Alight (ALIT) investor relations material

Business transformation and strategic focus

• Recent transformation included divesting payroll and professional services, resulting in a more focused, smaller organization centered on employee benefits services enabled by advanced technology.

• Resetting the market narrative and leveraging decades of domain expertise to regain leadership and drive client retention.

• Cloud migration completed, providing a platform for AI integration and operational improvements.

• Strategic focus on returning to growth, targeting 4–6% growth, and building a robust pipeline.

• Emphasis on commercial execution, new partnerships, and leveraging the Alight Work Life platform for expanded distribution.

Growth drivers and partnership strategy

• New partnerships, such as with Goldman Sachs, are expected to drive incremental revenue and diversify income streams beyond traditional per-employee fees.

• A dedicated partnership pipeline is being developed, with expectations for regular announcements of new collaborations.

• Partnerships are capital efficient, leveraging existing infrastructure and APIs for seamless integration and co-innovation.

• The Goldman Sachs partnership could contribute up to a point of growth next year and enhance brand recognition.

• Diversification through partnerships provides a hedge against fluctuations in employee counts and supports incremental growth.

Sales cycle, pipeline, and execution

• Sales cycles are long, with contracts typically lasting three to five years and implementations taking six to twelve months.

• Pipeline remains strong, with finalist stage deals up 35% year-over-year, though some delays are attributed to timing rather than lost opportunities.

• Improved relationships with third-party evaluators have positively impacted retention and pipeline expansion.

• Execution focus includes enhancing domain expertise and competing effectively against best-of-breed competitors.

• Fine-tuning go-to-market strategies and adding specialty sellers to address specific product areas.