NASDAQ$ADV

Advantage Solutions Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Advantage Solutions reported third quarter results that exceeded consensus estimates, driven by revenue growth and strategic initiatives.

Advantage Solutions reported a 4.3% year-over-year increase in revenue to $1.1 billion for the third quarter of 2023. The company's focus on strengthening its culture, simplifying operations, and improving financial discipline contributed to the positive results. Adjusted EBITDA for the quarter was $113.1 million.

  • Revenues for the third quarter grew 4.3% year-over-year, reaching $1.1 billion.
  • Marketing segment revenues increased by 15.5% year-over-year, driven by the recovery of in-store sampling and demonstration services.
  • Operating income for the quarter was $16.0 million.
  • Net loss for the quarter was $22.6 million, compared to a net income of $23.2 million in the third quarter of 2022.

Headline financials

Total Revenue

$1.1B

Previous: $1.05B+4.3%
EPS (adj)

-$0.07

Previous: $0.20-135.0%
Adjusted EBITDA

$113M

Previous: $118M-4.4%
Net Debt

$1.79B

No prior period
Capital Expenditures

-$29.7M

Previous: -$30M+1.3%
Free Cash Flow

-$54M

Previous: -$8.98M-501.4%
Net Income

-$24.3M

Previous: $21.1M-215.6%
Operating Income

$16M

Previous: $46.8M-65.9%
Gross Profit

$149M

Previous: $143M+4.2%
Cash & Equivalents

$171M

Previous: $96.2M+78.1%
Total Assets

$4.06B

Previous: $5.81B-30.2%
R&D Expense

$0.00

No prior period
Stock-Based Comp

$209K

Previous: -$828K+125.2%

Revenue & EPS history

Advantage Solutions · Revenue · Quarterly

$1.1B

Q3 2023+4.3%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company now expects Adjusted EBITDA around the upper end of the guidance range of $400 million to $420 million, including the impact of completed divestitures.

Tailwinds

  • Continued realization of pricing
  • Growth in in-store sampling and demonstration events
  • Further investments behind technology
  • Further investments behind talent in the fourth quarter of 2023 and beyond
  • Focus on maximizing returns for equity holders

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 2023

Historical avgQ3 2023

-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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