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Unisys (UIS) Q3 Earnings call transcript Oct 30, 2024

Daily EarningsThursday, Oct 31, 2024 3:59 pm ET

1min read

UIS --

Unisys Corporation, a leading technology solutions provider, recently held its third quarter financial results and conference call, highlighting a solid performance and a promising outlook for the future. The company's management team, led by CEO Peter Altabef, CFO Deb McCann, and President and COO Michael Thomson, discussed the company's financial results, strategic initiatives, and future growth prospects.

Strong Financial Performance

Unisys reported a third quarter revenue growth of 8.2% in constant currency, keeping the company on track to achieve its full-year revenue guidance range. The company's robust performance is attributed to its diverse revenue streams, with approximately 44% of its revenue generated in the US and the remaining 56% from international markets. This geographical diversity has allowed Unisys to maintain a balanced growth trajectory, as different regions experience varying growth rates.

New Business Signings and Pipeline

One of the most encouraging signs for Unisys is the significant increase in new business signings, with new logo TCV more than doubling year-over-year for the third consecutive quarter. The company's pipeline grew 9% sequentially, and new business signings were particularly strong in the CA&I segment, including in-application development and cloud service engagements with public sector clients. This new business is expected to generate incremental revenue of $40 million in the L&S Solutions segment and increase the company's long-term outlook.

Operational Efficiency and Innovation

Unisys has been focusing on operational efficiency and innovation to drive growth. The company is investing in technology, process improvement, and talent initiatives to optimize its workforce and expand its capabilities in areas relevant to its clients. This strategic approach has resulted in a reduction in trailing 12-month voluntary attrition to 11.8%, a testament to the company's commitment to employee development and retention.

Financial Outlook

Unisys raised its full-year non-GAAP operating margin guidance and improved its outlook for 2024 free cash flow. The company expects to further enhance its pre-pension free cash flow over the coming quarters as new business signings generate increasing revenue and legal and environmental payments decline. These positive developments, coupled with the company's focus on operational efficiency and innovation, position Unisys for a strong future.

Conclusion

Unisys Corporation's third quarter financial results and conference call underscore the company's solid financial performance and strategic initiatives aimed at driving growth. The company's focus on operational efficiency, innovation, and expanding its client base across diverse industries and regions sets it up for a promising future. With a strong financial outlook and a commitment to delivering value to its clients, Unisys is well-positioned to capitalize on the opportunities in the technology solutions market.

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