for 11% to 12% growth. And just wanted to see if you could provide color on the breakout between Employer Solutions growth and Professional Services since you did note the project revenue rebounding with higher starting backlog on the professional services side.

祝賀強勁的季度和持續的執行。所以我想深入了解 23 年的收入指南。您的指導範圍要求增長 11% 到 12%。只是想看看您是否可以提供有關雇主解決方案增長和專業服務之間突破的顏色，因為您確實注意到項目收入反彈，而專業服務方面的起始積壓更高。

Yes. Thanks for the question, Scott. So you're right, we didn't give formal guidance kind of broken down at those levels. But what I'd say is both Employer Solutions and Professional Services are going to see accelerating growth into '23. So we are expecting a nice rebound in professional services, both top and bottom line as we see that backlog now really start to materialize into revenue.

是的。謝謝你的問題，斯科特。所以你是對的，我們沒有給出在這些級別上分解的正式指導。但我要說的是，雇主解決方案和專業服務都將在 23 世紀加速增長。因此，我們預計專業服務將出現良好的反彈，包括收入和利潤，因為我們看到積壓現在真正開始轉化為收入。

Okay. That's helpful. And then on the margin side, obviously, you've explained some of the investments, whether it be the back office or the investments in the Worklife on the ongoing ramp-up of new contracts. But in this environment, are you also able to take up some pricing on contract renewals as you demonstrate ROI. I know that's been always a pushback. And I just want to kind of talk about the current environment and how you're thinking about renewals with contracts.

好的。這很有幫助。然後在保證金方面，顯然，你已經解釋了一些投資，無論是後台辦公室還是在不斷增加的新合同中對工作生活的投資。但在這種環境下，您是否也能夠在展示投資回報率時對合同續簽進行定價。我知道這一直是一種阻力。我只想談談當前的環境，以及你是如何考慮續簽合同的。

Yes. Listen, it's a really important question, and we're going to spend more time on it at our upcoming Analyst Day. We added a slide Stephan mentioned the deck we posted to our earnings website today.

是的。聽著，這是一個非常重要的問題，我們將在即將到來的分析師日花更多時間來解決這個問題。我們添加了一張幻燈片，Stephan 提到了我們今天發佈到收益網站上的套牌。

There's a slide in there, Slide 11 that starts to show -- we need to think about price differently, right? Price in the context of value for our customers is how we will obviously be able to drive that. So yes, there's incremental solutions and then there's incremental support in terms of how we help our clients and drive those outcomes. So I think that page is kind of a good explanation of how do you actually think about the underlying value at all levels of the ecosystem, starting with the platform all the way down to the services we can provide. So that when you do get to a renewal, it's less about just price on existing, how do you actually solve a bigger need for that client where you're adding a new solution and you're able to drive more value for us and for them.

那裡有一張幻燈片，第 11 張幻燈片開始顯示——我們需要以不同的方式考慮價格，對吧？在為我們的客戶創造價值的背景下的價格顯然是我們能夠推動這一點的方式。所以是的，有增量解決方案，然後在我們如何幫助客戶和推動這些結果方面提供增量支持。所以我認為該頁面很好地解釋了您如何真正考慮生態系統各個層面的潛在價值，從平台開始一直到我們可以提供的服務。因此，當您確實進行續訂時，不僅僅是現有價格的問題，您如何真正解決該客戶的更大需求，您正在添加一個新的解決方案，並且您能夠為我們和他們。

I mean, we're aggressively rising above the transaction pricing model and getting more, as Katie just said, into the outcomes-based pricing. And you need a platform to do that. You need analytics, you need to help drive better decisions and better outcomes. And that's, again, back to that starting a family or the divorce example I gave. Those are 2 really basic and simple that -- everybody can understand how complicated those worlds are. And when you see how we used to do it to now how we do it through Worklife, it is a very different scenario that's much more complete, and that's worth a different economic profile in terms of helping clients take cost out and getting a different economic value for platform versus just transaction pricing.

我的意思是，正如凱蒂剛才所說，我們正在積極超越交易定價模型，並越來越多地進入基於結果的定價。你需要一個平台來做到這一點。您需要分析，需要幫助推動更好的決策和更好的結果。這又回到了我舉的組建家庭或離婚的例子。這些都是非常基本和簡單的——每個人都能理解這些世界有多麼複雜。當你看到我們過去是如何做到這一點到現在我們如何通過 Worklife 做到這一點時，這是一個非常不同的場景，它更加完整，並且在幫助客戶降低成本和獲得不同的經濟效益方面值得不同的經濟概況平台價值與交易定價。

Congrats, again.

