FY24 Pipeline and Capital Deployment Overview
FINANCIAL RESULTS – KEY DRIVERS
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Third Quarter Fiscal 2024 - Below is a summary of the key factors driving results for the fiscal 2024 third quarter ended December 31,
2023 as compared to the prior year period:
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Revenue increased 12.9% to $2.6 billion and Revenue, Excluding Billable Expenses increased 13.0% to $1.8 billion. Revenue growth
was primarily driven by strong demand for our services and solutions as well as continued headcount growth.
Operating income increased 322.2% to $247.6 million and Adjusted Operating Income increased 21.9% to $263.1 million. The
increase was primarily driven by the same drivers benefiting revenue growth as well as strong contract-level performance coupled
with ongoing cost management efforts. In addition, fiscal 2023 operating income was negatively impacted by a $124.0 million
reserve associated with the U.S. Department of Justice's investigation of the Company recorded in the third quarter. The increase in
Adjusted Operating Income was driven by the same factors impacting operating income with the exception of the aforementioned
legal matter reserve, which did not impact Adjusted Operating Income.
Net income increased 374.6% to $145.6 million and net income attributable to common stockholders increased 369.9% to $145.6
million. These changes were primarily driven by the same factors as operating income, partially offset by a net gain in the prior year
of $8.9 million from the de-consolidation of an artificial intelligence software platform business, and a $4.6 million pre-tax gain
associated with the divestiture of the Company's Managed Threat Services business. In addition, an increase in the provision for
income taxes associated with the reversal of an uncertain tax position related to Section 174 of the Tax Cuts and Jobs Act of 2017
had a negative impact on net income. Adjusted Net Income increased 29.4% to $184.3 million. The change in Adjusted Net Income
was primarily driven by the same factors as Adjusted Operating Income, as well as higher interest expense.
EBITDA increased 185.8% to $288.7 million and Adjusted EBITDA increased 19.1% to $290.6 million. These changes were due to the
same factors as operating income and Adjusted Operating Income, respectively.
Diluted EPS increased to $1.11 from $0.23 and Adjusted Diluted EPS increased to $1.41 from $1.07. The changes were primarily
driven by the same factors as net income and Adjusted Net Income, respectively, partially offset by a lower share count in the third
quarter of fiscal 2024.
Net cash used in operating activities was $234.0 million for the quarter ended December 31, 2023, as compared to $138.6 million in
the prior year. Free Cash Flow was $210.9 million for the quarter ended December 31, 2023, as compared to $116.9 million in the
prior year. Operating cash was aided by strong collection performance and overall revenue growth.
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