Company: ALIT
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001809104-25-000062
Chunk: 72

Company: Alight, Inc. / Delaware
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1A
Chunk 72
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Income tax benefit was $8 million for the year ended December 31, 2024, as compared to an income tax benefit of $20 million for the prior year period. The effective tax rate of 5% for the year ended December 31, 2024 was lower than the 21% U.S. statutory corporate income tax rate primarily due to the Company’s non-deductible expenses, tax credits, and changes in valuation allowance. The effective tax rate of 6% for the year ended December 31, 2023 was lower than the 21% U.S. statutory corporate income tax rate primarily due to the Company’s non-deductible expenses, tax credits, and changes in valuation allowance. See Note 7 “Income Taxes” within the Consolidated Financial Statements within Item 8 of this Annual Report for additional information.

Results of Continuing Operations for the Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022

Revenue 

Revenues were $2,386 million for the year ended December 31, 2023 as compared to $2,207 million for the prior year period. The increase of $179 million reflects growth of 8.1%. We also measure revenue growth as it relates to our cloud-based products and solutions that are central to our Alight Worklife® platform and our next generation product suite, BPaaS Solutions. For the year ended December 31, 2023, we recorded BPaaS revenue of $434 million, which represented growth of 44.7% compared to the prior year period. 

Recurring revenues for the year ended December 31, 2023 increased by $164 million, or 8.2%, from $2,003 million in the prior year period to $2,167 million and is a result of higher revenues related to Net Commercial Activity and our 2022 acquisition, partially offset by lower volumes.

Cost of Services, exclusive of Depreciation and Amortization 

Cost of services, exclusive of depreciation and amortization, increased $32 million, or 2.2%, for the year ended December 31, 2023 as compared to the prior year period. The increase was primarily driven by growth in revenues, including investments in key resources and as a result of our 2022 acquisition, partially offset by productivity initiatives. 

Selling, General and Administrative

Selling, general and administrative expenses increased $111 million, or 23.2%, for the year ended