恭喜，再次。

Our next question is from Tien-Tsin Huang with JPMorgan.

我們的下一個問題來自摩根大通的 Tien-Tsin Huang。

I wanted to ask on the revenue outlook as well. I heard you on the -- Katie, on the accelerating revenue growth for both segments. But is there timing that we need to pay attention to in terms of clients converting to revenue? I don't know if that's front half, back half. And did you give the acquired revenue as well? Just trying to think about how much of this new deal dependent versus organic.

我也想問一下收入前景。我聽到你在 - 凱蒂，關於這兩個部門的收入加速增長。但是，就客戶轉化為收入而言，我們是否需要注意時機？我不知道那是前半部分還是後半部分。你也給了獲得的收入嗎？只是想想想這項新交易有多少是依賴於有機的。

Yes. So maybe a couple of things. In terms of the phasing of revenue, similar to last year, it will ramp, but not to the extent we saw last year, right? Because remember, we didn't have, for instance, some of our larger contracts went live in the back half of last year. Now you have a more kind of even profile.

是的。所以也許有幾件事。就收入的階段性而言，與去年類似，它會增加，但不會達到我們去年看到的程度，對吧？因為請記住，例如，我們沒有一些較大的合同在去年下半年生效。現在你有了更均勻的輪廓。

So you won't see a ton of volatility. You do see like Professional Services, that will, again, still have that ramp into the fourth quarter just as you see more of those deals going live. In terms of the acquisition, what I'd say is, it didn't have a material impact on our '22 results. I mean we would have exceeded our expectations even without the acquisition. So we're accelerating top line margin and cash flow even without the acquisition, which I think is an important component to the story here.

所以你不會看到大量的波動。你確實看到像專業服務一樣，它將再次進入第四季度，就像你看到更多的交易上線一樣。就收購而言，我要說的是，它對我們 22 年的業績沒有產生實質性影響。我的意思是，即使沒有收購，我們也會超出我們的預期。因此，即使沒有收購，我們也在加速頂線利潤率和現金流，我認為這是這裡故事的重要組成部分。

Got you. And then just my follow-up is to your transformation program. Any risk here in terms of client delivery as you go through the transformation shift to the cloud, standardization, that kind of thing. It makes sense in terms of how you described it, but just the risk profile of initiating the change. And it sounds like there's going to be some cash savings as well. So did you quantify the cash go capital savings from the deal from program.

明白了然後我的後續行動就是你的轉型計劃。當您經歷向雲、標準化等的轉型過程中，在客戶交付方面存在任何風險。就您的描述方式而言它是有意義的，但只是啟動更改的風險狀況。聽起來還會節省一些現金。那麼，您是否量化了計劃交易中的現金轉資本節省。

And Tien-Tsin, maybe I'll address the risk piece. If you remember last year, I said there's always defining moments throughout the year, and one of them was getting Worklife adopted by all our clients. So industrializing getting away from custom standardizing all our clients, and that was accomplished in May. So that has really set the floor of the foundation for lower risk because we're no longer dependent upon the wins of the client wanting to implement individual customized solutions. So that was number one.

Tien-Tsin，也許我會解決風險問題。如果你還記得去年，我說過一年中總會有決定性的時刻，其中之一就是我們所有的客戶都採用了 Worklife。所以工業化擺脫了定制標準化我們所有的客戶，這是在五月份完成的。因此，這確實為降低風險奠定了基礎，因為我們不再依賴於想要實施個性化定制解決方案的客戶的勝利。所以這是第一。

And number two, as I said to you when we were together last time, which is how many companies would you put on the list that can implement a massive program for Thrift, the federal government at that size and scale and the names typically -- originally, you wouldn't have put us in there, and we did that, right, successfully on time, and it's a tremendously successful program today.

第二，正如我上次在一起時對你說的那樣，你會把多少家公司列入名單，這些公司可以為 Thrift 實施大規模計劃，聯邦政府在這種規模和規模上通常是 -最初，你不會把我們放在那裡，我們做到了，對，按時成功，今天這是一個非常成功的項目。

So given the backdrop of industrialized standardized platform as a starting point for implementing these big end-to-end solutions and then just our scale of delivery capability, program management, staffing -- all the stuff is still existing within the Alight. I feel really good because these 2 new wins are going to contribute for us multiple points of growth for us in the future years. They're not big contributors at all in '23 to revenue because we have to do like with Thrift, big investments this year. So -- but we feel really good about the programs on these new mega projects that we have.

