We expect fourth quarter adjusted revenue to be in the range of $935 million to $945 million, resulting in a full year outlook of between $3.7 billion and $3.72 billion. As I said last quarter, there’s a mixed shift of new business bookings in our backlog now, with a higher relative share of government and transportation deals that will take slightly longer to come out of backlog as compared to commercial deals, which ramp to revenue more quickly. For adjusted EBITDA margin, we expect the full year outcome to be approximately 10%. We are revising down our expected full year outcome for adjusted free cash flow as a percentage of adjusted EBITDA. The extended completion timelines I referenced in the segment results are now likely to result in some significant milestone payments moving into the early part of 2024.
I’ll give more detail on that when we guide expected 2024 cash flow outcomes. But we’re in a period now where we have several large implementations across government and transportation and a higher relative share of our cash flows is now tied into billing milestones, which is creating more unpredictability than usual. By way of an example of this in our transit business excluding the recent Australia deal. We’re completing several large implementations that have been ongoing for some time and we’ve got approximately $70 million of revenue left to recognize on these deals and $150 million of billing milestones to both invoice and collect on. So this $80 million gap is larger than usual and is a function of where we are in the latter stages of these implementations and that’s creating these milestone gaps and there’s some of this going on in larger government implementations as well.
As I said before, there’s more ongoing implementations than for some time including the large transit project in Australia. And so that’s going to create some lumpiness that will need to layout carefully for you when we think about guiding 2024. So cliff with that I’ll conclude my financial review for Q3, 2023 and I’ll hand it back to you for any closing comments.
Cliff Skelton: Thanks, Steve. As mentioned, we’re pleased with the top line revenue and EBITDA in Q3 with more consistent performance expected ahead of us. Meanwhile, we appreciate your attention amidst very trying times in the world, is times like this where all you can do as a company is stay the course, execute against a stated strategy, focus and keep optimistic. In fact, we do feel optimistic about the work we’re doing in 2023 and how it impacts the remainder of the year into 2024. And our ability to hit the 2025 financial exit rate Steve articulated in our March Investor briefing. The journey is in full swing. Thanks again for being here today. And that concludes our Q3, 2023 Conduent Earnings Call.
Operator: Thank you. This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
Operator: [Operator Instructions]
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