Alight, Inc. (NYSE:ALIT) Q2 2023 Earnings Call Transcript

Katie Rooney: Yes. Thanks, Tien-Tsin. We’re really not. When it comes to just the underlying performance, and again the team is doing an incredible job getting clients live on time, working through that on the kind of employment trends haven’t had an impact on us. I think the only area we continue to monitor as you know Q3 and Q4 are higher project quarters for us that we do continue to monitor. So far, you saw it in the second quarter, we’ve done well. But that’s the one area we have a little bit less visibility to at this point. But in terms of kind of the recurring book of business and where we sit today, we feel good.

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

Pete Heckmann: Hi, good afternoon. I had a few more questions. Thinking about those two large clients, GE was one of them. They were signed in the fourth quarter of 2022. Would we expect those to go live in 2024 first half, second half, midway through? Just thinking about kind of the — both of those seem like they’re big enough to influence the growth rates a little bit. So just trying to feel like you just said that you’re hitting milestones, the contracted backlog is tracking your — contracted pipeline is tracking towards going live. But any additional thoughts in terms of going into 2024 about some of those big go lives?

Katie Rooney: Yes. Thanks. It — what I’d say is, they remain on track again; the team has just done a fantastic job with those contracts. So it — how it works is, we’re not fully live at the start of 2024. We’re actually not fully through kind of like GE; we’re not at a full run rate until 2025. So you will see a benefit at the start of 2024 that continues to grow through the year. And then we’re at a full run rate actually as we enter 2025.

Pete Heckmann: Got it. Okay. And then any thoughts about ReedGroup and its relative fit and its integration, any surprises there?

Katie Rooney: Yes. Pete, honestly what I’d say is, it’s — when you think about the landscape of what our customers are asking for, it just fits really well within the OneAlight view in terms of their interaction with us. So we’ve seen really good traction in the pipeline there. And the team has performed well. So no surprises. I think it’s potentially even a bigger opportunity than we’d anticipated. But we’re still — I would say we’re still early in the pipeline there.

Stephan Scholl: Yes. I’d say it’s in the small but mighty category. When you think of what that actually does in terms of leaves capability, we’ve seen some large deals get swayed by a very small component with leaves because it is such a key element to helping employees get them back to work earlier, which is a huge ROI around that. So as we unpack, especially in the Fortune 500, the cost base of somebody leaving work on a leaves program and then getting them back, the dollars are just so significant. And so when we attach it to our platform and integrate it into navigation and into our benefits administration and the rest of Worklife really kind of brings it to a much more cohesive conversation and has really helped us kind of tip the scales in our favor on some really nice deals for us.

Operator: Next question Peter Christiansen with Citi. Please go ahead.

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

Stephan Scholl: Thanks Peter.

Katie Rooney: Thanks Peter.