Company: ALIT
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001809104-25-000062
Chunk: 78

Company: Alight, Inc. / Delaware
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1A
Chunk 78
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 profit margin percent as key measures in making financial, operating and planning decisions and in evaluating our performance. We believe that presenting adjusted gross profit and adjusted gross profit margin percent is useful to investors as it eliminates the impact of certain non-cash expenses and allows a direct comparison between periods. 

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Employer Solutions Results

Year Ended December 31,($ in millions)202420232022Employer Solutions RevenueRecurring$2,135 $2,141 $1,960 Project197 219 204 Total Employer Solutions Revenue$2,332 $2,360 $2,164 Employer Solutions Gross Profit$794 $812 $687 Employer Solutions Gross Profit Margin34.0 %34.4 %31.7 %Employer Solutions Adjusted Gross Profit$904 $912 $768 Employer Solutions Adjusted Gross Profit Margin38.8 %38.6 %35.5 %

Employer Solutions Results of Operations for the Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023

Employer Solutions Revenue

Employer Solutions revenue was $2,332 million for the year ended December 31, 2024 as compared to $2,360 million for the prior year period. The overall decrease of $28 million was primarily driven by decreases in recurring revenues from lower volumes, Net Commercial Activity and project revenue. We experienced annual revenue retention rates of 95% and 97% in 2024 and 2023, respectively.

Employer Solutions Gross Profit and Adjusted Gross Profit

Employer Solutions gross profit was $794 million for the year ended December 31, 2024 compared to $812 million for the prior year period. The decrease of $18 million was driven by a decrease in revenue and increases in costs associated with funding growth of current and future revenues, partially offset by lower expenses related to productivity initiatives. Employer Solutions adjusted gross profit for the year ended December 31, 2024 decreased $8 million to $904 million from $912 million in the prior year period, primarily driven by a decrease in revenue and increases in costs associated with funding growth of current and future revenues, partially offset by lower expenses related to productivity initiatives.

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Gross Profit to Adjusted Gross Profit Reconciliation

Year Ended December 31, 2024(in millions)Employer SolutionsOtherTotalGross Profit$794 $— $794 Add: stock-based compensation14