NASDAQ$ADV

Advantage Solutions Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported healthy financial results and affirmed 2021 outlook.

Advantage Solutions reported a year-over-year increase in revenues driven by growth in both the marketing and sales segments. The company is confident in delivering against FY 2021 Adjusted EBITDA guidance of $520 to $530 million.

  • Revenues increased year-over-year, driven by growth in the marketing and sales segments.
  • At-home consumer demand remains elevated, supported by steady volume and rising prices.
  • Higher growth, higher margin digital services continue to outperform.
  • Affirmed full year Adjusted EBITDA guidance of $520 million to $530 million.

Headline financials

Total Revenue

$929M

Previous: $784M+18.4%
EPS (adj)

$0.18

Previous: $0.18+0.0%
Adjusted EBITDA

$520M

No prior period
Capital Expenditures

-$24.1M

Previous: $23.2M-204.0%
Free Cash Flow

-$795K

Previous: -$24.1M+96.7%
Net Income

$23.3M

Previous: $35.9M-35.2%
Operating Income

$65.6M

Previous: $88.6M-25.9%
Gross Profit

$163M

Previous: $159M+2.2%
Cash & Equivalents

$168M

Previous: $515K+32527.9%
Total Assets

$5.85B

Previous: $455M+1187.2%
Stock-Based Comp

-$6.03M

No prior period

Revenue & EPS history

Advantage Solutions · Revenue · Quarterly

$929M

Q3 2021+18.4%vs Q3 2020
Beat estimate in 5 of 6 quarters(83%)
ActualEstimate

Forward guidance

The Company affirmed its full year Adjusted EBITDA guidance of $520 million to $530 million.

Tailwinds

  • Solid year-to-date performance.
  • COVID-related headwinds in marketing segment easing further into the holidays.
  • Solid pricing for wage inflation flowing through in labor-intensive businesses.

Headwinds

  • Elevated at-home demand for consumer goods normalizes a bit more in the fourth quarter of 2021.
  • Costs to recruit, train and retain large teams of new associates post-pandemic remains elevated.

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 Q3 2021

Historical avgQ3 2021

-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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