因此，鑑於工業化標準化平台的背景作為實施這些大型端到端解決方案的起點，然後是我們的交付能力規模、項目管理、人員配置——所有這些東西仍然存在於 Alight 中。我感覺非常好，因為這 2 場新勝利將為我們在未來幾年帶來多個增長點。他們在 23 年對收入的貢獻根本不是很大，因為我們必須像今年的 Thrift 一樣進行大筆投資。所以 - 但我們對我們擁有的這些新大型項目的計劃感到非常滿意。

Yes. I think that's well said. I think we've navigated the risk well. In terms of cash savings, Tien-Tsin, we did say it will result in $100 million of savings. I mean that is cash. I think also another component of that is CapEx, right, being able to accelerate this year into next year, that will also then result in kind of lower CapEx as a percentage of revenue after that as well.

是的。我認為這說得好。我認為我們已經很好地應對了風險。在現金儲蓄方面，Tien-Tsin，我們確實說過它會帶來 1 億美元的儲蓄。我的意思是那是現金。我認為其中的另一個組成部分是資本支出，對，能夠在今年加速到明年，這也將導致資本支出佔收入的百分比下降。

Got it. If you don't mind me asking a third one. just on the $50 million in investments versus the $38 million that we saw in '22, how much of that is incremental Worklife investments versus the new deal implementation? And I'm assuming once you get through this transformation program, we should see less incremental investments as it relates to new deal limitation? Is that sort of the byproduct of the program. Just to clarify.

知道了。如果你不介意我問第三個。就 5000 萬美元的投資與我們在 22 年看到的 3800 萬美元相比，其中有多少是增量 Worklife 投資與新交易實施？我假設一旦你完成了這個轉型計劃，我們應該會看到較少的增量投資，因為它與新交易限制有關？是那種程序的副產品。只是為了澄清。

Yes, I think that's a good way to look at it. I almost don't separate the 2 between Worklife and those specific clients. Because, in essence, we're accelerating a lot of the technology to support those clients and others, right? It's almost kind of innovating with them. So -- and remember, on some of those larger clients, we do defer some of those costs. So some of that is deferred, but then you have the upfront technology spend that we're obviously building out the -- some of the platform and analytics capability to serve them. I think of that more broadly across our client base. We just need to accelerate it, obviously, to bring these key deals on.

是的，我認為這是看待它的好方法。我幾乎沒有將 Worklife 和那些特定客戶之間的 2 分開。因為，從本質上講，我們正在加速大量技術來支持這些客戶和其他客戶，對吧？這幾乎是一種與他們的創新。所以 - 請記住，對於其中一些較大的客戶，我們確實推遲了其中一些成本。所以其中一些被推遲了，但是你有我們顯然正在構建的前期技術支出——一些平台和分析能力來為他們服務。我在我們的客戶群中更廣泛地考慮這一點。顯然，我們只需要加快速度，以促成這些關鍵交易。

And I think that, that last sentence, Katie just said, Tien-Tsin, which is if it wasn't for these 2 deals, we could have streamlined and taken more time over the next 2 years. And that's why we want to call it the $50 million.

而且我認為，最後一句話，凱蒂剛剛說，Tien-Tsin，如果不是因為這兩筆交易，我們本可以在接下來的兩年內精簡併花費更多時間。這就是為什麼我們要稱它為 5000 萬美元。

These 2 massive deals really help accelerate our platform playbook, and we need the functionality and the features to go live with those 2 key clients. And so it's all a good thing, but it accelerates it into a much shorter time frame than we had originally planned.

這兩項大規模交易確實有助於加速我們的平台劇本，我們需要功能和特性來與這兩個主要客戶一起使用。所以這一切都是好事，但它加速了它進入比我們原先計劃的更短的時間框架。

I'm sorry, I'm just going to say one last piece on that, Tien-Tsin, which I think is important. That's why we've been really thoughtful though, and we're still doing this while being able to improve margin and operating cash flow. I mean I think that's the context to make sure we're doing this in a disciplined way.

對不起，我只想說最後一點，Tien-Tsin，我認為這很重要。這就是為什麼我們一直非常周到，並且我們仍在這樣做的同時能夠提高利潤率和運營現金流。我的意思是我認為這是確保我們以一種有紀律的方式做這件事的背景。

As well as, I would think, benefit the installed base with the improvements as well. I think I understand. .

此外，我認為，這些改進也會使安裝基礎受益。我想我明白。 .

