Thursday 07 November 2019

Conduent Q3 looking for a simpler life

ConduentQ3 results in from Business Process Services specialist Conduent put further metrics on some of the challenges facing the business. Excluding divestures, the business continues to see quarterly revenue and EBITDA decline, down 4% and 11% YoY to $1,098m and $127m respectively.

Conduent’s downward trajectory has been reflected in the company’s share price which has roughly halved since April and ultimately cost founding CEO Ashok Vemuri his job, being replaced at the end of the previous Quarter by former Fiserv exec Cliff Skelton. Indeed, the European operation will also be moving forward under new leadership with last month’s announcement that former Chief Srikanth Iyengar had made the move to training company QA.

Skelton has been pretty clear so far in what the business needs to do to turn things around and will focus efforts on simplifying the business on those areas of genuine strength. As we have said before ‘under the bonnet’ Conduent has some really exciting capability, and as indeed we covered in yesterday’s post on AI in Legal and Compliance, the challenge is bringing these to the surface. 

On the plus side, Conduent’s struggling top line should benefit from an expanded sales pipeline up 20% quarter on quarter to $12bn. The company’s sales engine and leadership are being overhauled to help drive this further. To help drive the bottom line we expect to see cost cutting and 2020 divestures coming out of an ongoing strategic and operational review to be completed late Q4 or early Q1.

Posted by: Marc Hardwick

Tags: results   bps  

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