NASDAQ$ADV

Advantage Solutions Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Advantage Solutions' first quarter 2024 results met expectations despite market softness, higher costs, and investments, with a focus on core capabilities following the sale of Adlucent.

Advantage Solutions reported a 10% decline in revenues to $906 million, which increased by 1% excluding the impact of divestitures, foreign exchange, and pass-through costs. Operating income was $31.3 million, which included a gain on a divestiture. Adjusted EBITDA was $79 million, in line with expectations. Management reaffirms its 2024 outlook.

  • Revenues were $906 million, a 10% decline compared to the prior year, but increased 1% when excluding the impact of divestitures, foreign exchange, and pass-through costs.
  • Operating income was $31.3 million, including a gain on a divestiture.
  • Adjusted EBITDA was $79 million, which was in line with expectations.
  • The Company completed the sale of Adlucent on May 1, 2024, to focus on core capabilities and build a strong balance sheet.

Headline financials

Total Revenue

$879M

Previous: $1.01B-13.1%
EPS

-$0.02

Previous: -$0.15+86.7%
Adjusted EBITDA

$70.6M

No prior period
Adjusted EBITDA Margin

9.7%

No prior period
Capital Expenditures

-$16.2M

Previous: -$7.28M-122.0%
Free Cash Flow

-$21.5M

Previous: -$54.9M+60.9%
Net Income

-$5.31M

Previous: -$47.6M+88.8%
Operating Income

-$26.8M

Previous: -$8.26M-224.2%
Gross Profit

$115M

Previous: $124M-7.1%
Cash & Equivalents

$112M

Previous: $149M-24.7%
Total Assets

$3.63B

Previous: $4.14B-12.2%
Stock-Based Comp

$390K

Previous: -$2.27M+117.2%

Revenue & EPS history

Advantage Solutions · Revenue · Quarterly

$879M

Q1 2024-13.1%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Management reaffirms its outlook for 2024 with revenues and Adjusted EBITDA growth in the range of low single digits, excluding the in-year impact of the completed divestitures on the 2023 results.

Tailwinds

  • Revenues are expected to grow in the low single digits.
  • Adjusted EBITDA is expected to grow in the low single digits.
  • Management plans to execute additional simplification objectives in 2024.
  • Activities related to improving operating efficiencies are planned.
  • Investments behind the business from a talent and technology perspective will continue.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-2.7%

Avg return

Earnings day

-3.9%

Avg return

5 days after

-0.1%

Avg return

30 days after

36%

9 / 25 earnings

Positive

+18.6%

Q4 2022

Best reaction

-20.2%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+15.3%-5.5%+1.8%
Q4 2025-1.0%+15.9%+57.6%
Q3 2025-3.3%+8.9%-30.1%
Q1 2025-17.8%-14.3%+12.2%
Q4 2024-8.9%-28.4%-44.9%
Q3 2024+10.1%-1.6%+5.1%
Q2 2024+4.2%+0.3%+3.6%
Q1 2024-17.6%-20.2%-29.1%
Q4 2023+2.1%-3.4%+14.6%
Q3 2023-16.0%-16.5%+29.1%
Q2 2023+2.3%+1.2%+12.4%
Q1 2023+10.8%+18.5%+62.3%
Q4 2022+18.6%+7.7%-28.2%
Q3 2022-20.2%-17.5%-33.4%
Q2 2022-9.7%+3.2%-32.5%
Q1 2022-11.0%-9.6%-15.3%
Q4 2021-15.9%-26.9%-18.9%
Q3 2021+4.4%+1.6%-13.9%
Q2 2021-6.7%-6.0%-13.0%
Q1 2021-3.8%-5.6%-4.7%
Q4 2020-0.2%+7.2%+27.1%
Q2 2020-0.2%+7.2%+27.1%
Q3 2020-2.1%-13.8%-1.5%
Q1 2020+0.5%+0.0%+4.9%
Q4 2019-1.0%-1.0%+5.1%
Q3 2019
Q2 2019
Q1 2019
Q1 2017
Q1 2016

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