Cognizant, a company listed on the NASDAQ stock exchange, announced its fourth-quarter financial results for the fiscal year 2022, revealing a net profit of $521 million, representing a 9.5% decrease compared to the same period the previous year. The company’s revenue for the quarter showed a growth of 1.3% to reach $4.8 billion in reported terms and a 4% increase in constant currency.
Additionally, Cognizant did not provide revenue guidance for the entire fiscal year of 2023. For the first quarter of the new fiscal year, the company forecasted revenue to be between $4.71-4.76 billion, representing a decrease of 1.5% to 2.5%. The company’s revenue for the full year of 2022 reached $19.4 billion, meeting the previously provided guidance.
Regarding the results, the CEO of Cognizant, Ravi Kumar S, stated that the company’s strong strategic partnerships with global clients have opened up opportunities for further growth and development. He emphasized that his primary focus is on creating a positive working environment for the company’s associates and encouraging a growth mindset among all 355,000 employees.
Cognizant recently underwent management changes, with the leadership responsibilities being handed over from Brian Humphries to Ravi Kumar S.
Furthermore, the company reported a 12% year-over-year growth in bookings during the fourth quarter. The full-year bookings increased by 4% to reach $24.1 billion, with a book-to-bill ratio of approximately 1.2x. This growth includes a significant 10-year, $1 billion services agreement signed with CoreLogic in December 2022, which expands upon a partnership established in 2011.
At the end of the fourth quarter, Cognizant’s total headcount stood at 355,300, which is an increase of 5,900 from the previous quarter (Q3 2022) and 24,700 from the same quarter of the previous year (Q4 2021). The company also reported a decline in voluntary attrition, which measures the number of employees leaving the company voluntarily, on a quarterly annualized basis. The rate decreased to 19% in the fourth quarter, down from 29% in Q3 2022 and 31% in Q4 2021. On a trailing-twelve-month basis, voluntary attrition declined to 26% from 28% in Q4 2021
The CFO of Cognizant, Jan Siegmund, noted the improvement in voluntary attrition, stating that it will allow the company to concentrate on enhancing its commercial performance. He also highlighted the company’s efforts in executing a balanced capital allocation framework, including returning nearly $2 billion to shareholders through dividends and share repurchases in 2022, as well as announcing four acquisitions in the last three months.