Right.

正確的。

That's right.

這是正確的。

Our next question is from Heather Balsky with Bank of America.

我們的下一個問題來自美國銀行的 Heather Balsky。

This is Emily Marzo on for Heather Balsky. Congrats first on the quarter. Second, you've previously laid out a long-term 30% EBITDA target. With this incremental spend -- yes, this incremental spend and these new BPaaS client wins, how should we be thinking about that? And is that still the long-term target?

這是 Heather Balsky 的 Emily Marzo。首先祝賀本季度。其次，您之前製定了 30% 的長期 EBITDA 目標。有了這種增量支出——是的，這種增量支出和這些新的 BPaaS 客戶獲勝，我們應該如何考慮呢？這仍然是長期目標嗎？

Absolutely. It's absolutely the long-term target. I think that's why we've tried to be more intentional about showing the path forward and why we're making some of these investments, why we're doing the restructuring program. So -- and when I mentioned to you, there's a good slide in the deck at Slide 19 that starts to show, right? What do over the next couple of years, how can you measure us, right, against that margin improvement. And we're going to continue to talk about that.

絕對地。這絕對是長期目標。我認為這就是為什麼我們試圖更有意識地展示前進的道路，為什麼我們要進行其中一些投資，為什麼我們要進行重組計劃。所以 - 當我向您提到時，幻燈片 19 的甲板上有一張很好的幻燈片開始展示，對吧？在接下來的幾年裡做什麼，你如何衡量我們，對，對，利潤率的提高。我們將繼續討論這個問題。

I know there've been a number of questions on that front. But the whole intent of the investments we're making is obviously to drive better outcome financially, but more importantly, to better serve our clients, right, to have a more road map, we can move faster on from a technology standpoint to serve them better, to simplify the experience and make it a better process for their employees. So that's absolutely still the intent.

我知道在這方面有很多問題。但我們正在進行的投資的全部目的顯然是為了在財務上取得更好的結果，但更重要的是，為了更好地服務我們的客戶，對，為了有更多的路線圖，我們可以從技術的角度更快地為他們服務更好的是，簡化體驗並使其成為員工更好的流程。所以這絕對是我們的意圖。

Okay. Great. And just as a follow-up, how should we be thinking about your capital allocation strategy over the next few years. You have the repurchase plan, you have a successful acquisition and this investment program. So how should we be thinking about that?

好的。偉大的。作為後續行動，我們應該如何考慮未來幾年的資本配置策略。你有回購計劃，你有一個成功的收購和這個投資計劃。那麼我們應該如何考慮呢？

Yes. What I would say is our capital allocation priorities are front and center. I mean, we spent a lot of time on them, and we look at them every day, right? It has to drive a return on capital that makes sense for us and our clients. And our priority has been and continues to be investment into the business organically and inorganically.

是的。我要說的是，我們的資本配置優先事項是首要任務。我的意思是，我們在他們身上花了很多時間，我們每天都在看他們，對吧？它必須推動對我們和我們的客戶有意義的資本回報。我們的首要任務一直是並將繼續是對業務進行有機和無機投資。

And what we've said is if we don't see the right return on those opportunities, and we can be opportunistic around buyback, that will be where we go next. So in the fourth quarter, we didn't end up doing buyback, as I mentioned, because we found kind of the right inorganic opportunity, but we will always be evaluating those kind of against each other from a return on capital perspective.

我們所說的是，如果我們看不到這些機會的正確回報，並且我們可以在回購方面投機取巧，那將是我們下一步的方向。所以在第四季度，正如我提到的那樣，我們最終沒有進行回購，因為我們找到了某種合適的無機機會，但我們將始終從資本回報的角度來評估這些機會。

There are no further questions at this time. I'd like to hand the floor back over to Stephan Scholl for closing comments.

目前沒有其他問題。我想將發言權交還給 Stephan Scholl，讓他發表最後的評論。

Great. Thanks, everybody, for joining us today. Really appreciate your time. Obviously, hopefully, you can see we're executing on our strategy, expanding relationships with new and current clients and delivering on our commitments. And we look forward to seeing many of you in May at our Investor Day in New York City. Thank you, and all the best. .

偉大的。謝謝大家今天加入我們。真的很感謝你的時間。顯然，希望您能看到我們正在執行我們的戰略，擴大與新客戶和現有客戶的關係並兌現我們的承諾。我們期待在 5 月份的紐約市投資者日見到你們中的許多人。謝謝你，祝你一切順利。 .

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。