Company: UIS
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001628280-25-021581
Chunk: 6

Company: UNISYS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 2
Chunk 6
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 Changes to contracts and scope are treated as TCV only to the extent of the incremental new value. New Business TCV represents TCV attributable to expansion and new scope for existing clients and new logo contracts. L&S TCV is driven by software license renewals, and as such, changes in timing or terms of renewals can lead to fluctuations from period to period. Measuring TCV involves the use of estimates and judgments and the extent and timing of conversion of TCV to revenue may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of contract signing, and contract modifications, including terminations, over the lifetime of a contract.

Backlog represents the estimated amount of future revenue to be recognized under contracted work, which has not yet been delivered or performed. The timing of conversion of backlog to revenue may be impacted by, among other factors, the timing of execution, the extension or early termination of existing contracts with or without penalty, adjustments to estimates in pricing or volumes for previously included contracts, seasonality and foreign currency exchange rates. 

The following table summarizes the company’s TCV metrics.

Three Months EndedMarch 31,(In millions, except numbers presented as percentages)20252024% ChangeEx-L&S New Business$337 $184 83 %Ex-L&S Renewals76 81 (6)%L&S Renewals21 105 (80)%Total TCV$434 $370 17 %

Total TCV was $434 million for the three months ended March 31, 2025 and $370 million for the three months ended March 31, 2024, an increase of 17% primarily driven by new logo signings.

Backlog was $2.89 billion as of March 31, 2025 compared to $2.78 billion as of March 31, 2024, an increase of 4%. The increase in backlog was primarily driven by new logo contracts within DWS. 

The company believes that actual revenue reflects the most relevant measure necessary to understand the company’s results of operations, but TCV can be a useful leading indicator of the company’s ability to generate future revenue over time and backlog can be a useful metric and indicator of the company’s estimate of contracted revenue to be realized in the future, in each case subject to certain inherent limitations as explained above. TCV and backlog should not be relied upon as substitutes for