Greetings, and welcome to the Conduent Fourth Quarter 2022 Earnings Announcement. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Giles Goodburn, Vice President of Investor Relations.

Thank you, operator and thanks everyone for joining us today to discuss Conduent’s fourth quarter and full year 2022 earnings. We hope you had a chance to review our press release issued earlier this afternoon. Joining me today is Cliff Skelton, our President and CEO; and Steve Wood, our CFO. Today’s agenda is as follows. Cliff will provide an overview of our results and a business update. Steve will then walk you through the financials for the quarter and full year as well as providing a financial outlook. Cliff will then provide his closing comments. This call is being webcast and a copy of the slides used during this call as well as the press release were filed with the SEC this afternoon on Form 8-K. This information as well as the detailed financial metrics package are available on the Investor Relations section of the Conduent website. During this call, we may make statements that are forward-looking. These forward-looking statements reflect management’s current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially from those statements. Information concerning these factors is included in Conduent’s annual report on Form 10-K filed with the SEC. We do not intend to update these forward-looking statements as a result of new information or future events or developments except as required by law. The information presented today includes non-GAAP financial measures. Because these measures are not calculated in accordance with U.S. GAAP, they should be viewed in addition to and not as a substitute for the company’s reported results. For more information regarding definitions of our non-GAAP measures, how we use them as well as the limitations to their usefulness for comparative purposes, please see our press release. And now I’d like to turn the call over to Cliff.

Thanks, Giles and good afternoon, everyone. Thanks for joining Conduent’s Q4 and full year 2022 earnings call. I will make some high-level comments about the quarter, the year and 2023. In addition, I’ll call out some exciting future opportunities as we, like others, slog through these somewhat uncertain times. First, let me say that Q4 and full year revenue ended within the range of previous guidance, albeit on the low end, driven primarily by lower volume in our commercial business and some revenue implementation timing in our transportation business. EBITDA finished directly in line with our previous guidance and margins also met expectations. Of particular interest is new business sales. The year finished strong, especially in our government healthcare business, where we won two large state Medicaid contracts in Q4. Commercial customer experience also progressed nicely through the year. Generally speaking, sales continue to improve each year and we just need to keep that rolling. Now as I step back and debrief the year, I would say it’s a tale of many cities with headwinds and tailwinds, perhaps more headwinds than tailwinds. Inflationary events tended to bring interest rate tailwinds in the P&L. However, some of those same inflation fighting trends create recession-like slowness to volumes, which impacted our commercial business. Meanwhile, foreign exchange rates, primarily in Europe, created some headwind for our transportation and commercial businesses. On the upside, we received a modest tailwind from the remnants of government stimulus through pandemic SNAP volumes. The blending of all that in a company with strong businesses and a large and strong client base, brought us to the low end of our full year guidance. Our operational performance continued to improve in 2022 as well. Technology uptime is now a hallmark of success for us. However, having been a Chief Information…

Thanks, Cliff. As we have done in the past, we are reporting both GAAP and non-GAAP numbers. The reconciliations are in our filings and in the appendix of the presentation. Let’s turn to Slide 5 and discuss our key sales metrics. Our primary sales metric, ACV, grew 22% in the quarter versus the prior year to $194 million. It has also been up sequentially for the past five quarters. For the full year 2022, ACV also grew approximately 17%, ignoring the impact of the prior year government stimulus revenues, which, as we have said before, are non-recurring and we saw the tail end of them in 2022. New business TCV was very strong in the quarter, growing 132% as compared to Q4 2021. More importantly, again, ignoring the impacts of government stimulus, it was up approximately 18% on a full year basis. Double-clicking on some of the detail here. The main driver of these year-over-year increases, as Cliff mentioned, was a very strong finish to the year in our Government segment, including two significant wins for our modular cloud-native Conduent Medicaid suite; and another for our state disbursement programs, which benefit low-income families. The combination of these three deals contributed in excess of $400 million in TCV and will drive strong implementation revenues in 2023 and 2024 with follow-on operations and maintenance revenues at the conclusion of the implementations. We said in prior quarters that we have a strong pipeline of late-stage government health care deals, and the business had a very strong sales finish to 2022. Our pipeline remains strong in this area. This year-end performance in government drove their ACV up 36% as compared to 2021. In addition to this, the Commercial segment ACV was up 14% as compared to 2021 but had a slower finish to the…

Thanks Steve. Look, in closing, I think it’s important to restate that 2022 brought with it a lot of exogenous components, from interest rates being positive to EBITDA to base volume changes that were unexpected from some of our largest clients, to foreign exchange rates that were certainly not planned for. All of which, when coupled with the normal puts and takes of a very diverse portfolio, made for a year when finishing within our guidance range on top line and EBITDA was somewhat impressive. The one-time events on cash are somewhat anomalous and normalize out in 2023, we believe. Regarding 2023, we were hopeful that our pivot to growth would happen earlier in the year, but government buying timing patterns can sometimes be unpredictable. The good news is that selling and retaining revenue remains paramount, and two of our three businesses are growing. And the third has very strong legs to it as we see real growth opportunity in that government healthcare business. Our very diverse portfolio can and has been a strength in the past, particularly during the pandemic. But today, we need to keep looking closely that where within that portfolio, we can generate the most future accretion and value by way of where there is, first, scarcity value externally. And second, where we can focus the combination of our bandwidth, new products and payments, new geographies especially in transportation and disciplined investment protocols. And it’s something that not only grows, but generates the kind of market appreciation we think we should enjoy. Now, more to come on all of that in our investor event. But please be on the lookout for the next week or two weeks for a firm date, the last part of March for that event. In closing, we are proud of what we accomplished in our foundational work over the past 3 years. We are proud of our ability to hit the numbers we predicted in a 2022 year that brought with it some of its own unpredictability. And we look forward to, again, doing what we say we will do in 2023. The bottom line here is that we are quite sanguine about the future of Conduent. Thank you again to our listeners. And as always, thanks to our clients and to our associates. Good day, everyone. Back to you, operator.

This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.